Senate Bill 1406er

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  1

  2         An act relating to workers' compensation;

  3         amending s. 440.02, F.S.; defining the terms

  4         "corporate officer," "partner," and "sole

  5         proprietor," as used in ch. 440, F.S.; amending

  6         s. 440.05, F.S.; authorizing the Division of

  7         Workers' Compensation of the Department of

  8         Labor and Employment Security to approve and

  9         revoke certificates of exemption; specifying

10         requirements for notices of election to be

11         exempt; providing for renewal of exemption

12         certificates; requiring notice on election

13         forms that providing false information is a

14         felony; revising fees for exemptions and

15         specifying use of fees by the division;

16         amending s. 440.09, F.S.; conforming references

17         to judges of compensation claims and

18         administrative law judges; amending s. 440.10,

19         F.S.; relating to liability for compensation;

20         revising provisions relating to when a person

21         is conclusively presumed to be an independent

22         contractor; providing circumstances in which

23         carriers may not consider a person to be an

24         employee; amending s. 440.103, F.S.; revising

25         the documentation that must be filed by an

26         employer that obtains a building permit;

27         specifying requirements for certificates of

28         coverage; amending s. 440.104, F.S.; revising

29         the cause of action and remedies available to

30         losers of competitive bidding against persons

31         who violate certain provisions; increasing


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  1         recoverable damages; amending s. 440.105, F.S.;

  2         providing penalties; providing a time

  3         limitation for bringing an action under s.

  4         440.105(4), F.S.; amending s. 440.107, F.S.;

  5         providing legislative findings related to

  6         noncompliance with workers' compensation

  7         coverage requirements; authorizing the division

  8         to enter and inspect places of business for

  9         investigating compliance; requiring employers

10         to maintain records required by the division by

11         rule; authorizing the division to require sworn

12         reports from employers, to administer oaths,

13         and to issue subpoenas to enforce compliance;

14         providing penalties for refusal to obey a

15         subpoena; amending s. 440.185, F.S.; requiring

16         carriers to notify the division whether certain

17         policies are minimum premium policies; amending

18         s. 440.42, F.S.; authorizing workers'

19         compensation policies to require employers to

20         release certain employment and wage

21         information; amending s. 440.45, F.S.; revising

22         term of office, qualifications, and method of

23         nomination for the Chief Judge of the Office of

24         the Judges of Compensation Claims; providing

25         for expiration of term of office for members of

26         the statewide nominating commission for judges

27         of compensation claims; providing for new

28         appointments to the nominating commission and

29         staggered terms; revising the procedures for

30         nominating commission regarding performance of

31         sitting judges and regarding nominations of


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  1         applicants; providing for expiration of the

  2         term of office and reappointment of the Chief

  3         Judge of Compensation Claims; amending s.

  4         626.989, F.S.; requiring the Division of

  5         Insurance Fraud of the Department of Insurance

  6         and the Division of Workers' Compensation of

  7         the Department of Labor and Employment Security

  8         to periodically submit a joint performance

  9         report to the Legislature; amending s. 627.413,

10         F.S.; specifying notice requirements for

11         minimum premium policies; requiring the

12         division to notify certain persons of certain

13         requirements of this act; providing an

14         appropriation; amending s. 775.15, F.S.;

15         providing a statute of limitations for certain

16         insurance fraud violations; providing an

17         effective date.

18

19  Be It Enacted by the Legislature of the State of Florida:

20

21         Section 1.  Section 440.02, Florida Statutes, is

22  amended to read:

23         440.02  Definitions.--When used in this chapter, unless

24  the context clearly requires otherwise, the following terms

25  shall have the following meanings:

26         (1)  "Accident" means only an unexpected or unusual

27  event or result that happens suddenly. A mental or nervous

28  injury due to stress, fright, or excitement only, or

29  disability or death due to the accidental acceleration or

30  aggravation of a venereal disease or of a disease due to the

31  habitual use of alcohol or controlled substances or narcotic


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  1  drugs, or a disease that manifests itself in the fear of or

  2  dislike for an individual because of the individual's race,

  3  color, religion, sex, national origin, age, or handicap is not

  4  an injury by accident arising out of the employment. If a

  5  preexisting disease or anomaly is accelerated or aggravated by

  6  an accident arising out of and in the course of employment,

  7  only acceleration of death or acceleration or aggravation of

  8  the preexisting condition reasonably attributable to the

  9  accident is compensable, with respect to death or permanent

10  impairment.

11         (2)  "Adoption" or "adopted" means legal adoption prior

12  to the time of the injury.

13         (3)  "Carrier" means any person or fund authorized

14  under s. 440.38 to insure under this chapter and includes a

15  self-insurer, and a commercial self-insurance fund authorized

16  under s. 624.462.

17         (4)  "Casual" as used in this section shall be taken to

18  refer only to employments when the work contemplated is to be

19  completed in not exceeding 10 working days, without regard to

20  the number of persons employed, and when the total labor cost

21  of such work is less than $100.

22         (5)  "Child" includes a posthumous child, a child

23  legally adopted prior to the injury of the employee, and a

24  stepchild or acknowledged child born out of wedlock dependent

25  upon the deceased, but does not include married children

26  unless wholly dependent on the employee.  "Grandchild" means a

27  child as above defined of a child as above defined.  "Brother"

28  and "sister" include stepbrothers and stepsisters, half

29  brothers and half sisters, and brothers and sisters by

30  adoption, but does not include married brothers or married

31  sisters unless wholly dependent on the employee. "Child,"


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  1  "grandchild," "brother," and "sister" include only persons who

  2  at the time of the death of the deceased employees are under

  3  18 years of age, or under 22 years of age if a full-time

  4  student in an accredited educational institution.

  5         (6)  "Compensation" means the money allowance payable

  6  to an employee or to his or her dependents as provided for in

  7  this chapter.

  8         (7)  "Construction industry" means for-profit

  9  activities involving the carrying out of any building,

10  clearing, filling, excavation, or substantial improvement in

11  the size or use of any structure or the appearance of any

12  land.  When appropriate to the context, "construction" refers

13  to the act of construction or the result of construction.

14  However, "construction" shall not mean a landowner's act of

15  construction or the result of a construction upon his or her

16  own premises, provided such premises are not intended to be

17  sold or resold.

18         (8)  "Corporate officer" or "officer of a corporation"

19  means any person who fills an office provided for in the

20  corporate charter or articles of incorporation filed with the

21  Division of Corporations of the Department of State or as

22  permitted or required by chapter 607.

23         (9)(8)  "Date of maximum medical improvement" means the

24  date after which further recovery from, or lasting improvement

25  to, an injury or disease can no longer reasonably be

26  anticipated, based upon reasonable medical probability.

27         (10)(9)  "Death" as a basis for a right to compensation

28  means only death resulting from an injury.

29         (11)(10)  "Department" means the Department of Labor

30  and Employment Security.

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  1         (12)(11)  "Disability" means incapacity because of the

  2  injury to earn in the same or any other employment the wages

  3  which the employee was receiving at the time of the injury.

  4         (13)(12)  "Division" means the Division of Workers'

  5  Compensation of the Department of Labor and Employment

  6  Security.

  7         (14)(13)(a)  "Employee" means any person engaged in any

  8  employment under any appointment or contract of hire or

  9  apprenticeship, express or implied, oral or written, whether

10  lawfully or unlawfully employed, and includes, but is not

11  limited to, aliens and minors.

