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BEFORE THE DIRECTOR

DEPARTMENT OF CONSUMER AND BUSINESS SERVICES

WORKERS’ COMPENSATION DIVISION

In the Matter of the Amendment of

Oregon Administrative Rule (OAR)

Chapter 436, Division 160

Electronic Data Interchange

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ORDER OF ADOPTION

No. 03-064

The Director of the Department of Consumer and Business Services, pursuant to the general rulemaking authority under ORS 656.726(4), and in accordance with the procedure provided by ORS 183.335, amends OAR Chapter 436, Division 160, Electronic Data Interchange.

On September 12, 2003, the Workers’ Compensation Division filed the Notice of Proposed Rulemaking/Hearing with the Secretary of State to amend rules governing Electronic Data Interchange. A Notice of Periodic Review of Rules was contained in the Notice.  The Statement of Need and Fiscal Impact accompanied the Notice. Copies of the Notice and Statement were mailed to interested persons and legislators in accordance with ORS 183.335(1) and OAR 436-001-0000 and posted to the Workers’ Compensation Division’s web site. The notice was published in the October, 2003 Oregon Bulletin.

On October 22, 2003, a public hearing was held as announced. In addition, the record was held open for written testimony through 5:00 p.m. October 27, 2003. A written summary of testimony received and agency responses thereto, as well as principal documents relied upon, will be on file and available for public inspection upon request during regular business hours, 8:00 a.m. to 5:00 p.m., Monday through Friday, in the Administrator’s Office, Workers’ Compensation Division, Labor & Industries Building, 350 Winter Street NE, Salem, Oregon 97301-3879.

RULE SUMMARY:

These rules have been amended in part to reflect Senate Bill 233’s changes to ORS chapter 656. SB 233 changed the notification requirements for termination of guaranty contracts and for reporting coverage elections and cancellations of elections. In addition to a number of “housekeeping” amendments, these rules:

(436-160-0310) Eliminate the requirement for insurers to report Standard Industrial Classification Codes or North American Industry Classification System codes; state that National Council on Compensation Insurance codes are sufficient.

(436-160-0350) Eliminate the requirement to report coverage elections and cancellation of elections to the director by endorsement to the guaranty contract.

(436-160-0360) Explain the notice and reporting requirements regarding the insurer’s termination of guaranty contracts.

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