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HB1392 • 2026

Medicaid access program

Creating the medicaid access program.

Education Healthcare Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Macri, Representative Leavitt, Representative Simmons, Representative Davis, Representative Berry, Representative Ryu, Representative Callan, Representative Rule, Representative Stearns, Representative Peterson, Representative Taylor, Representative Reed, Representative Ramel, Representative Alvarado, Representative Doglio, Representative Tharinger, Representative Fey, Representative Salahuddin, Representative Bernbaum, Representative Fosse, Representative Pollet, Representative Street, Representative Scott, Representative Santos
Last action
2025-03-20
Official status
H subst for
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Medicaid access program

Medicaid access program

What This Bill Does

  • Medicaid access program

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

ADOPTED AND ENGROSSED

Plain English: 1392-S AMS ENGR S2795.E SHB 1392 - S COMM AMD By Committee on Ways & Means ADOPTED AND ENGROSSED 04/14/2025 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.

  • 1392-S AMS ENGR S2795.E SHB 1392 - S COMM AMD By Committee on Ways & Means ADOPTED AND ENGROSSED 04/14/2025 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.
  • Sec.
  • 1.
  • The definitions in this section apply 3 throughout this chapter and chapter 48.--- RCW (the new chapter 4 created in section 15 of this act) unless the context clearly 5 requires otherwise.6 (1) "Authority" means the Washington state health care authority.7 (2) "Commissioner" means the insurance commissioner or his or her 8 designee.
1392-S AMS WM S2795.1

0 • Ways & Means

ADOPTED AS AMENDED

Plain English: 1392-S AMS WM S2795.1 SHB 1392 - S COMM AMD By Committee on Ways & Means ADOPTED AS AMENDED 04/14/2025 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.

  • 1392-S AMS WM S2795.1 SHB 1392 - S COMM AMD By Committee on Ways & Means ADOPTED AS AMENDED 04/14/2025 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.
  • Sec.
  • 1.
  • The definitions in this section apply 3 throughout this chapter and chapter 48.--- RCW (the new chapter 4 created in section 15 of this act) unless the context clearly 5 requires otherwise.6 (1) "Authority" means the Washington state health care authority.7 (2) "Commissioner" means the insurance commissioner or his or her 8 designee.
1392-S AMH SHMK H1844.1

159 • Schmick

WITHDRAWN

Plain English: 1392-S AMH SHMK H1844.1 SHB 1392 - H AMD 159 By Representative Schmick WITHDRAWN 03/20/2025 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.

  • 1392-S AMH SHMK H1844.1 SHB 1392 - H AMD 159 By Representative Schmick WITHDRAWN 03/20/2025 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.
  • Sec.
  • 1.
  • The definitions in this section apply 3 throughout this chapter unless the context clearly requires 4 otherwise.5 (1) "Authority" means the Washington state health care authority.6 (2) "Covered lives" means all persons residing in Washington 7 state who are covered by a medicaid managed care organization.8 (3) "Medicaid managed care organization" means a managed health 9 care system under contract with the state of Washington to provide 10 services to medicaid enrollees under RCW 74.09.522.11 NEW SECTION.
1392-S AMH SHMK MORM 010

561 • Schmick

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1392-S AMH SHMK MORM 010 1 - Official Print EFFECT: Changes the Office of the Insurance Commissioner's assessment requirement from a per member per month assessment of $0.50 per covered life for health carriers to $0.05 per covered life for health carriers.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1392-S AMH SHMK MORM 010 1 - Official Print EFFECT: Changes the Office of the Insurance Commissioner's assessment requirement from a per member per month assessment of $0.50 per covered life for health carriers to $0.05 per covered life for health carriers.
  • Removes the requirement that the ratio of the total assessments collected from Medicaid managed care organizations and health carriers must be set to 36 to one, respectively.
  • 1392-S AMH SHMK MORM 010 SHB 1392 - H AMD 561 By Representative Schmick NOT ADOPTED 03/20/2025 On page 2, line 35, after "of" strike "$0.50" and insert "$0.05" On page 3, beginning on line 3, strike all of subsection (c) --- END
1392-S AMH SHMK MORM 011

894 • Schmick

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1392-S AMH SHMK MORM 011 1 - Official Print EFFECT: Removes three allowable disbursements from the Medicaid Access Program Account: 1) to pay for the Health Care Authority's administrative expenses for the Medicaid Access Account; 2) for $35,991,000 in fiscal year 2027 to be used for in lieu of state general fund payments for Medicaid services; and 3) for administrative and service-related costs to expand Medicaid access in schools through the school-based health services program, school-based health clinics, and on-site behavioral health services.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1392-S AMH SHMK MORM 011 1 - Official Print EFFECT: Removes three allowable disbursements from the Medicaid Access Program Account: 1) to pay for the Health Care Authority's administrative expenses for the Medicaid Access Account; 2) for $35,991,000 in fiscal year 2027 to be used for in lieu of state general fund payments for Medicaid services; and 3) for administrative and service-related costs to expand Medicaid access in schools through the school-based health services program, school-based health clinics, and on-site behavioral health services.
  • 1392-S AMH SHMK MORM 011 SHB 1392 - H AMD 894 By Representative Schmick NOT ADOPTED 03/20/2025 On page 5, line 26, after "process;" insert "and" On page 5, beginning on line 27, after "(c)" strike all material through "(f)" on line 33 On page 6, beginning on line 5, after "both" strike all material through "services" on line 9 --- END
1392-S AMH SHMK MORM 012

