HB 2362 — Concerning crime committed by business entities.

H-4189.2SUBSTITUTEH-3184.2HOUSE HOUSE BILL 2362State of Washington65th Legislature2018 Regular SessionBy House Public Safety (originally sponsored by Representatives Pellicciotti, Sawyer, Robinson, Dolan, Chapman, Kilduff, Stanford, Macri, Ryu, Ormsby, and Doglio)READDoglioPrefiled FIRST01/03/18. TIME 01/29/18.AN ACT Relating to crime committed by business entities;

amendingRead RCWfirst 9A.08.030,time 10.01.070,01/08/18. 10.01.090, and 10.01.100;

andReferred prescribing penalties.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 9A.08.030 and 2011 c 336 s 352 are each amended to readCommittee as follows:(1) As used in this section:(a) "Agent" means any director, officer, or employee of a ((corporation)) business entity, or any other person who is authorized to act on behalfPublic ofSafety.AN theACT ((corporation))Relating business entity;(b) (("Corporation")) "Business entity" includes ((a joint stock association)) any domestic entity formed under or governed as to itscrime internalcommitted affairs by Title 23, 23B, or 25 RCW, or chapter 24.06 RCW, or any foreign business entityentities; formed under or governed as to its internal affairs by the laws of a jurisdiction other than this state;(c) "High managerial agent" means an officer or director of a ((corporation)) business entity or any other agent in a position of comparable authority ((with respect to the formulation of corporate policy or the supervision)) to exercise the powers of the business entity and manage the affairs and activities of the business entity or to exercise supervision in a managerial capacity of subordinate employees.(2) A ((corporation)) business entity is guilty of an offense when:(a) The conduct constituting the offense consists of an omission to discharge a specific duty of performance imposed on ((corporations)) business entities by law;

amending RCW 9A.08.030 and 10.01.100;

and prescribing penalties.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec. 1.  RCW 9A.08.030 and 2011 c 336 s 352 are each amended to read as follows:(1) As used in this section:(a) "Agent" means any director, officer, or employee of a ((corporation)) business entity, or any other person who is authorized to act on behalf of the ((corporation)) business entity;(b) (("Corporation")) "Business entity" includes ((a joint stock association)) any domestic entity formed under or governed as to its internal affairs by Title 23, 23B, or 25 RCW, or any foreign business entity formed under or governed as to its internal affairs by the laws of a jurisdiction other than this state;(c) "High managerial agent" means an officer or director of a ((corporation)) business entity or any other agent in a position of comparable authority ((with respect to the formulation of corporate policy or the supervision)) to exercise the powers of the business entity and manage the affairs and activities of the business entity or to exercise supervision in a managerial capacity of subordinate employees.(2) A ((corporation)) business entity is guilty of an offense when:(a) The conduct constituting the offense consists of an omission to discharge a specific duty of performance imposed on ((corporations)) business entities by law;

The attorney general shall begin and conduct all actions and proceedings necessary to enforce the provisions of this subsection.Sec. 2.  RCW 10.01.07010.01.100 and 19871925 cex.s. 202 s 147 are each amended to read as follows:(1) Whenever an indictment or information shall be filed in any superior court against a ((corporation)) business entity charging it with the commission of a crime, a summons shall be issued by the clerk of such court, signed by one of the judges thereof, commanding the sheriff forthwith to notify the accused thereof, and commanding it to appear before such court at such time as shall be specified in said summons.

Such summons and a copy of the indictment or information shall be at once delivered by such clerk to said sheriff and by the sheriff forthwith served and returned in the manner provided for service of summons upon such ((corporation)) business entity in a civil action.

Whenever a complaint against a ((corporation)) business entity, charging it with the commission of a crime, shall be made before any district or municipal judge, a like summons, signed by such judge, shall be issued, which, together with a copy of said complaint, shall be delivered to the sheriff at once and by the sheriff forthwith served as herein provided.(2) For the purposes of this section, "business entity" has the same meaning as provided in RCW 9A.08.030.Sec. 3.  RCW 10.01.090 and 1987 c 202 s 148 are each amended to read as follows:((If the corporation shall be found guilty and a fine imposed, it)) (1) A business entity convicted of an offense may be ordered to pay legal financial obligations, including restitution, crime victims' assessments, costs, fines, penalties, and other assessments authorized or required by law.

Legal financial obligations imposed upon a business entity shall be entered and docketed by the clerk, or district or municipal court as a judgment against the ((corporation)) business entity, and it shall be of the same force and effect and be enforced against such ((corporation)) business entity in the same manner as a judgment in a civil action.

When a business entity is ordered to pay restitution, payments to the clerk must be distributed to restitution prior to all other obligations.

Legal financial obligations imposed upon a business entity are subject to the same requirements as those imposed upon a person convicted of an offense, as provided in chapter 9.94A RCW, this title, and other sections pertaining to legal financial obligations.(2) For the purposes of this section, "business entity" has the same meaning as provided in RCW 9A.08.030.Sec. 4.  RCW 10.01.100 and 1925 ex.s.