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



                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

  6

  7

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  9

10  ______________________________________________________________

11  Representative(s) Ross and Alexander offered the following:

12

13         Amendment (with title amendment) 

14         On page 4, line 1 of the bill

15

16  insert:

17         Section 3.  Paragraphs (b), (c), and (d) of subsection

18  (14) of section 440.02, Florida Statutes, are amended, and

19  subsections (40) and (41) are added to that section, 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         (14)

24         (b)  "Employee" includes any person who is an officer

25  of a corporation and who performs services for remuneration

26  for such corporation within this state, whether or not such

27  services are continuous.

28         1.  Any officer of a corporation may elect to be exempt

29  from this chapter by filing written notice of the election

30  with the division as provided in s. 440.05.

31         2.  As to officers of a corporation who are actively

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  engaged in the construction industry, no more than three

  2  officers may elect to be exempt from this chapter by filing

  3  written notice of the election with the division as provided

  4  in s. 440.05. However, any exemption obtained by a corporate

  5  officer of a corporation actively engaged in the construction

  6  industry  is not applicable with respect to any commercial

  7  building project estimated to be valued at $250,000 or

  8  greater.

  9         3.  An officer of a corporation who elects to be exempt

10  from this chapter by filing a written notice of the election

11  with the division as provided in s. 440.05 is not an employee.

12

13  Services are presumed to have been rendered to the corporation

14  if the officer is compensated by other than dividends upon

15  shares of stock of the corporation which the officer owns.

16         (c)1.  "Employee" includes a sole proprietor or a

17  partner who devotes full time to the proprietorship or

18  partnership and, except as provided in this paragraph, elects

19  to be included in the definition of employee by filing notice

20  thereof as provided in s. 440.05. Partners or sole proprietors

21  actively engaged in the construction industry are considered

22  employees unless they elect to be excluded from the definition

23  of employee by filing written notice of the election with the

24  division as provided in s. 440.05. However, no more than three

25  partners in a partnership that is actively engaged in the

26  construction industry may elect to be excluded. A sole

27  proprietor or partner who is actively engaged in the

28  construction industry and who elects to be exempt from this

29  chapter by filing a written notice of the election with the

30  division as provided in s. 440.05 is not an employee. For

31  purposes of this chapter, an independent contractor is an

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  employee unless he or she meets all of the conditions set

  2  forth in subparagraph (d)1.

  3         2.  Notwithstanding the provisions of subparagraph 1.,

  4  the term "employee" includes a sole proprietor or partner

  5  actively engaged in the construction industry with respect to

  6  any commercial building project estimated to be valued at

  7  $250,000 or greater. Any exemption obtained is not applicable,

  8  with respect to work performed at such a commercial building

  9  project.

10         (d)  "Employee" does not include:

11         1.  An independent contractor, if:

12         a.  The independent contractor maintains a separate

13  business with his or her own work facility, truck, equipment,

14  materials, or similar accommodations;

15         b.  The independent contractor holds or has applied for

16  a federal employer identification number, unless the

17  independent contractor is a sole proprietor who is not

18  required to obtain a federal employer identification number

19  under state or federal requirements;

20         c.  The independent contractor performs or agrees to

21  perform specific services or work for specific amounts of

22  money and controls the means of performing the services or

23  work;

24         d.  The independent contractor incurs the principal

25  expenses related to the service or work that he or she

26  performs or agrees to perform;

27         e.  The independent contractor is responsible for the

28  satisfactory completion of work or services that he or she

29  performs or agrees to perform and is or could be held liable

30  for a failure to complete the work or services;

31         f.  The independent contractor receives compensation

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  for work or services performed for a commission or on a

  2  per-job or competitive-bid basis and not on any other basis;

  3         g.  The independent contractor may realize a profit or

  4  suffer a loss in connection with performing work or services;

  5         h.  The independent contractor has continuing or

  6  recurring business liabilities or obligations; and

  7         i.  The success or failure of the independent

  8  contractor's business depends on the relationship of business

  9  receipts to expenditures.

10

11  However, the determination as to whether an individual

12  included in the Standard Industrial Classification Manual of

13  1987, Industry Numbers 0711, 0721, 0722, 0751, 0761, 0762,

14  0781, 0782, 0783, 0811, 0831, 0851, 2411, 2421, 2435, 2436,

15  2448, or 2449, or a newspaper delivery person, is an

16  independent contractor is governed not by the criteria in this

17  paragraph but by common-law principles, giving due

18  consideration to the business activity of the individual.

19  Notwithstanding the provisions of this paragraph or any other

20  provision of this chapter, with respect to any commercial

21  building project estimated to be valued at $250,000 or

22  greater, a person who is actively engaged in the construction

23  industry is not an independent contractor and is either an

24  employer or an employee who may not be exempt from the

25  coverage requirements of this chapter.

26         2.  A real estate salesperson or agent, if that person

27  agrees, in writing, to perform for remuneration solely by way

28  of commission.

29         3.  Bands, orchestras, and musical and theatrical

30  performers, including disk jockeys, performing in licensed

31  premises as defined in chapter 562, if a written contract

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  evidencing an independent contractor relationship is entered

  2  into before the commencement of such entertainment.

  3         4.  An owner-operator of a motor vehicle who transports

  4  property under a written contract with a motor carrier which

  5  evidences a relationship by which the owner-operator assumes

  6  the responsibility of an employer for the performance of the

  7  contract, if the owner-operator is required to furnish the

  8  necessary motor vehicle equipment and all costs incidental to

  9  the performance of the contract, including, but not limited

10  to, fuel, taxes, licenses, repairs, and hired help; and the

11  owner-operator is paid a commission for transportation service

12  and is not paid by the hour or on some other time-measured

13  basis.

14         5.  A person whose employment is both casual and not in

15  the course of the trade, business, profession, or occupation

16  of the employer.

17         6.  A volunteer, except a volunteer worker for the

18  state or a county, municipality, or other governmental entity.

