House Bill 4565

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    Florida House of Representatives - 1998                HB 4565

        By Representative Feeney






  1                      A bill to be entitled

  2         An act relating to the Department of Labor and

  3         Employment Security; amending s. 20.171, F.S.;

  4         providing that the department shall operate its

  5         programs in a decentralized fashion; providing

  6         for the appointment of three assistant

  7         secretaries; providing for the powers and

  8         duties of such secretaries; providing for the

  9         creation of field offices; revising divisions

10         within the department; amending s. 110.205,

11         F.S.; providing that certain employees of the

12         department shall be in the Senior Management

13         Service; providing that certain actions

14         contemplated by the act shall be done within

15         the available resources of the department;

16         amending ss. 393.11, 400.805, 410.0245,

17         410.604, 413.034, 413.445, 442.003, 442.014,

18         442.20, 553.512, 627.0915, 627.212, and

19         627.311, F.S., to conform; repealing s.

20         442.023, F.S., to conform; providing an

21         effective date.

22

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

24

25         Section 1.  Section 20.171, Florida Statutes, is

26  amended to read:

27         20.171  Department of Labor and Employment

28  Security.--There is created a Department of Labor and

29  Employment Security. The department shall operate its programs

30  in a decentralized fashion.

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  1         (1)  The head of the Department of Labor and Employment

  2  Security is the Secretary of Labor and Employment Security.

  3  The secretary shall be appointed by the Governor subject to

  4  confirmation by the Senate.  The secretary shall serve at the

  5  pleasure of the Governor.

  6         (2)  There shall be three assistant secretaries who

  7  shall be appointed by and serve at the pleasure of the

  8  Secretary of Labor and Employment Security. The assistant

  9  secretaries shall be titled Assistant Secretary for Finance

10  and Administration, Assistant Secretary for Programs, and

11  Assistant Secretary for Field Operations. The Secretary of

12  Labor and Employment Security may assign any assistant

13  secretary the responsibility of supervising, coordinating, and

14  formulating policy for any division, office, or field office.

15  The following special offices are established within the

16  department to be headed by managers, each of whom shall be

17  appointed by and serve at the pleasure of the Secretary of

18  Labor and Employment Security:  the Office of General Counsel,

19  the Office of Inspector General, and the Office of the

20  Executive Staff Director. There shall be five field offices

21  involved in the administration and management of the

22  department's programs for Workers' Compensation, Jobs and

23  Benefits, and Unemployment Compensation. The five field

24  offices shall be headed by managers, each of whom shall be

25  appointed by and serve at the pleasure of the Secretary of

26  Labor and Employment Security. The managers of all divisions

27  and offices specifically named in this section and the

28  directors of the five field offices are exempt from part II of

29  chapter 110 and are included in the Senior Management Service

30  in accordance with s. 110.205(2)(l). No other assistant

31  secretaries or senior management positions at or above the

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  1  division level, except those established in chapter 110, may

  2  be created without specific legislative authority.

  3         (a)  The Assistant Secretary for Finance and

  4  Administration is responsible for developing, monitoring, and

  5  enforcing policy and managing major technical programs.

  6         1.  The responsibilities and duties of the Assistant

  7  Secretary for Finance and Administration include, but are not

  8  limited to the following functional areas:

  9         a.  Financial planning and management.

10         b.  Information systems.

11         c.  Accounting systems.

12         d.  Administrative functions.

13         2.  The following offices are established and shall be

14  headed by managers:

15         a.  The Office of Administration.

16         b.  The Office of Comptroller.

17         c.  The Office of Management and Budget.

18         d.  The Office of Civil Rights.

19         e.  The Office of Information Systems.

20         (b)  The Assistant Secretary for Finance and

21  Administration must possess a broad knowledge of the

22  administrative, financial, and technical aspects of a complete

23  cost-accounting system, budget preparation and management, and

24  management information systems. The Assistant Secretary for

25  Finance and Administration must be a proven, effective manager

26  with specialized skills in financial planning and management.

27  The Assistant Secretary for Finance and Administration shall

28  ensure that financial information is processed in a timely,

29  accurate, and complete manner. The responsibilities of the

30  office of the Assistant Secretary of Finance and

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  1  Administration shall include, but are not limited to,

  2  implementing the following by December 1, 1998:

  3         1.  The preparation of detailed documentation of the

  4  internal controls, including general and application controls,

  5  the department relies on for accurate and complete financial

  6  information.

  7         2.  The monthly reconciliation of the department's

  8  accounting, planning and budgeting, cash forecasting, and

  9  grants-in-aid program.

10         3.  The development of a long-range information systems

11  plan for the department which addresses the computing and

12  informational requirements of the five field and central

13  offices. Financial, personnel, and technical resources must

14  all be identified and quantified, as appropriate.

15         (c)  Within the central office there is created an

16  Office of Management and Budget. The head of the Office of

17  Management and Budget is responsible to the Assistant

18  Secretary for Finance and Administration and is exempt from

19  part II of chapter 110. The functions of the Office of

20  Management and Budget include, but are not limited to:

21         1.  Financial planning.

