VETO MESSAGE ON SB 5011-S

                   May 7, 1997

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. 5011 entitled:

"AN ACT Relating to the financial and reporting requirements of health care service contractors and health maintenance organizations;"

     I fully support the proposal in Substitute Senate Bill No. 5011, which raises minimum net worth requirements for health maintenance organizations, health care service contractors and limited health care service contractors operating in Washington State.  The intent of this bill, which was requested by the Insurance Commissioner with the support of the industry, is to protect Washington State policyholders by ensuring the solvency of certain health carriers.

     However, this bill is identical to Engrossed Substitute House Bill 1064, which I signed into law on April 25, 1997.

     For this reason, I have vetoed Substitute Senate Bill No. 5011 in its entirety.

                   Respectfully submitted,

                   Gary Locke

                   Governor