BP BHEAD INT H

AN ACT Relating to loss of public employment benefits upon conviction of certain crimes; amending RCW 41.28.200 and 43.43.310; reenacting and amending RCW 41.26.180, 41.32.052, and 41.40.052; adding a new section to chapter 41.26 RCW; adding a new section to chapter 41.28 RCW; adding a new section to chapter 41.32 RCW; adding a new section to chapter 41.40 RCW; adding new sections to chapter 2.14 RCW; adding a new section to chapter 28A.400 RCW; adding a new section to chapter 28B.10 RCW; adding a new section to chapter 43.43 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature recognizes the many contributions made by public employees and officials and their dedication to their employment and positions. Further, the legislature recognizes that on the very rare occasion when a public employee or official commits a felony related to his or her public employment, the reputations of all public employees and officials are damaged.

It is the purpose of this act to safeguard the reputations of public employees and officials from unfair criticisms that may arise in the rare instances when a public employee or official is convicted of a felony related to his or her employment or position, by withdrawing pension benefits from any public employee or official who is convicted of a felony related to his or her employment or position.

NEW SECTION. Sec. 2. A new section is added to chapter 41.26 RCW to read as follows:

(1) Any person who first becomes a member of the system after January 1, 1995, shall lose all benefits provided under this system if he or she is convicted of committing a:

(a) Felony if his or her position as a law enforcement officer or fire fighter was used to accomplish or further the commission of the felony; or

(b) Felony related to his or her employment as a law enforcement officer.

(2) As used in this section, "benefits" include, but are not limited to, retirement benefits, disability benefits, and medical services.

(3) The department shall petition the superior court of Thurston county to determine if the conviction of a felony meets the criteria of subsection (1) of this section.

Any member who loses benefits under this section shall have his or her accumulated contributions refunded.

Sec. 3. RCW 41.26.180 and 1991 c 365 s 20 and 1991 c 35 s 25 are each reenacted and amended to read as follows:

(1) Subject to subsections (2) ((~~and~~)), (3), and (4) of this section, the right of a person to a retirement allowance, disability allowance, or death benefit, to the return of accumulated contributions, the retirement, disability or death allowance itself, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, and the moneys in the fund created under this chapter, are hereby exempt from any state, county, municipal, or other local tax and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or any other process of law whatsoever, and shall be unassignable.

(2) On the written request of any person eligible to receive benefits under this section, the department may deduct from such payments the premiums for life, health, or other insurance. The request on behalf of any child or children shall be made by the legal guardian of such child or children. The department may provide for such persons one or more plans of group insurance, through contracts with regularly constituted insurance carriers or health care service contractors.

(3) Subsection (1) of this section shall not prohibit the department from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory benefits assignment order issued by the department, (e) a court order directing the department of retirement systems to pay benefits directly to an obligee under a dissolution order as defined in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 41.50.700, or (f) any administrative or court order expressly authorized by federal law.

(4) Subsection (1) of this section shall not prohibit the loss of benefits under section 2 of this act.

NEW SECTION. Sec. 4. A new section is added to chapter 41.28 RCW to read as follows:

(1) Any person who first becomes a member of the retirement system after January 1, 1995, shall lose all benefits provided under this system if he or she is convicted of committing a:

(a) Felony if his or her position as an employee was used to accomplish or further the commission of the felony; or

(b) Felony related to his or her employment as an employee.

(2) As used in this section, "benefits" include, but are not limited to, retirement allowances and pensions.

(3) The department shall petition the superior court of Thurston county to determine if the conviction of a felony meets the criteria of subsection (1) of this section.

Any member who loses benefits under this section shall have his or her accumulated contributions refunded.

Sec. 5. RCW 41.28.200 and 1939 c 207 s 21 are each amended to read as follows:

(1) The right of a person to a pension, an annuity or a retirement allowance, to the return of contributions, the pension, annuity or retirement allowance itself, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, and the moneys in the fund created under this chapter shall not be subject to execution, garnishment, attachment, or any other process whatsoever and shall be unassignable except as in this chapter specifically provided.

(2) Subsection (1) of this section shall not prohibit the loss of benefits under section 4 of this act.