22         2.  Preparation of the department budget.

23         3.  Coordination of related policies and procedures.

24         4.  The development of uniform implementation and

25  monitoring procedures for all activities performed at the

26  field office level involving the budget and agency programs.

27         (d)1.  The Secretary of Labor and Employment Security

28  shall appoint a comptroller who shall be responsible to the

29  Assistant Secretary for Finance and Administration. This

30  position is exempt from part II of chapter 110.

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  1         2.  The comptroller is the chief financial officer of

  2  the department and shall be a proven, effective administrator

  3  who by a combination of education and experience clearly

  4  possesses a broad knowledge of the administrative, financial,

  5  and technical aspects of a complex cost-accounting system. The

  6  comptroller must also have a working knowledge of generally

  7  accepted accounting principles. At a minimum, the comptroller

  8  shall hold an active license to practice public accounting in

  9  Florida pursuant to chapter 473 or an active license to

10  practice public accounting in another state. In addition to

11  the requirements of the Florida Fiscal Accounting Management

12  Information System Act, the comptroller is responsible for the

13  development, maintenance, and modification of an accounting

14  system which will in a timely manner accurately reflect the

15  revenues and expenditures of the department and which shall

16  include a cost-accounting system to properly identify,

17  segregate, allocate, and report department costs. The

18  comptroller shall supervise and direct preparation of a

19  detailed 36 month forecast of cash and expenditures and shall

20  be responsible for managing and determining cash requirements.

21  The comptroller shall review all comparative cost studies

22  which examine the cost-effectiveness and feasibility of

23  contracting for services and operations performed by the

24  department. The review shall state that the study was prepared

25  in accordance with generally accepted cost-accounting

26  standards applied in a consistent manner using valid and

27  accurate cost data.

28         3.  The comptroller must give bond in the amount of

29  $100,000, payable to the Governor and his or her successors in

30  office, to be approved by the Department of Banking and

31  Finance and conditioned upon the faithful performance of his

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  1  or her duties. The premiums of such bond shall be paid from

  2  the funds for the maintenance of the department.

  3         4.  The department shall, by rule or internal

  4  management memoranda as required by chapter 120, provide for

  5  the maintenance by the comptroller of financial records and

  6  accounts of the department as will afford a full and complete

  7  check against the improper payment of bills and provide a

  8  system for the prompt payment of the just obligations of the

  9  department, which records must at all times disclose:

10         a.  The several appropriations available for the use of

11  the department.

12         b.  The specific amounts of each such appropriation

13  budgeted by the department for each improvement or purpose.

14         c.  The apportionment or division of all such

15  appropriations among the several counties and field offices,

16  when such apportionment or division is made.

17         d.  The amount or portion of each such apportionment

18  against contractual and other obligations of the department.

19         e.  The amount expended and the amount still to be

20  expended in connection with each contractual and other

21  obligations of the department.

22         f.  The expense and operating costs of the various

23  activities of the department.

24         g.  The receipts accruing to the department and the

25  distribution thereof.

26         h.  The assets, investments, and liabilities of the

27  department.

28         i.  The cash requirements of the department of a

29  36-month period.

30         5.  The comptroller shall maintain a separate account

31  for each fund administered by the department.

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  1         6.  The comptroller shall perform such other related

  2  duties as may be designated by the department.

  3         (e)  The Assistant Secretary for Programs is

  4  responsible for developing, monitoring, and enforcing policy

  5  and managing major technical programs. The responsibilities

  6  and duties of the Assistant Secretary for Programs include,

  7  but are not limited to, the following functional areas:

  8         1.a.  Workers' compensation management and policy.

  9         b.  Jobs and benefits management and policy.

10         c.  Unemployment compensation management and policy.

11         d.  Blind services management and policy.

12         2.  The following divisions are established and shall

13  be headed by managers, each of whom shall be appointed by and

14  serve at the pleasure of the Secretary of Labor and Employment

15  Security:

16         a.  Division of Jobs and Benefits.

17         b.  Division of Unemployment Compensation.

18         c.  Division of Workers' Compensation.

19         d.  Division of Blind Services.

20         (f)  The Assistant Secretary for Programs must possess

21  a broad knowledge of the administrative, financial, and

22  technical aspects of the divisions within the department.

23         (g)  The Assistant Secretary for Field Operations is

24  responsible for developing, monitoring, and enforcing policy

25  and managing major technical programs. The responsibilities

26  and duties of the Assistant Secretary for Field Operations

27  include, but are not limited to, the following functional

28  areas:

29         1.a.  Oversight of the five field offices.

30         b.  Workers' compensation policy implementation.

31         c.  Jobs and benefits policy implementation.

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  1         d.  Unemployment compensation policy implementation.

