Public employee health plans

AN ACT Relating to employer contributions and incentives for 1
public and school employee health benefit plans; amending RCW 2
41.05.065, 41.05.740, 41.80.020, 41.56.500, 41.59.105, and 47.64.270; 3
and creating a new section. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. The legislature finds that the state is 6
facing an extraordinary budget shortfall, necessitating prudent 7
fiscal management to ensure the sustainability of essential public 8
services. One significant cost driver is the employer contribution 9
rate for employee health care benefits, which currently exceeds the 10
average benefits package offered in comparable sectors.11
The legislature remains committed to funding a high quality, 12
competitive benefits package for state employees. However, in light 13
of current budget constraints, it is necessary to provide flexibility 14
in setting the employer contribution rates for employee health care 15
benefits during the 2027-2029 fiscal biennium. 16
To responsibly address these financial challenges while 17
maintaining quality health care for state employees, the legislature 18
intends to eliminate the smart health program and set the employer 19
contribution rates for employee health care benefits for the 20
2027-2029 fiscal biennium. This policy will provide the state with 21
S-2338.1
SENATE BILL 5793
State of Washington 69th Legislature 2025 Regular Session
By Senator Robinson
p. 1 SB 5793
the necessary flexibility to align health care expenditures with 1
available resources, ensuring a balanced approach that reflects both 2
fiscal responsibility and the well-being of employees.3
By taking this approach, the state can continue to offer a 4
generous and competitive health care plan while adapting to evolving 5
fiscal conditions. 6
Sec. 2. RCW 41.05.065 and 2018 c 260 s 12 are each amended to 7
read as follows: 8
(1) The public employees' benefits board shall study all matters 9
connected with the provision of health care coverage, life insurance, 10
liability insurance, accidental death and dismemberment insurance, 11
and disability income insurance or any of, or a combination of, the 12
enumerated types of insurance for employees and their dependents on 13
the best basis possible with relation both to the welfare of the 14
employees and to the state. However, liability insurance shall not be 15
made available to dependents. 16
(2) The public employees' benefits board shall develop employee 17
benefit plans that include comprehensive health care benefits for 18
employees. In developing these plans, the public employees' benefits 19
board shall consider the following elements: 20
(a) Methods of maximizing cost containment while ensuring access 21
to quality health care; 22
(b) Development of provider arrangements that encourage cost 23
containment and ensure access to quality care, including but not 24
limited to prepaid delivery systems and prospective payment methods;25
(c)(i) Wellness ((incentives)) initiatives that focus on proven 26
strategies, such as smoking cessation, injury and accident 27
prevention, reduction of alcohol misuse, appropriate weight 28
reduction, exercise, automobile and motorcycle safety, blood 29
cholesterol reduction, and nutrition education.30
(ii)(A) As of January 1, 2028, the public employees' benefits 31
board shall no longer offer the smart health program, which includes 32
the wellness incentive and the smart health online portal.33
(B) Employees who have met the eligibility requirements to 34
receive a wellness incentive by December 31, 2027, will still receive 35
the wellness incentive in plan year 2028.36
(C) Employees are not eligible to earn a wellness incentive as of 37
January 1, 2028; 38
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(d) Utilization review procedures including, but not limited to a 1
cost-efficient method for prior authorization of services, hospital 2
inpatient length of stay review, requirements for use of outpatient 3
surgeries and second opinions for surgeries, review of invoices or 4
claims submitted by service providers, and performance audit of 5
providers; 6
(e) Effective coordination of benefits; and 7
(f) Minimum standards for insuring entities. 8
(3) To maintain the comprehensive nature of employee health care 9
benefits, benefits provided to employees shall be substantially 10
equivalent to the state employees' health benefit plan in effect on 11
January 1, 1993. Nothing in this subsection shall prohibit changes or 12
increases in employee point-of-service payments or employee premium 13
payments for benefits or the administration of a high deductible 14
health plan in conjunction with a health savings account. The public 15
employees' benefits board may establish employee eligibility criteria 16
which are not substantially equivalent to employee eligibility 17
criteria in effect on January 1, 1993. 18
(4) Except if bargained for under chapter 41.80 RCW, the public 19
employees' benefits board shall design benefits and determine the 20
terms and conditions of employee and retired or disabled school 21
employee participation and coverage, including establishment of 22
eligibility criteria subject to the requirements of this chapter. 23
Employer groups obtaining benefits through contractual agreement with 24
the authority for employees defined in RCW 41.05.011(6)(a) (i) 25
