Bill Text: FL H5605 | 2011 | Regular Session | Introduced

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Bill Title: Department of Financial Services

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-04-07 - Read 3rd time -HJ 470 [H5605 Detail]

Download: Florida-2011-H5605-Introduced.html

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HB 5605

1	A bill to be entitled
2	An act relating to the Department of Financial Services;
3	amending s. 20.121, F.S.; revising duties of the Division
4	of Consumer Services; amending ss. 284.01 and 284.36,
5	F.S.; revising criteria for premiums charged to agencies
6	and departments for purposes of the State Risk Management
7	Trust Fund; amending s. 284.42, F.S.; revising reporting
8	requirements on the state insurance program; requiring the
9	Division of Risk Management to analyze and report on
10	certain agency return-to-work programs and activities;
11	amending s. 284.50, F.S.; requiring certain agencies to
12	establish and maintain return-to-work programs for certain
13	employees; providing program goals; requiring the Division
14	of Risk Management to evaluate agency risk management
15	programs; requiring reports; requiring agencies to respond
16	to the division's evaluation and recommendations;
17	requiring the division to submit a report of an evaluation
18	to the appropriations committees of the Legislature under
19	certain circumstances; amending s. 440.50, F.S.; providing
20	for reversion of certain unencumbered and undisbursed
21	funds to the Workers' Compensation Administration Trust
22	Fund; providing an effective date.
23
24	Be It Enacted by the Legislature of the State of Florida:
25
26	Section 1.  Paragraph (h) of subsection (2) of section
27	20.121, Florida Statutes, is amended to read:
28	20.121  Department of Financial Services.-There is created
29	a Department of Financial Services.
30	(2)  DIVISIONS.-The Department of Financial Services shall
31	consist of the following divisions:
32	(h)  The Division of Consumer Services.
33	1.  The Division of Consumer Services shall perform the
34	following functions concerning products or services regulated by
35	the department of Financial Services or by either office of the
36	Office of Insurance Regulation Financial Services Commission:
37	a.  Receive inquiries and complaints from consumers.
38	b.  Prepare and disseminate such information as the
39	department deems appropriate to inform or assist consumers.
40	c.  Provide direct assistance and advocacy for consumers
41	who request such assistance or advocacy.
42	d.  With respect to apparent or potential violations of law
43	or applicable rules by a person or entity licensed by the
44	department or office by either office of the commission, report
45	such apparent or potential violations violation to the office or
46	the appropriate division of the department or office of the
47	commission, which may take such further action as it deems
48	appropriate.
49	e.  Designate an employee of the division as primary
50	contact for consumers on issues relating to sinkholes.
51	2.  Any person licensed or issued a certificate of
52	authority by the department or by the Office of Insurance
53	Regulation shall respond, in writing, to the Division of
54	Consumer Services within 20 days after receipt of a written
55	request for information from the division concerning a consumer
56	complaint. The response must address the issues and allegations
57	raised in the this complaint. The division may, in its
58	discretion, impose an administrative penalty for failure to
59	comply with this subparagraph of in an amount up to $2,500 per
60	violation upon any entity licensed by the department or the
61	office of Insurance Regulation and $250 for the first violation,
62	$500 for the second violation, and up to $1,000 per violation
63	thereafter upon any individual licensed by the department or the
64	office of Insurance Regulation.
65	3.  The department may adopt rules to implement the
66	provisions of this paragraph.
67	4.  The powers, duties, and responsibilities expressed or
68	granted in this paragraph do shall not limit the powers, duties,
69	and responsibilities of the department of Financial Services,
70	the Financial Services Commission, the Office of Insurance
71	Regulation, or the Office of Financial Regulation set forth
72	elsewhere in the Florida Statutes.
73	Section 2.  Subsection (5) of section 284.01, Florida
74	Statutes, is amended to read:
75	284.01  State Risk Management Trust Fund; coverages to be
76	provided.-
77	(5)  Premiums charged to agencies for coverage shall be
78	adopted promulgated on a retrospective rating arrangement based
79	upon actual losses accruing to the fund and loss prevention
80	results, taking into account reasonable expectations,
81	maintenance, and stability of the fund and cost of reinsurance.
82	Section 3.  Section 284.36, Florida Statutes, is amended to
83	read:
84	284.36  Appropriation deposits; premium payment.-Premiums
85	for coverage by the State Risk Management Trust Fund as
86	calculated on all coverages shall be billed and charged to each
87	state agency according to coverages obtained by the fund for
88	their benefit, and such obligations shall be paid promptly by
