“The time has come,” the walrus said, “to talk of many things: of shoes,
and ships-and sealing wax-of cabbages and kings.”

Lewis Carroll

The second year of the 68^th Washington State Biennial Legislature has begun.

Given that this will be a "short" session, the pace will be brisk (an understatement). Numerous bills have been and will continue to be introduced. Some are good ideas; others are not, and some are just plain silly. Hearings have started.  

A caveat:  There are always more bills proposed than will survive the entire process. (Thank goodness!) With that in mind, below is a report and comments on selected bills that may or may not remain as the session unfolds. The point is that until hearings on selected bills are scheduled, most are just titles and text with no explanations or fiscal notes. As these become available, more detail will be presented in this report.

Also, some bills have companion bills from the opposite house. If the companion is not also scheduled for a hearing, it is assumed that the bill scheduled will be the vehicle. See some notes below.

Retirement Related Proposals

General Comment: The unfunded pension liability (UAAL) in the TRS/PERS Plans 1 is due to lessen in the 2025-27 Biennium. That will result in $300+ million in savings for the state. School districts are currently paying pension surcharges in addition to the regular pension contributions. These surcharges will be substantially reduced under a timeline proposed by OFM and proposed legislation, saving the districts dollars they must allocate, particularly for excess staff not funded by the state. Cities and counties will also save money. Eventually, the surcharge will be zero, and all that will be left may be a result of benefit improvements. The reduced, projected contribution rates can vary as well. Exactly when this happens is subject to both investment returns and actual experience. For example, the current estimated contribution rate for PERS 1 for 2025 is 6.36%, and the surcharge is an additional 2.47%. For 2025-27, the rates change to 5.83% and 1.47%, and for 2027-2029; 4.85% and 0.92%.

HB 1985: Providing a benefit increase to certain retirees of the public employees' retirement system plan 1 and the teachers' retirement system plan 1.

Sponsors: Timmons, Leavitt, Fitzgibbon, Ryu, Ramos, Ramel, Bateman, Ormsby, Jacobsen, Callan, Rule, Kloba, Street, Doglio, Fosse, Paul, Bergquist, Goodman, Ortiz-Self, Lekanoff, Reeves, Nance, Riccelli, Hackney, Pollet, Shavers

By Request: Select Committee on Pension Policy (SCPP)

Comment: This bill would provide an ad-hoc 3% increase in 2024 not to exceed $125/month for TRS1/PERS1 Plan retirees. This is an increase in the ad-hoc COLA approved last session for paid in 2023. The SCPP was unanimous in recommending this second year COLA. A reminder that during the 2024 interim, 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.

It is scheduled for public hearing in the House Committee on Appropriations at 4:00 PM, Jan. 15^th.

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

Some bills are listed and not yet, if ever, scheduled for hearings. The bill titles and a brief read of each indicate some potential impact to districts. As hearings and bill summaries are released, more information will be provided.

HB 1905 -  Including protected classes in the Washington equal pay and opportunities act.

Sponsors: Mena, Senn, Berry, Cortes, Morgan, Ortiz-Self, Ramel, Ramos, Bateman, Reed, Ormsby, Callan, Kloba, Macri, Street, Gregerson, Doglio, Orwall, Bergquist, Goodman, Reeves, Lekanoff, Hackney, Fosse, Pollet, Davis, Simmons

Comment: Amends the Equal Pay and Opportunities Act to prohibit an employer from discriminating in compensation and career advancement opportunities against similarly employed employees based on the employee's age, sex, marital status, sexual orientation, race, creed, color, national origin, citizenship or immigration status, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability.

This bill was scheduled for a public hearing in the House Committee on Labor & Workplace Standards at 8:00 AM and now scheduled for executive session in the House Committee on Labor & Workplace Standards at 10:30 AM, Jan. 19^th.

HB 2127 - 2023-24: Concerning workers' compensation incentives to return to work.

Sponsors: Schmidt, Berry, Leavitt, Reed, Ormsby, Graham, Pollet

Comment: This bill is scheduled for public hearing in the House Committee on Labor & Workplace Standards at 10:30 AM, Jan. 16^th.

SB 5894: Including protected classes in the Washington equal pay and opportunities act.

Sponsors: Nobles, Keiser, Frame, Hasegawa, Kuderer, Liias, Lovelett, Nguyen, Randall, Saldaña, Stanford, Trudeau, Valdez, Wilson, C.

Comment: Companion to 1905 above. It is scheduled for public hearing in the Senate Committee on Labor & Commerce at 10:30 AM, Jan. 15^th.  

HB 2136 - 2023-24 Concerning prevailing wage sanctions, penalties, and debarment.

Sponsors: Ormsby, Schmidt, Doglio, Farivar, Berry, Simmons, Reed, Ramel, Mena, Goodman, Berg, Fosse, Reeves, Pollet, Kloba

Comment:  It is scheduled for public hearing in the House Committee on Labor & Workplace Standards

SB 6111 - 2023-24 Concerning prevailing wage sanctions, penalties, and debarment.

Sponsors: Conway, Saldaña, Trudeau, Randall, Lovick, Keiser

Comment: Companion to 2136 above. Referred to Labor & Commerce 

HB 2246 - Concerning vacation leave accrual for state employees.

