DSHS and ESD outline rulemaking timetables for operational changes and employer penalties

Two agency rulemaking updates were presented: DSHS described changes to operationalize reimbursements and provider qualifications, and ESD reviewed rulemaking steps to implement statute changes affecting employer penalties and payment timelines.

Chantel Diaz (DSHS) said DSHS filed a permanent adoption package to amend rules governing the financial management services vendor, enabling the vendor to facilitate transportation reimbursements and purchase adaptive equipment on behalf of beneficiaries; that project is filed for permanent adoption and expected to take effect Oct. 23. A second DSHS project will amend minimum qualifications for education, consultation and home safety evaluation providers and adjust maximum service rates (inflation adjustments recommended by the commission and Milliman); its public hearing is scheduled for Oct. 27 and the amendments are expected to take effect Jan. 1, 2027.

Jeanette Benham (ESD) reviewed ESD’s phase‑based rulemaking following passage of SB 5291 (2025): CR101 filed in June (drafting), CR102 to be filed Oct. 7 to set the public hearing (planned Nov. 10) and CR103 adoption by Nov. 30 to meet the Jan. 1, 2027 effective date for employer penalty and interest provisions. ESD rules will clarify willful failure to remit premiums, penalty schedules, interest calculations and conditions under which penalties/interest can be waived or payment plans granted. Jeanette said ESD will align administrative practices to Title 50A to mirror paid family and medical leave where appropriate.

Commissioners had no further questions and staff noted both agencies remain on schedule to meet statutory deadlines.