WSR 20-19-132
PROPOSED RULES
DEPARTMENT OF
LABOR AND INDUSTRIES
[Filed September 22, 2020, 1:35 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 20-06-060.
Title of Rule and Other Identifying Information: Chapter 296-17 WAC, General reporting rules, audit and recordkeeping, rates and rating system for Washington workers' compensation insurance; and chapter 296-17A WAC, Classifications for Washington workers' compensation insurance.
Hearing Location(s): On October 27, 2020, at 1 p.m. Joining electronically: Zoom meeting at https://zoom.us/j/97481806932, Meeting ID: 974 8180 6932, Passcode: 3B^K7QVm. Joining by phone: +1-253-215-8782 US (Tacoma), Meeting ID: 974 8180 6932, Passcode: 43372117; or on October 29, 2020, at 1 p.m. Joining electronically: Zoom meeting at https://zoom.us/j/97217538063, Meeting ID: 972 1753 8063, Passcode: Oct2920!. Joining by phone: +1-253-215-8782 US (Tacoma), Meeting ID: 972 1753 8063, Passcode: 22230074. The hearings start at 1:00 p.m. and will continue until all oral comments are received.
Date of Intended Adoption: November 30, 2020.
Submit Written Comments to: Jo Anne Attwood, P.O. Box 44148, Olympia, WA 98504-4148, email JoAnne.Attwood@Lni.wa.gov, fax 360-902-4988, by October 30, 2020, by 5 p.m.
Assistance for Persons with Disabilities: Contact Jo Anne Attwood, phone 360-902-4777, fax 360-902-4988, TTY 360-902-5797, email JoAnne.Attwood@Lni.wa.gov, by October 25, 2020.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This proposal is to allow contractors of the United States Department of Energy (DOE) working at the Hanford site to have their contractors and subcontractors covered under the state fund. We propose amending one classification, establishing nine new classifications and rates, and establishing reporting requirements. Currently, these contractors are covered under a special insuring agreement/memorandum of understanding (MOU) as authorized under RCW 51.04.130. DOE will identify those contractors who will be covered under the special insuring agreement.
Proposal: If this proposal is adopted, employers working under a contract with DOE who are not identified by DOE as part of the special insuring agreement/MOU would:
Report and pay for their DOE contract work to the department of labor and industries (L&I) using the appropriate proposed classifications effective January 1, 2021.
Not have their on-site premiums or losses included in their experience calculation.
Not have their on-site premiums or losses participate in the retrospective rating program.
Be subject to intermittent premium adjustments for up to ten years as L&I will periodically review premium reporting and loss experience to ensure the rates for the DOE classifications are adequate.
Intermittent adjustments will ensure L&I collects the appropriate level of premium from contractors. Adjustments may result in assessment of additional premiums or refunds of premium overpayments.
This proposal is:
Amending Classification 7002 for administrative and professional employees of contractors;
Creating Classification 7004 for fire department contractors;
Creating Classification 7005 for police and security contractors;
Creating Classification 7006 through 7011 for a variety of contractors based on groups of common composite rates;
Creating Classification 7015 for contractors of the Hanford vitrification plant;
Creating new rates for all proposed classifications; and
Creating a new reporting rule.
Amending WAC 296-17A-7002 Classification 7002.
New WAC 296-17A-7004 Classification 7004, 296-17A-7005 Classification 7005, 296-17A-7006 Classification 7006, 296-17A-7007 Classification 7007, 296-17A-7008 Classification 7008, 296-17A-7009 Classification 7009, 296-17A-7010 Classification 7010, 296-17A-7011 Classification 7011, 296-17A-7015 Classification 7015, 296-17-89510 Department of energy rates, and 296-17-950 Department of energy reporting.
Reasons Supporting Proposal: This proposal will ensure DOE contractors and subcontractors will be covered by the state fund for workers' compensation insurance while working at the DOE Hanford site. This new classification and rating system will ensure that appropriate levels of premium are collected to offset losses for this work.
Statutory Authority for Adoption: RCW 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, 360-902-4777; Implementation: Keith Bingham, Tumwater, 360-902-4826; and Enforcement: Victoria Kennedy, Tumwater, 360-902-4997.
A school district fiscal impact statement is not required under RCW 28A.305.135.
A cost-benefit analysis is not required under RCW 34.05.328. A cost-benefit analysis is not required per RCW 34.05.328 (5)(b)(vi), as the proposed rules adjust rates pursuant to legislative standards.
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW 19.85.025(3) as the rule content is explicitly and specifically dictated by statute; and rules set or adjust fees under the authority of RCW 19.02.075 or that set or adjust fees or rates pursuant to legislative standards, including fees set or adjusted under the authority of RCW 19.80.045.
September 22, 2020
Joel Sacks
Director
NEW SECTION
WAC 296-17-89510Department of Energy rates.
