HB 1409 2003
1	A bill to be entitled
2	An act relating to workers' compensation; amending s.
3	440.02, F.S.; redefining the term "employee" for purposes
4	of the Workers' Compensation Law; removing provisions
5	authorizing certain officers of a corporation to elect to
6	be exempt from ch. 440, F.S.; redefining the term
7	"employment"; deleting an exception provided for
8	professional athletes; redefining the term "wages";
9	amending s. 440.05, F.S.; providing a procedure under
10	which an officer of a corporation or partner to a
11	partnership may elect to be exempt from ch. 440, F.S.;
12	providing certain exceptions; revising requirements for
13	notice; specifying a date after which an officer or
14	partner may not elect to be exempt from ch. 440, F.S.;
15	amending s. 440.092, F.S.; deleting a requirement that
16	certain compensable activities produce a direct benefit to
17	the employer; amending s. 440.10, F.S.; providing for
18	mandatory penalties to be assessed against an employer who
19	fails to secure compensation as required by ch. 440, F.S.;
20	amending s. 440.11, F.S.; providing for the exclusive
21	liability of a carrier or self-insured employer; amending
22	s. 440.13, F.S.; including a licensed psychologist and
23	licensed acupuncturist within the definition of the terms
24	"physician" and "doctor"; deleting a mandatory requirement
25	for certification; providing for an employer or carrier to
26	allow an employee to select medical providers; revising
27	requirements for requesting treatment or care; providing
28	requirements for transfer of care; providing notice
29	requirements for access to medical records; revising
30	requirements for independent medical examinations;
31	requiring that a health care provider file a petition in
32	order to contest the disallowance or adjustment of payment
33	by a carrier; providing for the medical provider to
34	recover costs and attorney's fees; revising requirements
35	for determining reimbursement amounts; restricting a
36	health care provider's right to recover payment for
37	medical fees; requiring that a provider file a petition in
38	order to recover such payments; providing for costs and
39	attorney's fees; amending s. 440.134, F.S.; revising
40	requirements for managed care arrangements; revising
41	requirements for medical benefits; amending s. 440.15,
42	F.S.; revising the requirements for paying impairment
43	benefits and supplemental benefits; prohibiting an
44	employee from receiving supplemental benefits and
45	impairment benefits; amending s. 440.16, F.S.; increasing
46	the limits on the amount of certain benefits paid as
47	compensation for death; amending s. 440.185, F.S.;
48	providing a penalty for failure of an employer to notify
49	the carrier of an injury; amending s. 440.19, F.S.;
50	increasing the period of limitation on filing a petition
51	for benefits; amending s. 440.20, F.S.; requiring the
52	Department of Insurance to adopt by rule forms for
53	settlement agreements; amending s. 440.205, F.S.;
54	authorizing a civil suit for damages against an employer
55	who unlawfully coerces an employee for a valid claim for
56	compensation; providing that a carrier who engages in
57	unlawful conduct is subject to civil suit; amending s.
58	440.25, F.S.; revising procedures for mediations and
59	hearings; amending s. 440.29, F.S.; providing for the
60	practice and procedure of compensation claims to be
61	governed by rules of the Supreme Court; amending s.
62	440.45, F.S.; providing additional qualifications for
63	members of the statewide nominating commission for judges
64	of compensation claims; removing a requirement that the
65	Office of the Judges of Compensation Claims adopt
66	procedural rules; amending s. 627.041, F.S.; revising the
67	Ratings Law to include within regulated rating
68	organizations those organizations that make and file
69	prospective loss costs; amending s. 627.091, F.S.;
70	providing definitions; providing for licensed rating
71	organizations to file prospective loss costs, loss data,
72	and other information with the Department of Insurance for
73	approval; amending s. 627.096, F.S.; providing that the
74	data, statistics, schedules, and other information
75	submitted to the Workers' Compensation Rating Bureau are
76	subject to public disclosure under public records
77	requirements; amending s. 627.101, F.S.; providing
78	requirements for the review and approval of prospective
79	loss costs filings; amending s. 627.211, F.S.; providing
80	for changes in premiums based on loss adjustment expenses;
81	providing for severability; providing an effective date.
82
83	Be It Enacted by the Legislature of the State of Florida:
84
85	Section 1. Subsections (15), (17), and (28) of section
86	440.02, Florida Statutes, are amended to read:
87	440.02 Definitions.--When used in this chapter, unless the
88	context clearly requires otherwise, the following terms shall
89	have the following meanings:
90	(15)(a) "Employee" means any person engaged in any
91	employment under any appointment or contract of hire or
92	apprenticeship, express or implied, oral or written, whether
93	lawfully or unlawfully employed, and includes, but is not
94	limited to, aliens and minors.
95	(b) Except as provided in s. 440.05, "employee" means
96	includesany person who is an officer of a corporation and who
97	performs services for remuneration for such corporation within
98	this state, whether or not such services are continuous.
99	1. Any officer of a corporation may elect to be exempt
100	from this chapter by filing written notice of the election with
101	the department as provided in s. 440.05.
102	2. As to officers of a corporation who are actively
103	engaged in the construction industry, no more than three
104	officers may elect to be exempt from this chapter by filing
105	written notice of the election with the department as provided
106	in s. 440.05. However, any exemption obtained by a corporate
107	officer of a corporation actively engaged in the construction
108	industry is not applicable with respect to any commercial
109	building project estimated to be valued at $250,000 or greater.
110	3. An officer of a corporation who elects to be exempt
111	from this chapter by filing a written notice of the election
112	with the department as provided in s. 440.05 is not an employee.
113
114	Services are presumed to have been rendered to the corporation
115	if the officer is compensated by other than dividends upon
116	shares of stock of the corporation which the officer owns.
117	(c)1.Except as provided in s. 440.05, "employee" means
118	includesa sole proprietor or a partner who devotes full time to
119	the proprietorship or partnership.and, except as provided in
120	this paragraph, elects to be included in the definition of
121	employee by filing notice thereof as provided in s. 440.05.
122	Partners or sole proprietors actively engaged in the
123	construction industry are considered employees unless they elect
124	to be excluded from the definition of employee by filing written
125	notice of the election with the department as provided in s.
126	440.05. However, no more than three partners in a partnership
127	that is actively engaged in the construction industry may elect
128	to be excluded. A sole proprietor or partner who is actively
129	engaged in the construction industry and who elects to be exempt
130	from this chapter by filing a written notice of the election
131	with the department as provided in s. 440.05 is not an employee.
132	For purposes of this chapter, an independent contractor is an
133	employee unless he or she meets all of the conditions set forth
134	in subparagraph (d)1.
135	2. Notwithstanding the provisions of subparagraph 1., the
136	term "employee" includes a sole proprietor or partner actively
137	engaged in the construction industry with respect to any
138	commercial building project estimated to be valued at $250,000
139	or greater. Any exemption obtained is not applicable, with
140	respect to work performed at such a commercial building project.
141	(d) "Employee" does not include:
142	1. An independent contractor, except that an independent
143	contractor is an employee for purposes of this chapter unless he
144	or she substantially meets all of the following criteriaif:
145	a. The independent contractor maintains a separate
146	business with his or her own work facility, truck, equipment,
147	materials, or similar accommodations;
148	b. The independent contractor holds or has applied for a
149	federal employer identification number, unless the independent
150	contractor is a sole proprietor who is not required to obtain a
151	federal employer identification number under state or federal
152	requirements;
153	c. The independent contractor performs or agrees to
154	perform specific services or work for specific amounts of money
155	and controls the means of performing the services or work;
156	d. The independent contractor incurs the principal
157	expenses related to the service or work that he or she performs
158	or agrees to perform;
159	e. The independent contractor is responsible for the
160	satisfactory completion of work or services that he or she
161	performs or agrees to perform and is or could be held liable for
162	a failure to complete the work or services;
163	f. The independent contractor receives compensation for
164	work or services performed for a commission or on a per-job or
165	competitive-bid basis and not on any other basis;
166	g. The independent contractor may realize a profit or
167	suffer a loss in connection with performing work or services;
168	h. The independent contractor has continuing or recurring
169	business liabilities or obligations; and
170	i. The success or failure of the independent contractor's
171	business depends on the relationship of business receipts to
172	expenditures.
173
174	However, the determination as to whether an individual included
175	in the Standard Industrial Classification Manual of 1987,
176	Industry Numbers 0711, 0721, 0722, 0751, 0761, 0762, 0781, 0782,
177	0783, 0811, 0831, 0851, 2411, 2421, 2435, 2436, 2448, or 2449,
178	or a newspaper delivery person, is an independent contractor is
179	governed not by the criteria in this paragraph but by common-law
180	principles, giving due consideration to the business activity of
181	the individual. Notwithstanding the provisions of this paragraph
182	or any other provision of this chapter, with respect to any
183	commercial building project estimated to be valued at $250,000
184	or greater, a person who is actively engaged in the construction
185	industry is not an independent contractor and is either an
186	employer or an employee who may not be exempt from the coverage
187	requirements of this chapter.
188	2. A real estate salesperson or agent, if that person
189	agrees, in writing, to perform for remuneration solely by way of
190	commission.
191	3. Bands, orchestras, and musical and theatrical
192	performers, including disk jockeys, performing in licensed
193	premises as defined in chapter 562, if a written contract
194	evidencing an independent contractor relationship is entered
195	into before the commencement of such entertainment.
196	4. An owner-operator of a motor vehicle who transports
197	property under a written contract with a motor carrier which
198	evidences a relationship by which the owner-operator assumes the
199	responsibility of an employer for the performance of the
200	contract, if the owner-operator is required to furnish the
201	necessary motor vehicle equipment and all costs incidental to
202	the performance of the contract, including, but not limited to,
203	fuel, taxes, licenses, repairs, and hired help; and the owner-
204	operator is paid a commission for transportation service and is
205	not paid by the hour or on some other time-measured basis.
206	5. A person whose employment is both casual and not in the
207	course of the trade, business, profession, or occupation of the
208	employer.
209	2.6.A volunteer, except a volunteer worker for the state
210	or a county, municipality, or other governmental entity. A
211	person who does not receive monetary remuneration for services
212	is presumed to be a volunteer unless there is substantial
213	evidence that a valuable consideration was intended by both
214	employer and employee. For purposes of this chapter, the term
215	"volunteer" includes, but is not limited to:
216	a. Persons who serve in private nonprofit agencies and who
217	receive no compensation other than expenses in an amount less
218	than or equivalent to the standard mileage and per diem expenses
219	provided to salaried employees in the same agency or, if such
220	agency does not have salaried employees who receive mileage and
221	per diem, then such volunteers who receive no compensation other
222	than expenses in an amount less than orequivalent to the
223	customary mileage and per diem paid to salaried workers in the
224	community as determined by the department; and
225	b. Volunteers participating in federal programs
226	established under Pub. L. No. 93-113.
227	3.7. Any sole proprietor, partner, orofficer of a
228	corporation who, pursuant to s. 440.05, is entitled to and
229	elects to be exempt from this chapter.
230	8. A sole proprietor or officer of a corporation who
231	actively engages in the construction industry, and a partner in
232	a partnership that is actively engaged in the construction
233	industry, who elects to be exempt from the provisions of this
234	chapter. Such sole proprietor, officer, or partner is not an
235	employee for any reason until the notice of revocation of
236	election filed pursuant to s. 440.05 is effective.
