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TWENTY-SECOND DAY, FIRST SPECIAL SESSION

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MORNING SESSION

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Senate Chamber, Olympia, Wednesday, May 16, 2001

      The Senate was called to order at 10:00 a.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present except Senators Benton and Fairley. On motion of Senator Eide, Senator Fairley was excused. On motion of Senator Honeyford, Senator Benton was excused.

      The Sergeant at Arms Color Guard, consisting of staff members Vickie Winters and Jeannine Dellwo, presented the Colors. Lois Cotton, Legislative Assistant to Senator Jim Hargrove, offered the prayer.


MOTION


      On motion of Senator Betti Sheldon, the reading of the Journal of the previous day was dispensed with and it was approved.


MOTION


      Senator Betti Sheldon moved that the Senate advance to the third order of business.


MOTION


      Senator Tim Sheldon moved that the Senate advance to the fourth order of business.


REPLY BY THE PRESIDENT


      President Owen: "The motions are of equal rank, so we will vote on the first motion to advance to the third order of business."

      The President declared the question before the Senate to be the motion by Senator Betti Sheldon to advance to the third order of business.

      The motion by Senator Betti Sheldon to advance to the third order of business carried on a rising vote, the President voting 'aye.'


PARLIAMENTARY INQUIRY


      Senator Tim Sheldon: "What order of business are we on?"


REPLY BY THE PRESIDENT


      President Owen: "We are on the third order of business, Senator." 


MESSAGE FROM THE GOVERNOR


May 15, 2001

TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to advise you that on May 15, 2001, Governor Locke approved the following Senate Bills entitled:

      Engrossed Second Substitute Senate Bill No. 5060

      Relating to alternative public works contracting procedures.

      Senate Bill No. 5197

      Relating to private activity bonds.

      Substitute Senate Bill No. 5274

      Relating to motor vehicle licensing subagents.

      Engrossed Substitute Senate Bill No. 5413

      Relating to provisions to improve accountability in child dependency cases.

      Engrossed Substitute Senate Bill No. 5703

      Relating to alterations of mobile homes.

Sincerely,

EVERETT H. BILLINGSLEA, General Counsel


MESSAGE FROM THE GOVERNOR

VETO MESSAGE ON ENGROSSED SENATE BILL NO. 5289


May 15, 2001

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

      I am returning herewith, without my approval, Engrossed Senate Bill No. 5289 entitled:

"AN ACT Relating to public facilities in rural counties;"

      Although the original intent of Engrossed Senate Bill No. 5289 was meritorious, in its final form the bill would have undermined the intent of the rural sales tax credit program.

      The prime sponsor requested this veto.

      I support the original intent of this bill, which was to clarify and expand the use of the rural sales tax credit funding program. The bill sought to provide rural counties with a source of funds for the development of public facilities that are important for creating economic opportunity. However, this bill was amended to prevent any electric utility, including many of our public utility districts from using the money.

      Public utility districts are key partners in economic development efforts. They provide not only electrical service, but also sewer, water, and telecommunications services. At a time when funding is limited, we must pool our resources whenever possible to accomplish important economic goals. Removing an important partner from eligibility for these funds unnecessarily ties the hands of the counties in promoting the vitality of their economies.

      Additionally, the bill would have undermined the ability to develop electrical generation and distribution facilities that may be important during a time of energy shortage.

      For these reasons, I have vetoed Engrossed Senate Bill No. 5289 in its entirety.

Respectfully submitted,

GARY LOCKE, Governor


MOTION


      On motion of Senator Betti Sheldon, the veto message on Engrossed Senate Bill No 5289 was held on the desk.


MESSAGE FROM THE GOVERNOR

PARTIAL VETO MESSAGE ON ENGROSSED SENATE BILL NO. 5143

May 15, 2001

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

      I am returning herewith, without my approval as to sections 1 and 2, Engrossed Senate Bill No. 5143 entitled:

"AN ACT Relating to the Washington state patrol retirement system retirement and survivor benefits;"

      Engrossed Senate Bill No. 5143 restructures the Washington State Patrol retirement plan. It increases cost-of-living adjustments, reduces contribution rates and makes several other worthwhile changes.

      Sections 1 and 2 of the bill would have created a new "Plan II" that would have greatly reduced non-duty disability benefits for newly hired Washington State Patrol officers. While I understand the legislature's desire for uniformity among public pension systems, I think these changes require further consideration.

      While similar benefit provisions exist for other state employees who are members of Plan II retirement systems, those employees are also eligible for disability coverage through the social security system. State Patrol officers are not covered by social security, and the new provisions proposed in this bill would have left them and their families vulnerable. All State Patrol officers should be assured of benefits that are at least equal to those of other state employees.

      People who serve the state deserve fair and equitable protection against loss of their ability to work. This gap could be addressed in a number of ways, and I am willing to consider alternative approaches to meeting this need. I would be happy to work with the legislature in developing a revised plan.

      In the meantime, however, drastically reducing the disability coverage for the newest members of the Washington State Patrol without due consideration of how it will be replaced is too great a risk.

      For these reasons, I have vetoed sections 1 and 2 of Engrossed Senate Bill No. 5143.

      With the exception of sections 1 and 2, Engrossed Senate Bill No. 5143 is approved.


Respectfully submitted,

GARY LOCKE, Governor


MESSAGE FROM THE GOVERNOR

PARTIAL VETO MESSAGE ON SUBSTITUTE SENATE BILL NO. 5533


May 15, 2001

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

      I am returning herewith, without my approval as to section 7, Substitute Senate Bill No. 5533 entitled:

"AN ACT Relating to posting and notification of pesticide applications at schools;"

      Substitute Senate Bill No. 5533 clarifies and improves the laws governing the application of pesticides near schools, and provides for advance notification of parents and school employees.

      Section 7 of this bill would have stopped these important improvements from going into effect unless funding were provided in the 2001-2003 budget. While there may have been significant budget implications in the original draft of this bill, the affected entities concluded in their final fiscal analysis that there will be no material costs associated with compliance. Therefore, no funding is needed in the budget for implementation of this act.

I have vetoed section 7 to ensure that this important measure for improving parental awareness of pesticide uses in schools and day care facilities will go into effect.

      For these reasons, I have vetoed section 7 of Substitute Senate Bill No. 5533.

      With the exception of section 7, Substitute Senate Bill No. 5533 is approved.

Respectfully submitted,

GARY LOCKE, Governor


MESSAGE FROM THE GOVERNOR

PARTIAL VETO MESSAGE ON ENGROSSED SUBSTITUTE SENATE BILL NO. 5583


May 15, 2001

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

      I am returning herewith, without my approval as to section 8, Engrossed Substitute Senate Bill No. 5583 entitled:

"AN ACT Relating to the implementation of recommendations of the joint legislative audit and review committee's performance audit of the public mental health system;"

      Engrossed Substitute Senate Bill No. 5583 expresses the legislature's support for most of the recommendations of a recent performance audit of the community mental health system by the Joint Legislative Audit and Review Committee (JLARC). I too support those recommendations, relating to funding flexibility, performance measurement, performance incentives, and other improvements. I also support the bill's goal of minimizing the percentage of available funding that is spent on administrative activities at all levels of the mental health system.

      However, section 8 of the bill would have required the Department of Social and Health Services (DSHS) to develop a plan to reduce administrative expenses in the system, including the Regional Support Networks and community-based treatment providers, to ten percent of available funds, and submit the plan to the legislature by December 15, 2001, with an assumed implementation date of July 1, 2003.

      Minimizing administrative costs is an important goal for any program. But the Secretary of DSHS advises me that developing a realistic plan to achieve that goal for the mental health system as a whole will take longer than seven months, in part because it requires the active participation of mental health providers and Regional Support Networks.

      The legislature's intent to see a plan implemented in July 2003 allows enough time to develop such a plan properly. Therefore, I have vetoed section 8 and direct DSHS to work with appropriate stakeholders to complete the plan, and make recommendations to me and to the legislature by October 1, 2002.

For these reasons, I have vetoed section 8 of Engrossed Substitute Senate Bill No. 5583.

      With the exception of section 8, Engrossed Substitute Senate Bill No. 5583 is approved.

Respectfully submitted,

GARY LOCKE, Governor


MESSAGE FROM THE GOVERNOR

PARTIAL VETO MESSAGE ON SUBSTITUTE SENATE BILL NO. 5940


May 15, 2001

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

      I am returning herewith, without my approval as to section 1, Substitute Senate Bill No. 5940 entitled:

"AN ACT Relating to career and technical education;"

      Substitute Senate Bill No. 5940 aligns the K-12 career and technical education programs with education reform and workforce planning efforts. These changes will integrate K-12 and higher education technical programs to better address skills gaps in our state's workforce.

      Section 1 of the bill would have established different expectations for school districts based on their current program offering. School districts currently offering career and technical education programs would be required to continue those programs, while districts that are not currently offering those programs are only encouraged to establish them. I urge all school districts to establish career and technical education programs, but cannot support a provision that requires some, but not all, school districts to do so. In addition, the requirement to provide career and technical education programs infringes on local school board decision-making.

      For these reasons, I have vetoed section 1 of Substitute Senate Bill No. 5940.

      With the exception of section 1, Substitute Senate Bill No. 5940 is approved.

Respectfully submitted,

GARY LOCKE, Governor


MOTIONS


      On motion of Senator Betti Sheldon, the partial veto messages on Engrossed Senate Bill No. 5143, Substitute Senate Bill No 5533, Engrossed Substitute Senate Bill No. 5583 and Substitute Senate Bill No. 5940 were held on the desk.


MOTION


      Senator Betti Sheldon moved that the Senate advance to the fifth order of business.


MOTION


      Senator Tim Sheldon moved that the Senate advance to the fourth order of business.




REPLY BY THE PRESIDENT


      President Owen: "It is the same situation as before, the motions are of equal rank. Therefore, we will vote on the first motion by Senator Betti Sheldon to advance to the fifth order of business.”

      The President declared the question before the Senate to be the motion by Senator Betti Sheldon to advance to the fifth order of business.

      The motion by Senator Betti Sheldon to advance to the fifth order of business failed on a rising vote.

 

      The President declared the question before the Senate to be the motion by Senator Tim Sheldon to advance to the fourth order of business.

      The motion by Senator Tim Sheldon to advance to the fourth order of business carried on a rising vote, the President voting 'aye.'

 

      The President declared the Senate to be on the fourth order of business.


MOTION


      On motion of Senator Tim Sheldon, the Senate will immediately consider the Message from the House concerning Engrossed Senate Bill No. 6183.


MESSAGE FROM THE HOUSE

May 15, 2001

MR. PRESIDENT:

      The House has passed ENGROSSED SENATE BILL NO. 6183 with the following amendment(s)

       Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. It is the intent of the legislature to create a primary for all partisan elected offices, except for president and vice president, precinct committee officer, and offices exempted from the primary under RCW 29.15.150, that:

       (1) Allows each voter, including those who choose not to affiliate with any major political party, to participate;

       (2) Preserves the privacy of each voter's party affiliation, if any;

       (3) Rejects mandatory voter registration by political party;

       (4) Protects ballot access for minor political party and independent candidates;

       (5) Maintains a candidate's right to self-identify with any major political party; and

       (6) Upholds a political party's First Amendment right of association.

       Sec. 2. RCW 29.01.090 and 1977 ex.s. c 329 s 9 are each amended to read as follows:

       "Major political party" means a political party of which at least one nominee for president, vice president, United States senator, or a statewide office received at least five percent of the total vote cast at the last preceding state general election in an even-numbered year((: PROVIDED, That any political party qualifying as a major political party under the previous subsection (2) or subsection (3) of this section prior to its 1977 amendment shall retain such status until after the next state general election following June 30, 1977)). However, a political party of which no nominee received at least ten percent of the total vote cast may forgo its status as a major political party by filing with the secretary of state an appropriate party rule within sixty days of attaining major party status under this section or thirty days of the effective date of this act, whichever is later.

       NEW SECTION. Sec. 3. A new section is added to chapter 29.07 RCW to read as follows:

       Under no circumstances may an individual be required to affiliate with, join, adhere to, express faith in, or declare a preference for, a political party or organization upon registering to vote.

       NEW SECTION. Sec. 4. Candidates for all partisan elected offices, except for president and vice president, precinct committee officer, and offices exempted from the primary under RCW 29.15.150, will be nominated at primaries held under this chapter.

       NEW SECTION. Sec. 5. So far as applicable, the provisions of this title relating to conducting general elections govern the conduct of primaries.

       NEW SECTION. Sec. 6. A new section is added to chapter 29.30 RCW to read as follows:

       Each primary ballot that includes one or more partisan offices must include a party identification checkoff box that allows a voter to select the party with which the voter chooses to affiliate from a list of the major political parties, or the option to indicate that the voter chooses not to affiliate with any major political party. If a voter makes no selection or selects more than one option, then the voter is presumed to have selected the option indicating that the voter chooses not to affiliate with any major political party.

       NEW SECTION. Sec. 7. A new section is added to chapter 29.30 RCW to read as follows:

       The party identification checkoff box required under section 6 of this act must appear on the primary ballot before the names of candidates and ballot measures. Clear and concise instructions to the voter must be prominently displayed immediately before the list of major political parties, and must include:

       (1) A question asking the voter to indicate the major political party, if any, with which the voter chooses to affiliate;

       (2) A statement indicating that votes cast for a candidate who indicated a major political party designation when filing a declaration of candidacy by a voter who chooses to affiliate with a different major political party will not be tabulated or reported;

       (3) An explanation, for each major political party, of whether or not votes cast by a voter who chooses not to affiliate with any major political party will be used to determine the major political party's nominees;

       (4) A statement that votes cast for minor party candidates or independent candidates by voters who choose to affiliate with a major political party will not be tabulated or reported; and

       (5) A statement that the party identification option will not affect votes cast for candidates for nonpartisan offices or for or against ballot measures.

       NEW SECTION. Sec. 8. No record may be created or maintained by a state or local governmental agency or a political organization that identifies a voter with the information provided on the voter's ballot, including the choice that the voter makes regarding political party affiliation.

       NEW SECTION. Sec. 9. (1) A major political party may choose, by rule adopted under chapter 29.42 RCW, to allow voters who choose not to affiliate with any major political party to cast votes that will be used to determine the major political party's nominees. The rule may only be made on a statewide basis and with respect to all of the votes cast by unaffiliated voters rather than with respect to votes cast in specific districts, in specific races, or for specific candidates.

       (2) A major political party that has adopted a rule under subsection (1) of this section may repeal that rule at any time. However, the effect of the repeal is subject to the time requirements of subsection (6) of this section.

       (3) A major political party shall provide the secretary of state with written notification of an action taken under this section before the end of the first business day that immediately follows the day during which the action is taken.

       (4) If a major political party adopts an appropriate rule under subsection (1) of this section, then the major political party's nominee will be the candidate who receives a plurality of votes from the aggregation of votes cast by voters who choose to affiliate with that major political party and votes cast by voters who choose not to affiliate with any major political party.

       (5) Unless a major political party adopts a rule under subsection (1) of this section, or if a rule so adopted is repealed under subsection (2) of this section, then the major political party's nominee will be the candidate who receives a plurality of votes cast by voters who choose to affiliate with that major political party.






       (6) The adoption of a rule under subsection (1) of this section or the repeal of the rule under subsection (2) of this section must occur on or before March 1st in order to be in effect at any primary conducted between September 1st of the same year and August 30th of the following year. However, a major political party may adopt a rule under subsection (1) of this section no later than thirty days after the effective date of this act that becomes effective at the primary conducted in September of 2001.

       (7) The decision by a major political party to accept votes cast by voters who choose not to affiliate with any major political party does not affect the rights of any other major political party.

       NEW SECTION. Sec. 10. For each major political party, prominent notification regarding whether or not the major political party will allow voters who choose not to affiliate with any major political party to participate in the major political party's nomination process must be made, at the very least, in:

       (1) Any primary voters' pamphlet prepared by the secretary of state or a local government;

       (2) Instructions that accompany any ballot sent by a county auditor to an absentee voter;

       (3) Any notice of primary published in compliance with RCW 29.27.030;

       (4) A sample ballot prepared by a county auditor under RCW 29.30.060;

       (5) The content of the web site of the office of the secretary of state; and

       (6) The content of each county auditors' web site that is in existence.

       NEW SECTION. Sec. 11. Votes cast by a voter who chooses to affiliate with a major political party for a candidate who indicated a different major political party designation when filing a declaration of candidacy, or for a minor party candidate or independent candidate, may not be tabulated or reported. However, votes cast by that voter for candidates for other offices are not affected in any way.

       NEW SECTION. Sec. 12. (1) All votes cast for a candidate who indicated a major political party designation when filing a declaration of candidacy by voters who choose to affiliate with that major political party must be tabulated and reported separately from any other votes cast for that candidate.

       (2) All votes cast for a candidate who indicated a major political party designation when filing a declaration of candidacy by voters who choose not to affiliate with any major political party must be tabulated and reported separately from any other votes cast for that candidate.

       NEW SECTION. Sec. 13. The secretary of state as chief election officer shall adopt rules under chapter 34.05 RCW to facilitate the operation, accomplishment, and purpose of this chapter.

       Sec. 14. RCW 29.04.180 and 1999 c 157 s 1 are each amended to read as follows:

       Any person who desires to be a write-in candidate and have such votes counted at a primary or election may, if the jurisdiction of the office sought is entirely within one county, file a declaration of candidacy with the county auditor not later than the day before the primary or election. If the jurisdiction of the office sought encompasses more than one county the declaration of candidacy shall be filed with the secretary of state not later than the day before the primary or election. Declarations of candidacy for write-in candidates must be accompanied by a filing fee in the same manner as required of other candidates filing for the office as provided in RCW 29.15.050.

       Votes cast for write-in candidates who have filed such declarations of candidacy and write-in votes for persons appointed by political parties ((pursuant to RCW 29.18.160)) under section 16 of this act need only specify the name of the candidate in the appropriate location on the ballot in order to be counted. Write-in votes cast for any other candidate, in order to be counted, must designate the office sought and position number or political party, if applicable. In order for write-in votes to be valid in jurisdictions employing optical-scan mark sense ballot systems the voter must complete the proper mark next to the write-in line for that office.

       No person may file as a write-in candidate where:

       (1) At a general election, the person attempting to file either filed as a write-in candidate for the same office at the preceding primary or the person's name appeared on the ballot for the same office at the preceding primary;

       (2) The person attempting to file as a write-in candidate has already filed a valid write-in declaration for that primary or election, unless one or the other of the two filings is for the office of precinct committeeperson;

       (3) The name of the person attempting to file already appears on the ballot as a candidate for another office, unless one of the two offices for which he or she is a candidate is precinct committeeperson.

       The declaration of candidacy shall be similar to that required by RCW 29.15.010. No write-in candidate filing under RCW 29.04.180 may be included in any voter's pamphlet produced under chapter ((29.80)) 29.81 RCW unless that candidate qualifies to have his or her name printed on the general election ballot. The legislative authority of any jurisdiction producing a local voter's pamphlet under chapter 29.81A RCW may provide, by ordinance, for the inclusion of write-in candidates in such pamphlets.

       NEW SECTION. Sec. 15. A new section is added to chapter 29.15 RCW to read as follows:

       If a place on the ticket of a major political party is vacant because no person has filed for nomination as the candidate of that major political party after the last day allowed for candidates to withdraw under RCW 29.15.120, and if the vacancy is for a state or county office to be voted on solely by the electors of a single county, the county central committee of the major political party may select and certify a candidate to fill the vacancy. If the vacancy is for any other office the state central committee of the major political party may select and certify a candidate to fill the vacancy. The certificate must set forth the cause of the vacancy, the name of the person nominated, the office for which nominated, and other pertinent information required in an ordinary certificate of nomination and be filed in the proper office no later than the first Friday after the last day allowed for candidates to withdraw, together with the candidate's fee applicable to that office and a declaration of candidacy.

       NEW SECTION. Sec. 16. A new section is added to chapter 29.15 RCW to read as follows:

       A vacancy caused by the death or disqualification of a candidate or nominee of a major or minor political party may be filled at any time up to and including the day before the election for that position. For state partisan offices in a political subdivision voted on solely by electors of a single county, the county central committee in the case of a major political party or the state central committee or comparable governing body in the case of a minor political party shall appoint a person to fill the vacancy. For other partisan offices, including federal or statewide offices, the state central committee or comparable governing body of the appropriate political party shall appoint a person to fill the vacancy.

       If the vacancy occurs no later than the sixth Tuesday before the primary or general election concerned and the ballots have been printed, the appropriate election officers shall correct the ballots. In making the correction, it is not necessary to reprint complete ballots if any other less expensive technique can be used and the resulting correction is reasonably clear.

       If the vacancy occurs after the sixth Tuesday before the primary or general election and time does not exist in which to correct ballots (including absentee ballots), either in total or in part, then the votes cast or recorded for the person who has died or become disqualified must be counted for the person who has been named to fill the vacancy.

       When the secretary of state is the person with whom the appointment by the major or minor political party is filed, the secretary of state shall, in certifying candidates or nominations to the various county officers insert the name of the person appointed to fill a vacancy.

       If the secretary of state has already sent forth the certificate when the appointment to fill a vacancy is filed, the secretary of state shall immediately certify to the county auditors of the proper counties the name and place of residence of the person appointed to fill a vacancy, the office for which the person is a candidate or nominee, the party represented, and all other pertinent facts pertaining to the vacancy.

       Sec. 17. RCW 29.27.020 and 1990 c 59 s 8 are each amended to read as follows:

       On or before the day following the last day for political parties to fill vacancies in the ticket as provided by ((RCW 29.18.150)) section 15 of this act, the secretary of state shall certify to each county auditor a list of the candidates who have filed declarations of candidacy in his or her office for the primary. For each office, the certificate shall include the name of each candidate, his or her address, and his or her party designation, if any.

       Sec. 18. RCW 29.27.030 and 1965 c 9 s 29.27.030 are each amended to read as follows:

       Not more than ten nor less than three days prior to the primary election the county auditor shall publish notice of such primary in one or more newspapers of general circulation within the county. ((Said)) The notice shall contain the proper party designations, the names and addresses of all persons who have filed a declaration of







candidacy to be voted upon at that primary election, the notification that is required for each major political party under section 10 of this act, the hours during which the polls will be open, and that the election will be held in the regular polling place in each precinct, giving the address of each polling place((: PROVIDED, That)). The names of all candidates for nonpartisan offices shall be published separately with designation of the offices for which they are candidates but without party designation. This shall be the only notice required for the holding of any primary election.

       Sec. 19. RCW 29.30.005 and 1990 c 59 s 93 are each amended to read as follows:

       Except for the candidates for the positions of president and vice president or for ((a partisan or nonpartisan)) an office for which no primary is required, the names of all candidates who have filed for ((nomination under chapter 29.18 RCW and those independent candidates and candidates of minor political parties who have been nominated under chapter 29.24 RCW shall)) office under chapter 29.15 RCW must appear on the appropriate ballots at the primary throughout the jurisdiction in which they are to be nominated.

       Sec. 20. RCW 29.30.025 and 1990 c 59 s 80 are each amended to read as follows:

       After the close of business on the last day for candidates to file for office, the filing officer shall, from among those filings made in person and by mail, determine by lot the order in which the names of those candidates will appear on all primary, sample, and absentee ballots. ((In the case of candidates for city, town, and district office, this procedure shall also determine the order for candidate names on the official primary ballot used at the polling place.)) The determination shall be done publicly and may be witnessed by the media and by any candidate. If no primary is required for any nonpartisan office under RCW 29.15.150 or 29.21.015, the names shall appear on the general election ballot in the order determined by lot.

       Sec. 21. RCW 29.30.095 and 1990 c 59 s 96 are each amended to read as follows:

       (1) The name of a candidate for a partisan office for which a primary was conducted shall not be printed on the ballot for that office at the subsequent general election unless the candidate receives a number of votes equal to at least one percent of the total number cast for all candidates for that position sought and a plurality of the votes cast for the candidates of his or her party for that office at the preceding primary.

       (2) If, under section 9 of this act, a major political party has chosen to allow voters who choose not to affiliate with any major political party to participate in that major political party's nomination process, then votes cast by all voters affiliated with that party for candidates who indicated that major political party designation when filing a declaration of candidacy must be aggregated with votes cast by unaffiliated voters before comparing vote totals in order to determine a plurality. If not, then a plurality is determined by comparing only the tabulations of votes cast by voters who choose to affiliate with that major political party.

       Sec. 22. RCW 29.30.101 and 1999 c 298 s 11 are each amended to read as follows:

       The names of the persons certified as nominees by the secretary of state or the county canvassing board shall be printed on the ballot at the ensuing election.

       No name of any candidate whose nomination at a primary is required by law shall be placed upon the ballot at a general or special election unless it appears upon the certificate of either (1) the secretary of state, or (2) the county canvassing board, or (3) a minor political party convention or the state or county central committee of a major political party to fill a vacancy on its ticket under ((RCW 29.18.160)) section 16 of this act.

       Excluding the office of precinct committee officer or a temporary elected position such as a charter review board member or freeholder, a candidate's name shall not appear more than once upon a ballot for a position regularly nominated or elected at the same election.

       Sec. 23. RCW 29.33.320 and 1990 c 59 s 28 are each amended to read as follows:

       The secretary of state shall not approve a vote tallying system unless it:

       (1) Correctly counts votes on ballots on which the proper number of votes have been marked for any office or issue;

       (2) Ignores votes marked for any office or issue where more than the allowable number of votes have been marked, but correctly counts the properly voted portions of the ballot;

       (3) Accumulates a count of the specific number of ballots tallied for each precinct, total votes by candidate for each office, and total votes for and against each issue of the ballot in that precinct;

       (4) ((Accommodates rotation of candidates' names on the ballot under RCW 29.30.040;

       (5))) Produces precinct and cumulative totals in printed form; and

       (((6))) (5) Except for functions or capabilities unique to this state, has been tested, certified, and used in at least one other state or election jurisdiction.

       Sec. 24. RCW 29.36.045 and 2001 c 241 s 8 are each amended to read as follows:

       The county auditor shall send each absentee voter a ballot, a security envelope in which to seal the ballot after voting, a larger envelope in which to return the security envelope, and instructions on how to mark the ballot and how to return it to the county auditor. The instructions that accompany absentee ballots for primaries must include the notification that is required for each major political party under section 10 of this act. The larger return envelope must contain a declaration by the absentee voter reciting his or her qualifications and stating that he or she has not voted in any other jurisdiction at this election, together with a summary of the penalties for any violation of any of the provisions of this chapter. The return envelope must provide space for the voter to indicate the date on which the ballot was voted and for the voter to sign the oath. A summary of the applicable penalty provisions of this chapter must be printed on the return envelope immediately adjacent to the space for the voter's signature. The signature of the voter on the return envelope must affirm and attest to the statements regarding the qualifications of that voter and to the validity of the ballot. For out-of-state voters, overseas voters, and service voters, the signed declaration on the return envelope constitutes the equivalent of a voter registration for the election or primary for which the ballot has been issued. The voter must be instructed to either return the ballot to the county auditor by whom it was issued or attach sufficient first class postage, if applicable, and mail the ballot to the appropriate county auditor no later than the day of the election or primary for which the ballot was issued.

       If the county auditor chooses to forward absentee ballots, he or she must include with the ballot a clear explanation of the qualifications necessary to vote in that election and must also advise a voter with questions about his or her eligibility to contact the county auditor. This explanation may be provided on the ballot envelope, on an enclosed insert, or printed directly on the ballot itself. If the information is not included, the envelope must clearly indicate that the ballot is not to be forwarded and that return postage is guaranteed.

       Sec. 25. RCW 29.42.010 and 1977 ex.s. c 329 s 16 are each amended to read as follows:

       Each political party organization ((shall have the power to)) may:

       (1) Make its own rules and regulations;

       (2) Call conventions;

       (3) Elect delegates to conventions, state and national;

       (4) Fill vacancies on the ticket;

       (5) Provide for the nomination of presidential electors; and

       (6) Perform all functions inherent in such an organization((: PROVIDED, That)). However, only major political parties ((shall have the power to)) may designate candidates to appear on the state primary election ballot as provided in ((RCW 29.18.150 as now or hereafter amended)) section 15 of this act.

       Sec. 26. RCW 29.42.050 and 1991 c 363 s 34 are each amended to read as follows:

       The statutory requirements for filing as a candidate at the primaries shall apply to candidates for precinct committee officer except that the filing period for this office alone shall be extended to and include the Friday immediately following the last day for political parties to fill vacancies in the ticket as provided by ((RCW 29.18.150)) section 15 of this act, and the office shall not be voted upon at the primaries, but the names of all candidates must appear under the proper party and office designations on the ballot for the general November election for each even-numbered year and the one receiving the highest number of votes shall be declared elected: PROVIDED, That to be declared elected, a candidate must receive at least ten percent of the number of votes cast for the candidate of the candidate's party receiving the greatest number of votes in the precinct. Any person elected to the office of precinct committee officer who has not filed a declaration of candidacy shall pay the fee of one dollar to the county auditor for a certificate of election. The term of office of precinct committee officer shall be for two years, commencing upon completion of the official canvass of votes by the county canvassing board of election returns. Should any vacancy occur in this office by reason of death, resignation, or disqualification of the incumbent, or because of failure to elect, the respective county chair of the county central committee shall be empowered to fill such vacancy by appointment: PROVIDED, HOWEVER, That in legislative districts having a majority of its precincts in a county with a population of one million or more, such







appointment shall be made only upon the recommendation of the legislative district chair: PROVIDED, That the person so appointed shall have the same qualifications as candidates when filing for election to such office for such precinct: PROVIDED FURTHER, That when a vacancy in the office of precinct committee officer exists because of failure to elect at a state general election, such vacancy shall not be filled until after the organization meeting of the county central committee and the new county chair selected as provided by RCW 29.42.030.

       Sec. 27. RCW 29.42.070 and 1991 c 363 s 35 are each amended to read as follows:

       Within forty-five days after the statewide general election in even-numbered years, ((or within thirty days following July 30, 1967, for the biennium ending with the 1968 general elections,)) the county chair of each major political party shall call separate meetings of all elected precinct committee officers in each legislative district ((a majority of the precincts of which are within a county with a population of one million or more)) for the purpose of electing a legislative district chair in such district. The district chair shall hold office until the next legislative district reorganizational meeting two years later, or until a successor is elected.

       The legislative district chair can only be removed by the majority vote of the elected precinct committee officers in the chair's district.

       NEW SECTION. Sec. 28. A new section is added to chapter 29.81A RCW to read as follows:

       If the legislative authority of a county or first-class or code city provides for the inclusion in the local voters' pamphlet of candidates for partisan office, the pamphlet must prominently include the notification that is required for each major political party under section 10 of this act.

       Sec. 29. RCW 42.17.020 and 1995 c 397 s 1 are each amended to read as follows:

       (1) "Agency" includes all state agencies and all local agencies. "State agency" includes every state office, department, division, bureau, board, commission, or other state agency. "Local agency" includes every county, city, town, municipal corporation, quasi-municipal corporation, or special purpose district, or any office, department, division, bureau, board, commission, or agency thereof, or other local public agency.

       (2) "Authorized committee" means the political committee authorized by a candidate, or by the public official against whom recall charges have been filed, to accept contributions or make expenditures on behalf of the candidate or public official.

       (3) "Ballot proposition" means any "measure" as defined by RCW 29.01.110, or any initiative, recall, or referendum proposition proposed to be submitted to the voters of the state or any municipal corporation, political subdivision, or other voting constituency from and after the time when the proposition has been initially filed with the appropriate election officer of that constituency prior to its circulation for signatures.

       (4) "Benefit" means a commercial, proprietary, financial, economic, or monetary advantage, or the avoidance of a commercial, proprietary, financial, economic, or monetary disadvantage.

       (5) "Bona fide political party" means:

       (a) An organization that has filed a valid certificate of nomination with the secretary of state under chapter 29.24 RCW;

       (b) The governing body of the state organization of a major political party, as defined in RCW 29.01.090, that is the body authorized by the charter or bylaws of the party to exercise authority on behalf of the state party; or

       (c) The county central committee or legislative district committee of a major political party. There may be only one legislative district committee for each party in each legislative district.

       (6) "Depository" means a bank designated by a candidate or political committee pursuant to RCW 42.17.050.

       (7) "Treasurer" and "deputy treasurer" mean the individuals appointed by a candidate or political committee, pursuant to RCW 42.17.050, to perform the duties specified in that section.

       (8) "Candidate" means any individual who seeks nomination for election or election to public office. An individual seeks nomination or election when he or she first:

       (a) Receives contributions or makes expenditures or reserves space or facilities with intent to promote his or her candidacy for office;

       (b) Announces publicly or files for office;

       (c) Purchases commercial advertising space or broadcast time to promote his or her candidacy; or

       (d) Gives his or her consent to another person to take on behalf of the individual any of the actions in (a) or (c) of this subsection.

       (9) "Caucus political committee" means a political committee organized and maintained by the members of a major political party in the state senate or state house of representatives.

       (10) "Commercial advertiser" means any person who sells the service of communicating messages or producing printed material for broadcast or distribution to the general public or segments of the general public whether through the use of newspapers, magazines, television and radio stations, billboard companies, direct mail advertising companies, printing companies, or otherwise.

       (11) "Commission" means the agency established under RCW 42.17.350.

       (12) "Compensation" unless the context requires a narrower meaning, includes payment in any form for real or personal property or services of any kind: PROVIDED, That for the purpose of compliance with RCW 42.17.241, the term "compensation" shall not include per diem allowances or other payments made by a governmental entity to reimburse a public official for expenses incurred while the official is engaged in the official business of the governmental entity.

       (13) "Continuing political committee" means a political committee that is an organization of continuing existence not established in anticipation of any particular election campaign.

       (14)(a) "Contribution" includes:

       (i) A loan, gift, deposit, subscription, forgiveness of indebtedness, donation, advance, pledge, payment, transfer of funds between political committees, or anything of value, including personal and professional services for less than full consideration;

       (ii) An expenditure made by a person in cooperation, consultation, or concert with, or at the request or suggestion of, a candidate, a political committee, or their agents;

       (iii) The financing by a person of the dissemination, distribution, or republication, in whole or in part, of broadcast, written, graphic, or other form of political advertising prepared by a candidate, a political committee, or its authorized agent;

       (iv) Sums paid for tickets to fund-raising events such as dinners and parties, except for the actual cost of the consumables furnished at the event.

       (b) "Contribution" does not include:

       (i) Standard interest on money deposited in a political committee's account;

       (ii) Ordinary home hospitality;

       (iii) A contribution received by a candidate or political committee that is returned to the contributor within five business days of the date on which it is received by the candidate or political committee;

       (iv) A news item, feature, commentary, or editorial in a regularly scheduled news medium that is of primary interest to the general public, that is in a news medium controlled by a person whose business is that news medium, and that is not controlled by a candidate or a political committee;

       (v) An internal political communication primarily limited to the members of or contributors to a political party organization or political committee, or to the officers, management staff, or stockholders of a corporation or similar enterprise, or to the members of a labor organization or other membership organization;

       (vi) The rendering of personal services of the sort commonly performed by volunteer campaign workers, or incidental expenses personally incurred by volunteer campaign workers not in excess of fifty dollars personally paid for by the worker. "Volunteer services," for the purposes of this section, means services or labor for which the individual is not compensated by any person;

       (vii) Messages in the form of reader boards, banners, or yard or window signs displayed on a person's own property or property occupied by a person. However, a facility used for such political advertising for which a rental charge is normally made must be reported as an in-kind contribution and counts towards any applicable contribution limit of the person providing the facility;

       (viii) Legal or accounting services rendered to or on behalf of:









       (A) A political party or caucus political committee if the person paying for the services is the regular employer of the person rendering such services; or

       (B) A candidate or an authorized committee if the person paying for the services is the regular employer of the individual rendering the services and if the services are solely for the purpose of ensuring compliance with state election or public disclosure laws.

       (c) Contributions other than money or its equivalent are deemed to have a monetary value equivalent to the fair market value of the contribution. Services or property or rights furnished at less than their fair market value for the purpose of assisting any candidate or political committee are deemed a contribution. Such a contribution must be reported as an in-kind contribution at its fair market value and counts towards any applicable contribution limit of the provider.

       (15) "Elected official" means any person elected at a general or special election to any public office, and any person appointed to fill a vacancy in any such office.

