| 1 | Representative Berfield offered the following: |
| 2 |
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| 3 | Amendment (with title amendments) |
| 4 | Remove line(s) 561-580, and insert: |
| 5 | Section 2. Notwithstanding the provisions of ss. 440.50 |
| 6 | and 440.51, Florida Statutes, subject to the following |
| 7 | procedures and approval, funds are hereby appropriated to be |
| 8 | transferred from the Workers' Compensation Administrative Trust |
| 9 | Fund within the Department of Financial Services to the workers' |
| 10 | workers' compensation joint underwriting plan provided in s. |
| 11 | 627.311(5), Florida Statutes, as follows: |
| 12 | (1) For actuarial deficits projected for policyholders, |
| 13 | based on actuarial best estimates, covered in subplan D prior to |
| 14 | July 1, 2004, and upon verification by the Office of Insurance |
| 15 | Regulation, the plan is authorized to request the Department of |
| 16 | Financial Services, subject to approval of the Legislative |
| 17 | Budget Commission, to establish a contingency reserve within the |
| 18 | Workers' Compensation Administrative Trust Fund for the purpose |
| 19 | of funding deficits in subplan D. |
| 20 | (2) After the contingency reserve is established, whenever |
| 21 | the board determines the plan does not have a sufficient cash |
| 22 | basis to meet 3 months of projected cash needs due to any |
| 23 | deficit in subplan D, the board is authorized to request the |
| 24 | department to transfer funds from the contingency reserve fund |
| 25 | within the Workers' Compensation Administrative Trust Fund to |
| 26 | the plan in an amount sufficient to fund the difference between |
| 27 | the amount available and the amount needed to meet the plan's |
| 28 | plan's projected cash need for the subsequent 3-month |
| 29 | period. The board and the office must first certify to the |
| 30 | Department of Financial Services that there is not sufficient |
| 31 | cash within the plan to meet the projected cash needs in subplan |
| 32 | D within the subsequent 3 months. The amount requested for |
| 33 | transfer to the plan may not exceed the difference between the |
| 34 | amount available within the plan and the amount needed to meet |
| 35 | the plan's projected cash need for the subsequent 3-month |
| 36 | period, as jointly certified by the board and the Office of |
| 37 | Insurance Regulation to the Department of Financial Services |
| 38 | attributable to the former subplan D policyholders. The |
| 39 | Department of Financial Services may submit a budget amendment |
| 40 | to request transfer of funds from the contingency reserve |
| 41 | established with the Workers' Compensation Administrative Trust |
| 42 | Fund subject to the approval of the Legislative Budget |
| 43 | Commission. The board shall provide, for review of the |
| 44 | Legislative Budget Commission, information on the reasonableness |
| 45 | of the plan's administration, including, but not limited to, the |
| 46 | plan of operations and costs, claims costs, claims |
| 47 | administrative costs, overhead costs, claims reserves, and the |
| 48 | latest report submitted on administrative cost reduction |
| 49 | alternatives as required in s. 627.311(5)(c)17., Florida |
| 50 | Statutes. |
| 51 | (3) This section shall expire July 1, 2007. |
| 52 |
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| 53 | ================ T I T L E A M E N D M E N T ============= |
| 54 | Remove line(s) 25-44, and insert: |
| 55 | funding of the plan through deficit funding; providing for |
| 56 | transferring appropriations from the Workers' Compensation |
| 57 | Administrative Trust Fund to the workers' compensation joint |
| 58 | underwriting plan for certain purposes; providing procedures and |
| 59 | requirements; providing for establishing a contingency reserve |
| 60 | for certain purposes; providing for transfers of funds from the |
| 61 | contingency reserve to the plan for purposes of funding certain |
| 62 | deficits; providing limitations; providing for review of the |
| 63 | reasonableness of the plan's administration; providing a sunset |
| 64 | date for deficit funding; providing an effective date. |