The bill amends existing laws to allow public utility districts in Washington State to form, own, or use captive insurers. Specifically, it modifies RCW 48.62.011 and RCW 48.62.031 to include provisions that enable public utility districts to become captive owners as defined in RCW 48.201.020. This change is intended to provide local government entities with greater flexibility in self-insuring and managing risks, while also ensuring that they comply with regulatory standards. The bill emphasizes the need for prior approval for self-insurance programs and mandates that local government entities notify the state of any self-insurance programs established without prior approval.

Additionally, the bill introduces a new section to chapter 54.04 RCW, explicitly stating that public utility districts may act as captive owners. The definition of "captive owner" is expanded to include municipal corporations organized under Title 54 RCW, thereby formalizing the ability of public utility districts to engage in captive insurance practices. This legislative change aims to enhance the financial management capabilities of public utility districts by allowing them to better control their insurance needs and associated risks.

Statutes affected:
Original Bill: 48.62.011, 48.62.031, 48.201.020