Subject of Possible Rule Making: Chapter 296-15 WAC, Workers' compensation self insurance rules and regulations, this chapter governs employers who are permitted to self-insure their workers' compensation obligation pursuant to Title 51 RCW. This filing includes two new sections: Default of a self-insured employer's obligation and financial watch.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 51.04.020, 51.14.020, 51.32.190, 51.14.090, and 51.14.095.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: At the request of the Insolvency Trust Board, the department has agreed to define in rule "default" and "financial watch." This rule making will define "default" and "financial watch" and establish guidelines if a self-insured employer defaults on their workers' compensation obligation or if they experience a negative financial situation.

     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 work with representatives of the labor and self-insured employer communities on all changes to the self insurance regulations. A public hearing will be held in Tumwater after the proposal is filed.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Jean Vanek, Self Insurance Section, Department of Labor and Industries, P.O. Box 44890, Olympia, WA 98504-4892, phone (360) 902-6907, fax (360) 902-6900, vanj235@lni.wa.gov.

November 22, 2005

Gary Weeks

Director