Transcript Highlights:

• We have 10,906 Medicare retirees, and we also have retirees who aren't eligible for Medicare, early retirees
• We have 10,906 Medicare retirees, and we also have retirees who aren't eligible for Medicare, early retirees
• We have 10,906 Medicare retirees, and we also have retirees who aren't eligible for Medicare, early retirees
• :26.719><c> early</c><01:42:27.040><c> retirees</c> for Medicare early retirees for Medicare early retirees
• </c> 4759 retirees who are Medicare retirees 4759 retirees who are Medicare retirees who<01:43:59.080

Summary: The committee held a work session on the Department of Business and Economic Affairs budget, with testimony from Chase Hegman and Kathy Frederickson. Early discussion focused on staffing and vacancies, including a senior planner position tied to FEMA requirements, a program assistant funded by federal ORID dollars, a program specialist being considered for reclassification, two Housing Champions positions to be funded in the next biennium, and temporary welcome center positions. Members also reviewed the commissioner’s office, indirect cost recoveries tied to federal program administration, and the structure and staffing of rest areas and welcome centers, including the Turnpike-funded locations and seasonal staffing patterns. Members then moved through economic development and federal grant-related accounts. Hegman explained that a large share of the agency’s funding is federal, with some programs requiring state match, including the Apex Accelerator, which supports government contracting assistance for businesses. He described Apex as a small team that helps businesses with DOD and other contracting opportunities through webinars, matchmaking, and one-on-one support. The Office of Workforce Opportunity was described as largely federally funded through Commerce-related workforce programs and subrecipients, with some general fund support for agency-wide needs. The Northern Borders Regional Commission dues and capacity grant were also discussed, with officials explaining the state’s required contribution and the federal funds used to administer the program. A major point of discussion was the proposed reduction to the Small Business Development Center, which officials said provides one-on-one technical assistance to new and small businesses and has a strong return on investment. Members questioned the cut, the federal funding sources, and whether there was a waiting list for services; officials said they would provide more detail on matching requirements and funding. The committee also reviewed travel and tourism accounts, including the joint promotional grant program and tourism advertising funds, both of which are proposed to increase. Officials said the tourism marketing formula is based on a percentage of meals and rooms tax revenue and argued that the spending generates significant visitor spending and tax revenue, citing an outside ROI study and examples of advertising in test markets. No votes were taken during the work session.

Transcript Highlights:

• There are basically 67, a little over, almost 68,000 retirees in both PERS and TERS 1 plans that, retirees
• I can't believe you need $1.5 billion to serve 6,154 retirees.
• I'm a LEOFF 1 retiree from the King County Sheriff's Office.
• That's why we are fighting for a decent and fair COLA for PERS 1 retirees.
• It's also represented by active members and retirees.

Committee: Joint Select Committee on Pension Policy

Summary: The committee approved the July minutes and then received an informational presentation from the Office of the State Actuary on the financial condition of the state retirement systems. The actuary reported that employer contribution rates are generally declining, helped by strong investment returns and reduced funding for PERS 1 and TERS 1, while funded ratios have continued to improve; on a combined basis the plans were reported at 100% funded in 2024, with open plans above 95% and legacy plans varying by system. The presentation also reviewed projected rates and funded ratios under current assumptions, noted that pension costs are taking a smaller share of the state general fund, and discussed risks from investment volatility, policy changes, and demographic experience. Committee members asked about savings from lower rates, deferred asset smoothing, and how Washington compares with other states. The committee then considered the state actuary’s recommendation on long-term economic assumptions and adopted all four recommendations by roll call votes: inflation at 3.0%, general salary growth at 3.5%, membership growth for Plan 1 funding at 1.0%, and investment rate of return at 7.25%. The actuaries explained that the inflation and salary growth increases were driven largely by higher long-term inflation expectations, while the investment return recommendation matched the current statutory assumption. Members discussed the timing of the Pension Funding Council’s decision, the effect of tariffs and inflation uncertainty, and how assumption changes would affect future contribution rates and budgets, particularly for open plans. Staff then gave an update on the LEOFF 1 study, explaining the difference between being “ahead of schedule” and truly overfunded, and summarizing responses received from DRS, the State Treasurer, and the State Investment Board on the merger and restatement proposals. DRS said both bills could be administered, though the merger bill’s COLA banking provision would be challenging until its new system is ready; the Treasurer urged caution, especially about the restatement bill and the use of one-time funds; and the Investment Board said removing assets from the trust would have some transaction costs but likely small impacts. The committee discussed whether to invite additional agencies and local government groups to testify, and staff said more responses, including from Ice Miller and the State Actuary, were expected for the October meeting. Finally, the committee heard a briefing on PERS 1/TERS 1 COLA policy and related bills from the last session. Staff reviewed the committee’s prior ongoing COLA recommendation, the SCPP-endorsed bills that would have created a one-time 3% COLA followed by an ongoing COLA, the Senate merger bill, and a separate ad hoc COLA bill. Public testimony largely supported Plan 1 COLAs and stable contribution rates, while several speakers urged caution about transferring LEOFF 1 surplus assets or merging legacy plans, and others raised concerns about climate risk and the pension fund’s investments. No further committee action was taken on the COLA item during this portion of the meeting.

