Original Notice.

     Preproposal statement of inquiry was filed as WSR 04-13-130.

     Title of Rule and Other Identifying Information: Chapter 296-17 WAC, General reporting rules, classifications, audit and recordkeeping, rates and rating system for Washington workers' compensation insurance (2005 workers' compensation premium rates).

     This rule proposal will amend WAC 296-17-89502, Industrial insurance rates for nonhourly rated classifications and 296-17-920 Assessment for supplemental pension fund. These WAC sections were inadvertently left out of the rule proposal filed September 9, 2004, as WSR 04-19-033 which proposes to amend the 2005 workers' compensation premium rates.

     An overall 3.7% general increase in the premium rates is proposed. The 3.7% general rate increase is necessary to maintain the solvency of the state fund.

     Hearing Location(s): All hearings begin at 3:00 p.m.: On November 3, 2004, at the Westcoast Ridpath, Inland Empire Room, 515 West Sprague, Spokane, WA, (509) 838-2711; on November 4, 2004, at the Red Lion Hotel, Yakima Center, 607 East Yakima Avenue, Yakima, WA, (509) 248-5900; on November 5, 2004, at the Best Western Cottontree Inn, Fidalgo Room, 2401 Riverside Drive, Mount Vernon, WA, (360) 428-5678; on November 8, 2004, at the Department of Labor and Industries, Tumwater Office, Auditorium, Tumwater, Washington; on November 9, 2004, at the Department of Labor and Industries, Tukwila Office, 12806 Gateway Drive, Tukwila, WA; on November 10, 2004, at the King Oscar Convention Center, 8820 Hosmer, Tacoma, WA, (253) 539-1153; and on November 12, 2004, at the Red Lion at the Quay, 100 Columbia Street, Vancouver, WA, (360) 694-8341.

     Date of Intended Adoption: November 23, 2004.

     Submit Written Comments to: Department of Labor and Industries, Kathy Kimbel, Program Manager for Employer Services, P.O. Box 44140, Olympia, WA 98504-4140, or

e-mail LANZ235@LNI.WA.GOV, fax (360) 902-4729, by November 15, 2004, 12 noon.

     Assistance for Persons with Disabilities: Contact Office of Information and Assistance by November 12, 2004, TTY (360) 902-5797.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This rule proposal will amend WAC 296-17-89502 Industrial insurance rates for nonhourly rated classifications and 296-17-920 Assessment for supplemental pension fund.

     Reasons Supporting Proposal: Insurance base rates and experience rating tables are being modified to reflect changes in loss data associated with the classification and rating plan from the previous 2004 rating period. Washington law provides that rates should be adjusted annually to reflect the hazards of each industry and in accordance with the rating plan. Similarly the rating plan is revised to recognize changes within the industry groups.

     Statutory Authority for Adoption: RCW 51.16.035 Base rates, 51.32.073 Supplemental pension, 51.18.010 Retrospective rating, and 51.04.020(1) General authority.

     Statute Being Implemented: RCW 51.16.035, 51.32.073, 51.18.010, and 51.04.020(1).

     Rule is not necessitated by federal law, federal or state court decision.

     Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: This rule proposal will amend WAC 296-17-89502 Industrial insurance rates for nonhourly rated classifications and 296-17-920 Assessment for supplemental pension fund in order to establish 2005 premium rates and experience rating parameters for calendar year 2005.

     Name of Proponent: Department of Labor and Industries, governmental.

     Name of Agency Personnel Responsible for Drafting: Tammy Turner, Tumwater, Washington, (360) 902-4777; Implementation: Kathy Kimbel, Tumwater, Washington, (360) 902-4739; and Enforcement: Robert Malooly, Tumwater, Washington, (360) 902-4209.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The Regulatory Fairness Act (RFA), chapter 19.85 RCW requires the agency to prepare a small business economic impact statement (SBEIS) if the proposed rule will have a disproportionate impact on the state's small businesses because of the size of those businesses. In this case the agency is exempt from conducting a SBEIS when the proposed rules set or adjust fees or rates pursuant to legislative standards RCW 34.05.310 (4)(f).

     A cost-benefit analysis is not required under RCW 34.05.328. The Administrative Procedure Act (APA), chapter 34.05 RCW, requires the agency to prepare a cost/benefit analysis (CBA) prior to adopting a "significant legislative rule." The CBA determines whether the probable benefits of the rule are greater than its probable costs. This takes into account both the qualitative and quantitative benefits and costs and the specific directives of the statute being implemented. In this case, the agency is exempt from conducting a CBA when the proposed rules set or adjust fees or rates pursuant to legislative standards RCW 34.05.328 (5)(b)(vi).