       (16) "Election" includes any primary, general, or special election for public office and any election in which a ballot proposition is submitted to the voters: PROVIDED, That an election in which the qualifications for voting include other than those requirements set forth in Article VI, section 1 (Amendment 63) of the Constitution of the state of Washington shall not be considered an election for purposes of this chapter.

       (17) "Election campaign" means any campaign in support of or in opposition to a candidate for election to public office and any campaign in support of, or in opposition to, a ballot proposition.

       (18) "Election cycle" means the period beginning on the first day of December after the date of the last previous general election for the office that the candidate seeks and ending on November 30th after the next election for the office. In the case of a special election to fill a vacancy in an office, "election cycle" means the period beginning on the day the vacancy occurs and ending on November 30th after the special election.

       (19) "Expenditure" includes a payment, contribution, subscription, distribution, loan, advance, deposit, or gift of money or anything of value, and includes a contract, promise, or agreement, whether or not legally enforceable, to make an expenditure. The term "expenditure" also includes a promise to pay, a payment, or a transfer of anything of value in exchange for goods, services, property, facilities, or anything of value for the purpose of assisting, benefiting, or honoring any public official or candidate, or assisting in furthering or opposing any election campaign. For the purposes of this chapter, agreements to make expenditures, contracts, and promises to pay may be reported as estimated obligations until actual payment is made. The term "expenditure" shall not include the partial or complete repayment by a candidate or political committee of the principal of a loan, the receipt of which loan has been properly reported.

       (20) "Final report" means the report described as a final report in RCW 42.17.080(2).

       (21) "General election" means the election that results in the election of a person to a state office. It does not include a primary.

       (22) "Gift," is as defined in RCW 42.52.010.

       (23) "Immediate family" includes the spouse, dependent children, and other dependent relatives, if living in the household. For the purposes of RCW 42.17.640 through 42.17.790, "immediate family" means an individual's spouse, and child, stepchild, grandchild, parent, stepparent, grandparent, brother, half brother, sister, or half sister of the individual and the spouse of any such person and a child, stepchild, grandchild, parent, stepparent, grandparent, brother, half brother, sister, or half sister of the individual's spouse and the spouse of any such person.

       (24) "Independent expenditure" means an expenditure that has each of the following elements:

       (a) It is made in support of or in opposition to a candidate for office by a person who is not (i) a candidate for that office, (ii) an authorized committee of that candidate for that office, (iii) a person who has received the candidate's encouragement or approval to make the expenditure, if the expenditure pays in whole or in part for political advertising supporting that candidate or promoting the defeat of any other candidate or candidates for that office, or (iv) a person with whom the candidate has collaborated for the purpose of making the expenditure, if the expenditure pays in whole or in part for political advertising supporting that candidate or promoting the defeat of any other candidate or candidates for that office;

       (b) The expenditure pays in whole or in part for political advertising that either specifically names the candidate supported or opposed, or clearly and beyond any doubt identifies the candidate without using the candidate's name; and

       (c) The expenditure, alone or in conjunction with another expenditure or other expenditures of the same person in support of or opposition to that candidate, has a value of five hundred dollars or more. A series of expenditures, each of which is under five hundred dollars, constitutes one independent expenditure if their cumulative value is five hundred dollars or more.

       (25)(a) "Intermediary" means an individual who transmits a contribution to a candidate or committee from another person unless the contribution is from the individual's employer, immediate family as defined for purposes of RCW 42.17.640 through 42.17.790, or an association to which the individual belongs.

       (b) A treasurer or a candidate is not an intermediary for purposes of the committee that the treasurer or candidate serves.

       (c) A professional fund-raiser is not an intermediary if the fund-raiser is compensated for fund-raising services at the usual and customary rate.

       (d) A volunteer hosting a fund-raising event at the individual's home is not an intermediary for purposes of that event.

       (26) "Legislation" means bills, resolutions, motions, amendments, nominations, and other matters pending or proposed in either house of the state legislature, and includes any other matter that may be the subject of action by either house or any committee of the legislature and all bills and resolutions that, having passed both houses, are pending approval by the governor.

       (27) "Lobby" and "lobbying" each mean attempting to influence the passage or defeat of any legislation by the legislature of the state of Washington, or the adoption or rejection of any rule, standard, rate, or other legislative enactment of any state agency under the state Administrative Procedure Act, chapter 34.05 RCW. Neither "lobby" nor "lobbying" includes an association's or other organization's act of communicating with the members of that association or organization.

       (28) "Lobbyist" includes any person who lobbies either in his or her own or another's behalf.

       (29) "Lobbyist's employer" means the person or persons by whom a lobbyist is employed and all persons by whom he or she is compensated for acting as a lobbyist.

       (30) "Person" includes an individual, partnership, joint venture, public or private corporation, association, federal, state, or local governmental entity or agency however constituted, candidate, committee, political committee, political party, executive committee thereof, or any other organization or group of persons, however organized.

       (31) "Person in interest" means the person who is the subject of a record or any representative designated by that person, except that if that person is under a legal disability, the term "person in interest" means and includes the parent or duly appointed legal representative.

       (32) "Political advertising" includes any advertising displays, newspaper ads, billboards, signs, brochures, articles, tabloids, flyers, letters, radio or television presentations, or other means of mass communication, used for the purpose of appealing, directly or indirectly, for votes or for financial or other support in any election campaign.

       (33) "Political committee" means any person (except a candidate or an individual dealing with his or her own funds or property) having the expectation of receiving contributions or making expenditures in support of, or opposition to, any candidate or any ballot proposition.

       (34) "Primary" for purposes of the limits in RCW 42.17.640 means the ((procedure for nominating)) election that nominates a candidate to state office ((under chapter 29.18 or 29.21 RCW or any other primary for an election that uses, in large measure, the procedures established in chapter 29.18 or 29.21 RCW)).

       (35) "Public office" means any federal, state, county, city, town, school district, port district, special district, or other state political subdivision elective office.

       (36) "Public record" includes any writing containing information relating to the conduct of government or the performance of any governmental or proprietary function prepared, owned, used, or retained by any state or local agency regardless of physical form or characteristics. For the office of the secretary of the senate and the office of the chief clerk of the house of representatives, public records means legislative records as defined in RCW 40.14.100 and also means the following: All budget and financial records; personnel leave, travel, and payroll records; records of legislative sessions; reports submitted to the legislature; and any other record designated a public record by any official action of the senate or the house of representatives.

       (37) "Recall campaign" means the period of time beginning on the date of the filing of recall charges under RCW 29.82.015 and ending thirty days after the recall election.

       (38) "State legislative office" means the office of a member of the state house of representatives or the office of a member of the state senate.

       (39) "State office" means state legislative office or the office of governor, lieutenant governor, secretary of state, attorney general, commissioner of public lands, insurance commissioner, superintendent of public instruction, state auditor, or state treasurer.








       (40) "State official" means a person who holds a state office.

       (41) "Surplus funds" mean, in the case of a political committee or candidate, the balance of contributions that remain in the possession or control of that committee or candidate subsequent to the election for which the contributions were received, and that are in excess of the amount necessary to pay remaining debts incurred by the committee or candidate prior to that election. In the case of a continuing political committee, "surplus funds" mean those contributions remaining in the possession or control of the committee that are in excess of the amount necessary to pay all remaining debts when it makes its final report under RCW 42.17.065.

       (42) "Writing" means handwriting, typewriting, printing, photostating, photographing, and every other means of recording any form of communication or representation, including, but not limited to, letters, words, pictures, sounds, or symbols, or combination thereof, and all papers, maps, magnetic or paper tapes, photographic films and prints, motion picture, film and video recordings, magnetic or punched cards, discs, drums, diskettes, sound recordings, and other documents including existing data compilations from which information may be obtained or translated.

       As used in this chapter, the singular shall take the plural and any gender, the other, as the context requires.

       NEW SECTION. Sec. 30. Nothing in this act may be construed by the secretary of state or a county auditor to mean that a voter may cast more than one vote for candidates for a given office.

       NEW SECTION. Sec. 31. (1) The legislature recognizes that this act significantly changes the way in which a primary for partisan office shall be conducted, and thus it intends to ease the transition and allow any primary held prior to July 1, 2002, to be implemented with existing systems currently in use by each county auditor.

       (2) Notwithstanding any language to the contrary found elsewhere in this act or in existing statute each county auditor may design a ballot and utilize procedures other than those detailed in this act when conducting a partisan primary provided that the design of the ballot and the procedures are specifically allowed by a rule adopted by the secretary of state under chapter 34.05 RCW, and that the following criteria are met:

       (a) A voter shall have the option to affiliate with a major political party, or to not affiliate with any major political party;

       (b) Voter privacy, including selection of party affiliation, is preserved;

       (c) A voter who affiliates with a major political party may only cast votes for partisan office for candidates that indicated that same-party affiliation when filing a declaration of candidacy, and any votes cast for a candidate that indicated a different party affiliation when filing a declaration of candidacy shall not be tabulated and reported;

       (d) A voter who chooses not to affiliate with any major political party may vote for any candidate regardless of the candidate's political party designation, and votes cast by such voter shall be tabulated and reported; and

       (e) Votes cast for a candidate by voters who choose to affiliate with a major political party shall be reported separately from votes cast for the same candidate by voters who choose not to affiliate with any major political party.

       (3) This section expires July 1, 2002.

       NEW SECTION. Sec. 32. The following acts or parts of acts are each repealed:

       (1) RCW 29.18.010 (Application of chapter) and 1990 c 59 s 78 & 1965 c 9 s 29.18.010;

       (2) RCW 29.18.120 (General election laws govern primaries) and 1990 c 59 s 87, 1971 ex.s. c 112 s 1, & 1965 c 9 s 29.18.120;

       (3) RCW 29.18.150 (Vacancies on major party ticket caused by no filing--How filled) and 1990 c 59 s 102, 1977 ex.s. c 329 s 12, & 1965 c 9 s 29.18.150;

       (4) RCW 29.18.160 (Vacancies by death or disqualification--How filled--Correcting ballots and labels--Counting votes already cast) and 2001 c 46 s 4 & 1977 ex.s. c 329 s 13;

       (5) RCW 29.18.200 (Blanket primary authorized) and 1990 c 59 s 88 & 1965 c 9 s 29.18.200; and

       (6) RCW 29.30.040 (Primaries--Rotating names of candidates) and 1990 c 59 s 94, 1977 ex.s. c 361 s 54, & 1965 c 9 s 29.30.040.

       NEW SECTION. Sec. 33. Sections 1, 4, 5, and 8 through 13 of this act constitute a new chapter in Title 29 RCW.

       NEW SECTION. Sec. 34. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

       NEW SECTION. Sec. 35. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

       Correct the title., and the same are herewith transmitted.

TIMOTHY A. MARTIN, Co-Chief Clerk

CYNTHIA ZEHNDER, Co-Chief Clerk


MOTION


      Senator Tim Sheldon moved that the Senate do not concur in the House amendment to Engrossed Senate Bill No 6183.


MOTION


      Senator Snyder moved that the Senate do concur in the House amendment to Engrossed Senate Bill No. 6183.


MOTION


      Senator Snyder moved that Engrossed Senate Bill No. 6183 be made a special order of business for 10:30 a.m. on Friday, May 18.


REMARKS BY SENATOR HARGROVE


      Senator Hargrove: “Thank you, Mr. President. I would object to that motion. There are a number of people leaving town. This is a very important issue. I think we ought to do it. So, I object to the motion.”


REMARKS BY SENATOR WEST


      Senator West: “Mr. President, I request that the motion be divided. There is a motion to concur and there is a motion to make it a special order of business. What are we doing here?”


REPLY BY THE PRESIDENT


      President Owen: “Senator West, it is not necessary to divide the question. The motion before the Senate is the motion by Senator Snyder to make Engrossed Senate Bill No. 6183 a special order of business for 10:30 a.m. on Friday, May 18.”




REMARKS BY SENATOR FINKBEINER


      Senator Finkbeiner: “Thank you, Mr. President, speaking against the motion. I think the Attorney General visited both of our caucuses and urged us to resolve this matter as quickly as possible. What she told us was that the longer we wait, the more difficult it is going to be to for her to argue anything in front of the court. The position that the people who want to put this debate off, that’s going to be harder to argue and the position that those of us who don’t want to put it off, that’s going to be harder to argue also. If nothing gets passed, that’s still going to be hard for her to put something together in the next--what is it--eight days from now that the court is going to make a decision?

      “I think we’ve debated this enough all through the year. I think we’ve put it off enough. We’ve put off committee hearings. We’ve put off debate on the floor. The House has made their position, and I think we’ve made our position. I think we still believe in our position. I think we need to send this back over to the House and let them know today, and quit delaying, because the longer we delay, the more we’re handing this issue from the Legislature, where I think it deserves to be resolved--over to the courts--where I don’t think most of us want to see it resolved. So, I urge a ‘no’ vote on this motion.”


REMARKS BY SENATOR SNYDER


      Senator Snyder: “Thank you, Mr. President. Well, just a few moments ago, the proponents of the bill that left here were saying they got jammed in the House of Representatives. They should have waited a few days over there before they ran the bill. Now, we’re being told that if we postpone this until Friday, it isn’t the thing to do, we should jump up and pass it real fast. So, I think the proper thing to do is just to wait until Friday. We talk about members not being here on Friday and being gone, I think our obligation is to be here. We’re in a special session and there are people gone all the time. I think this is the number one priority for all of us unless they have a real emergency to be gone from Olympia. I think we need to take a look; I don’t even know fully what the House of Representatives passed. I understand they amended 6183 that we originally had over here and made some changes in that and we haven’t even had a chance to discuss those at all. I think it’s just reasonable that we wait until Friday to consider this. Also, I’ll talk about something else later if it comes to that.”


REMARKS BY SENATOR EIDE


      Senator Eide: “Thank you, Mr. President, I too stand in favor of the motion. I would like a chance to read the bill. Unfortunately, I believe it passed the House of Representatives yesterday, and I don’t think it is unreasonable to wait until 10:30 on Friday morning to give each and every one of us a chance to at least read it to see what’s in it, and if there were any changes made.”


REMARKS BY SENATOR CARLSON


      Senator Carlson: “Mr. President, ladies and gentlemen of the Senate. This bill that we passed originally from the Senate two days ago, was passed by the other body in one day and then they sent it back to us. Have they made changes? Sure. I’m speaking against the motion to delay, because I believe that we knew what we voted on two days ago. We had an excellent debate on that issue two days ago. We can still vote the same; we could vote differently. We can understand what we voted on already two days ago, and if I heard the motion correctly before we were asked to consider to delay this until Friday, there was an opportunity to have the differences explained.

      “I know that we have looked at this issue for months. We understand the basic concept of the bill and the revisions of the bill that we voted on two days ago. I believe we’re putting off a very crucial vote that the Attorney General needs to have direction on. I believe we should make it very clear that we understand what we are and what we have already voted on, and therefore, I urge you to vote against the motion to delay.”


REMARKS BY SENATOR ROACH


      Senator Roach: “Thank you, Mr. President. I urge that we do vote for delay and I want to explain to the members why. I think that the Senator that just spoke is definitely correct. We all know the issues and we all know what both the underlying bill that 6183 was, and we also know what it was when it left for the House. Most of us, I think, have a good feeling for what has come back for us to consider. But, that’s not the issue anymore. That’s not the issue for the delay. The issue for the delay is not the content of 6183. The issue for a delay is so that we can now discuss something even more important and that issue is, shall we in fact allow for the courts to take over the responsibility that we have as legislators--and that we will never ever be able to inject our own or the people’s will into this subject.

      “Remember the Boldt Decision--remember when that issue went to the court, it closed off any access that the state of Washington’s Legislature, and therefore the people, had in that debate forever. If we don’t get a bill for the Governor’s desk, we will have no more input on the issue, because it will go to court. So, I would suggest this, that even if we do not like the version that the House is coming back with, and remember I voted for 6183 as it left the Senate--even if we do not prefer that version, it is much preferable in these few remaining days to get a bill to the Governor’s office that he will sign, so that we can, and future legislatures, can, continue to address this. If we don’t, we’ve closed the door.

      “That, ladies and gentlemen of the Senate, is the issue before us today and the issue of the delay. Mr. President, I move that the whole debate on 6183 that occurred Monday and today and as it will come up in the future hopefully, be spread upon the record of the Journal for the purposes of easy access for our prosperity to look and understand what’s happening in this extremely historical point.”


REPLY BY THE PRESIDENT


      President Owen: “Senator Roach, your motion, at this time, would be out of order. You will have to make it after we dispose of this motion.”





REMARKS BY SENATOR KOHL-WELLES


      Senator Kohl-Welles: “Thank you, Mr. President. I also support the motion to delay the vote until Friday. We have two very different proposals before us. One, that the Senate has passed out and secondly, the amended bill that came over from the House. Now, indeed there may be some resolution to this, where we’re not having to select between these two options. Some people are working on trying to find a compromise here that could be embraced by all of us here in the Senate and everybody in the House. Delaying this for two days would give the opportunity for us all to work on crafting such a compromise. If nothing else, I believe we can wait for two days to see if we can come up with that compromise.”


      The President declared the question before the Senate to be the motion by Senator Snyder to make Engrossed Senate Bill No. 6183 a special order business at 10:30 a.m. on Friday, May 18.

      The motion by Senator Snyder to make Engrossed Senate Bill No. 6183 a special order of business for Friday, May 18, failed on a rising vote.

      The President declared the question before the Senate to be the motion by Senator Snyder to concur in the House amendment to Engrossed Senate Bill No. 6183.


REMARKS BY SENATOR HARGROVE


      Senator Hargrove: “Thank you, Mr. President. I would like to speak against that motion. The bill we have before us here is essentially the same decision we made yesterday. It was whether we were going to have the Washington primary--the people’s choice primary--or the modified Montana plan. I believe there was some very minor amendments made, but the substance of the main debate is still here. So, I would urge that we vote against this motion to concur.”


REMARKS BY SENATOR FRANKLIN


      Senator Franklin: “Thank you, Mr. President. I move that we do concur with the motion, because after watching very, very closely the debate on both sides, and knowing what the outcome has been, it has been one of the toughest votes that members have had to take. So, concurring with the amendment certainly would then answer not only the question which confronts us, but would be most appropriate for the voters. We have been trying to address the issue before it is turned over to the court.”


REMARKS BY SENATOR TIM SHELDON


      Senator Tim Sheldon: “Thank you, Mr. President. I move that we vote ‘no’ on this motion and that we not concur and defeat this motion and then subsequently we pass a motion to not concur and to adhere to our position. Really, this is a battle between the people and the parties. It really gets down to this vote today. You’ve read the newspaper articles, you’re starting to hear from your constituents and I can’t think of a constituent that I have that wants their vote not to count.

      “How would it be in this body if someone was chosen--if someone said, the body said, you in District X or you in District Y, your vote will not count today. You can go to the polls, you can go through the motions, you can take a ballot, you can do that most sacred thing that we do in America--vote, but your vote will not count. That’s the basic difference between these two plans. There’s no changing it. There’s no getting around it. There’s no begging the parties to count the votes. There’s no deal that can be made. It’s all left to someone else to decide and that’s not what we do in America. Our Constitution says, ‘We, the people,’ it doesn’t say, ‘We, the party.’ Please vote ‘no’ on this motion. Bring the next motion up. We’ll send the bill that we passed that favors the people, back to the House where it was defeated by a small margin. Given time, I believe that will also pass, because the power of the people will prevail.”


REMARKS BY SENATOR CONSTANTINE


      Senator Constantine: “Thank you, Mr. President. The bill before us is the one alternative that we have to a judicially imposed primary election system in the state of Washington. The Cajun system is not going to pass the House of Representatives--I’m sorry Mr. President. I know we’re not supposed to discuss deliberations over there, but it’s part of the reality of what we vote on today. If we do not concur, then we say that a federal judge can impose whatever system you will on this state. Instead of a moderate system as represented by the bill before us right now, one which protects individual privacy, one which recognizes the right of people to vote across party lines, we’re going to have a system where it’s likely based on what the Attorney General told us recently, that we’ll go to a convention to choose the candidates for the general election. Do your voters prefer to go to a party convention than to go to the polls and vote?

      “The bill we have before us is the most modern option that is going to pass. Nothing else short of this is going to pass, so you can vote the way you voted last time. You can remain wedded to that position, but you need to recognize you’re not actually going to make a change in the law, you’re not actually going to solve the problem, and you’re not going to do a darn thing for the voters of this state. I would urge you to vote to concur.”


REMARKS BY SENATOR FINKBEINER


      Senator Finkbeiner: “Thank you, Mr. President and members of the Senate. You know the folks that want to denigrate the Washington choice model and call it the Cajun model or call it the Louisiana system, even though it’s clearly not that, even though it’s clearly the same model that we use to elect all of our local folks. Along those lines, I think if you’re going to characterize this bill as what does it in essence really represent? I think this is a Tammany Hall model. This is a let’s go back to the smoke-filled back rooms and pick out who’s going to be the party nominee. Let’s take the votes away from the people and give them to the party. I think we had enough debate on this yesterday, so speaking directly to this motion on whether or not we want to concur. I guess I think that despite some of the claims that have been made today, I think it’s a little early to call this the only version that could be passed.

      “In fact, I think there’s a very slim majority that passed the current bill that we’re currently looking at and I think the Senate gave much more deliberation and debate over the course of the session to this topic. I don’t think anybody was rushed in their decision making. I think we owe it to ourselves to hold the position that we had yesterday--to say that we’re going to place the voters above the party and to give the other body a chance to really consider this debate. In fact I don’t know how many of those of you who listened to the debate yesterday, but something I was very surprised at as I heard over and over again, well let’s really talk to those parties. We’ll just really put a lot of pressure on them. I heard it on the news today, one of the folks who supported this bill saying, ‘We’ll just really tell those parties one more time,’ just like we did in our last presidential election where they threw out over fifty percent of the votes--didn’t count them because people had to pick their parties.

      “It is just like we’ve done all session until now where we’ve said over and over again, ‘Please don’t sue the state, please don’t put us in this position,’ and we’ve ignored it all the way until now. So, I think it’s time and the right time to say ‘no.’ The other body should consider this and we’re going to continue to stand with the people. So I urge a ‘no’ vote.”


REMARKS BY SENATOR KOHL-WELLES


      Senator Kohl-Welles: “Thank you, Mr. President. I speak in favor of concurring in the House amendment. I find it very interesting when I hear people say that voting for the House amendment is tantamount to wanting to go to Tammany Hall and have the situation in our state where the party bosses decide who’s going to be advanced to the general election. I would like to tell you a little bit of background here. The model for this came from a constituent of mine from Queen Anne in Seattle back in early February. He brought the idea to me. He’s been an elections inspector for years and he’s observed what happens at the polling places. He knows that people want to preserve privacy of whom they vote for and which party they identify with, but he also has believed that the parties have some rights to be involved with who goes on to represent the party in the general election.

      “I tried to take this to the democratic party. I tried over and over again to talk about this proposal here. No one really paid attention, because we legislators did not want to deal with the situation. We did not want our constituents to be angry with us for making a change in their beloved blanket primary, which no one has wanted to change. Eventually, this got on the radar screen and I talked with party officials. I asked them to give me input. They didn’t get back to me. This is not something that the parties have put us up to. I think they prefer this over the Louisiana primary approach, but this is not what they want either. They would like full registration by party with closed primary ballots. Now this option--this model--is not ideal. How many times do we vote on a compromise bill in this body that we love? Usually, we don’t love compromises, but a compromise is something that can work--and this can work. It passes constitutional muster according to the Attorney General’s office.

      “Believe me, if this does not go forward and the Louisiana model does, just wait until you hear from outraged constituents when they go to vote in the general election and there are only two people on the ballot from one party. Are they going to have a choice before them? Just wait until there are no minor candidates on the general election ballot. Are people going to be very pleased then and like what we have done? We need to approve the House amendment. The best approach is the one that will work even though none of us loves it.”


REMARKS BY SENATOR DECCIO


      Senator Deccio: “Thank you, Mr. President. I haven’t weighed in on this, but reducing it down to a plain simple fact, that number one, I don’t want the parties telling me what to do, whether I can run, whether I can’t run, whether I get nominated, whether I don’t get nominated. Number two, we cannot disenfranchise anyone. Senator Kohl said that the electorate would be outraged if we don’t go with the House. They will be more outraged when they find out that they cannot vote--that their vote does not count. That’s the bottom line for me. We just went through the Florida fiasco where votes were counted, some were not counted. We don’t want to do that again in the state of Washington. We need to go with the Senate version and let’s get this thing over with. Thank you.”


REMARKS BY SENATOR KLINE


      Senator Kline: “Mr. President and members, I’m somewhat offended as a New Yorker to hear Tammany Hall brought into this. Tammany Hall was a political machine comparable in its day to the recent Chicago political machine. If there’s any bill that would make the political machinery work, it’s a bill that would take away from this Legislature the authority to write legislation and give it--not to a group of people around a table in a back room all smoking cigars-- but to one person, a federal judge. If we don’t exercise legislative power, we’re going to have legislative power exercised on us by a judge--a single person. I can’t see any other alternative that could possibly pass both houses of this Legislature that would take it away from Judge Burgess, other than this bill.

      “This bill has more merit to it than simply--well it’s an alternative to taking it away from a judge. There is a point to having both parties, possibly minor parties as well, in the mix, in election day, in November when the largest number of people come out to vote. The real choice is made not in September, but in November. Every other even numbered November, we have a president and vice president to be elected. We have large numbers of people every even-numbered November when our congressional delegation is up. That’s when people come to the polls. That’s when choice matters--choice between ideologically different candidates. This bill, I believe--if we concur--would give us that and it would be our decision to make.”


REMARKS BY SENATOR HEWITT


      Senator Hewitt: “Thank you, Mr. President. Yesterday, I voted for the amendment basically because I want the people to have the choice and I think that’s the method to do it. I don’t think any country should allow any vote to be cast out by a handful of people. I want to read you something that I received yesterday and here’s what’s important about this. This came from the treasurer of my campaign last year. He’s






also a party official; his wife is a state committeewoman. I think you’ll appreciate this, I’m going to quote this. ‘Yesterday, our sorry State Senator voted on a striking amendment which gutted Senator Snyder’s Bill No. 6183. Our sorry Senator voted both for the amendment and the final bill,’ which was addressed to the officials of the Republican party in Walla County. That ladies and gentlemen is part of the problem here.

      “We’re not only taking the choice away from the people that we want to make the choice for, but we’re also handing over some of the choices to the people that helped to get us here. I don’t think it’s correct. I spent last night on the phone talking to the county officials, trying to explain my position and why I think it’s so important to allow the people of this state to cast their vote and have their vote counted. I want something to come out of this body. I don’t care what it is. I want something to come out of this body, but I would prefer to have the people of this state have their votes counted. I’m willing to take another risk to get it back to the House to let them have the message a second time. Thank you.”


REMARKS BY SENATOR CARLSON


      Senator Carlson: “Thank you, Mr. President. Ladies and gentlemen of the Senate, I stand in opposition to the bill before you. In fact, if I had the opportunity, I would request that we adhere to our position and insist that they recede from their position. We are about the people’s business and the legislation that we passed two years ago--sorry, two days ago--is certainly a desire and attempt to recognize the will of the people as they described their view on the issue of a Washington preferential primary vote. The press--you ought to be ashamed of yourselves, ashamed of yourselves for calling it the Cajun system, the Louisiana system. It’s our state’s people’s preference. If you wouldn’t keep calling it Cajun and Louisiana, maybe we’d have an opportunity for the citizens to understand that we’re trying to provide them their choice. They have indicated many times the desire to be able to vote as they choose. We sent, by a majority vote in an excellent civics discussion on this floor two days ago, what we thought was the right thing to do. We sent it to the other body. They had an interesting discussion, but they couldn’t even discuss what we sent them because one person says it’s not going to be allowed.

      “Well, if we’re a representative democracy then we need to stand up for what we believe in, a democratic/republican government and send it back the way we sent it to them, because I believe, if we gave this opportunity for the folks to vote on it in a different body, they would pass this bill-- if they were given the opportunity. Please vote this down and adhere to our position.”


REMARKS BY SENATOR THIBAUDEAU


      Senator Thibaudeau: “Thank you, Mr. President and members of the Senate. I find it somewhat ironic that you’re talking about the people’s’ choice about this particular measure and I’m rising in support of the motion. I want people to have a choice, too, and I want people to have a choice at the general as well as the primary. We all know, relative to the general, how relatively few people vote in the primary. I also find it ironic, and sometimes much to the despair of my party how bipartisan I am, that you cite Tammany Hall. How many of you have been to your district meetings lately, people? How many people are there on a regular basis? How often? I ran against a party candidate and incidently won. I too listened to the debate. There was something like almost twenty votes against it. There were a lot that were excused, but it wouldn’t have made the difference. Over and over and over again, the people said, rather the members of that other body said, ‘We really appreciate the work you’ve all done’--the Co-Chairs that is. Furthermore, in spite of the statements from the other day, the Co-Speakers both voted for it. They gave it considerable thought. It was a long time, because they were in caucus for a long time and I urge you, urge you, to give the people a choice in the general, as well as the other elections. Thank you.”


REMARKS BY SENATOR RASMUSSEN


      Senator Rasmussen: “Thank you, Mr. President. Well, I rise to ask you to not support this and one of the biggest reasons is that if we support this, it goes to the Governor’s desk. We don’t get another chance to bring this issue back to negotiate any further. This goes to the Governor’s desk--doesn’t go back to the House. I think that this is so important. We need to send a message to the House that we need to continue to negotiate. I represent one hundred thirty-five thousand people. It’s almost entirely unincorporated Pierce County. They look to their legislators to be their real voice, and they look to voting as their choice. They want to vote. If I told them that I voted for a system that said their vote may or may not count, they would be very, very disappointed and ashamed of me as a legislator.

      “This morning, I was at the Graham Business Association. Forty-five thousand people live in the community of Graham, which is unincorporated. Most of your areas, if you have forty-five thousand people in an area, it’s a city or a town, at least. They pleaded with me to please let their vote count. I cannot overlook their choice. So, I ask you to please send this back to the House and let’s negotiate further, because we have to look at what the people want. They’re the final ones that are going to choose who they want to elect them--to represent them--and I want to give them that choice.”


REMARKS BY SENATOR SPANEL


      Senator Spanel: “Thank you, Mr. President. The word ‘choice’ has been mentioned many times and it’s also been mentioned that it’s not a choice, but I just want to restate that. Yes, in the other system, there is a choice in the first election, which I would hesitate to call a primary choice if you’re talking about the Louisiana system. In that system, there is no choice for a lot of people in the general election and it has been stated many times that is when most of the people are voting. Someone could go to that ballot and there could be two people from one party, no minor candidates in most elections. I think there might have been a couple in this past election, at least on our side where the minority party candidate was on the general election ballot. There is no choice in that system and so I’m asking you to concur with the bill the House has sent back to us, because that does give people the choice in that last election. One of the things that was mentioned the other day is the minority party candidates do add something to our system and those discussions when we’re in the forums in the fall before an election. It is important that they are there. If you have only two people from one party on that general election, it may not be much of a choice at all and there may not be many disagreements on the issues.

      “I also sense from much of the discussion that there’s a big great, fear of the ‘party’ out there. You know the party structure is a few people. The people who identify with a particular party are lots of people and they vote in elections. I guess that’s also what ties in the choice. I come from a swing district, and it could really go either way and it has at various times, so I know that I get elected because people have made a choice to vote for me on that general election ballot in November, whether they were a Democrat or not. I think we forget there are a lot of people out there who consider themselves associated with one party or the other, but they don’t go to the party functions, they vote for a particular party. I think we’re sort of saying to them that you won’t have a choice or you may not have a choice in that November election. Please vote to concur with the House amendment and give everybody a choice in the general election.”


REMARKS BY SENATOR MORTON


      Senator Morton: “Thank you, Mr. President, ladies and gentlemen of the Senate. I could not--cannot help but reflect back on the history of our country and on my own mother. How proudly she wore--and there was a whole batch of badges--they strung out probably eight to ten inches in length, of the names of the eleven ancestors on her side of the family that fought in the American Revolution. Why did they fight? And all those since? It’s been mentioned one of their primary purposes was to preserve the right for the individual’s vote, and that that vote be counted. I believe that’s one of the key things before us. Not that a vote be tallied, but that a vote be counted when it is cast. That’s one of the primary differences in these two systems.

      “When I was a young man, my father was in politics and in his last three campaigns, I was his campaign chairman. I was just a young squirt in college, but we lived in a state then where the parties ran the state. I’m telling you we don’t want to go that way. That state has suffered because of it. If you did not have the support of the county political party chairman, you didn’t get anywhere. Then there was the state chairman, and all the precinct committee people and the party members in between. It was a bad system. Now, of the two proposals that we have before us, the one leans very heavily, in my opinion, in that direction--the wrong direction. I would call it the Montana manipulation by masters of politics. We don’t want to go that way. I think rather we would stay with that which our history has prevailed to be the best that each individual citizen’s vote counts. We don’t need, in this Legislature or at the county councils, party pawns. We need those who are individuals representing the people who elected them. I heavily believe that we have the one system which we sent to the House and needs to be returned to them for their further analyzation. That’s the one I would encourage you to vote for.”


REMARKS BY SENATOR ROACH


      Senator Roach: “Thank you Mr. President. Members of the Senate, I completely concur with everything the previous speaker has stated. It is interesting, though, because I come down on the other side of this particular bill that’s before us and I want to explain the reason. First, let me preface that reason by stating that in King County, right now, our King County chairman goes around and appoints district chairs. They are not elected from the PCOs. These appointed district chairs sit on the executive board and this executive board is making pre-primary endorsements without consulting the PCOs. I hope you all heard that, because it’s a new thing we’re seeing, but it’s going to happen all over the state.

      “Now just let me add another little tweak here. Because those appointed district chairs are now going in and appointing precinct committee officers who are given full voting rights just as you had been an elected PCO. So, we have a county chair who is appointing district chairs, the district chair is appointing and filling all vacant seats, and if you don’t think that’s an organization coming out of Chicago, I don’t know what. It’s going to be that way all over the state of Washington. This is an extremely, extremely important issue. Both parties would claim to be the party of the people and the party with grass roots input, right? If I ask Democrats and I ask Republicans--absolutely, we are the party of the people, we are the grass roots party. That will not be the case. No one will be able to claim it because we’ll have big time party bosses again, as I mentioned Monday, walking these wings, telling us what to do up or down, because they control the machine that they have appointed.

      “Now, the reason that I am suggesting we concur with this amendment is not because I think this--or concur with this bill that the House has sent back--is not because I think it’s necessarily the greatest option, but it is an option that will go to the Governor’s desk. Again, if we risk--this is a game, a very high stakes game. If we send a ‘do not concur’ back to the House, we may find that this ends up in the courts and you will have just exactly what I just mentioned to you for sure. There will be no ability for legislators in the future to ever address this area of law in Washington State again, because the courts will have purview over it.

      “Again, this is a strategy issue on how to keep some finger in what’s going on. If you do not do that, then I fear that we will have party control from the top-down, not bottom-up--not bottom-up--not from the people, which many people here today, many legislators here today are saying that they really want to support. If you really want to support the people of the state of Washington, you will allow that they have an input in the parties that they choose to be beholding to. They will not have that input as long as you have somebody at the top in a county appointing district chairs who appoint people that in sixty days have full voting rights as any elected member of the party organization. I urge that we do concur for purposes of sending something to the Governor’s desk. If we want to change this method later on in another Legislature next year, we can do it. If we don’t get something on his desk, there will be no change and we will not have the Washington primary as has been spoken of here, because there will be no opportunity to have it. The parties will have what they want and they will validate the system which I have just mentioned to you and is occurring right now in King County.”


REMARKS BY SENATOR BROWN


      Senator Brown: “Thank you, Mr. President. I haven’t weighed on this issue because I’ve been working on budget negotiations, but I’d like to because I’m not sure if I’m going to have another opportunity. First of all, I agree with the last speaker in that I believe it would be a big mistake for this branch of government to give up our input over these fundamental issues, which is all about why we are here. The other branch of government that would be taking over is not the one I think that should be making the decision. I think we should be making the decision. Second, after giving it a lot of thought, neither of the systems are perfect that have been put before us. Both of them have some fairly glaring disadvantages when compared with our status quo. I will support and move to concur, and the reason why is because I care a lot about the general election.

