House Bill hb0099B

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    Florida House of Representatives - 2001                HB 99-B

        By Representative Clarke






  1                      A bill to be entitled

  2         An act relating to transferring and reassigning

  3         divisions, functions, and responsibilities of

  4         the Department of Labor and Employment

  5         Security; providing for a type two transfer of

  6         the Division of Workers' Compensation to the

  7         Department of Revenue; providing for a type two

  8         transfer of workers' compensation medical

  9         services to the Agency for Health Care

10         Administration; providing for a type two

11         transfer of workers' compensation

12         rehabilitation and reemployment services to the

13         Department of Education; providing for a type

14         two transfer of the administration of child

15         labor laws to the Department of Business and

16         Professional Regulation; providing for a type

17         two transfer of certain functions of the Office

18         of the Secretary and the Office of

19         Administrative Services of the Department of

20         Labor and Employment Security relating to labor

21         organizations and migrant and farm labor

22         registration to the Department of Business and

23         Professional Regulation; providing for a type

24         two transfer of other workplace regulation

25         functions to the Department of Business and

26         Professional Regulation; providing for the

27         transfer of the Unemployment Appeals Commission

28         to the Agency for Workforce Innovation by a

29         type two transfer; providing for the transfer

30         of the Office of Information Systems to the

31         State Technology Office by a type two transfer;

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    Florida House of Representatives - 2001                HB 99-B

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  1         authorizing the Department of Banking and

  2         Finance, in conjunction with the Office of the

  3         Attorney General, to use unexpended funds to

  4         settle certain claims; providing for the

  5         continuation of contracts or agreements of the

  6         Department of Labor and Employment Security;

  7         providing for a successor department, agency,

  8         or entity to be substituted for the Department

  9         of Labor and Employment Security as a party in

10         interest in pending proceedings; exempting

11         specified state agencies, on a temporary basis,

12         from provisions relating to procurement of

13         property and services and leasing of space;

14         authorizing specified state agencies to develop

15         temporary emergency rules relating to the

16         implementation of this act; amending s. 20.21,

17         F.S.; providing for workers' compensation

18         responsibilities of the Department of Revenue;

19         amending s. 440.02, F.S.; providing a

20         definition for the term "agency"; conforming

21         definitions of "department" and "division" to

22         the transfer of the Division of Workers'

23         Compensation; amending ss. 440.102 and 440.125,

24         F.S.; conforming agency references to reflect

25         the transfer of the Division of Workers'

26         Compensation; amending s. 440.13, F.S.,

27         relating to medical services and supplies under

28         the workers' compensation law; reassigning

29         certain functions from the Division of Workers'

30         Compensation to the Agency for Health Care

31         Administration; conforming agency references to

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    Florida House of Representatives - 2001                HB 99-B

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  1         reflect the transfer of the Division of

  2         Workers' Compensation; amending s. 440.15,

  3         F.S.; providing for the agency to participate

  4         in the establishment and use of a uniform

  5         permanent impairment rating schedule;

  6         correcting a cross reference; amending s.

  7         440.207, F.S.; conforming a departmental

  8         reference; amending s. 440.385, F.S.; deleting

  9         obsolete provisions; conforming departmental

10         references relating to the Florida

11         Self-Insurance Guaranty Association, Inc.;

12         correcting a cross reference; amending s.

13         440.49, F.S.; reassigning responsibility for a

14         report on the Special Disability Trust Fund to

15         the Department of Revenue; amending s. 440.491,

16         F.S.; conforming references based on the

17         transfer of rehabilitation and reemployment

18         services to the Department of Education;

19         amending s. 440.525, F.S.; conforming agency

20         references to reflect the transfer of programs

21         from the Department of Labor and Employment

22         Security to the Department of Revenue; amending

23         s. 443.012, F.S.; providing for the

24         Unemployment Appeals Commission to be created

25         within the Agency for Workforce Innovation

26         rather than the Department of Labor and

27         Employment Security; conforming provisions;

28         amending s. 443.036, F.S.; conforming the

29         definition of "commission" to the transfer of

30         the Unemployment Appeals Commission to the

31         Agency for Workforce Innovation; amending s.

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    Florida House of Representatives - 2001                HB 99-B

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  1         447.02, F.S.; conforming the definition of

  2         "department" to the transfer of the regulation

  3         of labor organizations to the Department of

  4         Business and Professional Regulation; amending

  5         s. 447.305, F.S.; providing that notification

  6         of registrations and renewals of registration

  7         shall be furnished to the Department of

  8         Business and Professional Regulation, to

  9         conform; amending s. 450.012, F.S.; conforming

10         the definition of "department" to the transfer

11         of the regulation of child labor to the

12         Department of Business and Professional

13         Regulation; amending s. 450.191, F.S., relating

14         to the duties of the Executive Office of the

15         Governor with respect to migrant labor;

16         conforming provisions to changes made by the

17         act; amending s. 450.28, F.S.; conforming the

18         definition of "department" to the transfer of

19         the regulation of farm labor to the Department

20         of Business and Professional Regulation;

21         amending s. 627.0915, F.S.; conforming

22         departmental references to changes made by the

23         act; amending ss. 110.205, 112.19, 112.191,

24         121.125, 122.03, 238.06, 440.10, 440.104, and

25         440.14, F.S., to conform; repealing s. 20.171,

26         F.S., relating to establishment and the

27         authority and organizational structure of the

28         Department of Labor and Employment Security;

29         repealing s. 440.4416, F.S., relating to the

30         Workers' Compensation Oversight Board;

31

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    Florida House of Representatives - 2001                HB 99-B

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  1         providing for severability; providing an

  2         effective date.

  3

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

  5

  6         Section 1.  (1)  All powers, duties, functions, rules,

  7  records, personnel, property, and unexpended balances of

  8  appropriations, allocations, and other funds of the Division

  9  of Workers' Compensation are transferred by a type two

10  transfer, as defined in s. 20.06(2), Florida Statutes, from

11  the Department of Labor and Employment Security to the

12  Department of Revenue, except that 19 full-time equivalent

13  positions, and the associated salaries and benefits and

14  expenses funding, related to oversight of medical services in

15  workers' compensation provider relations, dispute and

16  complaint resolution, program evaluation, data management, and

17  carrier compliance and review, are transferred by a type two

18  transfer, as defined in s. 20.06(2), Florida Statutes, from

19  the Department of Labor and Employment Security to the Agency

20  for Health Care Administration, and except that 96 full-time

21  equivalent positions, and the associated salaries and benefits

22  and expenses funding, related to the rehabilitation and

23  reemployment of injured workers, are transferred by a type two

24  transfer, as defined in s. 20.06(2), Florida Statutes, from

25  the Department of Labor and Employment Security to the

26  Department of Education, and except that 11 full-time

27  equivalent positions, and the associated salaries and benefits

28  and expenses funding, related to the administration of child

29  labor laws under chapter 450, Florida Statutes, are

30  transferred by a type two transfer, as defined in s. 20.06(2),

31  Florida Statutes, from the Department of Labor and Employment

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    Florida House of Representatives - 2001                HB 99-B

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  1  Security to the Department of Business and Professional

  2  Regulation.

  3         (2)  All powers, duties, functions, rules, records,

  4  personnel, property, and unexpended balances of

  5  appropriations, allocations, and other funds of the Office of

  6  the Secretary and the Office of Administrative Services of the

  7  Department of Labor and Employment Security related to the

  8  regulation of labor organizations under chapter 447, Florida

  9  Statutes, and the administration of migrant labor and farm

10  labor laws under chapter 450, Florida Statutes, are

11  transferred by a type two transfer, as defined in s. 20.06(2),

12  Florida Statutes, from the Department of Labor and Employment

13  Security to the Department of Business and Professional

14  Regulation.

15         (3)  Any other powers, duties, functions, rules,

16  records, property, and unexpended balances of appropriations,

17  allocations, and other funds of the Department of Labor and

18  Employment Security not otherwise transferred by this act,

19  relating to workplace regulation and enforcement, including,

20  but not limited to, those under chapter 448, Florida Statutes,

21  are transferred by a type two transfer, as defined in s.

22  20.06(2), Florida Statutes, from the Department of Labor and

23  Employment Security to the Department of Business and

24  Professional Regulation.

25         (4)  All powers, duties, functions, rules, records,

26  personnel, property, and unexpended balances of

27  appropriations, allocations, and other funds of the

28  Unemployment Appeals Commission relating to the commission's

29  specified authority, powers, duties, and responsibilities are

30  transferred by a type two transfer, as defined in s. 20.06(2),

31  Florida Statutes, to the Agency for Workforce Innovation.

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    Florida House of Representatives - 2001                HB 99-B

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  1         (5)  The Office of Information Systems is transferred

  2  by a type two transfer, as defined in s. 20.06(2), Florida

  3  Statutes, from the Department of Labor and Employment Security

  4  to the State Technology Office.

  5         (6)(a)  The records, property, and unexpended balances

  6  of appropriations, allocations, and other funds and resources

  7  of the Office of the Secretary and the Office of

  8  Administrative Services of the Department of Labor and

  9  Employment Security which support the activities and functions

10  transferred under subsection (1) to the Department of Revenue

11  are transferred as provided in s. 20.06(2), Florida Statutes,

12  to the Department of Revenue.

13         (b)  The records, property, and unexpended balances of

14  appropriations, allocations, and other funds and resources of

15  the Office of the Secretary and the Office of Administrative

16  Services of the Department of Labor and Employment Security

17  which support the activities and functions transferred under

18  subsection (1) to the Agency for Health Care Administration

19  are transferred as provided in s. 20.06(2), Florida Statutes,

20  to the Agency for Health Care Administration.

21         (c)  The records, property, and unexpended balances of

22  appropriations, allocations, and other funds and resources of

23  the Office of the Secretary and the Office of Administrative

24  Services of the Department of Labor and Employment Security

25  which support the activities and functions transferred under

26  subsection (1) to the Department of Education are transferred

27  as provided in s. 20.06(2), Florida Statutes, to the

28  Department of Education.

29         (d)  The records, property, and unexpended balances of

30  appropriations, allocations, and other funds and resources of

31  the Office of the Secretary and the Office of Administrative

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    Florida House of Representatives - 2001                HB 99-B

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  1  Services of the Department of Labor and Employment Security

  2  which support the activities and functions transferred under

  3  subsections (1), (2), and (3) to the Department of Business

  4  and Professional Regulation are transferred as provided in s.

