6444-S.E AMH ERIM PRIN 267
ESSB 6444 - H AMD TO H AMD (H-5483.2/10) 1501
By Representative Ericks
ADOPTED 3/05/2010
On page 243, after line 30, insert the following:
"Sec. 715. 2009 c 564 s 915 (uncodified) is amended to read as follows:
General Fund--State Appropriation (FY 2011)........... $22,340,000
Special Account Salary/Insurance Increase Account--State Revolving Account Appropriation........................................ $111,554,000
TOTAL APPROPRIATION........................ $133,894,000
Appropriations for state agencies in this act, and as
appropriated above, are sufficient for nonrepresented and represented state
employee health benefits for state agencies, including institutions of higher
education. The office of financial management shall update agency
appropriations schedules to reflect the changes to funding levels in this
section by agency and fund. To facilitate the transfer of moneys from
dedicated funds and accounts, the state treasurer is directed to transfer
sufficient moneys, in an amount not to exceed $68,554,000 from each dedicated
fund or account to the special salary/insurance increase account in accordance
with schedules provided by the office of financial management. ((and))The
appropriations for health insurance funding rates in state agency
appropriations, and those in this section are subject to the following
conditions and limitations:
(1) The legislature finds that the monthly employer funding rates in the 2009-2011 operating budget, in combination with the level of state employee premium share collectively bargained following the conclusion of the 2009 legislative session, have produced an inadequate stream of revenue to maintain the state employee health benefits system in a sustainable and stable financial position. The increase to the monthly employer funding rate made in this section is made with the intent that the governor immediately request that the coalition of all the exclusive bargaining representatives with which health care benefit funding is bargained commence bargaining over a corresponding increase in the employee share of health premiums.
(2)(a) The monthly employer funding rate for
insurance benefit premiums, public employees' benefits board administration,
and the uniform medical plan, shall not exceed $745 per eligible employee for
fiscal year 2010. For fiscal year 2011 the monthly employer funding rate shall
not exceed (($768))$863 per eligible employee, nor shall a
plan for expenditures on benefits and administration by the public employees'
benefits board be adopted that results in projected total reserve funds being
less than $90,000,000 by June 30, 2011.
(b) In order to achieve the level of funding provided for health benefits, the public employees' benefits board shall require any or all of the following: Employee premium copayments, increases in point-of-service cost sharing, the implementation of managed competition, or make other changes to benefits consistent with RCW 41.05.065. During the 2009-11 fiscal biennium, the board may only authorize benefit plans and premium contributions for an employee and the employee's dependents that are the same, regardless of an employee's status as represented or nonrepresented under the personnel system reform act of 2002.
(c) The health care authority shall deposit any moneys received on behalf of the uniform medical plan as a result of rebates on prescription drugs, audits of hospitals, subrogation payments, or any other moneys recovered as a result of prior uniform medical plan claims payments, into the public employees' and retirees' insurance account to be used for insurance benefits. Such receipts shall not be used for administrative expenditures.
(d) The conditions in this section apply to benefits for nonrepresented employees, employees represented by the super coalition, and represented employees outside of the super coalition, including employees represented under chapter 47.64 RCW.
(((2)))(3) The health care authority, subject
to the approval of the public employees' benefits board, shall provide
subsidies for health benefit premiums to eligible retired or disabled public
employees and school district employees who are eligible for medicare, pursuant
to RCW 41.05.085. From January 1, 2010, through the remainder of the 2009-11
fiscal biennium, the subsidy shall be $182.89.
(((3)))(4) Technical colleges, school
districts, and educational service districts shall remit to the health care
authority for deposit into the public employees' and retirees' insurance
account established in RCW 41.05.120 the following amounts:
(a) For each full-time employee, $59.59 per month beginning September 1, 2009, and $64.90 beginning September 1, 2010;
(b) For each part-time employee, who at the time of the remittance is employed in an eligible position as defined in RCW 41.32.010 or 41.40.010 and is eligible for employer fringe benefit contributions for basic benefits, $59.59 each month beginning September 1, 2009, and $64.90 beginning September 1, 2010, prorated by the proportion of employer fringe benefit contributions for a full-time employee that the part-time employee receives. The remittance requirements specified in this subsection shall not apply to employees of a technical college, school district, or educational service district who purchase insurance benefits through contracts with the health care authority."
