FILED DEC 02 2008 Chief Financial Docketed by: STATE OF FLORIDA IN THE MATTER OF: Olo- 3266 CANAC KITCHEN AND BATH ms CONTRACTORS, INC. Case Number: 84602-06-WE / FINAL ORDER ‘THIS PROCEEDING came on for final agency action and Alex Sink, Chief Financial Officer of the State of Florida, or her designee, having considered the record in this case, including the Stop-Work Order and Order of Penalty Assessment and the Amended Orders of Penalty Assessment served in Division of Workers’ Compensation Case No. 05-349-D7, and being otherwise fully advised in the premises, hereby finds that: 1. On October 19, 2005, the Department of Financial Services, Division of Workers’ Compensation (hereinafter “Department”) issued a Stop-Work Order and Order of Penalty Assessment in Division of Workers’ Compensation Case No. 05-349-D7 to CANAC KITCHEN AND BATH CONTRACTORS, INC. The Stop-Work Order and Order of Penalty Assessment included a Notice of Rights wherein CANAC KITCHEN AND BATH CONTRACTORS, INC. was advised that any request for an administrative proceeding to challenge or contest the Stop- Work Order and Order of Penalty Assessment must be filed within twenty-one (21) days of receipt of the Stop-Work Order and Order of Penalty Assessment in accordance with Sections 120.569 and 120.57, Florida Statutes. 2. On October 19, 2005, the Stop-Work Order and Order of Penalty Assessment was served by personal service on CANAC KITCHEN AND BATH CONTRACTORS, INC. A copy of the Stop-Work Order and Order of Penalty Assessment is attached hereto as “Exhibit A” and incorporated herein by reference. 3. CANAC KITCHEN AND BATH CONTRACTORS, INC., failed to answer the Stop-Work Order and Order of Penalty Assessment or request a proceeding in accordance with Sections 120.569 and 120.57, Florida Statutes. 4. On December 8, 2005, the Department issued an Amended Order of Penalty Assessment in Case No. 05-349-D7 to CANAC KITCHEN AND BATH CONTRACTORS, INC. The Amended Order of Penalty Assessment assessed a total penalty of $167,739.13 against CANAC KITCHEN AND BATH CONTRACTORS, INC. The Amended Order of Penalty Assessment included a Notice of Rights wherein CANAC KITCHEN AND BATH ~ CONTRACTORS, INC. was advised that any request for an administrative proceeding to challenge or contest the Amended Order of Penalty Assessment must be filed within twenty-one (21) days of receipt of the Amended Order of Penalty Assessment in accordance with Sections 120.569 and 120.57, Florida Statutes. | 5. On December 10, 2005, the Amended Order of Penalty Assessment was served on CANAC KITCHEN AND BATH CONTRACTORS, INC. by certified mail. A copy of the Amended Order of Penalty Assessment is attached hereto as “Exhibit B” and incorporated herein by reference. | 6. CANAC KITCHEN AND BATH CONTRACTORS, INC. timely served a petition for hearing on the Department. By agreement of the parties, the petition was not immediately forwarded to the Division of Administrative Hearings. The petition for hearing was forwarded to the Division of Administrative Hearings on August 31, 2006. 7. On February 21, 2007, the Department issued a 2" Amended Order of Penalty Assessment in Case No. 05-349-D7 to CANAC KITCHEN AND BATH CONTRACTORS, ) INC. The 2" Amended Order of Penalty Assessment assessed a total penalty of $280,719.69 against CANAC KITCHEN AND BATH CONTRACTORS, INC. A copy of the 2"™ Amended Order of Penalty Assessment is attached hereto as “Exhibit C” and incorporated herein by reference. 8. On March 6, 2007, the Division of Administrative Hearings entered an Order Granting Motion For Leave To Amend Department’s Amended Order Of Penalty Assessment, amending Petitioner’s penalty to $280,719.69. A copy of the Order Granting Motion For Leave To Amend Department’s Amended Order of Penalty Assessment is attached hereto as “Exhibit D” and incorporated herein by reference. 9. On May 3, 2007, the Department issued a 3“ Amended Order of Penalty Assessment in Case No. 05-349-D7 to CANAC KITCHEN AND BATH CONTRACTORS, INC. The 3 Amended Order of Penalty Assessment assessed a total penalty of $280,719.69 against CANAC KITCHEN AND BATH CONTRACTORS, INC., and clarified the attached Penalty Worksheet regarding dates of payments and the corresponding approved manual rates of employees of CANAC KITCHEN AND BATH CONTRACTORS, INC. A copy of the 34 Amended Order of Penalty Assessment is attached hereto as “Exhibit E” and incorporated herein by reference. . 