These rates apply to businesses contracting with the Department of Energy.
Effective January 1, 2021
Class
Accident Fund
Stay at Work
Medical Aid Fund
Supplemental Pension Fund
Composite Rate
7002
0.2303
0.0034
0.1340
0.1372
0.5049
7004
5.5371
0.0858
2.1073
0.1372
7.8674
7005
4.2295
0.0657
1.5088
0.1372
5.9412
7006
0.2322
0.0035
0.1071
0.1372
0.4800
7007
1.5358
0.0236
0.7287
0.1372
2.4253
7008
3.3528
0.0519
1.2354
0.1372
4.7773
7009
3.7630
0.0580
1.5417
0.1372
5.4999
7010
4.8838
0.0752
2.1108
0.1372
7.2070
7011
7.5947
0.1172
3.0774
0.1372
10.9265
7015
7.5947
0.1172
3.0774
0.1372
10.9265
Note:
The premiums assessed using these rates are not subject to experience rating (WAC 296-17-855) or retrospective rating (chapter 296-17B WAC).
NEW SECTION
WAC 296-17-950Department of Energy reporting.
This rule applies to all work performed within the boundaries of the Hanford Site pursuant to a contract with the U.S. Department of Energy, whether directly or indirectly, that is subject to the provisions of the Industrial Insurance Act under Title 51 RCW.
(1) Reporting requirement. Any employer with workers performing work within the scope of this rule shall report that work, and pay premiums on that work, according to this rule.
(2) Premium basis. The basis for calculation of premiums for all work within the scope of this rule shall be actual worker hours.
(3) Risk classifications. All work performed within the scope of this rule shall be reported in the following Hanford risk classifications:
(a) WAC 296-17A-7002 Classification 7002 Department of Energy Contractors – Administrative and professional employees;
(b) WAC 296-17A-7004 Classification 7004 Fire department;
(c) WAC 296-17A-7005 Classification 7005 Police and security;
(d) WAC 296-17A-7006 through 296-17A-7011 Department of Energy classifications based on groups of common composite rates; and
(e) WAC 296-17A-7015 Classification 7015 Department of Energy contractors - Vitrification plant.
(4) Recordkeeping. Any employer within the scope of this rule must create and maintain records of all work performed within the scope of this rule that are sufficient for the Department to determine the proper risk classification and premiums for such work. An employer that fails to create and maintain such records is required to report and pay premiums on the work in the risk class within the scope of this rule with the highest composite premium rate.
(5) Division of hours. Employers who maintain records sufficient to do so may report a worker's hours in more than one applicable Hanford risk classes. Employers who have workers who perform work both within and outside the scope of this rule may report a worker's hours in multiple risk classifications, provided the non-Hanford risk classifications do not prohibit reporting in multiple classifications.
(6) Experience rating and retrospective rating. Premiums for work within the scope of this rule will not be experience rated, and neither the premiums, nor any losses associated with work within the scope of this rule will be used in an employer's experience calculations. Premiums for work within the scope of this rule are not subject to retrospective rating, and neither the premiums nor losses within the scope of this rule will be used in retrospective rating calculations.
(7) Retroactive adjustment of premium rates. Notwithstanding any provisions of this chapter, the premium rates adopted for work within the scope of this rule are subject to retroactive adjustment by the Department for up to ten years. Periodically, the Department will review the premium reporting and loss experience, and may retroactively adjust premium rates if necessary to ensure that the rates for the risk classes within the scope of this rule are neither inadequate nor excessive. If the Department retroactively increases rates, the Department will recalculate each affected employer's premiums, provide each affected employer with notice of the additional premiums due, and give the employer sixty days to pay the additional premiums without penalty or interest. If the Department retroactively decreases rates, the Department will recalculate each affected employer's premiums, and refund the difference between the premiums paid and the adjusted premiums due.
AMENDATORY SECTION(Amending WSR 07-01-014, filed 12/8/06, effective 12/8/06)
WAC 296-17A-7002Classification 7002.
((7002-00 Department of Energy contract
Applies to establishments that have contracted with the department of energy at DOE's nuclear facilities within the state of Washington to operate, construct or service the nuclear site. At present, the only site covered by this contract is at Richland. These contractors can be identified by the assignment of account number 000,100-xx with each contractor given a separate subaccount. The coverage provided by this classification is usually for the possibility of workers being exposed to nuclear radiation although the coverage applies to any type of on-the-job injury. Benefits for injured workers covered under this contract are paid from a special fund which DOE pays into to cover all industrial insurance and medical aid payments made to or in behalf of the injured workers and/or their beneficiaries. The premium paid by the contractors to labor and industries is limited to the supplemental pension premium assessment.
Special note: This classification is used to administer the DOE contract and collect supplemental pension fund premiums.))
