Florida Senate - 2017                       CS for CS for SB 986
       
       
        
       By the Committees on Appropriations; and Banking and Insurance;
       and Senator Stargel
       
       
       
       
       576-04163-17                                           2017986c2
    1                        A bill to be entitled                      
    2         An act relating to the Department of Financial
    3         Services; amending s. 17.575, F.S.; replacing, within
    4         the Division of Treasury, the Treasury Investment
    5         Committee with the Treasury Investment Council;
    6         specifying the composition and term length of members;
    7         specifying duties of the council; providing that
    8         members shall serve without additional compensation or
    9         honorarium but may receive per diem and travel expense
   10         reimbursement; amending s. 215.422, F.S.; providing
   11         applicability of certain requirements relating to
   12         payments, warrants, and invoices to payments made in
   13         relation to certain agreements funded with federal or
   14         state assistance; reordering and amending s. 554.1021,
   15         F.S.; defining and redefining terms; requiring the
   16         Department of Financial Services to adopt rules;
   17         authorizing the inspection of certain boilers by
   18         authorized inspection agencies; amending s. 554.103,
   19         F.S.; requiring, rather than authorizing, the
   20         department to adopt amendments and interpretations of
   21         a specified code into the State Boiler Code; revising
   22         requirements that installers, rather than owners, must
   23         comply with before installing a boiler that is placed
   24         in use after a specified date; authorizing the
   25         department to adopt rules; conforming provisions to
   26         changes made by the act; amending s. 554.104, F.S.;
   27         deleting a provision relating to boilers of special
   28         design which is recreated in s. 554.103, F.S.;
   29         requiring certification of boiler inspectors;
   30         requiring an application for a certification
   31         examination; specifying qualifications and
   32         requirements for the certification examination;
   33         requiring the department to adopt a specified training
   34         course; providing authorized methods and requirements
   35         for the training course; requiring the chief boiler
   36         inspector to issue a certificate of competency to a
   37         person meeting certain requirements; providing
   38         procedures for renewing a certificate; authorizing the
   39         department to adopt rules; amending s. 554.105, F.S.;
   40         renaming the chief inspector as the chief boiler
   41         inspector; revising requirements for the department
   42         through the state boiler inspection program; amending
   43         s. 554.106, F.S.; renaming deputy inspectors as deputy
   44         boiler inspectors; specifying required and authorized
   45         duties of deputy boiler inspectors; amending s.
   46         554.107, F.S.; renaming special inspectors as special
   47         boiler inspectors; revising entities that may employ
   48         special boiler inspectors; specifying required
   49         inspection intervals for special boiler inspectors;
   50         amending s. 554.108, F.S.; providing an exemption,
   51         under certain conditions, from inspection
   52         requirements; specifying duties of an owner or an
   53         owner’s designee to allow an inspector to conduct
   54         inspections; specifying requirements for boiler
   55         inspections and inspection reports; revising
   56         conditions that require a boiler to be shut down;
   57         revising requirements and procedures for a boiler that
   58         must be shut down; providing construction; authorizing
   59         the department to adopt rules; creating s. 554.1081,
   60         F.S.; revising requirements for boiler inspections by
   61         insurance companies and local governmental agencies;
   62         amending s. 554.109, F.S.; conforming provisions to
   63         changes made by the act; revising the boilers that are
   64         exempt from regulation under the chapter; revising
   65         requirements for certain exempt boilers and water
   66         heaters; amending s. 554.1101, F.S.; conforming
   67         provisions to changes made by the act; requiring a
   68         boiler insurance company to notify, within a specified
   69         timeframe, the chief boiler inspector under certain
   70         circumstances; requiring a certificateholder to submit
   71         a certain certificate of insurance to the chief boiler
   72         inspector under certain circumstances; amending s.
   73         554.111, F.S.; requiring an application for a boiler
   74         permit to include a specified fee; requiring the chief
   75         boiler inspector to deposit fines into a specified
   76         trust fund; conforming provisions to changes made by
   77         the act; repealing ss. 554.112 and 554.113, F.S.,
   78         relating to examinations, and certification of
   79         inspectors and renewals, respectively; amending s.
   80         554.114, F.S.; revising prohibited acts; providing
   81         penalties for a boiler insurance company or authorized
   82         inspection agency that fails to conduct certain
   83         inspections; providing an exception; conforming
   84         provisions to changes made by the act; amending s.
   85         554.115, F.S.; adding authorized disciplinary actions
   86         for the department; adding specified grounds for
   87         disciplinary action against an owner of a boiler;
   88         revising grounds for disciplinary action against a
   89         boiler inspector; deleting a provision requiring a
   90         chief inspector to report certain persons to the state
   91         attorney; deleting a provision authorizing certain
   92         administrative action by the chief inspector; deleting
   93         a provision relating to the duration of a suspended
   94         certificate of compliance; creating s. 554.1151, F.S.;
   95         authorizing the department to impose specified
   96         administrative fines in lieu of or in addition to
   97         certain disciplinary actions; authorizing procedures
   98         for payment of fines by a certificateholder; requiring
   99         a certificate to be revoked under certain
  100         circumstances; amending s. 624.307, F.S.; authorizing
  101         the department to expend funds for professional
  102         development of its employees; amending s. 626.015,
  103         F.S.; defining terms; conforming a cross-reference;
  104         amending s. 626.207, F.S.; defining the term
  105         “applicant”; revising a list of felonies subject to a
  106         permanent bar from licensure; revising a condition for
  107         when certain disqualifying periods begin; conforming
  108         cross-references; providing an exception from a
  109         permanent bar on or disqualifying periods for cases of
  110         executive clemency; providing construction; amending
  111         s. 626.221, F.S.; providing an exception from an
  112         examination requirement for an all-lines adjuster
  113         license applicant with a specified designation;
  114         amending s. 626.2815, F.S.; specifying the education
  115         hours that may be completed to meet continuing
  116         education requirements for such a designation;
  117         amending s. 626.8734, F.S.; providing an exception
  118         from an examination requirement for nonresident all
  119         lines adjuster license applicants who hold certain
  120         certifications; amending s. 626.9954, F.S.; revising a
  121         list of felonies subject to a permanent bar from
  122         licensure; revising conditions for when certain
  123         disqualifying periods begin; conforming cross
  124         references; providing an exception from a permanent
  125         bar on or disqualifying periods for cases of executive
  126         clemency; providing construction; amending s.
  127         626.2815, F.S.; authorizing the department to approve
  128         a certain number of elective continuing education
  129         credits for certain insurance licensees; providing an
  130         exception from a certain continuing education
  131         requirement for such licensees; amending s. 626.611,
  132         F.S.; deleting a condition for the involvement of
  133         moral turpitude in felonies or certain crimes in
  134         relation to compulsory disciplinary actions by the
  135         department against certain entities’ licenses or
  136         appointments; conforming a cross-reference; amending
  137         s. 626.621, F.S.; revising grounds for the
  138         department’s discretionary refusal, suspension, or
  139         revocation of the license or appointment of certain
  140         persons; amending s. 626.7845, F.S.; revising an
  141         exception to the prohibition against the unlicensed
  142         transaction of life insurance; conforming a cross
  143         reference; amending s. 626.8305, F.S.; revising an
  144         exception to the prohibition against the unlicensed
  145         transaction of health insurance; conforming a cross
  146         reference; amending s. 626.861, F.S.; authorizing
  147         certain insurer employees to adjust specified claim
  148         losses or damage; amending s. 626.9543, F.S.; removing
  149         the scheduled expiration of a requirement for insurers
  150         to permit claims from a Holocaust victim or certain
  151         related persons irrespective of certain conditions;
  152         removing the scheduled expiration of an exception from
  153         statutes of limitations or laches for certain actions
  154         brought by Holocaust victims or certain related
  155         persons; amending s. 633.516, F.S.; authorizing the
  156         Division of State Fire Marshal within the division to
  157         contract for studies of, rather than to make a
  158         continuous study of, occupational diseases of
  159         firefighters; adding persons in other fire-related
  160         fields to such studies; authorizing the division to
  161         release confidential information of an individual
  162         firefighter or a person in another fire-related field
  163         to certain parties under certain circumstances;
  164         amending s. 768.28, F.S.; providing exceptions in tort
  165         claims against a county from requirements that a
  166         claimant present the written claim to the department
  167         within a specified timeframe and serve process upon
  168         the department; amending ss. 288.706, 626.7315, and
  169         627.351, F.S.; conforming cross-references; providing
  170         an effective date.
  171          
  172  Be It Enacted by the Legislature of the State of Florida:
  173  
  174         Section 1. Section 17.575, Florida Statutes, is amended to
  175  read:
  176         17.575 Administration of funds; Treasury Investment Council
  177  Committee.—
  178         (1) There is created a Treasury Investment Council
  179  Committee within the Division of Treasury consisting of at least
  180  five members, at least three of whom are professionals from the
  181  private sector, who must possess special knowledge, experience,
  182  and familiarity in finance, investments, or accounting. The
  183  members of the council must committee shall be appointed by and
  184  serve at the pleasure of the Chief Financial Officer. Each
  185  member shall serve a term of 4 years from the date of
  186  appointment. The council committee shall annually elect a chair
  187  and vice chair from among its members membership.
  188         (2) The council shall review the investments required by s.
