BILL REQ. #:  S-3620.2 

Read first time 01/20/14.   Referred to Committee on Financial Institutions, Housing & Insurance.

     AN ACT Relating to creating the save toward a retirement today state retirement savings plan; amending RCW 43.33A.070; reenacting and amending RCW 43.84.092 and 43.84.092; adding new sections to chapter 41.50 RCW; providing a contingent effective date; and providing a contingent expiration date.

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

NEW SECTION.  Sec. 1   The legislature finds that the majority of small and medium sized businesses are not offering retirement plans to their employees. Reasons cited by small businesses for not offering retirement plans are complexity and costs. Businesses offering retirement plans have a better ability to recruit and retain employees. The start retirement savings plan provides a simple and cost-effective way for employers to offer an important employee benefit. The legislature also finds that many employees do not have access to an employment-based retirement plan. On their own, few people contribute to an individual retirement account and those that do often make poor investment choices. Barriers such as not knowing where to find a quality product and selecting between the complex array of investment choices contribute to inaction. The complexity of investment options also leads many people to pick the safest, lowest-return products, which means losing the traditional long-term gains of the market and is particularly troublesome for younger and mid-career employees. One in six seniors retire in poverty today and access to retirement savings vehicles and pensions is on the decline. Employees who are unable to build up pensions and savings risk living on low incomes in their old age and are more likely to become dependent on state services. It is in the financial best interest of the state to address this problem quickly. The start retirement savings plan provides a simple and inexpensive way for small business owners and their employees to save for retirement.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this subchapter unless the context clearly requires otherwise.
     (1) "Enrollee" means any employer or employee in this state that is enrolled in the start retirement savings plan.
     (2) "Eligible employer" means a person engaged in a business, an industry, a profession, a trade, or any other enterprise in the state, whether for profit or not for profit, that satisfies the requirements to establish or participate in the start retirement savings plan.
     (3) "Participating employer" means any private or nonprofit employer with employees enrolled in the start retirement savings plan.
     (4) "Qualified default investment alternative" means types of investments identified by the federal internal revenue service for employees that do not make an investment choice or are automatically enrolled in a retirement plan.
     (5) "Qualified employee" means those workers that are defined by the federal internal revenue service to be eligible to participate in a specific retirement plan.
     (6) "Start principal account" means the account created in section 7(6) of this act.
     (7) "Start retirement savings plan" means the retirement savings plan created in section 3 of this act.

NEW SECTION.  Sec. 3   (1)(a) The start retirement savings plan is created. The director is responsible for the design, implementation, and operation of the start retirement savings plan, directly or by contract. The director may employ a staff and hire consultants, administrators, and other professionals as necessary to help implement, maintain, and administer the start retirement savings plan.
     (b) The start retirement savings plan must ultimately be self-sustaining, with funding derived from the fees paid by individual account holders. State general fund dollars may be allocated to the department for the start retirement savings plan operations until it reaches self-sustainability. The start retirement savings plan may use other sources for startup capital. At no time shall funds from the department of retirement systems expense account be used to administer the start retirement savings plan or to obtain funding. At no time may the start retirement savings plan funds be commingled with public sector employee retirement funds.
     (2)(a) The start retirement savings plan shall consist of a two-tier system with one or more: Internal revenue service approved employer plans open to all employers who choose to contribute to their employees' accounts, and internal revenue service approved workplace-based individual retirement accounts open to all employees of participating employers.
     (b) Any employer sponsored plan shall be open only to employers employing fewer than one hundred qualified employees at the time of enrollment. Self-employed individuals, independent contractors, and sole proprietorships without employees are also eligible to participate.
     (c) Prior to the enrollment of any private or nonprofit sector employee or employer in the start retirement savings plan, the director shall develop a plan for the structure and operation of the start retirement savings plan. The director shall seek approval, if necessary, from the federal internal revenue service to operate the plans and to offer the plans and accounts to Washington employers and employees on a tax-qualified basis.
     (d) The department shall design the start retirement savings plan to limit liability to the state and participating businesses. The department shall determine if section 404(c) of the federal employee retirement income security act of 1974 applies to the start retirement savings plan and, if so, shall take advantage of safe harbor provisions whenever possible. These provisions shall include the use of target date or other similar funds, the asset allocations and maturities of which are designed to coincide with the expected date of retirement as the qualified default investment alternative, and as few additional investment options as possible while still meeting the federal requirements of providing a broad range of investment alternatives.
     (e) Participation in the start retirement savings plan must be voluntary for employers. Employers can choose to participate by offering a plan that allows for their contribution to employee accounts or may establish a plan that only allows for employee contributions. Participation by employees is optional, though they may be automatically enrolled in employer plans that allow it. Employees automatically enrolled may choose not to participate by opting out. The plans and accounts must include the option for enrollees to roll pretax contributions into an individual retirement account or another eligible retirement plan after ceasing participation in the start retirement savings plan.
     (3) The department shall determine reasonable administrative fee levels for participant accounts.
     (4) Enrollment in the start retirement savings plan is not an entitlement and must not result in expenditures that exceed the amount available in the start principal account.

