Adding criteria to existing Application Engine SQL

I'm trying add criteria to a delivered Application Engine.  I added the new field to the State Record (built the record as it is not a derived table) and to the SQL of the application engine. I expected that at run time, the field would populate with a value from the table based on the %Bind(record.fieldname).  Instead, the field contains the value of ' ' instead of 'C' which is the value of the field on the record being referenced.  I'm attaching a word doc that contains the SQL with the changed code hi-lited.  I also have the trace from