through (vi) may contractually agree with the authority to benefits 26
eligibility criteria which differs from that determined by the public 27
employees' benefits board. The eligibility criteria established by 28
the public employees' benefits board shall be no more restrictive 29
than the following: 30
(a) Except as provided in (b) through (e) of this subsection, an 31
employee is eligible for benefits from the date of employment if the 32
employing agency anticipates he or she will work an average of at 33
least eighty hours per month and for at least eight hours in each 34
month for more than six consecutive months. An employee determined 35
ineligible for benefits at the beginning of his or her employment 36
shall become eligible in the following circumstances:37
(i) An employee who works an average of at least eighty hours per 38
month and for at least eight hours in each month and whose 39
anticipated duration of employment is revised from less than or equal 40
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to six consecutive months to more than six consecutive months becomes 1
eligible when the revision is made. 2
(ii) An employee who works an average of at least eighty hours 3
per month over a period of six consecutive months and for at least 4
eight hours in each of those six consecutive months becomes eligible 5
at the first of the month following the six-month averaging period.6
(b) A seasonal employee is eligible for benefits from the date of 7
employment if the employing agency anticipates that he or she will 8
work an average of at least eighty hours per month and for at least 9
eight hours in each month of the season. A seasonal employee 10
determined ineligible at the beginning of his or her employment who 11
works an average of at least eighty hours per month over a period of 12
six consecutive months and at least eight hours in each of those six 13
consecutive months becomes eligible at the first of the month 14
following the six-month averaging period. A benefits-eligible 15
seasonal employee who works a season of less than nine months shall 16
not be eligible for the employer contribution during the off season, 17
but may continue enrollment in benefits during the off season by 18
self-paying for the benefits. A benefits-eligible seasonal employee 19
who works a season of nine months or more is eligible for the 20
employer contribution through the off season following each season 21
worked. 22
(c) Faculty are eligible as follows: 23
(i) Faculty who the employing agency anticipates will work half–24
time or more for the entire instructional year or equivalent nine-25
month period are eligible for benefits from the date of employment. 26
Eligibility shall continue until the beginning of the first full 27
month of the next instructional year, unless the employment 28
relationship is terminated, in which case eligibility shall cease the 29
first month following the notice of termination or the effective date 30
of the termination, whichever is later. 31
(ii) Faculty who the employing agency anticipates will not work 32
for the entire instructional year or equivalent nine-month period are 33
eligible for benefits at the beginning of the second consecutive 34
quarter or semester of employment in which he or she is anticipated 35
to work, or has actually worked, half-time or more. Such an employee 36
shall continue to receive uninterrupted employer contributions for 37
benefits if the employee works at least half-time in a quarter or 38
semester. Faculty who the employing agency anticipates will not work 39
for the entire instructional year or equivalent nine-month period, 40
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but who actually work half-time or more throughout the entire 1
instructional year, are eligible for summer or off-quarter or off-2
semester coverage. Faculty who have met the criteria of this 3
subsection (4)(c)(ii), who work at least two quarters or two 4
semesters of the academic year with an average academic year workload 5
of half-time or more for three quarters or two semesters of the 6
academic year, and who have worked an average of half-time or more in 7
each of the two preceding academic years shall continue to receive 8
uninterrupted employer contributions for benefits if he or she works 9
at least half-time in a quarter or semester or works two quarters or 10
two semesters of the academic year with an average academic workload 11
each academic year of half-time or more for three quarters or two 12
semesters. Eligibility under this section ceases immediately if this 13
criteria is not met. 14
(iii) Faculty may establish or maintain eligibility for benefits 15
by working for more than one institution of higher education. When 16
faculty work for more than one institution of higher education, those 17
institutions shall prorate the employer contribution costs, or if 18
eligibility is reached through one institution, that institution will 19
pay the full employer contribution. Faculty working for more than one 20
institution must alert his or her employers to his or her potential 21
eligibility in order to establish eligibility. 22
(iv) The employing agency must provide written notice to faculty 23
who are potentially eligible for benefits under this subsection 24
(4)(c) of their potential eligibility. 25
(v) To be eligible for maintenance of benefits through averaging 26
