BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY

                                                STATE OF MONTANA

 

In the matter of the adoption of New Rules I through VII pertaining to reimbursement of workers' compensation premiums due to providing high-quality work-based learning opportunities

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NOTICE OF ADOPTION

 

            TO: All Concerned Persons

 

            1. On November 6, 2020, the Department of Labor and Industry (department) published MAR Notice No. 24-29-365 pertaining to the public hearing on the proposed adoption of the above-stated rules at page 2033 of the 2020 Montana Administrative Register, Issue Number 21.

 

            2. The department held a public hearing in Helena on December 1, 2020, over the Zoom videoconference and telephonic platform at which one member of the public commented. No written comments were received during the public comment period.

 

            3. The department has thoroughly considered the comments made. A summary of the comments and the department's responses are as follows:

 

COMMENT 1: A commenter stated it applauded the efforts to provide work-based learning opportunities for students.

 

RESPONSE 1: The department acknowledges the comment.

 

COMMENT 2:  A commenter stated that New Rule V as drafted creates some difficulty for workers' compensation insurance carriers because it requires proof of premiums paid for each student from the carrier.  Many insurance carriers in this state do not collect payment data associated with each individual employee.  Instead, the payroll reports identify the amount of payment for a particular class code.  The new rule seeks an attestation or verification from the insurance carrier which the insurance carrier may not be able to provide.  The commenter suggested that the rule be amended to require an affidavit or declaration, the same method for Plan I, self-insured employers.

 

RESPONSE 2: The department acknowledges the commenter's concern.  To address the concern while also receiving the information necessary to meet statutory obligations, New Rule V is amended from the proposal as set forth in paragraph 5 below.

 

            4. The department has adopted New Rule I (24.22.701), New Rule II (24.22.704), New Rule III (24.22.707), New Rule IV (24.22.710), New Rule VI (24.22.716), and New Rule VII (24.22.719) as proposed.

 

            5. The department has adopted New Rule V (24.22.713) with the following changes, stricken matter interlined, new matter underlined:

           

            NEW RULE V (24.22.713)  REIMBURSEMENT APPLICATION PROCESS 

            (1) remains as proposed.

            (2) Within 45 days of the date of the department's notice of eligibility, the employer shall complete an application electronically through the department's portal and provide all required documents. The application must include:

            (a) proof of payment from the employer's workers' compensation provider of the workers' compensation premiums paid for each student in each qualified high-quality work-based learning opportunity and that each student's payroll was included. If the business entity is self-insured, the employer must submit an affidavit or declaration attesting to the premiums workers' compensation premiums paid per semester for students employed in a high-quality work-based learning opportunity;

            (b) through (4) remain as proposed.

 

/s/ QUINLAN L. O'CONNOR Quinlan L. O'Connor Alternate Rule Reviewer	/s/  BRENDA NORDLUND Brenda Nordlund, Acting Commissioner DEPARTMENT OF LABOR AND INDUSTRY

 

 

            Certified to the Secretary of State December 15, 2020.