AN
ACT Relating to transferring statewide risk management functions from the
department of general administration to the office of financial management;
amending RCW 43.19.025, 43.19.1935, 43.19.1936, 43.19.19362, 43.19.19367,
43.19.19369, 4.92.006, 4.92.040, 4.92.100, 4.92.110, 4.92.130, 4.92.150,
4.92.160, 4.92.210, 4.92.220, 4.92.230, 4.92.240, 4.92.270, 39.59.010,
43.41.110, and 48.62.021; reenacting and amending RCW 43.19.1906; adding new
sections to chapter 43.41 RCW; creating new sections; recodifying RCW
43.19.1935, 43.19.1936, 43.19.19361, 43.19.19362, 43.19.19363, 43.19.19364,
43.19.19367, 43.19.19368, 43.19.19369, and 43.19.540; and providing an
effective date.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. It is
the intent of the legislature that state risk management should have increased
visibility at a policy level in state government. This increased visibility
can best be accomplished by the transfer of the statewide risk management
function from the department of general administration to the office of
financial management. The legislature intends that this transfer will result
in increasing visibility for the management and funding of statewide risk,
increasing executive involvement in risk management issues, and improving
statewide risk management accountability.
NEW
SECTION. Sec. 2. (1)
The powers, duties, and functions of statewide risk management are hereby
transferred from the department of general administration to the office of
financial management.
(2)(a)
All reports, documents, surveys, books, records, files, papers, or written
material in the possession of the department of general administration relating
to the risk management office shall be delivered to the custody of the office
of financial management. All cabinets, furniture, office equipment, motor
vehicles, and other tangible property employed by the risk management office in
the department of general administration shall be made available to the office
of financial management. All funds, credits, or other assets held by the risk
management office in the department of general administration shall be assigned
to the office of financial management.
(b)
If any question arises as to the transfer of any personnel, funds, books,
documents, records, papers, files, equipment, or other tangible property used
or held in the exercise of the powers and the performance of the duties and
functions transferred, the director of financial management shall make a determination
as to the proper allocation and certify the same to the state agencies
concerned.
(c)
Any appropriations made in connection with the powers, duties, and functions
transferred by this act shall, on the effective date of this section, be
transferred and credited to the office of financial management.
(3)
All employees of the risk management office in the department of general
administration are transferred to the jurisdiction of the office of financial
management. All employees classified under chapter 41.06 RCW, the state civil
service law, are assigned to the office of financial management to perform
their usual duties upon the same terms as formerly, without any loss of rights,
subject to any action that may be appropriate thereafter in accordance with the
laws and rules governing state civil service.
(4)
All rules and all pending business before the risk management office of the
department of general administration shall be continued and acted upon by the
office of financial management. All existing contracts and obligations shall
remain in full force and shall be performed by the office of financial
management.
(5)
The transfer of the powers, duties, functions, and personnel of the risk
management office of the department of general administration shall not affect
the validity of any act performed before the effective date of this section.
(6)
If apportionments of budgeted funds are required because of the transfers
directed by this section, the director of financial management shall certify the
apportionments to the agencies affected, the state auditor, and the state
treasurer. Each of these shall make the appropriate transfer and adjustments
in funds and appropriation accounts and equipment records in accordance with
the certification.
Sec.
3. RCW
43.19.025 and 2001 c 292 s 2 are each amended to read as follows:
The
general administration services account is created in the custody of the state
treasurer and shall be used for all activities previously budgeted and
accounted for in the following internal service funds: The motor transport
account, the general administration management fund, the general administration
facilities and services revolving fund, the central stores revolving fund, the
surplus property purchase revolving fund, ((the risk management account,))
and the energy efficiency services account. Only the director or the
director's designee may authorize expenditures from the account. The account
is subject to the allotment procedures under chapter 43.88 RCW.
Sec.
