H.B. 225 Enrolled

ASSESSMENT ON WORKERS' COMPENSATION
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Gerry A. Adair
AN ACT RELATING TO REVENUE AND TAXATION; PERMITTING THE DEPARTMENT
OF WORKFORCE SERVICES TO IMPOSE AN ASSESSMENT RELATED TO THE
EMPLOYERS' REINSURANCE FUND; PROVIDING AN EFFECTIVE DATE; AND
PROVIDING A REPEAL DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
ENACTS:
59-9-101.1, Utah Code Annotated 1953
63-55b-5901, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-9-101.1 is enacted to read:
59-9-101.1. Employers' Reinsurance Fund special assessment.
(1) For purposes of this section:
(a) "Calendar year" means a time period beginning January 1 and ending December 31
during which an assessment is imposed.
(b) "Department" means the Department of Workforce Services.
(c) "Total workers' compensation premium income" has the same meaning as under
Subsection 59-9-101(2).
(2) (a) For calendar years beginning on January 1, 1998, through December 31, 2000, the
following shall pay to the commission, on or before March 31 of each year, an assessment imposed
by the department under Subsection (3):
(i) an admitted insurer writing workers' compensation insurance in this state, including the
Workers' Compensation Fund of Utah created under Title 31A, Chapter 33, Workers'
Compensation Fund of Utah; and
(ii) an employer authorized under Section 35A-3-201 to pay workers' compensation direct.
(b) The assessment imposed under Subsection (3) shall be in addition to:

(i) the premium assessment imposed under Subsection 59-9-101(2); and
(ii) the assessment imposed under Section 35A-3-202.
(3) (a) If the conditions described in Subsection (3)(b) are met, the department may impose
an assessment in accordance with Subsections (3)(c) and (d) of up to 2% of:
(i) the total workers' compensation premium income received by the insurer from workers'
compensation insurance in this state during the preceding calendar year; or
(ii) if authorized under Section 35A-3-201 to pay workers' compensation direct, the amount
calculated under Section 35A-3-202 for a self-insured employer that is equivalent to the total
workers' compensation premium income.
(b) The department may impose the assessment described in Subsection (3)(a) if:
(i) the department determines that:
(A) all admitted insurers writing workers' compensation insurance in this state shall pay the
maximum 7.25% of the premium income under Subsection 59-9-101(2)(c)(i); and
(B) all employers authorized to pay compensation direct shall pay the maximum 7.25%
assessment under Section 35A-3-202; and
(ii) the maximum 7.25% of the premium income is insufficient to:
(A) provide payment of benefits and expenses from the Employers' Reinsurance Fund to
project a funded condition of the Employers' Reinsurance Fund with assets greater than liabilities
by no later than June 30, 2025; or
(B) maintain the minimum approximate assets required in Subsection 59-9-101(2)(d)(iv).
(c) On or before each October 15 of the preceding year and following a public hearing, the
department shall determine:
(i) whether an assessment will be imposed under this section for a calendar year; and
(ii) if the assessment will be imposed, the percentage of the assessment applicable for the
calendar year.
(d) The department shall:
(i) base its determination on the recommendations of the qualified actuary required in
Subsection 59-9-101(2)(d)(i); and

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(ii) take into consideration the recommended premium assessment rate recommended by the
actuary under Subsection 59-9-101(2)(d)(ii).
(4) An employer shall aggregate all assessments imposed under this section and Section
35A-3-202 or 59-9-101 to determine whether the total assessment obligation shall be paid in
quarterly installments in accordance with Sections 35A-3-202 and 59-9-104.
(5) The commission shall promptly remit the assessment collected under Subsection (2) to
the state treasurer for credit to the Employers' Reinsurance Fund created under Section 35A-3-702.
Section 2. Section 63-55b-5901 is enacted to read:
63-55b-5901. Repeal date for Section 59-9-101.1.
Section 59-9-101.1 is repealed January 1, 2001, and the department may not impose an
assessment under Section 59-9-101.1 after December 31, 2000.
Section 3. Effective date.
This act takes effect on July 1, 1997.

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