Subject of Possible Rule Making: Rule making related to requirements of and governing the management and operation of the program pursuant to chapter 314, Laws of 2009 (SSB 5665), the affordable housing entity property and liability joint self-insurance programs.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: Section 6, Chapter 314, Laws of 2009 (SSB 5665).

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: SSB 5665, enacted in the 2009 legislative session (chapter 314, Laws of 2009), provides authority for affordable housing entities to jointly self-insure property and liability risks in a multiple state risk-sharing program regulated by the state risk manager. SSB 5665, section 6 requires the state risk manager to adopt rules which include standards for management, operations, and solvency, including frequency of actuarial analyses and claims audits. The rules are to include standards for claims management procedures. The rules must also include standards for contracts between joint self-insurance programs and private business, including standards for contracts between third party administrators and joint self-insurance programs.

     One of the outcomes of this rule-making process will be to create a new chapter under office of financial management (OFM) TITLE 82 WAC, where all the rules related to self-insurance programs are found.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: OFM will communicate and coordinate with the office of insurance commissioner, which has an interest in the rules governing joint self-insurance programs, as necessary.

     Process for Developing New Rule: OFM will engage in early solicitation of comments and recommendations from stakeholders and affected parties. Draft rules will be presented for discussion at stakeholder meetings. OFM will provide draft rules to all joint property and liability self-insurance programs currently regulated by the state risk manager and solicit comments and recommendations prior to publication of the rules for the rule-making hearing.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. See above or for more information contact Shannon Stuber, Program Administrator, Local Government Self-Insurance Program, Office of Financial Management, P.O. Box 41027, Olympia, WA 98504-1027, phone (360) 902-7311, or e-mail shannon.stuber@ofm.wa.gov.

June 2, 2009

Roselyn Marcus

Director of Legal Affairs

Rules Coordinator

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