Transcript Highlights:

• little bit more padding, a little more cushion, and we provide a little more assurance for these retirees
• little bit more padding, a little more cushion, and we provide a little more assurance for these retirees
• And these are the ones that are going to get stuck with taking care of these Left One retirees.
• down. taking care of these left one retirees.
• The only way these retirees will be able to...

Bills: SB6061 , SB6234 , SB6176 , SB6335 , SB6047 , HB2235 , HB2464 , HB2619 , HB1376 , SB5808 , SB5949 , HB1347 , HB1759 , HB1983 , HB2120 , HB2264 , HB2338 , HB2385 , HB2495 , HB2521 , HB2604 , HB2610 , HB2675 , HB2426 , SB6061 , SB6234 , SB6176 , SB6335 , SB6047 , HB2235 , HB2464 , HB2619 , HB1376 , HB1796 , HB2091 , HB2249 , HB2353 , HB2431 , SB5808 , SB5949 , HB2124 , HB2104 , HB2624 , HB2510 , HB1347 , HB1759 , HB1983 , HB2120 , HB2264 , HB2338 , HB2385 , HB2436 , HB2495 , HB2521 , HB2604 , HB2610 , HB2675

Keywords: tourism, self-supported assessment, funding, statewide promotion, economic development, sewage, grinder pumps, residential buildings, regulation, construction, vehicle registration, enforcement, renewal, transportation, state law, state commission, infrastructure, traffic safety, responsibilities, state capital projects

Transcript Highlights:

• I'm a TRS 1 retiree.
• We TRS 1 and PERS 1 retirees desperately need relief.
• TRS 1 and PERS 1 retirees desperately need relief.
• So two-thirds of Plan 1 retirees receive under $30,000 per year.
• So two-thirds of Plan 1 retirees receive under $30,000 per year.

Bills: HB2689 , SB5832 , SB5922 , SB5944 , SB5988 , SB6151

Committee: House Appropriations

Keywords: Working Connections Child Care, child care subsidy, subsidized child care, Washington DCYF, Department of Children, Youth, and Families, low-income families, child care providers, licensed child care centers, family child care, market rate survey, subsidy rates, income eligibility, state median income, SNAP, Basic Food, collective bargaining, provider reimbursement, daily payment, half-day care, partial-day care

Transcript Highlights:

• Senate Bill 134 allows retirees to return to work that are part of the Oper system in six months instead
• Is it correct under this bill that a retiree could begin receiving retirement benefits and then return
• A retiree could begin receiving retirement benefits, then they can return to public employment only after
• You know, in this bill Or training new employees rather than rehiring retirees, or is it better since
• What we see is that as retirees retire, they have a lot of wealth of knowledge.

Bills: SB1778 , SB1570 , SB134 , SB1966 , SB1636 , SB1725 , SB1726 , SB259 , SB504 , SB592 , SB2030 , SB1572 , SB843 , SB1242 , SB1255 , SB1262 , SB1264 , SB1286 , SB1581 , SB1290 , SB1316 , SB1319 , SB1369 , SB1379 , SB1381 , SB1400 , SB1427 , SB1436 , SB1461 , SB1496 , SB1509 , SB1534 , SB1553 , SB904 , SB1592 , SB1645 , SB1684 , SB1767 , SB1772 , SB1813 , SB1894 , SB1928 , SB1946 , SB1980 , SB2040 , SB2060 , SB2061

Keywords: reading instruction, literacy, educational equity, intervention services, third grade retention, Strong Readers Act, child welfare, child safety, administrative transition, Department of Child Safety and Well-being, Oklahoma Commission on Children and Youth, juvenile justice, foster care, retirement, public employees, reemployment, benefit adjustment, Oklahoma Public Employees Retirement System, memorial highways, bridge designations

Transcript Highlights:

• I had one last year on an increase for retirees of the public school retirement system.
• And after understanding a little more about it, I just wanted to do something to get our retirees who
• So with recent increases in COLAs for active retirees, maybe I'll say inactive employees that are retired
• I think there are 3,400 PSRS retirees that are COLA capped, 800 PEERS retirees that are COLA capped right
• PSRS retirees that are COLA capped, 800 peers retirees that are COLA capped right now.

