House Bill hb1947c1

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    Florida House of Representatives - 2002             CS/HB 1947

        By the Council for Competitive Commerce and Committee on
    Insurance and Representatives Waters, Simmons, Negron,
    Berfield, Brown, Clarke, Ross, McGriff, Kallinger, Fields,
    Melvin, Baker and Lee



  1                      A bill to be entitled

  2         An act relating to workers' compensation;

  3         amending s. 440.02, F.S.; revising definitions;

  4         prohibiting exempt individuals from doing

  5         construction work on commercial job sites;

  6         amending s. 440.05, F.S.; requiring employers

  7         to maintain business records as specified by

  8         rules of the Division of Workers' Compensation,

  9         relating to exemptions from coverage; revising

10         requirements for election of exemption from

11         coverage; requiring that a corporate officer

12         claiming an exemption from ch. 440, F.S., be

13         listed with the Department of State; requiring

14         the Division of Workers' Compensation of the

15         Department of Labor and Employment Security to

16         issue a stop-work order upon failure to produce

17         certain documents; amending s. 440.06, F.S.;

18         clarifying certain limitations imposed on an

19         employer who fails to secure compensation;

20         creating s. 440.078, F.S.; providing for

21         limitation on construction industry business

22         activities; providing penalties; amending s.

23         440.09, F.S.; requiring compensation for

24         accidental compensable injuries; amending s.

25         440.091, F.S.; specifying circumstances under

26         which firefighters, emergency medical

27         technicians, and paramedics are considered to

28         be acting within the scope of their employment

29         so as to qualify for workers' compensation

30         benefits; characterizing certain activities of

31         certain officers as arising out of and in the

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  1         course of employment for compensability

  2         purposes and providing circumstances under

  3         which certain officers may continue in full-pay

  4         status when injured; amending s. 440.092, F.S.;

  5         deleting a provision relating to the going and

  6         coming rule applicable to certain law

  7         enforcement officers that is transferred by the

  8         amendment to s. 440.091, F.S.; providing a

  9         declaration of important state interest;

10         amending s. 440.10, F.S.; revising certain

11         limitations on an employer's liability for

12         compensation; providing for rules; amending s.

13         440.103, F.S.; specifying requirements for

14         certificates of insurance that must be shown to

15         receive a building permit; amending s. 440.107,

16         F.S.; providing for penalties to be imposed

17         against an employer for certain

18         misrepresentations made to a carrier; providing

19         for the issuance of a stop-work order;

20         providing for rules; requiring that the

21         division notify the Department of Business and

22         Professional Regulation upon the failure of

23         certain employers to secure payment of workers'

24         compensation; amending s. 440.11, F.S.;

25         revising provisions relating to employer

26         liability to provide an exemption in the case

27         of intentional misconduct by an employer;

28         amending s. 440.13, F.S.; requiring that costs

29         for an independent medical examination be

30         determined under ch. 440, F.S.; requiring the

31         carrier to give the employee the opportunity to

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  1         change physicians under certain circumstances

  2         and limitations; revising the effect of an

  3         independent medical examination; limiting the

  4         admissibility of certain medical opinions;

  5         revising the limitation on medical fees;

  6         providing an exception to certain recourse for

  7         payment for services rendered; amending s.

  8         440.134, F.S.; providing for discontinuance of

  9         medical care under a managed care plan

10         regardless of the date of an accident; amending

11         s. 440.14, F.S.; revising the computation of

12         the average weekly wage of an employee for the

13         purposes of determining benefits; amending s.

14         440.15, F.S.; revising the criteria for

15         permanent total disability; revising the

16         compensation rate for impairment income

17         benefits; deleting a provision relating to

18         full-pay status for certain law enforcement

19         officers that is transferred by the amendment

20         to s. 440.091, F.S., and providing a reference

21         thereto; amending s. 440.191, F.S.; authorizing

22         the Employee Assistance and Ombudsman Office to

23         initiate contact with an injured employee to

24         discuss rights and responsibilities; revising

25         other duties of the office; amending s.

26         440.192, F.S.; revising the procedures for

27         resolving benefit disputes and filing petitions

28         for benefits; specifying information that must

29         be included in a petition for benefits;

30         requiring that a claim be raised by petition

31         for purposes of adjudication; amending s.

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  1         440.20, F.S.; limiting amount of attorney's

  2         fees in cases determining lump-sum settlements;

  3         amending s. 440.25, F.S.; revising procedures

  4         for mediation and hearings; extending the time

  5         for ordering and holding mediation conferences;

  6         providing requirements for granting a

  7         continuance; providing for mediation conducted

  8         by mediators other than from the Office of the

  9         Judges of Compensation Claims; requiring that

10         the parties complete pretrial stipulations

11         before concluding mediation; extending the time

12         for holding final hearings; providing for

13         waiver of any benefit not raised at the final

14         hearing; providing for an expedited

15         determination of pay; requiring that certain

16         claims be resolved through an expedited

17         process; providing for dismissal for lack of

18         prosecution; limiting the payment of interest

19         and the attachment of attorney's fees; amending

20         s. 440.271, F.S.; requiring appellate mediation

21         and providing procedures therefor; amending s.

22         440.29, F.S.; requiring opinions of independent

23         medical examiners to be received into evidence

24         under certain conditions; amending s. 440.34,

25         F.S.; revising the limit on the amount of

26         attorney's fees that may be approved by a judge

27         of compensation claims and eliminating factors

28         that the judge must consider; applying such

29         limits to any agreement related to benefits

30         under ch. 440, F.S.; amending s. 440.345, F.S.;

31         revising requirements for the reporting of

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  1         attorney's fees; removing requirement to

  2         provide an annual report; amending s. 440.381,

  3         F.S.; requiring that the application for

  4         workers' compensation coverage contain a sworn

  5         statement by the agent; providing a penalty for

  6         carriers that fail to comply with audit

  7         requirements; revising requirements for audits;

  8         amending s. 440.40, F.S.; requiring employers

  9         to post a notice relating to the anti-fraud

10         reward program; amending s. 440.45, F.S.;

11         providing additional responsibilities of the

12         director of the Division of Administrative

13         Hearings as agency head of the Office of the

14         Judges of Compensation Claims; amending ss.

15         489.114 and 489.510, F.S.; revising

16         determination by the division of verification

17         of coverage of persons engaged in the business

18         of contracting; specifying an administrative

19         fine for contractors who are in noncompliance

20         with ch. 440, F.S., to be paid to the

21         Department of Business and Professional

22         Regulation; amending s. 626.9892, F.S.;

23         revising the criteria for the anti-fraud

24         program; providing for application; requiring

25         the Department of Insurance to conduct a study

26         relating to workers' compensation for persons

27         engaged in the construction industry; providing

28         for construction; providing for severability;

29         providing effective dates.

30

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

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  1         Section 1.  Subsection (1), paragraphs (b) and (d) of

  2  subsection (14), and subsection (37) of section 440.02,

  3  Florida Statutes, are amended, and subsections (40), (41), and

  4  (42) are added to said section, to read:

  5         440.02  Definitions.--When used in this chapter, unless

  6  the context clearly requires otherwise, the following terms

  7  shall have the following meanings:

  8         (1)  "Accident" means only an unexpected or unusual

  9  event or result that happens suddenly. A mental or nervous

10  injury due to stress, fright, or excitement only, or

11  disability or death due to the accidental acceleration or

12  aggravation of a venereal disease or of a disease due to the

13  habitual use of alcohol or controlled substances or narcotic

14  drugs, or a disease that manifests itself in the fear of or

15  dislike for an individual because of the individual's race,

16  color, religion, sex, national origin, age, or handicap is not

17  an injury by accident arising out of the employment. If a

18  preexisting disease or anomaly is accelerated or aggravated by

19  an accident arising out of and in the course of employment,

20  only acceleration of death or acceleration or aggravation of

21  the preexisting condition reasonably attributable to the

22  accident is compensable, with respect to death or permanent

23  impairment. An injury or exposure caused by exposure to a

24  toxic substance is not an injury by accident arising out of

25  the employment unless there is clear and convincing evidence

26  establishing that exposure to the specific substance involved,

27  at the levels at which the employee was exposed, can cause the

28  injury or disease sustained by the employee.

29         (14)

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

31  of a corporation and who performs services for remuneration

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

  2  services are continuous.

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

  4  from this chapter by filing written notice of the election

  5  with the division as provided in s. 440.05.

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

  7  engaged in the construction industry, no more than three

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

  9  written notice of the election with the division as provided

10  in s. 440.05. However, a corporate officer of a corporation

11  actively engaged in the construction industry may not elect to

12  be exempt, and any exemption obtained by such an officer is

13  not applicable, with respect to any commercial construction

14  job site estimated to be valued at $250,000 or greater.

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

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

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

18

19  Services are presumed to have been rendered to the corporation

20  if the officer is compensated by other than dividends upon

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

22         (d)  "Employee" does not include:

23         1.  An independent contractor, if:

24         a.  The independent contractor maintains a separate

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

26  materials, or similar accommodations;

27         b.  The independent contractor holds or has applied for

28  a federal employer identification number, unless the

29  independent contractor is a sole proprietor who is not

30  required to obtain a federal employer identification number

31  under state or federal requirements;

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  1         c.  The independent contractor performs or agrees to

  2  perform specific services or work for specific amounts of

  3  money and controls the means of performing the services or

  4  work;

  5         d.  The independent contractor incurs the principal

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

  7  performs or agrees to perform;

  8         e.  The independent contractor is responsible for the

  9  satisfactory completion of work or services that he or she

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

11  for a failure to complete the work or services;

12         f.  The independent contractor receives compensation

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

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

15         g.  The independent contractor may realize a profit or

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

17         h.  The independent contractor has continuing or

18  recurring business liabilities or obligations; and

19         i.  The success or failure of the independent

20  contractor's business depends on the relationship of business

21  receipts to expenditures.

