KRS 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

penalties pursuant to subsections (3) to (7) of this section, criminal penalties

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

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

heard as soon as practicable by an administrative law judge and in accordance with

the provisions of KRS Chapter 13B. The burden of proof shall be upon the attorney

representing the commissioner to prove the offense stated in the citation by a

preponderance of the evidence. The parties shall stipulate to uncontested fa cts and

issues prior to the hearing before the administrative law judge. The administrative

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:

(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

it was due, shall be fined not less than one hundred dollars ($100) nor more

than one thousand dollars ($1,000) for each offense;

(b) Any employer, insurer, or payment obligor acting on behalf of an e mployer

who fails to make timely payment of a statement for services under KRS

342.020(4) without having reasonable grounds to delay payment may be fined

not less than one hundred dollars ($100) nor more than one thousand dollars

($1,000) for each offense;

(c) Any person who violates KRS 342.020(12), 342.035(2), 342.040, 342.340,

342.400, 342.420, or 342.630 shall be fined not less than one hundred dollars

($100) nor more than one thousand dollars ($1,000) for each offense. With

respect to employers who fai l to maintain workers' compensation insurance

coverage on their employees, each employee of the employer and each day of

violation shall constitute a separate offense. With respect to KRS 342.040, any

employer's insurance carrier or other party responsible for the payment of

workers' compensation benefits shall be fined for failure to notify the

commissioner of a failure to make payments when due if a report indicating

the reason payment of income benefits did not commence within twenty -one

(21) days of the date the employer was notified of an alleged work -related

injury or disease is not filed with the commissioner within twenty -one (21)

days of the date the employer received notice, and if the employee has not

returned to work within that period of time. The date of notice indicated in the

report filed with the department pursuant to KRS 342.038(1), shall raise a

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

hundred dollars ($200) nor more than two thousand dollars ($2,000) for each

offense. With respect to KRS 342.395, each required notice of rejection form

executed by an employee or potential employee of an employer shall

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

342.039, or with utilization review and medical bill audit administrative

regulations promulgated pursuant to KRS 342.035(5), shall be fined not less

than one hundred dollars ($100) nor more than one thousand dollars ($1,000)

for each violation;

(f) Except as provided in paragraph (g) of thi s subsection, a 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 342.335(1) or (2) is less

than or equal to three hundred dollars ($300) shall be fined per occurrence not

more than one thousand dollars ($1,000) per individual nor five thousand

dollars ($5,000) per corporation, or twice the amount of gain received as a

result of the violation, whichever is greater;

(g) Any person who violates any of the provisions of KRS 34 2.335(1) or (2)

where the claim, compensation, benefit, or money referred to in KRS

342.335(1) or (2) exceeds three hundred dollars ($300) shall be fined per

occurrence not more than five thousand dollars ($5,000) per individual nor ten

thousand dollars ($ 10,000) per corporation, or twice the amount of gain

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

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

than five hundred dollars ($500) nor more than five thousand dollars ($5,000)

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 co mmissioner shall initiate enforcement of a criminal penalty by causing a

complaint to be filed with the appropriate local prosecutor. If the prosecutor fails to

act on the violation within twenty (20) days following the filing of the complaint,

the commissioner shall certify the inaction by the local prosecutor to the Attorney

General who shall initiate proceedings to prosecute the violation. The provisions of

KRS 15.715 shall not apply to this section.

(9) The following criminal penalties shall be applicab le for violations of particular

provisions of this chapter:

(a) Any person who violates KRS 342.020(12), 342.035(2), 342.040, 342.400,

342.420, or 342.630, shall, for each offense, be fined not less than one

hundred dollars ($100) nor more than one thousan d dollars ($1,000), or

imprisoned for not less than thirty (30) days nor more than one hundred eighty

(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, b e fined not less than

two hundred dollars ($200) nor more than two thousand dollars ($2,000), or

imprisoned for not less than thirty (30) days nor more than one hundred and

eighty (180) days, or both; and

(c) Notwithstanding any other provisions of this chapter to the contrary, when any

employer, insurance carrier, or individual self -insured fails to comply with

this chapter for which a penalty is provided in subparagraphs (7), (8), and (9)

above, such person, if the person is an owner in the case of a sole

proprietorship, a partner in the case of a partnership, a principal in the case of

a limited liability company, or a corporate officer in the case of a corporation,

who knowingly authorized, ordered, or carried out the violation, failure, or

refusal shall be personally and individually liable, both jointly and severally,

for the penalties imposed in the above cited subparagraphs. Neither the

dissolution nor withdrawal of the corporation, partnership, or other entity from

the state, nor the cessation of hol ding status as a proprietor, partner, principal,

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

secured through conduct proscribed by this chapter.