  189  17.57; meet with staff of the Division of Treasury at least
  190  biannually; and provide recommendations to the Division of
  191  Treasury and the Chief Financial Officer regarding investment
  192  policy, strategy, and procedures The committee shall administer
  193  the Treasury Investment Program consistent with policies
  194  approved by the Chief Financial Officer for deposits and
  195  investments of public funds. The committee shall also make
  196  recommendations regarding investment policy to the Chief
  197  Financial Officer.
  198         (3) Members of the council shall serve without additional
  199  compensation or honorarium, but may receive per diem and
  200  reimbursement for travel expenses as provided in s. 112.061 The
  201  committee shall submit an annual report outlining its activities
  202  and recommendations to the Chief Financial Officer and the Joint
  203  Legislative Auditing Committee. The report shall be submitted on
  204  August 15, 2009, and annually thereafter.
  205         Section 2. Present subsections (14) through (16) of section
  206  215.422, Florida Statutes, are redesignated as subsections (15)
  207  through (17), respectively, and a new subsection (14) is added
  208  to that section, to read:
  209         215.422 Payments, warrants, and invoices; processing time
  210  limits; dispute resolution; agency or judicial branch
  211  compliance.—
  212         (14) All requirements set forth in this section apply to
  213  payments made in accordance with s. 215.971.
  214         Section 3. Section 554.1021, Florida Statutes, is reordered
  215  and amended to read:
  216         554.1021 Definitions.—As used in this chapter, the term ss.
  217  554.1011-554.115:
  218         (3)(1) “Boiler” means a closed vessel in which water or
  219  other liquid is heated, steam or vapor is generated, steam is
  220  superheated, or any combination of these functions is
  221  accomplished, under pressure or vacuum, for use external to
  222  itself, by the direct application of energy from the combustion
  223  of fuels or from electricity or solar energy. The term “boiler”
  224  includes fired units for heating or vaporizing liquids other
  225  than water where these units are separate from processing
  226  systems and are complete within themselves. The varieties of
  227  boilers are as follows:
  228         (f)(a) “Power boiler” means a boiler in which steam or
  229  other vapor is generated at a pressure of more than 15 psig.
  230         (b) “High pressure, high temperature water boiler” means a
  231  water boiler operating at pressures exceeding 160 psig or
  232  temperatures exceeding 250 °F.
  233         (a)(c) “Heating boiler” means a steam or vapor boiler
  234  operating at pressures not exceeding 15 psig, or a hot water
  235  boiler operating at pressures not exceeding 160 psig or
  236  temperatures not exceeding 250 °F.
  237         (c)(d) “Hot water supply boiler” means a boiler or a lined
  238  storage water heater supplying heated water for use external to
  239  itself operating at a pressure not exceeding 160 psig or
  240  temperature not exceeding 250 °F.
  241         (g)(e) “Secondhand boiler” means a boiler that has changed
  242  ownership and location subsequent to its original installation
  243  and use.
  244         (d) “Inservice boiler” means a boiler placed in use after
  245  test firing and required inspections have been satisfactorily
  246  completed.
  247         (e) “Operating boiler” means a boiler connected and ready
  248  for use.
  249         (h) “Secured boiler” means a boiler that has been:
  250         1. Physically disconnected from the system, including
  251  disconnection from fuel, water, steam, electricity, and stack;
  252  or
  253         2. Locked out and tagged out in accordance with the
  254  Occupational Safety and Health Administration’s standard
  255  relating to the control of hazardous energy and lockout or
  256  tagout in 29 C.F.R. s. 1910.147, as adopted by rule of the
  257  department.
  258         (9)(2) “Public assembly locations” includes include
  259  schools, day care centers, community centers, churches,
  260  theaters, hospitals, nursing and convalescent homes, stadiums,
  261  amusement parks, and other locations open to the general public.
  262         (5)(3) “Certificate inspection” means an inspection whose
  263  the report of which is used by the chief boiler inspector to
  264  determine whether or not a certificate of operation may be
  265  issued.
  266         (7)(4) “Certificate of operation compliance” means a
  267  document issued to the owner of a boiler which authorizes the
  268  owner to operate the boiler, subject to any restrictions
  269  endorsed thereon.
  270         (6)(5) “Certificate of competency” means a document issued
  271  to a person who has satisfied the minimum competency
  272  requirements for boiler inspectors under this chapter ss.
  273  554.1011-554.115.
  274         (8)(6) “Department” means the Department of Financial
  275  Services.
  276         (1)(7) “A.S.M.E.” means the American Society of Mechanical
  277  Engineers.
  278         (2) “Authorized inspection agency” means:
  279         (a) Any county, municipality, town, or other governmental
  280  subdivision that has adopted into law the Boiler and Pressure
  281  Vessel Code of the A.S.M.E. and the National Board Inspection
  282  Code for the construction, installation, inspection,
  283  maintenance, and repair of boilers to regulate boilers in public
  284  assembly locations, and whose boiler inspectors hold valid
  285  certificates of competency in accordance with s. 554.104;
  286         (b) An insurer authorized by a subsisting certificate of
  287  authority, issued by the Office of Insurance Regulation, to
  288  transact boiler and machinery insurance in this state, and whose
  289  boiler inspectors hold valid certificates of competency in
  290  accordance with s. 554.104; or
  291         (c) An inspecting agency accredited in accordance with the
  292  National Board of Boiler and Pressure Vessel Inspector’s program
  293  entitled Accreditation of Authorized Inspection Agencies (AIA)
  294  Performing Inservice or Repair/Alteration Inspection
  295  Activities,” document number NB-369, and whose boiler inspectors
  296  hold valid certificates of competency in accordance with s.
  297  554.104. The department shall by rule require an inspection
  298  agency authorized pursuant to this paragraph to maintain
  299  financial security adequate to indemnify the owner of the boiler
  300  if such agency’s negligence or failure to inspect an uninsured
  301  boiler results in a loss. Such inspection agency may inspect
  302  uninsured boilers or, at the direction of an insurance company,
  303  may inspect a boiler insured by that insurance company.
  304         (4) “Boiler insurance company” means a company authorized
  305  by a subsisting certificate of authority, issued by the Office
  306  of Insurance Regulation, to transact boiler and machinery
  307  insurance in this state.
  308         Section 4. Section 554.103, Florida Statutes, is amended to
  309  read:
  310         554.103 Boiler code.—The department shall adopt by rule a
  311  State Boiler Code for the safe construction, installation,
  312  inspection, maintenance, and repair of boilers in this state.
  313  The rules adopted shall be based upon and shall at all times
  314  follow generally accepted nationwide engineering standards,
  315  formulas, and practices pertaining to boiler construction and
  316  safety.
  317         (1) The department shall adopt an existing code for new
  318  construction and installation known as the Boiler and Pressure
  319  Vessel Code of the American Society of Mechanical Engineers,
  320  including all amendments and interpretations approved thereto by
  321  the Council on Codes and Standards of A.S.M.E. The department
  322  may adopt amendments and interpretations to the A.S.M.E. Boiler
  323  and Pressure Vessel Code approved by the A.S.M.E. Council on
  324  Codes and Standards subsequent to the adoption of the State
  325  Boiler Code, and when so adopted by the department, such
  326  amendments and interpretations shall become a part of the State
  327  Boiler Code.
  328         (2) The installer owner of any boiler placed in use in this
  329  state after January 1, 2018, must, before installing the boiler,
  330  apply on a form adopted by rule of the department for a permit
  331  to install the boiler from the chief boiler inspector. The
  332  application must include the boiler’s A.S.M.E. manufacturer’s
  333  data report and other documents required by the State Boiler
  334  Code before the boiler is placed in service. The installer must
  335  contact the chief boiler inspector to schedule an inspection for
  336  each boiler no later than 7 days before the boiler is placed in
  337  service after October 1, 1987, shall submit the A.S.M.E.
  338  manufacturer’s data report on such boiler to the chief inspector
  339  not more than 90 days following the inservice date of the
  340  boiler.
  341         (3) The maximum allowable working pressure of a boiler
  342  carrying the A.S.M.E. code symbol must shall be determined by
  343  the applicable sections of the code under which it was
  344  constructed and stamped. Subject to the concurrence of the chief
  345  boiler inspector, such boiler may be rerated in accordance with
  346  the standards of the State Boiler Code.
  347         (4) The maximum allowable working pressure of a boiler that
  348  which does not carry the A.S.M.E. code symbol must shall be
  349  computed in accordance with the standards of the State Boiler
  350  Code.
  351         (5) This chapter may not Nothing in ss. 554.1011-554.115
  352  shall be construed to in any way prevent the use, sale, or
  353  reinstallation of a boiler if such boiler has been made to
  354  conform to the applicable provisions of the State Boiler Code
  355  governing existing installations and if, upon inspection, the
  356  boiler has been found to be in a safe condition.
  357         (6)The department, at its discretion, may authorize the
  358  construction, installation, and operation of boilers of special
  359  design or construction which do not meet the specific
  360  requirements of the State Boiler Code, but which are consistent
  361  with the intent of the safety objectives of the code.
  362         (7)The department may adopt rules pursuant to ss.
  363  120.536(1) and 120.54 to administer this chapter. Such rules may
  364  include specifying the procedures and forms to be used to obtain
  365  an installation permit, an initial certificate, or a renewal
  366  certificate, and the submission of reports and notices required
  367  under this chapter.