      “The general election is the place where people make the decision that counts the most, because it’s the one that puts the man or the woman in office who is going to be making the decisions upon which the fate of our state and our country and our communities rest. I believe that the form of that election is absolutely key and that choice there matters more than anywhere else in the process. If I walked up to a fast food restaurant and was asked what I would like to drink, and I said what are my choices, and they said Coke or Pepsi, I would say that’s not enough choice. My concern is that the general election, under the opposing system that passed the Senate floor the other day, could become a Coke or Pepsi type selection process. Frankly, I think that’s what’s wrong with our political system today is that many voters are feeling that they don’t get real choices because they are getting Coke and Pepsi. That’s like two people who convey image and popularity, and not enough about substance and issues and positions and philosophies, because that’s too risky.

      “Frankly, I was appalled that more Americans knew whether Clinton wore boxers or briefs, than what his position on China was. In the general election, I want voters to have not just a couple of people to choose from, but some vigorous, intellectual positions and debates and values to choose from. In the general election, I think people should be able to choose a Libertarian. I don’t support Libertarianism. I believe that, in fact, their philosophy about individual freedom is very appealing, but their philosophy about unrestrained markets is very dangerous and could lead to concentrations of private power that can exploit people. But, I believe having that position represented on the ballot strengthens me and it strengthens the party across the aisle, because we have to debate it and we have to respond to it and we have to say why do I restrain, why am I in favor of restraining freedom in this way, but not in this way.

      “Many of the minor parties, I think, have a healthy, invigorating influence on our process, which in comparison with other countries processes, does not produce as broad a debate as I think voters would appreciate having the options to choose from. So, given that position and given how strongly I feel that the general election should not offer just two choices. Americans want more than two choices. I believe that we should vote to concur.”


REMARKS BY SENATOR WEST

 

      Senator West: “Thank you, Mr. President. I sat through the debate the other day and sat through the debate today and as the good Senator from West Seattle said, the other day the debate was incredible. It was very much like what we thought in high school and what we all imagined a deliberative body of the Senate--Legislature would be. It’s pretty remarkable and I compliment everybody here--people on all sides of the issues for that debate. There are a couple of points that have been made today and were made the other day and I sat and I listened to them. I did not come to my position on this issue, actually firm, until after the debate and that’s rare. Many times we all come to the floor knowing exactly where we’re going to end up when we come to the floor. I know some of the vote counters were a little disappointed with me from time to time when I wouldn’t--couldn’t--give them a straight answer as to which way I would default on the vote.

      “There’s a couple of points here that have been made, or a couple of statements that have made by many, many Senators that frankly left unchallenged are left to be true. And I don’t believe that they are. First of all, I find it incredibly ironic that Senators who have no opposition at all and appear on the ballot unopposed would stand up and say that they are for choice in the general election, and the choice should not be made in the primary. In fact, for a few of those Senators the choice was made at the primary and it was a very spirited race and a very spirited debate in the primary. Then, once the primary was over, the race was over because there was no opposing party candidate. It is more likely, ladies and gentlemen--it is more likely the Libertarian or Green Party could make the general election under the Cajun or the people’s choice primary, than under the current system, because the major parties will always keep them down. They may make the general election, but they’ll never get enough votes to get elected.

      “It won’t happen, because the major parties won’t let them. Where in the primary election, where you have a wide field of candidates, you can have a popular, independent candidate garner enough support that twenty percent--twenty-five percent--thirty percent, to be number two and advance. Where you may have a Republican and a Green Party on the ballot and the Democrats would swing behind the Green Party and the Green Party candidate would be elected. Or you may have a Libertarian and a Democrat on the ballot and the Republicans would swing behind the Libertarian and you would have a Libertarian elected. That is more likely under this system than under the current system or the system that the House has sent to us--more likely.

      “That argument is fallacious--to suggest that people would come to the middle and rush to the middle for popularity to see who would be more popular. It flies in the face of a memo one of the Senators from Seattle sent us the other day from this distinguished person that studies elections, who said that it’s proven with this type of primary that the Senate passed, you get no, not the middle, you get the extremes. So which is it? Do you get the extremes or do you get a marshmallow middle, because you’re arguing both sides of the argument? You can’t predict what you get. In fact, actually, you probably do get a wider sense of issues. Right now in Louisiana, there’s a Republican Governor--the first Republican Governor elected--re-elected since reconstruction. First one since reconstruction re-elected. He got elected--I don’t know if he was number one or number two in the primary four years ago. When he went to the general election, four Democrats endorsed him for election, because they disliked the candidate over the Democrat, that was on the ballot. They swung behind him. You get that kind of effect when you have a people’s choice election, where people aren’t beholden totally to the party. I know for a leader, these are dangerous words to speak, but when you aren’t totally beholden to the party, you get the people’s choice.

      “When the Senator from the Forty-fifth District got up the other day and made a speech, that was almost worthy of a Philadelphia speech of the convention--the Downing Convention--talking about the people who were sent here to serve, who we should be listening to first and foremost. We come together at caucuses, we come together as parties to strengthen each other around common principles and common sense of ideas, but when the day is done--when the day is done--our responsibility is to our constituents. I’ve got to tell you, telling my constituents that their votes don’t count in the general, their votes don’t count in the final election--that they just don’t count--I don’t think is a very good idea. I just don’t think it’s a good idea.

      “So, you know, it’s really ironic, at the very first press briefing over in the GA building this session, I can’t remember who the moderator was, but he asked about the primary, and as he was going down the line everybody was kind of saying what they thought would happen and this is the furthest thing that I could have predicted. In fact, I think I said it couldn’t happen. Senator Snyder, on the other hand, excuse me for mentioning your name sir--the good Senator from the Nineteenth District--it is legal now, isn’t it? He on the other hand said, ‘Well, I think we’re going to give a good strong look at that Louisiana thing,’ and I about fell out of my chair and said, ‘There is no way in hell we’ll ever consider it--there’s no way, forget it, it’s off the table.’





      “Well, after looking at it and hearing some misrepresentations made about it, I didn’t even know it had come into existence until 1975. I had no idea. When I heard people say, ‘Well it’s a racist system and it’s to keep the minorities down,’ I had our staff call back there and get the numbers. There is a three hundred percent increase in African-Americans in the Louisiana Legislature since they installed the system. And that was designed to keep them down? There is a huge increase in the number of women moving to the Legislature since they put the system in place. These were things contrary to what I was told. These were facts, statistical facts now, but they’re certainly not the facts that I was given when I was first presented with the issue. So, I’ve come to the conclusion that we should not concur. We should send it back to the House and we should continue to work the issue. Thank you.”


REMARKS BY SENATOR SNYDER


      Senator Snyder: “Thank you, Mr. President. There’s been another great day of debate on this subject. I don’t like either choice very much. But, we’re in a position that we have to make a choice, and we’ve had a lot of hypothetical situations about what would happen and we might have a Libertarian advance and be on with one of the major parties and the minor parties are going to be better off than before. I just want to mention reality. If the Cajun primary would have been in effect, and this was brought out the other day, in 1996, there would have been two names on the ballot for Governor in the general election--Gary Locke and Norm Rice--two Democrats. Do you think we would have some outcry from the people, if that’s going to happen in the future? You bet your life we will. And it’s going to happen in the future. Maybe two Republicans and maybe two Democrats, but let’s roll back a little further in history. In 1980, when John Spellman was elected Governor. Under the Cajun system, his name wouldn’t have even been on the ballot in the general election. There would have been two names--Dixy Lee Ray and Jim McDermott. Would you have heard an outcry from the people if that would have happened? Oh, I’ll tell you, they would have probably started heating up the tar pot and plucking a lot of feathers to plant on all the legislators that had voted for that Cajun primary. It’s a tough decision to make today, but the correct one is to concur.”


REMARKS BY SENATOR OKE


      Senator Oke: “Thank you, Mr. President, Senators. I really appreciate your comments, Senator West. They really touched me. Those were great comments to be heard on this floor about how important a vote is. Senator Snyder, I appreciate your comments, but I’m more afraid of what’s going to happen in the primary. I’m more afraid that people are going to walk away from the primary, those that should be involved and those cases you brought up, they’re true. They might have occurred, but if they occur, it will be the people’s choice. That’s what we need to do here--very simply--give the people a choice in the primary.”


REMARKS BY SENATOR REGALA


      Senator Regala: “Thank you, Mr. President. This has been a very interesting debate over the last three days, and I am standing to ask you to concur in the House amendment. I’ve heard a lot of things and I’ve made some notes down here. I will make the point that ‘no’ I don’t like either of these systems really well. I do think that the system that has come over from the House is the preferable one. I certainly don’t want to see the party’s control; I want the people to be in control. I believe that happens when there are more choices in November, because after all, November is the final decision. Now, I come from one of those districts where the choice is not between Sprite and Coke and Pepsi. I think that some people would say that the choices are between Diet Pepsi and Pepsi. Yes, Senator West, I’m one of those people who had no opposition this last time, but I do believe that once I am elected I represent all of my constituents.

      “I’ve been hearing from my constituents on this particular issue and what they have said to me is do not support the Cajun primary. We want choices in November. Because I know my constituents fairly well, I know that those messages are coming from the people in my district who are Libertarians, who are Republicans, and who are Natural Law members. They are urging me to please do not support the Cajun primary. Give us choices in November. That’s what the people want. That’s what I’m going to do, and I urge you all to concur.”


REMARKS BY SENATOR KOHL-WELLES


      Senator Kohl-Welles: “Thank you, Mr. President. I’d like to wrap things up here. In summarizing, what is in this House amendment and why we should vote to concur, the House amendment provides for private choice. They provide for an open primary; they provide for a tabulation of all votes cast; they provide for--in fact, require that the political parties promulgate by July 1 what they will do with the votes that are tabulated for the unaffiliated voters. Voters will know in advance and they will know on the primary ballot. The parties would have to live with the consequences if they were to choose not to count all votes cast--not to use all votes cast. Now, the analogies have been given about Coke and Pepsi and Sprite, and I’d like to put another cast on that. Senator Roach and I were talking last week about this and she mentioned it being like a Milky Way bar and a Nestle’s bar, both chocolates. I said, ‘Well, if we can’t have any other choice in the general election, such as jelly beans being offered, then the voters really are short-changed.’

      “Keep in mind, the average voter turnout in the primary election in this state is forty percent. The highest two vote-getters advancing by very few votes cast by the voters of Washington State. The average turnout in the general election is seventy percent, and I would expect that would fall dramatically if voters are not given choices in the general election. One more thing just to bring this home, we all know that in Seattle, Democrats win. We all know that in Eastern Washington, for the most part Republicans win, but things change and things have changed. Thirty year ago--twenty-five years ago--Seattle was Republican. It was the Republicans who represented the Seattle in the Legislature. Yet, by having the opportunity for Democrats to be on the ballot in the general election, there was full discussion of positions and gradually things changed. We need to have that opportunity. Please vote to concur in the House amendment.”


REMARKS BY SENATOR TIM SHELDON


      Senator Tim Sheldon: “Thank you. I can’t let some of those comments be made that probably weren’t challenged, because a lot of people make examples. Let’s say there is a primary election and in the state of Louisiana their average is a fifty-five percent turnout in the primary,




which is very good. But, as the Senator from Seattle mentioned, say the primary is forty percent, what will be the result of that forty percent primary? It will say that the Republican gets two hundred votes, the Democrat gets two hundred votes, and two thousand votes are not counted. That will be the result, so making sure that every vote counts is the thing that really matters in this vote today.

      “Another thing was brought up. In the 1996 election, Gary Locke, Ellen Craswell and Norm Rice were the candidates. Under the two-forward system, Gary Locke and Norm Rice would have moved forward to the general election. Well the headline was when Gary Locke won and went ahead with Ellen Craswell, guess what, he won two elections in one day. He won two elections in one day. Under this system, the people’s choice system, that would be another day and it would be another choice, but it would be two popular candidates, the most popular candidates that would have to win the vote of the people. So, vote ‘no.’ Do not concur in the House amendment. Let’s send this bill back to the House. Given time, I think the people will win.”


REMARKS BY SENATOR RASMUSSEN


      Senator Rasmussen: “Thank you, Mr. President. I just want to state what I have said earlier. If we vote to concur today, we won’t have another chance, another choice to debate to further explore this issue--to negotiate. It’s over. Now we’re a long ways from being over in this special session for what we’ve been negotiating on budgets, transportation, general fund. I would like to make sure this issue is kept open, so that we can further negotiate and further let the people know our opinions and hear from the people of our districts. If we vote to concur, it’s over, no more debate, no more negotiations, no more choice. We’ve made the final decision. I suggest to you that we not concur.”


REMARKS BY SENATOR HOCHSTATTER


      Senator Hochstatter: “Thank you, Mr. President and forgive me, I think we all wanted to try and stop this. Let me give you a line from a song that I think maybe will get us all on board. You might remember the line, Playing solitaire til dawn with a deck of fifty-one. We don’t have all the cards, do we? We don’t have all the cards. The court kept a card. They gave us a rum deck, so we have the opportunity now to disappoint all the people. I’m really sorry for us and I suspect that we’ll deal something out of here that will make us all intensely unpopular. I hope that we can all get on board and say, ‘We didn’t start this mess.’ I hope that the people can get something that pleases them. Thank you for indulging me and all the rest of us. God bless you.”


REMARKS BY SENATOR SHIN


      Senator Shin: “Thank you, Mr. President and members of the Senate. Two days ago I made a speech. I wasn’t going to say anything, but both sides have been very convincing. It’s all based upon personal rendition, academia and personal convictions. Those things notwithstanding. I mentioned two days ago, quoting David Hume who says, ‘when I say democracy is good, that means I like democracy.’ I like democracy, in this country particularly. I believe American democracy at least is the best of all so far. If you see better, let me know.

      “This nation stands for government by the people, of the people, and for the people. This is what I learned. This is what I like. Also, in trying to decide which side--both sides are very convincing. I listened to one side and I listened to the other side, but in the final analysis, the Constitution says, ‘This government is governed by consent of the governed, the people’s choice.’ I’d like to support that choice that allows the people to make the final decision, whether for the primary or for the general election. Therefore, this is my conviction. I’d like to convey this feeling to you.”

      The President declared the question before the Senate to be the motion by Senator Snyder that the Senate concur in the House amendment to Engrossed Senate Bill No. 6183.

      Senator Snyder demanded a roll call and the demand was sustained.

      The President declared the question before the Senate to be the roll call on the motion by Senator Snyder that the Senate concur in the House amendment to Engrossed Senate Bill No. 6183.


REMARKS BY SENATOR HARGROVE


      Senator Hargrove: “I just wanted to make sure that we knew what we’re voting on now. A positive vote is for Senator Snyder’s motion to concur? A negative vote is to do not concur and send it back to the House, is that correct?”


REPLY BY THE PRESIDENT


      President Owen: “That is correct.”


ROLL CALL


      The Secretary called the roll and the motion to concur in the House amendment to Engrossed Senate Bill No. 6183 failed by the following vote: Yeas, 21; Nays, 26; Absent, 0; Excused, 2.

     Voting yea: Senators Brown, Constantine, Eide, Franklin, Fraser, Horn, Jacobsen, Johnson, Kastama, Kline, Kohl-Welles, McDonald, Prentice, Regala, Roach, Rossi, Sheldon, B., Snyder, Spanel, Swecker and Thibaudeau - 21.

     Voting nay: Senators Carlson, Costa, Deccio, Finkbeiner, Gardner, Hale, Hargrove, Haugen, Hewitt, Hochstatter, Honeyford, Long, McAuliffe, McCaslin, Morton, Oke, Parlette, Patterson, Rasmussen, Sheahan, Sheldon, T., Shin, Stevens, West, Winsley and Zarelli - 26.

     Excused: Senators Benton and Fairley - 2.




MOTION


      Senator Tim Sheldon: “Thank you, Mr. President. I move that the Message on Engrossed Senate Bill No. 6183 be immediately transmitted to the House.”


PARLIAMENTARY INQUIRY


      Senator Snyder: “Mr. President, a point of parliamentary inquiry. The message to the House would be that the Senate did not concur and asks the House to recede, is that correct?”


REPLY BY THE PRESIDENT


      President Owen: “That is correct, Senator.”


MOTION


      On motion of Senator Roach, the debate on Engrossed Senate Bill No. 6183, Monday, May 14, and today will be spread upon the record of the Journal.


MOTION


      On motion of Senator Betti Sheldon, the Senate advanced to the fifth order of business.


INTRODUCTION AND FIRST READING

 

SB 6186             by Senators Prentice, Rossi, Hale, Spanel, Johnson, Horn, Patterson, B. Sheldon, Gardner, Oke, Winsley, Snyder, Constantine and West

 

AN ACT Relating to the taxation of grocery distribution cooperatives; amending RCW 82.04.270; adding a new section to chapter 82.04 RCW; creating a new section; providing an effective date; and declaring an emergency.

Referred to Committee on Ways and Means.


MOTION


      On motion of Senator Betti Sheldon, the Senate advanced to the seventh order of business.


THIRD READING


      SENATE BILL NO. 5144, by Senators Winsley, Long, Honeyford, Franklin, Carlson, Fraser and Rasmussen (by request of Joint Committee on Pension Policy)

 

Creating a supplemental actuarially reduced survivor benefit for qualified law enforcement officers' and fire fighters' retirement system plan 1 members who choose to actuarially reduce their benefits.


      The bill was read the third time.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5144.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5144 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Brown, Carlson, Constantine, Costa, Deccio, Eide, Finkbeiner, Franklin, Fraser, Gardner, Hale, Hargrove, Haugen, Hewitt, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kastama, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Parlette, Patterson, Prentice, Rasmussen, Regala, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 47.

    Excused: Senators Benton and Fairley - 2.

      SENATE BILL NO. 5144, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


THIRD READING


      ENGROSSED SUBSTITUTE SENATE BILL NO. 5237, by Senate Committee on Ways and Means (originally sponsored by Senators Rasmussen, Swecker, Sheahan, Honeyford, West, Fraser, Kastama, Regala, Hewitt, Hale, Parlette, Morton, Hochstatter and Franklin)

 

Making annual transfers of money into the fair fund.





      The bill was read the third tine.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5237.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5237 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

     Voting yea: Senators Brown, Carlson, Constantine, Costa, Deccio, Eide, Finkbeiner, Franklin, Fraser, Gardner, Hale, Hargrove, Haugen, Hewitt, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kastama, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, Morton, Oke, Parlette, Patterson, Prentice, Rasmussen, Regala, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 47.

       Absent: Senator McDonald - 1

       Excused: Senators Benton and Fairley - 2.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5237, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      At 11:50 a.m., on motion of Senator Betti Sheldon, the Senate recessed until 1:30 p.m.


      The Senate was called to order at 1:30 p.m. by President Owen.


MOTION


      On motion of Senator Betti Sheldon, the Senate reverted to the sixth order of business.


CONFIRMATION OF GUBERNATORIAL APPOINTMENTS


MOTION


      On motion of Senator Sheahan, Gubernatorial Appointment No. 9050, Kelly Behne, as a member of the Board of Trustees for Eastern Washington University, was confirmed.


APPOINTMENT OF KELLY BEHNE


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 45; Nays, 0; Absent, 3; Excused, 1.

     Voting yea: Senators Carlson, Constantine, Costa, Deccio, Eide, Fairley, Fraser, Gardner, Hale, Hargrove, Haugen, Hewitt, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kastama, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Parlette, Patterson, Prentice, Rasmussen, Regala, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 45.

     Absent: Senators Brown, Finkbeiner and Franklin - 3.

     Excused: Senator Benton - 1.


MOTION


      On motion of Senator Eide, Senator Brown was excused.


MOTION


      On motion of Senator Shin, Gubernatorial Appointment No. 9101, Parijat Nandi, as a member of the Board of Trustees for Western Washington University, was confirmed.


APPOINTMENT OF PARIJAT NANDI


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

     Voting yea: Senators Carlson, Constantine, Costa, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Hale, Hargrove, Haugen, Hewitt, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kastama, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Parlette, Patterson, Prentice, Rasmussen, Regala, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley and Zarelli - 46.

     Absent: Senator Deccio - 1.

     Excused: Senators Benton and Brown - 2.

 

MOTION


      At 1:45 p.m., on motion of Senator Betti Sheldon, the Senate was declared to be at ease.


      The Senate was called to order at 3:05 p.m. by President Owen.





THIRD READING


      SUBSTITUTE SENATE BILL NO. 6166, by Senate Committee on Ways and Means (originally sponsored by Senators Brown, Snyder, Long, Fraser, Rossi, Constantine, Spanel, B. Sheldon and Carlson)

 

Restating plan 1 of the law enforcement officers' and fire fighters' retirement system.


MOTION


      On motion of Senator Brown, the rules were suspended, Substitute Senate Bill No. 6166 was returned to second reading and read the second time.


MOTION


      Senator Brown moved that the following striking amendment be adopted:

       Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. LEGISLATIVE FINDINGS AND DECLARATION. Plan 1 of the Washington law enforcement officers' and fire fighters' retirement system (LEOFF plan 1) has been closed to new members for nearly a quarter of a century. During that time, LEOFF plan 1 has achieved full funding and has assets which exceed all projected future liabilities and has a surplus approaching one billion dollars. In recognition of the contributions of working fire fighters and police officers to LEOFF plan 1, it is the purpose of this chapter, in part, to provide for an enhanced retirement benefit to LEOFF plan 1 members.

       LEOFF plan 1 also provides substantial postretirement health and long-term care benefits. The financial burden of this benefit, which is an integral part of LEOFF plan 1, falls exclusively on the cities, counties, and fire districts that employed the retired fire fighters and police officers. In recognition of the fiscal burdens facing these political subdivisions, it is appropriate to provide an additional source of funding to ensure the integrity of the benefit without undermining the financial stability of the employing governments.

       The supreme court of the state of Washington, in the 1956 decision Bakenhus v. City of Seattle, established that the fire fighters and police officers, active and retired, have a constitutionally protected contractual right to a secure retirement benefit, funded on a sound actuarial basis. The legislature recognizes that the state of Washington is the ultimate guarantor of the LEOFF plan 1 retirement benefits. While members have a constitutionally protected right to the pension benefits that are provided as part of their contract of employment, there is no such right in surplus assets which are unnecessary to the actuarial soundness of the retirement plan.

       The state retains the inherent power to terminate a retirement plan and, upon the dedication of sufficient resources to ensure the actuarial soundness of the benefits promised, is entitled to a reversion of the surplus assets upon termination of the plan.

       The legislature has determined that, in order to accomplish the foregoing goals and objectives, it is in the best interest of the members and beneficiaries of LEOFF plan 1 that the plan be terminated and that a restated retirement plan with enhanced benefits be created. It is further determined to be in the best interest of the health, safety, and welfare of the citizens of the state that surplus assets remaining after adequate actuarial provision for the obligated retirement benefits revert to the state and be allocated for the purposes outlined in this chapter.

       It is the intent of the legislature that the LEOFF plan 1 termination be performed in accordance with the applicable provisions of the federal internal revenue code and in recognition of the contract rights of the members and beneficiaries of the plan to an actuarially sound retirement program.

       The legislature reserves the right to make such amendments and modifications as may be necessary in the future to accomplish the goals of this section, without any diminution of the rights and benefits of the LEOFF plan 1 members, retirees, and surviving spouses, as they existed prior to July 1, 2001.

       NEW SECTION. Sec. 2. TERMINATION OF LEOFF PLAN 1. Plan 1 of the Washington law enforcement officers' and fire fighters' retirement system (LEOFF plan 1) is hereby terminated. During the transition between the termination of LEOFF plan 1 and the establishment of the restated law enforcement officers' and fire fighters' retirement system, all LEOFF plan 1 benefits, as they existed prior to July 1, 2001, shall continue without interruption.

       NEW SECTION. Sec. 3. RESTATED LAW ENFORCEMENT OFFICERS' AND FIRE FIGHTERS' RETIREMENT SYSTEM ESTABLISHED. The restated law enforcement officers' and fire fighters' retirement system is hereby established as provided in this chapter. The restated law enforcement officers' and fire fighters' retirement system established by this chapter may also be referred to by statute and rule as the law enforcement officers' and fire fighters' retirement system plan 1.

       NEW SECTION. Sec. 4. RESTATED LAW ENFORCEMENT OFFICERS' AND FIRE FIGHTERS' DEFINED BENEFIT RETIREMENT FUND ESTABLISHED. (1) The restated law enforcement officers' and fire fighters' defined benefit retirement fund is created in the custody of the state treasurer. The fund shall consist of assets transferred from the Washington law enforcement officers' and fire fighters' system plan 1 retirement fund, investment earnings, and other amounts deposited to the fund. The state treasurer shall transfer to the restated defined benefit retirement fund an amount equal to the actuarial present value of the fully projected liabilities of plan 1 of the Washington law enforcement officers' and fire fighters' retirement system based on the actuarial valuation for calendar year 2000, adjusted to the transfer date, and the long-term economic assumptions in effect on July 1, 2001, under chapter 41.45 RCW. For purposes of funding the plan 1 lump-sum defined benefit created in section 6 of this act, the state treasurer shall also transfer an amount to the restated defined benefit retirement fund equal to twelve percent of the assets in the Washington law enforcement officers' and fire fighters' system plan 1 retirement fund in excess of the actuarial present value of the fully projected liabilities of plan 1, as calculated under this subsection.

       (2) The pension funding council shall conduct an independent audit of the calculation of the present value amount determined by the state actuary. The transfer of these assets to the restated defined benefit retirement fund shall occur as soon as practical after July 1, 2001. The remaining assets in the law enforcement officers' and fire fighters' system plan 1 retirement fund shall be invested in the same manner as the restated defined benefit retirement fund until the transfers occur under sections 5 and 8 of this act.

       (3) Expenditures from the restated law enforcement officers' and fire fighters' defined benefit retirement fund may be used only for the purposes of this chapter. Only the director of retirement systems or the director's designee may authorize expenditures from the fund. No appropriation is required for expenditures.

       NEW SECTION. Sec. 5. STATE SURPLUS ASSETS RESERVE FUND ESTABLISHED. (1) The state surplus assets reserve fund is created in the state treasury. By June 1, 2002, the state surplus assets reserve fund shall receive all assets of the Washington law enforcement officers' and fire fighters' system plan 1 retirement fund remaining after (a) the distributions to the restated law enforcement officers' and fire fighters' defined benefit retirement fund required by section 4 of this act; and (b) the distribution to the law enforcement officers' and fire fighters' medical benefits risk pool under section 8 of this act and chapter 41.--- RCW (sections 301 through 310 of this act).

       (2) Sufficient assets shall be maintained in the state surplus assets reserve fund at all times to ensure the actuarial soundness of the defined benefits of the restated law enforcement officers' and fire fighters' defined benefit retirement plan without the necessity of further employee or employer contributions. Any actuarial shortfall in the defined benefit plan shall be offset first from the assets of the state surplus assets reserve fund. The state investment board shall develop an investment policy, taking into account the purposes of the reserve fund and the preservation of capital, for the purpose of accomplishing the objective of this section.

       (3) The office of the state actuary shall perform an annual actuarial valuation of the restated law enforcement officers' and fire fighters' defined benefit plan to determine its continued actuarial soundness. Such sums shall be transferred by the legislature from the state surplus assets reserve fund as may be necessary from time to time to maintain the actuarial soundness of the defined benefit plan.

       (4) The remaining assets of the reserve fund shall be retained as a budget reserve subject to the actuarial needs of the restated law enforcement officers' and fire fighters' defined benefit plan. No appropriation shall be made from the reserve fund for any fiscal year unless the office of the state actuary has certified that the restated law enforcement officers' and fire fighters' defined benefit plan remains fully funded on a sound actuarial basis. No appropriation shall be made from the reserve fund that would reduce the fund balance below two hundred twenty million dollars unless the state actuary has certified that the defined benefit plan assets are greater than one hundred twenty-five percent of the present value of the fully projected liabilities of the defined benefit plan.






       NEW SECTION. Sec. 6. LUMP-SUM DEFINED BENEFIT. (1) The amount equal to twelve percent of the excess assets of the Washington law enforcement officers' and fire fighters' system plan 1 retirement fund transferred to the restated defined benefit retirement fund by section 4 of this act shall fund the plan 1 lump-sum defined benefit created by this section.

       (2) Law enforcement officers' and fire fighters' plan 1 active members, term-vested members, retirees, and spousal survivors eligible for benefits under sections 226, 227, and 228 of this act shall be eligible to receive the plan 1 lump-sum defined benefit pursuant to the conditions established in this section. All assets identified in subsection (1) of this section shall be allocated to the eligible recipients of the plan 1 lump-sum defined benefit. The allocation to each eligible recipient shall be based on the number of months of service credit earned under chapter 41.26 RCW through June 30, 2000, in proportion to the total months of such service credit earned by all eligible recipients. The allocations for eligible recipients who are spousal survivors shall be based on the number of months of such service credit earned by the deceased member. This allocation shall occur on the date of the transfer of assets to the restated defined benefit retirement fund in section 4 of this act.

       (3) If a member is active or term-vested, interest as determined by the director shall accumulate from the date the lump-sum defined benefit is allocated until distribution to the participant upon retirement from service or for disability. For the purposes of this section, a term-vested member is a member who has rendered five years of service, has not withdrawn his or her member contributions, and who has not applied for retirement.

       (4) The lump-sum defined benefit shall be paid to a retiree or eligible spousal survivor upon application to the department; however no interest shall accumulate on the benefits allocated to retirees or spousal survivors.

       (5) If a member dies before distribution of the lump-sum benefit created in this section occurs, the distribution shall be made according to the member's designation in section 216 of this act.

       (6) The lump-sum benefit created in this section is subject to the provisions of section 209 of this act.

       (7) If this section is held to be invalid, by section 503 of this act or otherwise, recipients of the lump-sum benefit provided by this section shall no longer be entitled to this benefit and shall be required to return any funds received according to the provisions of RCW 41.50.135, 41.50.136, 41.50.137, and 41.50.138.

       NEW SECTION. Sec. 7. INVESTMENT OF FUNDS. (1) The state investment board has the full power to invest, reinvest, manage, contract, sell, or exchange investment money in (a) the restated law enforcement officers' and fire fighters' defined benefit retirement fund, (b) the law enforcement officers' and fire fighters' medical benefits risk pool account, and (c) the state surplus assets reserve fund. All investment and operating costs of the state investment board and the state treasurer associated with these funds shall be paid under RCW 43.08.190, 43.33A.160, 43.79A.040, and 43.84.160. With the exception of these expenses, the earnings from the investment of the funds shall be retained by the funds.

       (2) All investments made by the state investment board shall be made with the exercise of that degree of judgment and care under RCW 43.33A.140 and the investment policy established by the state investment board.

       (3) As deemed appropriate by the state investment board, money in the funds may be commingled for investment with other funds under the investment authority of the board.

       NEW SECTION. Sec. 8. TRANSFER TO LEOFF MEDICAL BENEFITS RISK POOL. By June 1, 2002, the state treasurer shall transfer from the Washington law enforcement officers' and fire fighters' system plan 1 retirement fund to the law enforcement officers' and fire fighters' medical benefits risk pool account under chapter 41.--- RCW (sections 301 through 310 of this act) an amount equal to the transfer to the restated law enforcement officers' and fire fighters' defined benefit fund made for purposes of funding the plan 1 lump-sum defined benefit required by section 6 of this act. The distribution shall be for the exclusive purposes of chapter 41.--- RCW (sections 301 through 310 of this act).

       NEW SECTION. Sec. 9. STATUTE OF LIMITATIONS. Any claim filed challenging the validity of sections 1 through 8 of this act not filed before July 1, 2002, is forever barred, if not already barred by an otherwise applicable statute of limitations. By December 31, 2001, the department of retirement systems shall send notification of the provisions of sections 1 through 9 of this act, by first class mail, to the last known address of each plan 1 active member, retiree, and spousal survivor.


PART I

AMENDMENTS TO CHAPTER 41.26 RCW


       Sec. 101. RCW 41.26.010 and 1969 ex.s. c 209 s 1 are each amended to read as follows:

       This chapter shall be known and cited as the "Washington Law Enforcement Officers' and Fire Fighters' Retirement System--Plan 2 Act".

       Sec. 102. RCW 41.26.030 and 1996 c 178 s 11 and 1996 c 38 s 2 are each reenacted and amended to read as follows:

       As used in this chapter, unless a different meaning is plainly required by the context:

       (1) "Retirement system" means the "Washington law enforcement officers' and fire fighters' retirement system plan 2" provided herein.

       (2)(((a) "Employer" for plan 1 members, means the legislative authority of any city, town, county, or district or the elected officials of any municipal corporation that employs any law enforcement officer and/or fire fighter, any authorized association of such municipalities, and, except for the purposes of RCW 41.26.150, any labor guild, association, or organization, which represents the fire fighters or law enforcement officers of at least seven cities of over 20,000 population and the membership of each local lodge or division of which is composed of at least sixty percent law enforcement officers or fire fighters as defined in this chapter.

       (b))) "Employer" ((for plan 2 members,)) means the following entities to the extent that the entity employs any law enforcement officer and/or fire fighter:

       (((i))) (a) The legislative authority of any city, town, county, or district;

       (((ii))) (b) The elected officials of any municipal corporation;

       (((iii))) (c) The governing body of any other general authority law enforcement agency; or

       (((iv))) (d) A four-year institution of higher education having a fully operational fire department as of January 1, 1996.

       (3) "Law enforcement officer" beginning January 1, 1994, means any person who is commissioned and employed by an employer on a full time, fully compensated basis to enforce the criminal laws of the state of Washington generally, with the following qualifications:

       (a) No person who is serving in a position that is basically clerical or secretarial in nature, and who is not commissioned shall be considered a law enforcement officer;

       (b) Only those deputy sheriffs, including those serving under a different title pursuant to county charter, who have successfully completed a civil service examination for deputy sheriff or the equivalent position, where a different title is used, and those persons serving in unclassified positions authorized by RCW 41.14.070 except a private secretary will be considered law enforcement officers;

       (c) Only such full time commissioned law enforcement personnel as have been appointed to offices, positions, or ranks in the police department which have been specifically created or otherwise expressly provided for and designated by city charter provision or by ordinance enacted by the legislative body of the city shall be considered city police officers;

       (d) ((The term "law enforcement officer" also includes the executive secretary of a labor guild, association or organization (which is an employer under RCW 41.26.030(2)) if that individual has five years previous membership in the retirement system established in chapter 41.20 RCW. The provisions of this subsection (3)(d) shall not apply to plan 2 members; and

       (e))) The term "law enforcement officer" also includes a person employed on or after January 1, 1993, as a public safety officer or director of public safety, so long as the job duties substantially involve only either police or fire duties, or both, and no other duties in a city or town with a population of less than ten thousand. The provisions of this subsection (3)(((e))) (d) shall not apply to any public safety officer or director of public safety who is receiving a retirement allowance under this chapter as of May 12, 1993.

       (4) "Fire fighter" means:

       (a) Any person who is serving on a full time, fully compensated basis as a member of a fire department of an employer and who is serving in a position which requires passing a civil service examination for fire fighter, and who is actively employed as such;

       (b) Anyone who is actively employed as a full time fire fighter where the fire department does not have a civil service examination;








       (c) Supervisory fire fighter personnel; and

       (d) ((Any full time executive secretary of an association of fire protection districts authorized under RCW 52.12.031. The provisions of this subsection (4)(d) shall not apply to plan 2 members;

       (e) The executive secretary of a labor guild, association or organization (which is an employer under RCW 41.26.030(2) as now or hereafter amended), if such individual has five years previous membership in a retirement system established in chapter 41.16 or 41.18 RCW. The provisions of this subsection (4)(e) shall not apply to plan 2 members;

       (f))) Any person who is serving on a full time, fully compensated basis for an employer, as a fire dispatcher, in a department in which, on March 1, 1970, a dispatcher was required to have passed a civil service examination for fire fighter((; and

       (g) Any person who on March 1, 1970, was employed on a full time, fully compensated basis by an employer, and who on May 21, 1971, was making retirement contributions under the provisions of chapter 41.16 or 41.18 RCW)).

       (5) "Department" means the department of retirement systems created in chapter 41.50 RCW.

       (6) "Surviving spouse" means the surviving widow or widower of a member. (("Surviving spouse" shall not include the divorced spouse of a member except as provided in RCW 41.26.162.))

       (7)(a) "Child" or "children" means an unmarried person who is under the age of eighteen or mentally or physically handicapped as determined by the department, except a handicapped person in the full time care of a state institution, who is:

       (i) A natural born child;

       (ii) A stepchild where that relationship was in existence prior to the date benefits are payable under this chapter;

       (iii) A posthumous child;

       (iv) A child legally adopted or made a legal ward of a member prior to the date benefits are payable under this chapter; or

       (v) An illegitimate child legitimized prior to the date any benefits are payable under this chapter.

