Subject of Possible Rule Making: General reporting rules, classifications, audit and recordkeeping, rates and rating system for workers' compensation insurance, chapter 296-17 WAC.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 51.16.035 and 51.16.100.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Labor and industries is required by law to establish and maintain a workers' compensation insurance classification plan that classifies all occupations or industries within the state and sets basic rates of premium for these classifications that are distributed fairly (RCW 51.16.035). Business partners have expressed a need to update several of the existing rules. The department has conducted a review of various classification and reporting rules and determined that certain rules are in need of revision, such as, ownership coverage, reciprocal agreements and extraterritorial coverage, logging machine operations, and general housekeeping changes.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: No other state, local, or federal agency regulates this subject.

     Process for Developing New Rule: Labor and industries will solicit input from the business community by way of direct mailings, the internet, focus meetings, and/or informal public meetings. Labor and industries will use this input to formulate proposed changes to the existing rules and advise customers of future rule making by direct mailing and/or the internet.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Labor and industries will mail letters with ideas on possible rule changes to affected employers. Employers will be encouraged to participate in the process to share ideas and/or attend meetings. Employers can obtain information on our process at the employer services website (www.lni.wa.gov/insurance services/employer services) and can submit comments electronically to woeh235@lni.wa.gov or by mail to Labor and Industries, Attention Classification Services, P.O. Box 44148, Olympia, WA 98504-4148 or by calling (360) 902-4776 or by fax (360) 902-4729.

February 19 [18], 2003

Paul Trause

Director

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