WSR 98-11-101
PREPROPOSAL STATEMENT OF INQUIRY
DEPARTMENT OF
LABOR AND INDUSTRIES
[Filed May 20, 1998, 11:32 a.m.]
Subject of Possible Rule Making: Agency is in the process of rewriting existing retrospective rating rules contained in chapter 296-17 WAC into the clear rule-writing format. The agency is also considering the establishment of new rules that deal with group plan homogeneity, how and when classification are assigned to groups, one-time reapplication for classifications for all group plans, classification authorization to be at the subclass level, clarification of good standing for enrollment into a retro plan, and an "all or nothing" provision for commonly owned businesses.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 51.16.035 and 51.04.020(1).
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Currently many of the decisions affecting employers enrolled in the retrospective rating program are driven by formal and informal policy. The agency believes that these policies should be replaced by formal rules on the subjects. The balance of the proposal is to rewrite existing rules so that all businesses that participate in this voluntary program are clear on the expectations and requirements to participate in the retrospective rating program. The overall goal of retro and the purpose of any rule on this subject is to encourage work place safety and effective claims management programs so that the overall effect is reduced premium rates for employers.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.
Process for Developing New Rule: The agency initiated this process by soliciting input from customers that use this program asking them to identify rules or policies which were vague, difficult to understand or no longer needed and/or other areas that could be improved. This information as well as other ideas that originated with department staff were presented at two separate meetings of the Retrospective Rating Advisory Committee in December 1997 and February 1998. This was followed up with four informal public meetings around the state from March 9-14, 1998, to share ideas on possible changes and to encourage retro employers to participate in the rule development process to share their ideas. The results of the four pre-rule development meetings and a proposal being developed by business, was shared with the Retro Advisory Committee and the public at the committee's regular April meeting. The committee requested a special work session to further address all of the ideas and put forth a comprehensive rule proposal. This meeting has been tentatively scheduled for mid-May. We will present the results of the May meeting to retro employers at our regular June 1998 Retrospective Rating Advisory Committee meeting. Four additional informal meetings will be held around the state in late June to obtain additional input for retro employers.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. A letter will be mailed to employers and groups that participate in the retro program in late May disclosing the date, time and location of these meetings. These four informal meetings will not be scheduled until after the work session of the committee has taken place. Retro employers and other interested parties can call the department at (360) 902-4835 to obtain information on participation.
May 18, 1998
Gary Moore
Director