| 1 | Representative Berfield offered the following: |
| 2 |
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| 3 | Substitute Amendment for Amendment (927513) (with title |
| 4 | amendment) |
| 5 | Remove line(s) 561-580 and insert: |
| 6 | Section 2. Notwithstanding the provisions of ss. 440.50 |
| 7 | and 440.51, Florida Statutes, subject to the following |
| 8 | procedures and approval, the Department of Financial Services |
| 9 | may request transfer funds from the Workers' Compensation |
| 10 | Administration Trust Fund within the Department of Financial |
| 11 | Services to the workers' compensation joint underwriting plan |
| 12 | provided in s. 627.311(5), Florida Statutes. |
| 13 | (1) For actuarial deficits projected for policyholders, |
| 14 | based on actuarial best estimates, covered in subplan "D" prior |
| 15 | to July 1, 2004, and upon verification by the Office of |
| 16 | Insurance Regulation, the plan is authorized to request the |
| 17 | department to submit a budget amendment for the purpose of |
| 18 | funding deficits in subplan "D." The department shall submit a |
| 19 | budget amendment to provide for transfer authority from the |
| 20 | Workers' Compensation Administration Trust Fund subject to the |
| 21 | approval of the Legislative Budget Commission. The funds |
| 22 | appropriated shall be held in reserve and released upon approval |
| 23 | by the Legislative Budget Commission pursuant to chapter 216, |
| 24 | Florida Statutes. The department shall establish a contingency |
| 25 | reserve within the Workers' Compensation Administration Trust |
| 26 | Fund equal to the approved transfer authority amount. |
| 27 | (2) After the contingency reserve is established, whenever |
| 28 | the board determines the plan does not have a sufficient cash |
| 29 | basis to meet 3 months of projected cash needs due to any |
| 30 | deficit in subplan "D," the board is authorized to request the |
| 31 | department to transfer funds from the contingency reserve fund |
| 32 | within the Workers' Compensation Administration Trust Fund to |
| 33 | the plan in an amount sufficient to fund the difference between |
| 34 | the amount available and the amount needed to meet the plan's |
| 35 | projected cash need for the subsequent 3-month period. The board |
| 36 | and the office must first certify to the Department of Financial |
| 37 | Services that there is not sufficient cash within the plan to |
| 38 | meet the projected cash needs in subplan "D" within the |
| 39 | subsequent 3 months. The amount requested for transfer to the |
| 40 | plan may not exceed the difference between the amount available |
| 41 | within the plan and the amount needed to meet the plan's |
| 42 | projected cash need for the subsequent 3-month period, as |
| 43 | jointly certified by the board and the Office of Insurance |
| 44 | Regulation to the Department of Financial Services, attributable |
| 45 | to the former subplan "D" policyholders. The Department of |
| 46 | Financial Services may submit a budget amendment to request |
| 47 | release of funds from the Workers' Compensation Administration |
| 48 | Trust Fund, subject to the approval of the Legislative Budget |
| 49 | Commission. The board will provide, for review of the |
| 50 | Legislative Budget Commission, information on the reasonableness |
| 51 | of the plan's administration, including, but not limited to, the |
| 52 | plan of operations and costs, claims costs, claims |
| 53 | administration costs, overhead costs, claims reserves, and the |
| 54 | latest report submitted on administration cost reduction |
| 55 | alternatives as required in s. 627.311(5)(c)17., Florida |
| 56 | Statutes. |
| 57 | (3) This section expires July 1, 2007. |
| 58 |
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| 59 | ================ T I T L E A M E N D M E N T ============= |
| 60 | Remove line(s) 25-44 and insert: |
| 61 | funding of the plan through deficit funding; providing for |
| 62 | transferring appropriations from the Workers' Compensation |
| 63 | Administration Trust Fund to the workers' compensation joint |
| 64 | underwriting plan for certain purposes; providing procedures and |
| 65 | requirements; providing for establishing a contingency reserve |
| 66 | for certain purposes; providing for transfers of funds from the |
| 67 | contingency reserve to the plan for purposes of funding certain |
| 68 | deficits; providing limitations; providing for review of the |
| 69 | reasonableness of the plan's administration; providing a sunset |
| 70 | date for deficit funding; providing an effective date. |