No. 40815 (Amendment): Section R612-400-5. Premium Rates for the Uninsured Employers' Fund and the Employers' Reinsurance Fund

(Amendment)

DAR File No.: 40815
Filed: 09/22/2016 11:32:07 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Workers' compensation insurance premiums in Utah include an assessment to fund the Employer's Reinsurance Fund (ERF) and the Uninsured Employers' Fund (UEF). Employers that self-insure their worker's 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 2017 calendar year.

Summary of the rule or change:

For 2017, the proposed amendment leaves the rate for the ERF at 3.0% and reduces the rate for the UEF from 0.35% to 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 slight savings to the state budget since the rate for the UEF is being decreased for 2017. The savings will amount to 0.1% of workers' compensation premium assessment costs. The dollar amount cannot be determined since workers' compensation premium assessment costs are unknown.

local governments:

There will be a slight savings to local governments since the rate for the UEF is being decreased for 2017. The savings will amount to 0.1% of workers' compensation premium assessment costs. The dollar amount cannot be determined since workers' compensation premium assessment costs are unknown.

small businesses:

There will be a slight savings to small businesses since the rate for the UEF is being decreased for 2017. The savings will amount to 0.1% of workers' compensation premium assessment costs. The dollar amount cannot be determined since workers' compensation premium assessment costs are unknown.

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

There will be a slight savings to persons other than small businesses, businesses, or local government entities since the rate for the UEF is being decreased for 2017. The savings will amount to 0.1% of workers' compensation premium assessment costs. The dollar amount cannot be determined since workers' compensation premium assessment costs are unknown.

Compliance costs for affected persons:

There will be a slight decrease in compliance costs for affected persons because the rate for the UEF is being decreased. The savings will amount to 0.1% of workers' compensation premium assessment costs. The dollar amount cannot be determined since workers' compensation premium assessment costs are unknown.

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

There will be a slight decrease in the fiscal impact on businesses with the rate for the UEF being decreased for 2017. The savings will amount to 0.1% of workers' compensation premium assessment costs.

Jaceson R Maughan, Acting 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 [e-mail]

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:

11/15/2016

This rule may become effective on:

11/22/2016

Authorized by:

Jaceson Maughan, Acting Commissioner/General Counsel

RULE TEXT

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[6]7, as established by the Labor Commission, shall be:

1. 0.[35]25% 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, insurance, rates, waivers

Date of Enactment or Last Substantive Amendment: [December 8, 2015]2016

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

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