  368         Section 5. Section 554.104, Florida Statutes, is amended to
  369  read:
  370         554.104 Certification of boiler inspectors required;
  371  application; qualifications; renewal Boilers of special design.
  372  The department, at its discretion, may authorize the
  373  construction, installation, and operation of boilers of special
  374  design or construction that do not meet the specific
  375  requirements of the State Boiler Code but are not inconsistent
  376  with the intent of the safety objectives of such code.
  377         (1) CERTIFICATE REQUIRED.—A person may not be, act as, or
  378  advertise or hold himself or herself out to be an inspector of a
  379  boiler that is subject to regulation by this chapter, unless he
  380  or she currently holds a certificate of competency issued by the
  381  department.
  382         (2) APPLICATION.A person who desires to be certified to
  383  inspect boilers that are subject to regulation by this chapter
  384  must apply in writing to the department to take the
  385  certification examination.
  386         (3) QUALIFICATIONS.A person is qualified to take the
  387  certification examination if the person:
  388         (a) Has submitted the application for examination together
  389  with the fee required under s. 554.111(1)(a);
  390         (b) Is at least 18 years of age;
  391         (c) Has completed the 2-hour training course under
  392  subsection (4) on the requirements of this chapter and any
  393  related rules adopted by the department. The course must be
  394  completed no later than 12 months before issuance of an initial
  395  or renewal certificate; and
  396         (d) Has:
  397         1. At least 3 years of experience in the construction,
  398  installation, inspection, operation, maintenance, or repair of
  399  high pressure, high temperature water boilers; or
  400         2. Met the requirements to qualify as a commissioned
  401  inspector by the National Board of Boiler and Pressure Vessel
  402  Inspectors as set forth in NB-263, RCI-1, Rules for Commissioned
  403  Inspectors, as adopted by rule of the department.
  404         (4) TRAINING COURSE.The department shall adopt by rule a
  405  2-hour training course on the requirements of this chapter and
  406  any related rules adopted by the department. The department
  407  shall make the training course available online and may make the
  408  course available in a classroom setting. A boiler insurance
  409  company may include the department’s course as part of its in
  410  house training of a boiler inspector student, in lieu of the
  411  student taking the online training course. A boiler insurance
  412  company that includes the department’s course in its in-house
  413  training of a boiler inspector student must indicate that the
  414  student completed the training on an application filed with the
  415  department for certification of competency.
  416         (5) EXAMINATION.A person applying for a certificate of
  417  competency must have successfully passed the examination
  418  administered by the National Board of Boiler and Pressure Vessel
  419  Inspectors and be eligible to obtain a National Board
  420  commission.
  421         (6) ISSUANCE OF CERTIFICATE.The chief boiler inspector
  422  must issue a certificate of competency to each person who is
  423  qualified under this section and who holds a commission from the
  424  National Board of Boiler and Pressure Vessel Inspectors.
  425         (7) RENEWAL OF CERTIFICATE.—A certificate of competency
  426  expires on December 31 of each year and may be renewed upon the
  427  filing of a renewal application with the department. A secured
  428  electronic application must be used, if available on the
  429  department’s website.
  430         (8) RULES.The department may adopt rules necessary to
  431  administer this section.
  432         Section 6. Section 554.105, Florida Statutes, is amended to
  433  read:
  434         554.105 Chief boiler inspector.—
  435         (1) The Chief Financial Officer shall appoint a chief
  436  boiler inspector, who must have at least shall have not less
  437  than 5 years’ experience in the construction, installation,
  438  inspection, operation, maintenance, or repair of high pressure,
  439  high temperature water boilers and who must shall hold a
  440  commission from the National Board of Boiler and Pressure Vessel
  441  Inspectors or a certificate of competency from the department.
  442         (2) The department, through the chief boiler inspector,
  443  shall administer the state boiler inspection program, and shall:
  444         (a) Take all action necessary to enforce the State Boiler
  445  Code and the rules adopted pursuant to this chapter ss.
  446  554.1011-554.115.
  447         (b) Keep a complete record on all boilers at public
  448  assembly locations. Such record must shall include the name of
  449  each boiler owner or user and the location, type, dimensions,
  450  maximum allowable working pressure, age, and last recorded
  451  inspection of each boiler, and any other information necessary
  452  to expedite the certification process.
  453         (c) Publish and make available to anyone, upon request,
  454  copies of the rules adopted pursuant to ss. 554.1011-554.115.
  455         (d) Expend funds necessary to meet the expenses authorized
  456  by this chapter ss. 554.1011-554.115, including the necessary
  457  travel expenses of the chief boiler inspector and deputy boiler
  458  inspectors, and the expenses incident to the maintenance of this
  459  his or her office.
  460         Section 7. Section 554.106, Florida Statutes, is amended to
  461  read:
  462         554.106 Deputy boiler inspectors.—
  463         (1) The department shall employ deputy boiler inspectors
  464  who shall be responsible to the chief boiler inspector and who
  465  shall each hold a certificate of competency from the department.
  466         (2) A deputy boiler inspector shall perform inspections of
  467  uninsured boilers that are subject to regulation under this
  468  chapter, in accordance with the inspection frequency set forth
  469  in s. 554.108. A deputy boiler inspector may also engage in
  470  public outreach activities of the department and conduct other
  471  duties as assigned by the chief boiler inspector.
  472         Section 8. Section 554.107, Florida Statutes, is amended to
  473  read:
  474         554.107 Special boiler inspectors.—
  475         (1) Upon application by any authorized inspection agency
  476  company licensed to insure boilers in this state, the chief
  477  boiler inspector shall issue a certificate of competency as a
  478  special boiler inspector to any inspector employed by the
  479  authorized inspection agency company, if provided that such
  480  boiler inspector satisfies the competency requirements for
  481  inspectors as provided in s. 554.104 s. 554.113. Special boiler
  482  inspectors shall perform inspections of insured boilers in
  483  accordance with the inspection frequency set forth in s.
  484  554.108.
  485         (2) The certificate of competency of a special boiler
  486  inspector remains shall remain in effect only so long as the
  487  special boiler inspector is employed by an authorized inspection
  488  agency a company licensed to insure boilers in this state. Upon
  489  termination of employment with such company, such company a
  490  special inspector shall, in writing, notify the chief boiler
  491  inspector of such special boiler inspector’s termination. Such
  492  notice must shall be given within 15 days following the date of
  493  termination.
  494         Section 9. Subsections (1), (2), (4), and (5) of section
  495  554.108, Florida Statutes, are amended, and subsection (6) is
  496  added to that section, to read:
  497         554.108 Inspection.—
  498         (1) The inspection requirements of this chapter apply only
  499  to boilers located in public assembly locations. A potable hot
  500  water supply boiler with a heat input of 200,000 British thermal
  501  units (Btu) per hour and above, up to a heat input not exceeding
  502  400,000 Btu per hour, is exempt from inspection, but must be
  503  stamped with the A.S.M.E. code symbol “HLW” and the boiler’s
  504  A.S.M.E data report must be filed as required under s.
  505  554.103(2) The only boilers required to be inspected under the
  506  provisions of ss. 554.1011-554.115 are boilers located in public
  507  assembly locations.
  508         (2) Each inspection of a boiler conducted pursuant to this
  509  chapter must ss. 554.1011-554.115 shall be made by the chief
  510  boiler inspector, a deputy boiler inspector, or a special boiler
  511  inspector. An owner, or the owner’s designee, shall perform all
  512  operation, testing, manipulation of boiler controls and safety
  513  devices, removal of lagging, and disassembly of boiler
  514  components to allow the chief boiler inspector, deputy boiler
  515  inspector, or special boiler inspector to conduct inspections as
  516  required by this section.
  517         (4) Each boiler subject to inspection must be inspected
  518  within 30 days after expiration of the boiler’s certificate of
  519  operation. However, an inspection report must be received by the
  520  chief boiler inspector no later than 30 days after the projected
  521  expiration date of the certificate of operation. If, upon
  522  inspection, the chief boiler inspector, deputy boiler inspector,
  523  or special boiler inspector finds that a boiler is in violation
  524  of any provision of the State Boiler Code, the inspector must
  525  promptly notify the owner or user and state what repairs or
  526  other corrective measures are needed. Deputy boiler inspectors
  527  and special boiler inspectors shall file a written report, on a
  528  form adopted by rule of the department, on each certificate
  529  inspection with the chief boiler inspector within 15 days after
  530  the following such inspection. A certificate inspection report
  531  must list all violations of the State Boiler Code and any
  532  conditions that may adversely affect the operation of the
  533  boiler. The filing of reports of inspections, other than
  534  statutorily required certificate inspections, is are not
  535  required unless such inspections disclose that a boiler is in an
  536  unsafe condition or unless the boiler has failed and requires
  537  major repair or replacement. The inspection report must list the
  538  extent of damage to the boiler, as well as the cause of the
  539  failure, if known, and any other pertinent information. However,
  540  an inspection report must be filed for any inspection performed
  541  on a boiler with a previously identified code violation. The
  542  report must indicate whether the violation has been corrected.
  543  The agency responsible for conducting the inspection must
  544  perform followup inspections, not more than every 6 months, of a
  545  previously identified code violation until it is corrected.
