2678-SAMSWMS5630.1SHB 2678S COMM AMDBy Committee on Ways & MeansADOPTED 03/03/2006 Strike everything after the enacting clause and insert thefollowing:Sec. RCW 70.148.020 and 2005 c 518 s 942 are each amended toread as follows: (1) The pollution liability insurance program trust account isestablished in the custody of the state treasurer. All fundsappropriated for this chapter and all premiums collected forreinsurance shall be deposited in the account. Expenditures from theaccount shall be used exclusively for the purposes of this chapterincluding payment of costs of administering the pollution liabilityinsurance and underground storage tank community assistance programs.Expenditures for payment of administrative and operating costs of theagency are subject to the allotment procedures under chapter 43.88 RCWand may be made only after appropriation by statute. No appropriationis required for other expenditures from the account. (2) Each calendar quarter, the director shall report to theinsurance commissioner the loss and surplus reserves required for thecalendar quarter. The director shall notify the department of revenueof this amount by the fifteenth day of each calendar quarter. (3) Each calendar quarter the director shall determine the amountof reserves necessary to fund commitments made to provide financialassistance under RCW 70.148.130 to the extent that the financialassistance reserves do not jeopardize the operations and liabilities ofthe pollution liability insurance program. The director shall notifythe department of revenue of this amount by the fifteenth day of eachcalendar quarter. The director may immediately establish an initialfinancial assistance reserve of five million dollars from availablerevenues. The director may not expend more than fifteen milliondollars for the financial assistance program. Official Print - 1 (4) During the 20052007 fiscal biennium, the legislature maytransfer from the pollution liability insurance program trust accountto the state general fund such amounts as reflect the excess fundbalance of the account. (5) This section expires June 1, ((2007)) 2013.Sec. RCW 70.148.050 and 1998 c 245 s 115 are each amended toread as follows: The director has the following powers and duties: (1) To design and from time to time revise a reinsurance contractproviding coverage to an insurer meeting the requirements of thischapter. Before initially entering into a reinsurance contract, thedirector shall prepare an actuarial report describing the variousreinsurance methods considered by the director and describing eachmethod's costs. In designing the reinsurance contract the directorshall consider common insurance industry reinsurance contractprovisions and shall design the contract in accordance with thefollowing guidelines: (a) The contract shall provide coverage to the insurer for theliability risks of owners and operators of underground storage tanksfor third party bodily injury and property damage and corrective actionthat are underwritten by the insurer. (b) In the event of an insolvency of the insurer, the reinsurancecontract shall provide reinsurance payable directly to the insurer orto its liquidator, receiver, or successor on the basis of the liabilityof the insurer in accordance with the reinsurance contract. In noevent may the program be liable for or provide coverage for thatportion of any covered loss that is the responsibility of the insurerwhether or not the insurer is able to fulfill the responsibility. (c) The total limit of liability for reinsurance coverage shall notexceed one million dollars per occurrence and two million dollarsannual aggregate for each policy underwritten by the insurer less theultimate net loss retained by the insurer as defined and provided forin the reinsurance contract. (d) Disputes between the insurer and the insurance program shall besettled through arbitration. (2) To design and implement a structure of periodic premiums due Official Print - 2 the director from the insurer that takes full advantage of revenuecollections and projected revenue collections to ensure affordablepremiums to the insured consistent with sound actuarial principles. (3) To periodically review premium rates for reinsurance todetermine whether revenue appropriations supporting the program can bereduced without substantially increasing the insured's premium costs. (4) To solicit bids from insurers and select an insurer to providepollution liability insurance to owners and operators of undergroundstorage tanks for third party bodily injury and property damage andcorrective action. (5) To monitor the activities of the insurer to ensure compliancewith this chapter and protect the program from excessive loss exposureresulting from claims mismanagement by the insurer. (6) To monitor the success of the program and periodically makesuch reports and recommendations to the legislature as the directordeems appropriate, and to annually publish a financial report on thepollution liability insurance program trust account showing, amongother things, administrative and other expenses paid from the fund. (7) To annually report the financial and loss experience of theinsurer as to policies issued under the program and the financial andloss experience of the program to the legislature. (8) ((To evaluate the effects of the program upon the privatemarket for liability insurance for owners and operators of undergroundstorage tanks and make recommendations to the legislature on thenecessity for continuing the program to ensure availability of suchcoverage. (9))) To enter into contracts with public and private agencies toassist the director in his or her duties to design, revise, monitor,and evaluate the program and to provide technical or professionalassistance to the director. (((10))) (9) To examine the affairs, transactions, accounts,records, documents, and assets of insurers as the director deemsadvisable.Sec. RCW 70.148.900 and 2000 c 16 s 1 are each amended to readas follows: This chapter shall expire June 1, ((2007)) 2013. Official Print - 3 Sec. RCW 70.149.900 and 2000 c 16 s 2 are each amended to readas follows: Sections 1 through 11 of this act shall expire June 1, ((2007))2013.Sec. RCW 82.23A.902 and 2000 c 16 s 3 are each amended to readas follows: This chapter shall expire on June 1, ((2007)) 2013, coinciding withthe expiration of chapter 70.148 RCW.NEW SECTION.Sec. The following acts or parts of acts are eachrepealed: 2000 c 16 s 4 & 1998 c 245 s 178 (uncodified); 2000 c 16 s 5 & 1997 c 8 s 3 (uncodified); and 2005 c 428 s 4 (uncodified).SHB 2678S COMM AMDBy Committee on Ways & MeansADOPTED 03/03/2006 On page 1, line 1 of the title, after agency; strike theremainder of the title and insert amending RCW 70.148.020, 70.148.050,70.148.900, 70.149.900, and 82.23A.902; repealing 2000 c 16 s 4 and1998 c 245 s 178 (uncodified); repealing 2000 c 16 s 5 and 1997 c 8 s3 (uncodified); repealing 2005 c 428 s 4 (uncodified); and providing anexpiration date.--- END --- Official Print - 4