  2         2.  The following field offices are established and

  3  shall be headed by managers:

  4         a.  Field Office I--Panama City, which shall serve the

  5  following counties: Escambia, Santa Rosa, Okaloosa, Walton,

  6  Holmes, Washington, Bay, Jefferson, Calhoun, Gulf, Liberty,

  7  Franklin, Wakulla, Leon, Gadsden, and Jefferson.

  8         b.  Field Office II--Lake City, which shall serve the

  9  following counties: Madison, Taylor, Dixie, Lafayette,

10  Suwannee, Hamilton, Columbia, Baker, Union, Bradford, Clay,

11  St. Johns, Duval, Nassau, Alachua, Putnam, Marion, Levy,

12  Gilchrist, and Flagler.

13         c.  Field Office III--Orlando, which shall serve the

14  following counties: Volusia, Lake, Seminole, Orange, Sumter,

15  Brevard, Osceola, Indian River, Highlands, St. Lucie,

16  Okeechobee, and Martin.

17         d.  Field Office IV--Tampa, which shall serve the

18  following counties:  Citrus, Hernando, Pasco, Pinellas,

19  Hillsborough, Polk, Hardee, Manatee, Sarasota, DeSoto,

20  Charlotte, and Lee.

21         e.  Field Office V--Miami, which shall serve the

22  following counties: Palm Beach, Glades, Hendry, Collier,

23  Broward, Monroe, and Dade.

24         (h)  The Assistant Secretary for Field Operations must

25  possess a broad knowledge of the administrative, financial,

26  and technical aspects of the divisions within the department.

27         (2)  The following divisions, and bureaus within the

28  divisions, of the Department of Labor and Employment Security

29  are established:

30         (a)  Division of Jobs and Benefits.

31         (b)  Division of Unemployment Compensation.

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  1         (c)  Division of Administrative Services.

  2         (d)  Division of Workers' Compensation.

  3         (e)  Division of Vocational Rehabilitation.

  4         (f)  Division of Safety.

  5         (g)  Division of Blind Services.

  6         (3)  The following commissions are established within

  7  the Department of Labor and Employment Security:

  8         (a)  Public Employees Relations Commission.

  9         (b)  Unemployment Appeals Commission.

10         (4)

11         (a)  There is created within the Department of Labor

12  and Employment Security an Unemployment Appeals Commission,

13  hereinafter referred to as the "commission."  The commission

14  shall consist of a chair and two other members to be appointed

15  by the Governor, subject to confirmation by the Senate.  Not

16  more than one appointee shall be a person who, on account of

17  previous vocation, employment, or affiliation, shall be

18  classified as a representative of employers; and not more than

19  one such appointee shall be a person who, on account of

20  previous vocation, employment, or affiliation, shall be

21  classified as a representative of employees.

22         1.  The chair shall devote his or her entire time to

23  commission duties and shall be responsible for the

24  administrative functions of the commission.

25         2.  The chair shall have the authority to appoint a

26  general counsel and such other personnel as may be necessary

27  to carry out the duties and responsibilities of the

28  commission.

29         3.  The chair shall have the qualifications required by

30  law for a judge of the circuit court and shall not engage in

31  any other business vocation or employment. Notwithstanding any

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  1  other provisions of existing law, the chair shall be paid a

  2  salary equal to that paid under state law to a judge of the

  3  circuit court.

  4         4.  The remaining members shall be paid a stipend of

  5  $100 for each day they are engaged in the work of the

  6  commission.  The chair and other members shall also be

  7  reimbursed for travel expenses, as provided in s. 112.061.

  8         5.  The total salary and travel expenses of each member

  9  of the commission shall be paid from the Employment Security

10  Administration Trust Fund.

11         (b)  Members shall serve for terms of 4 years each,

12  except that, beginning July 1, 1977, the chair shall be

13  appointed for a term of 4 years, one member for 3 years, and

14  one member for 2 years. A vacancy for the unexpired term of a

15  member shall be filled in the same manner as provided in this

16  subsection for an original appointment.  The presence of two

17  members shall constitute a quorum for any called meeting of

18  the commission.

19         (c)  The commission is vested with all authority,

20  powers, duties, and responsibilities relating to unemployment

21  compensation appeal proceedings under chapter 443.

22         (d)  The property, personnel, and appropriations

23  relating to the specified authority, powers, duties, and

24  responsibilities of the commission shall be provided to the

25  commission by the Department of Labor and Employment Security.

26         (e)  The commission shall not be subject to control,

27  supervision, or direction by the Department of Labor and

28  Employment Security in the performance of its powers and

29  duties under chapter 443.

30         (f)  The commission shall make such expenditures,

31  including expenditures for personal services and rent at the

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  1  seat of government and elsewhere; for law books, books of

  2  reference, periodicals, furniture, equipment, and supplies;

  3  and for printing and binding as may be necessary in exercising

  4  its authority and powers and carrying out its duties and

  5  responsibilities.  All such expenditures of the commission

  6  shall be allowed and paid as provided in s. 443.211 upon the

  7  presentation of itemized vouchers therefor, approved by the

  8  chair.

