12-000080 Department Of Financial Services, Division Of Workers&Apos; Compensation vs. Amstarr, Inc. Status: Closed Settled and/or Dismissed prior to entry of RO/FO on Monday, April 2, 2012.

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FILED

JUN 272012 000 6 1 8

Chief F"mancial omcer FILED

Docketed by: L£XV?

CHIEF FINANCIAL OFFICER Zu12 JUN28 Prl12 05

JEFF STATE ATWATER OF FLORIDA

OF

ADMINISTRATiVE

IN THE MATTER OF: Case tf

AMSTARR, INC.

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FINAL ORDER

THIS PROCEEDING came on for final agency action and Jeff Atwater, Chief Financial

Officer of the State of Florida, or his designee, having considered the record in this case,

including the request for administrative hearing received from AMSTARR, INC., the Stop-Work

Order and Order of Penalty Assessment, the Amended Order of Penalty Assessment, and the 2nd

Amended Order of Penalty Assessment, and being otherwise fully advised in the premises,

hereby finds that:

1. On February 22, 2011, the Department of Financial Services, Division of

Workers' Compensation (hereinafter "Department") issued a Stop-Work Order and Order of

Penalty Assessment in Division of Workers' Compensation Case No. 1l-060-1A to AMSTARR,

INC. The Stop-Work Order and Order of Penalty Assessment included aNotice of Rights

wherein AMSTARR, INC. was advised that any request for an administrative proceeding to

challenge or contest the Stop-Work Order and Order of Penalty Assessment must be filed within

twenty-one (21) days of receipt of the Stop-Work Order and Order of Penalty Assessment in

accordance with Sections 120.569 and 120.57, Florida Statutes, and must conform to Rule 28-

106.2015, Florida Administrative Code.

2. On February 22, 2011, the Stop-Work Order and Order of Penalty Assessment

was served by personal service on AM STARR, INC. A copy of the Stop-Work Order and Order

of Penalty Assessment is attached hereto as "Exhibit A" and incorporated herein by reference.

3. On March 24, 2011, the Department issued an Amended Order of Penalty

Assessment to AMST ARR, INC. The Amended Order of Penalty Assessment assessed a total

penalty of $80,945.25 against AMSTARR, INC. The Amended Order of Penalty Assessment

included a Notice of Rights wherein AMSTARR, INC. was advised that any request for an

administrative proceeding to challenge or contest the Amended Order of Penalty Assessment

must be filed within twenty-one (21) days of receipt of the Amended Order of Penalty

Assessment in accordance with Sections 120.569 and 120.57, Florida Statutes, and must conform

to Rule28-106.2015, Florida Administrative Code.

4. On October 27,2011, the Amended Order of Penalty Assessment was served by

personal service via a process server on AMSTARR, INC. A copy of the Amended Order of

Penalty Assessment is attached hereto as "Exhibit B" and incorporated herein by reference.

5. On November 28, 2011, AMSTARR, INC. timely filed a request for

administrative hearing with the Department. The petition for administrative reVIew was

forwarded to the Division of Administrative Hearings on January 6, 2012, and the matter was

assigned DOAH Case No. 12-0080. A copy of the petition is attached hereto as "Exhibit C" and

incorporated herein by reference.

6. On March 8, 2012, the Department issued a 2nd Amended Order of Penalty

Assessment to AMSTARR, INC. The Amended Order of Penalty Assessment assessed a total

penalty of $2,256.78 against AMST ARR, INC. The 2nd Amended Order of Penalty Assessment

included a Notice of Rights wherein AMSTARR, INC. was advised that any request for an

administrative proceeding to challenge or contest the 2nd Amended Order of Penalty

Assessment must be filed within twenty-one (21) days of receipt of the 2nd Amended Order of

Penalty Assessment in accordance with Sections 120.569 and 120.57, Florida Statutes, and must

conform to Rule 28-106.2015, Florida Administrative Code.

7. On March 13,2011, the 2nd Amended Order of Penalty Assessment was served

by electronic mail on AMSTARR, INC. A copy of the 2nd Amended Order of Penalty

Assessment is attached hereto as "Exhibit D" and incorporated herein by reference.

8. On March 26,2012, AMSTARR, INC., entered into aSettlement Agreement with

the Department. The Settlement Agreement stated that AMSTARR, INC. must accept service of

the 2nd Amended Order of Penalty Assessment. The Settlement Agreement also stated that

AMSTARR, INC. must pay the penalty in full, or pay a down-payment of $1,000.00 and enter

into a Payment Agreement Schedule for Periodic Payment within thirty days of the execution of

the Settlement Agreement. Additionally, AMST ARR, INC. agreed that upon execution of the

Settlement Agreement his Petition shall be deemed dismissed with prejudice. A copy of the

Executed Settlement Agreement is attached hereto as "Exhibit E" and incorporated herein by

reference.