  5  20.06(2), Florida Statutes, to the Department of Business and

  6  Professional Regulation.

  7         (e)  The records, property, and unexpended balances of

  8  appropriations, allocations, and other funds and resources of

  9  the Office of the Secretary and the Office of Administrative

10  Services of the Department of Labor and Employment Security

11  which support the activities and functions transferred under

12  subsection (4) to the Agency for Workforce Innovation are

13  transferred as provided in s. 20.06(2), Florida Statutes, to

14  the Agency for Workforce Innovation.

15         (f)  The records, property, and unexpended balances of

16  appropriations, allocations, and other funds and resources of

17  the Office of the Secretary and the Office of Administrative

18  Services of the Department of Labor and Employment Security

19  which support the activities and functions transferred under

20  subsection (5) to the State Technology Office are transferred

21  as provided in s. 20.06(2), Florida Statutes, to the State

22  Technology Office.

23         (7)  The transfer of any programs, activities, and

24  functions under this act shall include the transfer of any

25  records and unexpended balances of appropriations,

26  allocations, or other funds related to such programs,

27  activities, and functions. Any surplus records and unexpended

28  balances of appropriations, allocations, or other funds not so

29  transferred shall be transferred to the Department of

30  Management Services for proper disposition. The Department of

31  Management Services shall become the custodian of any property

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  1  of the Department of Labor and Employment Security which is

  2  not otherwise transferred for the purposes of chapter 273,

  3  Florida Statutes. The Department of Management Services is

  4  authorized to permit the use of such property by organizations

  5  as necessary to implement the provisions of this act.

  6         (8)  The Department of Banking and Finance, in

  7  conjunction with the Office of the Attorney General, may use

  8  any unexpended balances of the Department of Labor and

  9  Employment Security to settle any claims or leases, pay out

10  personnel annual leave or sick leave, or close out other costs

11  owed by the department, regardless of whether such costs

12  relate to federal, state, or local governments, department

13  employees, or the private sector. Any remaining balances of

14  the department shall be transferred as directed by this act or

15  by budget amendment.

16         (9)  Notwithstanding any other provision of law, any

17  binding contract or interagency agreement existing on or

18  before January 1, 2002, between the Department of Labor and

19  Employment Security, or an entity or agent of the department,

20  and any other agency, entity, or person shall continue as a

21  binding contract or agreement for the remainder of the term of

22  such contract or agreement with the successor department,

23  agency, or entity responsible for the program, activity, or

24  functions relative to the contract or agreement.

25         (10)  This act does not affect the validity of any

26  judicial or administrative proceeding involving the Department

27  of Labor and Employment Security which is pending as of the

28  effective date of any transfer under this act. The successor

29  department, agency, or entity responsible for the program,

30  activity, or function relative to the proceeding shall be

31  substituted, as of the effective date of the applicable

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    Florida House of Representatives - 2001                HB 99-B

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  1  transfer under this act, for the Department of Labor and

  2  Employment Security as a party in interest in any such

  3  proceedings.

  4         (11)  To expedite the acquisition of goods and services

  5  for implementation of the provisions of this act, the

  6  Department of Revenue, the Agency for Health Care

  7  Administration, the Department of Education, the Department of

  8  Business and Professional Regulation, the Agency for Workforce

  9  Innovation, and the State Technology Office are exempt from

10  the provisions of chapter 287, Florida Statutes, when

11  contracting for the purchase or lease of goods or services

12  under this act. This section shall take effect upon this act

13  becoming a law and shall expire July 1, 2002.

14         (12)  To expedite the leasing of facilities for

15  implementation of the provisions of this act, the Department

16  of Revenue, the Agency for Health Care Administration, the

17  Department of Education, the Department of Business and

18  Professional Regulation, the Agency for Workforce Innovation,

19  and the State Technology Office are exempt from the

20  requirements of any state laws relating to the leasing of

21  space, including, but not limited to, the requirements imposed

22  by s. 255.25, Florida Statutes, and any rules adopted under

23  such laws; provided, however, that all leases entered into

24  under this act through July 1, 2002, must be submitted for

25  approval to the Department of Management Services at the

26  earliest practicable time. This section shall take effect upon

27  this act becoming a law and shall expire July 1, 2002.

28         (13)  Notwithstanding any provisions of chapter 120,

29  Florida Statutes, to the contrary, the Department of Revenue,

30  the Agency for Health Care Administration, the Department of

31  Education, the Department of Business and Professional

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    Florida House of Representatives - 2001                HB 99-B

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  1  Regulation, the Agency for Workforce Innovation, and the State

  2  Technology Office are authorized to develop emergency rules

  3  relating to and in furtherance of the orderly implementation

  4  of the provisions of this act. This section shall take effect

  5  upon this act becoming a law, and these emergency rules shall

  6  be valid for a period of 180 days after January 1, 2002.

  7         Section 2.  Paragraph (i) is added to subsection (2) of

  8  section 20.21, Florida Statutes, to read:

  9         20.21  Department of Revenue.--There is created a

10  Department of Revenue.

11         (2)

12         (i)  The workers' compensation responsibilities of the

13  department include workers' compensation management and policy

14  implementation under the Division of Workers' Compensation.

15         Section 3.  Subsections (3) through (39) of section

16  440.02, Florida Statutes, are renumbered as subsections (4)

17  through (40), respectively, a new subsection (3) is added to

18  said section, and renumbered subsections (12) and (14) are

19  amended, to read:

20         440.02  Definitions.--When used in this chapter, unless

21  the context clearly requires otherwise, the following terms

22  shall have the following meanings:

23         (3)  "Agency" means the Agency for Health Care

24  Administration.

25         (12)(11)  "Department" means the Department of Revenue

26  Labor and Employment Security.

27         (14)(13)  "Division" means the Division of Workers'

28  Compensation of the Department of Revenue Labor and Employment

29  Security.

30         Section 4.  Paragraph (a) of subsection (3) of section

31  440.102, Florida Statutes, is amended to read:

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    Florida House of Representatives - 2001                HB 99-B

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  1         440.102  Drug-free workplace program requirements.--The

  2  following provisions apply to a drug-free workplace program

  3  implemented pursuant to law or to rules adopted by the Agency

  4  for Health Care Administration:

  5         (3)  NOTICE TO EMPLOYEES AND JOB APPLICANTS.--

  6         (a)  One time only, prior to testing, an employer shall

  7  give all employees and job applicants for employment a written

  8  policy statement which contains:

  9         1.  A general statement of the employer's policy on

10  employee drug use, which must identify:

11         a.  The types of drug testing an employee or job

12  applicant may be required to submit to, including

13  reasonable-suspicion drug testing or drug testing conducted on

14  any other basis.

15         b.  The actions the employer may take against an

16  employee or job applicant on the basis of a positive confirmed

17  drug test result.

18         2.  A statement advising the employee or job applicant

19  of the existence of this section.

20         3.  A general statement concerning confidentiality.

21         4.  Procedures for employees and job applicants to

22  confidentially report to a medical review officer the use of

23  prescription or nonprescription medications to a medical

24  review officer both before and after being tested.

25         5.  A list of the most common medications, by brand

26  name or common name, as applicable, as well as by chemical

27  name, which may alter or affect a drug test. A list of such

28  medications as developed by the Agency for Health Care

29  Administration shall be available to employers through the

30  Division of Workers' Compensation of the Department of Revenue

31  Labor and Employment Security.

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    Florida House of Representatives - 2001                HB 99-B

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  1         6.  The consequences of refusing to submit to a drug

  2  test.

  3         7.  A representative sampling of names, addresses, and

  4  telephone numbers of employee assistance programs and local

  5  drug rehabilitation programs.

  6         8.  A statement that an employee or job applicant who

  7  receives a positive confirmed test result may contest or

  8  explain the result to the medical review officer within 5

  9  working days after receiving written notification of the test

10  result; that if an employee's or job applicant's explanation

11  or challenge is unsatisfactory to the medical review officer,

12  the medical review officer shall report a positive test result

13  back to the employer; and that a person may contest the drug

14  test result pursuant to law or to rules adopted by the Agency

15  for Health Care Administration.

16         9.  A statement informing the employee or job applicant

17  of his or her responsibility to notify the laboratory of any

18  administrative or civil action brought pursuant to this

19  section.

20         10.  A list of all drugs for which the employer will

21  test, described by brand name or common name, as applicable,

22  as well as by chemical name.

23         11.  A statement regarding any applicable collective

24  bargaining agreement or contract and the right to appeal to

25  the Public Employees Relations Commission or applicable court.

26         12.  A statement notifying employees and job applicants

27  of their right to consult with a medical review officer for

28  technical information regarding prescription or

29  nonprescription medication.

30         Section 5.  Subsection (1) of section 440.125, Florida

31  Statutes, is amended to read:

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    Florida House of Representatives - 2001                HB 99-B

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  1         440.125  Medical records and reports; identifying

  2  information in employee medical bills; confidentiality.--

  3         (1)  Any medical records and medical reports of an

  4  injured employee and any information identifying an injured

  5  employee in medical bills which are provided to the Division

  6  of Workers' Compensation of the Department of Revenue Labor

  7  and Employment Security pursuant to s. 440.13 are confidential

  8  and exempt from the provisions of s. 119.07(1) and s. 24(a),

  9  Art. I of the State Constitution, except as otherwise provided

10  by this chapter.

11         Section 6.  Paragraphs (a), (c), (f), (i), and (j) of

12  subsection (3), paragraphs (a) and (b) of subsection (4),

13  paragraphs (b) and (e) of subsection (5), subsections (6),

14  (7), (8), (9), and (11), paragraph (a) of subsection (12), and

15  paragraphs (e) and (g) of subsection (13) of section 440.13,

16  Florida Statutes, are amended to read:

17         440.13  Medical services and supplies; penalty for

18  violations; limitations.--

19         (3)  PROVIDER ELIGIBILITY; AUTHORIZATION.--

20         (a)  As a condition to eligibility for payment under

21  this chapter, a health care provider who renders services must

22  be a certified health care provider and must receive

23  authorization from the carrier before providing treatment.

24  This paragraph does not apply to emergency care. The agency

25  division shall adopt rules to implement the certification of

26  health care providers.

27         (c)  A health care provider may not refer the employee

28  to another health care provider, diagnostic facility, therapy

29  center, or other facility without prior authorization from the

30  carrier, except when emergency care is rendered. Any referral

31  must be to a health care provider that has been certified by

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    Florida House of Representatives - 2001                HB 99-B

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  1  the agency division, unless the referral is for emergency

  2  treatment.

