WA saves trust account

AN ACT Relating to the Washington saves administrative trust 1
account; amending RCW 19.05.010 and 19.05.110; reenacting and 2
amending RCW 43.79A.040 and 43.79A.040; providing an effective date; 3
and providing an expiration date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 19.05.010 and 2024 c 327 s 2 are each amended to 6
read as follows: 7
The definitions in this section apply throughout this chapter 8
unless the context clearly requires otherwise. 9
(1) "Administrative account" means the Washington saves 10
administrative ((treasury)) trust account created in RCW 19.05.110.11
(2) "Administrative agency" means the state agency or office that 12
will provide administrative support to the governing board, beginning 13
no later than July 1, 2027. 14
(3) "Complainant" means a covered employee, or that employee's 15
designee who has written or legal authority to act on behalf of the 16
employee, who files a complaint alleging an employer administrative 17
violation of RCW 19.05.030 who learned of the alleged violation by 18
way of their employment with a covered employer. 19
Z-0191.1
SENATE BILL 5616
State of Washington 69th Legislature 2025 Regular Session
By Senators Hasegawa, Stanford, and Nobles; by request of Department
of Financial Institutions
Read first time 01/31/25. Referred to Committee on Ways & Means.
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(4) "Consumer price index" means the consumer price index for all 1
urban consumers, all items, for the Seattle area as calculated by the 2
United States bureau of labor statistics or its successor agency.3
(5) "Covered employee" means an individual who is 18 years of age 4
or older, who is employed by a covered employer. 5
(6) "Covered employer" means any employer that:6
(a) Has been in business in this state for at least two years as 7
of the immediately preceding calendar year; 8
(b) Maintains a physical presence; 9
(c) Does not offer a qualified retirement plan to their covered 10
employees who have had continuous employment of one year or more; and11
(d) Employs, and at any point during the immediately preceding 12
calendar year employed, employees working a combined minimum of 13
10,400 hours. 14
(7) "Department" means the department of labor and industries.15
(8) "Employer" means a person or entity engaged in a business, 16
profession, trade, or other enterprise in the state, whether for 17
profit or not for profit. "Employer" does not include federal or 18
state entities, agencies, or instrumentalities, or any political 19
subdivision thereof. 20
(9) "Employer administrative duties" include all requirements of 21
covered employers under RCW 19.05.030 that do not involve amounts due 22
to the employee. 23
(10) "Employment" has the same meaning as in RCW 50.04.100.24
(11) "Governing board" means the board created in RCW 19.05.040.25
(12) "Individual account" means an IRA established by or for an 26
individual participant and owned by the individual participant 27
pursuant to this chapter. 28
(13) "Individual participant" means any individual who is 29
contributing to, or has a balance credited in, an IRA through the 30
program. 31
(14) "Internal revenue code" means the federal internal revenue 32
code of 1986, as amended, or any successor law. 33
(15) "IRA" means a traditional or Roth individual retirement 34
account or individual retirement annuity described in section 408 (a), 35
408(b), or 408A of the internal revenue code. 36
(16) "Payroll deduction IRA agreement" means an arrangement by 37
which a participating employer makes payroll deductions authorized by 38
this chapter and remits amounts deducted as contributions to IRAs on 39
behalf of individual participants. 40
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(17) "Program" means the Washington saves program established 1
under this chapter. 2
(18) "Qualified retirement plan" means a retirement plan in 3
compliance with applicable federal law for employees including those 4
described in section 401 (a), 401 (k), 403 (a), 403 (b), 408 (k), or 5
408(p) of the internal revenue code. A qualified retirement plan may 6
require continuous employment of up to one year to be eligible for 7
employee participation. 8
(19) "Wages" means any commission, compensation, salary, or other 9
remuneration, as defined by section 219 (f)(1) of the internal revenue 10
code, received by a covered employee from a covered employer.11
Sec. 2. RCW 19.05.110 and 2024 c 327 s 11 are each amended to 12
read as follows: 13
(1) The Washington saves administrative ((treasury)) trust 14
account is created in the custody of the state treasurer.15
(2) Expenditures from the account may be used only for the 16
purposes of administrative and operating expenses of the program 17
established under this chapter. 18
(3) Only the director of the administrative agency or the 19
