BILL REQ. #: H-0953.2
| State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 02/21/2005. Referred to Committee on Appropriations.
AN ACT Relating to creating the retired law enforcement officer and fire fighter retirement system plan 2 retiree medical board; amending RCW 41.05.011, 41.04.208, 41.05.022, 41.05.080, 41.05.120, and 41.50.067; reenacting and amending RCW 43.79A.040; adding new sections to chapter 41.26 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature intends to establish a
medical board to oversee the funding and provision of postretirement
health insurance benefits for retired members of the law enforcement
officers' and fire fighters' retirement system plan 2. The legislature
further intends to fund the postretirement health benefits through
contributions made by active members of the law enforcement officers'
and fire fighters' retirement system plan 2 and premiums paid by
retirees that enroll in the health benefit plans.
Sec. 2 RCW 41.05.011 and 2001 c 165 s 2 are each amended to read
as follows:
Unless the context clearly requires otherwise, the definitions in
this section shall apply throughout this chapter.
(1) "Administrator" means the administrator of the authority.
(2) "State purchased health care" or "health care" means medical
and health care, pharmaceuticals, and medical equipment purchased with
state and federal funds by the department of social and health
services, the department of health, the basic health plan, the state
health care authority, the department of labor and industries, the
department of corrections, the department of veterans affairs, and
local school districts.
(3) "Authority" means the Washington state health care authority.
(4) "Insuring entity" means an insurer as defined in chapter 48.01
RCW, a health care service contractor as defined in chapter 48.44 RCW,
or a health maintenance organization as defined in chapter 48.46 RCW.
(5) "Flexible benefit plan" means a benefit plan that allows
employees to choose the level of health care coverage provided and the
amount of employee contributions from among a range of choices offered
by the authority.
(6) "Employee" includes all full-time and career seasonal employees
of the state, whether or not covered by civil service; elected and
appointed officials of the executive branch of government, including
full-time members of boards, commissions, or committees; and includes
any or all part-time and temporary employees under the terms and
conditions established under this chapter by the authority; justices of
the supreme court and judges of the court of appeals and the superior
courts; and members of the state legislature or of the legislative
authority of any county, city, or town who are elected to office after
February 20, 1970. "Employee" also includes: (a) Employees of a
county, municipality, or other political subdivision of the state if
the legislative authority of the county, municipality, or other
political subdivision of the state seeks and receives the approval of
the authority to provide any of its insurance programs by contract with
the authority, as provided in RCW 41.04.205; (b) employees of employee
organizations representing state civil service employees, at the option
of each such employee organization, and, effective October 1, 1995,
employees of employee organizations currently pooled with employees of
school districts for the purpose of purchasing insurance benefits, at
the option of each such employee organization; and (c) employees of a
school district if the authority agrees to provide any of the school
districts' insurance programs by contract with the authority as
provided in RCW 28A.400.350.
(7) "Board" means the public employees' benefits board established
under RCW 41.05.055.
(8) "Retired or disabled school employee" means:
(a) Persons who separated from employment with a school district or
educational service district and are receiving a retirement allowance
under chapter 41.32 or 41.40 RCW as of September 30, 1993;
(b) Persons who separate from employment with a school district or
educational service district on or after October 1, 1993, and
immediately upon separation receive a retirement allowance under
chapter 41.32, 41.35, or 41.40 RCW;
(c) Persons who separate from employment with a school district or
educational service district due to a total and permanent disability,
and are eligible to receive a deferred retirement allowance under
chapter 41.32, 41.35, or 41.40 RCW.
(9) "Benefits contribution plan" means a premium only contribution
plan, a medical flexible spending arrangement, or a cafeteria plan
whereby state and public employees may agree to a contribution to
benefit costs which will allow the employee to participate in benefits
offered pursuant to 26 U.S.C. Sec. 125 or other sections of the
internal revenue code.
(10) "Salary" means a state employee's monthly salary or wages.
(11) "Participant" means an individual who fulfills the eligibility
and enrollment requirements under the benefits contribution plan.
(12) "Plan year" means the time period established by the
authority.
