"The aim of an argument or discussion should not be victory, but progress."

Joseph Joubert

Both houses were and remain in caucus or in debate on the floor, considering various bills on their respective calendars. Committee work will begin in earnest once the deadline to pass bills from their house of origin. (March 8^th). House bills that passed will then be heard in Senate committees and vice versa.

Listed below are bills that have either moved or appear still ‘alive’. Remember that NTIB bills are always in the background and may come forward at any time. And, technically, any bill can be resurrected.

---

Retirement Related Proposals

As a repeat: Previous reports have covered the bills related to addressing the lack of a cost-of-living increase (COLA) for members in TRS/PERS Plans 1 and requesting a COLA for members of those plans. They are: ESHB 1057/SB 5350, HB 1201/ESSB 5294, and HB 1459.

There are four bills currently moving that deal with pensions: two sets/companions per chamber, and all four slightly differing.

SB 5350 would grant a one-time, capped 3% COLA for TRS1/PERS1 plan members. It also directs the Select Committee on Pension Policy (SCPP) to recommend a path to regaining a permanent COLA for these retirees.

The Senate passed the bill 48/0, and it has been moved to House Appropriations.

ESSB 5294 was amended. The principal change was that, as originally proposed, it took the $800 Million last session budgeted to lower the unfunded liability in TRS Plan 1. The amended bill leaves $250 Million toward the liability and transfers the rest to the General Fund. In short, it: Removes the underlying provisions of the bill. • Sets the existing minimum UAAL rates to end after FY 2023. • Sets UAAL rates for FY 2024 through 2027. Establishes a new minimum UAAL rate of 0.5 percent that goes into effect in FY 2028.  

The Senate passed the bill 48/0, and it has been moved to House Appropriations.

ESHB 1057 would grant a one-time, capped 3% COLA for TRS1/PERS1 plan members. It also directed the SCPP to recommend a path to regaining a permanent COLA for these retirees. Unlike its companion, an adopted amendment froze current rates until 2027.

The bill passed the House 96/0 and will be moved to Senate Ways and Means.

HB 1201 Eliminates the minimum contribution rates for amortizing the unfunded liabilities in the Teachers' Retirement System Plan 1 (TRS 1), beginning August 31, 2024, and for the Public Employees' Retirement System Plan 1 (PERS 1), beginning June 30, 2025. • Fixes the employer contribution rate for the unfunded liabilities in PERS 1 and TRS 1 at zero until 2029, excluding amounts to amortize benefit improvements made after June 30, 2009. • Repeals the scheduled payment of $800 million into the TRS 1 fund scheduled for June 30, 2023.

This bill remains in Rules. *Note* Senate passed its companion.

Regarding costs:

Numerous fiscal notes are attached to each of these bills. The bottom line is that they all address the unfunded liability and the resulting surcharges that employers are currently paying to lower the UAAL.

A simple, generalized summary is that current surcharge rates (paid by employers only) are PERS 3.85%/ TRS1 6.46%. Effective in 2023: Under HB 1201 the rates go to 0% in 2026 for PERS and 0.71% for TRS 1 in 2025. Savings to the state’s General Fund will be $427.7 million in 2023-2025. Obviously, savings will also go to employers such as school districts. The other bills also have various projections as to future rates. All lower the current surcharge rates. ESHB 1057 also includes language that any benefit improvements (such as a COLA) will have no effect on rates until July 1, 2027.

HB 1007: Concerning interruptive military service credit for members of the state retirement systems.

Comment: Retirement credit can be awarded in any armed conflicts if the participant was awarded the respective campaign or expeditionary badge or medal…. the ‘expeditionary badge' qualifier was added.

HB 1007 passed the House 97/0 and has moved to the Senate Ways and Means.

HB 1008: Concerning participating in insurance plans and contracts by separated Plan 2 members of certain retirement systems.

Comment: This bill would simply make retiree insurance provisions uniform and equitable for Plan 2 and 3 members.

HB 1008 passed the House 93/0 and has been moved to Senate Ways and Means.

SHB 1056: Repealing some post-retirement employment restrictions.

Comment:Changes the post-retirement employment restrictions on benefits eligibility for Public Employees' Retirement System, Teachers Retirement System, and School Employees Retirement System Plans 2 and 3 members that retired under the 2008 Early Retirement Factors (ERFs). • Permits 2008 ERF members to work in the retirement system–covered employment for up to 867 hours per year without suspension of retirement benefits. • Adjusts benefits for individuals that chose the 3 percent per year early retirement reduction to the level of reduction in the 2008 ERFs for future benefit payments. Effective 1/1/2024.

