AN ACT Relating to the financing of governmental responsibilities; amending RCW 27.12.390, 41.16.010, 41.16.040, 41.16.145, 41.16.230, 41.18.010, 41.18.020, 41.18.104, 41.18.140, 41.26.040, 41.26.070, 41.26.150, 41.50.030, 41.50.032, 41.50.080, 41.50.110, 52.04.081, 84.52.043, 35A.42.010, 35A.42.040, and 35A.84.010; adding a new section to chapter 41.16 RCW; adding a new section to chapter 41.18 RCW; adding a new chapter to Title 41 RCW; adding a new section to chapter 84.55 RCW; repealing RCW 41.16.020, 41.16.030, 41.16.050, 41.16.060, and 41.18.015; and providing an effective date.

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

NEW SECTION. Sec. 1. The state assumes responsibility for the administration and funding of the relief and pension obligations established under chapters 41.16 and 41.18 RCW, but not obligations under RCW 41.26.150. Any municipality that has a fund established under chapter 41.16 or 41.18 RCW shall transfer all money in that fund to the state treasurer who shall place the money into the state fire fighters' pension fund created in section 2 of this act.

NEW SECTION. Sec. 2. (1) The state fire fighters' pension fund is established in the state treasury. Moneys in this fund shall be used to pay the pension obligations assumed by the state pursuant to section 1 of this act.

The fire fighters' pension fund shall consist of the following moneys: (a) Money transferred to the fund pursuant to section 1 of this act; (b) forty-five percent of all money received by the state from taxes on fire insurance premiums, subject to section 4 of this act; (c) property taxes imposed by the state pursuant to section 3 of this act, subject to section 4 of this act; and (d) interest and other earnings on investments of the fund.

(2) The state investment board has full power to invest or reinvest the money from the fire fighters' pension fund. The state treasurer shall be the custodian of all money of the fire fighters' pension system and all disbursements therefrom shall be paid by the state treasurer upon vouchers duly authorized by the retirement board and bearing the signature of the duly authorized officer of the retirement board.

(3) The department of retirement systems shall ascertain at the beginning of each biennium the amount necessary for the administration of the fire fighters' pension systems under chapters 41.16 and 41.18 RCW. The department shall request from the legislature an appropriation for such amount from the department of retirement systems expense fund. The state treasurer shall transfer from the state fire fighters' pension fund to the department of retirement systems expense fund the amount appropriated by the legislature.

NEW SECTION. Sec. 3. The state shall levy an annual property tax of five cents per thousand dollars of assessed value adjusted to the state equalized value in accordance with the indicated ratio fixed by the department of revenue to be used exclusively to finance the obligations of the state fire fighters' pension fund and the unfunded liabilities of the law enforcement officers' and fire fighters' retirement system.

The tax imposed by this section is not subject to the provisions of chapter 84.55 RCW.

NEW SECTION. Sec. 4. Annually the state actuary shall determine the money needed for the pension obligations assumed by the state pursuant to section 1 of this act and shall report this determination to the state treasurer.

Receipts obtained from the property tax imposed pursuant to section 3 of this act and from forty-five percent of the moneys received from the tax on fire insurance premiums shall be deposited by the state treasurer into the state fire fighters' pension fund if this report indicates that the receipts are necessary to pay the obligations assumed by the state. However, if the report of the actuary indicates that all of these tax receipts are in excess of the requirements for the state fire fighters' pension fund, the state treasurer shall deposit any unneeded receipts from either, or both, of these taxes into the Washington law enforcement officers' and fire fighters' retirement fund.

NEW SECTION. Sec. 5. A new section is added to chapter 84.55 RCW to read as follows:

The taxes imposed pursuant to section 3 of this act are not subject to the provisions of this chapter.

NEW SECTION. Sec. 6. A new section is added to chapter 41.16 RCW to read as follows:

The municipal firemen's pension boards established pursuant to this chapter are abolished. All powers, duties, and functions of the boards are transferred to the director of retirement systems. All pension obligations established under this chapter shall be assumed by the state pursuant to section 1 of this act.

NEW SECTION. Sec. 7. A new section is added to chapter 41.18 RCW to read as follows:

Sec. 8. Section 4, chapter 353, Laws of 1977 ex. sess. as amended by section 16, chapter 123, Laws of 1982 and RCW 27.12.390 are each amended to read as follows:

The annual tax levy authorized by RCW 27.12.050, 27.12.150, and 27.12.420 shall be imposed throughout the library district, including any city or town annexed thereto. Any city or town annexed to a rural library district, island library district, or intercounty rural library district shall be entitled to levy up to three dollars and ((~~sixty~~)) thirty-seven and one-half cents per thousand dollars of assessed valuation less any regular levy made by such library district in the incorporated area, notwithstanding any other provision of law: PROVIDED, That the limitations upon regular property taxes imposed by chapter 84.55 RCW shall apply.

Sec. 9. Section 1, chapter 91, Laws of 1947 as amended by section 61, chapter 154, Laws of 1973 1st ex. sess. and RCW 41.16.010 are each amended to read as follows:

For the purpose of this chapter, unless clearly indicated by the context, words and phrases shall have the following meaning:

(1) "Beneficiary" shall mean any person or persons designated by a fireman in a writing filed with the board, and who shall be entitled to receive any benefits of a deceased fireman under this chapter.

(2) "Board" shall mean the ((~~municipal firemen's pension board~~)) department of retirement systems.

(3) "Child or children" shall mean a child or children unmarried and under eighteen years of age.

