BEFORE THE STATE AUDITOR AND COMMISSIONER OF INSURANCE
OF THE STATE OF MONTANA

TO:  All Concerned Persons

1.  On April 28, 2008, the department proposes to amend the above-stated rule.

2. The department 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 Classification Review Committee not later than 5:00 p.m., April 21, 2008, to advise us of the nature of the accommodation that you need. Please contact Tim Hughes, National Council on Compensation Insurance, Inc., 10920 W. Glennon Dr., Lakewood, Colorado 80226; telephone (303) 969-9456; fax (303) 969-9423; or e-mail tim_hughes@ncci.com.

3. The rule as proposed to be amended provides as follows, stricken material interlined, new material underlined:

6.6.8301 ESTABLISHMENT OF CLASSIFICATION FOR COMPENSATION PLAN NO. 2 (1) The committee hereby adopts and incorporates by reference the NCCI Basic Manual for Workers Compensation and Employers Liability Insurance, 2001, ed., as supplemented through June 18, 2004, October 26, 2006, which establishes classifications with respect to employers electing to be bound by compensation plan No. 2 as provided in Title 39, chapter 71, part 22, MCA. A copy of the Basic Manual for Workers Compensation and Employers Liability Insurance is available for public inspection at the Office of the Commissioner of Insurance, 840 Helena Ave., Helena, MT 59601. Copies of the Basic Manual for Workers Compensation and Employers Liability Insurance may be obtained by writing to the Montana Classification Review Committee in care of the National Council on Compensation Insurance, Inc., 10920 W. Glennon Dr., Lakewood, Colorado 80226. Persons obtaining a copy of the Basic Manual for Workers Compensation and Employers Liability Insurance must pay the committee's cost of providing such copies.

(2) remains the same.

AUTH: 33-16-1012, MCA

IMP: 2-4-103, 33-16-1012, MCA

4. STATEMENT OF REASONABLE NECESSITY: It is necessary to amend ARM 6.6.8301 to update references to the NCCI Basic Manual for Workers Compensation and Employers Liability. Changes to the NCCI Basic Manual for Workers Compensation and Employers Liability affect classifications that apply to various industries. The proposed changes are as follows:

A. Establish a new state special treatment for Code 6204 WELL DRILLING-- WATER DRIVERS.

Pump installation is to be separately classified from water well drilling provide that (1) verifiable payroll records are maintained for each operation, and (2) drilling equipment is not used to install the pump.

B. Revise the Montana Construction Premium Credit Program. The proposed changes will:

Revise the exiting Montana Construction Premium Credit Program (CPCP) rules to create a more uniform approach.

Eliminate the table of credits from NCCI's Basic Manual for Workers' Compensation and Employers Liability Insurance and replace it with credits based on a formula approach among states with similar programs.

Implement the Contracting Classification Premium Adjustment Program Workers Compensation Premium Credit Application, NC5000. This is a national application form that will be used to apply for the Montana CPCP credit.

5. Amendment "A" is intended to become effective July 1, 2008, and Amendment "B" is intended to become effective July 1, 2009. Changes to ARM 6.6.8301 are effective the day after publication of the Notice of Amendment.

6. Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to: Tim Hughes, National Council on Compensation Insurance, Inc., 10920 W. Glennon Dr., Lakewood, Colorado 80226, or by e-mail to tim_hughes@ncci.com no later than April 28, 2008.

7. 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 written request for a hearing and submit this request along with any written comments to Tim Hughes at the above address no later than April 28, 2008.

8. If the committee 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 150 persons based on the 15 businesses who have indicated interest in the rules of this committee and who the committee has determined could be directly affected by these rules.

9. All parties interested in receiving notification of any change in rules pertaining to this subject should contact the Rule Reviewer in writing at 840 Helena Ave., Helena, Montana, 59601.

10. The bill sponsor notice requirements of 2-4-302, MCA, do not apply.

Certified to Secretary of State March 17, 2008.