AN ACT Relating to
transferring statewide risk management functions from the department of general
administration to the office of financial management; amending RCW 43.19.025,
43.19.1935, 43.19.1936, 43.19.19362, 43.19.19367, 43.19.19369, 4.92.006,
4.92.040, 4.92.100, 4.92.110, 4.92.130, 4.92.150, 4.92.160, 4.92.210, 4.92.220,
4.92.230, 4.92.240, 4.92.270, 39.59.010, 43.41.110, and 48.62.021; reenacting
and amending RCW 43.19.1906; adding new sections to chapter 43.41 RCW; creating
new sections; recodifying RCW 43.19.1935, 43.19.1936, 43.19.19361, 43.19.19362,
43.19.19363, 43.19.19364, 43.19.19367, 43.19.19368, 43.19.19369, and 43.19.540;
and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. It is the intent of the
legislature that state risk management should have increased visibility at a
policy level in state government. This increased visibility can best be
accomplished by the transfer of the statewide risk management function from the
department of general administration to the office of financial management.
The legislature intends that this transfer will result in increasing visibility
for the management and funding of statewide risk, increasing executive
involvement in risk management issues, and improving statewide risk management
accountability.
NEW SECTION. Sec.
2. (1) The powers, duties,
and functions of statewide risk management are hereby transferred from the
department of general administration to the office of financial management.
(2)(a) All reports,
documents, surveys, books, records, files, papers, or written material in the
possession of the department of general administration relating to the risk
management office shall be delivered to the custody of the office of financial
management. All cabinets, furniture, office equipment, motor vehicles, and
other tangible property employed by the risk management office in the
department of general administration shall be made available to the office of
financial management. All funds, credits, or other assets held by the risk
management office in the department of general administration shall be assigned
to the office of financial management.
(b) If any question
arises as to the transfer of any personnel, funds, books, documents, records,
papers, files, equipment, or other tangible property used or held in the
exercise of the powers and the performance of the duties and functions
transferred, the director of financial management shall make a determination as
to the proper allocation and certify the same to the state agencies concerned.
(c) Any appropriations
made in connection with the powers, duties, and functions transferred by this
act shall, on the effective date of this section, be transferred and credited
to the office of financial management.
(3) All employees of
the risk management office in the department of general administration are
transferred to the jurisdiction of the office of financial management. All
employees classified under chapter 41.06 RCW, the state civil service law, are
assigned to the office of financial management to perform their usual duties
upon the same terms as formerly, without any loss of rights, subject to any
action that may be appropriate thereafter in accordance with the laws and rules
governing state civil service.
(4) All rules and all
pending business before the risk management office of the department of general
administration shall be continued and acted upon by the office of financial
management. All existing contracts and obligations shall remain in full force
and shall be performed by the office of financial management.
(5) The transfer of the
powers, duties, functions, and personnel of the risk management office of the
department of general administration shall not affect the validity of any act
performed before the effective date of this section.
(6) If apportionments
of budgeted funds are required because of the transfers directed by this
section, the director of financial management shall certify the apportionments
to the agencies affected, the state auditor, and the state treasurer. Each of
these shall make the appropriate transfer and adjustments in funds and
appropriation accounts and equipment records in accordance with the
certification.
Sec. 3. RCW 43.19.025 and 2001 c
292 s 2 are each amended to read as follows:
The general
administration services account is created in the custody of the state
treasurer and shall be used for all activities previously budgeted and
accounted for in the following internal service funds: The motor transport
account, the general administration management fund, the general administration
facilities and services revolving fund, the central stores revolving fund, the
surplus property purchase revolving fund, ((the risk management account,))
and the energy efficiency services account. Only the director or the
director's designee may authorize expenditures from the account. The account
is subject to the allotment procedures under chapter 43.88 RCW.