(4) "Contributions" shall mean and include all sums deducted from the salary of firemen and paid into the fund as hereinafter provided.

(5) "Disability" shall mean and include injuries or sickness sustained as a result of the performance of duty.

(6) "Fireman" shall mean any person regularly or temporarily, or as a substitute, employed and paid as a member of a fire department, who has passed a civil service examination for fireman and who is actively employed as a fireman; and shall include any "prior fireman".

(7) "Fire department" shall mean the regularly organized, full time, paid, and employed force of firemen of the municipality.

(8) "Fund" shall mean the ((~~firemen's~~)) state fire fighters' pension fund created ((~~herein~~)) in section 2 of this 1987 act.

(9) "Municipality" shall mean every city and town having a regularly organized full time, paid, fire department employing firemen.

(10) "Performance of duty" shall mean the performance of work and labor regularly required of firemen and shall include services of an emergency nature rendered while off regular duty, but shall not include time spent in traveling to work before answering roll call or traveling from work after dismissal at roll call.

(11) "Prior fireman" shall mean a fireman who was actively employed as a fireman of a fire department prior to the first day of January, 1947, and who continues such employment thereafter.

(12) "Retired fireman" shall mean and include a person employed as a fireman and retired under the provisions of chapter 50, Laws of 1909, as amended.

(13) "Widow or widower" means the surviving wife or husband of a retired fireman who was retired on account of length of service and who was lawfully married to such fireman; and whenever that term is used with reference to the wife or former wife or husband or former husband of a retired fireman who was retired because of disability, it shall mean his or her lawfully married wife or husband on the date he or she sustained the injury or contracted the illness that resulted in his or her disability. Said term shall not mean or include a surviving wife or husband who by process of law within one year prior to the retired fireman's death, collected or attempted to collect from him or her funds for the support of herself or himself or for his or her children.

Sec. 10. Section 4, chapter 91, Laws of 1947 as amended by section 1, chapter 91, Laws of 1967 ex. sess. and RCW 41.16.040 are each amended to read as follows:

The board shall have such general powers as are vested in it by the provisions of this chapter, and in addition thereto, the power to:

(1) Generally supervise and control the administration of this chapter ((~~and the firemen's pension fund created hereby~~)).

(2) Pass upon and allow or disallow all applications for pensions or other benefits provided by this chapter.

(3) Provide for payment ((~~from said fund~~)) of necessary expenses of maintenance and administration of ((~~said~~)) the pension system ((~~and fund~~)).

(4) ((Invest the moneys of the fund in such securities of the United States, state, municipal corporations and other public bodies as are designated by the laws of the state of Washington as lawful investments for funds of mutual savings banks; and in any bonds or warrants, including local improvement bonds or warrants issued under the state local improvement guaranty fund law, or in utility bonds or warrants issued by the municipality operating the fund. Subject to the limitations hereinafter in this section contained, investment of moneys of the fund may also be made in amounts not to exceed twenty-five percent of the fund's total investments in the shares of certain open-end investment companies: PROVIDED, That the total amount invested in any one company shall not exceed five percent of the assets of such company, and shall only be made in the shares of such companies as are registered as open-end companies under the federal investment company act of 1940, as from time to time amended. The company must be at least ten years old and have net assets of at least five million dollars. It must have outstanding no bonds, debentures, notes, or other evidences of indebtedness, or any stock having priority over the shares being purchased, either as to distribution of assets or payment of dividends. It must have paid dividends from investment income in each of the ten years next preceding purchase. The maximum selling commission on its shares, furthermore, may not exceed eight and one-half percent of the sum of the asset value plus such commission.

~~(5)~~)) Employ such agents, employees and other personnel as the board may deem necessary for the proper administration of this chapter.

((~~(6)~~)) (5) Compel witnesses to appear and testify before it, in the same manner as is or may be provided by law for the taking of depositions in the superior court. ((~~Any member of~~)) The board may administer oaths to witnesses who testify before the board of a nature and in a similar manner to oaths administered by superior courts of the state of Washington.

((~~(7)~~)) (6) Issue vouchers ((~~approved by the chairman and secretary~~)) and ((to)) cause warrants therefor to be issued ((~~and paid from said fund~~)) for the payment of claims allowed by it.

((~~(8)~~)) (7) Keep a record of all its proceedings, which record shall be public((; and prepare and file with the city treasurer and city clerk or comptroller prior to the date when any payments are to be made from the fund, a list of all persons entitled to payment from the fund, stating the amount and purpose of such payment, said list to be certified to and signed by the chairman and secretary of the board and attested under oath)).

((~~(9)~~)) (8) Make rules and regulations not inconsistent with this chapter for the purpose of carrying out and effecting the same.

((~~(10)~~)) (9) Appoint one or more duly licensed and practicing physicians who shall examine and report to the board upon all applications for relief and pension under this chapter. Such physicians shall visit and examine all sick and disabled firemen when, in their judgment, the best interests of the relief and pension fund require it or when ordered by the board. They shall perform all operations on such sick and injured firemen and render all medical aid and care necessary for the recovery of such firemen on account of sickness or disability received while in the performance of duty as defined in this chapter. Such physicians shall be paid from said fund, the amount of said fees or salary to be set and agreed upon by the board and the physicians. No physician not regularly appointed or specially appointed and employed, as hereinafter provided, shall receive or be entitled to any fees or compensation from said fund as attending physician to a sick or injured fireman. If any sick or injured fireman refuses the services of the appointed physicians, or the specially appointed and employed physician, he shall be personally liable for the fees of any other physician employed by him. No person shall have a right of action against the board or the ((~~municipality~~)) state for negligence of any physician employed by it. The board shall have the power and authority to select and employ, besides the regularly appointed physician, such other physician, surgeon or specialist for consultation with, or assistance to the regularly appointed physician, or for the purpose of performing operations or rendering services and treatment in particular cases, as it shall deem advisable, and to pay fees for such services from said fund. Said board shall hear and decide all applications for such relief or pensions under this chapter, and its decisions on such applications shall be final and conclusive and not subject to revision or reversal except by the board.

