Washington HB 1714: Concerning nursing staffing practices at hospitals.

Bill Text

AN ACT Relating to enabling opportunities for risk pooling by 1
small businesses for property and liability risks; adding a new 2
section to chapter 82.04 RCW; adding a new chapter to Title 48 RCW; 3
and creating a new section.4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. This chapter is intended to provide 6
authority for two or more small business entities to participate in a 7
joint self-insurance program covering property or liability risks. 8
This chapter provides small business entities with the authority to 9
jointly self-insure property and liability risks, jointly purchase 10
insurance or reinsurance, and contract for risk management, claims, 11
and administrative services with other small business entities. This 12
chapter must be liberally construed to grant small business entities 13
maximum flexibility in jointly self-insuring to the extent the self-14
insurance programs are operated in a safe and sound manner. This 15
chapter is intended to require prior approval for the establishment 16
of every joint self-insurance program. In addition, this chapter is 17
intended to require every joint self-insurance program for small 18
business entities established under this chapter to notify the state 19
of the existence of the program and to comply with the regulatory and 20
statutory standards governing the management and operation of the 21
H-1590.1
SUBSTITUTE HOUSE BILL 1714
State of Washington 69th Legislature 2025 Regular Session
By House Consumer Protection & Business (originally sponsored by
Representatives Cortes, Walen, Parshley, Callan, Zahn, Peterson,
Shavers, Salahuddin, Street, Reed, Nance, Ormsby, and Hill)
READ FIRST TIME 02/21/25.
p. 1 SHB 1714

programs as provided in this chapter. This chapter is not intended to 1
authorize or regulate self-insurance of unemployment compensation 2
under chapter 50.44 RCW or industrial insurance under chapter 51.14 3
RCW.4
NEW SECTION. Sec. 2. The definitions in this section apply 5
throughout this chapter unless the context clearly requires 6
otherwise.7
(1) "Program" means a joint self-insurance program authorized 8
under section 3 of this act.9
(2) "Property and liability risks" includes the risk of property 10
damage or loss sustained by a small business entity and the risk of 11
claims arising from the tortious or negligent conduct or any error or 12
omission of the entity, its officers, employees, agents, or 13
volunteers as a result of a claim that may be made against the 14
entity.15
(3) "Self-insurance" means a formal program of advance funding 16
and management of entity financial exposure to a risk of loss that is 17
not transferred through the purchase of an insurance policy or 18
contract.19
(4) "Small business entity" means a corporation, limited 20
liability company, limited partnership, limited liability 21
partnership, general cooperative association, limited cooperative 22
association, sole proprietorship, or another type of for-profit 23
business entity, so long as the entity has no more than 20 employees 24
employed on average over the latest 24 calendar months, counting all 25
employees regardless of the hours worked or temporary status of an 26
employee, provided that if an entity has not been in business for 24 27
months, the average number of employees is used for each of the pay 28
periods during which it has been in business.29
(5) "State risk manager" means the risk manager of the office of 30
risk management within the department of enterprise services.31
NEW SECTION. Sec. 3. (1) A small business entity may join or 32
form a joint self-insurance program together with one or more other 33
small business entities, and may jointly purchase insurance or 34
reinsurance with one or more other small business entities for 35
property and liability risks only as permitted under this chapter. 36
Small business entities may contract for or hire personnel to provide 37
p. 2 SHB 1714

risk management, claims, and administrative services in accordance 1
with this chapter.2
(2) The agreement to form a program may include the organization 3
of a separate legal or administrative entity with powers delegated to 4
the entity. The entity may include or form another entity.5
(3) If provided for in the organizational documents, a program 6
may, in conformance with this chapter:7
(a) Contract or otherwise provide for risk management and loss 8
control services;9
(b) Contract or otherwise provide legal counsel for the defense 10
of claims and other legal services;11
(c) Consult with the commissioner and the state risk manager;12
(d) Jointly purchase insurance and reinsurance coverage in a form 13
and amount as provided for in the organizational documents;14
(e) Obligate the program's participants to pledge funds or 15
revenues to secure the obligations or pay the expenses of the 16
program, including the establishment of a reserve fund for coverage, 17
including an additional assessment if the reserve fund or