12         (b)  "Employee" includes any person who is an officer

13  of a corporation and who performs services for remuneration

14  for such corporation within this state, whether or not such

15  services are continuous.

16         1.  Any officer of a corporation may elect to be exempt

17  from this chapter by filing written notice of the election

18  with the division as provided in s. 440.05.

19         2.  As to officers of a corporation who are actively

20  engaged in the construction industry, no more than three

21  officers may elect to be exempt from this chapter by filing

22  written notice of the election with the division as provided

23  in s. 440.05.

24         3.  An officer of a corporation who elects to be exempt

25  from this chapter by filing a written notice of the election

26  with the division as provided in s. 440.05 is not an employee.

27

28  Services are presumed to have been rendered to the corporation

29  if the officer is compensated by other than dividends upon

30  shares of stock of the corporation which the officer owns.

31


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  1         (c)  "Employee" includes a sole proprietor or a partner

  2  who devotes full time to the proprietorship or partnership

  3  and, except as provided in this paragraph, elects to be

  4  included in the definition of employee by filing notice

  5  thereof as provided in s. 440.05. Partners or sole proprietors

  6  actively engaged in the construction industry are considered

  7  employees unless they elect to be excluded from the definition

  8  of employee by filing written notice of the election with the

  9  division as provided in s. 440.05. However, no more than three

10  partners in a partnership that is actively engaged in the

11  construction industry may elect to be excluded. A sole

12  proprietor or partner who is actively engaged in the

13  construction industry and who elects to be exempt from this

14  chapter by filing a written notice of the election with the

15  division as provided in s. 440.05 is not an employee. For

16  purposes of this chapter, an independent contractor is an

17  employee unless he or she meets all of the conditions set

18  forth in subparagraph (d)1.

19         (d)  "Employee" does not include:

20         1.  An independent contractor, if:

21         a.  The independent contractor maintains a separate

22  business with his or her own work facility, truck, equipment,

23  materials, or similar accommodations;

24         b.  The independent contractor holds or has applied for

25  a federal employer identification number, unless the

26  independent contractor is a sole proprietor who is not

27  required to obtain a federal employer identification number

28  under state or federal requirements;

29         c.  The independent contractor performs or agrees to

30  perform specific services or work for specific amounts of

31


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  1  money and controls the means of performing the services or

  2  work;

  3         d.  The independent contractor incurs the principal

  4  expenses related to the service or work that he or she

  5  performs or agrees to perform;

  6         e.  The independent contractor is responsible for the

  7  satisfactory completion of work or services that he or she

  8  performs or agrees to perform and is or could be held liable

  9  for a failure to complete the work or services;

10         f.  The independent contractor receives compensation

11  for work or services performed for a commission or on a

12  per-job or competitive-bid basis and not on any other basis;

13         g.  The independent contractor may realize a profit or

14  suffer a loss in connection with performing work or services;

15         h.  The independent contractor has continuing or

16  recurring business liabilities or obligations; and

17         i.  The success or failure of the independent

18  contractor's business depends on the relationship of business

19  receipts to expenditures.

20

21  However, the determination as to whether an individual

22  included in the Standard Industrial Classification Manual of

23  1987, Industry Numbers 0711, 0721, 0722, 0751, 0761, 0762,

24  0781, 0782, 0783, 0811, 0831, 0851, 2411, 2421, 2435, 2436,

25  2448, or 2449, or a newspaper delivery person, is an

26  independent contractor is governed not by the criteria in this

27  paragraph but by common-law principles, giving due

28  consideration to the business activity of the individual.

29         2.  A real estate salesperson or agent, if that person

30  agrees, in writing, to perform for remuneration solely by way

31  of commission.


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  1         3.  Bands, orchestras, and musical and theatrical

  2  performers, including disk jockeys, performing in licensed

  3  premises as defined in chapter 562, if a written contract

  4  evidencing an independent contractor relationship is entered

  5  into before the commencement of such entertainment.

  6         4.  An owner-operator of a motor vehicle who transports

  7  property under a written contract with a motor carrier which

  8  evidences a relationship by which the owner-operator assumes

  9  the responsibility of an employer for the performance of the

10  contract, if the owner-operator is required to furnish the

11  necessary motor vehicle equipment and all costs incidental to

12  the performance of the contract, including, but not limited

13  to, fuel, taxes, licenses, repairs, and hired help; and the

14  owner-operator is paid a commission for transportation service

15  and is not paid by the hour or on some other time-measured

16  basis.

17         5.  A person whose employment is both casual and not in

18  the course of the trade, business, profession, or occupation

19  of the employer.

20         6.  A volunteer, except a volunteer worker for the

21  state or a county, municipality, or other governmental entity.

22  A person who does not receive monetary remuneration for

23  services is presumed to be a volunteer unless there is

24  substantial evidence that a valuable consideration was

25  intended by both employer and employee. For purposes of this

26  chapter, the term "volunteer" includes, but is not limited to:

27         a.  Persons who serve in private nonprofit agencies and

28  who receive no compensation other than expenses in an amount

29  less than or equivalent to the standard mileage and per diem

30  expenses provided to salaried employees in the same agency or,

31  if such agency does not have salaried employees who receive


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  1  mileage and per diem, then such volunteers who receive no

  2  compensation other than expenses in an amount less than or

  3  equivalent to the customary mileage and per diem paid to

  4  salaried workers in the community as determined by the

  5  division; and

  6         b.  Volunteers participating in federal programs

  7  established under Pub. L. No. 93-113.

  8         7.  Any officer of a corporation who elects to be

  9  exempt from this chapter.

10         8.  A sole proprietor or officer of a corporation who

11  actively engages in the construction industry, and a partner

12  in a partnership that is actively engaged in the construction

13  industry, who elects to be exempt from the provisions of this

14  chapter. Such sole proprietor, officer, or partner is not an

15  employee for any reason until the notice of revocation of

16  election filed pursuant to s. 440.05 is effective.

17         9.  An exercise rider who does not work for a single

18  horse farm or breeder, and who is compensated for riding on a

19  case-by-case basis, provided a written contract is entered

20  into prior to the commencement of such activity which

21  evidences that an employee/employer relationship does not

22  exist.

23         10.  A taxicab, limousine, or other passenger

24  vehicle-for-hire driver who operates said vehicles pursuant to

25  a written agreement with a company which provides any

26  dispatch, marketing, insurance, communications, or other

27  services under which the driver and any fees or charges paid

28  by the driver to the company for such services are not

29  conditioned upon, or expressed as a proportion of, fare

30  revenues.

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  1         (15)(14)  "Employer" means the state and all political

  2  subdivisions thereof, all public and quasi-public corporations

  3  therein, every person carrying on any employment, and the

  4  legal representative of a deceased person or the receiver or

  5  trustees of any person. If the employer is a corporation,

  6  parties in actual control of the corporation, including, but

  7  not limited to, the president, officers who exercise broad

  8  corporate powers, directors, and all shareholders who directly

  9  or indirectly own a controlling interest in the corporation,

10  are considered the employer for the purposes of ss. 440.105

11  and 440.106.

