No. 39822 (Amendment): Section R612-400-5. Premium Rates for the Uninsured Employers' Fund and the Employers' Reinsurance Fund

(Amendment)

DAR File No.: 39822
Filed: 10/14/2015 10:15:23 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 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 2016 calendar year.

Summary of the rule or change:

For 2016, the proposed amendment leaves the rates at the previous level: ERF at 3.0% and the UEF at 0.35%.

State statutory or constitutional authorization for this rule:

• Subsection 59-9-101(2)

Anticipated cost or savings to:

the state budget:

There will be no cost or savings to the state budget since the rates will remain the same as 2015.

local governments:

There will be no cost or savings to local government since the rates will remain the same as 2015.

small businesses:

There will be no cost or savings to small businesses since the rates will remain the same as 2015.

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

There will be no cost or savings to persons other than small businesses, businesses, or local government entities since the rates will remain the same as 2015.

Compliance costs for affected persons:

There will be no compliance costs for affected persons since the rates will remain the same as 2015.

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

There will be no fiscal impact on businesses, since the rates will remain the same as 2015.

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 [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:

12/01/2015

This rule may become effective on:

12/08/2015

Authorized by:

Sherrie Hayashi, Commissioner

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[5]6, as established by the Labor Commission, shall be:

1. 0.35% 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 22, 2014]2015

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

 

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