Amendment

Bill No. 1251

Amendment No. 636991

CHAMBER ACTION
Senate		House
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1	Representative Berfield offered the following:
2
3	Amendment (with title amendment)
4	Remove line(s) 561-580 and insert:
5	Section 2.  Notwithstanding the provisions of ss. 440.50
6	and 440.51, Florida Statutes, subject to the following
7	procedures and approval, the Department of Financial Services
8	may request transfer funds from the Workers' Compensation
9	Administration Trust Fund within the Department of Financial
10	Services to the workers' compensation joint underwriting plan
11	provided in s. 627.311(5), Florida Statutes.
12	(1)  For actuarial deficits projected for policyholders,
13	based on actuarial best estimates, covered in subplan "D" prior
14	to July 1, 2004, and upon verification by the Office of
15	Insurance Regulation, the plan is authorized to request the
16	department to submit a budget amendment in an amount not to
17	exceed $10 million for the purpose of funding deficits in
18	subplan "D." The department shall submit a budget amendment in
19	an amount not to exceed $10 million to provide for transfer
20	authority from the Workers' Compensation Administration Trust
21	Fund subject to the approval of the Legislative Budget
22	Commission. An amount not to exceed $10 million shall be held in
23	reserve and released upon approval by the Legislative Budget
24	Commission pursuant to chapter 216, Florida Statutes. The
25	department shall establish a contingency reserve within the
26	Workers' Compensation Administration Trust Fund in an amount no
27	to exceed $10 million.
28	(2)  After the contingency reserve is established, whenever
29	the board determines the plan does not have a sufficient cash
30	basis to meet 3 months of projected cash needs due to any
31	deficit in subplan "D," the board is authorized to request the
32	department to transfer funds from the contingency reserve fund
33	within the Workers' Compensation Administration Trust Fund to
34	the plan in an amount sufficient to fund the difference between
35	the amount available and the amount needed to meet the plan's
36	projected cash need for the subsequent 3-month period. The board
37	and the office must first certify to the Department of Financial
38	Services that there is not sufficient cash within the plan to
39	meet the projected cash needs in subplan "D" within the
40	subsequent 3 months. The amount requested for transfer to the
41	plan may not exceed the difference between the amount available
42	within the plan and the amount needed to meet the plan's
43	projected cash need for the subsequent 3-month period, as
44	jointly certified by the board and the Office of Insurance
45	Regulation to the Department of Financial Services, attributable
46	to the former subplan "D" policyholders. The Department of
47	Financial Services may submit a budget amendment to request
48	release of funds from the Workers' Compensation Administration
49	Trust Fund, subject to the approval of the Legislative Budget
50	Commission. The board will provide, for review of the
51	Legislative Budget Commission, information on the reasonableness
52	of the plan's administration, including, but not limited to, the
53	plan of operations and costs, claims costs, claims
54	administration costs, overhead costs, claims reserves, and the
55	latest report submitted on administration cost reduction
56	alternatives as required in s. 627.311(5)(c)17., Florida
57	Statutes.
58	(3)  This section expires July 1, 2007.
59	Section 3.  The Auditor General shall perform an
60	operational audit, as defined in s. 11.45(1), Florida Statutes,
61	of the Workers' Compensation Joint Underwriting Association
62	created under s. 627.311(5), Florida Statutes. The scope of the
63	audit shall also include:
64	(1)  An analysis of the adequacy and appropriateness of the
65	rates and reserves of the association. The Auditor General shall
66	engage an independent consulting actuary who is a member of the
67	American Academy of Actuaries or the Casualty Actuarial Society
68	to evaluate the rates and the reserves of the association.
69	(2)  An evaluation of costs associated with the
70	administration and servicing of the policies issued by the
71	association to determine alternatives by which costs can be
72	reduced.
73
74	The Auditor General shall submit a report to the Governor, the
75	President of the Senate, and the Speaker of the House of
76	Representatives no later than December 31, 2004.
77	Section 4.  The Workers' Compensation Joint Underwriting
78	Association is subject to the Florida Single Audit Act, as
79	provided in s. 215.97, Florida Statutes, if the association
80	expends a total amount of state financial assistance equal to or
81	in excess of $300,000 in any fiscal year. Such audit reports
82	shall be submitted to the President of the Senate, the Speaker
83	of the House of Representatives, and the Governor pursuant to s.
84	215.97, Florida Statutes.
85	Section 5.  The sum of $50,000 in nonrecurring funds is
86	appropriated from the Worker's Compensation Administration Trust
87	Fund to the Office of the Auditor General for the purpose of
88	engaging an actuary to evaluate the rates and reserves of the
89	Florida Workers' compensation Joint Underwriting Association as
90	required in section 3.
91
92	================ T I T L E  A M E N D M E N T =============
93	Remove line(s) 25-44 and insert:
94	funding of the plan through deficit funding; providing for
95	transferring an appropriation in an amount not to exceed
96	$10 million from the Workers' Compensation Administration
97	Trust Fund to the workers' compensation joint underwriting
98	plan for certain purposes; providing procedures and
99	requirements; providing for establishing a contingency
100	reserve for certain purposes; providing for transfers of
101	funds from the contingency reserve in an amount not to
102	exceed $10 million to the plan for purposes of funding
103	certain deficits; providing limitations; providing for
104	review of the reasonableness of the plan's administration;
105	providing a sunset date for deficit funding; providing a
106	mechanism for collecting deficit assessments; providing
107	duties of the office; providing requirements, procedures,
108	and limitations for collecting and enforcing deficit
109	assessments; providing for transfers of funds from the
110	Workers' Compensation Administration Trust Fund to the
111	plan under certain circumstances; providing an exclusion
112	for deficit assessments from certain taxes; specifying
113	that deficit assessments are plan funds when collected;
114	providing notice requirements for certain policies;
115	providing for liability of certain insureds for certain
116	additional deficit assessments; specifying venue for
117	proceedings to enforce or collect assessments; expanding a
118	prohibition against providing certain persons with
119	workers' compensation and employers' liability insurance;
120	providing an exclusion for the plan from certain taxes and
121	assessments; requiring the Auditor General to conduct an
122	operational audit of the association; providing audit
123	requirements; requiring the association to comply with the
124	Florida Single Audit Act, if certain conditions are met;
125	requiring a repor; providing appropriations; providing an
126	effective date.

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