Amendment
Bill No. 0967

Amendment No. 678715

CHAMBER ACTION
Senate		House
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1	Representative Cannon offered the following:
2
3	Amendment (with title amendment)
4	Remove lines 105-494 and insert:
5	Section 2.  Subsections (2), (3), and (4) of section
6	440.105, Florida Statutes, are amended to read:
7	440.105  Prohibited activities; reports; penalties;
8	limitations.--
9	(2)  Whoever violates any provision of this subsection
10	commits a misdemeanor of the first degree, punishable as
11	provided in s. 775.082 or s. 775.083.
12	(a)  It shall be unlawful for any employer to knowingly:
13	1.  Coerce or attempt to coerce, as a precondition to
14	employment or otherwise, an employee to obtain a certificate of
15	election of exemption pursuant to s. 440.05.
16	2.  Discharge or refuse to hire an employee or job
17	applicant because the employee or applicant has filed a claim
18	for benefits under this chapter.
19	3.  Discharge, discipline, or take any other adverse
20	personnel action against any employee for disclosing information
21	to the department or any law enforcement agency relating to any
22	violation or suspected violation of any of the provisions of
23	this chapter or rules promulgated hereunder.
24	4.  Violate a stop-work order issued by the department
25	pursuant to s. 440.107.
26	(b)  It shall be unlawful for any insurance entity to
27	revoke or cancel a workers' compensation insurance policy or
28	membership because an employer has returned an employee to work
29	or hired an employee who has filed a workers' compensation
30	claim.
31	(3)  Whoever violates any provision of this subsection
32	commits a misdemeanor of the first degree, punishable as
33	provided in s. 775.082 or s. 775.083.
34	(a)  It shall be unlawful for any employer to knowingly
35	fail to update applications for coverage as required by s.
36	440.381(1) and department rules within 7 days after the
37	reporting date for any change in the required information, or to
38	post notice of coverage pursuant to s. 440.40.
39	(b)  It shall be unlawful for any employer to knowingly
40	participate in the creation of the employment relationship in
41	which the employee has used any false, fraudulent, or misleading
42	oral or written statement as evidence of identity.
43	(b)(c)  It is unlawful for any attorney or other person, in
44	his or her individual capacity or in his or her capacity as a
45	public or private employee, or for any firm, corporation,
46	partnership, or association to receive any fee or other
47	consideration or any gratuity from a person on account of
48	services rendered for a person in connection with any
49	proceedings arising under this chapter, unless such fee,
50	consideration, or gratuity is approved by a judge of
51	compensation claims or by the Deputy Chief Judge of Compensation
52	Claims.
53	(4)  Unless otherwise specifically provided, whoever
54	violates any provision of this subsection commits insurance
55	fraud, punishable as provided in paragraph (f).
56	(a)  It shall be unlawful for any employer to knowingly:
57	1.  Present or cause to be presented any false, fraudulent,
58	or misleading oral or written statement to any person as
59	evidence of compliance with s. 440.38.
60	2.  Make a deduction from the pay of any employee entitled
61	to the benefits of this chapter for the purpose of requiring the
62	employee to pay any portion of premium paid by the employer to a
63	carrier or to contribute to a benefit fund or department
64	maintained by such employer for the purpose of providing
65	compensation or medical services and supplies as required by
66	this chapter.
67	3.  Fail to secure workers' payment of compensation if
68	required to do so by this chapter.
69	a.  However, if an employer knowingly fails to secure
70	workers' compensation coverage for an employee when required by
71	this chapter and such employee subsequently suffers a work-
72	related injury requiring medical treatment, the employer commits
73	a felony of the second degree, punishable as provided in s.
74	775.082, s. 775.083, or s. 775.084.
75	b.  However, if an employer knowingly fails to secure
76	workers' compensation coverage for an employee when required by
77	this chapter and such employee subsequently suffers a work-
78	related death, the employer commits a felony of the first
79	degree, punishable as provided in s. 775.082, s. 775.083, or s.
80	775.084.
81	(b)  It is shall be unlawful for any person:
82	1.  To knowingly make, or cause to be made, any false,
83	fraudulent, or misleading oral or written statement for the
84	purpose of obtaining or denying any benefit or payment under
85	this chapter.
86	2.  To present or cause to be presented any written or oral
87	statement as part of, or in support of, a claim for payment or
88	other benefit pursuant to any provision of this chapter, knowing
89	that such statement contains any false, incomplete, or
90	misleading information concerning any fact or thing material to
91	such claim.