Sec. 4. RCW 43.19.1906 and 1999
sp.s. c 1 s 606, 1999 c 195 s 1, and 1999 c 106 s 1 are each reenacted and
amended to read as follows:
Insofar as practicable,
all purchases and sales shall be based on competitive bids, and a formal sealed
bid procedure shall be used as standard procedure for all purchases and
contracts for purchases and sales executed by the state purchasing and material
control director and under the powers granted by RCW 43.19.190 through
43.19.1939. This requirement also applies to purchases and contracts for
purchases and sales executed by agencies, including educational institutions,
under delegated authority granted in accordance with provisions of RCW
43.19.190 or under RCW 28B.10.029. However, formal sealed bidding is not
necessary for:
(1) Emergency purchases
made pursuant to RCW 43.19.200 if the sealed bidding procedure would prevent or
hinder the emergency from being met appropriately;
(2) Purchases not
exceeding thirty-five thousand dollars, or subsequent limits as calculated by
the office of financial management: PROVIDED, That the state director of
general administration shall establish procedures to assure that purchases made
by or on behalf of the various state agencies shall not be made so as to avoid
the thirty-five thousand dollar bid limitation, or subsequent bid limitations
as calculated by the office of financial management: PROVIDED FURTHER, That the
state purchasing and material control director is authorized to reduce the
formal sealed bid limits of thirty-five thousand dollars, or subsequent limits
as calculated by the office of financial management, to a lower dollar amount
for purchases by individual state agencies if considered necessary to maintain
full disclosure of competitive procurement or otherwise to achieve overall
state efficiency and economy in purchasing and material control. Quotations
from three thousand dollars to thirty-five thousand dollars, or subsequent
limits as calculated by the office of financial management, shall be secured
from at least three vendors to assure establishment of a competitive price and
may be obtained by telephone or written quotations, or both. The agency shall
invite at least one quotation each from a certified minority and a certified
women-owned vendor who shall otherwise qualify to perform such work.
Immediately after the award is made, the bid quotations obtained shall be
recorded and open to public inspection and shall be available by telephone
inquiry. A record of competition for all such purchases from three thousand
dollars to thirty-five thousand dollars, or subsequent limits as calculated by
the office of financial management, shall be documented for audit purposes.
Purchases up to three thousand dollars may be made without competitive bids
based on buyer experience and knowledge of the market in achieving maximum
quality at minimum cost;
(3) Purchases which are
clearly and legitimately limited to a single source of supply and purchases
involving special facilities, services, or market conditions, in which
instances the purchase price may be best established by direct negotiation;
(4) Purchases of
insurance and bonds by the risk management ((office)) division
under RCW 43.19.1935 (as recodified by this act);
(5) Purchases and
contracts for vocational rehabilitation clients of the department of social and
health services: PROVIDED, That this exemption is effective only when the
state purchasing and material control director, after consultation with the
director of the division of vocational rehabilitation and appropriate
department of social and health services procurement personnel, declares that
such purchases may be best executed through direct negotiation with one or more
suppliers in order to expeditiously meet the special needs of the state's
vocational rehabilitation clients;
(6) Purchases by
universities for hospital operation or biomedical teaching or research purposes
and by the state purchasing and material control director, as the agent for
state hospitals as defined in RCW 72.23.010, and for health care programs
provided in state correctional institutions as defined in RCW 72.65.010(3) and
veterans' institutions as defined in RCW 72.36.010 and 72.36.070, made by
participating in contracts for materials, supplies, and equipment entered into
by nonprofit cooperative hospital group purchasing organizations;
(7) Purchases for
resale by institutions of higher education to other than public agencies when
such purchases are for the express purpose of supporting instructional programs
and may best be executed through direct negotiation with one or more suppliers
in order to meet the special needs of the institution;
(8) Purchases by institutions
of higher education not exceeding thirty-five thousand dollars: PROVIDED, That
for purchases between three thousand dollars and thirty-five thousand dollars
quotations shall be secured from at least three vendors to assure establishment
of a competitive price and may be obtained by telephone or written quotations,
or both. For purchases between three thousand dollars and thirty-five thousand
dollars, each institution of higher education shall invite at least one
quotation each from a certified minority and a certified women-owned vendor who
shall otherwise qualify to perform such work. A record of competition for all
such purchases made from three thousand to thirty-five thousand dollars shall
be documented for audit purposes; and
(9) Negotiation of a
contract by the department of transportation, valid until June 30, 2001, with
registered tow truck operators to provide roving service patrols in one or more
Washington state patrol tow zones whereby those registered tow truck operators
wishing to participate would cooperatively, with the department of
transportation, develop a demonstration project upon terms and conditions
negotiated by the parties.