89	each agency from its operating budget upon presentation of a
90	bill therefor. After the first year of operation, premiums to be
91	charged to all departments of the state are to be computed on a
92	retrospective rating arrangement based upon actual losses
93	accruing to the fund and loss prevention results, taking into
94	account reasonable expectations, the maintenance and stability
95	of the fund, and the cost of insurance.
96	Section 4.  Subsection (1) of section 284.42, Florida
97	Statutes, is amended to read:
98	284.42  Reports on state insurance program.-
99	(1)(a)  The Department of Financial Services, with the
100	Department of Management Services, shall conduct make an
101	analysis of the state insurance program each year and, on or
102	before January 1, submit a report containing the results of the
103	analysis to the Governor, the President of the Senate, and the
104	Speaker of the House of Representatives annually, which shall
105	include:
106	1.(a)  Complete underwriting information as to the nature
107	of the risks accepted for self-insurance and those risks that
108	are transferred to the insurance market.
109	2.(b)  The funds allocated to the Florida Casualty Risk
110	Management Trust Fund and premiums paid for insurance through
111	the market.
112	3.(c)  The method of handling legal matters and the cost
113	allocated.
114	4.(d)  The method and cost of handling inspection and
115	engineering of risks.
116	5.(e)  The cost of risk management service purchased.
117	6.(f)  The cost of managing the State Insurance Program by
118	the Department of Financial Services and the Department of
119	Management Services.
120	(b)  Beginning January 1, 2013, the Division of Risk
121	Management must include in its annual report an analysis of
122	agency return-to-work efforts, including, but not limited to,
123	agency return-to-work program performance metrics and a status
124	report on participating return-to-work programs. The report must
125	specify benchmarks, including, but not limited to, the average
126	lost-time claims per year for each agency; the total number of
127	lost claims; and specific agency measurable outcomes indicating
128	the change in performance from year to year.
129	Section 5.  Subsections (3) and (4) are added to section
130	284.50, Florida Statutes, to read:
131	284.50  Loss prevention program; safety coordinators;
132	Interagency Advisory Council on Loss Prevention; employee
133	recognition program.-
134	(3)  The Department of Financial Services and all agencies
135	that employ more than 3,500 full-time employees and are provided
136	workers' compensation insurance coverage by the State Risk
137	Management Trust Fund shall establish and maintain return-to-
138	work programs for employees who are receiving workers'
139	compensation benefits. The primary goal of such programs is to
140	enable injured workers to remain at work or return to work to
141	perform job duties within the physical or mental functional
142	limitations and restrictions established by the workers'
143	treating physicians. If limitations or restrictions are not
144	established in writing by a worker's treating physician, the
145	worker is deemed fully able to perform the same work duties he
146	or she performed before the injury.
147	(4)  The Division of Risk Management must evaluate each
148	agency's risk management programs, including, but not limited
149	to, return-to-work, safety, and loss prevention programs, at
150	least once every 5 years. A report, including, but not limited
151	to, any recommended corrective action, that results from an
152	evaluation must be provided to the head of the agency being
153	evaluated, the Chief Financial Officer, and the Director of the
154	Division of Risk Management. The agency head must provide to the
155	Division of Risk Management a response to all recommendations in
156	the report within 45 days after receipt of the report and a plan
157	for implementing any corrective action the agency intends to
158	take in response to the report. If the agency disagrees with any
159	final recommendations in the report, including, but not limited
160	to, any recommended corrective action or the agency fails to
161	implement any recommended corrective action within a reasonable
162	time, the division must submit a report of the evaluation to the
163	appropriations committees of the Legislature.
164	Section 6.  Subsection (5) is added to section 440.50,
165	Florida Statutes, to read:
166	440.50  Workers' Compensation Administration Trust Fund.-
167	(5)  Funds appropriated by operating appropriation or
168	nonoperating transfer from the Workers' Compensation
169	Administration Trust Fund to the Department of Education, the
170	Agency for Health Care Administration, the Department of
171	Business and Professional Regulation, the Department of
172	Management Services, the First District Court of Appeal, and the
173	Justice Administrative Commission remaining unencumbered on June
174	30 or undisbursed on September 30 each year revert to the
175	Workers' Compensation Administration Trust Fund.
176	Section 7.  This act shall take effect July 1, 2011.

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