Senate Bill 2196

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    Florida Senate - 1999                                  SB 2196

    By Senator Thomas





    3-1309-99

  1                      A bill to be entitled

  2         An act relating to workers' compensation;

  3         amending s. 440.49, F.S.; deleting the

  4         prohibition against the administrator

  5         contracted to review claims of the Special

  6         Disability Trust Fund and the qualified entity

  7         assuming obligations of the fund being

  8         affiliates of one another or having agreements;

  9         providing an effective date.

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

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

14  440.49, Florida Statutes, 1998 Supplement, is amended to read:

15         440.49  Limitation of liability for subsequent injury

16  through Special Disability Trust Fund.--

17         (13)  SPECIAL DISABILITY TRUST FUND PRIVATIZATION

18  COMMISSION.--

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

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

21  Privatization Commission is authorized to contract with an

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

23  and litigate claims of the Special Disability Trust Fund under

24  this section.  The commission, in consultation with the

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

26  assume the reimbursement obligations of the Special Disability

27  Trust Fund for claims which have previously been accepted for

28  reimbursement by the Special Disability Trust Fund and claims

29  which are determined to be reimbursable by the Special

30  Disability Trust Fund.  The qualified entity and the

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

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    Florida Senate - 1999                                  SB 2196
    3-1309-99




  1  not establish or maintain a financial or contractual agreement

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

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

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

  5  transfer and assumption of liabilities, and administration of

  6  certain functions related to claims of the Special Disability

  7  Trust Fund. The administrator shall have experience in

  8  workers' compensation claims management of sufficient scope

  9  and size to undertake the duties and responsibilities of this

10  section and shall demonstrate the ability to meet the criteria

11  established by the commission, which shall include the ability

12  to substantially reduce the overall costs of reviewing and

13  reimbursing claims, and to settle and extinguish the

14  liabilities of the Special Disability Trust Fund in a more

15  cost-efficient and more timely manner than presently provided

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

17  Disabilities Trust Fund are transferred to and assumed by a

18  qualified entity, such entity shall provide the state with

19  financial assurance as to the satisfaction of any such

20  liabilities or claims and the state and the Special Disability

21  Trust Fund shall have no further liability with respect to

22  those liabilities and claims. The financial assurances may

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

24  guarantees, or letters of credit.

25         Section 2.  This act shall take effect upon becoming a

26  law.

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    Florida Senate - 1999                                  SB 2196
    3-1309-99




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  2                          SENATE SUMMARY

  3    Deletes the prohibition against the administrator that
      contracts with the Special Disability Trust Fund
  4    Privatization Commission to review, allow, deny,
      compromise, controvert, or litigate claims of the fund
  5    being affiliated with or a participant in a financial or
      contractual agreement with the qualified entity that
  6    contracts with the commission to assume certain
      obligations of the fund.
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