S-3994.2  _______________________________________________

 

                         SENATE BILL 6687

          _______________________________________________

 

State of Washington      56th Legislature     2000 Regular Session

 

By Senators Prentice, Winsley, McDonald and T. Sheldon

 

Read first time 01/24/2000.  Referred to Committee on State & Local Government.

Allowing port districts to acquire insurance coverage.


    AN ACT Relating to insurance coverage for port districts; amending RCW 48.30.270; and adding a new section to chapter 53.08 RCW.

 

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

 

    NEW SECTION.  Sec. 1.  A new section is added to chapter 53.08 RCW to read as follows:

    Each port district shall determine risks, hazards, and liabilities associated with facilities and projects authorized under this chapter in order to obtain insurance consistent with these determinations.  This insurance may include any types of insurance covering, and for the benefit of, one or more parties with whom the port district contracts for any purpose, and insurance for the benefit of its commissioners, commissions, and employees to insure against liability for acts or omissions while performing or in good faith purporting to perform their official duties.  All insurance obtained for port district projects may be acquired by bid or by negotiation.  In order to allow the port district flexibility to secure appropriate insurance by negotiation, the port district is exempt from RCW 48.30.270 for projects in excess of twenty-five million dollars.

 

    Sec. 2.  RCW 48.30.270 and 1983 2nd ex.s. c 1 s 6 are each amended to read as follows:

    (1) No officer or employee of this state, or of any public agency, public authority or public corporation except a public corporation or public authority created pursuant to agreement or compact with another state, and no person acting or purporting to act on behalf of such officer or employee, or public agency or public authority or public corporation, shall, with respect to any public building or construction contract which is about to be, or which has been competitively bid, require the bidder to make application to, or to furnish financial data to, or to obtain or procure, any of the surety bonds or contracts of insurance specified in connection with such contract, or specified by any law, general, special or local, from a particular insurer or agent or broker.

    (2) No such officer or employee or any person, acting or purporting to act on behalf of such officer or employee shall negotiate, make application for, obtain or procure any of such surety bonds or contracts of insurance, except contracts of insurance for builder's risk or owner's protective liability, which can be obtained or procured by the bidder, contractor or subcontractor.

    (3) This section shall not be construed to prevent the exercise by such officer or employee on behalf of the state or such public agency, public authority, or public corporation of its right to approve the form, sufficiency or manner or execution of the surety bonds or contracts of insurance furnished by the insurer selected by the bidder to underwrite such bonds, or contracts of insurance.

    (4) Any provisions in any invitation for bids, or in any of the contract documents, in conflict with this section are declared to be contrary to the public policy of this state.

    (5) A violation of this section shall be subject to the penalties provided by RCW 48.01.080.

    (6) This section shall not apply to:

    (a) The public nonprofit corporation authorized under RCW 67.40.020; or

    (b) Port districts formed under chapter 53.04 RCW.

 


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