BILL REQ. #:  S-1326.1 

Read first time 03/01/2005.   Referred to Committee on Ways & Means.

     AN ACT Relating to creating a fund to reimburse group life insurance premiums paid by members of the Washington state national guard; reenacting and amending RCW 43.79A.040; adding a new section to chapter 38.24 RCW; creating a new section; and declaring an emergency.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that:
     (a) The Washington national guard has a proud tradition of military service with thousands of Washington residents having answered the call of the nation and served in the national guard;
     (b) There have been instances in which the dependents of members of the Washington national guard have been left without adequate financial resources when a national guard member has been killed while on active duty;
     (c) Members of the Washington national guard are now being asked to serve extended periods of active duty in combat areas;
     (d) Members of the Washington national guard are eligible for life insurance policies with limits up to two hundred fifty thousand dollars through the federal service members' group life insurance program; and
     (e) Members of the Washington national guard provide Washington and its citizens valuable benefits through their service inside this state and through their recently extended periods of active duty in combat areas outside of Washington, and in exchange for these extended periods of active duty they should receive assistance with their premiums for the federal service members' group life insurance program.
     (2) The purpose of creating and funding the national guard life insurance reimbursement account is to provide a benefit to members of the Washington national guard in exchange for and in recognition of their assumption of extended periods of active duty in combat areas, in addition to their increased contributions to the safety and welfare of the citizens of the state of Washington.

NEW SECTION.  Sec. 2   A new section is added to chapter 38.24 RCW to read as follows:
     (1) The Washington national guard life insurance reimbursement account is created in the custody of the state treasurer. All receipts from appropriations, gifts, grants, donations, and bequests to the fund must be deposited into the account. Expenditures from the account may be used only for reimbursing eligible members of the Washington national guard for premiums paid for benefits under the service members' group life insurance program under 38 U.S.C. Sec. 1965 et seq. as amended. Only the adjutant general or a 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.
     (2) The state military department shall adopt rules necessary to determine eligibility for reimbursement from the account and to implement a reimbursement program.
     (3) This section does not alter, amend, or change the eligibility or applicability of the service members' group life insurance program pursuant to 38 U.S.C. Sec. 1965 et seq., as amended, or any rights, responsibilities, or benefits thereunder.
     (4) This section applies to premiums paid on or after the effective date of this section.

Sec. 3   RCW 43.79A.040 and 2004 c 246 s 8 and 2004 c 58 s 10 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 future teachers conditional scholarship account, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive 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, the children's trust fund, the Washington horse racing commission Washington bred owners' bonus fund account, the Washington horse racing commission class C purse fund account, ((and)) the Washington horse racing commission operating account (earnings from the Washington horse racing commission operating account must be credited to the Washington horse racing commission class C purse fund account), and the Washington national guard life insurance reimbursement 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.

NEW SECTION.  Sec. 4   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.