Proposed Workers'
Compensation Reform Act of 2001
ADMINISTRATION
JUDGES OF COMPENSATION CLAIMS
Current Situation
Cases involving workers' compensation claims are
currently heard by judges of compensation claims who are housed in the
Division of Workers' Compensation in the Department of Labor and
Employment Security (DLES). The 31 judges are not accountable to any
entity and are subject to pressure in their local jurisdictions. Delays in
hearings on claims occur because there is no one to fill the void left
when positions are vacant, or when the judges take time off.
Recommendation
Since the DLES will be eliminated this year, this
legislation eliminates the positions of chief judge and judge of
compensation claims and moves those functions to the Division of
Administration Hearings (DOAH), which can improve the existing capacity to
control scheduling, case load, time off, and other administrative
functions. The rules for the judges would be promulgated under the
Administrative Procedure Act, but the hearing process would be exempt from
that act.
APPELLATE BODY
Current Situation
Appeals of decisions on claims by judges of
compensation claims are now heard by the First District Court of Appeal.
This body does not always recognize the difference between civil and
common law and the statutory remedy imposed in the workers' compensation
system. The appeals court also has issued too many conflicting opinions,
which subtracts from the self-executive nature of the workers'
compensation system.
Recommendation
This legislation creates the Workers' Compensation
Appeals Commission, similar to bodies that exist in many states, which
would be the first avenue of appeal on claims decisions. The First
District would hear appeals from the Workers' Compensation Appeals
Commission. Attorneys' fees on cases appealed to the First District
would be limited to a maximum of $3,000.
DEPARTMENT OF INSURANCE
Current Situation
The state governmental entities that regulate banking
and insurance are currently headed by Cabinet officers whose positions
will be combined into one, Chief Financial Officer, after the 2002
elections. If state government organization remains unchanged, when that
constitutional amendment goes into effect, one Cabinet officer will be
responsible for the duties and responsibilities now carried out by two.
Recommendation
This legislation would transfer all functions of the
Department of Insurance and the Department of Banking to an entity under
the governor and Cabinet. A commissioner of insurance and a commissioner
of banking would serve at the pleasure of the governor and Cabinet,
subject to Senate confirmation. Both banking and insurance would have a
separate division under the new entity, and each commissioner would have
final agency action.
ADJUSTERS AND MEDIATION
Current Situation
Some mediators require adjusters to physically appear
at mediation sessions, even if the sessions are held held outside of an
adjuster's county. This is a costly, inefficient, and unnecessary use of
adjusters' time.
Recommendation
This bill would authorize adjusters to appear by phone
for mediation session if they are represented by counsel. This would
protect adjusters against abuse by claimants' attorneys while protecting
the mediation system, which is working well.
FUNDING THE DIVISION OF WORKERS'
COMPENSATION
Current Situation
The operation of the Division of Workers'
Compensation is now funded through an assessment on the premiums that
employers pay for their workers' compensation insurance. Employers thus
shoulder the entire burden (approximately $42 million a year) of this
function of state government that serves all citizens.
Recommendation
This legislation transfers funding of the judges of
compensation claims to general revenue, an appropriation of approximately
$16 million a year.
ELIMINATE DOCKETING ORDERS
Current Situation
Judges of compensation claims are required to review
each petition for benefits to ensure that it meets the specificity
requirements of the statute. This slows down process of getting petitions
set for mediation, pretrial hearings, and final hearings.
Recommendation
This legislation eliminates the review process, which
will reduce attorneys' fees and unnecessary paperwork.
SETTING DEFINITE DATES FOR
MEDIATION, PRETRIAL, OR FINAL HEARING
Current Situation
Currently, dates for mediation and pretrial or final
hearings are tentatively scheduled and then canceled and rescheduled.
These delays drive up the costs of the system and delay the delivery of
benefits to claimants for months.
Recommendation
This legislation would require judges of compensation
claims to identify the dates for these sessions in the order. It also
creates more reasonable time frames in the statute. Once the petition
becomes final, mediation must be scheduled within 60 days; a pretrial
conference must be scheduled within 90 days; and a final hearing must be
scheduled within six months. If a session has to be rescheduled, a new
date would be established within a reasonable frame of time and the date
would be put in the order continuing the session.
CONSTRUCTION EXCLUSIONS
Current Situation
In 1993 and 1998, the Florida legislature took steps to
close loopholes in the exemption from workers' compensation coverage
that were available to officers of construction companies. Despite these
actions, fraudulent use of the exemptions continues to exist in the
construction industry.
Recommendation
The legislation eliminates all exemptions from coverage
in the construction industry. This will help protect construction
employees as well as the integrity of the system itself.
CHILD SUPPORT ENFORCEMENT
Current Situation
A Miami trial court has ruled that judges of
compensation claims be allowed to reduce settlements by the amount of any
outstanding child support owed by the claimant.
Recommendation
This legislation codifies that ruling.
ENACT PROVISIONS OF HB 1149
(FILED DURING 2000 SESSION)
Current Situation
In the 2000 session, Rep. Jerry Melvin (R-Fort Walton
Beach) filed a bill that was the product of two years of work. The
non-controversial bill would have resolved a number of procedural and
administrative problems faced by workers' compensation providers and
carriers. It did not pass when it became caught up in another
controversial issue.
Recommendation
This legislation incorporates most of the provisions of
HB 1149.
WORKERS' COMPENSATION OVERSIGHT
BOARD
Current Situation
The Workers' Compensation Oversight Board was created
to act as a watchdog over the system, reporting to the governor and the
legislature on issues and problems that arise. It has never filled that
function, which makes it unnecessary.
Recommendation
This bill eliminates the board.