92	3.  To prepare or cause to be prepared any written or oral
93	statement that is intended to be presented to any employer,
94	insurance company, or self-insured program in connection with,
95	or in support of, any claim for payment or other benefit
96	pursuant to any provision of this chapter, knowing that such
97	statement contains any false, incomplete, or misleading
98	information concerning any fact or thing material to such claim.
99	4.  To knowingly assist, conspire with, or urge any person
100	to engage in activity prohibited by this section.
101	5.  To knowingly make any false, fraudulent, or misleading
102	oral or written statement, or to knowingly omit or conceal
103	material information, required by s. 440.185 or s. 440.381, for
104	the purpose of obtaining workers' compensation coverage or for
105	the purpose of avoiding, delaying, or diminishing the amount of
106	payment of any workers' compensation premiums.
107	6.  To knowingly misrepresent or conceal payroll,
108	classification of workers, or information regarding an
109	employer's loss history which would be material to the
110	computation and application of an experience rating modification
111	factor for the purpose of avoiding or diminishing the amount of
112	payment of any workers' compensation premiums.
113	7.  To knowingly present or cause to be presented any
114	false, fraudulent, or misleading oral or written statement to
115	any person as evidence of compliance with s. 440.38, as evidence
116	of eligibility for a certificate of exemption under s. 440.05.
117	8.  To knowingly violate a stop-work order issued by the
118	department pursuant to s. 440.107.
119	9.  To knowingly present or cause to be presented any
120	false, fraudulent, or misleading oral or written statement to
121	any person as evidence of identity for the purpose of obtaining
122	employment or filing or supporting a claim for workers'
123	compensation benefits.
124	(c)  It shall be unlawful for any physician licensed under
125	chapter 458, osteopathic physician licensed under chapter 459,
126	chiropractic physician licensed under chapter 460, podiatric
127	physician licensed under chapter 461, optometric physician
128	licensed under chapter 463, or any other practitioner licensed
129	under the laws of this state to knowingly and willfully assist,
130	conspire with, or urge any person to fraudulently violate any of
131	the provisions of this chapter.
132	(d)  It shall be unlawful for any person or governmental
133	entity licensed under chapter 395 to maintain or operate a
134	hospital in such a manner so that such person or governmental
135	entity knowingly and willfully allows the use of the facilities
136	of such hospital by any person, in a scheme or conspiracy to
137	fraudulently violate any of the provisions of this chapter.
138	(e)  It shall be unlawful for any attorney or other person,
139	in his or her individual capacity or in his or her capacity as a
140	public or private employee, or any firm, corporation,
141	partnership, or association, to knowingly assist, conspire with,
142	or urge any person to fraudulently violate any of the provisions
143	of this chapter.
144	(f)  If the monetary value of any violation of this
145	subsection:
146	1.  Is less than $20,000, the offender commits a felony of
147	the third degree, punishable as provided in s. 775.082, s.
148	775.083, or s. 775.084.
149	2.  Is $20,000 or more, but less than $100,000, the
150	offender commits a felony of the second degree, punishable as
151	provided in s. 775.082, s. 775.083, or s. 775.084.
152	3.  Is $100,000 or more, the offender commits a felony of
153	the first degree, punishable as provided in s. 775.082, s.
154	775.083, or s. 775.084.
155	Section 3.  Section 448.09, Florida Statutes, is amended to
156	read:
157	448.09  Unauthorized aliens; employment prohibited.--
158	(1)  It is shall be unlawful for any person knowingly to
159	employ, hire, recruit, or refer, either for herself or himself
160	or on behalf of another, for private or public employment within
161	the state, an alien who is not duly authorized to work by the
162	immigration laws or the Attorney General of the United States.
163	(2)  It is unlawful to knowingly present or cause to be
164	presented any false, fraudulent, or misleading oral or written
165	statements to any person as evidence of identity for the purpose
166	of obtaining employment. The first violation of subsection (1)
167	shall be a noncriminal violation as defined in s. 775.08(3) and,
168	upon conviction, shall be punishable as provided in s.
169	775.082(5) by a civil fine of not more than $500, regardless of
170	the number of aliens with respect to whom the violation
171	occurred.
172	(3)  Any person who violates has been previously convicted
173	for a violation of subsection (1) or subsection (2) is and who
174	thereafter violates subsection (1), shall be guilty of a
175	misdemeanor of the first second degree, punishable as provided
176	in s. 775.082 or s. 775.083. Any such subsequent violation of
177	this section shall constitute a separate offense with respect to
178	each unauthorized alien.