NEW SECTION.  Sec. 4   (1) The department may periodically review participation levels and fund balances in order to make projections of start retirement savings plan self-sustainability.
     (2)(a) At any time after the fourth year after the start retirement savings plan first began accepting participating employers, the department determines based on projections that the start retirement savings plan will not reach sustainable levels the start retirement savings plan may be terminated.
     (b) If at the end of the tenth year after the start retirement savings plan first began accepting participating employers, the start retirement savings plan has not reached the size necessary to be self-supporting with an appropriate level of administrative fees, the start retirement savings plan terminates.
     (c) In the event that the start retirement savings plan is terminated, the director shall, to the extent permitted by federal law, enable members to transfer accumulated funds into other tax-qualified retirement accounts.

NEW SECTION.  Sec. 5   Following the design and approval of the start retirement savings plan under section 3 of this act, the director shall adopt all rules necessary for the implementation and operation of the start retirement savings plan. Rules shall be written to comply with federal standards and may incorporate federal recommendations that are in the best interests of enrollees and the operations of the plan. As part of the rule development process, the director shall consult with employers, employees, private and nonprofit sector retirement plan administrators and providers, and any other individuals or entities that the director determines relevant to the development of an effective and efficient method for operating the start retirement savings plan.

NEW SECTION.  Sec. 6   The director may enter into agreements with and pay a fee to organizations and individuals that market and sell the start retirement savings plan, including but not limited to financial services companies, credit unions, and independent brokers and agents. The fee may vary based on the size of the business enrolled.

NEW SECTION.  Sec. 7   (1) The start principal account is created in the state treasury and shall be administered in compliance with applicable federal law and as set forth in this section. The department may make arrangements with financial institutions to serve as trustees or custodians of the start retirement savings plan as may be required or advisable to comply with applicable federal law and to provide for the efficient implementation and administration of the start retirement savings plan.
     (2) The contributions elected by participating employees in accordance with section 3 of this act shall be paid into the start principal account and shall be sufficient to cover costs of administration and staffing in addition to such other amounts as may be determined by the director. The account shall be used to carry out the purposes of this subchapter.
     (3) All moneys in the start principal account and the start administrative account, all property and rights purchased therewith, and all income attributable thereto, shall be held in trust by the state investment board, as set forth under RCW 43.33A.030, for the exclusive benefit of the start retirement savings plan participants and their beneficiaries, and, notwithstanding any other provision of this or related acts, shall be held separate from other types of funds to the extent required by federal law. Neither the participating employee, nor the participant's beneficiary or beneficiaries, nor any other designee, has any right to commute, sell, assign, transfer, or otherwise convey the right to receive any payments under the start retirement savings plan. These payments and rights are nonassignable and nontransferable. Account balances are not subject to attachment, garnishment, or execution and are not transferable by operation of law in event of bankruptcy or insolvency, except to the extent otherwise required by law.
     (4) The state investment board has the full power to invest moneys in the start principal account and the start administrative account in accordance with RCW 43.84.150, 43.33A.140, and this subchapter, and cumulative investment directions received under this subchapter. All investment and operating costs of the state investment board associated with the investment of the start retirement savings plan assets shall be paid under RCW 43.33A.160 and 43.84.160. With the exception of these expenses, one hundred percent of all earnings from these investments shall accrue directly to the start principal account.
     (5)(a) No state board, commission, or agency, or any officer, employee, or member thereof is liable for any loss or deficiency resulting from participant investments selected under this subchapter.
     (b) The state investment board, or any officer, employee, or member thereof is not liable for any loss or deficiency resulting from reasonable efforts to implement investment directions under this subchapter.
     (6) The start administrative account is created in the state treasury. Federal appropriations or philanthropic grants received specifically for the start retirement savings plan shall be deposited in the start administrative account. Expenses of the department pertaining to the start retirement savings plan including staffing and administrative expenses shall be paid out of the start administrative account. Any excess balances credited to this account over administrative expenses disbursed from this account shall be transferred to the start principal account at such time and in such amounts as may be determined by the director with the approval of the director of financial management. Any deficiency in the start administrative account caused by an excess of administrative expenses disbursed from this account shall be transferred to this account from the start principal account.
     (7)(a)(i) The director shall keep or cause to be kept full and adequate accounts and records of the assets of each individual participant, and obligations, transactions, and affairs of the start retirement savings plan. The department shall account for and report on the investment of the start retirement savings plan assets or may enter into an agreement with the state investment board for accounting and reporting.
     (ii) The director's duties related to individual participant accounts include conducting the activities of trade instruction, settlement activities, and direction of cash movement and related wire transfers with the custodian bank and outside investment firms.
     (iii) The director may establish contracts with recordkeepers to fulfill the duties of sections 1 through 7 of this act. The director has sole responsibility for contracting with any recordkeepers and shall manage the performance of recordkeepers under those contracts. In establishing contracts, the director shall give consideration to contracts that assign primary liability for all tort and contract actions to the contractor. In establishing such contracts, the department shall assume secondary liability and joint and several liability shall be preserved. When considering a contract that assigns primary liability to the contractor, the director shall determine the potential liability and the costs and benefits of adding this provision to contract language.
     (b) The director may contract with private sector financial services firms to enroll eligible private and nonprofit sector employers and employees in the start retirement savings plan. The director may establish contracts with financial services firms for this function.
     (c)(i) The director's duties under (a)(ii) of this subsection do not limit the authority of the state investment board to conduct its responsibilities for asset management and balancing of the start retirement savings plan funds.
     (ii) The state investment board has sole responsibility for contracting with outside investment firms to provide investment management for the start retirement savings plan funds and shall manage the performance of investment managers under those contracts. In establishing contracts, the state investment board shall give consideration to contracts that assign primary liability for all tort and contract actions to the contractor. In establishing such contracts, the state investment board shall assume secondary liability and joint and several liability shall be preserved. When considering a contract that assigns primary liability to the contractor, the state investment board shall determine the potential liability and the costs and benefits of adding this provision to contract language.
     (d) The state treasurer shall designate and define the terms of engagement for the custodial banks.