  546         (5) Upon a determination by the chief boiler inspector
  547  determining that a boiler cannot be safely operated, is in an
  548  unsafe condition and poses an imminent danger to the public
  549  health, safety, and welfare, the chief inspector, a deputy
  550  inspector, or a special inspector may immediately order the
  551  boiler must immediately to be shut down. The chief boiler
  552  inspector or a deputy boiler inspector shall attach a tag to the
  553  boiler indicating that the boiler has been shut down due to an
  554  unsafe condition. The boiler must shall remain shut down until a
  555  reinspection by the chief boiler inspector or a deputy boiler a
  556  certified inspector determines that all violations have been
  557  corrected, that the boiler may be operated safely, and that a
  558  certificate of compliance has been issued. A boiler that may not
  559  be safely operated, as determined by the chief boiler inspector,
  560  is deemed to constitute an imminent danger to the public health,
  561  safety, and welfare.
  562         (6) The department may adopt rules necessary to administer
  563  this section.
  564         Section 10. Section 554.1081, Florida Statutes, is created
  565  to read:
  566         554.1081 Boiler inspections by insurance companies and
  567  local governmental agencies.—
  568         (1) An insurance company insuring a boiler located in a
  569  public assembly location in this state shall inspect, or shall
  570  contract with an authorized inspection agency to inspect, the
  571  insured boiler. A boiler insurance company shall annually report
  572  to the department the name of any authorized inspection agency
  573  performing any required boiler inspections on its behalf and
  574  shall actively monitor insured boilers to ensure that
  575  inspections are conducted as required by this chapter.
  576         (2)A county, municipality, town, or other governmental
  577  subdivision that has adopted into law the Boiler and Pressure
  578  Vessel Code of the A.S.M.E. and the National Board Inspection
  579  Code for the construction, installation, inspection,
  580  maintenance, and repair of boilers to regulate boilers in public
  581  assembly locations may inspect such boilers. All boiler
  582  inspections must be conducted by special boiler inspectors in
  583  accordance with this chapter.
  584         Section 11. Section 554.109, Florida Statutes, is amended
  585  to read:
  586         554.109 Exemptions.—
  587         (1) Any insurance company insuring a boiler located in a
  588  public assembly location in this state shall inspect such boiler
  589  so insured, and any county, city, town, or other governmental
  590  subdivision which has adopted into law the Boiler and Pressure
  591  Vessel Code of the American Society of Mechanical Engineers and
  592  the National Board Inspection Code for the construction,
  593  installation, inspection, maintenance, and repair of boilers,
  594  regulating such boilers in public assembly locations, shall
  595  inspect such boilers so regulated; provided that such inspection
  596  shall be conducted by a special inspector licensed pursuant to
  597  ss. 554.1011-554.115. Upon filing of a report of satisfactory
  598  inspection with the department, such boiler is exempt from
  599  inspection by the department.
  600         (2) The provisions of This chapter does shall not apply to
  601  potable hot water supply boilers or lined storage water heaters
  602  that which are directly fired with oil, gas, electricity, or
  603  solar energy, provided that none of the following limitations is
  604  are exceeded:
  605         (1)(a) Heat input of 400,000 Btu per hour.
  606         (2)(b) Water temperature of 210 degrees Fahrenheit.
  607         (3)(c) Nominal water-containing capacity of 120 gallons.
  608  
  609  These exempt hot water supply boilers and lined storage water
  610  heaters shall be equipped with safety relief valves conforming
  611  to the requirements of the Boiler and Pressure Vessel Code of
  612  the American Society of Mechanical Engineers and of the National
  613  Board Inspection Code.
  614         Section 12. Section 554.1101, Florida Statutes, is amended
  615  to read:
  616         554.1101 Certificate of operation compliance.—
  617         (1) If an inspection report filed pursuant to s. 554.108
  618  shows a boiler to be in compliance with all applicable
  619  provisions of the State Boiler Code, the chief boiler inspector
  620  must shall, upon receipt of the inspection fee, issue a
  621  certificate of operation compliance to the owner. Such
  622  certificate must shall bear the date of the inspection and
  623  specify the maximum pressure at which the boiler may be
  624  operated.
  625         (2) The certificate for a power boiler or a high pressure,
  626  high temperature water boiler is valid for a period of 12 months
  627  from the date of the certificate inspection. The certificate for
  628  a heating boiler or a hot water supply boiler is valid for a
  629  period of 24 months from the date of the certificate inspection.
  630  The certificate must shall be posted under glass, or be
  631  similarly protected, in the room containing the boiler.
  632         (3) A boiler insurance company shall notify the chief
  633  boiler inspector within 30 days after the issuance of a new or
  634  renewal boiler and machinery insurance policy, or the
  635  cancellation or nonrenewal of a boiler and machinery insurance
  636  policy, covering places of public assembly in this state.
  637         (4) If the chief boiler inspector has knowledge that a
  638  boiler regulated under this chapter was covered by a boiler and
  639  machinery insurance policy after its most recent certification
  640  inspection, the certificateholder must, upon the request of the
  641  chief boiler inspector, submit its certificate of boiler and
  642  machinery insurance for the boiler if the department has not
  643  received the special boiler inspector’s annual inspection report
  644  within 30 days after its due date.
  645         Section 13. Section 554.111, Florida Statutes, is amended
  646  to read:
  647         554.111 Fees.—
  648         (1) The department shall charge the following fees:
  649         (a) For an applicant for a certificate of competency, the
  650  initial application fee shall be $50, and the annual renewal fee
  651  shall be $30. The fee for examination shall be $50.
  652         (b) For certificate inspections conducted by the
  653  department:
  654         1. For power boilers and high pressure, high temperature
  655  water boilers of:
  656  4,000 square feet or less heating surface....................$60
  657  More than 4,000 square feet heating surface and less than 10,000
  658  square feet of heating surface...............................$70
  659  10,000 square feet or more heating surface...................$90
  660         2. For heating boilers:
  661  Without a manhole............................................$40
  662  With a manhole...............................................$70
  663         3. For hot water supply boilers.......................$40
  664         (c) For issuance of a compliance certificate of operation
  665  without a department inspection..............................$30
  666         (d) Duplicate certificates or address
  667  changes.......................................................$5
  668         (e) An application for a boiler permit must include the
  669  applicable certificate inspection fee provided in paragraph (b).
  670         (2) Not more than an amount equal to one certificate
  671  inspection fee may shall be charged or collected for any and all
  672  boiler inspections in any inspection period, except as otherwise
  673  provided in this chapter ss. 554.1011-554.115.
  674         (a) When it is necessary to make a special trip to observe
  675  the application of a hydrostatic test, an additional fee equal
  676  to the fee for a certificate inspection of the boiler must shall
  677  be charged.
  678         (b) All other inspections, including shop inspections,
  679  surveys, and inspections of secondhand boilers made by the chief
  680  boiler inspector or a deputy boiler inspector, must shall be
  681  charged at the rate of not less than $270 for one-half day of 4
  682  hours, and $500 for 1 full day of 8 hours, plus travel, hotel,
  683  and incidental expenses in accordance with chapter 112.
  684         (3) The chief boiler inspector shall deposit all fees or
  685  fines received pursuant to this chapter ss. 554.1011-554.115
  686  into the Insurance Regulatory Trust Fund.
  687         Section 14. Sections 554.112 and 554.113, Florida Statutes,
  688  are repealed.
  689         Section 15. Section 554.114, Florida Statutes, is amended
  690  to read:
  691         554.114 Prohibitions; penalties.—
  692         (1) A person may not:
  693         (a) Operate a boiler at a public assembly location without
  694  a valid certificate of operation compliance for that boiler;
  695         (b) Give false or forged information to the department or
  696  an inspector for the purpose of obtaining a certificate of
  697  compliance;
  698         (c) Use a certificate of operation compliance for any
  699  boiler other than for the boiler for which it was issued;
  700         (c)(d) Operate a boiler for which the certificate of
  701  operation compliance has been suspended, revoked, or not
  702  renewed;
  703         (e) Give false or forged information to the department for
  704  the purpose of obtaining a certificate of competence; or
  705         (d)(f) Inspect any boiler regulated under this chapter the
  706  provisions of ss. 554.1011-554.115 without having a valid
  707  certificate of competency.
  708         (2) A boiler insurance company that fails to inspect or to
  709  have inspected, in accordance with this chapter, any boiler
  710  insured by the company and regulated under this chapter is
  711  subject to the penalties provided in subsection (4), unless the
  712  failure to inspect was the result of an owner’s or operator’s
  713  failure to provide reasonable access to the boiler Any person
  714  who violates this section is guilty of a misdemeanor of the
  715  second degree, punishable by fine as provided in s. 775.083.
  716         (3) An authorized inspection agency that is under contract
  717  with a boiler insurance company and that fails to inspect, in
  718  accordance with this chapter, any boiler insured by the company
  719  and regulated under this chapter is subject to the penalties
  720  provided in subsection (4), unless the failure to inspect was
  721  the result of an owner’s or operator’s failure to provide
  722  reasonable access to the boiler.
  723         (4)A boiler insurance company, authorized inspection
  724  agency, or other person in violation of this section for more
  725  than 30 days shall pay a fine of $10 per day for the first 10
  726  days of noncompliance, $50 per day for the subsequent 20 days of
  727  noncompliance, and $100 per day for each subsequent day over 20
  728  days of noncompliance.
