CERTIFICATION OF ENROLLMENT

HOUSE BILL 2877



61st Legislature
2010 Regular Session

Passed by the House February 13, 2010
  Yeas 94   Nays 0


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Speaker of the House of Representatives


Passed by the Senate March 4, 2010
  Yeas 48   Nays 0



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President of the Senate
CERTIFICATE

I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 2877 as passed by the House of Representatives and the Senate on the dates hereon set forth.



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Chief Clerk
Approved 









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Governor of the State of Washington
FILED







Secretary of State
State of Washington


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HOUSE BILL 2877
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Passed Legislature - 2010 Regular Session
State of Washington61st Legislature2010 Regular Session

By Representative Moeller

Read first time 01/15/10.   Referred to Committee on Ways & Means.



     AN ACT Relating to authorizing payment of regulated company stock in lieu of a portion of salary for educational employees; and amending RCW 28A.400.250.

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

Sec. 1   RCW 28A.400.250 and 1984 c 228 s 1 are each amended to read as follows:
     (1) The board of directors of any school district, the Washington state teachers' retirement system, the superintendent of public instruction, and educational service district superintendents are authorized to provide and pay for tax deferred annuities or regulated company stock held in a custodial account for their respective employees in lieu of a portion of salary or wages as authorized under the provisions of 26 U.S.C.((,)) section 403(b), as amended by Public Law 87-370, 75 Stat. 796, as now or hereafter amended. The superintendent of public instruction and educational service district superintendents, if eligible, may also be provided with such ((annuities)) options.
     (2) At the request of at least five employees, the employees' employer shall arrange for the:
     (a) P
urchase of tax deferred annuity contracts which meet the requirements of 26 U.S.C.((,)) section 403(b), as now or hereafter amended, for the employees from any company the employees may choose that is authorized to do business in this state through a Washington-licensed insurance agent that the employees may select; or
     (b) Payment to a custodial account for investment in the stock of a regulated investment company as defined in 26 U.S.C. section 403(b)(7)(c)
.
     (3) Payroll deductions shall be made in accordance with the arrangements for the purpose of paying the entire premium due and to become due under the contracts. Employees' rights under the annuity contract are nonforfeitable except for the failure to pay premiums.
     (4) The board of directors of any school district, the Washington state teachers' retirement system, the superintendent of public instruction, and educational service district superintendents shall not restrict, except as provided in this section, employees' right to select the tax deferred annuity of their choice, the regulated company stock held in a custodial account, or the agent, broker, or company licensed by the state of Washington through which the tax deferred annuity or regulated company stock is placed or purchased, and shall not place limitations on the time or place that the employees make the selection.
     (5) The board of directors of any school district, the Washington state teachers' retirement system, the superintendent of public instruction, and educational service district superintendents may each adopt rules regulating the sale of tax deferred annuities or regulated company stock held in a custodial account which: (((1))) (a) Prohibit solicitation of employees for the purposes of selling tax deferred annuities or regulated company stock held in a custodial account on school premises during normal school hours; (((2))) (b) only permit the solicitation of tax deferred annuities or regulated company stock held in a custodial account by agents, brokers, and companies licensed by the state of Washington; and (((3))) (c) require participating companies to execute reasonable agreements protecting the respective employers from any liability attendant to procuring tax deferred annuities or regulated company stock held in a custodial account.

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