under (c)(ii) of this subsection, faculty must provide written 27
notification to his or her employing agency or agencies of his or her 28
potential eligibility. 29
(vi) For the purposes of this subsection (4)(c):30
(A) "Academic year" means summer, fall, winter, and spring 31
quarters or summer, fall, and spring semesters; 32
(B) "Half-time" means one-half of the full-time academic workload 33
as determined by each institution; except that for community and 34
technical college faculty, half-time academic workload is calculated 35
according to RCW 28B.50.489. 36
(d) A legislator is eligible for benefits on the date his or her 37
term begins. All other elected and full-time appointed officials of 38
the legislative and executive branches of state government are 39
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eligible for benefits on the date his or her term begins or they take 1
the oath of office, whichever occurs first. 2
(e) A justice of the supreme court and judges of the court of 3
appeals and the superior courts become eligible for benefits on the 4
date he or she takes the oath of office. 5
(f) Except as provided in (c)(i) and (ii) of this subsection, 6
eligibility ceases for any employee the first of the month following 7
termination of the employment relationship. 8
(g) In determining eligibility under this section, the employing 9
agency may disregard training hours, standby hours, or temporary 10
changes in work hours as determined by the authority under this 11
section. 12
(h) Insurance coverage for all eligible employees begins on the 13
first day of the month following the date when eligibility for 14
benefits is established. If the date eligibility is established is 15
the first working day of a month, insurance coverage begins on that 16
date. 17
(i) Eligibility for an employee whose work circumstances are 18
described by more than one of the eligibility categories in (a) 19
through (e) of this subsection shall be determined solely by the 20
criteria of the category that most closely describes the employee's 21
work circumstances. 22
(j) Except for an employee eligible for benefits under (b) or 23
(c)(ii) of this subsection, an employee who has established 24
eligibility for benefits under this section shall remain eligible for 25
benefits each month in which he or she is in pay status for eight or 26
more hours, if (i) he or she remains in a benefits-eligible position 27
and (ii) leave from the benefits-eligible position is approved by the 28
employing agency. A benefits-eligible seasonal employee is eligible 29
for the employer contribution in any month of his or her season in 30
which he or she is in pay status eight or more hours during that 31
month. Eligibility ends if these conditions are not met, the 32
employment relationship is terminated, or the employee voluntarily 33
transfers to a noneligible position. 34
(k) For the purposes of this subsection, the public employees' 35
benefits board shall define "benefits-eligible position."36
(5) The public employees' benefits board may authorize premium 37
contributions for an employee and the employee's dependents in a 38
manner that encourages the use of cost-efficient managed health care 39
systems. 40
p. 6 SB 5793
(6)(a) For any open enrollment period following August 24, 2011, 1
the public employees' benefits board shall offer a health savings 2
account option for employees that conforms to section 223, Part VII 3
of subchapter B of chapter 1 of the internal revenue code of 1986. 4
The public employees' benefits board shall comply with all applicable 5
federal standards related to the establishment of health savings 6
accounts. 7
(b) By November 30, 2015, and each year thereafter, the authority 8
shall submit a report to the relevant legislative policy and fiscal 9
committees that includes the following: 10
(i) Public employees' benefits board health plan cost and service 11
utilization trends for the previous three years, in total and for 12
each health plan offered to employees; 13
(ii) For each health plan offered to employees, the number and 14
percentage of employees and dependents enrolled in the plan, and the 15
age and gender demographics of enrollees in each plan;16
(iii) Any impact of enrollment in alternatives to the most 17
comprehensive plan, including the high deductible health plan with a 18
health savings account, upon the cost of health benefits for those 19
employees who have chosen to remain enrolled in the most 20
comprehensive plan. 21
(7) Notwithstanding any other provision of this chapter, for any 22
open enrollment period following August 24, 2011, the public 23
employees' benefits board shall offer a high deductible health plan 24
in conjunction with a health savings account developed under 25
subsection (6) of this section. 26
(8) Employees shall choose participation in one of the health 27
care benefit plans developed by the public employees' benefits board 28
and may be permitted to waive coverage under terms and conditions 29
established by the public employees' benefits board.30
(9) The public employees' benefits board shall review plans 31
proposed by insuring entities that desire to offer property insurance 32
and/or accident and casualty insurance to state employees through 33
payroll deduction. The public employees' benefits board may approve 34