SHB 1056 passed the House 93/0 and has moved to Senate Ways and Means.

SSB 5121: Extending the expiration date of the joint select committee on health care oversight.

Comment: Extends the expiration date of the Joint Select Committee on Health Care Oversight from December 31, 2022, until December 31, 2026, and renames it the Joint Select Committee on Health Care and Behavioral Health Oversight.

Passed Senate 48/0. Executive Session before the House Health Care and Wellness Committee is scheduled 3/10.

SSB 5490: Concerning health care coverage for retired or disabled employees denied coverage for failure to timely notify the authority of their intent to defer coverage.

Comment: A retired or disabled employee who was eligible to defer coverage when they left employment, but failed to do so and later applied for retiree coverage and was denied solely for failure to notify HCA of their plan to defer coverage, and appealed the denial of benefits by December 31, 2022, may enroll in retiree health care. A retired or disabled employee enrolling in benefits may only enroll in a fully-insured Medicare advantage or Medicare supplement plan. A retiree taking advantage of this provision must apply by the end of the open enrollment period for the plan year beginning January 1, 2024.

This bill passed the Senate 48/0 and sent to House Health Care Committee.

Other Areas of Potential Fiscal Impact (and often unfunded) to Districts

SHB 1068: Concerning injured workers' rights during compelled medical examinations.

Comment: This allows an injured worker to make an audio and video recording of a compelled medical examination and to have one person of the worker's choosing present during the examination. 

This bill passed the House 65/33 and will be moved to the Senate Labor and Commerce Committee.

SHB 1106: Concerning qualifications for unemployment insurance when an individual voluntarily leaves work.

Comment: Expands access to unemployment insurance benefits by adding circumstances where a person may voluntarily quit for good cause.

This bill remains on the House floor calendar for possible action.

SHB 1136: Requiring employers to reimburse employees for necessary expenditures and losses.

Comment: Requires employers to reimburse employees for all necessary expenditures and losses incurred in direct consequence of their duties.

This bill is in House Rules awaiting action.  

SHB 1187: Concerning privileged communication between employees and the unions that represent them.

Comment: A testimonial privilege is established for a union representative and an employee the union represents or has represented from being examined or required to disclose any communication between an employee and union representative or between union representatives that is made in the course of union representation. Exceptions to this privilege are established.

This bill is in House Rules waiting movement.

SHB 1200: Requiring public employers to provide employee information to exclusive bargaining representatives.

Comment: Requires certain public employers to provide exclusive bargaining representatives' information, such as contact information, date of hire, salary, and job site location, of employees in bargaining units if the employer has that information in its records. The employer must provide the information within 21 business days from the date of hire for new employees in an appropriate bargaining unit and every 120 business days for all employees in an appropriate bargaining unit. In addition, the employer must provide the information in an editable format. • Allows an exclusive bargaining representative to bring a court action if a public employer fails to comply with the requirement to provide information.

HB 1200 has been moved to House Rules.

 EHB 1210:  Concerning the recording of school board meetings.

Comment: Requires all school district board meetings to be audio recorded, subject to exceptions for executive sessions and emergencies, with recordings kept for one year. • Specifies that a public records request for recordings of meetings of a school district board of directors must include the date of the meetings requested or a range of dates. • Encourages school districts to make the content of school board of directors meetings available in formats accessible to individuals who need communication assistance and in languages other than English.

This bill passed House 96/1 and had a public hearing before the Senate State Government Committee 2/17.

SHB 1248: Concerning pupil transportation.

Comment: Requires the Superintendent of Public Instruction to provide transportation safety net awards to school districts with excess special passenger costs for special education, homeless, and foster students, as defined in the operating budget. • Requires that school district contracts for pupil transportation services must include sufficient funds to provide employees of the contracting employer with health benefits and pension contributions equivalent to those of school district classified employees. • Provides one-time supplemental allocations to districts that experience higher costs because of the new contract requirements. (According to the fiscal note, these allocations are just partial and paltry reimbursement for added costs for the benefits.)

This bill has been moved to House Rules for possible action.

ESSHB 1320: Concerning access to personnel records.

Comment: Specifies that an employer must provide the employee's complete, unredacted personnel file within 14 calendar days of the request from the employee, former employee, or their attorney, agent, or fiduciary. • Requires an employer to provide to a former employee, upon request, a statement of the employee's discharge date and reasons, if any, for the discharge. • Creates a private cause of action to enforce the requirements. Requires the Department of Labor and Industries and the Employment Security Department to provide employers with information regarding the employer's obligations and the employee's rights.

