SENATE BILL REPORT

SHB 2933

BYHouse Committee on Local Government (originally sponsored by Representatives Ferguson, Haugen and Crane)

Studying local government self insurance pools.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 19, 1990

Majority Report:  Do pass.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; DeJarnatt, Patrick, Sutherland.

Senate Staff:Steve Nelsen (786-7464)

                  February 19, 1990

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 19, 1990

BACKGROUND:

Most municipal corporations are authorized under current law to establish self- insurance pools for liability and property insurance.  School districts are also allowed to establish self-funded plans for employees' loss of time and health benefits.  The State Auditor's Office has recently identified a number of potential problems in the operation of these self-insurance pools.  It is recommended that a study of these municipal self- insurance pools be conducted in order to prevent their potential collapse.

SUMMARY:

A joint select committee is created to study local government self-insurance pools authorized by statute and report its findings and any recommendations for legislation to the Legislature by October 1, 1990.  The joint select committee consists of four senators and four representatives, two from each of the major caucuses.  The president of the Senate appoints the Senate members and the speaker of the House appoints the House members.

The study must include input from existing municipal insurance pools, various associations of local governments, the State Risk Manager, the Washington Chapter of the Public Risk Insurance Managers Association, the Office of the Superintendent of Public Instruction, the Department of Employment Security, the Department of Labor and Industries, the State Auditor, the State Actuary, and the Office of the Attorney General.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Appointments by Legislature Required:     The joint select committee consists of four senators and four representatives, two from each of the major caucuses.  The president of the Senate appoints the Senate members and the speaker of the House appoints the House members.

Senate Committee - Testified: Dick Jansen, Division of Risk Management, Department of General Administration (pro); Jack Heinricher, State Auditor's Office (pro); Steve Lindstrom, Washington State Transit Association (pro); Jim Boldt, Washington Cities Insurance Authority (pro); Jim Justin, Association of Washington Cities (pro)