Bill
SB 5107
Requires local govs to provide UIM for injuries/damage to employees in gov vehicles, min $25k per person/$50k per accident, effective Jan 1, 2026.
SB 5107 — Underinsured Motorist Coverage for Local Government Employees
Overview
- Purpose: Require local governments to provide underinsured motorist (UIM) coverage for injuries or property damage arising from accidents involving government-owned vehicles operated or occupied by local government officers, employees, or agents during the course of employment. The bill aims to ensure that government workers are protected when involved in crashes with underinsured, hit-and-run, or phantom vehicles.
- Status: Public hearing in the Senate Committee on Local Government (scheduled). Introduced December 23, 2024; first reading January 13, 2025; referred to Local Government. Public hearing set for January 20, 2025 at 1:30 PM.
Key Provisions
- New requirement (Sec. 1): Every local government must provide UIM coverage for motor vehicles owned by the local government and operated or occupied by an officer, employee, or agent in the course of employment. Coverage protects those legally entitled to recover damages from an underinsured motor vehicle, hit-and-run vehicle, or phantom vehicle due to bodily injury, death, or personal property damage. Coverage does not apply to third-party occupants of government-owned vehicles.
- Coverage limits (Sec. 1): Minimum limits of $25,000 per person and $50,000 per accident.
- Methods of providing coverage (Sec. 1): Coverage may be provided through private insurance contracts, self-insurance or self-funding (per RCW 48.62), or other lawful means.
- Definitions (Sec. 1):
- Local government includes cities, counties, subdivisions, municipal corporations, quasi-municipal corporations, and special districts.
- Phantom vehicle, third-party occupant, underinsured coverage, and underinsured motor vehicle adopt definitions from RCW 48.22.030.
- Legislative amendments to RCWs (Sec. 2):
- Amends RCW 48.62.031 and related provisions (2019 c 26 s 3) to expand authority for local entities to self-insure, form joint self-insurance programs, or jointly purchase insurance/reinsurance for property, liability, underinsured coverage, and health benefits, and to contract for risk management, claims handling, and related services.
- Joint self-insurance programs may be formed under RCW 39.34; such programs can create separate legal/administrative entities.
- Audits: Each self-insurance program is subject to state auditor review.
- Program powers: Risk management, legal defense services, coordination with the state insurance commissioner and risk manager, joint insurance/purchase of coverage, funding/ reserves, and other necessary functions to carry out the program.
- Service of process: The risk manager acts as attorney for service of process; designation of contact for service must be filed and kept current; service upon the risk manager constitutes service on the program.
- Documentation: Written reports indicating the class of risk to be available for state auditor inspection.
- Effective date (Sec. 3): January 1, 2026.
Who Is Affected
- Local governments in Washington (cities, counties, municipal or special districts, and other subdivisions).
- Local government employees, officers, and agents using government-owned vehicles in the line of duty.
- Insurance carriers and self-insurance programs, including potential joint self-insurance arrangements.
Timeline and Next Steps
- Prefiled: December 23, 2024
- First reading: January 13, 2025
- Public hearing: January 20, 2025 (Senate Local Government Committee, 1:30 PM)
- If advanced, potential committee amendments and floor actions follow before final passage and enactment.
Impact Considerations
- Financial: Local governments must ensure compliant UIM coverage, with a defined floor of $25k/$50k, which could affect budgeting and procurement strategies.
- Administrative: Opens pathway for self-insurance and joint programs; increases oversight via state auditor and risk management processes.
- Protective effect: Extends UIM protections to government employees in crashes arising from underinsured, phantom, or hit-and-run vehicles involving government vehicles.
Compiled from official sources — confirm details with the bill’s official record.
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