12         (16)(15)(a)  "Employment," subject to the other

13  provisions of this chapter, means any service performed by an

14  employee for the person employing him or her.

15         (b)  "Employment" includes:

16         1.  Employment by the state and all political

17  subdivisions thereof and all public and quasi-public

18  corporations therein, including officers elected at the polls.

19         2.  All private employments in which four or more

20  employees are employed by the same employer or, with respect

21  to the construction industry, all private employment in which

22  one or more employees are employed by the same employer.

23         3.  Volunteer firefighters responding to or assisting

24  with fire or medical emergencies whether or not the

25  firefighters are on duty.

26         (c)  "Employment" does not include service performed by

27  or as:

28         1.  Domestic servants in private homes.

29         2.  Agricultural labor performed on a farm in the

30  employ of a bona fide farmer, or association of farmers, who

31  employs 5 or fewer regular employees and who employs fewer


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  1  than 12 other employees at one time for seasonal agricultural

  2  labor that is completed in less than 30 days, provided such

  3  seasonal employment does not exceed 45 days in the same

  4  calendar year. The term "farm" includes stock, dairy, poultry,

  5  fruit, fur-bearing animals, fish, and truck farms, ranches,

  6  nurseries, and orchards. The term "agricultural labor"

  7  includes field foremen, timekeepers, checkers, and other farm

  8  labor supervisory personnel.

  9         3.  Professional athletes, such as professional boxers,

10  wrestlers, baseball, football, basketball, hockey, polo,

11  tennis, jai alai, and similar players, and motorsports teams

12  competing in a motor racing event as defined in s. 549.08.

13         4.  Labor under a sentence of a court to perform

14  community services as provided in s. 316.193.

15         (17)(16)  "Misconduct" includes, but is not limited to,

16  the following, which shall not be construed in pari materia

17  with each other:

18         (a)  Conduct evincing such willful or wanton disregard

19  of an employer's interests as is found in deliberate violation

20  or disregard of standards of behavior which the employer has

21  the right to expect of the employee; or

22         (b)  Carelessness or negligence of such a degree or

23  recurrence as to manifest culpability, wrongful intent, or

24  evil design, or to show an intentional and substantial

25  disregard of an employer's interests or of the employee's

26  duties and obligations to the employer.

27         (18)(17)  "Injury" means personal injury or death by

28  accident arising out of and in the course of employment, and

29  such diseases or infection as naturally or unavoidably result

30  from such injury.  Damage to dentures, eyeglasses, prosthetic

31  devices, and artificial limbs may be included in this


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  1  definition only when the damage is shown to be part of, or in

  2  conjunction with, an accident. This damage must specifically

  3  occur as the result of an accident in the normal course of

  4  employment.

  5         (19)(18)  "Parent" includes stepparents and parents by

  6  adoption, parents-in-law, and any persons who for more than 3

  7  years prior to the death of the deceased employee stood in the

  8  place of a parent to him or her and were dependent on the

  9  injured employee.

10         (20)  "Partner" means any person who is a member of a

11  partnership that is formed by two or more persons to carry on

12  as coowners of a business with the understanding that there

13  will be a proportional sharing of the profits and losses

14  between them. For the purposes of this chapter, a partner is a

15  person who participates fully in the management of the

16  partnership and who is personally liable for its debts.

17         (21)(19)  "Permanent impairment" means any anatomic or

18  functional abnormality or loss determined as a percentage of

19  the body as a whole, existing after the date of maximum

20  medical improvement, which results from the injury.

21         (22)(20)  "Person" means individual, partnership,

22  association, or corporation, including any public service

23  corporation.

24         (23)(21)  "Self-insurer" means:

25         (a)  Any employer who has secured payment of

26  compensation pursuant to s. 440.38(1)(b) or (6) as an

27  individual self-insurer;

28         (b)  Any employer who has secured payment of

29  compensation through a group self-insurance fund under s.

30  624.4621;

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  1         (c)  Any group self-insurance fund established under s.

  2  624.4621;

  3         (d)  A public utility as defined in s. 364.02 or s.

  4  366.02 that has assumed by contract the liabilities of

  5  contractors or subcontractors pursuant to s. 440.571; or

  6         (e)  Any local government self-insurance fund

  7  established under s. 624.4622.

  8         (24)  "Sole proprietor" means a natural person who owns

  9  a form of business in which that person owns all the assets of

10  the business and is solely liable for all the debts of the

11  business.

12         (25)(22)  "Spouse" includes only a spouse substantially

13  dependent for financial support upon the decedent and living

14  with the decedent at the time of the decedent's injury and

15  death, or substantially dependent upon the decedent for

16  financial support and living apart at that time for

17  justifiable cause.

18         (26)(23)  "Time of injury" means the time of the

19  occurrence of the accident resulting in the injury.

20         (27)(24)  "Wages" means the money rate at which the

21  service rendered is recompensed under the contract of hiring

22  in force at the time of the injury and includes only the wages

23  earned and reported for federal income tax purposes on the job

24  where the employee is injured and any other concurrent

25  employment where he or she is also subject to workers'

26  compensation coverage and benefits, together with the

27  reasonable value of housing furnished to the employee by the

28  employer which is the permanent year-round residence of the

29  employee, and gratuities to the extent reported to the

30  employer in writing as taxable income received in the course

31  of employment from others than the employer and employer


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  1  contributions for health insurance for the employee or the

  2  employee's dependents. However, housing furnished to migrant

  3  workers shall be included in wages unless provided after the

  4  time of injury. In employment in which an employee receives

  5  consideration for housing, the reasonable value of such

  6  housing compensation shall be the actual cost to the employer

  7  or based upon the Fair Market Rent Survey promulgated pursuant

  8  to s. 8 of the Housing and Urban Development Act of 1974,

  9  whichever is less. However, if employer contributions for

10  housing or health insurance are continued after the time of

11  the injury, the contributions are not "wages" for the purpose

12  of calculating an employee's average weekly wage.

13         (28)(25)  "Weekly compensation rate" means and refers

14  to the amount of compensation payable for a period of 7

15  consecutive days, including any Saturdays, Sundays, holidays,

16  and other nonworking days which fall within such period of 7

17  consecutive days.  When Saturdays, Sundays, holidays, or other

18  nonworking days immediately follow the first 7 days of

19  disability or occur at the end of a period of disability as

20  the last day or days of such period, such nonworking days

21  constitute a part of the period of disability with respect to

22  which compensation is payable.

23         (29)(26)  "Construction design professional" means an

24  architect, professional engineer, landscape architect, or

25  surveyor and mapper, or any corporation, professional or

26  general, that has a certificate to practice in the

27  construction design field from the Department of Business and

28  Professional Regulation.

29         (30)(27)  "Individual self-insurer" means any employer

30  who has secured payment of compensation pursuant to s.

31  440.38(1)(b) as an individual self-insurer.


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  1         (31)(28)  "Domestic individual self-insurer" means an

  2  individual self-insurer:

  3         (a)  Which is a corporation formed under the laws of

  4  this state;

  5         (b)  Who is an individual who is a resident of this

  6  state or whose primary place of business is located in this

  7  state; or

  8         (c)  Which is a partnership whose principals are

  9  residents of this state or whose primary place of business is

10  located in this state.