Committee: House Local Government, Elections and Pensions

Summary: The Committee on Pensions met without a quorum at first, then later returned to executive session and held several bill hearings. Representative Haley presented House Bill 295, which would allow PSRS retirees who have reached the 80% COLA cap to receive an additional 2% COLA in years when investment returns exceed the system’s assumed rate and CPI conditions are met. Haley and supporters from the Missouri Retired Teachers Association said the bill was narrowly targeted, non-cumulative, and protected by guardrails; committee members questioned whether it could affect funding stability. PSRS/PEERS counsel testified informally that the proposal would function like a one-time “13th paycheck,” would affect about 3,400 PSRS and 800 PEERS retirees, and would cost roughly $32 million for PSRS and under $1 million for PEERS, while emphasizing the systems’ smoothing policy and funded status. The committee then adopted a substitute and passed House Committee Substitute for House Bills 2884 and 1655 by a 12-0 vote. The substitute combined language dealing with St. Louis police retirement board quorum/appointment timing, public employee retirement system provisions, and public school retirement system board quorum/vote requirements, and it also added clarifying language so retirement systems could continue routine informational communications without using funds to support ballot measures. The committee next took up House Committee Substitute for House Bills 1762 and 2059, which would increase the income tax deduction for private retirement income and raise the income threshold for eligibility. Supporters argued it would provide parity with the earlier public-pension tax break and help retirees and self-employed taxpayers; opponents raised concerns about the fiscal impact and timing. The substitute passed 8-4. Representative Bromley then presented House Bill 2144, which would increase the PSRS death benefit from $5,000 to $10,000. He said the current amount no longer covers funeral costs and that the change would help older retirees’ families. MRTA supported the concept but urged caution about system solvency and suggested looking at PEERS as well; PSRS/PEERS counsel testified that the benefit applies to all vested PSRS members, would cost about $137.8 million in actuarial liability, and would reduce the trust fund by about 0.19%. An EMPERS representative confirmed that system also has a $5,000 death benefit and uses similar third-party death-notification services. Finally, Representative Mayhew briefly presented House Bill 2205, which would exempt all public and private retirement income from Missouri income tax; no one testified in support or opposition, and the hearing adjourned after no further discussion.

Transcript Highlights:

• circumstances in which retirees will spend them.
• Barbara Carey, PERS 3 retiree.
• I'm a Left 1 retiree from the King County Sheriff's Office.
• I'm a LEOFF 1 retiree, police officer.
• I'm a PERS 1 retiree for exactly one year and 17 days.

Committee: Joint Select Committee on Pension Policy

Summary: The Select Committee on Pension Policy met on June 17, 2025, with Vice Chair Fitzgibbon presiding initially in Chair Benke’s absence. The committee approved the May minutes and then held its annual election of officers. Representative Travis Couture was elected chair, Senator Steve Conway was elected vice chair, and the executive committee seats were filled by Member Yistramski for actives, Bev Hermanson for retirees, and Anthony Murrietta for employers. The committee also recognized Pat Thompson for her long service and upcoming departure from the committee. Staff then briefed the committee on Engrossed Substitute Senate Bill 5357, which changed pension funding by increasing the assumed long-term investment return from 7% to 7.25%, lowering normal cost contribution rates, suspending Plan 1 UAAL contributions for four years, and extending the amortization period for Plan 1 benefit improvements from 10 to 15 years. The Office of the State Actuary explained that the bill produces significant short-term budget savings but increases the risk of higher contribution rates later if investment experience underperforms. Members asked about the suspension of Plan 1 UAAL rates and the implications for future rates and funding risk. The committee also received an introduction to the required study of proposed LEOFF 1 merger and termination legislation under the 2025-27 operating budget proviso, covering Substitute Senate Bill 5085 and Substitute House Bill 2034. Staff outlined the study plan, including legal, tax, actuarial, administrative, and pension policy analysis, with input expected from the Attorney General’s Office, Ice Miller LLP, the Office of the State Actuary, DRS, the State Investment Board, and the State Treasurer. Members discussed the unusual issue of an overfunded plan and possible IRS implications. Public testimony was split, with some speakers supporting a merger as a way to create room for a Plan 1 COLA and others opposing any diversion of LEOFF 1 assets, citing legal, tax, and member-rights concerns. The meeting adjourned before the scheduled executive session.

Transcript Highlights:

• </c> and non-Medare retiree hospital medical. and non-Medare retiree hospital medical.
• You look at retirees, and we gave them a 4% retiree cola.
• :59.039><c> them</c><00:29:59.600><c> a</c><00:29:59.840><c> 4%</c><00:30:00.399><c> retiree</c> retirees
• and we gave them a 4% retiree retirees and we gave them a 4% retiree cola.<00:30:01.760><c> Then</c>
• <c> colas,</c><00:31:03.919><c> in</c> But doing colas, retiree colas, in But doing colas, retiree colas

Transcript Highlights:

• salary increases and, at the same time, requested your continued support of prioritizing COLAs for retirees
• A COLA would go into effect for Plan 1 retirees unless, in the budget, the budget explicitly said a COLA
• Bev, I've talked a little bit with the retirees about this. They're kind of open to all options.
• And I think, you know, it's up to that group for retirees because we're not going to... ...pass a bill
• Then the retirees got nothing.

