Labor Commission, Industrial Accidents

Section R612-4-2

Premium Rates for the Uninsured Employers' Fund and the Employers' Reinsurance Fund

Notice of Proposed Rule

(Amendment)

DAR File No.: 35363
Filed: 10/14/2011 11:09:04 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Workers' compensation insurance premiums in Utah include an assessment to fund the Employers' Reinsurance Fund (ERF) and the Uninsured Employers Fund (UEF). Employers that self-insure their workers' compensation liabilities are required to pay an equivalent assessment. The proposed rule establishes these assessment rates for the 2012 calendar year.

Summary of the rule or change:

The proposed amendment extends the existing premium assessment rates of 3% for the ERF and 0.05% for the UEF through the 2012 calendar year.

State statutory or constitutional authorization for this rule:

• Subsection 59-9-101(2)

Anticipated cost or savings to:

the state budget:

Because the premium assessments rates are left unchanged, the proposed amendment will not affect the state's expense for workers' compensation insurance. The proposed assessment rates will continue to produce sufficient revenue to fund the ERF and UEF.

local governments:

Because the premium assessments rates are left unchanged, the proposed amendment will not affect local government expense for workers' compensation insurance.

small businesses:

Because the premium assessments rates are left unchanged, the proposed amendment will not affect small business expense for workers' compensation insurance.

persons other than small businesses, businesses, or local governmental entities:

Because the premium assessments rates are left unchanged, the proposed amendment will not affect other persons� expense for workers' compensation insurance, nor will it affect the workers� compensation benefits that may be claimed by such persons.

Compliance costs for affected persons:

By leaving the premium assessment rate unchanged, the proposed amendment avoids any compliance costs on any affected person.

Comments by the department head on the fiscal impact the rule may have on businesses:

Retaining the existing premium assessment rates will maintain the fiscal integrity of Utah's workers' compensation system while contributing to the system's cost stability. This stability has a generally-favorable fiscal impact on businesses.

Sherrie Hayashi, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Labor Commission
Industrial Accidents
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Ron Dressler at the above address, by phone at 801-530-6841, by FAX at 801-530-6804, or by Internet E-mail at rdressler@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/01/2011

This rule may become effective on:

01/01/2012

Authorized by:

Sherrie Hayashi, Commissioner

R612. Labor Commission, Industrial Accidents.

R612-4. Premium Rates.

R612-4-2. Premium Rates for the Uninsured Employers' Fund and the Employers' Reinsurance Fund.

A. Pursuant to Section 59-9-101(2), Section 59-9-101.3 and 34A-2-202 the workers' compensation premium rates effective January 1, 201[1]2, as established by the Labor Commission, shall be:

1. 0.05% for the Uninsured Employers' Fund;

2. 3.0% for the Employers' Reinsurance Fund;

B. The premium rates are a percentage of the total workers' compensation insurance premium income as detailed in Section 59-9-101(2)(a).

 

KEY: workers' compensation, rates

Date of Enactment or Last Substantive Amendment: [December 31, 2010]2011

Notice of Continuation: December 8, 2010

Authorizing, and Implemented or Interpreted Law: 59-9-101(2)