Beginning on July 1,
1995, and on July 1 of each succeeding odd-numbered year, the dollar limits specified
in this section shall be adjusted as follows: The office of financial
management shall calculate such limits by adjusting the previous biennium's
limits by the appropriate federal inflationary index reflecting the rate of
inflation for the previous biennium. Such amounts shall be rounded to the
nearest one hundred dollars. However, the three thousand dollar figure in
subsections (2) and (8) of this section may not be adjusted to exceed five
thousand dollars.
Sec. 5. RCW 43.19.1935 and 1998
c 105 s 8 are each amended to read as follows:
As a means of providing
for the procurement of insurance and bonds on a volume rate basis, the director
((of general administration through the risk management office)) shall
purchase or contract for the needs of state agencies in relation to all such
insurance and bonds: PROVIDED, That authority to purchase insurance may be
delegated to state agencies. Insurance in force shall be reported to the risk
management ((office)) division periodically under rules
established by the director. Nothing contained in this section shall prohibit
the use of licensed agents or brokers for the procurement and service of
insurance.
The amounts of
insurance or bond coverage shall be as fixed by law, or if not fixed by law,
such amounts shall be as fixed by the director ((of the department of
general administration)).
The premium cost for
insurance acquired and bonds furnished shall be paid from appropriations or
other appropriate resources available to the state agency or agencies for which
procurement is made, and all vouchers drawn in payment therefor shall bear the
written approval of the risk management ((office)) division prior
to the issuance of the warrant in payment therefor. Where deemed advisable the
premium cost for insurance and bonds may be paid by the ((general
administration services)) risk management administration account
which shall be reimbursed by the agency or agencies for which procurement is
made.
Sec. 6. RCW 43.19.1936 and 1985
c 188 s 5 are each amended to read as follows:
The director ((of
general administration)), through the risk management ((office)) division,
may purchase, or contract for the purchase of, property and liability insurance
for any municipality upon request of the municipality.
As used in this
section, "municipality" means any city, town, county, special purpose
district, municipal corporation, or political subdivision of the state of
Washington.
Sec. 7. RCW 43.19.19362 and 1998
c 245 s 55 are each amended to read as follows:
There is
hereby created a risk management ((office)) division within the
((department of general administration)) office of financial
management. The director ((of general administration)) shall
implement the risk management policy in RCW 43.19.19361 (as recodified by
this act) through the risk management ((office)) division.
The director ((of general administration)) shall appoint a risk manager
to supervise the risk management ((office)) division. The risk
management ((office)) division shall make recommendations when
appropriate to state agencies on the application of prudent safety, security,
loss prevention, and loss minimization methods so as to reduce or avoid risk or
loss.
Sec. 8. RCW 43.19.19367 and 1988
c 281 s 6 are each amended to read as follows:
The
director ((of general administration)), through the risk management ((office))
division, shall receive and enforce bonds posted pursuant to RCW
39.59.010 (3) and (4).
Sec. 9. RCW 43.19.19369 and 1989
c 419 s 11 are each amended to read as follows:
The ((department of
general administration)) office shall conduct periodic actuarial
studies to determine the amount of money needed to adequately fund the
liability account.
Sec. 10. RCW 4.92.006 and 1989 c
419 s 2 are each amended to read as follows:
As used in this
chapter:
(1) "((Department))
Office" means the ((department of general administration)) office
of financial management.
(2) "Director"
means the director of financial management.
(3) "Risk
management division" means the division of the office of financial
management that carries out the powers and duties under this chapter relating
to claim filing, claims administration, and claims payment.