September 14, 2004

Paul Trause

Director

OTS-7558.1

AMENDATORY SECTION(Amending WSR 03-24-066, filed 12/1/03, effective 1/1/04)

WAC 296-17-89502   Industrial insurance accident fund, medical aid and supplemental pension rates by class of industry for nonhourly rated classifications.   The base rates as set forth below are for classifications whose premium rates are based on units other than hours worked.

((Base Rates Effective
January 1, 2004

Base Rates Effective
January 1, 2005

[Statutory Authority: RCW 51.04.020, 51.16.035, 51.32.073, and 51.18.010. 03-24-066, § 296-17-89502, filed 12/1/03, effective 1/1/04. Statutory Authority: RCW 51.16.035, 51.32.073, 51.18.010, and 51.04.020(1). 02-24-029, § 296-17-89502, filed 11/27/02, effective 1/1/03. Statutory Authority: RCW 51.04.020, 51.16.035, 51.32.073, 51.18.010; 01-23-061, § 296-17-89502, filed 11/20/01, effective 1/1/02; 00-23-101, § 296-17-89502, filed 11/21/00, effective 1/1/01. Statutory Authority: RCW 51.04.020, 51.16.035 and 51.32.073. 99-24-055, § 296-17-89502, filed 11/29/99, effective 12/31/99; 98-24-094, § 296-17-89502, filed 12/1/98, effective 1/1/99; 97-24-062, § 296-17-89502, filed 12/1/97, effective 1/1/98; 97-12-011, § 296-17-89502, filed 5/27/97, effective 7/1/97; 97-06-007, § 296-17-89502, filed 2/24/97, effective 4/1/97.]

[Statutory Authority: RCW 51.04.020, 51.16.035, 51.32.073, and 51.18.010. 03-24-066, § 296-17-920, filed 12/1/03, effective 1/1/04. Statutory Authority: RCW 51.16.035, 51.32.073, 51.18.010, and 51.04.020(1). 02-24-029, § 296-17-920, filed 11/27/02, effective 1/1/03. Statutory Authority: RCW 51.04.020, 51.16.035, 51.32.073, 51.18.010. 01-23-061, § 296-17-920, filed 11/20/01, effective 1/1/02; 00-23-101, § 296-17-920, filed 11/21/00, effective 1/1/01. Statutory Authority: RCW 51.04.020, 51.16.035 and 51.32.073. 99-24-055, § 296-17-920, filed 11/29/99, effective 12/31/99; 98-24-094, § 296-17-920, filed 12/1/98, effective 1/1/99; 97-24-062, § 296-17-920, filed 12/1/97, effective 1/1/98; 96-24-063, § 296-17-920, filed 11/29/96, effective 1/1/97. Statutory Authority: RCW 51.16.035 and 51.32.073. 96-06-025, § 296-17-920, filed 2/28/96, effective 4/1/96. Statutory Authority: RCW 51.04.020. 95-23-080, § 296-17-920, filed 11/20/95, effective 1/1/96; 94-24-007, § 296-17-920, filed 11/28/94, effective 1/1/95; 93-24-114, § 296-17-920, filed 12/1/93, effective 1/1/94. Statutory Authority: RCW 51.04.020(1) and 51.16.035. 92-24-063, § 296-17-920, filed 11/30/92, effective 1/1/93; 91-24-053, § 296-17-920, filed 11/27/91, effective 1/1/92; 89-24-051 (Order 89-22), § 296-17-920, filed 12/1/89, effective 1/1/90. Statutory Authority: RCW 51.04.020 and 51.32.073. 87-04-006 (Order 86-49), § 296-17-920, filed 1/23/87. Statutory Authority: RCW 51.16.035. 86-12-041 (Order 86-18), § 296-17-920, filed 5/30/86, effective 7/1/86; 83-24-017 (Order 83-36), § 296-17-920, filed 11/30/83, effective 1/1/84; 82-24-047 (Order 82-38), § 296-17-920, filed 11/29/82, effective 1/1/83; 81-24-042 (Order 81-30), § 296-17-920, filed 11/30/81, effective 1/1/82; 80-17-016 (Order 80-23), § 296-17-920, filed 11/13/80, effective 1/1/81. Statutory Authority: RCW 51.04.030 and 51.16.035. 79-12-086 (Order 79-18), § 296-17-920, filed 11/30/79, effective 1/1/80. Statutory Authority: RCW 51.04.020(1) and 51.16.035. 78-12-043 (Order 78-23), § 296-17-920, filed 11/27/78, effective 1/1/79; Order 77-27, § 296-17-920, filed 11/30/77, effective 1/1/78; Order 77-10, § 296-17-920, filed 5/31/77; Order 76-36, § 296-17-920, filed 11/30/76; Order 75-38, § 296-17-920, filed 11/24/75, effective 1/1/76; Order 75-28, § 296-17-920, filed 8/29/75, effective 10/1/75; Order 74-40, § 296-17-920, filed 11/27/74, effective 1/1/75; Order 74-6, § 296-17-920, filed 1/23/74.]

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