  3         (f)  By accepting payment under this chapter for

  4  treatment rendered to an injured employee, a health care

  5  provider consents to the jurisdiction of the agency division

  6  as set forth in subsection (11) and to the submission of all

  7  records and other information concerning such treatment to the

  8  agency division in connection with a reimbursement dispute,

  9  audit, or review as provided by this section. The health care

10  provider must further agree to comply with any decision of the

11  agency division rendered under this section.

12         (i)  Notwithstanding paragraph (d), a claim for

13  specialist consultations, surgical operations,

14  physiotherapeutic or occupational therapy procedures, X-ray

15  examinations, or special diagnostic laboratory tests that cost

16  more than $1,000 and other specialty services that the agency

17  division identifies by rule is not valid and reimbursable

18  unless the services have been expressly authorized by the

19  carrier, or unless the carrier has failed to respond within 10

20  days to a written request for authorization, or unless

21  emergency care is required. The insurer shall not refuse to

22  authorize such consultation or procedure unless the health

23  care provider or facility is not authorized or certified or

24  unless an expert medical advisor has determined that the

25  consultation or procedure is not medically necessary or

26  otherwise compensable under this chapter. Authorization of a

27  treatment plan does not constitute express authorization for

28  purposes of this section, except to the extent the carrier

29  provides otherwise in its authorization procedures. This

30  paragraph does not limit the carrier's obligation to identify

31  and disallow overutilization or billing errors.

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    Florida House of Representatives - 2001                HB 99-B

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  1         (j)  Notwithstanding anything in this chapter to the

  2  contrary, a sick or injured employee shall be entitled, at all

  3  times, to free, full, and absolute choice in the selection of

  4  the pharmacy or pharmacist dispensing and filling

  5  prescriptions for medicines required under this chapter. It is

  6  expressly forbidden for the agency division, an employer, or a

  7  carrier, or any agent or representative of the agency

  8  division, an employer, or a carrier to select the pharmacy or

  9  pharmacist which the sick or injured employee must use;

10  condition coverage or payment on the basis of the pharmacy or

11  pharmacist utilized; or to otherwise interfere in the

12  selection by the sick or injured employee of a pharmacy or

13  pharmacist.

14         (4)  NOTICE OF TREATMENT TO CARRIER; FILING WITH AGENCY

15  DIVISION.--

16         (a)  Any health care provider providing necessary

17  remedial treatment, care, or attendance to any injured worker

18  shall submit treatment reports to the carrier in a format

19  prescribed by the agency division. A claim for medical or

20  surgical treatment is not valid or enforceable against such

21  employer or employee, unless, by the close of the third

22  business day following the first treatment, the physician

23  providing the treatment furnishes to the employer or carrier a

24  preliminary notice of the injury and treatment on forms

25  prescribed by the agency division and, within 15 days

26  thereafter, furnishes to the employer or carrier a complete

27  report, and subsequent thereto furnishes progress reports, if

28  requested by the employer or insurance carrier, at intervals

29  of not less than 3 weeks apart or at less frequent intervals

30  if requested on forms prescribed by the agency division.

31

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    Florida House of Representatives - 2001                HB 99-B

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  1         (b)  Upon the request of the Division of Workers'

  2  Compensation, each medical report or bill obtained or received

  3  by the employer, the carrier, or the injured employee, or the

  4  attorney for the employer, carrier, or injured employee, with

  5  respect to the remedial treatment, care, and attendance of the

  6  injured employee, including any report of an examination,

  7  diagnosis, or disability evaluation, must be filed with the

  8  agency Division of Workers' Compensation pursuant to rules

  9  adopted by the agency division. The health care provider shall

10  also furnish to the injured employee or to his or her

11  attorney, on demand, a copy of his or her office chart,

12  records, and reports, and may charge the injured employee an

13  amount authorized by the agency division for the copies. Each

14  such health care provider shall provide to the agency division

15  information about the remedial treatment, care, and attendance

16  which the agency division reasonably requests.

17         (5)  INDEPENDENT MEDICAL EXAMINATIONS.--

18         (b)  Each party is bound by his or her selection of an

19  independent medical examiner and is entitled to an alternate

20  examiner only if:

21         1.  The examiner is not qualified to render an opinion

22  upon an aspect of the employee's illness or injury which is

23  material to the claim or petition for benefits;

24         2.  The examiner ceases to practice in the specialty

25  relevant to the employee's condition;

26         3.  The examiner is unavailable due to injury, death,

27  or relocation outside a reasonably accessible geographic area;

28  or

29         4.  The parties agree to an alternate examiner.

30

31

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  1  Any party may request, or a judge of compensation claims may

  2  require, designation of an agency a division medical advisor

  3  as an independent medical examiner. The opinion of the

  4  advisors acting as examiners shall not be afforded the

  5  presumption set forth in paragraph (9)(c).

  6         (e)  No medical opinion other than the opinion of a

  7  medical advisor appointed by the judge of compensation claims

  8  or agency division, an independent medical examiner, or an

  9  authorized treating provider is admissible in proceedings

10  before the judges of compensation claims.

11         (6)  UTILIZATION REVIEW.--Carriers shall review all

12  bills, invoices, and other claims for payment submitted by

13  health care providers in order to identify overutilization and

14  billing errors, and may hire peer review consultants or

15  conduct independent medical evaluations. Such consultants,

16  including peer review organizations, are immune from liability

17  in the execution of their functions under this subsection to

18  the extent provided in s. 766.101. If a carrier finds that

19  overutilization of medical services or a billing error has

20  occurred, it must disallow or adjust payment for such services

21  or error without order of a judge of compensation claims or

22  the agency division, if the carrier, in making its

23  determination, has complied with this section and rules

24  adopted by the agency division.

25         (7)  UTILIZATION AND REIMBURSEMENT DISPUTES.--

26         (a)  Any health care provider, carrier, or employer who

27  elects to contest the disallowance or adjustment of payment by

28  a carrier under subsection (6) must, within 30 days after

29  receipt of notice of disallowance or adjustment of payment,

30  petition the agency division to resolve the dispute. The

31  petitioner must serve a copy of the petition on the carrier

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  1  and on all affected parties by certified mail. The petition

  2  must be accompanied by all documents and records that support

  3  the allegations contained in the petition. Failure of a

  4  petitioner to submit such documentation to the agency division

  5  results in dismissal of the petition.

  6         (b)  The carrier must submit to the agency division

  7  within 10 days after receipt of the petition all documentation

  8  substantiating the carrier's disallowance or adjustment.

  9  Failure of the carrier to submit the requested documentation

10  to the agency division within 10 days constitutes a waiver of

11  all objections to the petition.

12         (c)  Within 60 days after receipt of all documentation,

13  the agency division must provide to the petitioner, the

14  carrier, and the affected parties a written determination of

15  whether the carrier properly adjusted or disallowed payment.

16  The agency division must be guided by standards and policies

17  set forth in this chapter, including all applicable

18  reimbursement schedules, in rendering its determination.

19         (d)  If the agency division finds an improper

20  disallowance or improper adjustment of payment by an insurer,

21  the insurer shall reimburse the health care provider,

22  facility, insurer, or employer within 30 days, subject to the

23  penalties provided in this subsection.

24         (e)  The agency division shall adopt rules to carry out

25  this subsection. The rules may include provisions for

26  consolidating petitions filed by a petitioner and expanding

27  the timetable for rendering a determination upon a

28  consolidated petition.

29         (f)  Any carrier that engages in a pattern or practice

30  of arbitrarily or unreasonably disallowing or reducing

31  payments to health care providers may be subject to one or

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  1  more of the following penalties imposed by the agency

  2  division:

  3         1.  Repayment of the appropriate amount to the health

  4  care provider.

  5         2.  An administrative fine assessed by the agency

  6  division in an amount not to exceed $5,000 per instance of

  7  improperly disallowing or reducing payments.

  8         3.  Award of the health care provider's costs,

  9  including a reasonable attorney's fee, for prosecuting the

10  petition.

11         (8)  PATTERN OR PRACTICE OF OVERUTILIZATION.--

12         (a)  Carriers must report to the agency division all

13  instances of overutilization including, but not limited to,

14  all instances in which the carrier disallows or adjusts

15  payment. The agency division shall determine whether a pattern

16  or practice of overutilization exists.

17         (b)  If the agency division determines that a health

18  care provider has engaged in a pattern or practice of

19  overutilization or a violation of this chapter or rules

20  adopted by the agency division, it may impose one or more of

21  the following penalties:

22         1.  An order of the agency division barring the

23  provider from payment under this chapter;

24         2.  Deauthorization of care under review;

25         3.  Denial of payment for care rendered in the future;

26         4.  Decertification of a health care provider certified

27  as an expert medical advisor under subsection (9) or of a

28  rehabilitation provider certified under s. 440.49;

29         5.  An administrative fine assessed by the agency

30  division in an amount not to exceed $5,000 per instance of

31  overutilization or violation; and

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  1         6.  Notification of and review by the appropriate

  2  licensing authority pursuant to s. 440.106(3).

  3         (9)  EXPERT MEDICAL ADVISORS.--

  4         (a)  The agency division shall certify expert medical

  5  advisors in each specialty to assist the agency division and

  6  the judges of compensation claims within the advisor's area of

  7  expertise as provided in this section. The agency division

  8  shall, in a manner prescribed by rule, in certifying,

  9  recertifying, or decertifying an expert medical advisor,

10  consider the qualifications, training, impartiality, and

11  commitment of the health care provider to the provision of

12  quality medical care at a reasonable cost. As a prerequisite

13  for certification or recertification, the agency division

14  shall require, at a minimum, that an expert medical advisor

15  have specialized workers' compensation training or experience

16  under the workers' compensation system of this state and board

17  certification or board eligibility.

18         (b)  The agency division shall contract with or employ

19  expert medical advisors to provide peer review or medical

20  consultation to the agency division or to a judge of

21  compensation claims in connection with resolving disputes

22  relating to reimbursement, differing opinions of health care

23  providers, and health care and physician services rendered

24  under this chapter. Expert medical advisors contracting with

25  the agency division shall, as a term of such contract, agree

26  to provide consultation or services in accordance with the

27  timetables set forth in this chapter and to abide by rules

28  adopted by the agency division, including, but not limited to,

29  rules pertaining to procedures for review of the services

30  rendered by health care providers and preparation of reports

31  and recommendations for submission to the agency division.