19  A person who does not receive monetary remuneration for

20  services is presumed to be a volunteer unless there is

21  substantial evidence that a valuable consideration was

22  intended by both employer and employee. For purposes of this

23  chapter, the term "volunteer" includes, but is not limited to:

24         a.  Persons who serve in private nonprofit agencies and

25  who receive no compensation other than expenses in an amount

26  less than or equivalent to the standard mileage and per diem

27  expenses provided to salaried employees in the same agency or,

28  if such agency does not have salaried employees who receive

29  mileage and per diem, then such volunteers who receive no

30  compensation other than expenses in an amount less than or

31  equivalent to the customary mileage and per diem paid to

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  salaried workers in the community as determined by the

  2  division; and

  3         b.  Volunteers participating in federal programs

  4  established under Pub. L. No. 93-113.

  5         7.  Any officer of a corporation who elects to be

  6  exempt from this chapter.

  7         8.  A sole proprietor or officer of a corporation who

  8  actively engages in the construction industry, and a partner

  9  in a partnership that is actively engaged in the construction

10  industry, who elects to be exempt from the provisions of this

11  chapter. Such sole proprietor, officer, or partner is not an

12  employee for any reason until the notice of revocation of

13  election filed pursuant to s. 440.05 is effective.

14         9.  An exercise rider who does not work for a single

15  horse farm or breeder, and who is compensated for riding on a

16  case-by-case basis, provided a written contract is entered

17  into prior to the commencement of such activity which

18  evidences that an employee/employer relationship does not

19  exist.

20         10.  A taxicab, limousine, or other passenger

21  vehicle-for-hire driver who operates said vehicles pursuant to

22  a written agreement with a company which provides any

23  dispatch, marketing, insurance, communications, or other

24  services under which the driver and any fees or charges paid

25  by the driver to the company for such services are not

26  conditioned upon, or expressed as a proportion of, fare

27  revenues.

28         11.  A person who performs services as a sports

29  official for an entity sponsoring an interscholastic sports

30  event or for a public entity or private, nonprofit

31  organization that sponsors an amateur sports event.  For

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  purposes of this subparagraph, such a person is an independent

  2  contractor. For purposes of this subparagraph, the term

  3  "sports official" means any person who is a neutral

  4  participant in a sports event, including, but not limited to,

  5  umpires, referees, judges, linespersons, scorekeepers, or

  6  timekeepers. This subparagraph does not apply to any person

  7  employed by a district school board who serves as a sports

  8  official as required by the employing school board or who

  9  serves as a sports official as part of his or her

10  responsibilities during normal school hours.

11         (40)  "Commercial building" means any building or

12  structure intended for commercial or industrial use, or any

13  building or structure intended for multifamily use of more

14  than four dwelling units, as well as any accessory use

15  structures constructed in conjunction with the principle

16  structure. The term, "commercial building," does not include

17  the conversion of any existing residential building to a

18  commercial building.

19         (41)  "Residential building" means any building or

20  structure intended for residential use containing four or

21  fewer dwelling units and any structures intended as an

22  accessory use to the residential structure.

23         Section 4.  Subsections (10), (11), (12), and (13) are

24  added to section 440.05, Florida Statutes, to read:

25         440.05  Election of exemption; revocation of election;

26  notice; certification.--

27         (10)  Each sole proprietor, partner, or officer of a

28  corporation who is actively engaged in the construction

29  industry and who elects an exemption from this chapter shall

30  maintain business records as specified by the division by

31  rule, which rules must include the provision that any

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  corporation with exempt officers and any partnership actively

  2  engaged in the construction industry with exempt partners must

  3  maintain written statements of those exempted persons

  4  affirmatively acknowledging each such individual's exempt

  5  status.

  6         (11)  Any sole proprietor or partner claiming an

  7  exemption under this section shall maintain a copy of his or

  8  her federal income tax records for each of the immediately

  9  previous 3 years in which he or she claims an exemption. Such

10  federal income tax records must include a complete copy of the

11  following for each year in which an exemption is claimed:

12         (a)  For sole proprietors, a copy of Federal Income Tax

13  Form 1040 and its accompanying Schedule C;

14         (b)  For partners, a copy of the partner's Federal

15  Income Tax Schedule K-1 (Form 1065) and Federal Income Tax

16  Form 1040 and its accompanying Schedule E.

17

18  A sole proprietor or partner shall produce, upon request by

19  the division, a copy of those documents together with a

20  statement by the sole proprietor or partner that the tax

21  records provided are true and accurate copies of what the sole

22  proprietor or partner has filed with the federal Internal

23  Revenue Service. The statement must be signed under oath by

24  the sole proprietor or partner and must be notarized. The

25  division shall issue a stop-work order under s. 440.107(5) to

26  any sole proprietor or partner who fails or refuses to produce

27  a copy of the tax records and affidavit required under this

28  paragraph to the division within 3 business days after the

29  request is made.

30         (12)  For those sole proprietors or partners that have

31  not been in business long enough to provide the information

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  required of an established business, the division shall

  2  require such sole proprietor or partner to provide copies of

  3  the most recently filed Federal Income Tax Form 1040. The

  4  division shall establish by rule such other criteria to show

  5  that the sole proprietor or partner intends to engage in a

  6  legitimate enterprise within the construction industry and is

  7  not otherwise attempting to evade the requirements of this

  8  section. The division shall establish by rule the form and

  9  format of financial information required to be submitted by

10  such employers.

11         (13)  Any corporate officer claiming an exemption under

12  this section must be listed on the records of this state's

13  Secretary of State, Division of Corporations, as a corporate

14  officer. If the person who claims an exemption as a corporate

15  officer is not so listed on the records of the Secretary of

16  State, the individual must provide to the division, upon

17  request by the division, a notarized affidavit stating that

18  the individual is a bona fide officer of the corporation and

19  stating the date his or her appointment or election as a

20  corporate officer became or will become effective. The

21  statement must be signed under oath by both the officer and

22  the president or chief operating officer of the corporation

23  and must be notarized. The division shall issue a stop-work

24  order under s. 440.107(1) to any corporation who employs a

25  person who claims to be exempt as a corporate officer but who

26  fails or refuses to produce the documents required under this

27  subsection to the division within 3 business days after the

28  request is made.