11         (32)(29)  "Foreign individual self-insurer" means an

12  individual self-insurer:

13         (a)  Which is a corporation formed under the laws of

14  any state, district, territory, or commonwealth of the United

15  States other than this state;

16         (b)  Who is an individual who is not a resident of this

17  state and whose primary place of business is not located in

18  this state; or

19         (c)  Which is a partnership whose principals are not

20  residents of this state and whose primary place of business is

21  not located in this state.

22         (33)(30)  "Insolvent member" means an individual

23  self-insurer which is a member of the Florida Self-Insurers

24  Guaranty Association, Incorporated, or which was a member and

25  has withdrawn pursuant to s. 440.385(1)(b), and which has been

26  found insolvent, as defined in paragraph (34)(a) (31)(a),

27  paragraph (34)(b) (31)(b), or paragraph (34)(c) (31)(c), by a

28  court of competent jurisdiction in this or any other state, or

29  meets the definition of paragraph (34)(d) (31)(d).

30         (34)(31)  "Insolvency" or "insolvent" means:

31         (a)  With respect to an individual self-insurer:


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  1         1.  That all assets of the individual self-insurer, if

  2  made immediately available, would not be sufficient to meet

  3  all the individual self-insurer's liabilities;

  4         2.  That the individual self-insurer is unable to pay

  5  its debts as they become due in the usual course of business;

  6         3.  That the individual self-insurer has substantially

  7  ceased or suspended the payment of compensation to its

  8  employees as required in this chapter; or

  9         4.  That the individual self-insurer has sought

10  protection under the United States Bankruptcy Code or has been

11  brought under the jurisdiction of a court of bankruptcy as a

12  debtor pursuant to the United States Bankruptcy Code.

13         (b)  With respect to an employee claiming insolvency

14  pursuant to s. 440.25(5), a person is insolvent who:

15         1.  Has ceased to pay his or her debts in the ordinary

16  course of business and cannot pay his or her debts as they

17  become due; or

18         2.  Has been adjudicated insolvent pursuant to the

19  federal bankruptcy law.

20         (35)(32)  "Arising out of" pertains to occupational

21  causation. An accidental injury or death arises out of

22  employment if work performed in the course and scope of

23  employment is the major contributing cause of the injury or

24  death.

25         (36)(33)  "Soft-tissue injury" means an injury that

26  produces damage to the soft tissues, rather than to the

27  skeletal tissues or soft organs.

28         (37)(34)  "Catastrophic injury" means a permanent

29  impairment constituted by:

30         (a)  Spinal cord injury involving severe paralysis of

31  an arm, a leg, or the trunk;


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  1         (b)  Amputation of an arm, a hand, a foot, or a leg

  2  involving the effective loss of use of that appendage;

  3         (c)  Severe brain or closed-head injury as evidenced

  4  by:

  5         1.  Severe sensory or motor disturbances;

  6         2.  Severe communication disturbances;

  7         3.  Severe complex integrated disturbances of cerebral

  8  function;

  9         4.  Severe episodic neurological disorders; or

10         5.  Other severe brain and closed-head injury

11  conditions at least as severe in nature as any condition

12  provided in subparagraphs 1.-4.;

13         (d)  Second-degree or third-degree burns of 25 percent

14  or more of the total body surface or third-degree burns of 5

15  percent or more to the face and hands;

16         (e)  Total or industrial blindness; or

17         (f)  Any other injury that would otherwise qualify

18  under this chapter of a nature and severity that would qualify

19  an employee to receive disability income benefits under Title

20  II or supplemental security income benefits under Title XVI of

21  the federal Social Security Act as the Social Security Act

22  existed on July 1, 1992, without regard to any time

23  limitations provided under that act.

24         (38)(35)  "Insurer" means a group self-insurers' fund

25  authorized by s. 624.4621, an individual self-insurer

26  authorized by s. 440.38, a commercial self-insurance fund

27  authorized by s. 624.462, an assessable mutual insurer

28  authorized by s. 628.6011, and an insurer licensed to write

29  workers' compensation and employer's liability insurance in

30  this state. The term "carrier," as used in this chapter, means

31  an insurer as defined in this subsection.


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  1         (39)(36)  "Statement," for the purposes of ss. 440.105

  2  and 440.106, includes, but is not limited to, any notice,

  3  representation, statement, proof of injury, bill for services,

  4  diagnosis, prescription, hospital or doctor record, X ray,

  5  test result, or other evidence of loss, injury, or expense.

  6         Section 2.  Section 440.05, Florida Statutes, is

  7  amended to read:

  8         440.05  Election of exemption; revocation of election;

  9  notice; certification.--

10         (1)  Each corporate officer who elects not to accept

11  the provisions of this chapter or who, after electing such

12  exemption, revokes that exemption shall mail to the division

13  in Tallahassee notice to such effect in accordance with a form

14  to be prescribed by the division.

15         (2)  Each sole proprietor or partner who elects to be

16  included in the definition of "employee" or who, after such

17  election, revokes that election must mail to the division in

18  Tallahassee notice to such effect, in accordance with a form

19  to be prescribed by the division.

20         (3)  Each sole proprietor, partner, or officer of a

21  corporation who is actively engaged in the construction

22  industry and who elects an exemption from this chapter or who,

23  after electing such exemption, revokes that exemption, must

24  mail a written notice to such effect to the division on a form

25  prescribed by the division. The notice of election to be

26  exempt from the provisions of this chapter must be notarized

27  and under oath. The notice of election to be exempt which is

28  submitted to the division by the sole proprietor, partner, or

29  officer of a corporation must list the name, federal tax

30  identification number, social security number, and all

31  certified or registered licenses issued pursuant to chapter


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  1  489 held by the person seeking the exemption, a copy of

  2  relevant documentation as to employment status filed with the

  3  IRS as specified by the division, a copy of the relevant

  4  occupational license in the primary jurisdiction of the

  5  business, and, for corporate officers and partners, the

  6  registration number of the corporation or partnership filed

  7  with the Division of Corporations of the Department of State.

  8  The notice of election to be exempt form must identify each

  9  sole proprietorship, partnership, or corporation that employs

10  the person electing the exemption and must list the social

11  security number or federal tax identification number of each

12  such employer and the additional documentation required by

13  this section. In addition, the notice of election to be exempt

14  form must provide that the sole proprietor, partner, or

15  officer electing an exemption is not entitled to benefits

16  under this chapter, must provide that the election does not

17  exceed exemption limits for officers and partnerships provided

18  in s. 440.02, and must certify that any employees of the sole

19  proprietor, partner, or officer electing an exemption are

20  covered by workers' compensation insurance. Upon receipt of

21  the notice of the election to be exempt, receipt of all

22  application fees, and a determination by the division that the

23  notice meets the requirements of this subsection, the division

24  shall issue a certification of the election to the sole

25  proprietor, partner, or officer, unless the division

26  determines that the information contained in the notice is

27  invalid. The division shall revoke a certificate of election

28  to be exempt from coverage upon a determination by the

29  division that the person does not meet the requirements for

30  exemption or that the information contained in the notice of

31  election to be exempt is invalid. The certificate of election


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  1  must list the names of the sole proprietorship, partnership,

  2  or corporation listed in the request for exemption. A new

  3  certificate of election must be obtained each time the person

  4  is employed by a new sole proprietorship, partnership, or

  5  corporation that is not listed on the certificate of election.

