HB 1549

1	A bill to be entitled
2	An act relating to workers' compensation; amending s.
3	440.055, F.S.; requiring an employer with fewer than four
4	employees who has elected alternative coverage to workers'
5	compensation to post notice at each worksite to this
6	effect; amending s. 440.075, F.S.; providing that every
7	corporate officer who elects alternative coverage must
8	proceed at common law in any action to recover damages for
9	injury or death brought against the employer; amending s.
10	440.077, F.S.; providing that an officer of a corporation
11	who elects alternative coverage may not recover workers'
12	compensation benefits; creating s. 440.095, F.S.;
13	providing for election of alternative coverage instead of
14	regular workers' compensation coverage; specifying who is
15	eligible therefor; prescribing benefits included in
16	alternative coverage; prescribing a schedule of benefits
17	for specified injuries; requiring the Office of Insurance
18	Regulation to determine if a policy meets certain minimum
19	requirements; requiring a statement of such determination
20	on alternative coverage policies and applications
21	therefor; authorizing the Financial Services Commission to
22	adopt rules specifying policies providing alternative
23	coverages; amending s. 440.02, F.S.; redefining the terms
24	"employee," "employer," and "employment" for purposes of
25	workers' compensation coverage; deleting the power of
26	corporate officers and certain others to elect exemption
27	from workers' compensation coverage; amending s. 440.04,
28	F.S.; providing that a corporate officer who has elected
29	alternative coverage may revoke that election; amending s.
30	440.05, F.S.; prescribing procedures for giving notice of
31	election of alternative coverage and of revocation of that
32	election; amending s. 440.10, F.S.; providing for
33	subcontractors to give evidence of alternative coverage to
34	contractors, when applicable; amending s. 440.105, F.S.;
35	providing penalties for an employer that coerces an
36	employee into electing alternative coverage; providing
37	penalties for an employer that presents false, fraudulent,
38	or misleading statements as evidence of compliance with s.
39	440.38, F.S., or of eligibility for a certificate of
40	alternative coverage; amending ss. 489.115 and 489.515,
41	F.S., to conform; providing effective dates.
42
43	Be It Enacted by the Legislature of the State of Florida:
44
45	Section 1.  Section 440.055, Florida Statutes, is amended
46	to read:
47	440.055  Notice requirements.--An employer who employs
48	fewer than four employees, who is permitted by law to elect
49	alternative coverage not to secure payment of compensation under
50	this chapter, and who elects not to do so shall post clear
51	written notice in a conspicuous location at each worksite
52	directed to all employees and other persons performing services
53	at the worksite of their lack of entitlement to full workers'
54	compensation benefits under this chapter and their entitlement
55	to reduced, alternative coverage benefits.
56	Section 2.  Section 440.075, Florida Statutes, is amended
57	to read:
58	440.075  When corporate officer rejects chapter;
59	effect.--Every corporate officer who elects alternative coverage
60	as permitted by to reject this chapter shall, in any action to
61	recover damages for injury or death brought against the
62	corporate employer, proceed as at common law, and the employer
63	in such suit may avail itself of all defenses that exist at
64	common law.
65	Section 3.  Section 440.077, Florida Statutes, is amended
66	to read:
67	440.077  When a corporate officer rejects chapter,
68	effect.--An officer of a corporation who is permitted to elect
69	alternative coverage an exemption under this chapter and who
70	elects to do so be exempt from the provisions of this chapter
71	may not recover benefits under this chapter other than the
72	benefits provided by the alternative coverage.
73	Section 4.  Section 440.095, Florida Statutes, is created
74	to read:
75	440.095  Alternative coverage.--
76	(1)  In lieu of workers' compensation coverage as provided
77	in ss. 440.09-440.093 and the benefits for such coverage
78	specified in this chapter, eligible persons may elect
79	alternative coverage under this section. Such alternative
80	coverage must provide coverage for accidents, both work-related
81	and not work-related, but not coverage for illnesses and other
82	health problems that do not result from an accident. Alternative
83	coverage must provide, at a minimum, the benefits specified in
84	this section.
85	(2)  Persons who are eligible to elect alternative coverage
86	are:
87	(a)  An employer with fewer than four employees.
88	(b)  A sole proprietor or a partner who is not engaged in
89	the construction industry.
90	(c)  An officer of a corporation, as provided in s.
91	440.02(15)(b).
92	(3)  Disability benefits are 60 percent of preaccident
93	wages for up to 12 months, not to exceed $1,500 per month,
94	payable during the continuance of the disability, beginning
95	after a 7-day elimination period after the date of the covered
96	accident.
97	(4)  Accidental death and dismemberment benefits are a
98	death benefit of $100,000 and dismemberment benefits are subject
99	to the following schedule:
100	(a)  For loss of an arm ..... $20,000.
101	(b)  For loss of a hand ..... $10,000.
102	(c)  For loss of a leg ..... $20,000.
103	(d)  For loss of a foot ..... $10,000.
