HOUSE BILL REPORT

ESB 5536

As Amended by the House

BYSenators McCaslin, DeJarnatt, McDonald, Bailey, Gaspard, Wojahn, West, Rasmussen, Warnke, Nelson, Vognild, Johnson, Kreidler, Pullen, Moore, Thorsness, Smith, Hansen, Conner, Saling, Sellar, Madsen, Talmadge, Fleming, Smitherman, Bender, Owen, McMullen, Sutherland and Bauer

Revising provisions for the state employees' benefits board.

House Committe on State Government

Majority Report:  Do pass with amendments.  (9)

      Signed by Representatives R. Fisher, Chair; Anderson, Vice Chair; McLean, Ranking Republican Member; Hankins, R. King, Morris, O'Brien, Rector and Sayan.

House Staff:Barbara McLain (786-7135)

AS PASSED HOUSE APRIL 6, 1989

BACKGROUND:

Prior to October 1, 1988, plans for the provision of health care and other forms of insurance benefits to state employees were designed by the State Employees' Insurance Board (SEIB).

The SEIB was composed of 10 members:  the Governor, a member each of the House and Senate, the Director of Personnel, an administrative representative of higher education and two faculty representatives, two representatives of certified employee associations and unions, and a retired person covered by a program under the jurisdiction of the board.

As of October 1, 1988, the functions of the SEIB were transferred to the State Health Care Authority.  Design and approval of benefits plans now fall to the State Employees' Benefits Board (SEBB) created within the authority.

The SEBB is composed of seven members:  the Administrator of the Health Care Authority, three representatives of state employees (one representing a certified employee association and one a certified employee union), and three members with experience in health benefit management and cost containment.

SUMMARY:

One of the state employee representatives on the State Employees' Benefits Board is to be a retired person who is covered by a program under the jurisdiction of the board, and who represents an organized group of retired public employees.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Gus Schwartz, Retired Public Employees Council; and Mark Brown, Washington Federation of State Employees.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    When SEIB was revamped last year, the retiree position on the board was inadvertently omitted.  Retirees make up a large portion of those impacted by the SEBB and they need a spokesperson and an advocate.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 96; Excused 2

Excused:    Representatives Sayan and Mr. Speaker