895 • Schmick

NOT ADOPTED

Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1392-S AMH SHMK MORM 012 1 - Official Print EFFECT: Removes language allowing the Health Care Authority to increase Medicaid rates for professional services to a percentage of corresponding Medicare rates if sufficient funds are not available to increase Medicaid rates to corresponding Medicare rates.

  • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1392-S AMH SHMK MORM 012 1 - Official Print EFFECT: Removes language allowing the Health Care Authority to increase Medicaid rates for professional services to a percentage of corresponding Medicare rates if sufficient funds are not available to increase Medicaid rates to corresponding Medicare rates.
  • 1392-S AMH SHMK MORM 012 SHB 1392 - H AMD 895 By Representative Schmick NOT ADOPTED 03/20/2025 On page 6, beginning on line 24, after "services." strike all material through "subsection." on line 28 --- END
1392-S AMS RICC S3010.2

375 • Riccelli

ADOPTED

Plain English: 1392-S AMS RICC S3010.2 SHB 1392 - S AMD TO WM COMM AMD (S-2795.1/25) 375 By Senator Riccelli ADOPTED 04/14/2025 On page 2, line 19, after "of" strike "$18" and insert "$16"1 On page 2, line 35, after "first" strike "3,000,000" and insert 2 "2,300,000" 3 On page 2, line 38, after "first" strike "3,000,000" and insert 4 "2,300,000" 5 On page 5, line 21, after "services in" strike "the amount of 6 $35,991,000" and insert "an amount not to exceed $35,000,000"7 On page 6, beginning on line 3, after " (1)" strike all material 8 through "subsection." on line 21 and insert "The medicaid access 9 program is hereby created.

  • 1392-S AMS RICC S3010.2 SHB 1392 - S AMD TO WM COMM AMD (S-2795.1/25) 375 By Senator Riccelli ADOPTED 04/14/2025 On page 2, line 19, after "of" strike "$18" and insert "$16"1 On page 2, line 35, after "first" strike "3,000,000" and insert 2 "2,300,000" 3 On page 2, line 38, after "first" strike "3,000,000" and insert 4 "2,300,000" 5 On page 5, line 21, after "services in" strike "the amount of 6 $35,991,000" and insert "an amount not to exceed $35,000,000"7 On page 6, beginning on line 3, after " (1)" strike all material 8 through "subsection." on line 21 and insert "The medicaid access 9 program is hereby created.
  • 10 (2) By January 1st of the second plan year after conditions of 11 section 2 of this act are met, professional services rates for 12 anesthesia, diagnostics, intense outpatient, opioid treatment 13 programs, emergency room, inpatient and outpatient surgery, inpatient 14 visits, low-level behavioral health, maternity services, office and 15 home visits, consults, office administered drugs, vision, and other 16 physician services, for services that are not reimbursed at or above 17 medicare rates as of December 31, 2024, must be increased uniformly 18 across professional service categories by a percentage of 19 corresponding medicare rates as of December 31, 2024, based on 20 availability of funds in the account created in section 5 of this act 21 for rate increases from collections in the preceding plan year.22 (3) By January 1st of the third plan year after the conditions of 23 section 2 of this act are met, and annually thereafter, the rates for 24 all services listed in subsection (2) of this section shall be 25 adjusted using the most recently published medicare economic index 26 available at the time rates are established for the plan year."27 Renumber the remaining subsection consecutively and correct any 28 internal references accordingly.
  • 29 Code Rev/MW:akl 1 S-3010.2/25 2nd draft EFFECT: • Changes the amount the Health Care Authority shall assess managed care organizations in the first year following plan approval from $18 to $16.
  • • Reduces the number of member months to which the assessment may be applied from 3,000,000 to 2,300,000 for both managed care organizations and health carriers.

Bill History

  1. 2025-03-20 House

    1st substitute bill substituted.