(13) "Separated employees" means persons who separate from
employment with an employer as defined in:
(a) RCW 41.32.010(11) on or after July 1, 1996; or
(b) RCW 41.35.010 on or after September 1, 2000; or
(c) RCW 41.40.010 on or after March 1, 2002;
and who are at least age fifty-five and have at least ten years of
service under the teachers' retirement system plan 3 as defined in RCW
41.32.010(40), the Washington school employees' retirement system plan
3 as defined in RCW 41.35.010, or the public employees' retirement
system plan 3 as defined in RCW 41.40.010.
(14) "Emergency service personnel killed in the line of duty" means
law enforcement officers and fire fighters as defined in RCW 41.26.030,
and reserve officers and fire fighters as defined in RCW 41.24.010 who
die as a result of injuries sustained in the course of employment as
determined consistent with Title 51 RCW by the department of labor and
industries.
(15) "Retired plan 2 law enforcement officer or fire fighter"
means:
(a) Persons who separated from employment with a county,
municipality, special district, or other political subdivision of the
state and are receiving a plan 2 retirement allowance under chapter
41.26 RCW before July 1, 2006; or
(b) Persons who separate from employment with a county,
municipality, special district, or other political subdivision of the
state on or after July 1, 2006, and immediately upon separation receive
a plan 2 retirement allowance under chapter 41.26 RCW.
Sec. 3 RCW 41.04.208 and 2004 c 173 s 1 are each amended to read
as follows:
(1) Unless the context clearly requires otherwise, the definitions
in this subsection apply throughout this section.
(a) "Disabled employee" means a person eligible to receive a
disability retirement allowance from the Washington law enforcement
officers' and fire fighters' retirement system plan 2 and the public
employees' retirement system.
(b) "Health plan" means a contract, policy, fund, trust, or other
program established jointly or individually by a county, municipality,
or other political subdivision of the state that provides for all or a
part of hospitalization or medical aid for its employees and their
dependents under RCW 41.04.180.
(c) "Retired employee" means a public employee meeting the
retirement eligibility, years of service requirements, and other
criteria of the Washington law enforcement officers' and fire fighters'
retirement system plan 2 and the public employees' retirement system,
except that "retired plan 2 law enforcement officer or fire fighter"
means:
(i) Persons who separated from employment with a county,
municipality, special district, or other political subdivision of the
state and are receiving a plan 2 retirement allowance under chapter
41.26 RCW before July 1, 2006; or
(ii) Persons who separate from employment with a county,
municipality, special district, or other political subdivision of the
state on or after July 1, 2006, and immediately upon separation receive
a plan 2 retirement allowance under chapter 41.26 RCW.
(2) A county, municipality, or other political subdivision that
provides a health plan for its employees shall permit retired and
disabled employees and their dependents to continue participation in a
plan subject to the exceptions, limitations, and conditions set forth
in this section. However, this section does not apply to a county,
municipality, or other political subdivision participating in an
insurance program administered under chapter 41.05 RCW if retired and
disabled employees and their dependents of the participating county,
municipality, or other political subdivision are covered under an
insurance program administered under chapter 41.05 RCW. Nothing in
this subsection or chapter 319, Laws of 2002 precludes the local
government employer from offering retired or disabled employees a
health plan with a benefit structure, copayment, deductible,
coinsurance, lifetime benefit maximum, and other plan features which
differ from those offered through a health plan provided to active
employees. Further, nothing in this subsection precludes a local
government employer from joining with other public agency employers,
including interjurisdictional benefit pools and multi-employer
associations or consortiums, to fulfill its obligations under chapter
319, Laws of 2002.
(3) A county, municipality, or other political subdivision has full
authority to require a person who requests continued participation in
a health plan under subsection (2) of this section to pay the full cost
of such participation, including any amounts necessary for
administration. However, this subsection does not require an employer
who is currently paying for all or part of a health plan for its
retired and disabled employees to discontinue those payments.
(4) Payments for continued participation in a former employer's
health plan may be assigned to the underwriter of the health plan from
public pension benefits or may be paid to the former employer, as
determined by the former employer, so that an underwriter of the health
plan that is an insurance company, health care service contractor, or
health maintenance organization is not required to accept individual
payments from persons continuing participation in the employer's health
plan.