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  1         (c)  If there is disagreement in the opinions of the

  2  health care providers, if two health care providers disagree

  3  on medical evidence supporting the employee's complaints or

  4  the need for additional medical treatment, or if two health

  5  care providers disagree that the employee is able to return to

  6  work, the agency division may, and the judge of compensation

  7  claims shall, upon his or her own motion or within 15 days

  8  after receipt of a written request by either the injured

  9  employee, the employer, or the carrier, order the injured

10  employee to be evaluated by an expert medical advisor. The

11  opinion of the expert medical advisor is presumed to be

12  correct unless there is clear and convincing evidence to the

13  contrary as determined by the judge of compensation claims.

14  The expert medical advisor appointed to conduct the evaluation

15  shall have free and complete access to the medical records of

16  the employee. An employee who fails to report to and cooperate

17  with such evaluation forfeits entitlement to compensation

18  during the period of failure to report or cooperate.

19         (d)  The expert medical advisor must complete his or

20  her evaluation and issue his or her report to the agency

21  division or to the judge of compensation claims within 45 days

22  after receipt of all medical records. The expert medical

23  advisor must furnish a copy of the report to the carrier and

24  to the employee.

25         (e)  An expert medical advisor is not liable under any

26  theory of recovery for evaluations performed under this

27  section without a showing of fraud or malice. The protections

28  of s. 766.101 apply to any officer, employee, or agent of the

29  agency division and to any officer, employee, or agent of any

30  entity with which the agency division has contracted under

31  this subsection.

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  1         (f)  If the agency division or a judge of compensation

  2  claims determines that the services of a certified expert

  3  medical advisor are required to resolve a dispute under this

  4  section, the carrier must compensate the advisor for his or

  5  her time in accordance with a schedule adopted by the agency

  6  division. The agency division may assess a penalty not to

  7  exceed $500 against any carrier that fails to timely

  8  compensate an advisor in accordance with this section.

  9         (11)  AUDITS BY AGENCY DIVISION; JURISDICTION.--

10         (a)  The agency Division of Workers' Compensation of

11  the Department of Labor and Employment Security may

12  investigate health care providers to determine whether

13  providers are complying with this chapter and with rules

14  adopted by the agency division, whether the providers are

15  engaging in overutilization, and whether providers are

16  engaging in improper billing practices. If the agency division

17  finds that a health care provider has improperly billed,

18  overutilized, or failed to comply with agency division rules

19  or the requirements of this chapter it must notify the

20  provider of its findings and may determine that the health

21  care provider may not receive payment from the carrier or may

22  impose penalties as set forth in subsection (8) or other

23  sections of this chapter. If the health care provider has

24  received payment from a carrier for services that were

25  improperly billed or for overutilization, it must return those

26  payments to the carrier. The agency division may assess a

27  penalty not to exceed $500 for each overpayment that is not

28  refunded within 30 days after notification of overpayment by

29  the agency division or carrier.

30         (b)  The agency division shall monitor and audit

31  carriers to determine if medical bills are paid in accordance

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  1  with this section and agency division rules. Any employer, if

  2  self-insured, or carrier found by the agency division not to

  3  be within 90 percent compliance as to the payment of medical

  4  bills after July 1, 1994, must be assessed a fine not to

  5  exceed 1 percent of the prior year's assessment levied against

  6  such entity under s. 440.51 for every quarter in which the

  7  entity fails to attain 90-percent compliance. The agency

  8  division shall fine an employer or carrier, pursuant to rules

  9  adopted by the agency division, for each late payment of

10  compensation that is below the minimum 90-percent performance

11  standard. Any carrier that is found to be not in compliance in

12  subsequent consecutive quarters must implement a medical-bill

13  review program approved by the agency division, and the

14  carrier is subject to disciplinary action by the Department of

15  Insurance.

16         (c)  The agency division has exclusive jurisdiction to

17  decide any matters concerning reimbursement, to resolve any

18  overutilization dispute under subsection (7), and to decide

19  any question concerning overutilization under subsection (8),

20  which question or dispute arises after January 1, 1994.

21         (d)  The following agency division actions do not

22  constitute agency action subject to review under ss. 120.569

23  and 120.57 and do not constitute actions subject to s. 120.56:

24  referral by the entity responsible for utilization review; a

25  decision by the agency division to refer a matter to a peer

26  review committee; establishment by a health care provider or

27  entity of procedures by which a peer review committee reviews

28  the rendering of health care services; and the review

29  proceedings, report, and recommendation of the peer review

30  committee.

31

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  1         (12)  CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM

  2  REIMBURSEMENT ALLOWANCES.--

  3         (a)  A three-member panel is created, consisting of the

  4  Insurance Commissioner, or the Insurance Commissioner's

  5  designee, and two members to be appointed by the Governor,

  6  subject to confirmation by the Senate, one member who, on

  7  account of present or previous vocation, employment, or

  8  affiliation, shall be classified as a representative of

  9  employers, the other member who, on account of previous

10  vocation, employment, or affiliation, shall be classified as a

11  representative of employees. The panel shall determine

12  statewide schedules of maximum reimbursement allowances for

13  medically necessary treatment, care, and attendance provided

14  by physicians, hospitals, ambulatory surgical centers,

15  work-hardening programs, pain programs, and durable medical

16  equipment. The maximum reimbursement allowances for inpatient

17  hospital care shall be based on a schedule of per diem rates,

18  to be approved by the three-member panel no later than March

19  1, 1994, to be used in conjunction with a precertification

20  manual as determined by the agency division. All compensable

21  charges for hospital outpatient care shall be reimbursed at 75

22  percent of usual and customary charges. Until the three-member

23  panel approves a schedule of per diem rates for inpatient

24  hospital care and it becomes effective, all compensable

25  charges for hospital inpatient care must be reimbursed at 75

26  percent of their usual and customary charges. Annually, the

27  three-member panel shall adopt schedules of maximum

28  reimbursement allowances for physicians, hospital inpatient

29  care, hospital outpatient care, ambulatory surgical centers,

30  work-hardening programs, and pain programs. However, the

31  maximum percentage of increase in the individual reimbursement

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  1  allowance may not exceed the percentage of increase in the

  2  Consumer Price Index for the previous year. An individual

  3  physician, hospital, ambulatory surgical center, pain program,

  4  or work-hardening program shall be reimbursed either the usual

  5  and customary charge for treatment, care, and attendance, the

  6  agreed-upon contract price, or the maximum reimbursement

  7  allowance in the appropriate schedule, whichever is less.

  8         (13)  REMOVAL OF PHYSICIANS FROM LISTS OF THOSE

  9  AUTHORIZED TO RENDER MEDICAL CARE.--The agency division shall

10  remove from the list of physicians or facilities authorized to

11  provide remedial treatment, care, and attendance under this

12  chapter the name of any physician or facility found after

13  reasonable investigation to have:

14         (e)  Refused to appear before, or to answer upon

15  request of, the agency division or any duly authorized officer

16  of the state, any legal question, or to produce any relevant

17  book or paper concerning his or her conduct under any

18  authorization granted to him or her under this chapter;

19         (g)  Engaged in a pattern of practice of

20  overutilization or a violation of this chapter or rules

21  adopted by the agency division.

22         Section 7.  Paragraph (c) of subsection (2) and

23  paragraph (a) of subsection (3) of section 440.15, Florida

24  Statutes, are amended to read:

25         440.15  Compensation for disability.--Compensation for

26  disability shall be paid to the employee, subject to the

27  limits provided in s. 440.12(2), as follows:

28         (2)  TEMPORARY TOTAL DISABILITY.--

29         (c)  Temporary total disability benefits paid pursuant

30  to this subsection shall include such period as may be

31  reasonably necessary for training in the use of artificial

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  1  members and appliances, and shall include such period as the

  2  employee may be receiving training and education under a

  3  program pursuant to s. 440.491. Notwithstanding s. 440.02(9),

  4  the date of maximum medical improvement for purposes of

  5  paragraph (3)(b) shall be no earlier than the last day for

  6  which such temporary disability benefits are paid.

  7         (3)  PERMANENT IMPAIRMENT AND WAGE-LOSS BENEFITS.--

  8         (a)  Impairment benefits.--

  9         1.  Once the employee has reached the date of maximum

10  medical improvement, impairment benefits are due and payable

11  within 20 days after the carrier has knowledge of the

12  impairment.

13         2.  The three-member panel, in cooperation with the

14  agency division, shall establish and use a uniform permanent

15  impairment rating schedule. This schedule must be based on

16  medically or scientifically demonstrable findings as well as

17  the systems and criteria set forth in the American Medical

18  Association's Guides to the Evaluation of Permanent

19  Impairment; the Snellen Charts, published by American Medical

20  Association Committee for Eye Injuries; and the Minnesota

21  Department of Labor and Industry Disability Schedules. The

22  schedule should be based upon objective findings. The schedule

23  shall be more comprehensive than the AMA Guides to the

24  Evaluation of Permanent Impairment and shall expand the areas

25  already addressed and address additional areas not currently

26  contained in the guides. On August 1, 1979, and pending the

27  adoption, by rule, of a permanent schedule, Guides to the

28  Evaluation of Permanent Impairment, copyright 1977, 1971,

29  1988, by the American Medical Association, shall be the

30  temporary schedule and shall be used for the purposes hereof.

31  For injuries after July 1, 1990, pending the adoption by

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  1  division rule of a uniform disability rating schedule, the

  2  Minnesota Department of Labor and Industry Disability Schedule

  3  shall be used unless that schedule does not address an injury.

  4  In such case, the Guides to the Evaluation of Permanent

  5  Impairment by the American Medical Association shall be used.

  6  Determination of permanent impairment under this schedule must

  7  be made by a physician licensed under chapter 458, a doctor of

  8  osteopathic medicine licensed under chapters 458 and 459, a

  9  chiropractic physician licensed under chapter 460, a podiatric

10  physician licensed under chapter 461, an optometrist licensed

11  under chapter 463, or a dentist licensed under chapter 466, as

12  appropriate considering the nature of the injury. No other

13  persons are authorized to render opinions regarding the

14  existence of or the extent of permanent impairment.

15         3.  All impairment income benefits shall be based on an

16  impairment rating using the impairment schedule referred to in

17  subparagraph 2. Impairment income benefits are paid weekly at

18  the rate of 50 percent of the employee's average weekly

19  temporary total disability benefit not to exceed the maximum

20  weekly benefit under s. 440.12. An employee's entitlement to

21  impairment income benefits begins the day after the employee

22  reaches maximum medical improvement or the expiration of

23  temporary benefits, whichever occurs earlier, and continues

24  until the earlier of:

25         a.  The expiration of a period computed at the rate of

26  3 weeks for each percentage point of impairment; or

27         b.  The death of the employee.