Official Summary Text

Medicaid access program

Current Bill Text

Read the full stored bill text
AN ACT Relating to creating the medicaid access program; 1
reenacting and amending RCW 43.84.092 and 43.84.092; adding a new 2
chapter to Title 74 RCW; adding a new chapter to Title 48 RCW; 3
creating a new section; providing an effective date; providing an 4
expiration date; providing a contingent expiration date; and 5
declaring an emergency. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
NEW SECTION. Sec. 1. The definitions in this section apply 8
throughout this chapter and chapter 48.--- RCW (the new chapter 9
created in section 15 of this act) unless the context clearly 10
requires otherwise.11
(1) "Authority" means the Washington state health care authority.12
(2) "Commissioner" means the insurance commissioner or his or her 13
designee. 14
(3) "Covered lives" means all persons residing in Washington 15
state who are covered: 16
(a) Under a fully insured individual or group health plan issued 17
or delivered in Washington state; or 18
(b) By a medicaid managed care organization. 19
(4) "Health carrier" or "carrier" has the same meaning as defined 20
in RCW 48.43.005. 21
H-0551.1
HOUSE BILL 1392
State of Washington 69th Legislature 2025 Regular Session
By Representatives Macri, Leavitt, Simmons, Davis, Berry, Ryu,
Callan, Rule, Stearns, Peterson, Taylor, Reed, Ramel, Alvarado,
Doglio, Tharinger, Fey, Salahuddin, Bernbaum, Fosse, Pollet, Street,
Scott, and Santos
Read first time 01/20/25. Referred to Committee on Appropriations.
p. 1 HB 1392
(5) "Health plan" has the same meaning as defined in RCW 1
48.43.005 and does not include medicare advantage plans established 2
under medicare part C or outpatient prescription drug plans 3
established under medicare part D. 4
(6) "Medicaid managed care organization" means a managed health 5
care system under contract with the state of Washington to provide 6
services to medicaid enrollees under RCW 74.09.522.7
NEW SECTION. Sec. 2. (1) By September 1, 2025, the authority 8
shall submit any state plan amendments or waiver requests to the 9
centers for medicare and medicaid services that are necessary to 10
implement the medicaid access program established in section 6 of 11
this act.12
(2) The assessment, collection, and disbursement of funds for 13
this program shall be conditional upon: 14
(a) Final approval by the centers for medicare and medicaid 15
services of any state plan amendments or waiver requests that are 16
necessary in order to implement the applicable sections of this 17
chapter including, if necessary, waiver of the broad-based or 18
uniformity requirements as specified under section 1903 (w)(3)(E) of 19
the federal social security act and 42 C.F.R. Sec. 433.68(e);20
(b) To the extent necessary, amendment of contracts between the 21
authority and managed care organizations to implement this chapter; 22
and 23
(c) Certification by the office of financial management that 24
appropriations have been adopted that fully support the rates 25
established in section 3 of this act for the upcoming fiscal year.26
NEW SECTION. Sec. 3. (1) All health carriers and medicaid 27
managed care organizations shall pay an annual covered lives 28
assessment beginning January 1st of the plan year following the 29
approval in section 2(2)(a) of this act as follows:30
(a) For assessments due the first plan year: 31
(i) The authority shall assess a per member per month assessment 32
of $18 per covered life for medicaid managed care organizations; and33
(ii) The commissioner shall assess a per member per month 34
assessment of $0.50 per covered life for health carriers.35
(b) On or before May 15th of the first plan year of assessments 36
due and on or before May 15th of each subsequent year, the authority 37
shall determine the covered lives assessment at the rate necessary to 38
p. 2 HB 1392
fund the professional services rate increases in section 6 of this 1
act. 2
(c) The ratio of the total assessments collected from managed 3
care organizations and health carriers must be set as 36 to one, 4
respectively. Assessments for each calendar year shall be set 5
utilizing the proportion of fully insured to medicaid managed care 6
covered lives from the previous calendar year. 7
(2) The assessments as applied in subsection (1) of this section 8
are limited to: 9
(a) The first 3,000,000 member months of fully insured lives per 10
medicaid managed care organization on a per medicaid managed care 11
organization basis; and 12
(b) The first 3,000,000 member months of fully insured lives per 13
health carrier. For each health carrier, the assessment shall apply 14
to member months of all group health plan lives first, followed by 15
member months of individual health plans lives. 16
(3) If an assessment against a health carrier or medicaid managed 17
care organization is prohibited by court order, the assessment for 18
the remaining health carriers and medicaid managed care organizations 19
may be adjusted in a manner consistent with subsection (1) of this 20
section to ensure that the assessment amount calculated in subsection 21
(1)(b) of this section will be collected. 22
(4) The authority shall annually notify, in writing, each 23
medicaid managed care organization of the estimated total assessment 24
and its payment obligation for the upcoming year. The authority shall 25
determine a payment schedule for receipt of assessments under this 26
section in accordance with the medicaid access program rules as 27
defined by the authority. Payment collections may be made no more 28
frequently than quarterly. 29
(5) Payments from managed care organizations are due to the 30
authority within 45 days of the payment schedule determined under 31
subsection (4) of this section. The authority shall charge interest 32
as defined by RCW 43.17.240, which begins to accrue on the 46th day, 33
on amounts received after the 45-day period. The authority may allow 34
each managed care organization in arrears to submit a payment plan, 35
subject to approval by the authority and initial payment under an 36
approved payment plan. 37
(6) The authority may abate or defer, in whole or in part, the 38