(5) After an initial open enrollment period of ninety days after
January 1, 2003, an employer may not be required to permit a person to
continue participation in the health plan if the person is responsible
for a lapse in coverage under the plan. In addition, an employer may
not be required to permit a person to continue participation in the
employer's health plan if the employer offered continued participation
in a health plan that meets the requirements of chapter 319, Laws of
2002.
(6) If a person continuing participation in the former employer's
health plan has medical coverage available through another employer,
the medical coverage of the other employer is the primary coverage for
purposes of coordination of benefits as provided for in the former
employer's health plan.
(7) If a person's continued participation in a health plan was
permitted because of the person's relationship to a retired or disabled
employee of the employer providing the health plan and the retired or
disabled employee dies, then that person is permitted to continue
participation in the health plan for a period of not more than six
months after the death of the retired or disabled employee. However,
the employer providing the health plan may permit continued
participation beyond that time period.
(8) An employer may offer one or more health plans different from
that provided for active employees and designed to meet the needs of
persons requesting continued participation in the employer's health
plan. An employer, in designing or offering continued participation in
a health plan, may utilize terms or conditions necessary to administer
the plan to the extent the terms and conditions do not conflict with
this section.
(9) If an employer changes the underwriter of a health plan, the
replaced underwriter has no further responsibility or obligation to
persons who continued participation in a health plan of the replaced
underwriter. However, the employer shall permit those persons to
participate in any new health plan.
(10) The benefits granted under this section are not considered a
matter of contractual right. Should the legislature, a county,
municipality, or other political subdivision of the state revoke or
change any benefits granted under this section, an affected person is
not entitled to receive the benefits as a matter of contractual right.
(11) This section does not affect any health plan contained in a
collective bargaining agreement in existence as of January 1, 2003.
However, any plan contained in future collective bargaining agreements
shall conform to this section. In addition, this section does not
affect any health plan contract or policy in existence as of January 1,
2003. However, any renewal of the contract or policy shall conform to
this section.
(12) Counties, municipalities, and other political subdivisions
that make a documented good faith effort to comply with the provisions
of subsections (2) through (11) of this section and are unable to
provide access to a fully insured group health benefit plan are
discharged from any obligations under subsections (2) through (11) of
this section but shall assist disabled employees and retired employees
in applying for health insurance. Assistance may include developing
and distributing standardized information on the availability and cost
of individual health benefit plans, application packages, and health
benefit fairs.
(13) The office of the insurance commissioner shall make available
to counties, municipalities, and other political subdivisions
information regarding individual health benefit plans, including a list
of carriers offering individual coverage, the rates charged, and how to
apply for coverage.
Sec. 4 RCW 41.05.022 and 1995 1st sp.s. c 6 s 3 are each amended
to read as follows:
(1) The health care authority is hereby designated as the single
state agent for purchasing health services.
(2) On and after January 1, 1995, at least the following state-purchased health services programs shall be merged into a single,
community-rated risk pool: Health benefits for groups of employees of
school districts and educational service districts that voluntarily
purchase health benefits as provided in RCW 41.05.011; health benefits
for state employees; health benefits for eligible retired or disabled
school employees not eligible for parts A and B of medicare; health
benefits for eligible retired law enforcement officers or fire fighters
not eligible for parts A and B of medicare; and health benefits for
eligible state retirees not eligible for parts A and B of medicare.
(3) At a minimum, and regardless of other legislative enactments,
the state health services purchasing agent shall:
(a) Require that a public agency that provides subsidies for a
substantial portion of services now covered under the basic health plan
use uniform eligibility processes, insofar as may be possible, and
ensure that multiple eligibility determinations are not required;
(b) Require that a health care provider or a health care facility
that receives funds from a public program provide care to state
residents receiving a state subsidy who may wish to receive care from
them, and that an insuring entity that receives funds from a public
program accept enrollment from state residents receiving a state
subsidy who may wish to enroll with them;
(c) Strive to integrate purchasing for all publicly sponsored
health services in order to maximize the cost control potential and
promote the most efficient methods of financing and coordinating
services;
(d) Consult regularly with the governor, the legislature, and state
agency directors whose operations are affected by the implementation of
this section; and
(e) Ensure the control of benefit costs under managed competition
by adopting rules to prevent employers from entering into an agreement
with employees or employee organizations when the agreement would
result in increased utilization in public employees' benefits board
plans or reduce the expected savings of managed competition.