  729         Section 16. Section 554.115, Florida Statutes, is amended
  730  to read:
  731         554.115 Disciplinary proceedings.—
  732         (1) The department may deny, refuse to renew, suspend, or
  733  revoke a certificate of operation compliance upon proof that:
  734         (a) The certificate has been obtained by fraud or
  735  misrepresentation;
  736         (b) The boiler for which the certificate was issued cannot
  737  be operated safely; or
  738         (c) The person who received the certificate willfully or
  739  deliberately violated the State Boiler Code, this chapter, or
  740  ss. 554.1011-554.115 or any other rule adopted pursuant to this
  741  chapter; or ss. 554.1011-554.115.
  742         (d) The owner of a boiler:
  743         1. Operated a boiler at a public assembly location without
  744  a valid certificate of operation for that boiler;
  745         2. Used a certificate of operation for a boiler other than
  746  the boiler for which the certificate of operation was issued;
  747         3. Gave false or forged information to the department, to
  748  an authorized inspection agency, or to another boiler inspector
  749  for the purpose of obtaining a certificate of operation;
  750         4. Operated a boiler after the certificate of operation for
  751  the boiler expired, was not renewed, or was suspended or
  752  revoked;
  753         5. Operated a boiler that is in an unsafe condition; or
  754         6. Operated a boiler in a manner that is contrary to the
  755  requirements of this chapter or any rule adopted under this
  756  chapter.
  757         (2) The department may deny, refuse to renew, suspend, or
  758  revoke a certificate of competency upon proof that:
  759         (a) The certificate was obtained by fraud or
  760  misrepresentation;
  761         (b) The inspector to whom the certificate was issued is no
  762  longer qualified under this chapter ss. 554.1011-554.115 to
  763  inspect boilers; or
  764         (c) The boiler inspector:
  765         1. Operated a boiler at a public assembly location without
  766  a valid certificate of compliance for that boiler;
  767         2. Gave false or forged information to the department, an
  768  authorized inspection agency, or to another boiler inspector for
  769  the purpose of obtaining a certificate of operation; or
  770  compliance;
  771         3. Used a certificate of compliance for any boiler other
  772  than the boiler for which it was issued;
  773         4. Operated a boiler for which the certificate of
  774  compliance has been suspended or revoked or has expired;
  775         2.5. Inspected any boiler regulated under this chapter ss.
  776  554.1011-554.115 without having obtained a valid certificate of
  777  competency.;
  778         6. Operated a boiler that is in an unsafe condition; or
  779         7. Operated a boiler in a manner that is contrary to the
  780  requirements of this chapter or any rule adopted under this
  781  chapter.
  782         (3) Each suspension of a certificate of operation
  783  compliance or certificate of competency shall continue in effect
  784  until all violations have been corrected and, for boiler safety
  785  violations, until the boiler has been inspected by an authorized
  786  inspector and shown to be in a safe working condition.
  787         (4) A person in violation of this section who does not have
  788  a valid certificate of competency shall be reported by the chief
  789  inspector to the appropriate state attorney.
  790         (5) A person in violation of this section who has a valid
  791  certificate of competency is subject to administrative action by
  792  the chief inspector.
  793         (4)(6) A revocation of a certificate of competency is
  794  permanent, and a revoked certificate of competency may not be
  795  reinstated or a new certificate of competency issued to the same
  796  person. A suspension of a certificate of competency continues in
  797  effect until all violations have been corrected. A suspension of
  798  a certificate of compliance for any boiler safety violation
  799  continues in effect until the boiler has been inspected by an
  800  authorized inspector and shown to be in safe working condition.
  801         Section 17. Section 554.1151, Florida Statutes, is created
  802  to read:
  803         554.1151 Administrative fine in lieu of or in addition to
  804  suspension, revocation, or refusal to renew a certificate of
  805  operation or competency.—
  806         (1) If the department finds that one or more grounds exist
  807  for the suspension, revocation, or refusal to renew any
  808  certificate of operation or certificate of competency issued
  809  under this chapter, the department may, in its discretion, in
  810  lieu of or in addition to suspension or revocation or in lieu of
  811  refusal to renew, impose upon the certificateholder an
  812  administrative penalty in an amount up to $500, or, if the
  813  department has found willful misconduct or willful violation on
  814  the part of the certificateholder, in an amount up to $3,500.
  815         (2) The department may allow the certificateholder a
  816  reasonable period, no more than 30 days, within which to pay to
  817  the department the amount of the penalty so imposed. If the
  818  certificateholder fails to pay the penalty in its entirety to
  819  the department within the period so allowed, the certificate of
  820  that person must be suspended until the penalty is paid. If the
  821  certificateholder fails to pay the penalty in its entirety to
  822  the department within 90 days after the period so allowed, the
  823  certificate of that person must be revoked.
  824         Section 18. Subsection (7) of section 624.307, Florida
  825  Statutes, is amended to read:
  826         624.307 General powers; duties.—
  827         (7) The department and office, within existing resources,
  828  may expend funds for the professional development of its
  829  employees, including, but not limited to, professional dues for
  830  employees who are required to be members of professional
  831  organizations; examinations leading to professional designations
  832  required for employment with the office; training courses and
  833  examinations provided through, and to ensure compliance with,
  834  the National Association of Insurance Commissioners; or other
  835  training courses related to the regulation of insurance.
  836         Section 19. Present subsections (1), (2), and (3) and (4)
  837  through (19) of section 626.015, Florida Statutes, are
  838  redesignated as subsections (2), (3), and (4) and (6) through
  839  (21), respectively, present subsection (8) is amended, and new
  840  subsections (1) and (5) are added to that section, to read:
  841         626.015 Definitions.—As used in this part:
  842         (1) “Active participant” means a member in good standing of
  843  an association who attends 4 or more hours of association
  844  meetings every year, not including any department-approved
  845  continuing education course.
  846         (5) “Association” includes the Florida Association of
  847  Insurance Agents (FAIA), the National Association of Insurance
  848  and Financial Advisors (NAIFA), the Florida Association of
  849  Health Underwriters (FAHU), the Latin American Association of
  850  Insurance Agencies (LAAIA), the Florida Association of Public
  851  Insurance Adjusters (FAPIA), the Florida Bail Agents Association
  852  (FBAA), or the Professional Bail Agents of the United States
  853  (PBUS).
  854         (10)(8) “Insurance agency” means a business location at
  855  which an individual, firm, partnership, corporation,
  856  association, or other entity, other than an employee of the
  857  individual, firm, partnership, corporation, association, or
  858  other entity and other than an insurer as defined by s. 624.03
  859  or an adjuster as defined by subsection (2) (1), engages in any
  860  activity or employs individuals to engage in any activity which
  861  by law may be performed only by a licensed insurance agent.
  862         Section 20. Section 626.207, Florida Statutes, is amended
  863  to read:
  864         626.207 Disqualification of applicants and licensees;
  865  penalties against licensees; rulemaking authority.—
  866         (1) For purposes of this section, the term or terms:
  867         (a) “Applicant” means an individual applying for licensure
  868  or relicensure under this chapter, and an officer, director,
  869  majority owner, partner, manager, or other person who manages or
  870  controls an entity applying for licensure or relicensure under
  871  this chapter.
  872         (c) “Financial services business” means any financial
  873  activity regulated by the Department of Financial Services, the
  874  Office of Insurance Regulation, or the Office of Financial
  875  Regulation.
  876         (b)(2)For purposes of this section, the terms “Felony of
  877  the first degree” and “capital felony” include all felonies
  878  designated as such by the Florida Statutes, as well as any
  879  felony so designated in the jurisdiction in which the plea is
  880  entered or judgment is rendered.
  881         (2)(3) An applicant who has been found guilty of or has
  882  pleaded guilty or nolo contendere to any of the following
  883  crimes, regardless of adjudication, is permanently barred from
  884  licensure under this chapter: commits
  885         (a) A felony of the first degree;
  886         (b) A capital felony;
  887         (c) A felony involving money laundering;, fraud, or
  888         (d) A felony embezzlement; or
  889         (e) A felony directly related to the financial services
  890  business is permanently barred from applying for a license under
  891  this part. This bar applies to convictions, guilty pleas, or
  892  nolo contendere pleas, regardless of adjudication, by any
  893  applicant, officer, director, majority owner, partner, manager,
  894  or other person who manages or controls any applicant.
  895         (3)(4)An applicant who has been found guilty of or has
  896  pleaded guilty or nolo contendere to a crime For all other
  897  crimes not included in subsection (2), regardless of
  898  adjudication, is subject to (3), the department shall adopt
  899  rules establishing the process and application of disqualifying
  900  periods that include:
  901         (a) A 15-year disqualifying period for all felonies
  902  involving moral turpitude which that are not specifically
  903  included in the permanent bar contained in subsection (2) (3).
  904         (b) A 7-year disqualifying period for all felonies to which
  905  neither the permanent bar in subsection (2) (3) nor the 15-year
  906  disqualifying period in paragraph (a) applies.
  907         (c) A 7-year disqualifying period for all misdemeanors
  908  directly related to the financial services business.
  909         (4)(5) The department shall adopt rules to administer this
  910  section. The rules must provide providing for additional
  911  disqualifying periods due to the commitment of multiple crimes
  912  and may include other factors reasonably related to the
  913  applicant’s criminal history. The rules shall provide for
  914  mitigating and aggravating factors. However, mitigation may not
  915  result in a period of disqualification of less than 7 years and
  916  may not mitigate the disqualifying periods in paragraphs (3)(b)
  917  and (c) (4)(b) and (c).
