SENATE AMENDMENT

    Bill No. CS for CS for SB 2340

    Amendment No. ___   Barcode 904236

                            CHAMBER ACTION
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11  Senator Clary moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 112, line 24, through

15            page 133, line 4,  delete those lines

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17  and insert:

18         Section 41.  Subsections (3) and (7) of section

19  440.381, Florida Statutes, are amended to read:

20         440.381  Application for coverage; reporting payroll;

21  payroll audit procedures; penalties.--

22         (3)  The department of Insurance and the Department of

23  Labor and Employment Security shall establish by rule minimum

24  requirements for audits of payroll and classifications in

25  order to ensure that the appropriate premium is charged for

26  workers' compensation coverage. The rules shall ensure that

27  audits performed by both carriers and employers are adequate

28  to provide that all sources of payments to employees,

29  subcontractors, and independent contractors have been reviewed

30  and that the accuracy of classification of employees has been

31  verified. The rules shall provide that employers in all

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB 2340

    Amendment No. ___   Barcode 904236





  1  classes other than the construction class be audited not less

  2  frequently than biennially and may provide for more frequent

  3  audits of employers in specified classifications based on

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

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

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

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

  8  annually. The annual audits required for construction classes

  9  shall consist of physical onsite audits. Payroll verification

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

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

12  other accounting records, certificates of insurance maintained

13  by subcontractors, and duties of employees.

14         (7)  If an employee suffering a compensable injury was

15  not reported as earning wages on the last quarterly earnings

16  report filed with the Division of Unemployment Compensation

17  before the accident, the employer shall indemnify the carrier

18  for all workers' compensation benefits paid to or on behalf of

19  the employee unless the employer establishes that the employee

20  was hired after the filing of the quarterly report, in which

21  case the employer and employee shall attest to the fact that

22  the employee was employed by the employer at the time of the

23  injury. It shall be the responsibility of the Division of

24  Workers' Compensation to collect all necessary data so as to

25  enable it to notify the carrier of the name of an injured

26  worker who was not reported as earning wages on the last

27  quarterly earnings report. The division is hereby authorized

28  to release such records to the carrier which will enable the

29  carrier to seek reimbursement as provided under this

30  subsection. Failure of the employer to indemnify the insurer

31  within 21 days after demand by the insurer shall constitute

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB 2340

    Amendment No. ___   Barcode 904236





  1  grounds for the insurer to immediately cancel coverage.  Any

  2  action for indemnification brought by the carrier shall be

  3  cognizable in the circuit court having jurisdiction where the

  4  employer or carrier resides or transacts business.  The

  5  insurer shall be entitled to a reasonable attorney's fee if it

  6  recovers any portion of the benefits paid in such action.

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  8  (Redesignate subsequent sections.)

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

12  And the title is amended as follows:

13         On page 4, lines 10-17, delete those lines

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15  and insert:

16         provisions to changes made by the act; amending

17         s. 440.381, F.S., relating to audits of payroll

18         and classifications; conforming

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