The beat goes on, the beat goes on,
Drums keep pounding a rhythm to the brain,
La de da de de, la de da de da. –– Sonny Bono

Legislative actions continue. As this is being written, the deadline for policy bills to leave committees has arrived. The next cut-off is February 11 for all bills that have a fiscal or monetary impact – either positive or negative. The Legislature’s fiscal committees, Senate Ways and Means and House Finance and Appropriations will be very busy – possibly working this weekend (House Appropriations) and late into the evenings trying to hear all of the bills dropped into them by the policy committees.

Then the big cut-off is on February 19 – House of Origin. All House bills have to have been voted on and moved to the Senate and vice versa. Then the process starts over with committee hearings and votes – however with a much more rapid pace.

The one thing to remember through all these cut-offs is that they can all be overruled. Below is a summary of bills that have had some degree of action to date. Given the current deadlines agendas and announcements as to what bills are being heard and or acted upon by committee change constantly.

Retirement Related Proposals

Proposed bills dealing with providing a benefit increase to those members in TRS1 and PERS 1 plans have been introduced.

Ways and Means’ Committee Chair Christine Rolfes held a public hearing on SB 5400 the afternoon of February 7th. She indicated that she would like it to be the vehicle continuing a discussion about a cost of living increase (COLA). Ideally, this bill will be exec’d on Tuesday of next week.

This bill is at the request of the Select Committee on Pension Policy. It requires beneficiaries who are receiving a monthly benefit from the public employees’ retirement system plan 1 or the teachers’ retirement system plan 1 on July 1, 2018, to receive, effective July 1, 2019, an increase to their monthly benefit of three percent multiplied by the beneficiaries’ monthly benefit, not to exceed sixty-two dollars and fifty cents on the first $25,000 of benefit.

Its companion bill, HB 1390 remains in House Rules awaiting a move to the House floor for action.

School Employee Benefit Board (SEEB) and Other Health Related Proposals

There are three bills heard earlier in the session dealing with SEBB. They take various approaches in dealing with employee and retiree eligibility and district costs. Each has some differences.

The bills are:

• SB 6189 | Clarifying eligibility for school employees’ benefits board coverage.
• SB 6290 | Concerning contributions to and eligibility for school employee benefit plan.
• SB 6296 | Concerning health care benefits for public school employees.

At this point, none have moved. SB 6189’s hearing was on a substitute bill that called for a study, but even that bill has shown no further movement.

HB 2458/SB 6479 | Concerning optional benefits offered by school districts.

These bills allow for districts to continue offering some benefits that are not in competition with those offered by SEBB. If SEBB is not providing the benefit, then a jurisdiction should be able to provide it. It was pointed out that these benefits are employee paid. Examples would include VEBA, cancer insurance, auto insurance, etc.

These bills were moved out of their committees. HB 2458 has not yet been assigned to either Appropriations or the Rules Committee. SB 6479 was sent to Senate Rules.

Apparently, the Health Care Authority/SEBB will be suggesting some amendments that are deemed ‘technical’. According to SEBB staff, these will clarify that SEBB has sole authority to offer any life or disability products. (Cancer insurance may be an example of a product that only SEBB could offer.) Staff has indicated they are not aware of any technical corrections regarding VEBA’s. So, if either bill passes the legislature, districts could resume offering VEBA’s among other potential benefits.
At this point, the proposed amendments need to surface.

Other Bills

ESHB 1813 mandates that the costs of contracted employee health and retirement benefits must be built into school district contracts for pupil transportation.

Specifically, the bill digest reads: Requires a pupil transportation services contract to include: (1) Sufficient funds specifically for the contracting employer to provide the employees of the contractor with an employer health benefits contribution equal to the monthly school employer funding rate for the school employees’ benefits board program, less the retiree remittance for the public employees’ benefits board; and (2) An amount equivalent to the total employer and employee contribution rate to the school employees’ retirement system, multiplied by the estimated salaries of the employees of the contractor.

The House passed this bill (60–36). It has been referred to the Senate Early Learning and K–12 Education Committee.

Other Bills That May Have Fiscal/Hr Impacts For Districts

HB 2171 | Concerning vested vacation or paid time off upon an employee’s termination. If an employer has an established policy, practice, or agreement to provide paid vacation or paid time off, and an employee is terminated from employment by death, reduction in force, resignation, dismissal, or retirement, any of the employee’s unused vested vacation time or paid time off must be paid to the employee as wages at the employee’s final rate in accordance with the employment policy, practice, or agreement with respect to eligibility and vesting requirements.

This bill is awaiting a hearing before the House Appropriations Committee.

HB 2264 | Increasing the cap on accrued vacation leave. Increases the cap on accrued vacation leave for state employees from 240 hours to 280 hours. This bill is scheduled for Executive Action on 2/8 by the House Appropriations Committee.

HB 2304 | Concerning shared leave and industrial insurance benefits. This bill removes the requirement that an employee pursue and be found ineligible for industrial insurance wage benefits for shared leave eligibility. Specifies that an employee receiving both types of benefits not receive more than their full salary. It is scheduled for Executive Action in House Appropriations on 2/8.

SHB 2614/SB 6349 | Concerning paid family and medical leave. This bill is agency request legislation clearing up some areas with the family and medical leave act, laying out penalty process steps and clarifying certain issues.

HB 2614 had a public hearing before the House Appropriations Committee on 2/3 and is scheduled for Executive Action on 2/8.

SB 6349 remains in second reading in Senate Rules.

HB 2739 | Adjusting certain requirements of the shared leave program. Provides that state employees seeking shared leave due to illness, injury, impairment, or physical or mental condition are not required to deplete all of their annual and sick leave before receiving shared leave. Allows intermittent and non-consecutive use of shared leave.

This bill is in House Rules awaiting further action.

HB 2740 | Concerning the employment of individuals who lawfully consume marijuana. This may nor may not affect school districts since all are posted “Drug Free Zones”, but it may be worth a look.

Although scheduled for Executive Action on 2/4, no action was taken.

SSB 5473 | Studying the impact of making unemployment benefits accessible to persons with family responsibilities and other availability issues and making clarifying changes. This bill is in Senate Rules.

SB 6123 | Allowing state employee leave for organ donation. Requires agencies to allow employees to take paid leave as needed, not exceeding 30 days in a two-year period, for participate in life-giving procedures. This bill passed Ways and Means and will likely move to Senate Rules.

SB 6368 | Concerning sick leave for K–12 employees. Leave provided in this proviso not taken shall accumulate from year to year with no cap. Such accumulated time may be taken at any time during the school year may be used for the purpose of payments for unused sick leave in accordance with RCW 28A.400.210.

This bill is scheduled for Executive Action on 2/7.

Fred Yancey/ Mike Moran
The Nexus Group