104	(e)  For loss of one eye ..... $15,000.
105	(f)  For loss of a thumb ..... $5,000.
106	(g)  For loss of a second finger ..... $2,500.
107	(h)  For loss of a third finger ..... $2,000.
108	(i)  For loss of a fourth finger ..... $1,000.
109	(j)  For loss of a fifth finger ..... $750.
110	(k)  For loss of a great toe ..... $2,000.
111	(l)  For loss of a toe other than great toe ..... $750.
112	(5)  In addition to the benefits under subsection (3), a
113	catastrophic loss benefit of $100,000 shall be payable after a
114	365-day elimination period after the date of the covered
115	accident for an injury that results in total and permanent:
116	(a)  Loss of both hands or both feet;
117	(b)  Loss or loss of use of both arms or both legs;
118	(c)  Loss or loss of use of one arm and one leg;
119	(d)  Loss of one hand and one foot;
120	(e)  Loss of sight in both eyes;
121	(f)  Loss of hearing in both ears; or
122	(g)  Loss of the ability to speak.
123	(6)  Hospital care benefits are as follows:
124	(a)  Hospital admission ..... $750 per admission per
125	accident.
126	(b)  Hospital confinement ..... $200 per day up to 365
127	days.
128	(c)  Hospital intensive care ..... $400 per day up to 15
129	days.
130	(7)  Medical indemnity benefits are as follows:
131	(a)  Ambulance ..... $100 per trip.
132	(b)  Air ambulance ..... $500 per trip.
133	(c)  Emergency room treatment ..... $150 per accident.
134	(d)  Initial doctor's office visit ..... $50 per accident.
135	(e)  Open abdominal or thoracic surgery ..... $1,000.
136	(f)  Blood/plasma/platelets ..... $300.
137	(g)  Dislocation (separated joint). For an open (surgical)
138	reduction of a dislocation of the following bones, which amounts
139	are reduced by 50 percent for closed (nonsurgical) reduction:
140	1.  Hip ..... $4,000.
141	2.  Knee ..... $2,000.
142	3.  Ankle bone or bones of the foot ..... $1,600.
143	4.  Collarbone (sternoclavicular) ..... $1,000.
144	5.  Lower jaw, shoulder, elbow, wrist ..... $600.
145	6.  Bone or bones of the hand ..... $600.
146	7.  Collarbone (acromioclavicular and separation), one toe
147	or finger ..... $200.
148	(h)  Fracture (broken bone). For an open (surgical)
149	reduction of a fracture of the following bones, which amounts
150	are reduced by 50 percent for closed (nonsurgical) reduction:
151	1.  Skull/depressed ..... $5,000.
152	2.  Skull/simple nondepressed ..... $2,000.
153	3.  Hip, thigh ..... $3,000.
154	4.  Body of vertebrae, pelvis, leg ..... $1,600.
155	5.  Bones of face or nose ..... $700.
156	6.  Upper jaw, maxilla ..... $700.
157	7.  Upper area between elbow and shoulder ..... $700.
158	8.  Lower jaw, mandible, kneecap, ankle, foot ..... $600.
159	9.  Shoulder blade, collarbone, vertebral processes .....
160	$600.
161	10.  Forearm, wrist, hand ..... $600.
162	11.  Rib ..... $500.
163	12.  Coccyx ..... $400.
164	13.  Finger, toe ..... $100.
165	(i)  Burn (based on size and degree) ..... $750 to $10,000.
166	(j)  Concussion ..... $100.
167	(k)  Emergency dental work ..... $50 to $150.
168	(l)  Eye injury ..... $200.
169	(m)  Torn knee cartilage ..... $500.
170	(n)  Lacerations (based on size) ..... $25 to $400.
171	(o)  Ruptured disc ..... $400.
172	(p)  Tendon/ligament/rotator cuff ..... $600.
173	(q)  Followup care:
174	1.  Accident followup treatment ..... $50 (limit of one
175	visit, payable after emergency treatment, hospital discharge, or
176	initial doctor's office visit).
177	2.  Appliances (wheelchair, crutches) ..... $100.
178	3.  Physical therapy ..... $25 per treatment up to six
179	treatments.
180	4.  Prosthetic devices ..... $1,000.
181	(8)  The Office of Insurance Regulation shall determine
182	whether a policy meets the minimum requirements specified in
183	this section. Policies determined to meet such requirements and
184	the applications for such policies shall include the following
185	statement: "This policy is an accident-only policy approved by
186	the Florida Office of Insurance Regulation as alternative
187	coverage to workers' compensation coverage, but only for persons
188	legally allowed to elect alternative coverage. Persons allowed
189	to elect alternative coverage are: employers with three or fewer
190	employees; sole proprietors not engaged in the construction
191	industry; and officers and directors of corporations, limited to
192	three officers and directors of a corporation, engaged in the
193	construction industry."
194	(9)  The Financial Services Commission may, by rule,
195	specify additional requirements for alternative benefit policies
196	consistent with this section.
