_______________________________________________
SUBSTITUTE
HOUSE BILL 1721
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AS
AMENDED BY THE SENATE
Passed
Legislature - 1993 Regular Session
State of Washington 53rd
Legislature 1993 Regular Session
By
Read
first time 03/03/93.
Authorizing jointly administered health and welfare benefits trusts for
local government employees.
AN ACT Relating to jointly administered health
and welfare benefits trusts; amending RCW 48.62.121; adding a new section to
chapter 48.62 RCW; and creating a new section.
BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1.
RCW 48.62.121 and 1991 sp.s. c 30 s 12 are each amended to read as follows:
(1) No employee or official of a local
government entity may directly or indirectly receive anything of value for
services rendered in connection with the operation and management of a
self-insurance program other than the salary and benefits provided by his or
her employer or the reimbursement of expenses reasonably incurred in
furtherance of the operation or management of the program. No employee or
official of a local government entity may accept or solicit anything of value
for personal benefit or for the benefit of others under circumstances in which
it can be reasonably inferred that the employee's or official's independence of
judgment is impaired with respect to the management and operation of the
program.
(2)(a) No local government entity may
participate in a joint self-insurance program in which local government
entities do not retain complete governing control. This prohibition does not apply
to:
(i) Local government contribution to a
self-insured employee health and welfare benefits plan otherwise authorized and
governed by state statute ((nor to));
(ii) Local government participation in a
multistate joint program where control is shared with local government entities
from other states; or
(iii) Local government contribution to a
self-insured employee health and welfare benefit trust in which the local
government shares governing control with their employees.
(b) If a local government self-insured
health and welfare benefit program, established by the local government as a
trust, shares governing control of the trust with its employees:
(i) The local government must maintain at
least a fifty percent voting control of the trust;
(ii) No more than one voting, nonemployee,
union representative selected by employees may serve as a trustee; and
(iii) The trust agreement must contain
provisions for resolution of any deadlock in the administration of the trust.
(3) Moneys made available and moneys expended
by school districts and educational service districts for self-insurance under
this chapter are subject to such rules of the superintendent of public
instruction as the superintendent may adopt governing budgeting and
accounting. However, the superintendent shall ensure that the rules are
consistent with those adopted by the state risk manager for the management and
operation of self-insurance programs.
(4) RCW 48.30.140, 48.30.150, 48.30.155, and
48.30.157 apply to the use of agents and brokers by local government
self-insurance programs.
(5) Every individual and joint local government
self-insured health and welfare benefits program that provides comprehensive
coverage for health care services shall include mandated benefits that the
state health care authority is required to provide under RCW 41.05.170 and
41.05.180. The state risk manager may adopt rules identifying the mandated
benefits.
(6) An employee health and welfare benefit
program established as a trust shall contain a provision that trust funds be
expended only for purposes of the trust consistent with statutes and rules
governing the local government or governments creating the trust.
NEW SECTION. Sec. 2. A
new section is added to chapter 48.62 RCW to read as follows:
No local government self-insured employee
health and welfare benefit program established as a trust by a local government
entity or entities prior to the effective date of this act may continue in
operation unless such program complies with the provisions of this chapter
within one hundred eighty days after the effective date of this act. The state
risk manager may extend such period if the risk manager finds that such local
government entity or entities are making a good faith effort and taking all
necessary steps to comply with this chapter; however, in no event may the risk
manager extend the period required for compliance more than ninety days after
the expiration of the initial one hundred eighty-day period.
NEW SECTION. Sec. 3. If
Engrossed Second Substitute Senate Bill No. 5304 is enacted into law, the
provisions of chapter 48.62 RCW shall be reviewed to evaluate the extent to
which health care trusts provide benefits to certain individuals in the state;
and to review the federal laws that may constrain the organization or operation
of these joint employee-employer entities. The health services commission
shall make appropriate recommendations to the governor and the legislature as
to how these trusts can be brought under the provisions of Engrossed Second
Substitute Senate Bill No. 5304.