9. On March 26, 2012, the Department filed aNotice of Settlement with the

Division of Administrative Hearings. A copy of the Notice of Settlement is attached hereto as

"Exhibit F" and incorporated herein by reference.

10. On April 2, 2012, the Administrative Law Judge issued an Order Closing File and

Relinquishing Jurisdiction. A copy of the Order Closing File and Relinquishing Jurisdiction is

attached hereto as "Exhibit G" and incorporated herein by reference.

11. As ofthe date of this Final Order, AMSTARR, INC. has failed to comply with the

conditions of the Settlement Agreement. AMST ARR, INC. has neither paid the penalty amount

in full, nor has AMSTARR, INC. entered into a Payment Agreement Schedule for Periodic

Payment.

FINDINGS OF FACT

12. The factual allegations contained in the Stop-Work Order and Order of Penalty

Assessment issued on February 22,2011, the Amended Order of Penalty Assessment issued on

March 24,2011, and the 2nd Amended Order of Penalty Assessment, issued on March 8, 2012,

attached as "Exhibit A," "Exhibit B," and Exhibit "D" respectively, and fully incorporated herein

by reference, are hereby adopted as the Department's Findings of Fact in this case.

CONCLUSIONS OF LAW

13. The Department has jurisdiction over the subject matter of and the parties to this

matter pursuant to Chapter 440, Florida Statutes.

14. Based upon the Findings of Fact adopted herein, the Department concludes that

AMSTARR, INC. violated the specific statutes and rules alleged in the Stop-Work Order and

Order of Penalty Assessment, the Amended Order of Penalty Assessment, and the 2nd Amended

Order of Penalty Assessment, and hereby adopts the violation(s) charged in the Stop-Work Order

and Order of Penalty Assessment, the Amended Order of Penalty Assessment, and the 2nd

Amended Order of Penalty Assessment as the Conclusions of Law in this case.

PENALTY IMPOSED

15. The Order Closing File and Relinquishing Jurisdiction from the Division of

Administrative Hearings, the Executed Settlement Agreement, the Stop-Work Order and Order

of Penalty Assessment, the Amended Order of Penalty Assessment, and the 2nd Amended Order

of Penalty Assessment taken together with the Findings of Fact and Conclusions of Law adopted

, .

herein, constitute grounds for the Chief Financial Officer to impose the penalty as set forth

herein.

IT IS THEREFORE ORDERED that:

a. AMSTARR, INC. shall immediately pay the total penalty of $2,256.78 in full to

the Department of Financial Services for deposit into the Workers' Compensation Administration

Trust Fund;

b. AM STARR, INC. shall immediately cease all business operations in the State of

Florida until such time as the Department issues an order releasing the Stop-Work Order and

Order of Penalty Assessment. The Department shall not issue an Order releasing the Stop-Work

Order and Order of Penalty Assessment until AM STARR, INC. has come into compliance with

the coverage requirements of Chapter 440, Florida Statues and has paid a total penalty of

$2,256.78 to theDepartment.

DONE AND ORDERED on this aday of t¢K!A. ,2012.

Director, Workers' Compensation

NOTICE OF RIGHTS

Any party to these proceedings adversely affected by this Order is entitled to seek review

of this Order pursuant to Section 120.68, Florida Statutes, and Florida Rule of Appellate

Procedure 9.110. Review proceedings must be instituted by filing a Notice of Appeal with Julie

Jones, DFS Agency Clerk, Department of Financial Services, Room 612 Larson Building, 200

East Gaines Street, Tallahassee, Florida, 32399-0390 and a copy of the Notice of Appeal, a copy

of this Order and filing fee with the appropriate District Court of Appeal within thirty (30) days

of rendition of this Order.

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing was furnished by

U.S. Mail to the person(s) listed below, on this day of ,2012.

Lt>.. Stefan R. Grow ;:'" 1$-14

(Tv- Florida Bar No. 0093585 tilt/oS/)

Assistant General Counsel

Department Financial Services,

Division of Legal Services,

Workers' Compensation Section

200 East Gaines Street

Tallahassee, FL 32399-4229

850-413-1606 (Phone)

850-413-1978 (Fax)

Copies to:

Mr. Ken McGinnis

Amstarr, Inc.

265 Michaels Ct.

Chesnee, SC 29323