(4) "Risk
manager" means the person supervising the ((office of)) risk
management ((in the department of general administration)) division.
Sec. 11. RCW 4.92.040 and 1999 c
163 s 3 are each amended to read as follows:
(1) No execution shall
issue against the state on any judgment.
(2) Whenever a final
judgment against the state is obtained in an action on a claim arising out of
tortious conduct, the claim shall be paid from the liability account.
(3) Whenever a final
judgment against the state shall have been obtained in any other action, the
clerk of the court shall make and furnish to the risk management ((office))
division a duly certified copy of such judgment; the risk management ((office))
division shall thereupon audit the amount of damages and costs therein
awarded, and the same shall be paid from appropriations specifically provided
for such purposes by law.
(4) Final judgments for
which there are no provisions in state law for payment shall be transmitted by
the risk management ((office)) division to the senate and house
of representatives committees on ways and means as follows:
(a) On the first day of
each session of the legislature, the risk management ((office)) division
shall transmit judgments received and audited since the adjournment of the
previous session of the legislature.
(b) During each session
of legislature, the risk management ((office)) division shall
transmit judgments immediately upon completion of audit.
(5) All claims, other
than judgments, made to the legislature against the state of Washington for
money or property, shall be accompanied by a statement of the facts on which
such claim is based and such evidence as the claimant intends to offer in
support of the claim and shall be filed with the risk management ((office))
division, which shall retain the same as a record. All claims of two
thousand dollars or less shall be approved or rejected by the risk management
((office)) division, and if approved shall be paid from
appropriations specifically provided for such purpose by law. Such decision,
if adverse to the claimant in whole or part, shall not preclude the claimant
from seeking relief from the legislature. If the claimant accepts any part of
his or her claim which is approved for payment by the risk management ((office))
division, such acceptance shall constitute a waiver and release of the
state from any further claims relating to the damage or injury asserted in the
claim so accepted. The risk management ((office)) division shall
submit to the house and senate committees on ways and means, at the beginning
of each regular session, a comprehensive list of all claims paid pursuant to
this subsection during the preceding year. For all claims not approved by the
risk management ((office)) division, the risk management ((office))
division shall recommend to the legislature whether such claims should
be approved or rejected. Recommendations shall be submitted to the senate and
house of representatives committees on ways and means not later than the
thirtieth day of each regular session of the legislature. Claims which cannot
be processed for timely submission of recommendations shall be held for
submission during the following regular session of the legislature. The
recommendations shall include, but not be limited to:
(a) A summary of the
facts alleged in the claim, and a statement as to whether these facts can be
verified by the risk management ((office)) division;
(b) An estimate by the
risk management ((office)) division of the value of the loss or
damage which was alleged to have occurred;
(c) An analysis of the
legal liability, if any, of the state for the alleged loss or damage; and
(d) A summary of
equitable or public policy arguments which might be helpful in resolving the
claim.
(((5) [(6)])) (6)
The legislative committees to whom such claims are referred shall make a
transcript, recording, or statement of the substance of the evidence given in
support of such a claim. If the legislature approves a claim the same shall be
paid from appropriations specifically provided for such purpose by law.
(((6) [(7)])) (7)
Subsections (3) through (((5))) (6) of this section do not apply
to judgments or claims against the state housing finance commission created
under chapter 43.180 RCW.
Sec. 12. RCW 4.92.100 and 1986 c
126 s 7 are each amended to read as follows:
All claims against the
state for damages arising out of tortious conduct shall be presented to and
filed with the risk management ((office)) division. All such
claims shall be verified and shall accurately describe the conduct and
circumstances which brought about the injury or damage, describe the injury or
damage, state the time and place the injury or damage occurred, state the names
of all persons involved, if known, and shall contain the amount of damages
claimed, together with a statement of the actual residence of the claimant at
the time of presenting and filing the claim and for a period of six months
immediately prior to the time the claim arose. If the claimant is
incapacitated from verifying, presenting, and filing the claim or if the
claimant is a minor, or is a nonresident of the state, the claim may be
verified, presented, and filed on behalf of the claimant by any relative,
attorney, or agent representing the claimant.