237	9. An exercise rider who does not work for a single horse
238	farm or breeder, and who is compensated for riding on a case-by-
239	case basis, provided a written contract is entered into prior to
240	the commencement of such activity which evidences that an
241	employee/employer relationship does not exist.
242	10. A taxicab, limousine, or other passenger vehicle-for-
243	hire driver who operates said vehicles pursuant to a written
244	agreement with a company which provides any dispatch, marketing,
245	insurance, communications, or other services under which the
246	driver and any fees or charges paid by the driver to the company
247	for such services are not conditioned upon, or expressed as a
248	proportion of, fare revenues.
249	4.11.A person who performs services as a sports official
250	for an entity sponsoring an interscholastic sports event or for
251	a public entity or private, nonprofit organization that sponsors
252	an amateur sports event. For purposes of this subparagraph,
253	such a person is an independent contractor. For purposes of this
254	subparagraph, the term "sports official" means any person who is
255	a neutral participant in a sports event, including, but not
256	limited to, umpires, referees, judges, linespersons,
257	scorekeepers, or timekeepers. This subparagraph does not apply
258	to any person employed by a district school board who serves as
259	a sports official as required by the employing school board or
260	who serves as a sports official as part of his or her
261	responsibilities during normal school hours.
262	(17)(a) "Employment," subject to the other provisions of
263	this chapter, means any service performed by an employee for the
264	person employing him or her.
265	(b) "Employment" includes:
266	1. Employment by the state and all political subdivisions
267	thereof and all public and quasi-public corporations therein,
268	including officers elected at the polls.
269	2. Subject to s. 440.05,all private employments in which
270	four or more employees are employed by the same employer or,
271	with respect to the construction industry, all private
272	employment in which one or more employees are employed by the
273	same employer. In a private employment wherein the employer
274	employs employees through an employee leasing company, the
275	effective date of employment is the date the employee begins
276	performing work for the employer and not the date that the
277	employee appears on an employee list maintained by the leasing
278	company.
279	3. Volunteer firefighters responding to or assisting with
280	fire or medical emergencies whether or not the firefighters are
281	on duty.
282	(c) "Employment" does not include service performed by or
283	as:
284	1. Domestic servants in private homes.
285	2. Agricultural labor performed on a farm in the employ of
286	a bona fide farmer, or association of farmers, that employs 5 or
287	fewer regular employees and that employs fewer than 12 other
288	employees at one time for seasonal agricultural labor that is
289	completed in less than 30 days, provided such seasonal
290	employment does not exceed 45 days in the same calendar year.
291	The term "farm" includes stock, dairy, poultry, fruit, fur-
292	bearing animals, fish, and truck farms, ranches, nurseries, and
293	orchards. The term "agricultural labor" includes field foremen,
294	timekeepers, checkers, and other farm labor supervisory
295	personnel.
296	3. Professional athletes, such as professional boxers,
297	wrestlers, baseball, football, basketball, hockey, polo, tennis,
298	jai alai, and similar players, and motorsports teams competing
299	in a motor racing event as defined in s. 549.08.
300	3.4.Labor under a sentence of a court to perform
301	community services as provided in s. 316.193.
302	4.5.State prisoners or county inmates, except those
303	performing services for private employers or those enumerated in
304	s. 948.03(8)(a).
305	(28) "Wages" means the money rate at which the service
306	rendered is recompensed under the contract of hiring in force at
307	the time of the injury and includes only the wages earned and
308	reported for federal income tax purposes on the job where the
309	employee is injured and any other concurrent employment reported
310	for federal income tax purposeswhere he or she is also subject
311	to workers' compensation coverage and benefits, together with
312	the reasonable value of housing furnished to the employee by the
313	employer which is the permanent year-round residence of the
314	employee, andgratuities to the extent reported to the employer
315	in writing as taxable income received in the course of
316	employment from others than the employer,and employer
317	contributions for health insurance for the employee andorthe
318	employee's dependents. However, housing furnished to migrant
319	workers shall be included in wages unless provided after the
320	time of injury. In employment in which an employee receives
321	consideration for housing, the reasonable value of such housing
322	compensation shall be the actual cost to the employer or based
323	upon the Fair Market Rent Survey promulgated pursuant to s. 8 of
324	the Housing and Urban Development Act of 1974, whichever is
325	less. However, if employer contributions for housing or health
326	insurance are continued after the time of the injury, the
327	contributions are not "wages" for the purpose of calculating an
328	employee's average weekly wage.
329	Section 2. Section 440.05, Florida Statutes, is amended to
330	read:
331	440.05 Election of exemption; revocation of election;
332	notice; certification.--
333	(1) An officer of a corporation may elect to be exempt
334	from this chapter by filing written notice of the election with
335	the department as provided in this section. An officer of a
336	corporation who makes such election is not considered an
337	employee under this chapter. Not more than three officers of a
338	corporation actively engaged in the construction industry may
339	elect to be exempt from this chapter by filing written notice
340	with the department. An exemption obtained by a corporate
341	officer of a corporation actively engaged in the construction
342	industry is not applicable with respect to a commercial building
343	project estimated to be valued at $250,000 or more.
344	(2) A partner or sole proprietor may elect to be exempt
345	from this chapter by filing written notice of the election with
346	the department as provided in this section. A partner or sole
347	proprietor who makes such election is not considered an employee
348	under this chapter. Partners actively engaged in the
349	construction industry may not elect to have more than three
350	partners excluded from this chapter. An exemption obtained by a
351	partner or sole proprietor actively engaged in the construction
352	industry is not applicable with respect to a commercial building
353	project estimated to be valued at $250,000 or more.
354	(3) A corporate officer, partner, or sole proprietor may
355	revoke an election to be exempt from this chapter by mailing
356	notice of the exemption to the department in Tallahassee in
357	accordance with a form prescribed by the department.
358	(a) The department shall by rule prescribe forms and
359	procedures for filing an election of exemption, a revocation of
360	an election to be exempt, and a notice of coverage for employers
361	and for issuing certificates of the election of exemption. The
362	forms must be submitted to the department by each employer that
363	files for the election of exemption.
364	(1) Each corporate officer who elects not to accept the
365	provisions of this chapter or who, after electing such
366	exemption, revokes that exemption shall mail to the department
367	in Tallahassee notice to such effect in accordance with a form
368	to be prescribed by the department.
369	(2) Each sole proprietor or partner who elects to be
370	included in the definition of "employee" or who, after such
371	election, revokes that election must mail to the department in
372	Tallahassee notice to such effect, in accordance with a form to
373	be prescribed by the department.
374	(3) Each sole proprietor, partner, or officer of a
375	corporation who is actively engaged in the construction industry
376	and who elects an exemption from this chapter or who, after
377	electing such exemption, revokes that exemption, must mail a
378	written notice to such effect to the department on a form
379	prescribed by the department.The notice of election to be
380	exempt from the provisions of this chapter must be notarized and
381	under oath. The notice of election must clearly indicate the
382	following: "Any person who, knowingly and with intent to injure,
383	defraud, or deceive the department or any employer or employee,
384	insurance company, or purposes program, files a notice of
385	election to be exempt which contains any false or misleading
386	information commits a felony of the third degree."
387	(b) The notice of election to be exempt which is submitted
388	to the department by the sole proprietor, partner, or officer of
389	a corporationmust list the name, federal tax identification
390	number, social security number, all certified or registered
391	licenses issued pursuant to chapter 489 held by the person
392	seeking the exemption, a copy of relevant documentation as to
393	employment status filed with the Internal Revenue Service as
394	specified by the department, a copy of the relevant occupational
395	license in the primary jurisdiction of the business, and, for
396	corporate officers and partners, the registration number of the
397	corporation or partnership filed with the Division of
398	Corporations of the Department of State. The notice of election
399	to be exempt must identify each sole proprietorship,
400	partnership, or corporation that employs the person electing the
401	exemption and must list the social security number or federal
402	tax identification number of each such employer and the
403	additional documentation required by this section. In addition,
404	the notice of election to be exempt must provide that the sole
405	proprietor, partner, or officer electing an exemption is not
406	entitled to benefits under this chapter, must provide that the
407	election does not exceed exemption limits for officers and
408	partnerships provided in s. 440.02, and must certify that any
409	employees of the sole proprietor, partner, or officer electing
410	an exemption are covered by workers' compensation insurance.
411	Upon receipt of the notice of the election to be exempt, receipt
412	of all application fees, and a determination by the department
413	that the notice meets the requirements of this subsection, the
414	department shall issue a certification of the election to the
415	sole proprietor, partner, or officer, unless the department
416	determines that the information contained in the notice is
417	invalid. The department shall revoke a certificate of election
418	to be exempt from coverage upon a determination by the
419	department that the person does not meet the requirements for
420	exemption or that the information contained in the notice of
421	election to be exempt is invalid. The certificate of election
422	must list the names of the sole proprietorship, partnership, or
423	corporation listed in the request for exemption. A new
424	certificate of election must be obtained each time the person is
425	employed by a new sole proprietorship, partnership, or
426	corporation that is not listed on the certificate of election. A
427	copy of the certificate of election must be sent to each
428	workers' compensation carrier identified in the request for
429	exemption. Upon filing a notice of revocation of election, a
430	sole proprietor, partner, or officer who is a subcontractor must
431	notify her or his contractor. Upon revocation of a certificate
432	of election of exemption by the department, the department shall
433	notify the workers' compensation carriers identified in the
434	request for exemption.
435	(4) The notice of election to be exempt from the
436	provisions of this chapter must contain a notice that clearly
437	states in substance the following: "Any person who, knowingly
438	and with intent to injure, defraud, or deceive the department or
439	any employer or employee, insurance company, or purposes
440	program, files a notice of election to be exempt containing any
441	false or misleading information is guilty of a felony of the
442	third degree." Each person filing a notice of election to be
443	exempt shall personally sign the notice and attest that he or
444	she has reviewed, understands, and acknowledges the foregoing
445	notice.
446	(4)(5) A notice given under subsection (1) or,subsection
447	(2), or subsection (3)shall become effective when issued by the
448	department or 30 days after an application for an exemption is
449	received by the department, whichever occurs first. However, if
450	an accident or occupational disease occurs less than 30 days
451	after the effective date of the insurance policy under which the
452	payment of compensation is secured or the date the employer
453	qualified as a self-insurer, such notice is effective as of
454	12:01 a.m. of the day following the date it is mailed to the
455	department in Tallahassee.
456	(5)(6)A construction industry certificate of election to
457	be exempt which is issued in accordance with this section shall
458	be valid for 2 years after the effective date stated thereon.
459	Both the effective date and the expiration date must be listed
460	on the face of the certificate by the department. The
461	construction industry certificate must expire at midnight, 2
462	years from its issue date, as noted on the face of the exemption
463	certificate. Any person who has received from the division a
464	construction industry certificate of election to be exempt which
465	is in effect on December 31, 1998, shall file a new notice of
466	election to be exempt by the last day in his or her birth month
467	following December 1, 1998. A construction industry certificate
468	of election to be exempt may be revoked before its expiration by
469	the sole proprietor, partner, or officer for whom it was issued
470	or by the department for the reasons stated in this section. At
471	least 60 days prior to the expiration date of a construction
472	industry certificate of exemption issued after December 1, 1998,
473	the department shall send notice of the expiration date and an
474	application for renewal to the certificateholder at the address
475	on the certificate.