197	Section 5.  Subsections (15), (16), and (17) of section
198	440.02, Florida Statutes, are amended to read:
199	440.02  Definitions.--When used in this chapter, unless the
200	context clearly requires otherwise, the following terms shall
201	have the following meanings:
202	(15)(a)  "Employee" means any person who receives
203	remuneration from an employer for the performance of any work or
204	service while engaged in any employment under any appointment or
205	contract for hire or apprenticeship, express or implied, oral or
206	written, whether lawfully or unlawfully employed, and includes,
207	but is not limited to, aliens and minors.
208	(b)  "Employee" includes any person who is an officer of a
209	corporation and who performs services for remuneration for such
210	corporation within this state, whether or not such services are
211	continuous.
212	1.  Any officer of a corporation may elect alternative
213	coverage under to be exempt from this chapter by filing written
214	notice of the election with the department as provided in s.
215	440.05.
216	2.  As to officers of a corporation who are engaged in the
217	construction industry, no more than three officers of a
218	corporation or of any group of affiliated corporations may elect
219	alternative coverage under to be exempt from this chapter by
220	filing written notice of the election with the department as
221	provided in s. 440.05. Officers must be shareholders, each
222	owning at least 10 percent of the stock of such corporation and
223	listed as an officer of such corporation with the Division of
224	Corporations of the Department of State, in order to elect
225	alternative coverage exemptions under this chapter. For purposes
226	of this subparagraph, the term "affiliated" means and includes
227	one or more corporations or entities, any one of which is a
228	corporation engaged in the construction industry, under the same
229	or substantially the same control of a group of business
230	entities which are connected or associated so that one entity
231	controls or has the power to control each of the other business
232	entities. The term "affiliated" includes, but is not limited to,
233	the officers, directors, executives, shareholders active in
234	management, employees, and agents of the affiliated corporation.
235	The ownership by one business entity of a controlling interest
236	in another business entity or a pooling of equipment or income
237	among business entities shall be prima facie evidence that one
238	business is affiliated with the other.
239	3.  An officer of a corporation who elects alternative
240	coverage under to be exempt from this chapter by filing a
241	written notice of the election with the department as provided
242	in s. 440.05 is not an employee.
243
244	Services are presumed to have been rendered to the corporation
245	if the officer is compensated by other than dividends upon
246	shares of stock of the corporation which the officer owns.
247	(c)  "Employee" includes:
248	1.  A sole proprietor or a partner who is not engaged in
249	the construction industry, devotes full time to the
250	proprietorship or partnership, and has not elected alternative
251	coverage under this chapter elects to be included in the
252	definition of employee by filing notice thereof as provided in
253	s. 440.05.
254	2.  All persons who are being paid by a construction
255	contractor as a subcontractor, unless the subcontractor has
256	validly elected alternative coverage an exemption as permitted
257	by this chapter, or has otherwise secured the payment of
258	compensation coverage as a subcontractor, consistent with s.
259	440.10, for work performed by or as a subcontractor.
260	3.  An independent contractor working or performing
261	services in the construction industry.
262	4.  A sole proprietor who engages in the construction
263	industry and a partner or partnership that is engaged in the
264	construction industry.
265	(d)  "Employee" does not include:
266	1.  An independent contractor who is not engaged in the
267	construction industry.
268	a.  In order to meet the definition of independent
269	contractor, at least four of the following criteria must be met:
270	(I)  The independent contractor maintains a separate
271	business with his or her own work facility, truck, equipment,
272	materials, or similar accommodations;
273	(II)  The independent contractor holds or has applied for a
274	federal employer identification number, unless the independent
275	contractor is a sole proprietor who is not required to obtain a
276	federal employer identification number under state or federal
277	regulations;
278	(III)  The independent contractor receives compensation for
279	services rendered or work performed and such compensation is
280	paid to a business rather than to an individual;
281	(IV)  The independent contractor holds one or more bank
282	accounts in the name of the business entity for purposes of
283	paying business expenses or other expenses related to services
284	rendered or work performed for compensation;
285	(V)  The independent contractor performs work or is able to
286	perform work for any entity in addition to or besides the
287	employer at his or her own election without the necessity of
288	completing an employment application or process; or
289	(VI)  The independent contractor receives compensation for
290	work or services rendered on a competitive-bid basis or
291	completion of a task or a set of tasks as defined by a
292	contractual agreement, unless such contractual agreement
293	expressly states that an employment relationship exists.
294	b.  If four of the criteria listed in sub-subparagraph a.
295	do not exist, an individual may still be presumed to be an
296	independent contractor and not an employee based on full
297	consideration of the nature of the individual situation with
298	regard to satisfying any of the following conditions:
299	(I)  The independent contractor performs or agrees to
300	perform specific services or work for a specific amount of money
301	and controls the means of performing the services or work.
302	(II)  The independent contractor incurs the principal
303	expenses related to the service or work that he or she performs
304	or agrees to perform.
