BILL REQ. #:  H-0704.1 

Read first time 02/12/09.   Referred to Committee on Health Care & Wellness.

     AN ACT Relating to establishing the small business employee wellness program; adding a new section to chapter 82.04 RCW; adding a new chapter to Title 70 RCW; creating a new section; and providing an effective date.

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

NEW SECTION.  Sec. 1   The legislature finds that improving the health of the people of Washington is a paramount goal of state health policy, and embraces the vision to make Washington the healthiest state in the nation. The legislature further finds that the factors and actions that create health include but are not limited to health coverage and access to medical care. The legislature finds that the state must also invest in social determinants of health and stimulate greater personal health actions by individuals and families. The legislature recognizes that it is a shared responsibility among people, government, and the private sectors to assure personal health promotion and that an opportunity for promoting this lies with Washington's private businesses and nonprofit organizations.
     The legislature further finds that many Washington businesses, particularly larger employers, already offer and find great value in employee wellness programs for their employees. Surveys, and the experience of many Washingtonians with events and programs such as the annual governor's health bowl, find that employees also desire and find value with sound employee wellness programs and events. The legislature also finds that there are major barriers to the adoption and use of employee wellness programs across all of Washington's businesses and organizations, particularly among small business and not-for-profit organizations, which have limited resources, including time, to adopt and manage these programs.
     The legislature intends to encourage the growth of workplace-based wellness programs by providing incentives for the adoption of employee wellness programs by small businesses. In providing these incentives, the legislature hopes to encourage all employers to provide health coverage to employees and dependents, but also ensure that all employers have an opportunity to adopt employee wellness programs for the use of their employees to promote wellness.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Department" means the department of health.
     (2) "Level 1 qualified employee wellness program" means a qualified employee wellness program certified by the department of health as meeting the criteria for level 1 qualified employee wellness programs established by the department.
     (3) "Level 2 qualified employee wellness program" means a qualified employee wellness program certified by the department of health as meeting the criteria for level 2 qualified employee wellness programs established by the department.
     (4) "Nonprofit organization" means a nonprofit corporation organized under chapter 24.03 RCW or a tax exempt organization under Title 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code.
     (5) "Qualified employee wellness program" means an employee wellness program certified by the department of health as meeting all the criteria established by the department for level 1 or level 2 qualified employee wellness programs.
     (6) "Small business" means any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that is owned and operated independently from all other businesses, and that has fifty or fewer employees.

NEW SECTION.  Sec. 3   (1) The small business employee wellness program established by this act is to be administered by the department of health. The department must develop criteria and a process for certifying qualified employee wellness programs. In developing the criteria, the department should consider the importance of encouraging organizations and employees to initiate employee wellness programs. Furthermore, organizations are encouraged to make every effort to include free or low-cost offerings that achieve the essential objectives of health promotion among employees. It is recommended that the department consult with recognized experts in the development of these criteria, including the University of Washington, and the Washington health foundation.
     (2) The criteria for level 1 qualified employee wellness programs must include providing a structure, incentives, and other programmatic elements aimed at the increase in positive health behaviors by employees, such as physical activity, better nutrition, sleep, hydration, stress management and other accepted healthy living factors.
     (3) The criteria for level 2 qualified employee wellness programs must include the elements of a level 1 qualified employee wellness program but also incorporate incentives to assure that employees use proven preventive clinical care services, based on the recommendations of the United States clinical preventive services task force.
     (4) Each small business or nonprofit organization eligible for the credit provided in section 4 of this act must maintain records of the results and effectiveness of the qualified employee wellness program that is the basis of earning the credit provided in section 4 of this act and provide this information, subject to confidentiality for individual participants, to the department upon request.
     (5) The department must issue an annual report on the amount of credits claimed by businesses and nonprofit organizations under section 4 of this act and the effectiveness of the credit in encouraging effective employee wellness. The report is due by . . . of the calendar year immediately following the end of the year covered by the report.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.04 RCW to read as follows:
     (1)(a) A small business or a nonprofit organization may claim a credit against the tax otherwise due under this chapter for the costs of implementing a qualified employee wellness program.
     (b) The maximum lifetime credit that may be earned under this section for each small business or nonprofit organization is five thousand dollars.
     (c)(i) Small businesses or nonprofit organizations adopting a level 1 qualified employee wellness program may claim a credit of up to two thousand five hundred dollars for the costs associated with implementing the program.
     (ii) Small businesses or nonprofit organizations adopting a level 2 qualified employee wellness program may claim a credit of up to five thousand dollars for the costs associated with implementing the program.
     (2) Credit may not be claimed under this section for the cost incurred by the small businesses' or nonprofit organizations' own employees for organizing and managing the development and implementation of a qualified employee wellness program.
     (3) No application is necessary for this credit. Persons claiming a credit under this section must maintain records necessary to verify the eligibility for the credit under this section and the costs of implementing the qualified employee wellness program.
     (4) Credit under this section is earned when costs are incurred for implementing a qualified employee wellness program. Credit may be claimed for tax reporting periods due on or after the credit is earned. Credit under this section may be carried over until used. Refunds may not be granted in the place of a credit. No credit may be earned under this section for costs incurred before the effective date of this act.
     (5) Credits under this section may only be claimed on returns filed with the department of revenue in an electronic format as provided or approved by the department. However, the department may waive the electronic filing requirement in this subsection for good cause shown.
     (6) To assist the department of health in completing the annual reports required in section 3 of this act, the department of revenue must annually provide the department of health with statistics on the amount of credit claimed under this section and the number of persons claiming the credit. This subsection does not allow the disclosure of return or tax information protected from disclosure under RCW 82.32.330.      
     (7) Unless the context clearly requires otherwise, the definitions in section 2 of this act apply to this section.

NEW SECTION.  Sec. 5   Sections 2 and 3 of this act constitute a new chapter in Title 70 RCW.

NEW SECTION.  Sec. 6   This act takes effect October 1, 2009.