director's designee may authorize expenditures from the account. The 20
account is exempt from appropriation and allotment provisions under 21
chapter 43.88 RCW. 22
(4) The account may receive grants, gifts, or other moneys 23
appropriated for administrative purposes from the state and the 24
federal government. 25
(5) Any interest incurred by the account will be retained within 26
the account. 27
Sec. 3. RCW 43.79A.040 and 2024 c 327 s 16 and 2024 c 168 s 10 28
are each reenacted and amended to read as follows:29
(1) Money in the treasurer's trust fund may be deposited, 30
invested, and reinvested by the state treasurer in accordance with 31
RCW 43.84.080 in the same manner and to the same extent as if the 32
money were in the state treasury, and may be commingled with moneys 33
in the state treasury for cash management and cash balance purposes.34
(2) All income received from investment of the treasurer's trust 35
fund must be set aside in an account in the treasury trust fund to be 36
known as the investment income account. 37
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(3) The investment income account may be utilized for the payment 1
of purchased banking services on behalf of treasurer's trust funds 2
including, but not limited to, depository, safekeeping, and 3
disbursement functions for the state treasurer or affected state 4
agencies. The investment income account is subject in all respects to 5
chapter 43.88 RCW, but no appropriation is required for payments to 6
financial institutions. Payments must occur prior to distribution of 7
earnings set forth in subsection (4) of this section.8
(4)(a) Monthly, the state treasurer must distribute the earnings 9
credited to the investment income account to the state general fund 10
except under (b), (c), and (d) of this subsection.11
(b) The following accounts and funds must receive their 12
proportionate share of earnings based upon each account's or fund's 13
average daily balance for the period: The 24/7 sobriety account, the 14
Washington promise scholarship account, the Gina Grant Bull memorial 15
legislative page scholarship account, the Rosa Franklin legislative 16
internship program scholarship account, the Washington advanced 17
college tuition payment program account, the Washington college 18
savings program account, the accessible communities account, the 19
Washington achieving a better life experience program account, the 20
Washington career and college pathways innovation challenge program 21
account, the community and technical college innovation account, the 22
agricultural local fund, the American Indian scholarship endowment 23
fund, the behavioral health loan repayment program account, the Billy 24
Frank Jr. national statuary hall collection fund, the foster care 25
scholarship endowment fund, the foster care endowed scholarship trust 26
fund, the contract harvesting revolving account, the Washington state 27
combined fund drive account, the commemorative works account, the 28
county 911 excise tax account, the county road administration board 29
emergency loan account, the toll collection account, the 30
developmental disabilities endowment trust fund, the energy account, 31
the energy facility site evaluation council account, the fair fund, 32
the family and medical leave insurance account, the Fern Lodge 33
maintenance account, the fish and wildlife federal lands revolving 34
account, the natural resources federal lands revolving account, the 35
food animal veterinarian conditional scholarship account, the forest 36
health revolving account, the fruit and vegetable inspection account, 37
the educator conditional scholarship account, the game farm 38
alternative account, the GET ready for math and science scholarship 39
account, the Washington global health technologies and product 40
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development account, the grain inspection revolving fund, the 1
Washington history day account, the industrial insurance rainy day 2
fund, the juvenile accountability incentive account, the law 3
enforcement officers' and firefighters' plan 2 expense fund, the 4
local tourism promotion account, the low-income home rehabilitation 5
account, the medication for people living with HIV rebate revenue 6
account, the homeowner recovery account, the multiagency permitting 7
team account, the northeast Washington wolf-livestock management 8
account, the pollution liability insurance program trust account, the 9
produce railcar pool account, the public use general aviation airport 10
loan revolving account, the regional transportation investment 11
district account, the rural rehabilitation account, the Washington 12
sexual assault kit account, the stadium and exhibition center 13
account, the youth athletic facility account, the self-insurance 14
revolving fund, the children's trust fund, the Washington horse 15