  9         (g)  The commission may charge, in its discretion, for

10  publications, subscriptions, and copies of records and

11  documents. Such fees shall be deposited in the Employment

12  Security Administration Trust Fund.

13         (h)  The commission shall maintain and keep open during

14  reasonable business hours an office, which shall be provided

15  in the Capitol or some other suitable building in the City of

16  Tallahassee, for the transaction of its business, at which

17  office its official records and papers shall be kept.  The

18  offices shall be furnished and equipped by the commission.

19  The commission may hold sessions and conduct hearings at any

20  place within the state.

21         (i)  The commission shall prepare and submit a budget

22  covering the necessary administrative cost of the commission.

23         (j)  The commission shall have a seal for

24  authentication of its orders, awards, and proceedings, upon

25  which shall be inscribed the words "State of

26  Florida-Unemployment Appeals Commission-Seal"; and it shall be

27  judicially noticed.

28         (k)  The commission shall, in accordance with chapter

29  120, adopt, promulgate, amend, or rescind such rules as it

30  deems necessary and administratively feasible to carry out its

31  responsibilities.

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  1         (l)  Orders of the commission relating to unemployment

  2  compensation under chapter 443 shall be subject to review only

  3  by notice of appeal to the district courts of appeal in the

  4  manner provided in s. 443.151(4)(e).

  5         Section 2.  Paragraph (l) of subsection (2) of section

  6  110.205, Florida Statutes, is amended to read:

  7         110.205  Career service; exemptions.--

  8         (2)  EXEMPT POSITIONS.--The exempt positions which are

  9  not covered by this part include the following, provided that

10  no position, except for positions established for a limited

11  period of time pursuant to paragraph (h), shall be exempted if

12  the position reports to a position in the career service:

13         (l)  All assistant division director, deputy division

14  director, and bureau chief positions in any department, and

15  those positions determined by the department to have

16  managerial responsibilities comparable to such positions,

17  which positions include, but are not limited to, positions in

18  the Department of Health and Rehabilitative Services and the

19  Department of Corrections that are assigned primary duties of

20  serving as the superintendent of an institution: positions in

21  the Department of Transportation that are assigned primary

22  duties of serving as regional toll managers and managers of

23  offices as defined in s. 20.23(3)(d)3. and (4)(d); positions

24  in the Department of Environmental Protection that are

25  assigned the duty of an Environmental Administrator or program

26  administrator; those positions described in s. 20.171 as

27  included in the Senior Management Service; and positions in

28  the Department of Health and Rehabilitative Services that are

29  assigned the duty of an Environmental Administrator. Unless

30  otherwise fixed by law, the department shall set the salary

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  1  and benefits of these positions in accordance with the rules

  2  established for the Selected Exempt Service.

  3         Section 3.  All actions required by this act shall be

  4  accomplished within available appropriations of the

  5  department.

  6         Section 4.  Subsection (1) of section 393.11, Florida

  7  Statutes, is amended to read:

  8         393.11  Involuntary admission to residential

  9  services.--

10         (1)  JURISDICTION.--When a person is mentally retarded

11  and requires involuntary admission to residential services

12  provided by the developmental services program of the

13  Department of Health and Rehabilitative Services, the circuit

14  court of the county in which the person resides shall have

15  jurisdiction to conduct a hearing and enter an order

16  involuntarily admitting the person in order that the person

17  may receive the care, treatment, habilitation, and

18  rehabilitation which the person needs.  For the purpose of

19  identifying mental retardation, diagnostic capability shall be

20  established in every program function of the department in the

21  districts, including, but not limited to, programs provided by

22  children and families; delinquency services; alcohol, drug

23  abuse, and mental health; and economic services, and by the

24  Division of Vocational Rehabilitation of the Department of

25  Labor and Employment Security. Except as otherwise specified,

26  the proceedings under this section shall be governed by the

27  Florida Rules of Civil Procedure.

28         Section 5.  Section 400.805, Florida Statutes, is

29  amended to read:

30         400.805  Transitional living facilities.--

31         (1)  As used in this section, the term:

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  1         (a)  "Agency" means the Agency for Health Care

  2  Administration.

  3         (b)  "Division" means the Division of Vocational

  4  Rehabilitation of the Department of Labor and Employment

  5  Security.

  6         (b)(c)  "Transitional living facility" means a site

  7  where specialized health care services are provided,

  8  including, but not limited to, rehabilitative services,

  9  community reentry training, aids for independent living, and

10  counseling to spinal-cord-injured persons and head-injured

11  persons.  This term does not include a hospital licensed under

12  chapter 395 or any federally operated hospital or facility.

13         (2)(a)  A person must obtain a license from the agency

14  to operate a transitional living facility.  A license issued

15  under this section is valid for 1 year.

16         (b)  The application for a license must be made on a

17  form provided by the agency.  A nonrefundable license fee of

18  $2,000 and a fee of up to $39.25 per bed must be submitted

19  with the license application.

