OhioBWC - Basics: (Policy library)

Policy Name:	Safety Intervention Grants Program
Policy #:	SP-19-01
Code/Rule Reference:	ORC 4121.37 and OAC 4123-17-56.
Effective Date:	July 1, 2017
Origin:	Division of Safety & Hygiene (DSH)
Supersedes:	All policies and procedures regarding the Safety Intervention Grant Program that predate the effective date of this policy.
History:	Revised: September 22, 2017; November 10, 2015; December 7, 2010; October 2010. New: June 22, 2007
Review Date:	July 1, 2022

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 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:

Total payroll reported for last full policy year	Eligibility Cycle
Greater than $10,000,000	Three (3) years
Greater than $5,000,000 and less than or equal to $10,000,000	Five (5) years
Greater than $1,000,000 and less than or equal to $5,000,000	Seven (7) years
Less than or equal to $1,000,000	Ten (10) years

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. Moratorium list: BWC no longer provides grant funds for the equipment on this list because sufficient data has been gathered to demonstrate the effectiveness of the equipment in reducing or eliminating workplace injuries or illnesses. The list is dynamic and is updated by BWC throughout the life of the 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.

E. 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

F. Post report: A review of the newly purchased and implemented equipment.

G. 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.

H. Pre-report: An application checklist used to observe and evaluate the area/task where the equipment will be used.

I. Retroactive purchases: Equipment purchased prior to the receipt of the warrant from BWC for the safety intervention grant. This includes ordered equipment, paid equipment, and received paid equipment.

J. Routine replacement equipment: BWC will not provide grant funds to purchase equipment to replace old, worn out equipment for the sake of replacement.

K. Unapproved purchases: Items which are outside the scope of the program.

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. Have been in existence for at least two years.

f. Have reported payroll for at least one full 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.

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, 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. The employer’s temporary staff are not captured in the number of hours worked or the number of employees, unless they are covered under the BWC policy applying for the grant.

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 being 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 a 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 quality 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.

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.

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. The employer agrees the signer of the agreement, or his or her 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).

b. Authorization Agreement for Direct Deposit of EFT Payments (OBM-4310-Rev.11/1/2011).

6. The employer must be current on receipt documentation and quarterly reporting, 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 the 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, which consists of four technical advisors representing the disciplines of safety, ergonomics, and industrial hygiene. Fast track grants are reviewed by a member of the Review Committee and the Superintendent of DSH.

a. Each reviewer will independently evaluate and score the employer’s application.

b. The individual scores are averaged to determine a final score, using a one hundred (100) point scale.

c. All approved grants must receive an average score of seventy-five (75).

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 may grant a conditional approval which requires the employer to meet, or agree to, the conditions set by BWC prior to releasing of grant funds. The conditions are specific to an individual employer’s application and must be completed by the specified date. Multiple conditions may have different completion dates. Dates may be determined upon review of the application or by the BWC field consultant with input from the employer.

7. 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.

8. BWC will issue grant funds to the employer 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 either stamped or typewritten “paid in full;”

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. This checks or statements must include all BWC and employer matching contributions.

5. BWC will reconcile the employer’s grant application and budget to the expenditure documentation. Any unused portion of the grant will be billed to the employer.

6. The employer must reimburse BWC for all unused funds. 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.

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 equipment must have a life expectancy of at least five years.

6. The employer must agree:

a. To electronically submit quarterly data reports to BWC for two years after the equipment is implemented.

i. These reports detail the hours worked by the affected population and list claim numbers occurring in the area of the equipment or to the affected population.

ii. Reports must be submitted within thirty (30) days of the end of each quarter.

iii. Temporary staff is not captured in the quarterly reports unless covered under the employer’s BWC policy.

b. 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. Two and three year case study reports are optional.

7. The employer must provide BWC with receipt documentation for scheduled loan payments as documented in the loan agreement during the two year quarterly reporting period.

8. 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.

g. Salaries, wages, labor and the cost of preparing the application.

9. The employer must continue to cover the employees affected by the intervention under its BWC policy.

10. The employer must agree not to eliminate jobs or reduce employment due to the intervention.

11. The employer must allow BWC staff access to the work site both before and after the intervention.

12. 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.

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 quarterly 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. Conditional approval.

The comprehensive safety report developed by the BWC consultant indicates the employer has several deficient or missing critical safety programs. The identified risk is quantified by the required job analysis assessments and is determined to be cost beneficial.

Response: BWC may offer a grant with conditional approval, giving the employer an opportunity to work directly with the BWC consultant throughout the first six months of the grant award. The employer and consultant work collaboratively to develop an action plan to identify safety program areas needing improvement/development. The employer will develop written policies/procedures, attend recommended training, and educate employees on safety practices to maximize the sustainability and impact of the approved intervention.

3. 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 as long as 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.

4. 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.

5. Employer with previous grants.

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, 2010, for $15,000 and another on October 20, 2011, 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, 2010. 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, 2015, for another $40,000.

6. Payroll changes during cycle.

An employer received a grant totaling $40,000 with a warrant date of August 1, 2010. It wishes to apply for a grant totaling $25,000 on September 1, 2013. 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, 2015.

The employer increases its business and thus its payroll over the next fifteen (15) months. In December 2014, 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, 2015.

7. 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 paid in full 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 quarterly reports and case studies are completed.

The documentation is due within one hundred twenty (120) days from the date of the grant warrant or EFT.