22

23  However, the determination as to whether an individual

24  included in the Standard Industrial Classification Manual of

25  1987, Industry Numbers 0711, 0721, 0722, 0751, 0761, 0762,

26  0781, 0782, 0783, 0811, 0831, 0851, 2411, 2421, 2435, 2436,

27  2448, or 2449, or a newspaper delivery person, is an

28  independent contractor is governed not by the criteria in this

29  paragraph but by common-law principles, giving due

30  consideration to the business activity of the individual.

31  Notwithstanding the provisions of this paragraph or any other

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  1  provision of this chapter, with respect to any commercial

  2  construction job site estimated to be valued at $250,000 or

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

  4  industry is not an independent contractor and is either an

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

  6  coverage requirements of this chapter.

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

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

  9  of commission.

10         3.  Bands, orchestras, and musical and theatrical

11  performers, including disk jockeys, performing in licensed

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

13  evidencing an independent contractor relationship is entered

14  into before the commencement of such entertainment.

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

16  property under a written contract with a motor carrier which

17  evidences a relationship by which the owner-operator assumes

18  the responsibility of an employer for the performance of the

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

20  necessary motor vehicle equipment and all costs incidental to

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

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

23  owner-operator is paid a commission for transportation service

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

25  basis.

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

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

28  of the employer.

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

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

31  A person who does not receive monetary remuneration for

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  1  services is presumed to be a volunteer unless there is

  2  substantial evidence that a valuable consideration was

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

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

  5         a.  Persons who serve in private nonprofit agencies and

  6  who receive no compensation other than expenses in an amount

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

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

  9  if such agency does not have salaried employees who receive

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

11  compensation other than expenses in an amount less than or

12  equivalent to the customary mileage and per diem paid to

13  salaried workers in the community as determined by the

14  division; and

15         b.  Volunteers participating in federal programs

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

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

18  exempt from this chapter.

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

20  actively engages in the construction industry, and a partner

21  in a partnership that is actively engaged in the construction

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

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

24  employee for any reason until the notice of revocation of

25  election filed pursuant to s. 440.05 is effective.

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

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

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

29  into prior to the commencement of such activity which

30  evidences that an employee/employer relationship does not

31  exist.

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  1         10.  A taxicab, limousine, or other passenger

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

  3  a written agreement with a company which provides any

  4  dispatch, marketing, insurance, communications, or other

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

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

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

  8  revenues.

  9         11.  A person who performs services as a sports

10  official for an entity sponsoring an interscholastic sports

11  event or for a public entity or private, nonprofit

12  organization that sponsors an amateur sports event.  For

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

14  contractor. For purposes of this subparagraph, the term

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

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

17  umpires, referees, judges, linespersons, scorekeepers, or

18  timekeepers. This subparagraph does not apply to any person

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

20  official as required by the employing school board or who

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

22  responsibilities during normal school hours.

23         12.  Notwithstanding the provisions of subparagraph 1.,

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

25  actively engaged in the construction industry with respect to

26  any commercial construction job site estimated to be valued at

27  $250,000 or greater. Any such employee may not elect to be

28  exempt, and any exemption obtained is not applicable, with

29  respect to work performed at such a commercial job site.

30         13.  For the purposes of a nurse registry, as defined

31  in s. 400.462(15) and licensed pursuant to s. 400.506, a

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  1  registered nurse or licensed practical nurse, licensed under

  2  chapter 464, or a certified nursing assistant, home health

  3  aide, companion, or homemaker, as they are defined in s.

  4  400.462.

  5         (37)  "Catastrophic injury" means a permanent

  6  impairment constituted by:

  7         (a)  Spinal cord injury involving severe paralysis of

  8  an arm, a leg, or the trunk;

  9         (b)  Amputation of an arm, a hand, a foot, or a leg

10  involving the effective loss of use of that appendage;

11         (c)  Severe brain or closed-head injury as evidenced

12  by:

13         1.  Severe sensory or motor disturbances;

14         2.  Severe communication disturbances;

15         3.  Severe complex integrated disturbances of cerebral

16  function;

17         4.  Severe episodic neurological disorders; or

18         5.  Other severe brain and closed-head injury

19  conditions at least as severe in nature as any condition

20  provided in subparagraphs 1.-4.;

21         (d)  Second-degree or third-degree burns of 25 percent

22  or more of the total body surface or third-degree burns of 5

23  percent or more to the face and hands; or

24         (e)  Total or industrial blindness.; or

25         (f)  Any other injury that would otherwise qualify

26  under this chapter of a nature and severity that would qualify

27  an employee to receive disability income benefits under Title

28  II or supplemental security income benefits under Title XVI of

29  the federal Social Security Act as the Social Security Act

30  existed on July 1, 1992, without regard to any time

31  limitations provided under that act.

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  1         (40)  "Specificity" means information provided on the

  2  petition for benefits sufficient to put the employer or

  3  carrier on notice of the exact statutory classification and

  4  outstanding time period of benefits being requested, including

  5  a detailed explanation of any benefits received that should be

  6  increased, decreased, changed, or otherwise modified. For

  7  purposes of petitions for medical benefits only, "specificity"

  8  means the specific reason the benefit is being requested, the

  9  benefit is medically necessary, and the current treatment, if

10  any, is not sufficient.

11         (41)  "Commerical building" means any building or

12  structure intended for commerical 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 the

17  conversion of any existing residential building to a

18  commercial building.

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

20  structure intended for residential use containing four or

21  fewer dwelling units and any structure intended as an

22  accessory use to the residential structure.

23         Section 2.  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 employer conducting business in this state

28  shall maintain business records as specified by the division

29  by rule, which rules must include the provision that any

30  corporation with exempt officers and any partnership with

31  exempt partners must maintain written statements of those

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  1  exempted persons affirmatively acknowledging each such

  2  individual's exempt status.

  3         (11)  Any sole proprietor or partner claiming an

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

  5  her federal income tax records for each of the immediately

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

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

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

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

10  Form 1040 and its accompanying Schedule C.

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

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

13  Form 1040 and its accompanying Schedule E.

14

15  The sole proprietor or partner in question shall produce, upon

16  request by the division, a copy of those documents together

17  with a statement by the sole proprietor that the tax records

18  provided are true and accurate copies of what the sole

19  proprietor or partner has filed with the federal Internal

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

21  the sole proprietor or partner in question and must be

22  notarized. The division shall issue a stop-work order under s.

23  440.107(5) to any sole proprietor or partner who fails or

24  refuses to produce a copy of the tax records and affidavit

25  required under this paragraph to the division within 3

26  business days after the request is made.

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

28  not been in business long enough to provide the information

29  required of an established business, the division shall

30  require such sole proprietor or partner to provide copies of

31  the most recent filed Federal Income Tax Form 1040. The

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  1  division shall establish by rule such other criteria to show

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

  3  legitimate enterprise within the construction industry and is

  4  not otherwise attempting to evade the requirements of this

  5  act. The division shall establish by rule the form and format

  6  of financial information required to be submitted by such

  7  employers.

  8         (13)  Any corporate officer claiming an exemption under

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

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

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

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

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

14  request by the division, a notarized affidavit stating that

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

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

17  corporate officer became or will become effective. The

18  statement must be signed under oath by both the officer in

19  question and the president or chief operating officer of the

20  corporation and must be notarized. The division shall issue a

21  stop-work order under s. 440.107(5) to any corporation that

22  employs a person who claims to be exempt as a corporate

23  officer but who fails or refuses to produce the documents

24  required under this subsection to the division within 3

25  business days after the request is made.

26         Section 3.  Section 440.06, Florida Statutes, is

27  amended to read:

28         440.06  Failure to secure compensation; effect.--Every

29  employer who fails to secure the payment of compensation as

30  provided in s. 440.10 by failing to meet the requirements of

31  under this chapter as provided in s. 440.38 may not, in any

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  1  suit brought against him or her by an employee subject to this

  2  chapter to recover damages for injury or death, defend such a

  3  suit on the grounds that the injury was caused by the

  4  negligence of a fellow servant, that the employee assumed the

  5  risk of his or her employment, or that the injury was due to

  6  the comparative negligence of the employee.

  7         Section 4.  Section 440.078, Florida Statutes, is

  8  created to read:

  9         440.078  Limitation on construction industry business

10  activities; penalties.--

11         (1)  Notwithstanding any other provision of this

12  chapter and with respect to persons and entities actively

13  engaged in the construction industry, under no circumstances

14  may a corporation, partnership, sole proprietorship, or

15  independent contractor that fails to maintain coverage or is

16  otherwise without coverage required by this chapter enter into

17  a contract, subcontract, or other business relationship, for

18  the purposes of construction, with another corporation,

19  partnership, sole proprietorship, or independent contractor

20  that fails to maintain coverage or is otherwise without

21  coverage required by this chapter.

22         (2)  Any sole proprietor or partner of a business

23  actively engaged in the construction industry who violates

24  subsection (1) shall immediately forfeit any election of

25  exclusion or election of exemption available under this

26  chapter and shall be prohibited from electing or receiving an

27  exclusion or exemption from the requirements of this chapter

28  for a period of 5 years from the date of the prohibited

29  action. Any person under this section who violates subsection

30  (1) and who has no election of exclusion or election of

31  exemption or who is an independent contractor commits a

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  1  misdemeanor of the second degree, punishable as provided by s.

  2  775.082 or s. 775.083.

  3         (3)  Any corporate officer of a corporation actively

  4  engaged in the construction industry that violates subsection

  5  (1) shall immediately forfeit any election of exclusion or

  6  election of exemption available under this chapter and shall

  7  be prohibited from electing or receiving an exclusion or

  8  exemption from the requirements of this chapter for a period

  9  of 5 years after the date of the prohibited action.

10         Section 5.  Subsection (1) of section 440.09, Florida

11  Statutes, is amended to read:

12         440.09  Coverage.--

13         (1)  The employer shall pay compensation or furnish

14  benefits required by this chapter if the employee suffers an

15  accidental, compensable injury or death arising out of work

16  performed in the course and the scope of employment. The

17  injury, its occupational cause, and any resulting

18  manifestations or disability shall be established to a

19  reasonable degree of medical certainty and by objective

20  medical findings. Mental or nervous injuries occurring as a

21  manifestation of an injury compensable under this section

22  shall be demonstrated by clear and convincing evidence. In a

23  case involving occupational disease or repetitive exposure,

24  both causation and sufficient exposure to support causation

25  must be proven by a preponderance of the evidence.

