Bill Text: FL S1582 | 2012 | Regular Session | Introduced
Bill Title: Florida Birth-Related Neurological Injury Compensation Association
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2012-03-09 - Died in Health Regulation [S1582 Detail]
Download: Florida-2012-S1582-Introduced.html
Florida Senate - 2012 SB 1582 By Senator Storms 10-00625-12 20121582__ 1 A bill to be entitled 2 An act relating to the Florida Birth-Related 3 Neurological Injury Compensation Association; amending 4 s. 766.303, F.S.; requiring that the association 5 administer the Florida Birth-Related Neurological 6 Injury Compensation Plan in a manner that promotes and 7 protects the health and best interests of children 8 having birth-related neurological injuries; amending 9 s. 766.315, F.S.; revising the membership of the board 10 of directors of the Florida Birth-Related Neurological 11 Injury Compensation Plan; revising the process for 12 recommending new directors; authorizing the Governor 13 or the Chief Financial Officer to remove a director 14 from office for specified reasons; revising the powers 15 of the directors; providing that meetings of the board 16 of directors are subject to the requirements of the 17 public meetings law; providing an effective date. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. Subsection (4) is added to section 766.303, 22 Florida Statutes, to read: 23 766.303 Florida Birth-Related Neurological Injury 24 Compensation Plan; exclusiveness of remedy.— 25 (4) The association shall administer the plan in a manner 26 that promotes and protects the health and best interests of 27 children having birth-related neurological injuries. 28 Section 2. Section 766.315, Florida Statutes, is amended to 29 read: 30 766.315 Florida Birth-Related Neurological Injury 31 Compensation Association; board of directors.— 32 (1)(a) The Florida Birth-Related Neurological Injury 33 Compensation Plan shall be governed by a board of sevenfive34 directors which shall be known as the Florida Birth-Related 35 Neurological Injury Compensation Association. The association is 36 not a state agency, board, or commission. Notwithstanding the 37 provision of s. 15.03, the association mayis authorized touse 38 the state seal. 39 (b) The directors shall be appointed for staggered terms of 40 3 years or until their successors are appointed and have 41 qualified. 42 (c) The directors shall be appointed by the Chief Financial 43 Officer as follows: 44 1. One citizen representative who is not affiliated with 45 any of the groups identified in subparagraphs 2.-7. 46 2. One representative of participating physicians. 47 3. One representative of hospitals. 48 4. One representative of casualty insurers. 49 5. One representative of physicians other than 50 participating physicians. 51 6. One parent or guardian of a child, living or deceased, 52 who is or was a beneficiary of the plan. 53 7. One member in good standing of The Florida Bar who is 54 not affiliated with any of the groups identified in 55 subparagraphs 2.-6. and who has experience representing cases on 56 behalf of children who have been injured in a health care 57 setting. 58 (2)(a) The Chief Financial Officer may select the 59 representative of the participating physicians from a list of at 60 least three names to be recommended by the Florida Obstetric and 61 Gynecologic Society; the representative of hospitals from a list 62 of at least three names to be recommended by the Florida 63 Hospital Association; the representative of casualty insurers 64 from a list of at least three names, one of which is recommended 65 by the American Insurance Association, one by the Alliance of 66 American Insurers, and one by the National Association of 67 Independent Insurers;andthe representative of physicians other 68 than participating physicians from a list of three names to be 69 recommended by the Florida Medical Association and a list of 70 three names to be recommended by the Florida Osteopathic Medical 71 Association; the parent or guardian of a child from a list of 72 three names to be recommended by the Governor; and the member of 73 The Florida Bar from a list of three names to be recommended by 74 the President of The Florida Bar.In no case shallThe Chief 75 Financial Officer is notbebound to make any appointment from 76 among the nominees of such respective associations. 77 (b) The Chief Financial Officer shall promptly notify the 78 appropriatemedicalassociation or person identified in 79 paragraph (a) which makes recommendations upon the occurrence of 80 any vacancy, and like nominations may be made for the filling of 81 the vacancy. 82 (c) The Governor or the Chief Financial Officer may remove 83 a director from office for misconduct, malfeasance, misfeasance, 84 or neglect of duty in office. Any vacancy so created shall be 85 filled as provided in paragraph (a). 