4. RCW
43.19.1906 and 1999 sp.s. c 1 s 606, 1999 c 195 s 1, and 1999 c 106 s 1 are
each reenacted and amended to read as follows:
Insofar
as practicable, all purchases and sales shall be based on competitive bids, and
a formal sealed bid procedure shall be used as standard procedure for all
purchases and contracts for purchases and sales executed by the state
purchasing and material control director and under the powers granted by RCW
43.19.190 through 43.19.1939. This requirement also applies to purchases and
contracts for purchases and sales executed by agencies, including educational
institutions, under delegated authority granted in accordance with provisions
of RCW 43.19.190 or under RCW 28B.10.029. However, formal sealed bidding is
not necessary for:
(1)
Emergency purchases made pursuant to RCW 43.19.200 if the sealed bidding
procedure would prevent or hinder the emergency from being met appropriately;
(2)
Purchases not exceeding thirty-five thousand dollars, or subsequent limits as
calculated by the office of financial management: PROVIDED, That the state
director of general administration shall establish procedures to assure that
purchases made by or on behalf of the various state agencies shall not be made
so as to avoid the thirty-five thousand dollar bid limitation, or subsequent
bid limitations as calculated by the office of financial management: PROVIDED
FURTHER, That the state purchasing and material control director is authorized
to reduce the formal sealed bid limits of thirty-five thousand dollars, or
subsequent limits as calculated by the office of financial management, to a
lower dollar amount for purchases by individual state agencies if considered
necessary to maintain full disclosure of competitive procurement or otherwise
to achieve overall state efficiency and economy in purchasing and material
control. Quotations from three thousand dollars to thirty-five thousand
dollars, or subsequent limits as calculated by the office of financial
management, shall be secured from at least three vendors to assure
establishment of a competitive price and may be obtained by telephone or
written quotations, or both. The agency shall invite at least one quotation
each from a certified minority and a certified women-owned vendor who shall
otherwise qualify to perform such work. Immediately after the award is made,
the bid quotations obtained shall be recorded and open to public inspection and
shall be available by telephone inquiry. A record of competition for all such
purchases from three thousand dollars to thirty-five thousand dollars, or
subsequent limits as calculated by the office of financial management, shall be
documented for audit purposes. Purchases up to three thousand dollars may be
made without competitive bids based on buyer experience and knowledge of the
market in achieving maximum quality at minimum cost;
(3)
Purchases which are clearly and legitimately limited to a single source of
supply and purchases involving special facilities, services, or market
conditions, in which instances the purchase price may be best established by
direct negotiation;
(4)
Purchases of insurance and bonds by the risk management ((office)) division
under RCW 43.19.1935 (as recodified by this act);
(5)
Purchases and contracts for vocational rehabilitation clients of the department
of social and health services: PROVIDED, That this exemption is effective only
when the state purchasing and material control director, after consultation
with the director of the division of vocational rehabilitation and appropriate
department of social and health services procurement personnel, declares that
such purchases may be best executed through direct negotiation with one or more
suppliers in order to expeditiously meet the special needs of the state's
vocational rehabilitation clients;
(6)
Purchases by universities for hospital operation or biomedical teaching or
research purposes and by the state purchasing and material control director, as
the agent for state hospitals as defined in RCW 72.23.010, and for health care
programs provided in state correctional institutions as defined in RCW
72.65.010(3) and veterans' institutions as defined in RCW 72.36.010 and
72.36.070, made by participating in contracts for materials, supplies, and
equipment entered into by nonprofit cooperative hospital group purchasing
organizations;
(7)
Purchases for resale by institutions of higher education to other than public
agencies when such purchases are for the express purpose of supporting
instructional programs and may best be executed through direct negotiation with
one or more suppliers in order to meet the special needs of the institution;
(8)
Purchases by institutions of higher education not exceeding thirty-five
thousand dollars: PROVIDED, That for purchases between three thousand dollars
and thirty-five thousand dollars quotations shall be secured from at least
three vendors to assure establishment of a competitive price and may be
obtained by telephone or written quotations, or both. For purchases between
three thousand dollars and thirty-five thousand dollars, each institution of higher
education shall invite at least one quotation each from a certified minority
and a certified women-owned vendor who shall otherwise qualify to perform such
work. A record of competition for all such purchases made from three thousand
to thirty-five thousand dollars shall be documented for audit purposes; and
(9)
Negotiation of a contract by the department of transportation, valid until June
30, 2001, with registered tow truck operators to provide roving service patrols
in one or more Washington state patrol tow zones whereby those registered tow
truck operators wishing to participate would cooperatively, with the department
of transportation, develop a demonstration project upon terms and conditions
negotiated by the parties.
