No. 32054 (Amendment): R612-4-2. Premium Rates for the Uninsured Employers' Fund and the Employers' Reinsurance Fund

DAR File No.: 32054
Filed: 10/15/2008, 01:11
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to establish the premium assessment rates for 2009 to fund the Employers' Reinsurance Fund (ERF), the Uninsured Employers' Fund (UEF), and the Workplace Safety Account.

Summary of the rule or change:

The proposed amendment lowers that portion of the workers' compensation insurance premium assessment used to fund the ERF from 7.25% for 2008 to 5% for 2009. The amendment leaves the premium assessment rate used to fund the UEF unchanged for 2009, at 0.25%.

State statutory or constitutional authorization for this rule:

Subsection 59-9-101(2) and Sections 59-9-101.3 and 34A-2-202

Anticipated cost or savings to:

the state budget:

In its capacity as an employer, the state is required to purchase workers' compensation insurance for its employees. This reduction in the ERF assessment rate will reduce the cost of such insurance by approximately 2% for 2009.

local governments:

In their capacity as employers, local governments are required to provide workers' compensation coverage for their employees. This reduction in the ERF assessment rate will reduce the cost of such coverage by approximately 2% for 2009.

small businesses and persons other than businesses:

Small businesses are required to provide workers' compensation coverage for their employees. This reduction in the ERF assessment rate will reduce the cost of such coverage by approximately 2% for 2009.

Compliance costs for affected persons:

The only effect of the proposed reduction in the ERF assessment rate will be to reduce workers' compensation coverage costs. There will be no compliance costs for affected persons.

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

By reducing the ERF premium assessment rate, businesses will enjoy a reduction in workers' compensation coverage costs. This reduction in one component of business costs will have a positive fiscal impact on businesses. The aggregate savings to all employers in Utah is estimated to exceed $10,000,000. 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:

Larry Bunkall at the above address, by phone at 801-530-6988, by FAX at 801-530-6844, 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:

12/01/2008

This rule may become effective on:

01/01/2009

Authorized by:

Sherrie Hayashi, Commissioner

RULE TEXT

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, 200[8]9, as established by the Labor Commission, shall be:

1. 0.25% for the Uninsured Employers' Fund;

2. [7.25]5.00% for the Employers' Reinsurance Fund;

3. 0.25% for the workplace safety account.

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: [January 1, 2008]2009

Notice of Continuation: January 12, 2006

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