86 (3) The directors mayshallnot transact any business or 87 exercise any power of the plan except upon the affirmative vote 88 of fourthreedirectors. The directors shall serve without 89 salary, but are entitled to receive reimbursementeach director90shall be reimbursedfor actual and necessary expenses incurred 91 in the performance ofhis or herofficial duties as directorsa92directorof the plan in accordance with s. 112.061. The 93 directors areshallnotbesubject to any liability with respect 94 to the administration of the plan. 95 (4) The board of directors hasshall havethe power to: 96 (a) Administer the plan. 97 (b) Administer the funds collected on behalf of the plan. 98 (c) Administer the payment of claims on behalf of the plan. 99 (d) Direct the investment and reinvestment of any surplus 100 funds over losses and expenses, ifprovided thatany investment 101 income generated thereby remains credited to the plan. 102 (e) Reinsure the risks of the plan in whole or in part. 103 (f) Sue and be sued, and appear and defend, in all actions 104 and proceedings in its name to the same extent as a natural 105 person. 106 (g) Have and exercise all powers necessary or convenient to 107 effect any or all of the purposes for which the plan is created. 108 (h) Enter into such contracts as are necessary or proper to 109 administer the plan. 110 (i) Employ or retain such persons as are necessary to 111 perform the administrative and financial transactions and 112 responsibilities of the plan and to perform other necessary and 113 proper functions not prohibited by law. 114 (j) Take such legal action as may be necessary to avoid 115 payment of improper claims. 116 (k) Indemnify any employee, agent, member of the board of 117 directors or alternate thereof, or person acting on behalf of 118 the plan in an official capacity, for expenses, including 119 attorneyattorney’sfees, judgments, fines, and amounts paid in 120 settlement actually and reasonably incurred in connection with 121 any action, suit, or proceeding, including any appeal thereof, 122 arising out of such person’s capacity to actactingon behalf of 123 the plan, if; provided thatsuch person acted in good faith and 124 in a manner he or she reasonably believed to be in, or not 125 opposed to, the best interests of the plan and the health and 126 best interest of the child having birth-related neurological 127 injuries, and ifprovided that, with respect to any criminal 128 action or proceeding, suchtheperson had reasonable cause to 129 believe his or her conduct was lawful. 130 (5)(a) Money may be withdrawn on account of the plan only 131 upon a voucher as authorized by the association. 132 (b) All meetings of the board of directors are subject to 133 the requirements of s. 286.011, and all books, records, and 134 audits of the plan are open to the public for reasonable 135 inspectionto the general public, except that a claim file in 136 the possession of the association or its representative is 137 confidential and exempt from the provisions of s. 119.07(1) and 138 s. 24(a), Art. I of the State Constitution until termination of 139 litigation or settlement of the claim, although medical records 140 and other portions of the claim file may remain confidential and 141 exempt as otherwise provided by law. Any book, record, document, 142 audit, or asset acquired by, prepared for, or paid for by the 143 association is subject to the authority of the board of 144 directors, which is responsible therefor. 145 (c) Each person authorized to receive deposits, issue 146 vouchers, or withdraw or otherwise disburse any funds shall post 147 a blanket fidelity bond in an amount reasonably sufficient to 148 protect plan assets, as determined by the plan of operation. The 149 cost of such bond will be paid from the assets of the plan. 150 (d) Annually, the association shall furnish audited 151 financial reports to any plan participant upon request, to the 152 Office of Insurance Regulation of the Financial Services 153 Commission, and to the Joint Legislative Auditing Committee. The 154 reports must be prepared in accordance with accepted accounting 155 procedures and must include such information as may be required 156 by the Office of Insurance Regulation or the Joint Legislative 157 Auditing Committee. At any time determined to be necessary, the 158 Office of Insurance Regulation or the Joint Legislative Auditing 159 Committee may conduct an audit of the plan. 160 (e) Funds held on behalf of the plan are funds of the State 161 of Florida. The association mayonlyinvest plan funds only in 162 the investments and securities described in s. 215.47, and is 163shall besubject to the limitations on investments contained in 164 that section. All income derived from such investments shall 165willbe credited to the plan. The State Board of Administration 166 may invest and reinvest funds held on behalf of the plan in 167 accordance with the trust agreement approved by the association 168 and the State Board of Administration and within the provisions 169 of ss. 215.44-215.53. 170 Section 3. This act shall take effect July 1, 2012.