Bill Text: FL S1068 | 2011 | Regular Session | Introduced


Bill Title: Department of Financial Services

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1068 Detail]

Download: Florida-2011-S1068-Introduced.html
       Florida Senate - 2011                                    SB 1068
       
       
       
       By Senator Hays
       
       
       
       
       20-01162-11                                           20111068__
    1                        A bill to be entitled                      
    2         An act relating to the Department of Financial
    3         Services; amending s. 20.121, F.S.; revising duties of
    4         the Division of Consumer Services; amending ss. 284.01
    5         and 284.36, F.S.; revising criteria for premiums
    6         charged to agencies and departments for purposes of
    7         the State Risk Management Trust Fund; amending s.
    8         284.42, F.S.; revising reporting requirements for the
    9         Department of Financial Services and the Department of
   10         Management Services on the state insurance program;
   11         requiring the Division of Risk Management to analyze
   12         and report on certain agency return-to-work programs
   13         and activities; amending s. 284.50, F.S.; requiring
   14         certain agencies to establish and maintain return-to
   15         work programs for certain employees; providing program
   16         goals; requiring the Division of Risk Management to
   17         evaluate agency risk management programs; requiring
   18         reports; requiring agencies to respond to the
   19         division’s evaluation and recommendations within a
   20         specified time; requiring the division to submit the
   21         evaluation report to the legislative appropriations
   22         committees in certain circumstances; amending s.
   23         440.13, F.S.; revising requirements for determining
   24         the amount of a reimbursement for repackaged or
   25         relabeled prescription medication; providing
   26         limitations; amending s. 440.50, F.S.; providing for
   27         reversion of certain unencumbered and undisbursed
   28         funds to the Workers’ Compensation Administration
   29         Trust Fund; providing an effective date.
   30  
   31  Be It Enacted by the Legislature of the State of Florida:
   32  
   33         Section 1. Paragraph (h) of subsection (2) of section
   34  20.121, Florida Statutes, is amended to read:
   35         20.121 Department of Financial Services.—There is created a
   36  Department of Financial Services.
   37         (2) DIVISIONS.—The Department of Financial Services shall
   38  consist of the following divisions:
   39         (h) The Division of Consumer Services.
   40         1. The Division of Consumer Services shall perform the
   41  following functions concerning products or services regulated by
   42  the department of Financial Services or by either office of the
   43  Office of Insurance Regulation Financial Services Commission:
   44         a. Receive inquiries and complaints from consumers.
   45         b. Prepare and disseminate such information as the
   46  department deems appropriate to inform or assist consumers.
   47         c. Provide direct assistance and advocacy for consumers who
   48  request such assistance or advocacy.
   49         d. With respect to apparent or potential violations of law
   50  or applicable rules by a person or entity licensed by the
   51  department or office by either office of the commission, report
   52  such apparent or potential violations violation to the office or
   53  the appropriate division of the department or office of the
   54  commission, which may take such further action as it deems
   55  appropriate.
   56         e. Designate an employee of the division as primary contact
   57  for consumers on issues relating to sinkholes.
   58         2. Any person licensed or issued a certificate of authority
   59  by the department or by the Office of Insurance Regulation shall
   60  respond, in writing, to the Division of Consumer Services within
   61  20 days after receipt of a written request for information from
   62  the division concerning a consumer complaint. The response must
   63  address the issues and allegations raised in the this complaint.
   64  The division may, in its discretion, impose an administrative
   65  penalty for failure to comply with this subparagraph of in an
   66  amount up to $2,500 per violation upon any entity licensed by
   67  the department or the office of Insurance Regulation and $250
   68  for the first violation, $500 for the second violation, and up
   69  to $1,000 per violation thereafter upon any individual licensed
   70  by the department or the office of Insurance Regulation.
   71         3. The department may adopt rules to administer implement
   72  the provisions of this paragraph.
   73         4. The powers, duties, and responsibilities expressed or
   74  granted in this paragraph do shall not limit the powers, duties,
   75  and responsibilities of the Department of Financial Services,
   76  the Financial Services Commission, the Office of Insurance
   77  Regulation, or the Office of Financial Regulation set forth
   78  elsewhere in the Florida Statutes.
   79         Section 2. Subsection (5) of section 284.01, Florida
   80  Statutes, is amended to read:
   81         284.01 State Risk Management Trust Fund; coverages to be
   82  provided.—
   83         (5) Premiums charged to agencies for coverage shall be
   84  adopted promulgated on a retrospective rating arrangement based
   85  upon actual losses accruing to the fund and loss prevention
   86  results, taking into account reasonable expectations,
   87  maintenance, and stability of the fund and cost of reinsurance.
   88         Section 3. Section 284.36, Florida Statutes, is amended to
   89  read:
   90         284.36 Appropriation deposits; premium payment.—Premiums
   91  for coverage by the State Risk Management Trust Fund as
   92  calculated on all coverages shall be billed and charged to each
   93  state agency according to coverages obtained by the fund for
   94  their benefit, and such obligations shall be paid promptly by
   95  each agency from its operating budget upon presentation of a
   96  bill therefor. After the first year of operation, premiums to be
   97  charged to all departments of the state are to be computed on a
   98  retrospective rating arrangement based upon actual losses
   99  accruing to the fund and loss prevention results, taking into
  100  account reasonable expectations, the maintenance and stability
  101  of the fund, and the cost of insurance.
  102         Section 4. Section 284.42, Florida Statutes, is amended to
  103  read:
  104         284.42 Reports on state insurance program.—
