Administrative Rule Review Report  #AR08-068

Legislative Service Office

20-Aug-08

AGENCY: Department of Administration & Information, Risk Management Section.

DATE SUBMITTED: August 19, 2008.

SUBJECT: Chapters 1 through 5, Risk Management and State Self-Insurance Program.

NATURE OF RULES:                        Legislative and procedural

STATUTORY AUTHORITY:            W.S. 1-41-105

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION

SUBMITTED BY THE AGENCY TO LSO:      Apparently complete to date.

SUMMARY OF RULES:           The rules provide a procedure for filing and processing claims against the state self-insurance pool.   The rules set out the process for insurance procurement, property coverage and require an actuarial study every two years.

The rules also provide a format for claims against the self-insurance pool and a claim form.  The rules require cooperation from both the claimant and the state employee against whom the claim was filed.  The rules set forth a process for informing a state employee of a claim against them, and a process for settling claims.

FINDINGS:   The rules provide in Chapter 4, Section 2(a) that a claims adjuster employed by the office or under contract with the office is authorized to settle claims for an amount not to exceed five thousand dollars.  This provision is not authorized by statute and was specifically repealed by 1999 Wyoming Session Laws, Chapter 100.   The statutes, however, allow the risk manager to settle claims up to fifty thousand dollars and that authority is reflected in the rules.

Administrative agencies have only those powers that are expressly granted by statute.  State v. Bannon Energy Corp.,  999 P.2d 1306.  The rules otherwise appear to be within the scope of statutory authority and legislative intent.

STAFF RECOMMENDATION:             With respect to Chapter 4, Section 2(a) authorizing the settlement of claims by a claims adjuster, it is recommended that the Council recommend that the Governor use his line item veto authority under W.S. 16-3-103(d) to veto Chapter 4, Section 2(a) of the rule.  The agency has been contacted and is in agreement with this recommendation.  Otherwise, it is recommended that the rules be approved by the Council as submitted by the Agency.

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Lynda Cook

Staff Attorney

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David K. Gruver

Assistant Director