Sec. 5 RCW 41.05.080 and 2001 c 165 s 3 are each amended to read
as follows:
(1) Under the qualifications, terms, conditions, and benefits set
by the board:
(a) Retired or disabled state employees, retired or disabled school
employees, or employees of county, municipal, or other political
subdivisions covered by this chapter who are retired may continue their
participation in insurance plans and contracts after retirement or
disablement;
(b) Retired plan 2 law enforcement officers and fire fighters may
participate in insurance plans and contracts if participation is
selected immediately upon meeting the requirements of RCW 41.05.011(15)
(a) or (b);
(c) Separated employees may continue their participation in
insurance plans and contracts if participation is selected immediately
upon separation from employment;
(((c))) (d) Surviving spouses and dependent children of emergency
service personnel killed in the line of duty may participate in
insurance plans and contracts.
(2) Rates charged surviving spouses of emergency service personnel
killed in the line of duty, retired or disabled employees, separated
employees, spouses, or dependent children who are not eligible for
parts A and B of medicare shall be based on the experience of the
community rated risk pool established under RCW 41.05.022.
(3) Rates charged to surviving spouses of emergency service
personnel killed in the line of duty, retired or disabled employees,
separated employees, spouses, or children who are eligible for parts A
and B of medicare shall be calculated from a separate experience risk
pool comprised only of individuals eligible for parts A and B of
medicare; however, the premiums charged to medicare-eligible retirees
and disabled employees shall be reduced by the amount of the subsidy
provided under RCW 41.05.085.
(4) Surviving spouses and dependent children of emergency service
personnel killed in the line of duty and retired or disabled and
separated employees shall be responsible for payment of premium rates
developed by the authority which shall include the cost to the
authority of providing insurance coverage including any amounts
necessary for reserves and administration in accordance with this
chapter. These self pay rates will be established based on a separate
rate for the employee, the spouse, and the children.
(5) The retired plan 2 law enforcement officers' and fire fighters'
medical board shall be responsible for payment of premium rates and
subsidy amounts developed by the authority which shall include the cost
to the authority of providing insurance coverage for retired plan 2 law
enforcement officers and fire fighters including any amounts necessary
for reserves and administration in accordance with this chapter.
(6) The term "retired state employees" for the purpose of this
section shall include but not be limited to members of the legislature
whether voluntarily or involuntarily leaving state office.
Sec. 6 RCW 41.05.120 and 1994 c 153 s 9 are each amended to read
as follows:
(1) The public employees' and retirees' insurance account is hereby
established in the custody of the state treasurer, to be used by the
administrator for the deposit of contributions, the remittance paid by
school districts and educational service districts under RCW
28A.400.400, reserves, dividends, and refunds, and for payment of
premiums for employee and retiree insurance benefit contracts and
subsidy amounts provided under RCW 41.05.085 and money paid to the
authority by the retired plan 2 law enforcement officers' and fire
fighters' medical board for payment of premiums for retiree insurance
benefit contracts and subsidy amounts. Moneys from the account shall
be disbursed by the state treasurer by warrants on vouchers duly
authorized by the administrator.
(2) The state treasurer and the state investment board may invest
moneys in the public employees' and retirees' insurance account. All
such investments shall be in accordance with RCW 43.84.080 or
43.84.150, whichever is applicable. The administrator shall determine
whether the state treasurer or the state investment board or both shall
invest moneys in the public employees' and retirees' insurance account.
NEW SECTION. Sec. 7 The definitions in this section apply
throughout this subchapter unless the context clearly requires
otherwise.