  918         (5)(6) For purposes of this section, the disqualifying
  919  periods begin upon the applicant’s final release from
  920  supervision or upon completion of the applicant’s criminal
  921  sentence, including payment of fines, restitution, and court
  922  costs for the crime for which the disqualifying period applies.
  923  The department may not issue a license to an applicant unless
  924  all related fines, court costs and fees, and court-ordered
  925  restitution have been paid.
  926         (6)(7) After the disqualifying period has expired been met,
  927  the burden is on the applicant to demonstrate that the applicant
  928  has been rehabilitated, does not pose a risk to the insurance
  929  buying public, is fit and trustworthy to engage in the business
  930  of insurance pursuant to s. 626.611(1)(g), and is otherwise
  931  qualified for licensure.
  932         (7)Notwithstanding subsections (2) and (3), upon a grant
  933  of a pardon or the restoration of civil rights pursuant to
  934  chapter 940 and s. 8, Art. IV of the State Constitution with
  935  respect to a finding of guilt or a plea under subsection (2) or
  936  subsection (3), such finding or plea no longer bars or
  937  disqualifies the applicant from licensure under this chapter
  938  unless the clemency specifically excludes licensure in the
  939  financial services business; however, a pardon or restoration of
  940  civil rights does not require the department to award such
  941  license.
  942         (8) The department shall adopt rules establishing specific
  943  penalties against licensees in accordance with ss. 626.641 and
  944  626.651 for violations of s. 626.611, s. 626.621, s. 626.8437,
  945  s. 626.844, s. 626.935, s. 634.181, s. 634.191, s. 634.320, s.
  946  634.321, s. 634.422, s. 634.423, s. 642.041, or s. 642.043. The
  947  purpose of the revocation or suspension is to provide a
  948  sufficient penalty to deter future violations of the Florida
  949  Insurance Code. The imposition of a revocation or the length of
  950  suspension shall be based on the type of conduct and the
  951  probability that the propensity to commit further illegal
  952  conduct has been overcome at the time of eligibility for
  953  relicensure. The length of suspension may be adjusted based on
  954  aggravating or mitigating factors, established by rule and
  955  consistent with this purpose.
  956         (9) Section 112.011 does not apply to any applicants for
  957  licensure under the Florida Insurance Code, including, but not
  958  limited to, agents, agencies, adjusters, adjusting firms,
  959  customer representatives, or managing general agents.
  960         Section 21. Paragraph (j) of subsection (2) of section
  961  626.221, Florida Statutes, is amended to read:
  962         626.221 Examination requirement; exemptions.—
  963         (2) However, an examination is not necessary for any of the
  964  following:
  965         (j) An applicant for license as an all-lines adjuster who
  966  has the designation of Accredited Claims Adjuster (ACA) from a
  967  regionally accredited postsecondary institution in this state,
  968  Associate in Claims (AIC) from the Insurance Institute of
  969  America, Professional Claims Adjuster (PCA) from the
  970  Professional Career Institute, Professional Property Insurance
  971  Adjuster (PPIA) from the HurriClaim Training Academy, Certified
  972  Adjuster (CA) from ALL LINES Training, or Certified Claims
  973  Adjuster (CCA) from AE21 Incorporated, or Universal Claims
  974  Certification (UCC) from Claims and Litigation Management
  975  Alliance (CLM) whose curriculum has been approved by the
  976  department and which includes comprehensive analysis of basic
  977  property and casualty lines of insurance and testing at least
  978  equal to that of standard department testing for the all-lines
  979  adjuster license. The department shall adopt rules establishing
  980  standards for the approval of curriculum.
  981         Section 22. Present paragraphs (i) and (j) of subsection
  982  (7) of section 626.2815, Florida Statutes, are redesignated as
  983  paragraphs (j) and (k), respectively, and a new paragraph (i) is
  984  added to that subsection, to read:
  985         626.2815 Continuing education requirements.—
  986         (7) The following courses may be completed in order to meet
  987  the elective continuing education course requirements:
  988         (i) Any part of the Claims and Litigation Management
  989  Alliance (CLM) Universal Claims Certification (UCC) professional
  990  designation: 19 hours of elective continuing education and 5
  991  hours of the continuing education required under subsection (3).
  992         Section 23. Paragraph (b) of subsection (1) of section
  993  626.8734, Florida Statutes, is amended to read:
  994         626.8734 Nonresident all-lines adjuster license
  995  qualifications.—
  996         (1) The department shall issue a license to an applicant
  997  for a nonresident all-lines adjuster license upon determining
  998  that the applicant has paid the applicable license fees required
  999  under s. 624.501 and:
 1000         (b) Has passed to the satisfaction of the department a
 1001  written Florida all-lines adjuster examination of the scope
 1002  prescribed in s. 626.241(6); however, the requirement for the
 1003  examination does not apply to:
 1004         1. An applicant who is licensed as an all-lines adjuster in
 1005  his or her home state if that state has entered into a
 1006  reciprocal agreement with the department; or
 1007         2. An applicant who is licensed as a nonresident all-lines
 1008  adjuster in a state other than his or her home state and a
 1009  reciprocal agreement with the appropriate official of the state
 1010  of licensure has been entered into with the department; or
 1011         3. An applicant who holds a certification set forth in s.
 1012  626.221(2)(j).
 1013         Section 24. Section 626.9954, Florida Statutes, is amended
 1014  to read:
 1015         626.9954 Disqualification from registration.—
 1016         (1) As used in this section, the terms “felony of the first
 1017  degree” and “capital felony” include all felonies so designated
 1018  by the laws of this state, as well as any felony so designated
 1019  in the jurisdiction in which the plea is entered or judgment is
 1020  rendered.
 1021         (2) An applicant who has been found guilty of or has
 1022  pleaded guilty or nolo contendere to the following crimes,
 1023  regardless of adjudication, is permanently disqualified from
 1024  registration under this part: commits
 1025         (a) A felony of the first degree;
 1026         (b) A capital felony;
 1027         (c) A felony involving money laundering;, fraud, or
 1028         (d) A felony embezzlement; or
 1029         (e) A felony directly related to the financial services
 1030  business is permanently barred from applying for registration
 1031  under this part. This bar applies to convictions, guilty pleas,
 1032  or nolo contendere pleas, regardless of adjudication, by an
 1033  applicant.
 1034         (3) An applicant who has been found guilty of or has
 1035  pleaded guilty or nolo contendere to a crime For all other
 1036  crimes not described in subsection (2), regardless of
 1037  adjudication, is subject to the department may adopt rules
 1038  establishing the process and application of disqualifying
 1039  periods including:
 1040         (a) A 15-year disqualifying period for all felonies
 1041  involving moral turpitude which are not specifically included in
 1042  subsection (2).
 1043         (b) A 7-year disqualifying period for all felonies not
 1044  specifically included in subsection (2) or paragraph (a).
 1045         (c) A 7-year disqualifying period for all misdemeanors
 1046  directly related to the financial services business.
 1047         (4) The department may adopt rules to administer this
 1048  section. The rules must provide for providing additional
 1049  disqualifying periods due to the commitment of multiple crimes
 1050  and may include other factors reasonably related to the
 1051  applicant’s criminal history. The rules must provide for
 1052  mitigating and aggravating factors. However, mitigation may not
 1053  result in a disqualifying period of less than 7 years and may
 1054  not mitigate the disqualifying periods in paragraph (3)(b) or
 1055  paragraph (3)(c).
 1056         (5) For purposes of this section, the disqualifying periods
 1057  begin upon the applicant’s final release from supervision or
 1058  upon completion of the applicant’s criminal sentence, including
 1059  the payment of fines, restitution, and court costs for the crime
 1060  for which the disqualifying period applies. The department may
 1061  not issue a registration to an applicant unless all related
 1062  fines, court costs and fees, and court-ordered restitution have
 1063  been paid.
 1064         (6) After the disqualifying period has expired been met,
 1065  the burden is on the applicant to demonstrate to the
 1066  satisfaction of the department that he or she has been
 1067  rehabilitated and does not pose a risk to the insurance-buying
 1068  public and is otherwise qualified for registration.
 1069         (7)Notwithstanding subsections (2) and (3), upon a grant
 1070  of a pardon or the restoration of civil rights pursuant to
 1071  chapter 940 and s. 8, Art. IV of the State Constitution with
 1072  respect to a finding of guilt or a plea under subsection (2) or
 1073  subsection (3), such finding or plea no longer bars or
 1074  disqualifies the applicant from applying for registration under
 1075  this part unless the clemency specifically excludes licensure or
 1076  specifically excludes registration in the financial services
 1077  business; however, a pardon or restoration of civil rights does
 1078  not require the department to award such registration.
 1079         (8)(7) Section 112.011 does not apply to an applicant for
 1080  registration as a navigator.
