CODING: Words stricken are deletions; words underlined are additions.





                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
                                   .
                                   .
 1                                 .
                                   .
 2                                 .
                                   .
 3                                 .
                                   .
 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) Safley offered the following:

12

13         Amendment (with title amendment) 

14         On page 6, between lines 5 & 6

15

16  insert:

17         Section 5.  Section 440.49, Florida Statutes, is

18  amended to read:

19         440.49  Limitation of liability for subsequent injury

20  through Special Disability Trust Fund.--

21         (1)  LEGISLATIVE INTENT.--Whereas it is often difficult

22  for workers with disabilities to achieve employment or to

23  become reemployed following an injury, and it is the desire of

24  the Legislature to facilitate the return of these workers to

25  the workplace, it is the purpose of this section to encourage

26  the employment, reemployment, and accommodation of the

27  physically disabled by reducing an employer's insurance

28  premium for reemploying an injured worker, to decrease

29  litigation between carriers on apportionment issues, and to

30  protect employers from excess liability for compensation and

31  medical expense when an injury to a physically disabled worker

                                  1

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  merges with, aggravates, or accelerates her or his preexisting

 2  permanent physical impairment to cause either a greater

 3  disability or permanent impairment, or an increase in

 4  expenditures for temporary compensation or medical benefits

 5  than would have resulted from the injury alone. The division

 6  or the administrator shall inform all employers of the

 7  existence and function of the fund and shall interpret

 8  eligibility requirements liberally. However, this subsection

 9  shall not be construed to create or provide any benefits for

10  injured employees or their dependents not otherwise provided

11  by this chapter. The entitlement of an injured employee or her

12  or his dependents to compensation under this chapter shall be

13  determined without regard to this subsection, the provisions

14  of which shall be considered only in determining whether an

15  employer or carrier who has paid compensation under this

16  chapter is entitled to reimbursement from the Special

17  Disability Trust Fund.

18         (2)  DEFINITIONS.--As used in this section, the term:

19         (a)  "Permanent physical impairment" means and is

20  limited to the conditions listed in paragraph (6)(a).

21         (b)  "Preferred worker" means a worker who, because of

22  a permanent impairment resulting from a compensable injury or

23  occupational disease, is unable to return to the worker's

24  regular employment.

25         (c)  "Merger" describes or means that:

26         1.  If the permanent physical impairment had not

27  existed, the subsequent accident or occupational disease would

28  not have occurred;

29         2.  The permanent disability or permanent impairment

30  resulting from the subsequent accident or occupational disease

31  is materially and substantially greater than that which would

                                  2

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  have resulted had the permanent physical impairment not

 2  existed, and the employer has been required to pay, and has

 3  paid, permanent total disability or permanent impairment

 4  benefits for that materially and substantially greater

 5  disability;

 6         3.  The preexisting permanent physical impairment is

 7  aggravated or accelerated as a result of the subsequent injury

 8  or occupational disease, or the preexisting impairment has

 9  contributed, medically and circumstantially, to the need for

10  temporary compensation, medical, or attendant care and the

11  employer has been required to pay, and has paid, temporary

12  compensation, medical, or attendant care benefits for the

13  aggravated preexisting permanent impairment; or

14         4.  Death would not have been accelerated if the

15  permanent physical impairment had not existed.

16         (d)  "Excess permanent compensation" means that

17  compensation for permanent impairment, or permanent total

18  disability or death benefits, for which the employer or

19  carrier is otherwise entitled to reimbursement from the

20  Special Disability Trust Fund.

21         (e)  "Administrator" means the entity selected by the

22  commission to review, allow, deny, compromise, controvert, and

23  litigate claims of the Special Disability Trust Fund.

24         (f)  "Corporation" means the Special Disability Trust

25  Fund Financing Corporation, as created under subsection (14).

26         (g)  "Commission" means the Special Disability Trust

27  Fund Privatization Commission, as created under subsection

28  (13).

29         (3)  DEDUCTIBLE.--Reimbursement may not be obtained for

30  the first $10,000 of benefits paid which otherwise qualify for

31  reimbursement under this section. This deductible does not

                                  3

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  apply to claims by employers for reimbursement under

 2  subparagraph (b)3.

