Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. SB 1582
       
       
       
       
       
       
                                Ì251016tÎ251016                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/13/2017           .                                
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       The Committee on Appropriations (Bradley) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (40) of section 440.02, Florida
    6  Statutes, is amended to read:
    7         440.02 Definitions.—When used in this chapter, unless the
    8  context clearly requires otherwise, the following terms shall
    9  have the following meanings:
   10         (40) “Specificity” means information on the petition for
   11  benefits sufficient to put the employer or carrier on notice of
   12  the exact statutory classification and outstanding time period
   13  for each requested benefit, the specific amount of each
   14  requested benefit, the calculation used for computing the
   15  requested benefit, of benefits being requested and includes a
   16  detailed explanation of any benefits received that should be
   17  increased, decreased, changed, or otherwise modified. If the
   18  petition is for medical benefits, the information must shall
   19  include specific details as to why such benefits are being
   20  requested, why such benefits are medically necessary, and why
   21  current treatment, if any, is not sufficient. Any petition
   22  requesting alternate or other medical care, including, but not
   23  limited to, petitions requesting psychiatric or psychological
   24  treatment, must specifically identify the physician, as defined
   25  in s. 440.13(1), who is recommending such treatment. A copy of a
   26  report from such physician making the recommendation for
   27  alternate or other medical care must shall also be attached to
   28  the petition. A judge of compensation claims may shall not order
   29  such treatment if a physician is not recommending such
   30  treatment.
   31         Section 2. Paragraph (c) of subsection (3) of section
   32  440.105, Florida Statutes, is amended to read:
   33         440.105 Prohibited activities; reports; penalties;
   34  limitations.—
   35         (3) Whoever violates any provision of this subsection
   36  commits a misdemeanor of the first degree, punishable as
   37  provided in s. 775.082 or s. 775.083.
   38         (c) Except for an attorney who is retained by or for an
   39  injured worker and who receives a fee or other consideration
   40  from or on behalf of such worker, it is unlawful for any
   41  attorney or other person, in his or her individual capacity or
   42  in his or her capacity as a public or private employee, or for
   43  any firm, corporation, partnership, or association to receive
   44  any fee or other consideration or any gratuity from a person on
   45  account of services rendered for a person in connection with any
   46  proceedings arising under this chapter, unless such fee,
   47  consideration, or gratuity is approved by a judge of
   48  compensation claims or by the Deputy Chief Judge of Compensation
   49  Claims.
   50         Section 3. Paragraph (f) of subsection (2), paragraphs (d)
   51  and (i) of subsection (3), paragraph (a) of subsection (4),
   52  paragraphs (a) and (c) of subsection (5), and paragraphs (c) and
   53  (d) of subsection (9) of section 440.13, Florida Statutes, are
   54  amended, to read:
   55         440.13 Medical services and supplies; penalty for
   56  violations; limitations.—
   57         (2) MEDICAL TREATMENT; DUTY OF EMPLOYER TO FURNISH.—
   58         (f) Upon the written request of the employee, the carrier
   59  shall give the employee the opportunity for one change of
   60  physician during the course of treatment for any one accident.
   61  Upon the granting of a change of physician, the originally
   62  authorized physician in the same specialty as the changed
   63  physician shall become deauthorized upon written notification by
   64  the employer or carrier. The carrier shall authorize an
   65  alternative physician who shall not be professionally affiliated
   66  with the previous physician within 5 business days after receipt
   67  of the request. If the carrier fails to provide a change of
   68  physician as requested by the employee, the employee may select
   69  the physician and such physician shall be considered authorized
   70  if the treatment being provided is compensable and medically
   71  necessary.
   72  
   73  Failure of the carrier to timely comply with this subsection
   74  shall be a violation of this chapter and the carrier shall be
   75  subject to penalties as provided for in s. 440.525.
   76         (3) PROVIDER ELIGIBILITY; AUTHORIZATION.—
   77         (d) A carrier must respond, by telephone or in writing,
   78  must authorize or deny to a request for authorization from an
   79  authorized health care provider by the close of the third
   80  business day after receipt of the request. A carrier authorizes
   81  the request if it who fails to respond to a written request for
   82  authorization for referral for medical treatment by the close of
   83  the third business day after receipt of the request consents to
   84  the medical necessity for such treatment. All such requests must
   85  be made to the carrier. Notice to the carrier does not include
   86  notice to the employer.
   87         (i) Notwithstanding paragraph (d), a claim for specialist
   88  consultations, surgical operations, physiotherapeutic or
   89  occupational therapy procedures, X-ray examinations, or special
   90  diagnostic laboratory tests that cost more than $1,000 and other
   91  specialty services that the department identifies by rule is not
   92  valid and reimbursable unless the services have been expressly
   93  authorized by the carrier, unless the carrier has failed to
   94  respond within 10 business days to a written request for
   95  authorization, or unless emergency care is required. The insurer
   96  shall authorize such consultation or procedure unless the health
   97  care provider or facility is not authorized, unless such
   98  treatment is not in accordance with practice parameters and
   99  protocols of treatment established in this chapter, or unless a
  100  judge of compensation claims has determined that the
  101  consultation or procedure is not medically necessary, not in
  102  accordance with the practice parameters and protocols of
  103  treatment established in this chapter, or otherwise not
  104  compensable under this chapter. Authorization of a treatment
  105  plan does not constitute express authorization for purposes of
  106  this section, except to the extent the carrier provides
  107  otherwise in its authorization procedures. This paragraph does
  108  not limit the carrier’s obligation to identify and disallow
  109  overutilization or billing errors.
  110         (4) NOTICE OF TREATMENT TO CARRIER; FILING WITH
  111  DEPARTMENT.—
  112         (a) Any health care provider providing necessary remedial
  113  treatment, care, or attendance to any injured worker shall
  114  submit treatment reports to the carrier in a format prescribed
  115  by the department. A claim for medical or surgical treatment is
  116  not valid or enforceable against such employer or employee,
  117  unless, by the close of the third business day following the
  118  first treatment, the physician providing the treatment furnishes
  119  to the employer or carrier a preliminary notice of the injury
  120  and treatment in a format prescribed by the department and,
  121  within 15 business days thereafter, furnishes to the employer or
  122  carrier a complete report, and subsequent thereto furnishes
  123  progress reports, if requested by the employer or insurance
  124  carrier, at intervals of not less than 15 business days 3 weeks
  125  apart or at less frequent intervals if requested in a format
  126  prescribed by the department.
  127         (5) INDEPENDENT MEDICAL EXAMINATIONS.—
  128         (a) In any dispute concerning overutilization, medical
  129  benefits, compensability, or disability under this chapter, the
  130  carrier or the employee may select an independent medical
  131  examiner. If the parties agree, the examiner may be a health
  132  care provider treating or providing other care to the employee.
  133  An independent medical examiner may not render an opinion
  134  outside his or her area of expertise, as demonstrated by
  135  licensure and applicable practice parameters. The employer and
  136  employee shall be entitled to only one independent medical
  137  examination per accident and not one independent medical
  138  examination per medical specialty. The party requesting and
  139  selecting the independent medical examination shall be
  140  responsible for all expenses associated with said examination,
  141  including, but not limited to, medically necessary diagnostic
  142  testing performed and physician or medical care provider fees
  143  for the evaluation. The party selecting the independent medical
  144  examination shall identify the choice of the independent medical
  145  examiner to all other parties within 15 business days after the
  146  date the independent medical examination is to take place.
