The proposed bill introduces a new chapter in Title 48 RCW that enables small business entities to form joint self-insurance programs for property and liability risks. It grants these entities the authority to jointly self-insure, purchase insurance or reinsurance, and contract for risk management and administrative services, while emphasizing the necessity of prior approval from the state risk manager. The bill outlines key definitions, such as "small business entity" and "self-insurance," and delineates the responsibilities of the state risk manager in overseeing these programs. Additionally, it mandates compliance with regulatory standards and includes provisions for financial audits, actuarial analyses, and the appointment of the state risk manager as the legal representative for service of process.

Furthermore, the bill provides legal protections for individuals and entities that share information with the state risk manager, granting them immunity from liability in civil actions related to such disclosures, unless there is evidence of malice or fraud. This immunity also extends to the state risk manager and their agents concerning the publication of reports or bulletins related to their official duties. The bill ensures that these protections are supplementary to existing legal privileges, thereby reinforcing the ability of small businesses to collaboratively manage risks while maintaining regulatory oversight and accountability.