69L-6.025: Conditional Release of Stop Work Order and Periodic Payment Agreement
PURPOSE AND EFFECT: The proposed rule amendment clarifies guidelines and procedures by which employers subject to stop-work orders for having failed to comply with the coverage requirements of Chapter 440, F.S., and are no longer failing to secure the payment the of compensation within the meaning of Section 440.107, F.S., may satisfy the Department that they have come into compliance with Chapter 440, F.S. The amendment provides new language that outlines the terms and conditions under which an employer qualifies to enter into a new Payment Agreement Schedule For Periodic Payment of Penalty. The amendment deletes the requirement that subject employers file probationary periodic reports with the Department and amends Form DFS-F4-1601 (Monthly Payment Installment Invoice) to reflect this change. The proposed amendment also renumbers the rule to reflect the new language. The effect of the proposed rule amendment is to extend the payment agreement over a greater time horizon to those employers having demonstrated ongoing compliance with the terms and conditions of the Department’s periodic payment agreement and to streamline the rule’s administration.
SUMMARY: The proposed rule amendment provides new language clarifying procedures regarding the conditional release of stop-work orders and the reinstatement of stop-work orders where employers have defaulted on penalty payment obligations. The proposed amendment also deletes the requirement that subject employers file probationary periodic reports with the Department and amends Form DFS-F4-1601 (Monthly Payment Installment Notice) to reflect this change.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 440.107(9), 440.591 FS.
LAW IMPLEMENTED: 440.107(7) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: May 29, 2009, 10:00 a.m.
PLACE: 104 J Hartman Bldg., 2012 Capital Circle S.E., Tallahassee, FL
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: Tasha Carter, (850)413-1878. 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 IS: Tasha Carter, Bureau Chief, Bureau of Compliance, Division of Workers’ Compensation, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-4228, phone (850)413-1878
THE FULL TEXT OF THE PROPOSED RULE IS:
69L-6.025 Conditional Release of Stop-Work Order and Periodic Payment Agreement.
(1) No change.
(a) through (b) No change.
(c) The employer agrees to file probationary periodic reports with the Department for a time period that does not exceed 2 years that demonstrate the employer’s continued compliance with Chapter 440, F.S. The probationary periodic reports shall be filed as a section of each monthly payment installment invoice pursuant to the Payment Agreement Schedule for Periodic Payment of Penalty.
(2) No change.
(a) through (g) No change.
(3) The Payment Agreement Schedule For Periodic Payment of Penalty becomes effective when it is executed on behalf of the employer and by the Department. Upon execution of the Payment Agreement Schedule For Periodic Payment of Penalty, the Department will provide the employer with a Monthly Payment Installment Invoice, Form Number DFS-F4-1601 (eff.______) (rev. 8/04), which shall be submitted with each monthly payment installment. Each Monthly Payment Installment Invoice contains a probationary reporting section that shall be completed by the employer.
(4) No change.
(5) An employer that has entered into a Payment Agreement Schedule For Periodic Payment of Penalty with the Department currently in default of any of its obligations under such agreement or that has had its stop-work order immediately reinstated through an Order Reinstating Stop-Work Order is ineligible for conditional release from a stop-work order issued to it by the Department in a subsequent separate case.
(6) An employer that has been conditionally released from a stop-work order and is not in default of its current Payment Agreement Schedule For Periodic Payment of Penalty is ineligible for conditional release from a stop-work order issued to it by the Department in a subsequent case.
(7) At the request of an employer, the Department and an employer may enter into a new Payment Agreement Schedule For Periodic Payment of Penalty, thereby extending the payment of the outstanding penalty amount for up to sixty consecutive monthly installments, if the following criteria have been met, as determined by the Department:
(a) The employer must not be in default of its original Payment Agreement Schedule For Periodic Payment of Penalty;
(b) The employer must have submitted at least six (6) monthly payments under its original Payment Agreement Schedule For Periodic Payment of Penalty;
(c) If the employer was issued an Order Reinstating Stop-Work Order that was later rescinded, the employer must have submitted at least six monthly payments under its original Payment Agreement Schedule For Periodic Payment of Penalty after the issue date of the Order Rescinding Order Reinstating Stop-Work Order; and
(d) If a payment made by the employer was returned to the Department by the employer’s financial institution for non-sufficient funds, the employer must have submitted at least six monthly payments under its original Payment Agreement Schedule For Periodic Payment of Penalty after the returned payment has been cured.
(8) The Department will enter into only one new Payment Agreement Schedule For Periodic Payment of Penalty with an employer. The Department shall not enter into a new Payment Agreement Schedule For Periodic Payment of Penalty with any employer that has had its Stop-Work Order reinstated, nor to any employer that has had its case forwarded to a collection agency for collection of the remaining penalty.
(9)(6) 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) No change.
(b) DFS-F4-1601 Monthly Payment Installment Invoice eff.______rev. 8/04.
(c) No change.
(10)(7) 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.
(11)(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.
(12) An employer found conducting business in violation of an Order Reinstating Stop-Work Order may not enter into a another Payment Agreement Schedule For Periodic Payment of Penalty for a penalty assessed as a result of conducting business in violation of the Order Reinstating Stop-Work Order. In order to obtain a release of the Order Reinstating Stop-Work Order, the employer must pay all penalties assessed and must provide proof of compliance with the coverage requirements of Chapter 440, F.S.
Rulemaking Specific Authority 440.107(9), 440.591 FS. Law Implemented 440.107(7) FS. History–New 4-6-05, Amended 7-20-05, 2-6-07,________.