  147  Failure to timely provide such notification shall preclude the
  148  requesting party from submitting the findings of such
  149  independent medical examiner in a proceeding before a judge of
  150  compensation claims. The independent medical examiner may not
  151  provide followup care if such recommendation for care is found
  152  to be medically necessary. If the employee prevails in a medical
  153  dispute as determined in an order by a judge of compensation
  154  claims or if benefits are paid or treatment provided after the
  155  employee has obtained an independent medical examination based
  156  upon the examiner’s findings, the costs of such examination
  157  shall be paid by the employer or carrier.
  158         (c) The carrier may, at its election, contact the claimant
  159  directly to schedule a reasonable time for an independent
  160  medical examination. The carrier must confirm the scheduling
  161  agreement in writing with the claimant and the claimant’s
  162  counsel, if any, at least 7 business days before the date upon
  163  which the independent medical examination is scheduled to occur.
  164  An attorney representing a claimant is not authorized to
  165  schedule the self-insured employer’s or carrier’s independent
  166  medical evaluations under this subsection. Neither the self
  167  insured employer nor the carrier shall be responsible for
  168  scheduling any independent medical examination other than an
  169  employer or carrier independent medical examination.
  170         (9) EXPERT MEDICAL ADVISORS.—
  171         (c) If there is disagreement in the opinions of the health
  172  care providers, if two health care providers disagree on medical
  173  evidence supporting the employee’s complaints or the need for
  174  additional medical treatment, or if two health care providers
  175  disagree that the employee is able to return to work, the
  176  department may, and the judge of compensation claims shall, upon
  177  his or her own motion or within 15 business days after receipt
  178  of a written request by either the injured employee, the
  179  employer, or the carrier, order the injured employee to be
  180  evaluated by an expert medical advisor. The injured employee and
  181  the employer or carrier may agree on the health care provider to
  182  serve as an expert medical advisor. If the parties do not agree,
  183  the judge of compensation claims shall select an expert medical
  184  advisor from the department’s list of certified expert medical
  185  advisors. If a certified medical advisor within the relevant
  186  medical specialty is unavailable, the judge of compensation
  187  claims shall appoint any otherwise qualified health care
  188  provider to serve as an expert medical advisor without obtaining
  189  the department’s certification. The opinion of the expert
  190  medical advisor is presumed to be correct unless there is clear
  191  and convincing evidence to the contrary as determined by the
  192  judge of compensation claims. The expert medical advisor
  193  appointed to conduct the evaluation shall have free and complete
  194  access to the medical records of the employee. An employee who
  195  fails to report to and cooperate with such evaluation forfeits
  196  entitlement to compensation during the period of failure to
  197  report or cooperate.
  198         (d) The expert medical advisor must complete his or her
  199  evaluation and issue his or her report to the department or to
  200  the judge of compensation claims within 15 business days after
  201  receipt of all medical records. The expert medical advisor must
  202  furnish a copy of the report to the carrier and to the employee.
  203         Section 4. Paragraph (a) of subsection (2) and paragraph
  204  (e) of subsection (4) of section 440.15, Florida Statutes, are
  205  amended to read:
  206         440.15 Compensation for disability.—Compensation for
  207  disability shall be paid to the employee, subject to the limits
  208  provided in s. 440.12(2), as follows:
  209         (2) TEMPORARY TOTAL DISABILITY.—
  210         (a) Subject to subsection (7), in case of disability total
  211  in character but temporary in quality, 66 2/3 or 66.67 percent
  212  of the average weekly wages shall be paid to the employee during
  213  the continuance thereof, not to exceed 260 104 weeks except as
  214  provided in this subsection, s. 440.12(1), and s. 440.14(3).
  215  Once the employee reaches the maximum number of weeks allowed,
  216  or the employee reaches the date of maximum medical improvement,
  217  whichever occurs earlier, temporary disability benefits shall
  218  cease and the injured worker’s permanent impairment shall be
  219  determined.
  220         (4) TEMPORARY PARTIAL DISABILITY.—
  221         (e) Such benefits shall be paid during the continuance of
  222  such disability, not to exceed a period of 260 104 weeks, as
  223  provided by this subsection and subsection (2). Once the injured
  224  employee reaches the maximum number of weeks, temporary
  225  disability benefits cease and the injured worker’s permanent
  226  impairment must be determined. If the employee is terminated
  227  from postinjury employment based on the employee’s misconduct,
  228  temporary partial disability benefits are not payable as
  229  provided for in this section. The department shall by rule
  230  specify forms and procedures governing the method and time for
  231  payment of temporary disability benefits for dates of accidents
  232  before January 1, 1994, and for dates of accidents on or after
  233  January 1, 1994.
  234         Section 5. Subsections (2) and (5) of section 440.192,
  235  Florida Statutes, are amended to read:
  236         440.192 Procedure for resolving benefit disputes.—
  237         (2) Upon receipt, the Office of the Judges of Compensation
  238  Claims shall review each petition and shall dismiss each
  239  petition or any portion of such a petition that does not on its
  240  face meet the requirements of this section and the definition of
  241  specificity under s. 440.02, and specifically identify or
  242  itemize the following:
  243         (a) The name, address, and telephone number, and social
  244  security number of the employee.
  245         (b) The name, address, and telephone number of the
  246  employer.
  247         (c) A detailed description of the injury and cause of the
  248  injury, including the Florida county or, if outside of Florida,
  249  the state location of the occurrence and the date or dates of
  250  the accident.
  251         (d) A detailed description of the employee’s job, work
  252  responsibilities, and work the employee was performing when the
  253  injury occurred.
  254         (e) The specific time period for which compensation and the
  255  specific classification of compensation were not timely
  256  provided.
  257         (f) The specific date of maximum medical improvement,
  258  character of disability, and specific statement of all benefits
  259  or compensation that the employee is seeking. A claim for
  260  permanent benefits must include the specific date of maximum
  261  medical improvement and the specific date that such permanent
  262  benefits are claimed to begin.
  263         (g) All specific travel costs to which the employee
  264  believes she or he is entitled, including dates of travel and
  265  purpose of travel, means of transportation, and mileage and
  266  including the date the request for mileage was filed with the
  267  carrier and a copy of the request filed with the carrier.
  268         (h) A specific listing of all medical charges alleged
  269  unpaid, including the name and address of the medical provider,
  270  the amounts due, and the specific dates of treatment.
  271         (i) The type or nature of treatment care or attendance
  272  sought and the justification for such treatment. If the employee
  273  is under the care of a physician for an injury identified under
  274  paragraph (c), a copy of the physician’s request, authorization,
  275  or recommendation for treatment, care, or attendance must
  276  accompany the petition.
  277         (j) The specific amount of compensation claimed to be
  278  accurate and the methodology claimed to accurately calculate the
  279  average weekly wage, if the average weekly wage calculated by
  280  the employer or carrier is disputed. If the petition does not
  281  include a claim under this paragraph, the average weekly wage
  282  and corresponding compensation calculated by the employer or
  283  carrier are presumed to be accurate.
