Colorado § 24-30-1510.5 - Self-insured property fund - creation - authorized and unauthorized payments - executive director authorized to make payments.

§ 24-30-1510.5. Self-insured property fund - creation - authorized and unauthorized payments - executive director authorized to make payments.

(1) (a) There is hereby created in the state treasury a fund to be known as the self-insured property fund, which shall consist of all moneys that may be appropriated thereto by the general assembly or which may be otherwise made available to it by the general assembly. Moneys "otherwise made available" shall be deemed to include transfers of moneys to the fund authorized in the general appropriation act. All interest earned from the investment of moneys in the self-insured property fund shall be credited to the self-insured property fund and become a part thereof. The moneys in the fund are hereby continuously appropriated for the purposes of the self-insured property fund other than the direct and indirect administrative costs of operating the risk management system. The general assembly shall make annual appropriations from the fund for the direct and indirect administrative costs of operating the risk management system that are attributable to the operation of the self-insured property fund. At the end of any fiscal year, all unexpended and unencumbered moneys in the fund shall remain therein and shall not be credited or transferred to the general fund or any other fund.

(b) Notwithstanding any provision of this section to the contrary, on June 1, 2009, the state treasurer shall deduct one million two hundred ninety-five thousand fifty-five dollars from the self-insured property fund and transfer such sum to the general fund.

(2) The self-insured property fund shall maintain reserves for incurred but unpaid loss or damage claims to state property. The self-insured property fund shall maintain reserves to provide for the contingency that the reserves set aside in the fund to meet estimated expenses are inadequate to cover the actual expenses realized. The executive director shall recommend the amount of money that is required to maintain adequate reserves. Adequate reserves shall be maintained in the self-insured property fund subject to available appropriations made by the general assembly in its discretion.

(3) Expenditures shall be made out of the self-insured property fund in accordance with subsection (1) of this section only for the following purposes:

(a) To pay claims for loss or damage to state property subject to the following conditions:

(I) Claims for loss or damage to real property shall be based on replacement cost;

(II) Claims for loss or damage to personal property shall be based on actual cash value;

(III) The loss or damage to property on which the claim is based shall have been caused by one or more of the hazards covered under the self-insured property fund as set forth in subsection (5) of this section;

(IV) The principal state department shall pay a five-thousand-dollar deductible for each occurrence;

(b) To procure and pay premiums for one or more policies of insurance purchased pursuant to this part 15 to protect against loss or damage to state property;

(c) To pay the administrative costs of operating the risk management system.

(4) Moneys in the self-insured property fund shall not be used to pay the following:

(a) Claims for loss or damage to state property which are specifically insured by a commercial insurance policy;

(b) Claims for extra expense and normal wear and tear.

(5) The self-insured property fund shall provide self-insurance for loss or damage to state property due to the following hazards:

(a) Fire and lightning; except that coverage shall not be provided if the state agency does not report such incident or occurrence to the appropriate fire department;

(b) Windstorm and hail;

(c) Debris removal in connection with a hazard that is covered under the self-insured property fund;

(d) Explosion;

(e) Sudden and accidental damage from smoke;

(f) Vandalism and malicious mischief;

(g) Theft of state-owned property; except that coverage shall not be provided if the state agency does not report such theft to the appropriate law enforcement agency;

(h) Damage from the weight of ice or snow; except that outdoor equipment, awnings, fences, pavements, patios, swimming pools, wharves, and docks are not covered;

(i) Flood;

(j) Earthquake;

(k) Business interruption if the state is obligated under the terms of a lease or bond issue to continue making payments on the state property after the loss or damage has occurred and if the business interruption is caused by a hazard that is covered under the self-insured property fund;

(l) Any other hazard that the executive director determines pursuant to rule and regulation is appropriate for inclusion under the self-insured property fund.

(6) The executive director or a designee of the executive director is authorized to pay property claims of a state agency subject to available funds in the self-insured property fund and subject to the limitations in this section. The executive director or a designee of the executive director is authorized to provide for the repair and replacement of property consistent with the provisions of this part 15 and is authorized to provide for the payment of the costs of such repair and replacement out of the self-insured property fund. Disbursements from the self-insured property fund for claims of state agencies for loss or damage to property shall be paid by the state treasurer upon warrants drawn in accordance with the law upon vouchers issued by the department of personnel.

(7) Repealed.

Source: L. 86, 2nd Ex. Sess.: Entire section added, p. 65, § 7, effective August 25. L. 88: (7) repealed, p. 914, § 3, effective April 20. L. 96: (1), (2), (3)(c), (5)(l), and (6) amended, pp. 1505, 1521, §§ 22, 62, effective June 1. L. 2009: (1) amended, (SB 09-279), ch. 367, p. 1927, § 9, effective June 1. L. 2010: (3)(a)(IV) amended, (HB 10-1181), ch. 351, p. 1622, § 9, effective June 7.