Bill Text: FL H5603 | 2010 | Regular Session | Engrossed

Bill Title: Department of Financial Services [WPSC]

Spectrum: Partisan Bill (Republican 1-0)

Status: (Vetoed) 2010-07-19 - Veto Message received -HJ 00011; Veto Message referred to Rules and Calendar Council -HJ 00016 [H5603 Detail]

Download: Florida-2010-H5603-Engrossed.html
HB 5603
A bill to be entitled
2An act relating to the Department of Financial Services;
3amending s. 20.121, F.S.; revising duties of the Division
4of Consumer Services; amending ss. 284.01 and 284.36,
5F.S.; revising criteria for premiums charged to agencies
6and departments for purposes of the State Risk Management
7Trust Fund; amending s. 284.42, F.S.; revising reporting
8requirements on the state insurance program; requiring the
9Division of Risk Management to analyze and report on
10certain agency return-to-work programs and activities;
11amending s. 284.50, F.S.; requiring certain agencies to
12establish and maintain return-to-work programs for certain
13employees; providing program goals; requiring the Division
14of Risk Management to evaluate agency risk management
15programs; requiring reports; requiring agencies to respond
16to the division's evaluation and recommendations;
17requiring the division to submit the evaluation report to
18the legislative appropriations committees; amending s.
19440.13, F.S.; revising requirements for determining the
20amount of a reimbursement for repackaged or relabeled
21prescription medication; providing limitations; amending
22s. 440.50, F.S.; providing for reversion of certain
23unencumbered and undisbursed funds to the Workers'
24Compensation Administration Trust Fund; providing an
25effective date.
27Be It Enacted by the Legislature of the State of Florida:
29 Section 1. Paragraph (h) of subsection (2) of section
3020.121, Florida Statutes, is amended to read:
31 20.121 Department of Financial Services.-There is created
32a Department of Financial Services.
33 (2) DIVISIONS.-The Department of Financial Services shall
34consist of the following divisions:
35 (h) The Division of Consumer Services.
36 1. The Division of Consumer Services shall perform the
37following functions concerning products or services regulated by
38the department of Financial Services or by either office of the
39Office of Insurance Regulation Financial Services Commission:
40 a. Receive inquiries and complaints from consumers.
41 b. Prepare and disseminate such information as the
42department deems appropriate to inform or assist consumers.
43 c. Provide direct assistance and advocacy for consumers
44who request such assistance or advocacy.
45 d. With respect to apparent or potential violations of law
46or applicable rules by a person or entity licensed by the
47department or office by either office of the commission, report
48such apparent or potential violations violation to the office or
49the appropriate division of the department or office of the
50commission, which may take such further action as it deems
52 e. Designate an employee of the division as primary
53contact for consumers on issues relating to sinkholes.
54 2. Any person licensed or issued a certificate of
55authority by the department or by the Office of Insurance
56Regulation shall respond, in writing, to the Division of
57Consumer Services within 20 days after receipt of a written
58request for information from the division concerning a consumer
59complaint. The response must address the issues and allegations
60raised in the this complaint. The division may, in its
61discretion, impose an administrative penalty for failure to
62comply with this subparagraph of in an amount up to $2,500 per
63violation upon any entity licensed by the department or the
64office of Insurance Regulation and $250 for the first violation,
65$500 for the second violation, and up to $1,000 per violation
66thereafter upon any individual licensed by the department or the
67office of Insurance Regulation.
68 3. The department may adopt rules to administer implement
69the provisions of this paragraph.
70 4. The powers, duties, and responsibilities expressed or
71granted in this paragraph do shall not limit the powers, duties,
72and responsibilities of the Department of Financial Services,
73the Financial Services Commission, the Office of Insurance
74Regulation, or the Office of Financial Regulation set forth
75elsewhere in the Florida Statutes.
76 Section 2. Subsection (5) of section 284.01, Florida
77Statutes, is amended to read:
78 284.01 State Risk Management Trust Fund; coverages to be
80 (5) Premiums charged to agencies for coverage shall be
81adopted promulgated on a retrospective rating arrangement based
82upon actual losses accruing to the fund and loss prevention
83results, taking into account reasonable expectations,
84maintenance, and stability of the fund and cost of reinsurance.
85 Section 3. Section 284.36, Florida Statutes, is amended to
87 284.36 Appropriation deposits; premium payment.-Premiums
88for coverage by the State Risk Management Trust Fund as
89calculated on all coverages shall be billed and charged to each
90state agency according to coverages obtained by the fund for
91their benefit, and such obligations shall be paid promptly by
92each agency from its operating budget upon presentation of a
93bill therefor. After the first year of operation, premiums to be
94charged to all departments of the state are to be computed on a
95retrospective rating arrangement based upon actual losses
96accruing to the fund and loss prevention results, taking into
97account reasonable expectations, the maintenance and stability
98of the fund, and the cost of insurance.
99 Section 4. Subsection (1) of section 284.42, Florida
100Statutes, is amended to read:
101 284.42 Reports on state insurance program.-
102 (1)(a) The Department of Financial Services, with the
103Department of Management Services, shall conduct make an