179	Section 4.  Section 624.15, Florida Statutes, is amended to
180	read:
181	624.15  General penalty.--
182	(1)  Each willful violation of this code or rule of the
183	department, office, or commission as to which a greater penalty
184	is not provided by another provision of this code or rule of the
185	department, office, or commission or by other applicable laws of
186	this state is a misdemeanor of the second degree and is, in
187	addition to any prescribed applicable denial, suspension, or
188	revocation of certificate of authority, license, or permit,
189	punishable as provided in s. 775.082 or s. 775.083. Each
190	instance of such violation shall be considered a separate
191	offense.
192	(2)  Each willful violation of an emergency rule or order
193	of the department, office, or commission by a person who is not
194	licensed, authorized, or eligible to engage in business in
195	accordance with the Florida Insurance Code is a felony of the
196	third degree, punishable as provided in s. 775.082, s. 775.083,
197	or s. 775.084. Each instance of such violation is a separate
198	offense. This subsection does not apply to licensees or
199	affiliated parties of licensees.
200	Section 5.  Subsection (2) of section 624.155, Florida
201	Statutes, is amended to read:
202	624.155  Civil remedy.--
203	(2)  Any party may bring a civil action against any person
204	acting as an unauthorized insurer without a certificate of
205	authority if such party is damaged by a violation of s. 624.401
206	by that person the unauthorized insurer.
207	Section 6.  Subsection (9) is added to section 626.112,
208	Florida Statutes, to read:
209	626.112  License and appointment required; agents, customer
210	representatives, adjusters, insurance agencies, service
211	representatives, managing general agents.--
212	(9)  Any person who transacts insurance or otherwise
213	engages in insurance activities in this state without a license
214	in violation of this section commits a felony of the third
215	degree, punishable as provided in s. 775.082, s. 775.083, or s.
216	775.084.
217	Section 7.  Paragraph (d) of subsection (4) of section
218	626.901, Florida Statutes, is amended to read:
219	626.901  Representing or aiding unauthorized insurer
220	prohibited.--
221	(4)  This section does not apply to:
222	(d)  Independently procured coverage written pursuant to s.
223	626.938 which is not solicited, marketed, or sold within this
224	state.
225	Section 8.  Section 626.918, Florida Statutes, is amended
226	to read:
227	626.918  Eligible surplus lines insurers.--
228	(1)  A No surplus lines agent may not shall place any
229	coverage with any unauthorized insurer which is not then an
230	eligible surplus lines insurer, except as permitted under
231	subsections (6)(5) and (7)(6).
232	(2)  An No unauthorized insurer may not shall be or become
233	an eligible surplus lines insurer unless made eligible by the
234	office in accordance with the following conditions:
235	(a)  Eligibility of the insurer must be requested in
236	writing by the Florida Surplus Lines Service Office;
237	(b)  The insurer must be currently an authorized insurer in
238	the state or country of its domicile as to the kind or kinds of
239	insurance proposed to be so placed and must have been such an
240	insurer for not less than the 3 years next preceding or must be
241	the wholly owned subsidiary of such authorized insurer or must
242	be the wholly owned subsidiary of an already eligible surplus
243	lines insurer as to the kind or kinds of insurance proposed for
244	a period of not less than the 3 years next preceding. However,
245	the office may waive the 3-year requirement if the insurer
246	provides a product or service not readily available to the
247	consumers of this state or has operated successfully for a
248	period of at least 1 year next preceding and has capital and
249	surplus of not less than $25 million;
250	(c)  Before granting eligibility, the requesting surplus
251	lines agent or the insurer shall furnish the office with a duly
252	authenticated copy of its current annual financial statement in
253	the English language and with all monetary values therein
254	expressed in United States dollars, at an exchange rate (in the
255	case of statements originally made in the currencies of other
256	countries) then-current and shown in the statement, and with
257	such additional information relative to the insurer as the
258	office may request;
259	(d)1.  The insurer must have and maintain surplus as to
260	policyholders of not less than $15 million; in addition, an
261	alien insurer must also have and maintain in the United States a
262	trust fund for the protection of all its policyholders in the
263	United States under terms deemed by the office to be reasonably
264	adequate, in an amount not less than $5.4 million. Any such
265	surplus as to policyholders or trust fund shall be represented
266	by investments consisting of eligible investments for like funds
267	of like domestic insurers under part II of chapter 625 provided,
268	however, that in the case of an alien insurance company, any
269	such surplus as to policyholders may be represented by
270	investments permitted by the domestic regulator of such alien
271	insurance company if such investments are substantially similar
272	in terms of quality, liquidity, and security to eligible
273	investments for like funds of like domestic insurers under part
274	II of chapter 625. Clean, irrevocable, unconditional, and
275	evergreen letters of credit issued or confirmed by a qualified
276	United States financial institution, as defined in subsection
277	(3), may be used to fund the trust;
278	2.  For those surplus lines insurers that were eligible on
279	January 1, 1994, and that maintained their eligibility
280	thereafter, the required surplus as to policyholders shall be:
281	a.  On December 31, 1994, and until December 30, 1995, $2.5
282	million.
