SB 5231-S - DIGEST

(DIGEST AS PASSED LEGISLATURE)

     Establishes a transportation account for payment of tortious liabilities of the departments funded by motor vehicle or transportation funds.

     Establishes a risk management advisory committee to represent the interests of the transportation agencies in the transportation subaccount.

VETO MESSAGE ON SB 5231-S

                   June 14, 1995

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval, Substitute Senate Bill No. 5231 entitled:

"AN ACT Relating to the tort liability account;"

     Substitute Senate Bill No. 5231 creates a sub-account within the state's Tort Liability Account comprised only of premium payments from the Motor Vehicle Account and transportation accounts.  It allows the new sub-account to retain its interest earnings and creates a separate transportation risk management advisory subcommittee.

     This separate risk management account for transportation agencies is not necessary and only contributes additional administrative work with little benefit to the public.  Transportation agencies are already individually monitored within the statewide risk pool to calculate risk and premium assessments.  In addition, the bill promotes inconsistent treatment of state fund sources since the new transportation sub-account would be the only account in the risk management pool to retain interest earnings.  This change would result in lost revenue to the General Fund.  Finally, the creation of a separate transportation risk management advisory subcommittee duplicates the work currently being done by the statewide Risk Management Advisory Committee.

     For these reasons, I have vetoed Substitute Senate Bill No. 5231 in its entirety.

                   Respectfully submitted,

                   Mike Lowry

                   Governor