26         (a)  This chapter does not require any compensation or

27  benefits for any subsequent injury the employee suffers as a

28  result of an original injury arising out of and in the course

29  of employment unless the original injury is the major

30  contributing cause of the subsequent injury. The work-related

31  accident must be more than 50-percent responsible for the

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  1  injury and subsequent disability or need for treatment in

  2  order for the accident to be a major contributing cause.

  3         (b)  If an injury arising out of and in the course of

  4  employment combines with a preexisting disease or condition to

  5  cause or prolong disability or need for treatment, the

  6  employer must pay compensation or benefits required by this

  7  chapter only to the extent that the injury arising out of and

  8  in the course of employment is and remains more than

  9  50-percent responsible for the major contributing cause of the

10  disability or need for treatment.

11         (c)  Death resulting from an operation by a surgeon

12  furnished by the employer for the cure of hernia as required

13  in s. 440.15(6) shall for the purpose of this chapter be

14  considered to be a death resulting from the accident causing

15  the hernia.

16         (d)  If an accident happens while the employee is

17  employed elsewhere than in this state, which would entitle the

18  employee or his or her dependents to compensation if it had

19  happened in this state, the employee or his or her dependents

20  are entitled to compensation if the contract of employment was

21  made in this state, or the employment was principally

22  localized in this state. However, if an employee receives

23  compensation or damages under the laws of any other state, the

24  total compensation for the injury may not be greater than is

25  provided in this chapter.

26         Section 6.  Section 440.091, Florida Statutes, is

27  amended to read:

28         440.091  Law enforcement officer, firefighter,

29  emergency medical technician, or paramedic; when acting within

30  the course of employment.--

31         (1)  If an employee:

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  1         (a)(1)  Is elected, appointed, or employed full time by

  2  a municipality, the state, or any political subdivision and is

  3  vested with authority to bear arms and make arrests and the

  4  employee's primary responsibility is the prevention or

  5  detection of crime or the enforcement of the penal, criminal,

  6  traffic, or highway laws of the state;

  7         (b)(2)  Was discharging that primary responsibility

  8  within the state in a place and under circumstances reasonably

  9  consistent with that primary responsibility; and

10         (c)(3)  Was not engaged in services for which he or she

11  was paid by a private employer, and the employee and his or

12  her public employer had no agreement providing for workers'

13  compensation coverage for that private employment,;

14

15  the employee is considered shall be deemed to have been acting

16  within the course of employment.  The term "employee" as used

17  in this subsection section includes all certified supervisory

18  and command personnel whose duties include, in whole or in

19  part, responsibilities for the supervision, training,

20  guidance, and management of full-time law enforcement

21  officers, part-time law enforcement officers, or auxiliary law

22  enforcement officers but does not include support personnel

23  employed by the employing agency.

24         (2)  If a firefighter as defined in s. 112.191(1)(b) is

25  engaged in extinguishing a fire, or protecting and saving life

26  or property due to a fire in this state in an emergency, and

27  such activities would be considered to be within the course of

28  his or her employment as a firefighter and covered by the

29  employer's workers' compensation coverage except for the fact

30  that the firefighter was off duty or that the location of the

31  fire was outside the employer's jurisdiction or area of

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  1  responsibility, such activities are considered to be within

  2  the course of employment. This subsection does not apply if

  3  the firefighter is performing activities for which he or she

  4  is paid by another employer or contractor.

  5         (3)  If an emergency medical technician or paramedic

  6  certified under chapter 401 is providing basic life support or

  7  advanced life support service, as defined in s. 401.23, in an

  8  emergency situation in this state, and such activities would

  9  be considered to be within the course of his or her employment

10  as an emergency medical technician or paramedic and covered by

11  the employer's workers' compensation coverage except for the

12  fact that the location of the emergency was outside of the

13  employer's jurisdiction or area of responsibility, such

14  activities are considered to be within the course of

15  employment. The provisions of this subsection do not apply if

16  the emergency medical technician or paramedic is performing

17  activities for which he or she is paid by another employer or

18  contractor.

19         (4)  Notwithstanding s. 440.092(2), an injury to a law

20  enforcement officer as defined in s. 943.10(1) during the

21  officer's work period or while going to or coming from work in

22  an official law enforcement vehicle shall be presumed to be an

23  injury arising out of and in the course of employment unless

24  the injury occurred during a distinct deviation for a

25  nonessential personal errand. If, however, the employer's

26  policy or the collective bargaining agreement that applies to

27  the officer permits such deviations for nonessential errands,

28  the injury shall be presumed to arise out of and in the course

29  of employment.

30         (5)  Any law enforcement officer as defined in s.

31  943.10(1), (2), or (3) who, while acting within the course of

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  1  employment as provided by subsection (1), is maliciously or

  2  intentionally injured and who thereby sustains a job-connected

  3  disability compensable under this chapter shall be carried in

  4  full-pay status rather than being required to use sick,

  5  annual, or other leave. Full-pay status shall be granted only

  6  after submission of a medical report to the employing agency's

  7  head which gives a current diagnosis of the employee's

  8  recovery and ability to return to work. In no case shall the

  9  employee's salary and workers' compensation benefits exceed

10  the amount of the employee's regular salary requirements.

11         Section 7.  Subsection (2) of section 440.092, Florida

12  Statutes, is amended to read:

13         440.092  Special requirements for compensability;

14  deviation from employment; subsequent intervening accidents.--

15         (2)  GOING OR COMING.--Except as provided in s.

16  440.091(4), an injury suffered while going to or coming from

17  work is not an injury arising out of and in the course of

18  employment whether or not the employer provided transportation

19  if such means of transportation was available for the

20  exclusive personal use by the employee, unless the employee

21  was engaged in a special errand or mission for the employer.

22  For the purposes of this subsection and not withstanding any

23  other provisions of law to the contrary, an injury to a law

24  enforcement officer as defined in s. 943.10(1), during the

25  officer's work period or while going to or coming from work in

26  an official law enforcement vehicle, shall be presumed to be

27  an injury arising out of and in the course of employment

28  unless the injury occurred during a distinct deviation for a

29  nonessential personal errand.  If, however, the employer's

30  policy or the collective bargaining agreement that applies to

31  the officer permits such deviations for nonessential errands,

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  1  the injury shall be presumed to arise out of and in the course

  2  of employment.

  3         Section 8.  It is declared by the Legislature that

  4  firefighters perform state and municipal functions, that it is

  5  their duty to protect life and property at their own risk and

  6  peril, and that their activities are vital to the public

  7  safety. Therefore, the Legislature declares that it fulfills

  8  an important state interest to provide workers' compensation

  9  coverage to firefighters while they are engaged in

10  extinguishing a fire, protecting and saving life or property

11  due to a fire in this state while off duty, or engaging in

12  such activities at a fire located outside the employer's

13  jurisdiction or area of responsibility.  It is further

14  declared by the Legislature that emergency medical technicians

15  and paramedics perform municipal and state functions, that it

16  is their duty to protect and preserve life at their own risk

17  and peril, and that their activities are vital to the public

18  health, safety, and welfare.  Therefore, the Legislature

19  declares that it fulfills an important state interest to

20  provide workers' compensation coverage to emergency medical

21  technicians and paramedics while they are engaged in basic

22  life support and advanced life support services due to an

23  emergency in this state that is outside of their employer's

24  jurisdiction or area of responsibility.  Pursuant to Section

25  18, Article VII of the State Constitution, the Legislature

26  determines and declares that the provisions of this act

27  fulfill an important state interest.

28         Section 9.  Paragraphs (a) and (f) of subsection (1) of

29  section 440.10, Florida Statutes, are amended to read:

30         440.10  Liability for compensation.--

31

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  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, in accordance with s. 440.38, the payment to his

  5  or her employees, or any physician, surgeon, or pharmacist

  6  providing services under the provisions of s. 440.13, of the

  7  compensation payable under ss. 440.13, 440.15, and 440.16. Any

  8  contractor or subcontractor who engages in any public or

  9  private construction in the state shall secure and maintain

10  compensation for his or her employees under this chapter as

11  provided in s. 440.38.

12         (f)  If an employer willfully fails to secure

13  compensation as required by this chapter, the division may

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

15  each employee of that employer who is classified by the

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

17  division to not meet the criteria for an independent

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

19  adopt rules pursuant to ss. 120.536(1) and 120.54 to implement

20  the provisions of this paragraph.

21

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

23  elects exemption from this chapter by filing a certificate of

24  election under s. 440.05 may not recover benefits or

25  compensation under this chapter.  An independent contractor

26  who provides the general contractor with both an affidavit

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

28  440.02(14)(d) and a certificate of exemption is not an

29  employee under s. 440.02(14)(c) and may not recover benefits

30  under this chapter.  For purposes of determining the

31  appropriate premium for workers' compensation coverage,

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  1  carriers may not consider any person who meets the

  2  requirements of this paragraph to be an employee.

  3         Section 10.  Section 440.103, Florida Statutes, is

  4  amended to read:

  5         440.103  Building permits; identification of minimum

  6  premium policy.--Except as otherwise provided in this chapter,

  7  every employer shall, as a condition to receiving a building

  8  permit, show proof that it has secured compensation for its

  9  employees under this chapter as provided in ss. 440.10 and

10  440.38. Such proof of compensation must be evidenced by a

11  certificate of insurance coverage issued by the carrier, a

12  valid exemption certificate approved by the division, or a

13  copy of the employer's authority to self-insure and shall be

14  presented each time the employer applies for a building

15  permit. Each certificate of insurance shall indicate the

16  states in which the coverage applies. As provided in s.

17  627.413(5), each certificate of insurance coverage must show,

18  on its face, whether or not coverage is secured under the

19  minimum premium provisions of rules adopted by rating

20  organizations licensed by the Department of Insurance. The

21  words "minimum premium policy" or equivalent language shall be

22  typed, printed, stamped, or legibly handwritten.

