BEFORE THE STATE COMPENSATION INSURANCE FUND
OF THE STATE OF MONTANA
In the matter of the amendment of ARM 2.55.320 pertaining to classifications of employments and ARM 2.55.408 pertaining to retrospective rating plans
NOTICE OF PROPOSED AMENDMENT
NO PUBLIC HEARING CONTEMPLATED
TO: All Concerned Persons
1. On January 22, 2010, the Montana State Fund proposes to amend the above-stated rules.
2. The Montana State Fund will make reasonable accommodations for persons with disabilities who wish to participate in the rulemaking process and need an alternative accessible format of this notice. If you require an accommodation, contact the Montana State Fund no later than 5:00 p.m. on December 30, 2009, to advise us of the nature of the accommodation that you need. Please contact Nancy Butler, Montana State Fund, P.O. Box 4759, 5 South Last Chance Gulch, Helena, Montana 59604-4759; telephone (406) 444-7725; fax (406) 444-1493; or e-mail firstname.lastname@example.org.
3. The rules proposed to be amended provide as follows, stricken matter interlined, new matter underlined:
2.55.320 METHOD FOR ASSIGNMENT OF CLASSIFICATIONS OF EMPLOYMENTS (1) and (2) remain the same.
(3) The State Fund staff shall assign its insureds to classifications contained in the classifications section of the State Compensation Insurance Fund Policy Services Underwriting Manual effective July 1,
2008 2009, and assign new or changed classifications as approved by the board. That section of the manual is incorporated by reference. Copies of the classification section of the manual may be obtained from the Insurance Operations Support Department of the State Fund, 5 South Last Chance Gulch, P.O. Box 4759, Helena, Montana 59604-4759.
AUTH: 39-71-2315, 39-71-2316, MCA
IMP: 39-71-2311, 39-71-2316, MCA
REASON: This amendment to ARM 2.55.320 is reasonably necessary at this time to reflect the updates to the State Fund's Underwriting Manual that are now available up to July 1, 2009. The updates are made to the manual each year to reflect changes to the classifications that are made from time to time by the Classification Review Committee established in Title 33, chapter 16, MCA, and which classification changes are adopted by the State Fund.
In accordance with 39-71-2316(1)(e), MCA, "After the rules have been adopted, the state fund need not follow the rulemaking provisions of Title 2, chapter 4, when changing classifications and premium rates." The manual is an administrative manual used by State Fund staff in their usual duties of assigning classifications to insured employers of the State Fund. These classifications each have a premium rate that is adopted by the State Fund board in accordance with the board's ratemaking authority. This rule update and amendment are made each year to adopt the current version of the manual.
2.55.408 RETROSPECTIVE RATING PLANS (1) remains the same.
(2) The board shall establish employer retrospective rating plans for each fiscal year utilizing the methods and formulas published by the National Council on Compensation Insurance Retrospective Rating Manual,
1984 2009 edition , as revised to November 27, 1995. The board shall determine the factors, multipliers, ratios, or other formula components for the plan. The board may establish a group retrospective rating plan utilizing the methods, formulas, factors, multipliers, ratios, or other formula components as determined by the board.
(3) through (5) remain the same.
AUTH: 39-71-2315, 39-71-2316, MCA
IMP: 39-71-2316, 39-71-2330,
REASON: This amendment to ARM 2.55.408 is reasonably necessary at this time to reflect the 2009 edition of the National Council on Compensation Insurance Retrospective Rating Manual. Pursuant to 39-71-2316(1)(e), MCA, State Fund must belong to a licensed workers' compensation advisory organization or a licensed workers' compensation rating organization. The National Council on Compensation Insurance (NCCI) is the advisory organization designated by the commissioner pursuant to 33-16-1023, MCA. NCCI provides manuals, including the Retrospective Rating Manual for workers' compensation insurer members. State Fund establishes employer retrospective rating plans utilizing the methods and formulas published in the manual. Section 39-71-2341, MCA, is deleted from the implementing section because this statute was repealed in 2001.
4. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to Nancy Butler, Montana State Fund, P.O. Box 4759, 5 South Last Chance Gulch, Helena, Montana 59604-4759; telephone (406) 444-7725; fax (406) 444-1493; or e-mail email@example.com. Any comments must be received no later than 5:00 p.m., December 30, 2009.
5. If persons who are directly affected by the proposed action wish to express their data, views, or arguments, orally or in writing at a public hearing, they must make a written request for a hearing and submit this request along with any written comments to Nancy Butler at the above address no later than 5:00 p.m., December 30, 2009.
6. If the agency receives requests for a public hearing on the proposed action from either 10% or 25, whichever is less, of the persons who are directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. Ten percent of those persons directly affected has been determined to be 2,700 persons based on 27,000 policyholders.
7. The Montana State Fund maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request which includes the name, e-mail, and mailing address of the person and specifies that the person wishes to receive notices regarding the Montana State Fund. If you prefer to receive notices by e-mail, please indicate this in your request. Such written request may be mailed or delivered to Nancy Butler, Montana State Fund, P.O. Box 4759, 5 South Last Chance Gulch, Helena, Montana, 59604-4759; faxed to the office at (406) 444-1493; e-mail firstname.lastname@example.org; or may be made by completing a request form at any rules hearing held by the Montana State Fund.
8. An electronic copy of this Notice of Proposed Amendment is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that if a discrepancy exists between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.
9. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.
/s/ Nancy Butler
Nancy Butler, General Counsel
/s/ Joe Dwyer
Chairman of the Board
/s/ Michael P. Manion
Michael P. Manion, Chief Legal Counsel
and Rule Reviewer
Certified to the Secretary of State November 16, 2009.