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 bill also clarifies that the total premium rate must not exceed 1.20 percent and introduces a new definition for "three-month reserve," which is based on projected monthly expenses multiplied by three. Additionally, it specifies that employers with fewer than 50 employees are not required to pay the employer portion of premiums, but if they choose to do so, they can receive assistance.

Furthermore, the bill mandates that the department report annually to the legislature on various aspects of the program, including participation rates, fund balances, and demographic information of participants. Starting January 1, 2023, the office of actuarial services is required to report on the financial condition of the insurance account and the necessary premium rates to maintain solvency. 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