WSR 17-11-121

PREPROPOSAL STATEMENT OF INQUIRY

[Filed May 23, 2017, 11:41 a.m.]

Subject of Possible Rule Making: Chapter 296-17A WAC, Classifications for Washington workers' compensation insurance, RCW 51.16.035 requires the department to classify all occupations or industries by degree of hazard in accordance with recognized insurance principles. The department will consider repealing and amending some store classifications to address concerns about equity and homogeneity in the classification plan.

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

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Labor and industries is required by law to establish and maintain a workers' compensation classification plan that classifies according to the degree of hazard and recognized insurance principles as described in WAC 296-17-31029. A study conducted by the department found that some store classifications are not aligned with insurance principles that require classifications be homogenous [homogeneous] and equitable.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: No other agency regulates the workers' compensation classification plan in the state of Washington.

Process for Developing New Rule: Agency study, this preproposal follows a classification study. The study recommended rule making to maintain the integrity of the classification plan. The department contacted employers affected by the rule making, including the Washington Retail Association. The employer services rule-making web site was updated with information about this possible rule making. Another notification will be mailed to the affected businesses when proposals are ready. Interested parties may participate by commenting before proposals are made, by testifying at the public hearing, or by providing written comment 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. Prior to adoption, there will be a formal comment period followed by hearings for public testimony. Information on this will be included with the filing of the proposal. Anyone wanting to ask questions or provide comment prior to the proposal filing can contact Richard Bredeson, Classification Services, P.O. Box 44148, Olympia, WA 98504-4148, phone (360) 902-4985, fax (360) 902-4988, email Richard.Bredeson@lni.wa.gov.

May 23, 2017

Joel Sacks

Director