WSR 10-17-028

PERMANENT RULES

DEPARTMENT OF

LABOR AND INDUSTRIES

[ Filed August 9, 2010, 10:20 a.m. , effective September 9, 2010 ]


     Effective Date of Rule: Thirty-one days after filing.

     Purpose: This rule making is being adopted in response to SSB 6349 (chapter 160, Laws of 2010), which established the farm internship program. Small farms located in San Juan and Skagit counties with annual sales of less than $250,000 per year are eligible to enroll in the program. This rule making will adopt amendments to 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. New farm intern risk classifications have been established. Each classification will have a different composite rate depending on the type of farm.

     Citation of Existing Rules Affected by this Order: Amending WAC 296-17-31014(7); and new WAC 296-17-89503, 296-17A-4814, 296-17A-4815, and 296-17A-4816.

     Statutory Authority for Adoption: RCW 51.16.035, 51.16.100.

      Adopted under notice filed as WSR 10-13-135 on June 22, 2010.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 4, Amended 1, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 4, Amended 1, Repealed 0.

     Date Adopted: August 9, 2010.

Judy Schurke

Director

OTS-3267.2


AMENDATORY SECTION(Amending WSR 04-18-025, filed 8/24/04, effective 10/1/04)

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, 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?

     Small farms with annual sales of less than two hundred fifty thousand dollars per year located in San Juan or Skagit 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.

[Statutory Authority: RCW 51.04.020 and 51.16.035. 04-18-025, § 296-17-31014, filed 8/24/04, effective 10/1/04. Statutory Authority: RCW 51.16.035. 98-18-042, § 296-17-31014, filed 8/28/98, effective 10/1/98.]

OTS-3226.1


NEW SECTION
WAC 296-17-89503   Farm internship program industrial insurance, accident fund and medical aid fund by class.  


Base Rates Effective

June 11, 2010

Class Accident

Fund

Medical Aid

Fund

4814 .0960 .1384
4815 .2042 .3300
4816 .3345 .4912

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OTS-3207.3


NEW SECTION
WAC 296-17A-4814    Classification 4814.  


4814-00 Farms: Internship program (to be assigned only by the agricultural specialist)

     Applies to qualified farms engaged in providing an internship program for agricultural education. To qualify, the farm must hold a valid certification from labor and industries to provide an internship program that includes a curriculum of learning modules and supervised participation. The internship program is designed to teach farm interns about farming practices and farm enterprise.

     Classification 4814 can only be assigned to those farms which have one of the following classifications assigned to their account as the governing classification: 4806, 4810, or 4813. For governing classification, reference: WAC 296-17-310171.

     Special note: The term "farm intern" applies to those certified to participate in the farm internship program. Intern hours must be reported exclusively in classification 4814. All other farm employees hours are to be reported separately in the applicable farm classification that applies to the farm operation.

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OTS-3208.3


NEW SECTION
WAC 296-17A-4815   Classification 4815.  


4815-00 Farms: Internship program (to be assigned only by the agricultural specialist)

     Applies to qualified farms engaged in providing an internship program for agricultural education. To qualify, the farm must hold a valid certification from labor and industries to provide an internship program that includes a curriculum of learning modules and supervised participation. The internship program is designed to teach farm interns about farming practices and farm enterprise.

     Classification 4815 can only be assigned to those farms which have one of the following classifications assigned to their account as the governing classification: 4802, 4803, 4805, 4809, 4811, or 4812. For governing classification, reference: WAC 296-17-310171.

     Special note: The term "farm intern" applies to those certified to participate in the farm internship program. Intern hours must be reported exclusively in classification 4815. All other farm employees hours are to be reported separately in the applicable farm classification that applies to the farm operation.

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OTS-3209.3


NEW SECTION
WAC 296-17A-4816   Classification 4816.  


4816-00 Farms: Internship program (to be assigned only by the agricultural specialist)

     Applies to qualified farms engaged in providing an internship program for agricultural education. To qualify, the farm must hold a valid certification from labor and industries to provide an internship program that includes a curriculum of learning modules and supervised participation. The internship program is designed to teach farm interns about farming practices and farm enterprise.

     Classification 4816 can only be assigned to those farms which have one of the following classifications assigned to their account as the governing classification: 4804, 4808, 7301, 7302, or 7307. For governing classification, reference: WAC 296-17-310171.

     Special note: The term "farm intern" applies to those certified to participate in the farm internship program. Intern hours must be reported exclusively in classification 4816. All other farm employees hours are to be reported separately in the applicable farm classification that applies to the farm operation.

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