Beginning
on July 1, 1995, and on July 1 of each succeeding odd-numbered year, the dollar
limits specified in this section shall be adjusted as follows: The office of
financial management shall calculate such limits by adjusting the previous
biennium's limits by the appropriate federal inflationary index reflecting the
rate of inflation for the previous biennium. Such amounts shall be rounded to
the nearest one hundred dollars. However, the three thousand dollar figure in
subsections (2) and (8) of this section may not be adjusted to exceed five
thousand dollars.
Sec.
5. RCW
43.19.1935 and 1998 c 105 s 8 are each amended to read as follows:
As
a means of providing for the procurement of insurance and bonds on a volume
rate basis, the director ((of general administration through the risk
management office)) shall purchase or contract for the needs of state
agencies in relation to all such insurance and bonds: PROVIDED, That authority
to purchase insurance may be delegated to state agencies. Insurance in force
shall be reported to the risk management ((office)) division
periodically under rules established by the director. Nothing contained in
this section shall prohibit the use of licensed agents or brokers for the
procurement and service of insurance.
The
amounts of insurance or bond coverage shall be as fixed by law, or if not fixed
by law, such amounts shall be as fixed by the director ((of the department
of general administration)).
The
premium cost for insurance acquired and bonds furnished shall be paid from
appropriations or other appropriate resources available to the state agency or
agencies for which procurement is made, and all vouchers drawn in payment
therefor shall bear the written approval of the risk management ((office))
division prior to the issuance of the warrant in payment therefor.
Where deemed advisable the premium cost for insurance and bonds may be paid by
the ((general administration services)) risk management
administration account which shall be reimbursed by the agency or agencies
for which procurement is made.
Sec.
6. RCW
43.19.1936 and 1985 c 188 s 5 are each amended to read as follows:
The
director ((of general administration)), through the risk management ((office))
division, may purchase, or contract for the purchase of, property and
liability insurance for any municipality upon request of the municipality.
As
used in this section, "municipality" means any city, town, county,
special purpose district, municipal corporation, or political subdivision of
the state of Washington.
Sec.
7. RCW
43.19.19362 and 1998 c 245 s 55 are each amended to read as follows:
There is hereby created a risk management ((office)) division
within the ((department of general administration)) office of
financial management. The director ((of general administration))
shall implement the risk management policy in RCW 43.19.19361 (as recodified
by this act) through the risk management ((office)) division.
The director ((of general administration)) shall appoint a risk manager
to supervise the risk management ((office)) division. The risk
management ((office)) division shall make recommendations when
appropriate to state agencies on the application of prudent safety, security,
loss prevention, and loss minimization methods so as to reduce or avoid risk or
loss.
Sec.
8. RCW
43.19.19367 and 1988 c 281 s 6 are each amended to read as follows:
The director ((of general administration)), through the risk
management ((office)) division, shall receive and enforce bonds
posted pursuant to RCW 39.59.010 (3) and (4).
Sec.
9. RCW
43.19.19369 and 1989 c 419 s 11 are each amended to read as follows:
The
((department of general administration)) office shall conduct
periodic actuarial studies to determine the amount of money needed to
adequately fund the liability account.
Sec.
10. RCW
4.92.006 and 1989 c 419 s 2 are each amended to read as follows:
As
used in this chapter:
(1)
"((Department)) Office" means the ((department of
general administration)) office of financial management.
(2)
"Director" means the director of financial management.
(3)
"Risk management division" means the division of the office of
financial management that carries out the powers and duties under this chapter
relating to claim filing, claims administration, and claims payment.
(4)
"Risk manager" means the person supervising the ((office of))
risk management ((in the department of general administration)) division.
Sec.
11. RCW
4.92.040 and 1999 c 163 s 3 are each amended to read as follows:
(1)
No execution shall issue against the state on any judgment.
(2)
Whenever a final judgment against the state is obtained in an action on a claim
arising out of tortious conduct, the claim shall be paid from the liability
account.
(3)
Whenever a final judgment against the state shall have been obtained in any
other action, the clerk of the court shall make and furnish to the risk
management ((office)) division a duly certified copy of such
judgment; the risk management ((office)) division shall thereupon
audit the amount of damages and costs therein awarded, and the same shall be
paid from appropriations specifically provided for such purposes by law.
