The Washington State legislature is reviewing House Bill 1842 (2025-26), which proposes allowing public utility districts (PUDs) to form, own, or utilise captive insurers. The bill's introduction states its purpose is to provide local government entities with exclusive authority to self-insure risks, jointly purchase insurance or reinsurance, become captive owners as defined in RCW 48.201.020, and contract for risk management, claims, and administrative services. An analysis by the legislature describes PUDs as special purpose districts authorised to generate and distribute electricity, provide water and sewer services, and offer telecommunications services. These districts may operate countywide or within smaller jurisdictions, often aligning with county boundaries to serve the public with their authorised services. The bill is slated for committee review before proceeding further in the legislative process.