(1) "Retired plan 2 law enforcement officer or fire fighter" means:
(a) Persons who separated from employment with a county,
municipality, special district, or other political subdivision of the
state and are receiving a plan 2 retirement or disability allowance
under chapter 41.26 RCW before July 1, 2006; or
(b) Persons who separate from employment with a county,
municipality, special district, or other political subdivision of the
state on or after July 1, 2006, and immediately upon separation receive
a plan 2 retirement or disability allowance under chapter 41.26 RCW.
(2) "Plan 2" means the law enforcement officers' and fire fighters'
retirement system plan 2.
(3) "Actuary" means the actuary employed by the board.
(4) "Administrator" means the administrator of the health care
authority established in chapter 41.05 RCW.
(5) "Authority" means the health care authority established in
chapter 41.05 RCW.
(6) "Medical board" or "board" means the retired plan 2 medical
board.
(7) "Medical board member" means a member of the retired plan 2
medical board.
(8) "Medical plan" means the retired plan 2 law enforcement
officers' and fire fighters' medical plan.
(9) "Department" means the department of retirement systems.
(10) "Employer" means the same as under RCW 41.26.030(2)(b).
(11) "Enrolled actuary" means an actuary who is enrolled under the
employee retirement income security act of 1974 (Subtitle C of Title
III) and who is a member of the society of actuaries or the American
academy of actuaries.
(12) "Medical fund" means the assets of the retired plan 2 law
enforcement officers' and fire fighters' medical fund.
(13) "Medical expense fund" means the assets of the retired plan 2
law enforcement officers' and fire fighters' medical expense fund.
(14) "Actuarially sound" means the plan is sufficiently funded to
meet its projected liabilities and to defray the reasonable expenses of
its operation based upon commonly accepted, sound actuarial principles.
NEW SECTION. Sec. 8 (1) An eleven member medical board is
created to govern the retired plan 2 law enforcement officers' and fire
fighters' medical plan.
(a) Three of the medical board members shall be active law
enforcement officers who are participants in the plan. Beginning with
the first vacancy on or after January 1, 2009, one medical board member
shall be a retired law enforcement officer who is an enrollee in the
medical plan. The law enforcement officer medical board members shall
be appointed by the governor.
(b) Three of the medical board members shall be active fire
fighters who are participants in the plan. Beginning with the first
vacancy on or after January 1, 2009, one medical board member shall be
a retired fire fighter who is an enrollee in the medical plan. The
fire fighter medical board members shall be appointed by the governor.
(c) One board member shall be a member of the house of
representatives who is appointed by the speaker of the house of
representatives.
(d) One board member shall be a member of the senate appointed by
the majority leader of the senate.
(e) Three board members shall be individuals with expertise in the
field of retiree health benefits and shall be appointed by the
governor.
(2) The initial law enforcement officer and fire fighter medical
board members shall serve terms of six, four, and two years,
respectively. Thereafter, law enforcement officer and fire fighter
medical board members serve terms of six years. The remaining medical
board members serve terms of four years. Medical board members may be
reappointed to succeeding terms without limitation and shall serve
until their successors are appointed and seated.
(3) In the event of a vacancy on the medical board, the vacancy
shall be filled in the same manner as prescribed for an initial
appointment.
NEW SECTION. Sec. 9 (1) The medical board has the following
powers and duties:
(a) Adopt actuarial tables, assumptions, and cost methodologies in
consultation with an enrolled actuary retained by the board. The
administrator shall provide assistance when the board requests. The
actuary retained by the board shall utilize the aggregate actuarial
cost method, or other recognized actuarial cost method based on a level
percentage of payroll, as that term is employed by the American academy
of actuaries. In determining the reasonableness of actuarial
valuations, assumptions, and cost methodologies, the actuary retained
by the board shall provide a copy of all such calculations to the
administrator. If the actuary and the administrator concur on the
calculations, contributions shall be made as set forth in the report of
the board's actuary. If the actuary and the administrator cannot
agree, they shall appoint a third, independent, enrolled actuary who
shall review the calculations of the actuary retained by the board and
the administrator. Thereafter, contributions shall be based on the
methodology most closely following that of the third actuary;
(b) Retain professional and technical advisors necessary for the
accomplishment of its duties. The cost of these services may be
withdrawn from the fund;
(c) Consult with the authority and the department for the purpose
of improving benefit administration and member services;
(d) Establish uniform administrative rules and operating policies
in the manner prescribed by law; and
(e) Engage administrative staff and acquire office space as
necessary.