(4)
Final judgments for which there are no provisions in state law for payment
shall be transmitted by the risk management ((office)) division
to the senate and house of representatives committees on ways and means as
follows:
(a)
On the first day of each session of the legislature, the risk management ((office))
division shall transmit judgments received and audited since the
adjournment of the previous session of the legislature.
(b)
During each session of legislature, the risk management ((office)) division
shall transmit judgments immediately upon completion of audit.
(5)
All claims, other than judgments, made to the legislature against the state of
Washington for money or property, shall be accompanied by a statement of the
facts on which such claim is based and such evidence as the claimant intends to
offer in support of the claim and shall be filed with the risk management ((office))
division, which shall retain the same as a record. All claims of two
thousand dollars or less shall be approved or rejected by the risk management
((office)) division, and if approved shall be paid from
appropriations specifically provided for such purpose by law. Such decision,
if adverse to the claimant in whole or part, shall not preclude the claimant
from seeking relief from the legislature. If the claimant accepts any part of
his or her claim which is approved for payment by the risk management ((office))
division, such acceptance shall constitute a waiver and release of the
state from any further claims relating to the damage or injury asserted in the
claim so accepted. The risk management ((office)) division shall
submit to the house and senate committees on ways and means, at the beginning
of each regular session, a comprehensive list of all claims paid pursuant to
this subsection during the preceding year. For all claims not approved by the
risk management ((office)) division, the risk management ((office))
division shall recommend to the legislature whether such claims should
be approved or rejected. Recommendations shall be submitted to the senate and
house of representatives committees on ways and means not later than the
thirtieth day of each regular session of the legislature. Claims which cannot
be processed for timely submission of recommendations shall be held for
submission during the following regular session of the legislature. The
recommendations shall include, but not be limited to:
(a)
A summary of the facts alleged in the claim, and a statement as to whether
these facts can be verified by the risk management ((office)) division;
(b)
An estimate by the risk management ((office)) division of the
value of the loss or damage which was alleged to have occurred;
(c)
An analysis of the legal liability, if any, of the state for the alleged loss
or damage; and
(d)
A summary of equitable or public policy arguments which might be helpful in
resolving the claim.
(((5)
[(6)])) (6) The legislative committees to whom such claims are
referred shall make a transcript, recording, or statement of the substance of
the evidence given in support of such a claim. If the legislature approves a
claim the same shall be paid from appropriations specifically provided for such
purpose by law.
(((6)
[(7)])) (7) Subsections (3) through (((5))) (6) of
this section do not apply to judgments or claims against the state housing
finance commission created under chapter 43.180 RCW.
Sec.
12. RCW
4.92.100 and 1986 c 126 s 7 are each amended to read as follows:
All
claims against the state for damages arising out of tortious conduct shall be
presented to and filed with the risk management ((office)) division.
All such claims shall be verified and shall accurately describe the conduct and
circumstances which brought about the injury or damage, describe the injury or
damage, state the time and place the injury or damage occurred, state the names
of all persons involved, if known, and shall contain the amount of damages
claimed, together with a statement of the actual residence of the claimant at
the time of presenting and filing the claim and for a period of six months
immediately prior to the time the claim arose. If the claimant is
incapacitated from verifying, presenting, and filing the claim or if the
claimant is a minor, or is a nonresident of the state, the claim may be
verified, presented, and filed on behalf of the claimant by any relative,
attorney, or agent representing the claimant.
With
respect to the content of such claims this section shall be liberally construed
so that substantial compliance will be deemed satisfactory.
Sec.
13. RCW
4.92.110 and 1989 c 419 s 14 are each amended to read as follows:
No
action shall be commenced against the state for damages arising out of tortious
conduct until sixty days have elapsed after the claim is presented to and filed
with the risk management ((office)) division. The applicable
period of limitations within which an action must be commenced shall be tolled
during the sixty-day period.
Sec.
14. RCW
4.92.130 and 1999 c 163 s 1 are each amended to read as follows:
A
liability account in the custody of the treasurer is hereby created as a
nonappropriated account to be used solely and exclusively for the payment of
liability settlements and judgments against the state under 42 U.S.C. Sec. 1981
et seq. or for the tortious conduct of its officers, employees, and volunteers
and all related legal defense costs.