Committee: Joint Select Committee on Pension Policy

Summary: The Executive Committee of the State Committee on Pension Policy approved the June minutes and received updates from staff and counsel. The attorney reported on two class action matters: the Fowler/Probst Fowler teacher interest case, where a court ordered the state to pay $118 million and the state has appealed and sought a stay, and the Dawson case challenging last year’s HB 2034 related to the LEOFF 1 plan, where the complaint was amended and the state plans to move to dismiss. The actuary also provided a brief update on asset smoothing and offered to provide additional education on the topic. The committee then focused on interim work planning and the September agenda. Members discussed an ad hoc COLA for PERS and TRS Plan 1 retirees, with staff explaining options for making a COLA part of the base budget or otherwise structuring it. The committee agreed to move forward with a bill for a Plan 1 ad hoc COLA and to have it considered in October, with a request for fiscal analysis. The committee also heard from a Washington State Patrol Troopers Association representative about survivor medical benefits, and staff said a cost estimate could be prepared for October if the proposal included retroactive coverage. For September, the committee set the agenda to include PERS eligibility for animal control officers, a LEOFF 1 medical study update with possible action, and the Plan 1 ad hoc COLA item. Staff said the work plan would also add the ongoing Plan 1 COLA and survivor medical topics to October, along with preliminary 2027 meeting dates. The meeting ended with informal approval of the September agenda and adjournment.

Transcript Highlights:

• Our retirees deserve to permanently.
• </c> to receive health benefits as a retiree to receive health benefits as a retiree from<01:16:36.560
• </c> reasonable cola for group two retirees reasonable cola for group two retirees will<01:41:05.840>
• > under</c><01:46:54.159><c> that</c> a year. most retirees are under that a year. most retirees are
• </c> change for a retiree. change for a retiree.

Committee: House Executive Departments and Administration

Transcript Highlights:

• Today, many Texans, including public employees and retirees, are choosing a health care model called
• If a public employee or retiree pays that direct fee out of pocket under a state health plan, it does
• The committee substitute to House Bill 5632 improves flexibility and protections for ERS retirees by
• After retirement, while accounting for contemporary spousal dynamics, current law requires a retiree
• And gives retirees appropriate control over their own retirement benefits.

Bills: HB3015 , HB3521 , HB5632 , HJR182 , SJR57

Committee: House Pensions, Investments & Financial Services

Keywords: healthcare, direct primary care, insurance deductibles, Texas Health Benefit Plans, telemedicine, police retirement, disability pension, municipalities, law enforcement, retirement benefits, retirement, beneficiary, Employees Retirement System of Texas, divorce decree, beneficiary designation, Veterans' Land Board, general obligation bonds, constitutional amendment, veterans, housing assistance

Transcript Highlights:

• , um, but nothing a couple new retirees, um, but nothing really<00:10:52.399><c> dramatic,</c><00:10:
• </c> to hire a limited number of retirees to hire a limited number of retirees into<00:58:06.079><c>
• </c><00:58:25.359><c> So</c> retirees per school district to 10.
• Uh and then lastly, uh House retiree.
• </c><00:59:14.960><c> under</c> earn as a as a returning retiree under earn as a as a returning retiree

Summary: The meeting opened with the Pledge of Allegiance and prayer, followed by a roll call confirming a quorum and approval of the prior minutes. A special guest, Dave Eager, was welcomed before the committee moved to presentations from retirement system officials. Bo Craycraft, executive director of the Judicial Form Retirement System, gave a quarterly update on investment performance, asset allocation, and cash flow. He said the plans had held up well amid market volatility, with fiscal year-to-date returns above benchmark and long-term returns remaining strong. He explained that the plans are targeted to a 70% equity/30% fixed-income allocation, that some cash is being held for cash-flow management, and that negative cash flow is expected because of funding and contribution levels. He also said Senate Bill 183, dealing with proxy voting and economic analysis for certain votes, was not expected to materially affect the plans because of their small number of holdings and Bear Trust’s long-term investment approach. Ryan Barrow and Erin Surrod then presented for the Kentucky Pension Authority. They reported positive quarterly performance across the retirement and insurance funds, though results varied by period and remained tied to broader market conditions. They said recent asset-allocation changes had been completed and the funds were now within target ranges. On cash flow, they noted some plans remained negative or near zero, with one plan benefiting from a large appropriation. In the legislative update, they described House Bill 30 as codifying an exclusion from pension-spiking calculations for across-the-board raises, and Senate Bill 10 as increasing retiree health insurance subsidies and changing employee health insurance contribution rules for certain CERS members beginning in 2026. They also said Senate Bill 183 would likely have limited impact, though the agency would review voting policies and incorporate any required economic-analysis procedures.

