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

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 51.06.035 and 51.06.100.

     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 within the state and sets basic rates of premium for these classifications that are distributed fairly (RCW 51.16.035). The department determined that certain rules are in need of revision. The classification portion of chapter 296-17 WAC was moved to chapter 296-17A WAC effective January 1, 2007. Housekeeping changes need to be made to correct references to the new WAC. The department proposes to revise rules that apply to reporting requirements of basic classifications, sole proprietors, and standard exceptions.

     This rule making will permanently add WAC 296-17-891, 296-17-86505, and 296-17-86507 which were filed in an emergency rule on January 22, 2007 (WSR 07-03-125).

     Minor housekeeping changes will be made to several classifications.

     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 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 (360) 902-4774 or by fax at (360) 902-4729.

February 20, 2007

Judy Schurke

Acting Director

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