any such plan for payroll deduction by insuring entities holding a 35
valid certificate of authority in the state of Washington and which 36
the public employees' benefits board determines to be in the best 37
interests of employees and the state. The public employees' benefits 38
board shall adopt rules setting forth criteria by which it shall 39
evaluate the plans. 40
p. 7 SB 5793
(10) Before January 1, 1998, the public employees' benefits board 1
shall make available one or more fully insured long-term care 2
insurance plans that comply with the requirements of chapter 48.84 3
RCW. Such programs shall be made available to eligible employees, 4
retired employees, and retired school employees as well as eligible 5
dependents which, for the purpose of this section, includes the 6
parents of the employee or retiree and the parents of the spouse of 7
the employee or retiree. Employees of local governments, political 8
subdivisions, and tribal governments not otherwise enrolled in the 9
public employees' benefits board sponsored medical programs may 10
enroll under terms and conditions established by the director, if it 11
does not jeopardize the financial viability of the public employees' 12
benefits board's long-term care offering. 13
(a) Participation of eligible employees or retired employees and 14
retired school employees in any long-term care insurance plan made 15
available by the public employees' benefits board is voluntary and 16
shall not be subject to binding arbitration under chapter 41.56 RCW. 17
Participation is subject to reasonable underwriting guidelines and 18
eligibility rules established by the public employees' benefits board 19
and the health care authority. 20
(b) The employee, retired employee, and retired school employee 21
are solely responsible for the payment of the premium rates developed 22
by the health care authority. The health care authority is authorized 23
to charge a reasonable administrative fee in addition to the premium 24
charged by the long-term care insurer, which shall include the health 25
care authority's cost of administration, marketing, and consumer 26
education materials prepared by the health care authority and the 27
office of the insurance commissioner. 28
(c) To the extent administratively possible, the state shall 29
establish an automatic payroll or pension deduction system for the 30
payment of the long-term care insurance premiums. 31
(d) The public employees' benefits board and the health care 32
authority shall establish a technical advisory committee to provide 33
advice in the development of the benefit design and establishment of 34
underwriting guidelines and eligibility rules. The committee shall 35
also advise the public employees' benefits board and authority on 36
effective and cost-effective ways to market and distribute the long-37
term care product. The technical advisory committee shall be 38
comprised, at a minimum, of representatives of the office of the 39
insurance commissioner, providers of long-term care services, 40
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licensed insurance agents with expertise in long-term care insurance, 1
employees, retired employees, retired school employees, and other 2
interested parties determined to be appropriate by the public 3
employees' benefits board. 4
(e) The health care authority shall offer employees, retired 5
employees, and retired school employees the option of purchasing 6
long-term care insurance through licensed agents or brokers appointed 7
by the long-term care insurer. The authority, in consultation with 8
the public employees' benefits board, shall establish marketing 9
procedures and may consider all premium components as a part of the 10
contract negotiations with the long-term care insurer.11
(f) In developing the long-term care insurance benefit designs, 12
the public employees' benefits board shall include an alternative 13
plan of care benefit, including adult day services, as approved by 14
the office of the insurance commissioner. 15
(g) The health care authority, with the cooperation of the office 16
of the insurance commissioner, shall develop a consumer education 17
program for the eligible employees, retired employees, and retired 18
school employees designed to provide education on the potential need 19
for long-term care, methods of financing long-term care, and the 20
availability of long-term care insurance products including the 21
products offered by the public employees' benefits board.22
(11) The public employees' benefits board may establish penalties 23
to be imposed by the authority when the eligibility determinations of 24
an employing agency fail to comply with the criteria under this 25
chapter. 26
Sec. 3. RCW 41.05.740 and 2023 c 13 s 7 are each amended to read 27
as follows: 28
(1) The school employees' benefits board is created within the 29
authority. The function of the school employees' benefits board is to 30
design and approve insurance benefit plans for school employees and 31
to establish eligibility criteria for participation in insurance 32
benefit plans. 33
(2) By September 30, 2017, the governor shall appoint the 34
following voting members to the school employees' benefits board as 35
follows: 36
(a) Two members from associations representing certificated 37
employees; 38
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(b) Two members from associations representing classified 1