assessment of a managed care organization if, in the opinion of the 39
authority, payment of the assessment would endanger the ability of 40
p. 3 HB 1392
the managed care organization to fulfill its contractual obligations 1
under chapter 74.09 RCW. If an assessment against a managed care 2
organization is abated or deferred in whole or in part, the amount by 3
which such assessment is abated or deferred may be assessed against 4
the other managed care organizations in a manner consistent with the 5
basis for assessments in subsection (1) of this section. The managed 6
care organization receiving such abatement or deferment remains 7
liable to the program for the deficiency plus interest the rate 8
established in RCW 43.17.240. Upon receipt of payment of any 9
abatement or deferment by a managed care organization, the authority 10
shall adjust future assessments made against other managed care 11
organizations under this subsection to reflect receipt of the 12
payment. 13
(7) The authority shall deposit annual assessments and interest 14
collected under this section with the state treasurer to the credit 15
of the medicaid access program account created in section 5 of this 16
act. 17
(8) Managed care organizations shall submit any annual statements 18
or other reports deemed necessary by the authority to calculate the 19
assessment under this section in a manner consistent with the 20
schedule and procedures in accordance with the medicaid access 21
program rules as defined by the authority. 22
NEW SECTION. Sec. 4. (1) All health carriers and medicaid 23
managed care organizations shall pay an annual covered lives 24
assessment under section 3 of this act.25
(2) The commissioner shall assess a per member per month 26
assessment for health carriers pursuant to section 3 of this act.27
(3) The commissioner shall annually notify, in writing, each 28
health carrier of the estimated total assessment and its payment 29
obligation for the upcoming year. The commissioner shall determine a 30
payment schedule for receipt of assessments under this section in 31
accordance with the medicaid access program rules established by the 32
authority. Payment collections may be made no more frequently than 33
quarterly. 34
(4) Payments from health carriers are due to the commissioner 35
within 45 days of the payment schedule determined under subsection 36
(3) of this section. The commissioner shall charge interest as 37
defined by RCW 43.17.240, which begins to accrue on the 46th day, on 38
amounts received after the 45-day period. The commissioner may allow 39
p. 4 HB 1392
each health carrier in arrears to submit a payment plan, subject to 1
approval by the commissioner and initial payment under an approved 2
payment plan. 3
(5) The commissioner shall deposit annual assessments and 4
interest collected under this section with the state treasurer to the 5
credit of the medicaid access program account created in section 5 of 6
this act. 7
(6) Health carriers shall submit any annual statements or other 8
reports deemed necessary by the commissioner for the health care 9
authority to calculate the assessment in a manner consistent with the 10
schedule and procedures in accordance with section 3 of this act.11
NEW SECTION. Sec. 5. (1) The medicaid access program account is 12
created in the state treasury. All receipts from the assessments, 13
interest, and penalties collected by the authority and commissioner 14
under sections 3 and 4 of this act must be deposited into the 15
account. Moneys in the account may be spent only after appropriation. 16
Expenditures from the account may be used only for the administration 17
and implementation of the medicaid access program as established in 18
section 6 of this act.19
(2) Disbursements from the account may be made only:20
(a) To make payments to health care providers and managed care 21
organizations; 22
(b) To medicaid managed care organizations to fund the nonfederal 23
share of increased capitation payments based on their projected 24
assessment obligation established by the medicaid access program and 25
the medicaid managed care rate setting process; 26
(c) To refund erroneous or excessive payments made by health 27
carriers and medicaid managed care organizations; and28
(d) To repay the federal government for any excess payments made 29
to health care providers from the account if the assessments or 30
payment increases set forth by the medicaid access program are deemed 31
out of compliance with federal statutes and regulations in a final 32
determination by a court of competent jurisdiction with all appeals 33
exhausted. In such a case, the authority may require health care 34
providers receiving excess payments to refund the payments in 35
question to the account. The state in turn shall return funds to the 36
federal government in the same proportion as the original financing. 37
If a health care provider is unable to refund payments, the state 38
p. 5 HB 1392
shall develop either a payment plan, deduct moneys from future 1
medicaid payments, or both. 2
NEW SECTION. Sec. 6. (1) The purpose of the medicaid access 3
program is to increase, beginning January 1st of the second plan year 4
after the conditions of section 2 of this act are met, subject to 5
available funds and appropriations from the medicaid access program 6
account, professional services rates covered by medicaid including 7
fee-for-service and managed care up to the corresponding medicare 8
rates as of December 31, 2024, for the same service and site of 9
service. Rates for subsequent years shall be annually adjusted based 10
on the inflation factor using the medicare economic index.11
(2) The service categories for the professional services rate 12
increases must include anesthesia, diagnostics, intense outpatient, 13
opioid treatment programs, emergency room, inpatient and outpatient 14
surgery, inpatient visits, low-level behavioral health, maternity 15
services, office and home visits, consults, office administered 16
drugs, and other physician services. If sufficient funds are not 17
available to increase medicaid rates to corresponding medicare rates, 18
the authority may increase medicaid rates to a percentage of 19