racing commission Washington bred owners' bonus fund and breeder 16
awards account, the Washington horse racing commission class C purse 17
fund account, the individual development account program account, the 18
Washington horse racing commission operating account, the life 19
sciences discovery fund, the Washington state library-archives 20
building account, the reduced cigarette ignition propensity account, 21
the center for deaf and hard of hearing youth account, the school for 22
the blind account, the Millersylvania park trust fund, the public 23
employees' and retirees' insurance reserve fund, the school 24
employees' benefits board insurance reserve fund, the public 25
employees' and retirees' insurance account, the school employees' 26
insurance account, the long-term services and supports trust account, 27
the radiation perpetual maintenance fund, the Indian health 28
improvement reinvestment account, the department of licensing tuition 29
recovery trust fund, the student achievement council tuition recovery 30
trust fund, the tuition recovery trust fund, the industrial insurance 31
premium refund account, the mobile home park relocation fund, the 32
natural resources deposit fund, the Washington state health insurance 33
pool account, the federal forest revolving account, the Washington 34
saves administrative ((treasury)) trust account, and the library 35
operations account. 36
(c) The following accounts and funds must receive 80 percent of 37
their proportionate share of earnings based upon each account's or 38
fund's average daily balance for the period: The advance right-of-way 39
revolving fund, the advanced environmental mitigation revolving 40
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account, the federal narcotics asset forfeitures account, the high 1
occupancy vehicle account, the local rail service assistance account, 2
and the miscellaneous transportation programs account.3
(d) Any state agency that has independent authority over accounts 4
or funds not statutorily required to be held in the custody of the 5
state treasurer that deposits funds into a fund or account in the 6
custody of the state treasurer pursuant to an agreement with the 7
office of the state treasurer shall receive its proportionate share 8
of earnings based upon each account's or fund's average daily balance 9
for the period. 10
(5) In conformance with Article II, section 37 of the state 11
Constitution, no trust accounts or funds shall be allocated earnings 12
without the specific affirmative directive of this section.13
Sec. 4. RCW 43.79A.040 and 2024 c 327 s 17 and 2024 c 168 s 11 14
are each reenacted and amended to read as follows:15
(1) Money in the treasurer's trust fund may be deposited, 16
invested, and reinvested by the state treasurer in accordance with 17
RCW 43.84.080 in the same manner and to the same extent as if the 18
money were in the state treasury, and may be commingled with moneys 19
in the state treasury for cash management and cash balance purposes.20
(2) All income received from investment of the treasurer's trust 21
fund must be set aside in an account in the treasury trust fund to be 22
known as the investment income account. 23
(3) The investment income account may be utilized for the payment 24
of purchased banking services on behalf of treasurer's trust funds 25
including, but not limited to, depository, safekeeping, and 26
disbursement functions for the state treasurer or affected state 27
agencies. The investment income account is subject in all respects to 28
chapter 43.88 RCW, but no appropriation is required for payments to 29
financial institutions. Payments must occur prior to distribution of 30
earnings set forth in subsection (4) of this section.31
(4)(a) Monthly, the state treasurer must distribute the earnings 32
credited to the investment income account to the state general fund 33
except under (b), (c), and (d) of this subsection.34
(b) The following accounts and funds must receive their 35
proportionate share of earnings based upon each account's or fund's 36
average daily balance for the period: The 24/7 sobriety account, the 37
Washington promise scholarship account, the Gina Grant Bull memorial 38
legislative page scholarship account, the Rosa Franklin legislative 39
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internship program scholarship account, the Washington advanced 1
college tuition payment program account, the Washington college 2
savings program account, the accessible communities account, the 3
Washington achieving a better life experience program account, the 4
Washington career and college pathways innovation challenge program 5
account, the community and technical college innovation account, the 6
agricultural local fund, the American Indian scholarship endowment 7
fund, the behavioral health loan repayment program account, the Billy 8
