Decisions by organization - Disputed decisions

N.D.C.C. § 65-04-32 — under The Fund and Premium Payments Thereto.

N.D.C.C. § 65-04-32

Notwithstanding any provisions to the contrary in chapter 28-32, the following procedures apply when the organization issues a decision under this chapter or section 65-04-04.4: 1. The organization may issue a notice of decision based on an informal internal review of the record and shall issue the notice of the decision on the parties by regular mail or electronic means. The organization shall include with the decision a notice of the employer's right to reconsideration. 2. An employer has forty-five days from the day the notice of decision was issued by the organization by regular mail or electronic means to file a written request for reconsideration. The request for reconsideration is considered filed only upon receipt by the organization. The employer is not required to file the request through an attorney. The request must state the reason for disagreement with the organization's decision and the desired outcome. The request may be accompanied by additional evidence not previously submitted to the organization. The organization shall reconsider the matter by informal internal review of the information of record. Absent a timely and sufficient request for reconsideration, the notice of decision is final and may not be reheard or appealed.

3. After receiving a petition for reconsideration, unless settlement negotiations are ongoing, the organization shall issue to the parties by regular mail or electronic means, an administrative order including its findings of fact, conclusions of law, and order, in response to the petition for reconsideration. The organization may serve an administrative order on any decision made by informal internal review without first issuing a notice of decision and receiving a request for reconsideration. If the organization does not issue an order within sixty days of receiving a request for reconsideration, a party may request, and the organization shall promptly issue, an appealable determination. 4. A party has forty-five days from the date of issuance of an administrative order to file a written request for rehearing. The request must state specifically each alleged error of fact and law to be reheard and the relief sought. Absent a timely and sufficient request for rehearing, the administrative order is final and may not be reheard or appealed. 5. Rehearings must be conducted as hearings under chapter 28-32 to the extent that chapter does not conflict with this section. 6. An employer may appeal a posthearing administrative order to district court in accordance with chapter 65-10. Chapter 65-10 does not preclude the organization from appealing to district court a final order issued by a hearing officer under this title.

65-04-33. Intentional acts - Failure to secure coverage - Uninsured - Noncompliance - Failure to submit necessary reports - Penalty. 1. An employer may not employ any person, or receive the fruits of the labor of any person, in a hazardous employment as defined in this title, without first applying for workforce safety and insurance coverage for the protection of employees by notifying the organization of the intended employment, the nature of the intended employment, and the estimated payroll expenditure for the coming twelve-month period. 2. a. An employer that willfully misrepresents to the organization or its representative, by statement or omission, the amount of payroll upon which a premium under this title is based, or that willfully fails to secure coverage for employees, is liable to the state in the amount of five thousand dollars plus three times the difference between the premium paid and the amount of premium the employer should have paid. b. The organization shall collect a penalty imposed under this subsection in a civil action in the name of the state, and the organization shall deposit a penalty collected under this subsection to the credit of the workforce safety and insurance fund. c. An employer that willfully misrepresents to the organization or its representative, by statement or omission, the amount of payroll upon which a premium under this title is based, or that willfully fails to secure coverage for employees, is guilty of a class A misdemeanor. If the premium due exceeds one thousand dollars, the penalty for willful failure to secure coverage or willful misrepresentation to the organization or its representative is a class C felony. If the employer is a corporation or a limited liability company, the president, secretary, treasurer, or person with primary responsibility is liable for the failure to secure workforce safety and insurance coverage under this subsection. d. In addition to the penalties prescribed by this subsection, the organization may initiate injunction proceedings as provided for in this title to enjoin an employer from unlawfully employing uninsured workers. e. The cost of an investigation under this subsection which results in a criminal conviction may be charged to the employer's account and collected by civil action. 3. An employer that willfully makes a false statement or fails to make a statement in an attempt to preclude an injured worker from securing benefits or payment for services, or that willfully discharges or threatens to discharge an employee for seeking or making known the intention to seek workforce safety and insurance benefits is liable to the state in the amount of five thousand dollars. The organization shall collect a civil

penalty imposed under this section in a civil action in the name of the state, and the organization shall deposit a penalty collected under this section to the credit of the workforce safety and insurance fund. A willful violation of this section is a class A misdemeanor. The cost of an investigation under this subsection which results in a criminal conviction may be charged to the employer's account and collected by civil action. 4. a. An employer that is uninsured for failure to secure coverage is liable for any premiums, assessments plus penalties and interest due on those premiums, plus a penalty of twenty-five percent of all premiums due during the most recent year of failure to secure coverage. b. An additional five percent penalty is due for each year of failure to secure coverage before the most recent year beginning on the date the organization became aware of the employer's failure to secure coverage, resulting in the penalty for the second most recent year being thirty percent, for the third most recent year being thirty-five percent, for the fourth most recent year being forty percent, for the fifth most recent year being forty-five percent, and for the sixth most recent year being fifty percent. c. In addition, the organization may assess a penalty of up to five thousand dollars for each premium period the employer failed to secure coverage. The organization may not assess a penalty for more than six years of failure to secure coverage. d. The organization may assess an employer the actual cost and reserves of any claim attributable to the employer during the time the employer failed to secure coverage. e. The penalties for employers are in addition to any other penalties by law. The organization may reduce the penalties provided for under this section. An employer may not appeal an organization decision not to reduce a penalty under this subsection. 5. a. An employer in noncompliance is subject to a penalty of up to five thousand dollars for each premium period the employer was in noncompliance. b. The organization may not assess a penalty for more than six years of past noncompliance. c. The organization may reduce the penalties provided for under this section. An employer may not appeal an organization decision not to reduce a penalty under this subsection. 6. a. An employer that fails or refuses to furnish to the organization the payroll report or estimate, or that fails or refuses to furnish other information required by the organization under this chapter is subject to a penalty established by the organization of up to five thousand dollars. b. Upon the request of the organization, the employer shall furnish the organization any of that employer's payroll records, payroll reports, and other information required by the organization under this chapter and an estimate of payroll for the advance premium year. c. If the employer fails or refuses to provide the records within thirty days of a written request from the organization, the employer is subject to a penalty of five thousand dollars and a penalty not to exceed one hundred dollars for each day until the organization receives the records. d. The organization may not assess a penalty that exceeds one hundred fifty dollars under this subsection against an organized township. e. The organization may reduce penalties for employers under this subsection. However, an employer may not appeal an organization decision not to reduce a penalty.