No. 31564 (New Rule): R612-12. Reporting Requirements for Workers' Compensation Coverage Waivers

DAR File No.: 31564
Filed: 06/16/2008, 09:27
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to implement S.B. 159 by defining the frequency and content of the reports regarding independent contractor exclusion certificates that insurance carriers will provide to the Labor Commission. (DAR NOTE: S.B. 159 (2008) is found at Chapter 263, Laws of Utah 2008, and was effective 05/05/2008.)

Summary of the rule or change:

The rule will require insurance carrier reports on independent contractors be submitted to the Labor Commission by the 5th of each month, or the first business day thereafter.

State statutory or constitutional authorization for this rule:

Sections 34A-1-104 and 31A-22-1011, and Title 63G, Chapter 3

Anticipated cost or savings to:

the state budget:

The administrative costs of implementing this rule will be de minimus and can be absorbed within the existing budget of the Labor Commission.

local governments:

Local governments do not have any administrative responsibilities relative to this rule and will not experience any savings or costs.

small businesses and persons other than businesses:

There will be no cost or savings for small businesses or other persons since this rule only defines the content and timing of the insurance carrier reports.

Compliance costs for affected persons:

The compliance cost(s) for the affected persons or entities are minimal. Insurance carriers are already compiling the necessary information regarding independent contractors. This rule merely defines the timing for the transmitting of the reports to the Labor Commission. This should involve less than an hour's time each month between sending and receiving the report.

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

Insurance carrier reports regarding independent contractors exclusion certificates will assist our investigators in performing investigations into possible noncompliance with workers' compensation insurance coverage requirements. The reports received under this rule will reduce the need for Commission investigations of bona fide employer/independent contractor relationships. 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:

07/31/2008

This rule may become effective on:

08/07/2008

Authorized by:

Sherrie Hayashi, Commissioner

RULE TEXT

R612. Labor Commission, Industrial Accidents.

R612-12. Reporting Requirements for Workers' Compensation Coverage Waivers.

R612-12-1. Authority.

This rule is enacted under the authority of U.C.A. Sections 34A-1-104, 31A-22-1011, and 63G-3.

 

R612-12-2. Designation as Informal Proceedings.

Insurance carriers issuing a waiver pursuant to Section 34A-22-1001 shall file with the Labor Commission a report, as required by this section, once monthly but in any event no later than the 5th of each month or the first business day thereafter.

 

KEY: workers' compensation, administrative procedures, reporting, settlements

Date of Enactment or Last Substantive Amendment: 2008

Authorizing, and Implemented or Interpreted Law: 34A-2-101 et seq.; 34A-3-101 et seq.; 34A-1-104; 78-29-102; 78-29-104