       (b) A person shall also be deemed to be a child up to and including the age of twenty years and eleven months while attending any high school, college, or vocational or other educational institution accredited, licensed, or approved by the state, in which it is located, including the summer vacation months and all other normal and regular vacation periods at the particular educational institution after which the child returns to school.

       (8) "Member" means any fire fighter, law enforcement officer, or other person as would apply under subsection((s)) (3) or (4) of this section ((whose membership is transferred to the Washington law enforcement officers' and fire fighters' retirement system on or after March 1, 1970, and every law enforcement officer and fire fighter)) who is employed in that capacity on or after ((such date)) October 1, 1977.

       (9) "Retirement fund" means the "Washington law enforcement officers' and fire fighters' ((retirement)) system plan 2 retirement fund" as provided for ((herein)) in RCW 41.50.075.

       (10) "Employee" means any law enforcement officer or fire fighter as defined in subsections (3) and (4) of this section.

       (11)(((a) "Beneficiary" for plan 1 members, means any person in receipt of a retirement allowance, disability allowance, death benefit, or any other benefit described herein.

       (b))) "Beneficiary" ((for plan 2 members,)) means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.

       (12)(((a) "Final average salary" for plan 1 members, means (i) for a member holding the same position or rank for a minimum of twelve months preceding the date of retirement, the basic salary attached to such same position or rank at time of retirement; (ii) for any other member, including a civil service member who has not served a minimum of twelve months in the same position or rank preceding the date of retirement, the average of the greatest basic salaries payable to such member during any consecutive twenty-four month period within such member's last ten years of service for which service credit is allowed, computed by dividing the total basic salaries payable to such member during the selected twenty-four month period by twenty-four; (iii) in the case of disability of any member, the basic salary payable to such member at the time of disability retirement; (iv) in the case of a member who hereafter vests pursuant to RCW 41.26.090, the basic salary payable to such member at the time of vesting.

       (b))) "Final average salary" ((for plan 2 members,)) means the monthly average of the member's basic salary for the highest consecutive sixty service credit months of service prior to such member's retirement, termination, or death. Periods constituting authorized unpaid leaves of absence may not be used in the calculation of final average salary.

       (13)(((a) "Basic salary" for plan 1 members, means the basic monthly rate of salary or wages, including longevity pay but not including overtime earnings or special salary or wages, upon which pension or retirement benefits will be computed and upon which employer contributions and salary deductions will be based.

       (b))) "Basic salary" ((for plan 2 members,)) means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States Internal Revenue Code, but shall exclude lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay. In any year in which a member serves in the legislature the member shall have the option of having such member's basic salary be the greater of:

       (((i))) (a) The basic salary the member would have received had such member not served in the legislature; or

       (((ii))) (b) Such member's actual basic salary received for nonlegislative public employment and legislative service combined. Any additional contributions to the retirement system required because basic salary under (((b)(i))) (a) of this subsection is greater than basic salary under (b)(((ii))) of this subsection shall be paid by the member for both member and employer contributions.

       (14)(((a) "Service" for plan 1 members, means all periods of employment for an employer as a fire fighter or law enforcement officer, for which compensation is paid, together with periods of suspension not exceeding thirty days in duration. For the purposes of this chapter service shall also include service in the armed forces of the United States as provided in RCW 41.26.190. Credit shall be allowed for all service credit months of service rendered by a member from and after the member's initial commencement of employment as a fire fighter or law enforcement officer, during which the member worked for seventy or more hours, or was on disability leave or disability retirement. Only service credit months of service shall be counted in the computation of any retirement allowance or other benefit provided for in this chapter.

       (i) For members retiring after May 21, 1971 who were employed under the coverage of a prior pension act before March 1, 1970, "service" shall also include (A) such military service not exceeding five years as was creditable to the member as of March 1, 1970, under the member's particular prior pension act, and (B) such other periods of service as were then creditable to a particular member under the provisions of RCW 41.18.165, 41.20.160 or 41.20.170. However, in no event shall credit be allowed for any service rendered prior to March 1, 1970, where the member at the time of rendition of such service was employed in a position covered by a prior pension act, unless such service, at the time credit is claimed therefor, is also creditable under the provisions of such prior act.

       (ii) A member who is employed by two employers at the same time shall only be credited with service to one such employer for any month during which the member rendered such dual service.

       (b))) "Service" ((for plan 2 members,)) means periods of employment by a member for one or more employers for which basic salary is earned for ninety or more hours per calendar month which shall constitute a service credit month. Periods of employment by a member for one or more employers for which basic salary is earned for at least seventy hours but less than ninety hours per calendar month shall constitute one-half service credit month. Periods of employment by a member for one or more employers for which basic salary is earned for less than seventy hours shall constitute a one-quarter service credit month.

       Members of the retirement system who are elected or appointed to a state elective position may elect to continue to be members of this retirement system.

       Service credit years of service shall be determined by dividing the total number of service credit months of service by twelve. Any fraction of a service credit year of service as so determined shall be taken into account in the computation of such retirement allowance or benefits.

       If a member receives basic salary from two or more employers during any calendar month, the individual shall receive one service credit month's service credit during any calendar month in which multiple service for ninety or more hours is rendered; or one-half service credit month's service credit during any calendar month in which multiple service for at least seventy hours but less than ninety hours is rendered; or one-quarter service credit month during any calendar month in which multiple service for less than seventy hours is rendered.






       (15) "Accumulated contributions" means the employee's contributions made by a member, including any amount paid under RCW 41.50.165(2), plus accrued interest credited thereon.

       (16) "Actuarial reserve" means a method of financing a pension or retirement plan wherein reserves are accumulated as the liabilities for benefit payments are incurred in order that sufficient funds will be available on the date of retirement of each member to pay the member's future benefits during the period of retirement.

       (17) "Actuarial valuation" means a mathematical determination of the financial condition of a retirement plan. It includes the computation of the present monetary value of benefits payable to present members, and the present monetary value of future employer and employee contributions, giving effect to mortality among active and retired members and also to the rates of disability, retirement, withdrawal from service, salary and interest earned on investments.

       (18) (("Disability board" for plan 1 members means either the county disability board or the city disability board established in RCW 41.26.110.

       (19) "Disability leave" means the period of six months or any portion thereof during which a member is on leave at an allowance equal to the member's full salary prior to the commencement of disability retirement. The definition contained in this subsection shall apply only to plan 1 members.

       (20) "Disability retirement" for plan 1 members, means the period following termination of a member's disability leave, during which the member is in receipt of a disability retirement allowance.

       (21))) "Position" means the employment held at any particular time, which may or may not be the same as civil service rank.

       (((22) "Medical services" for plan 1 members, shall include the following as minimum services to be provided. Reasonable charges for these services shall be paid in accordance with RCW 41.26.150.

       (a) Hospital expenses: These are the charges made by a hospital, in its own behalf, for

       (i) Board and room not to exceed semiprivate room rate unless private room is required by the attending physician due to the condition of the patient.

       (ii) Necessary hospital services, other than board and room, furnished by the hospital.

       (b) Other medical expenses: The following charges are considered "other medical expenses", provided that they have not been considered as "hospital expenses".

       (i) The fees of the following:

       (A) A physician or surgeon licensed under the provisions of chapter 18.71 RCW;

       (B) An osteopathic physician and surgeon licensed under the provisions of chapter 18.57 RCW;

       (C) A chiropractor licensed under the provisions of chapter 18.25 RCW.

       (ii) The charges of a registered graduate nurse other than a nurse who ordinarily resides in the member's home, or is a member of the family of either the member or the member's spouse.

       (iii) The charges for the following medical services and supplies:

       (A) Drugs and medicines upon a physician's prescription;

       (B) Diagnostic x-ray and laboratory examinations;

       (C) X-ray, radium, and radioactive isotopes therapy;

       (D) Anesthesia and oxygen;

       (E) Rental of iron lung and other durable medical and surgical equipment;

       (F) Artificial limbs and eyes, and casts, splints, and trusses;

       (G) Professional ambulance service when used to transport the member to or from a hospital when injured by an accident or stricken by a disease;

       (H) Dental charges incurred by a member who sustains an accidental injury to his or her teeth and who commences treatment by a legally licensed dentist within ninety days after the accident;

       (I) Nursing home confinement or hospital extended care facility;

       (J) Physical therapy by a registered physical therapist;

       (K) Blood transfusions, including the cost of blood and blood plasma not replaced by voluntary donors;

       (L) An optometrist licensed under the provisions of chapter 18.53 RCW.

       (23))) (19) "Regular interest" means such rate as the director may determine.

       (((24))) (20) "Retiree" ((for persons who establish membership in the retirement system on or after October 1, 1977,)) means any member in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by such member.

       (((25))) (21) "Director" means the director of the department.

       (((26))) (22) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

       (((27))) (23) "State elective position" means any position held by any person elected or appointed to statewide office or elected or appointed as a member of the legislature.

       (((28))) (24) "Plan 1" means the law enforcement officers' and fire fighters' retirement system, plan 1 providing the benefits and funding provisions covering persons who first became members of the system prior to October 1, 1977, which plan was terminated effective July 1, 2001, and members transferred to the retirement system established by chapter 41.26A RCW.

       (((29))) (25) "Plan 2" means the law enforcement officers' and fire fighters' retirement system, plan 2 providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977.

       (((30))) (26) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve.

       (((31))) (27) "Service credit month" means a full service credit month or an accumulation of partial service credit months that are equal to one.

       (((32))) (28) "General authority law enforcement agency" means any agency, department, or division of a municipal corporation, political subdivision, or other unit of local government of this state, and any agency, department, or division of state government, having as its primary function the detection and apprehension of persons committing infractions or violating the traffic or criminal laws in general, but not including the Washington state patrol. Such an agency, department, or division is distinguished from a limited authority law enforcement agency having as one of its functions the apprehension or detection of persons committing infractions or violating the traffic or criminal laws relating to limited subject areas, including but not limited to, the state departments of natural resources, fish and wildlife, and social and health services, the state gambling commission, the state lottery commission, the state parks and recreation commission, the state utilities and transportation commission, the state liquor control board, and the state department of corrections.

       Sec. 103. RCW 41.26.040 and 1991 c 35 s 15 are each amended to read as follows:

       The Washington law enforcement officers' and fire fighters' retirement system plan 2 is hereby created for fire fighters and law enforcement officers.

       (1) ((Notwithstanding RCW 41.26.030(8),)) All fire fighters and law enforcement officers employed as such on or after ((March 1, 1970)) October 1, 1977, 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.

       (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 statewide 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))) 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.

       Sec. 104. RCW 41.26.061 and 1997 c 103 s 1 are each amended to read as follows:

       A member shall not receive a disability retirement benefit under RCW ((41.26.120, 41.26.125, 41.26.130, or)) 41.26.470 if the disability is the result of criminal conduct by the member committed after April 21, 1997.


PART II

CHAPTER 41.26A RCW: RESTATED LEOFF RETIREMENT SYSTEM


       NEW SECTION. Sec. 201. APPLICATION OF CHAPTER. This chapter applies to members of the restated law enforcement officers' and fire fighters' retirement system. Membership in the system is limited to those persons who were members of plan 1 of the law enforcement officers' and fire fighters' retirement system under chapter 41.26 RCW prior to July 1, 2001.

       NEW SECTION. Sec. 202. DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

       (1) "Retirement system" means the restated law enforcement officers' and fire fighters' retirement system.

       (2) "Employer" means the legislative authority of any city, town, county, or district or the elected officials of any municipal corporation that employs any law enforcement officer and/or fire fighter, any authorized association of such municipalities, and, except for the purposes of section 225 of this act, any labor guild, association, or organization, which represents the fire fighters or law enforcement officers of at least seven cities of over twenty thousand population and the membership of each local lodge or division of which is composed of at least sixty percent law enforcement officers or fire fighters as defined in this chapter.

       (3) "Law enforcement officer" beginning January 1, 1994, means any person who is commissioned and employed by an employer on a full-time, fully compensated basis to enforce the criminal laws of the state of Washington generally, with the following qualifications:

       (a) No person who is serving in a position that is basically clerical or secretarial in nature, and who is not commissioned shall be considered a law enforcement officer;

       (b) Only those deputy sheriffs, including those serving under a different title pursuant to county charter, who have successfully completed a civil service examination for deputy sheriff or the equivalent position, where a different title is used, and those persons serving in unclassified positions authorized by RCW 41.14.070 except a private secretary will be considered law enforcement officers;

       (c) Only such full-time commissioned law enforcement personnel as have been appointed to offices, positions, or ranks in the police department which have been specifically created or otherwise expressly provided for and designated by city charter provision or by ordinance enacted by the legislative body of the city shall be considered city police officers;

       (d) The term "law enforcement officer" also includes the executive secretary of a labor guild, association, or organization (which is an employer under this section) if that individual has five years previous membership in the retirement system established in chapter 41.20 RCW; and

       (e) The term "law enforcement officer" also includes a person employed on or after January 1, 1993, as a public safety officer or director of public safety, so long as the job duties substantially involve only either police or fire duties, or both, and no other duties in a city or town with a population of less than ten thousand. The provisions of this subsection (3)(e) shall not apply to any public safety officer or director of public safety who is receiving a retirement allowance under this chapter as of May 12, 1993.

       (4) "Fire fighter" means:

       (a) Any person who is serving on a full-time, fully compensated basis as a member of a fire department of an employer and who is serving in a position which requires passing a civil service examination for fire fighter, and who is actively employed as such;

       (b) Anyone who is actively employed as a full-time fire fighter where the fire department does not have a civil service examination;

       (c) Supervisory fire fighter personnel;

       (d) Any full-time executive secretary of an association of fire protection districts authorized under RCW 52.12.031;

       (e) The executive secretary of a labor guild, association, or organization (which is an employer under this section), if such individual has five years previous membership in a retirement system established in chapter 41.16 or 41.18 RCW;

       (f) Any person who is serving on a full-time, fully compensated basis for an employer, as a fire dispatcher, in a department in which, on March 1, 1970, a dispatcher was required to have passed a civil service examination for fire fighter; and

       (g) Any person who on March 1, 1970, was employed on a full-time, fully compensated basis by an employer, and who on May 21, 1971, was making retirement contributions under the provisions of chapter 41.16 or 41.18 RCW.

       (5) "Department" means the department of retirement systems created in chapter 41.50 RCW.

       (6) "Surviving spouse" means the surviving widow or widower of a member. "Surviving spouse" shall not include the divorced spouse of a member except as provided in section 228 of this act.

       (7)(a) "Child" or "children" means an unmarried person who is under the age of eighteen or mentally or physically handicapped as determined by the department, except a handicapped person in the full-time care of a state institution, who is:

       (i) A natural born child;

       (ii) A stepchild where that relationship was in existence prior to the date benefits are payable under this chapter;

       (iii) A posthumous child;

       (iv) A child legally adopted or made a legal ward of a member prior to the date benefits are payable under this chapter; or

       (v) An illegitimate child legitimized prior to the date any benefits are payable under this chapter.

       (b) A person shall also be deemed to be a child up to and including the age of twenty years and eleven months while attending any high school, college, or vocational or other educational institution accredited, licensed, or approved by the state, in which it is located, including the summer vacation months and all other normal and regular vacation periods at the particular educational institution after which the child returns to school.

       (8) "Member" means any fire fighter, law enforcement officer, or other person as would apply under subsection (3) or (4) of this section whose membership is transferred to the Washington law enforcement officers' and fire fighters' retirement system on or after March 1, 1970, and every law enforcement officer and fire fighter who is employed in that capacity on or after such date.

       (9) "Retirement fund" means the restated law enforcement officers' and fire fighters' defined benefit retirement fund.

       (10) "Employee" means any law enforcement officer or fire fighter as defined in subsections (3) and (4) of this section.

       (11) "Beneficiary" means any person in receipt of a retirement allowance, disability allowance, death benefit, or any other benefit described herein.

       (12) "Final average salary" means (a) for a member holding the same position or rank for a minimum of twelve months preceding the date of retirement, the basic salary attached to such same position or rank at time of retirement; (b) for any other member, including a civil service member who has not served a minimum of twelve months in the same position or rank preceding the date of retirement, the average of the greatest basic salaries payable to such member during any consecutive twenty-four month period within such member's last ten years of service for which service credit is allowed, computed by dividing the total basic salaries payable to such member during the selected twenty-four month period by twenty-four; (c) in the case of disability of any member, the basic salary payable to such member at the time of disability retirement; (d) in the case of a member who hereafter vests pursuant to section 216 of this act, the basic salary payable to such member at the time of vesting.

       (13) "Basic salary" means the basic monthly rate of salary or wages, including longevity pay but not including overtime earnings or special salary or wages, upon which pension or retirement benefits will be computed and upon which employer contributions and salary deductions will be based.







       (14) "Service" means all periods of employment for an employer as a fire fighter or law enforcement officer, for which compensation is paid, together with periods of suspension not exceeding thirty days in duration. For the purposes of this chapter service also includes service in the armed forces of the United States as provided in section 230 of this act. Credit shall be allowed for all service credit months of service rendered by a member from and after the member's initial commencement of employment as a fire fighter or law enforcement officer, during which the member worked for seventy or more hours, or was on disability leave or disability retirement. Only service credit months of service shall be counted in the computation of any retirement allowance or other benefit provided for in this chapter.

       (a) For members retiring after May 21, 1971, who were employed under the coverage of a prior pension act before March 1, 1970, "service" also includes (i) such military service not exceeding five years as was creditable to the member as of March 1, 1970, under the member's particular prior pension act, and (ii) such other periods of service as were then creditable to a particular member under the provisions of RCW 41.18.165, 41.20.160 or 41.20.170. However, in no event shall credit be allowed for any service rendered prior to March 1, 1970, where the member at the time of rendition of such service was employed in a position covered by a prior pension act, unless such service, at the time credit is claimed therefor, is also creditable under the provisions of such prior act.

       (b) A member who is employed by two employers at the same time shall only be credited with service to one such employer for any month during which the member rendered such dual service.

       (15) "Accumulated contributions" means the employee's contributions made by a member, including any amount paid under RCW 41.50.165(2), plus accrued interest credited thereon.

       (16) "Actuarial reserve" means a method of financing a pension or retirement plan wherein reserves are accumulated as the liabilities for benefit payments are incurred in order that sufficient funds will be available on the date of retirement of each member to pay the member's future benefits during the period of retirement.

       (17) "Actuarial valuation" means a mathematical determination of the financial condition of a retirement plan. It includes the computation of the present monetary value of benefits payable to present members, and the present monetary value of future employer and employee contributions, giving effect to mortality among active and retired members and also to the rates of disability, retirement, withdrawal from service, salary and interest earned on investments.

       (18) "Disability board" means either the county disability board or the city disability board established in section 218 of this act.

       (19) "Disability leave" means the period of six months or any portion thereof during which a member is on leave at an allowance equal to the member's full salary prior to the commencement of disability retirement.

       (20) "Disability retirement" means the period following termination of a member's disability leave, during which the member is in receipt of a disability retirement allowance.

       (21) "Position" means the employment held at any particular time, which may or may not be the same as civil service rank.

       (22) "Medical services" include the following as minimum services to be provided. Reasonable charges for these services shall be paid in accordance with section 225 of this act.

       (a) Hospital expenses: These are the charges made by a hospital, in its own behalf, for:

       (i) Board and room not to exceed semiprivate room rate unless private room is required by the attending physician due to the condition of the patient.

       (ii) Necessary hospital services, other than board and room, furnished by the hospital.

       (b) Other medical expenses: The following charges are considered "other medical expenses," provided that they have not been considered as "hospital expenses."

       (i) The fees of the following:

       (A) A physician or surgeon licensed under the provisions of chapter 18.71 RCW;

       (B) An osteopathic physician and surgeon licensed under the provisions of chapter 18.57 RCW;

       (C) A chiropractor licensed under the provisions of chapter 18.25 RCW.

       (ii) The charges of a registered graduate nurse other than a nurse who ordinarily resides in the member's home, or is a member of the family of either the member or the member's spouse.

       (iii) The charges for the following medical services and supplies:

       (A) Drugs and medicines upon a physician's prescription;

       (B) Diagnostic x-ray and laboratory examinations;

       (C) X-ray, radium, and radioactive isotopes therapy;

       (D) Anesthesia and oxygen;

       (E) Rental of iron lung and other durable medical and surgical equipment;

       (F) Artificial limbs and eyes, and casts, splints, and trusses;

       (G) Professional ambulance service when used to transport the member to or from a hospital when injured by an accident or stricken by a disease;

       (H) Dental charges incurred by a member who sustains an accidental injury to his or her teeth and who commences treatment by a legally licensed dentist within ninety days after the accident;

       (I) Nursing home confinement or hospital extended care facility;

       (J) Physical therapy by a registered physical therapist;

       (K) Blood transfusions, including the cost of blood and blood plasma not replaced by voluntary donors;

       (L) An optometrist licensed under the provisions of chapter 18.53 RCW.

       (23) "Regular interest" means such rate as the director may determine.

       (24) "Director" means the director of the department.

       (25) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

       (26) "State elective position" means any position held by any person elected or appointed to statewide office or elected or appointed as a member of the legislature.

       (27) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve.

       (28) "Service credit month" means a full service credit month or an accumulation of partial service credit months that are equal to one.

       (29) "General authority law enforcement agency" means any agency, department, or division of a municipal corporation, political subdivision, or other unit of local government of this state, and any agency, department, or division of state government, having as its primary function the detection and apprehension of persons committing infractions or violating the traffic or criminal laws in general, but not including the Washington state patrol. Such an agency, department, or division is distinguished from a limited authority law enforcement agency having as one of its functions the apprehension or detection of persons committing infractions or violating the traffic or criminal laws relating to limited subject areas, including but not limited to, the state departments of natural resources, fish and wildlife, and social and health services, the state gambling commission, the state lottery commission, the state parks and recreation commission, the state utilities and transportation commission, the state liquor control board, and the state department of corrections.

       NEW SECTION. Sec. 203. SYSTEM CREATED--MEMBERSHIP--FUNDS. The restated law enforcement officers' and fire fighters' retirement system is hereby created for fire fighters and law enforcement officers.

       (1) Notwithstanding section 202(8) of this act, 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.

       (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 or her 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 or her retirement benefits earned under this chapter shall be computed and paid. In addition, his or her benefits under the prior retirement act to which he or she was making contributions at the time of this transfer shall be computed as if he or she 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 statewide city employees' retirement system, payment of such excess shall be made by the employer which was the member's employer when his or her 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 or her transfer of membership occurred.

       (3) 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.

       NEW SECTION. Sec. 204. "MINIMUM MEDICAL AND HEALTH STANDARDS" DEFINED. The term "minimum medical and health standards" means minimum medical and health standards adopted by the department under this chapter.

       NEW SECTION. Sec. 205. MINIMUM MEDICAL AND HEALTH STANDARDS. Notwithstanding any other provision of law after February 19, 1974, no law enforcement officer or fire fighter, may become eligible for coverage in the pension system established by this chapter until the individual has met and has been certified as having met minimum medical and health standards: PROVIDED, That an elected sheriff or an appointed chief of police or fire chief, shall not be required to meet the age standard: PROVIDED FURTHER, That in cities and towns having not more than two law enforcement officers and/or not more than two fire fighters and if one or more of such persons do not meet the minimum medical and health standards as required by the provisions of this chapter, then such person or persons may join any other pension system that the city has available for its other employees: AND PROVIDED FURTHER, That for one year after February 19, 1974, any such medical or health standard now existing or hereinafter adopted, insofar as it establishes a maximum age beyond which an applicant is to be deemed ineligible for coverage, shall be waived as to any applicant for employment or reemployment who is otherwise eligible except for his or her age, who has been a member of any one or more of the retirement systems created by chapter 41.20 RCW and who has restored all contributions which he or she has previously withdrawn from any such system or systems.

       NEW SECTION. Sec. 206. MINIMUM MEDICAL AND HEALTH STANDARDS--BOARD TO ADOPT--PUBLICATION AND DISTRIBUTION--EMPLOYER CERTIFICATION PROCEDURES. The department shall adopt minimum medical and health standards for membership coverage into the retirement system. In adopting such standards the department shall consider existing standards recommended by the international association of chiefs of police and the international association of fire fighters, and shall adopt equal or higher standards, together with appropriate standards and procedures to ensure uniform compliance with this chapter. The standards when adopted shall be published and distributed to each employer, and each employer shall adopt certification procedures and such other procedures as are required to ensure that no law enforcement officer or fire fighter receives membership coverage unless and until he or she has actually met minimum medical and health standards: PROVIDED, That an elected sheriff or an appointed chief of police, fire chief, or director of public safety shall not be required to meet the age standard. The department may amend the minimum medical and health standards as experience indicates, even if the standards as so amended are lower or less rigid than those recommended by the international associations mentioned above. The cost of the medical examination contemplated by this section is to be paid by the employer.

       NEW SECTION. Sec. 207. MINIMUM MEDICAL AND HEALTH STANDARDS--EXEMPTIONS--EMPLOYER MAY ADOPT HIGHER STANDARDS. Nothing in sections 204 through 206 of this act shall apply to any fire fighters or law enforcement officers who are employed as such on or before August 1, 1971, as long as they continue in such employment; nor to promotional appointments after becoming a member in the police or fire department of any employer nor to the reemployment of a law enforcement officer or fire fighter by the same or a different employer within six months after the termination of his or her employment, nor to the reinstatement of a law enforcement officer or fire fighter who has been on military or disability leave, disability retirement status, or leave of absence status. Nothing in this chapter shall be deemed to prevent any employer from adopting higher medical and health standards than those which are adopted by the department.

       NEW SECTION. Sec. 208. SPECIAL DEATH BENEFIT--DEATH IN THE COURSE OF EMPLOYMENT. (1) A one hundred fifty thousand dollar death benefit shall be paid to the member's estate, or such person or persons, trust or organization as the member shall have nominated by written designation duly executed and filed with the department. If there be no such designated person or persons still living at the time of the member's death, such member's death benefit shall be paid to the member's surviving spouse as if in fact such spouse had been nominated by written designation, or if there be no such surviving spouse, then to such member's legal representatives.

       (2) The benefit under this section shall be paid only where death occurs as a result of injuries sustained in the course of employment. The determination of eligibility for the benefit shall be made consistent with Title 51 RCW by the department of labor and industries. The department of labor and industries shall notify the department of retirement systems by order under RCW 51.52.050.

       NEW SECTION. Sec. 209. EXEMPTION FROM JUDICIAL PROCESS, TAXES--EXCEPTIONS--DEDUCTION FOR INSURANCE UPON REQUEST. (1) Subject to subsections (2) and (3) of this section, the right of a person to a retirement allowance, disability allowance, or death benefit, to the return of accumulated contributions, the retirement, disability, or death allowance itself, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, and the moneys in the fund created under this chapter, are hereby exempt from any state, county, municipal, or other local tax and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or any other process of law whatsoever, and shall be unassignable.

       (2) On the written request of any person eligible to receive benefits under this section, the department may deduct from such payments the premiums for life, health, or other insurance. The request on behalf of any child or children shall be made by the legal guardian of such child or children. The department may provide for such persons one or more plans of group insurance, through contracts with regularly constituted insurance carriers or health care service contractors.

       (3) Subsection (1) of this section shall not prohibit the department from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory benefits assignment order issued by the department, (e) a court order directing the department to pay benefits directly to an obligee under a dissolution order as defined in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 41.50.700, or (f) any administrative or court order expressly authorized by federal law.

       NEW SECTION. Sec. 210. NO BOND REQUIRED ON APPEAL TO COURT. No bond of any kind shall be required of a claimant appealing to the superior court, the court of appeals, or the supreme court from a decision of the director affecting such claimant's right to retirement or disability benefits.

       NEW SECTION. Sec. 211. BENEFIT CALCULATION--LIMITATION. (1) The annual compensation taken into account in calculating retiree benefits under this system shall not exceed the limits imposed by section 401(a)(17) of the federal internal revenue code for qualified trusts.

       (2) The department shall adopt rules as necessary to implement this section.

       NEW SECTION. Sec. 212. ESTABLISHING, RESTORING SERVICE CREDIT. Notwithstanding any provision to the contrary, persons who fail to:

       (1) Establish allowable membership service not previously credited;

       (2) Restore all or a part of that previously credited membership service represented by withdrawn contributions; or

       (3) Restore service credit represented by a lump sum payment in lieu of benefits, before the deadline established by statute, may do so under the conditions set forth in RCW 41.50.165.

       NEW SECTION. Sec. 213. DISABILITY RETIREMENT--CRIMINAL CONDUCT. A member shall not receive a disability retirement benefit under sections 220 through 222 of this act if the disability is the result of criminal conduct by the member committed after April 21, 1997.

       NEW SECTION. Sec. 214. FALSIFICATION--PENALTY. Any employer, member, or beneficiary who knowingly makes false statements or falsifies or permits to be falsified any record or records of the retirement system in an attempt to defraud the retirement system, is guilty of a felony.

       NEW SECTION. Sec. 215. FUNDING TOTAL LIABILITY OF SYSTEM. No employer or member contribution is required. The total liability of the retirement system is funded as provided in sections 4 and 5 of this act.

       NEW SECTION. Sec. 216. RETIREMENT FOR SERVICE. Retirement of a member for service shall be made by the department as follows:








       (1) Any member having five or more service credit years of service and having attained the age of fifty years shall be eligible for a service retirement allowance and shall be retired upon the member's written request effective the first day following the date upon which the member is separated from service.

       (2) Any member having five or more service credit years of service, who terminates his or her employment with any employer, may leave his or her contributions in the fund. Any employee who so elects, upon attaining age fifty, shall be eligible to apply for and receive a service retirement allowance based on his or her years of service, commencing on the first day following his or her attainment of age fifty.

       (3) Any member selecting optional vesting under subsection (2) of this section with less than twenty service credit years of service shall not be covered by the provisions of section 225 of this act, and the member's survivors shall not be entitled to the benefits of section 226 of this act unless his or her death occurs after he or she has attained the age of fifty years. Those members selecting this optional vesting with twenty or more years service shall not be covered by the provisions of section 225 of this act until the attainment of the age of fifty years. A member selecting this optional vesting, with less than twenty service credit years of service credit, who dies prior to attaining the age of fifty years, shall have paid from the restated law enforcement officers' and fire fighters' defined benefit retirement fund, to such member's surviving spouse, if any, otherwise to such beneficiary as the member shall have designated in writing, or if no such designation has been made, to the personal representative of his or her estate, a lump sum which is equal to the amount of such member's accumulated contributions plus accrued interest. If the vested member has twenty or more service credit years of service credit the surviving spouse or children shall then become eligible for the benefits of section 226 of this act regardless of the member's age at the time of his or her death, to the exclusion of the lump sum amount provided by this subsection.

       (4) Any member who has attained the age of sixty years shall be retired on the first day of the calendar month next succeeding that in which said member shall have attained the age of sixty and may not thereafter be employed as a law enforcement officer or fire fighter: PROVIDED, That for any member who is elected or appointed to the office of sheriff, chief of police, or fire chief, his or her election or appointment shall be considered as a waiver of the age sixty provision for retirement and nonemployment for whatever number of years remain in his or her present term of office and any succeeding periods for which he or she may be so elected or appointed. The provisions of this subsection shall not apply to any member who is employed as a law enforcement officer or fire fighter on March 1, 1970.

       NEW SECTION. Sec. 217. ALLOWANCE ON RETIREMENT FOR SERVICE. A member upon retirement for service shall receive a monthly retirement allowance computed according to his or her completed creditable service credit years of service as follows: Five years but under ten years, one-twelfth of one percent of his or her final average salary for each month of service; ten years but under twenty years, one-twelfth of one and one-half percent of his or her final average salary for each month of service; and twenty years and over one-twelfth of two percent of his or her final average salary for each month of service: PROVIDED, That the recipient of a retirement allowance who shall return to service as a law enforcement officer or fire fighter shall be considered to have terminated his or her retirement status and he or she shall immediately become a member of the retirement system with the status of membership he or she had as of the date of retirement. Retirement benefits shall be suspended during the period of his or her return to service and he or she shall make contributions and receive service credit. Such a member shall have the right to again retire at any time and his or her retirement allowance shall be recomputed, and paid, based upon additional service rendered and any change in final average salary: PROVIDED FURTHER, That no retirement allowance paid pursuant to this section shall exceed sixty percent of final average salary, except as such allowance may be increased by virtue of section 238 of this act.

       NEW SECTION. Sec. 218. CITY AND COUNTY DISABILITY BOARDS AUTHORIZED. (1) All claims for disability shall be acted upon and either approved or disapproved by either type of disability board created under this section.

       (a) Each city having a population of twenty thousand or more shall establish a disability board having jurisdiction over all members employed by the cities and composed of the following five members: Two members of the city legislative body to be appointed by the mayor, one active or retired fire fighter to be elected by the fire fighters employed by or retired from the city, one active or retired law enforcement officer to be elected by the law enforcement officers employed by or retired from the city, and one member from the public at large who resides within the city to be appointed by the other four members designated in this subsection. Retired members who are subject to the jurisdiction of the board have both the right to elect and the right to be elected under this section. Each of the elected members shall serve a two-year term. The members appointed pursuant to this subsection shall serve for two-year terms: PROVIDED, That cities of the first class only, shall retain existing firemen's pension boards established pursuant to RCW 41.16.020 and existing boards of trustees of the relief and pension fund of the police department as established pursuant to RCW 41.20.010 which such boards shall have authority to act upon and approve or disapprove claims for disability by fire fighters or law enforcement officers as provided under this chapter. No disability boards shall be established under the authority of this subsection (1)(a) after December 31, 2001.

       (b) Each county shall establish a disability board having jurisdiction over all members residing in the county and not employed by a city in which a disability board is established. The county disability board so created shall be composed of five members to be chosen as follows: One member of the legislative body of the county to be appointed by the county legislative body, one member of a city or town legislative body located within the county which does not contain a city disability board established pursuant to (a) of this subsection to be chosen by a majority of the mayors of such cities and towns within the county which does not contain a city disability board, one fire fighter or retired fire fighter to be elected by the fire fighters employed or retired in the county who are not employed by or retired from a city in which a disability board is established, one law enforcement officer or retired law enforcement officer to be elected by the law enforcement officers employed in or retired from the county who are not employed by or retired from a city in which a disability board is established, and one member from the public at large who resides within the county but does not reside within a city in which a city disability board is established, to be appointed by the other four members designated in this subsection. However, in counties with a population less than sixty thousand, the member of the disability board appointed by a majority of the mayors of the cities and towns within the county that do not contain a city disability board must be a resident of one of the cities and towns but need not be a member of a city or town legislative body. Retired members who are subject to the jurisdiction of the board have both the right to elect and the right to be elected under this section. All members appointed or elected pursuant to this subsection shall serve for two-year terms.

       (2) The members of both the county and city disability boards shall not receive compensation for their service upon the boards but the members shall be reimbursed by their respective county or city for all expenses incidental to such service as to the amount authorized by law.

       (3) The disability boards authorized for establishment by this section shall perform all functions, exercise all powers, and make all such determinations as specified in this chapter.

       NEW SECTION. Sec. 219. DIRECTOR TO ADOPT RULES GOVERNING DISABILITY BOARDS. (1) The director shall adopt rules, in accordance with chapter 34.05 RCW, under which each disability board shall execute its disability retirement duties under this chapter. The rules shall include, but not be limited to, the following:

       (a) Standards governing the type and manner of presentation of medical, employability, and other evidence before disability boards; and

       (b) Standards governing the necessity and frequency of medical and employability reexaminations of persons receiving disability benefits.

       (2) If the director determines that an order or determination of a disability board was not processed in accordance with the rules established under this section, the director may remand the order or determination for further proceedings consistent with the rules.

