HOUSE BILL REPORT

                  HB 1501

             As Reported By House Committee On:

             Financial Institutions & Insurance

Title:  An act relating to correcting double amendments related to insurance examination expenses.

Brief Description:  Correcting double amendments related to insurance examination expenses.

Sponsors:  Representatives L. Thomas, Wolfe, Huff, Dellwo and Kessler; by request of Law Revision Commission.

Brief History:

  Committee Activity:

Financial Institutions & Insurance:  2/6/95, 2/8/95 [DP].

HOUSE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Majority Report:  Do pass.  Signed by 15 members:  Representatives L. Thomas, Chairman; Beeksma, Vice Chairman; Smith, Vice Chairman; Wolfe, Ranking Minority Member; Grant, Assistant Ranking Minority Member; Benton; Campbell; Costa; Dellwo; Dyer; Huff; Kessler; Mielke; Ogden and Pelesky.

Staff:  Charlie Gavigan (786-7340).

Background:  A state statute requires that examinations of insurance companies headquartered in Washington by the Office of the Insurance Commissioner (OIC) be done at the expense of the OIC except for fees, mileage, and witnesses.  This statute makes other provisions regarding examination expenses.

In 1993, this statutory provision was amended by two separate bills that were enacted into law.  There are technical conflicts created by this double amendment.  These technical conflicts include: (1) references to "commissioner's" in one bill and "his or her" in the other; and (2) a reference to the board overseeing state personnel is "Washington Personnel Resources Board" in one bill and "State Personnel Board" in the other.  In 1993, the State Personnel Board was joined with the Higher Education Personnel Board and renamed the Washington Personnel Resources Board. 

The Law Revision Commission is a commission comprised of 13 members that, among other things, recommends to the Legislature elimination of antiquated laws and correction of other defects such as double amendments.  The Law Revision Commission recommends that the examination expense statute be corrected by using "commissioner's" instead of "his or her" and that the correct reference to Washington Personnel Resources Board be used.

Summary of Bill:  The inconsistent provisions in the statute governing examination expenses  incurred by the Office of the Insurance Commissioner, caused by double amendments in 1993, are corrected by recodifying the statute and making technical changes.  The recodification uses "commissioner's" instead of "his or her" and uses the correct reference to the Washington Personnel Resources Board.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill corrects technical inconsistencies that occurred when two bills passed last session that made changes to the same statute.

Testimony Against:  None.

Testified:  Marjorie D. Rombauer, Washington Law Revision Commission (pro); and James E. Tompkins, Office of the Insurance Commissioner (pro).