No. 43215 (Amendment): Section R612-400-5. Premium Rates for the Uninsured Employers' Fund and the Employers' Reinsurance Fund

(Amendment)

DAR File No.: 43215
Filed: 09/17/2018 02:14:44 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Workers' compensation insurance premiums in Utah include assessments to fund the Employer's Reinsurance Fund (ERF) and the Uninsured Employers' Fund (UEF). These assessment rates are reviewed annually, and amended as appropriate, in order to ensure the funds remain viable and are fully funded. These proposed changes establish these assessment rates for the 2019 calendar year.

Summary of the rule or change:

This rule update establishes the premium rates for 2019 at 0.25% for the UEF and 2.0% for the ERF. This is an overall decrease in the rates of 1.0%.

Statutory or constitutional authorization for this rule:

• Subsection 59-9-101(2)

Anticipated cost or savings to:

the state budget:

There will be a cost savings to the state budget as the overall premium rate will go down.

local governments:

There will be a cost savings to local governments as the overall premium rate will go down.

small businesses:

There will be a cost savings to small businesses as the overall premium rate will go down.

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

It is not anticipated that there will be a cost or savings to persons other than small businesses, businesses, or local government entities, because the assessment is against workers' compensation insurance premiums paid by employers.

Compliance costs for affected persons:

There will be an overall cost savings to affected persons, because the assessment rate will go down by 1%.

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

There will be an overall cost savings to affected persons, because the assessment rate will go down by 1%.

Jaceson Maughan, 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]
• Christopher Hill at the above address, by phone at 801-530-6113, by FAX at 801-530-6390, 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:

11/15/2018

This rule may become effective on:

01/01/2019

Authorized by:

Jaceson Maughan, Commissioner

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0

Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

A portion of the premiums paid on workers' compensation insurance funds the Uninsured Employers' Fund, the Employers' Reinsurance Fund, the Industrial Accidents Restricted Account, and the Workplace Safety Account.

 

The total premium collected for these funds will be 3%, which is 1% lower than last year. This should result in certain savings for the State of Utah, local governments, and businesses depending on how much of the cost savings insurance carriers will pass on to their policy holders.

 

 

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

1. 0.25% for the Uninsured Employers' Fund;

2. [3]2.0% 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 27, 2017]2019

Notice of Continuation: February 8, 2018

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

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