476	(6)(7)Any contractor responsible for compensation under
477	s. 440.10 may register in writing with the workers' compensation
478	carrier for any subcontractor and shall thereafter be entitled
479	to receive written notice from the carrier of any cancellation
480	or nonrenewal of the policy.
481	(7)(8)(a) The department must assess a fee of $50 with
482	each request for a construction industry certificate of election
483	to be exempt or renewal of election to be exempt under this
484	section.
485	(b) The funds collected by the department shall be used to
486	administer this section, to audit the businesses that pay the
487	fee for compliance with any requirements of this chapter, and to
488	enforce compliance with the provisions of this chapter.
489	(9) The department may by rule prescribe forms and
490	procedures for filing an election of exemption, revocation of
491	election to be exempt, and notice of election of coverage for
492	all employers and require specified forms to be submitted by all
493	employers in filing for the election of exemption. The
494	department may by rule prescribe forms and procedures for
495	issuing a certificate of the election of exemption.
496	(8)(10)Each sole proprietor, partner, or officer of a
497	corporation who is actively engaged in the construction industry
498	and who elects an exemption from this chapter shall maintain
499	business records as specified by the division by rule, which
500	rules must include the provision that any corporation with
501	exempt officers and any partnership actively engaged in the
502	construction industry with exempt partners must maintain written
503	statements of those exempted persons affirmatively acknowledging
504	each such individual's exempt status.
505	(9)(11)Any sole proprietor or partner actively engaged in
506	the construction industry claiming an exemption under this
507	section shall maintain a copy of his or her federal income tax
508	records for each of the immediately previous 3 years in which he
509	or she claims an exemption. Such federal income tax records must
510	include a complete copy of the following for each year in which
511	an exemption is claimed:
512	(a) For sole proprietors, a copy of Federal Income Tax
513	Form 1040 and its accompanying Schedule C;
514	(b) For partners, a copy of the partner's Federal Income
515	Tax Schedule K-1(Form 1065) and Federal Income Tax Form 1040 and
516	its accompanying Schedule E.
517
518	A sole proprietor or partner shall produce, upon request by the
519	division, a copy of those documents together with a statement by
520	the sole proprietor or partner that the tax records provided are
521	true and accurate copies of what the sole proprietor or partner
522	has filed with the federal Internal Revenue Service. The
523	statement must be signed under oath by the sole proprietor or
524	partner and must be notarized. The division shall issue a stop-
525	work order under s. 440.107(5) to any sole proprietor or partner
526	who fails or refuses to produce a copy of the tax records and
527	affidavit required under this paragraph to the division within 3
528	business days after the request is made.
529	(10)(12)For those sole proprietors or partners that have
530	not been in business long enough to provide the information
531	required of an established business, the division shall require
532	such sole proprietor or partner to provide copies of the most
533	recently filed Federal Income Tax Form 1040. The division shall
534	establish by rule such other criteria to show that the sole
535	proprietor or partner intends to engage in a legitimate
536	enterprise within the construction industry and is not otherwise
537	attempting to evade the requirements of this section. The
538	division shall establish by rule the form and format of
539	financial information required to be submitted by such
540	employers.
541	(11)(13)Any corporate officer claiming an exemption under
542	this section must be listed on the records of this state's
543	Secretary of State, Division of Corporations, as a corporate
544	officer. If the person who claims an exemption as a corporate
545	officer is not so listed on the records of the Secretary of
546	State, the individual must provide to the division, upon request
547	by the division, a notarized affidavit stating that the
548	individual is a bona fide officer of the corporation and stating
549	the date his or her appointment or election as a corporate
550	officer became or will become effective. The statement must be
551	signed under oath by both the officer and the president or chief
552	operating officer of the corporation and must be notarized. The
553	division shall issue a stop-work order under s. 440.107(1) to
554	any corporation who employs a person who claims to be exempt as
555	a corporate officer but who fails or refuses to produce the
556	documents required under this subsection to the division within
557	3 business days after the request is made.
558	(12) Effective January 1, 2006, and notwithstanding any
559	other provision of this section or this chapter, an officer of a
560	corporation and a partner to a partnership of more than two
561	persons may not elect to be exempt from this chapter by filing
562	written notice of the election. An exemption filed before
563	January 1, 2006, by an officer of a corporation or a partner to
564	a partnership of more than two persons expires on January 1,
565	2007, and is null and void.
566	Section 3. Subsection (1) of section 440.092, Florida
567	Statutes, is amended to read:
568	440.092 Special requirements for compensability; deviation
569	from employment; subsequent intervening accidents.--
570	(1) RECREATIONAL AND SOCIAL ACTIVITIES.--Recreational or
571	social activities are not compensable unless such recreational
572	or social activities are an expressly required incident of
573	employment and produce a substantial direct benefit to the
574	employer beyond improvement in employee health and morale that
575	is common to all kinds of recreation and social life.
576	Section 4. Paragraph (f) of subsection (1) of section
577	440.10, Florida Statutes, is amended to read:
578	440.10 Liability for compensation.--
579	(1)
580	(f) If an employer fails to secure compensation as
581	required by this chapter, the department shallmayassess
582	against the employer a penalty not to exceed $5,000 for each
583	employee of that employer who is classified by the employer as
584	an independent contractor but who is found by the department to
585	not meet the criteria for an independent contractor that are set
586	forth in s. 440.02. The division shall adopt rules to administer
587	the provisions of this paragraph.
588
589	A sole proprietor, partner, or officer of a corporation who
590	elects exemption from this chapter by filing a certificate of
591	election under s. 440.05 may not recover benefits or
592	compensation under this chapter. An independent contractor who
593	provides the general contractor with both an affidavit stating
594	that he or she meets the requirements of s. 440.02 and a
595	certificate of exemption is not an employee under s. 440.02 and
596	may not recover benefits under this chapter. For purposes of
597	determining the appropriate premium for workers' compensation
598	coverage, carriers may not consider any person who meets the
599	requirements of this paragraph to be an employee.
600	Section 5. Subsection (4) of section 440.11, Florida
601	Statutes, is amended to read:
602	440.11 Exclusiveness of liability.--
603	(4) Except as provided inNotwithstanding the provisions
604	of s. 624.155, the liability of a carrier or a self-insured
605	employerto an employee or to anyone entitled to bring suit in
606	the name of the employee for acts related to the handling of a
607	workers' compensation claimshall be as provided in this
608	chapter, which isshall beexclusive and in place of all other
609	liability.
610	Section 6. Paragraph (r) of subsection (1), subsection
611	(2), paragraph (c) of subsection (4), and subsections (5), (7),
612	(12), and (14) of section 440.13, Florida Statutes, are amended
613	to read:
614	440.13 Medical services and supplies; penalty for
615	violations; limitations.--
616	(1) DEFINITIONS.--As used in this section, the term:
617	(r) "Physician" or "doctor" means a physician licensed
618	under chapter 458, an osteopathic physician licensed under
619	chapter 459, a chiropractic physician licensed under chapter
620	460, a podiatric physician licensed under chapter 461, an
621	optometrist licensed under chapter 463, a psychologist licensed
622	under chapter 490 or chapter 491, an acupuncturist licensed
623	under chapter 457,or a dentist licensed under chapter 466, each
624	of whom the agency may require to bemust becertified by the
625	agency as a health care provider.
626	(2) MEDICAL TREATMENT; DUTY OF EMPLOYER TO FURNISH.--
627	(a) Subject to the limitations specified elsewhere in this
628	chapter, the employer shall furnish to the employee such
629	medically necessary remedial treatment, care, and attendance for
630	such period as the nature of the injury or the process of
631	recovery may require, including medicines, medical supplies,
632	durable medical equipment, orthoses, prostheses, and other
633	medically necessary apparatus. Remedial treatment, care, and
634	attendance, including work-hardening programs or pain-management
635	programs accredited by the Commission on Accreditation of
636	Rehabilitation Facilities or Joint Commission on the
637	Accreditation of Health Organizations or pain-management
638	programs affiliated with medical schools, shall be considered as
639	covered treatment only when such care is given based on a
640	referral by a physician as defined in this chapter. Each
641	facility shall maintain outcome data, including work status at
642	discharges, total program charges, total number of visits, and
643	length of stay.
644	(b) An employer or carrier may allow an employee to select
645	the medical providers who will furnish medically necessary
646	treatment and care to the employee. The carrier must notify each
647	employee of the right to select medical providers by certified
648	mail. If an employee selects his or her medical providers, the
649	employee is not entitled to an independent medical examination
650	at the expense of the carrier as provided under subsection (5).
651	If the carrier does not allow an employee to select medical
652	providers, the employer or carrier is not entitled to an
653	independent medical examination under subsection (5).The
654	department shall utilize such data and report to the President
655	of the Senate and the Speaker of the House of Representatives
656	regarding the efficacy and cost-effectiveness of such program,
657	no later than October 1, 1994. Medically necessary treatment,
658	care, and attendance does not include chiropractic services in
659	excess of 18 treatments or rendered 8 weeks beyond the date of
660	the initial chiropractic treatment, whichever comes first,
661	unless the carrier authorizes additional treatment or the
662	employee is catastrophically injured.
663	(c)(b)The employer shall provide appropriate professional
664	or nonprofessional attendant care performed only at the
665	direction and control of a physician when such care is medically
666	necessary. The value of nonprofessional attendant care provided
667	by a family member must be determined as follows:
668	1. If the family member is not employed, the per-hour
669	value equals the federal minimum hourly wage.
670	2. If the family member is employed and elects to leave
671	that employment to provide attendant or custodial care, the per-
672	hour value of that care equals the per-hour value of the family
673	member's former employment, not to exceed the per-hour value of
674	such care available in the community at large. A family member
675	or a combination of family members providing nonprofessional
676	attendant care under this paragraph may not be compensated for
677	more than a total of 12 hours per day.
678	(d)(c)If the employer fails to provide treatment or care
679	required by this section after request by the injured employee,
680	the employee may obtain such treatment at the expense of the
681	employer. The employee must make a specific written request for
682	the treatment or care being sought. The carrier must authorize
683	the requested treatment or care within 14 days after receipt of
684	the written request. If the carrier fails, refuses, or neglects
685	to authorize treatment or care as required in this subsection,
686	it is presumed that the treatment or care requested by the
687	employee was medically necessary unless there is clear and
688	convincing evidence that the carrier's failure to authorize the
689	treatment or care was for reasons beyond its control or that the
690	treatment or care is contrary to the employee's health, safety,
691	or welfare. The timeframe for authorization provided in this
692	paragraph does not apply to a request for emergency treatment or
693	care., if the treatment is compensable and medically necessary.
694	There must be a specific request for the treatment, and the
695	employer or carrier must be given a reasonable time period
696	within which to provide the treatment or care. However, the
697	employee is not entitled to recover any amount personally
698	expended for the treatment or service unless he or she has
699	requested the employer to furnish that treatment or service and
700	the employer has failed, refused, or neglected to do so within a
701	reasonable time or unless the nature of the injury requires such
702	treatment, nursing, and services and the employer or his or her
703	superintendent or foreman, having knowledge of the injury, has
704	neglected to provide the treatment or service.
705	(e)(d)If the employee selected his or her medical
706	provider,the carrier has the right to transfer the care of an
707	injured employee from the attending health care provider if an
708	independent medical examination determines that the employee is
709	not making appropriate progress in recuperation. An independent
710	medical examination that does not involve an actual physical
711	examination of the employee may not serve as the basis for a
712	transfer of care under this paragraph. If an employee challenges
713	a transfer of care, the employee must show that the care prior
714	to the transfer was appropriate to his or her injuries and was
715	medically necessary and that he or she was making appropriate
716	progress in recuperation.