  284         (k)(j)A specific explanation of any other disputed issue
  285  that a judge of compensation claims will be called to rule upon.
  286  
  287  The dismissal of any petition or portion of such a petition
  288  under this subsection section is without prejudice and does not
  289  require a hearing.
  290         (5)(a) All motions to dismiss must state with particularity
  291  the basis for the motion. The judge of compensation claims shall
  292  enter an order upon such motions without hearing, unless good
  293  cause for hearing is shown. Dismissal of any petition or portion
  294  of a petition under this subsection is without prejudice.
  295         (b) Upon motion that a petition or portion of a petition be
  296  dismissed for lack of specificity, the judge of compensation
  297  claims shall enter an order on the motion, unless stipulated in
  298  writing by the parties, within 10 days after the motion is filed
  299  or, if good cause for hearing is shown, within 20 days after
  300  hearing on the motion. When any petition or portion of a
  301  petition is dismissed for lack of specificity under this
  302  subsection, the claimant must be allowed 20 days after the date
  303  of the order of dismissal in which to file an amended petition.
  304  Any grounds for dismissal for lack of specificity under this
  305  section which are not asserted within 30 days after receipt of
  306  the petition for benefits are thereby waived.
  307         Section 6. Section 440.34, Florida Statutes, is amended to
  308  read:
  309         440.34 Attorney Attorney’s fees; costs.—
  310         (1)(a) A fee, gratuity, or other consideration may not be
  311  paid by a carrier or employer for a claimant in connection with
  312  any proceedings arising under this chapter, unless approved by
  313  the judge of compensation claims or court having jurisdiction
  314  over such proceedings. Any attorney fees attorney’s fee approved
  315  by a judge of compensation claims for benefits secured on behalf
  316  of a claimant must equal to 20 percent of the first $5,000 of
  317  the amount of the benefits secured, 15 percent of the next
  318  $5,000 of the amount of the benefits secured, 10 percent of the
  319  remaining amount of the benefits secured to be provided during
  320  the first 10 years after the date the claim is filed, and 5
  321  percent of the benefits secured after 10 years.
  322         (b) However, the judge of compensation claims shall
  323  consider the following factors in each case and may increase or
  324  decrease the attorney fees, based on a maximum hourly rate of
  325  $250 per hour, if in his or her judgment he or she expressly
  326  finds that the circumstances of the particular case warrant such
  327  action:
  328         1. The time and labor required, the novelty and difficulty
  329  of the questions involved, and the skill requisite to perform
  330  the legal service properly.
  331         2. The fee customarily charged in the locality for similar
  332  legal services.
  333         3. The amount involved in the controversy and the benefits
  334  resulting to the claimant.
  335         4. The time limitation imposed by the claimant or the
  336  circumstances.
  337         5. The experience, reputation, and ability of the attorney
  338  or attorneys performing services.
  339         6. The contingency or certainty of a fee.
  340         (c) The judge of compensation claims shall not approve a
  341  compensation order, a joint stipulation for lump-sum settlement,
  342  a stipulation or agreement between a claimant and his or her
  343  attorney, or any other agreement related to benefits under this
  344  chapter which provides for attorney fees paid by a carrier or
  345  employer an attorney’s fee in excess of the amount permitted by
  346  this section. The judge of compensation claims is not required
  347  to approve any retainer agreement between the claimant and his
  348  or her attorney. The retainer agreement as to fees and costs may
  349  not be for compensation in excess of the amount allowed under
  350  this subsection or subsection (7).
  351         (2) In awarding a claimant’s attorney fees paid by a
  352  carrier or employer attorney’s fee, the judge of compensation
  353  claims shall consider only those benefits secured by the
  354  attorney. An attorney is not entitled to attorney attorney’s
  355  fees for representation in any issue that was ripe, due, and
  356  owing and that reasonably could have been addressed, but was not
  357  addressed, during the pendency of other issues for the same
  358  injury. The amount, statutory basis, and type of benefits
  359  obtained through legal representation shall be listed on all
  360  attorney attorney’s fees awarded by the judge of compensation
  361  claims. For purposes of this section, the term “benefits
  362  secured” does not include future medical benefits to be provided
  363  on any date more than 5 years after the date the claim is filed.
  364  In the event an offer to settle an issue pending before a judge
  365  of compensation claims, including attorney attorney’s fees as
  366  provided for in this section, is communicated in writing to the
  367  claimant or the claimant’s attorney at least 30 days prior to
  368  the trial date on such issue, for purposes of calculating the
  369  amount of attorney attorney’s fees to be taxed against the
  370  employer or carrier, the term “benefits secured” shall be deemed
  371  to include only that amount awarded to the claimant above the
  372  amount specified in the offer to settle. If multiple issues are
  373  pending before the judge of compensation claims, said offer of
  374  settlement shall address each issue pending and shall state
  375  explicitly whether or not the offer on each issue is severable.
  376  The written offer shall also unequivocally state whether or not
  377  it includes medical witness fees and expenses and all other
  378  costs associated with the claim.
  379         (3) If any party should prevail in any proceedings before a
  380  judge of compensation claims or court, there shall be taxed
  381  against the nonprevailing party the reasonable costs of such
  382  proceedings, not to include attorney attorney’s fees. A claimant
  383  is responsible for the payment of her or his own attorney
  384  attorney’s fees, except that a claimant is entitled to recover
  385  attorney fees an attorney’s fee in an amount equal to the amount
  386  provided for in subsection (1) or subsection (7) from a carrier
  387  or employer:
  388         (a) Against whom she or he successfully asserts a petition
  389  for medical benefits only, if the claimant has not filed or is
  390  not entitled to file at such time a claim for disability,
  391  permanent impairment, wage-loss, or death benefits, arising out
  392  of the same accident;
  393         (b) In any case in which the employer or carrier files a
  394  response to petition denying benefits with the Office of the
  395  Judges of Compensation Claims and the injured person has
  396  employed an attorney in the successful prosecution of the
  397  petition;
  398         (c) In a proceeding in which a carrier or employer denies
  399  that an accident occurred for which compensation benefits are
  400  payable, and the claimant prevails on the issue of
  401  compensability; or
  402         (d) In cases where the claimant successfully prevails in
  403  proceedings filed under s. 440.24 or s. 440.28.
  404  
  405  Regardless of the date benefits were initially requested,
  406  attorney attorney’s fees shall not attach under this subsection
  407  until 30 days after the date the carrier or employer, if self
  408  insured, receives the petition.
  409         (4) In such cases in which the claimant is responsible for
  410  the payment of her or his own attorney attorney’s fees, such
  411  fees are a lien upon compensation payable to the claimant,
  412  notwithstanding s. 440.22.
  413         (5) If any proceedings are had for review of any claim,
  414  award, or compensation order before any court, the court may
  415  award the injured employee or dependent attorney fees an
  416  attorney’s fee to be paid by the employer or carrier, in its
  417  discretion, which shall be paid as the court may direct.
  418         (6) A judge of compensation claims may not enter an order
  419  approving the contents of a retainer agreement that permits
  420  placing any portion of the employee’s compensation into an
  421  escrow account until benefits have been secured.
