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342.990 Penalties -- Restitution.
(1) The commissioner shall initiate enforcement of civil and criminal penalties imposed
in this section.
(2) When the commissioner receives information that he or she deems sufficient to
determine that a violation of this chapter has occurred, he or she shall seek civil <br>penalties pursuant to subsections (3) to (7) of this section, criminal penalties <br>pursuant to subsections (8) and (9) of this section, or both.
(3) The commissioner shall initiate enforcement of a civil penalty by simultaneously
citing the appropriate party for the offense and stating the civil penalty to be paid.
(4) If, within fifteen (15) working days from the receipt of the citation, a cited party
fails to notify the commissioner that he or she intends to contest the citation, then <br>the citation shall be deemed final.
(5) If a cited party notifies the commissioner that he or she intends to challenge a
citation issued under this section, the commissioner shall cause the matter to be <br>heard as soon as practicable by an administrative law judge and in accordance with <br>the provisions of KRS Chapter 13B. The burden of proof shall be upon the attorney <br>representing the commissioner to prove the offense stated in the citation by a <br>preponderance of the evidence. The parties shall stipulate to uncontested facts and <br>issues prior to the hearing before the administrative law judge. The administrative <br>law judge shall issue a ruling within sixty (60) days following the hearing.
(6) A party may appeal the ruling of the administrative law judge to the Franklin Circuit
Court in conformity with KRS 13B.140.
(7) The following civil penalties shall be applicable for violations of particular
provisions of this chapter: <br>(a) Any employer, insurer, or payment obligor subject to this chapter who fails to
make a report required by KRS 342.038 within fifteen (15) days from the date <br>it was due, shall be fined not less than one hundred dollars ($100) nor more <br>than one thousand dollars ($1,000) for each offense;
(b) Any employer, insurer, or payment obligor acting on behalf of an employer
who fails to make timely payment of a statement for services under KRS <br>342.020(1) without having reasonable grounds to delay payment may be fined <br>not less than one hundred dollars ($100) nor more than one thousand dollars <br>($1,000) for each offense;
(c) Any person who violates KRS 342.020(9), 342.035(2), 342.040, 342.340,
342.400, 342.420, or 342.630 shall be fined not less than one hundred dollars <br>($100) nor more than one thousand dollars ($1,000) for each offense. With <br>respect to employers who fail to maintain workers' compensation insurance <br>coverage on their employees, each employee of the employer and each day of <br>violation shall constitute a separate offense. With respect to KRS 342.040, any <br>employer's insurance carrier or other party responsible for the payment of <br>workers' compensation benefits shall be fined for failure to notify the <br>commissioner of a failure to make payments when due if a report indicating <br>the reason payment of income benefits did not commence within twenty-one
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(21) days of the date the employer was notified of an alleged work-related <br>injury or disease is not filed with the commissioner within twenty-one (21) <br>days of the date the employer received notice, and if the employee has not <br>returned to work within that period of time. The date of notice indicated in the <br>report filed with the department pursuant to KRS 342.038(1), shall raise a <br>rebuttable presumption of the date on which the employer received notice;
(d) Any person who violates any of the provisions of KRS 342.165(2), 342.335,
342.395, 342.460, 342.465, or 342.470 shall be fined not less than two <br>hundred dollars ($200) nor more than two thousand dollars ($2,000) for each <br>offense. With respect to KRS 342.395, each required notice of rejection form <br>executed by an employee or potential employee of an employer shall <br>constitute a separate offense;
(e) Any person who fails to comply with the data reporting provisions of
administrative regulations promulgated by the commissioner pursuant to KRS <br>342.039, or with utilization review and medical bill audit administrative <br>regulations promulgated pursuant to KRS 342.035(5), shall be fined not less <br>than one hundred dollars ($100) nor more than one thousand dollars ($1,000) <br>for each violation;
(f) Except as provided in paragraph (g) of this subsection, a person who violates
any of the provisions of KRS 342.335(1) or (2) where the claim, <br>compensation, benefit, or money referred to in KRS 342.335(1) or (2) is less <br>than or equal to three hundred dollars ($300) shall be fined per occurrence not <br>more than one thousand dollars ($1,000) per individual nor five thousand <br>dollars ($5,000) per corporation, or twice the amount of gain received as a <br>result of the violation, whichever is greater;
(g) Any person who violates any of the provisions of KRS 342.335(1) or (2)
where the claim, compensation, benefit, or money referred to in KRS <br>342.335(1) or (2) exceeds three hundred dollars ($300) shall be fined per <br>occurrence not more than five thousand dollars ($5,000) per individual nor ten <br>thousand dollars ($10,000) per corporation, or twice the amount of gain <br>received as a result of the violation, whichever is greater;
(h) Any person who violates the employee leasing provision of this chapter shall
be fined not less than five hundred dollars ($500) nor more than five thousand <br>dollars ($5,000) for each violation;
(i) Any violation of the provisions of this chapter relating to self-insureds shall
constitute grounds for decertification of such self-insured, a fine of not less <br>than five hundred dollars ($500) nor more than five thousand dollars ($5,000) <br>per occurrence, or both; and
(j) Actions to collect the civil penalties imposed under this subsection shall be
instituted in the Franklin District Court and the Franklin Circuit Court.