28         4.  After the employee has been certified by a doctor

29  as having reached maximum medical improvement or 6 weeks

30  before the expiration of temporary benefits, whichever occurs

31  earlier, the certifying doctor shall evaluate the condition of

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  1  the employee and assign an impairment rating, using the

  2  impairment schedule referred to in subparagraph 2.

  3  Compensation is not payable for the mental, psychological, or

  4  emotional injury arising out of depression from being out of

  5  work. If the certification and evaluation are performed by a

  6  doctor other than the employee's treating doctor, the

  7  certification and evaluation must be submitted to the treating

  8  doctor, and the treating doctor must indicate agreement or

  9  disagreement with the certification and evaluation. The

10  certifying doctor shall issue a written report to the

11  division, the employee, and the carrier certifying that

12  maximum medical improvement has been reached, stating the

13  impairment rating, and providing any other information

14  required by the division. If the employee has not been

15  certified as having reached maximum medical improvement before

16  the expiration of 102 weeks after the date temporary total

17  disability benefits begin to accrue, the carrier shall notify

18  the treating doctor of the requirements of this section.

19         5.  The carrier shall pay the employee impairment

20  income benefits for a period based on the impairment rating.

21         6.  The agency division may by rule specify forms and

22  procedures governing the method of payment of wage loss and

23  impairment benefits for dates of accidents before January 1,

24  1994, and for dates of accidents on or after January 1, 1994.

25         Section 8.  Subsection (1) of section 440.207, Florida

26  Statutes, is amended to read:

27         440.207  Workers' compensation system guide.--

28         (1)  The Division of Workers' Compensation of the

29  Department of Revenue Labor and Employment Security shall

30  educate all persons providing or receiving benefits pursuant

31

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  1  to this chapter as to their rights and responsibilities under

  2  this chapter.

  3         Section 9.  Paragraph (a) of subsection (1), subsection

  4  (2), paragraph (c) of subsection (3), subsections (4), (5),

  5  and (6), paragraph (a) of subsection (8), and subsections (9)

  6  and (10) of section 440.385, Florida Statutes, are amended to

  7  read:

  8         440.385  Florida Self-Insurers Guaranty Association,

  9  Incorporated.--

10         (1)  CREATION OF ASSOCIATION.--

11         (a)  There is created a nonprofit corporation to be

12  known as the "Florida Self-Insurers Guaranty Association,

13  Incorporated," hereinafter referred to as "the association."

14  Upon incorporation of the association, all individual

15  self-insurers as defined in ss. 440.02(24)(23)(a) and

16  440.38(1)(b), other than individual self-insurers which are

17  public utilities or governmental entities, shall be members of

18  the association as a condition of their authority to

19  individually self-insure in this state.  The association shall

20  perform its functions under a plan of operation as established

21  and approved under subsection (5) and shall exercise its

22  powers and duties through a board of directors as established

23  under subsection (2). The corporation shall have those powers

24  granted or permitted corporations not for profit, as provided

25  in chapter 617.

26         (2)  BOARD OF DIRECTORS.--The board of directors of the

27  association shall consist of nine persons and shall be

28  organized as established in the plan of operation.  With

29  respect to initial appointments, the Secretary of Labor and

30  Employment Security shall, by July 15, 1982, approve and

31  appoint to the board persons who are experienced with

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  1  self-insurance in this state and who are recommended by the

  2  individual self-insurers in this state required to become

  3  members of the association pursuant to the provisions of

  4  paragraph (1)(a). In the event the secretary finds that any

  5  person so recommended does not have the necessary

  6  qualifications for service on the board and a majority of the

  7  board has been appointed, the secretary shall request the

  8  directors thus far approved and appointed to recommend another

  9  person for appointment to the board.  Each director shall

10  serve for a 4-year term and may be reappointed.  Appointments

11  other than initial appointments shall be made by the Executive

12  Director of the Department of Revenue Secretary of Labor and

13  Employment Security upon recommendation of members of the

14  association.  Any vacancy on the board shall be filled for the

15  remaining period of the term in the same manner as

16  appointments other than initial appointments are made. Each

17  director shall be reimbursed for expenses incurred in carrying

18  out the duties of the board on behalf of the association.

19         (3)  POWERS AND DUTIES.--

20         (c)1.  To the extent necessary to secure funds for the

21  payment of covered claims and also to pay the reasonable costs

22  to administer them, the Department of Revenue Labor and

23  Employment Security, upon certification of the board of

24  directors, shall levy assessments based on the annual normal

25  premium each employer would have paid had the employer not

26  been self-insured.  Every assessment shall be made as a

27  uniform percentage of the figure applicable to all individual

28  self-insurers, provided that the assessment levied against any

29  self-insurer in any one year shall not exceed 1 percent of the

30  annual normal premium during the calendar year preceding the

31  date of the assessment. Assessments shall be remitted to and

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  1  administered by the board of directors in the manner specified

  2  by the approved plan.  Each employer so assessed shall have at

  3  least 30 days' written notice as to the date the assessment is

  4  due and payable.  The association shall levy assessments

  5  against any newly admitted member of the association so that

  6  the basis of contribution of any newly admitted member is the

  7  same as previously admitted members, provision for which shall

  8  be contained in the plan of operation.

  9         2.  If, in any one year, funds available from such

10  assessments, together with funds previously raised, are not

11  sufficient to make all the payments or reimbursements then

12  owing, the funds available shall be prorated, and the unpaid

13  portion shall be paid as soon thereafter as sufficient

14  additional funds become available.

15         3.  No state funds of any kind shall be allocated or

16  paid to the association or any of its accounts except those

17  state funds accruing to the association by and through the

18  assignment of rights of an insolvent employer.

19         (4)  INSOLVENCY FUND.--Upon the adoption of a plan of

20  operation or the adoption of rules by the Department of Labor

21  and Employment Security pursuant to subsection (5), there

22  shall be created an Insolvency Fund to be managed by the

23  association.

24         (a)  The Insolvency Fund is created for purposes of

25  meeting the obligations of insolvent members incurred while

26  members of the association and after the exhaustion of any

27  bond, as required under this chapter.  However, if such bond,

28  surety, or reinsurance policy is payable to the Florida

29  Self-Insurers Guaranty Association, the association shall

30  commence to provide benefits out of the Insolvency Fund and be

31  reimbursed from the bond, surety, or reinsurance policy.  The

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  1  method of operation of the Insolvency Fund shall be defined in

  2  the plan of operation as provided in subsection (5).

  3         (b)  The department shall have the authority to audit

  4  the financial soundness of the Insolvency Fund annually.

  5         (c)  The department may offer certain amendments to the

  6  plan of operation to the board of directors of the association

  7  for purposes of assuring the ongoing financial soundness of

  8  the Insolvency Fund and its ability to meet the obligations of

  9  this section.

10         (d)  The department actuary may make certain

11  recommendations to improve the orderly payment of claims.

12         (5)  PLAN OF OPERATION.--By September 15, 1982, The

13  board of directors shall use submit to the Department of Labor

14  and Employment Security a proposed plan of operation for the

15  administration of the association and the Insolvency Fund.

16         (a)  The purpose of the plan of operation shall be to

17  provide the association and the board of directors with the

18  authority and responsibility to establish the necessary

19  programs and to take the necessary actions to protect against

20  the insolvency of a member of the association.  In addition,

21  the plan shall provide that the members of the association

22  shall be responsible for maintaining an adequate Insolvency

23  Fund to meet the obligations of insolvent members provided for

24  under this act and shall authorize the board of directors to

25  contract and employ those persons with the necessary expertise

26  to carry out this stated purpose.

27         (b)  The plan of operation, and any amendments thereto,

28  shall take effect upon approval in writing by the department.

29  If the board of directors fails to submit a plan by September

30  15, 1982, or fails to make required amendments to the plan

31  within 30 days thereafter, the department shall promulgate

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  1  such rules as are necessary to effectuate the provisions of

  2  this subsection.  Such rules shall continue in force until

  3  modified by the department or superseded by a plan submitted

  4  by the board of directors and approved by the department.

  5         (b)(c)  All member employers shall comply with the plan

  6  of operation.

  7         (c)(d)  The plan of operation shall:

  8         1.  Establish the procedures whereby all the powers and

  9  duties of the association under subsection (3) will be

10  performed.

11         2.  Establish procedures for handling assets of the

12  association.

13         3.  Establish the amount and method of reimbursing

14  members of the board of directors under subsection (2).

15         4.  Establish procedures by which claims may be filed

16  with the association and establish acceptable forms of proof

17  of covered claims.  Notice of claims to the receiver or

18  liquidator of the insolvent employer shall be deemed notice to

19  the association or its agent, and a list of such claims shall

20  be submitted periodically to the association or similar

21  organization in another state by the receiver or liquidator.

22         5.  Establish regular places and times for meetings of

23  the board of directors.

24         6.  Establish procedures for records to be kept of all

25  financial transactions of the association and its agents and

26  the board of directors.

27         7.  Provide that any member employer aggrieved by any

28  final action or decision of the association may appeal to the

29  department within 30 days after the action or decision.

30

31

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  1         8.  Establish the procedures whereby recommendations of

  2  candidates for the board of directors shall be submitted to

  3  the department.

  4         9.  Contain additional provisions necessary or proper

  5  for the execution of the powers and duties of the association.

  6         (d)(e)  The plan of operation may provide that any or

  7  all of the powers and duties of the association, except those

  8  specified under subparagraphs (c)(d)1. and 2., be delegated to

  9  a corporation, association, or other organization which

10  performs or will perform functions similar to those of this

11  association or its equivalent in two or more states.  Such a

12  corporation, association, or organization shall be reimbursed

13  as a servicing facility would be reimbursed and shall be paid

14  for its performance of any other functions of the association.

15  A delegation of powers or duties under this subsection shall

16  take effect only with the approval of both the board of

17  directors and the department and may be made only to a

18  corporation, association, or organization which extends

19  protection which is not substantially less favorable and

20  effective than the protection provided by this section.

21         (6)  POWERS AND DUTIES OF DEPARTMENT OF REVENUE LABOR

22  AND EMPLOYMENT SECURITY.--

23         (a)  The department shall:

24         1.  Notify the association of the existence of an

25  insolvent employer not later than 3 days after it receives

26  notice of the determination of insolvency.