NEW SECTION. Sec. 6. A new section is added to chapter 41.32 RCW to read as follows:

(1) Any person who first becomes a member of the retirement system after January 1, 1995, shall lose all benefits provided under this system if he or she is convicted of committing a:

(a) Felony if his or her position as an employee was used to accomplish or further the commission of the felony; or

(b) Felony related to his or her employment as an employee.

(2) As used in this section, "benefits" include, but are not limited to, retirement allowances and pensions.

(3) The department shall petition the superior court of Thurston county to determine if the conviction of a felony meets the criteria of subsection (1) of this section.

Any member who loses benefits under this section shall have his or her accumulated contributions refunded.

Sec. 7. RCW 41.32.052 and 1991 c 365 s 21 and 1991 c 35 s 63 are each reenacted and amended to read as follows:

(1) Subject to subsections (2) ((~~and~~)), (3), and (4) of this section, the right of a person to a pension, an annuity, a retirement allowance, or disability allowance, to the return of contributions, any optional benefit or death benefit, any other right accrued or accruing to any person under the provisions of this chapter and the moneys in the various funds created by this chapter shall be unassignable, and are hereby exempt from any state, county, municipal or other local tax, and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever.

(2) This section shall not be deemed to prohibit a beneficiary of a retirement allowance who is eligible:

(a) Under RCW 41.05.080 from authorizing monthly deductions therefrom for payment of premiums due on any group insurance policy or plan issued for the benefit of a group comprised of public employees of the state of Washington or its political subdivisions;

(b) Under a group health care benefit plan approved pursuant to RCW 28A.400.350 or 41.05.065 from authorizing monthly deductions therefrom, of the amount or amounts of subscription payments, premiums, or contributions to any person, firm, or corporation furnishing or providing medical, surgical, and hospital care or other health care insurance; or

(c) Under this system from authorizing monthly deductions therefrom for payment of dues and other membership fees to any retirement association composed of retired teachers and/or public employees pursuant to a written agreement between the director and the retirement association.

Deductions under (a) and (b) of this subsection shall be made in accordance with rules that may be adopted by the director.

(4) Subsection (1) of this section shall not prohibit the loss of benefits under section 6 of this act.

NEW SECTION. Sec. 8. A new section is added to chapter 41.40 RCW to read as follows:

(1) Any person who first becomes a member of the system after January 1, 1995, shall lose all benefits provided under this system if he or she is convicted of committing a:

(a) Felony if his or her position as an employee defined under RCW 41.40.023 was used to accomplish or further the commission of the felony; or

(b) Felony related to his or her employment as an employee defined under RCW 41.40.023.

(2) As used in this section, "benefits" include, but are not limited to, retirement allowances and pensions.

(3) The department shall petition the superior court of Thurston county to determine if the conviction of a felony meets the criteria of subsection (1) of this section.

Any member who loses benefits under this section shall have his or her accumulated contributions refunded.

Sec. 9. RCW 41.40.052 and 1991 c 365 s 22 and 1991 c 35 s 92 are each reenacted and amended to read as follows:

(1) Subject to subsections (2) ((~~and~~)), (3), and (4) of this section, the right of a person to a pension, an annuity, or retirement allowance, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, the various funds created by this chapter, and all moneys and investments and income thereof, are hereby exempt from any state, county, municipal, or other local tax, and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever, and shall be unassignable.

(2) This section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of premiums due on any group insurance policy or plan issued for the benefit of a group comprised of public employees of the state of Washington or its political subdivisions and which has been approved for deduction in accordance with rules that may be adopted by the state health care authority and/or the department, and this section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of dues and other membership fees to any retirement association or organization the membership of which is composed of retired public employees, if a total of three hundred or more of such retired employees have authorized such deduction for payment to the same retirement association or organization.

(4) Subsection (1) of this section shall not prohibit the loss of benefits under section 8 of this act.

NEW SECTION. Sec. 10. A new section is added to chapter 2.14 RCW to read as follows:

(1) Any person who first becomes a member of the plan after January 1, 1995, shall lose all benefits provided under this system if he or she is convicted of committing a:

(a) Felony if his or her position as a judge was used to accomplish or further the commission of the felony; or

(b) Felony related to his or her employment as a judge.