23         Section 11.  Subsections (5) and (7) of section

24  440.107, Florida Statutes, are amended, and subsection (12) is

25  added to said section, to read:

26         440.107  Division powers to enforce employer compliance

27  with coverage requirements.--

28         (5)  Whenever the division determines that an employer

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

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

31  do so or that an employer has misrepresented to a carrier the

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  1  size or classification of the employer's payroll, such failure

  2  or intentional misrepresentation shall be deemed an immediate

  3  serious danger to public health, safety, or welfare sufficient

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

  5  employer, requiring the cessation of all business operations

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

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

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

  9  date of service upon the employer, unless the employer

10  provides evidence satisfactory to the division of having

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

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

13  into the Workers' Compensation Administration Trust Fund, in

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

15  in compliance with this chapter.

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

17  injunction, the division shall may assess against any

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

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

20  of:

21         (a)  An amount equal to at least the amount the

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

23  employer would have paid during periods it illegally failed to

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

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

26  period; or

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

28

29  Any penalty assessed under this subsection is due within 30

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

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

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

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

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

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

  5  of 1 percent per month. The division shall adopt rules

  6  pursuant to ss. 120.536(1) and 120.54 to implement the

  7  provisions of this subsection.

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

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

10  and who is required to secure payment of the compensation

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

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

13  Department of Business and Professional Regulation.

14         Section 12.  Subsection (1) of section 440.11, Florida

15  Statutes, is amended to read:

16         440.11  Exclusiveness of liability.--

17         (1)  Except if an employer acts with the intent to

18  cause injury or death, the liability of an employer prescribed

19  in s. 440.10 shall be exclusive and in place of all other

20  liability, including any vicarious liability, of such employer

21  to any third-party tortfeasor and to the employee, the legal

22  representative thereof, husband or wife, parents, dependents,

23  next of kin, and anyone otherwise entitled to recover damages

24  from such employer at law or in admiralty on account of such

25  injury or death, except that if an employer fails to secure

26  payment of compensation in accordance with s. 440.38 as

27  required by this chapter, an injured employee, or the legal

28  representative thereof in case death results from the injury,

29  may elect to claim compensation under this chapter or to

30  maintain an action at law or in admiralty for damages on

31  account of such injury or death. In such action the defendant

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  1  may not plead as a defense that the injury was caused by

  2  negligence of a fellow employee, that the employee assumed the

  3  risk of the employment, or that the injury was due to the

  4  comparative negligence of the employee. The same immunities

  5  from liability enjoyed by an employer shall extend as well to

  6  each employee of the employer when such employee is acting in

  7  furtherance of the employer's business and the injured

  8  employee is entitled to receive benefits under this chapter.

  9  Such fellow-employee immunities shall not be applicable to an

10  employee who acts, with respect to a fellow employee, with

11  willful and wanton disregard or unprovoked physical aggression

12  or with gross negligence when such acts result in injury or

13  death or such acts proximately cause such injury or death, nor

14  shall such immunities be applicable to employees of the same

15  employer when each is operating in the furtherance of the

16  employer's business but they are assigned primarily to

17  unrelated works within private or public employment. The same

18  immunity provisions enjoyed by an employer shall also apply to

19  any sole proprietor, partner, corporate officer or director,

20  supervisor, or other person who in the course and scope of his

21  or her duties acts in a managerial or policymaking capacity

22  and the conduct that which caused the alleged injury arose

23  within the course and scope of said managerial or policymaking

24  duties and was not a violation of a law, whether or not a

25  violation was charged, for which the maximum penalty which may

26  be imposed does not exceed 60 days' imprisonment as set forth

27  in s. 775.082. The immunity from liability provided in this

28  subsection extends to county governments with respect to

29  employees of county constitutional officers whose offices are

30  funded by the board of county commissioners. "Intent" includes

31  only those actions or conduct of the employer where the

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  1  employer actually intended that the consequences of its

  2  actions or conduct would be injury or death. Proof of intent

  3  includes only evidence of a deliberate and knowing intent to

  4  harm. If an employee recovers damages from an employer by

  5  judgment or settlement under this subsection, the workers'

  6  compensation carrier for the employer or the employer, if

  7  self-insured, shall have an offset against any workers'

  8  compensation benefits to which the employee would be entitled

  9  under this chapter and a lien against recovery for any

10  benefits paid prior to the recovery pursuant to this chapter

11  after deduction for attorney's fees and costs expended by the

12  employee in prosecuting the claim against the employer.

13         Section 13.  Paragraph (j) of subsection (1),

14  paragraphs (a), (b), (c), (e), and (f) of subsection (5), and

15  paragraph (b) of subsection (14) of section 440.13, Florida

16  Statutes, are amended to read:

17         440.13  Medical services and supplies; penalty for

18  violations; limitations.--

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

20         (j)  "Independent medical examiner" means a physician

21  selected by either an employee or a carrier to render one or

22  more independent medical examinations in connection with a

23  dispute arising under this chapter. Notwithstanding rules

24  adopted by the division, costs for independent medical

25  examinations shall be governed by this chapter.

26         (5)  INDEPENDENT MEDICAL EXAMINATIONS.--

27         (a)  In any dispute concerning overutilization, medical

28  benefits, compensability, or disability under this chapter,

29  the carrier or the employee may select an independent medical

30  examiner. If the parties agree, the examiner may be a health

31  care provider treating or providing other care to the

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  1  employee. An independent medical examiner may not render an

  2  opinion outside his or her area of expertise, as demonstrated

  3  by licensure and applicable practice parameters. Upon the

  4  written request of the employee, the carrier shall pay the

  5  cost of only one independent medical examination per accident.

  6  The cost of an additional independent medical examination,

  7  including the costs of an independent medical examiner's

  8  deposition, shall be borne by the party requesting the

  9  additional independent medical examination. Only the costs of

10  independent medical examinations and the costs of depositions

11  expressly relied upon by the judge of compensation claims to

12  award benefits in the final compensation order are taxable

13  costs under s. 440.34(3).

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

15  independent medical examiner and is entitled to an alternate

16  examiner only if:

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

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

19  material to the claim or petition for benefits;

20         2.  The examiner ceases to practice in the specialty

21  relevant to the employee's condition;

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

23  or relocation outside a reasonably accessible geographic area;

24  or

25         4.  The parties agree to an alternate examiner.

26

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

28  require, designation of a division medical advisor as an

29  independent medical examiner. The opinion of the advisors

30  acting as examiners shall not be afforded the presumption set

31  forth in paragraph (9)(c).

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  1         (c)  The carrier may, at its election, contact the

  2  claimant directly to schedule a reasonable time for an

  3  independent medical examination. The carrier must confirm the

  4  scheduling agreement in writing within 5 days and notify

  5  claimant's counsel, if any, at least 7 days before the date

  6  upon which the independent medical examination is scheduled to

  7  occur. An attorney representing a claimant is not authorized

  8  to schedule the self-insured employer's or the carrier's

  9  independent medical evaluations under this subsection.

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

11  medical advisor appointed by the judge of compensation claims

12  or division, an independent medical examiner, or an authorized

13  treating provider is admissible in proceedings before the

14  judges of compensation claims. The employee and the carrier

15  may each submit into evidence, and the judge of compensation

16  claims shall admit, the medical opinion of not more than one

17  qualified independent medical examiner per specialty. In cases

18  involving occupational disease or repetitive trauma, medical

19  opinions are not admissible unless based on reliable

20  scientific principles sufficiently established to have gained

21  general acceptance in the pertinent area of specialty.

22         (f)  Attorney's fees incurred by an injured employee in

23  connection with delay of or opposition to an independent

24  medical examination, including, but not limited to, motions

25  for protective orders, are not recoverable under this chapter.

26         (14)  PAYMENT OF MEDICAL FEES.--

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

28  attendance may not exceed the applicable fee schedules adopted

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

30  entered into between an employer or carrier and a certified

31

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  1  health care provider or health care facility for the payment

  2  of medical services for covered expenses.

  3         Section 14.  Paragraph (a) of subsection (2) of section

  4  440.134, Florida Statutes, is amended to read:

  5         440.134  Workers' compensation managed care

  6  arrangement.--

  7         (2)(a)  The self-insured employer or carrier may,

  8  subject to the terms and limitations specified elsewhere in

  9  this section and chapter, furnish to the employee solely

10  through managed care arrangements such medically necessary

11  remedial treatment, care, and attendance for such period as

12  the nature of the injury or the process of recovery requires.

13  For any self-insured employer or carrier who elects to deliver

14  the medical benefits required by this chapter through a method

15  other than a workers' compensation managed care arrangement,

16  the discontinuance of the use of the workers' compensation

17  managed care arrangement shall be without regard to the date

18  of the accident, notwithstanding any other provision of law or

19  rule.

20         Section 15.  Paragraph (a) of subsection (1) of section

21  440.14, Florida Statutes, is amended to read:

22         440.14  Determination of pay.--

23         (1)  Except as otherwise provided in this chapter, the

24  average weekly wages of the injured employee on the date of

25  the accident, rather than on the date of disability at the

26  time of the injury shall be taken as the basis upon which to

27  compute compensation and shall be determined, subject to the

28  limitations of s. 440.12(2), as follows:

29         (a)  If the injured employee has worked in the

30  employment in which she or he was working at the time of the

31  injury, whether for the same or another employer, during

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  1  substantially the whole of 13 weeks immediately preceding the

  2  injury, her or his average weekly wage shall be one-thirteenth

  3  of the total amount of wages actually earned in such

  4  employment during the 13 weeks.  As used in this paragraph,

  5  the term "substantially the whole of 13 weeks" means an actual

  6  shall be deemed to mean and refer to a constructive period of

  7  13 weeks as a whole, which shall be defined as the 13 complete

  8  weeks before the date of the accident, excluding the week the

  9  injury occurs. a consecutive period of 91 days, and The term

10  "during substantially the whole of 13 weeks" means shall be

11  deemed to mean during not less than 90 percent of the total

12  customary full-time hours of employment within such period

13  considered as a whole.  Raises received during the

14  aforementioned 13-week period are only to be factored into the

15  average weekly wage from the actual date the raise became

16  effective.

