WSR 14-13-107

PREPROPOSAL STATEMENT OF INQUIRY

[Filed June 17, 2014, 3:54 p.m.]

Subject of Possible Rule Making: Chapter 296-17A WAC, Classifications for Washington workers' compensation insurance and chapter 296-17 WAC, General reporting rules, audit and recordkeeping, rates and rating system for Washington workers' compensation insurance. The department will consider reclassifying subclassification 0101-36, tree care and pruning service, as an independent basic classification.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 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 in accordance with the degree of hazard, and sets premium rates that are: (1) The lowest necessary to maintain actuarial solvency of the accident and medical aid funds in accordance with recognized insurance principles; and (2) designed to attempt to limit fluctuations in premium rates.

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: This proposal follows an agency study. The study recommended rule making to maintain the integrity of the classification plan. Employers affected by any rule making the department considers will receive notice before and after the department makes any proposals. Interested parties may participate by commenting before proposals are made, by testifying at the public hearing, or by providing written comment 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. Labor and industries is planning to hold formal public hearings in October 2014 in Tumwater, Tukwila, Bellingham, Vancouver, Richland, and Spokane. Inquiries can be directed to Richard Bredeson, Classification Services, P.O. Box 44148, Olympia, WA 98504-4148, phone (360) 902-4985, fax (360) 902-4988, e-mail Richard.Bredeson@lni.wa.gov.

June 17, 2014

Joel Sacks

Director