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As the session moves toward Sine Die, now is the time for both houses to coordinate and negotiate their differing budgets and bills that have made it past both houses.

 Brief Summary of Selected Bills and/or Issues Still in Play

Note, both House and Senate budgets will be released 3/24 so the status of much of what is covered below may be clarified by inclusion or exclusion within any budget.

Re: Pensions

TRS/PERS Plans 1 are the only two plans of fifteen offered by the state that do not receive cost of living increases (COLA) each year. So, each year, retirees ‘beg’ for consideration for a COLA. This year, there is an opportunity to end this continual ask. It starts with the fact that another closed plan, LEOFF 1, has a surplus of close to $3 Billion. How best to use those excess dollars? Apply to COLA and unfunded liability (Senate) or put it into General Fund for unspecified uses? (House)

There is a real difference between the House and the Senate leadership in how to deal with this surplus in LEOFF 1 and the need for a COLA in TRS/PERS Plans 1. The struggle appears to be between , , and . (See below) This issue will be part of budget negotiations. The good news is that all of them save state and local/school district dollars by reducing rates and decreasing or eliminating the surcharge related to the unfunded liability. The bad news is that although there are short-term savings, there are projected long term costs in increased rates in the future.

As an aside, LEOFF 1 has 6,154 members, with average pension of $64,956 versus PERS 1 with 39,306 members @ $29,052 average and TRS 1 with 28,556 members @ $29,664 average pension.

1. : 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). It creates an annual cost-of-living adjustment to the retirement benefits of retirees in the PERS Plan 1 and TRS Plan 1, of up to 3 percent.

   • Eliminates the remaining unfunded actuarial accrued liability and benefit improvement rates.
   
   

   The bill saves the state over $600 million in GF dollars and city/local governments over $400 million. There is strong opposition from firefighters who argue that this proposal is illegal and besides, the money belongs to them. The bill must seek approval from the IRS which implies uncertainty as to legality. Cities and counties would like to see the excess used to help them cover the insurance costs for these retirees.

   The bill passed the Senate 28-21 and has been moved to House Appropriations which held a public hearing 3/13/25.

2. : Reduces employer normal cost contribution rates for the Public Employees’ Retirement System (PERS), the Teachers’ Retirement System (TRS), the School Employees’ Retirement System (SERS), and the Washington State Patrol Retirement System for fiscal year/school year 2026.

   • Reduces the Plan 2 member contribution rates for PERS, TRS, and SERS for fiscal year/school year 2026.
   
   

   It passed Senate 48-0-1 and will have a public hearing 3/20 before House Appropriations.

3. : Concerning benefits authorized to be offered by the public employees’ benefits board. This bill would allow HCA to the following employee-paid, voluntary benefit plans: 39 (a) Emergency transportation; (b) Identity protection © Legal aid; (d) Long-term care insurance; (e) Noncommercial personal automobile insurance; (f) Personal homeowner’s or renter’s insurance; (g) Pet insurance; (h) Specified disease or illness-triggered fixed payment insurance, hospital confinement fixed payment insurance, (i) Travel insurance.

   It passed the Senate 48-0-1 and has been referred to House Appropriations for public hearing 3/20 and Executive Session on 3/24.

4. : Permits individuals retired from the public employees’ retirement system, the teachers’ retirement system, the school employees’ retirement system, and the public safety employees’ retirement system additional opportunities to work for up to 1,040 hours per year while in receipt of pension benefits in non-administrative positions. In addition, someone who enters service in a second-class school district 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 school year. This bill will sunset 1/1/2030.

   This bill passed the Senate 41-7.

   It had a public hearing on 3/19 in Appropriations. Note: HB 1936 (see Below) which sunsets in 2027. Which bill will cross the finish line?

5. : Concerning employer contributions and incentives for public and school employee health benefit plans.

   This bill was introduced 3/21 and was part of the Senate slew of bills dealing with revenues and expenditures related to the upcoming release of the Senate budget. As stated in the bill,

   “One significant cost driver is the employer contribution rate for employee health care benefits, which currently exceeds the average benefits package offered in comparable sectors… The legislature intends to eliminate the smart health program and set the employer contribution rates for employee health care benefits for the 21 2027-2029 fiscal biennium… For the 2027-2029 fiscal biennium, the dollar amount expended on behalf of each employee for health care benefits will be set by the legislature in the omnibus operating appropriations act. Bargaining agreements reached for the 2027-2029 fiscal biennium shall not include employer health care contributions, wellness, or flexible spending account contributions, or any other provisions related to employee health care expenses.”

