BILL REQ. #:  Z-1073.2 



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HOUSE BILL 2825
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State of Washington61st Legislature2010 Regular Session

By Representatives Linville and Ericks; by request of Governor Gregoire

Read first time 01/14/10.   Referred to Committee on Ways & Means.



     AN ACT Relating to transferring the administration of the voluntary firefighters' and reserve officers' relief and pension system to the department of retirement systems; amending RCW 41.24.010, 41.24.030, 41.24.035, 41.24.070, 41.24.080, 41.24.110, 41.24.120, 41.24.150, 41.24.155, 41.24.160, 41.24.185, 41.24.190, 41.24.210, 41.24.215, 41.24.245, 41.24.290, 41.24.300, 41.24.310, 41.24.340, 41.24.410, and 41.24.460; reenacting and amending RCW 41.24.172; creating a new section; and providing an effective date.

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

Sec. 1   RCW 41.24.010 and 2006 c 26 s 1 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Municipal corporation" or "municipality" includes any county, city, town or combination thereof, fire protection district, local law enforcement agency, or any emergency medical service district or other special district, authorized by law to protect life or property within its boundaries through a fire department, emergency workers, or reserve officers.
     (2) "Fire department" means any regularly organized fire department or emergency medical service district consisting wholly of volunteer firefighters, or any part-paid and part-volunteer fire department duly organized and maintained by any municipality: PROVIDED, That any such municipality wherein a part-paid fire department is maintained may by appropriate legislation permit the full-paid members of its department to come under the provisions of chapter 41.16 RCW.
     (3) "Firefighter" includes any firefighter or emergency worker who is a member of any fire department of any municipality but shall not include firefighters who are eligible for participation in the Washington law enforcement officers' and firefighters' retirement system or the Washington public employees' retirement system, with respect to periods of service rendered in such capacity.
     (4) "Emergency worker" means any emergency medical service personnel, regulated by chapters 18.71 and 18.73 RCW, who is a member of an emergency medical service district but shall not include emergency medical service personnel who are eligible for participation in the Washington law enforcement officers' and firefighters' retirement system or the Washington public employees' retirement system, with respect to periods of service rendered in such capacity.
     (5) "Performance of duty" or "performance of service" shall be construed to mean and include any work in and about company quarters, any fire station, any law enforcement office or precinct, or any other place under the direction or general orders of the chief or other officer having authority to order such member to perform such work; performing other officially assigned duties that are secondary to his or her duties as a firefighter, emergency worker, or reserve officer such as maintenance, public education, inspections, investigations, court testimony, and fund-raising for the benefit of the department; being on call or on standby under the orders of the chief or designated officer of the department, except at the individual's home or place of business; responding to, working at, or returning from an alarm of fire, emergency call, or law enforcement duties; drill or training; or any work performed of an emergency nature in accordance with the rules and regulations of the fire department or local law enforcement agency.
     (6) "State board" means the state board for volunteer firefighters and reserve officers.
     (7) "Board of trustees" or "local board" means: (a) For matters affecting firefighters, a firefighter board of trustees created under RCW 41.24.060; (b) for matters affecting an emergency worker, an emergency medical service district board of trustees created under RCW 41.24.330; or (c) for matters affecting reserve officers, a reserve officer board of trustees created under RCW 41.24.460.
     (8) "Appropriate legislation" means an ordinance when an ordinance is the means of legislating by any municipality, and resolution in all other cases.
     (9) "Reserve officer" means the same as defined by the Washington state criminal justice training commission under chapter 43.101 RCW, but shall not include enforcement officers who are eligible for participation in the Washington law enforcement officers' and firefighters' retirement system or the Washington public employees' retirement system, with respect to periods of service rendered in such capacity.
     (10) "Participant" means: (a) For purposes of relief, any reserve officer who is or may become eligible for relief under this chapter or any firefighter or emergency worker; and (b) for purposes of retirement pension, any firefighter, emergency worker, or reserve officer who is or may become eligible to receive a benefit of any type under the retirement provisions of this chapter, or whose beneficiary may be eligible to receive any such benefit.
     (11) "Relief" means all medical, death, and disability benefits available under this chapter that are made necessary from death, sickness, injury, or disability arising in the performance of duty, including benefits provided under RCW 41.24.110, 41.24.150, 41.24.160, 41.24.175, 41.24.220, and 41.24.230, but does not include retirement pensions provided under this chapter.
     (12) "Retirement pension" means retirement payments for the performance of service, as provided under RCW 41.24.170, 41.24.172, 41.24.175, 41.24.180, and 41.24.185.
     (13) "Principal fund" means the volunteer firefighters' and reserve officers' relief and pension principal fund created under RCW 41.24.030.
     (14) "Administrative fund" means the volunteer firefighters' and reserve officers' administrative fund created under RCW 41.24.030.
     (15) "Department" means the department of retirement systems.

