No. 30594 (Amendment): R612-4-2. Premium Rates for the Uninsured Employers' Fund and the Employers' Reinsurance Fund

DAR File No.: 30594
Filed: 10/16/2007, 01:00
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 2008 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 retains the same workers' compensation insurance premium assessment rates for the 2008 calendar year that were applied for 2007: 7.25% for the ERF, .25% for the UEF, and .25% for Workplace Safety.

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:

There should be no cost or savings to the state budget as the assessment rates will remain at the same level for 2008 as they were for 2007.

local governments:

There should be no cost or savings to the local governments as the assessment rates will remain at the same level for 2008 as they were for 2007.

small businesses and persons other than businesses:

There should be no cost or savings to the small businesses and persons other than businesses as the assessment rates will remain at the same level for 2008 as they were for 2007.

Compliance costs for affected persons:

As in previous years, the premium assessment imposed by this rule will increase the workers' compensation premium for employers by a total of 7.75%.

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

This rule continues "status quo" funding levels for the ERF and the UEF, and implements the statutory assessment to fund the Workplace Safety Program. Because the rule does not change current workers' compensation expenses, it will have no effect on businesses, but will provide sufficient funds to maintain the actuarial soundness of the UEF and ERF. 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:

Joyce Sewell at the above address, by phone at 801-530-6988, 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:

12/17/2007

This rule may become effective on:

01/01/2008

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[7]8, as established by the Labor Commission, shall be:

1. 0.25% for the Uninsured Employers' Fund;

2. 7.25% 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, 2007]January 1, 2008

Notice of Continuation: January 12, 2006

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