17         Section 16.  Paragraphs (b) and (f) of subsection (1),

18  paragraph (a) of subsection (3), and subsection (12) of

19  section 440.15, Florida Statutes, are amended to read:

20         440.15  Compensation for disability.--Compensation for

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

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

23         (1)  PERMANENT TOTAL DISABILITY.--

24         (b)  Any compensable injury eligible for permanent

25  total disability benefits must be of a nature and severity

26  that prevents the employee from being able to perform at least

27  sedentary employment. If the employee is engaged in or is

28  capable of being engaged in at least sedentary employment, he

29  or she is not entitled to permanent total disability benefits.

30  The burden is on the employee to establish that he or she is

31  unable to perform even sedentary work if such work is

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  1  available within a 50-mile radius of the employee's residence

  2  or such greater distance as the judge determines to be

  3  reasonable under the circumstances. Such benefits shall be

  4  payable until the employee reaches the age of 72.

  5  Notwithstanding any age limit, if the accident occurred on or

  6  after the employee reaches the age of 65, benefits shall be

  7  payable during the continuance of permanent total disability,

  8  not to exceed 7 years following the determination of permanent

  9  total disability. In addition, Only a catastrophic injury as

10  defined in s. 440.02 shall, in the absence of conclusive proof

11  of a substantial earning capacity, constitute permanent total

12  disability. Only claimants with catastrophic injuries are

13  eligible for permanent total benefits. In no other case may

14  permanent total disability benefits be awarded.

15         (f)1.  If permanent total disability results from

16  injuries that occurred subsequent to June 30, 1955, and for

17  which the liability of the employer for compensation has not

18  been discharged under s. 440.20(11), the injured employee

19  shall receive additional weekly compensation benefits equal to

20  5 percent of her or his weekly compensation rate, as

21  established pursuant to the law in effect on the date of her

22  or his injury, multiplied by the number of calendar years

23  since the date of injury. The weekly compensation payable and

24  the additional benefits payable under this paragraph, when

25  combined, may not exceed the maximum weekly compensation rate

26  in effect at the time of payment as determined pursuant to s.

27  440.12(2). Entitlement to these supplemental payments shall

28  not be paid or payable after cease at age 62 if the employee

29  is eligible for social security benefits under 42 U.S.C. ss.

30  402 and 423, whether or not the employee has applied for or is

31  ineligible to apply for social security benefits under 42

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  1  U.S.C. s. 402 or s. 423 such benefits. These supplemental

  2  benefits shall be paid by the division out of the Workers'

  3  Compensation Administration Trust Fund when the injury

  4  occurred subsequent to June 30, 1955, and before July 1, 1984.

  5  These supplemental benefits shall be paid by the employer when

  6  the injury occurred on or after July 1, 1984. Supplemental

  7  benefits are not payable for any period prior to October 1,

  8  1974.

  9         2.a.  The division shall provide by rule for the

10  periodic reporting to the division of all earnings of any

11  nature and social security income by the injured employee

12  entitled to or claiming additional compensation under

13  subparagraph 1. Neither the division nor the employer or

14  carrier shall make any payment of those additional benefits

15  provided by subparagraph 1. for any period during which the

16  employee willfully fails or refuses to report upon request by

17  the division in the manner prescribed by such rules.

18         b.  The division shall provide by rule for the periodic

19  reporting to the employer or carrier of all earnings of any

20  nature and social security income by the injured employee

21  entitled to or claiming benefits for permanent total

22  disability. The employer or carrier is not required to make

23  any payment of benefits for permanent total disability for any

24  period during which the employee willfully fails or refuses to

25  report upon request by the employer or carrier in the manner

26  prescribed by such rules or if any employee who is receiving

27  permanent total disability benefits refuses to apply for or

28  cooperate with the employer or carrier in applying for social

29  security benefits.

30         3.  When an injured employee receives a full or partial

31  lump-sum advance of the employee's permanent total disability

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  1  compensation benefits, the employee's benefits under this

  2  paragraph shall be computed on the employee's weekly

  3  compensation rate as reduced by the lump-sum advance.

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

  5         (a)  Impairment benefits.--

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

  7  medical improvement, impairment benefits are due and payable

  8  within 20 days after the carrier has knowledge of the

  9  impairment.

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

11  division, shall establish and use a uniform permanent

12  impairment rating schedule. This schedule must be based on

13  medically or scientifically demonstrable findings as well as

14  the systems and criteria set forth in the American Medical

15  Association's Guides to the Evaluation of Permanent

16  Impairment; the Snellen Charts, published by American Medical

17  Association Committee for Eye Injuries; and the Minnesota

18  Department of Labor and Industry Disability Schedules. The

19  schedule should be based upon objective findings. The schedule

20  shall be more comprehensive than the AMA Guides to the

21  Evaluation of Permanent Impairment and shall expand the areas

22  already addressed and address additional areas not currently

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

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

25  Evaluation of Permanent Impairment, copyright 1977, 1971,

26  1988, by the American Medical Association, shall be the

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

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

29  division rule of a uniform disability rating schedule, the

30  Minnesota Department of Labor and Industry Disability Schedule

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

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

  2  Impairment by the American Medical Association shall be used.

  3  Determination of permanent impairment under this schedule must

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

  5  osteopathic medicine licensed under chapters 458 and 459, a

  6  chiropractic physician licensed under chapter 460, a podiatric

  7  physician licensed under chapter 461, an optometrist licensed

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

  9  appropriate considering the nature of the injury. No other

10  persons are authorized to render opinions regarding the

11  existence of or the extent of permanent impairment.

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

13  impairment rating using the impairment schedule referred to in

14  subparagraph 2. Impairment income benefits are paid biweekly

15  weekly at a the rate equal to 100 of 50 percent of the

16  employee's compensation rate, average weekly temporary total

17  disability benefit not to exceed the maximum weekly benefit

18  under s. 440.12. An employee's entitlement to impairment

19  income benefits begins the day after the employee reaches

20  maximum medical improvement or the expiration of temporary

21  benefits, whichever occurs earlier, and continues until the

22  earlier of:

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

24  3 weeks for each percentage point of impairment; or

25         b.  The death of the employee.

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

27  as having reached maximum medical improvement or 6 weeks

28  before the expiration of temporary benefits, whichever occurs

29  earlier, the certifying doctor shall evaluate the condition of

30  the employee and assign an impairment rating, using the

31  impairment schedule referred to in subparagraph 2.

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

  2  emotional injury arising out of depression from being out of

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

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

  5  certification and evaluation must be submitted to the treating

  6  doctor, and the treating doctor must indicate agreement or

  7  disagreement with the certification and evaluation. The

  8  certifying doctor shall issue a written report to the

  9  division, the employee, and the carrier certifying that

10  maximum medical improvement has been reached, stating the

11  impairment rating, and providing any other information

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

13  certified as having reached maximum medical improvement before

14  the expiration of 102 weeks after the date temporary total

15  disability benefits begin to accrue, the carrier shall notify

16  the treating doctor of the requirements of this section.

17         5.  The carrier shall pay the employee impairment

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

19         6.  The division may by rule specify forms and

20  procedures governing the method of payment of wage loss and

21  impairment benefits for dates of accidents before January 1,

22  1994, and for dates of accidents on or after January 1, 1994.

23         (12)  FULL-PAY STATUS FOR CERTAIN LAW ENFORCEMENT

24  OFFICERS.--Law enforcement officers as defined in s.

25  943.10(1), (2), or (3) shall be paid in accordance with s.

26  440.091(5). Any law enforcement officer as defined in s.

27  943.10(1), (2), or (3) who, while acting within the course of

28  employment as provided by s. 440.091, is maliciously or

29  intentionally injured and who thereby sustains a job-connected

30  disability compensable under this chapter shall be carried in

31  full-pay status rather than being required to use sick,

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  1  annual, or other leave. Full-pay status shall be granted only

  2  after submission to the employing agency's head of a medical

  3  report which gives a current diagnosis of the employee's

  4  recovery and ability to return to work. In no case shall the

  5  employee's salary and workers' compensation benefits exceed

  6  the amount of the employee's regular salary requirements.

  7         Section 17.  Section 440.191, Florida Statutes, is

  8  amended to read:

  9         440.191  Employee Assistance and Ombudsman Office.--

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

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

12  construed to permit injured employees and employers or the

13  employer's carrier to resolve disagreements without undue

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

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

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

17  carriers, service providers, health care providers, managed

18  care arrangements, attorneys, employers, and employees, to

19  attempt to resolve disagreements in good faith and to

20  cooperate with the division's efforts to resolve disagreements

21  between the parties. The division may by rule prescribe

22  definitions that are necessary for the effective

23  administration of this section.

24         (b)  An Employee Assistance and Ombudsman Office is

25  created within the Division of Workers' Compensation to inform

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

27  care providers, and managed care arrangements in fulfilling

28  their responsibilities under this chapter. The division may by

29  rule specify forms and procedures for administering requests

30  for assistance provided by this section.

31

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  1         (c)  The Employee Assistance and Ombudsman Office,

  2  Division of Workers' Compensation, shall be a resource

  3  available to all employees who participate in the workers'

  4  compensation system and shall take all steps necessary to

  5  educate and disseminate information to employees and

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

  7  Employee Assistance and Ombudsman Office is authorized to

  8  initiate contact with the injured employee or the employee's

  9  representative to discuss rights and responsibilities of the

10  employee under this chapter and the services available through

11  the Employee Assistance and Ombudsman Office.

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

13  any benefit under this chapter unless the employee has

14  exhausted the procedures for informal dispute resolution under

15  this section.

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

17  fails to provide benefits to which the employee believes she

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

19  request assistance in resolving the dispute. The office may

20  review petitions for benefits filed under s. 440.192 and may

21  shall investigate the dispute and shall attempt to facilitate

22  an agreement between the employee and the employer or carrier.

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

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

25  documents or other information that it may require in

26  connection with its efforts under this section.

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

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

29  disputes quickly and in the most efficient manner possible.