29         Section 5.  Subsection (1) of section 440.10, Florida

30  Statutes, is amended to read:

31         440.10  Liability for compensation.--

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





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

  2  this chapter, including any brought within the chapter by

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

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

  5  physician, surgeon, or pharmacist providing services under the

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

  7  440.13, 440.15, and 440.16. Any contractor or subcontractor

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

  9  shall secure and maintain compensation for his or her

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

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

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

13  all of the employees of such contractor and subcontractor or

14  subcontractors engaged on such contract work shall be deemed

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

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

17  payment of compensation to all such employees, except to

18  employees of a subcontractor who has secured such payment.

19         (c)  A contractor may require a subcontractor to

20  provide evidence of workers' compensation insurance or a copy

21  of his or her certificate of election. A subcontractor

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

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

24  certificate of election to the contractor.

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

26  of compensation to the employees of a subcontractor who has

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

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

29  recover from the subcontractor all benefits paid or payable

30  plus interest unless the contractor and subcontractor have

31  agreed in writing that the contractor will provide coverage.

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





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

  2  for the payment of compensation to the employee of a

  3  subcontractor who is actively engaged in the construction

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

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

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

  7  or corporation all benefits paid or payable plus interest,

  8  unless the contractor and the subcontractor have agreed in

  9  writing that the contractor will provide coverage.

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

11  compensation to the employees of another subcontractor on such

12  contract work and is not protected by the

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

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

15  of another subcontractor.

16         (f)  If an employer willfully fails to secure

17  compensation as required by this chapter, the division may

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

19  each employee of that employer who is classified by the

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

21  division to not meet the criteria for an independent

22  contractor that are set forth in s. 440.02. The division shall

23  adopt rules to administer the provisions of this paragraph.

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

25  conclusively presumed to be an independent contractor if:

26         1.  The independent contractor provides the general

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

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

29         2.  The independent contractor provides the general

30  contractor with a valid certificate of workers' compensation

31  insurance or a valid certificate of exemption issued by the

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  division.

  2

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

  4  elects exemption from this chapter by filing a certificate of

  5  election under s. 440.05 may not recover benefits or

  6  compensation under this chapter. An independent contractor who

  7  provides the general contractor with both an affidavit stating

  8  that he or she meets the requirements of s. 440.02(14)(d) and

  9  a certificate of exemption is not an employee under s.

10  440.02(14)(c) and may not recover benefits under this chapter.

11  For purposes of determining the appropriate premium for

12  workers' compensation coverage, carriers may not consider any

13  person who meets the requirements of this paragraph to be an

14  employee.

15         Section 6.  Subsections (5) and (7) of section 440.107,

16  Florida Statutes, are amended, and subsection (12) is added to

17  that section to read:

18         440.107  Division powers to enforce employer compliance

19  with coverage requirements.--

20         (5)  Whenever the division determines that an employer

21  who is required to secure the payment to his or her employees

22  of the compensation provided for by this chapter has failed to

23  do so, such failure shall be deemed an immediate serious

24  danger to public health, safety, or welfare sufficient to

25  justify service by the division of a stop-work order on the

26  employer, requiring the cessation of all business operations

27  at the place of employment or job site. If the division makes

28  such a determination, the division shall issue a stop-work

29  order within 72 hours. The order shall take effect upon the

30  date of service upon the employer, unless the employer

31  provides evidence satisfactory to the division of having

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  secured any necessary insurance or self-insurance and pays a

  2  civil penalty to the division, to be deposited by the division

  3  into the Workers' Compensation Administration Trust Fund, in

  4  the amount of $100 per day for each day the employer was not

  5  in compliance with this chapter.

  6         (7)  In addition to any penalty, stop-work order, or

  7  injunction, the division shall may assess against any

  8  employer, who has failed to secure the payment of compensation

  9  as required by this chapter, a penalty in the following amount

10  of:

11         (a)  An amount equal to at least the amount that the

12  employer would have paid or up to twice the amount the

13  employer would have paid during periods it illegally failed to

14  secure payment of compensation in the preceding 3-year period

15  based on the employer's payroll during the preceding 3-year

16  period; or

17         (b)  One thousand dollars, whichever is greater.

18

19  Any penalty assessed under this subsection is due within 30

20  days after the date on which the employer is notified, except

21  that, if the division has posted a stop-work order or obtained

22  injunctive relief against the employer, payment is due, in

23  addition to those conditions set forth in this section, as a

24  condition to relief from a stop-work order or an injunction.

25  Interest shall accrue on amounts not paid when due at the rate

26  of 1 percent per month. The division shall adopt rules to

27  administer this section.

28         (12)  If the division finds that an employer who is

29  certified or registered under part I or part II of chapter 489

30  and who is required to secure payment of the compensation

31  provided for by this chapter to his or her employees has

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  failed to do so, the division shall immediately notify the

  2  Department of Business and Professional Regulation.

  3         Section 7.  Subsection (14) of section 440.13, Florida

  4  Statutes, is amended to read:

  5         (14)  PAYMENT OF MEDICAL FEES.--

  6         (b)  Fees charged for remedial treatment, care, and

  7  attendance may not exceed the applicable fee schedules adopted

  8  under this chapter, except as provided pursuant to a contract

  9  entered into between an employer or carrier and a certified

10  health care provider or health care facility for the payment

11  of medical services for covered expenses.

12         Section 8.  Section 440.191, Florida Statutes, is

13  amended to read:

14         440.191  Employee Assistance and Ombudsman Office.--

15         (1)(a)  In order to effect the self-executing features

16  of the Workers' Compensation Law, this chapter shall be

17  construed to permit injured employees and employers or the

18  employer's carrier to resolve disagreements without undue

19  expense, costly litigation, or delay in the provisions of

20  benefits. It is the duty of all who participate in the

21  workers' compensation system, including, but not limited to,

22  carriers, service providers, health care providers, attorneys,

23  employers, managed care arrangements, and employees, to

24  attempt to resolve disagreements in good faith and to

25  cooperate with the division's efforts to resolve disagreements

26  between the parties. The division may by rule prescribe

27  definitions that are necessary for the effective

28  administration of this section.

29         (b)  An Employee Assistance and Ombudsman Office is

30  created within the Division of Workers' Compensation to inform

31  and assist injured workers, employers, carriers, and health

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  care providers, and managed care arrangements in fulfilling

  2  their responsibilities under this chapter. The division may by

  3  rule specify forms and procedures for administering requests

  4  for assistance provided by this section.