20         (c)  The agency may not issue a license to an applicant

21  until the agency receives notice from the division as provided

22  in paragraph (5)(b).

23         (3)  An application for renewal of license must be

24  submitted 90 days before the expiration of the license.

25         (4)  A change of ownership or control of a transitional

26  living facility must be reported to the agency in writing at

27  least 60 days before the change is scheduled to take effect.

28         (5)(a)  The agency shall adopt rules in consultation

29  with the division governing the physical plant of transitional

30  living facilities and the fiscal management of transitional

31  living facilities.

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  1         (b)  The Department of Labor and Employment Security

  2  division shall adopt rules in consultation with the agency

  3  governing the services provided to clients of transitional

  4  living facilities.  The Department of Labor and Employment

  5  Security division shall enforce all requirements for providing

  6  services to the facility's clients.  The Department of Labor

  7  and Employment Security division must notify the agency when

  8  it determines that an applicant for licensure meets the

  9  service requirements adopted by the division.

10         (c)  The agency and the Department of Labor and

11  Employment Security division shall enforce requirements under

12  this section, as such requirements relate to them

13  respectively, and their respective adopted rules.

14         (6)(a)  It is unlawful for any person to establish,

15  conduct, manage, or operate a transitional living facility

16  without obtaining a license from the agency.

17         (b)  It is unlawful for any person to offer or

18  advertise to the public, in any medium whatever, services or

19  care defined in paragraph (1)(c) without obtaining a license

20  from the agency.

21         (c)  It is unlawful for a holder of a license issued

22  under this section to advertise or represent to the public

23  that it holds a license for a type of facility other than the

24  facility for which its license is issued.

25         (7)(a)  A violation of any provision of this section or

26  rules adopted by the agency or division under this section is

27  punishable by payment of an administrative or a civil penalty

28  fine not to exceed $5,000.

29         (b)  A violation of subsection (6) or rules adopted

30  under that subsection is a misdemeanor of the first degree,

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  1  punishable as provided in s. 775.082 or s. 775.083.  Each day

  2  of a continuing violation is a separate offense.

  3         Section 6.  Paragraph (a) of subsection (1) of section

  4  410.0245, Florida Statutes, is -mended to read:

  5         410.0245  Study of service needs; report; multiyear

  6  plan.--

  7         (1)(a)  The Aging and Adult Services Program Office of

  8  the Department of Health and Rehabilitative Services shall

  9  contract for a study of the service needs of the

10  18-to-59-year-old disabled adult population served or waiting

11  to be served by the community care for disabled adults

12  program.  The Division of Vocational Rehabilitation of the

13  Department of Labor and Employment Security and other

14  appropriate state agencies shall provide information to the

15  Department of Health and Rehabilitative Services when

16  requested for the purposes of this study.

17         Section 7.  Subsection (2) of section 410.604, Florida

18  Statutes, is amended to read:

19         410.604  Community care for disabled adults program;

20  powers and duties of the department.--

21         (2)  Any person who meets the definition of a disabled

22  adult pursuant to s. 410.603(2) is eligible to receive the

23  services of the community care for disabled adults program.

24  However, the community care for disabled adults program shall

25  operate within the funds appropriated by the Legislature.

26  Priority shall be given to disabled adults who are not

27  eligible for comparable services in programs of or funded by

28  the department or the Division of Vocational Rehabilitation of

29  the Department of Labor and Employment Security; who are

30  determined to be at risk of institutionalization; and whose

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  1  income is at or below the existing institutional care program

  2  eligibility standard.

  3         Section 8.  Subsection (1) of section 413.034, Florida

  4  Statutes, is amended to read:

  5         413.034  Commission established; membership.--

  6         (1)  There is created within the Department of

  7  Management Services the Commission for Purchase from the Blind

  8  or Other Severely Handicapped, to be composed of the secretary

  9  of the Department of Management Services; the director of the

10  Division of Vocational Rehabilitation of the Department of

11  Labor and Employment Security, who shall be an ex officio

12  member with voting rights; the director of the Division of

13  Blind Services of the Department of Labor and Employment

14  Security; and four members to be appointed by the Governor,

15  which four members shall be an executive director of a

16  nonprofit agency for the blind, an executive director of a

17  nonprofit agency for other severely handicapped persons, a

18  representative of private enterprise, and a representative of

19  other political subdivisions. All appointed members shall

20  serve for terms of 4 years.  Appointed commission members

21  shall serve subject to confirmation by the Senate.