  422         (7) This section may not be interpreted to limit or
  423  otherwise infringe on a claimant’s right to retain an attorney
  424  and pay the attorney reasonable attorney fees for legal services
  425  related to a claim under the Workers Compensation Law If an
  426  attorney’s fee is owed under paragraph (3)(a), the judge of
  427  compensation claims may approve an alternative attorney’s fee
  428  not to exceed $1,500 only once per accident, based on a maximum
  429  hourly rate of $150 per hour, if the judge of compensation
  430  claims expressly finds that the attorney’s fee amount provided
  431  for in subsection (1), based on benefits secured, fails to
  432  fairly compensate the attorney for disputed medical-only claims
  433  as provided in paragraph (3)(a) and the circumstances of the
  434  particular case warrant such action.
  435         Section 7. Effective July 1, 2018, subsection (10) of
  436  section 624.482, Florida Statutes, is amended to read:
  437         624.482 Making and use of rates.—
  438         (10) Any self-insurance fund that writes workers’
  439  compensation insurance and employer’s liability insurance is
  440  subject to, and shall make all rate filings for workers’
  441  compensation insurance and employer’s liability insurance in
  442  accordance with, ss. 627.091, 627.101, 627.111, 627.141,
  443  627.151, 627.171, and 627.191, and 627.211.
  444         Section 8. Effective July 1, 2018, subsections (3), (4),
  445  and (6) of section 627.041, Florida Statutes, are amended to
  446  read:
  447         627.041 Definitions.—As used in this part:
  448         (3) “Rating organization” means every person, other than an
  449  authorized insurer, whether located within or outside this
  450  state, who has as his or her object or purpose the making of
  451  prospective loss costs, rates, rating plans, or rating systems.
  452  Two or more authorized insurers that act in concert for the
  453  purpose of making prospective loss costs, rates, rating plans,
  454  or rating systems, and that do not operate within the specific
  455  authorizations contained in ss. 627.311, 627.314(2), (4), and
  456  627.351, shall be deemed to be a rating organization. No single
  457  insurer shall be deemed to be a rating organization.
  458         (4) “Advisory organization” means every group, association,
  459  or other organization of insurers, whether located within or
  460  outside this state, which prepares policy forms or makes
  461  underwriting rules incident to but not including the making of
  462  prospective loss costs, rates, rating plans, or rating systems
  463  or which collects and furnishes to authorized insurers or rating
  464  organizations loss or expense statistics or other statistical
  465  information and data and acts in an advisory, as distinguished
  466  from a ratemaking, capacity.
  467         (6) “Subscriber” means an insurer which is furnished at its
  468  request:
  469         (a) With prospective loss costs, rates, and rating manuals
  470  by a rating organization of which it is not a member; or
  471         (b) With advisory services by an advisory organization of
  472  which it is not a member.
  473         Section 9. Effective July 1, 2018, subsection (1) of
  474  section 627.0612, Florida Statutes, is amended to read:
  475         627.0612 Administrative proceedings in rating
  476  determinations.—
  477         (1) In any proceeding to determine whether prospective loss
  478  costs, rates, rating plans, or other matters governed by this
  479  part comply with the law, the appellate court shall set aside a
  480  final order of the office if the office has violated s.
  481  120.57(1)(k) by substituting its findings of fact for findings
  482  of an administrative law judge which were supported by competent
  483  substantial evidence.
  484         Section 10. Effective July 1, 2018, subsection (1) of
  485  section 627.062, Florida Statutes, is amended to read:
  486         627.062 Rate standards.—
  487         (1) The rates and loss costs for all classes of insurance
  488  to which the provisions of this part are applicable may not be
  489  excessive, inadequate, or unfairly discriminatory.
  490         Section 11. Effective July 1, 2018, subsection (1) of
  491  section 627.0645, Florida Statutes, is amended to read:
  492         627.0645 Annual filings.—
  493         (1) Each rating organization filing rates for, and each
  494  insurer writing, any line of property or casualty insurance to
  495  which this part applies, except:
  496         (a) Workers’ compensation and employer’s liability
  497  insurance;
  498         (a)(b) Insurance as defined in ss. 624.604 and 624.605,
  499  limited to coverage of commercial risks other than commercial
  500  residential multiperil; or
  501         (b)(c) Travel insurance, if issued as a master group policy
  502  with a situs in another state where each certificateholder pays
  503  less than $30 in premium for each covered trip and where the
  504  insurer has written less than $1 million in annual written
  505  premiums in the travel insurance product in this state during
  506  the most recent calendar year,
  507  
  508  shall make an annual base rate filing for each such line with
  509  the office no later than 12 months after its previous base rate
  510  filing, demonstrating that its rates are not inadequate.
  511         Section 12. Effective July 1, 2018, subsections (1) and (5)
  512  of section 627.072, Florida Statutes, are amended to read:
  513         627.072 Making and use of rates.—
  514         (1) As to workers’ compensation and employer’s liability
  515  insurance, the following factors shall be used in the
  516  determination and fixing of loss costs or rates, as applicable:
  517         (a) The past loss experience and prospective loss
  518  experience within and outside this state;
  519         (b) The conflagration and catastrophe hazards;
  520         (c) A reasonable margin for underwriting profit and
  521  contingencies;
  522         (d) Dividends, savings, or unabsorbed premium deposits
  523  allowed or returned by insurers to their policyholders, members,
  524  or subscribers;
  525         (e) Investment income on unearned premium reserves and loss
  526  reserves;
  527         (f) Past expenses and prospective expenses, both those
  528  countrywide and those specifically applicable to this state; and
  529         (g) All other relevant factors, including judgment factors,
  530  within and outside this state.
  531         (5)(a) In the case of workers’ compensation and employer’s
  532  liability insurance, the office shall consider utilizing the
  533  following methodology in rate determinations: Premiums,
  534  expenses, and expected claim costs would be discounted to a
  535  common point of time, such as the initial point of a policy
  536  year, in the determination of rates; the cash-flow pattern of
  537  premiums, expenses, and claim costs would be determined
  538  initially by using data from 8 to 10 of the largest insurers
  539  writing workers’ compensation insurance in the state; such
  540  insurers may be selected for their statistical ability to report
  541  the data on an accident-year basis and in accordance with
  542  subparagraphs (b)1., 2., and 3., for at least 2 1/2 years; such
  543  a cash-flow pattern would be modified when necessary in
  544  accordance with the data and whenever a radical change in the
  545  payout pattern is expected in the policy year under
  546  consideration.
  547         (b) If the methodology set forth in paragraph (a) is
  548  utilized, to facilitate the determination of such a cash-flow
  549  pattern methodology:
  550         1. Each insurer shall include in its statistical reporting
  551  to the rating bureau and the office the accident year by
  552  calendar quarter data for paid-claim costs;
  553         2. Each insurer shall submit financial reports to the
  554  rating bureau and the office which shall include total incurred
  555  claim amounts and paid-claim amounts by policy year and by
  556  injury types as of December 31 of each calendar year; and
  557         3. Each insurer shall submit to the rating bureau and the
  558  office paid-premium data on an individual risk basis in which
  559  risks are to be subdivided by premium size as follows:
  560  
  561  Number of Risks in
  562   Premium Range                             Standard Premium Size
  563  
  564  ...(to be filled in by carrier)...                      $300—999
  565  ...(to be filled in by carrier)...                   1,000—4,999
  566  ...(to be filled in by carrier)...                  5,000—49,999
  567  ...(to be filled in by carrier)...                 50,000—99,999
  568  ...(to be filled in by carrier)...               100,000 or more
  569  Total:
  570         Section 13. Effective July 1, 2018, section 627.091,
  571  Florida Statutes, is amended to read:
  572         627.091 Rate filings; workers’ compensation and employer’s
  573  liability insurances.—
  574         (1) As used in this section, the term:
  575         (a) “Expenses” means the portion of a rate which is
  576  attributable to acquisition, field supervision, collection
  577  expenses, taxes, reinsurance, assessments, and general expenses.
