HB 449 Training Value of Employer-Furnished Housing JASON SWANT, - - PowerPoint PPT Presentation

HB 449 Training Value of Employer-Furnished Housing

JASON SWANT, CLAIMS ASSISTANCE UNIT EMPLOYMENT RELATIONS DIVISION

Accessing Presentation Materials

http:/ p://erd.d .dli.m .mt.g .gov/wor

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employer er-fu furn rnish shed ed-ho housin ing

Website - Resources

MONTANA STATUTE

39 39-71 71-123

• 23. W

Wages define ned. .

(e) e) bo board, l lodging, r rent ent, or

• r hous

using i if it co cons nstitutes a a part o

• f the

e em employee' ee's rem emune uneration a and nd i is ba based ed o

• n

n its a act ctua ual v value; ue; a and nd

• (f) (e) payments made to an employee on any basis other

than time worked, including but not limited to piecework, an incentive plan, or profit-sharing arrangement;

• (f) board if it constitutes a part of the employee's

remuneration and is based on its actual value; and

• (g) lodging, rent, or housing if it constitutes part of the

employee's remuneration and is based on a value as set by administrative rule. The values set by administrative rule must address the general geographic proximity to available housing and may consider other reasonable factors that affect value.

Rule Development Process

May 2017 - House Bill 449 Signed into law June/July 2017 - Department & Bill Sponsor Communications July 2017 - Department & Stakeholder Communications July/August 2017 - Initial Rule Idea Development August 2017 - Present Initial Rule Idea to LMAC

• Sept. 2017 - Rule Idea Modifications & Additional Research
• Oct. 2017 - Present Modified Rule Idea to LMAC

Nov 2017 - Informal Feedback Requested of Stakeholders

• Dec. 2017 – Proposed Rule Filed with Secretary of State
• Jan. 2018 – Rule Hearing & Comment period

March 2018 – Notice of Adoption April 1, 2018 – Rule Effective

24.29.721. ARM Value of Employer Furnished Housing

(1) For the purposes of this rule, the following definitions apply: (a) "Agricultural employer" means an employer whose operations are assigned to an agricultural classification code for workers' compensation purposes. The term is intended to be consistent with the definition of agriculture provided by 15-1-101, MCA. (b) "Bedroom" means a room in a dwelling that is primarily used for sleeping. (c) "Dwelling" means a building equipped for human habitation. (d) "Zero bedrooms" means a dwelling that is an efficiency, dormitory, or a bunkhouse.

Administrative Rule

24.29.721. ARM Value of Employer Furnished Housing, Continued

(2) For the purposes of calculating wages pursuant to 39-71-123, MCA, the monthly fair rental value, in U.S. dollars, for housing is established for each county in Montana as specified in the publication entitled "Montana Workers Compensation Housing, Rent or Lodging Monthly Rates." (a) The publication is available online via the department's website, http://erd.dli.mt.gov. (b) A printed copy of the publication is available to the public at no cost, upon request to the department's employment relations division

24.29.721. ARM Value of Employer Furnished Housing, Continued

(3) In recognition of Montana's rural nature and expansive landscape, and the fact that housing supplied by an agricultural employer is likely to be remotely situated and distant from communities with an established rental housing market, housing furnished by an agricultural employer is discounted by 50% of the fair rental value for housing established in (2) of this rule, for the county in which the dwelling is located. (4) If an individual is not currently using the room for sleeping, it is not considered a bedroom for the purpose of this rule. (5) The provisions of this rule apply to housing furnished any worker.

MCA 15-1-101.

• Definitions. (1) Except as otherwise specifically

provided, when terms mentioned in this section are used in connection with taxation, they are defined in the following manner: (a) The term "agricultural" refers to: (i) the production of food, feed, and fiber commodities, livestock and poultry, bees, biological control insects, fruits and vegetables, and sod, ornamental, nursery, and horticultural crops that are raised, grown, or produced for commercial purposes; and (ii) the raising of domestic animals and wildlife in domestication

• r a captive environment.