305	(III)  The independent contractor is responsible for the
306	satisfactory completion of the work or services that he or she
307	performs or agrees to perform.
308	(IV)  The independent contractor receives compensation for
309	work or services performed for a commission or on a per-job
310	basis and not on any other basis.
311	(V)  The independent contractor may realize a profit or
312	suffer a loss in connection with performing work or services.
313	(VI)  The independent contractor has continuing or
314	recurring business liabilities or obligations.
315	(VII)  The success or failure of the independent
316	contractor's business depends on the relationship of business
317	receipts to expenditures.
318	c.  Notwithstanding anything to the contrary in this
319	subparagraph, an individual claiming to be an independent
320	contractor has the burden of proving that he or she is an
321	independent contractor for purposes of this chapter.
322	2.  A real estate licensee, if that person agrees, in
323	writing, to perform for remuneration solely by way of
324	commission.
325	3.  Bands, orchestras, and musical and theatrical
326	performers, including disk jockeys, performing in licensed
327	premises as defined in chapter 562, if a written contract
328	evidencing an independent contractor relationship is entered
329	into before the commencement of such entertainment.
330	4.  An owner-operator of a motor vehicle who transports
331	property under a written contract with a motor carrier which
332	evidences a relationship by which the owner-operator assumes the
333	responsibility of an employer for the performance of the
334	contract, if the owner-operator is required to furnish the
335	necessary motor vehicle equipment and all costs incidental to
336	the performance of the contract, including, but not limited to,
337	fuel, taxes, licenses, repairs, and hired help; and the owner-
338	operator is paid a commission for transportation service and is
339	not paid by the hour or on some other time-measured basis.
340	5.  A person whose employment is both casual and not in the
341	course of the trade, business, profession, or occupation of the
342	employer.
343	6.  A volunteer, except a volunteer worker for the state or
344	a county, municipality, or other governmental entity. A person
345	who does not receive monetary remuneration for services is
346	presumed to be a volunteer unless there is substantial evidence
347	that a valuable consideration was intended by both employer and
348	employee. For purposes of this chapter, the term "volunteer"
349	includes, but is not limited to:
350	a.  Persons who serve in private nonprofit agencies and who
351	receive no compensation other than expenses in an amount less
352	than or equivalent to the standard mileage and per diem expenses
353	provided to salaried employees in the same agency or, if such
354	agency does not have salaried employees who receive mileage and
355	per diem, then such volunteers who receive no compensation other
356	than expenses in an amount less than or equivalent to the
357	customary mileage and per diem paid to salaried workers in the
358	community as determined by the department; and
359	b.  Volunteers participating in federal programs
360	established under Pub. L. No. 93-113.
361	7.  Unless otherwise prohibited by this chapter, any
362	officer of a corporation who elects alternative coverage to be
363	exempt from this chapter. Such officer is not an employee for
364	any reason under this chapter until the notice of revocation of
365	alternative coverage election filed pursuant to s. 440.05 is
366	effective.
367	8.  An officer of a corporation that is engaged in the
368	construction industry who elects alternative coverage to be
369	exempt from the provisions of this chapter, as otherwise
370	permitted by this chapter. Such officer is not an employee for
371	any reason until the notice of revocation of alternative
372	coverage election filed pursuant to s. 440.05 is effective.
373	9.  An exercise rider who does not work for a single horse
374	farm or breeder, and who is compensated for riding on a case-by-
375	case basis, provided a written contract is entered into prior to
376	the commencement of such activity which evidences that an
377	employee/employer relationship does not exist.
378	10.  A taxicab, limousine, or other passenger vehicle-for-
379	hire driver who operates said vehicles pursuant to a written
380	agreement with a company which provides any dispatch, marketing,
381	insurance, communications, or other services under which the
382	driver and any fees or charges paid by the driver to the company
383	for such services are not conditioned upon, or expressed as a
384	proportion of, fare revenues.
385	11.  A person who performs services as a sports official
386	for an entity sponsoring an interscholastic sports event or for
387	a public entity or private, nonprofit organization that sponsors
388	an amateur sports event. For purposes of this subparagraph, such
389	a person is an independent contractor. For purposes of this
390	subparagraph, the term "sports official" means any person who is
391	a neutral participant in a sports event, including, but not
392	limited to, umpires, referees, judges, linespersons,
393	scorekeepers, or timekeepers. This subparagraph does not apply
394	to any person employed by a district school board who serves as
395	a sports official as required by the employing school board or
396	who serves as a sports official as part of his or her
397	responsibilities during normal school hours.
398	12.  Medicaid-enrolled clients under chapter 393 who are
399	excluded from the definition of employment under s.
400	443.036(21)(d)5. and served by Adult Day Training Services under
401	the Home and Community-Based Medicaid Waiver program in a
402	sheltered workshop setting licensed by the United States
403	Department of Labor for the purpose of training and earning less
404	than the federal hourly minimum wage.