Sec. 11. Section 38, chapter 209, Laws of 1969 ex. sess. as last amended by section 1, chapter 44, Laws of 1975-'76 2nd ex. sess. and RCW 41.16.145 are each amended to read as follows:

The amount of all benefits payable under the provisions of RCW 41.16.080, 41.16.120, 41.16.130, 41.16.140 and 41.16.230 as now or hereafter amended, shall be increased annually as hereafter in this section provided. The ((~~local pension~~)) board ((~~shall meet subsequent to March 31st but~~)), prior to June 30th of each year ((~~for the purposes of adjusting~~)), shall adjust benefit allowances payable pursuant to the aforementioned sections. The ((~~local~~)) board shall determine the increase in the consumer price index between January 1st and December 31st of the previous year and increase in dollar amount the benefits payable subsequent to July 1st of the year in which said board makes such determination by a dollar amount proportionate to the increase in the consumer price index: PROVIDED, That regardless of the change in the consumer price index, such increase shall be at least two percent each year such adjustment is made.

Each year effective with the July payment all benefits specified herein, shall be increased by this section. This benefit increase shall be paid monthly as part of the regular pension payment and shall be cumulative. The increased benefits authorized by this section shall not affect any benefit payable under the provisions of chapter 41.16 RCW in which the benefit payment is attached to a current salary of the rank held at time of retirement. A beneficiary of benefit increases provided for pursuant to this section is hereby authorized to appeal a decision on such increases or the failure of the ((~~local pension~~)) board to order such increased benefits or the amount of such benefits to the ((~~Washington law enforcement officers' and fire fighters' system retirement board provided for in RCW 41.26.050~~)) advisory board created in RCW 41.50.032.

For the purpose of this section the term

"Consumer price index" shall mean, for any calendar year, the consumer price index for the Seattle, Washington area as compiled by the bureau of labor statistics of the United States department of labor.

Sec. 12. Section 12, chapter 91, Laws of 1947 as amended by section 68, chapter 154, Laws of 1973 1st ex. sess. and RCW 41.16.230 are each amended to read as follows:

Chapter 50, Laws of 1909; chapter 196, Laws of 1919; chapter 86, Laws of 1929, and chapter 39, Laws of 1935 (secs. 9559 to 9578, incl., Rem. Rev. Stat.; secs. 396-1 to 396-43, incl., PPC) and all other acts or parts of acts in conflict herewith are hereby repealed: PROVIDED, That the repeal of said laws shall not affect any "prior fireman", his widow, her widower, child or children, any fireman eligible for retirement but not retired, his widow, her widower, child or children, or the rights of any retired fireman, his widow, her widower, child or children, to receive payments and benefits from the ((~~firemen's pension~~)) fund ((~~created under this chapter~~)), in the amount, and in the manner provided by said laws which are hereby repealed and as if said laws had not been repealed.

Sec. 13. Section 1, chapter 382, Laws of 1955 as last amended by section 69, chapter 154, Laws of 1973 1st ex. sess. and RCW 41.18.010 are each amended to read as follows:

For the purpose of this chapter, unless clearly indicated otherwise by the context, words and phrases shall have the meaning hereinafter ascribed.

(2) "Fireman" means any person hereafter regularly or temporarily, or as a substitute newly employed and paid as a member of a fire department, who has passed a civil service examination for fireman and who is actively employed as a fireman or, if provided by the municipality by appropriate local legislation, as a fire dispatcher: PROVIDED, Nothing in this 1969 amendatory act shall impair or permit the impairment of any vested pension rights of persons who are employed as fire dispatchers at the time this 1969 amendatory act takes effect; and any person heretofore regularly or temporarily, or as a substitute, employed and paid as a member of a fire department, and who has contributed under and been covered by the provisions of chapter 41.16 RCW as now or hereafter amended and who has come under the provisions of this chapter in accordance with RCW 41.18.170 and who is actively engaged as a fireman or as a member of the fire department as a fireman or fire dispatcher.

(3) "Retired fireman" means and includes a person employed as a fireman and retired under the provisions of this chapter.

(4) "Basic salary" means the basic monthly salary, including longevity pay, attached to the rank held by the retired fireman at the date of his retirement, without regard to extra compensation which such fireman may have received for special duties assignments not acquired through civil service examination: PROVIDED, That such basic salary shall not be deemed to exceed the salary of a battalion chief.

(5) "Widow or widower" means the surviving spouse of a fireman and shall include the surviving wife or husband of a fireman, retired on account of length of service, who was lawfully married to him or to her for a period of five years prior to the time of his or her retirement; and the surviving wife or husband of a fireman, retired on account of disability, who was lawfully married to him or her at and prior to the time he or she sustained the injury or contracted the illness resulting in his or her disability. The word shall not mean the divorced wife or husband of an active or retired fireman.

