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Board discusses property program participation, possible statutory changes and fleet-inspection concerns
Summary
Board debated voluntary vs. mandatory participation in SORM’s property program, options to create a central self-insurance retention, and concerns about vehicle inspections after state law changes; staff outlined advisory councils and best-practice guidance.
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Board members discussed options to increase participation in SORM’s property program and the limits of the agency’s current voluntary model. Staff said other states use mandatory programs and the lack of a central fund limits SORM’s ability to hold self-insured retention without statutory authorization.
"One recommendation that has been previously made to the legislature ... is to consider moving from a voluntary program ... all other states basically have mandatory programs," the executive director said. He added the agency currently relies on a virtual captive and partner arrangements and would need statutory authority to hold a managed fund.
Board members also raised concerns about vehicle inspection requirements that recently changed under new laws. Staff said consultation visits review fleet maintenance practices, but the agency relies on client agencies to maintain inspection schedules and documentation. Board members suggested training and advisory councils to encourage fleet-management best practices and to reduce exposure.
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