405	(16)(a)  "Employer" means the state and all political
406	subdivisions thereof, all public and quasi-public corporations
407	therein, every person carrying on any employment, and the legal
408	representative of a deceased person or the receiver or trustees
409	of any person. The term includes an employment agency, an
410	employee leasing company, or a similar agent that provides
411	employees to other persons. The term does not include a registry
412	licensed under s. 400.506. "Employer" also includes employment
413	agencies, employee leasing companies, and similar agents who
414	provide employees to other persons. If the employer is a
415	corporation, parties in actual control of the corporation,
416	including, but not limited to, the president, officers who
417	exercise broad corporate powers, directors, and all shareholders
418	who directly or indirectly own a controlling interest in the
419	corporation, are considered the employer for the purposes of ss.
420	440.105, 440.106, and 440.107.
421	(b)  A homeowner shall not be considered the employer of
422	persons hired by the homeowner to carry out construction on the
423	homeowner's own premises if those premises are not intended for
424	immediate lease, sale, or resale.
425	(c)  Facilities serving individuals under subparagraph
426	(15)(d)12. shall be considered agents of the Agency for Health
427	Care Administration as it relates to providing Adult Day
428	Training Services under the Home and Community-Based Medicaid
429	Waiver program and not employers or third parties for the
430	purpose of limiting or denying Medicaid benefits.
431	(17)(a)  "Employment," subject to the other provisions of
432	this chapter, means any service performed by an employee for the
433	person employing him or her.
434	(b)  "Employment" includes:
435	1.  Employment by the state and all political subdivisions
436	thereof and all public and quasi-public corporations therein,
437	including officers elected at the polls.
438	2.  All private employment employments in which one four or
439	more employees are employed by the same employer or, with
440	respect to the construction industry, all private employment in
441	which one or more employees are employed by the same employer.
442	3.  Volunteer firefighters responding to or assisting with
443	fire or medical emergencies whether or not the firefighters are
444	on duty.
445	(c)  "Employment" does not include service performed by or
446	as:
447	1.  Domestic servants in private homes.
448	2.  Agricultural labor performed on a farm in the employ of
449	a bona fide farmer, or association of farmers, that employs 5 or
450	fewer regular employees and that employs fewer than 12 other
451	employees at one time for seasonal agricultural labor that is
452	completed in less than 30 days, provided such seasonal
453	employment does not exceed 45 days in the same calendar year.
454	The term "farm" includes stock, dairy, poultry, fruit, fur-
455	bearing animals, fish, and truck farms, ranches, nurseries, and
456	orchards. The term "agricultural labor" includes field foremen,
457	timekeepers, checkers, and other farm labor supervisory
458	personnel.
459	3.  Professional athletes, such as professional boxers,
460	wrestlers, baseball, football, basketball, hockey, polo, tennis,
461	jai alai, and similar players, and motorsports teams competing
462	in a motor racing event as defined in s. 549.08.
463	4.  Labor under a sentence of a court to perform community
464	services as provided in s. 316.193.
465	5.  State prisoners or county inmates, except those
466	performing services for private employers or those enumerated in
467	s. 948.03(8)(a).
468	Section 6.  Subsection (3) of section 440.04, Florida
469	Statutes, is amended to read:
470	440.04  Waiver of exemption.--
471	(3)  A corporate officer who has elected alternative
472	coverage under exempted herself or himself by proper notice from
473	the operation of this chapter may at any time revoke such
474	election exemption and thereby accept the provisions of this
475	chapter by giving notice as provided in s. 440.05.
476	Section 7.  Section 440.05, Florida Statutes, is amended to
477	read:
478	440.05  Election of alternative coverage exemption;
479	revocation of election; notice; certification.--
480	(1)  Each corporate officer who elects alternative coverage
481	under not to accept the provisions of this chapter or who, after
482	making electing such election exemption, revokes that election
483	exemption shall mail to the department in Tallahassee notice to
484	such effect in accordance with a form to be prescribed by the
485	department.
486	(2)  Each sole proprietor or partner who elects alternative
487	coverage under this chapter to be included in the definition of
488	"employee" or who, after such election, revokes that election
489	must mail to the department in Tallahassee notice to such
490	effect, in accordance with a form to be prescribed by the
491	department.