  578         (b) “Loss cost modifier” means an adjustment to, or a
  579  deviation from, the approved prospective loss costs filed by a
  580  licensed rating organization.
  581         (c) “Loss cost multiplier” means the profit and expense
  582  factor, expressed as a single nonintegral number to be applied
  583  to the prospective loss costs, which is associated with writing
  584  workers’ compensation and employer’s liability insurance and
  585  which is approved by the office in making rates for each
  586  classification of risks used by that insurer.
  587         (d) “Prospective loss costs” means the portion of a rate
  588  which reflects historical industry average aggregate losses and
  589  loss adjustment expenses projected through development to their
  590  ultimate value and through trending to a future point in time.
  591  The term does not include provisions for profit or expenses
  592  other than loss adjustment expense.
  593         (2)(1) As to workers’ compensation and employer’s liability
  594  insurances, every insurer shall file with the office every
  595  manual of classifications, rules, and rates, every rating plan,
  596  and every modification of any of the foregoing which it proposes
  597  to use. Each insurer or insurer group shall independently and
  598  individually file with the office the final rates it proposes to
  599  use. An insurer may satisfy this filing requirement by adopting
  600  the most recent loss costs filed by a licensed rating
  601  organization and approved by the office, and by otherwise
  602  complying with this part. Each insurer shall file data in
  603  accordance with the uniform statistical plan approved by the
  604  office. Every filing under this subsection:
  605         (a) Must state the proposed effective date and must be made
  606  at least 90 days before such proposed effective date;
  607         (b) Must indicate the character and extent of the coverage
  608  contemplated;
  609         (c) May use the most recent approved prospective loss costs
  610  filed by a licensed rating organization in combination with the
  611  insurer’s own approved loss cost multiplier and loss cost
  612  modifier;
  613         (d) Must include all deductibles required in chapter 440,
  614  and may include additional deductible provisions in its manual
  615  of classifications, rules, and rates. All deductibles must be in
  616  a form and manner that is consistent with the underlying purpose
  617  of chapter 440;
  618         (e) May use variable or fixed expense loads or a
  619  combination thereof, and may vary the expense, profit, or
  620  contingency provisions by class or group of classes, if the
  621  insurer files supporting data justifying such variations;
  622         (f) May include a schedule of proposed premium discounts,
  623  credits, and surcharges. The office may not approve discounts,
  624  credits, and surcharges unless they are based on objective
  625  criteria that bear a reasonable relationship to the expected
  626  loss, expense, or profit experience of an individual
  627  policyholder or a class of policyholders; and
  628         (g)May file a minimum premium or expense constant Every
  629  insurer is authorized to include deductible provisions in its
  630  manual of classifications, rules, and rates. Such deductibles
  631  shall in all cases be in a form and manner which is consistent
  632  with the underlying purpose of chapter 440.
  633         (3)(2)Every such filing shall state the proposed effective
  634  date thereof, and shall indicate the character and extent of the
  635  coverage contemplated. When a filing is not accompanied by the
  636  information upon which the insurer or rating organization
  637  supports the filing and the office does not have sufficient
  638  information to determine whether the filing meets the applicable
  639  requirements of this part, the office, it shall within 15 days
  640  after the date of filing, shall require the insurer or rating
  641  organization to furnish the information upon which it supports
  642  the filing. The information furnished in support of a filing may
  643  include:
  644         (a) The experience or judgment of the insurer or rating
  645  organization making the filing;
  646         (b) The Its interpretation of any statistical data which
  647  the insurer or rating organization making the filing it relies
  648  upon;
  649         (c) The experience of other insurers or rating
  650  organizations; or
  651         (d) Any other factors which the insurer or rating
  652  organization making the filing deems relevant.
  653         (4)(3) A filing and any supporting information are shall be
  654  open to public inspection as provided in s. 119.07(1).
  655         (5)(4) An insurer may become satisfy its obligation to make
  656  such filings by becoming a member of, or a subscriber to, a
  657  licensed rating organization that which makes loss costs such
  658  filings and by authorizing the office to accept such filings in
  659  its behalf; but nothing contained in this chapter shall be
  660  construed as requiring any insurer to become a member or a
  661  subscriber to any rating organization.
  662         (6) A licensed rating organization may develop and file for
  663  approval with the office reference filings containing
  664  prospective loss costs and the underlying loss data, and other
  665  supporting statistical and actuarial information. A rating
  666  organization may not develop or file final rates or multipliers
  667  for expenses, profit, or contingencies. After a loss cost
  668  reference filing is filed with the office and is approved, the
  669  rating organization must provide its member subscribers with a
  670  copy of the approved reference filing.
  671         (7) A rating organization may file supplementary rating
  672  information and rules, including, but not limited to,
  673  policywriting rules, rating plan classification codes and
  674  descriptions, experience modification plans, statistical plans
  675  and forms, and rules that include factors or relativities, such
  676  as increased limits factors, classification relativities, or
  677  similar factors, but that exclude minimum premiums. An insurer
  678  may use supplementary rating information if such information is
  679  approved by the office.
  680         (8)(5) Pursuant to the provisions of s. 624.3161, the
  681  office may examine the underlying statistical data used in such
  682  filings.
  683         (9)(6) Whenever the committee of a recognized rating
  684  organization with authority to file prospective loss costs for
  685  use by insurers in determining responsibility for workers’
  686  compensation and employer’s liability insurance rates in this
  687  state meets to discuss the necessity for, or a request for,
  688  Florida rate increases or decreases in prospective loss costs in
  689  this state, the determination of prospective loss costs in this
  690  state Florida rates, the prospective loss costs rates to be
  691  requested in this state, and any other matters pertaining
  692  specifically and directly to prospective loss costs in this
  693  state such Florida rates, such meetings shall be held in this
  694  state and are shall be subject to s. 286.011. The committee of
  695  such a rating organization shall provide at least 3 weeks’ prior
  696  notice of such meetings to the office and shall provide at least
  697  14 days’ prior notice of such meetings to the public by
  698  publication in the Florida Administrative Register.
  699         (10) An insurer group with multiple insurers writing
  700  workers’ compensation and employer’s liability insurance shall
  701  file underwriting rules not contained in rating manuals.
  702         Section 14. Effective July 1, 2018, section 627.093,
  703  Florida Statutes, is amended to read:
  704         627.093 Application of s. 286.011 to workers’ compensation
  705  and employer’s liability insurances.—Section 286.011 shall be
  706  applicable to every prospective loss cost and rate filing,
  707  approval or disapproval of filing, rating deviation from filing,
  708  or appeal from any of these regarding workers’ compensation and
  709  employer’s liability insurances.
