6828 AMH FRAS 51

SB 6828 - H AMD TO H AMD (H-4864.3/02)Failed 3-12-02 0563

By Representative ___

Beginning on page 1, line 7 of the amendment, strike all material through line 19 on page 9

Renumber remaining sections consecutively and correct title and internal references accordingly.

On page 9 of the amendment, beginning with "except" on line 26, strike all material through "act)" on line 27

On page 9, line 31 of the amendment, after "RCW 43.72.900" insert "to the health care endowment trust fund established in section 2 of this act,"

On page 10, after line 7 of the amendment, insert the following:

"(4) The treasurer shall transfer twenty percent of all moneys received by the tobacco settlement account to the health care endowment trust fund created in section 2 of this act."

On page 10 of the amendment, after line 7, insert the following:

"NEW SECTION. Sec. 2. A new section is added to chapter 43.79 to read as follows:

(1) The health care endowment trust fund is created in the custody of the state treasurer.

(2) The purpose of the fund is to provide a perpetual source of funding for maintaining and enhancing the quality of health care for children and the elderly, and expenditures from the fund may be made only for these purposes.

(3) The health care endowment governing board is established to design and administer the health care endowment. The board consists of five members appointed by the governor.

(4) Only the governing board or the governing board's designee may authorize expenditures from the account.

(5) (a) The state investment board has the full power to invest, reinvest, manage, contract, sell, or exchange investment money in the health care endowment trust fund. All investment and operating costs associated with the investment of money shall be paid under RCW 43.33A.160 and 43.84.160. With the exception of these expenses, the earning from the investment of the fund shall be retained by the fund.

(b) All investments made by the state investment board shall be made with the exercise of that degree of judgment and care under RCW 43.33A.140 and the investment policy established by the state investment board.

(c) As deemed appropriate by the investment board, money in the fund may be commingled for investment with other funds subject to investment by the board.

(d) The authority to establish all policies relating to the fund, other than the investment policies as set forth in subsections (a) through (c) of this section, resides with the governing board acting in accordance with the principles set forth in this section. With the exception of expenses of the state treasurer in RCW 43.330.200 and the investment board set forth in subsection (a) of this section, disbursements from the fund shall be made only on the authorization of the governing board or the board's designee, and money in the fund may be spent only for the purposes of the health care endowment program as specified in this section.

(5) The investment board shall routinely consult and communicate with the governing board on the investment policy, earnings of the trust, and related needs of the program.

Sec. 3. RCW 43.79A.040 and 2001 c 201 s 4 and 2001 c 184 s 4 are each reenacted and amended to read as follows:

(1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the basic health plan self-insurance reserve account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the health care endowment trust fund, the juvenile accountability incentive account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, and the children's trust fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section."

Renumber remaining sections consecutively and correct title and internal references accordingly.