[Code of Federal Regulations]
[Title 20, Volume 3]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR702.146]

[Page 869-870]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
  CHAPTER VI--EMPLOYMENT STANDARDS ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 702--ADMINISTRATION AND PROCEDURE--Table of Contents
 
                      Subpart A--General Provisions
 
Sec. 702.146  Source of the special fund.

    (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

[[Page 870]]

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]