The bill establishes a framework for small business entities in Washington to form joint self-insurance programs for property and liability risks, allowing them to collectively self-insure, purchase insurance or reinsurance, and contract for risk management services. It requires these programs to be approved by the state risk manager and to adhere to specific regulatory standards, including the need for actuarial analyses and claims audits. Key definitions such as "small business entity," "self-insurance," and "program" are outlined, along with provisions for the appointment of the state risk manager as the attorney for service of legal process and the establishment of operational rules.

Furthermore, the bill introduces legal protections for individuals and entities reporting information to the state risk manager, granting them immunity from civil liability unless actual malice, fraud, or bad faith is proven. It also exempts approved programs from certain insurance premium taxes and specifies that the provisions of chapter 82.04 RCW do not apply to these programs concerning income from risk pooling activities. However, this exemption does not extend to insurance companies or third-party administrators. The bill clarifies that certain existing RCWs do not apply and creates a new chapter in Title 48 RCW to encompass the relevant sections.