READ FIRST TIME 03/01/13.   

     AN ACT Relating to employee wellness programs; amending RCW 47.64.270 and 41.05.540; reenacting and amending RCW 41.80.020; and adding a new section to chapter 41.05 RCW.

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

Sec. 1   RCW 41.80.020 and 2011 1st sp.s. c 50 s 939 and 2011 1st sp.s. c 43 s 445 are each reenacted and amended to read as follows:
     (1) Except as otherwise provided in this chapter, the matters subject to bargaining include wages, hours, and other terms and conditions of employment, and the negotiation of any question arising under a collective bargaining agreement.
     (2) The employer is not required to bargain over matters pertaining to:
     (a) Health care benefits or other employee insurance benefits, except as required in subsection (3) of this section;
     (b) Any retirement system or retirement benefit; or
     (c) Rules of the human resources director, the director of enterprise services, or the Washington personnel resources board adopted under RCW 41.06.157.
     (3) Matters subject to bargaining include the number of names to be certified for vacancies, promotional preferences, and ((the dollar amount expended on behalf of each employee for health care benefits)) the employer's percentage contribution of the total weighted average of the projected health care premium for each employee eligible for insurance. The projected health care premium is the weighted average across all health care benefit plans and tiers. However, except as provided otherwise in this subsection for institutions of higher education, negotiations regarding the number of names to be certified for vacancies, promotional preferences, and the ((dollar amount expended on behalf of each employee for health care benefits)) employer's percentage contribution of the total weighted average of the projected health care premium for each employee eligible for insurance shall be conducted between the employer and one coalition of all the exclusive bargaining representatives subject to this chapter. The exclusive bargaining representatives for employees that are subject to chapter 47.64 RCW shall bargain the ((dollar amount expended on behalf of each employee for health care benefits)) employer's percentage contribution of the total weighted average of the projected health care premium for each employee eligible for insurance with the employer as part of the coalition under this subsection. Any such provision agreed to by the employer and the coalition shall be included in all master collective bargaining agreements negotiated by the parties. For institutions of higher education, promotional preferences and the number of names to be certified for vacancies shall be bargained under the provisions of RCW 41.80.010(4). For agreements covering the ((2011-2013)) 2013-2015 fiscal biennium, any agreement between the employer and the coalition regarding ((the dollar amount expended on behalf of each employee for)) health care benefits is a separate agreement and shall not be included in the master collective bargaining agreements negotiated by the parties.
     (4) The employer and the exclusive bargaining representative shall not agree to any proposal that would prevent the implementation of approved affirmative action plans or that would be inconsistent with the comparable worth agreement that provided the basis for the salary changes implemented beginning with the 1983-1985 biennium to achieve comparable worth.
     (5) The employer and the exclusive bargaining representative shall not bargain over matters pertaining to management rights established in RCW 41.80.040.
     (6) Except as otherwise provided in this chapter, if a conflict exists between an executive order, administrative rule, or agency policy relating to wages, hours, and terms and conditions of employment and a collective bargaining agreement negotiated under this chapter, the collective bargaining agreement shall prevail. A provision of a collective bargaining agreement that conflicts with the terms of a statute is invalid and unenforceable.
     (7) This section does not prohibit bargaining that affects contracts authorized by RCW 41.06.142.

Sec. 2   RCW 47.64.270 and 2011 c 367 s 713 are each amended to read as follows:
     (1) The employer and one coalition of all the exclusive bargaining representatives subject to this chapter and chapter 41.80 RCW shall conduct negotiations regarding the ((dollar amount expended on behalf of each employee for health care benefits)) employer's percentage contribution of the total weighted average of the projected health care premium for each employee eligible for insurance.
     (2) Absent a collective bargaining agreement to the contrary, the department of transportation shall provide contributions to insurance and health care plans for ferry system employees and dependents, as determined by the state health care authority, under chapter 41.05 RCW.
     (3) The employer and employee organizations may collectively bargain for insurance plans other than health care benefits, and employer contributions may exceed that of other state agencies as provided in RCW 41.05.050.
     (4) For the ((2011-2013)) 2013-2015 fiscal biennium, a collective bargaining agreement related to employee health care benefits negotiated between the employer and coalition pursuant to RCW 41.80.020(3) ((regarding the dollar amount expended on behalf of each employee)) must be a separate agreement for which the governor may request funds necessary to implement the agreement. ((If such an agreement is negotiated and funded by the legislature, this agreement will supersede any terms and conditions of an expired 2009-2011 biennial collective bargaining agreement under this chapter regarding health care benefits.))

