The state risk manager, risk management division, will be undergoing rule-making activity related to regulation of the local government self-insurance program. The rule-making activities include:

     1. The state risk manager is required to adopt rules which create standards for solvency, management, operations and certain contracts. The office of financial management, working with the property and liability advisory board, has created proposed revisions to chapter 82.60 RCW which: (1) Remove the health and welfare rules from chapter 82.60 RCW and address them in a separate rule-making process, (2) replace temporary guidelines with updated rules specific to joint property and liability self-insurance programs to be adopted using the Administrative Procedure Act process described in chapter 34.05 RCW as required by RCW 48.62.061, and (3) remove the provision for waivers from rules and guidelines and allow consistent regulation of all programs.

     The revisions to chapter 82.60 RCW will result in standards adopted in rules which can be easily identified and are specific to individual and joint property and liability programs. Individual and joint health and welfare programs will be able to clearly identify standards that apply to those programs in a newly created separate chapter. By creating rules, rather than guidelines, local governments wishing to form new programs will be able to easily locate the specific regulations which apply to their programs in the rules, as prescribed in RCW 48.62.061. The rule-making hearings have been scheduled for four days in July, two days each in eastern and western Washington.

     2. SSB 5665 was enacted during the 2009 legislative session. SSB 5665 authorizes affordable housing entities to participate in a joint self-insurance program covering property and liability risks. Section 6 requires the state risk manager to adopt rules governing the management and operation of this type of program. The rule-making process will begin this summer. The rules must be in place by January 1, 2010.

     For more information concerning the above rules, contact Roselyn Marcus, Director of Legal Affairs, Rules Coordinator, Office of Financial Management, 300 Insurance Building, P.O. Box 43113, Olympia, WA 98504-3113, e-mail roselyn.marcus@ofm.wa.gov, or phone (360) 902-0568.

Roselyn Marcus

Director of Legal Affairs

Rules Coordinator

© Washington State Code Reviser's Office