  710         Section 15. Effective July 1, 2018, subsection (1) of
  711  section 627.101, Florida Statutes, is amended to read:
  712         627.101 When filing becomes effective; workers’
  713  compensation and employer’s liability insurances.—
  714         (1) The office shall review all required filings as to
  715  workers’ compensation and employer’s liability insurances as
  716  soon as reasonably possible after they have been made in order
  717  to determine whether they meet the applicable requirements of
  718  this part. If the office determines that part of a required rate
  719  filing does not meet the applicable requirements of this part,
  720  it may reject so much of the filing as does not meet these
  721  requirements, and approve the remainder of the filing.
  722         Section 16. Effective July 1, 2018, section 627.211,
  723  Florida Statutes, is amended to read:
  724         627.211 Annual report by the office on the workers’
  725  compensation insurance market Deviations; workers’ compensation
  726  and employer’s liability insurances.—
  727         (1) Every member or subscriber to a rating organization
  728  shall, as to workers’ compensation or employer’s liability
  729  insurance, adhere to the filings made on its behalf by such
  730  organization; except that any such insurer may make written
  731  application to the office for permission to file a uniform
  732  percentage decrease or increase to be applied to the premiums
  733  produced by the rating system so filed for a kind of insurance,
  734  for a class of insurance which is found by the office to be a
  735  proper rating unit for the application of such uniform
  736  percentage decrease or increase, or for a subdivision of
  737  workers’ compensation or employer’s liability insurance:
  738         (a) Comprised of a group of manual classifications which is
  739  treated as a separate unit for ratemaking purposes; or
  740         (b) For which separate expense provisions are included in
  741  the filings of the rating organization.
  742  
  743  Such application shall specify the basis for the modification
  744  and shall be accompanied by the data upon which the applicant
  745  relies. A copy of the application and data shall be sent
  746  simultaneously to the rating organization.
  747         (2) Every member or subscriber to a rating organization
  748  may, as to workers’ compensation and employer’s liability
  749  insurance, file a plan or plans to use deviations that vary
  750  according to factors present in each insured’s individual risk.
  751  The insurer that files for the deviations provided in this
  752  subsection shall file the qualifications for the plans,
  753  schedules of rating factors, and the maximum deviation factors
  754  which shall be subject to the approval of the office pursuant to
  755  s. 627.091. The actual deviation which shall be used for each
  756  insured that qualifies under this subsection may not exceed the
  757  maximum filed deviation under that plan and shall be based on
  758  the merits of each insured’s individual risk as determined by
  759  using schedules of rating factors which shall be applied
  760  uniformly. Insurers shall maintain statistical data in
  761  accordance with the schedule of rating factors. Such data shall
  762  be available to support the continued use of such varying
  763  deviations.
  764         (3) In considering an application for the deviation, the
  765  office shall give consideration to the applicable principles for
  766  ratemaking as set forth in ss. 627.062 and 627.072 and the
  767  financial condition of the insurer. In evaluating the financial
  768  condition of the insurer, the office may consider: (1) the
  769  insurer’s audited financial statements and whether the
  770  statements provide unqualified opinions or contain significant
  771  qualifications or “subject to” provisions; (2) any independent
  772  or other actuarial certification of loss reserves; (3) whether
  773  workers’ compensation and employer’s liability reserves are
  774  above the midpoint or best estimate of the actuary’s reserve
  775  range estimate; (4) the adequacy of the proposed rate; (5)
  776  historical experience demonstrating the profitability of the
  777  insurer; (6) the existence of excess or other reinsurance that
  778  contains a sufficiently low attachment point and maximums that
  779  provide adequate protection to the insurer; and (7) other
  780  factors considered relevant to the financial condition of the
  781  insurer by the office. The office shall approve the deviation if
  782  it finds it to be justified, it would not endanger the financial
  783  condition of the insurer, and it would not constitute predatory
  784  pricing. The office shall disapprove the deviation if it finds
  785  that the resulting premiums would be excessive, inadequate, or
  786  unfairly discriminatory, would endanger the financial condition
  787  of the insurer, or would result in predatory pricing. The
  788  insurer may not use a deviation unless the deviation is
  789  specifically approved by the office. An insurer may apply the
  790  premiums approved pursuant to s. 627.091 or its uniform
  791  deviation approved pursuant to this section to a particular
  792  insured according to underwriting guidelines filed with and
  793  approved by the office, such approval to be based on ss. 627.062
  794  and 627.072.
  795         (4) Each deviation permitted to be filed shall be effective
  796  for a period of 1 year unless terminated, extended, or modified
  797  with the approval of the office. If at any time after a
  798  deviation has been approved the office finds that the deviation
  799  no longer meets the requirements of this code, it shall notify
  800  the insurer in what respects it finds that the deviation fails
  801  to meet such requirements and specify when, within a reasonable
  802  period thereafter, the deviation shall be deemed no longer
  803  effective. The notice shall not affect any insurance contract or
  804  policy made or issued prior to the expiration of the period set
  805  forth in the notice.
  806         (5) For purposes of this section, the office, when
  807  considering the experience of any insurer, shall consider the
  808  experience of any predecessor insurer when the business and the
  809  liabilities of the predecessor insurer were assumed by the
  810  insurer pursuant to an order of the office which approves the
  811  assumption of the business and the liabilities.
  812         (6) The office shall submit an annual report to the
  813  President of the Senate and the Speaker of the House of
  814  Representatives by January 15 of each year which evaluates
  815  insurance company solvency and competition in the workers’
  816  compensation insurance market in this state. The report must
  817  contain an analysis of the availability and affordability of
  818  workers’ compensation coverage and whether the current market
  819  structure, conduct, and performance are conducive to
  820  competition, based upon economic analysis and tests. The purpose
  821  of this report is to aid the Legislature in determining whether
  822  changes to the workers’ compensation rating laws are warranted.
  823  The report must also document that the office has complied with
  824  the provisions of s. 627.096 which require the office to
  825  investigate and study all workers’ compensation insurers in the
  826  state and to study the data, statistics, schedules, or other
  827  information as it finds necessary to assist in its review of
  828  workers’ compensation rate filings.
  829         Section 17. Effective July 1, 2018, section 627.2151,
  830  Florida Statutes, is created to read:
  831         627.2151 Workers’ compensation excessive defense and cost
  832  containment expenses.—
  833         (1) As used in this section, the term “defense and cost
  834  containment expenses” or “DCCE” includes the following Florida
  835  expenses of an insurer group or insurer writing workers’
  836  compensation insurance:
  837         (a) Insurance company attorney fees;
  838         (b) Expert witnesses;
  839         (c) Medical examinations and autopsies;
  840         (d) Medical fee review panels;
  841         (e) Bill auditing;
  842         (f) Treatment utilization reviews; and
  843         (g) Preferred provider network expenses.
  844         (2) Each insurer group or insurer writing workers’
  845  compensation insurance shall file with the office a schedule of
  846  Florida defense and cost containment expenses and total Florida
  847  incurred losses for each of the 3 years before the most recent
  848  accident year. The DCCE and incurred losses must be valued as of
  849  December 31 of the first year following the latest accident year
  850  to be reported, developed to an ultimate basis, and at two 12
  851  month intervals thereafter, each developed to an ultimate basis,
  852  so that a total of three evaluations will be provided for each
  853  accident year. The first year reported shall be accident year
  854  2018, so that the reporting of 3 accident years under this
  855  evaluation will not take place until accident years 2019 and
  856  2020 have become available.