  6  A copy of the certificate of election must be sent to each

  7  workers' compensation carrier identified in the request for

  8  exemption. The certification of the election is valid until

  9  the sole proprietor, partner, or officer revokes her or his

10  election. Upon filing a notice of revocation of election, a

11  sole proprietor, partner, or officer who is a subcontractor

12  must notify her or his contractor.  Upon revocation of a

13  certificate of election of exemption by the division, the

14  division shall notify the workers' compensation carriers

15  identified in the request for exemption.

16         (4)  The notice of election to be exempt from the

17  provisions of this chapter must contain a notice that clearly

18  states in substance the following:  "Any person who, knowingly

19  and with intent to injure, defraud, or deceive the division or

20  any employer or employee, insurance company, or purposes

21  program, files a notice of election to be exempt containing

22  any false or misleading information is guilty of a felony of

23  the third degree." Each person filing a notice of election to

24  be exempt shall personally sign the notice and attest that he

25  or she has reviewed, understands, and acknowledges the

26  foregoing notice.

27         (5)(4)  A notice given under subsection (1), subsection

28  (2), or subsection (3) shall become effective when issued by

29  the division or 30 days after an application for an exemption

30  is received by the division, whichever occurs first is not

31  effective until 30 days after the date it is mailed to the


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  1  division in Tallahassee. However, if an accident or

  2  occupational disease occurs less than 30 days after the

  3  effective date of the insurance policy under which the payment

  4  of compensation is secured or the date the employer qualified

  5  as a self-insurer, such notice is effective as of 12:01 a.m.

  6  of the day following the date it is mailed to the division in

  7  Tallahassee.

  8         (6)  A construction industry certificate of election to

  9  be exempt which is issued in accordance with this section

10  shall be valid for 2 years after the effective date stated

11  thereon. Both the effective date and the expiration date must

12  be listed on the face of the certificate by the division. The

13  construction industry certificate must expire at midnight, 2

14  years from its issue date, as noted on the face of the

15  exemption certificate. Any person who has received from the

16  division a construction industry certificate of election to be

17  exempt which is in effect on December 31, 1998, shall file a

18  new notice of election to be exempt by the last day in his or

19  her birth month following December 1, 1998. A construction

20  industry certificate of election to be exempt may be revoked

21  before its expiration by the sole proprietor, partner, or

22  officer for whom it was issued or by the division for the

23  reasons stated in this section.  At least 60 days prior to the

24  expiration date of a construction industry certificate of

25  exemption issued after December 1, 1998, the division shall

26  send notice of the expiration date and an application for

27  renewal to the certificateholder at the address on the

28  certificate.

29         (7)(5)  Any contractor responsible for compensation

30  under s. 440.10 may register in writing with the workers'

31  compensation carrier for any subcontractor and shall


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  1  thereafter be entitled to receive written notice from the

  2  carrier of any cancellation or nonrenewal of the policy.

  3         (8)(a)(6)  The division may assess a fee, not to exceed

  4  $50, with each request for a nonconstruction election or

  5  renewal of election under this section.

  6         (b)  The division must assess a fee of $50, with each

  7  request for a construction industry certificate of election to

  8  be exempt or renewal of election to be exempt under this

  9  section.

10         (c)  The funds collected by the division shall be used

11  to administer this section, and to audit the businesses that

12  pay the fee for compliance with any requirements of this

13  chapter, and to enforce compliance with the provisions of this

14  chapter.

15         Section 3.  Subsection (4) of section 440.09, Florida

16  Statutes, is amended to read:

17         440.09  Coverage.--

18         (4)  An employee shall not be entitled to compensation

19  or benefits under this chapter if any judge of compensation

20  claims, administrative law judge hearing officer, court, or

21  jury convened in this state determines that the employee has

22  knowingly or intentionally engaged in any of the acts

23  described in s. 440.105 for the purpose of securing workers'

24  compensation benefits.

25         Section 4.  Paragraph (g) of subsection (1) of section

26  440.10, Florida Statutes, is amended to read:

27         440.10  Liability for compensation.--

28         (1)

29         (g)  For purposes of this section, a person is

30  conclusively presumed to be an independent contractor if:

31


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  1         1.  The independent contractor provides the general

  2  contractor with an affidavit stating that he or she meets all

  3  the requirements of s. 440.02(14)(13)(d); and

  4         2.  The independent contractor provides the general

  5  contractor with a valid certificate of workers' compensation

  6  insurance or a valid certificate of exemption issued by the

  7  division.

  8

  9  A sole proprietor, independent contractor, partner, or officer

10  of a corporation who elects exemption from this chapter by

11  filing a certificate of election under s. 440.05 may not

12  recover benefits or compensation under this chapter.  An

13  independent contractor who provides the general contractor

14  with both an affidavit stating that he or she meets the

15  requirements of s. 440.02(14)(d) and a certificate of

16  exemption is not an employee under s. 440.02(14)(c) and may

17  not recover benefits under this chapter.  For purposes of

18  determining the appropriate premium for workers' compensation

19  coverage, carriers may not consider any person who meets the

20  requirements of this paragraph to be an employee.

21         Section 5.  Section 440.103, Florida Statutes, is

22  amended to read:

23         440.103  Building permits; identification of minimum

24  premium policy.--Except as otherwise provided in this chapter,

25  every employer shall, as a condition to receiving a building

26  permit, show proof that it has secured compensation for its

27  employees under this chapter as provided in ss. 440.10 and

28  440.38. Such proof of compensation must be evidenced by a

29  certificate of coverage issued by the carrier, a valid

30  exemption certificate approved by the division, or a copy of

31  the employer's authority to self-insure and shall be presented


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  1  each time the employer applies for a building permit. As

  2  provided in s. 627.413(5), each certificate of coverage must

  3  show, on its face, whether or not coverage is secured under

  4  the minimum premium provisions of rules adopted by rating

  5  organizations licensed by the Department of Insurance the

  6  National Council of Compensation Insurers rules. The words

  7  "minimum premium policy" or equivalent similar language shall

  8  may be typed, printed, stamped, or legibly handwritten.

  9         Section 6.  Subsections (1), (2), and (3) of section

10  440.104, Florida Statutes, are amended to read:

11         440.104  Competitive bidder; civil actions.--

12         (1)  Any person engaged in the construction industry,

13  as provided in s. 440.02(7), who loses a competitive bid for a

14  contract shall have a cause of may bring an action for damages

15  against the another person who is awarded the contract for

16  which the bid was made, if the person making the losing bid

17  establishes that the winning bidder knew or should have known

18  that he or she was in violation knowingly violated the

19  provisions of s. 440.10, s. 440.105, or s. 440.38 while

20  performing the work under the contract.

21         (2)  To recover in an action brought under this

22  section, a party must establish a violation of s. 440.10, s.

23  440.105, or s. 440.38 by a preponderance of the evidence.

24         (3)  Upon establishing that the winning bidder knew or

25  should have known of the violation occurred, the person shall

26  recover as liquidated damages 30 10 percent of the total

27  amount bid on the contract by the person bringing the action,

28  or $15,000 $5,000, whichever is greater.