104analysis of the state insurance program each year and submit the
105results on or before January 1 in a report to the Governor, the
106President of the Senate, and the Speaker of the House of
107Representatives annually, which shall include:
108 1.(a) Complete underwriting information as to the nature
109of the risks accepted for self-insurance and those risks that
110are transferred to the insurance market.
111 2.(b) The funds allocated to the Florida Casualty Risk
112Management Trust Fund and premiums paid for insurance through
113the market.
114 3.(c) The method of handling legal matters and the cost
116 4.(d) The method and cost of handling inspection and
117engineering of risks.
118 5.(e) The cost of risk management service purchased.
119 6.(f) The cost of managing the State Insurance Program by
120the Department of Financial Services and the Department of
121Management Services.
122 (b) Beginning January 1, 2012, the Division of Risk
123Management shall include in its annual report an analysis of
124agency return-to-work efforts, including, but not limited to,
125agency return-to-work program performance metrics and a status
126report on participating return-to-work programs. The report
127shall specify benchmarks, including, but not limited to, the
128average lost-time claims per year, per agency; the total number
129of lost claims; and specific agency measurable outcomes
130indicating the change in performance from year to year.
131 Section 5. Subsections (4) and (5) are added to section
132284.50, Florida Statutes, to read:
133 284.50 Loss prevention program; safety coordinators;
134Interagency Advisory Council on Loss Prevention; employee
135recognition program.-
136 (4) All agencies that are provided workers' compensation
137insurance coverage by the State Risk Management Trust Fund that
138employ more than 6,000 full-time employees shall establish and
139maintain return-to-work programs for employees who are receiving
140workers' compensation benefits. Such programs shall have the
141primary goal of enabling injured workers to remain at work or
142return to work to perform job duties within the physical or
143mental functional limitations and restrictions established by
144the workers' treating physicians. If no such limitations or
145restrictions are established in writing by a worker's treating
146physician, the worker shall be deemed to be able to fully
147perform the same work duties he or she performed prior to the
149 (5) The Division of Risk Management shall evaluate each
150agency's risk management programs, including, but not limited
151to, return-to-work, safety, and loss prevention programs, at
152least once every 5 years. Reports, including, but not limited
153to, any recommended corrective action, resulting from such
154evaluations shall be provided to the head of the agency being
155evaluated, the Chief Financial Officer, and the Director of the
156Division of Risk Management. The agency head must provide to the
157Division of Risk Management a response to all report
158recommendations within 45 days and a plan to implement any
159corrective action to be taken as part of the response. If the
160agency disagrees with any final report recommendations,
161including, but not limited to, any recommended corrective
162action, or if the agency fails to implement any recommended
163corrective action within a reasonable time, the division shall
164submit the evaluation report to the legislative appropriations
166 Section 6. Paragraph (c) of subsection (12) of section
167440.13, Florida Statutes, is amended to read:
168 440.13 Medical services and supplies; penalty for
169violations; limitations.-
172 (c) As to reimbursement for a prescription medication,
173regardless of the location or provider from which the claimant
174receives the prescription medication, the reimbursement amount
175for a prescription shall be the average wholesale price plus
176$4.18 for the dispensing fee, except when where the carrier has
177contracted for a lower amount. The reimbursement amount for a
178drug that has been repackaged or relabeled shall be calculated
179by multiplying the number of units dispensed times the per-unit
180average wholesale price set by the original manufacturer of the
181underlying drug, which shall not be the manufacturer of the
182repackaged or relabeled drug, plus a $4.18 dispensing fee,
183except when the carrier has contracted for a lower amount. In no
184case shall the repackaged or relabeled drug price exceed the
185amount otherwise payable had the drug not been repackaged or
186relabeled. Fees for pharmaceuticals and pharmaceutical services
187shall be reimbursable at the applicable fee schedule amount.
188Where the employer or carrier has contracted for such services
189and the employee elects to obtain them through a provider not a
190party to the contract, the carrier shall reimburse at the
191schedule, negotiated, or contract price, whichever is lower. No
192such contract shall rely on a provider that is not reasonably
193accessible to the employee.
194 Section 7. Subsection (5) is added to section 440.50,
195Florida Statutes, to read:
196 440.50 Workers' Compensation Administration Trust Fund.-
197 (5) Funds appropriated by operating appropriation or
198nonoperating transfer from the Workers' Compensation
199Administration Trust Fund to the Department of Education, the
200Agency for Health Care Administration, the Department of
201Business and Professional Regulation, the Department of
202Management Services, the First District Court of Appeal, and the
203Justice Administrative Commission remaining unencumbered as of
204June 30 or undisbursed as of September 30 each year shall revert
205to the Workers' Compensation Administration Trust Fund.
206 Section 8. This act shall take effect July 1, 2010.
CODING: Words stricken are deletions; words underlined are additions.