 1081         Section 25. Paragraph (a) of subsection (3) of section
 1082  626.2815, Florida Statutes, is amended, and paragraph (j) is
 1083  added to that subsection, to read:
 1084         626.2815 Continuing education requirements.—
 1085         (3) Each licensee except a title insurance agent must
 1086  complete a 5-hour update course every 2 years which is specific
 1087  to the license held by the licensee. The course must be
 1088  developed and offered by providers and approved by the
 1089  department. The content of the course must address all lines of
 1090  insurance for which examination and licensure are required and
 1091  include the following subject areas: insurance law updates,
 1092  ethics for insurance professionals, disciplinary trends and case
 1093  studies, industry trends, premium discounts, determining
 1094  suitability of products and services, and other similar
 1095  insurance-related topics the department determines are relevant
 1096  to legally and ethically carrying out the responsibilities of
 1097  the license granted. A licensee who holds multiple insurance
 1098  licenses must complete an update course that is specific to at
 1099  least one of the licenses held. Except as otherwise specified,
 1100  any remaining required hours of continuing education are
 1101  elective and may consist of any continuing education course
 1102  approved by the department under this section.
 1103         (a) Except as provided in paragraphs (b), (c), (d), (e),
 1104  and (i), and (j), each licensee must also complete 19 hours of
 1105  elective continuing education courses every 2 years.
 1106         (j) For a licensee who is an active participant in an
 1107  association, 2 hours of elective continuing education credit per
 1108  calendar year may be approved by the department, if properly
 1109  reported by the association.
 1110         Section 26. Paragraph (n) of subsection (1) and subsection
 1111  (2) of section 626.611, Florida Statutes, are amended to read:
 1112         626.611 Grounds for compulsory refusal, suspension, or
 1113  revocation of agent’s, title agency’s, adjuster’s, customer
 1114  representative’s, service representative’s, or managing general
 1115  agent’s license or appointment.—
 1116         (1) The department shall deny an application for, suspend,
 1117  revoke, or refuse to renew or continue the license or
 1118  appointment of any applicant, agent, title agency, adjuster,
 1119  customer representative, service representative, or managing
 1120  general agent, and it shall suspend or revoke the eligibility to
 1121  hold a license or appointment of any such person, if it finds
 1122  that as to the applicant, licensee, or appointee any one or more
 1123  of the following applicable grounds exist:
 1124         (n) Having been found guilty of or having pleaded guilty or
 1125  nolo contendere to a felony or a crime punishable by
 1126  imprisonment of 1 year or more under the law of the United
 1127  States of America or of any state thereof or under the law of
 1128  any other country which involves moral turpitude, without regard
 1129  to whether a judgment of conviction has been entered by the
 1130  court having jurisdiction of such cases.
 1131         (2) The department shall, upon receipt of information or an
 1132  indictment, immediately temporarily suspend a license or
 1133  appointment issued under this chapter when the licensee is
 1134  charged with a felony enumerated in s. 626.207(2) s. 626.207(3).
 1135  Such suspension shall continue if the licensee is found guilty
 1136  of, or pleads guilty or nolo contendere to, the crime,
 1137  regardless of whether a judgment or conviction is entered,
 1138  during a pending appeal. A person may not transact insurance
 1139  business after suspension of his or her license or appointment.
 1140         Section 27. Subsection (8) of section 626.621, Florida
 1141  Statutes, is amended, and a new subsection (15) is added to that
 1142  section, to read:
 1143         626.621 Grounds for discretionary refusal, suspension, or
 1144  revocation of agent’s, adjuster’s, customer representative’s,
 1145  service representative’s, or managing general agent’s license or
 1146  appointment.—The department may, in its discretion, deny an
 1147  application for, suspend, revoke, or refuse to renew or continue
 1148  the license or appointment of any applicant, agent, adjuster,
 1149  customer representative, service representative, or managing
 1150  general agent, and it may suspend or revoke the eligibility to
 1151  hold a license or appointment of any such person, if it finds
 1152  that as to the applicant, licensee, or appointee any one or more
 1153  of the following applicable grounds exist under circumstances
 1154  for which such denial, suspension, revocation, or refusal is not
 1155  mandatory under s. 626.611:
 1156         (8) Having been found guilty of or having pleaded guilty or
 1157  nolo contendere to a felony or a crime punishable by
 1158  imprisonment of 1 year or more under the law of the United
 1159  States of America or of any state thereof or under the law of
 1160  any other country, without regard to whether a judgment of
 1161  conviction has been entered by the court having jurisdiction of
 1162  such cases.
 1163         (15) Denial, suspension, or revocation of, or any other
 1164  adverse administrative action against, a license to practice or
 1165  conduct any regulated profession, business, or vocation by this
 1166  state, any other state, any nation, any possession or district
 1167  of the United States, any court, or any lawful agency thereof.
 1168         Section 28. Subsection (2) of section 626.7845, Florida
 1169  Statutes, is amended to read:
 1170         626.7845 Prohibition against unlicensed transaction of life
 1171  insurance.—
 1172         (2) Except as provided in s. 626.112(6), with respect to
 1173  any line of authority specified in s. 626.015(12) s.
 1174  626.015(10), an no individual may not shall, unless licensed as
 1175  a life agent:
 1176         (a) Solicit insurance or annuities or procure applications;
 1177         (b) In this state, engage or hold himself or herself out as
 1178  engaging in the business of analyzing or abstracting insurance
 1179  policies or of counseling or advising or giving opinions to
 1180  persons relative to insurance or insurance contracts, unless the
 1181  individual is other than:
 1182         1. As A consulting actuary advising insurers an insurer; or
 1183         2. An employee As to the counseling and advising of a labor
 1184  union, association, employer, or other business entity labor
 1185  unions, associations, trustees, employers, or other business
 1186  entities, or the subsidiaries and affiliates of each, who
 1187  counsels and advises such entity or entities relative to their
 1188  interests and those of their members or employees under
 1189  insurance benefit plans; or
 1190         3. A trustee advising a settlor, a beneficiary, or a person
 1191  regarding his or her interests in a trust, relative to insurance
 1192  benefit plans; or
 1193         (c) In this state, from this state, or with a resident of
 1194  this state, offer or attempt to negotiate on behalf of another
 1195  person a viatical settlement contract as defined in s. 626.9911.
 1196         Section 29. Section 626.8305, Florida Statutes, is amended
 1197  to read:
 1198         626.8305 Prohibition against the unlicensed transaction of
 1199  health insurance.—Except as provided in s. 626.112(6), with
 1200  respect to any line of authority specified in s. 626.015(8) s.
 1201  626.015(6), an no individual may not shall, unless licensed as a
 1202  health agent:
 1203         (1) Solicit insurance or procure applications; or
 1204         (2) In this state, engage or hold himself or herself out as
 1205  engaging in the business of analyzing or abstracting insurance
 1206  policies or of counseling or advising or giving opinions to
 1207  persons relative to insurance contracts, unless the individual
 1208  is other than:
 1209         (a) As A consulting actuary advising insurers; or
 1210         (b) An employee As to the counseling and advising of a
 1211  labor union, association, employer, or other business entity
 1212  labor unions, associations, trustees, employers, or other
 1213  business entities, or the subsidiaries and affiliates of each,
 1214  who counsels and advises such entity or entities relative to
 1215  their interests and those of their members or employees under
 1216  insurance benefit plans; or.
 1217         (c) A trustee advising a settlor, a beneficiary, or a
 1218  person regarding his or her interests in a trust, relative to
 1219  insurance benefit plans.
 1220         Section 30. Subsection (1) of section 626.861, Florida
 1221  Statutes, is amended to read:
 1222         626.861 Insurer’s officers, insurer’s employees, reciprocal
 1223  insurer’s representatives; adjustments by.—
 1224         (1) This part may not Nothing in this part shall be
 1225  construed to prevent an executive officer of any insurer, or a
 1226  regularly salaried employee of an insurer handling claims with
 1227  respect to health insurance, a regular employee of an insurer
 1228  handling claims with respect to residential property when the
 1229  sublimit coverage does not exceed $500, or the duly designated
 1230  attorney or agent authorized and acting for subscribers to
 1231  reciprocal insurers, from adjusting any claim loss or damage
 1232  under any insurance contract of such insurer.
 1233         Section 31. Paragraph (c) of subsection (5) and subsection
 1234  (6) of section 626.9543, Florida Statutes, are amended to read:
 1235         626.9543 Holocaust victims.—
 1236         (5) PROOF OF A CLAIM.—Any insurer doing business in this
 1237  state, in receipt of a claim from a Holocaust victim or from a
 1238  beneficiary, descendant, or heir of a Holocaust victim, shall:
 1239         (c) Permit claims irrespective of any statute of
 1240  limitations or notice requirements imposed by any insurance
 1241  policy issued, provided the claim is submitted on or before July
 1242  1, 2018.
 1243         (6) STATUTE OF LIMITATIONS.—Notwithstanding any law or
 1244  agreement among the parties to an insurance policy to the
 1245  contrary, any action brought by Holocaust victims or by a
 1246  beneficiary, heir, or a descendant of a Holocaust victim seeking
 1247  proceeds of an insurance policy issued or in effect between 1920
 1248  and 1945, inclusive, may shall not be dismissed for failure to
 1249  comply with the applicable statute of limitations or laches
 1250  provided the action is commenced on or before July 1, 2018.
