Senate Bill 2338c1

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



    Florida Senate - 1999                           CS for SB 2338

    By the Committee on Banking and Insurance; and Senators Clary
    and Horne




    311-2181-99

  1                      A bill to be entitled

  2         An act relating to workers' compensation;

  3         creating the Workers' Compensation Rating Law

  4         Study Commission; providing for appointment of

  5         members; requiring the commission to make a

  6         study and recommendations; requiring the staffs

  7         of specified legislative committees to provide

  8         administrative support; authorizing the

  9         commission to contract with independent parties

10         for certain information; entitling commission

11         members to reimbursement for travel and

12         expenses; providing an appropriation; providing

13         an effective date.

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15  Be It Enacted by the Legislature of the State of Florida:

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17         Section 1.  Workers' Compensation Rating Law Study

18  Commission.--

19         (1)  There is created the Workers' Compensation Rating

20  Law Study Commission consisting of the following nine members:

21         (a)  Four members appointed by the President of the

22  Senate, including:

23         1.  Two members of the Senate;

24         2.  A member of an association representing employers;

25  and

26         3.  A member of a domestic workers' compensation

27  insurer.

28         (b)  Four members appointed by the Speaker of the House

29  of Representatives, including:

30         1.  Two members of the House of Representatives;

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    Florida Senate - 1999                           CS for SB 2338
    311-2181-99




  1         2.  A member of an association representing employers;

  2  and

  3         3.  A member of a national workers' compensation

  4  insurer.

  5         (c)  The Insurance Commissioner or his designated

  6  representative within the Department of Insurance.

  7         (2)  Each member may receive per diem and expenses for

  8  travel, as provided in section 112.061, Florida Statutes,

  9  while carrying out official business of the commission.

10         (3)  Appointments must be made by July 1, 1999, and the

11  commission's first meeting must be held by August 15, 1999.

12  The commission shall continue to exist until December 1, 1999.

13  The chairman shall be designated from the membership.

14         Section 2.  Duties and responsibilities.--The Workers'

15  Compensation Rating Law Commission shall:

16         (1)  Hold a minimum of three public hearings, including

17  at least one in Tallahassee, to receive public comment and

18  input relative to Florida's workers' compensation rating law.

19         (2)  Perform a study of Florida's workers' compensation

20  rating law and other state workers' compensation rating law

21  alternatives. The study shall include an analysis of prior

22  approval full-rate, loss-costs, and open-competition rating

23  laws and their impact on rates and premiums.

24         (3)  Make recommendation concerning the most

25  appropriate method for establishing rates and premiums for

26  workers' compensation in Florida.

27         (4)  The staffs of the Senate Banking and Insurance

28  Committee and the House Insurance Committee shall provide

29  administrative support to the study commission. The study

30  commission may contract with independent parties to provide

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    Florida Senate - 1999                           CS for SB 2338
    311-2181-99




  1  such information to the commission as it determines is

  2  necessary to complete its study and recommendations.

  3         (5)  The study commission shall report its findings and

  4  recommendations to the President of the Senate and the Speaker

  5  of the House of Representatives by December 15, 1999.

  6         Section 3.  There is appropriated $100,000 from the

  7  Insurance Commissioner's Regulatory Trust Fund for

  8  implementing the provisions of this act.

  9         Section 4.  This act shall take effect upon becoming a

10  law.

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12          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
13                         Senate Bill 2338

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15  Deletes the provisions of the bill that revised the rating
    laws for worker's compensation to require each insurer to
16  individually file rates with the Department of Insurance and
    to require each insurer that is a member of a rating
17  organization to file its own expense and profit factor to
    supplement the prospective loss cost filing made by the rating
18  organization.

19  Creates the Workers' Compensation Rating Law Study Commission,
    appointed by the President of the Senate and the Speaker of
20  the House of Representatives, including 2 members of the
    Senate, 2 members of the HOuse, 2 representatives of insurers,
21  2 representatives of employers, and the Insurance Commissioner
    or his designee. The study commission would perform a study of
22  Florida's workers' compensation rating law alternatives and
    make recommendations to the Legislature by December 15
23  concerning the most appropriate method for establishing rates
    and premiums for workers' compensation in Florida. The staffs
24  of the Senate Banking and Insurance Committee and the House
    Insurance Committee would provide support services and the
25  commission would be authorized to contract with outside
    independent parties for such information as they determine
26  necessary. The sum of $100,000 is appropriated from the
    Insurance Commissioner's Regulatory Trust Fund for this
27  purpose.

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