BILL REQ. #: S-0524.1
| State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 01/20/2005. Referred to Committee on Financial Institutions, Housing & Consumer Protection.
AN ACT Relating to local government insurance transactions; amending RCW 48.62.031; and adding a new section to chapter 48.62 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 48.62.031 and 1991 sp.s. c 30 s 3 are each amended to
read as follows:
(1) The governing body of a local government entity may
individually self-insure, may join or form a self-insurance program
together with other entities, and may jointly purchase insurance or
reinsurance with other entities for property and liability risks, and
health and welfare benefits only as permitted under this chapter. In
addition, the entity or entities may contract for or hire personnel to
provide risk management, claims, and administrative services in
accordance with this chapter.
(2) The agreement to form a joint self-insurance program shall be
made under chapter 39.34 RCW and may create a separate legal or
administrative entity with powers delegated thereto. Such entity may
include or create a nonprofit corporation organized under chapter 24.03
or 24.06 RCW or a partnership organized under chapter 25.04 RCW.
(3) Every individual and joint self-insurance program is subject to
audit by the state auditor.
(4) If provided for in the agreement or contract established under
chapter 39.34 RCW, a joint self-insurance program may, in conformance
with this chapter:
(a) Contract or otherwise provide for risk management and loss
control services;
(b) Contract or otherwise provide legal counsel for the defense of
claims and other legal services;
(c) Consult with the state insurance commissioner and the state
risk manager;
(d) Jointly purchase insurance and reinsurance coverage in such
form and amount as the program's participants agree by contract;
((and))
(e) Obligate the program's participants to pledge revenues or
contribute money to secure the obligations or pay the expenses of the
program, including the establishment of a reserve or fund for coverage;
and
(f) Possess any other powers and perform all other functions
reasonably necessary to carry out the purposes of this chapter.
(5) A local government entity that has decided to assume a risk of
loss must have available for inspection by the state auditor a written
report indicating the class of risk or risks the governing body of the
entity has decided to assume.
(6) Every joint self-insurance program governed by this chapter
shall appoint the risk manager as its attorney to receive service of,
and upon whom shall be served, all legal process issued against it in
this state upon causes of action arising in this state.
(a) Service upon the risk manager as attorney shall constitute
service upon the program. Service upon joint insurance programs
subject to chapter 30, Laws of 1991 1st sp. sess. can be had only by
service upon the risk manager. At the time of service, the plaintiff
shall pay to the risk manager a fee to be set by the risk manager,
taxable as costs in the action.
(b) With the initial filing for approval with the risk manager,
each joint self-insurance program shall designate by name and address
the person to whom the risk manager shall forward legal process so
served upon him or her. The joint self-insurance program may change
such person by filing a new designation.
(c) The appointment of the risk manager as attorney shall be
irrevocable, shall bind any successor in interest or to the assets or
liabilities of the joint self-insurance program, and shall remain in
effect as long as there is in force in this state any contract made by
the joint self-insurance program or liabilities or duties arising
therefrom.
(d) The risk manager shall keep a record of the day and hour of
service upon him or her of all legal process. A copy of the process,
by registered mail with return receipt requested, shall be sent by the
risk manager, to the person designated for the purpose by the joint
self-insurance program in its most recent such designation filed with
the risk manager. No proceedings shall be had against the joint self-insurance program, and the program shall not be required to appear,
plead, or answer, until the expiration of forty days after the date of
service upon the risk manager.
NEW SECTION. Sec. 2 A new section is added to chapter 48.62 RCW
to read as follows:
(1) For the purpose of carrying out a joint self-insurance program,
a joint self-insurance program and a separate legal entity created
under RCW 48.62.031 each may:
(a) Contract indebtedness and issue and sell revenue bonds
evidencing such indebtedness or establish lines of credit pursuant to
and in the manner provided for local governments in chapter 39.46 RCW
with the joint board under RCW 39.34.030; board of directors under RCW
48.62.081; or governing board of a separate legal entity formed under
RCW 48.62.031, performing the functions to be performed by the
governing body of a local government under chapter 39.46 RCW and
appointing a treasurer to perform the functions to be performed by the
treasurer under chapter 39.46 RCW;
(b) Contract indebtedness and issue and sell short-term obligations
evidencing such indebtedness pursuant to and in the manner provided for
municipal corporations in chapter 39.50 RCW with the joint board under
RCW 39.34.030; board of directors under RCW 48.62.081; or governing
board of a separate legal entity formed under RCW 48.62.031, performing
the functions to be performed by the governing body of a municipal
corporation under chapter 39.50 RCW; and
(c) Contract indebtedness and issue and sell refunding bonds
pursuant to and in the manner provided for public bodies in chapter
39.53 RCW with the joint board under RCW 39.34.030; board of directors
under RCW 48.62.081; or governing board of a separate legal entity
formed under RCW 48.62.031, performing the functions to be performed by
the governing body of a public body under chapter 39.53 RCW.
(2) For the purpose of carrying out a joint self-insurance program,
a joint self-insurance program and a separate legal entity formed under
RCW 48.62.031 each may make loans of the proceeds of revenue bonds
issued under this section to a joint self-insurance program or a local
government entity that has joined or formed a joint self-insurance
program.
(3) For the purpose of carrying out a joint self-insurance program,
a joint self-insurance program and each local government entity that
has joined or formed a joint self-insurance program may accept loans of
the proceeds of revenue bonds issued under this section.