AN ACT Relating to the
tort liability account; amending RCW 4.92.130 and 4.92.230; reenacting and
amending RCW 43.84.092; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 4.92.130 and 1991
sp.s. c 13 s 92 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. A transportation
liability account is established for payment of tortious liabilities of the
departments funded by motor vehicle or transportation funds. Earnings to the
account are to be retained within the account.
(1) The purpose of the
liability accounts is to: (a) Expeditiously pay legal liabilities 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; and (c) establish an actuarially
sound system to pay incurred losses, within defined limits.
(2) The liability
accounts shall be used to pay claims for injury and property damages
exclusive of legal defense costs and agency-retained expenses otherwise
budgeted.
(3) No money shall be
paid from the liability accounts 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
accounts 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, with the consultation and
advice of the risk management advisory committee and concurrence from the
office of financial management. An actuarial study shall be conducted to
assist in determining the appropriate level of funding.
(6) Disbursements from
the liability accounts 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 of the
office of financial management may direct agencies to transfer moneys from
other funds and accounts to the liability accounts if premiums are
delinquent.
(8) ((The)) Neither
liability account ((shall not)) may exceed fifty percent of the
actuarial value of ((the)) its outstanding liability as
determined annually by the office of risk management. If ((the)) an
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 will be prorated
back to the appropriate funds.
Sec. 2. RCW 4.92.230 and 1989 c
419 s 7 are each amended to read as follows:
(1) The director of the
department of general administration shall establish an ongoing risk management
advisory committee. Members of the committee may include but shall not be
limited to representatives of state agencies, institutions of higher education,
local government, or the private sector.
(2) The director of the
department of general administration shall serve as chair. The committee shall
meet upon call of the chairperson and shall adopt rules for the conduct of its
business.
(3) The risk management
advisory committee will provide guidance in:
(a) Determining
appropriate roles, responsibilities of the office of risk management, and
policies regarding state-wide risk management;
(b) Establishing
premiums or other cost allocation systems;
(c) Determining
appropriate programs and coverages for self-insurance versus insurance;
(d) Developing risk
retention pools; and
(e) Preparing
recommendations for containment of risk exposures.
(4) The director
shall establish a risk management advisory subcommittee to provide guidance and
represent the interests of the transportation agencies in the transportation
liability account.
Sec. 3. RCW 43.84.092 and 1994 c
2 s 6 (Initiative Measure No. 601), 1993 sp.s. c 25 s 511, 1993 sp.s. c 8 s 1,
1993 c 500 s 6, 1993 c 492 s 473, 1993 c 445 s 4, 1993 c 329 s 2, and 1993 c 4
s 9 are each reenacted and amended to read as follows:
(1) All earnings of
investments of surplus balances in the state treasury shall be deposited to the
treasury income account, which account is hereby established in the state
treasury.
(2) The treasury income
account shall be utilized to pay or receive funds associated with federal
programs as required by the federal cash management improvement act of 1990.
The treasury income account is subject in all respects to chapter 43.88 RCW,
but no appropriation is required for refunds or allocations of interest
earnings required by the cash management improvement act. Refunds of interest
to the federal treasury required under the cash management improvement act fall
under RCW 43.88.180 and shall not require appropriation. The office of
financial management shall determine the amounts due to or from the federal
government pursuant to the cash management improvement act. The office of
financial management may direct transfers of funds between accounts as deemed
necessary to implement the provisions of the cash management improvement act,
and this subsection. Refunds or allocations shall occur prior to the
distributions of earnings set forth in subsection (4) of this section.
(3) Except for the
provisions of RCW 43.84.160, the treasury income account may be utilized for
the payment of purchased banking services on behalf of treasury funds
including, but not limited to, depository, safekeeping, and disbursement
functions for the state treasury and affected state agencies. The treasury
income account is subject in all respects to chapter 43.88 RCW, but no appropriation
is required for payments to financial institutions. Payments shall occur prior
to distribution of earnings set forth in subsection (4) of this section.
(4) Monthly, the state
treasurer shall distribute the earnings credited to the treasury income
account. The state treasurer shall credit the general fund with all the
earnings credited to the treasury income account except:
(a) The following
accounts and funds shall receive their proportionate share of earnings based
upon each account's and fund's average daily balance for the period: The
capitol building construction account, the Cedar River channel construction and
operation account, the Central Washington University capital projects account,
the charitable, educational, penal and reformatory institutions account, the
common school construction fund, the county criminal justice assistance
account, the county sales and use tax equalization account, the data processing
building construction account, the deferred compensation administrative account,
the deferred compensation principal account, the department of retirement
systems expense account, the Eastern Washington University capital projects
account, the education construction fund, the emergency reserve fund, the
federal forest revolving account, the health services account, the public
health services account, the health system capacity account, the personal
health services account, the industrial insurance premium refund account, the
judges' retirement account, the judicial retirement administrative account, the
judicial retirement principal account, the transportation liability account,
the local leasehold excise tax account, the local real estate excise tax
account, the local sales and use tax account, the medical aid account, the
municipal criminal justice assistance account, the municipal sales and use tax
equalization account, the natural resources deposit account, the perpetual
surveillance and maintenance account, the public employees' retirement system
plan I account, the public employees' retirement system plan II account, the
Puyallup tribal settlement account, the resource management cost account, the
site closure account, the special wildlife account, the state employees'
insurance account, the state employees' insurance reserve account, the state
investment board expense account, the state investment board commingled trust
fund accounts, the supplemental pension account, the teachers' retirement
system plan I account, the teachers' retirement system plan II account, the
tuition recovery trust fund, the University of Washington bond retirement fund,
the University of Washington building account, the volunteer fire fighters'
relief and pension principal account, the volunteer fire fighters' relief and
pension administrative account, the Washington judicial retirement system
account, the Washington law enforcement officers' and fire fighters' system
plan I retirement account, the Washington law enforcement officers' and fire
fighters' system plan II retirement account, the Washington state patrol
retirement account, the Washington State University building account, the
Washington State University bond retirement fund, the water pollution control
revolving fund, and the Western Washington University capital projects
account. Earnings derived from investing balances of the agricultural
permanent fund, the normal school permanent fund, the permanent common school
fund, the scientific permanent fund, and the state university permanent fund
shall be allocated to their respective beneficiary accounts. All earnings to
be distributed under this subsection (4)(a) shall first be reduced by the
allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
(b) The following
accounts and funds shall receive eighty percent of their proportionate share of
earnings based upon each account's or fund's average daily balance for the
period: The marine operating fund, the motor vehicle fund, and the
transportation fund.
(5) In conformance with
Article II, section 37 of the state Constitution, no treasury accounts or funds
shall be allocated earnings without the specific affirmative directive of this
section.
NEW
SECTION. Sec. 4. This act is necessary for
the immediate preservation of the public peace, health, or safety, or support
of the state government and its existing public institutions, and takes effect
June 1, 1995.