Frank Jr. national statuary hall collection fund, the foster care 9
scholarship endowment fund, the foster care endowed scholarship trust 10
fund, the contract harvesting revolving account, the Washington state 11
combined fund drive account, the commemorative works account, the 12
county 911 excise tax account, the county road administration board 13
emergency loan account, the toll collection account, the 14
developmental disabilities endowment trust fund, the energy account, 15
the energy facility site evaluation council account, the fair fund, 16
the family and medical leave insurance account, the Fern Lodge 17
maintenance account, the fish and wildlife federal lands revolving 18
account, the natural resources federal lands revolving account, the 19
food animal veterinarian conditional scholarship account, the forest 20
health revolving account, the fruit and vegetable inspection account, 21
the educator conditional scholarship account, the game farm 22
alternative account, the GET ready for math and science scholarship 23
account, the Washington global health technologies and product 24
development account, the grain inspection revolving fund, the 25
Washington history day account, the industrial insurance rainy day 26
fund, the juvenile accountability incentive account, the law 27
enforcement officers' and firefighters' plan 2 expense fund, the 28
local tourism promotion account, the low-income home rehabilitation 29
account, the medication for people living with HIV rebate revenue 30
account, the homeowner recovery account, the multiagency permitting 31
team account, the northeast Washington wolf-livestock management 32
account, the produce railcar pool account, the public use general 33
aviation airport loan revolving account, the regional transportation 34
investment district account, the rural rehabilitation account, the 35
Washington sexual assault kit account, the stadium and exhibition 36
center account, the youth athletic facility account, the self-37
insurance revolving fund, the children's trust fund, the Washington 38
horse racing commission Washington bred owners' bonus fund and 39
breeder awards account, the Washington horse racing commission class 40
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C purse fund account, the individual development account program 1
account, the Washington horse racing commission operating account, 2
the life sciences discovery fund, the Washington state library-3
archives building account, the reduced cigarette ignition propensity 4
account, the center for deaf and hard of hearing youth account, the 5
school for the blind account, the Millersylvania park trust fund, the 6
public employees' and retirees' insurance reserve fund, the school 7
employees' benefits board insurance reserve fund, the public 8
employees' and retirees' insurance account, the school employees' 9
insurance account, the long-term services and supports trust account, 10
the radiation perpetual maintenance fund, the Indian health 11
improvement reinvestment account, the department of licensing tuition 12
recovery trust fund, the student achievement council tuition recovery 13
trust fund, the tuition recovery trust fund, the industrial insurance 14
premium refund account, the mobile home park relocation fund, the 15
natural resources deposit fund, the Washington state health insurance 16
pool account, the federal forest revolving account, the Washington 17
saves administrative ((treasury)) trust account, and the library 18
operations account. 19
(c) The following accounts and funds must receive 80 percent of 20
their proportionate share of earnings based upon each account's or 21
fund's average daily balance for the period: The advance right-of-way 22
revolving fund, the advanced environmental mitigation revolving 23
account, the federal narcotics asset forfeitures account, the high 24
occupancy vehicle account, the local rail service assistance account, 25
and the miscellaneous transportation programs account.26
(d) Any state agency that has independent authority over accounts 27
or funds not statutorily required to be held in the custody of the 28
state treasurer that deposits funds into a fund or account in the 29
custody of the state treasurer pursuant to an agreement with the 30
office of the state treasurer shall receive its proportionate share 31
of earnings based upon each account's or fund's average daily balance 32
for the period. 33
(5) In conformance with Article II, section 37 of the state 34
Constitution, no trust accounts or funds shall be allocated earnings 35
without the specific affirmative directive of this section.36
NEW SECTION. Sec. 5. Section 3 of this act expires July 1, 37
2030.38
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NEW SECTION. Sec. 6. Section 4 of this act takes effect July 1, 1
2030.2
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