corresponding medicare rates, applied uniformly across professional 20
service categories included in this subsection. 21
NEW SECTION. Sec. 7. Nothing in this act shall be construed to 22
alter the requirements: (1) Under 42 C.F.R. Sec. 438.4 that the rates 23
paid by the state to managed care organizations be actuarially sound; 24
and (2) that the state develop the rates in compliance with standards 25
under 42 C.F.R. Sec. 438.5.26
NEW SECTION. Sec. 8. The authority may adopt rules and 27
undertake actions necessary to carry out sections 2, 3, and 6 of this 28
act including, but not limited to, rules prescribing the medicaid 29
access program plan of operations, measures to enforce reporting of 30
covered lives, audits of covered lives reporting, and payment of 31
applicable assessments.32
NEW SECTION. Sec. 9. The commissioner may adopt rules and 33
undertake actions necessary to carry out section 4 of this act 34
including, but not limited to, rules prescribing the medicaid access 35
program plan of operations, measures to enforce reporting of covered 36
p. 6 HB 1392
lives, audits of covered lives reporting, and payment of applicable 1
assessments. 2
NEW SECTION. Sec. 10. The medicaid access program, health 3
carriers and medicaid managed care organizations assessed by the 4
program, the authority, and employees of the authority are not 5
civilly or criminally liable and may not have any penalty or cause of 6
action of any nature arise against them for any action or inaction, 7
including any discretionary decision or failure to make a 8
discretionary decision, when the action or inaction is done in good 9
faith and in the performance of the powers and duties assigned to the 10
program. This section does not prohibit legal actions against the 11
program to enforce the program's statutory or contractual duties or 12
obligations.13
NEW SECTION. Sec. 11. The medicaid access program, health 14
carriers and medicaid managed care organizations assessed by the 15
program, the commissioner, the commissioner's representatives, and 16
the commissioner's employees are not civilly or criminally liable and 17
may not have any penalty or cause of action of any nature arise 18
against them for any action or inaction, including any discretionary 19
decision or failure to make a discretionary decision, when the action 20
or inaction is done in good faith and in the performance of the 21
powers and duties assigned to the program. This section does not 22
prohibit legal actions against the program to enforce the program's 23
statutory or contractual duties or obligations.24
Sec. 12. RCW 43.84.092 and 2024 c 210 s 4 and 2024 c 168 s 12 25
are each reenacted and amended to read as follows:26
(1) All earnings of investments of surplus balances in the state 27
treasury shall be deposited to the treasury income account, which 28
account is hereby established in the state treasury.29
(2) The treasury income account shall be utilized to pay or 30
receive funds associated with federal programs as required by the 31
federal cash management improvement act of 1990. The treasury income 32
account is subject in all respects to chapter 43.88 RCW, but no 33
appropriation is required for refunds or allocations of interest 34
earnings required by the cash management improvement act. Refunds of 35
interest to the federal treasury required under the cash management 36
improvement act fall under RCW 43.88.180 and shall not require 37
p. 7 HB 1392
appropriation. The office of financial management shall determine the 1
amounts due to or from the federal government pursuant to the cash 2
management improvement act. The office of financial management may 3
direct transfers of funds between accounts as deemed necessary to 4
implement the provisions of the cash management improvement act, and 5
this subsection. Refunds or allocations shall occur prior to the 6
distributions of earnings set forth in subsection (4) of this 7
section. 8
(3) Except for the provisions of RCW 43.84.160, the treasury 9
income account may be utilized for the payment of purchased banking 10
services on behalf of treasury funds including, but not limited to, 11
depository, safekeeping, and disbursement functions for the state 12
treasury and affected state agencies. The treasury income account is 13
subject in all respects to chapter 43.88 RCW, but no appropriation is 14
required for payments to financial institutions. Payments shall occur 15
prior to distribution of earnings set forth in subsection (4) of this 16
section. 17
(4) Monthly, the state treasurer shall distribute the earnings 18
credited to the treasury income account. The state treasurer shall 19
credit the general fund with all the earnings credited to the 20
treasury income account except: 21
(a) The following accounts and funds shall receive their 22
proportionate share of earnings based upon each account's and fund's 23
average daily balance for the period: The abandoned recreational 24
vehicle disposal account, the aeronautics account, the Alaskan Way 25
viaduct replacement project account, the ambulance transport fund, 26
the budget stabilization account, the capital vessel replacement 27
account, the capitol building construction account, the Central 28
Washington University capital projects account, the charitable, 29
educational, penal and reformatory institutions account, the Chehalis 30
basin account, the Chehalis basin taxable account, the clean fuels 31
credit account, the clean fuels transportation investment account, 32
the cleanup settlement account, the climate active transportation 33
account, the climate transit programs account, the Columbia river 34
basin water supply development account, the Columbia river basin 35
taxable bond water supply development account, the Columbia river 36
basin water supply revenue recovery account, the common school 37
construction fund, the community forest trust account, the connecting 38
Washington account, the county arterial preservation account, the 39
county criminal justice assistance account, the covenant 40
p. 8 HB 1392
homeownership account, the deferred compensation administrative 1
account, the deferred compensation principal account, the department 2
