House Bill 2157

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







    Florida House of Representatives - 1999                HB 2157

        By Representative Goodlette






  1                      A bill to be entitled

  2         An act relating to the Special Disability Trust

  3         Fund Privatization Commission; amending s.

  4         440.49, F.S.; deleting a prohibition against

  5         certain contractors from being affiliated or

  6         entering into certain agreements together;

  7         providing an effective date.

  8

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

10

11         Section 1.  Paragraph (b) of subsection (13) of section

12  440.49, Florida Statutes, 1998 Supplement, is amended to read:

13         440.49  Limitation of liability for subsequent injury

14  through Special Disability Trust Fund.--

15         (13)  SPECIAL DISABILITY TRUST FUND PRIVATIZATION

16  COMMISSION.--

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

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

19  Privatization Commission is authorized to contract with an

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

21  and litigate claims of the Special Disability Trust Fund under

22  this section.  The commission, in consultation with the

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

24  assume the reimbursement obligations of the Special Disability

25  Trust Fund for claims which have previously been accepted for

26  reimbursement by the Special Disability Trust Fund and claims

27  which are determined to be reimbursable by the Special

28  Disability Trust Fund.  The qualified entity and the

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

30  not establish or maintain a financial or contractual agreement

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

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






    Florida House of Representatives - 1999                HB 2157

    704-113-99






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

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

  3  transfer and assumption of liabilities, and administration of

  4  certain functions related to claims of the Special Disability

  5  Trust Fund. The administrator shall have experience in

  6  workers' compensation claims management of sufficient scope

  7  and size to undertake the duties and responsibilities of this

  8  section and shall demonstrate the ability to meet the criteria

  9  established by the commission, which shall include the ability

10  to substantially reduce the overall costs of reviewing and

11  reimbursing claims, and to settle and extinguish the

12  liabilities of the Special Disability Trust Fund in a more

13  cost-efficient and more timely manner than presently provided

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

15  Disabilities Trust Fund are transferred to and assumed by a

16  qualified entity, such entity shall provide the state with

17  financial assurance as to the satisfaction of any such

18  liabilities or claims and the state and the Special Disability

19  Trust Fund shall have no further liability with respect to

20  those liabilities and claims. The financial assurances may

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

22  guarantees, or letters of credit.

23         Section 2.  This act shall take effect July 1, 1999.

24

25            *****************************************

26                          HOUSE SUMMARY

27
      Deletes a prohibition against an administrator,
28    contracted by the Special Disability Trust Fund
      Privatization Commission to administrate claims of the
29    fund, and an entity, contracted by such administrator to
      assume reimbursement obligations of the fund for claims,
30    to be affiliated or to establish or maintain financial or
      contractual agreements with each other.
31

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