7002 Department of Energy contractors - Administrative and professional employees
Applies to contractors of the Department of Energy usually working in an office or professional environment performing clerical, administrative, and professional services such as, but not limited to:
• Accounting;
• Auditing;
• Benefits coordination;
• Classroom training;
• Computer systems analysis;
• Contract administration;
• Drafting;
• Human resources;
• Legal;
• Project management;
• Risk management; and
• Software engineering.
Excludes:
• Firefighters who are to be reported separately in classification 7004;
• Law enforcement officers who are to be reported separately in classification 7005; and
• Construction activities described in classifications 7006 through 7011 which are reported in the applicable DOE construction classification.
NEW SECTION
WAC 296-17A-7004Classification 7004.
7004 Fire department
Applies to employees of contractors for the Department of Energy, who provide firefighting and fire prevention services.
Duties of firefighters include, but are not limited to:
• Administering first aid and artificial respiration to injured persons and those overcome by fire and smoke;
• Controlling and extinguishing fires;
• Inspecting buildings for fire hazards and compliance with fire prevention ordinances;
• Issuing citations to building owners listing the fire regulation violations to be corrected;
• Maintaining firefighting equipment;
• Protecting lives and property; and
• Responding to fire alarms and other emergencies.
This classification includes paramedics employed by the fire department.
NEW SECTION
WAC 296-17A-7005Classification 7005.
7005 Police and security
Applies to employees of contractors for the Department of Energy, who provide law enforcement and security services.
Duties of law enforcement officers include, but are not limited to:
• Arresting violators;
• Conducting criminal investigations;
• Directing traffic;
• Giving first aid;
• Guarding persons detained at the police station;
• Investigating disturbances of the peace;
• Patrolling by motor vehicle, motorcycle, bicycle, or on foot or horseback;
• Preventing crimes; and
• Responding to burglar or fire alarms.
Special note: State fund workers' compensation is not provided to volunteer firefighters covered by chapter 41.24 RCW and emergency service workers covered by chapter 38.52 RCW.
NEW SECTION
WAC 296-17A-7006Classification 7006.
Applies to work reportable under the Hanford special reporting rule, that but-for this special reporting rule, would be reportable in the following risk classifications:
7006-00 Classification 4900 Construction project or site superintendent/manager;
7006-01 Classification 4911 Construction estimator;
7006-02 Classification 4901 Consulting engineer and geologist;
7006-03 Classification 4903 Safety, building inspector;
7006-04 Classification 6109 Physicians and medical clinics;
7006-05 Classification 6406 Storekeeper;
7006-06 Classification 6909 Laboratory; and
7006-30 Not otherwise classified. Any other state fund class whose composite base rate is closest to this class's base composite rate.
NEW SECTION
WAC 296-17A-7007Classification 7007.
Applies to work reportable under the Hanford special reporting rule, that but-for this special reporting rule, would be reportable in the following risk classifications:
7007-00 Classification 0521 Painting: Buildings-interior work;
7007-01 Classification 0308 Lawn care maintenance;
7007-02 Classification 0606 Vending machine installation, service and repair;
7007-03 Classification 0601 Electrical wiring: Buildings and structures;
7007-04 Classification 5206 Construction/logging/trucking – Permanent yard;
7007-05 Classification 0608 Telephone and electrical alarm system installation;
7007-06 Classification 6602 Janitorial, commercial cleaning;
7007-07 Classification 1801 Lead smelting, rolling mills, metal recovery;
7007-08 Classification 3411 Auto repair shop;
7007-09 Classification 1007 Environmental surveyors, geophysical exploration, hygienist;
7007-10 Classification 4910 Property management;
7007-11 Classification 3402 Machine shops and machinery mfg;
7007-12 Classification 3404 Metal good mfg;
7007-13 Classification 3701 Chemical mixing and manufacturing; and
7007-30 Not otherwise classified. Any other state fund class whose composite base rate is closest to this class's base composite rate.
NEW SECTION
WAC 296-17A-7008Classification 7008.
Applies to work reportable under the Hanford special reporting rule, that but-for this special reporting rule, would be reportable in the following risk classifications:
7008-00 Classification 0219 Guardrails, street signs and traffic lights installation;
7008-01 Classification 1704 Quarries;
7008-02 Classification 0603 Machinery installation, service and repair;
7008-03 Classification 0306 Plumbing;
7008-04 Classification 0607 Appliance installation svc repair, store svs contractor, and locksmiths;
7008-05 Classification 0112 Sand and gravel production including dealers;
7008-06 Classification 0602 Elevator installation, svs and repair;
7008-07 Classification 1802 Aluminum smelting; and
7008-30 Not otherwise classified. Any other state fund class whose composite base rate is closest to this class's base composite rate.
NEW SECTION
WAC 296-17A-7009Classification 7009.