 3         (4)  PERMANENT IMPAIRMENT OR PERMANENT TOTAL

 4  DISABILITY, TEMPORARY BENEFITS, MEDICAL BENEFITS, OR ATTENDANT

 5  CARE AFTER OTHER PHYSICAL IMPAIRMENT.--

 6         (a)  Permanent impairment.--If an employee who has a

 7  preexisting permanent physical impairment incurs a subsequent

 8  permanent impairment from injury or occupational disease

 9  arising out of, and in the course of, her or his employment

10  which merges with the preexisting permanent physical

11  impairment to cause a permanent impairment, the employer

12  shall, in the first instance, pay all benefits provided by

13  this chapter; but, subject to the limitations specified in

14  subsection (6), such employer shall be reimbursed from the

15  Special Disability Trust Fund created by subsection (8) for 50

16  percent of all impairment benefits which the employer has been

17  required to provide pursuant to s. 440.15(3)(a) as a result of

18  the subsequent accident or occupational disease.

19         (b)  Permanent total disability.--If an employee who

20  has a preexisting permanent physical impairment incurs a

21  subsequent permanent impairment from injury or occupational

22  disease arising out of, and in the course of, her or his

23  employment which merges with the preexisting permanent

24  physical impairment to cause permanent total disability, the

25  employer shall, in the first instance, pay all benefits

26  provided by this chapter; but, subject to the limitations

27  specified in subsection (6), such employer shall be reimbursed

28  from the Special Disability Trust Fund created by subsection

29  (8) for 50 percent of all compensation for permanent total

30  disability.

31         (c)  Temporary compensation and medical benefits;

                                  4

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  aggravation or acceleration of preexisting condition or

 2  circumstantial causation.--If an employee who has a

 3  preexisting permanent physical impairment experiences an

 4  aggravation or acceleration of the preexisting permanent

 5  physical impairment as a result of an injury or occupational

 6  disease arising out of and in the course of her or his

 7  employment, or suffers an injury as a result of a merger as

 8  defined in subparagraph (1)(b)2., the employer shall provide

 9  all benefits provided by this chapter, but, subject to the

10  limitations specified in subsection (7), the employer shall be

11  reimbursed by the Special Disability Trust Fund created by

12  subsection (8) for 50 percent of its payments for temporary,

13  medical, and attendant care benefits.

14         (5)  WHEN DEATH RESULTS.--If death results from the

15  subsequent permanent impairment contemplated in paragraph (c)

16  within 1 year after the subsequent injury, or within 5 years

17  after the subsequent injury when disability has been

18  continuous since the subsequent injury, and it is determined

19  that the death resulted from a merger, the employer shall, in

20  the first instance, pay the funeral expenses and the death

21  benefits prescribed by this chapter; but, subject to the

22  limitations specified in subsection (6), she or he shall be

23  reimbursed from the Special Disability Trust Fund created by

24  subsection (8) for the last 50 percent of all compensation

25  allowable and paid for such death and for 50 percent of the

26  amount paid as funeral expenses.

27         (6)  EMPLOYER KNOWLEDGE, EFFECT ON REIMBURSEMENT.--

28         (a)  Reimbursement is not allowed under this section

29  unless it is established that the employer knew of the

30  preexisting permanent physical impairment prior to the

31  occurrence of the subsequent injury or occupational disease,

                                  5

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  and that the permanent physical impairment is one of the

 2  following:

 3         1.  Epilepsy.

 4         2.  Diabetes.

 5         3.  Cardiac disease.

 6         4.  Amputation of foot, leg, arm, or hand.

 7         5.  Total loss of sight of one or both eyes or a

 8  partial loss of corrected vision of more than 75 percent

 9  bilaterally.

10         6.  Residual disability from poliomyelitis.

11         7.  Cerebral palsy.

12         8.  Multiple sclerosis.

13         9.  Parkinson's disease.

14         10.  Meniscectomy.

15         11.  Patellectomy.

16         12.  Ruptured cruciate ligament.

17         13.  Hemophilia.

18         14.  Chronic osteomyelitis.

19         15.  Surgical or spontaneous fusion of a major

20  weight-bearing joint.

21         16.  Hyperinsulinism.

22         17.  Muscular dystrophy.

23         18.  Thrombophlebitis.

24         19.  Herniated intervertebral disk.

25         20.  Surgical removal of an intervertebral disk or

26  spinal fusion.

27         21.  One or more back injuries or a disease process of

28  the back resulting in disability over a total of 120 or more

29  days, if substantiated by a doctor's opinion that there was a

30  preexisting impairment to the claimant's back.

31         22.  Total deafness.

                                  6

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         23.  Mental retardation, provided the employee's

 2  intelligence quotient is such that she or he falls within the

 3  lowest 2 percentile of the general population. However, it

 4  shall not be necessary for the employer to know the employee's

 5  actual intelligence quotient or actual relative ranking in

 6  relation to the intelligence quotient of the general

 7  population.

 8         24.  Any permanent physical condition which, prior to

 9  the industrial accident or occupational disease, constitutes a

10  20-percent impairment of a member or of the body as a whole.

