“The finish line is just the beginning of a whole new race.”

Anonymous

As Sine Die approaches, the legislature will go ‘dark’. Negotiations between both chambers, caucus members, the Governor’s office, and legislature leadership will be taking place outside of the public eye. Budgets need to be adopted, and altered bills need to be reconciled/concurred by the opposite body. The balls/bills will continue bouncing back and forth until finally caught by the Governor. Bill signings are occurring.

The status of selected bills is given below. Note that any can change with little notice. Some, such as SB 5294, that were assumed ‘dead’, may come back. There also will be bills yet to come, or that will resurrect, whose passage will be needed because they are linked to the budget. And some bills are truly dead that did not make the most recent cut-off (4/12/23).

A reminder that unless noted otherwise, bills that have been signed by the Governor are effective 90 days after adjournment. (7/23/23)

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Retirement Related Proposals

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

Comment: It allows certain individuals who separate from a position covered by the Public Employees', School Employees', and Teachers' Retirement System Plans 2, without retiring, the opportunity to participate in retiree benefits of the Public Employees' Benefits Board.

This bill has been sent to the Governor for action.

SHB 1056: Repealing some postretirement employment restrictions.

Comment: Changes the postretirement 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 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.

The Senate adopted a striker with an amendment that reads: Removes the recalculation of retirement benefits for retirees that were eligible to take a 2008 early retirement factor but took a higher reduction in benefits so that they could return to work.”

This bill passed the Senate and will be sent to the House for concurrence.

*Note Regarding Pension Funding**: A number of bills dealing with pension funding have been offered this session. The primary difference between them is how to fund or not fund any cost-of-living increase. See below for status.

ESHB 1057:Providing a benefit increase to certain retirees of the public employees' retirement system plan 1 and the teachers' retirement system plan.

Comment: This would grant a one-time, capped 3% COLA for TRS1/PERS1 plan members. It also directs the SCPP to recommend a path to regain permanent COLA for these retirees. It was amended by the Senate W/M Committee to remove provisions delaying the imposition of the contribution rate increases attributable until July 1, 2027, and directing that the supplemental contribution rate not be charged for the benefits created in this bill until July 1, 2027, and directs that the supplemental contribution rate not be charged for the benefits created in this bill. SB 5350 was a companion prior to the adoption of the House amendment. It was presumed ‘dead’ since no action had been taken since 3/28. However, the decision obviously was made to put ESHB 1057 aside in favor of SB 5350. 

ESHB 1057 is ‘dead’. See SB 5350 below.

ESSB 5294: Concerning actuarial funding of state retirement systems.

Comment: This bill was amended by the House Appropriations Committee. It lowers the surcharge contribution rates in effect for the Public Employees' Retirement System (PERS), currently 3.5% and the Teachers' Retirement System (TRS) Plans 1 rates, currently 5.75%. PERS 1 would be lowered to 2.5% in 2024; 2.0% in 2025;1.5% in 2026; 1.0% in 2027, and 0.0% in 2027. TRS 1 rates would be 1.0% in 2024: .50% in 2025, and 0.0% from 2026 forward. It reduces the scheduled payment of $800 million into the TRS 1 fund to $250 million. The substitute Senate bill was included in their budget.

This bill passed the House as amended and has been sent back to the Senate for concurrence. The Senate did not concur. The bill is in dispute.

SB 5350: Providing a benefit increase to certain retirees of the public employees' retirement system plan 1 and the teachers' retirement system plan 1.

Comment: This bill was amended by the House to Delay the impact of the benefit cost on the contribution rate for benefits added to the PERS and TRS 1 after June 30, 2009, until July 1, 2027. It specifies that a supplemental contribution rate shall not be charged for the benefits granted in the bill. Effective 1/1/2023.

It will be sent back to the Senate for concurrence. The Senate did not concur on 4/13/23. The bill will be sent back to the House. The bill is in dispute. They will be asked to reconsider. 

SB 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.

The Governor signed the bill, and it became effective 3/30/2023.

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

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

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

This bill was amended, then approved by the Senate. One adopted amendment reads, “Requires (1) the worker to provide seven calendar days' notice to the entity scheduling the exam that the independent medical exam will be recorded and (2) the Department of Labor and Industries to adopt rules to define the notification process. Another adopted amendment reads, “Removes the prohibition on recording neuropsychological exams. Prohibits the worker from materially altering the recording or posting it to social media.”

This bill will be sent back to the House for concurrence.

ESHB 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 a good cause. Senate adopted amendments expand access to unemployment insurance (UI) benefits by adding circumstances where a person may voluntarily quit for good cause and requires a report to the legislature regarding UI claims related to benefits for separations from employment because of inaccessible care for a child or vulnerable adult. Another adopted amendment provides that benefits paid because care for a child or vulnerable adult in the claimant's care is inaccessible shall not be charged to the experience rating account of any contribution paying employer.

This bill has been sent back to the House for concurrence.