       NEW SECTION. Sec. 220. RETIREMENT FOR DISABILITY INCURRED IN THE LINE OF DUTY. Any member, regardless of age or years of service, may be retired by the disability board, subject to approval by the director, for any disability incurred in the line of duty which has been continuous since his or her discontinuance of service and which renders the member unable to continue service. No disability retirement allowance shall be paid until the expiration of a period of six months after the discontinuance of service during which period the member, if found to be physically or mentally unfit for duty by the disability board following receipt of his or her application for disability retirement, shall be granted a disability leave by the disability board and shall receive an allowance equal to the full monthly salary and shall continue to receive all other benefits provided to active employees from the employer for such period. However, if, at any time during the initial six-month period, the disability board finds the beneficiary is no longer disabled, the disability leave allowance shall be canceled and the member shall be restored to duty in the same rank or position, if any, held by the beneficiary at the time the member became disabled. Applications for disability retirement shall be processed in accordance with the following procedures:

       (1) Any member who believes he or she is or is believed to be physically or mentally disabled shall be examined by such medical authority as the disability board shall employ, upon application of the member, or a person acting in his or her behalf, stating that the member is disabled, either physically or mentally: PROVIDED, That no such application shall be considered unless the member or someone in his or her behalf, in case of the incapacity of a member, shall have filed the application within a period of one year from and after the discontinuance of service of the member.







       (2) If the examination shows, to the satisfaction of the disability board, that the member is physically or mentally disabled from the further performance of duty, that such disability was incurred in the line of duty, and that such disability has been continuous from the discontinuance of service, the disability board shall enter its written decision and order, accompanied by appropriate findings of fact and by conclusions evidencing compliance with this chapter, granting the member a disability retirement allowance; otherwise, if the member is not found by the disability board to be so disabled, the application shall be denied pursuant to a similar written decision and order, subject to appeal to the director in accordance with section 235 of this act: PROVIDED, That in any order granting a duty disability retirement allowance, the disability board shall make a finding that the disability was incurred in line of duty.

       (3) Every order of a disability board granting a duty disability retirement allowance shall immediately be reviewed by the director except the finding that the disability was incurred in the line of duty. The director may affirm the decision of the disability board or remand the case for further proceedings, or the director may reverse the decision of the disability board if the director finds the disability board's findings, inferences, conclusions, or decisions are:

       (a) In violation of constitutional provisions;

       (b) In excess of the statutory authority or jurisdiction of the disability board;

       (c) Made upon unlawful procedure;

       (d) Affected by other error of law;

       (e) Clearly erroneous in view of the entire record as submitted and the public policy contained in this chapter; or

       (f) Arbitrary or capricious.

       (4) Every member who can establish, to the disability board, that he or she is physically or mentally disabled from the further performance of duty, that such disability was incurred in the line of duty, and that such disability will be in existence for a period of at least six months may waive the six-month period of disability leave and be immediately granted a duty disability retirement allowance, subject to the approval of the director as provided in subsection (3) of this section.

       NEW SECTION. Sec. 221. RETIREMENT FOR DISABILITY NOT INCURRED IN THE LINE OF DUTY. Any member, regardless of age or years of service, may be retired by the disability board, subject to approval by the director as provided in this section, for any disability not incurred in the line of duty which has been continuous since discontinuance of service and which renders the member unable to continue service. No disability retirement allowance may be paid until the expiration of a period of six months after the discontinuance of service during which period the member, if found to be physically or mentally unfit for duty by the disability board following receipt of the member's application for disability retirement, shall be granted a disability leave by the disability board and shall receive an allowance equal to the member's full monthly salary and shall continue to receive all other benefits provided to active employees from the member's employer for the period. However, if, at any time during the initial six-month period, the disability board finds the beneficiary is no longer disabled, the disability leave allowance shall be canceled and the member shall be restored to duty in the same rank or position, if any, held by the member at the time the member became disabled. Applications for disability retirement shall be processed in accordance with the following procedures:

       (1) Any member who believes he or she is, or is believed to be, physically or mentally disabled shall be examined by such medical authority as the disability board shall employ, upon application of the member, or a person acting in the member's behalf, stating that the member is disabled, either physically or mentally: PROVIDED, That no such application shall be considered unless the member or someone acting in the member's behalf, in case of the incapacity of a member, has filed the application within a period of one year from and after the discontinuance of service of the member.

       (2) If the examination shows, to the satisfaction of the disability board, that the member is physically or mentally disabled from the further performance of duty, that such disability was not incurred in the line of duty, and that such disability had been continuous from the discontinuance of service, the disability board shall enter its written decision and order, accompanied by appropriate findings of fact and by conclusions evidencing compliance with this chapter, granting the member a disability retirement allowance. Otherwise, if the member is not found by the disability board to be so disabled, the application shall be denied pursuant to a similar written decision and order, subject to appeal to the director in accordance with section 235 of this act: PROVIDED, That in any order granting a nonduty disability retirement allowance, the disability board shall make a finding that the disability was not incurred in the line of duty.

       (3) Every order of a disability board granting a nonduty disability retirement allowance shall immediately be reviewed by the director except the finding that the disability was not incurred in the line of duty. The director may affirm the decision of the disability board or remand the case for further proceedings, or the director may reverse the decision of the disability board if the director finds the disability board's findings, inferences, conclusions, or decisions are:

       (a) In violation of constitutional provisions;

       (b) In excess of the statutory authority or jurisdiction of the disability board;

       (c) Made upon unlawful procedure;

       (d) Affected by other error of law;

       (e) Clearly erroneous in view of the entire record as submitted and the public policy contained in this chapter; or

       (f) Arbitrary or capricious.

       (4) Every member who can establish to the disability board that the member is physically or mentally disabled from the further performance of duty, that such disability was not incurred in the line of duty, and that such disability will be in existence for a period of at least six months, may waive the six-month period of disability leave and be immediately granted a nonduty disability retirement allowance, subject to the approval of the director as provided in subsection (3) of this section.

       NEW SECTION. Sec. 222. ALLOWANCE ON RETIREMENT FOR DISABILITY. (1) Upon retirement for disability a member shall be entitled to receive a monthly retirement allowance computed as follows: (a) A basic amount of fifty percent of final average salary at time of disability retirement, and (b) an additional five percent of final average salary for each child as defined in section 202(7) of this act, (c) the combined total of (a) and (b) of this subsection shall not exceed a maximum of sixty percent of final average salary.

       (2) A disabled member shall begin receiving the disability retirement allowance as of the expiration of his or her six-month period of disability leave or, if his or her application was filed after the sixth month of discontinuance of service but prior to the one-year time limit, the member's disability retirement allowance shall be retroactive to the end of the sixth month.

       (3) Benefits under this section will be payable until the member recovers from the disability or dies. If at the time that the disability ceases the member is over the age of fifty, he or she shall then receive either disability retirement allowance or retirement for service allowance, whichever is greater.

       (4) Benefits under this section for a disability that is incurred while in other employment will be reduced by any amount the member receives or is entitled to receive from workers' compensation, social security, group insurance, other pension plan, or any other similar source provided by another employer on account of the same disability.

       (5) A member retired for disability shall be subject to periodic examinations by a physician approved by the disability board prior to attainment of age fifty, pursuant to rules adopted by the director under section 219 of this act. Examinations of members who retired for disability prior to July 26, 1981, shall not exceed two medical examinations per year.

       NEW SECTION. Sec. 223. CESSATION OF DISABILITY--DETERMINATION. (1) A disabled member who believes that his or her disability has ceased in accordance with section 222(3) of this act may make application to the disability board which originally found the member to be disabled, for a determination that the disability has ceased.

       (2) Every order of a disability board determining that a member's disability has ceased pursuant to section 222(3) of this act shall immediately be reviewed by the director. The director may affirm the decision of the disability board or remand the case for further proceedings if the director finds the disability board's findings, inferences, conclusions, or decisions are:

       (a) In violation of constitutional provisions;

       (b) In excess of the statutory authority or jurisdiction of the disability board;

       (c) Made upon unlawful procedure;

       (d) Affected by other error of law;

       (e) Clearly erroneous in view of the entire record as submitted and the public policy contained in this chapter; or

       (f) Arbitrary or capricious.







       (3) Determinations of whether a disability has ceased under section 222(3) of this act and this section shall be made in accordance with the same procedures and standards governing other cancellations of disability retirement.

       NEW SECTION. Sec. 224. REEXAMINATIONS OF DISABILITY BENEFICIARIES--REENTRY--APPEAL. (1) Upon the basis of reexaminations of members on disability retirement as provided in section 222 of this act, the disability board shall determine whether such disability beneficiary is still unable to perform his or her duties either physically or mentally for service in the department where he or she was employed.

       (2) If the disability board determines that the beneficiary is not so incapacitated the retirement allowance shall be canceled and the member shall be restored to duty in the same civil service rank, if any, held by the beneficiary at the time of his or her retirement or if unable to perform the duties of that rank, then, at his or her request, in such other like or lesser rank as may be or become open and available, the duties of which he or she is then able to perform. In no event, shall a beneficiary previously drawing a disability allowance be returned or be restored to duty at a salary or rate of pay less than the current salary attached to the rank or position held by the beneficiary at the date of retirement for disability. If the disability board determines that the beneficiary is able to return to service he or she shall be entitled to notice and a hearing, both the notice and the hearing shall comply with the requirements of chapter 34.05 RCW.

       (3) Should a disability beneficiary reenter service and be eligible for membership in the retirement system, the retirement allowance shall be canceled and he or she shall immediately become a member of the retirement system.

       (4) Should any disability beneficiary under age fifty refuse to submit to examination, the retirement allowance shall be discontinued until withdrawal of such refusal, and should such refusal continue for one year or more, the retirement allowance shall be canceled.

       (5) Should the disability retirement allowance of any disability beneficiary be canceled for any cause other than reentrance into service or retirement for service, he or she shall be paid the excess, if any, of the accumulated contributions at the time of retirement over all payments made on his or her behalf under this chapter.

       (6) Any person feeling aggrieved by an order of a disability board determining that a beneficiary's disability has not ceased, pursuant to section 222(3) of this act has the right to appeal the order or determination to the director. The director shall have no jurisdiction to entertain the appeal unless a notice of appeal is filed with the director within thirty days following the rendition of the order by the disability board. A copy of the notice of appeal shall be served upon the director and the applicable disability board and, within ninety days thereof, the disability board shall certify its decision and order which shall include findings of fact and conclusions of law, together with a transcript of all proceedings in connection therewith, to the director for review. Upon review of the record, the director may affirm the order of the disability board or may remand the case for further proceedings if the director finds that the disability board's findings, inferences, conclusions, or decisions are:

       (a) In violation of constitutional provisions;

       (b) In excess of the statutory authority or jurisdiction of the disability board;

       (c) Made upon unlawful procedure;

       (d) Affected by other error of law;

       (e) Clearly erroneous in view of the entire record as submitted and the public policy contained in this chapter; or

       (f) Arbitrary or capricious.

       NEW SECTION. Sec. 225. SICKNESS OR DISABILITY BENEFITS--MEDICAL SERVICES. (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 home, and whether or not so confined, requires medical services, the employer shall pay for the active or retired member the necessary medical services not payable from some other source as provided for in subsection (2) of this section. 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 the fund had been established prior to March 1, 1970. If this pension fund is depleted, the employer shall have the obligation to pay all benefits payable under chapters 41.16 and 41.18 RCW.

       (a) 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 rights to benefits under this section for the period of the refusal.

       (b) 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 workers' compensation, social security including the changes incorporated under Public Law 89-97, 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 shall not be deemed a refusal of payment of benefits thereby enabling collection of charges under the provisions of this chapter.

       (3) Upon making the payments provided for in subsection (1) of this section, 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 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 restated law enforcement officers' and fire fighters' retirement system, and/or retired former employees who were, before retirement, members of the 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 the 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.

       (5) Any employer, jointly with any other employer or employers of the state, may participate in the medical benefits risk pool established under chapter 41.--- RCW (sections 301 through 310 of this act).

       (6) Any employer under this chapter may, at its discretion, elect to reimburse a retired former employee under this chapter for premiums the retired former employee has paid for medical insurance that supplements medicare, including premiums the retired former employee has paid for medicare part B coverage.

       NEW SECTION. Sec. 226. DEATH BENEFITS--DUTY CONNECTED. (1) In the event of the duty connected death of any member who is in active service, or who has vested under section 216 of this act with twenty or more service credit years of service, or who is on duty connected disability leave or retired for duty connected disability, the surviving spouse shall become entitled to receive a monthly allowance equal to fifty percent of the final average salary at the date of death if active, or the amount of retirement allowance the vested member would have received at age fifty, or the amount of the retirement allowance such retired member was receiving at the time of death if retired for duty connected disability. The amount of this allowance will be increased five percent of final average salary for each child as defined in section 202(7) of this act, subject to a maximum combined allowance of sixty percent of final average salary: PROVIDED, That if the child or children is or are in the care of a legal guardian, payment of the increase attributable to each child will be made to the child's legal guardian or, in the absence of a legal guardian and if the member has created a trust for the benefit of the child or children, payment of the increase attributable to each child will be made to the trust.

       (2) If at the time of the duty connected death of a vested member with twenty or more service credit years of service as provided in subsection (1) of this section or a member retired for duty connected disability, the surviving spouse has not been lawfully married to such member for one year prior to retirement or separation from service if a vested member, the surviving spouse shall not be eligible to receive the benefits under this section: PROVIDED, That if a member dies as a result of a disability incurred in the line of duty, then if he or she was married at the time he or she was disabled, the surviving spouse shall be eligible to receive the benefits under this section.

       (3) If there be no surviving spouse eligible to receive benefits at the time of such member's duty connected death, then the child or children of such member shall receive a monthly allowance equal to thirty percent of final average salary for one child and an additional ten percent for each additional child subject to a maximum combined payment, under this subsection, of sixty percent of final average salary. When there cease to be any eligible children as defined in section 202(7) of this act, there shall be paid to the legal heirs of the member the excess, if any, of accumulated contributions of the member at the time of death over all payments made to survivors on his or her behalf under this chapter: PROVIDED, That payments under this subsection to children shall be prorated equally among the children, if more than one. If the member has created a trust for the benefit of the child or children, the payment shall be made to the trust.

       (4) In the event that there is no surviving spouse eligible to receive benefits under this section, and that there be no child or children eligible to receive benefits under this section, then the accumulated contributions shall be paid to the estate of the member.





       (5) If a surviving spouse receiving benefits under the provisions of this section thereafter dies and there are children as defined in section 202(7) of this act, payment to the spouse shall cease and the child or children shall receive the benefits as provided in subsection (3) of this section.

       (6) The payment provided by this section shall become due the day following the date of death and payments shall be retroactive to that date.

       NEW SECTION. Sec. 227. DEATH BENEFITS--NONDUTY CONNECTED. (1) In the event of the nonduty connected death of any member who is in active service, or who has vested under section 216 of this act with twenty or more service credit years of service, or who is on disability leave or retired, whether for nonduty connected disability or service, the surviving spouse shall become entitled to receive a monthly allowance equal to fifty percent of the final average salary at the date of death if active, or the amount of retirement allowance the vested member would have received at age fifty, or the amount of the retirement allowance such retired member was receiving at the time of death if retired for service or nonduty connected disability. The amount of this allowance will be increased five percent of final average salary for each child as defined in section 202(7) of this act, subject to a maximum combined allowance of sixty percent of final average salary: PROVIDED, That if the child or children is or are in the care of a legal guardian, payment of the increase attributable to each child will be made to the child's legal guardian or, in the absence of a legal guardian and if the member has created a trust for the benefit of the child or children, payment of the increase attributable to each child will be made to the trust.

       (2) If at the time of the death of a vested member with twenty or more service credit years of service as provided in subsection (1) of this section or a member retired for service or disability, the surviving spouse has not been lawfully married to such member for one year prior to retirement or separation from service if a vested member, the surviving spouse shall not be eligible to receive the benefits under this section.

       (3) If there be no surviving spouse eligible to receive benefits at the time of such member's death, then the child or children of such member shall receive a monthly allowance equal to thirty percent of final average salary for one child and an additional ten percent for each additional child subject to a maximum combined payment, under this subsection, of sixty percent of final average salary. When there cease to be any eligible children as defined in section 202(7) of this act, there shall be paid to the legal heirs of the member the excess, if any, of accumulated contributions of the member at the time of death over all payments made to survivors on his or her behalf under this chapter: PROVIDED, That payments under this subsection to children shall be prorated equally among the children, if more than one. If the member has created a trust for the benefit of the child or children, the payment shall be made to the trust.

       (4) In the event that there is no surviving spouse eligible to receive benefits under this section, and that there be no child or children eligible to receive benefits under this section, then the accumulated contributions shall be paid to the estate of the member.

       (5) If a surviving spouse receiving benefits under the provisions of this section thereafter dies and there are children as defined in section 202(7) of this act, payment to the spouse shall cease and the child or children shall receive the benefits as provided in subsection (3) of this section.

       (6) The payment provided by this section shall become due the day following the date of death and payments shall be retroactive to that date.

       NEW SECTION. Sec. 228. EX SPOUSE QUALIFYING AS SURVIVING SPOUSE--WHEN. (1) An ex spouse of a retiree shall qualify as surviving spouse under section 226 of this act if the ex spouse:

       (a) Has been provided benefits under any currently effective court decree of dissolution or legal separation or in any court order or court-approved property settlement agreement incident to any court decree of dissolution or legal separation entered after the member's retirement and prior to December 31, 1979; and

       (b) Was married to the retiree for at least thirty years, including at least twenty years prior to the member's retirement or separation from service if a vested member.

       (2) If two or more persons are eligible for a surviving spouse benefit under this subsection, benefits shall be divided between the surviving spouses based on the percentage of total service credit the member accrued during each marriage.

       (3) This section shall apply retroactively.

       NEW SECTION. Sec. 229. REFUND OF CONTRIBUTIONS ON DISCONTINUANCE OF SERVICE--REENTRY. (1) Should service of a member be discontinued except by death, disability, or retirement, the member shall, upon application therefor, be paid the accumulated contributions within sixty days after the day of application and the rights to all benefits as a member shall cease: PROVIDED, That any member with at least five years' service may elect the provisions of section 216(2) of this act.

       (2) Any member whose contributions have been paid in accordance with subsection (1) of this section and who reenters the service of an employer shall upon the restoration of withdrawn contributions, which restoration must be completed within a total period of five years of service following resumption of employment, then receive credit toward retirement for the period of previous service which these contributions are to cover.

       (3) If the member fails to meet the time limitations of subsection (2) of this section, the member may make the payment required under RCW 41.50.165(2) prior to retirement. The member shall then receive credit toward retirement for the period of previous service that the withdrawn contributions cover.

       NEW SECTION. Sec. 230. CREDIT FOR MILITARY SERVICE. Each person affected by this chapter who at the time of entering the armed services was a member of this system or plan 1 under chapter 41.26 RCW, and has honorably served in the armed services of the United States, shall have added to the period of service as computed under this chapter, the period of service in the armed forces: PROVIDED, That such credited service shall not exceed five years.

       NEW SECTION. Sec. 231. CREDIT FOR SERVICE UNDER PRIOR PENSION SYSTEM--RESTORATION OF WITHDRAWN CONTRIBUTIONS. If a member of this retirement system served as a law enforcement officer or fire fighter under a prior pension system and that service is not creditable to this retirement system because the member withdrew his or her contributions plus accrued interest from the prior pension system, the member's prior service as a law enforcement officer shall be credited to this retirement system if the member pays to the retirement system the amount under RCW 41.50.165(2) prior to retirement.

       NEW SECTION. Sec. 232. CREDIT FOR SERVICE UNDER PRIOR PENSION SYSTEM--SERVICE NOT COVERED UNDER PRIOR SYSTEM. If a member's prior service as a law enforcement officer or fire fighter under a prior pension system is not creditable because, although employed in a position covered by a prior pension act, the member had not yet become a member of the pension system governed by the act, the member's prior service as a law enforcement officer or fire fighter shall be creditable if the member pays to the plan the amount set forth under RCW 41.50.165(2) prior to retirement.

       NEW SECTION. Sec. 233. TRANSFER OF SERVICE CREDIT FROM OTHER RETIREMENT SYSTEM--IRREVOCABLE ELECTION ALLOWED. Any member of the teachers' retirement system plans 1, 2, or 3, the public employees' retirement system plans 1 or 2, or the Washington state patrol retirement system who has previously established service credit in the restated law enforcement officers' and fire fighters' retirement system may make an irrevocable election to have such service transferred to their current retirement system and plan subject to the following conditions:

       (1) If the individual is employed by an employer in an eligible position, as of July 1, 1997, the election to transfer service must be filed in writing with the department no later than July 1, 1998. If the individual is not employed by an employer in an eligible position, as of July 1, 1997, the election to transfer service must be filed in writing with the department no later than one year from the date they are employed by an employer in an eligible position.

       (2) An individual transferring service under this section forfeits the rights to all benefits as a member of the restated law enforcement officers' and fire fighters' retirement system and will be permanently excluded from membership.

       (3) Any individual choosing to transfer service under this section will have transferred to their current retirement system and plan: (a) All the individual's accumulated contributions; (b) an amount sufficient to ensure that the employer contribution rate in the individual's current system and plan will not increase due to the transfer; and (c) all applicable months of service, as defined in section 202(14) of this act.

       (4) If an individual has withdrawn contributions from the law enforcement officers' and fire fighters' retirement system plan 1 or the plan established by this chapter, the individual may restore the contributions, together with interest as determined by the director, and recover the service represented by the contributions for the sole purpose of transferring service under this section. The contributions must be restored before the transfer can occur and the restoration must be completed within the time limitations specified in subsection (1) of this section.

       (5) Any service transferred under this section does not apply to the eligibility requirements for military service credit as defined in RCW 41.40.170(3) or 43.43.260(3).

       (6) If an individual does not meet the time limitations of subsection (1) of this section, the individual may elect to restore any withdrawn contributions and transfer service under this section by paying the amount required under subsection (3)(b) of this section less any employee contributions transferred.

       NEW SECTION. Sec. 234. SERVICE CREDIT FOR PAID LEAVE OF ABSENCE--APPLICATION TO ELECTED OFFICIALS OF LABOR ORGANIZATIONS. (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided under this chapter.

       (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence. This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave. The basic salary reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

       NEW SECTION. Sec. 235. APPEAL TO DIRECTOR. Any person feeling aggrieved by any order or determination of a disability board denying disability leave or disability retirement, or canceling a previously granted disability retirement allowance, shall have the right to appeal the order or determination to the director. The director shall have no jurisdiction to entertain the appeal unless a notice of appeal is filed with the director within thirty days following the rendition of the order by the applicable disability board. A copy of the notice of appeal shall be served upon the director and the applicable disability board and, within ninety days thereof, the disability board shall certify its decision and order which shall include findings of fact and conclusions of law, together with a transcript of all proceedings in connection therewith, to the director for review. Upon review of the record, the director may affirm the order of the disability board or may remand the case for such further proceedings as he or she may direct, in accordance with such rules of procedure as the director shall adopt.

       NEW SECTION. Sec. 236. NOTICE FOR HEARING REQUIRED PRIOR TO PETITIONING FOR JUDICIAL REVIEW. Any person aggrieved by any final decision of the director must, before petitioning for judicial review, file with the director by mail or personally within sixty days from the day the decision was communicated to the person, a notice for a hearing. The notice of hearing shall set forth in full detail the grounds upon which such person considers such decision unjust or unlawful and shall include every issue to be considered, and it must contain a detailed statement of facts upon which such person relies in support thereof. Such persons shall be deemed to have waived all objections or irregularities concerning the matter on which such appeal is taken other than those specifically set forth in the notice of hearing or appearing in the records of the retirement system.

       NEW SECTION. Sec. 237. HEARING--CONDUCT. A hearing shall be held by the director, or the director's duly authorized representative, in the county of the residence of the claimant at a time and place designated by the director. Such hearing shall be de novo and shall conform to the provisions of chapter 34.05 RCW. The disability board and the department shall be entitled to appear in all such proceedings and introduce testimony in support of the decision. Judicial review of any final decision by the director shall be governed by the provisions of chapter 34.05 RCW.

       NEW SECTION. Sec. 238. INCREASES OR DECREASES IN RETIREMENT ALLOWANCES TO BE DETERMINED BY DEPARTMENT IN ACCORDANCE WITH CONSUMER PRICE INDEX. For purposes of this section:

       (1) "Index" means, for any calendar year, that year's average consumer price index for the Seattle, Washington area for urban wage earners and clerical workers, all items (1957-1959=100), compiled by the bureau of labor statistics of the United States department of labor;

       (2) "Retirement allowance" means the retirement allowance provided for in sections 217 and 222 of this act, and the monthly allowance provided for in section 226 of this act.

       On April 1st of each year, every retirement allowance which has been in effect for more than one year shall be adjusted to that dollar amount which exceeds its original dollar amount by the percentage difference which the department finds to exist between the index for the previous calendar year and the index for the calendar year prior to the effective retirement date of the person to whom, or on behalf of whom, such retirement allowance is being paid.

       For the purposes of this section, "basic allowance" means that portion of a total retirement allowance, and any cost-of-living adjustment thereon, attributable to a member (individually) and shall not include the increased amounts attributable to the existence of a child or children. In those cases where a child ceases to be qualified as an eligible child, so as to lessen the total allowance, the allowance shall, at that time, be reduced to the basic allowance plus the amount attributable for the appropriate number of eligible children. In those cases where a child qualifies as an eligible child subsequent to the retirement of a member so as to increase the total allowance payable, such increased allowance shall at the time of the next and appropriate subsequent cost-of-living adjustments, be considered the original dollar amount of the allowance.

       NEW SECTION. Sec. 239. INCREASE IN PRESENTLY PAYABLE BENEFITS FOR SERVICE OR DISABILITY AUTHORIZED. All benefits presently payable pursuant to the provisions of RCW 41.20.050, 41.20.060, and 41.20.080 as such RCW sections existed prior to the effective date of the amendment of such RCW sections by sections 1, 2, 3, chapter 191, Laws of 1961 to persons who retired prior to the effective date of the 1961 amendatory act, shall be increased annually as provided in this section. The local pension board shall meet subsequent to March 31st but prior to June 30th of each year for the purpose of adjusting benefit allowances payable pursuant to RCW 41.20.050, 41.20.060, and 41.20.080. 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 the 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 in this section, 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.

       For the purpose of this section, "consumer price index" means, 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.

       NEW SECTION. Sec. 240. INCREASE IN CERTAIN PRESENTLY PAYABLE DEATH BENEFITS AUTHORIZED. All benefits presently payable pursuant to the provisions of RCW 41.20.085 which are not related to the amount of current salary attached to the position held by the deceased member shall be increased annually in the same manner and to the same extent as provided for pursuant to section 239 of this act.

       NEW SECTION. Sec. 241. DECLARATION OF POLICY RESPECTING BENEFITS FOR INJURY OR DEATH--CIVIL ACTIONS ABOLISHED. The legislature of the state of Washington hereby declares that the relationship between members of the restated law enforcement officers' and fire fighters' retirement system and their governmental employers is similar to that of workers to their employers and that the sure and certain relief granted by this chapter is desirable, and as beneficial to such law enforcement officers and fire fighters as workers' compensation coverage is to persons covered by Title 51 RCW. The legislature further declares that removal of law enforcement officers and fire fighters from workers' compensation coverage under Title 51 RCW necessitates the (1) continuance of sure and certain relief for personal injuries incurred in the course of employment or occupational disease, which the legislature finds to be accomplished by the provisions of this chapter and (2) protection for the governmental employer from actions at law; and to this end the legislature further declares that the benefits and remedies conferred by this chapter upon law enforcement officers and fire fighters covered under this chapter shall be to the exclusion of any other remedy, proceeding, or compensation for personal injuries or sickness, caused by the governmental employer except as otherwise provided by this chapter; and to that end all civil actions and civil causes of actions by such law enforcement officers and fire fighters against their governmental employers for personal injuries or sickness are hereby abolished, except as otherwise provided in this chapter.

       NEW SECTION. Sec. 242. CAUSE OF ACTION FOR INJURY OR DEATH, WHEN. If injury or death results to a member from the intentional or negligent act or omission of a member's governmental employer, the member, the widow, widower, child, or dependent of the member shall have the privilege to benefit under this chapter and also have cause of action against the governmental employer as otherwise provided by law, for any excess of damages over the amount received or receivable under this chapter.

       NEW SECTION. Sec. 243. Sections 1 through 8 and 201 through 242 of this act constitute a new chapter in Title 41 RCW, to be designated chapter 41.26A RCW.

PART III

LEOFF MEDICAL BENEFITS RISK POOL


       NEW SECTION. Sec. 301. The purpose of this chapter is to establish a risk assumption program whereby employers of active and retired members of the restated law enforcement officers' and fire fighters' retirement system under chapter 41.26A RCW voluntarily enter into membership in a risk pool for the purpose of sharing the noninsured medical costs of long-term care and major medical services for retired members of the retirement system. Such long-term care and major medical services are those required under chapter 41.26A RCW and approved by city and county disability boards.

       NEW SECTION. Sec. 302. The definitions in this section apply to this chapter unless the context clearly requires otherwise.

       (1) "Actuary" means the state actuary, office of the state actuary.

       (2) "Beneficiary" means any person in receipt of a retirement allowance or disability allowance who is eligible for medical services under the restated law enforcement officers' and fire fighters' retirement system under chapter 41.26A RCW.

       (3) "Employer" means the legislative authority of any city, town, county, or district or the elected officials of any municipal corporation that employs any member of the restated law enforcement officers' and fire fighters' retirement system, or any authorized association of such municipalities.

       (4) "Executive board" means the law enforcement officers' and fire fighters' risk pool executive board.

       (5) "Long-term care" means those medically necessary services required under section 202(22) of this act, authorized under section 225 of this act, and received in a facility for skilled nursing care, intermediate care, custodial care, hospice care, day care, in-home nursing care, or other in-home care or services. For purposes of expenditures from the medical account, long-term care only includes qualified long-term care services as defined in internal revenue code section 7702B(2), and qualified long-term care insurance contract as defined in internal revenue code section 7702B(b).

       (6) "Medical costs" means those costs incurred in the provision of the medically necessary medical services required under section 202(22) of this act and authorized under section 225 of this act. For purposes of expenditures from the medical account, medical costs only include cost of medical care as defined in internal revenue code section 213(d).

       (7) "Risk assumption" means a decision to absorb the entity's financial exposure to a risk of loss without the creation of a formal program of advance funding of anticipated losses.

       (8) "Risk pool" means the long-term care and medical costs risk pool created for the law enforcement officers' and fire fighters' medical benefits risk pool.

       (9) "State risk manager" means the risk manager, risk management division, department of general administration.

       NEW SECTION. Sec. 303. (1) There is hereby established the law enforcement officers' and fire fighters' medical benefits risk pool.

       (2) The risk pool is a risk assumption insurance program for the sole purpose of employers sharing the noninsured medical costs of long-term care and medical costs for beneficiaries.

       (3) An employer's participation and withdrawal from the risk pool is subject to rules established by the executive board.

       NEW SECTION. Sec. 304. (1) The law enforcement officers' and fire fighters' risk pool executive board is hereby established.

       (2)(a) The membership of the executive board shall consist of seven persons as follows:

       (i) The chair is appointed by the governor for a four-year term of office. The chair shall be familiar with risk pool operation, medical, and long-term care matters but shall not have been employed as a law enforcement officer or fire fighter or served on a law enforcement officers' and fire fighters' disability board; and

       (ii) Six others selected by the governor from lists of recommended persons made by their respective organizations as follows:

       (A) Two persons representing counties, one of which is an elected official;

       (B) Two persons representing cities and towns, one of which is an elected official; and

       (C) Two persons representing fire protection districts, one of which is an elected commissioner.

       (b) If a member vacates his or her position, the governor shall select a person from a list recommended by his or her respective organization to replace the vacating member for the remainder of the term of office for the vacated position.

       (3) One position of the county, city, or town, and fire protection district groups and the law enforcement officer position have an initial term of two years and four years thereafter. The remaining positions have terms of four years.

       (4) A vice-chair shall be elected at the first meeting of the executive board and every two years thereafter. Upon the absence of the chair, the vice-chair shall act in his or her place.

       (5) The executive board shall meet at least quarterly and shall maintain minutes of each meeting and any records as may be necessary, which are public records.

       (6) The chair and three other members constitute a quorum.

       (7) The members of the executive board shall not receive compensation for their service upon the executive board but shall be reimbursed for all expenses incidental to such service as to the amount authorized by either RCW 42.24.090 or 43.03.050 and 43.03.060, whichever is applicable.

       NEW SECTION. Sec. 305. The duties of the executive board are as follows:

       (1) Establish the basis of membership in the risk pool;

       (2) Define and establish the benefits to be reimbursed by the risk pool;

       (3) Authorize distribution of moneys from the risk pool account consistent with the provisions of rules and regulations established by the internal revenue service;

       (4) Determine, with the assistance of the actuary, employer premiums to the risk pool;

       (5) Authorize reimbursement for medical and long-term care costs, required under section 202(22) of this act and authorized under section 225 of this act that are not covered by standard medical insurance policies. The board shall adopt rules governing these reimbursements consistent with the provisions of the internal revenue code and rules and regulations established by the internal revenue service;

       (6) Purchase reinsurance as necessary;

       (7) Appoint other staff as necessary for the operation of the risk pool; fix their compensation within the limits provided by law; and prescribe their duties; and

       (8) Enter into contracts necessary for the operation of the risk pool, including risk management, claims, and administrative services.

       NEW SECTION. Sec. 306. Funding for the risk pool account, established in section 310 of this act, may come from three sources: (1) Employer premiums; (2) surplus assets which are transferred from the Washington law enforcement officers' and fire fighters' system plan 1 retirement fund under section 8 of this act; and (3) investment earnings.

       NEW SECTION. Sec. 307. The state risk manager shall adopt rules governing the implementation, management, and operation of the risk pool in consultation with the health and welfare advisory board under RCW 48.62.051. All rules shall be appropriate for the type of program and class of risk covered. The state risk manager's rules shall include:

       (1) Standards for the implementation, management, operation, and solvency of the risk pool, including the necessity and frequency of actuarial analyses and claims audits;

       (2) Standards for claims management procedures;

       (3) Standards for contracts between the risk pool and private businesses including standards for contracts between third-party administrators and the risk pool; and

       (4) Standards for an annual report with the state risk manager and state auditor including, but not limited to:

       (a) Copies of all the insurance coverage documents;

       (b) A description of the program structure;

       (c) An actuarial analysis, if required;

       (d) A list of contractors and service providers;

       (e) The financial and loss experience of the program; and

       (f) Such other information as required by rule of the state risk manager.

       NEW SECTION. Sec. 308. The risk pool may not engage in an act or practice that in any respect significantly differs from the management and operation plan that formed the basis for the state risk manager's approval unless the risk pool first notifies the state risk manager in writing and obtains the state risk manager's approval. The state risk manager shall approve or disapprove the proposed change within sixty days of receipt of the notice. If the state risk manager denies a requested change, the risk manager shall specify in detail the reasons for denial and the manner in which the risk pool would fail to meet the requirements of this chapter or any rules adopted in accordance with this chapter.

       NEW SECTION. Sec. 309. (1) The state risk manager shall establish and charge an investigation fee in an amount necessary to cover the costs for the initial review and approval of the risk pool. The fee must accompany the initial submission of the plan of operation and management.

       (2) The costs of subsequent reviews and investigations shall be charged to the risk pool being reviewed or investigated in accordance with the actual time and expenses incurred in the review or investigation.

       (3) The risk pool shall pay any required fee or assessment required by the health and welfare advisory board under RCW 48.62.051.

       NEW SECTION. Sec. 310. (1) The law enforcement officers' and fire fighters' medical benefits risk pool account is hereby established in the custody of the state treasurer. The account shall be invested by the Washington state investment board pursuant to section 7 of this act.

       (2) The account shall consist of such money as is directed by law for deposit in the account, and such other money not subject to appropriation that the law enforcement officers' and fire fighters' risk pool executive board authorizes to be deposited in the account. Any money deposited in the account, the use of which has been restricted by law, may only be expended in accordance with those restrictions.

       (3) Only the executive board or the board's designee may make disbursements from the account.

       NEW SECTION. Sec. 311. Sections 301 through 310 of this act constitute a new chapter in Title 41 RCW.

       Sec. 312. RCW 44.44.040 and 1987 c 25 s 3 are each amended to read as follows:

       The office of the state actuary shall have the following powers and duties:

       (1) Perform all actuarial services for the department of retirement systems, including all studies required by law, the state board for volunteer fire fighters and reserve officers, and the law enforcement officers' and fire fighters' risk pool executive board. Reimbursement for such services shall be made to the state actuary pursuant to the provisions of RCW 39.34.130 as now or hereafter amended.

       (2) Advise the legislature and the governor regarding pension benefit provisions, and funding policies and investment policies of the state investment board.

