“Deadlines just aren’t real to me until I’m staring one in the face.”

Anonymous

The pace is increasing as committee move bills their respective Rules committees. Floor action is also happening as deadlines approach. It is important to keep in touch with the legislators. As Will Rogers says, “Even if you are on the right track, you will get run over if you just sit there.”

Meanwhile, a brief summary of some selected bills and/or issues is below:

1. SSB 5085 seeks to establish a Legacy Retirement System. The bill merges the assets, liabilities, and membership of Law Enforcement Officers’ and Firefighters’ Retirement System Plan 1, Public Employees’ Retirement System Plan 1 (PERS Plan 1), and the Teachers’ Retirement System Plan 1 (TRS Plan 1) retirement systems into the new Legacy Retirement System.

   The Senate Ways and Means Committee held an Executive Session 2/13.

   It is expected to pass the Senate. However, the battle will be in the House which has two concerns:

   • Members are aware of the surplus and may make attempts to transfer some of the surplus to fund other programs.
   • LEOFF 2 members are opposed to the merger. (IMHO; They want to use the surplus to fund their health benefits.)
     
     

2. SB 5086 seeks to consolidate PEBB and SEBB in some fashion. It had a public hearing on 1/30 before Senate Ways and Means Committee. This bill would consolidate the Public Employees Benefits Board Program and the School Employees Benefits Board programs into the newly created Washington Employees and Retirees Benefits Board. Multiple unions testified in opposition to the bill. It would add substantial costs to school districts (SEBB costs). The bill is not expected to advance.

3. SB 5113 creates an annual increase in the retirement benefits of retirees in the Public Employees’ Retirement System and the Teachers’ Retirement System Plan 1, of up to 3 percent. A hearing before the Senate Ways and Means Committee was held 1/23. Cost is projected at $92 Million for 2025-27 rising to $138 Million in 27-29 and continuing to increase.

4. SB 5114/HB 1312 concerns covering the premium costs of insurance during the month of one’s death. It provides a full month of public pension benefits paid in the month that a retiree dies. Senate Ways and Means held a hearing on the bill 1/23 and House Appropriations 1/27.

   There is much sympathy for the need to do this, however, the cost may make either prohibitive.

5. SB 5357/HB 1467 have been introduced. These bills reset rates for past benefit enhancements and amortizes the cost over a 15-year period (instead of the current 10-year period).

   The Senate bill was heard 1/23; the House Appropriations will hear bill 2/19.

6. HB 5478 concerns benefits authorized to be offered by the public employees’ benefits board. This bill would allow HCA to the following employee-paid, voluntary benefit plans:

   • Emergency transportation
   • Identity protection
   • Legal aid
   • Long-term care insurance
   • Noncommercial personal automobile insurance
   • Personal homeowner’s or renter’s insurance
   • Pet insurance
   • Specified disease or illness-triggered fixed payment insurance, hospital confinement fixed payment insurance
   • Travel insurance.

   
   It has been moved to Senate Rules.

7. SB 5738 permits individuals retired from the public employees’ retirement system, the teachers’ retirement system, and the school employees’ retirement system additional opportunities to work for up to 1,040 hours per year while in receipt of pension benefits.

   This bill is similar to HB 1936 below except it sunsets in 2029. It is awaiting hearing before Ways and Means.

8. HB 1642 would provide additional plan choice to members of the teachers’ retirement system plans 2 and 3, the school employees’ retirement system plans 2 and 3, and the public employees’ retirement systems 2 and 3. House Appropriations held a hearing 2/10.

   This bill is a WEA request bill. It would allow members in Plans 3 to switch into Plan 2 if they so desire.

9. HB 1790 increases defined benefit accrual for specified years of service in the state retirement systems. For years of service earned after the effective date of this section, a member of the retirement system shall receive an additional one-half of one percent of such member’s average final compensation for each year of service beyond 30 years.

   This bill was a request from WSSRA to attract and retain experienced staff while also demonstrating the work of WSSRA to potential members. It is awaiting a hearing before House Appropriations.

10. HB 1936 extends the expiration of certain school employee postretirement employment restrictions to 2027.

    The bill reads: Between March 23, 2022, and July 1, ((2025)) 2027, a retiree that retired before January 1, 2022, and who enters service in a second-class school district, as defined in RCW 28A.300.065, as either a district superintendent or an in-school administrator shall continue to receive pension payments while engaged in such service, until the retiree has rendered service for more than 1,040 hours in a calendar year. It is awaiting hearing before Appropriations.

