1. (a) Lien filing and/or lien activation fees will be automatically refunded when any one of the following occurs:

   1. (1) A lien filing or activation fee is paid properly but the lien or lien activation was not processed due to a system error. In this case, the filing or activation fee must be resubmitted in order for the lien or activation to be processed. However, the filing or activation date will be deemed to be the date on which the filing or activation fee was first properly paid.
   2. (2) A lien activation fee is paid and it is confirmed by the fee payment system that such fee was paid previously for the same lien, or the lien is not available for activation.
   3. (3) An improper amount is paid for a lien filing fee or activation fee. In this case, the filing or activation fee must be repaid in the proper amount in order for the lien filing or lien activation to be effective. The lien filing or activation date will be deemed to be the date that the filing or activation fee is properly paid.
   4. (4) A lien filing fee is properly paid, but due to a procedural defect in the filing of the lien, the filing is not effective and the filer was not able to re-file and cure the defect with 15 days pursuant to California Code of Regulations, title 8, section 10222(a). The lien filing date will be deemed to be the date that the lien is properly filed.

2. (b) If for any reason a refund is not issued within ten (10) days under (a)(1) through (3), or within 25 days under (a)(4), the Lien Filing Fee Refund Request form set forth in subdivision (c) must be completed and submitted no later than thirty (30) days from the date of payment of the contested fee. Any required documentary proof must be filed with the request, or if specified by the Division, as a supplement to the request. A refund will only be provided upon a showing of good cause. Good cause for a refund includes, but is not limited to the following reasons:

   1. (1) A fee was paid for a lien for which no filing or activation fee is required pursuant to sections 4903.05 or 4903.06 of the Labor Code.
   2. (2) An activation fee was erroneously paid for a lien other than the lien for which payment was intended and the lien for which the activation fee was erroneously paid was filed by a lien claimant other than the lien claimant that paid the contested fee.

   3. (3) An activation fee was erroneously paid for a lien other than the lien for which payment was intended and the lien for which the activation fee was erroneously paid was filed by the same lien claimant that paid the contested fee. In this case, a refund will be provided only if all of the following apply:

      1. (A) The lien claimant did not file a declaration of readiness and was not a lien claimant of record at any lien conference with respect to the erroneously paid lien from January 1, 2013 up to the date of the filing of the request;
      2. (B) The erroneously paid lien is not set for a lien conference on any date up to 30 days following the filing of the request; and
      3. (C) Proof of payment for the correct lien is provided with the request for refund.
   4. (4) An activation fee is paid that was paid previously for the same lien but the duplicate payment is not confirmed by the fee payment system and no refund was issued in accordance with (a) (2). Proof of the prior payment must be provided with the request.
   5. (5) Based on a finding of good cause in accordance with these rules, a workers' compensation administrative law judge or the appeals board has determined that the lien claimant is entitled to a refund of the fee. A final order from a judge or the appeals board authorizing the refund must be provided with the request for refund.
3. (c) Lien claimants are required to use the Lien Fee Refund Request form (Version 1.0) obtained from the DWC website at https://www.dir.ca.gov/dwc/Liens/LienFeeRefundREQPayer.pdf

Note: Authority cited: Sections 111, 133, 4903.05, 4903.06 and 5307.3, Labor Code. Reference: Sections 126, 4903, 4903.05, 4903.06 and 4903.07, Labor Code.

History

1. New article 4 (section 10208.1) and renumbering of former section 10245 to new section 10208.1, including amendment of Note, filed 12-10-2012 as a change without regulatory effect pursuant to section 100, title 1, California Code of Regulations by the Division of Workers' Compensation and as a file and print by the Workers' Compensation Appeals Board pursuant to Government Code section 11351 (Register 2012, No. 50).

2. Renumbering of former section 10208.1 to new section 10206.20 filed 12-31-2012 as an emergency; operative 1-1-2013 pursuant to Government Code section 11346.1(d) (Register 2013, No. 1). A Certificate of Compliance must be transmitted to OAL by 7-1-2013 or emergency language will be repealed by operation of law on the following day.

3. Renumbering of former section 10208.1 to new section 10206.20 refiled 6-26-2013 as an emergency; operative 7-1-2013 pursuant to Government Code section 11346.1(d) (Register 2013, No. 26). A Certificate of Compliance must be transmitted to OAL by 9-30-2013 or emergency language will be repealed by operation of law on the following day.

4. Renumbering of former section 10208.1 to new section 10206.20 refiled 9-30-2013 as an emergency; operative 10-1-2013 pursuant to Government Code section 11346.1(d) (Register 2013, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-30-2013 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 9-30-2013 order, including adoption of new section, transmitted to OAL 11-8-2013 and filed 12-16-2013; new section effective 12-16-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 51).