717	(f)(e)Except in emergency situations and for treatment
718	rendered by a managed care arrangement, after any initial
719	examination and diagnosis by a physician providing remedial
720	treatment, care, and attendance, and before a proposed course of
721	medical treatment begins, each insurer shall review, in
722	accordance with the requirements of this chapter, the proposed
723	course of treatment, to determine whether such treatment would
724	be recognized as reasonably prudent. The review must be in
725	accordance with all applicable workers' compensation practice
726	parameters. The insurer must accept any such proposed course of
727	treatment unless the insurer notifies the physician of its
728	specific objections to the proposed course of treatment by the
729	close of the tenth business day after notification by the
730	physician, or a supervised designee of the physician, of the
731	proposed course of treatment.
732	(g)(f)Upon the written request of the employee, the
733	carrier shall give the employee the opportunity for one change
734	of physician during the course of treatment for any one
735	accident. The employee shall be entitled to select another
736	physician from among not fewer than three carrier-authorized
737	physicians who are not professionally affiliated.
738	(4) NOTICE OF TREATMENT TO CARRIER; FILING WITH
739	DEPARTMENT.--
740	(c) It is the policy for the administration of the
741	workers' compensation system that there be reasonable access to
742	medical information by all parties to facilitate the self-
743	executing features of the law. Notwithstanding the limitations
744	in s. 456.057 and subject to the limitations in s. 381.004, upon
745	the request of the employer, the carrier, an authorized
746	qualified rehabilitation provider, or the attorney for the
747	employer or carrier, the medical records of an injured employee
748	must be furnished to those persons and the medical condition of
749	the injured employee must be discussed with those persons, if
750	the records and the discussions are restricted to conditions
751	relating to the workplace injury. Any such discussions may be
752	held before or after the filing of a claim, with 5 days' written
753	notice to the employee or the employee's legal representative,
754	without the knowledge, consent, orpresence of any other party
755	or his or her agent or representative. A health care provider
756	who willfully refuses to provide medical records or to discuss
757	the medical condition of the injured employee, after a
758	reasonable request is made for such information pursuant to this
759	subsection, shall be subject by the agency to one or more of the
760	penalties set forth in paragraph (8)(b).
761	(5) INDEPENDENT MEDICAL EXAMINATIONS.--
762	(a) Except as provided in paragraph (e),in any dispute
763	concerning overutilization, medical benefits, compensability, or
764	disability under this chapter, the carrier or the employee may,
765	at the expense of the carrier,select an independent medical
766	examiner. The examiner may be a health care provider treating or
767	providing other care to the employee. An independent medical
768	examiner may not render an opinion outside his or her area of
769	expertise, as demonstrated by licensure and applicable practice
770	parameters.
771	(b) Each party is bound by his or her selection of an
772	independent medical examiner and is entitled to an alternate
773	examiner only if:
774	1. The examiner is not qualified to render an opinion upon
775	an aspect of the employee's illness or injury which is material
776	to the claim or petition for benefits;
777	2. The examiner ceases to practice in the specialty
778	relevant to the employee's condition;
779	3. The examiner is unavailable due to injury, death, or
780	relocation outside a reasonably accessible geographic area; or
781	4. The parties agree to an alternate examiner.
782
783	Any party may request, or a judge of compensation claims may
784	require, designation of an agency medical advisor as an
785	independent medical examiner. The opinion of the advisors acting
786	as examiners shall not be afforded the presumption set forth in
787	paragraph (9)(c).
788	(c) The carrier shallmay, at its election, contact the
789	employee or the employee's legal representativeclaimant
790	directlyto schedule a reasonable time for an independent
791	medical examination. The carrier must confirm the scheduling
792	agreement in writing within 5 days and notify the employee and
793	the employee's legal representativeclaimant's counsel, if any,
794	at least 7 days before the date upon which the independent
795	medical examination is scheduled to occur. An attorney
796	representing a claimant is not authorized to schedule
797	independent medical evaluations under this subsection.
798	(d) If the employee fails to appear for the independent
799	medical examination without good cause and fails to advise the
800	physician at least 24 hours before the scheduled date for the
801	examination that he or she cannot appear, the employee is barred
802	from recovering compensation for any period during which he or
803	she has refused to submit to such examination. Further, the
804	employee shall reimburse the carrier 50 percent of the
805	physician's cancellation or no-show fee unless the carrier that
806	schedules the examination fails to timely provide to the
807	employee a written confirmation of the date of the examination
808	pursuant to paragraph (c) which includes an explanation of why
809	he or she failed to appear. The employee may appeal to a judge
810	of compensation claims for reimbursement when the carrier
811	withholds payment in excess of the authority granted by this
812	section.
813	(e) If the carrier allows an employee to select his or her
814	medical providers, the employee is not entitled to an
815	independent medical examination at the expense of the employer
816	or carrier. If the carrier does not allow the employee to select
817	medical providers, the carrier is not entitled to an independent
818	medical examination under this section.No medical opinion other
819	than the opinion of a medical advisor appointed by the judge of
820	compensation claims or agency, an independent medical examiner,
821	or an authorized treating provider is admissible in proceedings
822	before the judges of compensation claims.
823	(f) Attorney's fees incurred by an injured employee in
824	connection with delay of or opposition to an independent medical
825	examination, including, but not limited to, motions for
826	protective orders, are not recoverable under this chapter.
827	(7) UTILIZATION AND REIMBURSEMENT DISPUTES.--
828	(a) Any health care provider, carrier, or employerwho
829	elects to contest the disallowance or adjustment of payment by a
830	carrier under subsection (6) may file a petition for benefits in
831	accordance with s. 440.192 and proceed in the same manner as an
832	employeemust, within 30 days after receipt of notice of
833	disallowance or adjustment of payment, petition the agency to
834	resolve the dispute. If the medical provider prevails in
835	contesting a disallowance or adjustment of payment, the provider
836	is entitled to recover taxable costs and attorney's fees as
837	provided in s. 440.34.The petitioner must serve a copy of the
838	petition on the carrier and on all affected parties by certified
839	mail. The petition must be accompanied by all documents and
840	records that support the allegations contained in the petition.
841	Failure of a petitioner to submit such documentation to the
842	agency results in dismissal of the petition.
843	(b) The carrier must submit to the agency within 10 days
844	after receipt of the petition all documentation substantiating
845	the carrier's disallowance or adjustment. Failure of the carrier
846	to submit the requested documentation to the agency within 10
847	days constitutes a waiver of all objections to the petition.
848	(c) Within 60 days after receipt of all documentation, the
849	agency must provide to the petitioner, the carrier, and the
850	affected parties a written determination of whether the carrier
851	properly adjusted or disallowed payment. The agency must be
852	guided by standards and policies set forth in this chapter,
853	including all applicable reimbursement schedules, in rendering
854	its determination.
855	(d) If the agency finds an improper disallowance or
856	improper adjustment of payment by an insurer, the insurer shall
857	reimburse the health care provider, facility, insurer, or
858	employer within 30 days, subject to the penalties provided in
859	this subsection.
860	(e) The agency shall adopt rules to carry out this
861	subsection. The rules may include provisions for consolidating
862	petitions filed by a petitioner and expanding the timetable for
863	rendering a determination upon a consolidated petition.
864	(b)(f)Any carrier that engages in a pattern or practice
865	of arbitrarily or unreasonably disallowing or reducing payments
866	to health care providers may be subject to an administrative
867	fine assessed by the agency in an amount not to exceed $5,000
868	for any single improper disallowance or reduction.one or more
869	of the following penalties imposed by the agency:
870	1. Repayment of the appropriate amount to the health care
871	provider.
872	2. An administrative fine assessed by the agency in an
873	amount not to exceed $5,000 per instance of improperly
874	disallowing or reducing payments.
875	3. Award of the health care provider's costs, including a
876	reasonable attorney's fee, for prosecuting the petition.
877	(12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
878	REIMBURSEMENT ALLOWANCES.--
879	(a) A three-member panel is created, consisting of the
880	Insurance Commissioner, or the Insurance Commissioner's
881	designee, and two members to be appointed by the Governor,
882	subject to confirmation by the Senate, one member who, on
883	account of present or previous vocation, employment, or
884	affiliation, shall be classified as a representative of
885	employers, the other member who, on account of previous
886	vocation, employment, or affiliation, shall be classified as a
887	representative of employees. The panel shall determine statewide
888	schedules of maximum reimbursement allowances for medically
889	necessary treatment, care, and attendance provided by
890	physicians, hospitals, ambulatory surgical centers, work-
891	hardening programs, pain programs, and durable medical
892	equipment. The reimbursement for medical services furnished
893	under this chapter may not be less than 100 percent of the
894	applicable reimbursement allowance, as determined in accordance
895	with the current procedural terminology codes of the American
896	Medical Association, and as adopted and updated annually by the
897	Centers for Medicare and Medicaid Services.The maximum
898	reimbursement allowances for inpatient hospital care shall be
899	based on a schedule of per diem rates, to be approved by the
900	three-member panel no later than March 1, 1994, to be used in
901	conjunction with a precertification manual as determined by the
902	agency. All compensable charges for hospital outpatient care
903	shall be reimbursed at 75 percent of usual and customary
904	charges. Until the three-member panel approves a schedule of per
905	diem rates for inpatient hospital care and it becomes effective,
906	all compensable charges for hospital inpatient care must be
907	reimbursed at 75 percent of their usual and customary charges.
908	Annually, the three-member panel shall adopt schedules of
909	maximum reimbursement allowances for physicians, hospital
910	inpatient care, hospital outpatient care, ambulatory surgical
911	centers, work-hardening programs, and pain programs. However,
912	The maximum percentage of increase in the individual
913	reimbursement allowance may not exceed the percentage of annual
914	increase, as determined by the Centers for Medicare and Medicaid
915	Services,in the Consumer Price Index for the previous year. An
916	individual physician, hospital, ambulatory surgical center, pain
917	program, or work-hardening program shall be reimbursed either
918	the usual and customary charge for treatment, care, and
919	attendance, the agreed-upon contract price, or the maximum
920	reimbursement allowance in the appropriate schedule, whichever
921	is less.
922	(b) As to reimbursement for a prescription medication, the
923	reimbursement amount for a prescription shall be the average
924	wholesale price times 1.2 plus $4.18 for the dispensing fee,
925	except where the carrier has contracted for a lower amount. Fees
926	for pharmaceuticals and pharmaceutical services shall be
927	reimbursable at the applicable fee schedule amount. Where the
928	employer or carrier has contracted for such services and the
929	employee elects to obtain them through a provider not a party to
930	the contract, the carrier shall reimburse at the schedule,
931	negotiated, or contract price, whichever is lower.
