AN ACT Relating to the volunteer firefighters' administrative fund; amending RCW 41.24.030; adding a new section to chapter 41.24 RCW; creating a new section; providing an effective date; and declaring an emergency.

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

Sec. 1. Section 3, chapter 261, Laws of 1945 as last amended by section 4, chapter 296, Laws of 1986 and RCW 41.24.030 are each amended to read as follows:

(1) There is created in the state treasury a trust fund for the benefit of the ((~~firemen~~)) firefighters of the state covered by this chapter, which shall be designated the volunteer ((~~firemen's~~)) firefighters' relief and pension principal fund and shall consist of:

((~~(1)~~)) (a) All bequests, fees, gifts, emoluments, or donations given or paid to the principal fund.

((~~(2)~~)) (b) An annual fee for each member of its fire department to be paid by each municipal corporation for the purpose of affording the members of its fire department with protection from death or disability as herein provided as follows:

((~~(a)~~)) (i) Three dollars for each volunteer or part-paid member of its fire department;

((~~(b)~~)) (ii) A sum equal to one-half of one percent of the annual salary attached to the rank of each full-paid member of its fire department, prorated for 1970 on the basis of services prior to March 1, 1970.

((~~(3)~~)) (c) Where a municipal corporation has elected to make available to the members of its fire department the retirement provisions as herein provided, an annual fee of thirty dollars for each of its ((~~firemen~~)) firefighters electing to enroll therein, ten dollars of which shall be paid by the municipality and twenty dollars of which shall be paid by the ((~~fireman~~)) firefighter.

((~~(4)~~)) (d) Forty percent of all moneys received by the state from taxes on fire insurance premiums shall be paid into the state treasury and credited to the administrative fund.

((~~(5)~~)) (e) The state investment board, upon request of the state treasurer shall invest such portion of the amounts credited to the principal fund as is not, in the judgment of the treasurer, required to meet current withdrawals. Such investments may be made in such bonds, notes or other obligations now or hereafter authorized as an investment for the funds of the public employees' retirement system.

((~~(6)~~)) (f) All bonds or other obligations purchased according to ((~~subsection (5)~~)) (e) of this ((~~section~~)) subsection shall be forthwith placed in the custody of the state treasurer, and he or she shall collect the principal thereof and interest thereon when due.

The state investment board may sell any of the bonds or obligations so acquired and the proceeds thereof shall be paid to the state treasurer.

The interest and proceeds from the sale and redemption of any bonds or other obligations held by the fund shall be credited to and form a part of the principal fund.

All amounts credited to the principal fund shall be available for making the benefit payments required by this chapter.

The state treasurer shall make an annual report showing the condition of the fund.

(2) The volunteer firefighters' relief and pension administrative fund is hereby created in the state treasury. Moneys in the account, including unanticipated revenues under RCW 43.79.270, may be spent only after appropriation by statute, and may be used only for operating expenses of the volunteer firefighters' relief and pension principal fund, the operating expenses of volunteer firefighters' relief and pension administrative fund, or for transfer from the administrative fund to the principal fund.

(a) The state board shall compute a percentage of the amounts credited to the administrative fund to be paid into the principal fund.

(b) For the purpose of providing amounts to be used to defray the cost of administration of the principal and administrative fund, the state board shall ascertain at the beginning of each biennium and request from the legislature an appropriation from the administrative fund sufficient to cover estimated expenses for the biennium.

NEW SECTION. Sec. 2. A new section is added to chapter 41.24 RCW to read as follows:

The state board is authorized to pay from the interest earnings of the trust funds of the system lawful obligations of the system for legal expenses and medical expenses which expenses are primarily incurred for the purpose of protecting the trust fund or are incurred in compliance with statutes governing such funds.

The term "legal expense" includes, but is not limited to, legal services provided through the legal services revolving fund, fees for expert witnesses, travel expenses, fees for court reporters, cost of transcript preparation, and reproduction of documents.

The term "medical costs" includes, but is not limited to, expenses for the medical examination or reexamination of members or retirees, the costs of preparation of medical reports, and fees charged by medical professionals for attendance at discovery proceedings or hearings.

NEW SECTION. Sec. 3. There is transferred from the firefighters' relief and pension principal fund to the firefighters' relief and pension administrative fund the sum of one hundred thousand dollars for the purposes of this act.

NEW SECTION. Sec. 4. Sections 1, 2, and 3 of this act are necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1989.