       (3) Consult with the legislature and the governor concerning determination of actuarial assumptions used by the department of retirement systems.

       (4) Prepare a report, to be known as the actuarial fiscal note, on each pension bill introduced in the legislature which briefly explains the financial impact of the bill. The actuarial fiscal note shall include: (a) The statutorily required contribution for the biennium and the following twenty-five years; (b) the biennial cost of the increased benefits if these exceed the required contribution; and (c) any change in the present value of the unfunded accrued benefits. An actuarial fiscal note shall also be prepared for all amendments which are offered in committee or on the floor of the house of representatives or the senate to any pension bill. However, a majority of the members present may suspend the requirement for an actuarial fiscal note for amendments offered on the floor of the house of representatives or the senate.

       (5) Provide such actuarial services to the legislature as may be requested from time to time.

       (6) Provide staff and assistance to the committee established under ((RCW 46.44.050)) RCW 44.44.050.

       (7) Provide assistance as required under section 305 of this act.

       Sec. 313. RCW 48.62.031 and 1991 sp.s. c 30 s 3 are each amended to read as follows:

       (1) The governing body of a local government entity may individually self-insure, may join or form a self-insurance program together with other entities, and may jointly purchase insurance or reinsurance with other entities for property and liability risks, and health and welfare benefits only as permitted under this chapter. In addition, the entity or entities may contract for or hire personnel to provide risk management, claims, and administrative services in accordance with this chapter.

       (2) The governing body of a local government entity individually may join or form a risk assumption program together with other entities, and may jointly purchase insurance or reinsurance with other entities for health and welfare benefits. In addition, the entity or entities may contract for or hire personnel to provide risk management, claims, and administrative services in accordance with this chapter.

       (3) The agreement to form a joint self-insurance or risk assumption program shall be made under chapter 39.34 RCW.

       (((3))) (4) Every individual and joint self-insurance program and a health and welfare risk assumption program is subject to audit by the state auditor.

       (((4))) (5) If provided for in the agreement or contract established under chapter 39.34 RCW, a joint self-insurance or risk assumption program may, in conformance with this chapter:

       (a) Contract or otherwise provide for risk management and loss control services;

       (b) Contract or otherwise provide legal counsel for the defense of claims and other legal services;

       (c) Consult with the state insurance commissioner and the state risk manager;

       (d) Jointly purchase insurance and reinsurance coverage in such form and amount as the program's participants agree by contract; and

       (e) Possess any other powers and perform all other functions reasonably necessary to carry out the purposes of this chapter.

       (((5))) (6) A local government entity or a health and welfare risk assumption program that has decided to assume a risk of loss must have available for inspection by the state auditor a written report indicating the class of risk or risks the governing body of the entity has decided to assume.

       (((6))) (7) Every joint self-insurance or risk assumption program governed by this chapter shall appoint the risk manager as its attorney to receive service of, and upon whom shall be served, all legal process issued against it in this state upon causes of action arising in this state.

       (a) Service upon the risk manager as attorney shall constitute service upon the program. Service upon joint insurance programs subject to chapter 30, Laws of 1991 1st sp. sess. can be had only by service upon the risk manager. At the time of service, the plaintiff shall pay to the risk manager a fee to be set by the risk manager, taxable as costs in the action.

       (b) With the initial filing for approval with the risk manager, each joint self-insurance program shall designate by name and address the person to whom the risk manager shall forward legal process so served upon him or her. The joint self-insurance program may change such person by filing a new designation.

       (c) The appointment of the risk manager as attorney shall be irrevocable, shall bind any successor in interest or to the assets or liabilities of the joint self-insurance program, and shall remain in effect as long as there is in force in this state any contract made by the joint self-insurance program or liabilities or duties arising therefrom.

       (d) The risk manager shall keep a record of the day and hour of service upon him or her of all legal process. A copy of the process, by registered mail with return receipt requested, shall be sent by the risk manager, to the person designated for the purpose by the joint self-insurance or risk assumption program in its most recent such designation filed with the risk manager. No proceedings shall be had against the joint self-insurance or risk assumption program, and the program shall not be required to appear, plead, or answer, until the expiration of forty days after the date of service upon the risk manager.

       Sec. 314. RCW 48.62.051 and 1991 sp.s. c 30 s 5 are each amended to read as follows:

       (1) The health and welfare advisory board is created consisting of the insurance commissioner and the state risk manager, or their designees, as ex officio members and six members appointed by the governor on the basis of their experience and knowledge pertaining to local government self-insured health and welfare benefits programs. The board shall include one city management representative; one county management representative; two management representatives from local government self-insured health and welfare programs; and two representatives of statewide employee organizations representing local government employees.

       (2) The board shall assist the state risk manager in:

       (a) Adopting rules governing the operation and management of both individual and joint self-insured health and welfare benefits programs and the law enforcement officers' and fire fighters' medical benefits risk pool;

       (b) Reviewing and approving the creation of both individual and joint self-insured health and welfare benefits programs;

       (c) Reviewing annual reports filed by health and welfare benefits programs and in recommending that corrective action be taken by the programs when necessary; and

       (d) Responding to concerns of the state auditor related to the management and operation of health and welfare benefits programs.

       (3) The board shall annually elect a chair and a vice-chair from its members. The board shall meet at least quarterly at such times as the state risk manager may fix. The board members who are appointed shall serve without compensation from the state but shall suffer no loss because of absence from their regular employment. Members of the board who are not public employees shall be compensated in accordance with RCW 43.03.240.

       (4) A majority of the board constitutes a quorum for the transaction of business.

       (5) The board shall keep public records of its proceedings.


PART IV

MISCELLANEOUS AMENDATORY SECTIONS


       Sec. 401. RCW 2.10.155 and 1990 c 274 s 14 are each amended to read as follows:

       (1) No judge shall be eligible to receive the judge's monthly service or disability retirement allowance if the retired judge is employed:

       (a) For more than eight hundred ten hours in a calendar year as a pro tempore judge; or

       (b) In an eligible position as defined in RCW 41.40.010 or 41.32.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030 or section 202 of this act.

       (2) Subsection (1) of this section notwithstanding, a previously elected judge of the superior court who retired before June 7, 1990, leaving a pending case in which the judge had made discretionary rulings may hear the pending case as a judge pro tempore without having his or her retirement allowance suspended.

       (3) If a retired judge's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retired judge's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

       (4) The department shall adopt rules implementing this section.

       Sec. 402. RCW 6.15.020 and 1999 c 81 s 1 and 1999 c 42 s 603 are each reenacted and amended to read as follows:

       (1) It is the policy of the state of Washington to ensure the well-being of its citizens by protecting retirement income to which they are or may become entitled. For that purpose generally and pursuant to the authority granted to the state of Washington under 11 U.S.C. Sec. 522(b)(2), the exemptions in this section relating to retirement benefits are provided.

       (2) Unless otherwise provided by federal law, any money received by any citizen of the state of Washington as a pension from the government of the United States, whether the same be in the actual possession of such person or be deposited or loaned, shall be exempt from execution, attachment, garnishment, or seizure by or under any legal process whatever, and when a debtor dies, or absconds, and leaves his or her family any money exempted by this subsection, the same shall be exempt to the family as provided in this subsection. This subsection shall not apply to child support collection actions issued under chapter 26.18, 26.23, or 74.20A RCW, if otherwise permitted by federal law.

       (3) The right of a person to a pension, annuity, or retirement allowance or disability allowance, or death benefits, or any optional benefit, or any other right accrued or accruing to any citizen of the state of Washington under any employee benefit plan, and any fund created by such a plan or arrangement, shall be exempt from execution, attachment, garnishment, or seizure by or under any legal process whatever. This subsection shall not apply to child support collection actions issued under chapter 26.18, 26.23, or 74.20A RCW if otherwise permitted by federal law. This subsection shall permit benefits under any such plan or arrangement to be payable to a spouse, former spouse, child, or other dependent of a participant in such plan to the extent expressly provided for in a qualified domestic relations order that meets the requirements for such orders under the plan, or, in the case of benefits payable under a plan described in sections 403(b) or 408 of the internal revenue code of 1986, as amended, or section 409 of such code as in effect before January 1, 1984, to the extent provided in any order issued by a court of competent jurisdiction that provides for maintenance or support. This subsection shall not prohibit actions against an employee benefit plan, or fund for valid obligations incurred by the plan or fund for the benefit of the plan or fund.

       (4) For the purposes of this section, the term "employee benefit plan" means any plan or arrangement that is described in RCW 49.64.020, including any Keogh plan, whether funded by a trust or by an annuity contract, and in sections 401(a) or 403(a) of the internal revenue code of 1986, as amended; or that is a tax-sheltered annuity described in section 403(b) of such code or an individual retirement account described in section 408 of such code; or a Roth individual retirement account described in section 408A of such code; or a medical savings account described in section 220 of such code; or an education individual retirement account described in section 530 of such code; or a retirement bond described in section 409 of such code as in effect before January 1, 1984. The term "employee benefit plan" also means any rights accruing on account of money paid currently or in advance for purchase of tuition units under the advanced college tuition payment program in chapter 28B.95 RCW. The term "employee benefit plan" shall not include any employee benefit plan that is established or maintained for its employees by the government of the United States, by the state of Washington under chapter 2.10, 2.12, 41.26, 41.26A, 41.32, 41.34, 41.35, 41.40 or 43.43 RCW or RCW 41.50.770, or by any agency or instrumentality of the government of the United States.

       (5) An employee benefit plan shall be deemed to be a spendthrift trust, regardless of the source of funds, the relationship between the trustee or custodian of the plan and the beneficiary, or the ability of the debtor to withdraw or borrow or otherwise become entitled to benefits from the plan before retirement. This subsection shall not apply to child support collection actions issued under chapter 26.18, 26.23, or 74.20A RCW, if otherwise permitted by federal law. This subsection shall permit benefits under any such plan or arrangement to be payable to a spouse, former spouse, child, or other dependent of a participant in such plan to the extent expressly provided for in a qualified domestic relations order that meets the requirements for such orders under the plan, or, in the case of benefits payable under a plan described in sections 403(b) or 408 of the internal revenue code of 1986, as amended, or section 409 of such code as in effect before January 1, 1984, to the extent provided in any order issued by a court of competent jurisdiction that provides for maintenance or support.

       (6) Unless contrary to applicable federal law, nothing contained in subsection (3), (4), or (5) of this section shall be construed as a termination or limitation of a spouse's community property interest in an individual retirement account held in the name of or on account of the other spouse, the account holder spouse. At the death of the nonaccount holder spouse, the nonaccount holder spouse may transfer or distribute the community property interest of the nonaccount holder spouse in the account holder spouse's individual retirement account to the nonaccount holder spouse's estate, testamentary trust, inter vivos trust, or other successor or successors pursuant to the last will of the nonaccount holder spouse or the law of intestate succession, and that distributee may, but shall not be required to, obtain an order of a court of competent jurisdiction, including a nonjudicial dispute resolution agreement entered into pursuant to RCW 11.96.170 or other order entered under chapter 11.96A RCW, to confirm the distribution. For purposes of subsection (3) of this section, the distributee of the nonaccount holder spouse's community property interest in an individual retirement account shall be considered a person entitled to the full protection of subsection (3) of this section. The nonaccount holder spouse's consent to a beneficiary designation by the account holder spouse with respect to an individual retirement account shall not, absent clear and convincing evidence to the contrary, be deemed a release, gift, relinquishment, termination, limitation, or transfer of the nonaccount holder spouse's community property interest in an individual retirement account. For purposes of this subsection, the term "nonaccount holder spouse" means the spouse of the person in whose name the individual retirement account is maintained. The term "individual retirement account" includes an individual retirement account and an individual retirement annuity both as described in section 408 of the internal revenue code of 1986, as amended, a Roth individual retirement account as described in section 408A of the internal revenue code of 1986, as amended, and an individual retirement bond as described in section 409 of the internal revenue code as in effect before January 1, 1984. As used in this subsection, an order of a court of competent jurisdiction includes an agreement, as that term is used under RCW 11.96A.220.

       Sec. 403. RCW 26.09.138 and 1991 c 365 s 24 are each amended to read as follows:

       (1) Any obligee of a court order or decree establishing a spousal maintenance obligation may seek a mandatory benefits assignment order under chapter 41.50 RCW if any spousal maintenance payment is more than fifteen days past due and the total of such past due payments is equal to or greater than one hundred dollars, or if the obligor requests a withdrawal of accumulated contributions from the department of retirement systems.

       (2) Any court order or decree establishing a spousal maintenance obligation may state that, if any spousal maintenance payment is more than fifteen days past due and the total of such past due payments is equal to or greater than one hundred dollars, or if the obligor requests a withdrawal of accumulated contributions from the department of retirement systems, the obligee may seek a mandatory benefits assignment order under chapter 41.50 RCW without prior notice to the obligor. Any such court order or decree may also, or in the alternative, contain a provision that would allow the department to make a direct payment of all or part of a withdrawal of accumulated contributions pursuant to RCW 41.50.550(3). Failure to include this provision does not affect the validity of the court order or decree establishing the spousal maintenance, nor does such failure affect the general applicability of RCW 41.50.500 through 41.50.650 to such obligations.

       (3) The remedies in RCW 41.50.530 through 41.50.630 are the exclusive provisions of law enforceable against the department of retirement systems in connection with any action for enforcement of a spousal maintenance obligation ordered pursuant to a divorce, dissolution, or legal separation, and no other remedy ordered by a court under this chapter shall be enforceable against the department of retirement systems for collection of spousal maintenance.

       (4)(a) Nothing in this section regarding mandatory assignment of benefits to enforce a spousal maintenance obligation shall abridge the right of an ex spouse to receive direct payment of retirement benefits payable pursuant to: (i) A court decree of dissolution or legal separation; or (ii) any court order or court-approved property settlement agreement; or (iii) incident to any court decree of dissolution or legal separation, if such dissolution orders fully comply with RCW 41.50.670 and 41.50.700, or as applicable, RCW 2.10.180, 2.12.090, 41.04.310, 41.04.320, 41.04.330, ((41.26.180)) 41.26.053, section 209 of this act, 41.32.052, 41.40.052, or 43.43.310 as those statutes existed before July 1, 1987, and as those statutes exist on and after July 28, 1991.

       (b) Persons whose dissolution orders as defined in RCW 41.50.500(3) were entered between July 1, 1987, and July 28, 1991, shall be entitled to receive direct payments of retirement benefits to satisfy court-ordered property divisions if the dissolution orders filed with the department comply or are amended to comply with RCW 41.50.670 through 41.50.720 and, as applicable, RCW 2.10.180, 2.12.090, ((41.26.180)) 41.26.053, section 209 of this act, 41.32.052, 41.40.052, or 43.43.310.

       Sec. 404. RCW 36.28A.010 and 1975 1st ex.s. c 172 s 1 are each amended to read as follows:

       The Washington association of sheriffs and police chiefs is hereby declared to be a combination of units of local government: PROVIDED, That such association shall not be considered an "employer" within the meaning of RCW 41.26.030(2), section 202 of this act, or 41.40.010(4): PROVIDED FURTHER, That no compensation received as an employee of the association shall be considered salary for purposes of the provisions of any retirement system created pursuant to the general laws of this state: PROVIDED FURTHER, That such association shall not qualify for inclusion under the unallocated two mills of the property tax of any political subdivision: PROVIDED FURTHER, That the association shall not have the authority to assess any excess levy or bond measure.

       Sec. 405. RCW 41.04.205 and 1995 1st sp.s. c 6 s 8 are each amended to read as follows:

       (1) Notwithstanding the provisions of RCW 41.04.180, the employees, with their dependents, of any county, municipality, or other political subdivision of this state shall be eligible to participate in any insurance or self-insurance program for employees administered under chapter 41.05 RCW if the legislative authority of any such county, municipality, or other political subdivisions of this state determines, subject to collective bargaining under applicable statutes, a transfer to an insurance or self-insurance program administered under chapter 41.05 RCW should be made. In the event of a special district employee transfer pursuant to this section, members of the governing authority shall be eligible to be included in such transfer if such members are authorized by law as of June 25, 1976, to participate in the insurance program being transferred from and subject to payment by such members of all costs of insurance for members.

       (2) When the legislative authority of a county, municipality, or other political subdivision determines to so transfer, the state health care authority shall:

       (a) Establish the conditions for participation; and

       (b) Have the sole right to reject the application.

       Approval of the application by the state health care authority shall effect a transfer of the employees involved to the insurance, self-insurance, or health care program applied for.

       (3) Any application of this section to members of the law enforcement officers' and fire fighters' retirement system under chapter 41.26 or 41.26A RCW is subject to chapter 41.56 RCW.

       (4) School districts may voluntarily transfer, except that all eligible employees in a bargaining unit of a school district may transfer only as a unit and all nonrepresented employees in a district may transfer only as a unit.

       Sec. 406. RCW 41.04.270 and 1988 c 195 s 5 are each amended to read as follows:

       (1) Notwithstanding any provision of chapter 2.10, 2.12, 41.26, 41.26A, 41.28, 41.32, 41.40, or 43.43 RCW to the contrary, on and after March 19, 1976, any member or former member who (a) receives a retirement allowance earned by said former member as deferred compensation from any public retirement system authorized by the general laws of this state, or (b) is eligible to receive a retirement allowance from any public retirement system listed in RCW 41.50.030, but chooses not to apply, or (c) is the beneficiary of a disability allowance from any public retirement system listed in RCW 41.50.030 shall be estopped from becoming a member of or accruing any contractual rights whatsoever in any other public retirement system listed in RCW 41.50.030: PROVIDED, That (a) and (b) of this subsection shall not apply to persons who have accumulated less than fifteen years service credit in any such system.

       (2) Nothing in this section is intended to apply to any retirement system except those listed in RCW 41.50.030 and the city employee retirement systems for Seattle, Tacoma, and Spokane. Subsection (1)(b) of this section does not apply to a dual member as defined in RCW 41.54.010.

       Sec. 407. RCW 41.04.350 and 1979 ex.s. c 159 s 1 are each amended to read as follows:

       (1) Notwithstanding any other provisions of law, no employee of the state of Washington or any of its political subdivisions or any institution supported in total or in part by the state or any of its political subdivisions, other than employees covered by chapters 41.26, 41.26A, and 43.43 RCW, shall be compelled to retire solely on the basis of age prior to attaining seventy years of age.

       (2) All compulsory retirement provisions relating to public employees, other than employees covered by chapters 41.26, 41.26A, and 43.43 RCW, may be waived for individuals attaining seventy years of age by the individual's employer.

       Sec. 408. RCW 41.04.400 and 1984 c 184 s 22 are each amended to read as follows:

       It is the purpose of RCW 41.04.405 through 41.04.430 to govern the retirement rights of persons whose employment status is altered when: (1) Two or more units of local government of this state, at least one of which is a first class city with its own retirement system, enter into an agreement for the consolidated performance of a governmental service, activity, or undertaking; (2) the service, activity, or undertaking is to be performed either by one of the participating local governmental units or by a newly established separate legal entity; and (3) the employees of the participating local governmental units are not all members of the same Washington public retirement system.

       RCW 41.04.405 through 41.04.430 are not intended to and do not govern retirement rights of any members of the retirement systems established by chapter 41.16, 41.18, 41.20, ((or)) 41.26, or 41.26A RCW, or of employees described in RCW 35.58.265, 35.58.390, or 70.08.070. To the extent there is any conflict between RCW 41.04.405 through 41.04.430 and RCW 41.04.110, the provisions of RCW 41.04.405 through 41.04.430 shall govern.

       Sec. 409. RCW 41.05.320 and 1995 1st sp.s. c 6 s 13 are each amended to read as follows:

       (1) Elected officials and all permanent employees of the state are eligible to participate in the benefits contribution plan and contribute amount(s) by agreement with the authority. The authority may adopt rules to permit participation in the plan by temporary employees of the state.

       (2) Persons eligible under subsection (1) of this section may enter into benefits contribution agreements with the state.

       (3)(a) In the initial year of the medical flexible spending arrangement or cafeteria plan, if authorized, an eligible person may become a participant after the adoption of the plan and before its effective date by agreeing to have a portion of his or her gross salary contributed and deposited into a health care and other benefits account to be used for reimbursement of expenses covered by the plan.

       (b) After the initial year of the medical flexible spending arrangement or cafeteria plan, if authorized, an eligible person may become a participant for a full plan year, with annual benefit selection for each new plan year made before the beginning of the plan year, as determined by the authority, or upon becoming eligible.

       (c) Once an eligible person elects to participate and the amount of gross salary that he or she shall contribute and the benefit for which the funds are to be used during the plan year is determined, the agreement shall be irrevocable and may not be amended during the plan year except as provided in (d) of this subsection. Prior to making an election to participate in the ((benefit[s])) benefits contribution plan, the eligible person shall be informed in writing of all the benefits and contributions that will occur as a result of such election.

       (d) The authority shall provide in the benefits contribution plan that a participant may enroll, terminate, or change his or her election after the plan year has begun if there is a significant change in a participant's status, as provided by 26 U.S.C. Sec. 125 and the regulations adopted under that section and defined by the authority.

       (4) The authority shall establish as part of the benefits contribution plan the procedures for and effect of withdrawal from the plan by reason of retirement, death, leave of absence, or termination of employment. To the extent possible under federal law, the authority shall protect participants from forfeiture of rights under the plan.

       (5) Any contribution under the benefits contribution plan shall continue to be included as reportable compensation for the purpose of computing the state retirement and pension benefits earned by the employee pursuant to chapters 41.26, 41.26A, 41.32, 41.40, and 43.43 RCW.

       Sec. 410. RCW 41.18.210 and 1974 ex.s. c 148 s 1 are each amended to read as follows:

       Any former employee of a department of a city of the first class, who (1) was a member of the employees' retirement system of such city, and (2) is now employed within the fire department of such city, may transfer his former membership credit from the city employees' retirement system to the fireman's pension system created by chapters 41.16 and 41.18 RCW by filing a written request with the board of administration and the municipal fireman's pension board, respectively.

       Upon the receipt of such request, the transfer of membership to the city's fireman's pension system shall be made, together with a transfer of all accumulated contributions credited to such member. The board of administration shall transmit to the municipal fireman's pension board a record of service credited to such member which shall be computed and credited to such member as a part of his period of employment in the city's fireman's pension system. For the purpose of the transfer contemplated by this section, those affected individuals who have formerly withdrawn funds from the city employees' retirement system shall be allowed to restore contributions withdrawn from that retirement system directly to the fireman's pension system and receive credit in the fireman's pension system for their former membership service in the prior system.

       Any employee so transferring shall have all the rights, benefits, and privileges that he would have been entitled to had he been a member of the city's fireman's pension system from the beginning of his employment with the city.

       No person so transferring shall thereafter be entitled to any other public pension, except that provided by chapter 41.26 or 41.26A RCW or social security, which is based upon such service with the city.

       The right of any employee to file a written request for transfer of membership as set forth in this section shall expire December 31, 1974.

       Sec. 411. RCW 41.20.170 and 1973 c 143 s 2 are each amended to read as follows:

       Any former employee of a department of a city of the first class who (1) was a member of the employees' retirement system of such city, and (2) is now employed within the police department of such city, may transfer his or her membership from the city employees' retirement system to the city's police relief and pension fund system by filing a written request with the board of administration and the board of trustees, respectively, of the two systems.

       Upon the receipt of such request, the transfer of membership to the city's police relief and pension fund system shall be made, together with a transfer of all accumulated contributions credited to such member. The board of administration of the city's employees' retirement system shall transmit to the board of trustees of the city's police relief and pension fund system a record of service credited to such member which shall be computed and credited to such member as a part of his or her period of employment in the city's police relief and pension fund system. For the purpose of the transfer contemplated by this section, the affected individuals shall be allowed to restore withdrawn contributions to the city employees' retirement system and reinstate their membership service records.

       Any employee so transferring shall have all the rights, benefits and privileges that he or she would have been entitled to had he or she been a member of the city's police relief and pension fund system from the beginning of his or her employment with the city.

       No person so transferring shall thereafter be entitled to any other public pension, except that provided by chapter 41.26 or 41.26A RCW or social security, which is based upon service with the city.

       The right of any employee to file a written request for transfer of membership as set forth herein shall expire December 31, 1973.

       Sec. 412. RCW 41.20.175 and 1974 ex.s. c 148 s 2 are each amended to read as follows:

       A former employee of a fire department of a city of the first class who (1) was a member of the fireman's pension system created by chapters 41.16 or 41.18 RCW, and (2) is now employed within the police department of such city, will be regarded as having received membership service credit for such service to the fire department in the city's police and relief pension system at the time he recovers such service credit by paying withdrawn contributions to the Washington law enforcement officers' and fire fighters' retirement system pursuant to RCW 41.26.030(((14))) or section 202 of this act.

       Sec. 413. RCW 41.24.400 and 1999 c 148 s 31 are each amended to read as follows:

       (1) Except as provided in subsection (2) of this section, any municipality may make provision by appropriate legislation and payment of fees required by RCW 41.24.030(1) solely for the purpose of enabling any reserve officer to enroll under the retirement pension provisions of this chapter or fees required under RCW 41.24.030(1) to pay for the costs of extending the relief provisions of this chapter to its reserve officers.

       (2) A reserve officer is not eligible to receive a benefit under the retirement provisions of this chapter for service under chapter 41.26, 41.26A, 41.32, or 41.40 RCW.

       (3) Every municipality shall make provisions for the collection and payment of the fees required under this chapter, and shall continue to make provisions for all reserve officers who come under this chapter as long as they continue to be employed as reserve officers.

       (4) Except as provided under RCW 41.24.450, a reserve officer is not eligible to receive a benefit under the relief provisions of this chapter.

       Sec. 414. RCW 41.32.800 and 1998 c 341 s 605 are each amended to read as follows:

       (1) Except as provided in RCW 41.32.802, no retiree under the provisions of plan 2 shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010, 41.32.010, or 41.35.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030 or section 202 of this act.

       If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

       (2) The department shall adopt rules implementing this section.

       Sec. 415. RCW 41.32.860 and 1997 c 254 s 7 are each amended to read as follows:

       (1) Except under RCW 41.32.862, no retiree shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010 or 41.32.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030 or section 202 of this act.

       (2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused the suspension of benefits. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

       Sec. 416. RCW 41.35.230 and 1998 c 341 s 24 are each amended to read as follows:

       (1) Except as provided in RCW 41.35.060, no retiree under the provisions of plan 2 shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.35.010, RCW 41.40.010 or 41.32.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030 or section 202 of this act, except that a retiree who ends his or her membership in the retirement system pursuant to RCW 41.40.023(3)(b) is not subject to this section if the retiree's only employment is as an elective official.

       (2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

       (3) The department shall adopt rules implementing this section.

       Sec. 417. RCW 41.40.690 and 1998 c 341 s 606 are each amended to read as follows:

       (1) Except as provided in RCW 41.40.037, no retiree under the provisions of plan 2 shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010, 41.32.010, or 41.35.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030 or section 202 of this act, except that a retiree who ends his or her membership in the retirement system pursuant to RCW 41.40.023(3)(b) is not subject to this section if the retiree's only employment is as an elective official of a city or town.

       (2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

       (3) The department shall adopt rules implementing this section.

       Sec. 418. RCW 41.40.850 and 2000 c 247 s 315 are each amended to read as follows:

       (1) Except as provided in RCW 41.40.037, no retiree under the provisions of plan 3 shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010, 41.32.010, or 41.35.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030 or section 202 of this act, except that a retiree who ends his or her membership in the retirement system pursuant to RCW 41.40.023(3)(b) is not subject to this section if the retiree's only employment is as an elective official of a city or town.

       (2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

       (3) The department shall adopt rules implementing this section.

       Sec. 419. RCW 41.45.010 and 1998 c 341 s 401 are each amended to read as follows:

       It is the intent of the legislature to provide a dependable and systematic process for funding the benefits provided to members and retirees of the public employees' retirement system, chapter 41.40 RCW; the teachers' retirement system, chapter 41.32 RCW; the law enforcement officers' and fire fighters' retirement systems, chapter 41.26 and 41.26A RCW; the school employees' retirement system, chapter 41.35 RCW; and the Washington state patrol retirement system, chapter 43.43 RCW.

       The funding processes established by this chapter ((is)) are intended to achieve the following goals:

       (1) To continue to fully fund the public employees' retirement system plan 2, the teachers' retirement system plans 2 and 3, the school employees' retirement system plans 2 and 3, and the law enforcement officers' and fire fighters' retirement system plan 2 as provided by law;

       (2) To fully amortize the total costs of the public employees' retirement system plan 1((,)) and the teachers' retirement system plan 1((, and the law enforcement officers' and fire fighters' retirement system plan 1)) not later than June 30, 2024;

       (3) To maintain the sound actuarially funding of the restated law enforcement officers' and fire fighters' retirement system;

       (4) To enable taxpayers and retirement system members to benefit from favorable actuarial experience and investment returns by means of contribution rate reductions for plan 2 members and employers, and by a return of surplus assets from the termination of the law enforcement officers' and fire fighters' retirement system plan 1 to employees, employers, and the state;

       (5) To establish predictable long-term employer contribution rates which will remain a relatively constant proportion of the future state budgets; and

       (((4))) (6) To fund, to the extent feasible, benefit increases for plan 1 members and all benefits for plan 2 and 3 members over the working lives of those members so that the cost of those benefits are paid by the taxpayers who receive the benefit of those members' service.

       Sec. 420. RCW 41.45.010 and 2000 c 247 s 501 are each amended to read as follows:

       It is the intent of the legislature to provide a dependable and systematic process for funding the benefits provided to members and retirees of the public employees' retirement system, chapter 41.40 RCW; the teachers' retirement system, chapter 41.32 RCW; the law enforcement officers' and fire fighters' retirement systems, chapter 41.26 and 41.26A RCW; the school employees' retirement system, chapter 41.35 RCW; and the Washington state patrol retirement system, chapter 43.43 RCW.

       The funding processes established by this chapter ((is)) are intended to achieve the following goals:

       (1) To continue to fully fund the public employees' retirement system plans 2 and 3, the teachers' retirement system plans 2 and 3, the school employees' retirement system plans 2 and 3, and the law enforcement officers' and fire fighters' retirement system plan 2 as provided by law;

       (2) To fully amortize the total costs of the public employees' retirement system plan 1((,)) and the teachers' retirement system plan 1((, and the law enforcement officers' and fire fighters' retirement system plan 1)) not later than June 30, 2024;

       (3) To maintain the sound actuarial funding of the restated law enforcement officers' and fire fighters' retirement system;

       (4) To enable taxpayers and retirement system members to benefit from favorable actuarial experience and investment returns by means of contribution rate reductions for plan 2 members and employers, and by a return of surplus assets from the termination of the law enforcement officers' and fire fighters' retirement system plan 1 to employees, employers, and the state;

       (5) To establish predictable long-term employer contribution rates which will remain a relatively constant proportion of the future state budgets; and

       (((4))) (6) To fund, to the extent feasible, benefit increases for plan 1 members and all benefits for plan 2 and 3 members over the working lives of those members so that the cost of those benefits are paid by the taxpayers who receive the benefit of those members' service.

       Sec. 421. RCW 41.45.020 and 1998 c 341 s 402 and 1998 c 283 s 1 are each reenacted and amended to read as follows:

       As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

       (1) "Council" means the pension funding council created in RCW 41.45.100.

       (2) "Department" means the department of retirement systems.

       (3) "Restated law enforcement officers' and fire fighters' retirement system ((plan 1))" and "law enforcement officers' and fire fighters' retirement system plan 2" mean the benefits and funding provisions under chapter 41.26A and 41.26 RCW, respectively.

       (4) "Public employees' retirement system plan 1" and "public employees' retirement system plan 2" mean the benefits and funding provisions under chapter 41.40 RCW.

       (5) "Teachers' retirement system plan 1," "teachers' retirement system plan 2," and "teachers' retirement system plan 3" mean the benefits and funding provisions under chapter 41.32 RCW.

       (6) "School employees' retirement system plan 2" and "school employees' retirement system plan 3" mean the benefits and funding provisions under chapter 41.35 RCW.

       (7) "Washington state patrol retirement system" means the retirement benefits provided under chapter 43.43 RCW.

       (8) "Unfunded liability" means the unfunded actuarial accrued liability of a retirement system.

       (9) "Actuary" or "state actuary" means the state actuary employed under chapter 44.44 RCW.

       (10) "State retirement systems" means the retirement systems listed in RCW 41.50.030.

       (11) "Work group" means the pension funding work group created in RCW 41.45.120.

       (12) "Classified employee" means a member of the Washington school employees' retirement system plan 2 or plan 3 as defined in RCW 41.35.010.

       (13) "Teacher" means a member of the teachers' retirement system as defined in RCW 41.32.010(15).

       Sec. 422. RCW 41.45.020 and 2000 c 247 s 502 are each amended to read as follows:

       As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

       (1) "Council" means the pension funding council created in RCW 41.45.100.

       (2) "Department" means the department of retirement systems.

       (3) "Restated law enforcement officers' and fire fighters' retirement system ((plan 1))" and "law enforcement officers' and fire fighters' retirement system plan 2" mean the benefits and funding provisions under chapter 41.26A and 41.26 RCW, respectively.

       (4) "Public employees' retirement system plan 1," "public employees' retirement system plan 2," and "public employees' retirement system plan 3" mean the benefits and funding provisions under chapter 41.40 RCW.

       (5) "Teachers' retirement system plan 1," "teachers' retirement system plan 2," and "teachers' retirement system plan 3" mean the benefits and funding provisions under chapter 41.32 RCW.

       (6) "School employees' retirement system plan 2" and "school employees' retirement system plan 3" mean the benefits and funding provisions under chapter 41.35 RCW.

       (7) "Washington state patrol retirement system" means the retirement benefits provided under chapter 43.43 RCW.

       (8) "Unfunded liability" means the unfunded actuarial accrued liability of a retirement system.

       (9) "Actuary" or "state actuary" means the state actuary employed under chapter 44.44 RCW.

       (10) "State retirement systems" means the retirement systems listed in RCW 41.50.030.

       (11) "Work group" means the pension funding work group created in RCW 41.45.120.

       (12) "Classified employee" means a member of the Washington school employees' retirement system plan 2 or plan 3 as defined in RCW 41.35.010.

       (13) "Teacher" means a member of the teachers' retirement system as defined in RCW 41.32.010(15).

       Sec. 423. RCW 41.45.050 and 1998 c 341 s 403 are each amended to read as follows:

       (1) Employers of members of the public employees' retirement system, the teachers' retirement system, the school employees' retirement system, and the Washington state patrol retirement system shall make contributions to those systems based on the rates established in RCW 41.45.060 and 41.45.070.

       (2) The state shall make contributions to the law enforcement officers' and fire fighters' retirement system plan 2 based on the rates established in RCW 41.45.060 and 41.45.070. The state treasurer shall transfer the required contributions each month on the basis of salary data provided by the department. The state shall make contributions pursuant to section 5 of this act to maintain the sound actuarial status of the restated law enforcement officers' and fire fighters' defined benefit retirement plan.

       (3) The department shall bill employers, and the state shall make contributions to the law enforcement officers' and fire fighters' retirement system plan 2, using the combined rates established in RCW 41.45.060 and 41.45.070 regardless of the level of pension funding provided in the biennial budget. Any member of an affected retirement system may, by mandamus or other appropriate proceeding, require the transfer and payment of funds as directed in this section.

       (4) The contributions received for the public employees' retirement system shall be allocated between the public employees' retirement system plan 1 fund and public employees' retirement system plan 2 fund as follows: The contributions necessary to fully fund the public employees' retirement system plan 2 employer contribution required by RCW 41.40.650 shall first be deposited in the public employees' retirement system plan 2 fund. All remaining public employees' retirement system employer contributions shall be deposited in the public employees' retirement system plan 1 fund.

       (5) The contributions received for the teachers' retirement system shall be allocated between the plan 1 fund and the combined plan 2 and plan 3 fund as follows: The contributions necessary to fully fund the combined plan 2 and plan 3 employer contribution shall first be deposited in the combined plan 2 and plan 3 fund. All remaining teachers' retirement system employer contributions shall be deposited in the plan 1 fund.

       (6) The contributions received for the school employees' retirement system shall be allocated between the public employees' retirement system plan 1 fund and the school employees' retirement system combined plan 2 and plan 3 fund as follows: The contributions necessary to fully fund the combined plan 2 and plan 3 employer contribution shall first be deposited in the combined plan 2 and plan 3 fund. All remaining school employees' retirement system employer contributions shall be deposited in the public employees' retirement system plan 1 fund.