22         Section 9.  Subsection (1) of section 413.445, Florida

23  Statutes, is amended to read:

24         413.445  Recovery of third-party payments for

25  vocational rehabilitation and related services.--

26         (1)  As used in this section, "vocational

27  rehabilitation and related services" means any services which

28  are provided or paid for by the Division of Vocational

29  Rehabilitation of the Department of Labor and Employment

30  Security.

31

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  1         Section 10.  Section 442.003, Florida Statutes, is

  2  amended to read:

  3         442.003  Legislative intent.--It is the intent of the

  4  Legislature to enhance occupational safety and health in this

  5  state through the implementation and maintenance of policies,

  6  procedures, practices, rules, and standards that reduce the

  7  incidence of employee accidents, occupational diseases, and

  8  fatalities compensable under chapter 440. The Legislature

  9  further intends that the Division of Safety of the Department

10  of Labor and Employment Security develop a means by which it

11  can identify individual employers with a high frequency or

12  severity of work-related injuries; conduct safety inspections

13  of those employers; and assist those employers in the

14  development and implementation of employee safety and health

15  programs. In addition, it is the intent of the Legislature

16  that the Division of Safety of the Department of Labor and

17  Employment Security administer the provisions of this chapter;

18  provide assistance to employers, employees, and insurance

19  carriers; and enforce the policies, rules, and standards set

20  forth in this chapter.

21         Section 11.  Section 442.014, Florida Statutes, is

22  amended to read:

23         442.014  Division cooperation with Federal Government

24  exemption from Division of Safety requirements.--

25         (1)  The division shall cooperate with the Federal

26  Government so that duplicate inspections will be avoided yet

27  assure safe places of employment for the citizens of this

28  state.

29         (2)  Except as provided in this section, a private

30  sector employer is not subject to the requirements of the

31  Division of Safety if:

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  1         (a)  The employer is subject to the federal regulations

  2  in 29 C.F.R. ss. 1910 and 1926; and

  3         (b)  The employer has adopted and implemented a written

  4  safety program that conforms to the requirements of 29 C.F.R.

  5  ss. 1910 and 1926; and

  6         (c)  An employer with 20 or more full-time employees

  7  shall include provisions for a safety committee in the safety

  8  program. The safety committee must include employee

  9  representation and must meet at least once each calendar

10  quarter. The employer must make adequate records of each

11  meeting and maintain the records subject to inspections under

12  subsection (3). The safety committee shall, if appropriate,

13  make recommendations regarding improvements to the safety

14  program and corrections of hazards affecting workplace safety;

15  and

16         (d)  The employer provides the Division of Safety with

17  a written statement that certifies compliance with this

18  subsection.

19         (3)  The Division of Safety may enter at any reasonable

20  time any place of employment for the purposes of verifying the

21  accuracy of the written certification. If the Division of

22  Safety determines that the employer has not complied with the

23  requirements of subsection (2), the employer shall be subject

24  to the rules of the Division of Safety until the employer

25  complies with subsection (2) and recertifies that fact to the

26  Division of Safety.

27         (4)  This section shall not restrict the Division of

28  Safety from performing any duties pursuant to a written

29  contract between the Division of Safety and the Federal

30  Occupational Safety and Health Administration (OSHA).

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  1         Section 12.  Section 442.023, Florida Statutes, is

  2  repealed.

  3         Section 13.  Section 442.20, Florida Statutes, is

  4  amended to read:

  5         442.20  Workplace safety.--

  6         (1)  The Division of Safety within the Department of

  7  Labor and Employment Security shall assist in making the

  8  workplace a safer place to work and decreasing the frequency

  9  and severity of on-the-job injuries.

10         (2)  The department Division of Safety shall have the

11  authority to adopt rules for the purpose of assuring safe

12  working conditions for all workers by authorizing the

13  enforcement of effective standards, assisting and encouraging

14  employers to maintain safe working conditions, and by

15  providing for education and training in the field of safety.

16         (3)  The provisions of chapter 440 which pertain to

17  workplace safety shall be applicable to the department

18  Division of Safety.

19         (4)  The administrative rules of the Department of

20  Labor and Employment Security pertaining to the function of

21  the Bureau of Industrial Safety and Health which are in effect

22  immediately before July 1, 1990, continue in effect as rules

23  of the Division of Safety until specifically amended by the

24  Department of Labor and Employment Security.

25         Section 14.  Subsection (1) of section 553.512, Florida

26  Statutes, is amended to read:

27         553.512  Modifications and waivers; advisory council.--

28         (1)  The Florida Board of Building Codes and Standards

29  shall provide by regulation criteria for granting individual

30  modifications of, or exceptions from, the literal requirements

31  of this part upon a determination of unnecessary,

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  1  unreasonable, or extreme hardship, provided such waivers shall

  2  not violate federal accessibility laws and regulations and

  3  shall be reviewed by the Handicapped Accessibility Advisory

  4  Council consisting of the following seven members, who shall

  5  be knowledgeable in the area of handicapped accessibility.

