LABOR AND INDUSTRIES

[Order 26-04—Filed May 5, 2026, 8:29 a.m.]

Preproposal statement of inquiry was filed as WSR 26-06-088.

Title of Rule and Other Identifying Information: WAC 296-15-223 Self-insurance administrative assessment.

Hearing Location(s): On June 9, 2026, at 1:00 p.m., via virtual hearing at https://events.gcc.teams.microsoft.com/event/04db2e84-c8a6-4228-a02a-43bae0a39741@11d0e217-264e-400a-8ba0-57dcc127d72d. The hearing will begin at 1:00 p.m. and will continue until all oral comments are received.

Date of Intended Adoption: August 18, 2026.

Submit Written Comments to: Starla Treznoski, Department of Labor and Industries (L&I), Insurance Services, Self-Insurance, P.O. Box 44890, Olympia, WA 98504-4890, email Starla.Treznoski@Lni.wa.gov, fax 360-902-6900, phone 360-902-5668, beginning May 6, 2026, 8:00 a.m., by June 16, 2026, 5:00 p.m.

Assistance for Persons with Disabilities: Contact Starla Treznoski, phone 360-902-5668, fax 360-902-6900, email Starla.Treznoski@Lni.wa.gov, by June 16, 2026.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of this rule making is to create additional means of calculating administrative assessments for active self-insured employers, and in doing so, facilitate fair and equitable funding for current and future self-insurance projects.

Reasons Supporting Proposal: Self-insurance community expressing desire to change current means of calculation for one-time projects to a more fair and equitable method.

Statutory Authority for Adoption: RCW 51.44.145.

Statute Being Implemented: RCW 51.44.145 and 51.44.150.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: L&I, governmental.

Name of Agency Personnel Responsible for Drafting: Bradley Gunderson, Tumwater, Washington, 360-902-6904; Implementation and Enforcement: Cyal Christmas, Tumwater, Washington, 360-902-6839.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is required under RCW 34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Starla Treznoski, L&I, Insurance Services, Self-Insurance, P.O. Box 44890, Olympia, WA 98504-4890, phone 360-902-5668, fax 360-902-6900, email Starla.Treznoski@Lni.wa.gov, web https://www.lni.wa.gov/rulemaking-activity/?query=296-15&cardNo=AO26-04.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.025(4).

Explanation of exemptions: The proposed amendments to WAC 296-15-223 apply only to self-insured employers who employ 50 or more employees. As none of these employers have fewer than 50 employees, this rule making does not impact any small businesses.

Scope of exemption for rule proposal:

AMENDATORY SECTION(Amending WSR 09-13-018, filed 6/5/09, effective 7/6/09)

WAC 296-15-223Self-insurance administrative assessment.

(1) The administrative assessment covers the department's administrative costs, including direct and indirect expenses of each department division, the University of Washington environmental research facility, and the board of industrial insurance appeals. The assessment is paid quarterly at the same time a self-insurer submits its quarterly report.

(2) The administrative assessment rate is determined annually for each fiscal year. Each self-insured employer uses one of three rates:

(a) The base administrative rate is based on the actual costs of the previous fiscal year and the anticipated costs of the upcoming fiscal year. This rate is used by any active self-insured employer certified after the fiscal year used for calculation.

(b) The adjusted administrative assessment rate includes the base rate with adjustments for over or under collections from prior periods. This rate is used by any active self-insured employer certified during or prior to the fiscal year used for calculation.

(c) Employers who have voluntarily surrendered their self-insurance certificate must pay the inactive rate until one year after all self-insurance liabilities and responsibilities are terminated. Usually, administrative assessment payments for inactive self-insurers can stop after reporting total claims costs of zero dollars for four consecutive quarters. Payments may again be due if any future costs are reported.

(3) In addition to the above rates, the department may bill active and inactive self-insured employers for the administrative costs of one-time projects requested by self-insured employers that will support the self-insured employer program per RCW 51.44.145. The director will calculate the assessment based on the most appropriate of the following method(s):

(a) To all self-insured employers, restricted to:

(i) Industry, business type, or NAICS code;

(ii) Risk classifications as described in chapter 296-17A WAC; or

(iii) Public entity, private, or group as defined by RCW 51.14.150; and

(b) Proportioned to each subject employer by:

(i) Total claims costs;

(ii) Total number of worker hours reported;

(iii) Total number of employees;

(iv) Total number or cost amount of pensions;

(v) Total payroll; or

(vi) Equal share.

(4) Except for assessments listed in subsection (3) of this section, the total administrative assessment due each quarter is calculated by multiplying the self-insurer's rate by their total claims costs during that quarter.

(((4)))(5) The minimum quarterly administrative assessment for all self-insured employers is ((twenty-five dollars))$25, unless the self-insurer is not required to make payment (see subsection (2)(c) of this section).

(6) Any self-insured employer who fails to pay this assessment will be subject to a penalty in accordance with RCW 51.48.210.