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

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 51.04.020 and 51.16.035.

     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 classification plan that classifies all occupations or industries in accordance with their degree of hazard (RCW 51.16.035) and adopt rules governing the administration of this rule (RCW 51.04.020). A department study identified a need to change the current practices for classifying retail product demonstrators.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: In Washington state, no other state, local or federal agency regulates workers' compensation rates.

     Process for Developing New Rule:      Agency study; and appropriate rates require that industries with similar exposures and risks be classified together. A department study found disparate application of classifications for product demonstrators. Rule making to maintain the integrity of the classification plan is being proposed. Interested parties may contact the individual listed below. The public may also participate by commenting after amendments are proposed, by providing written comments and/or testimony during the public hearing and comment process. Public hearings will be held 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. Comments can be submitted to Richard Bredeson, P.O. Box 44140, Olympia, WA 98504-4140, e-mail Richard.Bredeson@lni.wa.gov, phone (360) 902-4985, fax (360) 902-4988.

September 4, 2012

Judy Schurke

Director