Transcript Highlights:

• So between 2010 and 2022, California lost over 24,000 military retirees.
• Those second careers through second careers, a retireeers, a retireeer household can control. opportunities
• Those second careers through second careers, a retireeers, a retireeer household can control. ...through
• As an Army retiree, this is beneficial to my family and federal veterans.
• I'm a 26-year military retiree.

Committee: Senate Revenue and Taxation

Summary: The committee heard several tax and revenue measures. SB 1277, by Senator Grove, proposed a California Cost of Living Tax Credit modeled on the 2022 middle-class tax refund to provide direct relief to low- and middle-income Californians facing high housing, gas, energy, and general living costs. Supporters said it would help working families, farmworkers, teachers, and others; opponents, including the California Tax Reform Association and the California Teachers Association, argued California already has a progressive tax system, that refundable credits are costly and can be difficult to administer, and that the bill would reduce General Fund revenues and Proposition 98 funding. The bill was held on call after extensive debate and no motion was made at that time. The committee then heard SB 1287, which would create a targeted tax credit to encourage private investment in short-line railroad infrastructure. The author and rail industry witnesses said the credit would support safety, bridge and track upgrades, emissions reductions, freight efficiency, and rural and agricultural supply chains, while opponents argued a direct grant program would be preferable to a tax credit. The bill was accepted with committee amendments and placed on call after a motion to move it forward. SB 1407 would exempt military retirement pay and surviving spouse benefits from state income tax, with the author, State Treasurer Fiona Ma, and veterans’ groups arguing it would help retain veterans in California, support second careers, and keep federal retirement dollars in the state. The California Teachers Association and California Tax Reform Association opposed it as another tax expenditure that would reduce General Fund revenue. The committee approved the bill on a due pass as amended vote to the Senate Committee on Military and Veterans Affairs, with several members voting aye and others not voting, and the bill was placed on call. The committee also heard SB 1349, which directs the Legislative Analyst’s Office to review major tax expenditures and evaluate their costs, beneficiaries, and effectiveness. Supporters, including CTA, AFSCME, cities, counties, and many teachers, said the state needs more accountability for roughly $94 billion in annual tax expenditures and their impact on schools and the budget. The bill was moved with committee amendments and placed on call. Additional measures discussed included SB 1078, authorizing Santa Cruz County to seek voter approval for a temporary local sales tax increase to fund health care and safety-net services; SB 1120, extending the California Competes Tax Credit through 2035 and making it refundable for certain strategic industries; and SB 1275, which would convert the state sales tax on vehicle purchases into a deductible vehicle license fee to reduce Californians’ federal tax burden. SB 1120 and SB 1275 both received support from business and industry witnesses, with no opposition testimony noted, and were moved on call or with a due pass as amended vote as the committee continued through the file.

Transcript Highlights:

• State retirees...
• State retirees will increase from $280 to $390, and the public school retirees will increase from $200
• Keep in mind that this is a 90-10 cost share between the state and the retiree.
• So the members for state retirees would pay $39 a month instead of $28 a month, and public school retirees
• ... $39 a month instead of $28 a month, and public school retirees will pay $35 a month instead of $20

Committee: All ALC-STATE INSURANCE PROGRAMS OVERSIGHT SUBCOMMITTEE

Summary: The committee reviewed several State Board of Finance actions related to employee and retiree health benefits, insurance contracts, and reserve funding. Members first considered a rule implementing Act 956 of 2025 requiring vendors working with the Employee Benefits Division to have their data validated by a third-party actuary; it was reviewed without objection. The committee then approved multiple pharmacy and medical formulary recommendations for June, July, and August, including shifting to lower-cost generics, excluding new-to-market drugs pending more evidence or better pricing, re-tiering specialty and limited-distribution drugs, and adjusting prior authorization, step therapy, and age restrictions. Members asked about how Navitus and EBRX develop recommendations, how rebates and coupons are tracked, and whether rebate incentives could influence coverage decisions. The committee also reviewed and approved a one-year Colonial Life accidental death and disability contract extension with level rates for 2026-2027, a one-year UnitedHealthcare Medicare Advantage extension that decouples medical and pharmacy benefits and raises premiums for state and public school retirees, and a new three-year financial auditing contract with Crow Chesnik after an RFQ produced only one response. The UnitedHealthcare renewal was described as the full extent of the increase for the year, with officials saying future increases are likely but should become more predictable. The committee then heard a presentation from Segal Group on public school plan funding and reserve adequacy, which projected that if funding stayed flat the reserve would be drawn down over time and could be exhausted by 2029. Segal presented scenarios showing that maintaining the target reserve would require substantial increases in the minimum district contribution alone, or more moderate increases if costs were spread across district, employee, and Department of Education funding. Members questioned the assumptions behind the projections, including why prescription drug claims were projected to grow 45 percent from an earlier forecast, why actual expenses had come in 17 percent above prior projections, and how federal changes, rising drug costs, and GLP-1 utilization might affect future costs. Several members raised concerns about the loss of wellness visit incentives, the need to control duplicate or inappropriate prescribing, and whether the target reserve level should be revisited. EBD said it is working on cost containment, wellness program redesign, and additional analysis, and indicated it expects to bring a funding and policy recommendation to the committee in September or October. The meeting ended with no further business and adjournment.

