“The truth is, time marches on and you have two choices: you move forward, come what may, and you experience all the sour and sweet things that fly at you from around corners, or you sit still. Don't sit still.” ~ Suzanne Palmieri
A reminder that the 17th of February is the first cut-off when policy bills have to make it out of their respective committees. Fiscal bills have until the 24th. So, the clock is running and selected bills are moving.
Listed below are bills that show some life.
Retirement Related Proposals
HB 1007/SB 5296: 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. SB 5296 is scheduled for Executive Session on 2/7.
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 has been moved to Rules Committee.
HB 1056/ SB 5349: Repealing some post-retirement employment restrictions.
Comment: Beginning January 1, 2024, any current or future retiree under the provisions of early retirement may utilize the 32 post-retirement employment provisions of RCW 41.32.802(2)
for up to 867 hours per year. This includes administrators. DRS wanted this in order to simplify the current system, particularly when it came to using retired contract services.
The substitute bill summary states, “The restrictions on receiving benefits during postretirement employment for PERS, TRS, and SERS Plans 2 and 3 retirees that retired under the 2008 ERF are lifted to allow receipt of pension payments during employment
of up to 867 hours per year of employment with a retirement system employer. Benefits for retired members that choose the 3 percent ERF are adjusted to the reductions in the 2008 ERF for purposes of benefit payments made after the effective date of
the act.”
SHB 1056 has been moved to Rules Committee. SB 5349 has been moved to Executive Session 2/7.
HB 1057/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 would provide a 3% increase not to exceed $110/month for TRS1/PERS1 Plan retirees. The Governor included this one-time increase in his released supplemental budget. Same COLA as granted last session. However, there is an addition: During
the 2023-2025 fiscal biennium, the SCPP will study and recommend a permanent ongoing cost-of-living adjustment for beneficiaries of the public employees' retirement system Plan 1 and the teachers' retirement 2 system Plan 1.
Scheduled for public hearing 1/26 before House Appropriations Committee and a public hearing 1/23 before Senate Ways and Means. Both bills are likely NTIB (Necessary to Implement the Budget so remain alive.)
SB 5121: Extending the expiration date of the joint select committee on health care oversight.
Comment: The expiration date of this committee is to be extended. Its goal must be to ensure that these multiple health and insurance regulatory agencies are not duplicating their efforts and are working toward a goal of increased quality of services
leading to reduced costs to the health care consumer.
Passed Senate 48/0 and has moved to the House.
HB 1201/SB 5294: Concerning actuarial funding of state retirement systems.
Comment: This bill deals with eliminating the unfunded liability (UAAL) of TRS/PERS Plans 1. The intent is that by so doing, the employer surcharge currently being paid to decrease the UAAL will be reduced to a zero (0%) added charge: PERS on 6/30/25;
SERS on 8/31/25 and TRS on 8/31/24. This will save the state in excess of $4B and school districts whose staffing exceeds state reimbursement will also save dollars. Cities and counties will also save money. This bill also repeals the commitment made
last session to pay $800M toward eliminating the TRS 1 unfunded liability, assuming investment returns will make up the difference.
HB 1201 is scheduled for Executive Session on 2/2 before House Appropriations but was not acted upon. A key legislator has indicated that HB 1201 and HB 1459 are a "package deal". Both must pass. The reason being that if HB 1201 is done, then there is
an opportunity to restore a permanent COLA for Plan 1 members. SB 5294 had a public hearing 1/23. Both bills are likely NTIB so will remain alive but the ‘package’ appears to be in trouble. Democrat legislators are divided on supporting
these bills, so they are likely to not succeed.
HB 1459: Providing an annual adjustment in the Public Employees' Retirement System and Teachers' Retirement System Plan 1 benefits capped at $110 per month by adjusting the long-term investment rate of return assumption.
Comment: This is basically a capped permanent COLA proposal.
This is scheduled for Executive Session on 2/2 before House Appropriations but like HB 1201 was not acted upon. See remarks above under HB 1201 regarding linkage of passage of this with HB 1201 and divided support among Democrats.
HB 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: This bill came to Sen. Rolfes from an agitated constituent who missed the deadline to continue membership in PEBB post-retirement. This bill allows a "second bite at the apple" if certain conditions and timelines are met.
Scheduled for public hearing 2/7 before Senate Ways and Means.
Other Areas of Potential Fiscal Impact (and often unfunded) to Districts
HB 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 has been moved to House Rules.
SHB 1105: Requiring public agencies to provide notice for public comment that includes the last date by which such public comment must be submitted.
Comment: Mandates a public agency that is required to solicit public comment for a statutorily specified period of time, and to provide notice that it is soliciting public comment, to include in the notice the last day by which written public comment
may be submitted. Makes an agency that violates the requirement to include in a notice for public comment the last day by which written comment may be submitted subject to a civil penalty of $500 for the first violation and $1000 for any subsequent
violation.
Passed State Government Committee 1/31.
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 has been referred to House Rules Committee.
HB 1136: Requiring employers to reimburse employees for necessary expenditures and losses.
Comment: An employer shall reimburse an employee for all necessary expenditures and losses incurred by the employee in direct consequence of the discharge of the employee's duties. Reimbursement must be paid within 30 days of the employer's actual or
constructive notice of the expenditure or loss.
This bill is scheduled for Executive Session on 2/3.
HB 1187: Concerning privileged communication between employees and the unions that represent them.
Comment: To effectuate the public policy favoring effective collective bargaining, it is necessary to protect confidential union–employee communications in the course of union representation against disclosure.
Scheduled for Executive Session on 2/3 before House Labor Committee.
HB 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. 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: Specifies that a public records request for recordings of school district board of directors meetings must include the date of the meetings requested or a range of dates. Provides that searches for public records need not include recordings of
school district board meetings unless a date is given. Requires all school district board meetings to be audio recorded, subject to exceptions for executive sessions and emergencies, with recordings kept for at least one year. 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 has been moved to the Senate.
HB 1248: Concerning pupil transportation.
Comment: One important part of the proposal is that it 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.
This bill had a public hearing on 1/23 and has not been scheduled for further action but is likely NTIB.
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.
Scheduled for a public hearing 2/7 before Senate Ways and Means.
SB 5084/HB 1558: 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 scheduled for Executive Session 2/7 before the Senate Ways and Means Committee. HB 1558 is scheduled for public hearing 2/7 before House Labor.
SB 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.
Passed to Rules Committee.
SB 5174: Providing adequate and predictable student transportation.
Comment: Of concern is the provision that provides that pupil transportation services contracts entered into, renewed, or extended after September 1, 2023, must require the contractor to provide employee health and retirement benefits comparable to those
received by school employees.
Scheduled for public hearing 2/2 before Senate Ways and Means Committee.
SB 5237: Establishing complaint procedures to address noncompliance with certain state education laws.
Comment: This is an act relating to establishing complaint procedures to address noncompliance with certain state education laws. Complaints are to be filed and investigated by OSPI. The PESB may hold the Superintendent responsible and act accordingly.
School directors can also be removed from office.
Referred to Ways and Means 1/27.
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.
Has been sent to Senate Rules Committee. HB 1656 has a public hearing 2/8 before House Labor.
SB 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.
Scheduled for Executive Session 2/7 before Senate Ways and Means.
SB 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.
SB 5505:
Addressing learning loss by expanding the school year.
Comment: This bill would increase the number of instructional hours for grades K-12.
Scheduled for a Public Hearing on 2/2 before the Senate Education Committee.
Fred Yancey
The Nexus Group LLC
