1721-S AMS HHS S3041.1

SHB 1721 - S COMM AMD

By Committee on Health & Human Services

    Strike everything after the enacting clause and insert the following:

    "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."

SHB 1721 - S COMM AMD

By Committee on Health & Human Services

    On page 1, line 2 of the title, after "trusts;" strike the remainder of the title and insert "amending RCW 48.62.121; adding a new section to chapter 48.62 RCW; and creating a new section."

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