BILL REQ. #:  H-4157.1 

Read first time 02/03/2004.   Referred to Committee on Appropriations.

     AN ACT Relating to creating a medical account for the catastrophic illnesses of law enforcement officers' and fire fighters' retirement system plan 1 members and beneficiaries; reenacting and amending RCW 43.79A.040; adding new sections to chapter 41.26 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 41.26 RCW under the subchapter heading "plan 1" to read as follows:
     The law enforcement officers' and fire fighters' retirement system plan 1 medical account is created in the custody of the state treasurer. All receipts from contributions under section 2 of this act must be deposited into the account. Expenditures from the account may be used only for the catastrophic medical expenses of employers for the benefit of members or beneficiaries as defined in rule under section 3 of this act. Only the director of retirement systems or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 2   A new section is added to chapter 41.26 RCW under the subchapter heading "plan 1" to read as follows:
     (1) Every member shall have deducted from each payroll a sum equal to six percent of basic salary minus any member contribution deducted under RCW 41.26.080 for deposit into the law enforcement officers' and fire fighters' retirement system plan 1 medical account under section 1 of this act.
     (2) Every employer shall contribute monthly a sum equal to six percent of basic salary for each plan 1 employee minus any employer contribution made under RCW 41.26.080 for deposit into the law enforcement officers' and fire fighters' retirement system plan 1 medical account under section 1 of this act.

NEW SECTION.  Sec. 3   The director of retirement systems shall adopt rules governing the qualifications necessary for the receipt of distributions from the law enforcement officers' and fire fighters' retirement system plan 1 medical account.

Sec. 4   RCW 43.79A.040 and 2003 c 403 s 9, 2003 c 313 s 10, 2003 c 191 s 7, 2003 c 148 s 15, 2003 c 92 s 8, and 2003 c 19 s 12 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 Washington promise scholarship account, the college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the students with dependents grant account, the basic health plan self-insurance reserve account, the contract harvesting revolving account, the Washington state combined fund drive account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the fruit and vegetable inspection account, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the law enforcement officers' and fire fighters' retirement system plan 1 medical account, the law enforcement officers' and fire fighters' plan 2 expense fund, the local tourism promotion account, the produce railcar pool 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((, and the investing in innovation account)). 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.