A selected intro to some bills that could have fiscal impact /costs to districts:

1. HB 1140: Establishing empowerED scholarships using educational savings accounts.

   This bill will establish a Scholarship Program (Program) to provide parents meeting certain requirements with money for qualifying expenses related to the education of their public school-aged children for use in private and/or charter schools.
   
   This bill had a public hearing 2/6 before House Education. This bill is controversial and is likely to not move any further.

2. SHB 1213/SB 5539: Expanding protections for workers in the state paid family and medical leave program.

   This substitute House bill: Extends employment protection rights in the Paid Family and Medical Leave (PFML) Program to any employee who began employment with their current employer at least 90 calendar days before taking leave, regardless of the size of the employer.

   • Allows employers to prevent stacking certain employment protection rights by extending employment protection in the PFML Program to periods of unpaid leave protected by the federal Family and Medical Leave Act, so long as the employer provides certain notices to the employee, and providing that employment protection expires after certain periods.
   • Expands health care coverage protection during any period in which an employee receives PFML Program benefits and is also entitled to employment protection.
   • Expands access to grants for small employers to offset the costs of employees’ use of leave.

   
   It has been moved to House Appropriations. The Senate bill is scheduled for public hearing 2/18 before Senate Labor.
   
   Costs to state/employers from fiscal note are indeterminate.

3. HB 1334: Modifying the annual regular property tax revenue growth limit. This bill changes the 101 percent revenue growth limit for state and local property taxes to 100 percent plus population change and inflation, with a capped limit of 103 percent.

   Should counties/cities be allowed to increase their taxes from .02% to .03%, this could affect M & O levy success/asks. This bill had a public hearing 2/11 before House Finance.

4. SB 5041: Concerning unemployment insurance benefits for striking or lockout workers.

   This bill: Allows individuals unemployed due to a labor strike to receive unemployment insurance (UI) benefits following a specified disqualification period and the waiting week, provided that the labor strike is not found to be prohibited by federal or state law in a final judgment.

   • Removes the provision disqualifying an individual for UI benefits based on an employer-initiated lockout resulting from a strike against another employer in a multi-employer bargaining unit.

   
   Executive Session has been scheduled 2/2 before Senate Labor. Again, no fiscal note is available at this time.

5. SSB 5291: Implementing the recommendations of the long-term services and supports trust commission.

   The substitute bill: Prohibits out-of-state participants from withdrawing from the Long-Term Services and Supports Trust Program (Program).

   • Make the exemption from the Program automatic for active-duty military service members with off-duty civilian work and employees holding a nonimmigrant visa for temporary work.
   • Allows an exempt employee who previously attested to having long-term care insurance to rescind the exemption prior to July 1, 2028.
   • Allows for a limited pilot program in 2026 to assess the Program’s processes and system capacities.
   • Creates standards and requirements for supplemental long-term care insurance policies designed for coverage after Program benefits are exhausted.

   
   SB 5291 has been passed to Senate Rules.

6. SB 5292: Concerning paid family and medical leave rates.

   This bill: Requires the Employment Security Department Commissioner to set the paid family and medical leave program premium rate based on the Office of Actuarial Services annual report.

   • Mandates the Office of Actuarial Services annual report to provide for a rate to close the rate collection year with a three-month reserve, in addition to the current requirement to maintain a four-year solvency.
   • Eliminates the statutory formula used to calculate the rate and the 1.2 percent rate cap.

   
   The bill has been deleted from Executive Session 2/21 before Senate Labor.

7. SB 5378: Expanding access to grants within the paid family and medical leave insurance program for small school districts.

   This bill makes certain small school districts eligible for paid family and medical leave grants. The following employers may apply to ESD for a grant:

   • Employers with 51 to 150 employees; employers with 50 or fewer employees who are assessed all premiums
   • Employers classified as school districts of the second class, those having less than 2000 pupils.

   
   The bill had a public hearing 2/3 before House Labor.

8. SB 5422/HB 1622: Allowing bargaining over matters related to the use of artificial intelligence. This bill requires most state and local government public employers to bargain with employees’ unions over the use of artificial technology that affects the wages, hours, or terms and conditions of employment.

   The Senate bill is scheduled for public hearing 2/17 and Executive Session 2/21 before Senate Labor. The House Labor has scheduled Executive Session 2/18.

   These are interesting bills. Should a district use AI in any fashion that replaces an employee? Unions often file grievances when they feel their work is taken away from a member and absorbed by someone not in union. It is akin to HB 1739 regulating the use of self-service checkout stations. This bill seeks to preserve employee positions by restricting/modifying use of self-checkout stations.

Fred Yancey
The Nexus Group LLC