(6) "Child" or "children" means a fireman's child or children under the age of eighteen years, unmarried, and in the legal custody of such fireman at the time of his death or her death.

(7) "Earned interest" means and includes all annual increments to the ((~~firemen's pension~~)) fund from income earned by investment of the fund. The earned interest payable to any fireman when he leaves the service and accepts his contributions, shall be that portion of the total earned income of the fund which is directly attributable to each individual fireman's contributions. Earnings of the fund for the preceding year attributable to individual contributions shall be allocated to individual firemen's accounts as of January 1st of each year.

(8) "Board" shall mean the ((~~municipal firemen's pension board~~)) department of retirement systems.

(9) "Contributions" shall mean and include all sums deducted from the salary of firemen and paid into the fund as hereinafter provided.

(10) "Disability" shall mean and include injuries or sickness sustained by a fireman.

(11) "Fire department" shall mean the regularly organized, full time, paid, and employed force of firemen of the municipality.

(12) "Fund" shall have the same meaning as in RCW 41.16.010 as now or hereafter amended. Such fund shall be created in the manner and be subject to the provisions specified in chapter 41.16 RCW as now or hereafter amended.

(13) "Municipality" shall mean every city, town and fire protection district having a regularly organized full time, paid, fire department employing firemen.

(14) "Performance of duty" shall mean the performance of work or labor regularly required of firemen and shall include services of an emergency nature normally rendered while off regular duty.

Sec. 14. Section 2, chapter 382, Laws of 1955 and RCW 41.18.020 are each amended to read as follows:

The board, in addition to such general and special powers as are vested in it by the provisions of chapter 41.16 RCW, which powers the board shall have with respect to this chapter shall have power to:

(1) Generally supervise and control the administration of this chapter;

(2) Pass upon and allow or disallow applications for pensions or other benefits provided by this chapter;

(3) Provide for payment ((~~from the firemen's pension fund~~)) of necessary expenses of maintenance and administration required by the provisions of this chapter;

(4) Make rules and regulations not inconsistent with this chapter for the purpose of carrying out and effecting the same;

(5) Require the physicians appointed under the provisions of chapter 41.16 RCW, to examine and report to the board upon all applications for relief and pensions under this chapter; and

(6) Perform such acts, receive such compensation and enjoy such immunity as provided in RCW 41.16.040.

Sec. 15. Section 33, chapter 209, Laws of 1969 ex. sess. as last amended by section 2, chapter 44, Laws of 1975-'76 2nd ex. sess. and RCW 41.18.104 are each amended to read as follows:

The amount of all benefits payable under the provisions of RCW 41.18.040, 41.18.080, 41.18.100 and 41.18.200 as now or hereafter amended, shall be increased annually as hereafter in this section provided. The ((~~local pension~~)) board ((~~shall meet subsequent to March 31st but~~)), prior to June 30th of each year ((~~for the purpose of adjusting~~)), shall adjust benefit allowances payable pursuant to the aforementioned sections. The ((~~local~~)) board shall determine the increase in the consumer price index between January 1st and December 31st of the previous year and increase in dollar amount the benefits payable subsequent to July 1st of the year in which said board makes such determination by a dollar amount proportionate to the increase in the consumer price index: PROVIDED, That regardless of the change in the consumer price index, such increase shall be at least two percent each year such adjustment is made.

Each year effective with the July payment all benefits specified herein, shall be increased as authorized by this section. This benefit increase shall be paid monthly as part of the regular pension payment and shall be cumulative. The increased benefits authorized by this section shall not affect any benefit payable under the provisions of chapter 41.18 RCW in which the benefit payment is attached to a current salary of the rank held at time of retirement. A beneficiary of benefit increases provided for pursuant to this section is hereby authorized to appeal a decision on such increases or the failure of the ((~~local pension~~)) board to order such increased benefits or the amount of such benefits to the ((~~Washington law enforcement officers' and fire fighters' system retirement board provided for in RCW 41.26.050~~)) advisory board created in RCW 41.50.032.

For the purpose of this section the term

Sec. 16. Section 13, chapter 382, Laws of 1955 as amended by section 7, chapter 255, Laws of 1961 and RCW 41.18.140 are each amended to read as follows:

The board shall pay ((~~from the firemen's pension fund~~)) upon the death of any active or retired fireman the sum of five hundred dollars, to assist in defraying the funeral expenses of such fireman.

Sec. 17. Section 4, chapter 209, Laws of 1969 ex. sess. as last amended by section 1, chapter 45, Laws of 1979 ex. sess. and RCW 41.26.040 are each amended to read as follows:

The Washington law enforcement officers' and fire fighters' retirement system is hereby created for fire fighters and law enforcement officers.

(1) (a) Notwithstanding RCW 41.26.030(8) and except as provided in subsection (1)(b) of this section, all fire fighters and law enforcement officers employed as such on or after March 1, 1970, on a full time fully compensated basis in this state shall be members of the retirement system established by this chapter with respect to all periods of service as such, to the exclusion of any pension system existing under any prior act except as provided in subsection (2) of this section.

(b) No fire fighter or law enforcement officer who commences a period of employment on or after July 1, 1979, as a participant under the federal comprehensive employment and training act of 1973 (CETA) (29 U.S.C. Sec. 801 et seq.), as amended, shall be a member of this system during the period of such participation unless, at the commencement of the participation under CETA, the fire fighter or law enforcement officer either:

(i) Has at least five years of service and the full amount of the employee's contributions for such service remains on deposit in the system; or

(ii) Has previously been retired from this system.

