DAR File No. 38072

Labor Commission, Industrial Accidents

Section R612-400-5

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

Notice of Proposed Rule

(Amendment)

DAR File No.: 38072
Filed: 10/23/2013 02:41:52 PM

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. These assessment rates are reviewed annually and amended as appropriate in order to ensure the funds remain viable and are fully funded. The proposed change establishes these assessment rates for the 2014 calendar year.

Summary of the rule or change:

For 2014, the proposed amendment maintains the ERF's premium assessment rate at 2.9% and increases the UEF's premium assessment rate from 0.15% to 0.35%.

State statutory or constitutional authorization for this rule:

• Subsection 59-9-101(2)

Anticipated cost or savings to:

the state budget:

The proposed amendment will impose no additional administrative or enforcement costs on the Labor Commission, which is the state agency charged with administering and enforcing Utah's workers' compensation system. This increase, however, may marginally affect the state's budget in that it may be passed on in the form of an increase in the state's workers' compensation insurance premiums.

local governments:

This increase may marginally affect local governments in that it may be passed on in the form of increased workers' compensation insurance premiums.

small businesses:

This increase may marginally affect small businesses in that it may be passed on in the form of increased workers' compensation insurance premiums.

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

This increase will not impact persons who do not own a business, have no employees, and have no workers' compensation insurance policy.

Compliance costs for affected persons:

This increase may affect the workers' compensation insurance premiums paid by the state of Utah, local governments, and businesses. The total cost cannot be determined at this time.

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

This increase may affect the workers' compensation insurance premiums paid by the state of Utah, local governments, and businesses. The total cost cannot be determined at this time.

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:

12/16/2013

This rule may become effective on:

12/23/2013

Authorized by:

Sherrie Hayashi, Commissioner

R612. Labor Commission, Industrial Accidents.

R612-400. Workers' Compensation Insurance, Self-Insurance and Waivers.

R612-400-5. 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[3]4, as established by the Labor Commission, shall be:

1. 0.[15]35% for the Uninsured Employers' Fund;

2. 2.9% 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, insurance, rates, waivers

Date of Enactment or Last Substantive Amendment: [February 25, ]2013

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