27         2.  Upon request of the board of directors, provide the

28  association with a statement of the annual normal premiums of

29  each member employer.

30         (b)  The department may:

31

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  1         1.  Require that the association notify the member

  2  employers and any other interested parties of the

  3  determination of insolvency and of their rights under this

  4  section.  Such notification shall be by mail at the last known

  5  address thereof when available; but, if sufficient information

  6  for notification by mail is not available, notice by

  7  publication in a newspaper of general circulation shall be

  8  sufficient.

  9         2.  Suspend or revoke the authority of any member

10  employer failing to pay an assessment when due or failing to

11  comply with the plan of operation to self-insure in this

12  state. As an alternative, the department may levy a fine on

13  any member employer failing to pay an assessment when due.

14  Such fine shall not exceed 5 percent of the unpaid assessment

15  per month, except that no fine shall be less than $100 per

16  month.

17         3.  Revoke the designation of any servicing facility if

18  the department finds that claims are being handled

19  unsatisfactorily.

20         (8)  PREVENTION OF INSOLVENCIES.--To aid in the

21  detection and prevention of employer insolvencies:

22         (a)  Upon determination by majority vote that any

23  member employer may be insolvent or in a financial condition

24  hazardous to the employees thereof or to the public, it shall

25  be the duty of the board of directors to notify the Department

26  of Revenue Labor and Employment Security of any information

27  indicating such condition.

28         (9)  EXAMINATION OF THE ASSOCIATION.--The association

29  shall be subject to examination and regulation by the

30  Department of Revenue Labor and Employment Security.  No later

31  than March 30 of each year, the board of directors shall

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  1  submit a financial report for the preceding calendar year in a

  2  form approved by the department.

  3         (10)  IMMUNITY.--There shall be no liability on the

  4  part of, and no cause of action of any nature shall arise

  5  against, any member employer, the association or its agents or

  6  employees, the board of directors, or the Department of

  7  Revenue Labor and Employment Security or its representatives

  8  for any action taken by them in the performance of their

  9  powers and duties under this section.

10         Section 10.  Paragraph (e) of subsection (9) of section

11  440.49, Florida Statutes, is amended to read:

12         440.49  Limitation of liability for subsequent injury

13  through Special Disability Trust Fund.--

14         (9)  SPECIAL DISABILITY TRUST FUND.--

15         (e)  The Department of Revenue Labor and Employment

16  Security or administrator shall report annually on the status

17  of the Special Disability Trust Fund.  The report shall update

18  the estimated undiscounted and discounted fund liability, as

19  determined by an independent actuary, change in the total

20  number of notices of claim on file with the fund in addition

21  to the number of newly filed notices of claim, change in the

22  number of proofs of claim processed by the fund, the fee

23  revenues refunded and revenues applied to pay down the

24  liability of the fund, the average time required to reimburse

25  accepted claims, and the average administrative costs per

26  claim.  The department or administrator shall submit its

27  report to the Governor, the President of the Senate, and the

28  Speaker of the House of Representatives by December 1 of each

29  year.

30         Section 11.  Paragraphs (b) through (h) of subsection

31  (1) of section 440.491, Florida Statutes, are redesignated as

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  1  paragraphs (c) through (i), respectively, and a new paragraph

  2  (b) is added to said subsection, and paragraph (a) of

  3  subsection (3), paragraph (b) of subsection (4), paragraphs

  4  (b) and (c) of subsection (5), and subsections (6), (7), and

  5  (8) of said section are amended, to read:

  6         440.491  Reemployment of injured workers;

  7  rehabilitation.--

  8         (1)  DEFINITIONS.--As used in this section, the term:

  9         (b)  "Department" means the Department of Education.

10         (3)  REEMPLOYMENT STATUS REVIEWS AND REPORTS.--

11         (a)  When an employee who has suffered an injury

12  compensable under this chapter is unemployed 60 days after the

13  date of injury and is receiving benefits for temporary total

14  disability, temporary partial disability, or wage loss, and

15  has not yet been provided medical care coordination and

16  reemployment services voluntarily by the carrier, the carrier

17  must determine whether the employee is likely to return to

18  work and must report its determination to the department

19  division. The carrier must thereafter determine the

20  reemployment status of the employee at 90-day intervals as

21  long as the employee remains unemployed, is not receiving

22  medical care coordination or reemployment services, and is

23  receiving the benefits specified in this subsection.

24         (4)  REEMPLOYMENT ASSESSMENTS.--

25         (b)  The carrier shall authorize only a qualified

26  rehabilitation provider to provide the reemployment

27  assessment. The rehabilitation provider shall conduct its

28  assessment and issue a report to the carrier, the employee,

29  and the department division within 30 days after the time such

30  assessment is complete.

31

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  1         (5)  MEDICAL CARE COORDINATION AND REEMPLOYMENT

  2  SERVICES.--

  3         (b)  If the rehabilitation provider concludes that

  4  training and education are necessary to return the employee to

  5  suitable gainful employment, or if the employee has not

  6  returned to suitable gainful employment within 180 days after

  7  referral for reemployment services or receives $2,500 in

  8  reemployment services, whichever comes first, the carrier must

  9  discontinue reemployment services and refer the employee to

10  the department division for a vocational evaluation.

11  Notwithstanding any provision of chapter 289 or chapter 627,

12  the cost of a reemployment assessment and the first $2,500 in

13  reemployment services to an injured employee must not be

14  treated as loss adjustment expense for workers' compensation

15  ratemaking purposes.

16         (c)  A carrier may voluntarily provide medical care

17  coordination or reemployment services to the employee at

18  intervals more frequent than those required in this section.

19  For the purpose of monitoring reemployment, the carrier or the

20  rehabilitation provider shall report to the department

21  division, in the manner prescribed by the department division,

22  the date of reemployment and wages of the employee. The

23  carrier shall report its voluntary service activity to the

24  department division as required by rule. Voluntary services

25  offered by the carrier for any of the following injuries must

26  be considered benefits for purposes of ratemaking: traumatic

27  brain injury; spinal cord injury; amputation, including loss

28  of an eye or eyes; burns of 5 percent or greater of the total

29  body surface.

30         (6)  TRAINING AND EDUCATION.--

31

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  1         (a)  Upon referral of an injured employee by the

  2  carrier, or upon the request of an injured employee, the

  3  department division shall conduct a training and education

  4  screening to determine whether it should refer the employee

  5  for a vocational evaluation and, if appropriate, approve

  6  training and education or other vocational services for the

  7  employee.  The department division may not approve formal

  8  training and education programs unless it determines, after

  9  consideration of the reemployment assessment, pertinent

10  reemployment status reviews or reports, and such other

11  relevant factors as it prescribes by rule, that the

12  reemployment plan is likely to result in return to suitable

13  gainful employment.  The department division is authorized to

14  expend moneys from the Workers' Compensation Administration

15  Trust Fund, established by s. 440.50, to secure appropriate

16  training and education or other vocational services when

17  necessary to satisfy the recommendation of a vocational

18  evaluator.  The department division shall establish training

19  and education standards pertaining to employee eligibility,

20  course curricula and duration, and associated costs.

21         (b)  When it appears that an employee who has attained

22  maximum medical improvement requires training and education to

23  obtain suitable gainful employment, the employer shall pay the

24  employee additional temporary total compensation while the

25  employee receives such training and education for a period not

26  to exceed 26 weeks, which period may be extended for an

27  additional 26 weeks or less, if such extended period is

28  determined to be necessary and proper by a judge of

29  compensation claims. However, a carrier or employer is not

30  precluded from voluntarily paying additional temporary total

31  disability compensation beyond that period. If an employee

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  1  requires temporary residence at or near a facility or an

  2  institution providing training and education which is located

  3  more than 50 miles away from the employee's customary

  4  residence, the reasonable cost of board, lodging, or travel

  5  must be borne by the department division from the Workers'

  6  Compensation Administration Trust Fund established by s.

  7  440.50. An employee who refuses to accept training and

  8  education that is recommended by the vocational evaluator and

  9  considered necessary by the department division is subject to

10  a 50-percent reduction in weekly compensation benefits,

11  including wage-loss benefits, as determined under s.

12  440.15(3)(b).

13         (7)  PROVIDER QUALIFICATIONS.--

14         (a)  The department division shall investigate and

15  maintain a directory of each qualified public and private

16  rehabilitation provider, facility, and agency, and shall

17  establish by rule the minimum qualifications, credentials, and

18  requirements that each rehabilitation service provider,

19  facility, and agency must satisfy to be eligible for listing

20  in the directory. These minimum qualifications and credentials

21  must be based on those generally accepted within the service

22  specialty for which the provider, facility, or agency is

23  approved.

24         (b)  The department division shall impose a biennial

25  application fee of $25 for each listing in the directory, and

26  all such fees must be deposited in the Workers' Compensation

27  Administration Trust Fund.

28         (c)  The department division shall monitor and evaluate

29  each rehabilitation service provider, facility, and agency

30  qualified under this subsection to ensure its compliance with

31  the minimum qualifications and credentials established by the

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  1  department division. The failure of a qualified rehabilitation

  2  service provider, facility, or agency to provide the

  3  department division with information requested or access

  4  necessary for the department division to satisfy its

  5  responsibilities under this subsection is grounds for

  6  disqualifying the provider, facility, or agency from further

  7  referrals.

  8         (d)  A qualified rehabilitation service provider,

  9  facility, or agency may not be authorized by an employer, a

10  carrier, or the department division to provide any services,

11  including expert testimony, under this section in this state

12  unless the provider, facility, or agency is listed or has been

13  approved for listing in the directory. This restriction does

14  not apply to services provided outside this state under this

15  section.

16         (e)  The department division, after consultation with

17  representatives of employees, employers, carriers,

18  rehabilitation providers, and qualified training and education

19  providers, shall adopt rules governing professional practices

20  and standards.

21         (8)  CARRIER PRACTICES.--The department division shall

22  monitor the selection of providers and the provision of

23  services by carriers under this section for consistency with

24  legislative intent set forth in subsection (2).

25         Section 12.  Section 440.525, Florida Statutes, is

26  amended to read:

27         440.525  Examination of carriers.--Beginning July 1,

28  1994, The Division of Workers' Compensation of the Department

29  of Revenue Labor and Employment Security may examine each

30  carrier as often as is warranted to ensure that carriers are

31  fulfilling their obligations under the law, and shall examine

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  1  each carrier not less frequently than once every 3 years. The

  2  examination must cover the preceding 3 fiscal years of the

  3  carrier's operations and must commence within 12 months after

  4  the end of the most recent fiscal year being covered by the

  5  examination. The examination may cover any period of the

  6  carrier's operations since the last previous examination.

