The proposed rule amendment is intended to reduce the penalty structure for self-insured employers for failing to timely file forms, reports, or documents as required by section 440.38(2)(b), F.S.

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Workers’ Compensation

RULE NO.:RULE TITLE:

69L-5.217Civil Penalties and Fines

PURPOSE AND EFFECT: The proposed rule amendment is intended to reduce the penalty structure for self-insured employers for failing to timely file forms, reports, or documents as required by section 440.38(2)(b), F.S.

SUMMARY: The proposed changes reflect changes to the penalty structure for self-insured employers.

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: This rule is being amended to reflect statutory changes and to remedy technical issues.

Any person who wishes to provide information regarding the statement of estimated regulatory costs, or to provide a proposal for a lower cost regulatory alternative, must do so in writing within 21 days of this notice.

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: 440.38(2)(b); 440.385(6); 440.525(2); 440.591, FS.

LAW IMPLEMENTED: 440.38(2)(b); 440.35(1), (3), (6); 440.525, 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: Monday, September 17, 2018, 9:30 a.m.

PLACE: Hartman Building, 2012 Capital Circle SE, Tallahassee, FL 32301.

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: Dwayne Manning telephone: [phone], email: [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: Dwayne Manning, Insurance Administrator, address: Bureau of Financial Accountability, Division of Workers’ Compensation, 200 East Gaines Street, Tallahassee, FL 32399, telephone: [phone], email: [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69L-5.217 Civil Penalties and Fines.

(1) Civil Penalties for Delinquent Reports – Failure to timely file legible and complete forms, reports, or documents as required by Ssection 440.38(2)(b), F.S., or these rules, shall subject the party required to file such form, report, or document to assessment by the Department of a civil penalty. For purposes of this rule, a form, report, or document is considered timely filed if postmarked on or before the due date prescribed in this rule. Reports submitted by a Qualified Servicing Entity on behalf of the self-insurer shall be treated as if they were submitted by the self-insurer directly.

(a) Late filed forms, reports, and documents required pursuant to this rule shall be penalized as follows:

1. through 3. No change.

4. For periods greater than sixty (60) days, $50.00 $100.00 per day from the required filing date. Total penalties assessed under this section for a single late filed form, report, or document shall not exceed $5,000 $10,000.

(b) These civil penalties are to be applied per occurrence, perform, report, or document. Payment shall be made within fifteen (15) days after receipt of the notification and submitted along with the form, report, or document. Failure to submit the required forms, reports, and documents constitutes good cause for revocation of the self-insurance authorization, and subjects the party in addition to the civil penalties specified in this rule.

(c) Any self-insurer that has been assessed penalties in excess of the amounts specified in paragraph (1)(a) herein since October 21, 2012, March 9, 2010 until the effective date of this amended rule will have its the penalty amount recalculated pursuant to paragraph (1)(a). If the self-insurer has already paid penalties to the Department, the Department shall refund the difference between the penalties paid and those recalculated under paragraph (1)(a) to the self-insurer, unless the self-insurer owes any outstanding, unpaid penalties to the Department. Any outstanding, unpaid penalties must be paid in full prior to any refund being issued by the Department.

(2) through (4) No change.

(5) All civil penalty and fine payments shall be made payable to the Workers’ Compensation Administration Trust Fund and mailed to the:

Department of Financial Services

Division of Workers’ Compensation

Bureau of Financial Accountability Monitoring and Audit/Self-Insurance

200 East Gaines Street

Tallahassee, FL 32399-4224

(6) Failure to submit forms, reports, documents, Financial Statements, or Actuarial Reports or to remit civil penalties or fines shall be grounds for revocation of the self-insurance authorization.

Rulemaking Authority 440.38(1), (2)(b), (3), 440.385(6), 440.525(2), 440.591 FS. Law Implemented 440.38(1), (2)(b), (3), 440.385(1), (3), (6), 440.525 FS. History–New 3-9-10, Amended 12-29-11, 10-21-12,           .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Dwayne Manning

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jimmy Patronis

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: August 22, 2018

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: July 10, 2018