  5         (c)  The Employee Assistance and Ombudsman Office,

  6  Division of Workers' Compensation, shall be a resource

  7  available to all employees who participate in the workers'

  8  compensation system and shall take all steps necessary to

  9  educate and disseminate information to employees and

10  employers. Upon receiving a notice of injury or death, the

11  Employee Assistance and Ombudsman Office may initiate contact

12  with the injured employee or employee's representative to

13  discuss rights and responsibilities of the employee under this

14  chapter and the services available through the Employee

15  Assistance and Ombudsman Office.

16         (2)(a)  An employee may not file a petition requesting

17  any benefit under this chapter unless the employee has

18  exhausted the procedures for informal dispute resolution under

19  this section.

20         (a)(b)  If at any time the employer or its carrier

21  fails to provide benefits to which the employee believes she

22  or he is entitled, the employee shall contact the office to

23  request assistance in resolving the dispute. The office may

24  review a petition for benefits filed under s. 440.192 shall

25  investigate the dispute and may shall attempt to facilitate an

26  agreement between the employee and the employer or carrier.

27  The employee, the employer, and the carrier shall cooperate

28  with the office and shall timely provide the office with any

29  documents or other information that it may require in

30  connection with its efforts under this section.

31         (b)(c)  The office may compel parties to attend

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  conferences in person or by telephone in an attempt to resolve

  2  disputes quickly and in the most efficient manner possible.

  3  Settlement agreements resulting from such conferences must be

  4  submitted to the Office of the Judges of Compensation Claims

  5  for approval.

  6         (c)(d)  The Employee Assistance and Ombudsman Office

  7  may assign an ombudsman to assist the employee in resolving

  8  the dispute. If the dispute is not resolved within 30 days

  9  after the employee contacts the office, The ombudsman may

10  shall, at the employee's request, assist the employee in

11  drafting a petition for benefits and explain the procedures

12  for filing petitions. The division may by rule determine the

13  method used to calculate the 30-day period. The Employee

14  Assistance and Ombudsman Office may not represent employees

15  before the judges of compensation claims. An employer or

16  carrier may not pay any attorneys' fees on behalf of the

17  employee for services rendered or costs incurred in connection

18  with this section, unless expressly authorized elsewhere in

19  this chapter.

20         Section 9.  Subsections (1), (3), and (4) of section

21  440.25, Florida Statutes, are amended to read:

22         440.25  Procedures for mediation and hearings.--

23         (1)  Within 90 21 days after a petition for benefits is

24  filed under s. 440.192, a mediation conference concerning such

25  petition shall be held. Within 40 7 days after such petition

26  is filed, the judge of compensation claims shall notify the

27  interested parties by order that a mediation conference

28  concerning such petition will be held unless the parties have

29  notified the Office of the Judges of Compensation Claims that

30  a mediation has been held. Such order must notice shall give

31  the date by which, time, and location of the mediation

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  conference must be held. Such order notice may be served

  2  personally upon the interested parties or may be sent to the

  3  interested parties by mail. The claimant or the adjuster of

  4  the employer or carrier may, at the mediator's discretion,

  5  attend the mediation conference by telephone or, if agreed to

  6  by the parties, other electronic means. A continuance may be

  7  granted if the requesting party demonstrates to the judge of

  8  compensation claims that the reason for requesting the

  9  continuance arises from circumstances beyond the party's

10  control. Any order granting a continuance must set forth the

11  date of the rescheduled mediation conference. A mediation

12  conference may not be used solely for the purpose of mediating

13  attorney's fees.

14         (3)(a)  Such mediation conference shall be conducted

15  informally and does not require the use of formal rules of

16  evidence or procedure. Any information from the files,

17  reports, case summaries, mediator's notes, or other

18  communications or materials, oral or written, relating to a

19  mediation conference under this section obtained by any person

20  performing mediation duties is privileged and confidential and

21  may not be disclosed without the written consent of all

22  parties to the conference. Any research or evaluation effort

23  directed at assessing the mediation program activities or

24  performance must protect the confidentiality of such

25  information. Each party to a mediation conference has a

26  privilege during and after the conference to refuse to

27  disclose and to prevent another from disclosing communications

28  made during the conference whether or not the contested issues

29  are successfully resolved. This subsection and paragraphs

30  (4)(a) and (b) shall not be construed to prevent or inhibit

31  the discovery or admissibility of any information that is

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  otherwise subject to discovery or that is admissible under

  2  applicable law or rule of procedure, except that any conduct

  3  or statements made during a mediation conference or in

  4  negotiations concerning the conference are inadmissible in any

  5  proceeding under this chapter.

  6         1.  Unless the parties conduct a private mediation

  7  under subparagraph 2., mediation shall be conducted by a

  8  mediator selected by the Director of the Division of

  9  Administrative Hearings from among mediators shall select a

10  mediator. The mediator shall be employed on a full-time basis

11  by the Office of the Judges of Compensation Claims. A mediator

12  must be a member of The Florida Bar for at least 5 years and

13  must complete a mediation training program approved by the

14  Director of the Division of Administrative Hearings. Adjunct

15  mediators may be employed by the Office of the Judges of

16  Compensation Claims on an as-needed basis and shall be

17  selected from a list prepared by the Director of the Division

18  of Administrative Hearings. An adjunct mediator must be

19  independent of all parties participating in the mediation

20  conference. An adjunct mediator must be a member of The

21  Florida Bar for at least 5 years and must complete a mediation

22  training program approved by the Director of the Division of

23  Administrative Hearings.  An adjunct mediator shall have

24  access to the office, equipment, and supplies of the judge of

25  compensation claims in each district.