29         Section 7.  Subsections (4), (5), (6), and (7) of

30  section 440.105, Florida Statutes, are amended, and subsection

31  (9) is added to said said, to read:


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  1         440.105  Prohibited activities; penalties;

  2  limitations.--

  3         (4)  Whoever violates any provision of this subsection

  4  commits insurance fraud a felony of the third degree,

  5  punishable as provided in paragraph (f) s. 775.082, s.

  6  775.083, or s. 775.084.

  7         (a)  It shall be unlawful for any employer to

  8  knowingly:

  9         1.  Present or cause to be presented any false,

10  fraudulent, or misleading oral or written statement to any

11  person as evidence of compliance with s. 440.38.

12         2.  Make a deduction from the pay of any employee

13  entitled to the benefits of this chapter for the purpose of

14  requiring the employee to pay any portion of premium paid by

15  the employer to a carrier or to contribute to a benefit fund

16  or department maintained by such employer for the purpose of

17  providing compensation or medical services and supplies as

18  required by this chapter.

19         3.  Fail to secure payment of compensation if required

20  to do so by this chapter.

21         (b)  It shall be unlawful for any person:

22         1.  To knowingly make, or cause to be made, any false,

23  fraudulent, or misleading oral or written statement for the

24  purpose of obtaining or denying any benefit or payment under

25  this chapter.

26         2.  To present or cause to be presented any written or

27  oral statement as part of, or in support of, a claim for

28  payment or of other benefit pursuant to any provision of this

29  chapter, knowing that such statement contains any false,

30  incomplete, or misleading information concerning any fact or

31  thing material to such claim.


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  1         3.  To prepare or cause to be prepared any written or

  2  oral statement that is intended to be presented to any

  3  employer, insurance company, or self-insured program in

  4  connection with, or in support of, any claim for payment or

  5  other benefit pursuant to any provision of this chapter,

  6  knowing that such statement contains any false, incomplete, or

  7  misleading information concerning any fact or thing material

  8  to such claim.

  9         4.  To knowingly assist, conspire with, or urge any

10  person to engage in activity prohibited by this section.

11         5.  To knowingly make any false, fraudulent, or

12  misleading oral or written statement, or to knowingly omit or

13  conceal material information, required by s. 440.185 or s.

14  440.381, for the purpose of obtaining workers' compensation

15  coverage or for the purpose of avoiding, delaying, or

16  diminishing the amount of payment of any workers' compensation

17  premiums.

18         6.  To knowingly misrepresent or conceal payroll,

19  classification of workers, or information regarding an

20  employer's loss history which would be material to the

21  computation and application of an experience rating

22  modification factor for the purpose of avoiding or diminishing

23  the amount of payment of any workers' compensation premiums.

24         7.  To knowingly present or cause to be presented any

25  false, fraudulent, or misleading oral or written statement to

26  any person as evidence of compliance with s. 440.38, as

27  evidence of eligibility for a certificate of exemption under

28  s. 440.05.

29         (c)  It shall be unlawful for any physician licensed

30  under chapter 458, osteopathic physician licensed under

31  chapter 459, chiropractic physician licensed under chapter


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  1  460, podiatric physician licensed under chapter 461,

  2  optometric physician licensed under chapter 463, or any other

  3  practitioner licensed under the laws of this state to

  4  knowingly and willfully assist, conspire with, or urge any

  5  person to fraudulently violate any of the provisions of this

  6  chapter.

  7         (d)  It shall be unlawful for any person or

  8  governmental entity licensed under chapter 395 to maintain or

  9  operate a hospital in such a manner so that such person or

10  governmental entity knowingly and willfully allows the use of

11  the facilities of such hospital by any person, in a scheme or

12  conspiracy to fraudulently violate any of the provisions of

13  this chapter.

14         (e)  It shall be unlawful for any attorney or other

15  person, in his or her individual capacity or in his or her

16  capacity as a public or private employee, or any firm,

17  corporation, partnership, or association, to knowingly assist,

18  conspire with, or urge any person to fraudulently violate any

19  of the provisions of this chapter.

20         (f)  If the amount of any claim or workers'

21  compensation insurance premium involved in any violation of

22  this subsection:

23         1.  Is less than $20,000, the offender commits a felony

24  of the third degree, punishable as provided in s. 775.082, s.

25  775.083, or s. 775.084.

26         2.  Is $20,000 or more, but less than $100,000, the

27  offender commits a felony of the second degree, punishable as

28  provided in s. 775.082, s. 775.083, or s. 775.084.

29         3.  Is $100,000 or more, the offender commits a felony

30  of the first degree, punishable as provided in s. 775.082, s.

31  775.083, or s. 775.084.


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  1         (5)  It shall be unlawful for any attorney or other

  2  person, in his or her individual capacity or in his or her

  3  capacity as a public or private employee or for any firm,

  4  corporation, partnership, or association, to unlawfully

  5  solicit any business in and about city or county hospitals,

  6  courts, or any public institution or public place; in and

  7  about private hospitals or sanitariums; in and about any

  8  private institution; or upon private property of any character

  9  whatsoever for the purpose of making workers' compensation

10  claims. Whoever violates any provision of this subsection

11  commits a felony of the third degree, punishable as provided

12  in s. 775.082, s. 775.083, or s. 775.085.

13         (6)(5)  This section shall not be construed to preclude

14  the applicability of any other provision of criminal law that

15  applies or may apply to any transaction.

16         (7)(6)  For the purpose of the section, the term

17  "statement" includes, but is not limited to, any notice,

18  representation, statement, proof of injury, bill for services,

19  diagnosis, prescription, hospital or doctor records, X ray,

20  test result, or other evidence of loss, injury, or expense.

21         (8)(7)  All claim forms as provided for in this chapter

22  shall contain a notice that clearly states in substance the

23  following: "Any person who, knowingly and with intent to

24  injure, defraud, or deceive any employer or employee,

25  insurance company, or self-insured program, files a statement

26  of claim containing any false or misleading information

27  commits insurance fraud, punishable as provided in s. 817.234

28  is guilty of a felony of the third degree." Each claimant

29  shall personally sign the claim form and attest that he or she

30  has reviewed, understands, and acknowledges the foregoing

31  notice.


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  1         Section 8.  Present subsections (1) through (7) of

  2  section 440.107, Florida Statutes, are redesignated as

  3  subsections (5) through (11), respectively, and new

  4  subsections (1), (2), (3), and (4) are added to that section

  5  to read:

  6         440.107  Division powers to enforce employer compliance

  7  with coverage requirements.--

  8         (1)  The Legislature finds that the failure of an

  9  employer to comply with the workers' compensation coverage

10  requirements under chapter 440 poses an immediate danger to

11  public health, safety, and welfare. The Legislature authorizes

12  the division to secure employer compliance with the workers'

13  compensation coverage requirements and authorizes the division

14  to conduct investigations for the purpose of ensuring employer

15  compliance.