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

Comment: Creates a privilege from examination and disclosure for a union representative and a union employee concerning any communication between the union representative or union employee made during union representation and creates exceptions to this privilege. • Applies the privilege from examination and disclosure to the union members and organizations that represent employees of college districts, employees of school districts, public employees, faculty at public four-year institutions of higher education, civil service employees, ferry employees, port employees, and labor unions.

This bill was amended by the Senate and will be sent back to the House for concurrence.

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

Comment: The bill requires certain public employers to provide exclusive bargaining representatives employee 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. It allows an exclusive bargaining representative to bring a court action if a public employer fails to comply with the requirement to provide information.

The bill was amended by the Senate and will be sent back to the House for concurrence.

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 Senate 48/0 and will be sent to the Governor for signature.

SHB 1521: Concerning the duties of industrial insurance self-insured employers and third-party administrators.

Comment: This bill specifies that self-insured employers and third-party administrators have a duty of good faith and fair dealing to workers with respect to all aspects of workers' compensation. • Requires the Department of Labor and Industries to enforce the duty of good faith and fair dealing. • • Provides penalties for violations of this duty. One adopted amendment reads, “Provides that nothing be interpreted as allowing a private cause of action outside of the original jurisdiction of the Department to assess penalties and rights to appeal.” Another adopted amendment reads, “Limits the duty of good faith and fair dealing and related penalties to self-insured municipal employers and their third-party administrators.”

This bill was amended by the Senate and will be sent back to the House for concurrence.

2SHB 1618: Concerning the statute of limitations for childhood sexual abuse.

Comment: This bill would remove the statute of limitations for recovery of damages as a result of childhood sexual abuse. • • Applies the act retroactively and prospectively.

This bill was scheduled for Executive Session on 3/4/23, but no action was taken. This bill did not make cut-off so may be ‘dead,’ however, there is a strong lobby promoting this, so note that ‘dead’ is in quotes.

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.

This bill has been sent to the Governor for signature.

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

Comment: This bill was amended by the House. It 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 House amended the bill to exclude from the bill persons seeking positions: • with a general authority law enforcement agency; Senate Bill Report - 3 - ESSB 5123 • with a fire department, fire protection district, or regional fire protection service authority; • as a position as a first responder; and • as a position as a corrections officer. It also codifies the underlying bill in chapter 49.94 RCW, rather than chapter 49.44 RCW, subjecting its provisions to enforcement by the Attorney General and other limitations provided under the Fair Chance Act.

Passed House 57/41 with amendments will be sent to Senate for concurrence.

SSB 5127: Clarifying school districts' ability to redact personal information related to a student.

Comment: Creates a new exemption to the Public Records Act for personal information in any records pertaining to a student currently or previously enrolled in a local education agency.

This bill will be sent to the Governor for his signature.

E2SSB 5174: Providing adequate and predictable student transportation.

Comment: Requires the Office of the Superintendent of Public Instruction (OSPI) to administer 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. • Provides that, no earlier than for a contract affecting the 2024-25 school year, school districts may only enter into a pupil transportation services contract if the contractor provides certain health benefits and retirement contributions to employees who choose to opt-in for coverage. • Provides reimbursement subject to funding provided specifically for increased costs to school districts that are directly attributable to increased benefits as required in the bill. (Although the sponsor suggests that legislators will try their best to fully fund, but…….)

This bill was amended by the House and sent back to the Senate for concurrence.

ESSB 5217: Concerning the state's ability to regulate certain industries and risk classes to prevent musculoskeletal injuries and disorders.

Comment: This bill repeals the law prohibiting the Department of Labor and Industries (Department) from adopting rules related to ergonomics or musculoskeletal disorders. • Provides limitations on the adoption of new rules, including allowing rules only for industries or risk classifications where compensable claims involved musculoskeletal injuries and disorders that are at a rate greater than two times the overall state claim rate for these types of injuries and disorders over a recent five-year period. • Requires the Department to: (1) identify industries and risk classifications most likely to be selected for rulemaking; (2) review and report certain claims data; and (3) consider certain factors during • Allows the Department to provide funding to certain employers to purchase additional equipment and requires up to three additional ergonomists to provide consultation to certain employers. Provides that no rule may be effective prior to July 1, 2026. (6) Modifies the review of claims data to data identified as compensable claims over the five-calendar year period that ended two calendar years before the report is published. Requires L&I to provide up to three additional ergonomists, funded from the accident and medical aid funds, to provide consultation to employers in the industries and risk classifications in the published list. Requires L&I annually to identify a list of industries or risk classes most likely to be selected for future rule-making and prioritize efforts to provide technical assistance to those employers.

This bill has been sent to the Governor for his signature.

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

Comment: Allows tribal compact schools, employee organizations representing school employees, and school board directors the option of providing health care through the School Employees Benefits Board 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 House 97/0. The Governor signed the bill on 3/30/23. Becomes effective 1/1/2024; however, HCA will be reaching out to eligible parties prior to that date with information.

SSB 5286: Modifying the premium provisions of the paid family and medical leave program.

Comment: Modifies the statutory formula for determining the premium rates for the Paid Family and Medical Leave Program.

This bill has been sent to the Governor for his signature.

Fred Yancey
The Nexus Group LLC