30  Settlement agreements resulting from such conferences must be

31

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  1  submitted to the Office of the Judges of Compensation Claims

  2  for approval.

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

  4  may assign an ombudsman to assist the employee in resolving

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

  6  after the employee contacts the office, The ombudsman shall,

  7  at the employee's request, assist the employee in drafting a

  8  petition for benefits and explain the procedures for filing

  9  petitions. The division may by rule determine the method used

10  to calculate the 30-day period. The Employee Assistance and

11  Ombudsman Office may not represent employees before the judges

12  of compensation claims. An employer or carrier may not pay any

13  attorneys' fees on behalf of the employee for services

14  rendered or costs incurred in connection with this section,

15  unless expressly authorized elsewhere in this chapter.

16         Section 18.  Subsections (2), (5), and (8) of section

17  440.192, Florida Statutes, are amended, and a new subsection

18  (9) is added to said section, to read:

19         440.192  Procedure for resolving benefit disputes.--

20         (2)  Upon receipt of a petition, the Office of the

21  Judges of Compensation Claims or the judge of compensation

22  claims may shall review each petition and shall dismiss each

23  petition or any portion of such a petition, upon the judge's

24  own motion or upon the motion of any party, which that does

25  not on its face specifically identify or itemize the

26  following:

27         (a)  Name, address, telephone number, and social

28  security number of the employee.

29         (b)  Name, address, and telephone number of the

30  employer.

31

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  1         (c)  A detailed description of the injury and cause of

  2  the injury, including the location of the occurrence and the

  3  date or dates of the accident.

  4         (d)  A detailed description of the employee's job, work

  5  responsibilities, and work the employee was performing when

  6  the injury occurred.

  7         (e)  The time period for which compensation and the

  8  specific classification of compensation were not timely

  9  provided.

10         (f)  Date of maximum medical improvement, character of

11  disability, and specific statement of all benefits or

12  compensation that the employee is seeking.

13         (g)  All specific travel costs to which the employee

14  believes she or he is entitled, including dates of travel and

15  purpose of travel, means of transportation, and mileage and

16  including the date the request for mileage was filed with the

17  carrier and a copy of the request filed with the carrier.

18         (h)  Specific listing of all medical charges alleged

19  unpaid, including the name and address of the medical

20  provider, the amounts due, and the specific dates of

21  treatment.

22         (i)  The type or nature of treatment care or attendance

23  sought and the justification for such treatment. If the

24  employee is under the care of a physician for the injury

25  identified in paragraph (c), a copy of the physician's

26  request, authorization, or recommendation for treatment, care,

27  or attendant care must accompany the petition.

28         (j)  Specific explanation of any other disputed issue

29  that a judge of compensation claims will be called to rule

30  upon.

31

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  1         (k)  Any other information and documentation the Deputy

  2  Chief Judge may require by rule.

  3

  4  The dismissal of any petition or portion of such a petition

  5  under this section is without prejudice and does not require a

  6  hearing.

  7         (5)  All motions to dismiss must state with

  8  particularity the basis for the motion. The judge of

  9  compensation claims shall enter an order upon such motions

10  without hearing, unless good cause for hearing is shown. When

11  any petition or portion of a petition is dismissed for lack of

12  specificity under this subsection, the claimant must file

13  within be allowed 20 days after the date of the order of

14  dismissal in which to file an amended petition. Any grounds

15  for dismissal for lack of specificity under this section which

16  are not asserted within 60 30 days after receipt of the

17  petition for benefits are thereby waived.

18         (8)  Within 30 14 days after receipt of a petition for

19  benefits by certified mail, the carrier must either pay the

20  requested benefits without prejudice to its right to deny

21  within 120 days after from receipt of the petition or file a

22  response to petition with the Office of the Judges of

23  Compensation Claims. The carrier must list all benefits

24  requested but not paid and explain its justification for

25  nonpayment in the response to petition. A carrier that does

26  not deny compensability in accordance with s. 440.20(4) is

27  deemed to have accepted the employee's injuries as

28  compensable, unless it can establish material facts relevant

29  to the issue of compensability that could not have been

30  discovered through reasonable investigation within the 120-day

31

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  1  period. The carrier shall provide copies of the response to

  2  the filing party, employer, and claimant by certified mail.

  3         (9)  Unless stipulated in writing by the parties, only

  4  claims that have been properly raised by a petition for

  5  benefits and have undergone mediation may be considered for

  6  adjudication by a judge of compensation claims.

  7         Section 19.  Paragraph (c) of subsection (11) of

  8  section 440.20, Florida Statutes, is amended to read:

  9         440.20  Time for payment of compensation; penalties for

10  late payment.--

11         (11)

12         (c)  Notwithstanding s. 440.21(2), when a claimant is

13  represented by counsel, the claimant may waive all rights to

14  any and all benefits under this chapter by entering into a

15  settlement agreement releasing the employer and the carrier

16  from liability for workers' compensation benefits in exchange

17  for a lump-sum payment to the claimant. The settlement

18  agreement requires approval by the judge of compensation

19  claims only as to the attorney's fees paid to the claimant's

20  attorney by the claimant. The judge of compensation claims

21  shall not approve settlement proposals, including any

22  stipulations or agreements between the parties or between a

23  claimant and his or her attorney related to the settlement

24  proposal, which provide for attorney's fees in excess of the

25  amount permitted in s. 440.34. The parties need not submit any

26  information or documentation in support of the settlement,

27  except as needed to justify the amount of the attorney's fees.

28  Neither the employer nor the carrier is responsible for any

29  attorney's fees relating to the settlement and release of

30  claims under this section. Payment of the lump-sum settlement

31  amount must be made within 14 days after the date the judge of

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  1  compensation claims mails the order approving the attorney's

  2  fees. Any order entered by a judge of compensation claims

  3  approving the attorney's fees as set out in the settlement

  4  under this subsection is not considered to be an award and is

  5  not subject to modification or review. The judge of

  6  compensation claims shall report these settlements to the

  7  Deputy Chief Judge in accordance with the requirements set

  8  forth in paragraphs (a) and (b). Settlements entered into

  9  under this subsection are valid and apply to all dates of

10  accident.

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

12  440.25, Florida Statutes, are amended to read:

13         440.25  Procedures for mediation and hearings.--

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

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

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

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

18  interested parties by order that a mediation conference

19  concerning such petition will be held unless the parties have

20  notified the Office of the Judges of Compensation Claims that

21  a mediation has been held. Such order notice shall give the

22  date by which, time, and location of the mediation conference

23  must be held. Such order notice may be served personally upon

24  the interested parties or may be sent to the interested

25  parties by mail. Continuances may be granted only if the

26  requesting party demonstrates to the judge of compensation

27  claims that the reason for requesting the continuance arises

28  from circumstances beyond the party's control. Any order

29  granting a continuance must set forth the date of the

30  rescheduled mediation conference. A mediation conference may

31  not be used solely for the purpose of mediating attorney's

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  1  fees. The claimant or the adjuster of the employer or carrier

  2  may, at the mediator's discretion, attend the mediation

  3  conference by telephone or, if agreed to by the parties, other

  4  electronic means.

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

  6  informally and shall does not require the use of formal rules

  7  of evidence or procedure. Any information from the files,

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

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

10  mediation conference under this section obtained by any person

11  performing mediation duties is privileged and confidential and

12  may not be disclosed without the written consent of all

13  parties to the conference. Any research or evaluation effort

14  directed at assessing the mediation program activities or

15  performance must protect the confidentiality of such

16  information. Each party to a mediation conference has a

17  privilege during and after the conference to refuse to

18  disclose and to prevent another from disclosing communications

19  made during the conference whether or not the contested issues

20  are successfully resolved. This subsection and paragraphs

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

22  the discovery or admissibility of any information that is

23  otherwise subject to discovery or that is admissible under

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

25  or statements made during a mediation conference or in

26  negotiations concerning the conference are inadmissible in any

27  proceeding under this chapter.

28         (b)1.  Unless the parties conduct a private mediation

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

30  mediator selected by the Director of the Division of

31  Administrative Hearings from among the mediators shall select

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  1  a mediator. The mediator shall be employed on a full-time

  2  basis by the Office of the Judges of Compensation Claims. A

  3  mediator must be a member of The Florida Bar for at least 5

  4  years and must complete a mediation training program approved

  5  by the Director of the Division of Administrative Hearings.

  6  Adjunct mediators may be employed by the Office of the Judges

  7  of Compensation Claims on an as-needed basis and shall be

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

  9  of Administrative Hearings. An adjunct mediator must be

10  independent of all parties participating in the mediation

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

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

13  training program approved by the Director of the Division of

14  Administrative Hearings.  An adjunct mediator shall have

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

16  compensation claims in each district.

17         2.  In the event the parties agree or in the event no

18  mediators as provided under subparagraph 1. are available to

19  conduct the required mediation within the period specified in

20  this section, the parties shall hold a mediation conference at

21  the carrier's expense within the 90-day period set for

22  mediation. The mediation conference shall be conducted by a

23  mediator who is a member in good standing of The Florida Bar

24  with not less than 5 years' experience in the practice of law

25  in this state and who is certified under s. 44.106. If the

26  parties do not agree upon a mediator within 10 days after the

27  date of the order, the claimant shall notify the judge of

28  compensation claims in writing and the judge of compensation

29  claims shall appoint a mediator under this subparagraph within

30  7 days. In the event both parties agree, the results of the

31  mediation conference shall be binding and neither party shall

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  1  have a right to appeal the results. In the event either party

  2  refuses to agree to the results of the mediation conference,

  3  the results of the mediation conference as well as the

  4  testimony, witnesses, and evidence presented at the conference

  5  shall not be admissible at any subsequent proceeding on the

  6  claim. The mediator shall not be called in to testify or give

  7  deposition to resolve any claim for any hearing before the

  8  judge of compensation claims. The employer may be represented

  9  by an attorney at the mediation conference if the employee is

10  also represented by an attorney at the mediation conference.

