HOUSE BILL REPORT

HB 632

BYRepresentatives Fisch, Winsley, Day, R. King, Fisher, Baugher, Lux and Crane

Authorizing retirement allowance deductions for political committee dues.

House Committe on Constitution, Elections & Ethics

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (6)

     Signed by Representatives Fisher, Chair; Pruitt, Vice Chair; Amondson, Fisch, Leonard and Sanders.

Minority Report:     Do not pass.  (1)

     Signed by Representative Barnes.

House Staff:Kenneth Hirst (786-7105)

AS REPORTED BY COMMITTEE ON CONSTITUTION, ELECTIONS & ETHICS

FEBRUARY 26, 1987

BACKGROUND:

With certain exceptions, the right of a person to a pension, annuity, or retirement allowance under the state's Public Employees' Retirement System is unassignable.  This prohibition of state law does not prohibit a beneficiary of a retirement allowance from authorizing deductions for payment of: (1) premiums due for certain group insurance policies or plans issued for the benefit of public employees and approved by the State Employees' Insurance Board or the Department of Retirement Systems; or (2) dues and other membership fees to any retirement association or organization composed of retired public employees and satisfying certain requirements.

SUMMARY:

SUBSTITUTE BILL:  A provision of state law is amended which declares that the right of a person to a retirement allowance under the state's Public Employees' Retirement System is, with certain exceptions, unassignable.  This prohibition against assigning such an allowance does not prohibit a beneficiary from authorizing voluntary deductions for a political committee of an association or organization of retired public employees which is qualified to receive such deductions itself or to voluntary deductions for a political committee of a national affiliate of such an association or organization.  Such a political committee must be registered with the Public Disclosure Commission and/or the Federal Election Commission.  The name and address of such a political committee shall be submitted to the Department of Retirement Systems by the governing body of a qualifying retirement association or organization.  Verification that the political committee is registered and remains designated by such a governing body shall be submitted to the department annually.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The original bill authorizes deductions for payments to any registered political committee to which 300 or more of the retirement system's beneficiaries authorize a deduction;  the substitute bill removes the requirement that the committee be designated by 300 or more beneficiaries and requires that the registered political committee be a political committee of an association or organization qualified to receive deductions itself or be the political committee of a national affiliate of such an association or organization.  The provisions of the bill requiring filing of information concerning the political committee with the department are supplied by the substitute bill.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     Richard Bever, Retired Public Employees' Council.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     The bill would permit retired employees to authorize deductions for a national political committee to represent their interests on social security, medicare, and similar subjects.

House Committee - Testimony Against: The bill will encourage people to give up personal choices by encouraging them to give money to a political committee.