(2) As used in this section, "benefits" include, but are not limited to, retirement allowances and pensions.

(3) The department shall petition the superior court of Thurston county to determine if the conviction of a felony meets the criteria of subsection (1) of this section.

Any member who loses benefits under this section shall have his or her accumulated contributions refunded.

NEW SECTION. Sec. 11. A new section is added to chapter 2.14 RCW to read as follows:

No restrictions on the execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever against the benefits of a member shall prohibit the loss of benefits under section 10 of this act.

NEW SECTION. Sec. 12. A new section is added to chapter 28A.400 RCW to read as follows:

(1) Any person who first obtains tax deferred annuities from a school district after January 1, 1995, shall lose all benefits provided under these annuities if he or she is convicted of committing a:

(a) Felony if his or her position as a school district employee was used to accomplish or further the commission of the felony; or

(b) Felony related to his or her employment as a school district employee.

(2) As used in this section, "benefits" include, but are not limited to, annuity benefits and retirement income.

(3) The school directors, superintendent of public instruction, or education service district superintendents shall petition the superior court of Thurston county to determine if the conviction of a felony meets the criteria of subsection (1) of this section.

Any school district employee who loses benefits under this section shall have his or her accumulated contributions refunded. The school district's contributions and interest earnings shall be refunded to the school district.

NEW SECTION. Sec. 13. A new section is added to chapter 2.14 RCW to read as follows:

NEW SECTION. Sec. 14. A new section is added to chapter 28B.10 RCW to read as follows:

(1) Any person who first obtains tax deferred annuities from a state university, regional university, The Evergreen State College, or state board for community and technical colleges after January 1, 1995, shall lose all benefits provided under these annuities if he or she is convicted of committing a:

(a) Felony if his or her position as an employee was used to accomplish or further the commission of the felony; or

(b) Felony related to his or her employment as an employee.

(2) As used in this section, "benefits" include, but are not limited to, annuity benefits and retirement income.

(3) The board of regents of the state university, regional university, The Evergreen State College, or the state board for community and technical colleges shall petition the superior court of Thurston county to determine if the conviction of a felony meets the criteria of subsection (1) of this section.

Any employee who loses benefits under this section shall have his or her accumulated contributions refunded. The employer's contributions and interest earnings shall be refunded to the employer.

NEW SECTION. Sec. 15. A new section is added to chapter 2.14 RCW to read as follows:

NEW SECTION. Sec. 16. A new section is added to chapter 43.43 RCW to read as follows:

(1) Any person who first becomes a member of the retirement system after January 1, 1995, shall lose all benefits provided under this system if he or she is convicted of committing a:

(a) Felony if his or her position as an employee was used to accomplish or further the commission of the felony; or

(b) Felony related to his or her employment as an employee.

(2) The state patrol shall petition the superior court of Thurston county to determine if the conviction of a felony meets the criteria of subsection (1) of this section.

Any member who loses benefits under this section shall have his or her accumulated contributions refunded.

Sec. 17. RCW 43.43.310 and 1991 c 365 s 23 are each amended to read as follows:

(1) Except as provided in subsections (2) ((~~and~~)), (3), and (4) of this section, the right of any person to a retirement allowance or optional retirement allowance under the provisions hereof and all moneys and investments and income thereof are exempt from any state, county, municipal, or other local tax and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or the insolvency laws, or other processes of law whatsoever and shall be unassignable except as herein specifically provided.

(2) Subsection (1) of this section shall not prohibit the department of retirement systems from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory benefits assignment order issued pursuant to chapter 41.50 RCW, (e) a court order directing the department of retirement systems to pay benefits directly to an obligee under a dissolution order as defined in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 41.50.700, or (f) any administrative or court order expressly authorized by federal law.

(3) Subsection (1) of this section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of premiums due on any group insurance policy or plan issued for the benefit of a group comprised of members of the Washington state patrol or other public employees of the state of Washington, or for contributions to the Washington state patrol memorial foundation.

(4) Subsection (1) of this section shall not prohibit the loss of benefits under section 16 of this act.