64W-4.007. Non-Compliance


Effective on Thursday, April 20, 2023
  • 1(1) A recipient who fails to comply with the requirements of Section 131009.65, F.S., 15the requirements of this chapter, or who is found to have made false statements or misrepresentations on the information in their application will be subject to the following:

    43(a) Pay a penalty, as set forth below, except the amount the Department is entitled to recover shall not be less than $31,000.

    671. The amount of the loan repayment paid to the lender; and

    792. Interest on the loan repayment amount at the maximum legal prevailing rate from the date of noncompliance, as determined by the Florida Department of Revenue and published on their website at https://floridarevenue.com/taxes/taxesfees/Pages/tax_interest_rates.aspx.

    112(b) Pay costs and expenses incurred in the collection of penalties, including attorney fees.

    126(3) The Department shall notify recipients of noncompliance. The notification shall include the date of noncompliance and the reason for the determination, the total amount to be repaid, the formula used to calculate the required repayment, options for repayment, and consequences of inaction.

    169(4) The debt will be due to be paid within six months from the date of the noncompliance notice. During the six-month repayment period, the debt will be reported to the credit reporting agencies as “current.” Failure to pay the debt by the due date has the following consequences:

    218(a) The debt will be reported as delinquent to credit reporting agencies. If the debt becomes past due (i.e., remains unpaid at the end of the repayment period), it will be reported as “delinquent.”

    252(b) The debt may be referred to a debt collection agency and the Department of Revenue. Any FRAME debt past due for 45 days may be referred to a debt collection agency. If the debt collection agency is unsuccessful in collecting payment, the debt will be referred to the Office of the Attorney General for filing of a lawsuit against the defaulted recipient.

    315(c) Notification of the amount of the debt to the Department’s Division of Medical Quality Assurance.

    331(5) A financial obligation under the FRAME program is not dischargeable in bankruptcy for seven years after the debt becomes due (i.e., for 7 years from the end of the one-year repayment period). After the 7-year period of absolute non-discharge expires, the debt may be discharged in bankruptcy only if a bankruptcy court determines that it would be unconscionable not to discharge the debt.

    395(6) This rule will be reviewed and repealed, modified, or renewed through the rulemaking process five years from the effective date.

    416Rulemaking Authority 4181009.65 FS. 420Law Implemented 4221009.65 FS. 424History–New 4-20-23.