932	(c) Reimbursement for all fees and other charges for such
933	treatment, care, and attendance, including treatment, care, and
934	attendance provided by any hospital or other health care
935	provider, ambulatory surgical center, work-hardening program, or
936	pain program, for which the Centers for Medicare and Medicaid
937	Services do not provide a maximum rate of reimbursementmust not
938	exceed the amounts provided by the uniform schedule of maximum
939	reimbursement allowances as determined by the panel or as
940	otherwise provided in this section. This subsection also applies
941	to independent medical examinations performed by health care
942	providers under this chapter. Until The three-member panel shall
943	approveapprovesa uniform schedule of maximum reimbursement
944	allowances and it becomes effective, all compensable chargesfor
945	treatment, care, and attendance provided by physicians,
946	ambulatory surgical centers, work-hardening programs, or pain
947	programs for which the Centers for Medicare and Medicaid
948	Services do not provide a maximum rate of reimbursementshall be
949	reimbursed at the lowest maximum reimbursement allowance across
950	all 1992 schedules of maximum reimbursement allowances for the
951	services provided regardless of the place of service. In
952	determining the uniform schedule, the panel shall first approve
953	the data which it finds representative of prevailing charges in
954	the state for similar treatment, care, and attendance of injured
955	persons. Each health care provider, health care facility,
956	ambulatory surgical center, work-hardening program, or pain
957	program receiving workers' compensation payments shall maintain
958	records verifying their usual charges. In establishing the
959	uniform schedule of maximum reimbursement allowances, the panel
960	must consider:
961	1. The levels of reimbursement for similar treatment,
962	care, and attendance made by other health care programs or
963	third-party providers;
964	2. The impact upon cost to employers for providing a level
965	of reimbursement for treatment, care, and attendance which will
966	ensure the availability of treatment, care, and attendance
967	required by injured workers;
968	3. The financial impact of the reimbursement allowances
969	upon health care providers and health care facilities, including
970	trauma centers as defined in s. 395.4001, and its effect upon
971	their ability to make available to injured workers such
972	medically necessary remedial treatment, care, and attendance.
973	The uniform schedule of maximum reimbursement allowances must be
974	reasonable, must promote health care cost containment and
975	efficiency with respect to the workers' compensation health care
976	delivery system, and must be sufficient to ensure availability
977	of such medically necessary remedial treatment, care, and
978	attendance to injured workers; and
979	4. The most recent average maximum allowable rate of
980	increase for hospitals determined by the Health Care Board under
981	chapter 408.
982	(d) In addition to establishing the uniform schedule of
983	maximum reimbursement allowances, the panel shall:
984	1. Take testimony, receive records, and collect data to
985	evaluate the adequacy of the workers' compensation fee schedule,
986	nationally recognized fee schedules and alternative methods of
987	reimbursement to certified health care providers and health care
988	facilities for inpatient and outpatient treatment and care.
989	2. Survey certified health care providers and health care
990	facilities to determine the availability and accessibility of
991	workers' compensation health care delivery systems for injured
992	workers.
993	3. Survey carriers to determine the estimated impact on
994	carrier costs and workers' compensation premium rates by
995	implementing changes to the carrier reimbursement schedule or
996	implementing alternative reimbursement methods.
997	4. Submit recommendations on or before January 1, 2003,
998	and biennially thereafter, to the President of the Senate and
999	the Speaker of the House of Representatives on methods to
1000	improve the workers' compensation health care delivery system.
1001
1002	The division shall provide data to the panel, including but not
1003	limited to, utilization trends in the workers' compensation
1004	health care delivery system. The division shall provide the
1005	panel with an annual report regarding the resolution of medical
1006	reimbursement disputes and any actions pursuant to s. 440.13(8).
1007	The division shall provide administrative support and service to
1008	the panel to the extent requested by the panel.
1009	(14) PAYMENT OF MEDICAL FEES.--
1010	(a) Except for emergency care treatment, fees for medical
1011	services are payable only to a health care provider certified
1012	and authorized to render remedial treatment, care, or attendance
1013	under this chapter. A health care provider may not collect or
1014	receive a fee from an injured employee within this state, except
1015	as otherwise provided by this chapter. If an authorized medical
1016	provider attempts to recover from the employee payment of
1017	medical services authorized and provided under this chapter, the
1018	provider forfeits the right to receive reimbursement for those
1019	medical services.Such providers have recourse against the
1020	employer or carrier for payment for services rendered in
1021	accordance with this chapter.
1022	(b) A health care provider that seeks payment of fees for
1023	medical services may file a petition for benefits in accordance
1024	with s. 440.192 and proceed in the same manner as an employee.
1025	If the health care provider prevails in obtaining payment for
1026	medical services, the provider is entitled to recover taxable
1027	costs and attorney's fees as provided in s. 440.34.
1028	(c)(b)Fees charged for remedial treatment, care, and
1029	attendance, except for independent medical examinations, may not
1030	exceed the applicable fee schedules adopted under this chapter.
1031	(c) Notwithstanding any other provision of this chapter,
1032	following overall maximum medical improvement from an injury
1033	compensable under this chapter, the employee is obligated to pay
1034	a copayment of $10 per visit for medical services. The copayment
1035	shall not apply to emergency care provided to the employee.
1036	Section 7. Subsections (10), (16), and (17) of section
1037	440.134, Florida Statutes, are amended to read:
1038	440.134 Workers' compensation managed care arrangement.--
1039	(10) Written procedures and methods for the management of
1040	an injured worker's medical care by a medical care coordinator
1041	including:
1042	(a) The mechanism for assuring that covered employees
1043	receive all initial covered services from a primary care
1044	provider participating in the provider network, except for
1045	emergency care.
1046	(b) The mechanism for assuring that all continuing covered
1047	services be received from the same primary care provider
1048	participating in the provider network that provided the initial
1049	covered services, except when services from another provider are
1050	authorized by the medical care coordinator pursuant to paragraph
1051	(d).
1052	(c) The policies and procedures for allowing an employee
1053	one change to another provider as provided in s. 440.13(2)(g)
1054	within the same specialty and provider network as the authorized
1055	treating physician during the course of treatment for a work-
1056	related injury, if a request is made to the medical care
1057	coordinator by the employee; and requiring that special
1058	provision be made for more than one such referral through the
1059	arrangement's grievance procedures.
1060	(d) The process for assuring that all referrals authorized
1061	by a medical care coordinator are made to the participating
1062	network providers, unless medically necessary treatment, care,
1063	and attendance are not available and accessible to the injured
1064	worker in the provider network.
1065	(16) When a carrier enters into a managed care arrangement
1066	pursuant to this section, the medical benefits available to
1067	employees must, at a minimum, equal those afforded employees
1068	under s. 440.13employees who are covered by the provisions of
1069	such arrangement shall be deemed to have received all the
1070	benefits to which they are entitled pursuant to s. 440.13(2)(a)
1071	and (b). In addition, the employer shall be deemed to have
1072	complied completely with the requirements of such provisions.
1073	The provisions governing managed care arrangements shall govern
1074	exclusively unless those arrangements are contrary to s. 440.13
1075	specifically stated otherwise in this section.
1076	(17) Notwithstanding any other provisions of this chapter,
1077	when a carrier provides medical care through a workers'
1078	compensation managed care arrangement, pursuant to this section,
1079	those workers who are subject to the arrangement must receive
1080	medical services for work-related injuries and diseases as
1081	prescribed in the contract, ifprovidedthe employer and carrier
1082	have provided notice to the employees of the arrangement in a
1083	manner approved by the agency. Treatment received outside the
1084	workers' compensation managed care arrangement is not
1085	compensable unless authorized by the carrier prior to the
1086	treatment date, except as provided under s. 440.13(2)(d).
1087	Section 8. Subsection (3) of section 440.15, Florida
1088	Statutes, is amended to read:
1089	440.15 Compensation for disability.--Compensation for
1090	disability shall be paid to the employee, subject to the limits
1091	provided in s. 440.12(2), as follows:
1092	(3) PERMANENT IMPAIRMENT AND WAGE-LOSS BENEFITS.--
1093	(a) Impairment benefits.--
1094	1. Once the employee has reached the date of maximum
1095	medical improvement, impairment benefits are due and payable
1096	within 20 days after the carrier has knowledge of the impairment
1097	unless the employee is entitled to supplemental benefits under
1098	paragraph (b).
1099	2. The three-member panel, in cooperation with the
1100	department, shall establish and use a uniform permanent
1101	impairment rating schedule. This schedule must be based on
1102	medically or scientifically demonstrable findings as well as the
1103	systems and criteria set forth in the American Medical
1104	Association's Guides to the Evaluation of Permanent Impairment;
1105	the Snellen Charts, published by American Medical Association
1106	Committee for Eye Injuries; and the Minnesota Department of
1107	Labor and Industry Disability Schedules. The schedule should be
1108	based upon objective findings. The schedule shall be more
1109	comprehensive than the AMA Guides to the Evaluation of Permanent
1110	Impairment and shall expand the areas already addressed and
1111	address additional areas not currently contained in the guides.
1112	On August 1, 1979, and pending the adoption, by rule, of a
1113	permanent schedule, Guides to the Evaluation of Permanent
1114	Impairment, copyright 1977, 1971, 1988, by the American Medical
1115	Association, shall be the temporary schedule and shall be used
1116	for the purposes hereof. For injuries after July 1, 1990,
1117	pending the adoption by rule of a uniform disability rating
1118	agency schedule, the Minnesota Department of Labor and Industry
1119	Disability Schedule shall be used unless that schedule does not
1120	address an injury. In such case, the Guides to the Evaluation of
1121	Permanent Impairment by the American Medical Association shall
1122	be used. Determination of permanent impairment under this
1123	schedule must be made by a physician licensed under chapter 458,
1124	a doctor of osteopathic medicine licensed under chapters 458 and
1125	459, a chiropractic physician licensed under chapter 460, a
1126	podiatric physician licensed under chapter 461, an optometrist
1127	licensed under chapter 463, or a dentist licensed under chapter
1128	466, as appropriate considering the nature of the injury. No
1129	other persons are authorized to render opinions regarding the
1130	existence of or the extent of permanent impairment.
1131	3. All impairment income benefits shall be based on an
1132	impairment rating using the impairment schedule referred to in
1133	subparagraph 2. Impairment income benefits are paid weekly at
1134	the rate of two-thirds50 percentof the employee's average
1135	weekly temporary total disability benefit not to exceed the
1136	maximum weekly benefit under s. 440.12. An employee's
1137	entitlement to impairment income benefits begins the day after
1138	the employee reaches maximum medical improvement or the
1139	expiration of temporary benefits, whichever occurs earlier, and
1140	continues until the earlier of:
1141	a. The expiration of a period computed at the rate of 3
1142	weeks for each percentage point of impairment; or
1143	b. The death of the employee.
1144	4. After the employee has been certified by a doctor as
1145	having reached maximum medical improvement or 6 weeks before the
1146	expiration of temporary benefits, whichever occurs earlier, the
1147	certifying doctor shall evaluate the condition of the employee
1148	and assign an impairment rating, using the impairment schedule
1149	referred to in subparagraph 2. Compensation is not payable for
1150	the mental, psychological, or emotional injury arising out of
1151	depression from being out of work. If the certification and
1152	evaluation are performed by a doctor other than the employee's
1153	treating doctor, the certification and evaluation must be
1154	submitted to the treating doctor, and the treating doctor must
1155	indicate agreement or disagreement with the certification and
1156	evaluation. The certifying doctor shall issue a written report
1157	to the department, the employee, and the carrier certifying that
1158	maximum medical improvement has been reached, stating the
1159	impairment rating, and providing any other information required
1160	by the department by rule. If the employee has not been
1161	certified as having reached maximum medical improvement before
1162	the expiration of 102 weeks after the date temporary total
1163	disability benefits begin to accrue, the carrier shall notify
1164	the treating doctor of the requirements of this section.
