The proposed rules are amended to conform to applicable provisions of Section 440.107, F.S., as revised under Chapter No. 2014-109, Laws of Florida. Under proposed Rule 69L-6.015, F.A.C., the business record retention period required for employers ...

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Worker’s Compensation

RULE NOS.:RULE TITLES:

69L-6.015Record Maintenance and Production Requirements for Employers

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

PURPOSE AND EFFECT: The proposed rules are amended to conform to applicable provisions of Section 440.107, F.S., as revised under Chapter No. 2014-109, Laws of Florida. Under proposed Rule 69L-6.015, F.A.C., the business record retention period required for employers subject to Florida’s workers’ compensation law is reduced to two, rather than the three preceding, years of employment activity required under the previous law. Proposed Rule 69L-6.025, F.A.C., authorizes the Department to issue an Agreed Order of Conditional Release from Stop-Work Order to an employer who has secured appropriate coverage, if the employer makes a minimum initial down payment to the Department of $1,000 toward an assessed penalty and agrees to remit the remainder of the penalty in full or to make periodic payments in accord with the agreed payment schedule. The proposed rule also includes new language to provide that an employer’s failure to comply with the terms and conditions of the Agreed Order of Conditional Release from Stop-Work Order will result in the issuance by the Department of an Order Reinstating Stop-Work Order. Such orders will only be rescinded upon an employer’s payment of the entire balance of the unpaid penalty or, in the alternative, upon the employer’s entering into a Payment Agreement Schedule for Periodic Payment of Penalty with the Department prior to the expiration of twenty-one days from the Department’s issuance of an Order Reinstating Stop-Work Order. The proposed rule also adopts new Form DFS-F4-1600-B (Payment Agreement Schedule for Periodic Payment of Penalty for Order of Penalty Assessment), revises existing forms, and provides for the electronic payment of penalties. Proposed Rule 69L-6.025, F.A.C., has been renumbered to reflect the proposed changes and also includes certain technical changes.

SUMMARY: Proposed Rule 69L-6.015, F.A.C., reduces the business record retention period requirements for employers under Florida’s Workers’ Compensation law to a period consisting of an employer’s two, rather than three, years of employment activity. Proposed Rule 69L-6.025, F.A.C., modifies the terms and conditions under which the Department’s Division of Workers’ Compensation is authorized to issue an Agreed Order of Conditional Release from Stop-Work Order to employers who violate Chapter 440, F.S., as well as the circumstances under which such orders will be reinstated and rescinded. The proposed rule also incorporates a new form, and revises existing forms.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department has performed an economic analysis on each of the proposed rules and determined that neither rule will impose costs exceeding the economic analysis criteria set forth in paragraphs 120.541(1)(b) or (2)(a), F.S.

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.

RULEMAKING AUTHORITY: 440.05(10), 440.107(5), (9), 440.591 FS.

LAW IMPLEMENTED: 440.05(10), 440.107(3), (5), (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: Tuesday, June 16, 2015, 10:00 a.m.

PLACE: 102 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: Robin Delaney, [phone] or [e-mail]. 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: Robin Delaney, Chief, Bureau of Compliance, Division of Workers’ Compensation, Department of Financial Services, 200 E. Gaines Street, Tallahassee, Florida 32399-4228, [phone] or [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69L-6.015 Record Maintenance and Production Requirements for Employers.

(1) through (10) No Change.

(11) Records retention. An employer under the workers’ compensation law shall maintain the records specified in this rule for the current calendar year to date and for the preceding two three calendar years, in original form, whether paper, film, machine readable electronic material, or other media. A legible copy of the original record is an acceptable substitute for the original.

(12) No Change.

Rulemaking Specific Authority 440.05(10), 440.107(5), 440.591 FS. Law Implemented 440.05(10), 440.107(3), (5) FS. History–New 2-2-00, Formerly 38F-6.015, Amended 3-26-03, Formerly 4L-6.015, Amended 1-17-05, 1-17-05, _____________.

 

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

(1) The requirements for issuance of a an Form DFS-F4-1602, Agreed Order of Conditional Release from From Stop-Work Order, revised 05/15 and herein incorporated by reference, as provided for in Section 440.107, F.S., are as follows:

(a) No Change.

