Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO: KRS Chapter 13B, 342.990
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
13B.170 authorizes administrative agencies to
promulgate administrative regulations necessary to carry out the provisions of
KRS Chapter 13B governing administrative hearings.
KRS
342.260 requires the Commissioner of the
Department of Workers' Claims to promulgate administrative regulations
necessary to carry on the work of the department and administrative law judges.
KRS
13B.070(3) requires
administrative agencies to promulgate administrative regulations to set forth
specific procedures to facilitate informal settlement of matters.
KRS
342.260(4) requires
processes and procedures to be as summary and simple as reasonably possible.
KRS
342.267 and
342.990
establish penalties for various violations of KRS Chapter 342.
KRS
342.990 also provides a party the opportunity
to challenge a penalty assessed against them. This administrative regulation
establishes procedures for enforcement hearings under KRS Chapter 342
Section 1. Definitions.
(1) "Administrative law judge" means an
individual appointed pursuant to
KRS
342.230(2).
(2) "Business day" means any day except
Saturday, Sunday or any day which is a legal holiday.
(3) "Commissioner" is defined by
KRS
342.0011(9).
Section 2.
(1) Prior to issuing a notice of citation and
penalty, the commissioner may issue a show cause order to a person who has
allegedly violated KRS Chapter 342 or 803 KAR Chapter 25 to appear at an
informal conference to show cause why a citation should not be
issued.
(2) The show cause order
shall include the following:
(a) Detailed
explanation of alleged violations;
(b) Statutes or administrative regulations
that were allegedly violated;
(c)
Date, time, and place of show cause informal conference; and
(d) If the commissioner is not presiding over
the informal conference, the name of the commissioner's designee.
(3) The person issued a show cause
order shall be present on the specified date, time, and place and show cause
why a citation should not be issued.
(4) The commissioner or the commissioner's
designee shall gather relevant evidence concerning the alleged violations of
KRS Chapter 342 from a representative of the Department of Workers' Claims and
the person to whom the show cause order was issued.
(5) If the commissioner is presiding over the
informal conference and the parties wish to resolve the matter informally
without the necessity of a citation and a formal hearing, an agreement may be
entered.
(6) If the commissioner's
designee is presiding over the informal conference and the parties wish to
resolve the matter informally without the necessity of a citation and formal
hearing, a recommended agreed order shall be submitted to the commissioner for
approval.
(7) If the parties do not
resolve the matter by agreement and the commissioner's designee presides over
the informal conference, the commissioner's designee shall issue a recommended
order which includes his findings of fact, conclusions of law, and recommended
disposition to the commissioner as to whether a citation should be
issued.
(8) The commissioner shall
review the evidence and if applicable the recommended order and either:
(a) Issue a citation for violation of KRS
Chapter 342 or 803 KAR Chapter 25;
(b) Issue a statement that no citation is
warranted; or
(c) Request
additional evidence for further review.
(9) The commissioner may immediately issue a
citation for any violation of KRS Chapter 342 or 803 KAR Chapter 25 without
issuing a show cause order or conducting an informal
conference.
Section 3.
Issuance of Citation and Notice of Contest.
(1) If the commissioner initiates enforcement
of a civil penalty pursuant to
KRS
342.990, the "notice of citation and penalty"
shall be delivered to the appropriate party by certified mail or hand-delivered
by authorized personnel of the Department of Workers' Claims.
(2) The party to whom a notice of citation
and penalty has been delivered may contest the citation and penalty by filing a
written "notice of contest" with the commissioner within fifteen (15) working
days of the receipt of the notice of citation and penalty.
(3) A notice of contest shall state the
following:
(a) The specific grounds for the
contest; and
(b) Whether the fact
of a violation or level of the civil penalty, or both, is being
contested.
(4) If a
notice of contest is not timely filed in accordance with
KRS
342.990(4), the citation
shall be final and the penalty due for payment.
Section 4. Assignment to Administrative Law
Judge; Prehearing Procedure.
(1) In
accordance with
KRS
342.990(5), the
administrative law judge shall require parties to file a stipulation of
uncontested facts not later than five (5) business days prior to the scheduled
hearing date.
(2) The
administrative law judge may require each party to file a witness and exhibit
list described in
KRS
13B.090(3) not later than
five (5) business days prior to the scheduled hearing date with the
administrative law judge and all other parties.
Section 5. Formal Hearing.
(1) An administrative law judge shall preside
over the conduct of the formal hearing and shall regulate the course of the
proceeding in accordance with KRS Chapter 13B and any prehearing order issued
by the administrative law judge.
(2) A party may submit proof at the formal
hearing through the use of depositions, if the other parties received timely
notice and had the opportunity to attend.
Section 6. Orders.
(1) The administrative law judge shall
determine if the commissioner's citation was properly issued and the penalty
appropriately assessed and issue a final order in accordance with
KRS
342.990(5) and
13B.120.
(2) The administrative law judge's final
order shall be appealable to the Franklin Circuit Court in accordance with
KRS
342.990(6) and
13B.140.
Section 7. Appeal/Payment of Fine.
(1) If a party does not file a petition of
appeal pursuant to
KRS
342.990 and
13B.140,
the order shall be final and the civil penalty assessed in the order shall be
due.
(2) A civil penalty that is
not appealed to the Franklin Circuit Court shall be paid by certified check or
money order payable to the Kentucky State Treasurer. The fine shall be mailed
to the Department of Workers' Claims, Mayo-Underwood Building, 500 Mero Street,
Frankfort, Kentucky 40601.
STATUTORY AUTHORITY:
KRS
13B.070(3),
13B.170,
342.267,
342.260,
342.990(5).