of licensing services account, the department of retirement systems 3
expense account, the developmental disabilities community services 4
account, the diesel idle reduction account, the opioid abatement 5
settlement account, the drinking water assistance account, the 6
administrative subaccount of the drinking water assistance account, 7
the early learning facilities development account, the early learning 8
facilities revolving account, the Eastern Washington University 9
capital projects account, the education construction fund, the 10
education legacy trust account, the election account, the electric 11
vehicle account, the energy freedom account, the energy recovery act 12
account, the essential rail assistance account, The Evergreen State 13
College capital projects account, the fair start for kids account, 14
the family medicine workforce development account, the ferry bond 15
retirement fund, the fish, wildlife, and conservation account, the 16
freight mobility investment account, the freight mobility multimodal 17
account, the grade crossing protective fund, the higher education 18
retirement plan supplemental benefit fund, the Washington student 19
loan account, the highway bond retirement fund, the highway 20
infrastructure account, the highway safety fund, the hospital safety 21
net assessment fund, the Interstate 5 bridge replacement project 22
account, the Interstate 405 and state route number 167 express toll 23
lanes account, the judges' retirement account, the judicial 24
retirement administrative account, the judicial retirement principal 25
account, the limited fish and wildlife account, the local leasehold 26
excise tax account, the local real estate excise tax account, the 27
local sales and use tax account, the marine resources stewardship 28
trust account, the medical aid account, the money-purchase retirement 29
savings administrative account, the money-purchase retirement savings 30
principal account, the motor vehicle fund, the motorcycle safety 31
education account, the move ahead WA account, the move ahead WA 32
flexible account, the multimodal transportation account, the multiuse 33
roadway safety account, the municipal criminal justice assistance 34
account, the oyster reserve land account, the pension funding 35
stabilization account, the perpetual surveillance and maintenance 36
account, the pilotage account, the pollution liability insurance 37
agency underground storage tank revolving account, the medicaid 38
access program account, the public employees' retirement system plan 39
1 account, the public employees' retirement system combined plan 2 40
p. 9 HB 1392
and plan 3 account, the public facilities construction loan revolving 1
account, the public health supplemental account, the public works 2
assistance account, the Puget Sound capital construction account, the 3
Puget Sound ferry operations account, the Puget Sound Gateway 4
facility account, the Puget Sound taxpayer accountability account, 5
the real estate appraiser commission account, the recreational 6
vehicle account, the regional mobility grant program account, the 7
reserve officers' relief and pension principal fund, the resource 8
management cost account, the rural arterial trust account, the rural 9
mobility grant program account, the rural Washington loan fund, the 10
second injury fund, the sexual assault prevention and response 11
account, the site closure account, the skilled nursing facility 12
safety net trust fund, the small city pavement and sidewalk account, 13
the special category C account, the special wildlife account, the 14
state hazard mitigation revolving loan account, the state investment 15
board expense account, the state investment board commingled trust 16
fund accounts, the state patrol highway account, the state 17
reclamation revolving account, the state route number 520 civil 18
penalties account, the state route number 520 corridor account, the 19
statewide broadband account, the statewide tourism marketing account, 20
the supplemental pension account, the Tacoma Narrows toll bridge 21
account, the teachers' retirement system plan 1 account, the 22
teachers' retirement system combined plan 2 and plan 3 account, the 23
tobacco prevention and control account, the tobacco settlement 24
account, the toll facility bond retirement account, the 25
transportation 2003 account (nickel account), the transportation 26
equipment fund, the JUDY transportation future funding program 27
account, the transportation improvement account, the transportation 28
improvement board bond retirement account, the transportation 29
infrastructure account, the transportation partnership account, the 30
traumatic brain injury account, the tribal opioid prevention and 31
treatment account, the University of Washington bond retirement fund, 32
the University of Washington building account, the voluntary cleanup 33
account, the volunteer firefighters' relief and pension principal 34
fund, the volunteer firefighters' and reserve officers' 35
administrative fund, the vulnerable roadway user education account, 36
the Washington judicial retirement system account, the Washington law 37
enforcement officers' and firefighters' system plan 1 retirement 38
account, the Washington law enforcement officers' and firefighters' 39
system plan 2 retirement account, the Washington public safety 40
p. 10 HB 1392
employees' plan 2 retirement account, the Washington school 1
employees' retirement system combined plan 2 and 3 account, the 2
Washington state patrol retirement account, the Washington State 3
University building account, the Washington State University bond 4
retirement fund, the water pollution control revolving administration 5
account, the water pollution control revolving fund, the Western 6
Washington University capital projects account, the Yakima integrated 7
plan implementation account, the Yakima integrated plan 8
implementation revenue recovery account, and the Yakima integrated 9
plan implementation taxable bond account. Earnings derived from 10
investing balances of the agricultural permanent fund, the normal 11
school permanent fund, the permanent common school fund, the 12