(2) Meetings of the medical board shall be conducted as follows:
(a) All medical board meetings are open to the public, preceded by
timely public notice;
(b) All actions of the medical board shall be taken in open public
session, except for those matters which may be considered in executive
session as provided by law;
(c) The medical board shall retain minutes of each meeting setting
forth the names of those medical board members present and absent, and
their voting record on any voted issue; and
(d) The medical board may establish, with the assistance of the
appropriate office of state government, an internet web site providing
for interactive communication with state government, members,
beneficiaries of the plan, and the public.
(3) A quorum of the medical board is six board members. All
medical board actions require six concurring votes.
(4) The decisions of the medical board shall be made in good faith
and are final, binding, and conclusive on all parties. The decisions
of the medical board shall be subject to judicial review as provided by
law.
(5) The medical board shall cause an annual budget to be prepared
consistent with the requirements of chapter 43.88 RCW and shall draw
the funding for the budget from the employee contributions and the
investment income of the fund. Medical board members shall be
reimbursed for travel and education expenses as provided in RCW
43.03.050 and 43.03.060.
(6) The medical board shall make an annual report to the governor,
legislature, and state auditor setting forth the actuarial funding
status of the plan and a summary of the costs and expenditures of the
plan for the preceding year. The board shall also retain the services
of an independent, certified public accountant who shall annually audit
the expenses of the fund and whose report shall be included in the
medical board's annual report.
NEW SECTION. Sec. 10 (1) The medical board shall establish
employee contributions as set forth in this section.
(2) Consistent with the actuarial assumptions, methodology, and
advice provided in section 9(1)(a) of this act, the employee
contribution rate shall be sufficient, in combination with premiums
paid by participating retired plan 2 law enforcement officers and fire
fighters, to meet the actuarial funding requirements of the medical
fund.
(3)(a) The medical board shall establish an employee administrative
contribution rate to meet the funding requirements of the medical
expense fund, subject to revision by the legislature.
(b) The medical board shall immediately notify the directors of the
office of financial management and retirement systems of the employee
contribution rates for the medical fund and the medical expense fund.
(c) The director shall notify employers of the rates adopted by the
medical board according to RCW 41.50.067, and collect those rates
adopted by the medical board, subject to revision by the legislature.
(4) The medical board shall annually establish premiums to be paid
by retired plan 2 law enforcement officers and fire fighters enrolled
in the health benefits plans funded by the medical board.
(5) The medical board shall manage the medical fund in a manner
that maintains reasonable contributions and administrative costs.
NEW SECTION. Sec. 11 (1) In a manner prescribed by the
authority, the medical board shall remit to the authority for deposit
in the public employees' and retirees' insurance account established in
RCW 41.05.120 an amount established by the public employees' benefits
board.
(2) The remittance requirements specified in this section shall
cover the cost of the premiums for nonmedicare and medicare retired
plan 2 law enforcement officers and fire fighters and dependents, and
any administrative costs related to their coverage, less the enrollee
premiums collected by the authority in accordance with rates
established under section 10(4) of this act.
NEW SECTION. Sec. 12 (1) A retired plan 2 law enforcement
officers' and fire fighters' medical fund is created in the custody of
the state treasurer. All receipts from employee contributions and
participating retiree premiums must be deposited into the fund.
(2) A retired plan 2 law enforcement officers' and fire fighters'
medical expense fund is created within the retired plan 2 law
enforcement officers' and fire fighters' medical fund.
(3) The state investment board has the full power to invest,
reinvest, manage, contract, sell, or exchange investment money in the
medical fund and the medical expense fund. The state investment board
is authorized to adopt investment policies for the money in the medical
fund and the medical expense fund. All investment and operating costs
associated with the investment of money shall be paid pursuant to RCW
43.33A.160 and 43.84.160. With the exception of these expenses, the
earnings from the investment of the money shall be retained by the
retired plan 2 law enforcement officers' and fire fighters' medical
fund and the retired plan 2 law enforcement officers' and fire
fighters' medical expense fund, under RCW 43.79A.040.