       (7) The contributions received under RCW 41.26.450 for the law enforcement officers' and fire fighters' retirement system shall be allocated ((between the law enforcement officers' and fire fighters' retirement system plan 1 and)) to the law enforcement officers' and fire fighters' retirement system plan 2 fund ((as follows: The contributions necessary to fully fund the law enforcement officers' and fire fighters' retirement system plan 2 employer contributions shall be first deposited in the law enforcement officers' and fire fighters' retirement system plan 2 fund. All remaining law enforcement officers' and fire fighters' retirement system employer contributions shall be deposited in the law enforcement officers' and fire fighters' retirement system plan 1 fund)).

       (8) The funding of the restated law enforcement officers' and fire fighters' defined benefit retirement plan shall be provided pursuant to section 5 of this act.

       Sec. 424. RCW 41.45.050 and 2000 c 247 s 503 are each amended to read as follows:

       (1) Employers of members of the public employees' retirement system, the teachers' retirement system, the school employees' retirement system, and the Washington state patrol retirement system shall make contributions to those systems based on the rates established in RCW 41.45.060 and 41.45.070.

       (2) The state shall make contributions to the law enforcement officers' and fire fighters' retirement system plan 2 based on the rates established in RCW 41.45.060 and 41.45.070. The state treasurer shall transfer the required contributions each month on the basis of salary data provided by the department. The state shall make contributions pursuant to section 5 of this act to maintain the sound actuarial status of the restated law enforcement officers' and fire fighters' defined benefit retirement plan.

       (3) The department shall bill employers, and the state shall make contributions to the law enforcement officers' and fire fighters' retirement system plan 2, using the combined rates established in RCW 41.45.060 and 41.45.070 regardless of the level of pension funding provided in the biennial budget. Any member of an affected retirement system may, by mandamus or other appropriate proceeding, require the transfer and payment of funds as directed in this section.

       (4) The contributions received for the public employees' retirement system shall be allocated between the public employees' retirement system plan 1 fund and the public employees' retirement system combined plan 2 and plan 3 fund as follows: The contributions necessary to fully fund the public employees' retirement system combined plan 2 and plan 3 employer contribution shall first be deposited in the public employees' retirement system combined plan 2 and plan 3 fund. All remaining public employees' retirement system employer contributions shall be deposited in the public employees' retirement system plan 1 fund.

       (5) The contributions received for the teachers' retirement system shall be allocated between the plan 1 fund and the combined plan 2 and plan 3 fund as follows: The contributions necessary to fully fund the combined plan 2 and plan 3 employer contribution shall first be deposited in the combined plan 2 and plan 3 fund. All remaining teachers' retirement system employer contributions shall be deposited in the plan 1 fund.

       (6) The contributions received for the school employees' retirement system shall be allocated between the public employees' retirement system plan 1 fund and the school employees' retirement system combined plan 2 and plan 3 fund as follows: The contributions necessary to fully fund the combined plan 2 and plan 3 employer contribution shall first be deposited in the combined plan 2 and plan 3 fund. All remaining school employees' retirement system employer contributions shall be deposited in the public employees' retirement system plan 1 fund.

       (7) The contributions received under RCW 41.45.060, 41.45.061, and 41.45.067 for the law enforcement officers' and fire fighters' retirement system shall be allocated ((between the law enforcement officers' and fire fighters' retirement system plan 1 and)) to the law enforcement officers' and fire fighters' retirement system plan 2 fund ((as follows: The contributions necessary to fully fund the law enforcement officers' and fire fighters' retirement system plan 2 employer contributions shall be first deposited in the law enforcement officers' and fire fighters' retirement system plan 2 fund. All remaining law enforcement officers' and fire fighters' retirement system employer contributions shall be deposited in the law enforcement officers' and fire fighters' retirement system plan 1 fund)).

       (8) The funding of the restated law enforcement officers' and fire fighters' defined benefit retirement plan shall be provided pursuant to section 5 of this act.

       Sec. 425. RCW 41.45.060 and 2000 2nd sp.s. c 1 s 905 and 2000 c 247 s 504 are each reenacted and amended to read as follows:

       (1) The state actuary shall provide actuarial valuation results based on the assumptions adopted under RCW 41.45.030.

       (2) Not later than September 30, 1998, and every two years thereafter, consistent with the assumptions adopted under RCW 41.45.030, the council shall adopt and may make changes to:

       (a) A basic state contribution rate for the law enforcement officers' and fire fighters' retirement system plan 2;

       (b) Basic employer contribution rates for the public employees' retirement system, the teachers' retirement system, and the Washington state patrol retirement system to be used in the ensuing biennial period; and

       (c) A basic employer contribution rate for the school employees' retirement system for funding the public employees' retirement system plan 1.

       For the 1999-2001 fiscal biennium, the rates adopted by the council shall be effective for the period designated in section 902, chapter 1, Laws of 2000 2nd sp. sess. and RCW 41.45.0602.

       (3) The employer and state contribution rates adopted by the council shall be the level percentages of pay that are needed:

       (a) To fully amortize the total costs of the public employees' retirement system plan 1, the teachers' retirement system plan 1, ((the law enforcement officers' and fire fighters' retirement system plan 1,)) and the unfunded liability of the Washington state patrol retirement system not later than June 30, 2024, except as provided in subsection (5) of this section;

       (b) To also continue to fully fund the public employees' retirement system plans 2 and 3, the teachers' retirement system plans 2 and 3, the school employees' retirement system plans 2 and 3, and the law enforcement officers' and fire fighters' retirement system plan 2 in accordance with RCW 41.45.061, 41.45.067, and this section; and

       (c) For the law enforcement officers' and fire fighters' system plan 2, the rate charged to employers, except as provided in RCW 41.26.450, shall be thirty percent of the cost of the retirement system and the rate charged to the state shall be twenty percent of the cost of the retirement system.

       (4) The aggregate actuarial cost method shall be used to calculate a combined plan 2 and 3 employer contribution rate.

       (5) An amount equal to the amount of extraordinary investment gains as defined in RCW 41.31.020 shall be used to shorten the amortization period for the public employees' retirement system plan 1 and the teachers' retirement system plan 1.

       (6) The council shall immediately notify the directors of the office of financial management and department of retirement systems of the state and employer contribution rates adopted.

       (7) The director of the department of retirement systems shall collect those rates adopted by the council.

       Sec. 426. RCW 41.45.070 and 1998 c 340 s 10 and 1998 c 341 s 406 are each reenacted and amended to read as follows:

       (1) In addition to the basic employer contribution rate established in RCW 41.45.060, the department shall also charge employers of public employees' retirement system, teachers' retirement system, school employees' retirement system, or Washington state patrol retirement system members an additional supplemental rate to pay for the cost of additional benefits, if any, granted to members of those systems. Except as provided in subsections (6) and (7) of this section, the supplemental contribution rates required by this section shall be calculated by the state actuary and shall be charged regardless of language to the contrary contained in the statute which authorizes additional benefits.

       (2) In addition to the basic state contribution rate established in RCW 41.45.060 for the law enforcement officers' and fire fighters' retirement system plan 2 the department shall also establish a supplemental rate to pay for the cost of additional benefits, if any, granted to members of the law enforcement officers' and fire fighters' retirement system plan 2. Except as provided in subsection (6) of this section, this supplemental rate shall be calculated by the state actuary and the state treasurer shall transfer the additional required contributions regardless of language to the contrary contained in the statute which authorizes the additional benefits.

       (3) The supplemental rate charged under this section to fund benefit increases provided to active members of the public employees' retirement system plan 1, the teachers' retirement system plan 1, ((the law enforcement officers' and fire fighters' retirement system plan 1,)) and Washington state patrol retirement system, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit not later than June 30, 2024.

       (4) The supplemental rate charged under this section to fund benefit increases provided to active and retired members of the public employees' retirement system plan 2, the teachers' retirement system plan 2 and plan 3, the school employees' retirement system plan 2 and plan 3, or the law enforcement officers' and fire fighters' retirement system plan 2, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit, as calculated under RCW 41.40.650 or 41.26.450, respectively.

       (5) The supplemental rate charged under this section to fund postretirement adjustments which are provided on a nonautomatic basis to current retirees shall be calculated as the percentage of pay needed to fund the adjustments as they are paid to the retirees. The supplemental rate charged under this section to fund automatic postretirement adjustments for active or retired members of the public employees' retirement system plan 1 and the teachers' retirement system plan 1 shall be calculated as the level percentage of pay needed to fund the cost of the automatic adjustments not later than June 30, 2024.

       (6) A supplemental rate shall not be charged to pay for the cost of additional benefits granted to members pursuant to chapter 340, Laws of 1998.

       (7) A supplemental rate shall not be charged to pay for the cost of additional benefits granted to members pursuant to chapter 41.31A RCW; section 309, chapter 341, Laws of 1998; or section 701, chapter 341, Laws of 1998.

       Sec. 427. RCW 41.45.070 and 2000 c 247 s 505 are each amended to read as follows:

       (1) In addition to the basic employer contribution rate established in RCW 41.45.060, the department shall also charge employers of public employees' retirement system, teachers' retirement system, school employees' retirement system, or Washington state patrol retirement system members an additional supplemental rate to pay for the cost of additional benefits, if any, granted to members of those systems. Except as provided in subsections (6) and (7) of this section, the supplemental contribution rates required by this section shall be calculated by the state actuary and shall be charged regardless of language to the contrary contained in the statute which authorizes additional benefits.

       (2) In addition to the basic state contribution rate established in RCW 41.45.060 for the law enforcement officers' and fire fighters' retirement system plan 2 the department shall also establish a supplemental rate to pay for the cost of additional benefits, if any, granted to members of the law enforcement officers' and fire fighters' retirement system plan 2. Except as provided in subsection (6) of this section, this supplemental rate shall be calculated by the state actuary and the state treasurer shall transfer the additional required contributions regardless of language to the contrary contained in the statute which authorizes the additional benefits.

       (3) The supplemental rate charged under this section to fund benefit increases provided to active members of the public employees' retirement system plan 1, the teachers' retirement system plan 1, ((the law enforcement officers' and fire fighters' retirement system plan 1,)) and Washington state patrol retirement system, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit not later than June 30, 2024.

       (4) The supplemental rate charged under this section to fund benefit increases provided to active and retired members of the public employees' retirement system plan 2 and plan 3, the teachers' retirement system plan 2 and plan 3, the school employees' retirement system plan 2 and plan 3, or the law enforcement officers' and fire fighters' retirement system plan 2, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit, as calculated under RCW 41.45.060, 41.45.061, or 41.45.067.

       (5) The supplemental rate charged under this section to fund postretirement adjustments which are provided on a nonautomatic basis to current retirees shall be calculated as the percentage of pay needed to fund the adjustments as they are paid to the retirees. The supplemental rate charged under this section to fund automatic postretirement adjustments for active or retired members of the public employees' retirement system plan 1 and the teachers' retirement system plan 1 shall be calculated as the level percentage of pay needed to fund the cost of the automatic adjustments not later than June 30, 2024.

       (6) A supplemental rate shall not be charged to pay for the cost of additional benefits granted to members pursuant to chapter 340, Laws of 1998.

       (7) A supplemental rate shall not be charged to pay for the cost of additional benefits granted to members pursuant to chapter 41.31A RCW; section 309, chapter 341, Laws of 1998; or section 701, chapter 341, Laws of 1998.

       Sec. 428. RCW 41.48.030 and 1971 ex.s. c 257 s 19 are each amended to read as follows:

       (1) The governor is hereby authorized to enter on behalf of the state into an agreement with the secretary of health, education, and welfare consistent with the terms and provisions of this chapter, for the purpose of extending the benefits of the federal old-age and survivors insurance system to employees of the state or any political subdivision not members of an existing retirement system, or to members of a retirement system established by the state or by a political subdivision thereof or by an institution of higher learning with respect to services specified in such agreement which constitute "employment" as defined in RCW 41.48.020. Such agreement may contain such provisions relating to coverage, benefits, contributions, effective date, modification and termination of the agreement, administration, and other appropriate provisions as the governor and secretary of health, education, and welfare shall agree upon, but, except as may be otherwise required by or under the social security act as to the services to be covered, such agreement shall provide in effect that--

       (a) Benefits will be provided for employees whose services are covered by the agreement (and their dependents and survivors) on the same basis as though such services constituted employment within the meaning of title II of the social security act;

       (b) The state will pay to the secretary of the treasury, at such time or times as may be prescribed under the social security act, contributions with respect to wages (as defined in RCW 41.48.020), equal to the sum of the taxes which would be imposed by the federal insurance contributions act if the services covered by the agreement constituted employment within the meaning of that act;

       (c) Such agreement shall be effective with respect to services in employment covered by the agreement or modification thereof performed after a date specified therein but in no event may it be effective with respect to any such services performed prior to the first day of the calendar year immediately preceding the calendar year in which such agreement or modification of the agreement is accepted by the secretary of health, education and welfare.

       (d) All services which constitute employment as defined in RCW 41.48.020 and are performed in the employ of the state by employees of the state, shall be covered by the agreement;

       (e) All services which (i) constitute employment as defined in RCW 41.48.020, (ii) are performed in the employ of a political subdivision of the state, and (iii) are covered by a plan which is in conformity with the terms of the agreement and has been approved by the governor under RCW 41.48.050, shall be covered by the agreement; and

       (f) As modified, the agreement shall include all services described in either paragraph (d) or paragraph (e) of this subsection and performed by individuals to whom section 218(c)(3)(C) of the social security act is applicable, and shall provide that the service of any such individual shall continue to be covered by the agreement in case he thereafter becomes eligible to be a member of a retirement system; and

       (g) As modified, the agreement shall include all services described in either paragraph (d) or paragraph (e) of this subsection and performed by individuals in positions covered by a retirement system with respect to which the governor has issued a certificate to the secretary of health, education, and welfare pursuant to subsection (5) of this section.

       (h) Law enforcement officers and firemen of each political subdivision of this state who are covered by the Washington law enforcement officers' and fire fighters' retirement systems ((Act (chapter 209, Laws of 1969 ex. sess.))) under chapters 41.26 and 41.26A RCW as now in existence or hereafter amended shall constitute a separate "coverage group" for purposes of the agreement entered into under this section and for purposes of section 218 of the social security act. To the extent that the agreement between this state and the federal secretary of health, education, and welfare in existence on the date of adoption of this subsection is inconsistent with this subsection, the governor shall seek to modify the inconsistency.

       (2) Any instrumentality jointly created by this state and any other state or states is hereby authorized, upon the granting of like authority by such other state or states, (a) to enter into an agreement with the secretary of health, education, and welfare whereby the benefits of the federal old-age and survivors insurance system shall be extended to employees of such instrumentality, (b) to require its employees to pay (and for that purpose to deduct from their wages) contributions equal to the amounts which they would be required to pay under RCW 41.48.040(1) if they were covered by an agreement made pursuant to subsection (1) of this section, and (c) to make payments to the secretary of the treasury in accordance with such agreement, including payments from its own funds, and otherwise to comply with such agreements. Such agreement shall, to the extent practicable, be consistent with the terms and provisions of subsection (1) and other provisions of this chapter.

       (3) The governor is empowered to authorize a referendum, and to designate an agency or individual to supervise its conduct, in accordance with the requirements of section 218(d)(3) of the social security act, and subsection (4) of this section on the question of whether service in all positions covered by a retirement system established by the state or by a political subdivision thereof should be excluded from or included under an agreement under this chapter. If a retirement system covers positions of employees of the state of Washington, of the institutions of higher learning, and positions of employees of one or more of the political subdivisions of the state, then for the purpose of the referendum as provided herein, there may be deemed to be a separate retirement system with respect to employees of the state, or any one or more of the political subdivisions, or institutions of higher learning and the governor shall authorize a referendum upon request of the subdivisions' or institutions' of higher learning governing body: PROVIDED HOWEVER, That if a referendum of state employees generally fails to produce a favorable majority vote then the governor may authorize a referendum covering positions of employees in any state department who are compensated in whole or in part from grants made to this state under title III of the federal social security act: PROVIDED, That any city or town affiliated with the statewide city employees retirement system organized under chapter 41.44 RCW may at its option agree to a plan submitted by the board of trustees of said statewide city employees retirement system for inclusion under an agreement under this chapter if the referendum to be held as provided herein indicates a favorable result: PROVIDED FURTHER, That the teachers' retirement system be considered one system for the purpose of the referendum except as applied to the several colleges of education. The notice of referendum required by section 218(d)(3)(C) of the social security act to be given to employees shall contain or shall be accompanied by a statement, in such form and such detail as the agency or individual designated to supervise the referendum shall deem necessary and sufficient, to inform the employees of the rights which will accrue to them and their dependents and survivors, and the liabilities to which they will be subject, if their services are included under an agreement under this chapter.

       (4) The governor, before authorizing a referendum, shall require the following conditions to be met:

       (a) The referendum shall be by secret written ballot on the question of whether service in positions covered by such retirement system shall be excluded from or included under the agreement between the governor and the secretary of health, education, and welfare provided for in RCW 41.48.030(1);

       (b) An opportunity to vote in such referendum shall be given and shall be limited to eligible employees;

       (c) Not less than ninety days' notice of such referendum shall be given to all such employees;

       (d) Such referendum shall be conducted under the supervision (of the governor or) of an agency or individual designated by the governor;

       (e) The proposal for coverage shall be approved only if a majority of the eligible employees vote in favor of including services in such positions under the agreement;

       (f) The state legislature, in the case of a referendum affecting the rights and liabilities of state employees covered under the state employees' retirement system and employees under the teachers' retirement system, and in all other cases the local legislative authority or governing body, shall have specifically approved the proposed plan and approved any necessary structural adjustment to the existing system to conform with the proposed plan.

       (5) Upon receiving satisfactory evidence that with respect to any such referendum the conditions specified in subsection (4) of this section and section 218(d)(3) of the social security act have been met, the governor shall so certify to the secretary of health, education, and welfare.

       (6) If the legislative body of any political subdivision of this state certifies to the governor that a referendum has been held under the terms of RCW 41.48.050(1)(i) and gives notice to the governor of termination of social security for any coverage group of the political subdivision, the governor shall give two years advance notice in writing to the federal department of health, education, and welfare of such termination of the agreement entered into under this section with respect to said coverage group.

       Sec. 429. RCW 41.48.050 and 1981 c 119 s 1 are each amended to read as follows:

       (1) Each political subdivision of the state is hereby authorized to submit for approval by the governor a plan for extending the benefits of title II of the social security act, in conformity with the applicable provisions of such act, to those employees of such political subdivisions who are not covered by an existing pension or retirement system. Each pension or retirement system established by the state or a political subdivision thereof is hereby authorized to submit for approval by the governor a plan for extending the benefits of title II of the social security act, in conformity with applicable provisions of such act, to members of such pension or retirement system. Each such plan and any amendment thereof shall be approved by the governor if he finds that such plan, or such plan as amended, is in conformity with such requirements as are provided in regulations of the governor, except that no such plan shall be approved unless--

       (a) It is in conformity with the requirements of the social security act and with the agreement entered into under RCW 41.48.030;

       (b) It provides that all services which constitute employment as defined in RCW 41.48.020 and are performed in the employ of the political subdivision by employees thereof, shall be covered by the plan;

       (c) It specifies the source or sources from which the funds necessary to make the payments required by paragraph (a) of subsection (3) and by subsection (4) of this section are expected to be derived and contains reasonable assurance that such sources will be adequate for such purposes;

       (d) It provides that in the plan of coverage for members of the state teachers' retirement system or for state employee members of the state employees' retirement system, there shall be no additional cost to or involvement of the state until such plan has received prior approval by the legislature;

       (e) It provides for such methods of administration of the plan by the political subdivision as are found by the governor to be necessary for the proper and efficient administration of the plan;

       (f) It provides that the political subdivision will make such reports, in such form and containing such information, as the governor may from time to time require and comply with such provisions as the governor or the secretary of health, education, and welfare may from time to time find necessary to assure the correctness and verification of such reports; and

       (g) It authorizes the governor to terminate the plan in its entirety, in his discretion, if he finds that there has been a failure to comply substantially with any provision contained in such plan, such termination to take effect at the expiration of such notice and on such conditions as may be provided by regulations of the governor and may be consistent with the provisions of the social security act.

       (h) It provides that law enforcement officers and fire fighters of each political subdivision of this state who are covered by the Washington law enforcement officers' and fire fighters' retirement systems ((Act (chapter 209, Laws of 1969 ex. sess.))) under chapters 41.26 and 41.26A RCW as now in existence or hereafter amended shall constitute a separate "coverage group" for purposes of the plan or agreement entered into under this section and for purposes of section 216 of the social security act. To the extent that the plan or agreement entered into between the state and any political subdivision of this state is inconsistent with this subsection, the governor shall seek to modify the inconsistency.

       (i) It provides that the plan or agreement may be terminated by any political subdivision as to any such coverage group upon giving at least two years advance notice in writing to the governor, effective at the end of the calendar quarter specified in the notice. It shall specify that before notice of such termination is given, a referendum shall be held among the members of the coverage group under the following conditions:

       (i) The referendum shall be conducted under the supervision of the legislative body of the political subdivision.

       (ii) Not less than sixty days' notice of such referendum shall be given to members of the coverage group.

       (iii) An opportunity to vote by secret ballot in such referendum shall be given and shall be limited to all members of the coverage group.

       (iv) The proposal for termination shall be approved only if a majority of the coverage group vote in favor of termination.

       (v) If a majority of the coverage group vote in favor of termination, the legislative body of the political subdivision shall certify the results of the referendum to the governor and give notice of termination of such coverage group.

       (2) The governor shall not finally refuse to approve a plan submitted by a political subdivision under subsection (1), and shall not terminate an approved plan, without reasonable notice and opportunity for hearing to the political subdivision affected thereby.

       (3)(a) Each political subdivision as to which a plan has been approved under this section shall pay into the contribution ((fund)) account, with respect to wages (as defined in RCW 41.48.020), at such time or times as the governor may by regulation prescribe, contributions in the amounts and at the rates specified in the applicable agreement entered into by the governor under RCW 41.48.030.

       (b) Each political subdivision required to make payments under paragraph (a) of this subsection is authorized, in consideration of the employee's retention in, or entry upon, employment after enactment of this chapter, to impose upon each of its employees, as to services which are covered by an approved plan, a contribution with respect to his wages (as defined in RCW 41.48.020), not exceeding the amount of employee tax which is imposed by the federal insurance contributions act, and to deduct the amount of such contribution from his wages as and when paid. Contributions so collected shall be paid into the OASI contribution ((fund)) account in partial discharge of the liability of such political subdivision or instrumentality under paragraph (a) of this subsection. Failure to deduct such contribution shall not relieve the employee or employer of liability therefor.

       (4) Delinquent reports and payments due under paragraph (f) of subsection (1) and paragraph (a) of subsection (3) of this section will be subject to an added interest charge of six percent per year or, if higher, the rate chargeable to the state by the secretary by virtue of federal law, if the late report or payment contributes to any federal penalty for late filing of reports or for late deposit of contributions. Delinquent contributions, interest and penalties may be recovered by civil action or may, at the request of the governor, be deducted from any other moneys payable to the political subdivision by any department or agency of the state.

       Sec. 430. RCW 41.50.030 and 1998 c 341 s 501 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:

       (a) The Washington public employees' retirement system;

       (b) The Washington state teachers' retirement system;

       (c) The Washington law enforcement officers' and fire fighters' retirement system;

       (d) The Washington state patrol retirement system;

       (e) The Washington judicial retirement system; and

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

       (2) On July 1, 1996, there is transferred to the department all powers, duties, and functions of the deferred compensation committee.

       (3) The department shall administer chapter 41.34 RCW.

       (4) The department shall administer the Washington school employees' retirement system created under chapter 41.35 RCW.

       (5) The department shall administer the restated law enforcement officers' and fire fighters' retirement system under chapter 41.26A RCW.

       Sec. 431. RCW 41.50.055 and 1991 c 35 s 16 are each amended to read as follows:

       The administration of the Washington law enforcement officers' and fire fighters' retirement systems ((is)) under chapters 41.26 and 41.26A RCW are hereby vested in the director of retirement systems, and the director shall:

       (1) Keep in convenient form such data as shall be deemed necessary for actuarial evaluation purposes;

       (2) As of March 1, 1970, and at least every two years thereafter, through the state actuary, make an actuarial valuation as to the mortality and service experience of the beneficiaries under this chapter and the various accounts created for the purpose of showing the financial status of the retirement fund;

       (3) Adopt for the Washington law enforcement officers' and fire fighters' retirement systems the mortality tables and such other tables as shall be deemed necessary;

       (4) Keep a record of all its proceedings, which shall be open to inspection by the public;

       (5) From time to time adopt such rules and regulations not inconsistent with chapters 41.26 and 41.26A RCW, for the administration of the provisions of this chapter, for the administration of the funds created by this chapter and chapter 41.26A RCW and the several accounts thereof, and for the transaction of the business of the system;

       (6) Prepare and publish annually a financial statement showing the condition of the Washington law enforcement officers' and fire fighters' funds and the various accounts thereof, and setting forth such other facts, recommendations and data as may be of use in the advancement of knowledge concerning the Washington law enforcement officers' and fire fighters' retirement systems, and furnish a copy thereof to each employer, and to such members as may request copies thereof;

       (7) Perform such other functions as are required for the execution of the provisions of chapters 41.26 and 41.26A RCW;

       (8) Fix the amount of interest to be credited at a rate which shall be based upon the net annual earnings of the Washington law enforcement officers' and fire fighters' funds for the preceding twelve-month period and from time to time make any necessary changes in such rate;

       (9) Pay from the department of retirement systems expense fund the expenses incurred in administration of the Washington law enforcement officers' and fire fighters' retirement systems from those funds appropriated for that purpose;

       (10) Perform any other duties prescribed elsewhere in chapter 41.26 or 41.26A RCW;

       (11) Issue decisions relating to appeals initiated pursuant to RCW 41.16.145 and 41.18.104 as now or hereafter amended and shall be authorized to order increased benefits pursuant to RCW 41.16.145 and 41.18.104 as now or hereafter amended.

       Sec. 432. RCW 41.50.075 and 1998 c 341 s 503 are each amended to read as follows:

       (1) ((Two funds are)) A fund is hereby created and established in the state treasury to be known as ((the Washington law enforcement officers' and fire fighters' system plan 1 retirement fund, and)) the Washington law enforcement officers' and fire fighters' system plan 2 retirement fund which shall consist of all moneys paid into ((them)) the fund in accordance with the provisions of this chapter and chapter 41.26 RCW, whether such moneys take the form of cash, securities, or other assets. The ((plan 1 fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan 1, and the)) plan 2 fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan 2.

       (2) All of the assets of the Washington state teachers' retirement system shall be credited according to the purposes for which they are held, to two funds to be maintained in the state treasury, namely, the teachers' retirement system plan 1 fund and the teachers' retirement system combined plan 2 and 3 fund. The plan 1 fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan 1, and the combined plan 2 and 3 fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan 2 and 3.

       (3) There is hereby established in the state treasury two separate funds, namely the public employees' retirement system plan 1 fund and the public employees' retirement system plan 2 fund. The plan 1 fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plan 1, and the plan 2 fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plan 2.

       (4) There is hereby established in the state treasury the school employees' retirement system combined plan 2 and 3 fund. The combined plan 2 and 3 fund shall consist of all moneys paid to finance the benefits provided to members of the school employees' retirement system plan 2 and plan 3.

       Sec. 433. RCW 41.50.075 and 2000 c 247 s 601 are each amended to read as follows:

       (1) ((Two funds are)) A fund is hereby created and established in the state treasury to be known as ((the Washington law enforcement officers' and fire fighters' system plan 1 retirement fund, and)) the Washington law enforcement officers' and fire fighters' system plan 2 retirement fund which shall consist of all moneys paid into ((them)) the fund in accordance with the provisions of this chapter and chapter 41.26 RCW, whether such moneys take the form of cash, securities, or other assets. The ((plan 1 fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan 1, and the)) plan 2 fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan 2.

       (2) All of the assets of the Washington state teachers' retirement system shall be credited according to the purposes for which they are held, to two funds to be maintained in the state treasury, namely, the teachers' retirement system plan 1 fund and the teachers' retirement system combined plan 2 and 3 fund. The plan 1 fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan 1, and the combined plan 2 and 3 fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan 2 and 3.

       (3) There is hereby established in the state treasury two separate funds, namely the public employees' retirement system plan 1 fund and the public employees' retirement system combined plan 2 and plan 3 fund. The plan 1 fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plan 1, and the combined plan 2 and plan 3 fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plans 2 and 3.

       (4) There is hereby established in the state treasury the school employees' retirement system combined plan 2 and 3 fund. The combined plan 2 and 3 fund shall consist of all moneys paid to finance the benefits provided to members of the school employees' retirement system plan 2 and plan 3.

       (5) The department shall administer the funds established under the restated law enforcement officers' and fire fighters' retirement system under chapter 41.26A RCW, including:

       (a) The restated law enforcement officers' and fire fighters' defined benefit retirement fund; and

       (b) The state surplus assets reserve fund.

       Sec. 434. RCW 41.50.080 and 1998 c 341 s 504 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 school employees' retirement system, the Washington law enforcement officers' and fire fighters' retirement systems under chapters 41.26 and 41.26A RCW, the Washington state patrol retirement system, the Washington judicial retirement system, and the judges' retirement fund, pursuant to RCW 43.84.150, and may sell or exchange investments acquired in the exercise of that authority.

       Sec. 435. RCW 41.50.090 and 1985 c 102 s 6 are each amended to read as follows:

       (1) Except as otherwise provided in this section, on the effective date of transfer as provided in RCW 41.50.030, the department shall succeed to and is vested with all powers, duties, and functions now or by any concurrent act of this 1976 legislature vested in the individual retirement boards set forth in RCW 41.50.030 relating to the administration of their various retirement systems, including but not limited to the power to appoint a staff and define the duties thereof: PROVIDED, That actuarial services required by the department shall be performed by the state actuary as provided in RCW 44.44.040.

       (2) The department shall keep each retirement board fully informed on the administration of the corresponding retirement system, and shall furnish any information requested by a retirement board.

       (3) Rules proposed by the director under RCW 2.10.070, 41.50.055, 41.32.025, or 41.40.020 shall be submitted to the appropriate retirement boards for review prior to adoption. After receiving approval of the members of the appropriate board, such rules shall become effective as provided by the administrative procedure act, chapter 34.05 RCW.

       (4) Each retirement board shall continue to perform all functions as are vested in it by law with respect to applications for benefits paid upon either temporary or permanent disability, with such staff assistance from the department as may be required. The director shall perform those functions with respect to disability benefits as are vested in him or her by ((RCW 41.26.120, 41.26.125, and 41.26.200)) chapter 41.26A RCW.

       Sec. 436. RCW 41.50.110 and 1998 c 341 s 508 are each amended to read as follows:

       (1) Except as provided by RCW 41.50.255 and subsection (6) of this section, all expenses of the administration of the department and the expenses of administration of the retirement systems created in chapters 2.10, 2.12, 41.26, 41.26A, 41.32, 41.40, 41.34, 41.35, and 43.43 RCW shall be paid from the department of retirement systems expense fund.

       (2) In order to reimburse the department of retirement systems expense fund on an equitable basis the department shall ascertain and report to each employer, as defined in RCW 41.26.030, section 202 of this act, 41.32.010, 41.35.010, or 41.40.010, the sum necessary to defray its proportional share of the entire expense of the administration of the retirement system that the employer participates in 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 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.

       (3) The department shall compute and bill each employer, as defined in RCW 41.26.030, section 202 of this act, 41.32.010, 41.35.010, or 41.40.010, 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 employer shall be made on a percentage rate of salary established by the department. However, the department 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.

       (4) 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.

       (5) An employer who fails to submit timely and accurate reports to the department may be assessed an additional fee related to the increased costs incurred by the department in processing the deficient reports. Fees paid under this subsection shall be deposited in the retirement system expense fund.

       (a) Every six months the department shall determine the amount of an employer's fee by reviewing the timeliness and accuracy of the reports submitted by the employer in the preceding six months. If those reports were not both timely and accurate the department may prospectively assess an additional fee under this subsection.

       (b) An additional fee assessed by the department under this subsection shall not exceed fifty percent of the standard fee.

       (c) The department shall adopt rules implementing this section.

       (6) Expenses other than those under RCW 41.34.060(((2))) (3) shall be paid pursuant to subsection (1) of this section.

       Sec. 437. RCW 41.50.112 and 2000 c 247 s 1107 are each amended to read as follows:

       Employers, as defined in RCW 41.26.030, section 202 of this act, 41.32.010, 41.34.020, 41.35.010, and 41.40.010, must report all member data to the department in a format designed and communicated by the department. Employers failing to comply with this reporting requirement shall be assessed an additional fee as defined under RCW 41.50.110(5).

       Sec. 438. RCW 41.50.150 and 1998 c 341 s 509 are each amended to read as follows:

       (1) The employer of any employee whose retirement benefits are based in part on excess compensation, as defined in this section, shall, upon receipt of a billing from the department, pay into the appropriate retirement system the present value at the time of the employee's retirement of the total estimated cost of all present and future benefits from the retirement system attributable to the excess compensation. The state actuary shall determine the estimated cost using the same method and procedure as is used in preparing fiscal note costs for the legislature. However, the director may in the director's discretion decline to bill the employer if the amount due is less than fifty dollars. Accounts unsettled within thirty days of the receipt of the billing shall be assessed an interest penalty of one percent of the amount due for each month or fraction thereof beyond the original thirty-day period.

       (2) "Excess compensation," as used in this section, includes the following payments, if used in the calculation of the employee's retirement allowance:

       (a) A cash out of unused annual leave in excess of two hundred forty hours of such leave. "Cash out" for purposes of this subsection means:

       (i) Any payment in lieu of an accrual of annual leave; or

       (ii) Any payment added to salary or wages, concurrent with a reduction of annual leave;

       (b) A cash out of any other form of leave;

       (c) A payment for, or in lieu of, any personal expense or transportation allowance to the extent that payment qualifies as reportable compensation in the member's retirement system;

       (d) The portion of any payment, including overtime payments, that exceeds twice the regular daily or hourly rate of pay; and

       (e) Any termination or severance payment.

       (3) This section applies to the retirement systems listed in RCW 41.50.030 and to retirements occurring on or after March 15, 1984. Nothing in this section is intended to amend or determine the meaning of any definition in chapter 2.10, 2.12, 41.26, 41.26A, 41.32, 41.40, 41.35, or 43.43 RCW or to determine in any manner what payments are includable in the calculation of a retirement allowance under such chapters.

       (4) An employer is not relieved of liability under this section because of the death of any person either before or after the billing from the department.

       Sec. 439. RCW 41.50.255 and 1998 c 341 s 511 are each amended to read as follows:

       The director is authorized to pay from the interest earnings of the trust funds of the public employees' retirement system, the teachers' retirement system, the Washington state patrol retirement system, the Washington judicial retirement system, the judges' retirement system, the school district employees' retirement system, or the law enforcement officers' and fire fighters' retirement systems under chapter 41.26 and 41.26A RCW lawful obligations of the appropriate system for legal expenses and medical expenses which expenses are primarily incurred for the purpose of protecting the appropriate 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.

       The director may also pay from the interest earnings of the trust funds specified in this section costs incurred in investigating fraud and collecting overpayments, including expenses incurred to review and investigate cases of possible fraud against the trust funds and collection agency fees and other costs incurred in recovering overpayments. Recovered funds must be returned to the appropriate trust funds.

       Sec. 440. RCW 41.50.500 and 1998 c 341 s 512 are each amended to read as follows:

       Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 41.50.500 through 41.50.650, 41.50.670 through 41.50.720, and 26.09.138.

       (1) "Benefits" means periodic retirement payments or a withdrawal of accumulated contributions.

       (2) "Disposable benefits" means that part of the benefits of an individual remaining after the deduction from those benefits of any amount required by law to be withheld. The term "required by law to be withheld" does not include any deduction elective to the member.

       (3) "Dissolution order" means any judgment, decree, or order of spousal maintenance, property division, or court-approved property settlement incident to a decree of divorce, dissolution, invalidity, or legal separation issued by the superior court of the state of Washington or a judgment, decree, or other order of spousal support issued by a court of competent jurisdiction in another state or country, that has been registered or otherwise made enforceable in this state.

