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Policy
Name:
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Safety
Intervention Grants Program
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Policy #:
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SP-19-01
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Code/Rule
Reference
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ORC 4121.37 and OAC 4123-17-56.
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Effective
Date:
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January 1,
2018
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Origin:
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Division
of Safety & Hygiene (DSH)
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Supersedes:
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All policies
and procedures regarding the Safety Intervention Grant Program that predate
the effective date of this policy.
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History:
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Revised: December
31, 2019; September 22, 2017; November 10, 2015; December 7, 2010; October
2010. New: June 22, 2007.
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Review
Date:
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July 1,
2022
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I. Policy Purpose
BWC
uses the Safety Intervention Grants Program to partner with Ohio employers to
measure the effectiveness of workplace safety interventions. The program is
available to eligible Ohio employers who wish to purchase equipment to
substantially reduce or eliminate injuries or illnesses associated with a particular
task or operation. The program is designed to establish safety intervention
best practices for accident and injury prevention.
II. Applicability
This
policy applies to BWC Division of Safety & Hygiene (DSH), employers and
their authorized representatives.
III. Definitions
A.
Comprehensive
safety report: A written
report including BWC review of the employer applicant’s overall safety
practices. The report may help assess the effectiveness of providing a safety
grant.
B.
Eligibility
cycle: The eligibility
cycle applies to previous grant recipients who may be eligible to receive up to
$40,000 per eligibility cycle.
1.
The eligibility
cycle is determined by total payroll for the last full policy year for which
payroll information is available prior to BWC receiving the application.
2.
For private
employers, the policy year is July 1, through the following June 30. For public
employers, the policy year is January 1, through the following December 31.
3.
The eligibility
cycle start date is determined by the date of the earliest grant warrant.
4.
Eligibility Cycle
Chart:
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Total payroll reported for last full policy year
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Eligibility Cycle
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Greater than $10,000,000
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Three (3) years
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Greater than $5,000,000 and less than or equal to
$10,000,000
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Five (5) years
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Greater than $1,000,000 and less than or equal to
$5,000,000
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Seven (7) years
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Less than or equal to $1,000,000
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Ten (10) years
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C.
Fast track
grants: Applications for
specific equipment where there is high risk for injuries with at least one
task, and the specific equipment is likely to have a significant impact on
eliminating future injuries.
D.
Grant Agreement: A contract for matching funds for
safety equipment from the BWC to an employer, subject to restrictions and
mandatory conditions. This is a two-year grant agreement. The two-year period
begins the date the purchased equipment is implemented and ends the date the
employer’s two-year report has been received and approved, in writing, by BWC.
E.
Moratorium list: A list of equipment for which the BWC
no longer awards grants. Equipment is placed on the
moratorium list based on the current research data needs of the Safety
Intervention Grant Program. This list is subject to change and will be updated throughout the course of the Safety
Intervention Grant Program. BWC
provides thirty (30) days from the date the equipment is placed on the
moratorium list for pending safety intervention grant applications with safety
consultants for these safety intervention grant applications to be formally
completed and submitted.
F.
Post assessment: An evaluation of the risk associated
with a task after the equipment has been implemented. The type of assessment is
based on the risk being addressed by the equipment implemented. The assessment
may include safety, ergonomic, or industrial hygiene evaluations.
G.
Post report: A review of the newly purchased and
implemented equipment by a BWC representative. The report shall include a
description of the equipment to include the make, model, serial number, and
color if applicable.
H.
Pre-assessment: An evaluation of risk hazards
associated with the task to be addressed by the equipment. The type of
assessment is based on the risk being addressed by the grant application. The
pre-assessment may include safety, ergonomic or industrial hygiene evaluations.
I.
Pre-report: An application checklist used to
observe and evaluate the task and area where the equipment will be used.
J.
Retroactive
purchases: Equipment purchased
prior to approval from BWC for the safety intervention grant. This includes
ordered equipment, paid equipment, and received paid equipment.
K.
Routine
replacement equipment: Old, worn out equipment
needing replacement. BWC will
not provide grant funds to purchase equipment to replace old, worn out
equipment for the sake of replacement.
L.
Unapproved
purchases: Items which
are outside the scope of the program including but not limited to, equipment
intended to meet minimum OSHA compliance and routine equipment replacement.
