§ 24-30-1501 — Legislative declaration

(1) The general assembly recognizes
that the general liability and automobile liability insurance policies of the state of
Colorado have been canceled, that no responsive bids were received, and that, as a
direct result, the governor called an extraordinary session of the general assembly
to address the need for a method to protect the state and its employees against
claims brought under the Colorado Governmental Immunity Act, article 10 of this
title, and arising under federal law. The general assembly further recognizes that
the consequences of uninsured liability of the state, including failure to respond to
meritorious claims in a timely fashion and greater ultimate costs of settlement
caused by failure to investigate claims in an orderly and timely manner, are
undesirable. The general assembly hereby declares, therefore, that the appropriate
remedy is to create a reserve fund for purposes of self-insurance of the state. The
general assembly declares that the purpose of this part 15 is to create a self-insurance fund, provide a mechanism for claims adjustment, investigation, and
defense, and authorize the settlement and payment of claims and the payment of
judgments rendered against the state. The general assembly also recognizes that
no responsible bids have been received for property insurance policies for the state
of Colorado and that a method for covering loss or damage to state property is
needed. The general assembly hereby declares that the appropriate remedy is to
create a reserve for purposes of self-insurance of the state for loss or damage to
state property. The general assembly declares that its intent is to explore, on an
annual basis, the availability of commercial liability insurance policies and property
damage insurance policies, considering the possibility that the insurance industry
can provide coverage in the future that is less expensive than the costs of operating
a risk management system and paying for claims out of the risk management fund
and out of the self-insured property fund.

(2) The general assembly recognizes that liability claims arising prior to
September 15, 1985, exist for which no commercial insurance coverage is available.
The general assembly hereby finds and declares that the risk management system
will provide an appropriate remedy for such claims and that the department of
personnel should be authorized to administer such claims.

(3) The general assembly also recognizes that the provision of workers'
compensation insurance for state employees has become expensive. The general
assembly hereby finds and declares that the administration of workers'
compensation for state employees out of a separate account in the risk
management fund as a self-insurance measure is an appropriate response to the
high cost of workers' compensation insurance.

Legislative History

Source: L. 85, 1st Ex. Sess.: Entire part added, p. 1, � 1, effective September 27. L. 86, 2nd Ex. Sess.: Entire section amended, p. 63, � 1, effective August 25. L. 90: Entire section amended, p. 1194, � 1, effective May 24. L. 96: (1) and (2) amended, p. 1502, � 16, effective June 1.