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 orders where the employers have paid all past due penalty payments within the specified time period. To preclude issuance of an order of conditional release to an employer where the employer is currently in default of any of its obligations under a penalty payment agreement or has had its stop-work order immediately reinstated through an Order Reinstating Stop-Work Order in a separate case.
SUMMARY: The proposed rule amendment provides guidance regarding procedures related to the conditional release of stop-work orders and the reinstatement of stop-work orders where employers have defaulted on penalty payment obligations.
SUMMARY 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)(a) 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):
TIME AND DATE: November 14, 2006, 10:00 a.m.
PLACE: 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 IS: Andrew Sabolic, Bureau Chief of Compliance, Division of Workers Compensation, Department of Financial Services, 200 East Gaines Street, Tallahassee, Florida 32399-4228, phone 850-413-1600
THE FULL TEXT OF THE PROPOSED RULE 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 From Stop Work Order as provided for in Section 440.107, F.S., are:
(a) The employer has come into compliance with the coverage requirements of Chapter 440, F.S. Compliance with the coverage requirements of Chapter 440, F.S., includes demonstration by the employer that it is no longer failing to secure the payment of compensation within the meaning of Section 440.107, F.S.
(b) The employer and the Department have executed a Payment Agreement Schedule for Periodic Payment of Penalty, Form Number DFS-F4-1600 (rev. 7/04).
(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 employers 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) The terms and conditions of a Payment Agreement Schedule for Periodic Payment of Penalty shall be:
(a) The employer shall make a down payment on the total assessed penalty amount to the Department that is the greater of $1000.00 or at least 10% of the total assessed penalty amount. The amount constituting the total assessed penalty amount, less the down payment, shall be referred to as the remaining penalty.
(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. The employer shall pay the remaining penalty in up to sixty consecutive monthly installments.
2. The employer may at any time pre-pay the installments of the remaining penalty, which have not become due.
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) Monthly payment installments shall only be remitted to the Departments address designated in the Payment Agreement Schedule for Periodic Payment of Penalty.
(d) Monthly payment installments shall be in the form of a cashiers check or money order only, made payable to the DFS-Workers Compensation Administration Trust Fund.
(e) If the employer is a corporation, only an officer of the corporation may execute the Payment Agreement Schedule For Periodic Payment of Penalty on behalf of the employer.
(f) If the employer is a business entity other than a corporation, any principal of the business entity may execute the Payment Agreement Schedule For Periodic Payment of Penalty on behalf of the employer.
(g) Failure by the employer to meet or violation of any term or condition of the Payment Agreement Schedule For Periodic Payment of Penalty shall constitute a default by the employer.
(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 (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) 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 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 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 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 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 separate case.
(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 Compensations 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) DFS-F4-1600 Payment Agreement Schedule for Periodic Payment of Penalty rev. 7/04
(b) DFS-F4-1601 Monthly Payment Installment Invoice rev. 8/04
(c) DFS-F4-1602 Order of Conditional Release from Stop-Work Order rev. 6/04
(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.
(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.
Specific Authority 440.107(9), 440.591 FS. Law Implemented 440.107(7)(a) FS. HistoryNew 4-6-05, Amended 7-20-05,___________.
