This bill adds a new section to chapter 4.92 RCW requiring each local government to provide underinsured motorist coverage for government-owned vehicles whenever an officer, employee, or agent is operating or occupying the vehicle in the course of employment. The coverage must protect such government personnel who are legally entitled to recover damages from an underinsured motor vehicle, a hit-and-run motor vehicle, or a phantom vehicle for bodily injury, death, or damage to personal property, with minimum limits of $25,000 per person and $50,000 per accident. The requirement explicitly excludes third-party occupants of government-owned vehicles. The measure also amends RCW 48.62.031 to expressly allow that the required underinsured coverage may be provided through private insurance contracts, self-insurance, joint self-insurance programs, or other lawful methods, and preserves and clarifies existing statutory provisions governing formation, powers, audits, and service-of-process procedures for individual and joint self-insurance programs under chapter 48.62 RCW and related authorities. It specifies that joint program formation agreements fall under chapter 39.34 RCW, makes programs subject to state auditor audit, and describes service rules involving the risk manager and fees; the act takes effect January 1, 2026. Some specific details are referenced but not included in the extracted text: the new section number within chapter 4.92 RCW is not shown, the statutory definitions of "phantom vehicle," "underinsured coverage," and "underinsured motor vehicle" are cited to RCW 48.22.030 but not provided here, and the statutory identity or definition of "risk manager" is not included. It is not clear from these facts whether there are additional amendments elsewhere in the bill.

If enacted, cities, counties, special districts and other local governments will need to make sure officers, employees, and agents who drive or ride in government vehicles while working have underinsured motorist protection with at least $25,000 per person and $50,000 per accident. That will likely raise costs for some governments — either higher insurance premiums or larger self-insurance reserves — and require adjustments to existing insurance contracts or joint self-insurance arrangements; it also means those workers will more often be able to recover against underinsured, hit-and-run, or phantom drivers, while nonemployee third-party riders remain excluded. Local governments and their joint self-insurance programs will have clear options to meet the requirement (private insurance, self-insurance, or joint purchase), but they must update program agreements, maintain required audit reports for the state auditor, and follow rules about designating the risk manager for service and related procedures; these administrative duties and possible fees may add staff time and legal-process costs. Important details that could affect implementation — such as the exact new section number and the specific statutory definitions referenced for “underinsured,” “phantom vehicle,” and “risk manager” — are not included here.