The proposed bill establishes a framework for small business entities in Washington to form joint self-insurance programs for property and liability risks. It allows two or more small businesses to collaborate in self-insuring, purchasing insurance or reinsurance, and contracting for risk management and administrative services, with prior approval from the state risk manager. The bill outlines definitions for key terms such as "small business entity" and "self-insurance," and specifies management and operational requirements, including actuarial analyses and claims audits. Additionally, it mandates annual reporting to ensure compliance and provides exemptions from certain insurance premium taxes and fees for approved programs.

The legislation also introduces legal protections for individuals and entities reporting information to the state risk manager, granting them immunity from civil liability unless malice, fraud, or bad faith is proven. This immunity extends to the state risk manager and their agents concerning the publication of reports related to their official activities. Furthermore, the bill clarifies that provisions of chapter 82.04 RCW do not apply to approved programs, and it specifies that certain existing RCWs do not apply to this act, creating a new chapter in Title 48 RCW that encompasses the relevant sections.