employees; 2
(c) Four members with expertise in employee health benefits 3
policy and administration, one of which is nominated by an 4
association representing school business officials; and5
(d) The director of the authority or his or her designee.6
(3) Initial members of the school employees' benefits board shall 7
serve staggered terms not to exceed four years. Members appointed 8
thereafter shall serve two-year terms. 9
(4) Compensation and reimbursement related to school employees' 10
benefits board member service are as follows: 11
(a) Members of the school employees' benefits board must be 12
compensated in accordance with RCW 43.03.250 and must be reimbursed 13
for their travel expenses while on official business in accordance 14
with RCW 43.03.050 and 43.03.060. 15
(b) While school employees' benefits board members are carrying 16
out their powers and duties under this chapter, if the service of any 17
certificated or classified employee results in a need for a school 18
employees' benefits board organization to employ a substitute for 19
such certificated or classified employee during such service, payment 20
for such a substitute may be made by the authority from funds 21
appropriated by the legislature for the school employees' benefits 22
board program. If such substitute is paid by the authority, no 23
deduction shall be made from the salary of the certificated or 24
classified employee. In no event shall a school employees' benefits 25
board organization deduct from the salary of a certificated or 26
classified employee serving on the school employees' benefits board 27
more than the amount paid the substitute employed by the school 28
employees' benefits board organization. 29
(5) The director of the authority or his or her designee shall be 30
the chair and another member shall be selected by the school 31
employees' benefits board as vice chair. The chair shall conduct 32
meetings of the school employees' benefits board. The vice chair 33
shall preside over meetings in the absence of the chair. The school 34
employees' benefits board shall develop bylaws for the conduct of its 35
business. 36
(6) The school employees' benefits board shall:37
(a) Study all matters connected with the provision of health care 38
coverage, life insurance, liability insurance, accidental death and 39
dismemberment, and disability insurance, or any of, or combination 40
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of, the enumerated types of insurance for eligible school employees 1
and their dependents on the best basis possible with relation both to 2
the welfare of the school employees and the state. However, liability 3
insurance should not be made available to dependents;4
(b) Develop school employee benefit plans that include 5
comprehensive, evidence-based health care benefits for school 6
employees. In developing these plans, the school employees' benefits 7
board shall consider the following elements: 8
(i) Methods of maximizing cost containment while ensuring access 9
to quality health care; 10
(ii) Development of provider arrangements that encourage cost 11
containment and ensure access to quality care including, but not 12
limited to, prepaid delivery systems and prospective payment methods;13
(iii)(A) Wellness, preventive care, chronic disease management, 14
and other ((incentives)) initiatives that focus on proven strategies.15
(B)(I) As of January 1, 2028, the school employees' benefits 16
board shall no longer offer the smart health program, which includes 17
the wellness incentive and the smart health online portal.18
(II) Employees who have met the eligibility requirements to 19
receive a wellness incentive by December 31, 2027, will still receive 20
the wellness incentive in plan year 2028.21
(III) Employees are not eligible to earn a wellness incentive as 22
of January 1, 2028; 23
(iv) Utilization review procedures to support cost-effective 24
benefits delivery; 25
(v) Ways to leverage efficient purchasing by coordinating with 26
the public employees' benefits board; 27
(vi) Effective coordination of benefits; and 28
(vii) Minimum standards for insuring entities;29
(c) Authorize premium contributions for a school employee and the 30
employee's dependents in a manner that encourages the use of cost-31
efficient health care systems. For participating school employees, 32
the required school employee share of the cost for family coverage 33
premiums may not exceed three times the premiums for a school 34
employee purchasing single coverage for the same coverage plan;35
(d) Determine the terms and conditions of school employee and 36
dependent eligibility criteria, enrollment policies, and scope of 37
coverage. Employer groups obtaining benefits through contractual 38
agreement with the authority for school employees defined in RCW 39
41.05.011(6)(b)(iv) may contractually agree with the authority to 40
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benefits eligibility criteria which differs from that determined by 1
the school employees' benefits board. At a minimum, the eligibility 2
criteria established by the school employees' benefits board shall 3
address the following: 4
(i) The effective date of coverage following hire;5
(ii) The benefits eligibility criteria, but the school employees' 6
benefits board's criteria shall be no more restrictive than requiring 7