16         (2)  The division and its authorized representatives

17  may enter and inspect any place of business at any reasonable

18  time for the limited purpose of investigating compliance with

19  workers' compensation coverage requirements under this

20  chapter. Each employer shall keep true and accurate business

21  records that contain such information as the division

22  prescribes by rule. The business records must contain

23  information necessary for the division to determine compliance

24  with workers' compensation coverage requirements and must be

25  maintained within this state by the business, in such a manner

26  as to be accessible within a reasonable time upon request by

27  the division. The business records must be open to inspection

28  and be available for copying by the division at any reasonable

29  time and place and as often as necessary. The division may

30  require from any employer any sworn or unsworn reports,

31  pertaining to persons employed by that employer, deemed


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  1  necessary for the effective administration of the workers'

  2  compensation coverage requirements.

  3         (3)  In discharging its duties, the division may

  4  administer oaths and affirmations, certify to official acts,

  5  issue subpoenas to compel the attendance of witnesses and the

  6  production of books, papers, correspondence, memoranda, and

  7  other records deemed necessary by the division as evidence in

  8  order to ensure proper compliance with the coverage provisions

  9  of this chapter.

10         (4)  If a person has refused to obey a subpoena to

11  appear before the division or its authorized representative

12  and produce evidence requested by the division or to give

13  testimony about the matter that is under investigation, a

14  court has jurisdiction to issue an order requiring compliance

15  with the subpoena if the court has jurisdiction in the

16  geographical area where the inquiry is being carried on or in

17  the area where the person who has refused the subpoena is

18  found, resides, or transacts business. Failure to obey such a

19  court order may be punished by the court as contempt.

20         Section 9.  Subsection (7) of section 440.185, Florida

21  Statutes, is amended to read:

22         440.185  Notice of injury or death; reports; penalties

23  for violations.--

24         (7)  Every carrier shall file with the division within

25  21 days after the issuance of a policy or contract of

26  insurance such policy information as the division may require,

27  including notice of whether the policy is a minimum premium

28  policy. Notice of cancellation or expiration of a policy as

29  set out in s. 440.42(2) shall be mailed to the division in

30  accordance with rules promulgated by the division under

31  chapter 120.


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  1         Section 10.  Subsections (2) and (3) of section 440.42,

  2  Florida Statutes, are renumbered as subsections (3) and (4),

  3  respectively, and new subsection (2) is added to said section,

  4  to read:

  5         440.42  Insurance policies; liability.--

  6         (2)  A workers' compensation insurance policy may

  7  require the employer to release certain employment and wage

  8  information maintained by the state pursuant to federal and

  9  state unemployment compensation laws except to the extent

10  prohibited or limited under federal law.  By entering into a

11  workers' compensation insurance policy with such a provision,

12  the employer consents to the release of the information.  The

13  insurance carrier requiring such consent shall safeguard the

14  information and maintain its confidentiality.  The carrier

15  shall limit use of the information to verifying compliance

16  with the terms of the workers' compensation insurance policy.

17  The department may charge a fee to cover the cost of

18  disclosing the information.

19         Section 11.  Section 440.45, Florida Statutes, is

20  amended to read:

21         440.45  Office of the Judges of Compensation Claims.--

22         (1)  There is hereby created the Office of the Judges

23  of Compensation Claims within the Department of Labor and

24  Employment Security. The Office of the Judges of Compensation

25  Claims shall be headed by a Chief Judge who shall serve at the

26  pleasure of the Governor and Cabinet.  The Chief Judge shall

27  be appointed by the Governor for a term of 4 years and

28  confirmed by the Cabinet from a list of three two names

29  submitted by the statewide nominating commission created under

30  subsection (2) each of the District Court Judicial Nominating

31  Commissions created by s. 2, Art. V of the State Constitution


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  1  and s. 43.29. The Chief Judge must possess the same

  2  qualifications for appointment as a judge of compensation

  3  claims, and the procedure for reappointment of the Chief Judge

  4  will be the same as for reappointment of a judge of

  5  compensation claims. The office shall be a separate budget

  6  entity and the Chief Judge shall be its agency head for all

  7  purposes.  The Department of Labor and Employment Security

  8  shall provide administrative support and service to the office

  9  to the extent requested by the Chief Judge but shall not

10  direct, supervise, or control the Office of the Judges of

11  Compensation Claims in any manner, including but not limited

12  to personnel, purchasing, budgetary matters, or property

13  transactions. The operating budget of the Office of the Judges

14  of Compensation Claims shall be paid out of the Workers'

15  Compensation Administration Trust Fund established in s.

16  440.50.

17         (2)(a)  The Governor shall appoint full-time judges of

18  compensation claims to conduct proceedings as required by this

19  chapter or other law. No person may be nominated to serve

20  appointed as a judge of compensation claims unless he or she

21  has been a member of The Florida Bar in good standing for the

22  preceding 5 years and is knowledgeable in the practice of law

23  of workers' compensation. No judge of compensation claims

24  shall engage in the private practice of law during a term of

25  office.

26         (b)  Except as provided in paragraph (c), the Governor

27  shall initially appoint a judge of compensation claims from a

28  list of three persons nominated by a statewide nominating

29  commission. The statewide nominating commission shall be

30  composed of the following:

31


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  1         1.  Five 5 members, at least one of whom must be a

  2  member of a minority group as defined in s. 288.703(3), one of

  3  each who resides in each of the territorial jurisdictions of

  4  the district courts of appeal, appointed by the Board of

  5  Governors of The Florida Bar from among The Florida Bar

  6  members who are engaged in the practice of law. On July 1,

  7  1999, the term of office of each person appointed by the Board

  8  of Governors of The Florida Bar to the commission expires. The

  9  Board of Governors shall appoint members who reside in the

10  odd-numbered district court of appeal jurisdictions to 4-year

11  terms each, beginning July 1, 1999, and members who reside in

12  the even-numbered district court of appeal jurisdictions to

13  2-year terms each, beginning July 1, 1999. Thereafter, each

14  member shall be appointed for a 4-year term;

15         2.  Five 5 electors, at least one of whom must be a

16  member of a minority group as defined in s. 288.703(3), one of

17  each who resides in each of the territorial jurisdictions of

18  the district courts of appeal, appointed by the Governor. On

19  July 1, 1999, the term of office of each person appointed by

20  the Governor to the commission expires. The Governor shall

21  appoint members who reside in the odd-numbered district court

22  of appeal jurisdictions to 2-year terms each, beginning July

23  1, 1999, and members who reside in the even-numbered district

24  court of appeal jurisdictions to 4-year terms each, beginning

25  July 1, 1999. Thereafter, each member shall be appointed for a

26  4-year term; and

27         3.  Five 5 electors, at least one of whom must be a

28  member of a minority group as defined in s. 288.703(3), one of

29  each who resides in the territorial jurisdictions of the

30  district courts of appeal, selected and appointed by a

31  majority vote of the other 10 members of the commission. On


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  1  October 1, 1999, the term of office of each person appointed

  2  to the commission by its other members expires. A majority of

  3  the other members of the commission shall appoint members who

  4  reside in the odd-numbered district court of appeal

  5  jurisdictions to 2-year terms each, beginning October 1, 1999,

  6  and members who reside in the even-numbered district court of

  7  appeal jurisdictions to 4-year terms each, beginning October

  8  1, 1999. Thereafter, each member shall be appointed for a

  9  4-year term.