scientific permanent fund, and the state university permanent fund 13
shall be allocated to their respective beneficiary accounts.14
(b) Any state agency that has independent authority over accounts 15
or funds not statutorily required to be held in the state treasury 16
that deposits funds into a fund or account in the state treasury 17
pursuant to an agreement with the office of the state treasurer shall 18
receive its proportionate share of earnings based upon each account's 19
or fund's average daily balance for the period. 20
(5) In conformance with Article II, section 37 of the state 21
Constitution, no treasury accounts or funds shall be allocated 22
earnings without the specific affirmative directive of this section.23
Sec. 13. RCW 43.84.092 and 2024 c 210 s 5 and 2024 c 168 s 13 24
are each reenacted and amended to read as follows:25
(1) All earnings of investments of surplus balances in the state 26
treasury shall be deposited to the treasury income account, which 27
account is hereby established in the state treasury.28
(2) The treasury income account shall be utilized to pay or 29
receive funds associated with federal programs as required by the 30
federal cash management improvement act of 1990. The treasury income 31
account is subject in all respects to chapter 43.88 RCW, but no 32
appropriation is required for refunds or allocations of interest 33
earnings required by the cash management improvement act. Refunds of 34
interest to the federal treasury required under the cash management 35
improvement act fall under RCW 43.88.180 and shall not require 36
appropriation. The office of financial management shall determine the 37
amounts due to or from the federal government pursuant to the cash 38
management improvement act. The office of financial management may 39
p. 11 HB 1392
direct transfers of funds between accounts as deemed necessary to 1
implement the provisions of the cash management improvement act, and 2
this subsection. Refunds or allocations shall occur prior to the 3
distributions of earnings set forth in subsection (4) of this 4
section. 5
(3) Except for the provisions of RCW 43.84.160, the treasury 6
income account may be utilized for the payment of purchased banking 7
services on behalf of treasury funds including, but not limited to, 8
depository, safekeeping, and disbursement functions for the state 9
treasury and affected state agencies. The treasury income account is 10
subject in all respects to chapter 43.88 RCW, but no appropriation is 11
required for payments to financial institutions. Payments shall occur 12
prior to distribution of earnings set forth in subsection (4) of this 13
section. 14
(4) Monthly, the state treasurer shall distribute the earnings 15
credited to the treasury income account. The state treasurer shall 16
credit the general fund with all the earnings credited to the 17
treasury income account except: 18
(a) The following accounts and funds shall receive their 19
proportionate share of earnings based upon each account's and fund's 20
average daily balance for the period: The abandoned recreational 21
vehicle disposal account, the aeronautics account, the Alaskan Way 22
viaduct replacement project account, the budget stabilization 23
account, the capital vessel replacement account, the capitol building 24
construction account, the Central Washington University capital 25
projects account, the charitable, educational, penal and reformatory 26
institutions account, the Chehalis basin account, the Chehalis basin 27
taxable account, the clean fuels credit account, the clean fuels 28
transportation investment account, the cleanup settlement account, 29
the climate active transportation account, the climate transit 30
programs account, the Columbia river basin water supply development 31
account, the Columbia river basin taxable bond water supply 32
development account, the Columbia river basin water supply revenue 33
recovery account, the common school construction fund, the community 34
forest trust account, the connecting Washington account, the county 35
arterial preservation account, the county criminal justice assistance 36
account, the covenant homeownership account, the deferred 37
compensation administrative account, the deferred compensation 38
principal account, the department of licensing services account, the 39
department of retirement systems expense account, the developmental 40
p. 12 HB 1392
disabilities community services account, the diesel idle reduction 1
account, the opioid abatement settlement account, the drinking water 2
assistance account, the administrative subaccount of the drinking 3
water assistance account, the early learning facilities development 4
account, the early learning facilities revolving account, the Eastern 5
Washington University capital projects account, the education 6
construction fund, the education legacy trust account, the election 7
account, the electric vehicle account, the energy freedom account, 8
the energy recovery act account, the essential rail assistance 9
account, The Evergreen State College capital projects account, the 10
fair start for kids account, the family medicine workforce 11
development account, the ferry bond retirement fund, the fish, 12
wildlife, and conservation account, the freight mobility investment 13
account, the freight mobility multimodal account, the grade crossing 14
protective fund, the higher education retirement plan supplemental 15
benefit fund, the Washington student loan account, the highway bond 16
retirement fund, the highway infrastructure account, the highway 17
safety fund, the hospital safety net assessment fund, the Interstate 18
5 bridge replacement project account, the Interstate 405 and state 19
route number 167 express toll lanes account, the judges' retirement 20
account, the judicial retirement administrative account, the judicial 21
retirement principal account, the limited fish and wildlife account, 22
the local leasehold excise tax account, the local real estate excise 23
tax account, the local sales and use tax account, the marine 24
resources stewardship trust account, the medical aid account, the 25
money-purchase retirement savings administrative account, the money-26