Sec. 2   RCW 41.24.030 and 2005 c 37 s 2 are each amended to read as follows:
     (1) The volunteer firefighters' and reserve officers' relief and pension principal fund is created in the state treasury as a trust fund for the benefit of the participants covered by this chapter consisting of:
     (a) All bequests, fees, gifts, emoluments, or donations given or paid to the fund.
     (b) An annual fee for each member of its fire department to be paid by each municipal corporation for the purpose of affording relief provided in this chapter for firefighters as follows:
     (i) Thirty dollars for each volunteer or part-paid member of its fire department;
     (ii) A sum equal to one and one-half of one percent of the annual salary attached to the rank of each full-paid member of its fire department, prorated for 1970 on the basis of services prior to March 1, 1970.
     (c) An annual fee for each emergency worker of an emergency medical service district paid by the district that is sufficient to pay the full costs of covering the emergency worker under the relief provisions of this chapter, including operating expenses. The state board shall determine the amount of this fee based on the latest actuarial valuation of the system.
     (d) Where a municipal corporation has elected to make relief provisions of this chapter available to its reserve officers, an annual fee for each reserve officer paid by the municipal corporation that is sufficient to pay the full costs of covering the reserve officer under the relief provisions of this chapter, including operating expenses. The state board shall determine the amount of this fee based on the latest actuarial valuation of the system.
     (e) Where a municipal corporation has elected to make the retirement pension provisions of this chapter available to members of its fire department, an annual fee of sixty dollars for each of its firefighters electing to enroll, thirty dollars of which shall be paid by the municipality and thirty dollars of which shall be paid by the firefighter. However, nothing in this section prohibits any municipality from voluntarily paying the firefighters' fee for this retirement pension coverage.
     (f) Where an emergency medical service district has elected to make the retirement pension provisions of this chapter available to its emergency workers, for each emergency worker electing to enroll: (i) An annual fee of thirty dollars shall be paid by the emergency worker; and (ii) an annual fee paid by the emergency medical service district that, together with the thirty-dollar fee per emergency worker, is sufficient to pay the full costs of covering the emergency worker under the retirement pension benefits provided under this chapter, including operating expenses. The state board shall determine the amount of this fee based on the latest actuarial valuation of the system. However, nothing in this section prohibits any emergency medical service district from voluntarily paying the emergency workers' fees for this retirement pension coverage.
     (g) Where a municipal corporation has elected to make the retirement pension provisions of this chapter available to its reserve officers, for each reserve officer electing to enroll: (i) An annual fee of thirty dollars shall be paid by the reserve officer; and (ii) an annual fee paid by the municipal corporation that, together with the thirty-dollar fee per reserve officer, is sufficient to pay the full costs of covering the reserve officer under the retirement pension benefits provided under this chapter, including operating expenses. The state board shall determine the amount of this fee based on the latest actuarial valuation of the system. However, nothing in this section prohibits any municipal corporation from voluntarily paying the reserve officers' fees for this retirement pension coverage.
     (h) Moneys transferred from the administrative fund, as provided under subsection (4) of this section, which may only be used to pay relief and retirement pensions for firefighters.
     (i) Earnings from the investment of moneys in the principal fund.
     (2) The state investment board, upon request of the state treasurer shall have full power to invest, reinvest, manage, contract, sell, or exchange investments acquired from that portion of the amounts credited to the principal fund as is not, in the judgment of the ((state board)) department, required to meet current withdrawals. Investments shall be made in the manner prescribed by RCW 43.84.150 and not otherwise.
     All bonds, investments, or other obligations purchased by the state investment board shall be placed in the custody of the state treasurer, and he or she shall collect the principal thereof and interest thereon when due.
     The state investment board may sell any of the bonds, investments, or obligations so acquired and the proceeds thereof shall be paid to the state treasurer.
     (3) The interest, earnings, and proceeds from the sale and redemption of any investments held by the principal fund and invested by the state investment board shall be credited to and form a part of the principal fund, less the allocation to the state investment board expense account pursuant to RCW 43.33A.160.
     Subject to restrictions contained in this chapter, all amounts credited to the principal fund shall be available for making the benefit payments required by this chapter.
     The state treasurer shall make an annual report showing the condition of the fund.
     (4) The volunteer firefighters' and reserve officers' administrative fund is created in the state treasury. Moneys in the fund, including unanticipated revenues under RCW 43.79.270, may be spent only after appropriation, and may be used only for operating expenses of the volunteer firefighters' and reserve officers' relief and pension principal fund, the operating expenses of the volunteer firefighters' and reserve officers' administrative fund, or for transfer from the administrative fund to the principal fund.
     (a) Forty percent of all moneys received by the state from taxes on fire insurance premiums shall be paid into the state treasury and credited to the administrative fund.
     (b) The ((state board)) department shall compute a percentage of the amounts credited to the administrative fund to be paid into the principal fund.
     (c) For the purpose of providing amounts to be used to defray the cost of administration of the principal and administrative funds, the ((state board)) department shall ascertain at the beginning of each biennium and request from the legislature an appropriation from the administrative fund sufficient to cover estimated expenses for the biennium.

