SENATE BILL REPORT

SB 6196

BYSenators Vognild, Newhouse, McDonald, Talmadge, Garrett, Conner, Rasmussen, Fleming, Metcalf and Deccio

Establishing state self-insurance reserve accounts.

Senate Committee on Ways & Means

Senate Hearing Date(s):January 28, 1988

Senate Staff:Gary Benson (786-7715)

AS OF JANUARY 27, 1988

BACKGROUND:

The Washington State government essentially self-insures for losses, including casualty losses.  However, the state does not set aside any reserves in anticipation of a casualty loss.  Current operating revenues or bond sales need to be used to cover the loss.  Casualty losses refer to losses resulting from sudden, unexpected or unusual causes such as fires, shipwrecks, lightning, etc.

SUMMARY:

Self-insurance reserve accounts are created in the state treasury and the motor vehicle fund.  The State Treasurer is to deposit into these accounts 0.5 percent of general fund-state revenues and 0.5 percent of motor vehicle fund revenues.

Money in the accounts may only be used for state casualty losses.  However, revenues in excess of 5 percent of the general fund-state and motor vehicle fund may be used for other purposes.  Also, by a 60 percent vote of the Legislature, funds of less than 5 percent may be used for other purposes.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:July 1, 1989