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

     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: During hearings in May, the department proposed to merge five metal goods classifications into one classification with two subcodes. This proposal was scheduled to take effect on January 1, 2007. Two firms filed a petition opposing this proposal. Following a meeting with these two firms and an association, the department has elected to withdraw the proposal to merge these five classifications. The proposal in this filing will restore the five metal goods classifications in chapter 296-17 WAC.

     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, 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 proposed 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 and submit comments electronically to Moom235@lni.wa.gov or by calling (360) 902-4774 or by fax at (360) 902-4729.

August 1, 2006

Gary Weeks

Director

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