(4) All investments made by the investment board shall be made with
the exercise of that degree of judgment and care pursuant to RCW
43.33A.140 and the investment policy established by the state
investment board.
(5) When appropriate for investment purposes, the state investment
board may commingle money in the medical fund and medical expense fund
with other funds.
(6) The authority to establish all policies relating to the medical
fund and medical expense fund, other than the investment policies as
set forth in subsections (2) through (5) of this section, resides with
the medical board. With the exception of investments by, and expenses
of, the state investment board set forth in subsection (2) of this
section, disbursements from the medical fund and medical expense fund
may be made only on the authorization of the medical board, and money
in the medical expense fund may be spent only for the purposes of
defraying the expenses of the medical board as provided in section 9 of
this act.
(7) The state investment board shall routinely consult and
communicate with the medical board on the investment policy, earnings
of the trust, and related needs of the medical fund and the medical
expense fund.
(8) The medical board shall administer the medical expense fund in
a manner reasonably designed to be actuarially sound. The assets of
the medical expense fund must be sufficient to defray the obligations
of the account including the costs of administration. Money used for
administrative expenses is subject to the allotment of all expenditures
pursuant to chapter 43.88 RCW. However, an appropriation is not
required for expenditures. Administrative expenses include, but are
not limited to, the salaries and expenses of medical board personnel
including lease payments, travel, goods and services necessary for
operation of the board, audits, and other general costs of conducting
the business of the medical board.
NEW SECTION. Sec. 13 All expenses of the department and the
authority related to the implementation and administration of this act
shall be reimbursed from the medical expense fund under RCW 39.34.130.
Sec. 14 RCW 41.50.067 and 1993 c 519 s 21 are each amended to
read as follows:
The director shall inform all employers in writing as to the
employer and employee rates adopted by the ((economic and revenue
forecast)) pension funding council, the law enforcement officers' and
fire fighters' plan 2 board, or the retired plan 2 law enforcement
officers' and fire fighters' medical board upon the notification of the
pension funding council as prescribed in RCW 41.45.060, the law
enforcement officers' and fire fighters' plan 2 board as prescribed in
RCW 41.26.725, or the retired plan 2 law enforcement officers' and fire
fighters' medical board as prescribed in section 10 of this act.
Sec. 15 RCW 43.79A.040 and 2004 c 246 s 8 and 2004 c 58 s 10 are
each reenacted and 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 promise
scholarship account, the college savings program account, the
Washington advanced college tuition payment program account, the
agricultural local fund, the American Indian scholarship endowment
fund, the students with dependents grant account, the basic health plan
self-insurance reserve account, the contract harvesting revolving
account, the Washington state combined fund drive account, the
Washington international exchange scholarship endowment fund, the
developmental disabilities endowment trust fund, the energy account,
the fair fund, the fruit and vegetable inspection account, the future
teachers conditional scholarship account, the game farm alternative
account, the grain inspection revolving fund, the juvenile
accountability incentive account, the law enforcement officers' and
fire fighters' plan 2 expense fund, the local tourism promotion
account, the produce railcar pool account, the rural rehabilitation
account, the stadium and exhibition center account, the youth athletic
facility account, the self-insurance revolving fund, the sulfur dioxide
abatement account, the children's trust fund, the Washington horse
racing commission Washington bred owners' bonus fund account, the
Washington horse racing commission class C purse fund account, ((and))
the Washington horse racing commission operating account (earnings from
the Washington horse racing commission operating account must be
credited to the Washington horse racing commission class C purse fund
account), the retired plan 2 law enforcement officers' and fire
fighters' medical fund, and the retired plan 2 law enforcement
officers' and fire fighters' medical expense 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 city and county advance right-of-way revolving fund, 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.
NEW SECTION. Sec. 16 Sections 7 through 13 of this act are each
added to chapter