Sec. 3   RCW 41.24.035 and 1999 c 148 s 4 are each amended to read as follows:
     The ((state board)) department is authorized to pay from the earnings of the principal fund and administrative fund lawful obligations of the system for legal expenses and medical expenses which expenses are primarily incurred for the purpose of protecting the principal fund or are incurred in compliance with statutes governing such funds.
     The term "legal expense" includes, but is not limited to, legal services provided through the legal services revolving fund, fees for expert witnesses, travel expenses, fees for court reporters, cost of transcript preparation, and reproduction of documents.
     The term "medical costs" includes, but is not limited to, expenses for the medical examination or reexamination of members or retirees, the costs of preparation of medical reports, and fees charged by medical professionals for attendance at discovery proceedings or hearings.

Sec. 4   RCW 41.24.070 and 1999 c 148 s 7 are each amended to read as follows:
     The mayor or chair of the board or commission of any municipality with a fire department, or his or her designee, shall be chair of the firefighter board of trustees, and the clerk or comptroller or secretary of any such municipality, board, or commission, or his or her designee, shall be the secretary-treasurer of the board of trustees.
     The secretary shall keep a public record of all proceedings and of all receipts and disbursements made by the board of trustees, shall make an annual report of its expenses and disbursements with a full list of the beneficiaries of the principal fund in the municipality, and shall make all required reports to the ((state board)) department. The ((state board)) department shall provide all necessary forms to firefighter boards of trustees.

Sec. 5   RCW 41.24.080 and 1999 c 148 s 8 are each amended to read as follows:
     The board of trustees of each municipal corporation shall provide for enrollment of all members of its fire department under the relief provisions of this chapter; provide for enrollment of all its reserve officers under the relief provisions of this chapter if it has extended these relief provisions to its reserve officers; receive all applications for the enrollment under the retirement pension provisions of this chapter when the municipality has extended these retirement pension provisions to its firefighters or reserve officers; provide for disbursements of relief; determine the eligibility of firefighters and reserve officers for retirement pensions; and pass on all claims and direct payment thereof from the principal fund to those entitled thereto. Vouchers shall be issued to the persons entitled thereto by the local board. It shall send to the ((state board)) department, after each meeting, a voucher for each person entitled to payment from the principal fund, stating the amount of such payment and for what granted, which voucher shall be certified and signed by the chair and secretary of the local board. The ((state board)) department, after review and approval, shall cause a warrant to be issued on the principal fund for the amount specified and approved on each voucher. However, in retirement pension cases after the applicant's eligibility for pension is verified, the ((state board)) department shall authorize the regular issuance of monthly warrants or electronic transfers of funds in payment of the retirement pension without further action of the board of trustees of any such municipality.

Sec. 6   RCW 41.24.110 and 1999 c 148 s 10 are each amended to read as follows:
     The local board shall make provisions for reimbursing regularly licensed practicing physicians and other medical staff who examine participants making application for membership. Physicians and other medical staff shall perform such services and operations and render all medical aid and care necessary for the recovery and treatment of participants on account of injury, sickness, or disability received while in the performance of duties and shall be paid for these services from the principal fund, but not in excess of the schedule of fees for like services approved by the director of labor and industries under Title 51 RCW. A physician or other medical staff, who is not approved by the local board, shall not receive or be entitled to any compensation from the principal fund as the private or attending physician or other private or attending medical staff of any participant. A person shall not have any right of action against the local board for the negligence of any physician or other medical staff who is reimbursed from the principal fund. Any physician or other medical staff who is reimbursed from the principal fund for providing service or care for a participant shall report his or her findings in writing to the local board and the ((state board)) department.

Sec. 7   RCW 41.24.120 and 1999 c 148 s 11 are each amended to read as follows:
     The local board shall initially hear and decide all applications for relief or retirement pensions under this chapter, subject to review by((, or)) the department, and appeal by the proper person to, the state board where decision on such ((review or)) appeal shall be final and conclusive.

