The bill establishes a new section in chapter 51.14 RCW that outlines the responsibilities of self-insured employers, particularly those that are counties, cities, or municipal employers, after their self-insurer certification is withdrawn. It mandates that the department will take over the obligations of these decertified self-insured employers, including the payment of compensation. Furthermore, the decertified employers will be liable to reimburse the department for all payments made, with reimbursement occurring through periodic charges at least quarterly, as determined by the director.

Additionally, the bill empowers the director to adopt rules to implement this section, which will include guidelines on the ongoing obligations of decertified self-insured employers and the methods by which they can fulfill their financial responsibilities. This legislative change aims to ensure that compensation obligations are met even after a self-insured employer loses its certification, thereby protecting the interests of employees and ensuring the continuity of compensation payments.