Transcript Highlights:

• School retirees signed in as other on House Bill 2034.
• School retirees signed in as other on House Bill 2034.
• Also, we don't believe it's appropriate to cut retiree health benefits when retirees are still recovering
• Retirees' capital assets aren't meant for political agendas.
• Thank you for your longstanding support of retirees.

Summary: The committee took up executive action on the capital budget, Proposed Substitute Senate Bill 6003, and several policy bills. Staff described amendments to the capital budget that shifted funding among behavioral health, local/community projects, irrigation projects, and juvenile rehabilitation capacity, plus a technical fix to the water pollution control revolving program. The committee adopted Senator Dozier’s budget-neutral amendment and a technical amendment, then advanced the amended capital budget to the Rules Committee. It also moved House Bills 2441, 2124, 2471, 2133, 2610, and 2338 forward with due-pass recommendations, and advanced Engrossed Second Substitute House Bill 2251 on Climate Commitment Act accounts to the Transportation Committee after adopting two amendments and withdrawing three others. A major public hearing focused on Engrossed Second Substitute House Bill 2034, which would terminate and restate LEOFF Plan 1 in 2029, transfer surplus assets, and direct portions to the Climate Commitment Account and the pension funding stabilization account. Staff said the plan is currently about 160% funded and explained the bill’s IRS-review process, statute of limitations, and estimated implementation costs. Testimony was sharply divided: some retirees, firefighters, counties, and cities opposed the bill as an improper use of pension assets and urged benefit enhancements or protection of local medical obligations, while others supported using the surplus for broader public purposes. No vote was taken on the bill during the hearing. The committee also heard House Bill 2179 on PERS coverage for certain port workers, with ports and the Washington Public Ports Association supporting clarification for railroad employees covered by the federal railroad retirement system. House Bill 1069, allowing Department of Corrections employees to bargain over supplemental retirement benefits, drew support from Teamsters and corrections workers, while House Bill 2091, expanding employee-information sharing with bargaining representatives, drew union support and privacy objections from Washington Policy Center. Finally, Second Engrossed Substitute House Bill 1210 on targeted urban area tax preferences drew support from labor, local governments, and project proponents, and opposition from contractor groups and environmental advocates over project labor agreement requirements and nuclear-related concerns; Engrossed Substitute House Bill 1408 on community preservation and development authorities and Engrossed Second Substitute House Bill 1974 on land bank authorities for affordable housing were also heard, with both receiving supportive testimony from community and housing advocates.

Transcript Highlights:

• This legislation will change CERS retiree health benefits available for members who began participating
• employer groups have worked together with me for more than a year to develop a plan that enhances retiree
• health benefits for CERS career retirees.
• In doing that, we're balancing the interests of retirees while also ensuring liabilities are addressed
• Duty retirees that retire after<00:04:21.959><c> 20</c><00:04:22.320><c> years</c><00:04:22.520><c>

Summary: The Senate Standing Committee on State and Local Government heard testimony on Senate Bill 10, which would revise CERS retiree health subsidies for members who began participating on or before July 1, 2003. Senator Mills said the bill was developed with employee and employer groups to improve retiree health benefits while protecting the system’s financial footing, using a shared-cost structure. Testimony from sheriffs, police chiefs, firefighters, and the League of Cities strongly supported the bill, emphasizing recruitment and retention, affordability of retiree health coverage, and limited taxpayer risk. Members echoed those points, and the committee approved SB 10 with a 9-0 favorable recommendation. The committee then took up Senate Bill 65, sponsored by Senator West, which would codify the Administrative Regulations Committee’s annual practice of placing certain deficient regulations into statute so they cannot take effect. West explained that the committee’s role is limited to finding regulations deficient or asking for deferral, and that SB 65 is the fifth version of this measure. He described the specific regulation at issue as a Medicaid Services rule that would have required behavioral health associates to hold a master’s degree; providers testified that it would reduce the workforce and harm behavioral health services statewide. West said the committee had deferred the matter eight times before deciding to side with providers. The bill received favorable expression and was reported out. Finally, the committee heard Senate Bill 104, sponsored by Senator Madon, concerning Kentucky Deferred Comp for state employees. The bill would establish a codified fiduciary standard, authorize fiduciary liability insurance, add self-correcting mechanisms to keep the plan in compliance with federal law, and allow self-directed brokerage accounts. Personnel Cabinet representatives said the changes would align the plan with other public pension plans, reduce risk, and offer participants a useful investment option with strong account growth among users. SB 104 also received favorable expression and was reported to the floor. The committee then adjourned.