Sec. 8   RCW 41.24.150 and 2001 c 134 s 1 are each amended to read as follows:
     (1)(a) Whenever a participant becomes physically or mentally disabled, injured, or sick, in consequence or as the result of the performance of his or her duties, so as to be wholly prevented from engaging in each and every duty of his or her regular occupation, business, or profession, he or she shall be paid from the principal fund monthly, an amount (i) equal to his or her monthly wage as certified by the local board or (ii) two thousand five hundred fifty dollars, whichever is less, for a period not to exceed six months, or an amount equal to his or her daily wage as certified by the local board or eighty-five dollars, whichever is less, per day for such period as is part of a month, after which period, if the member is incapacitated to such an extent that he or she is thereby prevented from engaging in any occupation or performing any work for compensation or profit or if the member sustained an injury after October 1, 1978, which resulted in the loss or paralysis of both legs or arms, or one leg and one arm, or total loss of eyesight, but such injury has not prevented the member from engaging in an occupation or performing work for compensation or profit, he or she is entitled to draw from the fund monthly, the sum of one thousand two hundred seventy-five dollars so long as the disability continues, except as hereinafter provided. However, if the participant has a wife or husband and/or a child or children unemancipated or under eighteen years of age, he or she is entitled to draw from the fund monthly the additional sums of two hundred fifty-five dollars because of the fact of his wife or her husband, and one hundred ten dollars because of the fact of each child unemancipated or under eighteen years of age, all to a total maximum amount of two thousand five hundred fifty dollars.
     (b) Beginning on July 1, 2001, and each July 1st thereafter, the compensation amounts specified in (a)(ii) of this subsection shall be readjusted to reflect the percentage change in the consumer price index, calculated as follows: The index for the calendar year preceding the year in which the July calculation is made, to be known as "calendar year A," is divided by the index for the calendar year preceding calendar year A, and the resulting ratio is multiplied by the compensation amount in effect on June 30th immediately preceding the July 1st on which the respective calculation is made. For the purposes of this subsection, "index" means the same as the definition in RCW 2.12.037(1).
     (2) The ((state board)) department may at any time reopen the grant of such disability pension if the pensioner is gainfully employed, and may reduce it in the proportion that the annual income from such gainful employment bears to the annual income received by the pensioner at the time of his or her disability.
     (3) Where a participant sustains a permanent partial disability the ((state board)) department may provide that the injured participant receive a lump sum compensation therefor to the same extent as is provided for permanent partial disability under the workers' compensation act under Title 51 RCW in lieu of such monthly disability payments.

Sec. 9   RCW 41.24.155 and 2007 c 57 s 1 are each amended to read as follows:
     (1) One of the primary purposes of this section is to enable injured participants to return to their regular occupation, business, or profession, or to engage in any occupation or perform any work for compensation or profit. To this end, the ((state board)) department shall utilize the services of individuals and organizations, public or private, whose experience, training, and interests in vocational rehabilitation and retraining qualify them to lend expert assistance to the ((state board)) department in such programs of vocational rehabilitation as may be reasonable to make the participant return to his or her regular occupation, business, or profession, or to engage in any occupation or perform any work for compensation or profit consistent with his or her physical and mental status. After evaluation and recommendation by such individuals or organizations and prior to final evaluation of the participant's permanent disability, if in the sole opinion of the ((state board)) department, whether or not medical treatment has been concluded, vocational rehabilitation is both necessary and likely to enable the injured participant to return to his or her regular occupation, business, or profession, or to engage in any occupation or perform any work for compensation or profit, the ((state board)) department may, in its sole discretion, pay the cost as provided in subsection (3) or (4) of this section.
     (2) When, in the sole discretion of the ((state board)) department, vocational rehabilitation is both necessary and likely to make the participant return to his or her regular occupation, business, or profession, or to engage in any occupation or perform any work for compensation or profit, then the following order of priorities shall be used:
     (a) Return to the previous job with the same employer;
     (b) Modification of the previous job with the same employer including transitional return to work;
     (c) A new job with the same employer in keeping with any limitations or restrictions;
     (d) Modification of a new job with the same employer including transitional return to work;
     (e) Modification of the previous job with a new employer;
     (f) A new job with a new employer or self-employment based upon transferable skills;
     (g) Modification of a new job with a new employer;
     (h) A new job with a new employer or self-employment involving on-the-job training;
     (i) Short-term retraining and job placement.
     (3)(a) Except as provided in (b) of this subsection, costs for vocational rehabilitation benefits allowed by the ((state board)) department under subsection (1) of this section may include the cost of books, tuition, fees, supplies, equipment, transportation, child or dependent care, and other necessary expenses in an amount not to exceed four thousand dollars. This amount must be used within fifty-two weeks of the determination that vocational rehabilitation is permitted under this section.
     (b) The expenses allowed under (a) of this subsection may include training fees for on-the-job training and the cost of furnishing tools and other equipment necessary for self-employment or reemployment. However, compensation or payment of retraining with job placement expenses under (a) of this subsection may not be authorized for a period of more than fifty-two weeks, except that such period may, in the sole discretion of the ((state board)) department, after its review, be extended for an additional fifty-two weeks or portion thereof by written order of the ((state board)) department. However, under no circumstances shall the total amount of benefit paid under this section exceed four thousand dollars.
     (4) In addition to the vocational rehabilitation expenditures provided for under subsection (3) of this section, an additional five thousand dollars may, upon authorization of the ((state board)) department, be expended for: (a) Accommodations for an injured participant that are medically necessary for participation in an approved retraining plan; and (b) accommodations necessary to perform the essential functions of an occupation in which an injured participant is seeking employment, consistent with the retraining plan or the recommendations of a vocational evaluation. The injured participant's attending physician or licensed advanced registered nurse practitioner must verify the necessity of the modifications or accommodations. The total expenditures authorized in this subsection shall not exceed five thousand dollars.
     (5) The ((state board)) department shall follow the established criteria set forth by the department of labor and industries to monitor the quality and effectiveness of rehabilitation services provided by the individuals and organizations used under subsection (1) of this section. The ((state board)) department shall make referrals for vocational rehabilitation services based on these performance criteria.
     (6) The ((state board)) department may engage, where feasible and cost-effective, in a cooperative program with the state employment security department to provide job placement services under this section.
     (7) Except as otherwise provided in this section, the vocational benefits provided for in this section are available to participants who have claims currently pending as of April 17, 2007, or whose injury occurred on or after January 1, 2006.

