Notice of Development of Rulemaking

DEPARTMENT OF FINANCIAL SERVICES
Divsion of Worker's Compensation
RULE NO: RULE TITLE
69L-6.025: Conditional Release of Stop Work Order and Periodic Payment Agreement
PURPOSE AND EFFECT: To amend the rule to establish procedure regarding immediate reinstatement of stop-work orders through an Order Reinstating Stop-Work Order where employers have defaulted on obligations under a Payment Agreement Schedule For Periodic Payment of Penalty, and rescinding such reinstatement orders where the employers have paid all past due penalty payments within the specified time period. To preclude employers from entering into a Payment Agreement Schedule For Periodic Payment of Penalty in a case where the employer is currently under obligation to the Department through a Payment Agreement Schedule For Periodic Payment of Penalty in a separate case, or where the employer otherwise owes penalty to the Department.
SUBJECT AREA TO BE ADDRESSED: Conditional release of stop-work orders and reinstatement of stop-work orders where employers have defaulted on penalty payment obligations.
SPECIFIC AUTHORITY: 440.107(9), 440.591 FS.
LAW IMPLEMENTED: 440.107(7)(a) FS.
IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
TIME AND DATE: Tuesday, September 26, 2006, 10:00 a.m.
PLACE: Room 104J, Hartman Building, 2012 Capital Circle, Southeast, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Andrew Sabolic, (850)413-1600. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT, IF AVAILABLE, IS: Andrew Sabolic, Bureau Chief of Compliance, Division of Workers’ Compensation, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-4228, (850)413-1600

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:

69L-6.025 Conditional Release of Stop-Work Order and Periodic Payment Agreement.

(1) The requirements for issuance of an Order of Conditional Release Form Stop-Work Order as provided for in Section 440.107, F.S., are:

(a) through (c) No change.

(2)(a) No change.

(b) Each monthly payment installment is due on the first day of the month in which it is due, and the employer is in violation of the Payment Agreement Schedule for Periodic Payment of Penalty if the full monthly payment installment is not received by the Department by the last day of the month in which the payment installment is due;

1. through 2. No change.

3. The first monthly payment installment shall be due on the first day of the second month following the month of issuance of the Conditional Release From Stop-Work Order, Form Number DFS-F4-1602 (rev. 6/04), and each subsequent payment installment shall be due on the first day of each consecutive month.

(c) through (g) No change.

(3) No change.

(4) If an employer defaults under any of its obligations under the Payment Agreement Schedule For Periodic Payment of Penalty, the Stop-Work Order to which the penalty applies shall be immediately reinstated and the entire unpaid balance of the remaining penalty shall immediately become due and payable. “Immediately reinstated” means twenty-one (21) calendar days after an Order Reinstating Stop-Work Order is executed by the Chief Financial Officer or his or her designee and has been filed with the agency clerk of the Department. Subsequent to the issuance of an Order Reinstating Stop-Work Order by the Department, the Department will rescind the Order Reinstating Stop-Work Order requiring the employer to adhere to the terms and conditions of its Payment Agreement Schedule For Periodic Payment of Penalty only if the Department receives from the employer all past due monthly payments prior to the expiration of the twenty-one (21) day period. All past due monthly payments must be made by cashier check(s) or money order(s) made payable to DFS-Workers’ Compensation Administration Trust Fund and be remitted to Department of Financial Services, Revenue Processing Section, Division of Workers’ Compensation, P. O. Box 7900, Tallahassee, FL 32314-7900. The Department will not enter into another Payment Agreement Schedule For Periodic Payment of Penalty with an employer in a case associated with the same stop-work order where the employer has had its stop-work order immediately reinstated through an Order Reinstating Stop-Work Order, and in order to be released from a stop-work order that has been immediately reinstated the employer must pay the remainder of the entire penalty and show that it otherwise is in compliance with the coverage requirements of Chapter 440, F.S. The Department in any one case associated with the same stop-work order will not rescind an Order Reinstating Stop-Work Order more than twice.

(5) An employer that has entered into a Payment Agreement Schedule For Periodic Payment of Penalty with the Department and has not paid the remaining penalty in full or otherwise owes penalty to the Department as ordered through a final order is ineligible to enter into another Payment Agreement Schedule For Periodic Payment of Penalty with the Department for any separate violation of the coverage requirements of Chapter 440, F.S.

(6)(5) The Department hereby adopts and incorporates the following forms by reference. Copies of the forms can be obtained from the Division of Workers’ Compensation’s Bureau of Compliance, 200 East Gaines Street, Tallahassee, Florida 32399-4228, or from any field office identified in Rule 69L-6.009, F.A.C.

(a) through (c) No change.

(7) Unless otherwise precluded by this rule, employers assessed penalties pursuant to Rule 69L-6.030, F.A.C., are eligible to enter into a Payment Agreement Schedule For Periodic Payment of Penalty with the Department.

(8) If an employer conducts business operations in violation of an Order Reinstating Stop-Work Order, a penalty shall be assessed against the employer pursuant to Section 440.107(7)(c), F.S. The number of days that the employer conducts business operations in violation of an Order Reinstating Stop-Work Order shall begin on the date the Order Reinstating Stop-Work Order is immediately reinstated.

(9) In the event an employer prevails in challenging its penalty assessment through entry of a final judgment, final order, or appeal of a final judgment or final order, whichever is later, the Department will upon application filed by the employer with the Department pursuant to Section 215.26, F.S., refund to the employer the penalty amount paid to the Department.

Specific Authority 440.107(9), 440.591 FS. Law Implemented 440.107(7)(a) FS. History–New 4-6-05, Amended 7-20-05, ________.