that a school employee be anticipated to work at least six hundred 8
thirty hours per school year to be benefits eligible; and9
(iii) Coverage for dependents, including criteria for legal 10
spouses; children up to age twenty-six; children of any age with 11
disabilities, mental illness, or intellectual or other developmental 12
disabilities; and state registered domestic partners, as defined in 13
RCW 26.60.020, and others authorized by the legislature;14
(e) Establish terms and conditions for a school employees' 15
benefits board organization to have the ability to locally negotiate 16
eligibility criteria for a school employee who is anticipated to work 17
less than six hundred thirty hours in a school year. A school 18
employees' benefits board organization that elects to use a lower 19
threshold of hours for benefits eligibility must use benefits 20
authorized by the school employees' benefits board and shall do so as 21
an enrichment to the state's definition of basic education;22
(f) Establish penalties to be imposed when a school employees' 23
benefits board organization fails to comply with established 24
participation criteria; and 25
(g) Participate with the authority in the preparation of 26
specifications and selection of carriers contracted for school 27
employee benefit plan coverage of eligible school employees in 28
accordance with the criteria set forth in rules. To the extent 29
possible, the school employees' benefits board shall leverage 30
efficient purchasing by coordinating with the public employees' 31
benefits board. 32
(7) School employees shall choose participation in one of the 33
health care benefit plans developed by the school employees' benefits 34
board. Individual school employees eligible for benefits under 35
subsection (6)(d) of this section may be permitted to waive coverage 36
under terms and conditions established by the school employees' 37
benefits board. 38
(8) By November 30, 2021, the authority shall review the benefit 39
plans provided through the school employees' benefits board, complete 40
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an analysis of the benefits provided and the administration of the 1
benefits plans, and determine whether provisions in chapter 13, Laws 2
of 2017 3rd sp. sess. have resulted in cost savings to the state. The 3
authority shall submit a report to the relevant legislative policy 4
and fiscal committees summarizing the results of the review and 5
analysis. 6
Sec. 4. RCW 41.80.020 and 2021 c 13 s 6 are each amended to read 7
as follows: 8
(1) Except as otherwise provided in this chapter, the matters 9
subject to bargaining include wages, hours, and other terms and 10
conditions of employment, and the negotiation of any question arising 11
under a collective bargaining agreement. 12
(2) The employer is not required to bargain over matters 13
pertaining to: 14
(a) Health care benefits or other employee insurance benefits, 15
except as required in subsection (3) of this section;16
(b) Any retirement system or retirement benefit; or17
(c) Rules of the director of financial management, the director 18
of enterprise services, or the Washington personnel resources board 19
adopted under RCW 41.06.157. 20
(3)(a) Matters subject to bargaining include the number of names 21
to be certified for vacancies, promotional preferences, and , except 22
as provided in (b) of this subsection, the dollar amount expended on 23
behalf of each employee for health care benefits. However, except as 24
provided otherwise in this subsection for institutions of higher 25
education, negotiations regarding the number of names to be certified 26
for vacancies, promotional preferences, and the dollar amount 27
expended on behalf of each employee for health care benefits shall be 28
conducted between the employer and one coalition of all the exclusive 29
bargaining representatives subject to this chapter. The exclusive 30
bargaining representatives for employees that are subject to chapter 31
47.64 RCW shall bargain the dollar amount expended on behalf of each 32
employee for health care benefits with the employer as part of the 33
coalition under this subsection. Any such provision agreed to by the 34
employer and the coalition shall be included in all master collective 35
bargaining agreements negotiated by the parties. For institutions of 36
higher education, promotional preferences and the number of names to 37
be certified for vacancies shall be bargained under the provisions of 38
RCW 41.80.010(4). For agreements covering the 2013 -2015 fiscal 39
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biennium, any agreement between the employer and the coalition 1
regarding the dollar amount expended on behalf of each employee for 2
health care benefits is a separate agreement and shall not be 3
included in the master collective bargaining agreements negotiated by 4
the parties. 5
(b) For the 2027-2029 fiscal biennium, the dollar amount expended 6
on behalf of each employee for health care benefits will be set by 7
the legislature in the omnibus operating appropriations act. 8
Bargaining agreements reached for the 2027-2029 fiscal biennium shall 9
not include employer health care contributions, wellness, or flexible 10
spending account contributions, or any other provisions related to 11
employee health care expenses.12
