House Bill 1923

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    Florida House of Representatives - 2000                HB 1923

        By the Committee on General Appropriations and
    Representative Pruitt





  1                      A bill to be entitled

  2         An act relating to lawsuits involving the

  3         executive branch; amending s. 45.062, F.S.;

  4         providing additional requirements with respect

  5         to notification of certain settlements or

  6         orders; providing that certain settlements or

  7         orders shall be contingent upon and subject to

  8         legislative appropriation or statutory

  9         amendment; providing for the disposition of

10         funds; providing legislative intent; amending

11         s. 216.023, F.S.; providing for an inventory of

12         all litigation in which an agency is involved

13         that may require additional appropriations to

14         the agency or amendments to the law under which

15         the agency operates as a part of legislative

16         budget requests; amending s. 284.385, F.S.;

17         revising language with respect to the reporting

18         and handling of claims by the Department of

19         Insurance covered by the Florida Casualty

20         Insurance Risk Management Trust Fund; providing

21         an effective date.

22

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

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25         Section 1.  Section 45.062, Florida Statutes, is

26  amended to read:

27         45.062  Settlements, conditions, or orders when an

28  agency of the executive branch is a party.--

29         (1)  In any civil action in which a state executive

30  branch agency or officer is a party in state or federal court,

31  the officer, agent, official, or attorney who represents or is

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    Florida House of Representatives - 2000                HB 1923

    187-859B-00






  1  acting on behalf of such agency or officer may not settle such

  2  action, consent to any condition, or agree to any order in

  3  connection therewith, if the settlement, condition, or order

  4  requires the expenditure of or the obligation to expend any

  5  state funds or other state resources, or the establishment of

  6  any new program, unless:

  7         (a)  The expenditure is provided for by an existing

  8  appropriation or program established by law; and

  9         (b)  Prior written notification is given within 5

10  business days of the date the settlement or presettlement

11  agreement or order is to be made final to the President of the

12  Senate, the Speaker of the House of Representatives, the

13  Senate and House minority leaders, and the Attorney General.

14  Such notification shall specify how the agency involved will

15  address the costs in future years within the limits of current

16  appropriations.

17         (2)  The state executive branch agency or officer shall

18  negotiate a closure date as soon as possible for the civil

19  action.

20         (3)  The state executive branch agency or officer may

21  not pledge any current or future action of another branch of

22  state government as a condition for settling the civil action.

23         (4)  Any settlement that commits the state to spending

24  in excess of current appropriations or to policy changes

25  inconsistent with current state law shall be contingent upon

26  and subject to legislative appropriation or statutory

27  amendment. The state agency or officer may agree to use all

28  efforts to procure legislative funding or statutory amendment.

29         (5)  When a state agency or officer settles an action

30  in which the state will receive moneys, the funds will be

31  placed unobligated in the General Revenue Fund or in the trust

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    Florida House of Representatives - 2000                HB 1923

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  1  fund which is associated with the agency's or official's

  2  authority to pursue the legal action.

  3         (6)  The Legislature intends that state agencies and

  4  officers advise the appropriate legislative committees of

  5  potential settlements, which may commit the state to spending

  6  in excess of current appropriations or to policy changes

  7  inconsistent with current state law, and of the progress

  8  thereon during the settlement process.

  9         Section 2.  Subsection (8) is added to section 216.023,

10  Florida Statutes, to read:

11         216.023  Legislative budget requests to be furnished by

12  agencies.--

13         (8)  As a part of the legislative budget request, the

14  head of each state agency shall include an inventory of all

15  litigation in which the agency is involved that may require

16  additional appropriations to the agency or amendments to the

17  law under which the agency operates.  No later than March 1

18  following the submission of the legislative budget request,

19  the head of the state agency shall provide an update of any

20  additions or changes to the inventory. Such inventory shall

21  include:

22         (a)  The names of the parties.

23         (b)  The court with jurisdiction.

24         (c)  A summary of the complaint.

25         (d)  The estimated value of the claim.

26         (e)  The specific laws challenged.

27         (f)  The status of the case.

28         Section 3.  Section 284.385, Florida Statutes, is

29  amended to read:

30         284.385  Reporting and handling of claims.--All

31  departments covered by the Florida Casualty Insurance Risk

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    Florida House of Representatives - 2000                HB 1923

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  1  Management Trust Fund under this part shall immediately report

  2  all known or potential claims to the Department of Insurance

  3  for handling, except employment complaints which have not been

  4  filed with the Florida Human Relations Commission, Equal

  5  Employment Opportunity Commission, or any similar agency.

  6  When deemed necessary, the Department of Insurance shall

  7  assign or reassign the claim to counsel.  The assigned counsel

  8  shall report regularly to the Department of Insurance and to

  9  the covered department on the status of any such claims or

10  litigation as required by the Department of Insurance.  No

11  such claim shall be compromised or settled for monetary

12  compensation without the prior approval of the Department of

13  Insurance and prior notification to the covered department.

14  All departments shall cooperate with the Department of

15  Insurance in its handling of claims.  The Department of

16  Insurance, the Department of Management Services, and the

17  Department of Banking and Finance, with the cooperation of the

18  state attorneys and the clerks of the courts, shall develop a

19  system to coordinate the exchange of information concerning

20  claims for and against the state, its agencies, and its

21  subdivisions, to assist in collection of amounts due to them.

22  The covered department shall have the responsibility for the

23  settlement of any claim for injunctive or affirmative relief

24  under 42 U.S.C. s. 1983 or similar federal or state statutes.

25  The payment of a settlement or judgment for any claim covered

26  and reported under this part shall be made only from the

27  Florida Casualty Insurance Risk Management Trust Fund.

28         Section 4.  This act shall take effect July 1, 2000.

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    Florida House of Representatives - 2000                HB 1923

    187-859B-00






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  2                          HOUSE SUMMARY

  3
      Revises a provision of law governing settlements,
  4    conditions, or orders when an agency of the executive
      branch of government is a party to provide additional
  5    requirements with respect to notification, to provide
      that described settlements or orders shall be contingent
  6    upon and subject to legislative appropriation or
      statutory amendment, to provide for the deposit of funds
  7    in the General Revenue Fund or in the agency fund, and to
      provide for the intent of the Legislature with respect to
  8    potential settlements.  Provides for an inventory of all
      litigation in which an agency is involved that may
  9    require additional appropriations to the agency or
      statutory amendments as a part of the legislative budget
10    request. Provides a list of elements to be included in
      such inventories. Revises language with respect to the
11    reporting and handling of claims by the Department of
      Insurance covered by the Florida Casualty Insurance Risk
12    Management Trust Fund.

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