10. On May 14, 2007, the Division of Administrative Hearings entered an Order On Motion For Leave To Amend, granting the Department’s Motion to Amend Order of Penalty Assessment. A copy of the Order On Motion For Leave To Amend is attached hereto as “Exhibit F” and incorporated herein by reference. 11. On March 19, 2008, the Division of Administrative Hearings entered an Order Placing Case In Abeyance. The parties were to advise the court of the status of the matter no later than June 17, 2008. 12. On June 18, 2008, the parties filed an Amended Joint Status Report with the Division of Administrative Hearings. The Amended Joint Status Report informed the Division of Administrative Hearings that a formal hearing on the matter would not be necessary and that CANAC KITCHEN AND BATH CONTRACTORS, INC. would file a voluntary notice of dismissal with prejudice within ten days of filing the Amended Joint Status Report. 13. On August 4, 2008, the Administrative Law Judge issued an Order Closing File, relinquishing jurisdiction to the Department for final agency action. A copy of the Order Closing File is attached hereto as “Exhibit G” and incorporated herein by reference. 14. On August 14, 2008, CANAC KITCHEN AND BATH CONTRACTORS, INC. filed a Voluntary Dismissal With Prejudice And Motion To Close File with the Division of Administrative Hearings. A copy of the Voluntry Dismissal With Prejudice And Motion To Close File is attached hereto as “Exhibit H” and incorporated herein by reference. FINDINGS OF FACT 15. The factual allegations contained in the Stop-Work Order and Order of Penalty Assessment issued on October 19, 2005, and the 3" Amended Order of Penalty Assessment issued May 3, 2007, which are fully incorporated herein by reference, are hereby adopted as the Department’s Findings of Fact in this case. CONCLUSIONS OF LAW 16. Based upon the Findings of Fact adopted herein, the Department concludes that CANAC KITCHEN AND BATH CONTRACTORS, INC. violated the specific statutes and rules alleged in the Stop-Work Order and Order of Penalty Assessment and the 3" Amended Order of Penalty Assessment and hereby adopts the violation(s) charged in the Stop- Work Order and Order of Penalty Assessment and the 3™ Amended Order of Penalty Assessment as the Conclusions of Law in this case. PENALTY IMPOSED 17. The dismissal of the petition for hearing submitted in reference to the Stop-Work Order and Order of Penalty Assessment and the 3" Amended Order of Penalty Assessment, taken together with the Findings of Fact and Conclusions of Law adopted herein, constitute grounds for the Chief Financial Officer to impose the penalty and order the cessation of business operations as set forth herein. IT IS THEREFORE ORDERED that: a. CANAC KITCHEN AND BATH CONTRACTORS, INC. shall immediately pay the total penalty of $280,719.69 in full to the Department of Financial Services for deposit into the Workers' Compensation Administration Trust Fund; and b. CANAC KITCHEN AND BATH CONTRACTORS, INC. shall immediately cease all business operations in the State of Florida until such time as the Department issues an order releasing the Stop-Work Order and Order of Penalty Assessment. The Department shall not issue an order releasing the Stop- Work Order and Order of Penalty Assessment until CANAC KITCHEN AND BATH CONTRACTORS, INC. has come into compliance with the coverage requirements of Chapter 440, Florida Statutes, and has paid the total penalty of $280,719.69 to the Department. DONE and ORDERED this__ _ day of Loanler_ 2008. BRIAN LO DEPUTY CHIEF FINANCIAL OFFICER NOTICE OF RIGHTS Any party to these proceedings adversely affected by this Order is entitled to seek review of this Order pursuant to Section 120.68, Florida Statutes, and Rule 9.110, Florida Rules of Appellate Procedure. Review proceedings must be instituted by filing a Notice of Appeal with the General Counsel, acting as the agency clerk, at 612 Larson Building, Tallahassee, Florida 32399-0333, and a copy of the same and filing fee with the appropriate District Court of Appeal within thirty (30) days of rendition of this Order. COPIES FURNISHED TO: CAROL PORTER FLORIDA DEPARTMENT OF FINANCIAL SERVICES BUREAU OF COMPLIANCE 4415 METRO PARKWAY SUITE 300 FORT MYERS, FLORIDA 3916 FRANCESCO ARCIERI ARCIERI & ASSOCIATES 2500 NE COACHMAN ROAD CLEARWATER, FLORIDA 33765 THE HONORABLE LAWRENCE P. STEVENSON ADMINISTRATIVE LAW JUDGE DIVISION OF ADMINISTRATIVE HEARINGS THE DESOTO BUILDING 1230 APALACHEE PARKWAY TALLAHASSEE, FLORIDA 32399-3060

Docket for Case No: 06-003286