  7         Section 13.  Subsections (1), (4), and (5) of section

  8  443.012, Florida Statutes, are amended to read:

  9         443.012  Unemployment Appeals Commission.--

10         (1)  There is created within the Agency for Workforce

11  Innovation Department of Labor and Employment Security an

12  Unemployment Appeals Commission, hereinafter referred to as

13  the "commission."  The commission shall consist of a chair and

14  two other members to be appointed by the Governor, subject to

15  confirmation by the Senate.  Not more than one appointee must

16  be a person who, on account of previous vocation, employment,

17  or affiliation, is classified as a representative of

18  employers; and not more than one such appointee must be a

19  person who, on account of previous vocation, employment, or

20  affiliation, is classified as a representative of employees.

21         (a)  The chair shall devote his or her entire time to

22  commission duties and shall be responsible for the

23  administrative functions of the commission.

24         (b)  The chair shall have the authority to appoint a

25  general counsel and such other personnel as may be necessary

26  to carry out the duties and responsibilities of the

27  commission.

28         (c)  The chair shall have the qualifications required

29  by law for a judge of the circuit court and shall not engage

30  in any other business vocation or employment. Notwithstanding

31  any other provisions of existing law, the chair shall be paid

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

  2  circuit court.

  3         (d)  The remaining members shall be paid a stipend of

  4  $100 for each day they are engaged in the work of the

  5  commission.  The chair and other members shall also be

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

  7         (e)  The total salary and travel expenses of each

  8  member of the commission shall be paid from the Employment

  9  Security Administration Trust Fund.

10         (4)  The property, personnel, and appropriations

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

12  responsibilities of the commission shall be provided to the

13  commission by the Agency for Workforce Innovation Department

14  of Labor and Employment Security.

15         (5)  The commission shall not be subject to control,

16  supervision, or direction by the Agency for Workforce

17  Innovation Department of Labor and Employment Security in the

18  performance of its powers and duties under this chapter.

19         Section 14.  Subsection (12) of section 443.036,

20  Florida Statutes, is amended to read:

21         443.036  Definitions.--As used in this chapter, unless

22  the context clearly requires otherwise:

23         (12)  COMMISSION.--"Commission" means the Unemployment

24  Appeals Commission of the Department of Labor and Employment

25  Security.

26         Section 15.  Subsection (3) of section 447.02, Florida

27  Statutes, is amended to read:

28         447.02  Definitions.--The following terms, when used in

29  this chapter, shall have the meanings ascribed to them in this

30  section:

31

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  1         (3)  The term "department" means the Department of

  2  Business and Professional Regulation Labor and Employment

  3  Security.

  4         Section 16.  Subsection (4) of section 447.305, Florida

  5  Statutes, is amended to read:

  6         447.305  Registration of employee organization.--

  7         (4)  Notification of registrations and renewals of

  8  registration shall be furnished at regular intervals by the

  9  commission to the Department of Business and Professional

10  Regulation Labor and Employment Security.

11         Section 17.  Subsection (4) of section 450.012, Florida

12  Statutes, is amended to read:

13         450.012  Definitions.--For the purpose of this chapter,

14  the word, phrase, or term:

15         (4)  "Department" means the Department of Business and

16  Professional Regulation Labor and Employment Security.

17         Section 18.  Paragraph (j) of subsection (1) of section

18  450.191, Florida Statutes, is amended to read:

19         450.191  Executive Office of the Governor; powers and

20  duties.--

21         (1)  The Executive Office of the Governor is authorized

22  and directed to:

23         (j)  Cooperate with the farm labor office of the

24  Department of Business and Professional Regulation Labor and

25  Employment Security in the recruitment and referral of migrant

26  laborers and other persons for the planting, cultivation, and

27  harvesting of agricultural crops in Florida.

28         Section 19.  Subsection (2) of section 450.28, Florida

29  Statutes, is amended to read:

30         450.28  Definitions.--

31

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  1         (2)  "Department" means the Department of Business and

  2  Professional Regulation Labor and Employment Security.

  3         Section 20.  Section 627.0915, Florida Statutes, is

  4  amended to read:

  5         627.0915  Rate filings; workers' compensation,

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

  7  Insurance shall approve rating plans for workers' compensation

  8  insurance that give specific identifiable consideration in the

  9  setting of rates to employers that either implement a

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

11  Division of Workers' Compensation of the Department of Revenue

12  Labor and Employment Security or implement a safety program

13  pursuant to provisions of the rating plan or implement both a

14  drug-free workplace program and a safety program. The plans

15  must be actuarially sound and must state the savings

16  anticipated to result from such drug-testing and safety

17  programs.

18         Section 21.  Paragraph (m) of subsection (2) of section

19  110.205, Florida Statutes, is amended to read:

20         110.205  Career service; exemptions.--

21         (2)  EXEMPT POSITIONS.--The exempt positions that are

22  not covered by this part include the following:

23         (m)  All assistant division director, deputy division

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

25  those positions determined by the department to have

26  managerial responsibilities comparable to such positions,

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

28  the Department of Health, the Department of Children and

29  Family Services, and the Department of Corrections that are

30  assigned primary duties of serving as the superintendent or

31  assistant superintendent, or warden or assistant warden, of an

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  1  institution; positions in the Department of Corrections that

  2  are assigned primary duties of serving as the circuit

  3  administrator or deputy circuit administrator; positions in

  4  the Department of Transportation that are assigned primary

  5  duties of serving as regional toll managers and managers of

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

  7  in the Department of Environmental Protection that are

  8  assigned the duty of an Environmental Administrator or program

  9  administrator; those positions described in s. 20.171 as

10  included in the Senior Management Service; and positions in

11  the Department of Health that are assigned the duties of

12  Environmental Administrator, Assistant County Health

13  Department Director, and County Health Department Financial

14  Administrator. Unless otherwise fixed by law, the department

15  shall set the salary and benefits of these positions in

16  accordance with the rules established for the Selected Exempt

17  Service.

18         Section 22.  Paragraph (h) of subsection (2) of section

19  112.19, Florida Statutes, is amended to read:

20         112.19  Law enforcement, correctional, and correctional

21  probation officers; death benefits.--

22         (2)

23         (h)1.  Any employer who employs a full-time law

24  enforcement, correctional, or correctional probation officer

25  who, on or after January 1, 1995, suffers a catastrophic

26  injury, as defined in s. 440.02(37), in the line of duty shall

27  pay the entire premium of the employer's health insurance plan

28  for the injured employee, the injured employee's spouse, and

29  for each dependent child of the injured employee until the

30  child reaches the age of majority or until the end of the

31  calendar year in which the child reaches the age of 25 if the

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  1  child continues to be dependent for support, or the child is a

  2  full-time or part-time student and is dependent for support.

  3  The term "health insurance plan" does not include supplemental

  4  benefits that are not part of the basic group health insurance

  5  plan.  If the injured employee subsequently dies, the employer

  6  shall continue to pay the entire health insurance premium for

  7  the surviving spouse until remarried, and for the dependent

  8  children, under the conditions outlined in this paragraph.

  9  However:

10         a.  Health insurance benefits payable from any other

11  source shall reduce benefits payable under this section.

12         b.  It is unlawful for a person to willfully and

13  knowingly make, or cause to be made, or to assist, conspire

14  with, or urge another to make, or cause to be made, any false,

15  fraudulent, or misleading oral or written statement to obtain

16  health insurance coverage as provided under this paragraph.  A

17  person who violates this sub-subparagraph commits a

18  misdemeanor of the first degree, punishable as provided in s.

19  775.082 or s. 775.083.

20         c.  In addition to any applicable criminal penalty,

21  upon conviction for a violation as described in

22  sub-subparagraph b., a law enforcement, correctional, or

23  correctional probation officer or other beneficiary who

24  receives or seeks to receive health insurance benefits under

25  this paragraph shall forfeit the right to receive such health

26  insurance benefits, and shall reimburse the employer for all

27  benefits paid due to the fraud or other prohibited activity.

28  For purposes of this sub-subparagraph, "conviction" means a

29  determination of guilt that is the result of a plea or trial,

30  regardless of whether adjudication is withheld.

31

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  1         2.  In order for the officer, spouse, and dependent

  2  children to be eligible for such insurance coverage, the

  3  injury must have occurred as the result of the officer's

  4  response to fresh pursuit, the officer's response to what is

  5  reasonably believed to be an emergency, or an unlawful act

  6  perpetrated by another.  Except as otherwise provided herein,

  7  nothing in this paragraph shall be construed to limit health

  8  insurance coverage for which the officer, spouse, or dependent

  9  children may otherwise be eligible, except that a person who

10  qualifies under this section shall not be eligible for the

11  health insurance subsidy provided under chapter 121, chapter

12  175, or chapter 185.

13         Section 23.  Paragraph (g) of subsection (2) of section

14  112.191, Florida Statutes, is amended to read:

15         112.191  Firefighters; death benefits.--

16         (2)

17         (g)1.  Any employer who employs a full-time firefighter

18  who, on or after January 1, 1995, suffers a catastrophic

19  injury, as defined in s. 440.02(37), in the line of duty shall

20  pay the entire premium of the employer's health insurance plan

21  for the injured employee, the injured employee's spouse, and

22  for each dependent child of the injured employee until the

23  child reaches the age of majority or until the end of the

24  calendar year in which the child reaches the age of 25 if the

25  child continues to be dependent for support, or the child is a

26  full-time or part-time student and is dependent for support.

27  The term "health insurance plan" does not include supplemental

28  benefits that are not part of the basic group health insurance

29  plan.  If the injured employee subsequently dies, the employer

30  shall continue to pay the entire health insurance premium for

31  the surviving spouse until remarried, and for the dependent

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  1  children, under the conditions outlined in this paragraph.

  2  However:

  3         a.  Health insurance benefits payable from any other

  4  source shall reduce benefits payable under this section.

  5         b.  It is unlawful for a person to willfully and

  6  knowingly make, or cause to be made, or to assist, conspire

  7  with, or urge another to make, or cause to be made, any false,

  8  fraudulent, or misleading oral or written statement to obtain

  9  health insurance coverage as provided under this paragraph.  A

10  person who violates this sub-subparagraph commits a

11  misdemeanor of the first degree, punishable as provided in s.

12  775.082 or s. 775.083.