492	(3)  Each officer of a corporation who is engaged in the
493	construction industry and who elects alternative coverage under
494	an exemption from this chapter or who, after making electing
495	such election exemption, revokes that election exemption, must
496	mail a written notice to such effect to the department on a form
497	prescribed by the department. The notice of election of
498	alternative coverage to be exempt from the provisions of this
499	chapter must be notarized and under oath. The notice of election
500	that to be exempt which is submitted to the department by the
501	officer of a corporation who is allowed to do so claim an
502	exemption as provided by this chapter must list the name,
503	federal tax identification number, social security number, all
504	certified or registered licenses issued pursuant to chapter 489
505	held by the person seeking the alternative coverage exemption, a
506	copy of relevant documentation as to employment status filed
507	with the Internal Revenue Service as specified by the
508	department, a copy of the relevant occupational license in the
509	primary jurisdiction of the business, and the registration
510	number of the corporation filed with the Division of
511	Corporations of the Department of State along with a copy of the
512	stock certificate evidencing the required ownership under this
513	chapter. The notice of election to be exempt must identify each
514	corporation that employs the person making the election electing
515	the exemption and must list the social security number or
516	federal tax identification number of each such employer and the
517	additional documentation required by this section. In addition,
518	the notice of election to be exempt must provide that the
519	officer electing an exemption is not entitled to benefits under
520	this chapter, must provide that the election does not exceed
521	exemption limits for officers provided in s. 440.02, and must
522	certify that any employees of the corporation whose officer
523	elects alternative coverage an exemption are covered by workers'
524	compensation insurance or, if applicable, alternative coverage.
525	Upon receipt of the notice of the election to be exempt, receipt
526	of all application fees, and a determination by the department
527	that the notice meets the requirements of this subsection, the
528	department shall issue a certification of the election to the
529	officer, unless the department determines that the information
530	contained in the notice is invalid. The department shall revoke
531	a certificate of election to be exempt from coverage upon a
532	determination by the department that the person does not meet
533	the requirements for alternative coverage exemption or that the
534	information contained in the notice of election to be exempt is
535	invalid. The certificate of election must list the name of the
536	corporation listed in the notice of election request for
537	exemption. A new certificate of election must be obtained each
538	time the person is employed by a new or different corporation
539	that is not listed on the certificate of election. A copy of the
540	certificate of election must be sent to each workers'
541	compensation carrier identified in the request for exemption.
542	Upon filing a notice of revocation of election, an officer who
543	is a subcontractor or an officer of a corporate subcontractor
544	must notify her or his contractor. Upon revocation of a
545	certificate of election of exemption by the department, the
546	department shall notify the workers' compensation carriers
547	identified in the notice of election request for exemption.
548	(4)  The notice of election of alternative coverage to be
549	exempt from the provisions of this chapter must contain a notice
550	that clearly states in substance the following: "Any person who,
551	knowingly and with intent to injure, defraud, or deceive the
552	department or any employer or employee, insurance company, or
553	any other person, files a notice of election of alternative
554	coverage to be exempt containing any false or misleading
555	information is guilty of a felony of the third degree." Each
556	person filing a notice of election to be exempt shall personally
557	sign the notice and attest that he or she has reviewed,
558	understands, and acknowledges the foregoing notice.
559	(5)  A notice given under subsection (1), subsection (2),
560	or subsection (3) shall become effective when issued by the
561	department or 30 days after an application for alternative
562	coverage an exemption is received by the department, whichever
563	occurs first. However, if an accident or occupational disease
564	occurs less than 30 days after the effective date of the
565	insurance policy under which the payment of compensation is
566	secured or the date the employer qualified as a self-insurer,
567	such notice is effective as of 12:01 a.m. of the day following
568	the date it is mailed to the department in Tallahassee.
569	(6)  A construction industry certificate of election of
570	alternative coverage to be exempt which is issued in accordance
571	with this section shall be valid for 2 years after the effective
572	date stated thereon. Both the effective date and the expiration
573	date must be listed on the face of the certificate by the
574	department. The construction industry certificate must expire at
575	midnight, 2 years from its issue date, as noted on the face of
576	the exemption certificate. Any person who has received from the
577	department a construction industry certificate of election to be
578	exempt which is in effect on December 31, 1998, shall file a new
579	notice of election to be exempt by the last day in his or her
580	birth month following December 1, 1998. A construction industry
581	certificate of election to be exempt may be revoked before its
582	expiration by the officer for whom it was issued or by the
583	department for the reasons stated in this section.  At least 60
584	days prior to the expiration date of a construction industry
585	certificate of election exemption issued after December 1, 1998,
586	the department shall send notice of the expiration date and an
587	application for renewal to the certificateholder at the address
588	on the certificate.
589	(7)  Any contractor responsible for compensation under s.
590	440.10 may register in writing with the workers' compensation
591	carrier for any subcontractor and shall thereafter be entitled
592	to receive written notice from the carrier of any cancellation
593	or nonrenewal of the policy.
594	(8)(a)  The department must assess a fee of $50 with each
595	request for a construction industry certificate of election of
596	alternative coverage to be exempt or renewal of election of
597	alternative coverage to be exempt under this section.
598	(b)  The funds collected by the department shall be used to
599	administer this section, to audit the businesses that pay the
600	fee for compliance with any requirements of this chapter, and to
601	enforce compliance with the provisions of this chapter.
602	(9)  The department may by rule prescribe forms and
603	procedures for filing an election of alternative coverage
604	exemption, revocation of election to be exempt, and notice of
605	election of coverage for all employers and require specified
606	forms to be submitted by all employers in filing for the
607	election of alternative coverage exemption. The department may
608	by rule prescribe forms and procedures for issuing a certificate
609	of the election of alternative coverage exemption.