26         2.  With respect to any mediation occurring on or after

27  January 1, 2003, if the parties agree or if mediators are not

28  available under subparagraph 1. to conduct the required

29  mediation within the period specified in this section, the

30  parties shall hold a mediation conference at the carrier's

31  expense within the 90-day period set for mediation. The

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  mediation conference shall be conducted by a mediator

  2  certified under s. 44.106. If the parties do not agree upon a

  3  mediator within 10 days after the date of the order, the

  4  claimant shall notify the judge in writing and the judge shall

  5  appoint a mediator under this subparagraph within 7 days. In

  6  the event both parties agree, the results of the mediation

  7  conference shall be binding and neither party shall have a

  8  right to appeal the results. In the event either party refuses

  9  to agree to the results of the mediation conference, the

10  results of the mediation conference as well as the testimony,

11  witnesses, and evidence presented at the conference shall not

12  be admissible at any subsequent proceeding on the claim. The

13  mediator shall not be called in to testify or give deposition

14  to resolve any claim for any hearing before the judge of

15  compensation claims. The employer may be represented by an

16  attorney at the mediation conference if the employee is also

17  represented by an attorney at the mediation conference.

18         (c)  The parties shall complete the pretrial

19  stipulations before the conclusion of the mediation conference

20  if the claims, except for attorney's fees and costs, have not

21  been settled and if any claims in any filed petition remain

22  unresolved. The judge of compensation claims may impose

23  sanctions against a party or both parties for failing to

24  complete the pretrial stipulations before the conclusion of

25  the mediation conference.

26         (4)(a)  If the parties fail to agree upon written

27  submission of pretrial stipulations at the mediation

28  conference, on the 10th day following commencement of

29  mediation, the questions in dispute have not been resolved,

30  the judge of compensation claims shall order hold a pretrial

31  hearing to occur within 14 days after the date of mediation

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  ordered by the judge of compensation claims. The judge of

  2  compensation claims shall give the interested parties at least

  3  7 days' advance notice of the pretrial hearing by mail. At the

  4  pretrial hearing, the judge of compensation claims shall,

  5  subject to paragraph (b), set a date for the final hearing

  6  that allows the parties at least 60 30 days to conduct

  7  discovery unless the parties consent to an earlier hearing

  8  date.

  9         (b)  The final hearing must be held and concluded

10  within 90 45 days after the mediation conference is held

11  pretrial hearing. Continuances may be granted only if the

12  requesting party demonstrates to the judge of compensation

13  claims that the reason for requesting the continuance arises

14  from circumstances beyond the party's control. The written

15  consent of the claimant must be obtained before any request

16  from a claimant's attorney is granted for an additional

17  continuance after the initial continuance has been granted.

18  Any order granting a continuance must set forth the date and

19  time of the rescheduled hearing. A continuance may be granted

20  only if the requesting party demonstrates to the judge of

21  compensation claims that the reason for requesting the

22  continuance arises from circumstances beyond the control of

23  the parties. The judge of compensation claims shall report any

24  grant of two or more continuances to the Deputy Chief Judge.

25         (c)  The judge of compensation claims shall give the

26  interested parties at least 7 days' advance notice of the

27  final hearing, served upon the interested parties by mail.

28         (d)  The final hearing shall be held within 210 days

29  after receipt of the petition for benefits in the county where

30  the injury occurred, if the injury occurred in this state,

31  unless otherwise agreed to between the parties and authorized

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  by the judge of compensation claims in the county where the

  2  injury occurred. If the injury occurred outside without the

  3  state and is one for which compensation is payable under this

  4  chapter, then the final hearing above referred to may be held

  5  in the county of the employer's residence or place of

  6  business, or in any other county of the state that which will,

  7  in the discretion of the Deputy Chief Judge, be the most

  8  convenient for a hearing. The final hearing shall be conducted

  9  by a judge of compensation claims, who shall, within 30 days

10  after final hearing or closure of the hearing record, unless

11  otherwise agreed by the parties, enter a final order on the

12  merits of the disputed issues. The judge of compensation

13  claims may enter an abbreviated final order in cases in which

14  compensability is not disputed. Either party may request

15  separate findings of fact and conclusions of law. At the final

16  such hearing, the claimant and employer may each present

17  evidence with in respect to the claims presented by the

18  petition for benefits of such claim and may be represented by

19  any attorney authorized in writing for such purpose. When

20  there is a conflict in the medical evidence submitted at the

21  hearing, the provisions of s. 440.13 shall apply. The report

22  or testimony of the expert medical advisor shall be made a

23  part of the record of the proceeding and shall be given the

24  same consideration by the judge of compensation claims as is

25  accorded other medical evidence submitted in the proceeding;

26  and all costs incurred in connection with such examination and

27  testimony may be assessed as costs in the proceeding, subject

28  to the provisions of s. 440.13. No judge of compensation

29  claims may make a finding of a degree of permanent impairment

30  that is greater than the greatest permanent impairment rating

31  given the claimant by any examining or treating physician,

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  except upon stipulation of the parties. Any benefit due but

  2  not raised at the final hearing which was ripe, due, or owing

  3  at the time of the final hearing is waived.

  4         (e)  The order making an award or rejecting the claim,

  5  referred to in this chapter as a "compensation order," shall

  6  set forth the findings of ultimate facts and the mandate; and

  7  the order need not include any other reason or justification

  8  for such mandate. The compensation order shall be filed in the

  9  Office of the Judges of Compensation Claims at Tallahassee. A

10  copy of such compensation order shall be sent by mail to the

11  parties and attorneys of record at the last known address of

12  each, with the date of mailing noted thereon.

13         (f)  Each judge of compensation claims is required to

14  submit a special report to the Deputy Chief Judge in each

15  contested workers' compensation case in which the case is not

16  determined within 30 days of final hearing or closure of the

17  hearing record. Said form shall be provided by the director of

18  the Division of Administrative Hearings and shall contain the

19  names of the judge of compensation claims and of the attorneys

20  involved and a brief explanation by the judge of compensation

21  claims as to the reason for such a delay in issuing a final

22  order.

23         (g)  Notwithstanding any other provision of this

24  section, the judge of compensation claims may require the

25  appearance of the parties and counsel before her or him

26  without written notice for an emergency conference where there

27  is a bona fide emergency involving the health, safety, or

28  welfare of an employee. An emergency conference under this

29  section may result in the entry of an order or the rendering

30  of an adjudication by the judge of compensation claims.