10

11  A vacancy occurring on the commission shall be filled by the

12  original appointing authority for the unexpired balance of the

13  term. No attorney who appears before any judge of compensation

14  claims more than four times a year is eligible to serve on the

15  statewide nominating commission. The meetings and

16  determinations of the nominating commission as to the judges

17  of compensation claims shall be open to the general public.

18         (c)  Each judge of compensation claims shall be

19  appointed for a term of 4 years, but during the term of office

20  may be removed by the Governor for cause. Prior to the

21  expiration of a judge's term of office, the statewide

22  nominating commission shall review the judge's conduct and

23  determine whether the judge's performance is satisfactory. If

24  the judge's performance is deemed satisfactory, the commission

25  shall report its finding to the Governor no later than 6

26  months prior to the expiration of the judge's term of office.

27  The Governor shall review the commission's report and may

28  reappoint the judge for an additional 4-year term. If the

29  Governor does not reappoint the judge, the Governor shall

30  inform the commission. The judge shall remain in office until

31  the Governor has appointed a successor judge in accordance


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  1  with paragraphs (a) and (b). The report of the commission

  2  shall include a list of three candidates for appointment. The

  3  candidates shall include the judge whose term is expiring, if

  4  that judge desires reappointment and the judge's performance

  5  is satisfactory upon review by the commission. If a vacancy

  6  occurs during a judge's unexpired term, the statewide

  7  nominating commission does not find the judge's performance is

  8  satisfactory, or the governor does not reappoint the judge,

  9  the commission shall issue a report to the Governor shall

10  appoint a successor judge for a term of 4 years in accordance

11  with paragraph (b) which includes a list of three candidates

12  for appointment. The Governor shall review the commission's

13  report, and may select one of the listed candidates. If no

14  candidate is selected, the Governor shall so inform the

15  commission, which shall within 2 months issue a report to the

16  Governor which includes a list of three different candidates

17  for appointment.

18         (3)  The Chief Judge shall select from among the full

19  time judges of the office two or more judges to rotate as

20  docketing judges. Docketing judges shall review all claims for

21  benefits for consistency with the requirements of this chapter

22  and the rules of procedure, including but not limited to

23  specificity requirements, and shall dismiss any claim that

24  fails to comport with such rules and requirements. The

25  docketing judge shall not dismiss any claim with prejudice

26  without offering the parties an opportunity to appear and

27  present argument. The Chief Judge may as he or she deems

28  appropriate expand the duties of the docketing judges to

29  include resolution without hearing of other types of

30  procedural and substantive matters, including resolution of

31  fee disputes.


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  1         (4)  The Chief Judge shall have the discretion to

  2  require mediation and to designate qualified persons to act as

  3  mediators in any dispute pending before the judges of

  4  compensation claims and the division. The Chief Judge shall

  5  coordinate with the Director of the Division of Workers'

  6  Compensation to establish a mandatory mediation program to

  7  facilitate early and efficient resolution of disputes arising

  8  under this chapter and to establish training and continuing

  9  education for new and sitting judges.

10         (5)  The Office of the Judges of Compensation Claims

11  shall promulgate rules to effect the purposes of this section.

12  Such rules shall include procedural rules applicable to

13  workers' compensation claim resolution and uniform criteria

14  for measuring the performance of the office, including but not

15  limited to the number of cases assigned and disposed, the age

16  of pending and disposed cases, timeliness of decisionmaking,

17  extraordinary fee awards and other performance indicators. The

18  workers' compensation rules of procedure approved by the

19  Supreme Court shall apply until the rules promulgated by the

20  Office of the Judges of Compensation Claims pursuant to this

21  section become effective.

22         (6)  Not later than December 1 of each year, the Office

23  of the Judges of Compensation Claims and the Division of

24  Workers' Compensation shall jointly issue a written report to

25  the Governor, the House of Representatives, and the Senate

26  summarizing the amount, cost, and outcome of all litigation

27  resolved in the prior year, summarizing the disposition of

28  applications and motions for mediation conferences and

29  recommending changes or improvements to the dispute resolution

30  elements of the Workers' Compensation Law and regulations.

31


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  1         Section 12.  On July 1, 1999, the term of office of the

  2  Chief Judge of Compensation Claims expires.  The statewide

  3  nominating commission is directed to submit a list of three

  4  names to the Governor pursuant to section 440.45(1), Florida

  5  Statutes, by March 1, 1999.

  6         Section 13.  The revised process for nomination and

  7  appointment of judges of compensation claims, as provided in

  8  the amendments to section 440.45(2)(c), Florida Statutes,

  9  shall take effect on July 1, 1999.

10         Section 14.  Any member of the statewide nominating

11  commission whose term of office expires as a result of the

12  amendment of section 440.45, Florida Statutes, by this act is

13  eligible for reappointment.

14         Section 15.  Subsection (9) is added to section

15  626.989, Florida Statutes, to read:

16         626.989  Division of Insurance Fraud; definition;

17  investigative, subpoena powers; protection from civil

18  liability; reports to division; division investigator's power

19  to execute warrants and make arrests.--

20         (9)  In recognition of the complementary roles of

21  investigating instances of workers' compensation fraud and

22  enforcing compliance with the workers' compensation coverage

23  requirements under chapter 440, the Division of Insurance

24  Fraud of the Department of Insurance and the Division of

25  Workers' Compensation of the Department of Labor and

26  Employment Security are directed to prepare and submit a joint

27  performance report to the President of the Senate and the

28  Speaker of the House of Representatives by November 1 of each

29  year for each of the next 2 years, and then every 3 years

30  thereafter, describing the results obtained in achieving

31  compliance with the workers' compensation coverage


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  1  requirements and reducing the incidence of workers'

  2  compensation fraud.

  3         Section 16.  Subsection (5) is added to section

  4  627.413, Florida Statutes, to read:

  5         627.413  Contents of policies, in general;

  6  identification.--

  7         (5)  Any policy that is a minimum premium policy issued

  8  by an insurer pursuant to the minimum premium provisions of

  9  rules adopted by rating organizations licensed by the

10  Department of Insurance, shall have typed, printed, stamped,

11  or legibly handwritten on the certificate the words "minimum

12  premium policy" or equivalent language.  The department may

13  impose an administrative fine pursuant to s. 624.4211 if the

14  department finds any violation of this subsection.

15         Section 17.  Paragraph (h) is added to subsection (2)

16  of section 775.15, Florida Statutes, to read:

17         775.15  Time limitations.--

18         (2)  Except as otherwise provided in this section,

19  prosecutions for other offenses are subject to the following

20  periods of limitation:

21         (h)  A prosecution for a felony violation of s. 440.105

22  must be commenced within 5 years after the violation is

23  committed.

24         Section 18.  Effective July 1, 1998, the Division of

25  Workers' Compensation shall notify all persons holding a

26  construction industry certificate of election of exemption of

27  the requirements of section 440.05, Florida Statutes, as

28  amended by this act.

29         Section 19.  There is hereby appropriated to the

30  Department of Labor and Employment Security from the Workers'

31  Compensation Administration Trust Fund for the fiscal year


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  1  1998-1999, 15 positions and $1,100,000 to carry out the

  2  provisions of this act.  This section shall take effect July

  3  1, 1998.

  4         Section 20.  Except as otherwise provided in this act,

  5  this act shall take effect January 1, 1999.

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