Opinion ID: 1430546
Heading Depth: 1
Heading Rank: 2

Heading: reimbursement of tort costs

Text: The State alleges that reimbursement of the Tort Claims and Legal Services Revolving Fund is compelled by the statutes creating the funds. A review of those statutes disproves this contention. With regard to reimbursement of the Tort Claims Revolving Fund, RCW 4.92.170 provides: Liability for and payment of claims arising out of tortious conduct ... is declared to be a proper charge as part of the normal cost of operating the various agencies and departments of state government whose operations and activities give rise to the liability and a lawful charge against moneys appropriated or available to such agencies and departments. Within any agency or department the charge shall be apportioned among such appropriated and other available moneys in the same proportion that the moneys finance the activity causing liability.... State agencies shall make reimbursement to the tort claims revolving fund for any payment made from it for the benefit of such agencies. [1] The State argues that this provision requires the Commission to repay funds expended in its behalf from the Tort Claims Revolving Fund and further requires it to apportion these costs to the Railroad Regulatory Fee Account, as being the moneys that finance the activity causing liability. But reimbursement does not seem to be absolutely mandated by the legislative scheme. RCW 4.92.170 further provides: [I]n any case where reimbursement would seriously disrupt or prevent substantial performance of the operations or activities of the state agency, the director of financial management may relieve the agency of all or a portion of the obligation to make reimbursement. See also WAC 82-16-080, which establishes that this reimbursement may be made from nonagency funds. Thus, it is clear that repayment from agency moneys is not required if it is determined that the financial burden cannot be met by the affected agency. If the funds in the Railroad Regulatory Fee Account are otherwise made unavailable for the purpose of repayment of tort judgments, RCW 4.92 does not preclude reimbursement of the Tort Claims Revolving Fund from another source. Indeed, as noted above, RCW 4.92.170 explicitly provides for an alternative method of repayment. The director may as a practical matter be compelled to find an alternative source for repayment. Nothing prevents the legislature from appropriating funds directly to the Tort Claims Revolving Fund or to the Public Service Revolving Fund for repayment of the tort claim disbursements. Whether this would be necessary depends on the appropriateness of charging tort judgments against the State against the railroad supervision fees. Similar analysis applies to reimbursement of the Legal Services Revolving Fund. RCW 43.10.160 provides: The amounts to be disbursed from the legal services revolving fund ... shall be transferred thereto . .. from funds appropriated to any and all agencies for legal services or administrative expenses... Agencies operating in whole or in part from nonappropriated funds shall pay into the legal services revolving fund such funds as will fully reimburse funds appropriated to the attorney general for any legal services provided activities financed by nonappropriated funds. The State argues that this provision requires the Commission to repay funds expended in its behalf by the Attorney General from the Railroad Regulatory Fee Account, as the fund supporting the activities financed by nonappropriated funds. [2] RCW 43.10, unlike RCW 4.92, does not explicitly provide for payment of attorney's fees from a nonagency source when the agency is financially unable to absorb the cost. But nothing in the statutory scheme prevents direct appropriation to the fund to cover nonreimburseable expenses. If the funds in the Railroad Regulatory Fee Account are otherwise made unavailable for purpose of repayment of state attorney's fees, such appropriation, directly to the Legal Services Revolving Fund, or to the Public Service Revolving Fund for repayment of the fee disbursement, could harmonize the provisions of RCW 43.10 and RCW 81.24. See Gross v. Lynnwood, 90 Wn.2d 395, 583 P.2d 1197 (1978) (implied repeals are not favored, and whenever possible statutes will be read so that both can stand); State v. Fagalde, 85 Wn.2d 730, 539 P.2d 86 (1975) (it is court's duty to reconcile and give effect to apparently conflicting statutes). Thus, it must be determined if the charges made against the Railroad Regulatory Fee Account are justified under the provisions establishing that account, RCW 81.24. If they are not, it is also likely that those funds do not finance the activity causing liability and repayment from that source is inappropriate.