purchase retirement savings principal account, the motor vehicle 27
fund, the motorcycle safety education account, the move ahead WA 28
account, the move ahead WA flexible account, the multimodal 29
transportation account, the multiuse roadway safety account, the 30
municipal criminal justice assistance account, the oyster reserve 31
land account, the pension funding stabilization account, the 32
perpetual surveillance and maintenance account, the pilotage account, 33
the pollution liability insurance agency underground storage tank 34
revolving account, the medicaid access program account, the public 35
employees' retirement system plan 1 account, the public employees' 36
retirement system combined plan 2 and plan 3 account, the public 37
facilities construction loan revolving account, the public health 38
supplemental account, the public works assistance account, the Puget 39
Sound capital construction account, the Puget Sound ferry operations 40
p. 13 HB 1392
account, the Puget Sound Gateway facility account, the Puget Sound 1
taxpayer accountability account, the real estate appraiser commission 2
account, the recreational vehicle account, the regional mobility 3
grant program account, the reserve officers' relief and pension 4
principal fund, the resource management cost account, the rural 5
arterial trust account, the rural mobility grant program account, the 6
rural Washington loan fund, the second injury fund, the sexual 7
assault prevention and response account, the site closure account, 8
the skilled nursing facility safety net trust fund, the small city 9
pavement and sidewalk account, the special category C account, the 10
special wildlife account, the state hazard mitigation revolving loan 11
account, the state investment board expense account, the state 12
investment board commingled trust fund accounts, the state patrol 13
highway account, the state reclamation revolving account, the state 14
route number 520 civil penalties account, the state route number 520 15
corridor account, the statewide broadband account, the statewide 16
tourism marketing account, the supplemental pension account, the 17
Tacoma Narrows toll bridge account, the teachers' retirement system 18
plan 1 account, the teachers' retirement system combined plan 2 and 19
plan 3 account, the tobacco prevention and control account, the 20
tobacco settlement account, the toll facility bond retirement 21
account, the transportation 2003 account (nickel account), the 22
transportation equipment fund, the JUDY transportation future funding 23
program account, the transportation improvement account, the 24
transportation improvement board bond retirement account, the 25
transportation infrastructure account, the transportation partnership 26
account, the traumatic brain injury account, the tribal opioid 27
prevention and treatment account, the University of Washington bond 28
retirement fund, the University of Washington building account, the 29
voluntary cleanup account, the volunteer firefighters' relief and 30
pension principal fund, the volunteer firefighters' and reserve 31
officers' administrative fund, the vulnerable roadway user education 32
account, the Washington judicial retirement system account, the 33
Washington law enforcement officers' and firefighters' system plan 1 34
retirement account, the Washington law enforcement officers' and 35
firefighters' system plan 2 retirement account, the Washington public 36
safety employees' plan 2 retirement account, the Washington school 37
employees' retirement system combined plan 2 and 3 account, the 38
Washington state patrol retirement account, the Washington State 39
University building account, the Washington State University bond 40
p. 14 HB 1392
retirement fund, the water pollution control revolving administration 1
account, the water pollution control revolving fund, the Western 2
Washington University capital projects account, the Yakima integrated 3
plan implementation account, the Yakima integrated plan 4
implementation revenue recovery account, and the Yakima integrated 5
plan implementation taxable bond account. Earnings derived from 6
investing balances of the agricultural permanent fund, the normal 7
school permanent fund, the permanent common school fund, the 8
scientific permanent fund, and the state university permanent fund 9
shall be allocated to their respective beneficiary accounts.10
(b) Any state agency that has independent authority over accounts 11
or funds not statutorily required to be held in the state treasury 12
that deposits funds into a fund or account in the state treasury 13
pursuant to an agreement with the office of the state treasurer shall 14
receive its proportionate share of earnings based upon each account's 15
or fund's average daily balance for the period. 16
(5) In conformance with Article II, section 37 of the state 17
Constitution, no treasury accounts or funds shall be allocated 18
earnings without the specific affirmative directive of this section.19
NEW SECTION. Sec. 14. Sections 1 through 3, 5 through 8, and 10 20
of this act constitute a new chapter in Title 74 RCW.21
NEW SECTION. Sec. 15. Sections 4, 9, and 11 of this act 22
constitute a new chapter in Title 48 RCW.23
NEW SECTION. Sec. 16. The provisions of this act are not 24
severable. In the event that any portion of this act shall have been 25
validly implemented and the entire act is later rendered ineffective, 26
prior assessments and payments under the validly implemented portions 27
shall not be affected.28
NEW SECTION. Sec. 17. This act is necessary for the immediate 29
preservation of the public peace, health, or safety, or support of 30
the state government and its existing public institutions, and takes 31
effect immediately.32
NEW SECTION. Sec. 18. This act expires if by January 1, 2027, 33
the federal centers for medicare and medicaid services does not 34
p. 15 HB 1392
provide final approval of the state plan amendment or waiver requests 1
under section 2 of this act. 2
NEW SECTION. Sec. 19. Section 12 of this act expires July 1, 3
2028.4
NEW SECTION. Sec. 20. Section 13 of this act takes effect July 5
1, 2028.6
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