31         (h)  To expedite dispute resolution and to enhance the

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  self-executing features of the Workers' Compensation Law, the

  2  Deputy Chief Judge shall make provision by rule or order for

  3  the resolution of appropriate motions by judges of

  4  compensation claims without oral hearing upon submission of

  5  brief written statements in support and opposition, and for

  6  expedited discovery and docketing. Unless the judge of

  7  compensation claims, for good cause, orders a hearing under

  8  paragraph (i), each claim in a petition relating to the

  9  determination of pay under s. 440.14 shall be resolved under

10  this paragraph without oral hearing.

11         (i)  To further expedite dispute resolution and to

12  enhance the self-executing features of the system, those

13  petitions filed in accordance with s. 440.192 that involve a

14  claim for benefits of $5,000 or less shall, in the absence of

15  compelling evidence to the contrary, be presumed to be

16  appropriate for expedited resolution under this paragraph; and

17  any other claim filed in accordance with s. 440.192, upon the

18  written agreement of both parties and application by either

19  party, may similarly be resolved under this paragraph. A claim

20  in a petition or $5,000 or less for medical benefits only or a

21  petition for reimbursement for mileage for medical purposes

22  shall, in the absence of compelling evidence to the contrary,

23  be resolved through the expedited dispute-resolution process

24  provided in this paragraph. For purposes of expedited

25  resolution pursuant to this paragraph, the Deputy Chief Judge

26  shall make provision by rule or order for expedited and

27  limited discovery and expedited docketing in such cases. At

28  least 15 days prior to hearing, the parties shall exchange and

29  file with the judge of compensation claims a pretrial outline

30  of all issues, defenses, and witnesses on a form adopted by

31  the Deputy Chief Judge; provided, in no event shall such

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  hearing be held without 15 days' written notice to all

  2  parties. No pretrial hearing shall be held. The judge of

  3  compensation claims shall limit all argument and presentation

  4  of evidence at the hearing to a maximum of 30 minutes, and

  5  such hearings shall not exceed 30 minutes in length. Neither

  6  party shall be required to be represented by counsel. The

  7  employer or carrier may be represented by an adjuster or other

  8  qualified representative. The employer or carrier and any

  9  witness may appear at such hearing by telephone. The rules of

10  evidence shall be liberally construed in favor of allowing

11  introduction of evidence.

12         (j)  A judge of compensation claims may, upon the

13  motion of a party or the judge's own motion, dismiss a

14  petition for lack of prosecution if a petition, response,

15  motion, order, request for hearing, or notice of deposition

16  has not been filed during the previous 12 months unless good

17  cause is shown. A dismissal for lack of prosecution is without

18  prejudice and does not require a hearing.

19         (k)  A judge of compensation claims may not award

20  interest on unpaid medical bills and the amount of such bills

21  may not be used to calculate the amount of interest awarded.

22  Regardless of the date benefits were initially requested,

23  attorney's fees do not attach under this subsection until 30

24  days after the date the carrier or self-insured employer

25  receives the petition.

26         Section 10.  Subsection (3) of section 440.34, Florida

27  Statutes, is amended to read:

28         (3)  If the claimant should prevail in any proceedings

29  before a judge of compensation claims or court, there shall be

30  taxed against the employer the reasonable costs of such

31  proceedings, not to include the attorney's fees of the

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  claimant. A claimant shall be responsible for the payment of

  2  her or his own attorney's fees, except that a claimant shall

  3  be entitled to recover a reasonable attorney's fee from a

  4  carrier or employer:

  5         (a)  Against whom she or he successfully asserts a

  6  petition claim for medical benefits only, if the claimant has

  7  not filed or is not entitled to file at such time a claim for

  8  disability, permanent impairment, wage-loss, or death

  9  benefits, arising out of the same accident; or

10         (b)  In any case in which the employer or carrier files

11  a response to petition denying benefits with the Office of the

12  Judges of Compensation Claims and the injured person has

13  employed an attorney in the successful prosecution of the

14  petition claim; or

15         (c)  In a proceeding in which a carrier or employer

16  denies that an accident injury occurred for which compensation

17  benefits are payable, and the claimant prevails on the issue

18  of compensability; or

19         (d)  In cases where the claimant successfully prevails

20  in proceedings filed under s. 440.24 or s. 440.28.

21

22  Regardless of the date benefits were initially requested,

23  attorney's fees shall not attach under this subsection until

24  30 days after the date the carrier or employer, if

25  self-insured, receives the petition.  In applying the factors

26  set forth in subsection (1) to cases arising under paragraphs

27  (a), (b), (c), and (d), the judge of compensation claims must

28  only consider only such benefits and the time reasonably spent

29  in obtaining them as were secured for the claimant within the

30  scope of paragraphs (a), (b), (c), and (d).

31         Section 11.  Subsections (2), (3), and (6) of section

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  440.381, Florida Statutes, are amended to read:

  2         440.381  Application for coverage; reporting payroll;

  3  payroll audit procedures; penalties.--

  4         (2)  The application must contain a statement that the

  5  filing of an application containing false, misleading, or

  6  incomplete information with the purpose of avoiding or

  7  reducing the amount of premiums for workers' compensation

  8  coverage is a felony of the third degree, punishable as

  9  provided in s. 775.082, s. 775.083, or s. 775.084. The

10  application must contain a sworn statement by the employer

11  attesting to the accuracy of the information submitted and

12  acknowledging the provisions of former s. 440.37(4). The

13  application must contain a sworn statement by the agent

14  attesting that the agent explained to the employer or officer

15  the classification codes that are used for premium

16  calculations.

17         (3)  The Department of Insurance and the Department of

18  Labor and Employment Security shall establish by rule minimum

19  requirements for audits of payroll and classifications in

20  order to ensure that the appropriate premium is charged for

21  workers' compensation coverage. The rules shall ensure that

22  audits performed by both carriers and employers are adequate

23  to provide that all sources of payments to employees,

24  subcontractors, and independent contractors have been reviewed

25  and that the accuracy of classification of employees has been

26  verified. The rules shall provide that employers in all

27  classes other than the construction class be audited not less

28  frequently than biennially and may provide for more frequent

29  audits of employers in specified classifications based on

30  factors such as amount of premium, type of business, loss

31  ratios, or other relevant factors. In no event shall employers

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  in the construction class, generating more than the amount of

  2  premium required to be experience rated, be audited less than

  3  annually. The annual audits required for construction classes

  4  shall consist of physical onsite audits.  Payroll verification

  5  audit rules must include, but need not be limited to, the use

  6  of state and federal reports of employee income, payroll and

  7  other accounting records, certificates of insurance maintained

  8  by subcontractors, and duties of employees. At the completion

  9  of an audit, the employer or officer of the corporation and

10  the auditor must print and sign their names on the audit

11  document and attach proof of identification to the audit

12  document.