11         25.  Obesity, provided the employee is 30 percent or

12  more over the average weight designated for her or his height

13  and age in the Table of Average Weight of Americans by Height

14  and Age prepared by the Society of Actuaries using data from

15  the 1979 Build and Blood Pressure Study.

16         26.  Any permanent physical impairment as defined in s.

17  440.15(3) which is a result of a prior industrial accident

18  with the same employer or the employer's parent company,

19  subsidiary, sister company, or affiliate located within the

20  geographical boundaries of this state.

21         (b)  The Special Disability Trust Fund is not liable

22  for any costs, interest, penalties, or attorneys' fees.

23         (c)  An employer's or carrier's right to apportionment

24  or deduction pursuant to ss. 440.02(1), 440.15(5)(b), and

25  440.151(1)(c) does not preclude reimbursement from such fund,

26  except when the merger comes within the definition of

27  subparagraph (2)(b)2. and such apportionment or deduction

28  relieves the employer or carrier from providing the materially

29  and substantially greater permanent disability benefits

30  otherwise contemplated in those paragraphs.

31         (7)  REIMBURSEMENT OF EMPLOYER.--

                                  7

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (a)  The right to reimbursement as provided in this

 2  section is barred unless written notice of claim of the right

 3  to such reimbursement is filed by the employer or carrier

 4  entitled to such reimbursement with the division or

 5  administrator at Tallahassee within 2 years after the date the

 6  employee last reached maximum medical improvement, or within 2

 7  years after the date of the first payment of compensation for

 8  permanent total disability, wage loss, or death, whichever is

 9  later. The notice of claim must contain such information as

10  the division by rule requires or as established by the

11  administrator; and the employer or carrier claiming

12  reimbursement shall furnish such evidence in support of the

13  claim as the division or administrator reasonably may require.

14         (b)  For notice of claims on the Special Disability

15  Trust Fund filed on or after July 1, 1978, the Special

16  Disability Trust Fund shall, within 120 days after receipt of

17  notice that a carrier has paid, been required to pay, or

18  accepted liability for excess compensation, serve notice of

19  the acceptance of the claim for reimbursement.

20         (c)  A proof of claim must be filed on each notice of

21  claim on file as of June 30, 1997, within 1 year after July 1,

22  1997, or the right to reimbursement of the claim shall be

23  barred. A notice of claim on file on or before June 30, 1997,

24  may be withdrawn and refiled if, at the time refiled, the

25  notice of claim remains within the limitation period specified

26  in paragraph (a).  Such refiling shall not toll, extend, or

27  otherwise alter in any way the limitation period applicable to

28  the withdrawn and subsequently refiled notice of claim. Each

29  proof of claim filed shall be accompanied by a proof-of-claim

30  fee as provided in paragraph (9)(d). The Special Disability

31  Trust Fund shall, within 120 days after receipt of the proof

                                  8

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  of claim, serve notice of the acceptance of the claim for

 2  reimbursement. This paragraph shall apply to all claims

 3  notwithstanding the provisions of subsection (12).

 4         (d)  Each notice of claim filed or refiled on or after

 5  July 1, 1997, must be accompanied by a notification fee as

 6  provided in paragraph (9)(d).  A proof of claim must be filed

 7  within 1 year after the date the notice of claim is filed or

 8  refiled, accompanied by a proof-of-claim fee as provided in

 9  paragraph (9)(d), or the claim shall be barred.  The

10  notification fee shall be waived if both the notice of claim

11  and proof of claim are submitted together as a single filing.

12  The Special Disability Trust Fund shall, within 180 days after

13  receipt of the proof of claim, serve notice of the acceptance

14  of the claim for reimbursement.  This paragraph shall apply to

15  all claims notwithstanding the provisions of subsection (12).

16         (e)  For dates of accident on or after January 1, 1994,

17  the Special Disability Trust Fund shall, within 120 days of

18  receipt of notice that a carrier has been required to pay, and

19  has paid over $10,000 in benefits, serve notice of the

20  acceptance of the claim for reimbursement. Failure of the

21  Special Disability Trust Fund to serve notice of acceptance

22  shall give rise to the right to request a hearing on the claim

23  for reimbursement. If the Special Disability Trust Fund

24  through its representative denies or controverts the claim,

25  the right to such reimbursement shall be barred unless an

26  application for a hearing thereon is filed with the division

27  or administrator at Tallahassee within 60 days after notice to

28  the employer or carrier of such denial or controversion. When

29  such application for a hearing is timely filed, the claim

30  shall be heard and determined in accordance with the procedure

31  prescribed in s. 440.25, to the extent that such procedure is

                                  9

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  applicable, and in accordance with the workers' compensation

 2  rules of procedure. In such proceeding on a claim for

 3  reimbursement, the Special Disability Trust Fund shall be made

 4  the party respondent, and no findings of fact made with

 5  respect to the claim of the injured employee or the dependents

 6  for compensation, including any finding made or order entered

 7  pursuant to s. 440.20(12), shall be res judicata. The Special

 8  Disability Trust Fund may not be joined or made a party to any

 9  controversy or dispute between an employee and the dependents

10  and the employer or between two or more employers or carriers

11  without the written consent of the fund.