Sec. 10   RCW 41.24.160 and 2001 c 134 s 2 are each amended to read as follows:
     (1)(a) Whenever a participant dies as the result of injuries received, or sickness contracted in consequence or as the result of the performance of his or her duties, the board of trustees shall order and direct the payment from the principal fund of (i) the sum of one hundred fifty-two thousand dollars to his widow or her widower, or if there is no widow or widower, then to his or her dependent child or children, or if there is no dependent child or children, then to his or her dependent parents or either of them, or if there are no dependent parents or parent, then the death benefit shall be paid to the member's estate, and (ii)(A) the sum of one thousand two hundred seventy-five dollars per month to his widow or her widower during his or her life together with the additional monthly sum of one hundred ten dollars for each child of the member, unemancipated or under eighteen years of age, dependent upon the member for support at the time of his or her death, (B) to a maximum total of two thousand five hundred fifty dollars per month.
     (b) Beginning on July 1, 2001, and each July 1st thereafter, the compensation amount specified in (a)(ii)(B) of this subsection shall be readjusted to reflect the percentage change in the consumer price index, calculated as follows: The index for the calendar year preceding the year in which the July calculation is made, to be known as "calendar year A," is divided by the index for the calendar year preceding calendar year A, and the resulting ratio is multiplied by the compensation amount in effect on June 30th immediately preceding the July 1st on which the respective calculation is made. For the purposes of this subsection, "index" means the same as the definition in RCW 2.12.037(1).
     (2) If the widow or widower does not have legal custody of one or more dependent children of the deceased participant or if, after the death of the participant, legal custody of such child or children passes from the widow or widower to another person, any payment on account of such child or children not in the legal custody of the widow or widower shall be made to the person or persons having legal custody of such child or children. Such payments on account of such child or children shall be subtracted from the amount to which such widow or widower would have been entitled had such widow or widower had legal custody of all the children and the widow or widower shall receive the remainder after such payments on account of such child or children have been subtracted. If there is no widow or widower, or the widow or widower dies while there are children, unemancipated or under eighteen years of age, then the amount of one thousand two hundred seventy-five dollars per month shall be paid for the youngest or only child together with an additional one hundred ten dollars per month for each additional of such children to a maximum of two thousand five hundred fifty dollars per month until they become emancipated or reach the age of eighteen years; and if there are no widow or widower, child, or children entitled thereto, then to his or her parents or either of them the sum of one thousand two hundred seventy-five dollars per month for life, if it is proved to the satisfaction of the board that the parents, or either of them, were dependent on the deceased for their support at the time of his or her death. In any instance in subsections (1) and (2) of this section, if the widow or widower, child or children, or the parents, or either of them, marries while receiving such pension the person so marrying shall thereafter receive no further pension from the fund.
     (3) In the case provided for in this section, the monthly payment provided may be converted in whole or in part into a lump sum payment, not in any case to exceed twelve thousand dollars, equal or proportionate, as the case may be, to the actuarial equivalent of the monthly payment in which event the monthly payments shall cease in whole or in part accordingly or proportionately. Such conversion may be made either upon written application to the ((state board)) department and shall rest in the discretion of the ((state board)) department; or the ((state board)) department is authorized to make, and authority is given it to make, on its own motion, lump sum payments, equal or proportionate, as the case may be, to the value of the annuity then remaining in full satisfaction of claims due to dependents. Within the rule under this subsection the amount and value of the lump sum payment may be agreed upon between the applicant and the ((state board)) department.

