Passed by the House March 4, 2005 Yeas 96   ________________________________________ Speaker of the House of Representatives Passed by the Senate April 7, 2005 Yeas 48   ________________________________________ President of the Senate | I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1286 as passed by the House of Representatives and the Senate on the dates hereon set forth. ________________________________________ Chief Clerk | |
Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 01/20/2005. Referred to Committee on Appropriations.
AN ACT Relating to creating the medical flexible spending account; amending RCW 41.05.011 and 41.05.120; and adding new sections to chapter 41.05 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 41.05.011 and 2001 c 165 s 2 are each amended to read
as follows:
Unless the context clearly requires otherwise, the definitions in
this section shall apply throughout this chapter.
(1) "Administrator" means the administrator of the authority.
(2) "State purchased health care" or "health care" means medical
and health care, pharmaceuticals, and medical equipment purchased with
state and federal funds by the department of social and health
services, the department of health, the basic health plan, the state
health care authority, the department of labor and industries, the
department of corrections, the department of veterans affairs, and
local school districts.
(3) "Authority" means the Washington state health care authority.
(4) "Insuring entity" means an insurer as defined in chapter 48.01
RCW, a health care service contractor as defined in chapter 48.44 RCW,
or a health maintenance organization as defined in chapter 48.46 RCW.
(5) "Flexible benefit plan" means a benefit plan that allows
employees to choose the level of health care coverage provided and the
amount of employee contributions from among a range of choices offered
by the authority.
(6) "Employee" includes all full-time and career seasonal employees
of the state, whether or not covered by civil service; elected and
appointed officials of the executive branch of government, including
full-time members of boards, commissions, or committees; and includes
any or all part-time and temporary employees under the terms and
conditions established under this chapter by the authority; justices of
the supreme court and judges of the court of appeals and the superior
courts; and members of the state legislature or of the legislative
authority of any county, city, or town who are elected to office after
February 20, 1970. "Employee" also includes: (a) Employees of a
county, municipality, or other political subdivision of the state if
the legislative authority of the county, municipality, or other
political subdivision of the state seeks and receives the approval of
the authority to provide any of its insurance programs by contract with
the authority, as provided in RCW 41.04.205; (b) employees of employee
organizations representing state civil service employees, at the option
of each such employee organization, and, effective October 1, 1995,
employees of employee organizations currently pooled with employees of
school districts for the purpose of purchasing insurance benefits, at
the option of each such employee organization; and (c) employees of a
school district if the authority agrees to provide any of the school
districts' insurance programs by contract with the authority as
provided in RCW 28A.400.350.
(7) "Board" means the public employees' benefits board established
under RCW 41.05.055.
(8) "Retired or disabled school employee" means:
(a) Persons who separated from employment with a school district or
educational service district and are receiving a retirement allowance
under chapter 41.32 or 41.40 RCW as of September 30, 1993;
(b) Persons who separate from employment with a school district or
educational service district on or after October 1, 1993, and
immediately upon separation receive a retirement allowance under
chapter 41.32, 41.35, or 41.40 RCW;
(c) Persons who separate from employment with a school district or
educational service district due to a total and permanent disability,
and are eligible to receive a deferred retirement allowance under
chapter 41.32, 41.35, or 41.40 RCW.
(9) "Benefits contribution plan" means a premium only contribution
plan, a medical flexible spending arrangement, or a cafeteria plan
whereby state and public employees may agree to a contribution to
benefit costs which will allow the employee to participate in benefits
offered pursuant to 26 U.S.C. Sec. 125 or other sections of the
internal revenue code.
(10) "Salary" means a state employee's monthly salary or wages.
(11) "Participant" means an individual who fulfills the eligibility
and enrollment requirements under the benefits contribution plan.
(12) "Plan year" means the time period established by the
authority.
(13) "Separated employees" means persons who separate from
employment with an employer as defined in:
(a) RCW 41.32.010(11) on or after July 1, 1996; or
(b) RCW 41.35.010 on or after September 1, 2000; or
(c) RCW 41.40.010 on or after March 1, 2002;
and who are at least age fifty-five and have at least ten years of
service under the teachers' retirement system plan 3 as defined in RCW
41.32.010(40), the Washington school employees' retirement system plan
3 as defined in RCW 41.35.010, or the public employees' retirement
system plan 3 as defined in RCW 41.40.010.
(14) "Emergency service personnel killed in the line of duty" means
law enforcement officers and fire fighters as defined in RCW 41.26.030,
and reserve officers and fire fighters as defined in RCW 41.24.010 who
die as a result of injuries sustained in the course of employment as
determined consistent with Title 51 RCW by the department of labor and
industries.
(15) "Employer" means the state of Washington.
(16) "Employing agency" means a division, department, or separate
agency of state government and a county, municipality, school district,
educational service district, or other political subdivision, covered
by this chapter.
NEW SECTION. Sec. 2 A new section is added to chapter 41.05 RCW
to read as follows:
(1) The medical flexible spending account is created in the custody
of the state treasurer. All receipts from the following must be
deposited in the account: (a) Revenues from employing agencies for
costs associated with operating the program; and (b) unclaimed moneys
at the end of the plan year after all timely submitted claims for that
plan year have been processed. Expenditures from the account may be
used only for administrative and other expenses related to operating
the medical flexible spending account program. Only the administrator
or the administrator's designee may authorize expenditures from the
account. The account is subject to allotment procedures under chapter
43.88 RCW, but an appropriation is not required for expenditures.
(2) Program claims reserves and money necessary for start-up costs
transferred from the public employees' and retirees' insurance account
established in RCW 41.05.120 may be deposited in the account. Moneys
in excess of the amount necessary for administrative and operating
expenses of the medical flexible spending account program may be
transferred to the public employees' and retirees' insurance account.
(3) The authority may periodically bill employing agencies for
costs associated with operating the medical flexible spending account
program.
Sec. 3 RCW 41.05.120 and 1994 c 153 s 9 are each amended to read
as follows:
(1) The public employees' and retirees' insurance account is hereby
established in the custody of the state treasurer, to be used by the
administrator for the deposit of contributions, the remittance paid by
school districts and educational service districts under RCW
((28A.400.400)) 28A.400.410, reserves, dividends, and refunds, ((and))
for payment of premiums for employee and retiree insurance benefit
contracts and subsidy amounts provided under RCW 41.05.085, and
transfers from the medical flexible spending account as authorized in
section 2 of this act. Moneys from the account shall be disbursed by
the state treasurer by warrants on vouchers duly authorized by the
administrator. Moneys from the account may be transferred to the
medical flexible spending account to provide reserves and start-up
costs for the operation of the medical flexible spending account
program.
(2) The state treasurer and the state investment board may invest
moneys in the public employees' and retirees' insurance account. All
such investments shall be in accordance with RCW 43.84.080 or
43.84.150, whichever is applicable. The administrator shall determine
whether the state treasurer or the state investment board or both shall
invest moneys in the public employees' insurance account.
NEW SECTION. Sec. 4 A new section is added to chapter 41.05 RCW
to read as follows:
(1) Every employing agency shall fully cooperate with the authority
and shall carry out all actions necessary for the operation of benefit
plans, education of employees, claims administration, and other
activities that may be required by the authority for administration of
this chapter.
(2) Employing agencies shall report all data relating to employees
eligible to participate in benefits or plans administered by the
authority in a format designed and communicated by the authority.