HOUSE BILL REPORT

                 2EHB 1584

                       As Passed House

                      January 21, 1998

Title:  An act relating to school district employee benefits.

Brief Description:  Revising provisions for school district employee benefits.

Sponsors:  By House Committee on Health Care (originally sponsored by  Representatives Sherstad, Zellinsky, Dyer, Skinner, Backlund and Johnson).

Brief History:

Committee Activity:

Health Care:  2/14/97, 2/27/97 [DP].

Floor Activity:

Passed House:  3/19/97, 98‑0;

Passed House:  1/21/98, 70-28.

HOUSE COMMITTEE ON HEALTH CARE

Majority Report:  Do pass.  Signed by 7 members:  Representatives Dyer, Chairman; Backlund, Vice Chairman; Skinner, Vice Chairman; Anderson; Parlette; Sherstad and Zellinsky.

Minority Report:  Do not pass.  Signed by 4 members:  Representatives Cody, Ranking Minority Member; Murray, Assistant Ranking Minority Member; Conway and Wood.

Staff:  Bill Hagens (786-7131).

Background:   There are 296 school districts in Washington  and a substantial number of school employees for which the state provides benefits at about $315 per full-time employee, per month.  While some districts purchase benefits through the State Health Care Authority, most administer them locally.  State law limits state-funded benefits to these five:  medical, dental, vision, group term life, and group long-term disability insurance coverage.  A recent attorney general=s opinion states that school districts must purchase all five benefits.  This requirement reduces the amount of funds available for optional benefits through voluntary employee benefit arrangements (VEBAs).

Summary of Bill:  School districts may  limit the employee benefit package to one or more of the statutory benefits; however, all employee bargaining units must agree in districts where optional benefits are offered.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The bill provides greater choice to school employees.

Testimony Against:  The bill will require school employees with families to pay more for their benefits.

Testified:  Representative Sherstad, prime sponsor; Karen Davis, Washington Education Association (con); David Westberg, Joint Council of Stationary Engineers (con); Sherry Appleton, Service Employees International Union (con); Mike Ryherd, Teamsters (con); Mark Wilkerson, Wilkerson & Associates (pro); Peter Laney, Laney Advisors, Ltd. (pro); Dr. Cliff Campbell, Washington Association of School Administrators (pro); and John Kvamme, Association of Washington School Principles & Washington Association of School Administrators (pro).