IV. Policy
A.
Eligibility
criteria:
1.
At the time of application,
the employer must:
a.
Be a state-fund
private employer, a public taxing district employer, a marine industry fund
employer, or a coal-workers’ pneumoconiosis fund employer.
b.
Have active Ohio
workers’ compensation coverage. The employer must maintain continuous active
state-fund coverage while participating in the program. Marine industry fund
and coal-workers’ pneumoconiosis fund employers must also have active coverage
under their respective fund effective January 1, 2006.
c.
Not have more than
forty (40) days of cumulative lapses in workers’ compensation coverage within
the prior twelve (12) months.
d.
Be current with
respect to all payments due BWC as defined in OAC 4123-17-14.
e.
Provide evidence of
at least a two-year business history.
f.
Report payroll for
at least one full, immediate prior policy year.
g.
Timely report actual
payroll for the preceding policy year and pay any premium due upon
reconciliation of estimated premium and actual premium. An employer will be
deemed to have met this requirement if BWC receives the payroll report and the
employer pays premium associated with such report before the expiration of any
grace period. See the Payroll True-Up policy for additional information.
2.
The following
employers are not eligible:
a.
Self-insuring
employers;
b.
State agencies;
c.
State universities;
d.
Employers paying the
minimum administrative charge as set forth in OAC 4123-17-26;
e.
State fund employers
who have elective coverage only; and
f.
Marine industry fund
and coal-workers’ pneumoconiosis fund employers who did not have active
coverage under their respective fund effective January 1, 2006.
3.
The employer must
demonstrate the need for a safety intervention by describing the significance
of the problem and the effectiveness of the proposed solution.
4.
The employer must
provide two years of baseline data, excluding temporary staff unless temporary
staff are covered under the BWC policy applying for the grant, including:
a.
Number of employees
directly affected by the proposed intervention;
b.
Total hours worked
in the two-year period by the population affected;
c.
The BWC claim
numbers for claims filed by the population during the period; and
d.
If the employer
tests equipment, and applies for grant funds to purchase the equipment, the
baseline data must be for the two-year period prior to the test period.
5.
Employers may
receive up to $40,000 in grant funds per eligibility cycle.
a.
The number of years
in the eligibility cycle may change when the employer’s payroll changes.
b.
Once a new cycle
begins, the employer is eligible for up to $40,000 during the cycle.
6.
Employers enrolled
in BWC discount programs are eligible to apply for the program.
7.
Other eligibility
considerations.
a.
A successor employer
may apply for a safety grant based on a predecessor employer meeting the
criteria in IV.A.3 and IV.A.4 above. The successor employer must meet the
eligibility criteria set forth in sections IV.A.1.a through IV.A.1.d.
b.
Professional Employer
Organizations (PEO).
i.
A PEO is eligible to
apply for a grant under its own policy number. The PEO can only use grant funds
for operations owned/operated by it and not for any client employer.
ii.
A state fund
employer in a PEO/client relationship is eligible to apply for a grant if the
employer can demonstrate:
a)
The task addressed
by the grant funded equipment is for employees covered under the client
employer’s BWC policy; and
b)
The employer will
continue to cover the employees affected by the intervention under the client
employer’s BWC policy during participation in the program.
c.
Marine Industry Fund
and Coal-Workers’ Pneumoconiosis Fund Employers.
i.
These employers may
only use the safety intervention grant to substantially reduce or eliminate the
potential for workplace injuries, illnesses, and fatalities.
ii.
Coal-workers’ pneumoconiosis
fund employers must use the safety intervention grant to purchase equipment to
prevent coal-workers’ pneumoconiosis.
B.
Pre-application steps.
1.
Employers must
contact the local BWC customer service office to schedule an assessment by a
BWC safety consultant. For coal-workers’ pneumoconiosis fund employers, the
assessment must be scheduled with a mine safety inspector from the Ohio Department
of Natural Resources.
2.
The employer must
access the online application on BWC’s web site. The employer must save an
electronic copy of the application for review by the BWC safety consultant
prior to submitting the application.
3.
The employer must allow
BWC staff access to the work site to perform a pre-report and pre-assessment of
the operation and area of concern. The employer must provide BWC staff with the
following data for the operation of concern:
a.
