DAR File No. 31565

Labor Commission, Industrial Accidents

R612-11

Prohibition of Direct Payments by Insured Employer

NOTICE OF PROPOSED RULE

DAR File No.: 31565
Filed: 06/16/2008, 09:27
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule is to designate as "informal proceeding" the initial process by which the Industrial Accidents Division will assess penalties against employers who improperly pay workers' compensation claims directly, rather than submitting those claims to their workers compensation insurance carrier.

Summary of the rule or change:

The rule designates as an informal adjudicative proceeding the initial process to assess penalties against employers who pay workers' compensation claims directly. The rule designates subsequent proceedings as formal adjudicative proceedings.

State statutory or constitutional authorization for this rule:

Sections 34A-1-104 and 34A-2-201.3, and Subsection 63G-4-202(1)

Anticipated cost or savings to:

the state budget:

The administrative costs of implementing this rule can be absorbed within the existing budget of the Labor Commission. The Commission does not anticipate any additional costs or savings to the state budget.

local governments:

Local governments do not have any administrative responsibilities or substantive obligations relative to this rule and will not experience any savings or costs.

small businesses and persons other than businesses:

There will be no cost for small businesses or other persons since this rule only defines processes within the Labor Commission. However, by designating initial proceedings as "informal", small businesses and persons other than businesses should experience fewer legal and other expenses.

Compliance costs for affected persons:

The Commission does not anticipate any compliance cost(s) for affected persons or entities. By designating initial proceedings as "informal", affected persons and entities should experience fewer legal and other expenses.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule will allow the Labor Commission to effectively pursue violations of claims reporting requirements. This will, in turn, ensure a level playing field for all companies. Sherrie Hayashi, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Labor Commission
Industrial Accidents
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Larry Bunkall at the above address, by phone at 801-530-6988, by FAX at 801-530-6844, or by Internet E-mail at lbunkall@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/31/2008

This rule may become effective on:

08/07/2008

Authorized by:

Sherrie Hayashi, Commissioner

R612. Labor Commission, Industrial Accidents.

R612-11. Prohibition of Direct Payments by Insured Employer.

R612-11-1. Authority.

This rule is enacted under the authority of U.C.A. Sections 34A-1-104, 34A-2-201.3, and 63G-4-202(1) and is applicable to proceedings under section 34A-2-201.3 to assess a penalty for direct payment of workers' compensation benefits by an insured employer.

 

R612-11-2. Designation as Informal Proceedings.

Initial proceedings to assess such penalty are hereby designated as informal adjudicatory proceedings, while all subsequent proceedings with respect to assessment of such penalty are hereby designated as formal proceedings.

 

KEY: workers' compensation, administrative procedures, reporting, settlements

Date of Enactment or Last Substantive Amendment: 2008

Authorizing, and Implemented or Interpreted Law: 34A-2-101 et seq.; 34A-3-101 et seq.; 34A-1-104; 78-29-102; 78-29-104