Agricu icultur ural E Employer

Bedroom, Primary Use

A A bed edroom is is a a room prim rimari arily u used f for r sleepin ing.

Zero Bedroom

Efficiency, Dormitory or a Bunkhouse Includes:

• Efficiency, a single room that provides a living area,

also referred to as a studio apartment

• Dormitory, a single room with shared common areas

such as kitchen, bathroom, sitting areas

• Bunkhouse, a single room that provides an area for

sleeping that is shared by multiple persons

Rate

Rate identified by County and Number of Bedrooms

HOUSING, RENT, OR LODGING RATES

The Department adopted housing rates based on the U.S Department of Housing and Urban Development’s Fair Market Rent standards.

Agricultural Discount

Housing s g supplied b by an an agric agricultu tural al employer is s likely to

• be remotely si

situated an and d dis istan ant fr from c communit ities with an with an estab ablis ishe hed r renta tal h housin ing m market. t. Housing g fu furn rnished by an an agric agricultural al employer i is s di disc scounted b by y fifty percent nt. .

Rooms Not Used For Sleeping

If f an an in individual al is is not c curr rrently u usin ing the the room f for s sleeping ng, i , it is not c cons nsidered a bedroom

• om.

Applicability

The val alues s set t by ad admin inistrat rative ru rule ap e apply to a all employe

• yees.

Examples:

Be Beaverhead C Cou

• unty

ty

Housing is is a a 2-bedroom m house se p provide ided i in Lima, ma, MT MT by by a an empl ployer in in ag

• agriculture. T

The v val alue ado adopted f d for Be Beaverhead Co County f for a a 2-bedroom m house is is $69 697 7 monthly ly. . Because t the e emplo loyer i r is in agricult lture re t the admi administrative v val alue o

• f that

at h housing is is disc discounted b d by 50% for a v a val alue of $ $349 mo monthly. If on If only ly 1-bedroom is is pr primarily u use sed f d for sl sleeping, t the H HUD FMRs f for the h house is b is base ased o d on one-bedroom, m, $ $567 567 monthly ly. . The a admin inist istrat ativ ive v value o

• f this h

is house b become mes s $284 m monthly hly.

Galla llatin C County

Housing is is a a 4-bedroom m house s share red b by four e emplo loyees pr provide ded in in Big Big Sk Sky, M MT du during t the sk ski se i season b by an an emplo loyer i r in the t travel/ l/tou

• uri

rism i

• industry. T

. This h house i is use sed l d lik ike a a do dormitory o

• r bunk h

house se. The admi administrative val alue f for this h housi sing is $ is $651 m monthly hly. .

Yellowstone

• ne C

Count

• unty

Housing is is a a 3-bedroom m house pr provided in d in Bil Billings M MT by an emplo loyer i r in the h healt lthc hcare re i

• industry. T

. The admi administrative v val alue o

• f that

at h housing is is se set at at $1,308 308 mo monthly.

Rosebud ud C Count unty

Housing is is a a 4-bedroom m house p provided n near F r Forsyt yth M h MT by an emplo loyer i in agri ricult lture

• re. T

. The a administra rative v value f for this h housi sing is is $1,083 m monthly hly. . The agri ricult ltura ral d l discou

• unt

redu duces t the admi administrative v val alue t to $542 m 542 monthly. If If However, on

• nly t

ly two of

• f the

he f fou

• ur b

r bedroo

• oms a

are re p pri rimarily used f for s

• r sle
• leeping. The

The administrative v valu lue of

• f tha

hat hou house is $ is $697 m monthly hly. . The The a agri ricultural d discount re reduces t the he admi administrative v val alue t to $349 m monthly hly. .

Discussion

FOR MORE INFORMATION: JASON SWANT, CLAIMS ASSISTANCE UNIT E-MAIL: JSWANT@MT.GOV PHONE: (406) 444-6451