BILL REQ. #:  H-4883.1 

Read first time 01/25/08.   Referred to Committee on Insurance, Financial Services & Consumer Protection.

     AN ACT Relating to local government self-insurance programs; and amending RCW 48.62.011 and 48.62.101.

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

Sec. 1   RCW 48.62.011 and 1991 sp.s. c 30 s 1 are each amended to read as follows:
     This chapter is intended to provide the exclusive source of local government entity authority to individually or jointly self-insure risks, jointly purchase insurance or reinsurance, and to contract for risk management, claims, and administrative services. This chapter shall be liberally construed to grant local government entities maximum flexibility in self-insuring to the extent the self-insurance programs are operated in a safe and sound manner. This chapter is intended to require prior approval for the establishment of every individual local government self-insured employee health and welfare benefit program and every joint local government self-insurance program. In addition, this chapter is intended to require every local government entity that establishes a self-insurance program not subject to prior approval to notify the state of the existence of the program and to comply with the regulatory and statutory standards governing the management and operation of the programs as provided in this chapter. This chapter is not intended to authorize or regulate self-insurance of unemployment compensation under chapter 50.44 RCW, or industrial insurance under chapter 51.14 RCW. It is against the public policy of the state for a self-insurance program governed by this chapter to pay the cost of liability or defense costs for claims brought under the public records act, chapter 42.56 RCW, and the open public meetings act, chapter 42.30 RCW.

Sec. 2   RCW 48.62.101 and 2005 c 274 s 316 are each amended to read as follows:
     (1) All self-insurance programs governed by this chapter may provide for executive sessions in accordance with chapter 42.30 RCW to consider litigation and settlement of claims when it appears that public discussion of these matters would impair the program's ability to conduct its business effectively.
     (2) Notwithstanding any provision to the contrary contained in the public records act, chapter 42.56 RCW, in a claim or action against the state or a local government entity, no person is entitled to discover that portion of any funds or liability reserve established for purposes of satisfying a claim or cause of action, except that the reserve is discoverable in a supplemental or ancillary proceeding to enforce a judgment. All other records of individual or joint self-insurance programs are subject to disclosure in accordance with chapter 42.56 RCW.
     (3) In accordance with chapter 42.56 RCW, bargaining groups representing local government employees shall have reasonable access to information concerning the experience and performance of any health and welfare benefits program established for the benefit of such employees.
     (4) No self-insurance program governed by this chapter is able to
define the terms under which an entity complies with the public records act, chapter 42.56 RCW. No self-insurance program governed by this chapter may cancel or threaten to cancel insurance coverage based upon an entity's decision, in consultation with its attorneys, to release public records, including attorney communications, in compliance with the public records act, chapter 42.56 RCW.