ESHB 1341 -
By Senators Hargrove, Padden
ADOPTED 04/15/2013
On page 10, after line 5 of the amendment, insert the following:
"Sec. 13 RCW 4.92.130 and 2011 1st sp.s. c 43 s 513 are each
amended to read as follows:
A liability account in the custody of the treasurer is hereby
created as a nonappropriated account to be used solely and exclusively
for the payment of liability settlements and judgments against the
state under 42 U.S.C. Sec. 1981 et seq. or for the tortious conduct of
its officers, employees, and volunteers and all related legal defense
costs.
(1) The purpose of the liability account is to: (a) Expeditiously
pay legal liabilities and defense costs of the state resulting from
tortious conduct; (b) promote risk control through a cost allocation
system which recognizes agency loss experience, levels of self-retention, and levels of risk exposure, including the payment of
compensation awarded by a court under section 6 of this act; and (c)
establish an actuarially sound system to pay incurred losses, within
defined limits.
(2) The liability account shall be used to pay claims for injury
and property damages and legal defense costs exclusive of agency-retained expenses otherwise budgeted.
(3) No money shall be paid from the liability account, except for
defense costs, unless all proceeds available to the claimant from any
valid and collectible liability insurance shall have been exhausted and
unless:
(a) The claim shall have been reduced to final judgment in a court
of competent jurisdiction; or
(b) The claim has been approved for payment.
(4) The liability account shall be financed through annual premiums
assessed to state agencies, based on sound actuarial principles, and
shall be for liability coverage in excess of agency-budgeted self-retention levels.
(5) Annual premium levels shall be determined by the risk manager.
An actuarial study shall be conducted to assist in determining the
appropriate level of funding.
(6) Disbursements for claims from the liability account shall be
made to the claimant, or to the clerk of the court for judgments, upon
written request to the state treasurer from the risk manager.
(7) The director may direct agencies to transfer moneys from other
funds and accounts to the liability account if premiums are delinquent.
(8) The liability account shall not exceed fifty percent of the
actuarial value of the outstanding liability as determined annually by
the office of risk management. If the account exceeds the maximum
amount specified in this section, premiums may be adjusted by the
office of risk management in order to maintain the account balance at
the maximum limits. If, after adjustment of premiums, the account
balance remains above the limits specified, the excess amount shall be
prorated back to the appropriate funds.
(9) The payment of compensation for wrongful conviction awarded by
a court under section 6 of this act does not constitute a finding that
the wrongful conviction resulted from tortious conduct by the officers
or employees of the state or the political subdivisions, municipal
corporations, and quasi-municipal corporations of the state."
ESHB 1341 -
By Senators Hargrove, Padden
ADOPTED 04/15/2013
On page 10, line 13 of the title amendment, after "insert" insert "amending RCW 4.92.130;"
EFFECT: Clarifies that payment of compensation awarded by a court for wrongful conviction is a risk control measure and an allowable use of funds in the liability account. Specifies that payment of a court- ordered compensation award does not constitute a finding that the wrongful conviction resulted from tortious conduct by the state or its municipalities and political subdivisions.