Application of discount to experience rate for employers establishing operations in this state

If an employer who is beginning operations in this state can prove that for similar operations in another jurisdiction the employer received an experience-rate-based discount on workers' compensation premiums in that jurisdiction, the organization may discount that employer's premium in this state. The employer must be setting up a permanent operation and the discount must be part of an economic development package. The discount will be applied after one year. Premium discounts for the employer's second through fourth years of operation in this state will be retrospectively based on the employer's most recent out-of-state experience rate. Premiums for the employer's fifth year of operation in this state will be based on the applicable experience rating programs in this state. The out-of-state employer discount may not exceed the maximum allowable discount under the organization's experience rating plans. An employer who self-insured in another jurisdiction is not eligible for the discount.