WSR 08-21-089

PREPROPOSAL STATEMENT OF INQUIRY

OFFICE OF

FINANCIAL MANAGEMENT

[ Filed October 14, 2008, 3:53 p.m. ]

Subject of Possible Rule Making: Updating the rules related to self-insurance requirements (chapter 82-60 WAC) to incorporate standards previously included in guidelines developed and recommended by the property and liability advisory board. Also, updating rules and incorporating standards previously included in guidelines developed and recommended by the health and welfare advisory board.

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: The standards for operation, solvency, membership and contracts have previously resided in guidelines which were developed with the intent to codify these standards at a later time. Maturity and development of both types of programs (health/welfare programs and property/liability programs) indicate a need to clearly communicate these standards in rule and establish separate standards for operations of each type of program which address the differences in these programs.

The outcome of this rule-making process will be to eliminate confusion by formalizing standards previously included in the guidelines and to create two chapters; one chapter will consist of rules for health/welfare programs and a separate chapter will consist of rules pertaining to property/liability programs. Additional outcomes will clarify the procedures for oversight, monitoring and review of these programs by the state risk manager.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: The office of financial management 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 Shannon Stuber, Local Government Self-Insurance Program Administrator, Office of Financial Management, P.O. Box 41027, Olympia, WA 98504-1027, phone (360) 902-7311, or e-mail shannon.suber@ofm.wa.gov.

Roselyn Marcus

Director of Legal Affairs

Rules Coordinator

Washington State Code Reviser's Office