(2) Any employee serving as a law enforcement officer or fire fighter on March 1, 1970, who is then making retirement contributions under any prior act shall have his membership transferred to the system established by this chapter as of such date. Upon retirement for service or for disability, or death, of any such employee, his retirement benefits earned under this chapter shall be computed and paid. In addition, his benefits under the prior retirement act to which he was making contributions at the time of this transfer shall be computed as if he had not transferred. For the purpose of such computations, the employee's creditability of service and eligibility for service or disability retirement and survivor and all other benefits shall continue to be as provided in such prior retirement act, as if transfer of membership had not occurred. The excess, if any, of the benefits so computed, giving full value to survivor benefits, over the benefits payable under this chapter shall be paid whether or not the employee has made application under the prior act. If the employee's prior retirement system was the Washington public employees' retirement system, payment of such excess shall be made by that system; if the employee's prior retirement system was the state-wide city employees' retirement system, payment of such excess shall be made by the employer which was the member's employer when his transfer of membership occurred: PROVIDED, That any death in line of duty lump sum benefit payment shall continue to be the obligation of that system as provided in RCW 41.44.210; in the case of all other prior retirement systems, payment of such excess shall be made by the employer which was the member's employer when his transfer of membership occurred.

(3) (a) All funds held by any ((~~firemen's or~~)) policemen's relief and pension fund shall remain in that fund for the purpose of paying the obligations of the fund. ((The municipality shall continue to levy the dollar rate as provided in RCW 41.16.060, and this dollar rate shall be used for the purpose of paying the benefits provided in chapters 41.16 and 41.18 RCW.)) The obligations of chapter 41.20 RCW shall continue to be paid from whatever financial sources the city has been using for this purpose.

(b) All funds held by any firemen's pension fund created pursuant to chapter 41.16 or 41.18 RCW are transferred on the effective date of this 1987 section to the fund created in section 2 of this 1987 act.

(4) Any member transferring from the Washington public employees' retirement system or the state-wide city employees' retirement system shall have transferred from the appropriate fund of the prior system of membership, a sum sufficient to pay into the Washington law enforcement officers' and fire fighters' retirement system fund the amount of the employees' and employers' contributions plus credited interest in the prior system for all service, as defined in this chapter, from the date of the employee's entrance therein until March 1, 1970. Except as provided for in subsection (2), such transfer of funds shall discharge said state retirement systems from any further obligation to pay benefits to such transferring members with respect to such service.

(5) All unfunded liabilities created by this or any other section of this chapter shall be computed by the actuary in his biennial evaluation. Such computation shall provide for amortization of the unfunded liabilities over a period of not more than forty years from March 1, 1970. The amount thus computed as necessary shall be reported to the governor by the department of retirement systems for inclusion in the budget. The legislature shall make the necessary appropriation to fund the unfunded liability from the state general fund beginning with the 1971-1973 biennium.

Sec. 18. Section 7, chapter 209, Laws of 1969 ex. sess. as last amended by section 28, chapter 3, Laws of 1981 and RCW 41.26.070 are each amended to read as follows:

A fund is hereby created and established in the state treasury to be known as the Washington law enforcement officers' and fire fighters' retirement fund, and shall consist of all moneys paid into it in accordance with the provisions of this chapter and section 4 of this 1987 act, whether such moneys shall take the form of cash, securities, or other assets. The state investment board has full power to invest or reinvest the funds created by this chapter in the securities authorized by RCW 43.84.150.

(1) The state treasurer shall be the custodian of all funds of the retirement system and all disbursements therefrom shall be paid by the state treasurer upon vouchers duly authorized by the retirement board and bearing the signature of the duly authorized officer of the retirement board.

(2) The state treasurer is hereby authorized and directed to deposit any portion of the funds of the retirement system not needed for immediate use in the same manner and subject to all the provisions of law with respect to the deposit of state funds by such treasurer, and all interest earned by such portion of the retirement system's funds as may be deposited by the state treasurer in pursuance of authority herewith given shall be collected by him and placed to the credit of the retirement fund or the department of retirement systems expense fund.

(3) Into the retirement system fund shall be paid all moneys received by the retirement board, and paid therefrom shall be all refunds, adjustments, retirement allowances and other benefits provided for herein. All contributions by employers for the expense of operating the retirement system as provided for herein shall be transferred by the state treasurer from the retirement system fund to the department of retirement systems expense fund upon authorization of the retirement board.

(4) There is hereby utilized for the purposes of this chapter, the department of retirement systems expense fund, as provided for in RCW 41.40.080 and from which shall be paid the expenses of the administration of this retirement system.

(5) In order to reimburse the department of retirement systems expense fund on an equitable basis the retirement board shall ascertain and report to each employer the sum necessary to defray its proportional share of the entire expense of the administration of this chapter during the ensuing biennium or fiscal year whichever may be required. Such sum is to be computed in an amount directly proportional to the estimated entire expense of the said administration as the ratio of monthly salaries of the employer's members bears to the total salaries of all members in the entire system. It shall then be the duty of all such employers to include in their budgets or otherwise provide the amounts so required.

(6) The retirement board shall compute and bill each employer at the end of each month for the amount due for that month to the department of retirement systems expense fund and the same shall be paid as are its other obligations. Such computation as to each such employer shall be made on a percentage rate of salary established by the board: PROVIDED, That the retirement board may at its discretion establish a system of billing based upon calendar year quarters in which event the said billing shall be at the end of each such quarter.