NEW SECTION.  Sec. 3   A new section is added to chapter 41.05 RCW to read as follows:
     (1) Beginning no later than January 1, 2014, all state employee health care benefit plans under this chapter must be offered in conjunction with an employee wellness program developed pursuant to RCW 41.05.540. The program must include premium reductions, premium increases, or other financial incentives to promote employee achievement of identified wellness targets or goals.
     (2) The governor shall appoint an eight member health and wellness advisory committee to consult with and advise the director regarding the employee wellness program. Three members must be representatives of state employee labor organizations, one member must be a nonrepresented state employee, and four members must be representatives of state agencies or higher education institutions. The members shall serve at the pleasure of the governor. The director shall convene the advisory committee not less than four times a year to discuss the employee wellness program design and experience, and to solicit recommendations from the committee.
     (3) For employees covered by collective bargaining agreements for the period of July 1, 2011, through June 30, 2013, the employee wellness program must be offered at the end of the time period established in RCW 41.80.010(7).

Sec. 4   RCW 41.05.540 and 2007 c 259 s 40 are each amended to read as follows:
     (1) The health care authority, in coordination with the ((department of health,)) health plans participating in public employees' benefits board programs((,)) and the ((University of Washington's center for health promotion, shall establish)) state agencies shall expand and maintain a state employee health and wellness program focused on reducing the health risks and improving the health status of state employees((,)) and dependents((, and retirees)) enrolled in the public employees' benefits board. The program shall use public and private sector best practices to achieve goals of measurable health outcomes, measurable productivity improvements, positive impact on the cost of medical care, and positive return on investment. The program shall establish standards for health promotion and disease prevention activities, and develop a mechanism to update standards as evidence-based research brings new information and best practices forward.
     (2) The state employee health and wellness program shall:
     (a) Provide technical assistance and other services as needed to wellness staff in all state agencies and institutions of higher education by; building on the success with the worksite wellness demonstrations and expanding the Washington worksite wellness program;
     (b) Develop effective communication tools and ongoing training for wellness staff;
     (c) ((Contract)) Complete consolidated contracting with outside vendors for ((evaluation of program goals;
     (d) Strongly encourage the widespread completion of online health assessment tools for all state employees, dependents, and retirees. The health assessment tool must be voluntary and confidential. Health assessment data and claims data shall be used to:
     (i) Engage state agencies and institutions of higher education in providing evidence-based programs targeted at reducing identified health risks;
     (ii) Guide contracting with third-party vendors to implement behavior change tools for targeted high-risk populations; and
     (iii) Guide the benefit structure for state employees, dependents, and retirees to include covered services and medications known to manage and reduce health risks)) worksite wellness activities such as, but not limited to, on-site flu vaccination clinics, mobile mammography, healthy weight control programs, chronic disease management courses, and other evidence-based programs that support employee health and wellness;
     (d) Develop and refine common core data elements for health plans and agency worksites to assist with comparable measurement and assessment of outcomes;
     (e) Gather and monitor data from agencies on the worksite wellness activities and outcomes including impacts on productivity and employee wellness, and complete an analysis and summary of the outcomes annually;
     (f) Coordinate with the public employees benefits board to design a benefit package that more strongly encourages the use of high-value services and member engagement in health assessment and wellness programs. A benefit design must incorporate a financial incentive for completing a health assessment and participating in health activities as an integral structural component in the benefit design rather than as a freestanding assessment tool;
     (g) Ensure the design of the health and wellness program and benefit structure complement the development of chronic care management and medical home models consistent with the requirements of RCW 41.05.023 and 41.05.670.
     (3) ((The health care authority shall report to the legislature in December 2008 and December 2010 on outcome goals for the employee health program.)) To expand the employee health and wellness program and build a strategic link with the benefit design and worksite supports, the health care authority must engage in collaborative discussions with enrollees in the public employees benefits board program, the various employee unions representing employees, and state agencies. Consolidated recommendations from all participants on the benefit design and incentive structure must be shared with the board for consideration.