11         (c)  The parties shall make a good faith effort to

12  complete the pretrial stipulations before the conclusion of

13  the mediation conference if the claims, except for attorney's

14  fees and costs, have not been settled and if any claims in any

15  filed petition remain unresolved.  The judge of compensation

16  claims may sanction a party or both parties for failure to

17  complete the pretrial stipulations before the conclusion of

18  the mediation conference.

19         (4)(a)  If the parties fail to submit written pretrial

20  stipulations at the mediation conference, on the 10th day

21  following commencement of mediation, the questions in dispute

22  have not been resolved, the judge of compensation claims shall

23  order hold a pretrial hearing to occur within 14 days after

24  the date of mediation ordered by the judge of compensation

25  claims. The judge of compensation claims shall give the

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

27  pretrial hearing by mail. At the pretrial hearing, the judge

28  of compensation claims shall, subject to paragraph (b), set a

29  date for the final hearing that allows the parties at least 60

30  30 days to conduct discovery unless the parties consent to an

31  earlier hearing date.

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

  2  within 90 45 days after the mediation conference is held

  3  pretrial hearing. Continuances may be granted only if the

  4  requesting party demonstrates to the judge of compensation

  5  claims that the reason for requesting the continuance arises

  6  from circumstances beyond the party's control.  Any order

  7  granting a continuance must set forth the date and time of the

  8  rescheduled hearing. If a judge of compensation claims grants

  9  two or more continuances to a requesting party, the judge of

10  compensation claims shall report such continuances to the

11  Deputy Chief Judge. The written consent of the claimant must

12  be obtained before any request from a claimant's attorney is

13  granted for an additional continuance after the initial

14  continuance has been granted.

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

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

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

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

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

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

21  unless otherwise agreed to between the parties and authorized

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

23  injury occurred. If the injury occurred outside without the

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

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

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

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

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

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

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

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

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

  2  merits of the disputed issues. The judge of compensation

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

  4  compensability is not disputed. Either party may request

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

  6  such hearing, the claimant and employer may each present

  7  evidence in respect of the claims presented by the petition

  8  for benefits such claim and may be represented by any attorney

  9  authorized in writing for such purpose. When there is a

10  conflict in the medical evidence submitted at the hearing, the

11  provisions of s. 440.13 shall apply. The report or testimony

12  of the expert medical advisor shall be made a part of the

13  record of the proceeding and shall be given the same

14  consideration by the judge of compensation claims as is

15  accorded other medical evidence submitted in the proceeding;

16  and all costs incurred in connection with such examination and

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

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

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

20  that is greater than the greatest permanent impairment rating

21  given the claimant by any examining or treating physician,

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

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

24  at the time of the final hearing is waived.

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

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

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

28  the order need not include any other reason or justification

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

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

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

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

  2  each, with the date of mailing noted thereon.

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

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

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

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

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

  8  the Division of Administrative Hearings and shall contain the

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

10  involved and a brief explanation by the judge of compensation

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

12  order.

13         (g)  Notwithstanding any other provision of this

14  section, the judge of compensation claims may require the

15  appearance of the parties and counsel before her or him

16  without written notice for an emergency conference where there

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

18  welfare of an employee. An emergency conference under this

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

20  of an adjudication by the judge of compensation claims.

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

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

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

24  the resolution of appropriate motions by judges of

25  compensation claims without oral hearing upon submission of

26  brief written statements in support and opposition, and for

27  expedited discovery and docketing. Unless the judge of

28  compensation claims orders a hearing under paragraph (i),

29  claims related to the determination of pay under s. 440.14

30  shall be resolved under this paragraph.

31

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  1         (i)  To further expedite dispute resolution and to

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

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

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

  5  compelling evidence to the contrary, be presumed to be

  6  appropriate for expedited resolution under this paragraph; and

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

  8  written agreement of both parties and application by either

  9  party, may similarly be resolved under this paragraph. Claims

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

11  for medical mileage reimbursement shall, in the absence of

12  compelling evidence to the contrary, be resolved through the

13  expedited dispute resolution process under this paragraph. For

14  purposes of expedited resolution pursuant to this paragraph,

15  the Deputy Chief Judge shall make provision by rule or order

16  for expedited and limited discovery and expedited docketing in

17  such cases. At least 15 days prior to hearing, the parties

18  shall exchange and file with the judge of compensation claims

19  a pretrial outline of all issues, defenses, and witnesses on a

20  form adopted by the Deputy Chief Judge; provided, in no event

21  shall such hearing be held without 15 days' written notice to

22  all parties. No pretrial hearing shall be held. The judge of

23  compensation claims shall limit all argument and presentation

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

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

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

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

28  qualified representative. The employer or carrier and any

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

30  evidence shall be liberally construed in favor of allowing

31  introduction of evidence.

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  1         (j)  A judge of compensation claims, either upon the

  2  motion of a party or its own motion, may dismiss a petition

  3  for lack of prosecution if no petitions, responses, motions,

  4  orders, requests for hearings, or notices of deposition have

  5  been filed for a period of 12 months, unless good cause is

  6  shown. Dismissals for lack of prosecution are without

  7  prejudice and do not require a hearing.

  8         (k)  Regardless of the date benefits were initially

  9  requested, attorney's fees do not attach under this subsection

10  until 30 days after the date the carrier or employer, if

11  self-insured, receives the petition.

12         Section 21.  Effective July 1, 2002, section 440.271,

13  Florida Statutes, is amended to read:

14         440.271  Appeal of order of judge of compensation

15  claims.--

16         (1)  Review of any order of a judge of compensation

17  claims entered pursuant to this chapter shall be by appeal to

18  the district court of appeal, First District.  Appeals shall

19  be filed in accordance with rules of procedure prescribed by

20  the Supreme Court for review of such orders.  The division

21  shall be given notice of any proceedings pertaining to s.

22  440.25, regarding indigency, or s. 440.49, regarding the

23  Special Disability Trust Fund, and shall have the right to

24  intervene in any proceedings.

25         (2)  The parties shall hold a mediation conference at

26  the carrier's expense within 60 days after the filing of the

27  notice of appeal of a final order from a judge of compensation

28  claims.  The mediation conference shall be conducted by a

29  mediator with experience in appellate mediation or who is

30  certified under s. 44.106.  The appellate proceeding and the

31

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  1  preparation of the record shall be stayed until the completion

  2  of the mediation conference required by this section.

  3         (3)  The parties and their counsel may, at the

  4  mediator's discretion, attend the mediation conference by

  5  telephone or, if agreed to by the parties, other electronic

  6  means.  A continuance may be granted only if the requesting

  7  party demonstrates to the judge that the reason for the

  8  continuance arises from circumstances beyond the party's

  9  control.  Any continuance must set forth the date of the

10  rescheduled mediation conference, and must be rescheduled to

11  be completed within 90 days after the filing of the notice of

12  appeal.  Mediation conferences under this section may not be

13  used solely for the purpose of mediating attorney's fees.

14         (4)  Such appellate mediation conferences shall be

15  conducted informally and shall not require the use of formal

16  rules of evidence or procedure.  Any information from the

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

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 shall not be

30  construed to prevent or inhibit the discovery or admissibility

31  of any information that is otherwise subject to discovery or

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  1  that is admissible under applicable law or rules of procedure,

  2  except that any conduct or statements made during a mediation

  3  conference or in negotiations concerning the conference are

  4  inadmissible in any proceeding under this chapter.

  5         (5)  If the issues which are the subject of the appeal

  6  are not resolved by the parties, the appellant shall notify

  7  the judge of compensation claims that the appeal needs to

  8  proceed forward and the record on appeal needs to be prepared.

  9         Section 22.  Subsection (4) of section 440.29, Florida

10  Statutes, is amended to read:

11         440.29  Procedure before the judge of compensation

12  claims.--

13         (4)  All medical reports of authorized treating health

14  care providers or independent medical examiners whose medical

15  opinion is submitted under s. 440.13(5)(e) relating to the

16  claimant and subject accident shall be received into evidence

17  by the judge of compensation claims upon proper motion.

18  However, such records must be served on the opposing party at

19  least 30 days before the final hearing. This section does not

20  limit any right of further discovery, including, but not

21  limited to, depositions.

22         Section 23.  Subsections (1) and (3) of section 440.34,

23  Florida Statutes, are amended, and subsection (7) is added to

24  said section, to read:

25         440.34  Attorney's fees; costs.--

26         (1)  A fee, gratuity, or other consideration may not be

27  paid for services rendered for a claimant in connection with

28  any proceedings arising under this chapter, unless approved as

29  reasonable by the judge of compensation claims or court having

30  jurisdiction over such proceedings. Except as provided by this

31  subsection, any attorney's fee approved by a judge of

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  1  compensation claims for services rendered to a claimant shall

  2  be must equal to 25 20 percent of the first $10,000 $5,000 of

  3  the amount of the benefits secured, 20 15 percent of the next

  4  $10,000 $5,000 of the amount of the benefits secured, 15 10

  5  percent of the remaining amount of the benefits secured to be

  6  provided during the first 10 years after the date the claim is

  7  filed, and 5 percent of the benefits secured after 10 years.

  8  The judge of compensation claims shall not approve a

  9  compensation order, a joint stipulation for a lump-sum

10  settlement, a stipulation or agreement between a claimant and

11  his or her attorney, or any other agreement related to

12  benefits under this chapter that provides for an attorney's

13  fee in excess of the amount permitted by this section.

14  However, the judge of compensation claims shall consider the

15  following factors in each case and may increase or decrease

16  the attorney's fee if, in her or his judgment, the

17  circumstances of the particular case warrant such action:

18         (a)  The time and labor required, the novelty and

19  difficulty of the questions involved, and the skill requisite

20  to perform the legal service properly.

21         (b)  The fee customarily charged in the locality for

22  similar legal services.

23         (c)  The amount involved in the controversy and the

24  benefits resulting to the claimant.

25         (d)  The time limitation imposed by the claimant or the

26  circumstances.

27         (e)  The experience, reputation, and ability of the

28  lawyer or lawyers performing services.

29         (f)  The contingency or certainty of a fee.