12         (f)  When it has been determined that an employer or

13  carrier is entitled to reimbursement in any amount, the

14  employer or carrier shall be reimbursed annually from the

15  Special Disability Trust Fund for the compensation and medical

16  benefits paid by the employer or carrier for which the

17  employer or carrier is entitled to reimbursement, upon filing

18  request therefor and submitting evidence of such payment in

19  accordance with rules prescribed by the division, which rules

20  may include parameters for annual audits. The Special

21  Disability Trust Fund shall pay the approved reimbursement

22  requests on a first-in, first-out basis reflecting the order

23  in which the reimbursement requests were received.

24         (8)  PREFERRED WORKER PROGRAM.--The division or

25  administrator shall issue identity cards to preferred workers

26  upon request by qualified employees and shall reimburse an

27  employer, from the Special Disability Trust Fund, for the cost

28  of workers' compensation premium related to the preferred

29  workers payroll for up to 3 years of continuous employment

30  upon satisfactory evidence of placement and issuance of

31  payroll and classification records and upon the employee's

                                  10

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  certification of employment.

 2         (9)  SPECIAL DISABILITY TRUST FUND.--

 3         (a)  There is established in the State Treasury a

 4  special fund to be known as the "Special Disability Trust

 5  Fund," which shall be available only for the purposes stated

 6  in this section; and the assets thereof may not at any time be

 7  appropriated or diverted to any other use or purpose. The

 8  Treasurer shall be the custodian of such fund, and all moneys

 9  and securities in such fund shall be held in trust by such

10  Treasurer and shall not be the money or property of the state.

11  The Treasurer is authorized to disburse moneys from such fund

12  only when approved by the division or corporation and upon the

13  order of the Comptroller. The Treasurer shall deposit any

14  moneys paid into such fund into such depository banks as the

15  division or corporation may designate and is authorized to

16  invest any portion of the fund which, in the opinion of the

17  division, is not needed for current requirements, in the same

18  manner and subject to all the provisions of the law with

19  respect to the deposits of state funds by such Treasurer. All

20  interest earned by such portion of the fund as may be invested

21  by the Treasurer shall be collected by her or him and placed

22  to the credit of such fund.

23         (b)1.  The Special Disability Trust Fund shall be

24  maintained by annual assessments upon the insurance companies

25  writing compensation insurance in the state, the commercial

26  self-insurers under ss. 624.462 and 624.4621, the assessable

27  mutuals under s. 628.601, and the self-insurers under this

28  chapter, which assessments shall become due and be paid

29  quarterly at the same time and in addition to the assessments

30  provided in s. 440.51. The division shall estimate annually in

31  advance the amount necessary for the administration of this

                                  11

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  subsection and the maintenance of this fund and shall make

 2  such assessment in the manner hereinafter provided.

 3         2.  The annual assessment shall be calculated to

 4  produce during the ensuing fiscal year an amount which, when

 5  combined with that part of the balance in the fund on June 30

 6  of the current fiscal year which is in excess of $100,000, is

 7  equal to the average of:

 8         a.  The sum of disbursements from the fund during the

 9  immediate past 3 calendar years, and

10         b.  Two times the disbursements of the most recent

11  calendar year.

12

13  Such amount shall be prorated among the insurance companies

14  writing compensation insurance in the state and the

15  self-insurers.

16         3.  The net premiums written by the companies for

17  workers' compensation in this state and the net premium

18  written applicable to the self-insurers in this state are the

19  basis for computing the amount to be assessed as a percentage

20  of net premiums. Such payments shall be made by each insurance

21  company and self-insurer to the division for the Special

22  Disability Trust Fund in accordance with such regulations as

23  the division prescribes.

24         4.  The Treasurer is authorized to receive and credit

25  to such Special Disability Trust Fund any sum or sums that may

26  at any time be contributed to the state by the United States

27  under any Act of Congress, or otherwise, to which the state

28  may be or become entitled by reason of any payments made out

29  of such fund.