Injury statistics,
associated claim numbers, and costs for the past two years;
b.
Production and
qualify data;
c.
Absenteeism and
turnover rates;
d.
Number of full-time
and part-time employees;
e.
Hours worked by all
employees;
f.
Job safety analysis
or work procedures; and
g.
Pictures or video.
4.
BWC staff will
complete a comprehensive safety review of the employer’s overall safety
practices.
5.
BWC staff will
conduct a five-year claims history review.
6.
The employer must
verify the equipment it plans to implement is not on BWC’s moratorium list or unapproved list.
7.
The employer must
obtain detailed price quote(s) from the equipment vendor. The quote must be
specifically for the employer applying for the grant and must list all items to
be purchased. The price quote must include a contact name and contact phone
number from the equipment vendor. BWC highly recommends obtaining a quote of
one hundred twenty (120) days or longer.
C.
Application requirements.
1.
The employer must
submit Section I through Section V of the application online.
2.
The employer must
submit Section VI (Budget) and Section VII (Agreement) of the application in
writing to BWC. Both sections require the signature of an employee who has
fiduciary responsibility for the company.
3.
Completing the
budget page.
a.
The employer must
provide equipment price quotes. The quotes must include the vendor’s name,
address, and date of the quote. The quote must include the employer’s
information, including company location.
b.
All items and costs
associated with the grant request must be listed on the budget page. The budget
page and quote detail must match.
c.
Price quotes must be
submitted for all items requested on the budget page. Each item description and
dollar amount must match the vendor quote.
d.
Freight and tax must
be included in the budget and in the price quotes, even if estimated, to be
considered as part of the grant request.
e.
All budget line
items must multiply across correctly and the sum of the total column must be
correct.
f.
The employer must
disclose and explain any ownership, partnership, or other affiliation with the
equipment vendor.
4.
This is a two-year
agreement. The employer agrees the signer of the agreement, or a successor,
will have the authority and responsibility to ensure the employer will fulfill
its obligations to BWC for the two years after implementation of the
intervention.
5.
The state of Ohio
considers a grant recipient a supplier. This means the employer must obtain a
supplier ID number through the Ohio
Shared Services website,
then complete and send the following forms to Ohio Shared Services:
a.
Request for Taxpayer
Identification Number & Certification (W-9
via the Supplier Portal).
b.
Authorization Agreement
for Direct Deposit of EFT Payments (OBM-4310-Rev.11/1/2011 via the Supplier Portal).
6.
The employer must be
current on receipt documentation and required reports including the case study
and cost benefit analysis, for all in-program grants at the time the employer
submits a new grant application. BWC will not review the new application until any
delinquent documentation is received and accepted by the grant department. BWC
will hold the grant application for a period of forty-five (45) days. Failure
to supply delinquent documentation within this time period will result in BWC
returning the grant application to the employer.
7.
The employer may
only apply for a safety intervention grant related to a manual classification
for which payroll is reported.
8.
Item limitations: An
employer may not apply for more than five of any item with a cost less than
$5,000 per item. An employer may not apply for more than two of any item with a
cost greater than $5,000 per item.
a.
BWC may grant an
exception if the employer provides thorough justification for the number of
items needed.
b.
BWC encourages the
employer to discuss the number of items needed with the BWC consultant prior to
submitting the grant application.
9.
The employer must
explain any prior rentals or testing of the requested equipment on the
application.
10.
The employer must
include any type of discount received on the price quote and budget page. BWC
will determine the employer’s match after the discount has been removed from
the project cost.
11.
The employer may
obtain a loan through a third-party lender for its portion of the grant match
if the following conditions are met:
a.
The employer must
indicate the intent to finance its portion of the project on the budget page of
the grant application.
b.
The employer must
apply the BWC grant funds directly to the purchase of the equipment.
c.
The employer must
provide BWC with a copy of the loan agreement.
12.
For all other
financing arrangements, the employer must contact a BWC grant coordinator for
prior approval.
D.
BWC evaluation of
application.
1.
BWC will consider
the employer’s application complete if the following items are received:
a.
The completed online
application.
b.
The Statement of
Agreement with original signatures.
c.