13         (6)  If an employer intentionally understates or

14  conceals payroll, or misrepresents or conceals employee duties

15  so as to avoid proper classification for premium calculations,

16  or misrepresents or conceals information pertinent to the

17  computation and application of an experience rating

18  modification factor, the employer, or the employer's agent or

19  attorney, shall pay to the insurance carrier a penalty of 10

20  times the amount of the difference in premium paid and the

21  amount the employer should have paid and reasonable attorney's

22  fees. The penalty may be enforced in the circuit courts of

23  this state.

24         Section 12.  Section 440.40, Florida Statutes, is

25  amended to read:

26         440.40  Compensation notice.--Every employer who has

27  secured compensation under the provisions of this chapter

28  shall keep posted in a conspicuous place or places in and

29  about her or his place or places of business typewritten or

30  printed notices, in accordance with a form prescribed by the

31  division, the following:

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1         (1)  A notice stating that such employer has secured

  2  the payment of compensation in accordance with the provisions

  3  of this chapter. Such notices shall contain the name and

  4  address of the carrier, if any, with whom the employer has

  5  secured payment of compensation and the date of the expiration

  6  of the policy. The division may by rule prescribe the form of

  7  the notices and require carriers to provide the notices to

  8  policyholders.

  9         (2)  A notice stating:  "Anti-Fraud Reward

10  Program.--Rewards of up to $25,000 may be paid to persons

11  providing information to the Department of Insurance leading

12  to the arrest and conviction of persons committing insurance

13  fraud, including employers who illegally fail to obtain

14  workers' compensation coverage. Persons may report suspected

15  fraud to the department at...(Phone No.).... A person is not

16  subject to civil liability for furnishing such information, if

17  such person acts without malice, fraud, or bad faith."

18         Section 13.  Subsection (1) of section 440.45, Florida

19  Statutes, is amended to read:

20         440.45  Office of the Judges of Compensation Claims.--

21         (1)(a)  There is created the Office of the Judges of

22  Compensation Claims within the Department of Management

23  Services. The Office of the Judges of Compensation Claims

24  shall be headed by the Deputy Chief Judge of Compensation

25  Claims. The Deputy Chief Judge shall report to the director of

26  the Division of Administrative Hearings. The Deputy Chief

27  Judge shall be appointed by the Governor for a term of 4 years

28  from a list of three names submitted by the statewide

29  nominating commission created under subsection (2). The Deputy

30  Chief Judge must demonstrate prior administrative experience

31  and possess the same qualifications for appointment as a judge

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  of compensation claims, and the procedure for reappointment of

  2  the Deputy Chief Judge will be the same as for reappointment

  3  of a judge of compensation claims. The office shall be a

  4  separate budget entity and the director of the Division of

  5  Administrative Hearings shall be its agency head for all

  6  purposes, including, but not limited to, rulemaking pursuant

  7  to subsection (4) and establishing agency policies and

  8  procedures.  The Department of Management Services shall

  9  provide administrative support and service to the office to

10  the extent requested by the director of the Division of

11  Administrative Hearings but shall not direct, supervise, or

12  control the Office of the Judges of Compensation Claims in any

13  manner, including, but not limited to, personnel, purchasing,

14  budgetary matters, or property transactions. The operating

15  budget of the Office of the Judges of Compensation Claims

16  shall be paid out of the Workers' Compensation Administration

17  Trust Fund established in s. 440.50.

18         (b)  The current term of the Chief Judge of

19  Compensation Claims shall expire October 1, 2001. Effective

20  October 1, 2001, the position of Deputy Chief Judge of

21  Compensation Claims is created.

22         Section 14.  Section 489.114, Florida Statutes, is

23  amended to read:

24         489.114  Evidence of workers' compensation

25  coverage.--Except as provided in s. 489.115(5)(d), any person,

26  business organization, or qualifying agent engaged in the

27  business of contracting in this state and certified or

28  registered under this part shall, as a condition precedent to

29  the issuance or renewal of a certificate, registration, or

30  certificate of authority of the contractor, provide to the

31  Construction Industry Licensing Board, as provided by board

                                  29

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  rule, evidence of workers' compensation coverage pursuant to

  2  chapter 440.  In the event that the Division of Workers'

  3  Compensation of the Department of Labor and Employment

  4  Security receives notice of the cancellation of a policy of

  5  workers' compensation insurance insuring a person or entity

  6  governed by this section, the Division of Workers'

  7  Compensation shall certify and identify all persons or

  8  entities by certification or registration license number to

  9  the department after verification is made by the Division of

10  Workers' Compensation that such cancellation has occurred or

11  that persons or entities governed by this section are no

12  longer covered by workers' compensation insurance.  Such

13  certification and verification by the Division of Workers'

14  Compensation may shall result solely from records furnished to

15  the Division of Workers' Compensation by the persons or

16  entities governed by this section or an investigation

17  completed by the Division of Workers' Compensation.  The

18  department shall notify the persons or entities governed by

19  this section who have been determined to be in noncompliance

20  with chapter 440, and the persons or entities notified shall

21  provide certification of compliance with chapter 440 to the

22  department and pay an administrative fine in the amount of

23  $500 as provided by rule.  The failure to maintain workers'

24  compensation coverage as required by law shall be grounds for

25  the board to revoke, suspend, or deny the issuance or renewal

26  of a certificate, registration, or certificate of authority of

27  the contractor under the provisions of s. 489.129.