30         (c)  Notwithstanding the Special Disability Trust Fund

31  assessment rate calculated pursuant to this section, the rate

                                  12

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  assessed shall not exceed 4.52 percent.

 2         (d)  The Special Disability Trust Fund shall be

 3  supplemented by a $250 notification fee on each notice of

 4  claim filed or refiled after July 1, 1997, and a $500 fee on

 5  each proof of claim filed in accordance with subsection (7).

 6  Revenues from the fee shall be deposited into the Special

 7  Disability Trust Fund and are exempt from the deduction

 8  required by s. 215.20. The fees provided in this paragraph

 9  shall not be imposed upon any insurer which is in receivership

10  with the Department of Insurance.

11         (e)  The Department of Labor and Employment Security or

12  administrator shall report annually on the status of the

13  Special Disability Trust Fund.  The report shall update the

14  estimated undiscounted and discounted fund liability, as

15  determined by an independent actuary the projected change in

16  fund liability, change in the total number of notices of claim

17  on file with the fund in addition to the number of newly filed

18  notices of claim, change in the number of proofs of claim

19  processed by the fund, and the fee revenues refunded and

20  revenues applied to pay down the liability of the fund, the

21  average time required to reimburse accepted claims, and the

22  average administrative costs per claim.  The department or

23  administrator shall submit its initial report to the Governor,

24  the President of the Senate, and the Speaker of the House of

25  Representatives by March 1, 1998, for the period ending

26  February 1, 1998, with additional reports submitted by

27  December 1 of each year, 1998, and December 1, 1999.

28         (10)  DIVISION ADMINISTRATION OF FUND; CLAIMS; ADVISORY

29  COMMITTEE; EXPENSES.--The division or administrator shall

30  administer the Special Disability Trust Fund with authority to

31  allow, deny, compromise, controvert, and litigate claims made

                                  13

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  against it and to designate an attorney to represent it in

 2  proceedings involving claims against the fund, including

 3  negotiation and consummation of settlements, hearings before

 4  judges of compensation claims, and judicial review. The

 5  division or administrator or the attorney designated by it

 6  shall be given notice of all hearings and proceedings

 7  involving the rights or obligations of such fund and shall

 8  have authority to make expenditures for such medical

 9  examinations, expert witness fees, depositions, transcripts of

10  testimony, and the like as may be necessary to the proper

11  defense of any claim. The division shall appoint an advisory

12  committee composed of representatives of management,

13  compensation insurance carriers, and self-insurers to aid it

14  in formulating policies with respect to conservation of the

15  fund, who shall serve without compensation for such terms as

16  specified by it, but be reimbursed for travel expenses as

17  provided in s. 112.061. All expenditures made in connection

18  with conservation of the fund, including the salary of the

19  attorney designated to represent it and necessary travel

20  expenses, shall be allowed and paid from the Special

21  Disability Trust Fund as provided in this section upon the

22  presentation of itemized vouchers therefor approved by the

23  division.

24         (11)  EFFECTIVE DATES.--This section does not apply to

25  any case in which the accident causing the subsequent injury

26  or death or the disablement or death from a subsequent

27  occupational disease occurred prior to July 1, 1955, or on or

28  after January 1, 1998.  In no event shall the Special

29  Disability Trust Fund be liable for, or reimburse employers or

30  carriers for, any case in which the accident causing the

31  subsequent injury or death or the disablement or death from a

                                  14

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  subsequent occupational disease occurred on or after January

 2  1, 1998.  The Special Disability Trust Fund shall continue to

 3  reimburse employers or carriers for subsequent injuries

 4  occurring prior to January 1, 1998, and the division shall

 5  continue to assess for and the division or administrator shall

 6  fund reimbursements as provided in subsection (9) for this

 7  purpose.

 8         (12)  REIMBURSEMENT FROM THE SPECIAL DISABILITY TRUST

 9  FUND.--The applicable law for the purposes of determining

10  entitlement to reimbursement from the Special Disability Trust

11  Fund is the law in effect on the date the accident occurred.

12         (13)(a)  The Special Disability Trust Fund

13  Privatization Commission is created to evaluate and determine

14  the feasibility of privatizing the Special Disability Trust

15  Fund.  The commission shall determine the liabilities of the

16  fund and the costs to presently administer the Special

17  Disability Trust Fund.  The commission may develop and issue a

18  request for proposal to transfer the liabilities of the

19  Special Disability Trust Fund to a qualified entity.  The

20  commission is authorized to select and contract with a

21  qualified entity, only if the commission determines that such

22  an arrangement would substantially reduce the costs and be

23  more effective than the current administration of the Special

24  Disability Trust Fund.  The commission may adopt rules

25  necessary for the performance of its assigned duties and

26  responsibilities.