(1)
The purpose of the liability account is to: (a) Expeditiously pay legal
liabilities and defense costs of the state resulting from tortious conduct; (b)
promote risk control through a cost allocation system which recognizes agency
loss experience, levels of self-retention, and levels of risk exposure; and (c)
establish an actuarially sound system to pay incurred losses, within defined limits.
(2)
The liability account shall be used to pay claims for injury and property
damages and legal defense costs exclusive of agency-retained expenses otherwise
budgeted.
(3)
No money shall be paid from the liability account, except for defense costs, unless
all proceeds available to the claimant from any valid and collectible liability
insurance shall have been exhausted and unless:
(a)
The claim shall have been reduced to final judgment in a court of competent
jurisdiction; or
(b)
The claim has been approved for payment.
(4)
The liability account shall be financed through annual premiums assessed to
state agencies, based on sound actuarial principles, and shall be for liability
coverage in excess of agency-budgeted self-retention levels.
(5)
Annual premium levels shall be determined by the risk manager, with the
consultation and advice of the risk management advisory committee ((and
concurrence from the office of financial management)). An actuarial study
shall be conducted to assist in determining the appropriate level of funding.
(6)
Disbursements for claims from the liability account shall be made to the
claimant, or to the clerk of the court for judgments, upon written request to
the state treasurer from the risk manager.
(7)
The director ((of the office of financial management)) may direct
agencies to transfer moneys from other funds and accounts to the liability
account if premiums are delinquent.
(8)
The liability account shall not exceed fifty percent of the actuarial value of
the outstanding liability as determined annually by the ((office of))
risk management division. If the account exceeds the maximum amount
specified in this section, premiums may be adjusted by the ((office of))
risk management division in order to maintain the account balance at the
maximum limits. If, after adjustment of premiums, the account balance remains
above the limits specified, the excess amount ((will)) shall be
prorated back to the appropriate funds.
Sec.
15. RCW
4.92.150 and 1989 c 403 s 4 are each amended to read as follows:
After commencement of an action in a court of competent
jurisdiction upon a claim against the state, or any of its officers, employees,
or volunteers arising out of tortious conduct or pursuant to 42 U.S.C. Sec.
1981 et seq., or against a foster parent that the attorney general is defending
pursuant to RCW 4.92.070, or upon petition by the state, the attorney general,
with the prior approval of the risk management ((office)) division
and with the approval of the court, following such testimony as the court may
require, may compromise and settle the same and stipulate for judgment against
the state, the affected officer, employee, volunteer, or foster parent.
Sec.
16. RCW
4.92.160 and 1999 c 163 s 4 are each amended to read as follows:
Payment
of claims and judgments arising out of tortious conduct or pursuant to 42
U.S.C. Sec. 1981 et seq. shall not be made by any agency or department of state
government with the exception of the risk management ((office)) division,
and that ((office)) division shall authorize and direct the
payment of moneys only from the liability account whenever:
(1)
The head or governing body of any agency or department of state or the designee
of any such agency certifies to the risk management ((office)) division
that a claim has been settled; or
(2)
The clerk of court has made and forwarded a certified copy of a final judgment
in a court of competent jurisdiction and the attorney general certifies that
the judgment is final and was entered in an action on a claim arising out of
tortious conduct or under and pursuant to 42 U.S.C. Sec. 1981 et seq. Payment
of a judgment shall be made to the clerk of the court for the benefit of the judgment
creditors. Upon receipt of payment, the clerk shall satisfy the judgment
against the state.
Sec.
17. RCW
4.92.210 and 1989 c 419 s 3 are each amended to read as follows:
(1)
All liability claims arising out of tortious conduct or under 42 U.S.C. Sec.
1981 et seq. that the state of Washington or any of its officers, employees, or
volunteers would be liable for shall be filed with the ((office of))
risk management((, department of general administration, unless specifically
delegated to other state agencies under state statute)) division.
(2)
A centralized claim tracking system shall be maintained to provide agencies
with accurate and timely data on the status of liability claims. Information
in this claim file, other than the claim itself, shall be privileged and
confidential.
(3)
Standardized procedures shall be established for filing, reporting, processing,
and adjusting claims, which includes the use of qualified claims management
personnel.
(4)
All claims ((will)) shall be reviewed by the ((office of))
risk management division to determine an initial valuation, to delegate
to the appropriate office to investigate, negotiate, compromise, and settle the
claim, or to retain that responsibility on behalf of and with the assistance of
the affected state agency.