Sec. 11   RCW 41.24.172 and 1999 c 148 s 16 and 1999 c 117 s 6 are each reenacted and amended to read as follows:
     Before beginning to receive the retirement pension provided for in RCW 41.24.170, the participant shall elect, in a writing filed with the ((state board)) department, to have the retirement pension paid under either option 1 or 2, with option 2 calculated so as to be actuarially equivalent to option 1.
     (1) Option 1. A participant electing this option shall receive a monthly pension payable throughout the participant's life. However, if the participant dies before the total retirement pension paid to the participant equals the amount paid on behalf of the participant into the principal fund, then the balance shall be paid to the participant's surviving spouse, or if there be no surviving spouse, then to the participant's legal representatives.
     (2) Option 2. A participant electing this option shall receive a reduced monthly pension, which upon the participant's death shall be continued throughout the life of and paid to the participant's surviving spouse named in the written election filed with the ((state board)) department, however, in the event that the surviving spouse dies before the participant, the participant's monthly retirement allowance shall increase, effective the first day of the following month, to the monthly amount that would have been received had the participant elected option 1.

Sec. 12   RCW 41.24.185 and 2003 c 62 s 2 are each amended to read as follows:
     Any monthly pension, payable under this chapter, which will not amount to fifty dollars may be converted into a lump sum payment equal to the actuarial equivalent of the monthly pension. The conversion may be made either upon written application to the ((state board)) department and shall rest at the discretion of the ((state board)) department; or the ((state board)) department may make, on its own motion, lump sum payments, equal or proportionate, as the case may be, to the value of the annuity then remaining in full satisfaction of claims due. Any person receiving a monthly payment of less than twenty-five dollars at the time of September 1, 1979, may elect, within two years, to convert such payments into a lump sum payment as provided in this section.

Sec. 13   RCW 41.24.190 and 1995 c 11 s 11 are each amended to read as follows:
     The filing of reports of enrollment shall be prima facie evidence of the service of the participants therein listed for the year of such report as to service rendered subsequent to July 6, 1945. Proof of service of ((firefighters [participants])) participants prior to that date shall be by documentary evidence, or such other evidence reduced to writing and sworn to under oath, as shall be submitted to the ((state board)) department and certified by it as sufficient.

Sec. 14   RCW 41.24.210 and 1999 c 148 s 19 are each amended to read as follows:
     A participant shall not receive relief for disability, sickness, or injuries received in the performance of his or her duties, unless there is filed with the board of trustees a report of accident, which report shall be subscribed to by the claimant, the head of the department, and the authorized attending physician, if there is one. A claim for benefits arising from disability, sickness, or injuries incurred in consequence or as a result of the performance of duties shall not be allowed by the ((state board)) department unless there has been filed with it a report of accident within ninety days after its occurrence and a claim based thereon within one year after the occurrence of the accident on which such claim is based. The ((state board)) department may require such other or further evidence as it deems advisable before ordering any relief.

Sec. 15   RCW 41.24.215 and 2005 c 37 s 3 are each amended to read as follows:
     (1) If an injured volunteer seeks damages from a third party, the ((state board)) department may also seek recovery of actual costs from the responsible third party. A volunteer seeking damages from a third party is required to notify the ((state board)) department about the legal proceeding.
     (2) The ((state board)) department is responsible for its proportionate share of the costs and attorneys' fees of the legal proceedings.
     (3) Any recovery is subject to a lien by the ((state board)) department for its share under this section.
     (4) This section does not restrict or prohibit the ((state board's)) department's right to seek recovery from a third party when a volunteer firefighter is injured.

Sec. 16   RCW 41.24.245 and 1999 c 148 s 22 are each amended to read as follows:
     (1) If the ((state board or the secretary)) department makes payments to a spouse or ex spouse to the extent expressly provided for in any court decree of dissolution or legal separation or in any court order or court-approved property settlement agreement incident to a court decree of dissolution or legal separation, it shall be a sufficient answer to any claim of a beneficiary against the ((state board, the secretary,)) department or the principal fund for the ((state board or secretary)) department to show that the payments were made pursuant to a court decree.
     (2) All payments made to a nonmember spouse or ex spouse pursuant to RCW 41.24.240 shall cease upon the death of such a nonmember spouse or ex spouse. Upon such a death, the ((state board and the secretary)) department shall pay to the member his or her full monthly entitlement of benefits.
     (3) The provisions of RCW 41.24.240 and this section shall apply to all court decrees of dissolution or legal separation and court-approved property settlement agreements, regardless of when entered, but shall apply only to those persons who have actually retired or who have requested withdrawal of any or all of their contributions to the principal fund: PROVIDED, That the ((state board or secretary)) department shall not be responsible for making court-ordered divisions of withdrawals unless the order is filed with the ((state board)) department at least thirty days before the withdrawal payment date.