30         (3)  If any party the claimant should prevail in any

31  proceedings before a judge of compensation claims or court,

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  1  there shall be taxed against the nonprevailing party employer

  2  the reasonable costs of such proceedings, not to include the

  3  attorney's fees of the claimant. A claimant shall be

  4  responsible for the payment of her or his own attorney's fees,

  5  except that a claimant shall be entitled to recover a

  6  reasonable attorney's fee from a carrier or employer:

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

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

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

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

11  benefits, arising out of the same accident; or

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

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

14  Judges of Compensation Claims and the injured person has

15  employed an attorney in the successful prosecution of the

16  petition claim; or

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

18  denies that an accident injury occurred for which compensation

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

20  of compensability; or

21         (d)  In cases where the claimant successfully prevails

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

23

24  Regardless of the date benefits were initially requested,

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

26  30 days after the date the carrier or employer, if

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

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

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

30  only consider only such benefits and the time reasonably spent

31

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

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

  3         (7)  As to any settlement under s. 440.20(11)(c), the

  4  judge of compensation claims may approve an attorney's fee not

  5  to exceed 15 percent of the settlement amount.

  6         Section 24.  Section 440.345, Florida Statutes, is

  7  amended to read:

  8         440.345  Reporting of attorney's fees.--All fees paid

  9  to attorneys for services rendered under this chapter shall be

10  reported to the Office of the Judges of Compensation Claims as

11  the Division of Administrative Hearings Office of the Judges

12  of Compensation Claims requires by rule. The Office of the

13  Judges of Compensation Claims shall annually summarize such

14  data in a report to the Workers' Compensation Oversight Board.

15         Section 25.  Subsections (2), (3), and (6) of section

16  440.381, Florida Statutes, are amended to read:

17         440.381  Application for coverage; reporting payroll;

18  payroll audit procedures; penalties.--

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

20  filing of an application containing false, misleading, or

21  incomplete information with the purpose of avoiding or

22  reducing the amount of premiums for workers' compensation

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

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

25  application must contain a sworn statement by the employer

26  attesting to the accuracy of the information submitted and

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

28  application must contain a sworn statement by the agent

29  attesting that the agent explained to the employer or officer

30  the classification codes that are used for premium

31  calculations.

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

  2  Labor and Employment Security shall establish by rule minimum

  3  requirements for audits of payroll and classifications in

  4  order to ensure that the appropriate premium is charged for

  5  workers' compensation coverage. The rules shall ensure that

  6  audits performed by both carriers and employers are adequate

  7  to provide that all sources of payments to employees,

  8  subcontractors, and independent contractors have been reviewed

  9  and that the accuracy of classification of employees has been

10  verified. The rules shall provide that employers in all

11  classes other than the construction class be audited not less

12  frequently than biennially and may provide for more frequent

13  audits of employers in specified classifications based on

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

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

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

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

18  annually. The annual audits required for construction classes

19  shall consist of physical onsite audits. Failure by the

20  carrier to comply with these auditing requirements shall be a

21  violation of the Insurance Code, as provided in s. 624.4211,

22  and shall result in a fine of at least $1,000 for each

23  instance of noncompliance. Payroll verification audit rules

24  must include, but need not be limited to, the use of state and

25  federal reports of employee income, payroll and other

26  accounting records, certificates of insurance maintained by

27  subcontractors, and duties of employees. At the completion of

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

29  auditor must print and sign their names on the audit document

30  and provide proof of identification to the audit document.

31

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  1         (6)  If an employer intentionally understates or

  2  conceals payroll, or misrepresents or conceals employee duties

  3  so as to avoid proper classification for premium calculations,

  4  or misrepresents or conceals information pertinent to the

  5  computation and application of an experience rating

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

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

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

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

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

11  this state.

12         Section 26.  Section 440.40, Florida Statutes, is

13  amended to read:

14         440.40  Compensation notice.--Every employer who has

15  secured compensation under the provisions of this chapter

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

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

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

19  division, the following:

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

21  the payment of compensation in accordance with the provisions

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

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

24  secured payment of compensation and the date of the expiration

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

26  the notices and require carriers to provide the notices to

27  policyholders.

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

29  Program:  Rewards of up to $25,000 may be paid to persons

30  providing information to the Department of Insurance leading

31  to the arrest and conviction of persons committing insurance

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  1  fraud, including employers who illegally fail to obtain

  2  workers' compensation coverage. Persons may report suspected

  3  fraud to the department at (phone number). A person is not

  4  subject to civil liability for furnishing such information if

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

  6         Section 27.  Paragraph (a) of subsection (1) of section

  7  440.45, Florida Statutes, is amended to read:

  8         440.45  Office of the Judges of Compensation Claims.--

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

10  Compensation Claims within the Department of Management

11  Services. The Office of the Judges of Compensation Claims

12  shall be headed by the Deputy Chief Judge of Compensation

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

14  the Division of Administrative Hearings. The Deputy Chief

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

16  from a list of three names submitted by the statewide

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

18  Chief Judge must demonstrate prior administrative experience

19  and possess the same qualifications for appointment as a judge

20  of compensation claims, and the procedure for reappointment of

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

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

23  separate budget entity and the director of the Division of

24  Administrative Hearings shall be its agency head for all

25  purposes, including, but not limited to, rulemaking and

26  establishing agency policies and procedures. The Department of

27  Management Services shall provide administrative support and

28  service to the office to the extent requested by the director

29  of the Division of Administrative Hearings but shall not

30  direct, supervise, or control the Office of the Judges of

31  Compensation Claims in any manner, including, but not limited

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  1  to, personnel, purchasing, budgetary matters, or property

  2  transactions. The operating budget of the Office of the Judges

  3  of Compensation Claims shall be paid out of the Workers'

  4  Compensation Administration Trust Fund established in s.

  5  440.50.

  6         Section 28.  Section 489.114, Florida Statutes, is

  7  amended to read:

  8         489.114  Evidence of workers' compensation

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

10  business organization, or qualifying agent engaged in the

11  business of contracting in this state and certified or

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

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

14  certificate of authority of the contractor, provide to the

15  Construction Industry Licensing Board, as provided by board

16  rule, evidence of workers' compensation coverage pursuant to

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

18  Compensation of the Department of Labor and Employment

19  Security receives notice of the cancellation of a policy of

20  workers' compensation insurance insuring a person or entity

21  governed by this section, the Division of Workers'

22  Compensation shall certify and identify all persons or

23  entities by certification or registration license number to

24  the department after verification is made by the Division of

25  Workers' Compensation that such cancellation has occurred or

26  that persons or entities governed by this section are no

27  longer covered by workers' compensation insurance.  Such

28  certification and verification by the Division of Workers'

29  Compensation may shall result solely from records furnished to

30  the Division of Workers' Compensation by the persons or

31  entities governed by this section or an investigation

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  1  completed by the Division of Workers' Compensation. The

  2  department shall notify the persons or entities governed by

  3  this section who have been determined to be in noncompliance

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

  5  provide certification of compliance with chapter 440 to the

  6  department and pay an administrative fine in the amount of

  7  $500 as provided by rule.  The failure to maintain workers'

  8  compensation coverage as required by law shall be grounds for

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

10  of a certificate, registration, or certificate of authority of

11  the contractor under the provisions of s. 489.129.

12         Section 29.  Section 489.510, Florida Statutes, is

13  amended to read:

14         489.510  Evidence of workers' compensation

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

16  business organization, or qualifying agent engaged in the

17  business of contracting in this state and certified or

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

19  the issuance or renewal of a certificate or registration of

20  the contractor, provide to the Electrical Contractors'

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

22  workers' compensation coverage pursuant to chapter 440.  In

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

24  Department of Labor and Employment Security receives notice of

25  the cancellation of a policy of workers' compensation

26  insurance insuring a person or entity governed by this

27  section, the Division of Workers' Compensation shall certify

28  and identify all persons or entities by certification or

29  registration license number to the department after

30  verification is made by the Division of Workers' Compensation

31  that such cancellation has occurred or that persons or

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  1  entities governed by this section are no longer covered by

  2  workers' compensation insurance.  Such certification and

  3  verification by the Division of Workers' Compensation may

  4  shall result solely from records furnished to the Division of

  5  Workers' Compensation by the persons or entities governed by

  6  this section or an investigation completed by the Division of

  7  Workers' Compensation. The department shall notify the persons

  8  or entities governed by this section who have been determined

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

10  entities notified shall provide certification of compliance

11  with chapter 440 to the department and pay an administrative

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

13  maintain workers' compensation coverage as required by law

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

15  issuance or renewal of a certificate or registration of the

16  contractor under the provisions of s. 489.533.

17         Section 30.  Subsection (2) of section 626.9892,

18  Florida Statutes, is amended to read:

19         626.9892  Anti-Fraud Reward Program; reporting of

20  insurance fraud.--

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

22  persons providing information leading to the arrest and

23  conviction of persons committing complex or organized crimes

24  investigated by the Division of Insurance Fraud arising from

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

26  or s. 817.234.

27         Section 31.  The amendment to s. 440.271, Florida

28  Statutes, shall apply to all appeals filed on or after July 1,

29  2002.

30         Section 32.  The Department of Insurance, in

31  consultation with the board of governors of the joint

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  1  underwriting association authorized under s. 627.311, Florida

  2  Statutes, shall conduct a study to evaluate the availability

  3  and affordability of workers' compensation insurance coverage

  4  for persons engaged primarily in the construction industry.

  5  The scope of the study shall include a review of workers'

  6  compensation insurance currently provided or required in other

  7  states and possible alternative coverages. The department

  8  shall submit a report with recommendations to the President of

  9  the Senate and the Speaker of the House of Representatives on

10  or before February 1, 2003.

11         Section 33.  The amendments to ss. 440.02 and 440.15,

12  Florida Statutes, in this act shall not be construed to affect

13  any determination of disability under s. 112.18, s. 112.181,

14  or s. 112.19, Florida Statutes.

15         Section 34.  If any provision of this act or its

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

17  invalidity shall not affect other provisions or applications

18  of the act which can be given effect without the invalid

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

20  this act are declared severable.

21         Section 35.  Except as otherwise provided herein, this

22  act shall take effect January 1, 2003.

23

24

25

26

27

28

29

30

31

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