SENATE BILL REPORT
SB 5275
As of January 19, 2023
Title: An act relating to expanding access to benefits provided by the school employees' benefits board.
Brief Description: Expanding access to benefits provided by the school employees' benefits board.
Sponsors: Senators Robinson, Hunt, Keiser, Lovick, Nobles, Randall, Wellman and Wilson, C..
Brief History:
Committee Activity: Ways & Means: 1/19/23.
Brief Summary of Bill
  • Allows tribal compact schools, employee organizations representing school employees, and school board directors the option of providing health care through the School Employees' Benefits Board. 
SENATE COMMITTEE ON WAYS & MEANS
Staff: Amanda Cecil (786-7460)
Background:

Health care benefits for eligible school employees are provided by the School Employees' Benefits Board (SEBB).  Eligible state employees are provided healthcare benefits through the Public Employees' Benefits Board (PEBB).  Local governments, tribal governments, and employee organizations representing state employees have the option of providing benefits through PEBB.  Employers providing healthcare through PEBB determine the terms of employee and dependent eligibility and must pay premiums set by the Health Care Authority (HCA). 

 

The federal Employee Retirement Income Security Act of 1974 (ERISA) sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.  In general, ERISA does not cover group health plans established or maintained by governmental entities for their employees.  The United States Department of Labor has issued multiple advisory options stating that participation by a negligible number of private sector employees will not adversely affect a plan's status as a governmental plan. 
Summary of Bill:

Tribal compact schools, employee organizations representing school employees, and school board directors may enter into a contract with the HCA to provide health care benefits to their employees through SEBB.  Employers opting in to coverage under SEBB may determine the terms of employee and dependent eligibility and must pay premiums set by HCA.   

 

HCA will approve or deny applications and will monitor federal guidelines on negligible participation by employees who are not substantially performing essential governmental functions and may limit enrollment for employer groups, if it becomes necessary. 
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:

PRO: This bill will allow education related employees to join SEBB if they want.


OTHER: This bill will address tribal schools, employee unions, and elected school board members. Request for clearer language authorizing access to retiree benefits and relocating school board members to a separate section of the statutory code because they aren’t employees and they don’t have access to LTD or an income.
Persons Testifying: PRO: Senator June Robinson, Prime Sponsor.
OTHER: David Iseminger, WA State Health Care Authority.
Persons Signed In To Testify But Not Testifying: No one.