DAR File No. 44159

This rule was published in the November 15, 2019, issue (Vol. 2019, No. 22) of the Utah State Bulletin.


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.: 44159
Filed: 10/30/2019 07:05:36 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Workers' compensation insurance premiums in Utah include assessments to fund the Employer's Reinsurance Fund (ERF) and the Uninsured Employers' Fund (UEF). These assessment rates are reviewed annually, and amended as appropriate, in order to ensure the funds remain viable and are fully funded. These proposed changes establish these assessment rates for the 2020 calendar year.

Summary of the rule or change:

This rule filing establishes the premium rates for 2020 at 0.50% for the Uninsured Employers' Fund and 1.5% for the Employers' Reinsurance Fund. This is an overall decrease in the rates of 0.25%.

Statutory or constitutional authorization for this rule:

  • Subsection 59-9-101(2)

Anticipated cost or savings to:

the state budget:

There will be a cost savings to the state budget as the overall premium rate will go down.

local governments:

There will be a cost savings to local governments as the overall premium rate will go down.

small businesses:

There will be cost savings to small businesses as the overall premium rate will go down.

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

It is not anticipated that there will be a cost or savings to persons other than small businesses, businesses, or local government entities, because the assessment is against workers' compensation insurance premiums paid by employers.

Compliance costs for affected persons:

There will be an overall cost savings to affected persons, because the assessment rate will go down by 0.25%.

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

There will be an overall cost savings to affected persons, because the assessment rate will go down by 0.25%.

Jaceson Maughan, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Office 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
  • Christopher Hill at the above address, by phone at 801-530-6113, by FAX at 801-530-6390, or by Internet E-mail at chill@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:

12/16/2019

This rule may become effective on:

01/01/2020

Authorized by:

Jaceson Maughan, Commissioner

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2020

FY 2021

FY 2022

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0





Fiscal Benefits




State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0





Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

There will be an overall cost savings of 0.25% because the overall rates have decreased. Because there are many factors that play into workers' compensation insurance premiums, the exact dollar amount of the savings is inestimable.

 

Commissioner Jaceson R. Maughan has reviewed and approved this fiscal analysis.

 

 

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, 20[19]20, as established by the Labor Commission, shall be:

1. 0.[25]50% for the Uninsured Employers' Fund;

2. [2.0]1.5% 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: [ January 1, ]2019

Notice of Continuation: February 8, 2018

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


Additional Information

More information about a Notice of Proposed Rule is available online.

The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2019/b20191115.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.

Text to be deleted is struck through and surrounded by brackets ([example]). Text to be added is underlined (example).  Older browsers may not depict some or any of these attributes on the screen or when the document is printed.

For questions regarding the content or application of this rule, please contact 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; Christopher Hill at the above address, by phone at 801-530-6113, by FAX at 801-530-6390, or by Internet E-mail at chill@utah.gov.  For questions about the rulemaking process, please contact the Office of Administrative Rules.