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

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 51.16.035, 51.04.020(1), and 51.18.010.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The drywall industry suffers from substantial underreporting of premiums due to the active underground economy. This rule making proposes to encourage compliance by modifying drywall reporting rules.

     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 and consultation with the drywall advisory committee. Labor and industries will use this input to formulate proposed changes to the existing classifications 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 web site (www.lni.wa.gov/insuranceservices/employerservices) and can submit comments electronically to moom235@lni.wa.gov or by calling (902) [(360)] 902-4774 or by fax at (360) 902-4729.

October 1, 2007

Judy Schurke

Director

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