2013 Legislative Session

The Legislative session ended last Friday night, May 3, 2013. Unlike some sessions, that have come down to the midnight deadline, this one ended about 7:15. There will be much to examine in coming weeks. It is not simple to know what is happening during the course of the session, and sometimes no easier for days thereafter to determine what happened and did not happen. The OJCC. like other agencies, invests significant time in tracking various legislation, following legislative rumors, and explaining how various proposals would impact the manner in which we deliver services. 

One thing we know is that they passed the largest budget ever. The budget passed Friday morning, for fiscal 2014 (begins July 1, 2013) is $74.5 billion dollars. Of course, my primary interest in this budget is that the Office of Judges of Compensation Claims is adequately funded. Everything I have seen supports that the OJCC budget survived this session with minimal cuts. This is an intense relief. There were plans discussed in the last six months (leading up to and through the  session) that could have had a significant impact on the way the OJCC operates. I am glad that those discussions did not come to pass, and that our budget and agency survived without major alterations. 

I am particularly gratified with the budget item providing for long overdue raises for state employees. Under the budget language, workers making below $40,000 would get a $1,400 pay raise, while those making more than $40,000 would get a $1,000 raise. It has been too many years since our hard-working OJCC staff received a pay raise. Despite the pronouncements from Washington, denying any significant inflation, the cost of living in Florida has increased significantly in the last six years. Anyone that has purchased a gallon of milk recently knows that. I would have liked to see a more significant raise for our staff, but this is a start and is greatly appreciated. The staff of the OJCC works hard and is focused on our customers.

Additionally, about 35 percent of state employees will have a chance to earn up to another $600 bonus if they are given positive evaluations. Which, if any, of the OJCC staff is eligible for this bonus will become clearer in coming weeks. However, it is positive to see the legislature recognizing that hard work and positive contributions to the success of state programs should be recognized.

House Bill 7033 made some progress early in the session. This would have significantly changed the selection of Judges of Compensation Claims. The bill would have eliminated the Statewide Judicial Nominating Commission for Judges of Compensation Claims (SJNCJCC), and would have had the First District Court of Appeal Nominating Commission responsible for vetting JCCs. Under this proposal, candidates for appointment and reappointment would have been travelling to Tallahassee for interviews. Most interviews with the SJNCJCC currently occur in Orlando, many during the WCI Educational Conference. Travel to Orlando can be a significant expense for candidates, and travel to Tallahassee would be more significant for most. There were also some Constitutional concerns with the plan. The Bill ultimately failed to pass. 

Florida is struggling with economies of scale. Senate Bill 1762  was an effort at consolidating State technology efforts. The logic is sound, and there are good arguments for consolidating some State agency efforts. This bill sought to establish the Department of State Technology. As originally proposed, it called for the establishment of "data centers" through which various agency data-storage facilities would be consolidated. 

The vision is for large rooms of servers upon which various agencies would store their information. Economy of scale is logical. For many reasons, this vision is not appropriate for the Office of Judges of Compensation Claims however. The independence of this agency is a critical point. Previous legislatures have established this independence, housing the OJCC in the Department of Management Services, but providing in 440.45 that "the Department of Management Services shall provide administrative support and service to the office to the extent requested by the director of the Division of Administrative Hearings but shall not direct, supervise, or control the Office of the Judges of Compensation Claims in any manner, including, but not limited to, personnel, purchasing, budgetary matters, or property transactions."

Senate Bill 1762 looked destined to pass. There was substantial agreement between the chambers, as the bill went to conference committee on April 18, 2013. One difference between the House and Senate versions involved some language that defined agencies that would be excluded or exempt from the consolidation effort. One version excluded/exempted the Division of Administrative Hearings (DOAH), the other chamber's version did not. Neither version exempted the OJCC, although arguably the DOAH exemption would exempt the OJCC. Ultimately, the bill did not make it out of the conference committee. The idea of consolidation is likely to arise again though.  

Senate Bill 662 passed and was ordered engrossed May 1, 2013. This will amend section 440.13 regarding the price of prescription medication. Much has been written about this topic over recent months. Percentages have been codified, and processes have perhaps been changed. How this will ultimately change the delivery of services to injured workers remains to be seen.

In all, not a huge Session for Florida workers' compensation. While the debates were raging about SB 662, David DePaolo wrote about Oklahoma. The revisions in that state's workers' compensation law may be more significant this Spring. Mr. DePaolo opined that the efforts there may support that "workers' compensation may not be particularly relevant." He notes that the Oklahoma reform efforts, and other evidence, may support "a trend that both employers and employees no longer feel that workers' compensation either meets their needs." 

In one of the most discussed portions of his analysis, Mr. DePaolo states "There is not one person that is in the workers' compensation industry that can claim exemption from being an unnecessary intermediary in the relationship between the employer and the employee - not one."  He says that all of us "insurance, medical, legal, brokerage, legislative, judicial" are but intermediaries between the real participants in the system, the employee and employer. A broad indictment.

Reading Mr. DePaolo's thoughts, I was reminded of a great Walt Disney quote. He once said "I only hope that we don't lose sight of one thing - that it was all started by a mouse." That is, essentially, a compelling back-to-basics sentiment. I likewise hope that we, whether we are but "intermediaries" or more, never forget that this workers' compensation "thing" was all started because of employees and employers. They matter. Our society critically needs them both, and therefore our effort must be to serve them. Walt also said "whenever I go on a ride, I'm always thinking of what's wrong with the thing and how it can be improved." Perhaps we might all consider what is wrong with workers' compensation, for employees and employers, and what could be improved for employees and employers. 

The 2013 Florida legislative season is concluded. I am proud they took care of some issues, like much needed pay raises for the OJCC staff. I am hopeful that there will come a time when industry, labor, and all the intermediaries might come together to bring intellect to bear on what is "wrong with the thing and how it can be improved" for Florida's employees and employers.