With respect to the
content of such claims this section shall be liberally construed so that
substantial compliance will be deemed satisfactory.
Sec. 13. RCW 4.92.110 and 1989 c
419 s 14 are each amended to read as follows:
No action shall be
commenced against the state for damages arising out of tortious conduct until
sixty days have elapsed after the claim is presented to and filed with the risk
management ((office)) division. The applicable period of
limitations within which an action must be commenced shall be tolled during the
sixty-day period.
Sec. 14. RCW 4.92.130 and 1999 c
163 s 1 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 and all related
legal defense costs.
(1) The purpose of the
liability account is to: (a) Expeditiously pay legal liabilities and defense
costs 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
account shall be used to pay claims for injury and property damages and legal
defense costs exclusive of agency-retained expenses otherwise budgeted.
(3) No money shall be
paid from the liability account, except for defense costs, 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
account 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 for
claims from the liability account 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 account if premiums are
delinquent.
(8) The liability
account shall not exceed fifty percent of the actuarial value of the
outstanding liability as determined annually by the ((office of)) risk
management division. If the account exceeds the maximum amount
specified in this section, premiums may be adjusted by the ((office of))
risk management division 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)) shall be
prorated back to the appropriate funds.
Sec. 15. RCW 4.92.150 and 1989 c
403 s 4 are each amended to read as follows:
After
commencement of an action in a court of competent jurisdiction upon a claim
against the state, or any of its officers, employees, or volunteers arising out
of tortious conduct or pursuant to 42 U.S.C. Sec. 1981 et seq., or against a
foster parent that the attorney general is defending pursuant to RCW 4.92.070,
or upon petition by the state, the attorney general, with the prior approval of
the risk management ((office)) division and with the approval of
the court, following such testimony as the court may require, may compromise
and settle the same and stipulate for judgment against the state, the affected
officer, employee, volunteer, or foster parent.
Sec. 16. RCW 4.92.160 and 1999 c
163 s 4 are each amended to read as follows:
Payment of claims and
judgments arising out of tortious conduct or pursuant to 42 U.S.C. Sec. 1981 et
seq. shall not be made by any agency or department of state government with the
exception of the risk management ((office)) division, and that ((office))
division shall authorize and direct the payment of moneys only from the
liability account whenever:
(1) The head or
governing body of any agency or department of state or the designee of any such
agency certifies to the risk management ((office)) division that
a claim has been settled; or
(2) The clerk of court
has made and forwarded a certified copy of a final judgment in a court of
competent jurisdiction and the attorney general certifies that the judgment is
final and was entered in an action on a claim arising out of tortious conduct
or under and pursuant to 42 U.S.C. Sec. 1981 et seq. Payment of a judgment
shall be made to the clerk of the court for the benefit of the judgment
creditors. Upon receipt of payment, the clerk shall satisfy the judgment
against the state.
Sec. 17. RCW 4.92.210 and 1989 c
419 s 3 are each amended to read as follows:
(1) All liability
claims arising out of tortious conduct or under 42 U.S.C. Sec. 1981 et seq.
that the state of Washington or any of its officers, employees, or volunteers
would be liable for shall be filed with the ((office of)) risk
management((, department of general administration, unless specifically
delegated to other state agencies under state statute)) division.
(2) A centralized claim
tracking system shall be maintained to provide agencies with accurate and
timely data on the status of liability claims. Information in this claim file,
other than the claim itself, shall be privileged and confidential.
(3) Standardized
procedures shall be established for filing, reporting, processing, and
adjusting claims, which includes the use of qualified claims management
personnel.
(4) All claims ((will))
shall be reviewed by the ((office of)) risk management division
to determine an initial valuation, to delegate to the appropriate office to
investigate, negotiate, compromise, and settle the claim, or to retain that
responsibility on behalf of and with the assistance of the affected state
agency.
