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FWCJUA Reform: Has Its Time Come?

Like almost all institutions, the Florida Legislature is averse to retracing its steps and readdressing an issue, especially if it is one of its own making. Such is the case with the Florida Workers'

By Michael H. Adams | Updated on May 31, 2007

Like almost all institutions, the Florida Legislature is averse to retracing its steps and readdressing an issue, especially if it is one of its own making. Such is the case with the Florida Workers’ Compensation Joint Underwriting Association, which is one of those nagging issues that is far from being controversial, but nevertheless requires legislative action to be resolved. To that end, the Senate Banking and Insurance Committee has passed legislation that is the first step in what is expected to be the final legislative say on the matter.

The bill follows the broad outline of a committee report and a proposed legislative solution agreed to by lawmakers last year. The legislation is designed to resolve the FWCJUA’s ability to fund deficits while restructuring its business operations so that the association might qualify for federal tax-exempt status. In order to qualify for tax-exempt status, the bill would make the FWCJUA more of a quasi-governmental agency by granting regulators greater oversight of the association. Among other things, regulators would name the board of governors, review rates before they are implemented, and have the power to reject all or part of the association’s business plan of operations.

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