610	(10)  Each officer of a corporation who is actively engaged
611	in the construction industry and who elects alternative coverage
612	an exemption from this chapter shall maintain business records
613	as specified by the department by rule, which rules must include
614	the provision that any corporation with exempt officers having
615	alternative coverage engaged in the construction industry must
616	maintain written statements of those exempted persons
617	affirmatively acknowledging each such individual's exempt
618	status.
619	(11)  Any corporate officer permitted by this chapter to
620	elect alternative coverage claim an exemption must be listed on
621	the records of this state's Secretary of State, Division of
622	Corporations, as a corporate officer. The department shall issue
623	a stop-work order under s. 440.107(1) to any corporation who
624	employs a person who claims to be eligible for alternative
625	coverage under this chapter exempt as a corporate officer but
626	who fails or refuses to produce the documents required under
627	this subsection to the department within 3 business days after
628	the request is made.
629	(12)  Certificates of election of alternative coverage to
630	be exempt issued under subsection (3) shall apply only to the
631	corporate officer named on the notice of election to be exempt
632	and apply only within the scope of the business or trade listed
633	on the notice of election to be exempt.
634	(13)  Notices of election of alternative coverage to be
635	exempt and certificates of election of alternative coverage to
636	be exempt shall be subject to revocation if, at any time after
637	the filing of the notice or the issuance of the certificate, the
638	person named on the notice or certificate no longer meets the
639	requirements of this section for issuance of a certificate. The
640	department shall revoke a certificate at any time for failure of
641	the person named on the certificate to meet the requirements of
642	this section.
643	(14)  An officer of a corporation who elects alternative
644	coverage exemption from this chapter by filing a certificate of
645	election under this section may not recover benefits or
646	compensation under this chapter other than the benefits provided
647	by the alternative coverage. For purposes of determining the
648	appropriate premium for workers' compensation coverage, carriers
649	may not consider any officer of a corporation who validly meets
650	the requirements of this section to be an employee.
651	(15)  Any corporate officer who is an affiliated person of
652	a person who is delinquent in paying a stop-work order and
653	penalty assessment order issued pursuant to s. 440.107, or owed
654	pursuant to a court order, is ineligible for an election of
655	alternative coverage exemption. The stop-work order and penalty
656	assessment shall be in effect against any such affiliated
657	person. As used in this subsection, the term "affiliated person"
658	means:
659	(a)  The spouse of such other person;
660	(b)  Any person who directly or indirectly owns or
661	controls, or holds with the power to vote, 10 percent or more of
662	the outstanding voting securities of such other person;
663	(c)  Any person who directly or indirectly owns 10 percent
664	or more of the outstanding voting securities that are directly
665	or indirectly owned, controlled, or held with the power to vote
666	by such other person;
667	(d)  Any person or group of persons who directly or
668	indirectly control, are controlled by, or are under common
669	control with such other person;
670	(e)  Any person who directly or indirectly acquires all or
671	substantially all of the other assets of such other person;
672	(f)  Any officer, director, trustee, partner, owner,
673	manager, joint venturer, or employee of such other person or a
674	person performing duties similar to persons in such positions;
675	or
676	(g)  Any person who has an officer, director, trustee,
677	partner, or joint venturer in common with such person.
678	Section 8.  Paragraphs (c) and (d) of subsection (1) of
679	section 440.10, Florida Statutes, are amended to read:
680	440.10  Liability for compensation.--
681	(1)
682	(c)  A contractor shall require a subcontractor to provide
683	evidence of workers' compensation insurance. A subcontractor who
684	is a corporation and has an officer who elects alternative
685	coverage to be exempt as permitted under this chapter shall
686	provide a copy of his or her certificate of alternative coverage
687	exemption to the contractor.
688	(d)1.  If a contractor becomes liable for the payment of
689	compensation to the employees of a subcontractor who has failed
690	to secure such payment in violation of s. 440.38, the contractor
691	or other third-party payor shall be entitled to recover from the
692	subcontractor all benefits paid or payable plus interest unless
693	the contractor and subcontractor have agreed in writing that the
694	contractor will provide coverage.
695	2.  If a contractor or third-party payor becomes liable for
696	the payment of compensation to the corporate officer of a
697	subcontractor who is engaged in the construction industry and
698	has elected alternative coverage under to be exempt from the
699	provisions of this chapter, but whose election is invalid, the
700	contractor or third-party payor may recover from the claimant or
701	corporation all benefits paid or payable plus interest, unless
702	the contractor and the subcontractor have agreed in writing that
703	the contractor will provide coverage.
704	Section 9.  Paragraph (a) of subsection (2) and paragraph
705	(b) of subsection (4) of section 440.105, Florida Statutes, are
706	amended to read:
707	440.105  Prohibited activities; reports; penalties;
708	limitations.--
709	(2)  Whoever violates any provision of this subsection
710	commits a misdemeanor of the first degree, punishable as
711	provided in s. 775.082 or s. 775.083.
