Subject of Possible Rule Making: 2010 industrial insurance premium rates, chapter 296-17 WAC, General reporting rules, audit and recordkeeping, rates and rating system for Washington workers' compensation insurance.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 51.16.035, 51.04.020(1), and 51.18.010.

     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 and to set premium rates that maintain actuarial solvency of the accident and medical aid funds. By law, the plan must be consistent with recognized principles of insurance and rates are adjusted annually or as needed to ensure solvency of the insurance trust funds. Labor and industries is also required by law to offer retrospective rating plans to employers as a further incentive to encourage workplace safety and prevent employee injury.

     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: Premium rates for each classification are developed in part from the past loss experience of employers subject to the classification, changes in benefit levels mandated by law or court decisions, medical inflation, economic and business trends and financial markets. Labor and industries will work with stakeholders as changes are developed. The public can participate in these discussions by contacting the individual listed below.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Labor and industries is tentatively planning to hold formal public hearings between October 27 and October 30, 2009, in Spokane, Kennewick, Bellingham, Tumwater, Tukwila and Vancouver.

     Public hearings are anticipated to last until all public comments are received. Inquiries can be directed to Bill Moomau, Classification Services, P.O. Box 44148, Olympia, WA 98504-4148, phone (360) 902-4774, fax (360) 902-4729, e-mail moom235@lni.wa.gov.

June 16, 2009

Judy Schurke

Director

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