Correct the title.
On page 249, after line 19, insert the following:
"Data Processing Revolving Account: For transfer to the Salary/Insurance Increase Revolving Account--State for fiscal year 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . .$30,000,000
Public Works Assistance Account: For transfer to the Salary/Insurance Increase Revolving Account--State for fiscal year 2011. . . . . . . . . . . . . . . . . .. . . . . .. . . .$13,000,000"
On page 264, after line 20, insert the following:
"Sec. 918. RCW 43.105.080 and 1999 c 80 s 8 are each amended to read as follows:
There is created a revolving fund to be known as the data processing revolving fund in the custody of the state treasurer. The revolving fund shall be used for the acquisition of equipment, software, supplies, and services and the payment of salaries, wages, and other costs incidental to the acquisition, development, operation, and administration of information services, telecommunications, systems, software, supplies and equipment, including the payment of principal and interest on bonds issued for capital projects, by the department, Washington State University's computer services center, the department of personnel's personnel information systems division, the office of financial management's financial systems management group, and other users as jointly determined by the department and the office of financial management, and during the 2009-11 fiscal biennium, the legislature may transfer from the data processing revolving fund to the salary/insurance increase revolving fund such amounts as reflect the excess fund balance of the account. The revolving fund is subject to the allotment procedure provided under chapter 43.88 RCW. Disbursements from the revolving fund for the services component of the department are not subject to appropriation. Disbursements for the strategic planning and policy component of the department are subject to appropriation. All disbursements from the fund are subject to the allotment procedures provided under chapter 43.88 RCW. The department shall establish and implement a billing structure to assure all agencies pay an equitable share of the costs.
As used in this section, the word "supplies" shall not be interpreted to delegate or abrogate the division of purchasing's responsibilities and authority to purchase supplies as described in RCW 43.19.190 and 43.19.200.
Sec. 919. RCW 43.155.050 and 2009 c 564 s 940 are each amended to read as follows:
(1) The public works assistance account is hereby
established in the state treasury. Money may be placed in the public works
assistance account from the proceeds of bonds when authorized by the
legislature or from any other lawful source. Money in the public works assistance
account shall be used to make loans and to give financial guarantees to local
governments for public works projects. Moneys in the account may also be
appropriated to provide for state match requirements under federal law for
projects and activities conducted and financed by the board under the drinking
water assistance account. Not more than fifteen percent of the biennial
capital budget appropriation to the public works board from this account may be
expended or obligated for preconstruction loans, emergency loans, or loans for
capital facility planning under this chapter; of this amount, not more than ten
percent of the biennial capital budget appropriation may be expended for
emergency loans and not more than one percent of the biennial capital budget
appropriation may be expended for capital facility planning loans. During the
2009-2011 fiscal biennium, the legislature may transfer from the public works
assistance account to the general fund, ((and)) the city-county
assistance account, and the salary/insurance increase revolving fund
such amounts as reflect the excess fund balance of the account.
(2) The job development fund is hereby established in the state treasury. Moneys in the job development fund may be spent only after appropriation."
Renumber the remaining sections consecutively, correct any references accordingly, and correct the title.
EFFECT: Increases the monthly employer funding rate charged to participating employers for the Public Employees' Benefits Board (PEBB) health and insurance benefits for fiscal year 2011 from $768 to $863 per eligible employee, and requires the PEBB not to adopt a plan for expenditures on benefits and administration that would project a total reserve level for the end of fiscal year 2011 of less than $90,000,000.
The intent of the Legislature is that the Governor immediately request to commence bargaining a corresponding increase in the employee share of health premiums with the coalition of all the exclusive bargaining representatives with which health care benefit funding is bargained.
Transfers $30 million from the Data Processing Revolving Fund (fund 419) and $13 million from the Public Works Assistance Account (fund 058) to the Salary/Insurance Increase Revolving Account (fund 406). This amount is appropriated for agency charges due to the increased monthly employer funding rate in lieu of an appropriation from the state general fund.
FISCAL IMPACT:
Increases General Fund-State by $22,340,000.
Increases Other Funds by $111,554,000.
Transfers $43 million in funding between accounts.
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