  105         (1) The Department of Financial Services, with the
  106  Department of Management Services, shall conduct make an
  107  analysis of the state insurance program each year and submit the
  108  results on or before January 1 in a report to the Governor, the
  109  President of the Senate, and the Speaker of the House of
  110  Representatives annually, which must shall include:
  111         (a) Complete underwriting information as to the nature of
  112  the risks accepted for self-insurance and those risks that are
  113  transferred to the insurance market.
  114         (b) The funds allocated to the Florida Casualty Risk
  115  Management Trust Fund and premiums paid for insurance through
  116  the market.
  117         (c) The method of handling legal matters and the cost
  118  allocated.
  119         (d) The method and cost of handling inspection and
  120  engineering of risks.
  121         (e) The cost of risk management service purchased.
  122         (f) The cost of managing the State Insurance Program by the
  123  Department of Financial Services and the Department of
  124  Management Services.
  125         (2) The Department of Financial Services and the Department
  126  of Management Services departments shall make available complete
  127  claims history including description of loss, claims paid and
  128  reserved, and the cost of all claims handled by the state.
  129         (3) Beginning January 1, 2012, the Division of Risk
  130  Management shall include in its annual report an analysis of
  131  agency return-to-work efforts, including, but not limited to,
  132  agency return-to-work program performance metrics and a status
  133  report on participating return-to-work programs. The report must
  134  specify benchmarks, including, but not limited to, the average
  135  lost-time claims per year, per agency; the total number of lost
  136  claims; and specific agency measurable outcomes indicating the
  137  change in performance from year to year.
  138         Section 5. Subsections (3) and (4) are added to section
  139  284.50, Florida Statutes, to read:
  140         284.50 Loss prevention program; safety coordinators;
  141  Interagency Advisory Council on Loss Prevention; employee
  142  recognition program.—
  143         (3) All agencies that are provided workers’ compensation
  144  insurance coverage by the State Risk Management Trust Fund which
  145  employ more than 6,000 full-time employees shall establish and
  146  maintain return-to-work programs for employees who are receiving
  147  workers’ compensation benefits. Such programs shall have the
  148  primary goal of enabling injured employees to remain at work or
  149  return to work to perform job duties within the physical or
  150  mental functional limitations and restrictions established by
  151  the employees’ treating physicians. If such limitations or
  152  restrictions are not established in writing by an employee’s
  153  treating physician, the employee shall be deemed to be able to
  154  fully perform the same job duties he or she performed before the
  155  injury.
  156         (4) The Division of Risk Management shall evaluate each
  157  agency’s risk management programs, including, but not limited
  158  to, return-to-work, safety, and loss prevention programs, at
  159  least once every 5 years. Reports, including any recommended
  160  corrective action resulting from such evaluations, shall be
  161  provided to the head of the agency being evaluated, the Chief
  162  Financial Officer, and the director of the Division of Risk
  163  Management. The agency head must provide to the Division of Risk
  164  Management a response to all report recommendations within 45
  165  days and a plan to implement any corrective action to be taken
  166  as part of the response. If the agency disagrees with any final
  167  report recommendations, including any recommended corrective
  168  action, or if the agency fails to implement any recommended
  169  corrective action within a reasonable time, the division shall
  170  submit the evaluation report to the appropriate legislative
  171  appropriations committees.
  172         Section 6. Paragraph (c) of subsection (12) of section
  173  440.13, Florida Statutes, is amended to read:
  174         440.13 Medical services and supplies; penalty for
  175  violations; limitations.—
  176         (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
  177  REIMBURSEMENT ALLOWANCES.—
  178         (c) As to reimbursement for a prescription medication,
  179  regardless of the location or provider from whom the claimant
  180  receives the prescription medication, the reimbursement amount
  181  for a prescription shall be the average wholesale price plus
  182  $4.18 for the dispensing fee, unless except where the carrier
  183  has contracted for a lower amount. If the drug has been
  184  repackaged or relabeled, the reimbursement amount shall be
  185  calculated by multiplying the number of units dispensed times
  186  the per-unit average wholesale price set by the original
  187  manufacturer of the underlying drug, which may not be the
  188  manufacturer of the repackaged or relabeled drug, plus a $4.18
  189  dispensing fee, unless the carrier has contracted for a lower
  190  amount. The repackaged or relabeled drug price may not exceed
  191  the amount otherwise payable had the drug not been repackaged or
  192  relabeled. Fees for pharmaceuticals and pharmaceutical services
  193  shall be reimbursable at the applicable fee schedule amount. If
  194  Where the employer or carrier has contracted for such services
  195  and the employee elects to obtain them through a provider not a
  196  party to the contract, the carrier shall reimburse at the
  197  schedule, negotiated, or contract price, whichever is lower. No
  198  Such contract may not shall rely on a provider that is not
  199  reasonably accessible to the employee.
  200         Section 7. Subsection (5) is added to section 440.50,
  201  Florida Statutes, to read:
  202         440.50 Workers’ Compensation Administration Trust Fund.—
  203         (5) Funds appropriated by operating appropriation or
  204  nonoperating transfer from the Workers’ Compensation
  205  Administration Trust Fund to the Department of Education, the
  206  Agency for Health Care Administration, the Department of
  207  Business and Professional Regulation, the Department of
  208  Management Services, the First District Court of Appeal, and the
  209  Justice Administrative Commission which remain unencumbered as
  210  of June 30 or undisbursed as of September 30 each year revert to
  211  the Workers’ Compensation Administration Trust Fund.
  212         Section 8. This act shall take effect July 1, 2011.

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