1165	5. The carrier shall pay the employee impairment income
1166	benefits for a period based on the impairment rating.
1167	6. The department may by rule specify forms and procedures
1168	governing the method of payment of wage loss and impairment
1169	benefits for dates of accidents before January 1, 1994, and for
1170	dates of accidents on or after January 1, 1994.
1171	(b) Supplemental benefits.--
1172	1. All supplemental benefits must be paid in accordance
1173	with this subsection. An employee is entitled to supplemental
1174	benefits as provided in this paragraph as of the expiration of
1175	the impairment period, if:
1176	a. The employee has an impairment rating from the
1177	compensable injury of 1020percent or more as determined
1178	pursuant to this chapter;
1179	b. The employee has not returned to work or has returned
1180	to work earning less than 80 percent of the employee's average
1181	weekly wage as a direct result of the employee's impairment; and
1182	c. The employee has in good faith attempted to obtain
1183	employment commensurate with the employee's ability to work.
1184	2. An employee who is entitled to receive supplemental
1185	benefits under this paragraph is not entitled to receive
1186	impairment benefits under paragraph (a).
1187	3.2.If an employee is not entitled to supplemental
1188	benefits at the time of payment of the final weekly impairment
1189	income benefit because the employee is earning at least 80
1190	percent of the employee's average weekly wage, the employee may
1191	become entitled to supplemental benefits at any time within 1
1192	year after the impairment income benefit period ends if:
1193	a. The employee earns wages that are less than 80 percent
1194	of the employee's average weekly wage for a period of at least
1195	90 days;
1196	b. The employee meets the other requirements of
1197	subparagraph 1.; and
1198	c. The employee's decrease in earnings is a direct result
1199	of the employee's impairment from the compensable injury.
1200	4.3.If an employee earns wages that are at least 80
1201	percent of the employee's average weekly wage for a period of at
1202	least 90 days during which the employee is receiving
1203	supplemental benefits, the employee ceases to be entitled to
1204	supplemental benefits for the filing period. Supplemental
1205	benefits that have been terminated shall be reinstated when the
1206	employee satisfies the conditions enumerated in subparagraph 2.
1207	and files the statement required under subparagraph 5.4.
1208	Notwithstanding any other provision, if an employee is not
1209	entitled to supplemental benefits for 12 consecutive months, the
1210	employee ceases to be entitled to any additional income benefits
1211	for the compensable injury. If the employee is discharged within
1212	12 months after losing entitlement under this subsection,
1213	benefits may be reinstated if the employee was discharged at
1214	that time with the intent to deprive the employee of
1215	supplemental benefits.
1216	5.4.After the initial determination of supplemental
1217	benefits, the employee must file a statement with the carrier
1218	stating that the employee has earned less than 80 percent of the
1219	employee's average weekly wage as a direct result of the
1220	employee's impairment, stating the amount of wages the employee
1221	earned in the filing period, and stating that the employee has
1222	in good faith sought employment commensurate with the employee's
1223	ability to work. The statement must be filed quarterly on a form
1224	and in the manner prescribed by the department. The department
1225	may modify the filing period as appropriate to an individual
1226	case. Failure to file a statement relieves the carrier of
1227	liability for supplemental benefits for the period during which
1228	a statement is not filed.
1229	6.5.The carrier shall begin payment of supplemental
1230	benefits not later than the seventh day after the expiration
1231	date of the impairment income benefit period and shall continue
1232	to timely pay those benefits. The carrier may request a
1233	mediation conference for the purpose of contesting the
1234	employee's entitlement to or the amount of supplemental income
1235	benefits.
1236	7.6.Supplemental benefits are calculated quarterly and
1237	paid monthly. For purposes of calculating supplemental benefits,
1238	80 percent of the employee's average weekly wage and the average
1239	wages the employee has earned per week are compared quarterly.
1240	For purposes of this paragraph, if the employee is offered a
1241	bona fide position of employment that the employee is capable of
1242	performing, given the physical condition of the employee and the
1243	geographic accessibility of the position, the employee's weekly
1244	wages are considered equivalent to the weekly wages for the
1245	position offered to the employee.
1246	8.7.Supplemental benefits are payable at the rate of 80
1247	percent of the difference between 80 percent of the employee's
1248	average weekly wage determined pursuant to s. 440.14 and the
1249	weekly wages the employee has earned during the reporting
1250	period, not to exceed the maximum weekly income benefit under s.
1251	440.12.
1252	9.8.The department may by rule define terms that are
1253	necessary for the administration of this section and forms and
1254	procedures governing the method of payment of supplemental
1255	benefits for dates of accidents before January 1, 1994, and for
1256	dates of accidents on or after January 1, 1994.
1257	(c) Duration of temporary impairment and supplemental
1258	income benefits.--The employee's eligibility for temporary
1259	benefits, impairment income benefits, and supplemental benefits
1260	terminates on the expiration of 401 weeks after the date of
1261	injury.
1262	Section 9. Subsections (1) and (7) of section 440.16,
1263	Florida Statutes, are amended to read:
1264	440.16 Compensation for death.--
1265	(1) If death results from the accident within 1 year
1266	thereafter or follows continuous disability and results from the
1267	accident within 5 years thereafter, the employer shall pay:
1268	(a) Within 14 days after receiving the bill, actual
1269	funeral expenses not to exceed $10,000$5,000.
1270	(b) Compensation, in addition to the above, in the
1271	following percentages of the average weekly wages to the
1272	following persons entitled thereto on account of dependency upon
1273	the deceased, and in the following order of preference, subject
1274	to the limitation provided in subparagraph 2., but such
1275	compensation shall be subject to the limits provided in s.
1276	440.12(2), shall not exceed $250,000$100,000, and may be less
1277	than, but shall not exceed, for all dependents or persons
1278	entitled to compensation, 66 2/3 percent of the average wage:
1279	1. To the spouse, if there is no child, 50 percent of the
1280	average weekly wage, such compensation to cease upon the
1281	spouse's death.
1282	2. To the spouse, if there is a child or children, the
1283	compensation payable under subparagraph 1. and, in addition, 16
1284	2/3 percent on account of the child or children. However, when
1285	the deceased is survived by a spouse and also a child or
1286	children, whether such child or children are the product of the
1287	union existing at the time of death or of a former marriage or
1288	marriages, the judge of compensation claims may provide for the
1289	payment of compensation in such manner as may appear to the
1290	judge of compensation claims just and proper and for the best
1291	interests of the respective parties and, in so doing, may
1292	provide for the entire compensation to be paid exclusively to
1293	the child or children; and, in the case of death of such spouse,
1294	33 1/3 percent for each child. However, upon the surviving
1295	spouse's remarriage, the spouse shall be entitled to a lump-sum
1296	payment equal to 26 weeks of compensation at the rate of 50
1297	percent of the average weekly wage as provided in s. 440.12(2),
1298	unless the $250,000$100,000limit provided in this paragraph is
1299	exceeded, in which case the surviving spouse shall receive a
1300	lump-sum payment equal to the remaining available benefits in
1301	lieu of any further indemnity benefits. In no case shall a
1302	surviving spouse's acceptance of a lump-sum payment affect
1303	payment of death benefits to other dependents.
1304	3. To the child or children, if there is no spouse, 33 1/3
1305	percent for each child.
1306	4. To the parents, 25 percent to each, such compensation
1307	to be paid during the continuance of dependency.
1308	5. To the brothers, sisters, and grandchildren, 15 percent
1309	for each brother, sister, or grandchild.
1310	(c) To the surviving spouse, payment of postsecondary
1311	student fees for instruction at any area technical center
1312	established under s. 1001.44 for up to 1,800 classroom hours or
1313	payment of student fees at any community college established
1314	under part III of chapter 1004 for up to 80 semester hours. The
1315	spouse of a deceased state employee shall be entitled to a full
1316	waiver of such fees as provided in ss. 1009.22 and 1009.23 in
1317	lieu of the payment of such fees. The benefits provided for in
1318	this paragraph shall be in addition to other benefits provided
1319	for in this section and shall terminate 7 years after the death
1320	of the deceased employee, or when the total payment in eligible
1321	compensation under paragraph (b) has been received. To qualify
1322	for the educational benefit under this paragraph, the spouse
1323	shall be required to meet and maintain the regular admission
1324	requirements of, and be registered at, such area technical
1325	center or community college, and make satisfactory academic
1326	progress as defined by the educational institution in which the
1327	student is enrolled.
1328	(7) Compensation under this chapter to aliens not
1329	residents (or about to become nonresidents) of the United States
1330	or Canada shall be the same in amount as provided for residents,
1331	except that dependents in any foreign country shall be limited
1332	to surviving spouse and child or children, or if there be no
1333	surviving spouse or child or children, to surviving father or
1334	mother whom the employee has supported, either wholly or in
1335	part, for the period of 1 year prior to the date of the injury,
1336	and except that the judge of compensation claims may, at the
1337	option of the judge of compensation claims, or upon the
1338	application of the insurance carrier, commute all future
1339	installments of compensation to be paid to such aliens by paying
1340	or causing to be paid to them one-half of the commuted amount of
1341	such future installments of compensation as determined by the
1342	judge of compensation claims, and provided further that
1343	compensation to dependents referred to in this subsection shall
1344	in no case exceed $100,000$50,000.
1345	Section 10. Subsection (9) of section 440.185, Florida
1346	Statutes, is amended to read:
1347	440.185 Notice of injury or death; reports; penalties for
1348	violations.--
1349	(9) Any employer or carrier who fails or refuses to timely
1350	send any form, report, or notice required by this section shall
1351	be subject to a civil penalty not to exceed $500 for each such
1352	failure or refusal. If anHowever, any employer whofails to
1353	notify the carrier of the injury on the prescribed form or by
1354	letter within the 7 days required in subsection (2), the
1355	department shall impose ashall be liable for the civil penalty
1356	of $500 per incident, which shall be paid by the employer and
1357	not the carrier. Failure by the employer to meet its
1358	obligations under subsection (2) doesshallnot relieve the
1359	carrier from liability for the civil penalty if it fails to
1360	comply with subsections (4) and (5).
1361	Section 11. Subsection (2) of section 440.19, Florida
1362	Statutes, is amended to read:
1363	440.19 Time bars to filing petitions for benefits.--
1364	(2) Payment of any indemnity benefit or the furnishing of
1365	remedial treatment, care, or attendance pursuant to either a
1366	notice of injury or a petition for benefits shall toll the
1367	limitations period set forth above for 2 years following1 year
1368	fromthe date of such payment. This tolling period does not
1369	apply to the issues of compensability, date of maximum medical
1370	improvement, or permanent impairment.
1371	Section 12. Paragraph (c) of subsection (11) of section
1372	440.20, Florida Statutes, is amended to read:
1373	440.20 Time for payment of compensation; penalties for
1374	late payment.--
1375	(11)
1376	(c)1.Notwithstanding s. 440.21(2), when a claimant is
1377	represented by counsel, the claimant may waive all rights to any
1378	and all benefits under this chapter by entering into a
1379	settlement agreement releasing the employer and the carrier from
1380	liability for workers' compensation benefits in exchange for a
1381	lump-sum payment to the claimant. The settlement agreement
1382	requires approval by the judge of compensation claims only as to
1383	the attorney's fees paid to the claimant's attorney by the
1384	claimant. The parties need not submit any information or
1385	documentation in support of the settlement, except as needed to
1386	justify the amount of the attorney's fees. Neither the employer
1387	nor the carrier is responsible for any attorney's fees relating
1388	to the settlement and release of claims under this section.
