WSR 14-15-114
PROPOSED RULES
DEPARTMENT OF
LABOR AND INDUSTRIES
[Filed July 22, 2014, 8:28 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-11-077.
Title of Rule and Other Identifying Information: Establish rates for farm internship program risk classifications and update reporting rules for workers' compensation insurance. This rule making is necessary as a result of SSB 5123 (chapter 131, Laws of 2014) effective June 12, 2014, which establishes a farm internship program for small employers in a variety of counties.
Hearing Location(s): Labor and Industries (L&I), 7273 Linderson Way S.W., Room S117, Tumwater, WA 98501, on August 26, 2014, at 1:00 p.m.
Date of Intended Adoption: September 3, 2014.
Submit Written Comments to: Jo Anne Attwood, P.O. Box 44148, Olympia, WA 98504-4148, e-mail joanne.attwood@lni.wa.gov, fax (360) 902-5830, by 5:00 p.m., August 26, 2014.
Assistance for Persons with Disabilities: Contact office of information and assistance by August 21, 2014, TTY (360) 902-5797.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Establish rates for farm internship program classifications and update reporting rules for workers' compensation insurance. This rule making is necessary as a result of SSB 5123 (chapter 131, Laws of 2014) effective June 12, 2014, which establishes a farm internship program for small employers in a variety of counties.
Reasons Supporting Proposal: Without this rule making, rates for the farm internship classifications could not take effect. The new rates and updated reporting rule are necessary to ensure proper reporting of hours and collection of premiums for employers participating in the farm internship program.
Statutory Authority for Adoption: RCW 51.04.020 and 51.16.035.
Statute Being Implemented: RCW 51.16.035.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: [L&I], governmental.
Name of Agency Personnel Responsible for Drafting: Jo Anne Attwood, Tumwater, Washington, (360) 902-4777; Implementation: Les Hargrave, Tumwater, Washington, (360) 902-4298; and Enforcement: Victoria Kennedy, Tumwater, Washington, (360) 902-4997.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The agency is exempt from conducting a small business economic impact statement since the proposed rules set or adjust fees or rates pursuant to legislative standards described in RCW 34.05.310 (4)(f) and do not change current coverage options for employers and workers.
A cost-benefit analysis is not required under RCW 34.05.328. Since the proposed rules do not change any existing coverage options for employers or workers and adjust fees pursuant to legislative standards, they are exempted by RCW 34.05.328 (5)(b)(vi) from the requirement for a cost-benefit analysis.
July 22, 2014
Joel Sacks
Director
AMENDATORY SECTION (Amending WSR 10-17-028, filed 8/9/10, effective 9/9/10)
WAC 296-17-31014 Farming and agriculture.
(1) Does this same classification approach apply to farming or agricultural operations?
Yes, but it may not appear so without further explanation. We classify farming and agricultural operations by type of crop or livestock raised. This is done because each type of grower will use different processes and grow or raise multiple crops and livestock which have different levels of hazards. It is common for farmers and ranchers to have several basic classifications assigned to their account covering various types of crops or livestock. If you fail to keep the records required in the auditing recordkeeping section of ((this manual)) chapter 296-17 WAC, and we discover this, we will assign all worker hours for which records were not maintained to the highest rated classification applicable to the work performed.
(2) I am involved in diversified farming and have several basic classifications assigned to my business. Can I have one classification assigned to my account to cover the different types of farming I am involved in?
Yes, your account manager can assist you in determining the single classification that will apply to your business. The name and phone number of your account manager can be found on your quarterly premium report or your annual rate notice. For your convenience you can call us at 360-902-4817 and we will put you in contact with your assigned account manager.
(3) How do you determine what single farming classification will be assigned to my business?
The approach used to assign a single classification to a farming business is much the same as we use for construction or erection contractors. To do this, we will need a break down of exposure (estimate of hours to be worked by your employees) by type of crop or livestock being cared for (classification). This information will be used to estimate the premium which would be paid using multiple classifications. The total premium is then divided by the total estimated hours to produce an average rate per hour. We will select the classification assigned to your business which carries the hourly premium rate which is the closest to the average rate that we produced from the estimated hours. Classification 4806 is not to be assigned to any grower as the single farming classification.
(4) How will I know what single farming classification you have assigned to my business?
We will send you a written notice of the basic classification that will apply to your business.
(5) If I requested a single classification for my farming operation can I change my mind and use multiple classifications?
Yes, but you will need to call your account manager to verify the applicable classifications.
The name and phone number of your account manager can be found on your quarterly premium report or your annual rate notice. For your convenience you can call us at 360-902-4817 and we will put you in contact with your assigned account manager.
(6) I am a farm labor contractor. How is my business classified?
If you are a farm labor contractor we will assign the basic classification that applies to the type of crop being grown, or livestock being cared for. If you contract to supply both machine operators and machinery on a project, all operations are to be assigned to classification 4808.
(7) Farm internship pilot program. Who may participate in the farm internship pilot program created by the department as a result of Title 49 RCW, effective ((June 10, 2010)) June 12, 2014?
Small farms with annual sales of less than two hundred fifty thousand dollars per year located in San Juan ((or)), Skagit, King, Whatcom, Kitsap, Pierce, Jefferson, Spokane, Yakima, Chelan, Grant, Island, Snohomish, Kittitas, Lincoln, and Thurston counties that receive a special certification from the department may have farm interns. Employers who qualify may report no more than three farm interns. Farm internship program risk classifications are: WAC 296-17A-4814, 296-17A-4815, and 296-17A-4816.
NEW SECTION
WAC 296-17-89506 Farm internship program industrial insurance, accident fund, stay at work fund, medical aid fund, and supplemental pension by class.
 
Base Rates Effective
June 12, 2014
Class
Accident Fund
Stay at
Work Fund
Medical Aid
Fund
4814
0.1295
0.0025
0.1379
4815
0.2757
0.0053
0.3291
4816
0.4551
0.0088
0.4899