(5)
All claims that result in a lawsuit ((will)) shall be forwarded
to the attorney general's office. Thereafter the attorney general and the ((office
of)) risk management division shall collaborate in the
investigation, denial, or settlement of the claim.
(6)
Reserves shall be established for recognizing financial liability and
monitoring effectiveness. The valuation of specific claims against the state
shall be privileged and confidential.
(7)
All settlements shall be approved by the responsible agencies, or their
designees, prior to settlement.
Sec.
18. RCW
4.92.220 and 1998 c 105 s 2 are each amended to read as follows:
(1)
The risk management administration account is created in the custody of the
state treasurer. All receipts from appropriations and assessments shall be
deposited into the account. Only the director or the director's designee may
authorize expenditures from the account. The account is subject to allotment
procedures under chapter 43.88 RCW, but no appropriation is required for
expenditures.
(2)
The ((general administration services)) risk management
administration account is to be used for the payment of costs related to:
(a)
The appropriated administration of liability, property, and vehicle claims,
including investigation, claim processing, negotiation, and settlement, and
other expenses relating to settlements and judgments against the state not
otherwise budgeted; and
(b)
The nonappropriated pass-through cost associated with the purchase of liability
and property insurance, including catastrophic insurance, subject to policy
conditions and limitations determined by the risk manager.
(((2)))
(3) The ((general administration services)) risk management
administration account's appropriation for risk management shall be financed
through a combination of direct appropriations and assessments to state
agencies.
Sec.
19. RCW
4.92.230 and 1989 c 419 s 7 are each amended to read as follows:
(1)
The director ((of the department of general administration)) shall
establish an ongoing risk management advisory committee. Members of the
committee may include but shall not be limited to ((representatives)) directors
or deputy directors of state agencies, presidents or vice-presidents of
institutions of higher education, or representatives of local
government((,)) or the private sector.
(2)
The director ((of the department of general administration)) or his
or her designee shall serve as chair. The committee shall meet upon call
of the chairperson and shall adopt rules for the conduct of its business.
(3)
The risk management advisory committee ((will)) shall provide
guidance in:
(a)
Determining appropriate roles, responsibilities of the ((office of))
risk management division, and policies regarding statewide risk
management;
(b)
Establishing premiums or other cost allocation systems;
(c)
Determining appropriate programs and coverages for self-insurance versus
insurance;
(d)
Developing risk retention pools; and
(e)
Preparing recommendations for containment of risk exposures.
Sec.
20. RCW
4.92.240 and 1989 c 419 s 8 are each amended to read as follows:
The
director ((of general administration)) has the power to adopt rules
necessary to carry out the intent of this chapter.
Sec.
21. RCW
4.92.270 and 1989 c 419 s 15 are each amended to read as follows:
The
risk manager shall develop procedures for standard indemnification agreements
for state agencies to use whenever the agency agrees to indemnify, or be
indemnified by, any person or party. The risk manager shall also develop
guidelines for the use of indemnification agreements by state agencies. On
request of the risk manager, an agency shall forward to the risk management ((office))
division for review and approval any contract or agreement containing an
indemnification agreement.
Sec.
22. RCW
39.59.010 and 1988 c 281 s 1 are each amended to read as follows:
Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter.
(1)
"Bond" means any agreement which may or may not be represented by a
physical instrument, including but not limited to bonds, notes, warrants, or
certificates of indebtedness, that evidences an obligation under which the
issuer agrees to pay a specified amount of money, with or without interest, at
a designated time or times either to registered owners or bearers.
(2)
"Local government" means any county, city, town, special purpose
district, political subdivision, municipal corporation, or quasi-municipal
corporation, including any public corporation, authority, or other
instrumentality created by such an entity.
(3)
"Money market fund" means a mutual fund the portfolio which consists
of only bonds having maturities or demand or tender provisions of not more than
one year, managed by an investment advisor who has posted with the risk
management ((office)) division of the ((department of general
administration)) office of financial management a bond or other
similar instrument in the amount of at least five percent of the amount
invested in the fund pursuant to RCW 39.59.030 (2) or (3).