1389	Payment of the lump-sum settlement amount must be made within 14
1390	days after the date the judge of compensation claims mails the
1391	order approving the attorney's fees. Any order entered by a
1392	judge of compensation claims approving the attorney's fees as
1393	set out in the settlement under this subsection is not
1394	considered to be an award and is not subject to modification or
1395	review. The judge of compensation claims shall report these
1396	settlements to the Deputy Chief Judge in accordance with the
1397	requirements set forth in paragraphs (a) and (b). Settlements
1398	entered into under this subsection are valid and apply to all
1399	dates of accident.
1400	2. The department shall adopt by rule a form for
1401	settlement agreements which must be used for any settlement
1402	agreement entered into under this paragraph. The settlement
1403	agreement form may not include any provision that resolves a
1404	claim of the employee which is separate and apart from the claim
1405	arising under this chapter.
1406	Section 13. Section 440.205, Florida Statutes, is amended
1407	to read:
1408	440.205 Coercion of employees.--
1409	(1) AnNo employer may notshalldischarge, threaten to
1410	discharge, intimidate, or coerce any employee by reason of such
1411	employee's valid claim for compensation or attempt to claim
1412	compensation under the Workers' Compensation Law. An employer
1413	who violates this subsection is subject to civil suit for
1414	damages which may be filed in any circuit court of this state
1415	where the employer resides or transacts business. The immunity
1416	provided for employers under s. 440.11 does not extend to the
1417	conduct prohibited by this subsection.
1418	(2) A carrier may not engage in conduct prohibited under
1419	s. 440.105. A carrier who engages in conduct prohibited under s.
1420	440.105 is subject to civil suit for damages which may be filed
1421	in any circuit court of this state where the carrier resides or
1422	transacts business. The immunity provided for carriers under s.
1423	440.11 does not extend to conduct prohibited under s. 440.105.
1424	Section 14. Subsections (1) and (2) and paragraph (f) of
1425	subsection (4) of section 440.25, Florida Statutes, are amended
1426	to read:
1427	440.25 Procedures for mediation and hearings.--
1428	(1) Except as otherwise provided in subsection (2),within
1429	90 days after a petition for benefits is filed under s. 440.192,
1430	a mediation conference concerning such petition shall be held.
1431	Within 40 days after such petition is filed, the judge of
1432	compensation claims shall notify the interested parties by order
1433	that a mediation conference concerning such petition will be
1434	held unless the parties have notified the Office of the Judges
1435	of Compensation Claims that a mediation has been held. Such
1436	order must give the date by which the mediation conference must
1437	be held. Such order may be served personally upon the interested
1438	parties or may be sent to the interested parties by mail. The
1439	claimant or the adjuster of the employer or carrier residing or
1440	working outside the district where the mediation is to be held
1441	may, at the mediator's discretion,attend the mediation
1442	conference by telephone or, if agreed to by the parties, other
1443	electronic means. A continuance may be granted if the requesting
1444	party demonstrates to the judge of compensation claims that the
1445	reason for requesting the continuance arises from circumstances
1446	beyond the party's control. Any order granting a continuance
1447	must set forth the date of the rescheduled mediation conference.
1448	A mediation conference may not be used solely for the purpose of
1449	mediating attorney's fees.
1450	(2) Any party who participates in a mediation conference
1451	shall not be precluded from requesting a hearing following the
1452	mediation conference should both parties not agree to be bound
1453	by the results of the mediation conference. A mediation
1454	conference is required to be held unless this requirement is
1455	waived by the Deputy Chief Judge. However, a mediation
1456	conference is not required if the petition is for reimbursement
1457	of mileage expenses for medical purposes, payment of medical
1458	benefits valued on the face of the petition at less than $1,000,
1459	or payment of penalties or interest on indemnity benefits.No
1460	later than 3 days prior to the mediation conference, all parties
1461	must submit any applicable motions, including, but not limited
1462	to, a motion to waive the mediation conference, to the judge of
1463	compensation claims.
1464	(4)
1465	(f) Each judge of compensation claims shallis required to
1466	submit a special report to the Deputy Chief Judge in each
1467	contested workers' compensation case in which the judge fails to
1468	issue an order within 30 days after the close of evidence in a
1469	proceeding to determine an issue pursuant to s. 440.20 or s.
1470	440.34case is not determined within 30 days of final hearing or
1471	closure of the hearing record. Said form shall be provided by
1472	the director of the Division of Administrative Hearings and
1473	shall contain the names of the judge of compensation claims and
1474	of the attorneys involved and a brief explanation by the judge
1475	of compensation claims as to the reason for such a delay in
1476	issuing a final order.
1477	Section 15. Subsection (3) of section 440.29, Florida
1478	Statutes, is amended to read:
1479	440.29 Procedure before the judge of compensation
1480	claims.--
1481	(3) The practice and procedure before the judges of
1482	compensation claims shall be governed by rules adopted by the
1483	Supreme Court, except to the extent that such rules conflict
1484	with the provisions of this chapter.
1485	Section 16. Paragraphs (b) and (c) of subsection (2) and
1486	subsection (4) of section 440.45, Florida Statutes, are amended
1487	to read:
1488	440.45 Office of the Judges of Compensation Claims.--
1489	(2)
1490	(b) Except as provided in paragraph (c), the Governor
1491	shall appoint a judge of compensation claims from a list of
1492	three persons nominated by a statewide nominating commission.
1493	The statewide nominating commission shall be composed of the
1494	following:
1495	1. Five members, at least one of whom must be a member of
1496	a minority group as defined in s. 288.703(3), two of whom must
1497	be board certified in workers' compensation law by The Florida
1498	Bar and represent employers and carriers exclusively, and two of
1499	whom must be board certified in workers' compensation law by The
1500	Florida Bar and represent employees exclusively,one of each who
1501	resides in each of the territorial jurisdictions of the district
1502	courts of appeal, appointed by the Board of Governors of The
1503	Florida Bar from among The Florida Bar members who are engaged
1504	in the practice of law. On July 1, 1999, the term of office of
1505	each person appointed by the Board of Governors of The Florida
1506	Bar to the commission expires. The Board of Governors shall
1507	appoint members who reside in the odd-numbered district court of
1508	appeal jurisdictions to 4-year terms each, beginning July 1,
1509	1999, and members who reside in the even-numbered district court
1510	of appeal jurisdictions to 2-year terms each, beginning July 1,
1511	1999. Thereafter, each member shall be appointed for a 4-year
1512	term;
1513	2. Five electors, at least one of whom must be a member of
1514	a minority group as defined in s. 288.703(3), one of each who
1515	resides in each of the territorial jurisdictions of the district
1516	courts of appeal, appointed by the Governor. On July 1, 1999,
1517	the term of office of each person appointed by the Governor to
1518	the commission expires. The Governor shall appoint members who
1519	reside in the odd-numbered district court of appeal
1520	jurisdictions to 2-year terms each, beginning July 1, 1999, and
1521	members who reside in the even-numbered district court of appeal
1522	jurisdictions to 4-year terms each, beginning July 1, 1999.
1523	Thereafter, each member shall be appointed for a 4-year term;
1524	and
1525	3. Five electors, at least one of whom must be a member of
1526	a minority group as defined in s. 288.703(3), one of each who
1527	resides in the territorial jurisdictions of the district courts
1528	of appeal, selected and appointed by a majority vote of the
1529	other 10 members of the commission. On October 1, 1999, the term
1530	of office of each person appointed to the commission by its
1531	other members expires. A majority of the other members of the
1532	commission shall appoint members who reside in the odd-numbered
1533	district court of appeal jurisdictions to 2-year terms each,
1534	beginning October 1, 1999, and members who reside in the even-
1535	numbered district court of appeal jurisdictions to 4-year terms
1536	each, beginning October 1, 1999. Thereafter, each member shall
1537	be appointed for a 4-year term.
1538
1539	A vacancy occurring on the commission shall be filled by the
1540	original appointing authority for the unexpired balance of the
1541	term. No attorney who appears before any judge of compensation
1542	claims more than four times a year is eligible to serve on the
1543	statewide nominating commission, except as provided in
1544	subparagraph 1. The meetings and determinations of the
1545	nominating commission as to the judges of compensation claims
1546	shall be open to the public and shall be recorded.
1547	(c) Each judge of compensation claims shall be appointed
1548	for a term of 4 years, but during the term of office may be
1549	removed by the Governor for cause. Prior to the expiration of a
1550	judge's term of office, the statewide nominating commission
1551	shall review the judge's conduct and determine whether the
1552	judge's performance is satisfactory. Effective July 1, 2002, in
1553	determining whether a judge's performance is satisfactory, the
1554	commission shall consider the extent to which the judge has met
1555	the requirements of this chapter, including, but not limited to,
1556	the requirements of ss. 440.25(1) and (4)(a)-(f), 440.34(2), and
1557	440.442. A judge of compensation claims appearing before the
1558	commission shall testify under oath and is subject to penalties
1559	for perjury.If the judge's performance is deemed satisfactory,
1560	the commission shall report its finding to the Governor no later
1561	than 6 months prior to the expiration of the judge's term of
1562	office. The Governor shall review the commission's report and
1563	may reappoint the judge for an additional 4-year term. If the
1564	Governor does not reappoint the judge, the Governor shall inform
1565	the commission. The judge shall remain in office until the
1566	Governor has appointed a successor judge in accordance with
1567	paragraphs (a) and (b). If a vacancy occurs during a judge's
1568	unexpired term, the statewide nominating commission does not
1569	find the judge's performance is satisfactory, or the Governor
1570	does not reappoint the judge, the Governor shall appoint a
1571	successor judge for a term of 4 years in accordance with
1572	paragraph (b).
1573	(4) The Office of the Judges of Compensation Claims shall
1574	adopt rules to effect the purposes of this section. Such rules
1575	shall include procedural rules applicable to workers'
1576	compensation claim resolution anduniform criteria for measuring
1577	the performance of the office, including, but not limited to,
1578	the number of cases assigned and disposed, the age of pending
1579	and disposed cases, timeliness of decisionmaking, extraordinary
1580	fee awards, and other data necessary for the judicial nominating
1581	commission to review the performance of judges as required in
1582	paragraph (2)(c). The workers' compensation rules of procedure
1583	approved by the Supreme Court apply until the rules adopted by
1584	the Office of the Judges of Compensation Claims pursuant to this
1585	section become effective.
1586	Section 17. Subsections (3) and (6) of section 627.041,
1587	Florida Statutes, are amended to read:
1588	627.041 Definitions.--As used in this part:
1589	(3) "Rating organization" means every person, other than
1590	an authorized insurer, whether located within or outside this
1591	state, who has as his or her object or purpose the making of
1592	prospective loss costs,rates, rating plans, or rating systems.
1593	Two or more authorized insurers that act in concert for the
1594	purpose of making prospective loss costs,rates, rating plans,
1595	or rating systems, and that do not operate within the specific
1596	authorizations contained in ss. 627.311, 627.314(2), (4), and
1597	627.351, shall be deemed to be a rating organization. No single
1598	insurer shall be deemed to be a rating organization.
1599	(6) "Subscriber" means an insurer which is furnished at
1600	its request:
1601	(a) With prospective loss costs, rates,and rating manuals
1602	by a rating organization of which it is not a member; or
1603	(b) With advisory services by an advisory organization of
1604	which it is not a member.