28         Section 15.  Section 489.510, Florida Statutes, is

29  amended to read:

30         489.510  Evidence of workers' compensation

31  coverage.--Except as provided in s. 489.515(3)(b), any person,

                                  30

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  business organization, or qualifying agent engaged in the

  2  business of contracting in this state and certified or

  3  registered under this part shall, as a condition precedent to

  4  the issuance or renewal of a certificate or registration of

  5  the contractor, provide to the Electrical Contractors'

  6  Licensing Board, as provided by board rule, evidence of

  7  workers' compensation coverage pursuant to chapter 440.  In

  8  the event that the Division of Workers' Compensation of the

  9  Department of Labor and Employment Security receives notice of

10  the cancellation of a policy of workers' compensation

11  insurance insuring a person or entity governed by this

12  section, the Division of Workers' Compensation shall certify

13  and identify all persons or entities by certification or

14  registration license number to the department after

15  verification is made by the Division of Workers' Compensation

16  that such cancellation has occurred or that persons or

17  entities governed by this section are no longer covered by

18  workers' compensation insurance.  Such certification and

19  verification by the Division of Workers' Compensation may

20  shall result solely from records furnished to the Division of

21  Workers' Compensation by the persons or entities governed by

22  this section or an investigation completed by the Division of

23  Workers' Compensation. The department shall notify the persons

24  or entities governed by this section who have been determined

25  to be in noncompliance with chapter 440, and the persons or

26  entities notified shall provide certification of compliance

27  with chapter 440 to the department and pay an administrative

28  fine in the amount of $500 as provided by rule.  The failure

29  to maintain workers' compensation coverage as required by law

30  shall be grounds for the board to revoke, suspend, or deny the

31  issuance or renewal of a certificate or registration of the

                                  31

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1  contractor under the provisions of s. 489.533.

  2         Section 16.  Subsection (2) of section 626.9892,

  3  Florida Statutes, is amended to read:

  4         626.9892  Anti-Fraud Reward Program; reporting of

  5  insurance fraud.--

  6         (2)  The department may pay rewards of up to $25,000 to

  7  persons providing information leading to the arrest and

  8  conviction of persons committing complex or organized crimes

  9  investigated by the Division of Insurance Fraud arising from

10  violations of s. 440.105, s. 624.15, s. 626.9541, s. 626.989,

11  or s. 817.234.

12         Section 17.  The Department of Insurance, in

13  consultation with the board of governors of the joint

14  underwriting association authorized under s. 627.311, Florida

15  Statutes, shall conduct a study of the response of the

16  insurance market in meeting the need for coverage among

17  construction industry employers at a rate that is not

18  inadequate, excessive, or unfairly discriminatory, and any

19  actual or potential availability concerns. The scope of the

20  study shall include a review of workers' compensation

21  insurance currently provided or required in other states and

22  possible alternative coverages. The department shall submit a

23  report recommending any changes needed to promote availability

24  of coverage at a rate that is not inadequate, excessive, or

25  unfairly discriminatory, to the President of the Senate and

26  the Speaker of the House of Representatives on or before

27  February 1, 2003.

28

29

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

31  And the title is amended as follows:

                                  32

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1         On page 1, line 9

  2

  3  after the semicolon, insert:

  4         amending s. 440.02, F.S.; redefining the terms

  5         "employee" and "independent contractor";

  6         prohibiting exemptions from coverage for

  7         commercial construction job sites; defining the

  8         terms "commercial building" and "residential

  9         building"; amending s. 440.05, F.S.; requiring

10         employers to maintain business records

11         specified by rules of the Division of Workers'

12         Compensation, relative to exemptions from

13         coverage; revising requirements for election of

14         exemptions for coverage; amending s. 440.10,

15         F.S.; providing penalties for employers who

16         fail to secure compensation; amending s.

17         440.107, F.S.; requiring and authorizing the

18         division to issue stop-work orders and to

19         impose certain penalties against employers who

20         fail to secure compensation; requiring the

21         division to notify the Department of Business

22         and Professional Regulation; amending s.

23         440.13, F.S.; revising the limitation on

24         medical fees; amending s. 440.191, F.S.;

25         revising duties of the Employee Assistance and

26         Ombudsman Office; removing a requirement that

27         an employee exhaust certain dispute-resolution

28         procedures before filing a petition requesting

29         benefits; amending s. 440.25, F.S.; revising

30         procedures for mediation and hearings;

31         extending the time for ordering and holding

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1         mediation conferences; providing requirements

  2         for granting a continuance; providing for

  3         mediation conducted by mediators other than

  4         from the Office of the Judges of Compensation

  5         Claims; requiring that the parties complete

  6         pretrial stipulations before concluding

  7         mediation; extending the time for holding final

  8         hearings; providing for waiver of any benefit

  9         not raised at the final hearing; providing for

10         an expedited determination of pay; requiring

11         that certain claims be resolved through an

12         expedited process; providing for dismissal for

13         lack of prosecution; limiting the payment of

14         interest and the attachment of attorney's fees;

15         amending s. 440.34, F.S.; revising provisions

16         governing the award of claimant's attorney's

17         fees; limiting the attachment of claimant's

18         attorney's fees; amending s. 440.381, F.S.;

19         requiring that the application for workers'

20         compensation coverage contain a sworn statement

21         by the agent; providing a penalty for carriers

22         that fail to comply with audit requirements;

23         revising requirements for audits; amending s.

24         440.40, F.S.; requiring employers to post a

25         notice related to the anti-fraud reward

26         program; amending s. 440.45, F.S., relating to

27         the Office of the Judges of Compensation

28         Claims; clarifying the responsibilities of the

29         director of the Division of Administrative

30         Hearings as agency head of the Office of the

31         Judges of Compensation Claims; amending ss.

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                                                   HOUSE AMENDMENT

                                               Bill No. CS/HB 1121

    Amendment No. 01 (for drafter's use only)





  1         489.114 and 489.510, F.S.; revising provisions

  2         governing the verification by the division of

  3         coverage of persons engaged in the business of

  4         contracting; specifying an administrative fine

  5         for contractors who are in noncompliance with

  6         chapter 440, F.S., to be paid to the Department

  7         of Business and Professional Regulation;

  8         amending s. 626.9892, F.S.; revising the

  9         criteria for the anti-fraud program; requiring

10         the Department of Insurance to conduct a study

11         related to workers' compensation for persons

12         engaged in the construction industry;

13

14

15

16

17

18

19

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