(4) The employer and the exclusive bargaining representative 13
shall not agree to any proposal that would prevent the implementation 14
of approved affirmative action plans or that would be inconsistent 15
with the comparable worth agreement that provided the basis for the 16
salary changes implemented beginning with the 1983-1985 biennium to 17
achieve comparable worth. 18
(5) The employer and the exclusive bargaining representative 19
shall not bargain over matters pertaining to management rights 20
established in RCW 41.80.040. 21
(6) Except as otherwise provided in this chapter, if a conflict 22
exists between an executive order, administrative rule, or agency 23
policy relating to wages, hours, and terms and conditions of 24
employment and a collective bargaining agreement negotiated under 25
this chapter, the collective bargaining agreement shall prevail. A 26
provision of a collective bargaining agreement that conflicts with 27
the terms of a statute is invalid and unenforceable.28
(7) This section does not prohibit bargaining that affects 29
contracts authorized by RCW 41.06.142. 30
(8) RCW 41.58.070 applies to uniformed personnel.31
Sec. 5. RCW 41.56.500 and 2017 3rd sp.s. c 13 s 817 are each 32
amended to read as follows: 33
(1) All collective bargaining agreements entered into between a 34
school district employer and school district employees under this 35
chapter after June 10, 2010, as well as bargaining agreements 36
existing on June 10, 2010, but renewed or extended after June 10, 37
2010, shall be consistent with RCW 28A.657.050. 38
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(2) All collective bargaining agreements entered into between a 1
school district employer and school district employees under this 2
chapter shall be consistent with RCW 28A.400.280 and 28A.400.350.3
(3)(a) Employee bargaining shall be ((initiated after July 1, 4
2018,)) over the dollar amount to be contributed for school employee 5
health benefits ((beginning January 1, 2020, )) on behalf of each 6
employee for health care benefits , except as provided in (b) of this 7
subsection. Bargaining must subsequently be conducted in even-8
numbered years between the governor or governor's designee and one 9
coalition of all the exclusive bargaining representatives impacted by 10
benefit purchasing with the school employees' benefits board 11
established in RCW 41.05.740, consistent with RCW 28A.400.280 and 12
28A.400.350. The coalition bargaining must follow the model initially 13
established for state employees in RCW 41.80.020. 14
(b) For the 2027-2029 fiscal biennium, the dollar amount expended 15
on behalf of each employee for health care benefits will be set by 16
the legislature in the omnibus operating appropriations act. 17
Bargaining agreements reached for the 2027-2029 fiscal biennium shall 18
not include employer health care contributions, wellness, flexible 19
spending account contributions, benefit allocation factors, or any 20
other provisions related to employee health care expenses.21
(4)(a) The governor shall submit a request for funds necessary to 22
implement the collective bargaining agreement for the dollar amount 23
to be expended for school employee health benefits, or for 24
legislation necessary to implement the agreement. A request for funds 25
shall not be submitted to the legislature by the governor unless such 26
request: 27
(((a))) (i) Has been submitted to the director of the office of 28
financial management by October 1st prior to the legislative session 29
at which the request is to be considered; and 30
(((b))) (ii) Has been certified by the director of the office of 31
financial management as being feasible financially for the state.32
(b) The legislature shall approve or reject the submission of the 33
request for funds. The legislature shall not consider a request for 34
funds unless the request is transmitted to the legislature as part of 35
the governor's budget document submitted under RCW 43.88.030 and 36
43.88.060. 37
(c) If the legislature rejects or fails to act on the submission, 38
either party may reopen all or part of the agreement. However, if the 39
director of the office of financial management does not certify a 40
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request under this section as being feasible financially for the 1
state, the parties shall enter into collective bargaining solely for 2
the purpose of reaching a mutually agreed upon modification of the 3
agreement necessary to address the absence of those requested funds. 4
The legislature may act upon the health care benefit provisions of 5
the modified collective bargaining agreement if those provisions are 6
agreed upon and submitted to the office of financial management and 7
legislative budget committees before final legislative action on the 8
biennial or supplemental operating budget. If the legislature rejects 9
or fails to act on the submission, either party may reopen all or 10
part of the agreement. 11
(d) This subsection (4) does not apply for the 2027-2029 fiscal 12
biennium.13
Sec. 6. RCW 41.59.105 and 2017 3rd sp.s. c 13 s 818 are each 14
amended to read as follows: 15
(1) All collective bargaining agreements entered into between a 16
school district employer and school district employees under this 17
chapter after June 10, 2010, as well as bargaining agreements 18