Sec. 17   RCW 41.24.290 and 1999 c 148 s 25 are each amended to read as follows:
     The state board shall:
     (1) ((Generally supervise and control the administration of this chapter;
     (2) Promulgate, amend, or repeal rules and regulations
)) Advise the department on the adoption, amendment, and repeal of rules not inconsistent with this chapter for the purpose of effecting a uniform and efficient manner of carrying out the provisions of this chapter and the purposes to be accomplished thereby, and for the government of boards of trustees of the municipalities of this state in the discharge of their functions under this chapter;
     (((3) Review any action, and)) (2) Hear and determine any appeal which may be taken from the decision of the department or the board of trustees of any municipality made pursuant to this chapter;
     (((4) Take such action)) (3) Advise the department on such actions as may be necessary to secure compliance of the municipalities governed by this chapter and to provide for the collection of all fees and penalties which are, or may be, due and delinquent from any such municipality;
     (((5))) (4) Review and advise the department on the action of the board of trustees of any municipality authorizing any pension as provided by this chapter; ((and authorize the regular issuance of monthly warrants in payment thereof without further action of the board of trustees of such municipality;
     (6) Require periodic reports from the recipient of any benefits under this chapter for the purpose of determining their continued eligibility therefor;
     (7) Maintain such records as may be necessary and proper for the proper maintenance and operation of the principal fund, including records of the names of every person enrolled under this chapter, and provide all necessary forms to enable local boards of trustees to effectively carry out their duties as provided by this chapter;
     (8)
)) (5) Compel the taking of testimony, for purposes of hearing appeals, from witnesses under oath before the state board, or any member ((or the secretary)) thereof, or before the department or any member thereof, or before the local board of trustees or any member thereof, for the purpose of obtaining evidence, at any time, in connection with any claim or pension pending or authorized for payment. For such purpose the state board shall have the same power of subpoena as prescribed in RCW 51.52.100. Failure of any claimant to appear and give any testimony as herein provided shall suspend any rights or eligibility to receive payments for the period of such failure to appear and testify;
     (((9) Appoint a secretary to hold office at the pleasure of the state board, fix the secretary's compensation at such sum as it shall deem appropriate, and prescribe the secretary's duties not otherwise provided by this chapter)) (6) Review and adopt such actuarial factors as necessary to provide the benefits authorized under this chapter;
     (7) Study issues related to the administration of this chapter and the benefits provided therein, and recommend changes to the department or the legislature as deemed necessary;
     (8) Annually review and adopt fees based on the latest actuarial valuation of the system as provided for in RCW 41.24.030; and
     (9) Review and advise the department on legislative appropriation requests to be submitted in accordance with RCW 41.24.030(4)(c)
.

Sec. 18   RCW 41.24.300 and 1999 c 148 s 26 are each amended to read as follows:
     All expenses incurred by the ((state board)) department shall be ((accomplished by vouchers signed by the secretary and one member of the state board and)) issued to the persons entitled thereto and sent to the proper state agency. The proper state agency shall issue a warrant on the principal fund or administrative fund for the amount specified.

Sec. 19   RCW 41.24.310 and 1999 c 148 s 27 are each amended to read as follows:
     The ((secretary shall maintain an office at Olympia at a place to be provided, wherein the secretary shall)) department shall be granted the general powers, duties, and functions provided in chapter 41.50 RCW, for purposes of administering the retirement systems in RCW 41.50.030, to administer the benefits provided for in this chapter, to include but not be limited to:
     (1) Keep a record of all proceedings of the state board, which shall be public;
     (2) Maintain a record of all members of the pension fund, including such pertinent information relative thereto as may be required by law or rule of the state board;
     (3) Receive and promptly remit to the state treasurer all moneys received for the principal fund;
     (4) Transmit periodically to the proper state agency for payment all claims payable from the principal fund, stating the amount and purpose of such payment;
     (5) Certify monthly for payment a list of all persons approved for retirement pensions and the amount to which each is entitled; ((and))
     (6) ((Perform such other and further duties as shall be prescribed by the state board.
     The secretary shall receive such compensation as shall be fixed by the state board, together with travel expenses in carrying out his or her duties authorized by the state board in accordance with RCW 43.03.050 and 43.03.060
)) Provide such administrative and staff support as necessary for the state board to perform the duties authorized in this chapter;
     (7) Require periodic reports from the recipient of any benefits under this chapter for the purpose of determining their continued eligibility therefor;
     (8) Maintain such records as may be necessary and proper for the proper maintenance and operation of the principal fund, including records of the names of every person enrolled under this chapter, and provide all necessary forms to enable local boards of trustees to effectively carry out their duties as provided by this chapter;
     (9) Engage, in consultation with the state board, where feasible and cost-effective, in a cooperative program with other state agencies to provide the services under this chapter
.

