The bill amends existing laws regarding paid family and medical leave in Washington State, specifically RCW 50A.10.030 and RCW 50A.05.050. Key changes include the annual setting of premium rates by the commissioner based on an annual report from the office of actuarial services, rather than a previously outlined calculation method. The total premium rate is capped at 1.20 percent, and the bill clarifies that employers with fewer than 50 employees are not required to pay the employer portion of premiums unless they choose to do so, in which case they may be eligible for assistance. Additionally, the bill establishes that the department must report quarterly on various aspects of the program starting October 1, 2023.

Furthermore, the bill introduces a new definition for "three-month reserve," which is now based on actuarial projections of average monthly expenses multiplied by three. It also specifies that the office of actuarial services must report on the financial condition of the family and medical leave insurance account and the necessary premium rates to maintain solvency and a three-month reserve by the end of the rate collection year 2030. The act is set to take effect on January 1, 2027.

Statutes affected:
Original Bill: 50A.10.030, 50A.05.050
Substitute Bill: 50A.10.030, 50A.05.050