(4)
"Mutual fund" means a diversified mutual fund registered with the
federal securities and exchange commission and which is managed by an
investment advisor with assets under management of at least five hundred
million dollars and with at least five years' experience in investing in bonds
authorized for investment by this chapter and who has posted with the risk
management ((office)) division of the ((department of general
administration)) office of financial management a bond or other
similar instrument in the amount of at least five percent of the amount
invested in the fund pursuant to RCW 39.59.030(1).
(5) "State" includes a state, agencies, authorities, and
instrumentalities of a state, and public corporations created by a state or
agencies, authorities, or instrumentalities of a state.
Sec.
23. RCW
43.41.110 and 1981 2nd ex.s. c 4 s 13 are each amended to read as follows:
The
office of financial management shall:
(1)
Provide technical assistance to the governor and the legislature in identifying
needs and in planning to meet those needs through state programs and a plan for
expenditures.
(2)
Perform the comprehensive planning functions and processes necessary or
advisable for state program planning and development, preparation of the
budget, inter-departmental and inter-governmental coordination and cooperation,
and determination of state capital improvement requirements.
(3)
Provide assistance and coordination to state agencies and departments in their
preparation of plans and programs.
(4)
Provide general coordination and review of plans in functional areas of state
government as may be necessary for receipt of federal or state funds.
(5)
Participate with other states or subdivisions thereof in interstate planning.
(6)
Encourage educational and research programs that further planning and provide
administrative and technical services therefor.
(7)
Carry out the provisions of RCW 43.62.010 through 43.62.050 relating to the
state census.
(8)
Carry out the provisions of this chapter and chapter 4.92 RCW relating to
risk management.
(9)
Be the official state participant in the federal-state cooperative program for
local population estimates and as such certify all city and county special
censuses to be considered in the allocation of state and federal revenues.
(((9)))
(10) Be the official state center for processing and dissemination of
federal decennial or quinquennial census data in cooperation with other state
agencies.
(((10)))
(11) Be the official state agency certifying annexations,
incorporations, or disincorporations to the United States bureau of the census.
(((11)))
(12) Review all United States bureau of the census population estimates
used for federal revenue sharing purposes and provide a liaison for local
governments with the United States bureau of the census in adjusting or
correcting revenue sharing population estimates.
(((12)))
(13) Provide fiscal notes depicting the expected fiscal impact of
proposed legislation in accordance with chapter 43.88A RCW.
(((13)))
(14) Be the official state agency to estimate and manage the cash flow
of all public funds as provided in chapter 43.88 RCW. To this end, the office
shall adopt such rules as are necessary to manage the cash flow of public
funds.
Sec.
24. RCW
48.62.021 and 1999 c 153 s 60 are each amended to read as follows:
Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter.
(1)
"Local government entity" or "entity" means every unit of
local government, both general purpose and special purpose, and includes, but
is not limited to, counties, cities, towns, port districts, public utility
districts, water-sewer districts, school districts, fire protection districts,
irrigation districts, metropolitan municipal corporations, conservation
districts, and other political subdivisions, governmental subdivisions,
municipal corporations, and quasi-municipal corporations.
(2)
"Risk assumption" means a decision to absorb the entity's financial
exposure to a risk of loss without the creation of a formal program of advance
funding of anticipated losses.
(3)
"Self-insurance" means a formal program of advance funding and
management of entity financial exposure to a risk of loss that is not
transferred through the purchase of an insurance policy or contract.
(4)
"Health and welfare benefits" means a plan or program established by
a local government entity or entities for the purpose of providing its employees
and their dependents, and in the case of school districts, its district
employees, students, directors, or any of their dependents, with health care,
accident, disability, death, and salary protection benefits.
(5)
"Property and liability risks" includes the risk of property damage
or loss sustained by a local government entity and the risk of claims arising
from the tortious or negligent conduct or any error or omission of the local
government entity, its officers, employees, agents, or volunteers as a result
of which a claim may be made against the local government entity.
(6)
"State risk manager" means the ((state)) risk manager of the
((division of)) risk management division within the ((department
of general administration)) office of financial management.
NEW
SECTION. Sec. 25. RCW
43.19.1935, 43.19.1936, 43.19.19361, 43.19.19362, 43.19.19363, 43.19.19364,
43.19.19367, 43.19.19368, 43.19.19369, and 43.19.540 are each recodified as
sections in chapter 43.41 RCW.
NEW
SECTION. Sec. 26. This
act shall take effect July 1, 2002.