The Budget page with
original signatures and corresponding vendor quotes.
d.
The pre-report and
pre-assessments from the BWC safety consultant.
e.
The comprehensive
safety report from the BWC safety consultant.
f.
Additional information
provided by the employer including pictures, videos, and equipment brochures.
2.
BWC will hold
incomplete grant applications for a period of forty-five (45) days. Failure to
supply the required information within this time period will result in BWC
returning the grant application to the employer.
3.
The employer’s
completed application will be reviewed by the Review Committee, with expertise
is occupational safety and health. Fast track grants are reviewed by a member
of the Review Committee and either the Superintendent of DSH or his designee.
a.
Each reviewer will
independently evaluate and score the employer’s application.
b.
The Review Committee
recommends by consensus either approval or denial of the application to the
Superintendent of DSH, or his designee, using criteria established by the
Superintendent of DSH.
4.
Consideration is
given to the research value of the safety equipment. The employer’s application
may be denied if the equipment will not provide sufficient learning value for
research purposes.
5.
The employer’s
application may be denied for equipment for which BWC has already collected
enough research information or for equipment outside the scope of the research
program.
6.
BWC will compare the
number of affected employees with reported payroll data. BWC will not approve a
grant if the reported payroll divided by the number of employees does not
reflect the employer’s workers are earning wages at the State of Ohio minimum
wage in effect during the payroll reporting period(s) used.
7.
BWC requests grant
funds for approved applications through the Department of Administrative
Services. Normally employers can expect to receive funds approximately two to
eight weeks after approval of the application.
E.
Employer
requirements after the awarding of grant funds.
1.
The employer must
complete purchases within ninety (90) days of receipt of the grant award.
2.
BWC may allow
additional time to purchase equipment, up to a maximum of ninety (90) days,
upon the employer’s request. The request must be made within the initial ninety
(90) day period. Extenuating circumstances which may lead to the request may
include, but are not limited to:
a.
Lack of vendor
cooperation;
b.
Equipment not
working as originally planned;
c.
Difficulties incurred
during removal/relocation of old equipment; or
d.
Problems experienced
with the fabrication/installation of new equipment.
3.
All requests for an
extension are to be formally requested by letter or email, providing a detailed
description of what has transpired and why the employer has not met the agreed
upon obligation to the grant program. Requests will be reviewed and approved by
BWC if considered valid.
4.
The employer must
provide BWC with the following items within one hundred twenty (120) days of
receipt of the grant award:
a.
Approved grant
application budget page;
b.
Itemized invoice(s)
pertaining to all approved equipment purchases showing
i.
the invoice demonstrates
that the approved equipment purchases were made, and
ii.
a description of the
equipment including the make, model, color, and serial number of the equipment
when applicable;
c.
Proof of employer
matching payment; and
d.
Copies of all bank
cleared checks or online bank statements that demonstrate the employer paid in
full all invoices associated with the equipment.
i.
The check copies
must include the front and back of the check.
ii.
These checks and statements
must include all BWC and employer matching contributions.
5.
BWC will reconcile
the employer’s grant application and budget to the expenditure documentation. If
there is any discrepancy or uncertainty in the information provided, BWC may
request additional documentation to complete the reconciliation.
6.
The employer must reimburse
BWC for all unused funds. Any unused portion of the grant will be billed to the
employer. Failure to pay may result in administrative, civil, and/or criminal
sanctions.
7.
The employer must
use the grant in the intended manner. The employer may face administrative,
civil, and/or criminal sanctions should the funds be misappropriated.
8.
The employer must
request prior approval from BWC if the employer makes any changes to the
equipment during implementation. The request must be in writing as an addendum
to the application. The employer must provide BWC an amended budget and
itemized expense report.
9.
The employer must
contact the BWC safety consultant to observe the equipment and complete a Post
Report and Post Assessments. The make, model, color and serial number of the
equipment will be verified and entered in the BWC database.
F.
Operation of
program.
1.
The program is
subject to funding each fiscal year and may be discontinued or put on hold
status at any time.
2.
BWC reserves the
right to approve or deny any application based upon research needs, program
needs, and/or equipment effectiveness.
3.
An employer is
eligible for a three-to-one matching grant up to a maximum grant award of
$40,000 for each eligibility cycle. This means BWC gives $3 for every $1 the
employer contributes.
