S-1602 _______________________________________________
SENATE BILL NO. 5925
_______________________________________________
State of Washington 51st Legislature 1989 Regular Session
By Senator Matson
Read first time 2/16/89 and referred to Committee on Economic Development & Labor.
AN ACT Relating to the authority of cities and towns to form self-insurance groups for industrial insurance; and amending RCW 48.62.040 and 51.14.150.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. Section 4, chapter 256, Laws of 1979 ex. sess. as last amended by section 1, chapter 302, Laws of 1986 and RCW 48.62.040 are each amended to read as follows:
(1) Except as provided in subsection (2) of this section, the governing body of any one or more local governmental entities may, as an alternative or in addition to exercising any one or more of the powers granted in RCW 48.62.030 and 36.16.138, as now or hereafter amended, or any other provision of law, form together into or join a pool or organization for the joint purchasing of insurance, and/or joint self-insuring, and/or joint hiring or contracting for risk management services to the same extent that they may individually purchase insurance, self-insure, or hire or contract for risk management services.
(2)(a) No
organization of local governmental entities, other than local school districts
((and)), educational service districts, and cities and towns, that
is organized under this section for the purpose of self-insuring shall provide
any self-insurance other than liability and property insurance. For purposes of
this section, liability insurance shall include but not be limited to coverage
for claims arising from the tortious or negligent conduct of the local
government entity, its officers, employees, or agents thereof, or any error or
omission on the part of said local government entity, its officers, employees
or agents thereof as a result of which a claim may be made against the local
government entity.
(b) Local school districts and educational service districts may not organize under this section for the purpose of providing joint self-insured life, health, health care, accident, disability and salary protection or insurance, or any combination thereof, to the district employees, students, directors, or any of their dependents.
(3) The agreement to form such a pooling arrangement shall be made under chapter 39.34 RCW. Any pool or organization authorized to be formed by this section shall be subject to audit by the state auditor.
Sec. 2. Section 7, chapter 191, Laws of 1982 as amended by section 2, chapter 174, Laws of 1983 and RCW 51.14.150 are each amended to read as follows:
(1) Any two
or more employers which are school districts or educational service districts,
(2) any two or more employers which are hospitals, as defined in RCW
70.39.020(3), and are owned or operated by a state agency or municipal
corporation of this state, ((or)) (3) any two or more employers which
are hospitals, as defined in RCW 70.39.020(3), no one of which is owned or
operated by a state agency or municipal corporation of this state or subject to
RCW 70.39.150(3), or (4) any two or more employers which are cities and
towns, may enter into agreements to form self-insurance groups for the
purposes of this chapter: PROVIDED, That no more than one group may be formed
under subsection (2) of this section and no more than one group may be formed
under subsection (3) of this section. The self-insurance groups shall be
organized and operated under rules promulgated by the director under RCW
51.14.160. Such a self-insurance group shall be deemed an employer for the
purposes of this chapter, and may qualify as a self-insurer if it meets all the
other requirements of this chapter.