STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

ECKER ENTERPRISES, )

)

Petitioner, )

)

vs. ) CASE NO. 80-1717

) FLORIDA DEPARTMENT OF LABOR ) AND EMPLOYMENT SECURITY, )

)

Respondent. )

)

RECOMMENDED ORDER

Pursuant to notice, an administrative hearing was held before P. Michael Ruff, Hearing Officer with the Division of Administrative Hearings on October 24, 1980 in Tallahassee, Florida.

APPEARANCES

For Petitioner: Jack C. Inman, Esquire

Post Office Box 1294 Orlando, Florida 32802

For Respondent: Douglas P. Chance, Esquire

Department of Labor & Employment Security 2502 Executive Center Circle, East Tallahassee, Florida 32301

The Department of Labor and Employment Security revoked the privilege of Ecker Enterprises to provide self-insurance for worker's compensation claims with regard to its Florida operations, and Ecker Enterprises has petitioned for this hearing.

The issue involved in this proceeding is whether the Department of Labor and Employment Security properly revoked the Petitioner's privilege of providing its own self-insurance to cover its worker's compensation exposure in the State of Florida.

The Petitioner presented no witnesses but rather proposed a stipulation, and obtained the Department's agreement, that the privilege could remain in force for forty-five days provided that the Petitioner within that time submitted financial statements certified and in the proper form in accordance with Chapter 38-5, Florida Administrative Code (rules for self insurers). The failure to submit financial statements and other financial information, underlying the granting of the privilege, on a continuing basis, raised the present dispute.

The Respondent, Department of Labor and Employment Security, presented one witness.

FINDINGS OF FACT

1. The Petitioner, Ecker Enterprises, is a corporation licensed to do business in Florida with home offices in Chicago, Illinois. It has, in the past, and up until the approximate time of this proceeding, properly authenticated its ability to provide its own insurance or funds to cover any worker's compensation exposure emanating from its operations within the State of Florida in a manner sufficient to comply with Chapter 440, Florida Statutes, and Chapter 35-5, Florida Administrative Code. The corporation, however, failed to file required financial statements and other financial information with the Bureau of Self-Insurance of the Department for 1980. On August 18, 1980 the Chief of the Bureau of Worker's Compensation, Self-Insurance issued a revocation of the corporation's privilege to be self- insured in the State of Florida pursuant to Rule 38-5.12(5) Florida Administrative Code. The financial statements involved were filed at a later time, although not timely, but did not comport with the subject rules on self-insurers in that they were not certified and did not contain the required information as to financial disclosure. The Department stipulated that it would forebear from revoking the privilege for forty-five days and allow the self-insurance privilege to remain in force provided the corporation filed the necessary documentation pursuant to Section 440.51(12) Florida Statutes, and the above-cited rule, within that period of time, to which the Petitioner agreed.

   
   

2. The time stipulated by which the filings were to be made has elapsed and the Petitioner has failed to comply with the stipulation.

   
   

   CONCLUSIONS OF LAW

   
   

3. Sections 440.38 and 440.51 Florida Statutes generally allow an employer in the State of Florida, after furnishing satisfactory proof to the Division of Worker's Compensation, to pay worker's compensation claims directly by providing its own insurance, becoming a "self-insurer". Failure to submit any report or other information, financial or otherwise, required by the chapter and specifically by Sections 440.35 or 440.51 constitutes just cause to suspend the right of a self-insurer to operate as such.

   
   

4. There is no question but that Ecker Enterprises failed to timely file the required financial statements and ether financial information required by the Division of Worker's Compensation, Department of Labor and Employment Security and even failed to file that information after the Department agreed to forebear from finally revoking that privilege for forty-five days.

Consequently, no justification for such failure to comply with the law having been demonstrated, it must be concluded that the revocation of the privilege of self-insuring for worker's compensation payments within the State was properly revoked.

RECOMMENDATION

Having considered the evidence in the record the candor and demeanor of the witnesses, the foregoing Findings of Fact and Conclusions of Law, and arguments of counsel, it is therefore RECOMMENDED that the revocation of privilege of

self-insurance in the State of Florida previously imposed against the Petitioner herein was proper and should therefore stand unchanged.

DONE and ENTERED this 6th day of January, 1981, in Tallahassee, Florida.

P. MICHAEL RUFF Hearing Officer

Division of Administrative Hearings Room 101 Collins Building Tallahassee, Florida 32301

(904) 488-9675

Filed with the Clerk of the Division of Administrative Hearings this 6th day of January, 1981.

COPIES FURNISHED:

Jack C. Inman, Esquire Post Office Box 1294 Orlando, Florida 32302

Douglas P. Chance, Esquire

Dept. of Labor and Employment Security 2562 Executive Center Circle, East Tallahassee, Florida 32301

Mr. Wallace E. Orr Secretary

Department of Labor and Employment Security

Suite 206 Berkley Building

2690 Executive Center Circle, East Tallahassee, Florida 32301

Docket for Case No: 80-001717

Orders for Case No: 80-001717