283	b.  On December 31, 1995, and until December 30, 1996, $3.5
284	million.
285	c.  On December 31, 1996, and until December 30, 1997, $4.5
286	million.
287	d.  On December 31, 1997, and until December 30, 1998, $5.5
288	million.
289	e.  On December 31, 1998, and until December 30, 1999, $6.5
290	million.
291	f.  On December 31, 1999, and until December 30, 2000, $8
292	million.
293	g.  On December 31, 2000, and until December 30, 2001, $9.5
294	million.
295	h.  On December 31, 2001, and until December 30, 2002, $11
296	million.
297	i.  On December 31, 2002, and until December 30, 2003, $13
298	million.
299	j.  On December 31, 2003, and thereafter, $15 million.
300	3.  The capital and surplus requirements as set forth in
301	subparagraph 2. do not apply in the case of an insurance
302	exchange created by the laws of individual states, where the
303	exchange maintains capital and surplus pursuant to the
304	requirements of that state, or maintains capital and surplus in
305	an amount not less than $50 million in the aggregate. For an
306	insurance exchange which maintains funds in the amount of at
307	least $12 million for the protection of all insurance exchange
308	policyholders, each individual syndicate shall maintain minimum
309	capital and surplus in an amount not less than $3 million. If
310	the insurance exchange does not maintain funds in the amount of
311	at least $12 million for the protection of all insurance
312	exchange policyholders, each individual syndicate shall meet the
313	minimum capital and surplus requirements set forth in
314	subparagraph 2.;
315	4.  A surplus lines insurer which is a member of an
316	insurance holding company that includes a member which is a
317	Florida domestic insurer as set forth in its holding company
318	registration statement, as set forth in s. 628.801 and rules
319	adopted thereunder, may elect to maintain surplus as to
320	policyholders in an amount equal to the requirements of s.
321	624.408, subject to the requirement that the surplus lines
322	insurer shall at all times be in compliance with the
323	requirements of chapter 625.
324
325	The election shall be submitted to the office and shall be
326	effective upon the office's being satisfied that the
327	requirements of subparagraph 4. have been met. The initial date
328	of election shall be the date of office approval. The election
329	approval application shall be on a form adopted by commission
330	rule. The office may approve an election form submitted pursuant
331	to subparagraph 4. only if it was on file with the former
332	Department of Insurance before February 28, 1998;
333	(e)  The insurer must be of good reputation as to the
334	providing of service to its policyholders and the payment of
335	losses and claims;
336	(f)  The insurer must be eligible, as for authority to
337	transact insurance in this state, under s. 624.404(3); and
338	(g)  This subsection does not apply as to unauthorized
339	insurers made eligible under s. 626.917 as to wet marine and
340	aviation risks.
341	(3)  For purposes of subsection (2) relating to letters of
342	credit, the term "qualified United States financial institution"
343	means an institution that:
344	(a)  Is organized or, in the case of a United States office
345	of a foreign banking organization, is licensed under the laws of
346	the United States or any state thereof.
347	(b)  Is regulated, supervised, and examined by United
348	States or state authorities having regulatory authority over
349	banks and trust companies.
350	(c)  Has been determined by the office or the Securities
351	Valuation Office of the National Association of Insurance
352	Commissioners to meet such standards of financial condition and
353	standing as are considered necessary and appropriate to regulate
354	the quality of financial institutions whose letters of credit
355	are acceptable to the office.
356	(4)(3)  The office shall from time to time publish a list
357	of all currently eligible surplus lines insurers and shall mail
358	a copy thereof to each licensed surplus lines agent at his or
359	her office of record with the office.
360	(5)(4)  This section shall not be deemed to cast upon the
361	office any duty or responsibility to determine the actual
362	financial condition or claims practices of any unauthorized
363	insurer; and the status of eligibility, if granted by the
364	office, shall indicate only that the insurer appears to be sound
365	financially and to have satisfactory claims practices and that
366	the office has no credible evidence to the contrary.