Transcript Highlights:

• I'm a TRS 1 retiree.
• We TRS 1 and PERS 1 retirees desperately need relief.
• I'm 80 this year, the average age of the TRS 1 and PERS 1 retirees.
• This is for the two lovely retirees over there. So I've been here for 12 years.
• So two-thirds of Plan 1 retirees receive under $30,000 per year.

Summary: The House Appropriations Committee held a public hearing on a series of bills, beginning with House Bill 2689 on Working Connections Child Care. Staff explained that the proposed substitute would keep eligibility at 60% of state median income, eliminate scheduled expansions to 75% and 85%, reduce future subsidy rates from the 85th to the 75th percentile of market, end enhanced regional rates, and change reimbursement rules from prospective enrollment-based payments back to attendance-based payments with a reduced monthly payment after 11 absent days. Child care advocates thanked the committee for removing the proposed cap on the program but opposed the cuts to provider rates and eligibility expansions, warning of harm to families and providers. The committee then heard Engrossed Substitute Senate Bill 5124 on Medicaid network adequacy for post-acute care, with staff noting administrative costs and indeterminate fiscal effects; hospitals supported the bill as a way to reduce discharge delays and reliance on single-case agreements. Senate Bill 5832, which would raise the new motor vehicle arbitration fee from $3 to $6 to support the Lemon Law arbitration program, drew support from the Attorney General’s Office and auto dealers, who said the fee had not been updated since 1995 and the program was underfunded. The committee also heard Substitute Senate Bill 5862, providing a one-time 3% COLA for certain PERS 1 and TRS 1 retirees, with retirees testifying in favor and local government representatives warning about added employer costs. The committee next heard Senate Bill 5922, allowing school districts to transfer money from the Transportation Vehicle Fund to other funds if they reduce their fleet and receive OSPI approval; staff said the bill would mainly add administrative work for OSPI, and no one testified. Substitute Senate Bill 5923 would allow a hospital on an island in Skagit County to qualify as a critical access hospital if federally certified; Island Health testified that the designation would help sustain rural services, and a committee member asked about bed count and Medicaid/charity-care pressures. Senate Bill 5944 would require language access providers to bargain over compensation for missed or canceled appointments and clarify that statutes prevail over conflicting contract terms; WFSE supported the bill, saying it would equalize bargaining rights across agencies. Substitute Senate Bill 5972 would extend interest arbitration rights to correctional employees in city and county jails regardless of population size; labor supported the bill as a retention tool, while cities and counties opposed it, arguing it would raise costs and should include ability-to-pay protections. The committee also heard Senate Bill 5988, authorizing the Department of Health to continue accrediting opioid treatment programs and charge accreditation fees, which DOH said was needed to avoid winding down the program. Later, the committee heard Senate Bill 6151, which would move Ecology fee revenues for landfill methane emissions and laboratory accreditation into dedicated accounts; Ecology supported the bill as improving transparency and reinvesting fees into the programs, and staff said the lab fee shift would be offset by a related budget action. Engrossed Substitute Senate Bill 6194 would pay a rural hospital on a federally recognized Indian reservation, specifically Astria Toppenish, at 150% of the Medicaid fee-for-service rate beginning in 2027; hospital leaders and community members testified that the hospital serves a high-Medicaid, rural, and tribal population and faces persistent losses. Finally, Engrossed Substitute Senate Bill 6302 would direct L&I to investigate possible misclassification of independent contractors on public works projects involving multiple workers doing the same finishing work; labor and business representatives both described it as a negotiated compromise to address underground economy abuses. The committee took no final votes during the hearing and ended by reiterating amendment deadlines for bills scheduled for executive session.

Transcript Highlights:

• Chenal, member of the Legislative Committee of the Washington State School Retirees Association, and
• My name is Fred Yancey, and I'm speaking today on behalf of the 69,000 PERS and PERS Plan 1 retirees.
• I'm speaking in comparison to the Left 1 retirees.
• My colleague from the 29th district is now part of the retiree groups there, Steve Kirby, and I, but
• My colleague from the 29th district is now part of the retiree groups there.

