Administrative Rules of the State of Montana

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 2.55.327A pertaining to the construction industry premium credit program

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NOTICE OF PROPOSED AMENDMENT

NO PUBLIC HEARING CONTEMPLATED

TO: All Concerned Persons

1. On January 23, 2009, 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 29, 2008, 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 nbutler@mt.gov.

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, ~~2007~~ 2008, 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

STATEMENT OF REASONABLE NECESSITY: 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, 2008. 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.

2.55.327A CONSTRUCTION INDUSTRY PREMIUM CREDIT PROGRAM

(1) and (2) remain the same.

(3) The following class codes are the construction codes eligible for the construction industry premium credit program:

3365 5059 5215 5445 5506 5645 6204 6365 8227

3719 5069 5221 5462 5507 5651 6217 6400 9521

3724 5102 5222 5472 5508 5703 6229 7538 9534

3726 5146 5223 5473 5511 5705 6233 7601 9552

5020 5160 5348 5474 5535 6003 6251 7605

5022 5183 5402 5478 5537 6005 6252 7611

5037 5188 5403 5479 ~~5538~~ 6017 6306 7612

5040 5190 5437 5480 5551 6018 6319 7613

5057 5213 5443 5491 5610 6045 6325 7855

(4) through (6) remain the same.

AUTH: 39-71-2315, 39-71-2316, MCA

IMP: 39-71-2211, 39-71-2311, 39-71-2316, 39-71-2330, MCA

STATEMENT OF REASONABLE NECESSITY: Montana law, 39-71-2211, MCA, provides for a construction industry premium credit program. The statute provides that State Fund may adopt the plan filed by the advisory organization designated in 33-16-1023, MCA, which is the National Council on Compensation Insurance (NCCI). The installation of sheet metal products was previously assigned to classification code #5538, which was discontinued, and classification code #5535 was erected in its place. NCCI recommended the change as part of its national research project to ensure that the classification system remains healthy, viable, and responsive to the needs of the workers' compensation industry. The class code change was adopted by the Montana Classification and Review Committee for use in Montana. The change must be made to allow classification code #5535 to be available for the next fiscal year's construction credit program participants.

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 nbutler@mt.gov. Any comments must be received no later than January 5, 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 January 5, 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 nbutler@mt.gov; 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 notice requirements of 2-4-302, MCA, do not apply.

/s/ Nancy Butler

Nancy Butler, General Counsel

Rule Reviewer

/s/ Joe Dwyer

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 17, 2008.