POLICY
61.05
Section:
Coverage & Jurisdiction
Effective:
5-1-98
Title:
Processing Jail Industries for Cities and/or Counties
Dated:
2-1-98
Cancels: Policy 61.05
See
Also: RCW 36.110 (Free Venture Industries)
RCW 51.32.040 (Exemption of Awards)
This
policy applies when cities or counties establish an enterprise,
or contract with a private sector business or non-profit organization
to establish an enterprise, for producing goods or services and
use jail inmates as employees of the enterprise.
1.
A city or county may participate in any one of three jail
industries programs, in which inmates of that city or county are
employed:
- Tax
Reduction Industry
- Free
Venture Enterprise, Customer Model
- Free
Venture Enterprise, Employer Model
2.
A city or county participating in a Tax Reduction Industry
is responsible for reporting hours for industrial insurance.
A
Tax Reduction Industry is owned and operated by a city or county,
providing goods and services only to tax supported entities or non-profit
organizations.
3.
By contract, either the city or county OR the private employer
or business participating in a Free Venture Enterprise Customer
Model may be responsible for reporting hours for industrial insurance.
Depending
upon the language in the contract for establishing a Free Venture
Enterprise Customer Model, either the city or county OR the private
employer is responsible for reporting hours and paying premium for
industrial insurance.
4.
By contract, the private employer or business entering into
a Free Venture Enterprise Employer Model, with a city or county,
is responsible for reporting hours for industrial insurance.
In
every case where a city or county enters into a contract with a
private employer responsibility of the private employer or business
to report hours and pay premium for industrial insurance.
5.
A new or separate policy will be established for a Free Venture
Enterprise, either Customer Model or Employer Model.
A
new state fund policy for each Free Venture Enterprise will be established,
regardless of whether the applicant has an account or accounts with
state fund or self-insurance, for purposes of reporting hours for
inmates employed in the enterprise.
EXCEPTION:
Local
jurisdictions having coverage under Labor & Industries Self
Insurance program may provide coverage for inmates in a Tax Reduction
Industry through their Self Insurance policy.
7.
The risk classification(s) to be assigned a Free Venture
Enterprise, either Customer Model or Employer Model, will be based
on the nature of business being conducted by the Free Venture Enterprise.
Inmates
working in a Free Venture Enterprise will be reported as employees
in a risk class similar to that which would be assigned other businesses
conducting the same type of operation(s).
8.
Inmates, while incarcerated, are not entitled to time loss benefits.
Reporting
of hours and payment of industrial insurance is required on behalf
of inmates who are considered employees of the jail industry program.
However, time loss benefits are not extended to the inmate while
incarcerated. Refer to RCW 36.110.120(5) and RCW 51.32.040.
9.
In the event of failure of a Free Venture Enterprise, the city
or county maybe responsible for unpaid industrial insurance premiums.
In
the event of failure, such as bankruptcy or dissolution, any debt
incurred for industrial insurance and not paid by the private employer
or business during the contract period only will become the responsibility
of the city or county responsible for establishing the free venture
agreement.
Policy
Author: Beth Johnson
Telephone: (360) 902-4741
For
technical questions: Employer Services Technical Support Unit (360)
902-4741
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