Committee: Joint Select Committee on Pension Policy

Transcript Highlights:

• And let's take a look at kind of average retirees. So I did three scenarios.
• And so you see that Pennsylvania actually still has a little bit of a difference for a retiree to make
• So a retiree who's considering Delaware would actually save about $3,000 and about $8,000 by choosing
• Eighty percent of military retirees are enlisted, and they're practical, hands-on skilled workers in
• And the retiree piece, we are already a very large state to retire to, and that's having an impact on

Summary: The House Revenue and Finance Committee met to consider two tax-related measures sponsored by Representative Holofsky. The first was House Substitute 1 for House Bill 386, the Tipped Worker Tax Relief Act of 2026, which would allow a temporary Delaware income tax deduction of up to $15,000 for qualified tips for tax years 2027 through 2029, with phaseouts at higher incomes and a refundable credit for lower-income workers. Committee discussion focused on whether the bill applied to residents and non-residents, whether credit-card tips were included, the need for an updated substitute, and the expected fiscal impact. The Office of the Comptroller General said the bill would likely reduce general revenue and that the fiscal note had not yet been fully reviewed, while Deputy Secretary Goldsmith said the Department of Finance could administer it and that implementation costs would be modest. After public comment, the committee voted on a motion to release the bill, but it did not receive enough votes, so the chair said she would walk it for additional signatures. The committee then heard Senate Bill 219, which would phase in an increase in the military pension income exemption from $12,500 to $25,000 by tax year 2029. Representative Holofsky argued the measure would help attract and retain military retirees, support the economy, and provide a strong return on investment through spending, taxes, and community participation. Members raised concerns about whether the benefit should be income-based, with one member arguing that higher-income retirees may not need the tax break, while supporters emphasized the multiplier effect and the value of veterans to the state. Public testimony from Veterans of Foreign Wars representatives strongly supported the bill and described how the exemption could influence retirement decisions and local economic activity. A motion to release the bill also failed to get enough votes, and the chair said she would walk it for signatures before adjourning the meeting.

Transcript Highlights:

• I'm a widowed retiree from the legislature.
• And we've tried to educate these retirees as to what's happened, because...
• And based upon that, it's very unlikely that the retirees will ever see anything more than 0.5.6%.
• And based upon that, it's very unlikely that the retirees will ever see anything more than 0.5.6%.
• One comment that was made was about our retirees.

Committee: Senate House Rules & Order Of Business

Summary: The committee first heard HB 124, which would codify the Office of New Americans within the Workforce Solutions Department. The sponsor and Workforce Solutions officials said the office has already been operating on a grant and has become a key resource for businesses and immigrant workers, especially for workforce development, credential recognition, language access, and referrals. Supporters from immigrant advocacy, child care, conservation, and civic groups argued the office would help address labor shortages, improve integration, and strengthen economic growth. Several members questioned whether the office would serve people without legal status, what services would be provided, and whether it would create taxpayer costs; sponsors said eligibility would depend on specific programs, the office would mainly provide referrals and workforce support, and it is currently philanthropic grant-funded. The bill was ultimately passed on a 6-4 due pass vote. The committee then considered SJR 6, a proposed constitutional amendment to change New Mexico’s pretrial detention standards. The sponsor argued the 2016 bail reform language has contributed to a “revolving door” for repeat offenders and that the current standard is too restrictive and inconsistently applied across judicial districts. Supporters from State Police said the resolution would give clearer direction and let voters revisit the issue. Opponents from the ACLU and the Criminal Defense Lawyers Association warned it would expand pretrial detention, weaken the requirement that the state prove no release conditions are adequate, and disproportionately affect poor people and people of color. After extended debate over public safety, judicial discretion, and whether the proposal should include a clearer standard, the committee approved the resolution on a 6-4 due pass vote. The committee also passed SJR 7, a land swap between the state and the City of Santa Fe involving the DPS site and part of the Midtown campus. The sponsor, the Department of Public Safety, and the Santa Fe mayor said the exchange had been discussed for years, would allow the state to own the land under its DPS facilities, and would help the city advance its Midtown redevelopment plan, including housing and public amenities. Members asked about the parcels involved, whether both sides agreed, and whether any member had a financial interest; the sponsor said the swap was non-monetary and fully agreed to by both parties. The resolution passed without opposition. Finally, the committee heard SM 31, which creates a workgroup with LFC, DFA, and PERA to study the loss of COLAs for PERA retirees and recommend solutions. Retiree advocates said the reduced COLA has significantly eroded pension value and that retirees relied on the statutory promise of a 2% COLA. Other speakers emphasized the need to protect long-term fund solvency while addressing retiree losses. The memorial passed unanimously by roll call. The meeting then recessed, with the chair noting the next day’s agenda would be posted later.