1605	Section 18. Section 627.091, Florida Statutes, is amended
1606	to read:
1607	627.091 Rate filings; workers' compensation and employer's
1608	liability insurances.--
1609	(1) As used in this section, the term:
1610	(a) "Expenses" means that portion of a rate attributable
1611	to acquisition, field supervision, collection expenses, and
1612	general expenses.
1613	(b) "Multiplier" means the profit and expenses, other than
1614	loss adjustment expenses associated with writing workers'
1615	compensation and employer's liability insurance, expressed as a
1616	single, nonintegral number to be applied to the prospective loss
1617	costs approved by the department in making rates for each
1618	classification of risks used by that insurer.
1619	(c) "Prospective loss costs" means that portion of a rate
1620	reflecting historical aggregate losses and loss adjustment
1621	expenses projected through development to their ultimate value
1622	and through trending to a future point in time. The term does
1623	not include provisions for profit or expenses, other than loss
1624	adjustment expenses.
1625	(2)(1)As to workers' compensation and employer's
1626	liability insurances, every insurer shall file with the
1627	department every manual of classifications, rules, and rates,
1628	every rating plan, and every modification of any of the
1629	foregoing which it proposes to use. Every insurer is authorized
1630	to include deductible provisions in its manual of
1631	classifications, rules, and rates. Such deductibles shall in all
1632	cases be in a form and manner which is consistent with the
1633	underlying purpose of chapter 440.
1634	(3)(2)Every such filing shall state the proposed
1635	effective date thereof, and shall indicate the character and
1636	extent of the coverage contemplated. When a filing is not
1637	accompanied by the information upon which the insurer supports
1638	the filing and the department does not have sufficient
1639	information to determine whether the filing meets the applicable
1640	requirements of this part, it shall within 15 days after the
1641	date of filing require the insurer to furnish the information
1642	upon which it supports the filing. The information furnished in
1643	support of a filing may include:
1644	(a) The experience or judgment of the insurer or rating
1645	organization making the filing;
1646	(b) Its interpretation of any statistical data it relies
1647	upon;
1648	(c) The experience of other insurers or rating
1649	organizations; or
1650	(d) Any other factors which the insurer or rating
1651	organization deems relevant.
1652	(4)(3)A filing and any supporting information shall be
1653	open to public inspection as provided in s. 119.07(1).
1654	(5)(4) An insurer may satisfy its obligation to make such
1655	filings of prospective loss costsby becoming a member of, or a
1656	subscriber to, a licensed rating organization which makes such
1657	filings and by authorizing the department to accept such filings
1658	in its behalf; but nothing contained in this chapter shall be
1659	construed as requiring any insurer to become a member or a
1660	subscriber to any rating organization.
1661	(6)(a) A licensed rating organization may develop and file
1662	for approval with the department reference filings containing
1663	prospective loss costs and the underlying loss data and other
1664	supporting statistical and actuarial information. A rating
1665	organization may not develop or file final rates or multipliers
1666	for expenses and profit. After a loss cost reference filing has
1667	been filed with the department and approved, the rating
1668	organization shall provide its member insurers with a copy of
1669	the approved reference filing.
1670	(b) Each insurer shall independently and individually file
1671	with the department the final rates it will use and the
1672	effective date of any rate changes. An insurer may independently
1673	file its rates, including prospective loss costs, as authorized
1674	by this section. An insurer that is a member or subscriber to a
1675	rating organization may use the prospective loss costs in an
1676	approved reference filing by the rating organization or the
1677	insurer may file for a deviation from the loss cost reference
1678	filing under s. 627.211.
1679	(c) If an insurer uses the prospective loss costs in the
1680	approved reference filing, the insurer must independently and
1681	individually file with the department its multiplier for
1682	expenses and profit. The insurer's rates shall be the
1683	combination of the prospective loss costs and the multiplier for
1684	expenses and profit. Insurers shall file data in accordance with
1685	the uniform statistical plan approved by the department.
1686	Insurers may use variable or fixed expense loads or a
1687	combination of these and may vary the expense load by class, if
1688	the insurer files supporting data justifying such variations. An
1689	insurer that uses the prospective loss costs in an approved
1690	reference filing may use its multiplier and final rates
1691	immediately upon filing with the department, subject to
1692	disapproval by the department.
1693	(d) Insurers may file with the department premium
1694	discounts, credits, and surcharges that bear a reasonable
1695	relationship to the expected loss and expense experience of an
1696	individual policyholder, subject to a maximum surcharge of 40
1697	percent above the approved rate and a maximum discount or credit
1698	of 50 percent below the approved rate. An insurer that uses the
1699	prospective loss costs in an approved reference filing may use
1700	premium discounts, credits, and surcharges immediately upon
1701	filing with the department, subject to disapproval by the
1702	department.
1703	(e) An insurer may request to have its multiplier for
1704	expenses and profit remain on file and reference all subsequent
1705	prospective loss costs reference filings. Upon the effective
1706	date of approval of subsequent reference loss costs filings, the
1707	insurer's rates shall be the combination of the prospective loss
1708	costs and the multiplier contained in its filing with the
1709	department. The insurer's filed multiplier remains in effect
1710	until the insurer withdraws it and files a revised multiplier.
1711	If the insurer elects to use the prospective loss costs as filed
1712	but with a different effective date, the insurer must file
1713	notice with the department of the effective date.
1714	(7) A rating organization may file supplementary rating
1715	information that includes policy-writing rules, rating plans
1716	classification codes and descriptions, and rules that include
1717	factors or relativities, such as increased limits factors,
1718	classification relativities, or similar factors, but excludes
1719	minimum premiums. An insurer may elect to use such supplementary
1720	rating information approved by the department.
1721	(8) A rating organization may file:
1722	(a) Final rates and rating plans for the residual market;
1723	(b) The uniform classification plan and rules;
1724	(c) The uniform experience rating plan and rules; and
1725	(d) Advisory manual workers' compensation rates to be used
1726	for the sole purpose of computing the assessment liability of
1727	self-insurers.
1728	(9)(5)Pursuant to the provisions of s. 624.3161, the
1729	department may examine the underlying statistical data used in
1730	such filings.
1731	(10)(6)Whenever the committee of a recognized rating
1732	organization with responsibility for workers' compensation and
1733	employer's liability insurance rates in this state meets to
1734	discuss the necessity for, or a request for, Florida rate
1735	increases or decreases, the determination of Florida rates, the
1736	rates to be requested, and any other matters pertaining
1737	specifically and directly to such Florida rates, such meetings
1738	shall be held in this state and shall be subject to s. 286.011.
1739	The committee of such a rating organization shall provide at
1740	least 3 weeks' prior notice of such meetings to the department
1741	and shall provide at least 14 days' prior notice of such
1742	meetings to the public by publication in the Florida
1743	Administrative Weekly.
1744	Section 19. Subsection (1) of section 627.096, Florida
1745	Statutes, is amended to read:
1746	627.096 Workers' Compensation Rating Bureau.--
1747	(1) There is created within the department a Workers'
1748	Compensation Rating Bureau, which shall make an investigation
1749	and study of all insurers authorized to issue workers'
1750	compensation and employer's liability coverage in this state.
1751	Such bureau shall study the data, statistics, schedules, or
1752	other information as it may deem necessary to assist and advise
1753	the department in its review of filings made by or on behalf of
1754	workers' compensation and employer's liability insurers. The
1755	department shall have the authority to promulgate rules
1756	requiring all workers' compensation and employer's liability
1757	insurers to submit to the rating bureau any data, statistics,
1758	schedules, and other information deemed necessary to the rating
1759	bureau's study and advisement. All data, statistics, schedules,
1760	and other information submitted to, or considered by, the
1761	Workers' Compensation Rating Bureau are public records for
1762	purposes of s. 119.07(1) and s. 24(a), Art. I of the State
1763	Constitution.
1764	Section 20. Section 627.101, Florida Statutes, is amended
1765	to read:
1766	627.101 When filing becomes effective; workers'
1767	compensation and employer's liability insurances.--
1768	(1) The department shall review prospective loss costs
1769	filings and final ratefilings as to workers' compensation and
1770	employer's liability insurances as soon as reasonably possible
1771	after they have been made in order to determine whether they
1772	meet the applicable requirements of this part. If the
1773	department determines that part of a rate filing does not meet
1774	the applicable requirements of this part, it may reject so much
1775	of the filing as does not meet these requirements, and approve
1776	the remainder of the filing.
1777	(2) The department shall specifically approve a
1778	prospective loss coststhefiling before it becomes effective,
1779	unless the department has concluded it to be in the public
1780	interest to hold a public hearing to determine whether the
1781	filing meets the requirements of this chapter and has given
1782	notice of such hearing to the insurer or rating organization
1783	that made the filing, and in which case the effectiveness of the
1784	filing shall be subject to the further order of the department
1785	made as provided in s. 627.111. An insurer that uses prospective
1786	loss costs in an approved reference filing may use its
1787	multiplier and final rates immediately upon filing with the
1788	department as provided in s. 627.091, subject to disapproval by
1789	the department. If the department specifically disapproves a
1790	prospective loss costs filing or a final ratethefiling, the
1791	provisions of subsection (4) shall apply.
1792	(3) An insurer or rating organization may, at the time it
1793	makes a prospective loss costsfiling with the department,
1794	request a public hearing thereon. In such event, the department
1795	shall give notice of the hearing.
1796	(4) If the department disapproves a prospective loss costs
1797	filing or a final ratefiling, it shall promptly give notice of
1798	such disapproval to the insurer or rating organization that made
1799	the filing, stating the respects in which it finds that the
1800	filing does not meet the requirements of this chapter. If the
1801	department approves a filing, it shall give prompt notice
1802	thereof to the insurer or rating organization that made the
1803	filing, and in which case the filing shall become effective upon
1804	such approval or upon such subsequent date as may be
1805	satisfactory to the department and the insurer or rating
1806	organization that made the filing.
1807	Section 21. Subsection (1) of section 627.211, Florida
1808	Statutes, is amended to read:
1809	627.211 Deviations; workers' compensation and employer's
1810	liability insurances.--
1811	(1) Every member or subscriber to a rating organization
1812	shall, as to workers' compensation or employer's liability
1813	insurance, adhere to the filings made on its behalf by such
1814	organization; except that any such insurer may make written
1815	application to the department for permission to file a uniform
1816	percentage decrease or increase to be applied to the premiums
1817	produced by the rating system so filed for a kind of insurance,
1818	for a class of insurance which is found by the department to be
1819	a proper rating unit for the application of such uniform
1820	percentage decrease or increase, or for a subdivision of
1821	workers' compensation or employer's liability insurance:
1822	(a) Comprised of a group of manual classifications which
1823	is treated as a separate unit for ratemaking purposes; or
1824	(b) For which separate provisions for loss adjustment
1825	expensesexpense provisionsare included in the filings of the
1826	rating organization.
1827
1828	Such application shall specify the basis for the modification
1829	and shall be accompanied by the data upon which the applicant
1830	relies. A copy of the application and data shall be sent
1831	simultaneously to the rating organization.
1832	Section 22. If any provision of this act or its
1833	application to any person or circumstance is held invalid, the
1834	invalidity does not affect other provisions or applications of
1835	the act which can be given effect without the invalid provision
1836	or application, and to this end the provisions of this act are
1837	severable.
1838	Section 23. This act shall take effect January 1, 2004.