WSR 14-03-105

PREPROPOSAL STATEMENT OF INQUIRY

[Filed January 21, 2014, 9:51 a.m.]

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

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 (L&I) is required by law (RCW 51.16.035) to establish and maintain a workers' compensation classification plan. This plan classifies all occupations or industries within the state and sets basic rates of premium that are distributed fairly for these classifications. Department staff determined that a number of rules are in need of revision to ensure the plan is clear and accurate. In an ongoing effort to ease administrative burden for our customers and make it easier to do business with L&I, we propose reformatting and simplifying language for multiple rules to make them easier to understand and apply. For example, the standard exception classification restrictions are presently addressed specifically in the general reporting rules. Customers must look in two places in the rules to learn what the restrictions are. We propose rewriting each of the standard exception classifications to incorporate the parameters of the reporting requirements into the language of the classification.

These changes will not change employer rates or reporting requirements, or classifications.

L&I is also reviewing these rules as part of its rules review process under SSB 5679 (chapter 30, Laws of 2013 2nd sp. sess.).

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: L&I will solicit input from the business community by way of the internet. L&I will use input to formulate proposed changes to the existing rules and advise customers of future rule making by the internet.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Employers can obtain information on our rule-making process at http://www.lni.wa.gov/LawRule/ruleProcess.asp and can submit comments electronically to JoAnne.Attwood@Lni.wa.gov or by calling (360) 902-4777, or fax (360) 902-4729.

January 21, 2014

Joel Sacks

Director