(a) All amounts collected as fines and penalties under the several
provisions of the Act shall be paid into the special fund (33 U.S.C.
44(c)(3)).
(b) Whenever an employee dies under circumstances creating a
liability on an employer to pay death benefits to the employee's
beneficiaries, and whenever there are no such beneficiaries entitled to
such payments, the employer shall pay $5,000 into the special fund (Act,
section 44(c)(1)). In such cases, the compensation order entered in the
case shall specifically find that there is such liability and that there
are no beneficiaries entitled to death benefits, and shall order payment
by the employer into the fund. Compensation orders shall be made and
filed in accordance with the regulations in subpart C of this part 702,
except that for this purpose the district director settling
the case under Sec. 702.315 shall formalize the memorandum of conference
in a compensation order, and shall file such order as provided for in
Sec. 702.349.
(c) The Director annually shall assess an amount against insurance
carriers and self-insured employers authorized under the Act and part
703 of this subchapter to replenish the fund. That total amount to be
charged all carriers and self-insurers to be assessed shall be based
upon an estimate of the probable expenses of the fund during the
calendar year. The assessment against each carrier and self-insurer
shall be based upon (1) the ratio of the amount each paid during the
prior calendar year for compensation in relation to the amount all such
carriers of self-insurers paid during that period for compensation, and
(2) the ratio of the amount of payments made by the special fund for all
cases being paid under section 8(f) of the Act, 33 U.S.C. 908(f), during
the preceding calendar year which are attributable to the carrier or
self-insurer in relation to the total of such payments during such year
attributable to all carriers and self-insurers. The resulting sum of the
percentages from paragraphs (c) (1) and (2) of this section will be
divided by two, and the resulting percentage multiplied by the probable
expenses of the fund. The Director may, in his or her discretion,
condition continuance or renewal of authorization under part 703 upon
prompt payment of the assessment. However, no action suspending or
revoking such authorization shall be taken without affording such
carrier or self-insurer a hearing before the Director or his/her
designee.
[38 FR 26861, Sept. 26, 1973, as amended at 50 FR 395, Jan. 3, 1985; 51
FR 4282, Feb. 3, 1986]