Applies to work reportable under the Hanford special reporting rule, that but-for this special reporting rule, would be reportable in the following risk classifications:
7009-00 Classification 0105 Fence erection and repair N.O.C.;
7009-01 Classification 0101 Excavation, road construction, land clearing N.O.C.;
7009-02 Classification 0107 Underground utility line const and pipelaying N.O.C.;
7009-03 Classification 0104 Dredging N.O.C.;
7009-04 Classification 0108 Sewer and septic system cons, undgrd tank install, repair, remove;
7009-05 Classification 0509 Overhead power and transmission line construction;
7009-06 Classification 0502 Floor and counter covering installation;
7009-07 Classification 1703 Open cut mines;
7009-08 Classification 3506 Mobile crane, hoisting services, and concrete pumping;
7009-09 Classification 0301 Landscape construction and renovation;
7009-10 Classification 0210 Asphalt paving – Highway, streets and roads;
7009-11 Classification 0307 HVAC systems – Installation, service and repair;
7009-12 Classification 0513 Inter finish carpentry;
7009-13 Classification 0212 Asphalt paving or surfacing N.O.C.; and
7009-30 Not otherwise classified. Any other state fund class whose composite base rate is closest to this class's base composite rate.
NEW SECTION
WAC 296-17A-7010Classification 7010.
Applies to work reportable under the Hanford special reporting rule, that but-for this special reporting rule, would be reportable in the following risk classifications:
7010-00 Classification 0517 Factory-built home set-up by contractor/manufacturer;
7010-01 Classification 0403 Sign erection, repair, removal;
7010-02 Classification 0214 Concrete work–highways, streets, roads and sidewalks;
7010-03 Classification 0516 Building repair, remodeling and carpentry N.O.C.;
7010-04 Classification 1702 Underground mines;
7010-05 Classification 0511 Glass installation: Buildings;
7010-06 Classification 0103 Drilling and geophysical exploration N.O.C.;
7010-07 Classification 0519 Sheet metal siding, gutter and downspout installation;
7010-08 Classification 0508 Tower, tank, windmill and crane construction;
7010-11 Classification 0512 Insulation installation and asbestos abatement work;
7010-12 Classification 0514 Garage door installation, service, and repair;
7010-13 Classification 0518 Nonwood frame building construction;
7010-14 Classification 0217 Concrete work – Foundations and flatwork;
7010-15 Classification 0541 Wallboard taping – Discounted rate;
7010-16 Classification 1101 Delivery services;
7010-17 Classification 4305 Solid waste, landfill, hazardous waste and toxic material processing or handling N.O.C.; and
7010-30 Not otherwise classified. Any other state fund class whose composite base rate is closest to this class's base composite rate.
NEW SECTION
WAC 296-17A-7011Classification 7011.
Applies to work reportable under the Hanford special reporting rule, that but-for this special reporting rule, would be reportable in the following risk classifications:
7011-00 Classification 0507 Roof work – Construction and repair;
7011-01 Classification 0540 Wallboard installation - Discounted rate;
7011-02 Classification 0106 Tree care and pruning services N.O.C.;
7011-03 Classification 0510 Wood frame building construction and alterations;
7011-04 Classification 0701 Dam construction;
7011-05 Classification 0201 Bridge, bulkhead and tunnel construction;
7011-06 Classification 0302 Masonry construction;
7011-07 Classification 0504 Painting: Building and structures – Exterior work;
7011-08 Classification 0202 Pile construction, wharf, pier and dock construction, diving operations;
7011-09 Classification 0303 Plastering, stuccoing and lathing: Buildings;
7011-10 Classification 1102 Trucking; and
7011-30 Not otherwise classified. Any other state fund class whose composite base rate is closest to this class's base composite rate.
NEW SECTION
WAC 296-17A-7015Classification 7015.
7015 Department of Energy contractors – Vitrification plant
Applies to contractors of the Department of Energy operating and maintaining the vitrification plant, also known as "Vit Plant," on the Hanford nuclear reservation. The vitrification process converts liquid radioactive and chemical waste into a solid, stable glass, eliminating environmental risks.
The vitrification process is performed by:
• Mixing waste with silica and other glass-forming materials at the low-activity waste facility;
• Sending the mixture to high-temperature melters where they are heated to 2,100 degrees Fahrenheit to form molten glass;
• Pouring molten glass into containment vessels where it cools to become solid glass; and
• Storing the stabilized waste safely at a federal repository.
Operations and work activities are performed in the following areas of the plant:
• Analytical laboratory;
• Pretreatment facility;
• High-level waste vitrification facility;
• Steam plant;
• Glass former facility;
• Chiller/compressor plant; and
• Low-activity waste vitrification facility.
Excludes:
• Construction activities described in classifications 7006 through 7011 which are reported in the applicable DOE construction classification.