  6  The Secretary of Community Affairs shall appoint the

  7  following: a representative from the Advocacy Center for

  8  Persons with Disabilities, Inc.; a representative from the

  9  Division of Blind Services; a representative from the Division

10  of Vocational Rehabilitation; a representative from a

11  statewide organization representing the physically

12  handicapped; a representative from the hearing impaired; a

13  representative from the President, Florida Council of

14  Handicapped Organizations; and a representative of the

15  Paralyzed Veterans of America.  The terms for the first three

16  council members appointed subsequent to October 1, 1991, shall

17  be for 4 years, the terms for the next two council members

18  appointed shall be for 3 years, and the terms for the next two

19  members shall be for 2 years. Thereafter, all council member

20  appointments shall be for terms of 4 years.  No council member

21  shall serve more than two 4-year terms subsequent to October

22  1, 1991.  Any member of the council may be replaced by the

23  secretary upon three unexcused absences.  Upon application

24  made in the form provided, an individual waiver or

25  modification may be granted by the board so long as such

26  modification or waiver is not in conflict with more stringent

27  standards provided in another chapter.

28         Section 15.  Section 627.0915, Florida Statutes, is

29  amended to read:

30         627.0915  Rate filings; workers' compensation,

31  drug-free workplace, and safe employers.--The Department of

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  1  Insurance shall approve rating plans for workers' compensation

  2  insurance that give specific identifiable consideration in the

  3  setting of rates to employers that either implement a

  4  drug-free workplace program pursuant to rules adopted by the

  5  Division of Workers' Compensation of the Department of Labor

  6  and Employment Security or implement a safety program approved

  7  by the Division of Safety pursuant to rules adopted by the

  8  Division of Safety of the Department of Labor and Employment

  9  Security or implement both a drug-free workplace program and a

10  safety program. The plans must take effect January 1, 1994,

11  must be actuarially sound, and must state the savings

12  anticipated to result from such drug-testing and safety

13  programs.

14         Section 16.  Section 627.212, Florida Statutes, is

15  amended to read:

16         627.212  Workplace safety program surcharge.--The

17  department shall approve a rating plan for workers'

18  compensation coverage insurance that provides for carriers

19  voluntarily to impose a surcharge of no more than 10 percent

20  on the premium of a policyholder or fund member if that

21  policyholder or fund member has been identified by the

22  Division of Safety of the Department of Labor and Employment

23  Security as having been required to implement a safety program

24  and having failed to establish or maintain, either in whole or

25  in part, a safety program. The division shall adopt rules

26  prescribing the criteria for the employee safety programs.

27         Section 17.  Paragraph (b) of subsection (4) of section

28  627.311, Florida Statutes, is amended to read:

29         627.311  Joint underwriters and joint reinsurers.--

30         (4)

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  1         (b)  The operation of the plan shall be governed by a

  2  plan of operation that is prepared at the direction of the

  3  board of governors. The plan of operation may be changed at

  4  any time by the board of governors or upon request of the

  5  department. The plan of operation and all changes thereto are

  6  subject to the approval of the department. The plan of

  7  operation shall:

  8         1.  Authorize the board to engage in the activities

  9  necessary to implement this subsection, including, but not

10  limited to, borrowing money.

11         2.  Develop criteria for eligibility for coverage by

12  the plan, including, but not limited to, documented rejection

13  by at least two insurers which reasonably assures that

14  insureds covered under the plan are unable to acquire coverage

15  in the voluntary market. Any insured may voluntarily elect to

16  accept coverage from an insurer for a premium equal to or

17  greater than the plan premium if the insurer writing the

18  coverage adheres to the provisions of s. 627.171.

19         3.  Require notice from the agent to the insured at the

20  time of the application for coverage that the application is

21  for coverage with the plan and that coverage may be available

22  through an insurer, group self-insurers' fund, commercial

23  self-insurance fund, or assessable mutual insurer through

24  another agent at a lower cost.

25         4.  Establish programs to encourage insurers to provide

26  coverage to applicants of the plan in the voluntary market and

27  to insureds of the plan, including, but not limited to:

28         a.  Establishing procedures for an insurer to use in

29  notifying the plan of the insurer's desire to provide coverage

30  to applicants to the plan or existing insureds of the plan and

31  in describing the types of risks in which the insurer is

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  1  interested. The description of the desired risks must be on a

  2  form developed by the plan.

  3         b.  Developing forms and procedures that provide an

  4  insurer with the information necessary to determine whether

  5  the insurer wants to write particular applicants to the plan

  6  or insureds of the plan.

  7         c.  Developing procedures for notice to the plan and

  8  the applicant to the plan or insured of the plan that an

  9  insurer will insure the applicant or the insured of the plan,

10  and notice of the cost of the coverage offered; and developing

11  procedures for the selection of an insuring entity by the

12  applicant or insured of the plan.

13         d.  Provide for a market-assistance plan to assist in

14  the placement of employers. All applications for coverage in

15  the plan received 45 days before the effective date for

16  coverage shall be processed through the market-assistance

17  plan. A market-assistance plan specifically designed to serve

18  the needs of small good policyholders as defined by the board

19  must be finalized by January 1, 1994.

20         5.  Provide for policy and claims services to the

21  insureds of the plan of the nature and quality provided for

22  insureds in the voluntary market.