       (4) "Mandatory benefits assignment order" means an order issued to the department of retirement systems pursuant to RCW 41.50.570 to withhold and deliver benefits payable to an obligor under chapter 2.10, 2.12, 41.26, 41.26A, 41.32, 41.40, 41.35, or 43.43 RCW.

       (5) "Obligee" means an ex spouse or spouse to whom a duty of spousal maintenance or property division obligation is owed.

       (6) "Obligor" means the spouse or ex spouse owing a duty of spousal maintenance or a property division obligation.

       (7) "Periodic retirement payments" means periodic payments of retirement allowances, including but not limited to service retirement allowances, disability retirement allowances, and survivors' allowances. The term does not include a withdrawal of accumulated contributions.

       (8) "Property division obligation" means any outstanding court-ordered property division or court-approved property settlement obligation incident to a decree of divorce, dissolution, or legal separation.

       (9) "Standard allowance" means a benefit payment option selected under RCW 2.10.146(1)(a), 41.26.460(1)(a), 41.32.785(1)(a), 41.40.188(1)(a), 41.40.660(1), or 41.35.220 that ceases upon the death of the retiree. Standard allowance also means the benefit allowance provided under RCW 2.10.110, 2.10.130, 43.43.260, ((41.26.100, 41.26.130(1)(a))) section 217 of this act, section 222(1)(a) of this act, or chapter 2.12 RCW. Standard allowance also means the maximum retirement allowance available under RCW 41.32.530(1) following member withdrawal of accumulated contributions, if any.

       (10) "Withdrawal of accumulated contributions" means a lump sum payment to a retirement system member of all or a part of the member's accumulated contributions, including accrued interest, at the request of the member including any lump sum amount paid upon the death of the member.

       Sec. 441. RCW 41.50.500 and 2000 c 247 s 603 are each amended to read as follows:

       Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 41.50.500 through 41.50.650, 41.50.670 through 41.50.720, and 26.09.138.

       (1) "Benefits" means periodic retirement payments or a withdrawal of accumulated contributions.

       (2) "Disposable benefits" means that part of the benefits of an individual remaining after the deduction from those benefits of any amount required by law to be withheld. The term "required by law to be withheld" does not include any deduction elective to the member.

       (3) "Dissolution order" means any judgment, decree, or order of spousal maintenance, property division, or court-approved property settlement incident to a decree of divorce, dissolution, invalidity, or legal separation issued by the superior court of the state of Washington or a judgment, decree, or other order of spousal support issued by a court of competent jurisdiction in another state or country, that has been registered or otherwise made enforceable in this state.

       (4) "Mandatory benefits assignment order" means an order issued to the department of retirement systems pursuant to RCW 41.50.570 to withhold and deliver benefits payable to an obligor under chapter 2.10, 2.12, 41.26, 41.26A, 41.32, 41.40, 41.35, or 43.43 RCW.

       (5) "Obligee" means an ex spouse or spouse to whom a duty of spousal maintenance or property division obligation is owed.

       (6) "Obligor" means the spouse or ex spouse owing a duty of spousal maintenance or a property division obligation.

       (7) "Periodic retirement payments" means periodic payments of retirement allowances, including but not limited to service retirement allowances, disability retirement allowances, and survivors' allowances. The term does not include a withdrawal of accumulated contributions.

       (8) "Property division obligation" means any outstanding court-ordered property division or court-approved property settlement obligation incident to a decree of divorce, dissolution, or legal separation.

       (9) "Standard allowance" means a benefit payment option selected under RCW 2.10.146(1)(a), 41.26.460(1)(a), 41.32.785(1)(a), 41.40.188(1)(a), 41.40.660(1), 41.40.845(1)(a), or 41.35.220 that ceases upon the death of the retiree. Standard allowance also means the benefit allowance provided under RCW 2.10.110, 2.10.130, 43.43.260, ((41.26.100, 41.26.130(1)(a))) section 217 of this act, section 222(1)(a) of this act, or chapter 2.12 RCW. Standard allowance also means the maximum retirement allowance available under RCW 41.32.530(1) following member withdrawal of accumulated contributions, if any.

       (10) "Withdrawal of accumulated contributions" means a lump sum payment to a retirement system member of all or a part of the member's accumulated contributions, including accrued interest, at the request of the member including any lump sum amount paid upon the death of the member.

       Sec. 442. RCW 41.50.670 and 1998 c 341 s 513 are each amended to read as follows:

       (1) Nothing in this chapter regarding mandatory assignment of benefits to enforce a spousal maintenance obligation shall abridge the right of an obligee to direct payments of retirement benefits to satisfy a property division obligation ordered pursuant to a court decree of dissolution or legal separation or any court order or court-approved property settlement agreement incident to any court decree of dissolution or legal separation as provided in RCW 2.10.180, 2.12.090, 41.04.310, 41.04.320, 41.04.330, 41.26.053, section 209 of this act, 41.32.052, 41.35.100, 41.34.070(((3))) (4), 41.40.052, 43.43.310, or 26.09.138, as those statutes existed before July 1, 1987, and as those statutes exist on and after July 28, 1991. The department shall pay benefits under this chapter in a lump sum or as a portion of periodic retirement payments as expressly provided by the dissolution order. A dissolution order may not order the department to pay a periodic retirement payment or lump sum unless that payment is specifically authorized under the provisions of chapter 2.10, 2.12, 41.26, 41.26A, 41.32, 41.35, 41.34, 41.40, or 43.43 RCW, as applicable.

       (2) The department shall pay directly to an obligee the amount of periodic retirement payments or lump sum payment, as appropriate, specified in the dissolution order if the dissolution order filed with the department pursuant to subsection (1) of this section includes a provision that states in the following form:

       If . . . . . . (the obligor) receives periodic retirement payments as defined in RCW 41.50.500, the department of retirement systems shall pay to . . . . . . (the obligee) . . . . . . dollars from such payments or . . . percent of such payments. If the obligor's debt is expressed as a percentage of his or her periodic retirement payment and the obligee does not have a survivorship interest in the obligor's benefit, the amount received by the obligee shall be the percentage of the periodic retirement payment that the obligor would have received had he or she selected a standard allowance.

       If . . . . . . (the obligor) requests or has requested a withdrawal of accumulated contributions as defined in RCW 41.50.500, or becomes eligible for a lump sum death benefit, the department of retirement systems shall pay to . . . . . . (the obligee) . . . . . . dollars plus interest at the rate paid by the department of retirement systems on member contributions. Such interest to accrue from the date of this order's entry with the court of record.

       (3) This section does not require a member to select a standard allowance upon retirement nor does it require the department to recalculate the amount of a retiree's periodic retirement payment based on a change in survivor option.

       (4) A court order under this section may not order the department to pay more than seventy-five percent of an obligor's periodic retirement payment to an obligee.

       (5) Persons whose court decrees were entered between July 1, 1987, and July 28, 1991, shall also be entitled to receive direct payments of retirement benefits to satisfy court-ordered property divisions if the dissolution orders comply or are modified to comply with this section and RCW 41.50.680 through 41.50.720 and, as applicable, RCW 2.10.180, 2.12.090, 41.26.053, section 209 of this act, 41.32.052, 41.35.100, 41.34.070, 41.40.052, 43.43.310, and 26.09.138.

       (6) The obligee must file a copy of the dissolution order with the department within ninety days of that order's entry with the court of record.

       (7) A division of benefits pursuant to a dissolution order under this section shall be based upon the obligor's gross benefit prior to any deductions. If the department is required to withhold a portion of the member's benefit pursuant to 26 U.S.C. Sec. 3402 and the sum of that amount plus the amount owed to the obligee exceeds the total benefit, the department shall satisfy the withholding requirements under 26 U.S.C. Sec. 3402 and then pay the remainder to the obligee. The provisions of this subsection do not apply to amounts withheld pursuant to 26 U.S.C. Sec. 3402(i).

       Sec. 443. RCW 41.56.030 and 2000 c 23 s 1 and 2000 c 19 s 1 are each reenacted and amended to read as follows:

       As used in this chapter:

       (1) "Public employer" means any officer, board, commission, council, or other person or body acting on behalf of any public body governed by this chapter, or any subdivision of such public body. For the purposes of this section, the public employer of district court or superior court employees for wage-related matters is the respective county legislative authority, or person or body acting on behalf of the legislative authority, and the public employer for nonwage-related matters is the judge or judge's designee of the respective district court or superior court.

       (2) "Public employee" means any employee of a public employer except any person (a) elected by popular vote, or (b) appointed to office pursuant to statute, ordinance or resolution for a specified term of office as a member of a multimember board, commission, or committee, whether appointed by the executive head or body of the public employer, or (c) whose duties as deputy, administrative assistant or secretary necessarily imply a confidential relationship to (i) the executive head or body of the applicable bargaining unit, or (ii) any person elected by popular vote, or (iii) any person appointed to office pursuant to statute, ordinance or resolution for a specified term of office as a member of a multimember board, commission, or committee, whether appointed by the executive head or body of the public employer, or (d) who is a court commissioner or a court magistrate of superior court, district court, or a department of a district court organized under chapter 3.46 RCW, or (e) who is a personal assistant to a district court judge, superior court judge, or court commissioner, or (f) excluded from a bargaining unit under RCW 41.56.201(2)(a). For the purpose of (e) of this subsection, no more than one assistant for each judge or commissioner may be excluded from a bargaining unit.

       (3) "Bargaining representative" means any lawful organization which has as one of its primary purposes the representation of employees in their employment relations with employers.

       (4) "Collective bargaining" means the performance of the mutual obligations of the public employer and the exclusive bargaining representative to meet at reasonable times, to confer and negotiate in good faith, and to execute a written agreement with respect to grievance procedures and collective negotiations on personnel matters, including wages, hours and working conditions, which may be peculiar to an appropriate bargaining unit of such public employer, except that by such obligation neither party shall be compelled to agree to a proposal or be required to make a concession unless otherwise provided in this chapter.

       (5) "Commission" means the public employment relations commission.

       (6) "Executive director" means the executive director of the commission.

       (7) "Uniformed personnel" means: (a) Law enforcement officers as defined in RCW 41.26.030 and section 202 of this act employed by the governing body of any city or town with a population of two thousand five hundred or more and law enforcement officers employed by the governing body of any county with a population of ten thousand or more; (b) correctional employees who are uniformed and nonuniformed, commissioned and noncommissioned security personnel employed in a jail as defined in RCW 70.48.020(5), by a county with a population of seventy thousand or more, and who are trained for and charged with the responsibility of controlling and maintaining custody of inmates in the jail and safeguarding inmates from other inmates; (c) general authority Washington peace officers as defined in RCW 10.93.020 employed by a port district in a county with a population of one million or more; (d) security forces established under RCW 43.52.520; (e) fire fighters as that term is defined in RCW 41.26.030 and section 202 of this act; (f) employees of a port district in a county with a population of one million or more whose duties include crash fire rescue or other fire fighting duties; (g) employees of fire departments of public employers who dispatch exclusively either fire or emergency medical services, or both; or (h) employees in the several classes of advanced life support technicians, as defined in RCW 18.71.200, who are employed by a public employer.

       (8) "Institution of higher education" means the University of Washington, Washington State University, Central Washington University, Eastern Washington University, Western Washington University, The Evergreen State College, and the various state community colleges.

       Sec. 444. RCW 43.84.092 and 2000 2nd sp.s. c 4 s 5 are each 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 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 common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, 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 medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system plan 2 account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife 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 surplus assets reserve account, the supplemental pension 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 transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington judicial retirement system account, ((the Washington law enforcement officers' and fire fighters' system plan 1 retirement account,)) the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 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 fund, and the Western Washington University capital projects 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, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

       (b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

       (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. 445. RCW 43.84.092 and 2000 2nd sp.s. c 4 s 6 are each 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 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 common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, 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 medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit 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 Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife 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 surplus assets reserve account, the supplemental pension 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 transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington judicial retirement system account, ((the Washington law enforcement officers' and fire fighters' system plan 1 retirement account,)) the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 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 fund, and the Western Washington University capital projects 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, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

       (b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

       (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. 446. RCW 43.79A.040 and 2000 c 79 s 45 are each amended to read as follows:

       (1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

       (2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

       (3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment 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)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

       (b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the basic health plan self-insurance reserve account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the law enforcement officers' and fire fighters' medical benefits risk pool account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility ((grant)) account, the self-insurance revolving fund, the sulfur dioxide abatement account, the restated law enforcement officers' and fire fighters' defined benefit retirement fund, and the children's trust fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

       (c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.

       (5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

       Sec. 447. RCW 46.52.130 and 1998 c 165 s 11 are each amended to read as follows:

       A certified abstract of the driving record shall be furnished only to the individual named in the abstract, an employer or prospective employer or an agent acting on behalf of an employer or prospective employer, the insurance carrier that has insurance in effect covering the employer or a prospective employer, the insurance carrier that has insurance in effect covering the named individual, the insurance carrier to which the named individual has applied, an alcohol/drug assessment or treatment agency approved by the department of social and health services, to which the named individual has applied or been assigned for evaluation or treatment, or city and county prosecuting attorneys. City attorneys and county prosecuting attorneys may provide the driving record to alcohol/drug assessment or treatment agencies approved by the department of social and health services to which the named individual has applied or been assigned for evaluation or treatment. The director, upon proper request, shall furnish a certified abstract covering the period of not more than the last three years to insurance companies. Upon proper request, the director shall furnish a certified abstract covering a period of not more than the last five years to state approved alcohol/drug assessment or treatment agencies, except that the certified abstract shall also include records of alcohol-related offenses as defined in RCW 46.01.260(2) covering a period of not more than the last ten years. Upon proper request, a certified abstract of the full driving record maintained by the department shall be furnished to a city or county prosecuting attorney, to the individual named in the abstract or to an employer or prospective employer or an agent acting on behalf of an employer or prospective employer of the named individual. The abstract, whenever possible, shall include an enumeration of motor vehicle accidents in which the person was driving; the total number of vehicles involved; whether the vehicles were legally parked or moving; whether the vehicles were occupied at the time of the accident; whether the accident resulted in any fatality; any reported convictions, forfeitures of bail, or findings that an infraction was committed based upon a violation of any motor vehicle law; and the status of the person's driving privilege in this state. The enumeration shall include any reports of failure to appear in response to a traffic citation or failure to respond to a notice of infraction served upon the named individual by an arresting officer. Certified abstracts furnished to prosecutors and alcohol/drug assessment or treatment agencies shall also indicate whether a recorded violation is an alcohol-related offense as defined in RCW 46.01.260(2) that was originally charged as one of the alcohol-related offenses designated in RCW 46.01.260(2)(b)(i).

       The abstract provided to the insurance company shall exclude any information, except that related to the commission of misdemeanors or felonies by the individual, pertaining to law enforcement officers or fire fighters as defined in RCW 41.26.030 or section 202 of this act, or any officer of the Washington state patrol, while driving official vehicles in the performance of occupational duty. The abstract provided to the insurance company shall include convictions for RCW 46.61.5249 and 46.61.525 except that the abstract shall report them only as negligent driving without reference to whether they are for first or second degree negligent driving. The abstract provided to the insurance company shall exclude any deferred prosecution under RCW 10.05.060, except that if a person is removed from a deferred prosecution under RCW 10.05.090, the abstract shall show the deferred prosecution as well as the removal.

       The director shall collect for each abstract the sum of four dollars and fifty cents which shall be deposited in the highway safety fund.

       Any insurance company or its agent receiving the certified abstract shall use it exclusively for its own underwriting purposes and shall not divulge any of the information contained in it to a third party. No policy of insurance may be canceled, nonrenewed, denied, or have the rate increased on the basis of such information unless the policyholder was determined to be at fault. No insurance company or its agent for underwriting purposes relating to the operation of commercial motor vehicles may use any information contained in the abstract relative to any person's operation of motor vehicles while not engaged in such employment, nor may any insurance company or its agent for underwriting purposes relating to the operation of noncommercial motor vehicles use any information contained in the abstract relative to any person's operation of commercial motor vehicles.

       Any employer or prospective employer or an agent acting on behalf of an employer or prospective employer receiving the certified abstract shall use it exclusively for his or her own purpose to determine whether the licensee should be permitted to operate a commercial vehicle or school bus upon the public highways of this state and shall not divulge any information contained in it to a third party.

       Any alcohol/drug assessment or treatment agency approved by the department of social and health services receiving the certified abstract shall use it exclusively for the purpose of assisting its employees in making a determination as to what level of treatment, if any, is appropriate. The agency, or any of its employees, shall not divulge any information contained in the abstract to a third party.

       Release of a certified abstract of the driving record of an employee or prospective employee requires a statement signed by: (1) The employee or prospective employee that authorizes the release of the record, and (2) the employer attesting that the information is necessary to determine whether the licensee should be employed to operate a commercial vehicle or school bus upon the public highways of this state. If the employer or prospective employer authorizes an agent to obtain this information on their behalf, this must be noted in the statement.

       Any violation of this section is a gross misdemeanor.

       Sec. 448. RCW 72.72.060 and 1983 c 279 s 5 are each amended to read as follows:

       The state shall reimburse cities and counties for their costs incurred under chapters 41.26 and 41.26A RCW if the costs are the direct result of physical injuries sustained in the implementation of a contingency plan adopted under RCW 72.02.150 and if reimbursement is not precluded by the following provisions: If the secretary of corrections identifies in the contingency plan the prison walls or other perimeter of the secured area, then reimbursement will not be made unless the injuries occur within the walls or other perimeter of the secured area. If the secretary of corrections does not identify prison walls or other perimeter of the secured area, then reimbursement shall not be made unless the injuries result from providing assistance, requested by the secretary of corrections or the secretary's designee, which is beyond the description of the assistance contained in the contingency plan. In no case shall reimbursement be made when the injuries result from conduct which either is not requested by the secretary of corrections or the secretary's designee, or is in violation of orders by superiors of the local law enforcement agency.

       NEW SECTION. Sec. 449. EFFECTIVE DATES AND EXPIRATION DATES. (1) Sections 419, 421, 423, 426, 432, 440, and 444 of this act expire March 1, 2002.

       (2) Sections 418, 420, 422, 424, 427, 433, 437, 441, and 445 of this act take effect March 1, 2002.


PART V

MISCELLANEOUS


       NEW SECTION. Sec. 501. REPEALER. The following acts or parts of acts are each repealed:

       (1) RCW 41.26.005 (Provisions applicable to "plan 1" and "plan 2") and 1992 c 72 s 2, 1991 c 35 s 12, 1989 c 273 s 10, 1985 c 102 s 5, 1979 ex.s. c 249 s 1, & 1977 ex.s. c 294 s 18;

       (2) RCW 41.26.035 ("Minimum medical and health standards" defined) and 1991 c 35 s 14 & 1971 ex.s. c 257 s 2;



       (3) RCW 41.26.045 (Minimum medical and health standards) and 1979 ex.s. c 249 s 3, 1977 ex.s. c 294 s 20, 1974 ex.s. c 120 s 8, & 1971 ex.s. c 257 s 3;

       (4) RCW 41.26.046 (Minimum medical and health standards--Board to adopt--Publication and distribution--Employer certification procedures) and 1987 c 418 s 2, 1977 ex.s. c 294 s 21, 1974 ex.s. c 120 s 12, 1972 ex.s. c 131 s 2, & 1971 ex.s. c 257 s 4;

       (5) RCW 41.26.047 (Minimum medical and health standards--Exemptions--Employer may adopt higher standards) and 1972 ex.s. c 131 s 3 & 1971 ex.s. c 257 s 5;

       (6) RCW 41.26.075 (Provisions applicable to plan 1) and 1992 c 72 s 3 & 1991 c 35 s 101;

       (7) RCW 41.26.080 (Funding total liability of plan 1 system) and 2000 2nd sp.s. c 1 s 907, 1991 c 35 s 17, 1989 c 273 s 13, & 1969 ex.s. c 209 s 8;

       (8) RCW 41.26.090 (Retirement for service) and 1991 sp.s. c 11 s 4;

       (9) RCW 41.26.100 (Allowance on retirement for service) and 1991 c 343 s 16, 1974 ex.s. c 120 s 3, 1972 ex.s. c 131 s 7, 1971 ex.s. c 257 s 9, 1970 ex.s. c 6 s 5, & 1969 ex.s. c 209 s 10;

       (10) RCW 41.26.110 (City and county disability boards authorized--Composition--Terms--Reimbursement for travel expenses--Duties) and 2000 c 234 s 1, 1988 c 164 s 1, 1982 c 12 s 1, 1974 ex.s. c 120 s 9, 1970 ex.s. c 6 s 6, 1969 ex.s. c 219 s 3, & 1969 ex.s. c 209 s 11;

       (11) RCW 41.26.115 (Director of retirement systems to adopt rules governing disability boards--Remand of orders not in accordance with rules) and 1981 c 294 s 1;

       (12) RCW 41.26.120 (Retirement for disability incurred in the line of duty) and 1991 c 35 s 19, 1986 c 176 s 5, 1985 c 102 s 2, 1981 c 294 s 2, 1974 ex.s. c 120 s 10, 1972 ex.s. c 131 s 8, 1970 ex.s. c 6 s 7, & 1969 ex.s. c 209 s 12;

       (13) RCW 41.26.125 (Retirement for disability not incurred in the line of duty) and 1986 c 176 s 6 & 1985 c 102 s 3;

       (14) RCW 41.26.130 (Allowance on retirement for disability) and 1991 c 35 s 20, 1987 c 185 s 11, 1981 c 294 s 3, 1970 ex.s. c 6 s 8, & 1969 ex.s. c 209 s 13;

       (15) RCW 41.26.135 (Cessation of disability--Determination) and 1985 c 103 s 1;

       (16) RCW 41.26.140 (Reexaminations of disability beneficiaries--Reentry--Appeal) and 1991 c 35 s 21, 1985 c 103 s 2, 1981 c 294 s 4, 1974 ex.s. c 120 s 4, 1970 ex.s. c 6 s 9, & 1969 ex.s. c 209 s 14;

       (17) RCW 41.26.150 (Sickness or disability benefits--Medical services) and 1992 c 22 s 3, 1991 c 35 s 22, 1987 c 185 s 12, 1983 c 106 s 23, 1974 ex.s. c 120 s 11, 1971 ex.s. c 257 s 10, 1970 ex.s. c 6 s 10, 1969 ex.s. c 219 s 4, & 1969 ex.s. c 209 s 15;

       (18) RCW 41.26.160 (Death benefits--Duty connected) and 1999 c 134 s 2 & 1991 sp.s. c 11 s 5;

       (19) RCW 41.26.161 (Death benefits--Nonduty connected) and 1999 c 134 s 3;

       (20) RCW 41.26.162 (Ex spouse qualifying as surviving spouse--When) and 1991 sp.s. c 12 s 2;

       (21) RCW 41.26.170 (Refund of contributions on discontinuance of service--Reentry) and 1994 c 197 s 6, 1991 c 35 s 24, 1970 ex.s. c 6 s 14, & 1969 ex.s. c 209 s 22;

       (22) RCW 41.26.190 (Credit for military service) and 1991 c 35 s 26, 1970 ex.s. c 6 s 13, & 1969 ex.s. c 209 s 18;

       (23) RCW 41.26.192 (Credit for service under prior pension system--Restoration of withdrawn contributions) and 1994 c 197 s 7 & 1992 c 157 s 1;

       (24) RCW 41.26.194 (Credit for service under prior pension system--Service not covered under prior system) and 1994 c 197 s 8 & 1992 c 157 s 2;

       (25) RCW 41.26.195 (Transfer of service credit from other retirement system--Irrevocable election allowed) and 1997 c 122 s 1;

       (26) RCW 41.26.197 (Service credit for paid leave of absence--Application to elected officials of labor organizations) and 1993 c 95 s 3;

       (27) RCW 41.26.200 (Appeal to director of retirement systems) and 1981 c 294 s 5, 1974 ex.s. c 120 s 6, 1971 ex.s. c 257 s 13, 1970 ex.s. c 6 s 11, & 1969 ex.s. c 209 s 16;

       (28) RCW 41.26.211 (Notice for hearing required prior to petitioning for judicial review) and 1984 c 184 s 16, 1981 c 294 s 6, & 1969 ex.s. c 209 s 19;

       (29) RCW 41.26.221 (Hearing--Conduct) and 1984 c 184 s 17, 1981 c 294 s 7, & 1969 ex.s. c 209 s 20;

       (30) RCW 41.26.240 (Increases or decreases in retirement allowances to be determined by department in accordance with consumer price index) and 1991 c 35 s 27, 1974 ex.s. c 120 s 13, 1970 ex.s. c 6 s 16, & 1969 ex.s. c 209 s 24;

       (31) RCW 41.26.250 (Increase in presently payable benefits for service or disability authorized) and 1975 1st ex.s. c 178 s 3, 1974 ex.s. c 190 s 3, 1970 ex.s. c 37 s 2, & 1969 ex.s. c 209 s 34;

       (32) RCW 41.26.260 (Increase in certain presently payable death benefits authorized) and 1974 ex.s. c 190 s 4 & 1969 ex.s. c 209 s 35;

       (33) RCW 41.26.270 (Declaration of policy respecting benefits for injury or death--Civil actions abolished) and 1989 c 12 s 13, 1987 c 185 s 13, 1985 c 102 s 4, & 1971 ex.s. c 257 s 14;

       (34) RCW 41.26.281 (Cause of action for injury or death, when) and 1991 c 35 s 28 & 1971 ex.s. c 257 s 15;

       (35) RCW 41.26.3901 (Severability--1969 ex.s. c 209) and 1969 ex.s. c 209 s 42;

       (36) RCW 41.26.3902 (Act to control inconsistencies) and 1969 ex.s. c 209 s 43;

       (37) RCW 41.26.3903 (Effective date--1969 ex.s. c 209) and 1969 ex.s. c 209 s 45; and

       (38) RCW 41.26.410 (Provisions applicable to plan 2) and 1991 c 35 s 29 & 1977 ex.s. c 294 s 2.

       NEW SECTION. Sec. 502. SAVINGS. The repeals in section 501 of this act do not affect any existing right acquired or liability or obligation incurred under the statutes repealed or under any rule or order adopted under those statutes nor do they affect any proceeding instituted under them. Rules adopted by the department of retirement systems relating to plan 1 of the law enforcement officers' and fire fighters' retirement system under chapter 41.26 RCW shall continue in effect and apply to the restated law enforcement officers' and fire fighters' retirement system under chapter 41.26A RCW unless expressly inconsistent therewith and until repealed or superseded.

       NEW SECTION. Sec. 503. NONSEVERABILITY. Sections 1 through 8 of this act are not severable, and if any provision of those sections is held invalid by a court of competent jurisdiction, this entire act is null and void.

       NEW SECTION. Sec. 504. CAPTIONS. Part headings and captions used in this act are not any part of the law.

       NEW SECTION. Sec. 505. EFFECTIVE DATE. Except as provided in section 449 of this act, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2001."

      Debate ensued.


POINT OF INQUIRY


      Senator Hargrove: “Senator Brown, I have and I think some others have received some questions about whether this current bill will guarantee all of the LEOFF 1 benefits that were originally defined for the pensioners. I understand that there has been some additional language put in to guarantee that. Is that correct?”

      Senator Brown: “Senator Hargrove, you are correct. This amendment creates a statement of guarantee that all the defined benefits in the original plan are guaranteed by the state in the restated plan.”

      Senator Hargrove: “That is the original plan?”

      Senator Browns: “Yes.”

      Senator Hargrove: “Not the changes over the years? Thank you very much.”

      The President declared the question before the Senate to be the adoption of the striking amendment by Senator Brown to Substitute Senate Bill No. 6166, under suspension of the rules.

      The motion by Senator Brown carried and the striking amendment, under suspension of the rules, was adopted.




MOTIONS


      On motion of Senator Brown, the following title amendment was adopted:

       On page 1, line 2 of the title, after "system;" strike the remainder of the title and insert "amending RCW 41.26.010, 41.26.040, 41.26.061, 44.44.040, 48.62.031, 48.62.051, 2.10.155, 26.09.138, 36.28A.010, 41.04.205, 41.04.270, 41.04.350, 41.04.400, 41.05.320, 41.18.210, 41.20.170, 41.20.175, 41.24.400, 41.32.800, 41.32.860, 41.35.230, 41.40.690, 41.40.850, 41.45.010, 41.45.010, 41.45.020, 41.45.050, 41.45.050, 41.45.070, 41.48.030, 41.48.050, 41.50.030, 41.50.055, 41.50.075, 41.50.075, 41.50.080, 41.50.090, 41.50.110, 41.50.112, 41.50.150, 41.50.255, 41.50.500, 41.50.500, 41.50.670, 43.84.092, 43.84.092, 43.79A.040, 46.52.130, and 72.72.060; reenacting and amending RCW 41.26.030, 6.15.020, 41.45.020, 41.45.060, 41.45.070, and 41.56.030; adding new chapters to Title 41 RCW; creating new sections; repealing RCW 41.26.005, 41.26.035, 41.26.045, 41.26.046, 41.26.047, 41.26.075, 41.26.080, 41.26.090, 41.26.100, 41.26.110, 41.26.115, 41.26.120, 41.26.125, 41.26.130, 41.26.135, 41.26.140, 41.26.150, 41.26.160, 41.26.161, 41.26.162, 41.26.170, 41.26.190, 41.26.192, 41.26.194, 41.26.195, 41.26.197, 41.26.200, 41.26.211, 41.26.221, 41.26.240, 41.26.250, 41.26.260, 41.26.270, 41.26.281, 41.26.3901, 41.26.3902, 41.26.3903, and 41.26.410; providing effective dates; providing an expiration date; and declaring an emergency."

      On motion of Senator Brown, the rules were suspended, Engrossed Substitute Senate Bill No. 6166 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6166, under suspension of the rules.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6166, under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 39; Nays, 8; Absent, 1; Excused, 1.

     Voting yea: Senators Brown, Carlson, Constantine, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Hale, Hargrove, Haugen, Hewitt, Hochstatter, Jacobsen, Kastama, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, Oke, Parlette, Patterson, Prentice, Rasmussen, Regala, Rossi, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Swecker, Thibaudeau, West and Winsley - 39.

     Voting nay: Senators Honeyford, Horn, Johnson, McDonald, Morton, Roach, Sheahan and Stevens - 8.

     Absent: Senator Zarelli - 1.

     Excused: Senator Benton - 1.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6166, under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


PERSONAL PRIVILEGE


      Senator Gardner: “A point of personal privilege, Mr. President. I want to relate a couple of things that have happened today in my back yard that I think are very significant. They don’t just affect me and my constituents, but I think they are a precursor of what is happening in our state. The first thing that I read on the front page of the Bellingham Herald this morning is that Blaine’s levy to build new classrooms may have failed. Now, Blaine is a community that usually passes its levies in excess of seventy or seventy-two percent. We have sixty point eight percent favorable vote right now. We are going to have to wait for the absentees to see what is going to happen.

      “The second thing that we heard today is that the Intalco Plant at Cherry Point will be idled immediately, affecting nine hundred and thirty workers--nine hundred and thirty families--within our community. These are very related news items. People in Whatcom County are frightened. They are frightened about their ability to take care of their families; they are frightened about their ability to continue in the community. We are seeing it reflected on how they feel about their ability to support our schools.

      “Now, we all say down here that we support the smaller classrooms and yet we know that it is just not a matter of having more teachers, it is literally having the classrooms to put the classes in. The energy crisis that we are facing in the state of Washington has now been visited in Whatcom County. The folks there at Intalco are being told that they or may not receive wages--Intalco may or may not reopen in two years.

      “I can’t see that these people can sit around for two years to wait and see what is going to happen. So, they are either going to move out of Whatcom County or they are going to be on the road and they are going to drive to Seattle or they are going to drive to Everett or they are going to drive to Anacortes or they are going to drive to wherever they can go to get a job, but it is not going to be in Whatcom County. We are not going to have support for our schools or we are not going to have support for our charities and we are going to have a real problem just with the other businesses that are continuing there.

      “I wanted to bring these two items to the attention of you, my colleagues, so that we can see that the time is here now and that the energy crisis is being visited in very, very real ways. The repercussions are starting now and I hope that we will keep this in mind as we have an opportunity to make an effect in this arena. Thank you very much.”


MOTION


      On motion of Senator Honeyford, Senator Zarelli was excused.


THIRD READING


      ENGROSSED SUBSTITUTE SENATE BILL NO. 5937, by Senate Committee on Ways and Means (originally sponsored by Senators Shin, Rasmussen, Jacobsen, Winsley, Kohl-Welles and McAuliffe) (by request of Governor Locke and Superintendent of Public Instruction Bergeson)


       Changing postretirement employment restrictions for teachers' retirement system, public employees' retirement system, and school employees' retirement system retirees.


      The bill was read the third time.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5937.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5937, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Brown, Carlson, Constantine, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Hale, Hargrove, Haugen, Hewitt, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kastama, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Parlette, Patterson, Prentice, Rasmussen, Regala, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West and Winsley - 47.

     Excused: Senators Benton and Zarelli - 2.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5937, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


THIRD READING


      SUBSTITUTE SENATE BILL NO. 6012, by Senate Committee on Environment, Energy and Water (originally sponsored by Senators Honeyford, Rasmussen, Hochstatter, Hale and Carlson)

 

Allowing customary agricultural related burning in an urban growth area.


      The bill was read the third time.


      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 6012.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6012, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

     Voting yea: Senators Brown, Carlson, Constantine, Costa, Deccio, Eide, Fairley, Finkbeiner, Franklin, Fraser, Gardner, Hale, Hargrove, Haugen, Hewitt, Hochstatter, Honeyford, Horn, Jacobsen, Johnson, Kastama, Kline, Kohl-Welles, Long, McAuliffe, McCaslin, McDonald, Morton, Oke, Parlette, Patterson, Prentice, Rasmussen, Regala, Roach, Rossi, Sheahan, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West and Winsley - 47.

     Excused: Senators Benton and Zarelli - 2.

       SUBSTITUTE SENATE BILL NO. 6012, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Honeyford, Senator Finkbeiner was excused.

 

THIRD READING


      ENGROSSED SUBSTITUTE SENATE BILL NO. 5528, by Senate Committee on Education (originally sponsored by Senators McAuliffe, Winsley, Kohl-Welles, Eide, Regala, Kline, Costa and Gardner) (by request of Governor Locke, Attorney General Gregoire and Superintendent of Public Instruction Bergeson)


      Requiring policies prohibiting harassment, intimidation, and bullying on school grounds and at school activities.


MOTIONS


      On motion of Senator McAuliffe, the rules were suspended, Engrossed Substitute Senate Bill No. 5528 was returned to second reading and read the second time.

      On motion of Senator McAuliffe, the following amendment by Senators McAuliffe, Hargrove and Zarelli was adopted:

      On page 2, line 22, after "act;" strike "and" and insert

       "(c) A requirement that if an allegation is determined to be unfounded, a record of the allegation shall not be kept in the student's file; and"

       Renumber the subsections consecutively and correct any internal references accordingly.


MOTION

 

      On motion of Senator McAuliffe, the rules were suspended, Second Engrossed Substitute Senate Bill No. 5528 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Second Engrossed Substitute Senate Bill No. 5528, under suspension of the rules.


ROLL CALL


      The Secretary called the roll on the final passage of Second Engrossed Substitute Senate Bill No. 5528, under suspension of the rules, and the bill passed the Senate by the following vote: Yeas, 32; Nays, 15; Absent, 0; Excused, 2.

     Voting yea: Senators Brown, Carlson, Constantine, Costa, Deccio, Eide, Fairley, Franklin, Fraser, Gardner, Hargrove, Haugen, Hewitt, Jacobsen, Kastama, Kline, Kohl-Welles, Long, McAuliffe, Oke, Patterson, Prentice, Rasmussen, Regala, Sheldon, B., Sheldon, T., Shin, Snyder, Spanel, Thibaudeau, Winsley and Zarelli - 32.

     Voting nay: Senators Hale, Hochstatter, Honeyford, Horn, Johnson, McCaslin, McDonald, Morton, Parlette, Roach, Rossi, Sheahan, Stevens, Swecker and West - 15.

     Excused: Senators Benton and Finkbeiner - 2.

      SECOND ENGROSSED SUBSTITUTE SENATE BILL NO. 5528, under suspension of the rules, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      At 4:05 p.m., on motion of Senator Betti Sheldon, the Senate adjourned until 10:00 a.m., Thursday, May 17, 2001.


BRAD OWEN, President of the Senate

 

TONY M. COOK, Secretary of the Senate