CERTIFICATION OF ENROLLMENT

                  SUBSTITUTE SENATE BILL 5873

                        52nd Legislature

                      1991 Regular Session

Passed by the Senate April 23, 1991

  Yeas 42   Nays 0

President of the Senate

Passed by the House April 16, 1991

  Yeas 96   Nays 0

Speaker of the

       House of Representatives

Approved

Governor of the State of Washington

CERTIFICATE

I, Gordon Golob, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SUBSTITUTE SENATE BILL 5873 as passed by the Senate and the House of Representatives on the dates hereon set forth.

Secretary

                                     FILED         

                        Secretary of State   

                       State of Washington

                  _______________________________________________

                            SUBSTITUTE SENATE BILL 5873

                              AS AMENDED BY THE HOUSE

                  _______________________________________________

                     Passed Legislature - 1991 Regular Session

State of Washington              52nd Legislature             1991 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators McDonald, Gaspard, Saling, Snyder, L. Smith, Johnson, Bauer, Rasmussen and Barr).

Read first time March 11, 1991.Providing insurance coverage for retired and disabled school district employees.

     AN ACT Relating to insurance coverage for retired and disabled school district employees; adding a new section to chapter 28A.400 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 28A.400 RCW to read as follows:

     (1)  Retired and disabled school district employees shall be entitled to continue their participation in any insurance plans and contracts after their retirement or disablement for a period of at least thirty months.  These retired or disabled employees shall bear the full cost of premiums required to provide the coverage.     (2)   This section applies to:

     (a)      School district employees who retire or are disabled after the effective date of this act; and

     (b)      School district employees who retired within the eighteen-month period ending on the effective date of this act.

     (3)      School district employees who retired more than eighteen months before the effective date of this act and who were covered by a school district's insurance plan on January 1, 1991, may continue their coverage for a period of at least one year from the effective date of this act.

NEW SECTION. Sec. 2.      (1)  The Washington state health care authority shall study and develop recommendations regarding health care coverage for retired and disabled public school employees.  The study shall include, but not be limited to, the following:

     (a)      Collection of information regarding the cost to both the school district and the retired or disabled employee of coverage, the prevalence of use of available coverage by retirees, and the types of coverage made available through school districts;

     (b)      Evaluation of the feasibility and cost implications to retired or disabled employees, the state, school districts, and active employees of:  (i)  Requiring school districts to allow retired employees to continue their employer-sponsored health care coverage at a reasonable cost to the employee; or (ii) Allowing retired or disabled school district employees to participate in insurance plans offered by the state employees' benefits board even if the retired or disabled employees did not paritcipate in such plans as active employees;

     (c)      Development of mechanisms to pre-fund health care coverage for retired and disabled employees, through means such as contributions by active employees to a fund established to finance future retired and disabled employees' health care benefits, and voluntary contributions by active employees to individual medical accounts from which funds can be drawn upon retirement or becoming disabled to pay premiums and costs for health care coverage;

     (d)      Establishment of variable health care coverage premium rates for retired or disabled employees based upon the individual retired or disabled individual's income; and

     (e)      Evaluation of any other areas deemed necessary by the health care authority.

     (2)      The health care authority may form technical advisory committees to assist with the study.  The health care authority shall submit its findings and recommendations to the legislature by December 1, 1991.