  857         (3) Excessive DCCE occurs when an insurer includes in its
  858  rates Florida defense and cost containment expenses for workers’
  859  compensation which exceed 15 percent of Florida workers’
  860  compensation incurred losses by the insurer or insurer group for
  861  the 3 most recent calendar years for which data is to be filed
  862  under this section.
  863         (4) If the insurer or insurer group realizes excessive
  864  DCCE, the office must order a return of the excess amounts after
  865  affording the insurer or insurer group an opportunity for a
  866  hearing and otherwise complying with the requirements of chapter
  867  120. Excessive DCCE amounts must be returned in all instances
  868  unless the insurer or insurer group affirmatively demonstrates
  869  to the office that the refund of the excessive DCCE amounts will
  870  render a member of the insurer group financially impaired or
  871  will render it insolvent under provisions of the Florida
  872  Insurance Code.
  873         (5) Any excess DCCE amount must be returned to
  874  policyholders in the form of a cash refund or credit toward the
  875  future purchase of insurance. The refund or credit must be made
  876  on a pro rata basis in relation to the final compilation year
  877  earned premiums to the policyholders of record of the insurer or
  878  insurer group on December 31 of the final compilation year. Cash
  879  refunds and data in required reports to the office may be
  880  rounded to the nearest dollar and must be consistently applied.
  881         (6)(a) Refunds must be completed in one of the following
  882  ways:
  883         1. A cash refund must be completed within 60 days after
  884  entry of a final order indicating that excessive DCCE has been
  885  realized.
  886         2. A credit to renewal policies must be applied to policy
  887  renewal premium notices that are forwarded to insureds more than
  888  60 calendar days after entry of a final order indicating that
  889  excessive DCCE has been realized. If the insured thereafter
  890  cancels a policy or otherwise allows the policy to terminate,
  891  the insurer or insurer group must make a cash refund not later
  892  than 60 days after coverage termination.
  893         (b) Upon completion of the renewal credits or refunds, the
  894  insurer or insurer group shall immediately certify having made
  895  the refunds to the office.
  896         (7) Any refund or renewal credit made pursuant to this
  897  section is treated as a policyholder dividend applicable to the
  898  year immediately succeeding the compilation period giving rise
  899  to the refund or credit, for purposes of reporting under this
  900  section for subsequent years.
  901         Section 18. Effective July 1, 2018, section 627.291,
  902  Florida Statutes, is amended to read:
  903         627.291 Information to be furnished insureds; appeal by
  904  insureds; workers’ compensation and employer’s liability
  905  insurances.—
  906         (1) As to workers’ compensation and employer’s liability
  907  insurances, every rating organization filing prospective loss
  908  costs and every insurer which makes its own rates shall, within
  909  a reasonable time after receiving written request therefor and
  910  upon payment of such reasonable charge as it may make, furnish
  911  to any insured affected by a rate made by it, or to the
  912  authorized representative of such insured, all pertinent
  913  information as to such rate.
  914         (2) As to workers’ compensation and employer’s liability
  915  insurances, every rating organization filing prospective loss
  916  costs and every insurer which makes its own rates shall provide
  917  within this state reasonable means whereby any person aggrieved
  918  by the application of its rating system may be heard, in person
  919  or by his or her authorized representative, on his or her
  920  written request to review the manner in which such rating system
  921  has been applied in connection with the insurance afforded him
  922  or her. If the rating organization filing prospective loss costs
  923  or the insurer making its own rates fails to grant or rejects
  924  such request within 30 days after it is made, the applicant may
  925  proceed in the same manner as if his or her application had been
  926  rejected. Any party affected by the action of such rating
  927  organization filing prospective loss costs or insurer making its
  928  own rates on such request may, within 30 days after written
  929  notice of such action, appeal to the office, which may affirm or
  930  reverse such action.
  931         Section 19. Effective July 1, 2018, section 627.318,
  932  Florida Statutes, is amended to read:
  933         627.318 Records.—Every insurer, rating organization filing
  934  prospective loss costs, and advisory organization and every
  935  group, association, or other organization of insurers which
  936  engages in joint underwriting or joint reinsurance shall
  937  maintain reasonable records, of the type and kind reasonably
  938  adapted to its method of operation, of its experience or the
  939  experience of its members and of the data, statistics, or
  940  information collected or used by it in connection with the
  941  prospective loss costs, rates, rating plans, rating systems,
  942  underwriting rules, policy or bond forms, surveys, or
  943  inspections made or used by it, so that such records will be
  944  available at all reasonable times to enable the office to
  945  determine whether such organization, insurer, group, or
  946  association, and, in the case of an insurer or rating
  947  organization, every prospective loss cost, rate, rating plan,
  948  and rating system made or used by it, complies with the
  949  provisions of this part applicable to it. The maintenance of
  950  such records in the office of a licensed rating organization of
  951  which an insurer is a member or subscriber will be sufficient
  952  compliance with this section for any such insurer maintaining
  953  membership or subscribership in such organization, to the extent
  954  that the insurer uses the prospective loss costs, rates, rating
  955  plans, rating systems, or underwriting rules of such
  956  organization. Such records shall be maintained in an office
  957  within this state or shall be made available for examination or
  958  inspection within this state by the department at any time upon
  959  reasonable notice.
  960         Section 20. Effective July 1, 2018, section 627.361,
  961  Florida Statutes, is amended to read:
  962         627.361 False or misleading information.—No person shall
  963  willfully withhold information from or knowingly give false or
  964  misleading information to the office, any statistical agency
  965  designated by the office, any rating organization, or any
  966  insurer, which will affect the prospective loss costs, rates, or
  967  premiums chargeable under this part.
  968         Section 21. Effective July 1, 2018, subsections (1) and (2)
  969  of section 627.371, Florida Statutes, are amended to read:
  970         627.371 Hearings.—
  971         (1) Any person aggrieved by any rate charged, rating plan,
  972  rating system, or underwriting rule followed or adopted by an
  973  insurer, and any person aggrieved by any rating plan, rating
  974  system, or underwriting rule followed or adopted by a rating
  975  organization, may herself or himself or by her or his authorized
  976  representative make written request of the insurer or rating
  977  organization to review the manner in which the prospective loss
  978  cost, rate, plan, system, or rule has been applied with respect
  979  to insurance afforded her or him. If the request is not granted
  980  within 30 days after it is made, the requester may treat it as
  981  rejected. Any person aggrieved by the refusal of an insurer or
  982  rating organization to grant the review requested, or by the
  983  failure or refusal to grant all or part of the relief requested,
  984  may file a written complaint with the office, specifying the
  985  grounds relied upon. If the office has already disposed of the
  986  issue as raised by a similar complaint or believes that probable
  987  cause for the complaint does not exist or that the complaint is
  988  not made in good faith, it shall so notify the complainant.
  989  Otherwise, and if it also finds that the complaint charges a
  990  violation of this chapter and that the complainant would be
  991  aggrieved if the violation is proven, it shall proceed as
  992  provided in subsection (2).