   Currently, according to the collective bargaining agreement the state pays 85% of the insurance premium; the employee 15%. It is rumored that the state would change the percentage to 80/20. WEA is opposed to this cancellation of a portion of the CB agreement.

   It has been sent to Ways and Means awaiting the hearing date.

6. : Providing a benefit increase to certain retirees of the public employees’ retirement system plan 1 and the teachers’ retirement system plan. This bill provides a one-time 3 percent increase to the retirement benefits of retirees in the Public Employees’ Retirement System and the Teachers’ Retirement System Plan 1, up to $110 per month.

   This bill is in Rules. It is a bill that WSSRA and its members view as a fallback option should SSB 5085 (above) not be successful in the House. Likely NTIB.

7. : Extending the expiration of certain school employee postretirement employment restrictions to 2027.

   Until January 1, 2027, retirees from the Teachers’ Retirement System are permitted to collect retirement benefits for the first 1,040 hours per calendar year when either: (1) are employed in a non-administrative position; or (2) having retired before January 1, 2022, are employed in a second-class school district as a district superintendent or an in-school administrator position.

   The bill passed the House 97-0-1 and has been assigned to Senate Ways and Means.

8. HB 2034: Concerning termination and restatement of plan 1 of the law enforcement officers’ and firefighters’ retirement system. This bill terminates the Law Enforcement Officers’ and Firefighters’ Retirement System Plan 1 (LEOFF 1) and creates the Restated Law Enforcement Officers’ and Firefighters’ Retirement System (Restated LEOFF) on June 30, 2029.

   • Benefits to members are unchanged by the transfer from LEOFF 1 to the Restated LEOFF.
   • Provides for a transfer of assets from LEOFF 1 to the Restated LEOFF to 120 percent of fully funding the benefits of the new plan.
   • Enables the small number of active employees of LEOFF 1 to retire from service prior to the transfer.
   • Provides for immediate vesting of all remaining terminated, nonvested members of LEOFF 1 prior to the transfer.
   • Deposits remaining assets in the Pension Funding Stabilization Account, from which they may be transferred to the State General Fund.
   
   

   It is believed that terminating and reinstating LEOFF Plan 1 would be legal. Also, unlike SSB 5085 above, the excess dollars would be put into the GF and legislators could then spend it as they see fit rather than dedicating it for COLA’s.

   The House held a public hearing on the bill on 3/13/25.

Bills that Could Have Fiscal Impact/Costs to Districts

1. : Expanding protections for workers in the state paid family and medical leave program.

   This second 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 180 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 in the PFML Program.2E
   
   

   E2SHB 1213 was passed by the House 55-41-2. Costs to state/employers from fiscal note are still indeterminate. However, the fiscal note does state “This legislation would have an indeterminate, but potentially significant, impact on local governments.” It is scheduled for a public hearing on 3/24 and Executive Session 3/28 in Senate Labor.

2. : Concerning access to personnel records. An employer subject to the PRA must provide a copy of the personnel file when requested by an employee, former employee, or their designee in accordance with the procedures and requirements set forth in the PRA. Passed the House 56/41/1.

   It is scheduled for public hearing 3/24 and Executive Session 3/28 before Senate Labor.

3. : 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 on 2/11 before House Finance and is likely to be replaced by the recent Property Tax/Revenue proposal introduced by the Senate SB 5798.

4. : Concerning workplace standards and requirements applicable to employers of isolated employees. This bill requires the Department of Labor and Industries to enforce requirements for employers of isolated employees. (Current estimates suggest that as few as 17 percent of covered employers are complying.) Requirements include training and furnishing of panic buttons. An example of an eligible employee may be the evening janitorial staff. This bill passed the House 86-10-2 and is before Senate Labor for public hearing 3/17 and Executive Session 3/21.

5. : 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 intelligence technology that affects the employees’ wages or performance evaluations.

   • Exempts artificial intelligence technology that does not meaningfully impact employee’s wages or performance evaluations and is implemented by a third party from the requirement to bargain over the use of artificial intelligence technology.
   
   

   This bill passed House 58-38 and is scheduled for public hearing in Senate Labor 3/28.