(b) The employer has paid a minimum penalty of $1,000 as a down payment and agreed to remit periodic payments of the remaining penalty amount pursuant to either Form DFS-F4-1600-A, Payment Agreement Schedule for Periodic Payment of Penalty, revised 05/15 (applicable in cases where the employee was issued a stop-work order), or Form DFS-F4-1600-B, Payment Agreement Schedule for Periodic Payment of Penalty for Order of Penalty Assessment, effective 05/15 (applicable in cases where the employee was issued an Order of Penalty Assessment). Both of the aforementioned forms are incorporated by reference herein and the Department have executed a Payment Agreement Schedule for Periodic Payment of Penalty, Form Number DFS-F4-1600 (rev. 7/04).

(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. and 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 either Form DFS-F4-1600-A, Payment Agreement Schedule for Periodic Payment of Penalty the Conditional Release From Stop-Work Order, Number DFS-F4-1602 (rev. 6/04), revised 05/15 (applicable in cases where the employee was issued a stop-work order), or Form DFS-F4-1600-B, Payment Agreement Schedule for Periodic Payment of Penalty for Order of Penalty Assessment, effective 05/15 (applicable in cases where the employee was issued an Order of Penalty Assessment), 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 Department’s address designated in the Payment Agreement Schedule for Periodic Payment of Penalty, or shall be remitted electronically via the Department’s online penalty payment service,. at http://www.myfloridacfo.com/Division/wc/.

(d) Monthly payment installments that are not remitted electronically shall be in the form of a cashier’s check or money order only, made payable to the DFS-Workers’ Compensation Administration Trust Fund. Monthly payments that are not remitted electronically via the Department’s online penalty payment service.

(e) If the employer is a corporation, only an officer of the corporation may execute the Payment Agreement Schedule for 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 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 For Periodic Payment of Penalty shall constitute a default by the employer.

(3) The Payment Agreement Schedule for 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 For Periodic Payment of Penalty, the Department will provide the employer with a Form DFS-F4-1601, Monthly Payment Installment Invoice, revised 05/15, and incorporated by reference herein Form Number DFS-F4-1601 (eff. 7-20-09), which shall be submitted with each monthly payment installment when remitting payments to the Department’s address.

(4)(a) If an employer fails to adhere to the terms and conditions of the Agreed Order of Conditional Release from Stop-Work Order, the stop-work order shall be immediately reinstated and the entire unpaid balance of the remaining penalty shall immediately become due and payable. Subsequent to the issuance of an Order Reinstating Stop-Work Order by the Department, the Department will rescind the Order Reinstating Stop-Work Order only if the employer pays the penalty in full or enters into a Payment Agreement Schedule for Periodic Payment of Penalty with the Department prior to the expiration of the twenty-one calendar day period.

(b)(4) If an employer defaults under any of its obligations under the Payment Agreement Schedule for 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 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 electronically via the Department’s online penalty payment service, or 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 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.

(c) “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.

(5) An employer that has entered into a Payment Agreement Schedule for 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 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 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 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 For Periodic Payment of Penalty;

(b) The employer must have submitted at least six (6) monthly payments under its original Payment Agreement Schedule for 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 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 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 For Periodic Payment of Penalty with an employer. The Department shall not enter into a new Payment Agreement Schedule for 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) 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) DFS-F4-1600 Payment Agreement Schedule for Periodic Payment of Penalty rev. 7/04.

(b) DFS-F4-1601 Monthly Payment Installment Invoice eff. 7-20-09.

(c) DFS-F4-1602 Order of Conditional Release from Stop-Work Order rev. 6/04.

(9)(10) No Change.

(10)(11) 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 paragraph 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.

(11)(12) An employer found conducting business in violation of an Order Reinstating Stop-Work Order may not enter into another Payment Agreement Schedule for 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 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, 7-20-09, ___________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Robin Delaney, Chief, Bureau of Compliance, Division of Workers’ Compensation, Department of Financial Services

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jeff Atwater, Chief Financial Officer, Department of Financial Services

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: May 18, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: January 27, 2015