SENATE BILL REPORT

                  ESB 5954

               As Passed Senate, March 19, 1997

Title:  An act relating to claims against the University of Washington.

Brief Description:  Regulating claims against the University of Washington.

Sponsors:  Senators West, Swecker, Rossi, Snyder and Kohl.

Brief History:

Committee Activity:  Higher Education:  3/3/97, 3/4/97 [DP].

Passed Senate, 3/19/97, 49-0.

SENATE COMMITTEE ON HIGHER EDUCATION

Majority Report:  Do pass.

  Signed by Senators Wood, Chair; Winsley, Vice Chair; Bauer, Hale, Kohl, Patterson, Prince, Sheldon and West.

Staff:  Jennifer Hanlon (786-7784)

Background:  In 1976, the self-insurance revolving fund was created for the University of Washington.  The fund is used to provide professional liability coverage for faculty physicians at the university.  The State Treasurer acted as the fund custodian from 1976 to 1991.  In 1991, management of the fund was turned over to the State Investment Board.  The current value of the fund is $30 million.

Summary of Bill:  Custody of the University of Washington self-insurance fund is transferred from the Treasurer to the university.  Provisions regarding the State Investment Board are eliminated.

The Attorney General must approve all payments from the fund in excess of $25,000.  Pursuant to provisions in the Public Disclosure Act, information in the university claim file or tracking system, other than the claims themselves, must remain privileged and confidential.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill contains an emergency clause and takes effect on July 1, 1997.

Testimony For:  These changes would result in a more efficient process because the involvement of several agencies would be eliminated.  Since the university manages the liabilities, it makes sense for them to manage the assets.  Other policy changes in the legislation are consistent with the policies of the Division of Risk Management.

Testimony Against:  None.

Testified:  Doug Breckel, Alison Borland, Elizabeth Cherry, UW (pro).

House Amendment(s):  The section which would make information in the university claim file or tracking system confidential is eliminated.