(7) For the purpose of providing amounts to be used to defray the cost of such administration, the retirement board shall ascertain at the beginning of each biennium and request from the legislature an appropriation from the department of retirement systems expense fund sufficient to cover estimated expenses for the said biennium.

(8) RCW 41.26.060, 41.26.070 and 41.26.085 shall take effect commencing on January 1, 1972.

Sec. 19. Section 15, chapter 209, Laws of 1969 ex. sess. as last amended by section 23, chapter 106, Laws of 1983 and RCW 41.26.150 are each amended to read as follows:

(1) Whenever any active member, or any member hereafter retired, on account of service, sickness or disability, not caused or brought on by dissipation or abuse, of which the disability board shall be judge, is confined in any hospital or in his home, and whether or not so confined, requires medical services, the employer shall pay for such active or retired member the necessary medical services not payable from some other source as provided for in subsection (2). In the case of active or retired fire fighters the employer may make the payments provided for in this section ((from the firemen's pension fund established pursuant to RCW 41.16.050 where such fund had been established prior to March 1, 1970: PROVIDED, That in the event the pension fund is depleted, the employer shall have the obligation to pay all benefits payable under chapters 41.16 and 41.18 RCW: PROVIDED FURTHER, That)). The disability board in all cases may have the active or retired member suffering from such sickness or disability examined at any time by a licensed physician or physicians, to be appointed by the disability board, for the purpose of ascertaining the nature and extent of the sickness or disability, the physician or physicians to report to the disability board the result of the examination within three days thereafter. Any active or retired member who refuses to submit to such examination or examinations shall forfeit all his rights to benefits under this section for the period of such refusal: AND PROVIDED FURTHER, That the disability board shall designate the medical services available to any sick or disabled member.

(2) The medical services payable under this section will be reduced by any amount received or eligible to be received by the member under workmen's compensation, social security including the changes incorporated under Public Law 89-97 as now or hereafter amended, insurance provided by another employer, other pension plan, or any other similar source. Failure to apply for coverage if otherwise eligible under the provisions of Public Law 89-97 as now or hereafter amended shall not be deemed a refusal of payment of benefits thereby enabling collection of charges under the provisions of this chapter.

(3) Upon making such payments as are provided for in subsection (1), the employer shall be subrogated to all rights of the member against any third party who may be held liable for the member's injuries or for the payment of the cost of medical services in connection with a member's sickness or disability to the extent necessary to recover the amount of payments made by the employer.

(4) Any employer under this chapter, either singly, or jointly with any other such employer or employers through an association thereof as provided for in chapter 48.21 RCW, may provide for all or part of one or more plans of group hospitalization and medical aid insurance to cover any of its employees who are members of the Washington law enforcement officers' and fire fighters' retirement system, and/or retired former employees who were, before retirement, members of said retirement system, through contracts with regularly constituted insurance carriers, with health maintenance organizations as defined in chapter 48.46 RCW, or with health care service contractors as defined in chapter 48.44 RCW. Benefits payable under any such plan or plans shall be deemed to be amounts received or eligible to be received by the active or retired member under subsection (2) of this section.

Sec. 20. Section 5, chapter 105, Laws of 1975-'76 2nd ex. sess. and RCW 41.50.030 are each amended to read as follows:

(1) As soon as possible but not more than one hundred and eighty days after March 19, 1976, there is transferred to the department of retirement systems, except as otherwise provided in this chapter, all powers, duties, and functions of:

((~~(1)~~)) (a) The Washington public employees' retirement system and the retirement board thereof;

((~~(2)~~)) (b) The Washington state teachers' retirement system and the board of trustees thereof;

((~~(3)~~)) (c) The Washington law enforcement officers' and fire fighters' retirement system and the retirement board thereof;

((~~(4)~~)) (d) The Washington state patrol retirement system and the retirement board thereof;

((~~(5)~~)) (e) The Washington judicial retirement system and the retirement board thereof; and

((~~(6)~~)) (f) The state treasurer with respect to the administration of the judges' retirement fund imposed pursuant to chapter 2.12 RCW.

(2) All powers, duties, and functions of all firemen's pension boards created pursuant to chapter 41.16 or 41.18 RCW are transferred on the effective date of this 1987 section to the department of retirement systems, except as otherwise provided in this chapter.

Sec. 21. Section 9, chapter 163, Laws of 1982 as amended by section 15, chapter 184, Laws of 1984 and RCW 41.50.032 are each amended to read as follows:

(1) The director shall assume all powers, duties, and functions of the retirement boards abolished by RCW 2.10.052, section 6 of this 1987 act, section 7 of this 1987 act, 41.26.051, 41.32.015, 41.40.022, and 43.43.142 except as otherwise assigned in this section.

(2) There is hereby created a state advisory committee to the department of retirement systems which shall serve in an advisory capacity to the director of retirement systems. The committee shall consist of twelve members appointed by the governor as provided in this section:

(a) Three active members and one retired member of the public employees' retirement system;

(b) Two active members, one a law enforcement officer and the other a fire fighter, and one retired fire fighter, of the law enforcement officers' and fire fighters' retirement system;

(c) Two active members, one a teacher and the other an administrator, and one retired member of the teachers' retirement system;

(d) One active member of the state patrol retirement system;

(e) One active member of the judicial retirement system.

The active members appointed under subsections (a), (b), (c), and (d) of this subsection shall be selected from a list of three nominees submitted by each organization representing active members. The retired members appointed under subsections (a), (b), and (c) of this subsection shall be selected from a list of three nominees submitted by each organization representing retired members. The member appointed under subsection (e) of this subsection shall be appointed from a list of three nominees submitted by the state supreme court.

