4123.322 [Effective Until 9/17/2014] Rules for system of prospective payment of workers' compensation premiums.

(A) Notwithstanding any provision to the contrary in section 4123.32 or 4123.41 of the Revised Code, the administrator of workers' compensation, with the advice and consent of the bureau of workers' compensation board of directors, may adopt rules with respect to the collection, maintenance, and disbursements of the state insurance fund to provide for a system of prospective payment of workers' compensation premiums. If the administrator elects to adopt rules establishing a prospective payment system, those rules shall include all of the following:

(1) A requirement that, notwithstanding section 4123.26 of the Revised Code, on or before the thirtieth day of June of each year, or such other date as the administrator establishes, every employer mentioned in division (B)(2) of section 4123.01 of the Revised Code shall file with the bureau of workers' compensation an estimate of the employer's payroll for the immediately following twelve-month period or other period as the administrator establishes;

(2) A requirement that upon an initial application for coverage, an employer mentioned in division (B)(2) of section 4123.01 of the Revised Code shall file with the application an estimate of the employer's payroll for the unexpired period from the date of application to the period ending on the following thirtieth day of June or other date as established by the administrator pursuant to division (A)(1) of this section, and shall pay the amount the administrator determines by rule in order to establish coverage for the employer as described in division (B)(12) of section 4121.121 of the Revised Code;

(3) A requirement that, notwithstanding section 4123.26 or 4123.41 of the Revised Code, on or before the first day of January of each year, or such other date as the administrator establishes, every employer mentioned in division (B)(1) of section 4123.01 of the Revised Code, except for a state agency or a state university or college, shall file with the bureau an estimate of the employer's payroll for the immediately following twelve-month period or other period as the administrator establishes;

(4) A requirement that upon an initial application for coverage, an employer mentioned in division (B)(1) of section 4123.01 of the Revised Code, except for a state agency or state university or college, shall file with the application an estimate of the employer's payroll for the unexpired period from the date of application to the period ending on the following thirty-first day of December or other date as established by the administrator pursuant to division (A)(3) of this section, and shall pay the amount the administrator determines by rule in order to establish coverage for the employer as described in division (B)(12) of section 4121.121 of the Revised Code;

(5) The assessment of a penalty if an employer fails to timely file the estimates of payroll required by the rules adopted pursuant to this section;

(6) A requirement that an employer complete periodic payroll reports of actual expenditures for previous coverage periods for reconciliation with estimated payroll reports;

(7) The assessment of a penalty for late payroll reconciliation reports and for late payment of any reconciliation premium;

(8) The establishment of a transition period during which time the bureau shall determine the adequacy of existing premium security deposits of employers, the establishment of provisions for additional premium payments during that transition, the provision of a credit of those deposits toward the first premium due from an employer under the rules adopted under divisions (A)(1) to (7) of this section, and the establishment of penalties for late payment or failure to comply with the rules.

(B) For purposes of division (A)(6) of this section, an employer shall make timely payment of any premium owed when actual payroll expenditures exceeded estimated payroll, and the employer shall receive premium credit when the estimated payroll exceeded the actual payroll.

(C) For purposes of division (A)(7) of this section, if the employer's actual payroll substantially exceeds the estimated payroll, the administrator may assess additional penalties specified in rules the administrator adopts on the reconciliation premium.

(D) As used in this section, "state university or college" has the same meaning as in section 4123.32 of the Revised Code.

History. Added by 130th General Assembly File No. 25, HB 59, §101.01, eff. 9/29/2013.

Note: This section is set out twice. See also § 4123.322 , as amended by 130th General Assembly File No. TBD, HB 493, §1, eff. 9/17/2014.