S-627                 _______________________________________________

                                                   SENATE BILL NO. 3332

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Bauer, Zimmerman, Thompson, Barr, Patterson and Stratton

Read first time 1/25/85 and referred to Committee on Education.

AN ACT Relating to local government insurance transactions; and amending RCW 48.62.040.

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

        Sec. 1.  Section 4, chapter 256, Laws of 1979 ex. sess. and RCW 48.62.040 are each amended to read as follows:

          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((:  PROVIDED, That no organization of local governmental entities that is organized under RCW 48.62.040 for the purpose of self-insuring shall provide any self-insurance other than liability 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)).  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.