Sponsors: Bateman, Low, Gregerson, Bronoske, Robertson, Reeves, Paul, Reed, Doglio

Comment: No hearing scheduled to date.

SB 5059 - Concerning pre-judgment interest.

Sponsors: Kuderer, Trudeau, Conway, Nobles, Pedersen, Stanford, Valdez, Wellman

Comment: Dan Steele has already addressed this bill and its potential for adversely affecting school district finances. It is scheduled for public hearing in the Senate Committee on Ways & Means at 4:00 PM, Jan. 15^th. 

HB 1649 - Concerning prejudgment interest.

Sponsors: Hackney, Berry, Taylor, Stonier, Pollet, Macri, Fosse

Comment: No hearing scheduled to date. It appears the Senate bill (above) will be the vehicle to move.

HB 1618 - Concerning the statute of limitations for childhood sexual abuse.

Sponsors: Farivar, Simmons, Wylie, Berry, Walen, Fosse, Morgan, Macri, Pollet, Doglio, Reed, Caldier, Orwall

Comment: Again, this has been addressed in previous reports and the potential to create economic havoc within districts remains. No hearings are scheduled to date.

SB 5777 - Concerning unemployment insurance benefits for striking or lockout workers.

Sponsors: Keiser, Conway, Lovick, Valdez, Trudeau, Shewmake, Randall, Van De Wege, Dhingra, Stanford, Hasegawa, Nguyen, Hunt, Kauffman, Liias, Frame, Kuderer, Nobles, Pedersen, Salomon, Wilson, C.

Comment: Deletes a provision that disqualifies employees in a multi-employer bargaining unit from unemployment insurance benefits when the employees have been locked out following a strike against the employers in the bargaining unit. Modifies the period of disqualification from unemployment insurance benefits for striking workers to end at the earlier of the Sunday, following the first day of the strike or at the end of the strike.

A public hearing was held on Jan. 9^th before the Senate Committee on Labor & Commerce.

HB 1893 -  Concerning unemployment insurance benefits for striking or lockout workers.

Sponsors: Doglio, Berry, Fosse, Reeves, Farivar, Hackney, Ryu, Ortiz-Self, Orwall, Callan, Macri, Goodman, Senn, Slatter, Riccelli, Tharinger, Bronoske, 

Ramel, Wylie, Pollet, Cortes, Chopp, Bergquist, Berg, Fey, Donaghy, Reed, Street, Stonier, Kloba, Leavitt, Mena, Simmons, Morgan, Alvarado, Walen, Taylor, Peterson, Ormsby, Stearns, Thai, Bateman, Duerr, Ramos, Rule, Gregerson, Lekanoff, Nance, Santos, Shavers, Davis

Comment; Companion to SB 5777 above. Hearing held on Jan 9 before the House Committee on Labor & Workplace Standards at 10:30 AM. It is scheduled for executive session in the House Committee on Labor & Workplace Standards at 10:30 AM, Jan 19^th.

SB 5789 -  Concerning the sales and use tax for school construction assistance program capital projects.

Sponsors: Mullet, Schoesler, Dozier, Nobles, Pedersen, Torres

Comment: This bill has been referred to Ways and Means.

SB 5793 -  Concerning paid sick leave.

Sponsors: Saldaña, Keiser, Kuderer, Lovelett, Nobles, Stanford, Valdez, Wilson, C.

Comment: This bill appears to broaden acceptable uses for sick leave. It has been scheduled for public hearing in the Senate Committee on Labor & Commerce at 10:30 AM, Jan 15^th.

HB 1991 -  Concerning paid sick leave.

Sponsors: Fosse, Berry, Ramel, Reed, Ormsby, Ryu, Callan, Kloba, Doglio, Chopp, Paul, Berg, Lekanoff, Nance, Riccelli, Cortes, Pollet

Comment: Companion to 5793 above. It has been scheduled for public hearing in the House Committee on Labor & Workplace Standards at 8:00 AM, Jan. 17^th.

SB 5924 - 2023-24 Concerning access to personnel records.

Sponsors: Kuderer, Wellman, Conway, Frame, Hasegawa, Hunt, Keiser, Lovelett, Nobles, Stanford, Valdez, Wilson, C.

Comment: Requires an employer to furnish an employee, former employee, or their designee with the employee's personnel file at no cost within 21 calendar days of a request. Mandates an employer to furnish a former employee with a signed written statement with the effective date of discharge, whether the employer had a reason for the discharge and, if so, the reasons, within 21 calendar days of the written request. Allows an employee or former employee to bring a private action, after five days notice, for violations of certain rights regarding personnel files, and discharge information, for equitable relief, graduated statutory damages up to $1,000, and reasonable attorneys' fees and costs of each violation.

Scheduled for public hearing in the Senate Committee on Labor & Commerce at 8:00 AM, January 11.

SB 6045 - Concerning school district efficiencies and consolidation.

Sponsors: Hunt, Valdez

Comment: Self-explanatory. This is not the first time this idea of forcing efficiencies has been introduced. Is awaiting a hearing.

Fred Yancey
The Nexus Group LLC