13         c.  In addition to any applicable criminal penalty,

14  upon conviction for a violation as described in

15  sub-subparagraph b., a firefighter or other beneficiary who

16  receives or seeks to receive health insurance benefits under

17  this paragraph shall forfeit the right to receive such health

18  insurance benefits, and shall reimburse the employer for all

19  benefits paid due to the fraud or other prohibited activity.

20  For purposes of this sub-subparagraph, "conviction" means a

21  determination of guilt that is the result of a plea or trial,

22  regardless of whether adjudication is withheld.

23         2.  In order for the firefighter, spouse, and dependent

24  children to be eligible for such insurance coverage, the

25  injury must have occurred as the result of the firefighter's

26  response to what is reasonably believed to be an emergency

27  involving the protection of life or property, or an unlawful

28  act perpetrated by another.  Except as otherwise provided

29  herein, nothing in this paragraph shall be construed to limit

30  health insurance coverage for which the firefighter, spouse,

31  or dependent children may otherwise be eligible, except that a

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  1  person who qualifies for benefits under this section shall not

  2  be eligible for the health insurance subsidy provided under

  3  chapter 121, chapter 175, or chapter 185.

  4

  5  Notwithstanding any provision of this section to the contrary,

  6  the death benefits provided in paragraphs (b), (c), and (f)

  7  shall also be applicable and paid in cases where a firefighter

  8  received bodily injury prior to July 1, 1993, and subsequently

  9  died on or after July 1, 1993, as a result of such

10  in-line-of-duty injury.

11         Section 24.  Section 121.125, Florida Statutes, is

12  amended to read:

13         121.125  Credit for workers' compensation payment

14  periods.--A member of the retirement system created by this

15  chapter who has been eligible or becomes eligible to receive

16  workers' compensation payments for an injury or illness

17  occurring during his or her employment while a member of any

18  state retirement system shall, upon return to active

19  employment with a covered employer for 1 calendar month or

20  upon approval for disability retirement in accordance with s.

21  121.091(4), receive full retirement credit for the period

22  prior to such return to active employment or disability

23  retirement for which the workers' compensation payments were

24  received.  However, no member may receive retirement credit

25  for any such period occurring after the earlier of the date of

26  maximum medical improvement has been attained as defined in s.

27  440.02(9) or the date termination has occurred as defined in

28  s. 121.021(39). The employer of record at the time of the

29  worker's compensation injury or illness shall make the

30  required retirement contributions based on the member's rate

31  of monthly compensation immediately prior to his or her

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  1  receiving workers' compensation payments for retirement credit

  2  received by the member.

  3         Section 25.  Subsection (7) of section 122.03, Florida

  4  Statutes, is amended to read:

  5         122.03  Contributions; participants; prior service

  6  credit.--

  7         (7)  A member of the retirement system created by this

  8  chapter who has been eligible or becomes eligible to receive

  9  workers' compensation payments for an injury or illness

10  occurring during his or her employment while a member of any

11  state retirement system shall, upon his or her return to

12  active employment with a covered employer for 1 calendar month

13  or upon his or her approval for disability retirement in

14  accordance with s. 122.09, receive full retirement credit for

15  the period prior to such return to active employment or

16  disability retirement for which the workers' compensation

17  payments were received.  However, no member may receive

18  retirement credit for any such period occurring after the

19  earlier of the date of maximum medical improvement has been

20  attained as defined in s. 440.02(9) or the date termination

21  has occurred as defined in s. 121.021(39). The employer of

22  record at the time of the worker's compensation injury or

23  illness shall make the required employee and employer

24  retirement contributions based on the member's rate of monthly

25  compensation immediately prior to receipt of workers'

26  compensation payments.

27         Section 26.  Subsection (10) of section 238.06, Florida

28  Statutes, is amended to read:

29         238.06  Membership application, creditable service, and

30  time for making contributions.--

31

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  1         (10)  A member of the retirement system created by this

  2  chapter who has been eligible or becomes eligible to receive

  3  workers' compensation payments for an injury or illness

  4  occurring during his or her employment while a member of any

  5  state retirement system shall, upon his or her return to

  6  active employment with a covered employer for 1 calendar month

  7  or upon his or her approval for disability retirement in

  8  accordance with s. 238.07, receive full retirement credit for

  9  the period prior to such return to active employment or

10  disability retirement for which the workers' compensation

11  payments were received.  However, no member may receive

12  retirement credit for any such period occurring after the

13  earlier of the date of maximum medical improvement has been

14  attained as defined in s. 440.02(9) or the date termination

15  has occurred as defined in s. 121.021(39). The employer of

16  record at the time of the worker's compensation injury or

17  illness shall make the required employee and employer

18  retirement contributions based on the member's rate of monthly

19  compensation immediately prior to his or her receiving

20  workers' compensation payments.

21         Section 27.  Subsection (1) of section 440.10, Florida

22  Statutes, is amended to read:

23         440.10  Liability for compensation.--

24         (1)(a)  Every employer coming within the provisions of

25  this chapter, including any brought within the chapter by

26  waiver of exclusion or of exemption, shall be liable for, and

27  shall secure, the payment to his or her employees, or any

28  physician, surgeon, or pharmacist providing services under the

29  provisions of s. 440.13, of the compensation payable under ss.

30  440.13, 440.15, and 440.16. Any contractor or subcontractor

31  who engages in any public or private construction in the state

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  1  shall secure and maintain compensation for his or her

  2  employees under this chapter as provided in s. 440.38.

  3         (b)  In case a contractor sublets any part or parts of

  4  his or her contract work to a subcontractor or subcontractors,

  5  all of the employees of such contractor and subcontractor or

  6  subcontractors engaged on such contract work shall be deemed

  7  to be employed in one and the same business or establishment;

  8  and the contractor shall be liable for, and shall secure, the

  9  payment of compensation to all such employees, except to

10  employees of a subcontractor who has secured such payment.

11         (c)  A contractor may require a subcontractor to

12  provide evidence of workers' compensation insurance or a copy

13  of his or her certificate of election. A subcontractor

14  electing to be exempt as a sole proprietor, partner, or

15  officer of a corporation shall provide a copy of his or her

16  certificate of election to the contractor.

17         (d)1.  If a contractor becomes liable for the payment

18  of compensation to the employees of a subcontractor who has

19  failed to secure such payment in violation of s. 440.38, the

20  contractor or other third-party payor shall be entitled to

21  recover from the subcontractor all benefits paid or payable

22  plus interest unless the contractor and subcontractor have

23  agreed in writing that the contractor will provide coverage.

24         2.  If a contractor or third-party payor becomes liable

25  for the payment of compensation to the employee of a

26  subcontractor who is actively engaged in the construction

27  industry and has elected to be exempt from the provisions of

28  this chapter, but whose election is invalid, the contractor or

29  third-party payor may recover from the claimant, partnership,

30  or corporation all benefits paid or payable plus interest,

31

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  1  unless the contractor and the subcontractor have agreed in

  2  writing that the contractor will provide coverage.

  3         (e)  A subcontractor is not liable for the payment of

  4  compensation to the employees of another subcontractor on such

  5  contract work and is not protected by the

  6  exclusiveness-of-liability provisions of s. 440.11 from action

  7  at law or in admiralty on account of injury of such employee

  8  of another subcontractor.

  9         (f)  If an employer willfully fails to secure

10  compensation as required by this chapter, the division may

11  assess against the employer a penalty not to exceed $5,000 for

12  each employee of that employer who is classified by the

13  employer as an independent contractor but who is found by the

14  division to not meet the criteria for an independent

15  contractor that are set forth in s. 440.02.

16         (g)  For purposes of this section, a person is

17  conclusively presumed to be an independent contractor if:

18         1.  The independent contractor provides the general

19  contractor with an affidavit stating that he or she meets all

20  the requirements of s. 440.02(15)(14)(d); and

21         2.  The independent contractor provides the general

22  contractor with a valid certificate of workers' compensation

23  insurance or a valid certificate of exemption issued by the

24  division.

25

26  A sole proprietor, partner, or officer of a corporation who

27  elects exemption from this chapter by filing a certificate of

28  election under s. 440.05 may not recover benefits or

29  compensation under this chapter.  An independent contractor

30  who provides the general contractor with both an affidavit

31  stating that he or she meets the requirements of s.

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  1  440.02(15)(14)(d) and a certificate of exemption is not an

  2  employee under s. 440.02(15)(14)(c) and may not recover

  3  benefits under this chapter.  For purposes of determining the

  4  appropriate premium for workers' compensation coverage,

  5  carriers may not consider any person who meets the

  6  requirements of this paragraph to be an employee.

  7         Section 28.  Subsection (1) of section 440.104, Florida

  8  Statutes, is amended to read:

  9         440.104  Competitive bidder; civil actions.--

10         (1)  Any person engaged in the construction industry,

11  as provided in s. 440.02(7), who loses a competitive bid for a

12  contract shall have a cause of action for damages against the

13  person awarded the contract for which the bid was made, if the

14  person making the losing bid establishes that the winning

15  bidder knew or should have known that he or she was in

16  violation of s. 440.10, s. 440.105, or s. 440.38 while

17  performing the work under the contract.

18         Section 29.  Subsection (4) of section 440.14, Florida

19  Statutes, is amended to read:

20         440.14  Determination of pay.--

21         (4)  Upon termination of the employee or upon

22  termination of the payment of fringe benefits of any employee

23  who is collecting indemnity benefits pursuant to s. 440.15(2)

24  or (3)(b), the employer shall within 7 days of such

25  termination file a corrected 13-week wage statement reflecting

26  the wages paid and the fringe benefits that had been paid to

27  the injured employee, as provided defined in s.

28  440.02(28)(27).

29         Section 30.  Sections 20.171 and 440.4416, Florida

30  Statutes, are repealed.

31

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  1         Section 31.  If any provision of this act or its

  2  application to any person or circumstance is held invalid, the

  3  invalidity does not affect other provisions or applications of

  4  the act which can be given effect without the invalid

  5  provision or application, and to this end the provisions of

  6  this act are severable.

  7         Section 32.  This act shall take effect January 1,

  8  2002.

  9

10            *****************************************

11                          HOUSE SUMMARY

12
      Transfers various divisions, offices, and functions from
13    the Department of Labor and Employment Security to the
      Department of Revenue, the Agency for Health Care
14    Administration, the Department of Education, the
      Department of Business and Professional Regulation, and
15    the State Technology Office. Transfers the Unemployment
      Appeals Commission to the Agency for Workforce
16    Innovation. Makes other revisions, to conform. See bill
      for details.
17

18

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20

21

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