Subject of Possible Rule Making: Clarification of application of rating issues related to incurred loss adjustments in RCW 51.32.0991.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 51.04.020 and 51.16.035.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: RCW 51.32.0991 provides for a reduction in incurred losses, at the director's discretion, if a worker with a vocational plan had a prior vocational plan approved in 2008, or later, and the worker is engaged in medically restricted activities when injured. The statute expires June 30, 2013. The rules will clarify when the director's discretion can no longer be granted based on the sunset language of the statute and how it is applied to an accident year's incurred losses.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: No other agency regulates this issue.

     Process for Developing New Rule: Parties interested in these rules may contact the individual listed below. The public may also participate by commenting after amendments are proposed by providing written comments and/or testimony during the public hearing and comment process. Public hearings will be held after the proposal is filed.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Information about this process is available at the web site www.lni.wa.gov/insuranceservices/employerservices.

     Comments can be submitted by mail to Richard Bredeson, P.O. Box 44140, Olympia, WA 98504-4140, e-mail bred235@lni.wa.gov, fax (360) 902-4988, phone (360) 902-6243.

August 18, 2009

Judy Schurke

Director

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