  993         (2) If after examination of an insurer, rating
  994  organization, advisory organization, or group, association, or
  995  other organization of insurers which engages in joint
  996  underwriting or joint reinsurance, upon the basis of other
  997  information, or upon sufficient complaint as provided in
  998  subsection (1), the office has good cause to believe that such
  999  insurer, organization, group, or association, or any prospective
 1000  loss cost, rate, rating plan, or rating system made or used by
 1001  any such insurer or rating organization, does not comply with
 1002  the requirements and standards of this part applicable to it, it
 1003  shall, unless it has good cause to believe such noncompliance is
 1004  willful, give notice in writing to such insurer, organization,
 1005  group, or association stating therein in what manner and to what
 1006  extent noncompliance is alleged to exist and specifying therein
 1007  a reasonable time, not less than 10 days thereafter, in which
 1008  the noncompliance may be corrected, including any premium
 1009  adjustment.
 1010         Section 22. Effective July 1, 2017, the sums of $723,118 in
 1011  recurring funds and $100,000 in nonrecurring funds from the
 1012  Insurance Regulatory Trust Fund are appropriated to the Office
 1013  of Insurance Regulation, and eight full-time equivalent
 1014  positions with associated salary rate of 460,000 are authorized,
 1015  for the purpose of implementing this act.
 1016         Section 23. Effective July 1, 2017, the sum of $24,720 in
 1017  nonrecurring funds from the Operating Trust Fund is appropriated
 1018  to the Office of Judges of Compensation Claims within the
 1019  Division of Administrative Hearings for the purposes of
 1020  implementing this act.
 1021         Section 24. Except as otherwise expressly provided in this
 1022  act, this act shall take effect July 1, 2017.
 1023  
 1024  ================= T I T L E  A M E N D M E N T ================
 1025  And the title is amended as follows:
 1026         Delete everything before the enacting clause
 1027  and insert:
 1028                        A bill to be entitled                      
 1029         An act relating to workers’ compensation insurance;
 1030         amending s. 440.02, F.S.; redefining the term
 1031         “specificity”; amending s. 440.105, F.S.; revising a
 1032         prohibition against receiving certain fees,
 1033         consideration, or gratuities under certain
 1034         circumstances; amending s. 440.13, F.S.; specifying
 1035         certain timeframes in terms of business days, rather
 1036         than days; requiring carriers to authorize or deny,
 1037         rather than respond to, certain requests for
 1038         authorization within a specified timeframe; revising
 1039         construction; revising a specified interval for
 1040         certain notices furnished by treating physicians to
 1041         employers or carriers; amending s. 440.15, F.S.;
 1042         revising the maximum period of specified temporary
 1043         disability benefits; amending s. 440.192, F.S.;
 1044         revising conditions under which the Office of the
 1045         Judges of Compensation Claims must dismiss petitions
 1046         for benefits; revising requirements for such
 1047         petitions; revising construction relating to
 1048         dismissals of petitions or portions of such petitions;
 1049         requiring judges of compensation claims to enter
 1050         orders on certain motions to dismiss within specified
 1051         timeframes; amending s. 440.34, F.S.; prohibiting the
 1052         payment of certain consideration by carriers or
 1053         employers, rather than prohibiting such payment for
 1054         claimants, in connection with certain proceedings
 1055         under certain circumstances; requiring judges of
 1056         compensation claims to consider specified factors in
 1057         increasing or decreasing attorney fees; specifying a
 1058         maximum hourly rate for attorney fees; revising
 1059         provisions that prohibit such judges from approving
 1060         certain agreements and that limit attorney fees in
 1061         retainer agreements; providing construction; deleting
 1062         a provision authorizing such judges to approve
 1063         alternative attorney fees under certain circumstances;
 1064         conforming a cross-reference; amending s. 624.482,
 1065         F.S.; conforming a provision to changes made by the
 1066         act; amending s. 627.041, F.S.; redefining terms;
 1067         amending s. 627.0612, F.S.; adding prospective loss
 1068         costs to a list of reviewable matters in certain
 1069         proceedings by appellate courts; amending s. 627.062,
 1070         F.S.; prohibiting loss costs for specified classes of
 1071         insurance from being excessive, inadequate, or
 1072         unfairly discriminatory; amending s. 627.0645, F.S.;
 1073         deleting an annual base rate filing requirement
 1074         exception relating to workers’ compensation and
 1075         employer’s liability insurance for certain rating
 1076         organizations; amending s. 627.072, F.S.; requiring
 1077         certain factors to be used in determining and fixing
 1078         loss costs; deleting a specified methodology that may
 1079         be used by the Office of Insurance Regulation in rate
 1080         determinations; amending s. 627.091, F.S.; defining
 1081         terms; requiring insurers or insurer groups writing
 1082         workers’ compensation and employer’s liability
 1083         insurances to independently and individually file
 1084         their proposed final rates; specifying requirements
 1085         for such filings; deleting a requirement that such
 1086         filings contain certain information; revising
 1087         requirements for supporting information required to be
 1088         furnished to the office under certain circumstances;
 1089         deleting a specified method for insurers to satisfy
 1090         filing obligations; specifying requirements for a
 1091         licensed rating organization that elects to develop
 1092         and file certain reference filings and certain other
 1093         information; authorizing insurers to use supplementary
 1094         rating information approved by the office; revising
 1095         applicability of public meetings and records
 1096         requirements to certain meetings of recognized rating
 1097         organization committees; requiring certain insurer
 1098         groups to file underwriting rules not contained in
 1099         rating manuals; amending s. 627.093, F.S.; revising
 1100         applicability of public meetings and records
 1101         requirements to prospective loss cost filings or
 1102         appeals; amending s. 627.101, F.S.; conforming a
 1103         provision to changes made by the act; amending s.
 1104         627.211, F.S.; deleting provisions relating to
 1105         deviations; requiring that the office’s annual report
 1106         to the Legislature relating to the workers’
 1107         compensation insurance market evaluate insurance
 1108         company solvency; creating s. 627.2151, F.S.; defining
 1109         the term “defense and cost containment expenses” or
 1110         “DCCE”; requiring insurer groups or insurers writing
 1111         workers’ compensation insurance to file specified
 1112         schedules with the office at specified intervals;
 1113         providing construction relating to excessive DCCE;
 1114         requiring the office to order returns of excess
 1115         amounts of DCCE, subject to certain hearing
 1116         requirements; providing requirements for, and an
 1117         exception from, the return of excessive DCCE amounts;
 1118         providing construction; amending s. 627.291, F.S.;
 1119         providing applicability of certain disclosure and
 1120         hearing requirements for rating organizations filing
 1121         prospective loss costs; amending s. 627.318, F.S.;
 1122         providing applicability of certain recordkeeping
 1123         requirements for rating organizations or insurers
 1124         filing or using prospective loss costs, respectively;
 1125         amending s. 627.361, F.S.; providing applicability of
 1126         a prohibition against false or misleading information
 1127         relating to prospective loss costs; amending s.
 1128         627.371, F.S.; providing applicability of certain
 1129         hearing procedures and requirements relating to the
 1130         application, making, or use of prospective loss costs;
 1131         providing appropriations; providing effective dates.