712	(a)  It shall be unlawful for any employer to knowingly:
713	1.  Coerce or attempt to coerce, as a precondition to
714	employment or otherwise, an employee to obtain a certificate of
715	election of alternative coverage exemption pursuant to s.
716	440.05.
717	2.  Discharge or refuse to hire an employee or job
718	applicant because the employee or applicant has filed a claim
719	for benefits under this chapter.
720	3.  Discharge, discipline, or take any other adverse
721	personnel action against any employee for disclosing information
722	to the department or any law enforcement agency relating to any
723	violation or suspected violation of any of the provisions of
724	this chapter or rules promulgated hereunder.
725	4.  Violate a stop-work order issued by the department
726	pursuant to s. 440.107.
727	(4)  Whoever violates any provision of this subsection
728	commits insurance fraud, punishable as provided in paragraph
729	(f).
730	(b)  It shall be unlawful for any person:
731	1.  To knowingly make, or cause to be made, any false,
732	fraudulent, or misleading oral or written statement for the
733	purpose of obtaining or denying any benefit or payment under
734	this chapter.
735	2.  To present or cause to be presented any written or oral
736	statement as part of, or in support of, a claim for payment or
737	other benefit pursuant to any provision of this chapter, knowing
738	that such statement contains any false, incomplete, or
739	misleading information concerning any fact or thing material to
740	such claim.
741	3.  To prepare or cause to be prepared any written or oral
742	statement that is intended to be presented to any employer,
743	insurance company, or self-insured program in connection with,
744	or in support of, any claim for payment or other benefit
745	pursuant to any provision of this chapter, knowing that such
746	statement contains any false, incomplete, or misleading
747	information concerning any fact or thing material to such claim.
748	4.  To knowingly assist, conspire with, or urge any person
749	to engage in activity prohibited by this section.
750	5.  To knowingly make any false, fraudulent, or misleading
751	oral or written statement, or to knowingly omit or conceal
752	material information, required by s. 440.185 or s. 440.381, for
753	the purpose of obtaining workers' compensation coverage or for
754	the purpose of avoiding, delaying, or diminishing the amount of
755	payment of any workers' compensation premiums.
756	6.  To knowingly misrepresent or conceal payroll,
757	classification of workers, or information regarding an
758	employer's loss history which would be material to the
759	computation and application of an experience rating modification
760	factor for the purpose of avoiding or diminishing the amount of
761	payment of any workers' compensation premiums.
762	7.  To knowingly present or cause to be presented any
763	false, fraudulent, or misleading oral or written statement to
764	any person as evidence of compliance with s. 440.38 or, as
765	evidence of eligibility for a certificate of alternative
766	coverage exemption under s. 440.05.
767	8.  To knowingly violate a stop-work order issued by the
768	department pursuant to s. 440.107.
769	9.  To knowingly present or cause to be presented any
770	false, fraudulent, or misleading oral or written statement to
771	any person as evidence of identity for the purpose of obtaining
772	employment or filing or supporting a claim for workers'
773	compensation benefits.
774	(f)  If the monetary value of any violation of this
775	subsection:
776	1.  Is less than $20,000, the offender commits a felony of
777	the third degree, punishable as provided in s. 775.082, s.
778	775.083, or s. 775.084.
779	2.  Is $20,000 or more, but less than $100,000, the
780	offender commits a felony of the second degree, punishable as
781	provided in s. 775.082, s. 775.083, or s. 775.084.
782	3.  Is $100,000 or more, the offender commits a felony of
783	the first degree, punishable as provided in s. 775.082, s.
784	775.083, or s. 775.084.
785	Section 10.  Paragraph (d) of subsection (5) of section
786	489.115, Florida Statutes, is amended to read:
787	489.115  Certification and registration; endorsement;
788	reciprocity; renewals; continuing education.--
789	(5)
790	(d)  An applicant for initial issuance of a certificate or
791	registration shall submit as a prerequisite to qualifying for
792	alternative an exemption from workers' compensation coverage
793	requirements under s. 440.05 an affidavit attesting to the fact
794	that the applicant will obtain such alternative coverage an
795	exemption within 30 days after the date the initial certificate
796	or registration is issued by the board.
797	Section 11.  Paragraph (b) of subsection (3) of section
798	489.515, Florida Statutes, is amended to read:
799	489.515  Issuance of certificates; registrations.--
800	(3)
801	(b)  An applicant for initial issuance of a certificate or
802	registration shall submit as a prerequisite to qualifying for
803	alternative an exemption from workers' compensation coverage
804	requirements under s. 440.05 an affidavit attesting to the fact
805	that the applicant will obtain such alternative coverage an
806	exemption within 30 days after the date the initial certificate
807	or registration is issued by the board.
808	Section 12.  Except for this section and section
809	440.095(9), Florida Statutes, as created by section 4 of this
810	act, which shall take effect upon becoming a law, this act shall
811	take effect January 1, 2005.

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