H-3789              _______________________________________________

                                                   HOUSE BILL NO. 1840

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Jacobsen, Patrick and Hine

Read first time 1/23/86 and referred to Committee on Local Government.

AN ACT Relating to governmental deferred compensation plans; amending RCW 39.36.030; and adding a new section to chapter 41.04 RCW.

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

        Sec. 1.  Section 2, chapter 143, Laws of 1917 as amended by section 1, chapter 123, Laws of 1921 and RCW 39.36.030 are each amended to read as follows:

          Whenever it shall be necessary to compute the indebtedness of a taxing district for bonding or any other indebtedness purposes, taxes levied for the current year and cash on hand received for the purpose of carrying on the business of such taxing district for such current year shall be considered as an asset only as against indebtedness incurred during such current year which is payable from such taxes or cash on hand:  PROVIDED, HOWEVER, That all taxes levied for the payment of bonds, warrants, or other public debts of such taxing district, shall be deemed a competent and sufficient asset of the taxing district to be considered in calculating the constitutional debt limit or the debt limit prescribed by this chapter for any taxing district((:  PROVIDED, That the provisions of this section shall not apply in computing the debt limit of a taxing district in connection with bonds authorized pursuant to a vote of the electors at an election called prior to March 1, 1917)).

Compensation withheld, and earnings thereon, under a deferred compensation plan authorized by RCW 41.04.250 shall not be considered in computing the indebtedness of a taxing district to the extent that assets under the plan equal or exceed liabilities owing to participants in the plan.

NEW SECTION. Sec. 2.  A new section is added to chapter 41.04 RCW to read as follows:

          A municipality may authorize a plan administrator, a financial institution, or an insurance, annuity, or investment company, or any combination thereof, carrying out a deferred compensation plan authorized by RCW 41.04.250 to make payment of benefits directly to the participant or beneficiary and intergovernmental plan transfers directly to the authorized recipient instead of receiving and depositing the payments into the municipal treasury and then making payment to the participant or beneficiary of the governmental recipient respectively from the municipal treasury by municipal warrant.