(5) All claims that
result in a lawsuit ((will)) shall be forwarded to the attorney
general's office. Thereafter the attorney general and the ((office of))
risk management division shall collaborate in the investigation, denial,
or settlement of the claim.
(6) Reserves shall be
established for recognizing financial liability and monitoring effectiveness.
The valuation of specific claims against the state shall be privileged and
confidential.
(7) All settlements
shall be approved by the responsible agencies, or their designees, prior to
settlement.
Sec. 18. RCW 4.92.220 and 1998 c
105 s 2 are each amended to read as follows:
(1) The risk
management administration account is created in the custody of the state
treasurer. All receipts from appropriations and assessments shall be deposited
into the account. Only the director or the director's designee may authorize
expenditures from the account. The account is subject to allotment procedures
under chapter 43.88 RCW, but no appropriation is required for expenditures.
(2) The ((general
administration services)) risk management administration account is
to be used for the payment of costs related to:
(a) The appropriated
administration of liability, property, and vehicle claims, including
investigation, claim processing, negotiation, and settlement, and other
expenses relating to settlements and judgments against the state not otherwise
budgeted; and
(b) The nonappropriated
pass-through cost associated with the purchase of liability and property
insurance, including catastrophic insurance, subject to policy conditions and
limitations determined by the risk manager.
(((2))) (3)
The ((general administration services)) risk management
administration account's appropriation for risk management shall be
financed through a combination of direct appropriations and assessments to
state agencies.
Sec. 19. 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)) directors or deputy directors
of state agencies, presidents or vice-presidents of institutions of
higher education, or representatives of local government((,)) or
the private sector.
(2) The director ((of
the department of general administration)) or his or her designee
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)) shall provide guidance in:
(a) Determining
appropriate roles, responsibilities of the ((office of)) risk management
division, and policies regarding statewide 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.
Sec. 20. RCW 4.92.240 and 1989 c
419 s 8 are each amended to read as follows:
The director ((of
general administration)) has the power to adopt rules necessary to carry
out the intent of this chapter.
Sec. 21. RCW 4.92.270 and 1989 c
419 s 15 are each amended to read as follows:
The risk manager shall
develop procedures for standard indemnification agreements for state agencies
to use whenever the agency agrees to indemnify, or be indemnified by, any
person or party. The risk manager shall also develop guidelines for the use of
indemnification agreements by state agencies. On request of the risk manager,
an agency shall forward to the risk management ((office)) division
for review and approval any contract or agreement containing an indemnification
agreement.
Sec. 22. RCW 39.59.010 and 1988 c
281 s 1 are each amended to read as follows:
Unless the context
clearly requires otherwise, the definitions in this section apply throughout
this chapter.
(1) "Bond"
means any agreement which may or may not be represented by a physical
instrument, including but not limited to bonds, notes, warrants, or
certificates of indebtedness, that evidences an obligation under which the
issuer agrees to pay a specified amount of money, with or without interest, at
a designated time or times either to registered owners or bearers.
(2) "Local
government" means any county, city, town, special purpose district,
political subdivision, municipal corporation, or quasi-municipal corporation,
including any public corporation, authority, or other instrumentality created
by such an entity.
(3) "Money market
fund" means a mutual fund the portfolio which consists of only bonds
having maturities or demand or tender provisions of not more than one year,
managed by an investment advisor who has posted with the risk management ((office))
division of the ((department of general administration)) office
of financial management a bond or other similar instrument in the amount of
at least five percent of the amount invested in the fund pursuant to RCW
39.59.030 (2) or (3).
(4) "Mutual
fund" means a diversified mutual fund registered with the federal
securities and exchange commission and which is managed by an investment
advisor with assets under management of at least five hundred million dollars
and with at least five years' experience in investing in bonds authorized for
investment by this chapter and who has posted with the risk management ((office))
division of the ((department of general administration)) office
of financial management a bond or other similar instrument in the amount of
at least five percent of the amount invested in the fund pursuant to RCW
39.59.030(1).
(5)
"State" includes a state, agencies, authorities, and
instrumentalities of a state, and public corporations created by a state or
agencies, authorities, or instrumentalities of a state.