27         (b)  Consistent with the closing of the fund provided

28  in subsection (11), the Special Disability Trust Fund

29  Privatization Commission is authorized to contract with an

30  administrator to review, allow, deny, compromise, controvert,

31  and litigate claims of the Special Disability Trust Fund under

                                  15

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  this section.  The Commission, in consultation with the

 2  division, is authorized to contract with a qualified entity to

 3  assume the reimbursement obligations of the Special Disability

 4  Trust Fund for claims which have previously have accepted for

 5  reimbursement by the Special Disability Trust Fund and claims

 6  which are determined to be reimbursable by the Special

 7  Disability Trust Fund.  The qualified entity and the

 8  administrator shall not be affiliates of the other, and shall

 9  not establish or maintain a financial or contractual agreement

10  with each other for purposes of this section. On or before

11  July 1, 1999, the commission, in consultation with the

12  division, may develop and issue a request for proposal for the

13  transfer and assumption of liabilities, and administration of

14  certain functions related to claims of the Special Disability

15  Trust Fund. The administrator shall have experience in

16  workers' compensation claims management of sufficient scope

17  and size to undertake the duties and responsibilities of this

18  section and shall demonstrate the ability to meet the criteria

19  established by the commission, which shall include the ability

20  to substantially reduce the overall costs of reviewing and

21  reimbursing claims, and to settle and extinguish the

22  liabilities of the Special Disability Trust Fund in a more

23  cost efficient and more timely manner than presently provided

24  by the division. In the event liabilities on the Special

25  Disabilities Trust Fund are transferred to and assumed by a

26  qualified entity, such entity shall provide the state with

27  financial assurance as to the satisfaction of any such

28  liabilities or claims and the state and the Special Disability

29  Trust Fund shall have no further liability with respect to

30  those liabilities and claims. The financial assurances may

31  include, but are not limited to, cash reserves, reinsurance,

                                  16

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  guarantees, or letters of credit.

 2         (c)  The commission shall be composed of three members,

 3  one member selected by the Governor; one selected by the

 4  Insurance Commissioner; and one selected by the Comptroller.

 5         (d)  The commission is authorized to appoint and employ

 6  such officers, agents, and employees as the commission deems

 7  advisable to operate and manage the affairs of the commission,

 8  which officers, agents, and employees may be employees of the

 9  division or the State Board of Administration. The commission

10  shall contract with consultants deemed necessary to determine

11  the liabilities of the Special Disability Trust Fund, as of

12  December 31, 1998, and the feasibility of privatizing the

13  Special Disability Trust Fund.

14         (14)  Florida Special Disability Trust Fund Financing

15  Corporation.--

16         (a)  The Legislature finds that:

17         1.  The liabilities of the Special Disability Trust

18  Fund are substantial and that the extinguishment of these

19  liabilities in a cost effective and timely manner are of

20  paramount importance to the state. In connection therewith, in

21  the event that the commission determines that it is more cost

22  effective and in the best interest of the Special Disabilities

23  Trust Fund and the state to finance the liabilities of the

24  Special Disabilities Trust Fund through the issuance of bonds,

25  notes or other evidence of indebtedness, it shall request the

26  assistance of the corporation to issue such bonds, notes or

27  other evidences of indebtedness.

28         2.  The Legislature finds that the creation of a public

29  benefits corporation and the issuance of bonds or other forms

30  of indebtedness under this section is consistent with the

31  underlying public purpose of reducing and ultimately

                                  17

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  eliminating the liabilities of the Special Disability Trust

 2  Fund. The purpose of the corporation and the subsequent bond

 3  issuance is to fund and pay the liabilities of the Special

 4  Disability Trust Fund, ensure the existence of a sufficient

 5  funding source for reimbursements to employers and carriers,

 6  and reduce the overall costs of the program provided by the

 7  state by employers and carriers.

 8         (b)  In the event the commission determines that it is

 9  more cost effective and in the best interest of the Special

10  Disability Trust Fund, the state, insurers, and employers to

11  finance the liabilities of the Special Disability Trust Fund

12  through the issuance of bonds, notes, or other evidences of

13  indebtedness, there is created a public benefits corporation

14  to be known as the Special Disability Trust Fund Financing

15  Corporation.

16         1.  The corporation shall operate under a three-member

17  board of directors consisting of the Governor or a designee,

18  the Treasurer or a designee, and the Comptroller or a

19  designee.

20         2.  The corporation has all of the powers of

21  corporations under chapter 607 and under chapter 617.