6. : Expanding protections for applicants and employees under the Washington fair chance act. This bill changes the circumstances under which an employer is prohibited from obtaining information about an applicant’s criminal history record under the Washington Fair Chance Act.

   • Limits an employer’s ability to pursue a tangible adverse employment action against an employee or applicant based on criminal history information under certain circumstances.
   • Changes enforcement procedures and monetary penalties under the Washington Fair Chance Act.
   
   

   It passed House 56-40-2 and is scheduled for public hearing before Senate Labor 3/24 and Executive Session on 3/28.

7. : Concerning workers’ compensation benefits. This bill modifies/increases the percentages of wages an injured worker, particularly those unmarried with children, may receive for workers’ compensation benefits. It passed the House on 78-18-12. It is scheduled for public hearing 3/17 and Executive Session 3/21 before Senate Labor.

8. : An act relating to 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.

   • Limits the number of weeks a striking worker may receive UI benefits to 12 weeks.
   • 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.
   • Requires the Employment Security Department to provide an annual report to the Legislature regarding the prevalence of strikes and the impact on the UI Trust Fund.
   • Provides a ten-year sunset for the act.
   
   

   This bill passed Senate 28-21 and was sent to House Labor for public hearing 3/8 and Executive Session 3/21.

9. : Expanding access to leave and safety accommodations to include workers who are victims of hate crimes or bias incidents.

   This bill expands access to leave and safety accommodations available to victims of domestic violence, sexual assault, or stalking, to include victims of hate crime.

   This bill passed the Senate 40/8/1 and has been sent to House Labor for a public hearing on 3/21 and Executive Session 3/26.

10. : Establishing a complaint process to address willful noncompliance with certain state education laws.

    This bill directs the Office of the Superintendent of Public Instruction (OSPI) to establish a process to investigate and address complaints alleging willful noncompliance with state laws concerning civil rights; harassment, intimidation, and bullying; certain curriculum requirements; the use of restraint or isolation on a student; and student discipline.

    • Requires school districts, charter schools, and state-tribal education compact schools to submit compliance action plans if OSPI finds noncompliance with any of these state laws and allows OSPI to impose certain consequences for willful noncompliance.
    • Directs the Professional Educator Standards Board to adopt rules that make a school district superintendent’s willful noncompliance with state law an act of unprofessional conduct. Amends the oath that elected or appointed school directors take to include that they must support Washington State laws.
    
    

    The ”Con” and “Other” testimony submitted by a few school districts and WSSDA: CON: People can already report concerns to OSPI. This bill creates a snitch line, which will only create division and animosity. OSPI picks and chooses what it will act on in accordance with the agenda of the superintendent. This bill threatens financial penalties, which undermines the autonomy of schools. Diversity is not a one-size-fits-all concept, and school districts have a lot of diversity and should be able to adapt to the unique needs of their community. This bill will cause legal chaos, and people will threaten filing complaints with OSPI.

    OTHER: This bill has operational and fiscal concerns. The financial penalties in this bill could further harm students. This bill puts OSPI in an adversarial position with school districts instead of being their partners. The election process provides checks and balances.

    The Senate passed the bill 30-19. It has been referred to House Education for a public hearing 3/24.

11. : 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.
    
    

    ESSB 5291 passed Senate 38/11 and has been sent to House Early Learning/Human Services Committee for a public hearing 3/26.

12. : 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 beginning in 2030, in addition to the current requirement to maintain a four-year solvency.
    • Eliminates the statutory formula used to calculate the rate.
    
    

    The bill passed the Senate 45-4 and has been assigned a public hearing 3/18 before House Labor and Executive Session 3/26.

13. : Concerning public employee collective bargaining processes. This bill makes changes to bargaining unit certification processes by requiring employers and unions to provide offers of proof when they challenge an employee’s inclusion in a bargaining unit and changes the process for the consolidation of bargaining units.

    • Makes changes to the Public Employment Relations Commission’s (PERC) hearing processes by allowing the PERC to unilaterally set hearing dates and draw an adverse inference from a party’s failure to respond to subpoenas, unless the union asserts union privilege.
    • Prohibits public employers from making grievance settlement agreements that require workers to waive claims arising out of state and federal law.
    
    

    This bill passed Senate 31-18 and will have public hearing before House Labor 3/21 and Executive Session 3/28.

Fred Yancey
The Nexus Group LLC