4.
The employer may
only use grant funds to purchase ergonomic, safety, or industrial hygiene
equipment.
5.
The employer must
agree:
a.
To keep purchased
equipment maintained and in good working order for the two-year agreement
period beginning the date of implementation;
b.
To use the equipment
in the employer’s operation only and not to loan, rent, or lease the equipment
to any other entity for the two-year period beginning the date of
implementation;
c.
Not to sell, transfer,
or otherwise dispose of purchased equipment for the two-year period beginning
the date of implementation; and
d.
To submit one case study, with a cost benefit analysis, to BWC one year after the date of the
intervention.
i.
The report must be
submitted within thirty (30) days of the one-year reporting period.
ii.
The employer may
request assistance from the BWC safety consultant.
iii. The employer must complete and submit
the case study online through a link provided on BWC’s web page.
iv.
BWC will require an
employer who fails to adhere to the reporting requirement to reimburse the full
amount of the grant.
v.
The employer must
complete and submit a two-year report as directed by BWC.
6.
The employer must
provide BWC with receipt documentation for scheduled loan payments as
documented in the loan agreement during the two-year reporting period.
7.
BWC will not
approve, and the employer may not use, grant funds for any of the following:
a.
Testing,
b.
External consultant
fees,
c.
Retroactive
purchases,
d.
Unapproved purchases,
e.
Routine replacement
equipment,
f.
Rented or leased
equipment, and
g.
Salaries, wages,
labor and the cost of preparing the application.
8.
The employer must
continue to cover the employees affected by the intervention under its BWC
policy.
9.
The employer must
agree not to eliminate jobs or reduce employment due to the intervention.
10.
The employer must
allow BWC staff access to the work site both before and after the intervention.
11.
The employer must
allow BWC to publish safety intervention grant results including, but not
limited to, data, videos, specifications, and/or photos for the purposes of
illustrating, educating and training employers and employees.
12.
A compliance audit
may be initiated by BWC up to three (3) years after the Grant Agreement
completion date. The three-year period begins the date the employer’s final
report has been approved in writing by BWC. The employer shall retain
financial and statistical records, supporting documents, records pertaining to
property acquired with Grant Agreement funds, and all other records related to this
Grant Agreement, for a period of three years after the expiration or termination
date of the Grant Agreement. The three-year period begins with the date the
employer’s final report has been approved in writing by BWC. If any
litigation, claim, or audit is initiated before the expiration of the
three-year period, all records and supporting documents shall be retained until
such litigation, claims, and audit findings are resolved.
13.
BWC will issue the
employer an IRS 1099 for BWC paid grant funds.
14.
BWC is required to
post the names of grant recipients, the items approved for purchase with grant
funds, and the amount of the awards on the BWC website. This requirement is mandated by ORC 125.112(F).
15.
When an employer
holding an active safety grant merges, or combines with another employer, the
grant remains valid. The successor employer must continue to provide the
required reports to BWC for the duration of the two-year reporting period.
a.
The predecessor
employer bears sole responsibility to notify the successor employer of the
obligations under the Safety Intervention Grant program.
b.
If the successor
employer fails to comply with the reporting provisions, BWC will bill the
successor employer for previously awarded grant monies.
c.
A successor employer
is eligible to apply for safety grants under this policy.
G.
Disqualification
from the program.
1.
BWC may disqualify
an employer from the Safety Intervention Grants Program who fails to meet all
eligibility, application, or program participation requirements.
2.
If an employer moves
out of state or otherwise closes its business after receiving a grant, but
before completing the two years of required reporting, BWC may disqualify the
employer as of the date of the move or closure.
3.
Disqualification will
result in the termination of BWC’s obligations under this policy.
4.
BWC reserves the
right to recover grant monies from disqualified employers by one or more of the
following methods:
a.
Billing the employer
for the grant money received.
b.
Forwarding to the
Ohio Attorney General for collection, set off, recoupment, or other legal
remedy.
H.
Resolution of
complaints.
1.
An employer may file
a complaint due to BWC’s decision including, but not limited to, a finding the
employer did not meet eligibility requirements for the program. The complaint
must be in writing and filed with the Superintendent of DSH within thirty (30)
days of the notification of the decision.