22         3.  The corporation may issue bonds, notes, or other

23  evidences of indebtedness and engage in such other financial

24  transactions as are necessary to provide sufficient funds to

25  achieve the purposes of this section.

26         4.  The corporation may invest in any of the

27  investments authorized under s. 215.47.

28         5.  There shall be no liability on the part of, and no

29  cause of action shall arise against, any board members or

30  employees of the corporation or the state for any actions

31  taken by them in the performance of their duties under this

                                  18

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  paragraph.

 2         6.  The corporation may appoint and employ such

 3  officers, agents, and employees as the corporation deems

 4  advisable to operate and manage the affairs of the

 5  corporation, which officers, agents, and employees may be

 6  employees of the division or the State Board of

 7  Administration. The administrative costs and fees incurred by

 8  the corporation, and employee salaries, shall be paid from

 9  bond revenues.  The corporation and the division shall have

10  the power to contract with each other for expenses incurred in

11  connection with the transfer, assumption, and settlement of

12  liabilities of the Special Disability Trust Fund.

13         7.  In addition to bonding, the corporation may also

14  borrow from, or enter into other financing arrangements with,

15  any market sources at interest rates not exceeding prevailing

16  interest rates.

17         (c)1.  The proceeds of revenue bonds issued by this

18  corporation may be used to pay obligations of the Special

19  Disability Trust Fund made pursuant to this section; to

20  finance or replace previously existing borrowings or financial

21  arrangements; to pay interest on bonds; to fund reserves for

22  the bonds; to pay expenses incident to the issuance or sale of

23  any bonds issued under this subsection, or for such other

24  purposes related to the financial obligations of the Special

25  Disability Trust Fund as the corporation may determine. The

26  corporation may pledge all or a portion of the revenues

27  collected under subsection (9) to secure such revenue bonds,

28  and may execute such agreements between the corporation and

29  the division, necessary or desirable in connection with the

30  issuance of any revenue bonds.

31         2.  The corporation may contract with the State Board

                                  19

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  of Administration to serve as trustee with respect to debt

 2  obligations issued by the corporation as provided by this

 3  section and to hold, administer, and invest proceeds of such

 4  debt obligations and other funds of the corporation. The State

 5  Board of Administration may perform such services and may

 6  contract with others to provide all or a part of such services

 7  and to recover the costs and expenses of providing such

 8  services.  The investment of proceeds of debt obligations or

 9  other funds of the corporation and contracts of funds held in

10  trust by the State Board of Administration, whether directly

11  or indirectly related to the investments or contracts, are

12  exempt from the provisions of chapter 287.

13         (d)1.  Revenue bonds may not be issued under this

14  subsection until validated under chapter 75. In any suit,

15  action, or proceeding involving the validity or enforceability

16  of any bond issued under this subsection, or the security

17  therefor, any such bond reciting in substance that it has been

18  issued by the corporation in connection with any purpose of

19  this section shall be conclusively deemed to have been carried

20  out in accordance with the mandates herein. In actions under

21  chapter 75 to validate any bonds issued by the corporation,

22  the notice required by s. 75.06 shall be published only in

23  Leon County and in two newspapers of general circulation in

24  the state, and the complaint and order of the court shall be

25  served only on the State Attorney of the Second Judicial

26  Circuit. The validation of at least the first obligations

27  incurred pursuant to this subsection shall be appealed to the

28  Supreme Court, to be handled on an expedited basis.

29         2.  The state hereby covenants with holders of bonds of

30  the corporation that the state will not repeal or abrogate the

31  power of the division to levy the assessments and to collect

                                  20

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  the proceeds of the revenues pledged to the payment of such

 2  bonds as long as any such bonds remain outstanding unless

 3  adequate provision has been made for the payment of such bonds

 4  pursuant to the documents authorizing the issuance of such

 5  bonds.

 6         3.  The corporation and its corporate existence shall

 7  continue until terminated by law; however, no such law shall

 8  take effect as long as the corporation has bonds outstanding

 9  unless adequate provision has been made for the payment of

10  such bonds pursuant to the documents authorizing the issuance

11  of such bonds. Upon termination of the existence of the

12  corporation, all of its rights and properties in excess of its

13  obligations shall pass to and be vested in the state.

14         (e)1.  The funds, credit, property, or taxing power of

15  the state or political subdivisions of the state shall not be

16  pledged for the payment of such bonds. The bonds of the

17  corporation are not a debt of the state or of any political

18  subdivision, and neither the state nor any political

19  subdivision is liable on such bonds. The corporation does not

20  have the power to pledge the credit, the revenues, or the

21  taxing power of the state or of any political subdivision. The

22  credit, revenues, or taxing power of the state or of any

23  political subdivision shall not be deemed to be pledged to the

24  payment of any bonds of the corporation. However, bonds issued

25  under this subsection are declared to be for an essential

26  public and governmental purpose.

