Providing Additional Revenues for Public Safety (SB 6573/HB 2962)

Introduced at the request of the Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Plan 2 Retirement Board, these bills as introduced:

Direct the transfer of the lesser of 50 million dollars or one-third of the prior fiscal year’s increase in state general fund revenue, when that increase exceeds 1% over the prior year’s collections, to a newly created local public safety enhancement account.
50% of the new funds will go to the LEOFF Plan 2 system benefits improvement account. These funds will not be recognized by the state actuary until directed to do so by the LEOFF 2 Board for the purposes of funding the member, employer and state costs of financing a new LEOFF 2 benefit enhancement not defined in the bill.
Currently, the LEOFF 2 Board may advance benefit enhancements simply by placing the benefit before the Legislature. If the Legislature does not prohibit the new benefit, the benefit is deemed approved. This structure was set by Initiative 790 in 2002. The LEOFF 2 Board is expected to advance a significant benefit enhancement within the next few years. We do not know the details of benefit enhancement. The intention of the proponents of this legislation is to create a fund to fully finance a new benefit.
The remaining 50% of the new funds will be distributed among all jurisdictions with law enforcement officer and fire fighter plan 2 members based on the number of plan 2 members each jurisdiction has on January 1 of the prior year, divided by the total number of plan 2 members in the system. Hence, cities, counties and fire districts will receive a direct state allocation.
The local jurisdiction distribution may be used for criminal justice purposes including benefit to civil justice; domestic violence programs; assistance to families with at-risk or runaway youth and local public safety.

We understand these bills may be amended to begin a phasing of the transfers from the general fund to the newly created public safety benefit enhancement account in 2009 at a reduced amount of $1 million, doubling each year until the annual amount of $50 million is reached in 2015.

SB 6573 is scheduled for public hearing before the Senate Ways and Means Committee on Tuesday, February 5 at 3:30 pm and the companion bill, HB 2962, was referred to the House Appropriations Committee on January 18.

The AWC Board Legislative Steering Committee recently reviewed these bills and has decided to support the legislation given our desires for additional public safety money and state payment of the new LEOFF 2 benefit. We will seek amendments to ensure an allocation of the new money to cities that contract for law enforcement services.

Workplace Bullying (SB 6622/HB2142)

This bill would provide legal redress for an employee who has been subject to workplace bullying, abuse or harassment. The legislation would impose penalties, not to exceed $25,000, if an employer is found to have committed an unlawful employment practice, but the employer may not be liable for punitive damages. HB 2142 was heard by the House Committee on Commerce and Labor at 1:30 pm, Friday, February 1. As originally drafted the bill applied to all employers – public and private. We understand the bill may be amended to apply only to state employees.

Family Leave Insurance (HB 2665 /SB 6280) (HB 3305)

E2SSB 5659, passed last year, created a new insurance program to give new parents $250 a week for up to five weeks while they take time off from work to bond with a new born or newly adopted child. This law takes effect in October 2009. The bill created a 13-member joint task force to study the program and make various recommendations to the Legislature. HB 2665 and SB 6280 implement those recommendations.

SB 6280 is scheduled for executive session by the Senate Committee on Labor, Commerce, Research and Development at 10 am on February 4.

HB 3305 introduced and heard by the House Commerce and Labor Committee on January 29, implements the family leave insurance program operation as recommended by the task force but remains silent on any mechanism for funding the operations or benefit payments. We hear payment of the benefit may be a decision advanced to the state voters.

Defining the Term "Employ" for Minimum Wage Purposes (HB 3294/SB 6867)

These bills amend RCW 49.46.010 to define that "work" does not mean or include the use of an employer’s vehicle for travel by an employee for commuting when the vehicle is used within the normal commuting area for the employer’s business and is subject to an agreement with the employee. HB 3294 was referred to House Commerce and Labor Committee on January 29.

SB 6867, the companion bill, is scheduled for public hearing by the Senate Committee on Labor, Commerce, Research and Development on Tuesday, February 5 at 5:30 pm. These bills are likely in response to the Washington State Supreme Court Decision in Stevens v. Brink’s Home Security, Inc. (October 18, 2007) which found that travel time from home to the first job site and from the last job site to home was compensable.

AWC is an active participant in the various discussions regarding this Supreme Court decision given the potential impacts on local governments (See Personnel News, December 2007). We will keep you updated.

Fire Fighters’ Survivors (HB3020/SB6650)

These bills were introduced at the request of the Select Committee on Pension Policy. They would impact jurisdictions with pre-LEOFF fire fighters and allow any retired firefighter married to a spouse ineligible for survivor benefits to choose an actuarially equivalent benefit that pays a reduced retirement allowance to the surviving spouse. The bills also remove the language causing survivors’ monthly pension benefits to cease upon remarriage. HB 3020 passed out of the House Committee on Appropriations on Monday, January 28 and SB 6650 was heard by the Senate Ways and Means Committee on Thursday, January 31.

If you have pre-LEOFF fire fighters please review these bills and let us know if you have any concerns. Please contact Luann Daniels at luannd@awcnet.org or 800-562-8981 ext 135.

Defining Basic Salary (SB 6635/HB 3049)

Introduced at the request of the Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Plan 2 Retirement Board, these bills seek to expand the definition of basic salary for retirement computation purposes to include employer contributions to an IRS 457 account for the benefit of members of the LEOFF Plan 2 retirement system.

Currently, payments made to 457 plans on behalf of members may be included as basic salary in LEOFF Plan 2 if the employer makes the payments as a condition of the member’s employment, and not based upon the member performing some action besides rendering service. For example, consider the situation when employers offer payments to match contributions made by the employee. Because the employer payments are contingent upon the member contributing, and not upon the member rendering services, current law excludes the employer contribution from basic salary.

These bills, which would become effective July 1, 2012, are expected to result in increased employer and member contribution rates but we have not yet seen the fiscal note. SB 6635 is scheduled for public hearing before the Senate Ways & Means Committee at 3:30 pm on Tuesday, February 5 and the companion HB 3049 was referred to the House Appropriations Committee on January 21.

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