2.
Employer complaints
should be processed under the General Employer Complaint Policy. BWC has not identified any
program-specific extenuating circumstances that apply to the Safety
Intervention Grants Program.
I.
Scenarios.
1.
Number of employees
affected by the intervention versus reported payroll.
An employer claims there are ten full
time employees affected by the intervention. On the employer’s most recent
payroll report, the payroll is $100,000 for the policy year.
Response: Ten full time employees would
not have earnings this low even at minimum wage. In this situation the grant
will not be considered.
2.
Multiple grant
applications.
An employer has received a Safety
Intervention Grant in the amount of $20,000 to purchase a dust collection
vacuum system. Eleven (11) months later, it submits another application for a
conveyor system in the amount of $13,000.
Response: This is acceptable. A single
policy number can have multiple Safety Intervention Grants if the total of all
grants does not exceed $40,000 during its eligibility cycle. Once the
eligibility cycle ends, the employer may be eligible for $40,000 once again in
a new eligibility cycle.
3.
Testing equipment
prior to purchase.
An employer applies for grant funds to
purchase hydro-mobile scaffolding with a hydraulic lifting system to reduce
risk of injuries due to manual construction/adjustment of scaffolding used on
building sites. While reviewing the application, the Review Committee notices a
section in the application discussing the success the company had with the
equipment during a trial use period.
Response: The program allows for the
testing of equipment prior to application, but this arrangement is between the
employer and the vendor. BWC grant funds will not be used for testing. Grant
funds may only be used to purchase equipment after BWC approves the application
and the funds are provided to the employer. If testing equipment is used prior
to submitting its application, the employer is required to provide baseline
data for the two-year period prior to testing the equipment.
4.
Employer with
previous grant.
An employer applies for a safety grant
to purchase an automated packaging system at a cost of $75,000. The employer
received two previous grants: One on April 1, 2020, for $15,000 and another on
October 20, 2021, for $25,000. The employer’s payroll for the last two (2)
payroll reporting periods prior to applying for the packaging system totals
$6,500,000.
Response: Based on the employer’s
reported payroll, its eligibility cycle is five (5) years. The employer’s earliest
grant is dated April 1, 2020. It is on a five (5) year eligibility cycle. Since
the employer has already received the maximum of $40,000 in this cycle, the
employer will once again be eligible on April 1, 2025, for another $40,000.
5.
Payroll changes
during cycle.
An employer received a grant totaling
$40,000 with a warrant date of August 1, 2020. It wishes to apply for a grant
totaling $25,000 on September 1, 2023. The most recent policy year shows
payroll totaling $7,000,000, so the employer’s eligibility cycle is five (5)
years. The employer is told it is not eligible to apply until August 1, 2025.
The employer increases its business, and
thus its payroll, over the next fifteen (15) months. In December 2024, the
employer decides to apply for the $25,000 grant. A review of the most recent
policy year determines the employer’s payroll total is now $11,000,000.
Response: Since the employer’s payroll
changed during the eligibility cycle, the eligibility cycle changed from five
to three years, thus making this employer eligible to apply for the grant prior
to the originally determined cycle end date of August 1, 2025.
6.
Financing.
An employer requests $40,000 in grant
funds to assist with the purchase of a $65,000 conveyor system. The employer
states in the application it will need to obtain a business loan for its
portion of the project through a local bank.
Response: Upon approval and receipt of
the grant funds, the employer must pay the $40,000 BWC grant directly to the
equipment vendor for the purchase of the conveyor system. The employer may
obtain a loan of $25,000 for the remaining cost of the conveyor system. The
employer must provide BWC with the following: a receipt from the equipment
vendor for the total purchase amount of $65,000, a copy of the loan agreement
for $25,000, proof of the $25,000 loan payment made to the equipment vendor,
and a copy of the cancelled check from the employer to the vendor in the amount
of $40,000.
The employer will make scheduled
payments to the bank for the $25,000 loan as outlined in the loan agreement and
provide BWC the required documentation for each payment. This documentation
includes a copy of the cancelled payment check or electronic fund transfer
(EFT), and a statement or invoice for the payment. The submission of this
documentation will continue until the case study and two-year reports are
completed.