HOUSE BILL REPORT

SHB 3007

As Amended by the Senate

BYHouse Committee on Local Government (originally sponsored by Representative Nealey)

Relating to notice of employee pension plans provided by third class cities and fourth class municipalities.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Kirby, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn, Wolfe and Zellinsky.

House Staff:Bill Lynch (786-7092)

AS PASSED HOUSE FEBRUARY 9, 1990

BACKGROUND:

Most local government employees are covered by public pension plans that are subject to state audit.  Some small towns have established unauthorized pension plans for their employees.  There is no current requirement for a town to notify the State Auditor if it provides an employee pension plan or policy that is not administered by the state.

SUMMARY:

A town must notify the State Auditor if it provides a pension policy for its employees that is not administered by the state.  The notice must be given at the time the auditor is conducting an audit of the town.

No third class city or town may establish a pension plan for its employees that is not administered by the state, except that any defined contribution plan that is in existence as of January 1, 1990 is authorized.

EFFECT OF SENATE AMENDMENTS:  Technical amendments are made to standardize language in the bill.  All references to "policy" in the bill are changed to "plan."

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Stan Finkelstein, Association of Washington Cities.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    This grandfathers the small number of cities that offer pension plans not administered by the state, and prohibits the establishment of any other ones.

House Committee - Testimony Against:      None.

VOTE ON FINAL PASSAGE:

      Yeas 93; Absent 2; Excused 3

Absent:     Representatives Meyers R, Scott

Excused:    Representatives Basich, Chandler, Sommers D