Z-1528               _______________________________________________

                                                   HOUSE BILL NO. 1746

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Rasmussen, Peery, Wang, Taylor, Cole, Jacobsen, P. King, Schoon, D. Sommers and Dorn

Read first time 1/25/88 and referred to Committee on Education.

AN ACT Relating to pooled insurance arrangements for school districts and educational service districts; adding a new section to chapter 28A.58 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 28A.58 RCW to read as follows:

          Any school district or educational service district executing an agreement under chapter 39.34 RCW to form or join a pool or organization created for one or more of the insurance purposes under RCW 48.62.040(1) may enter into agreements for periods of up to five years, providing for, among other things:

          (1) The adjustment of premiums to reflect credits, refunds, assessments, or reassessments relating to risk and loss experience;

          (2) Remedies for and provision for collection of defaulted premium payments or other defaulted charges;

          (3) Continuing premium payments and other charges incurred as a result of the termination of insurance by a school district or educational service district;

          (4) Payment of charges incurred as a result of the complete termination of the agreement under chapter 39.34 RCW by the parties to the agreement; and

          (5) The authorization for the pool or organization to create and fund a liability insurance reserve for the payment of claims and other charges, and, in connection therewith, incur indebtedness, borrow money, and issue notes, bonds, or other evidence of indebtedness in the name of the pool or organization on behalf of the school district in accordance with the provisions of chapter 39.46 RCW.  For purposes of calculating the constitutional or statutory debt limits applicable to a school district, if debt is incurred to fund a liability insurance reserve it shall be apportioned among the school districts who are parties to the agreement such that each school district bears its proper share of the debt.  No indebtedness may be incurred on behalf of any school district which, together with other general nonvoted indebtedness of the school district, would result in a total indebtedness of the school district in excess of the limitation authorized by chapter 39.36 RCW to be incurred without the consent of the voters.

NEW SECTION. Sec. 2.     The provisions of this act are to be liberally construed to implement its purposes, are cumulative, and are in addition and supplemental to other powers granted to school districts and educational service districts.

NEW SECTION. Sec. 3.     If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.