(8) The commissioner shall initiate enforcement of a criminal penalty by causing a
complaint to be filed with the appropriate local prosecutor. If the prosecutor fails to <br>act on the violation within twenty (20) days following the filing of the complaint, <br>the commissioner shall certify the inaction by the local prosecutor to the Attorney
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General who shall initiate proceedings to prosecute the violation. The provisions of <br>KRS 15.715 shall not apply to this section.
(9) The following criminal penalties shall be applicable for violations of particular
provisions of this chapter: <br>(a) Any person who violates KRS 342.020(9), 342.035(2), 342.040, 342.400,
342.420, or 342.630, shall, for each offense, be fined not less than one <br>hundred dollars ($100) nor more than one thousand dollars ($1,000), or <br>imprisoned for not less than thirty (30) days nor more than one hundred eighty <br>(180) days, or both;
(b) Any person who violates any of the provisions of KRS 342.165(2), 342.335,
342.460, 342.465, or 342.470 shall, for each offense, be fined not less than <br>two hundred dollars ($200) nor more than two thousand dollars ($2,000), or <br>imprisoned for not less than thirty (30) days nor more than one hundred and <br>eighty (180) days, or both;
(c) Any corporation, partnership, sole proprietorship, or other form of business
entity and any officer, general partner, agent, or representative of the <br>foregoing who knowingly utilizes or participates in any employee leasing <br>arrangement or mechanism as defined in KRS 342.615 for the purpose of <br>depriving one (1) or more insurers of premium otherwise properly payable or <br>for the purpose of depriving the Commonwealth of any tax or assessment due <br>and owing and based upon said premium shall upon conviction thereof be <br>subject to a fine of not less than five hundred dollars ($500) nor more than <br>five thousand dollars ($5,000), or imprisonment for not more than one <br>hundred eighty (180) days, or both, for each offense; and
(d) Notwithstanding any other provisions of this chapter to the contrary, when any
employer, insurance carrier, or individual self-insured fails to comply with <br>this chapter for which a penalty is provided in subparagraphs (7), (8), and (9) <br>above, such person, if the person is an owner in the case of a sole <br>proprietorship, a partner in the case of a partnership, a principal in the case of <br>a limited liability company, or a corporate officer in the case of a corporation, <br>who knowingly authorized, ordered, or carried out the violation, failure, or <br>refusal shall be personally and individually liable, both jointly and severally, <br>for the penalties imposed in the above cited subparagraphs. Neither the <br>dissolution nor withdrawal of the corporation, partnership, or other entity from <br>the state, nor the cessation of holding status as a proprietor, partner, principal, <br>or officer shall discharge the foregoing liability of any person.
(10) Fines paid pursuant to KRS 342.267 and subsections (7) and (9) of this section shall
be paid into the self-insurance fund established in KRS 342.920.
(11) In addition to the penalties provided in this section, the commissioner and any
administrative law judge or court of jurisdiction may order restitution of a benefit <br>secured through conduct proscribed by this chapter.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 1862, effective July 15, 2010. --
Amended 2006 Ky. Acts ch. 245, sec. 2, effective July 12, 2006. -- Amended 2000
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Ky. Acts ch. 514, sec. 36, effective July 14, 2000. -- Amended 1996 (1st Extra. Sess.) <br>Ky. Acts ch. 1, sec. 48, effective December 12, 1996. -- Amended 1996 Ky. Acts <br>ch. 318, sec. 315, effective July 15, 1996; and ch. 355, sec. 16, effective July 15, <br>1996. -- Amended 1994 Ky. Acts ch. 181, Part 13, sec. 64, effective April 4, 1994. -- <br>Amended 1987 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 71, effective October 26, 1987. <br>-- Amended 1984 Ky. Acts ch. 96, sec. 2, effective July 13, 1984. -- Amended 1980 <br>Ky. Acts ch. 188, sec. 276, effective July 15, 1980. -- Amended 1972 Ky. Acts <br>ch. 78, sec. 31. -- Amended 1966 Ky. Acts ch. 255, sec. 283. -- Amended 1960 Ky. <br>Acts ch. 147, sec. 18. -- Amended 1946 Ky. Acts ch. 61, sec. 4. -- Recodified 1942 <br>Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 4944, 4945, <br>4958, 4962, 4968-5.
Legislative Research Commission Note (7/15/96). This section was amended by 1996
Ky. Acts chs. 318 and 355. Where these Acts are not in conflict, they have been <br>codified together. Where a conflict exists, Acts ch. 355, which was last enacted by <br>the General Assembly, prevails under KRS 446.250.
Legislative Research Commission Note (12/12/96). The reference to "subparagraphs
(7), (8), and (9) above" in subsection (9)(d) of this statute is how this text read in <br>1996 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 48. The normal hierarchy of subdivision <br>in a section of the Kentucky Revised Statutes is, in descending order, subsections <br>(indicated by Hindu-Arabic numerals in parentheses), paragraphs (indicated by <br>lowercase letters in parentheses), subparagraphs (indicated by Hindu-Arabic <br>numerals followed by a period), and subdivisions of subparagraphs (indicated by <br>lowercase letters followed by a period). This statute contains no subparagraphs 7., 8., <br>and 9., but the type of numbering used suggests that "subsections" may have been <br>meant in this phrase instead of "subparagraphs."
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