existing on June 10, 2010, but renewed or extended after June 10, 19
2010, shall be consistent with RCW 28A.657.050. 20
(2) All collective bargaining agreements entered into between a 21
school district employer and school district employees under this 22
chapter shall be consistent with RCW 28A.400.280 and 28A.400.350.23
(3)(a) Employee bargaining shall be ((initiated after July 1, 24
2018,)) over the dollar amount to be contributed ((beginning January 25
1, 2020, )) on behalf of each employee for health care benefits , 26
except as provided in (b) of this subsection . Bargaining must 27
subsequently be conducted in even-numbered years between the governor 28
or governor's designee and one coalition of all the exclusive 29
bargaining representatives impacted by benefit purchasing with the 30
school employees' benefits board established in RCW 41.05.740, 31
consistent with RCW 28A.400.280 and 28A.400.350. The coalition 32
bargaining must follow the model initially established for state 33
employees in RCW 41.80.020. 34
(b) For the 2027-2029 fiscal biennium, the dollar amount expended 35
on behalf of each employee for health care benefits will be set by 36
the legislature in the omnibus operating appropriations act. 37
Bargaining agreements reached for the 2027-2029 fiscal biennium shall 38
not include employer health care contributions, wellness, flexible 39
p. 16 SB 5793
spending account contributions, benefit allocation factors, or any 1
other provisions related to employee health care expenses.2
(4)(a) The governor shall submit a request for funds necessary to 3
implement the collective bargaining agreement for the dollar amount 4
to be expended for school employee health benefits, or for 5
legislation necessary to implement the agreement. A request for funds 6
shall not be submitted to the legislature by the governor unless such 7
request: 8
(((a))) (i) Has been submitted to the director of the office of 9
financial management by October 1st prior to the legislative session 10
at which the request is to be considered; and 11
(((b))) (ii) Has been certified by the director of the office of 12
financial management as being feasible financially for the state.13
(b) The legislature shall approve or reject the submission of the 14
request for funds. The legislature shall not consider a request for 15
funds unless the request is transmitted to the legislature as part of 16
the governor's budget document submitted under RCW 43.88.030 and 17
43.88.060. 18
(c) If the legislature rejects or fails to act on the submission, 19
either party may reopen all or part of the agreement. However, if the 20
director of the office of financial management does not certify a 21
request under this section as being feasible financially for the 22
state, the parties shall enter into collective bargaining solely for 23
the purpose of reaching a mutually agreed upon modification of the 24
agreement necessary to address the absence of those requested funds. 25
The legislature may act upon the health care benefit provisions of 26
the modified collective bargaining agreement if those provisions are 27
agreed upon and submitted to the office of financial management and 28
legislative budget committees before final legislative action on the 29
biennial or supplemental operating budget. If the legislature rejects 30
or fails to act on the submission, either party may reopen all or 31
part of the agreement. 32
(d) This subsection (4) does not apply for the 2027-2029 fiscal 33
biennium.34
Sec. 7. RCW 47.64.270 and 2013 c 306 s 522 are each amended to 35
read as follows: 36
(1) ((The)) Except as provided in subsection (5) of this section, 37
the employer and one coalition of all the exclusive bargaining 38
representatives subject to this chapter and chapter 41.80 RCW shall 39
p. 17 SB 5793
conduct negotiations regarding the dollar amount expended on behalf 1
of each employee for health care benefits. 2
(2) Absent a collective bargaining agreement to the contrary, the 3
department of transportation shall provide contributions to insurance 4
and health care plans for ferry system employees and dependents, as 5
determined by the state health care authority, under chapter 41.05 6
RCW. 7
(3) ((The)) Except as provided in subsection (5) of this section, 8
the employer and employee organizations may collectively bargain for 9
insurance plans other than health care benefits, and employer 10
contributions may exceed that of other state agencies as provided in 11
RCW 41.05.050. 12
(4) For the 2013-2015 fiscal biennium, a collective bargaining 13
agreement related to employee health care benefits negotiated between 14
the employer and coalition pursuant to RCW 41.80.020(3) regarding the 15
dollar amount expended on behalf of each employee must be a separate 16
agreement for which the governor may request funds necessary to 17
implement the agreement. 18
(5) For the 2027-2029 fiscal biennium, the dollar amount expended 19
on behalf of each employee for health care benefits will be set by 20
the legislature in the omnibus operating appropriations act. 21
Bargaining agreements reached for the 2027-2029 fiscal biennium shall 22
not include employer health care contributions, wellness, or flexible 23
spending account contributions, or any other provisions related to 24
employee health care expenses.25
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