27         2.  The property, revenues, and other assets of the

28  corporation; the transactions and operations of the

29  corporation and the income from such transactions and

30  operations; and all bonds issued under this paragraph and the

31  interest on such bonds, which is exempt from income taxes of

                                  21

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  the United States, are exempt from taxation by the state and

 2  any political subdivision, including, but not limited to, the

 3  intangibles tax under chapter 199, the income tax under

 4  chapter 220, and the premium tax under the Florida Insurance

 5  Code. This exemption does not apply to any tax imposed by

 6  chapter 220 on interest income or profits on debt obligations

 7  owned by corporations other than the Special Disability Trust

 8  Fund Financing Corporation. The corporation is not subject to

 9  the reporting requirements mandated by the Florida Insurance

10  Code.

11         (f)  All bonds of the corporation shall be and

12  constitute legal investments without limitation for all public

13  bodies of this state; for all banks, trust companies, savings

14  banks, savings associations, savings and loan associations,

15  and investment companies; for all administrators, executors,

16  trustees, and other fiduciaries; for all insurance companies

17  and associations and other persons carrying on an insurance

18  business; and for all other persons who are now or may

19  hereafter be authorized to invest in bonds or other

20  obligations of the state and shall be and constitute eligible

21  securities to be deposited as collateral for the security of

22  any state, county, municipal, or other public funds. This

23  paragraph shall be considered as additional and supplemental

24  authority and shall not be limited without specific reference

25  to this paragraph.

26         (g)  In the event the commission selects a qualified

27  entity to assume all or some of the liabilities of the Special

28  Disability Trust Fund, all or any portion of the monetary

29  assets and claims liabilities held in and accruing to the

30  Special Disability Trust Fund may, with the agreement of the

31  corporation or the administrator, be transferred to and fully

                                  22

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  assumed by the corporation or the qualified entity. As

 2  provided in an agreement with the corporation or the qualified

 3  entity, subsequent assessments under subsection (9) shall be

 4  collected by the division, deposited into the Special

 5  Disability Trust Fund, and used exclusively for the debt

 6  service of the bonds issued by the corporation, the payment of

 7  outstanding liabilities of the Special Disability Trust Fund

 8  not assumed by the corporation or the qualified entity, and

 9  expenses of the corporation.

10         (h)  The administrator is prohibited from reviewing,

11  auditing, litigating, reimbursing, or settling any pending or

12  future claim or liability of its affiliates or subsidiaries.

13  The administrator is required to subcontract the

14  responsibility of reviewing, auditing, litigating,

15  reimbursing, or settling such a claim or liability.

16         (i)  The Auditor General is authorized to examine and

17  audit the records and accounts of the corporation.

18         Section 6.  There is hereby appropriated $200,000 from

19  the Special Disability Trust Fund to the Special Disability

20  Trust Fund Privatization Commission to implement this act.

21

22

23  ================ T I T L E   A M E N D M E N T ===============

24  And the title is amended as follows:

25         On page 1, line 14

26

27  after the semicolon, insert:

28         amending s. 440.49, F.S., creating the Special

29         Disability Trust Fund Privatization Commission;

30         providing purpose; providing for members;

31         providing duties; providing for adoption of

                                  23

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765




                                                   HOUSE AMENDMENT

                                        Bill No. HB 4815, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         rules; creating the Special Disability Trust

 2         Fund Financing Corporation; providing purposes;

 3         providing for a board of directors; providing

 4         powers and duties of the corporation;

 5         authorizing the Division of Workers'

 6         Compensation to enter into service contracts

 7         for certain purposes; authorizing the

 8         corporation to issue evidences of indebtedness;

 9         authorizing the corporation to validate bond

10         obligations; exempting the corporation from

11         certain taxes and assessments; providing

12         application; providing for reversion of the

13         assets to the State upon dissolution of the

14         corporation; providing for the State Board of

15         Administration to be a trustee of the

16         corporation's securities; authorizing the

17         commission to issue a request for proposal for

18         administration of the claims of the fund;

19         authorizing the transfer and assumption of the

20         liabilities of the Special Disability Trust

21         Fund to a qualified entity if it is determined

22         by the commission that such an arrangement

23         would be more cost effective than the current

24         administration by the division; authorizing the

25         Auditor General to examine and audit the

26         records of the corporation; providing an

27         appropriation;

28

29

30

31

                                  24

    File original & 9 copies    04/27/98
    hfs0004                     03:58 pm         04815-0048-980765