§ 28-53-9. Penalties, taxes, and assessments against noncomplying employers.
(a) Where it is determined that an employer has failed to maintain a policy of workers'
compensation insurance as required by § 28-36-1 et seq. and that while the employer was uninsured in violation of the statute, an
employee suffered a compensable injury, the uninsured protection fund shall commence
the payment of weekly payment to the employee as set forth herein, subject to fund
availability. On behalf of the fund, the director shall acquire a lien against the
goods and chattels of the uninsured employer to the extent of any payments made by
it to the injured employee. The lien(s) shall arise and attach as of the date on which
the fund makes payment to the injured employee without further action by the fund
or the court. The lien shall have priority over all subsequently perfected liens and
security interests.
(b) Prior to the lien being filed with the office of the secretary of state, the employer
shall be notified by certified mail, return receipt requested, that a lien will be
filed against all goods situated in the state if the outstanding tax is not paid within
seven (7) business days of receipt of the notice.
(c) The liens shall become perfected at the time when a notice of lien is filed pursuant
to the filing provisions of § 6A-9-501. The notice of lien shall include the following:
(1) The name of the debtor, as governed by § 6A-9-503;
(2) The name of the director of the department of labor and training as the party claiming
the lien; and
(3) A description of the property so encumbered as governed by § 6A-9-504.
(d) The director shall be entitled to effectively file the lien and to amend the lien
quarterly as additional payments are made or terminate it as necessary.
(e) No filing fee shall be charged for the filing of a lien authorized by this section.
(f) Where the employer is a corporation, the president, vice president, secretary, and
treasurer of the corporation shall be severally personally liable, jointly with a
corporation for any payments made to the injured employee by the fund, and the fund
shall acquire a lien against the goods and chattels of the president, vice president,
secretary, and treasurer to the extent of any payments so made.
(g) Where the employer is a limited-liability company, the managers and managing members
shall be severally personally liable, jointly with the limited-liability company for
any payments made to the injured employee by the fund and the fund shall acquire a
lien against the goods and chattels of the manager and managing member to the extent
of any payments so made.
(h) The liens and excise taxes levied against the noncomplying party pursuant to this
section shall be in addition to any and all other fines, penalties, and assessments,
to which the party would otherwise be liable in particular the penalties mandated
by § 28-36-15.