Sec. 23. RCW 43.41.110 and 1981
2nd ex.s. c 4 s 13 are each amended to read as follows:
The office of financial
management shall:
(1) Provide technical
assistance to the governor and the legislature in identifying needs and in
planning to meet those needs through state programs and a plan for
expenditures.
(2) Perform the
comprehensive planning functions and processes necessary or advisable for state
program planning and development, preparation of the budget, inter-departmental
and inter-governmental coordination and cooperation, and determination of state
capital improvement requirements.
(3) Provide assistance
and coordination to state agencies and departments in their preparation of
plans and programs.
(4) Provide general
coordination and review of plans in functional areas of state government as may
be necessary for receipt of federal or state funds.
(5) Participate with
other states or subdivisions thereof in interstate planning.
(6) Encourage
educational and research programs that further planning and provide
administrative and technical services therefor.
(7) Carry out the
provisions of RCW 43.62.010 through 43.62.050 relating to the state census.
(8) Carry out the
provisions of this chapter and chapter 4.92 RCW relating to risk management.
(9) Be the
official state participant in the federal-state cooperative program for local
population estimates and as such certify all city and county special censuses
to be considered in the allocation of state and federal revenues.
(((9))) (10)
Be the official state center for processing and dissemination of federal
decennial or quinquennial census data in cooperation with other state agencies.
(((10))) (11)
Be the official state agency certifying annexations, incorporations, or
disincorporations to the United States bureau of the census.
(((11))) (12)
Review all United States bureau of the census population estimates used for
federal revenue sharing purposes and provide a liaison for local governments
with the United States bureau of the census in adjusting or correcting revenue
sharing population estimates.
(((12))) (13)
Provide fiscal notes depicting the expected fiscal impact of proposed
legislation in accordance with chapter 43.88A RCW.
(((13))) (14)
Be the official state agency to estimate and manage the cash flow of all public
funds as provided in chapter 43.88 RCW. To this end, the office shall adopt
such rules as are necessary to manage the cash flow of public funds.
Sec. 24. RCW 48.62.021 and 1999 c
153 s 60 are each amended to read as follows:
Unless the context
clearly requires otherwise, the definitions in this section apply throughout
this chapter.
(1) "Local
government entity" or "entity" means every unit of local
government, both general purpose and special purpose, and includes, but is not
limited to, counties, cities, towns, port districts, public utility districts,
water-sewer districts, school districts, fire protection districts, irrigation
districts, metropolitan municipal corporations, conservation districts, and
other political subdivisions, governmental subdivisions, municipal
corporations, and quasi-municipal corporations.
(2) "Risk
assumption" means a decision to absorb the entity's financial exposure to
a risk of loss without the creation of a formal program of advance funding of
anticipated losses.
(3)
"Self-insurance" means a formal program of advance funding and
management of entity financial exposure to a risk of loss that is not
transferred through the purchase of an insurance policy or contract.
(4) "Health and
welfare benefits" means a plan or program established by a local
government entity or entities for the purpose of providing its employees and
their dependents, and in the case of school districts, its district employees,
students, directors, or any of their dependents, with health care, accident,
disability, death, and salary protection benefits.
(5) "Property and
liability risks" includes the risk of property damage or loss sustained by
a local government entity and the risk of claims arising from the tortious or
negligent conduct or any error or omission of the local government entity, its
officers, employees, agents, or volunteers as a result of which a claim may be
made against the local government entity.
(6) "State risk
manager" means the ((state)) risk manager of the ((division of))
risk management division within the ((department of general
administration)) office of financial management.
NEW SECTION. Sec.
25. RCW 43.19.1935,
43.19.1936, 43.19.19361, 43.19.19362, 43.19.19363, 43.19.19364, 43.19.19367,
43.19.19368, 43.19.19369, and 43.19.540 are each recodified as sections in
chapter 43.41 RCW.
NEW
SECTION. Sec. 26. This act shall take
effect July 1, 2002.