NEW SECTION.  Sec. 8   Private and nonprofit employers may provide employees with the opportunity to enroll in the start retirement savings plan, including providing for payroll deductions for those employees that enroll in the start retirement savings plan. Employers with employees enrolled in the start retirement savings plan are authorized to contract with the enrolled employees to defer or contribute a portion of the enrolled employees' compensation, in accordance with the start retirement savings plan rules.

NEW SECTION.  Sec. 9   The director shall report biennially to the relevant committees of the legislature on the effectiveness and efficiency of the start retirement savings plan, including the levels of enrollment, the financial status of the start retirement savings plan, and the retirement savings levels of participating enrollees.

NEW SECTION.  Sec. 10   If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

Sec. 11   RCW 43.33A.070 and 1981 c 3 s 7 are each amended to read as follows:
     No member of the state investment board is liable for the negligence, default, or failure of any other person or other member of the board to perform the duties of the member's office and no member of the board shall be considered or held to be an insurer of the funds or assets of any of the trust and retirement funds, including funds or assets of the start retirement savings plan, nor is any nonvoting member liable for actions performed with the exercise of reasonable diligence within the scope of the member's authorized activities as a member of the board.

Sec. 12   RCW 43.84.092 and 2013 2nd sp.s. c 23 s 24 and 2013 2nd sp.s. c 11 s 15 are each reenacted and amended to read as follows:
     (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.
     (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.
     (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury 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) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:
     (a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the Alaskan Way viaduct replacement project account, the brownfield redevelopment trust fund account, the budget stabilization account, the capital vessel replacement account, the capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the cleanup settlement account, the Columbia river basin water supply development account, the Columbia river basin taxable bond water supply development account, the Columbia river basin water supply revenue recovery account, the common school construction fund, the county arterial preservation account, the county criminal justice assistance account, the deferred compensation administrative account, the deferred compensation principal account, the department of licensing services account, the department of retirement systems expense account, the developmental disabilities community trust account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the Interstate 405 express toll lanes operations account, the education construction fund, the education legacy trust account, the election account, the energy freedom account, the energy recovery act account, the essential rail assistance account, The Evergreen State College capital projects account, the federal forest revolving account, the ferry bond retirement fund, the freight mobility investment account, the freight mobility multimodal account, the grade crossing protective fund, the public health services account, the high capacity transportation account, the state higher education construction account, the higher education construction account, the highway bond retirement fund, the highway infrastructure account, the highway safety fund, the high occupancy toll lanes operations account, the hospital safety net assessment fund, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the marine resources stewardship trust account, the medical aid account, the mobile home park relocation fund, the motor vehicle fund, the motorcycle safety education account, the multimodal transportation account, the multiuse roadway safety account, the municipal criminal justice assistance account, the natural resources deposit account, the oyster reserve land account, the pension funding stabilization account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public works assistance account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the real estate appraiser commission account, the recreational vehicle account, the regional mobility grant program account, the resource management cost account, the rural arterial trust account, the rural mobility grant program account, the rural Washington loan fund, the site closure account, the skilled nursing facility safety net trust fund, the small city pavement and sidewalk account, the special category C account, the special wildlife account, the start administrative account, the start principal account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the state patrol highway account, the state route number 520 civil penalties account, the state route number 520 corridor account, the state wildlife account, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the toll facility bond retirement account, the transportation 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, the transportation infrastructure account, the transportation partnership account, the traumatic brain injury account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer firefighters' and reserve officers' relief and pension principal fund, the volunteer firefighters' and reserve officers' administrative fund, the Washington judicial retirement system account, the Washington law enforcement officers' and firefighters' system plan 1 retirement account, the Washington law enforcement officers' and firefighters' system plan 2 retirement account, the Washington public safety employees' plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state economic development commission account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving administration account, the water pollution control revolving fund, the Western Washington University capital projects account, the Yakima integrated plan implementation account, the Yakima integrated plan implementation revenue recovery account, and the Yakima integrated plan implementation taxable bond account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, the state university permanent fund, and the state reclamation revolving account shall be allocated to their respective beneficiary accounts.
     (b) Any state agency that has independent authority over accounts or funds not statutorily required to be held in the state treasury that deposits funds into a fund or account in the state treasury pursuant to an agreement with the office of the state treasurer shall receive its proportionate share of earnings based upon each account's or fund's average daily balance for the period.
     (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

