PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: Updating the rules related to self-insurance requirements as to local governments and nonprofit corporations.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.62.061 Rule making by state risk manager -- Standards.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Currently, the rules, which are found in chapter 236-22 WAC, the chapter containing the rules promulgated by the Department of General Administration (GA) only provide standards for local government self-insurance programs.
SB 5869, passed in the 2004 legislative session and codified as RCW 48.62.036, added nonprofit corporations to the self-insurance program regulated by the state risk manager. The current rules need to be updated to ensure application to and provide standards for nonprofit corporations included in local government or creating new self-insurance programs.
The risk management function and the state risk manager are no longer a GA function but in accordance with RCW 43.41.300 are a division within the Office of Financial Management (OFM). One of the outcomes of this rule-making process will be to create a new chapter under OFM Title 82 WAC, where all rules related to self-insurance programs will be found.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: OFM will communicate and coordinate with the state auditor, the Property and Liability Advisory Board and the Health and Welfare Advisory Board, all of which have an interest in the rules governing local government and nonprofit self-insurance programs, as necessary.
Process for Developing New Rule: Early solicitation of public comments and recommendations will be provided, and draft rules will be presented for discussion at meetings of each of the advisory boards to solicit comments and recommendations prior to publication of the rules for the rule-making hearing.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting John Nicholson, State Risk Management Coordinator, Office of Financial Management, P.O. Box 41027, Olympia, WA 98504-1027, phone (360) 902-7311, or e-mail john.Nicholson@ofm.wa.gov.
August 10, 2004
Director of Legal Affairs