Passed the House 56/40 and will be moved to Senate Labor and Commerce committee.

SB 5059:  Concerning prejudgment interest.

Comment: This was proposed last session. Briefly stated, judgments founded on the tortious conduct of a "public agency" shall bear interest from the date ((of entry)) the cause of action accrued. So, if a district is found liable for neglecting to act in a child’s best interest, years after the fact, it will pay a penalty and interest from the day the neglect/damage first occurred from the date the action is commenced or the date the minor attains the age of eighteen years, whichever is earlier.

This bill has been moved to Rules for possible pull to floor calendar.  

SB 5084: Creating a separate fund for the purposes of self-insured pensions and assessments.

Comment: Creates a self-insurance reserve fund for payments from self-insured employers related to workers' compensation pensions and from the overpayments reimbursement fund.

SB 5084 is in Senate Rules.

ESSB 5123: Concerning the employment of individuals who lawfully consume cannabis.

Comment: Prohibits employers, with some exceptions, from discriminating against a person in hiring if the discrimination is based on the person's use of cannabis outside of work or on certain employer-required drug screening tests.

The bill does not: prohibit an employer from basing initial hiring decisions on scientifically valid drug screening conducted through methods that do not screen for non-psychoactive cannabis metabolites; • apply to testing for controlled substances other than pre-employment, such as post-accident testing or testing because of suspicion of impairment or being under the influence of alcohol, controlled substances, medications, or other substances; • affect the rights or obligation of an employer to maintain a drug and alcohol-free workplace, or any other right or obligation of an employer required under federal law or regulation; • apply to applicants in the airline or aerospace industries, or applicants applying for a position that requires a federal government background investigation or security clearance; or • apply to safety-sensitive positions for which impairment while working presents a substantial risk of death.

Passed Senate 28/21. Sent to House Labor for scheduling.

SHB 5174: Providing adequate and predictable student transportation.

Comment: Removes provisions that modify the student transportation funding formula. • Removes additional monthly reporting requirements. Removes provision requiring transportation contractors to provide employee health and retirement benefits comparable to those received by school employees. • Creates a special passenger safety net program. • Updates intent section.  

One proposed amendment of note, sponsored by Sen. Hasegawa, restores the provisions regarding health and retirement benefits. Part of the effect statement reads: Requires OSPI, subject to appropriations, to provide a one-time supplemental transportation allocation to districts that see an increase in costs due to these new requirements, not to exceed $200 per employee per month. Provides reporting requirements and restrictions on use of funds.

This has been moved to the floor calendar.

SB 5240/ HB 1656: Concerning unemployment insurance benefits appeal procedures.

Comment: A dispute of an individual's initial determination, determination of allowance or denial of allowance of benefits, or redetermination of allowance or denial of benefits, all matters covered by such initial determination, determination, or redetermination shall be deemed to be in issue subject to appeal.

SB 5240 passed the Senate 47/0 and has been moved to House Labor Committee. HB 1656 is in House Rules.

SSB 5275: Expanding access to benefits provided by the school employees' benefits board.

Comment: Tribal compact schools, employee organizations representing school employees, and school board directors may enter into a contract with the HCA to provide health care benefits to their employees through SEBB beginning January 1, 2024. Employers opting into coverage under SEBB may determine the terms of employee and dependent eligibility and must pay premiums set by HCA.

Passed Senate and has been moved to House Appropriations.

SSB 5286: Modifying the premium provisions of the Paid Family and Medical Leave program.

Comment: Amends the premium rate calculation in the Paid Family and Medical Leave Program (PFML) to be based on a specified formula rather than the Family and Medical Leave Insurance Account (Account) balance ratio on September 30th of the previous year. • Sets a maximum rate of 1.2 percent and removes the Employment Security Department's authority to assess a solvency surcharge if the Account balance ratio falls below a certain threshold.

Passed Senate 48/0 and moved to House 2/3, awaiting a date for public hearing before House Labor.

SB 5296: Concerning interruptive military service credit for members of the state retirement systems.

Comment: Members of the state's retirement systems who leave employment to enter the armed forces of the United States may be eligible for interruptive military service credit. Interruptive military service credit applies to all Washington state retirement systems. A member can qualify for up to five years of no-cost interruptive military service credit. The employer and state pay their contributions plus interest and the system subsidizes the member contributions and interest.

Passed the House 49/0 and will be sent to House Appropriations.

Fred Yancey
The Nexus Group LLC