Members shall serve staggered three-year terms as determined by the governor. Members shall serve without compensation but shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060 as now existing or hereafter amended.

(3) The advisory committee shall at its first meeting of each fiscal year elect a chairperson and vice chairperson.

(4) The chairperson shall annually appoint from the committee members a subcommittee for each retirement system covered by this chapter. Each subcommittee shall have one committee member representing the system for which appointed and two other committee members who represent any other system. The subcommittees shall meet upon the call of the director to review all disability appeals cases which have been heard by a hearings examiner. Having considered the hearings examiner's proposed decision, including findings of fact and conclusions of law, and having personally considered the whole record or such portions thereof as may be cited by the parties, the subcommittee shall make a recommendation to the director for the disposition of the appeal.

(5) The advisory board shall also hear appeals brought pursuant to RCW 41.16.145 and 41.18.104 and shall make recommendations to the director for the disposition of the appeals.

Sec. 22. Section 10, chapter 105, Laws of 1975-'76 2nd ex. sess. as last amended by section 34, chapter 3, Laws of 1981 and RCW 41.50.080 are each amended to read as follows:

The state investment board shall provide for the investment of all funds of the Washington public employees' retirement system, the teachers' retirement system, the Washington law enforcement officers' and fire fighters' retirement system, the Washington state patrol retirement system, the Washington judicial retirement system, ((~~and~~)) the judges' retirement fund, and the state fire fighters' pension fund, pursuant to RCW 43.84.150, and may sell or exchange investments acquired in the exercise of that authority.

Sec. 23. Section 8, chapter 249, Laws of 1979 ex. sess. and RCW 41.50.110 are each amended to read as follows:

(1) Notwithstanding any provision of law to the contrary, the retirement system expense fund is hereby redesignated as the department of retirement systems expense fund from which shall be paid the expenses of the administration of the department and the expenses of administration of the retirement systems created in chapters 2.10, 2.12, 41.16, 41.18, 41.26, 41.32, 41.40, and 43.43 RCW.

(2) On July 1, 1979, all funds credited for administrative expenses in the various retirement systems under the department's authority shall be transferred to the retirement systems expense fund, and all receivables due and payable to the various retirement systems for administrative expenses of those systems shall be due and payable to the retirement systems expense fund. Separate system by system disbursement accountability shall not be required. The retirement system expense fund shall assume all liabilities of the various prior retirement systems administrative expense funds effective with the date of transfer. The director may continue to collect administrative expense revenue during the 1979-81 biennium under currently prescribed procedures if it is found to be in the best interest of the department. The administrative expense collections shall be placed in the department of retirement systems expense fund as provided herein.

(3) The director may adjust the expense fund contribution rate for each system at any time when necessary to reflect unanticipated costs or savings in administering the department.

Sec. 24. Section 4, chapter 179, Laws of 1979 ex. sess. as amended by section 17, chapter 230, Laws of 1984 and RCW 52.04.081 are each amended to read as follows:

The annual tax levies authorized by chapter 52.16 RCW shall be imposed throughout the fire protection district, including any city or town annexed thereto. Any city or town annexed to a fire protection district is entitled to levy up to three dollars and ((~~sixty~~)) thirty-seven and one-half cents per thousand dollars of assessed valuation less any regular levy made by the fire protection district or by a library district under RCW 27.12.390 in the incorporated area: PROVIDED, That the limitations upon regular property taxes imposed by chapter 84.55 RCW apply.

Sec. 25. Section 134, chapter 195, Laws of 1973 1st ex. sess. and RCW 84.52.043 are each amended to read as follows:

Within and subject to the limitations imposed by RCW 84.52.050 as amended, the regular ad valorem tax levies upon real and personal property by the taxing districts hereafter named shall be as follows: The levy by the state under RCW 84.52.065 shall not exceed three dollars and sixty cents per thousand dollars of assessed value adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue to be used exclusively for the support of the common schools; the levy by the state under section 3 of this 1987 act shall not exceed the amount provided in that section; the levy by any county shall not exceed one dollar and eighty cents per thousand dollars of assessed value; the levy for any road district shall not exceed two dollars and twenty-five cents per thousand dollars of assessed value; and the levy by or for any city or town shall not exceed three dollars and thirty-seven and one-half cents per thousand dollars of assessed value: PROVIDED FURTHER, That counties of the fifth class and under are hereby authorized to levy from one dollar and eighty cents to two dollars and forty-seven and one-half cents per thousand dollars of assessed value for general county purposes and from one dollar and fifty-seven and one-half cents to two dollars and twenty-five cents per thousand dollars of assessed value for county road purposes if the total levy for both purposes does not exceed four dollars and five cents per thousand dollars of assessed value: PROVIDED FURTHER, That counties of the fourth and the ninth class are hereby authorized to levy two dollars and two and one-half cents per thousand dollars of assessed value until such time as the junior taxing agencies are utilizing all the dollar rates available to them: AND PROVIDED FURTHER, That the total property tax levy authorized by law without a vote of the people shall not exceed nine dollars and fifteen cents per thousand dollars of assessed value. Levies at the rates provided by existing law by or for any port or public utility district shall not be included in the limitation set forth by this proviso.

Nothing herein shall prevent levies at the rates provided by existing law by or for any port or power district.