23         6.  Provide for the review of applications for coverage

24  with the plan for reasonableness and accuracy, using any

25  available historic information regarding the insured.

26         7.  Provide for procedures for auditing insureds of the

27  plan which are based on reasonable business judgment and are

28  designed to maximize the likelihood that the plan will collect

29  the appropriate premiums.

30         8.  Authorize the plan to terminate the coverage of and

31  refuse future coverage for any insured that submits a

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  1  fraudulent application to the plan or provides fraudulent or

  2  grossly erroneous records to the plan or to any service

  3  provider of the plan in conjunction with the activities of the

  4  plan.

  5         9.  Establish service standards for agents who submit

  6  business to the plan.

  7         10.  Establish criteria and procedures to prohibit any

  8  agent who does not adhere to the established service standards

  9  from placing business with the plan or receiving, directly or

10  indirectly, any commissions for business placed with the plan.

11         11.  Provide for the establishment of reasonable safety

12  programs for all insureds in the plan. At the direction of the

13  board, the Division of Safety shall provide inspection to

14  insureds and applicants for coverage in the plan identified as

15  high-risk insureds by the board or its designee.

16         12.  Authorize the plan to terminate the coverage of

17  and refuse future coverage to any insured who fails to pay

18  premiums or surcharges when due; who, at the time of

19  application, is delinquent in payments of workers'

20  compensation or employer's liability insurance premiums or

21  surcharges owed to an insurer, group self-insurers' fund,

22  commercial self-insurance fund, or assessable mutual insurer

23  licensed to write such coverage in this state; or who refuses

24  to substantially comply with any safety programs recommended

25  by the plan.

26         13.  Authorize the board of governors to provide the

27  services required by the plan through staff employed by the

28  plan, through reasonably compensated service providers who

29  contract with the plan to provide services as specified by the

30  board of governors, or through a combination of employees and

31  service providers.

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  1         14.  Provide for service standards for service

  2  providers, methods of determining adherence to those service

  3  standards, incentives and disincentives for service, and

  4  procedures for terminating contracts for service providers

  5  that fail to adhere to service standards.

  6         15.  Provide procedures for selecting service providers

  7  and standards for qualification as a service provider that

  8  reasonably assure that any service provider selected will

  9  continue to operate as an ongoing concern and is capable of

10  providing the specified services in the manner required.

11         16.  Provide for reasonable accounting and

12  data-reporting practices.

13         17.  Provide for annual review of costs associated with

14  the administration and servicing of the policies issued by the

15  plan to determine alternatives by which costs can be reduced.

16         18.  Authorize the acquisition of such excess insurance

17  or reinsurance as is consistent with the purposes of the plan.

18         19.  Provide for an annual report to the department on

19  a date specified by the department and containing such

20  information as the department reasonably requires.

21         20.  Establish multiple rating plans for various

22  classifications of risk which reflect risk of loss, hazard

23  grade, actual losses, size of premium, and compliance with

24  loss control. At least one of such plans must be a

25  preferred-rating plan to accommodate small-premium

26  policyholders with good experience as defined in

27  sub-subparagraph 22.a.

28         21.  Establish agent commission schedules.

29         22.  Establish three subplans as follows:

30         a.  Subplan "A" must include those insureds whose

31  annual premium does not exceed $2,500 and who have neither

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  1  incurred any lost-time claims nor incurred medical-only claims

  2  exceeding 50 percent of their premium for the immediate 2

  3  years.

  4         b.  Subplan "B" must include insureds that are

  5  employers identified by the board of governors as high-risk

  6  employers due solely to the nature of the operations being

  7  performed by those insureds and for whom no market exists in

  8  the voluntary market, and whose experience modifications are

  9  less than 1.00.

10         c.  Subplan "C" must include all other insureds within

11  the plan.

12         Section 18.  This act shall take effect July 1 of the

13  year in which enacted.

14

15            *****************************************

16                          HOUSE SUMMARY

17
      Reorganizes the Department of Labor and Employment
18    Security as a decentralized agency.  Creates the
      positions of Assistant Secretary for Finance and
19    Administration, Assistant Secretary for Programs, and
      Assistant Secretary for Field Operations.  Establishes
20    requirements and responsibilities for each assistant and
      specifically requires that the individual appointed to
21    the role of Assistant Secretary for Finance and
      Administration have a complete understanding of modern
22    financial management practices.  Establishes the
      following offices with responsibilities under the
23    Assistant Secretary for Finance and Administration:
      Office of Comptroller, Office of Management and Budget,
24    and Office of Administration. Establishes the comptroller
      as the department's chief financial officer with specific
25    financial management requirements and provides specific
      qualifications of the individual appointed.  Establishes
26    five geographically based field offices to be under the
      direction of the Assistant Secretary for Field
27    Operations.  Establishes divisions within the central
      office to be under the direction of the Assistant
28    Secretary for Programs.  Provides that all actions
      required by the act are to be made within existing agency
29    resources.  See bill for details.

30

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