Sec. 20   RCW 41.24.340 and 1999 c 148 s 30 are each amended to read as follows:
     The chair of the county legislative authority, or the chair's designee, shall be chair of the emergency medical service district board of trustees, and the county auditor, or the auditor's designee, shall be the secretary-treasurer of the emergency medical service district board of trustees.
     The secretary shall keep a public record of all proceedings and of all receipts and disbursements made by the emergency medical service district board of trustees, shall make an annual report of its expenses and disbursements with a full list of the beneficiaries of the principal fund in the county, and shall make all required reports to the ((state board)) department. The ((state board)) department shall provide all necessary forms to emergency worker boards of trustees.

Sec. 21   RCW 41.24.410 and 1995 c 11 s 4 are each amended to read as follows:
     Credit for service as a reserve officer shall not be counted for purposes of RCW 41.24.170 except as stated in this section: Within one year of an election to cover reserve officers under the retirement provisions of this chapter, the municipality must elect, on a one-time basis, one of the following:
     (1)(a) To count credit for service only after July 23, 1995;
     (b) To pay annual fees only for service after July 23, 1995; or
     (2)(a) To count credit for all service as a reserve officer, but only if the actuarial cost, as determined by the ((state board)) department, is paid by the municipality. The municipality may charge reserve officers for any portion of the cost; and
     (b) To pay annual fees only for service after July 23, 1995; or
     (3)(a) To count credit for all service as a reserve officer, but only if the actuarial cost, as determined by the ((state board)) department, is paid by the municipality. The municipality may charge reserve officers for any portion of the cost; and
     (b) To pay annual fees for service prior to July 23, 1995, if:
     (i) The reserve officer elects, within one year of the municipality's election under this section, to pay the annual fee plus one percent per month interest for each year of past service counted; and
     (ii) The municipality pays the actuarial cost, as determined by the ((state board)) department, of the benefit provided in (b) of this subsection. The municipality may charge reserve officers for any portion of the cost.
     Payments under this section may be made in a lump sum or in a manner prescribed by the ((state board)) department.

Sec. 22   RCW 41.24.460 and 1999 c 148 s 33 are each amended to read as follows:
     A municipality that adopts appropriate legislation extending the relief provisions of this chapter to its reserve officers shall create a reserve officer board of trustees to administer this chapter composed as follows:
     (1) A county reserve officer board of trustees shall consist of the following five members: (a) Two members of the county legislative authority and the county auditor, or their designees; (b) the sheriff; and (c) one reserve officer who is elected by reserve officers of the county for an annual one-year term.
     (2) Any other reserve officer board of trustees shall consist of the following five members: (a) The mayor, if one exists for the municipality, and one member of the municipality's legislative authority, or two members of the municipality's legislative authority if a mayor does not exist for the municipality, or their designees; (b) the clerk, comptroller, or chief fiscal officer of the municipality; (c) the head of the law enforcement agency; and (d) one reserve officer who is elected by reserve officers of the municipality for an annual term of one year.
     (3) The secretary of the board of trustees shall keep a public record of all proceedings and of all receipts and disbursements made by the board of trustees, shall make an annual report of its expenses and disbursements with a full list of the beneficiaries of the principal fund in the municipality, and shall make all required reports to the ((state board)) department. The ((state board)) department shall provide the boards of trustees with all necessary forms.

NEW SECTION.  Sec. 23   (1) The state board for volunteer firefighters and reserve officers is transferred to the department of retirement systems.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the state board for volunteer firefighters and reserve officers shall be delivered to the custody of the department of retirement systems. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the state board for volunteer firefighters and reserve officers shall be made available to the department of retirement systems. All funds, credits, or other assets held by the state board for volunteer firefighters and reserve officers shall be assigned to the department of retirement systems.
     (b) Any appropriations made to the state board for volunteer firefighters and reserve officers shall, on the effective date of this section, be transferred and credited to the department of retirement systems.
     (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the state board for volunteer firefighters and reserve officers are transferred to the jurisdiction of the department of retirement systems. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of retirement systems to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the state board for volunteer firefighters and reserve officers shall be continued and acted upon by the department of retirement systems. All existing contracts and obligations shall remain in full force and shall be performed by the department of retirement systems.
     (5) The transfer of the powers, duties, functions, and personnel of the state board for volunteer firefighters and reserve officers shall not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) All classified employees of the state board for volunteer firefighters and reserve officers assigned to the department of retirement systems under this act whose positions are within an existing bargaining unit description at the department of retirement systems shall become a part of the existing bargaining unit at the department of retirement systems and shall be considered an appropriate inclusion or modification of the existing bargaining unit under the provisions of chapter 41.80 RCW.

NEW SECTION.  Sec. 24   This act takes effect July 1, 2010.

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