Sec. 13   RCW 43.84.092 and 2013 2nd sp.s. c 23 s 25 and 2013 2nd sp.s. c 11 s 16 are each reenacted and amended to read as follows:
     (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.
     (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.
     (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury 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) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:
     (a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the Alaskan Way viaduct replacement project account, the brownfield redevelopment trust fund account, the budget stabilization account, the capital vessel replacement account, the capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the cleanup settlement account, the Columbia river basin water supply development account, the Columbia river basin taxable bond water supply development account, the Columbia river basin water supply revenue recovery account, the Columbia river crossing project account, the common school construction fund, the county arterial preservation account, the county criminal justice assistance account, the deferred compensation administrative account, the deferred compensation principal account, the department of licensing services account, the department of retirement systems expense account, the developmental disabilities community trust account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the Interstate 405 express toll lanes operations account, the education construction fund, the education legacy trust account, the election account, the energy freedom account, the energy recovery act account, the essential rail assistance account, The Evergreen State College capital projects account, the federal forest revolving account, the ferry bond retirement fund, the freight mobility investment account, the freight mobility multimodal account, the grade crossing protective fund, the public health services account, the high capacity transportation account, the state higher education construction account, the higher education construction account, the highway bond retirement fund, the highway infrastructure account, the highway safety fund, the high occupancy toll lanes operations account, the hospital safety net assessment fund, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the marine resources stewardship trust account, the medical aid account, the mobile home park relocation fund, the motor vehicle fund, the motorcycle safety education account, the multimodal transportation account, the multiuse roadway safety account, the municipal criminal justice assistance account, the natural resources deposit account, the oyster reserve land account, the pension funding stabilization account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public works assistance account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the real estate appraiser commission account, the recreational vehicle account, the regional mobility grant program account, the resource management cost account, the rural arterial trust account, the rural mobility grant program account, the rural Washington loan fund, the site closure account, the skilled nursing facility safety net trust fund, the small city pavement and sidewalk account, the special category C account, the special wildlife account, the start administrative account, the start principal account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the state patrol highway account, the state route number 520 civil penalties account, the state route number 520 corridor account, the state wildlife account, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the toll facility bond retirement account, the transportation 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, the transportation infrastructure account, the transportation partnership account, the traumatic brain injury account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer firefighters' and reserve officers' relief and pension principal fund, the volunteer firefighters' and reserve officers' administrative fund, the Washington judicial retirement system account, the Washington law enforcement officers' and firefighters' system plan 1 retirement account, the Washington law enforcement officers' and firefighters' system plan 2 retirement account, the Washington public safety employees' plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state economic development commission account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving administration account, the water pollution control revolving fund, the Western Washington University capital projects account, the Yakima integrated plan implementation account, the Yakima integrated plan implementation revenue recovery account, and the Yakima integrated plan implementation taxable bond account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, the state university permanent fund, and the state reclamation revolving account shall be allocated to their respective beneficiary accounts.
     (b) Any state agency that has independent authority over accounts or funds not statutorily required to be held in the state treasury that deposits funds into a fund or account in the state treasury pursuant to an agreement with the office of the state treasurer shall receive its proportionate share of earnings based upon each account's or fund's average daily balance for the period.
     (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION.  Sec. 14   Section 12 of this act expires on the date the requirements set out in section 7, chapter 36, Laws of 2012 are met.

NEW SECTION.  Sec. 15   Section 13 of this act takes effect on the date the requirements set out in section 7, chapter 36, Laws of 2012 are met.

NEW SECTION.  Sec. 16   Sections 1 through 10 of this act are each added to chapter 41.50 RCW and codified with the subchapter heading of "save toward a retirement today."