367	(6)(5)  When it appears that any particular insurance risk
368	which is eligible for export, but on which insurance coverage,
369	in whole or in part, is not procurable from the eligible surplus
370	lines insurers, after a search of eligible surplus lines
371	insurers, then the surplus lines agent may file a supplemental
372	signed statement setting forth such facts and advising the
373	office that such part of the risk as shall be unprocurable, as
374	aforesaid, is being placed with named unauthorized insurers, in
375	the amounts and percentages set forth in the statement. Such
376	named unauthorized insurer shall, however, before accepting any
377	risk in this state, deposit with the department cash or
378	securities acceptable to the office and department of the market
379	value of $50,000 for each individual risk, contract, or
380	certificate, which deposit shall be held by the department for
381	the benefit of Florida policyholders only; and the surplus lines
382	agent shall procure from such unauthorized insurer and file with
383	the office a certified copy of its statement of condition as of
384	the close of the last calendar year. If such statement reveals,
385	including both capital and surplus, net assets of at least that
386	amount required for licensure of a domestic insurer, then the
387	surplus lines agent may proceed to consummate such contract of
388	insurance. Whenever any insurance risk, or any part thereof, is
389	placed with an unauthorized insurer, as provided herein, the
390	policy, binder, or cover note shall contain a statement signed
391	by the insured and the agent with the following notation: "The
392	insured is aware that certain insurers participating in this
393	risk have not been approved to transact business in Florida nor
394	have they been declared eligible as surplus lines insurers by
395	the Office of Insurance Regulation of Florida. The placing of
396	such insurance by a duly licensed surplus lines agent in Florida
397	shall not be construed as approval of such insurer by the Office
398	of Insurance Regulation of Florida. Consequently, the insured is
399	aware that the insured has severely limited the assistance
400	available under the insurance laws of Florida. The insured is
401	further aware that he or she may be charged a reasonable per
402	policy fee, as provided in s. 626.916(4), Florida Statutes, for
403	each policy certified for export." All other provisions of this
404	code shall apply to such placement the same as if such risks
405	were placed with an eligible surplus lines insurer.
406	(7)(6)  When any particular insurance risk subject to
407	subsection (6)(5) is eligible for placement with an unauthorized
408	insurer and not more than 12.5 percent of the risk is so
409	subject, the office may, at its discretion, permit the agent to
410	obtain from the insured a signed statement as indicated in
411	subsection (6)(5). All other provisions of this code apply to
412	such placement the same as if such risks were placed with an
413	eligible surplus lines insurer.
414	Section 9.  Subsections (1), (2), and (9) of section
415	626.938, Florida Statutes, are amended to read:
416	626.938  Report and tax of independently procured
417	coverages.--
418	(1)  Every insured who in this state procures or causes to
419	be procured or continues or renews insurance from another state
420	or country with an unauthorized foreign or alien insurer
421	legitimately licensed in that jurisdiction, or any self-insurer
422	who in this state so procures or continues excess loss,
423	catastrophe, or other insurance, upon a subject of insurance
424	resident, located, or to be performed within this state, other
425	than insurance procured through a surplus lines agent pursuant
426	to the Surplus Lines Law of this state or exempted from tax
427	under s. 626.932(4), shall, within 30 days after the date such
428	insurance was so procured, continued, or renewed, file a report
429	of the same with the Florida Surplus Lines Service Office in
430	writing and upon forms designated by the Florida Surplus Lines
431	Service Office and furnished to such an insured upon request, or
432	in a computer readable format as determined by the Florida
433	Surplus Lines Service Office. The report shall show the name and
434	address of the insured or insureds, the name and address of the
435	insurer, the subject of the insurance, a general description of
436	the coverage, the amount of premium currently charged therefor,
437	and such additional pertinent information as is reasonably
438	requested by the Florida Surplus Lines Service Office.
439	(2)  Any insurance on a risk located in this state in an
440	unauthorized insurer legitimately
441
442	================ T I T L E  A M E N D M E N T =============
443	Remove lines 14-19 and insert:
444	440.105, F.S.; deleting the provision that a violation of a
445	stop-work order is a misdemeanor of the first degree; increasing
446	penalties for employers unlawfully failing to secure workers'
447	compensation insurance when an employee is injured by or dies
448	from a work-related injury; deleting provisions relating to a
449	prohibition against employers participating in the creation of
450	employment relationships based on false, fraudulent, or
451	misleading information; deleting provisions relating to
452	presentation of false, fraudulent, or misleading information to
453	obtain employment; amending s. 448.09, F.S.; prohibiting the
454	presentation of certain false, fraudulent, or misleading
455	information for the purpose of obtaining employment; providing
456	penalties; revising penalties for unauthorized employment of
457	aliens; amending s. 624.15, F.S.; specifying

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