It is the intent of the legislature that the provisions of this section shall supersede all conflicting provisions of law including section 24, chapter 299, Laws of 1971 ex. sess. and section 8, chapter 124, Laws of 1972 ex. sess.

Sec. 26. Section 35A.42.010, chapter 119, Laws of 1967 ex. sess. as amended by section 320, chapter 258, Laws of 1984 and RCW 35A.42.010 are each amended to read as follows:

In addition to authority granted and duties imposed upon code city treasurers by this title, code city treasurers, or the officers designated by charter or ordinance to perform the duties of a treasurer, shall have the duties and the authority to perform the following: (1) As provided in RCW 8.12.500 relating to bonds and compensation payments in eminent domain proceedings; (2) as provided in RCW 68.12.050 relating to cemetery improvement funds; (3) as provided in RCW 41.28.080 relating to custody of employees' retirement funds; (4) as provided in RCW 47.08.100 relating to the use of city street funds; (5) as provided in RCW 46.68.080 relating to motor vehicle funds; (6) as provided in ((~~RCW 41.16.020 and~~)) chapter 41.20 RCW relating to police ((~~and firemen's~~)) relief and pension boards; (7) as provided in chapter 42.20 RCW relating to misappropriation of funds; and (8) as provided in chapter 39.60 RCW relating to investment of municipal funds. The treasurer shall be subject to the penalties imposed for the violation of any of such provisions. Where a provision of this title, or the general law, names the city treasurer as an officer of a board or other body, or assigns duties to a city treasurer, such position shall be filled, or such duties performed, by the officer of a code city who is performing the duties usually performed by a city treasurer, although he may not have that designation.

Sec. 27. Section 35A.42.040, chapter 119, Laws of 1967 ex. sess. and RCW 35A.42.040 are each amended to read as follows:

In addition to any specific enumeration of duties of city clerks in a code city's charter or ordinances, and without limiting the generality of RCW 35A.21.030 of this title, the clerks of all code cities shall perform the following duties in the manner prescribed, to wit: (1) Certification of city streets as part of the highway system in accordance with the provisions of RCW 47.24.010; (2) prepare statements of cancellation of registration as required by RCW 29.10.120; (3) ((~~perform the functions of a member of a firemen's pension board as provided by RCW 41.16.020; (4)~~)) keep a record of ordinances of the city and provide copies thereof as authorized by RCW 5.44.080; ((~~(5)~~)) (4) serve as applicable the trustees of any police relief and pension board as authorized by RCW 41.20.010; and ((~~(6)~~)) (5) serve as secretary-treasurer of volunteer firemen's relief and pension boards as provided in RCW 41.24.060.

Sec. 28. Section 35A.84.010, chapter 119, Laws of 1967 ex. sess. and RCW 35A.84.010 are each amended to read as follows:

The taxation of property in code cities shall be governed by general provisions of the law including, but not limited to, the provisions of: (1) Chapter 84.09 RCW, relating to the time for establishment of official boundaries of taxing districts on the first day of March of each year; (2) chapter 84.12 RCW relating to the assessment and taxation of public utilities; (3) chapter 84.16 RCW, relating to the apportionment of taxation on private car companies; (4) chapter 84.20 RCW, relating to the taxation of easements of public utilities; (5) chapter 84.24 RCW, relating to the reassessment of property; (6) chapter 84.36 RCW, relating to property subject to taxation and exemption therefrom; (7) chapter 84.40 RCW relating to the listing of property for assessment; (8) chapter 84.41 RCW, relating to reevaluation of property; (9) chapter 84.44 RCW, relating to the taxable situs of personalty; (10) chapter 84.48 RCW, relating to the equalization of assessments; (11) chapter 84.52 RCW, relating to the levy of taxes, both regular and excess; (12) chapter 84.56 RCW, relating to the collection of taxes; (13) chapter 84.60 RCW, relating to the lien of taxes and the priority thereof; and (14) chapter 84.69 RCW, relating to refunds and claims therefor against the code city((~~; and (15) RCW 41.16.060, relating to taxation for firemen's pension fund~~)).

NEW SECTION. Sec. 29. The following acts or parts of acts are each repealed:

(1) Section 2, chapter 91, Laws of 1947, section 10, chapter 255, Laws of 1961, section 1, chapter 19, Laws of 1973 1st ex. sess. and RCW 41.16.020;

(2) Section 3, chapter 91, Laws of 1947 and RCW 41.16.030;

(3) Section 5, chapter 91, Laws of 1947, section 1, chapter 45, Laws of 1949, section 8, chapter 255, Laws of 1961, section 1, chapter 42, Laws of 1967, section 16, chapter 35, Laws of 1982 1st ex. sess., section 3, chapter 296, Laws of 1986 and RCW 41.16.050;

(4) Section 6, chapter 91, Laws of 1947, section 1, chapter 72, Laws of 1951, section 9, chapter 255, Laws of 1961, section 1, chapter 45, Laws of 1965 ex. sess., section 2, chapter 92, Laws of 1970 ex. sess., section 144, chapter 195, Laws of 1973 1st ex. sess., section 43, chapter 195, Laws of 1973 1st ex. sess., section 4, chapter 155, Laws of 1980 and RCW 41.16.060; and

(5) Section 11, chapter 255, Laws of 1961 andRCW 41.18.015.

NEW SECTION. Sec. 30. Sections 1 through 4 of this act shall constitute a new chapter in Title 41 RCW.

NEW SECTION. Sec. 31. This act shall take effect January 1, 1988.