 1251         Section 32. Section 633.516, Florida Statutes, is amended
 1252  to read:
 1253         633.516 Studies of Division to make study of firefighter
 1254  employee occupational diseases of firefighters or persons in
 1255  other fire-related fields.—The division may contract for
 1256  studies, subject to the availability of funding, of shall make a
 1257  continuous study of firefighter employee occupational diseases
 1258  of firefighters or persons in other fire-related fields and the
 1259  ways and means for the their control and prevention of such
 1260  occupational diseases. When such a study or another study that
 1261  is wholly or partly funded under an agreement, including a
 1262  contract or grant, with the department tracks a disease of an
 1263  individual firefighter or a person in another fire-related
 1264  field, the division may, with associated security measures,
 1265  release the confidential information, including a social
 1266  security number, of that individual to a party who has entered
 1267  into an agreement with the department and shall adopt rules
 1268  necessary for such control and prevention. For this purpose, the
 1269  division is authorized to cooperate with firefighter employers,
 1270  firefighter employees, and insurers and with the Department of
 1271  Health.
 1272         Section 33. Paragraph (a) of subsection (6) and subsection
 1273  (7) of section 768.28, Florida Statutes, are amended to read:
 1274         768.28 Waiver of sovereign immunity in tort actions;
 1275  recovery limits; limitation on attorney fees; statute of
 1276  limitations; exclusions; indemnification; risk management
 1277  programs.—
 1278         (6)(a) An action may not be instituted on a claim against
 1279  the state or one of its agencies or subdivisions unless the
 1280  claimant presents the claim in writing to the appropriate
 1281  agency, and also, except as to any claim against a municipality,
 1282  county, or the Florida Space Authority, presents such claim in
 1283  writing to the Department of Financial Services, within 3 years
 1284  after such claim accrues and the Department of Financial
 1285  Services or the appropriate agency denies the claim in writing;
 1286  except that, if:
 1287         1. Such claim is for contribution pursuant to s. 768.31, it
 1288  must be so presented within 6 months after the judgment against
 1289  the tortfeasor seeking contribution has become final by lapse of
 1290  time for appeal or after appellate review or, if there is no
 1291  such judgment, within 6 months after the tortfeasor seeking
 1292  contribution has either discharged the common liability by
 1293  payment or agreed, while the action is pending against her or
 1294  him, to discharge the common liability; or
 1295         2. Such action is for wrongful death, the claimant must
 1296  present the claim in writing to the Department of Financial
 1297  Services within 2 years after the claim accrues.
 1298         (7) In actions brought pursuant to this section, process
 1299  shall be served upon the head of the agency concerned and also,
 1300  except as to a defendant municipality, county, or the Florida
 1301  Space Authority, upon the Department of Financial Services; and
 1302  the department or the agency concerned shall have 30 days within
 1303  which to plead thereto.
 1304         Section 34. Subsections (3) and (4) and paragraph (e) of
 1305  subsection (5) of section 288.706, Florida Statutes, are amended
 1306  to read:
 1307         288.706 Florida Minority Business Loan Mobilization
 1308  Program.—
 1309         (3) Notwithstanding ss. 215.422(15) and 216.181(16) ss.
 1310  215.422(14) and 216.181(16), and pursuant to s. 216.351, under
 1311  the Florida Minority Business Loan Mobilization Program, a state
 1312  agency may disburse up to 10 percent of the base contract award
 1313  amount to assist a minority business enterprise vendor that is
 1314  awarded a state agency contract for goods or services in
 1315  obtaining working capital financing as provided in subsection
 1316  (5).
 1317         (4) Notwithstanding ss. 215.422(15) and 216.181(16) ss.
 1318  215.422(14) and 216.181(16), and pursuant to s. 216.351, in lieu
 1319  of applying for participation in the Florida Minority Business
 1320  Loan Mobilization Program, a minority business enterprise vendor
 1321  awarded a state agency contract for the performance of
 1322  professional services may apply with that contracting state
 1323  agency for up to 5 percent of the base contract award amount.
 1324  The contracting state agency may award such advance in order to
 1325  facilitate the performance of that contract.
 1326         (5) The following Florida Minority Business Loan
 1327  Mobilization Program procedures apply to minority business
 1328  enterprise vendors for contracts awarded by a state agency for
 1329  construction or professional services or for the provision of
 1330  goods or services:
 1331         (e) The following procedures shall apply when the minority
 1332  business enterprise is the prime contract vendor to the
 1333  contracting state agency:
 1334         1. Pursuant to s. 216.351, ss. 215.422(15) and 216.181(16)
 1335  the provisions of ss. 215.422(14) and 216.181(16) do not apply
 1336  to this paragraph.
 1337         2. For construction contracts, the designated loan
 1338  mobilization payment shall be disbursed when:
 1339         a. The minority business enterprise prime contract vendor
 1340  requests disbursement in the first application for payment.
 1341         b. The contracting state agency has issued a notice to
 1342  proceed and has approved the first application for payment.
 1343         3. For contracts other than construction contracts, the
 1344  designated loan mobilization payment shall be disbursed when:
 1345         a. The minority business enterprise prime contract vendor
 1346  requests disbursement by letter delivered to the contracting
 1347  state agency after the execution of the contract but prior to
 1348  the commencement of work.
 1349         b. The contracting state agency has approved the minority
 1350  business enterprise prime contract vendor’s letter of request.
 1351         4. The designated loan mobilization payment may be paid by
 1352  the contracting state agency prior to the commencement of work.
 1353  In order to ensure that the contract time provisions do not
 1354  commence until the minority business enterprise prime contract
 1355  vendor has adequate working capital, the contract documents may
 1356  provide that the contract shall commence at such time as the
 1357  contracting state agency releases the designated loan
 1358  mobilization payment to the minority business enterprise prime
 1359  contract vendor and participating financial institution pursuant
 1360  to the working capital agreement.
 1361         Section 35. Section 626.7315, Florida Statutes, is amended
 1362  to read:
 1363         626.7315 Prohibition against the unlicensed transaction of
 1364  general lines insurance.—With respect to any line of authority
 1365  as defined in s. 626.015(7) s. 626.015(5), no individual shall,
 1366  unless licensed as a general lines agent:
 1367         (1) Solicit insurance or procure applications therefor;
 1368         (2) In this state, receive or issue a receipt for any money
 1369  on account of or for any insurer, or receive or issue a receipt
 1370  for money from other persons to be transmitted to any insurer
 1371  for a policy, contract, or certificate of insurance or any
 1372  renewal thereof, even though the policy, certificate, or
 1373  contract is not signed by him or her as agent or representative
 1374  of the insurer, except as provided in s. 626.0428(1);
 1375         (3) Directly or indirectly represent himself or herself to
 1376  be an agent of any insurer or as an agent, to collect or forward
 1377  any insurance premium, or to solicit, negotiate, effect,
 1378  procure, receive, deliver, or forward, directly or indirectly,
 1379  any insurance contract or renewal thereof or any endorsement
 1380  relating to an insurance contract, or attempt to effect the
 1381  same, of property or insurable business activities or interests,
 1382  located in this state;
 1383         (4) In this state, engage or hold himself or herself out as
 1384  engaging in the business of analyzing or abstracting insurance
 1385  policies or of counseling or advising or giving opinions, other
 1386  than as a licensed attorney at law, relative to insurance or
 1387  insurance contracts, for fee, commission, or other compensation,
 1388  other than as a salaried bona fide full-time employee so
 1389  counseling and advising his or her employer relative to the
 1390  insurance interests of the employer and of the subsidiaries or
 1391  business affiliates of the employer;
 1392         (5) In any way, directly or indirectly, make or cause to be
 1393  made, or attempt to make or cause to be made, any contract of
 1394  insurance for or on account of any insurer;
 1395         (6) Solicit, negotiate, or in any way, directly or
 1396  indirectly, effect insurance contracts, if a member of a
 1397  partnership or association, or a stockholder, officer, or agent
 1398  of a corporation which holds an agency appointment from any
 1399  insurer; or
 1400         (7) Receive or transmit applications for suretyship, or
 1401  receive for delivery bonds founded on applications forwarded
 1402  from this state, or otherwise procure suretyship to be effected
 1403  by a surety insurer upon the bonds of persons in this state or
 1404  upon bonds given to persons in this state.
 1405         Section 36. Paragraph (c) of subsection (6) of section
 1406  627.351, Florida Statutes, is amended to read:
 1407         627.351 Insurance risk apportionment plans.—
 1408         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
 1409         (c) The corporation’s plan of operation:
 1410         1. Must provide for adoption of residential property and
 1411  casualty insurance policy forms and commercial residential and
 1412  nonresidential property insurance forms, which must be approved
 1413  by the office before use. The corporation shall adopt the
 1414  following policy forms:
 1415         a. Standard personal lines policy forms that are
 1416  comprehensive multiperil policies providing full coverage of a
 1417  residential property equivalent to the coverage provided in the
 1418  private insurance market under an HO-3, HO-4, or HO-6 policy.
 1419         b. Basic personal lines policy forms that are policies
 1420  similar to an HO-8 policy or a dwelling fire policy that provide
 1421  coverage meeting the requirements of the secondary mortgage
 1422  market, but which is more limited than the coverage under a
 1423  standard policy.
 1424         c. Commercial lines residential and nonresidential policy
 1425  forms that are generally similar to the basic perils of full
 1426  coverage obtainable for commercial residential structures and
 1427  commercial nonresidential structures in the admitted voluntary
 1428  market.
 1429         d. Personal lines and commercial lines residential property
 1430  insurance forms that cover the peril of wind only. The forms are
 1431  applicable only to residential properties located in areas
 1432  eligible for coverage under the coastal account referred to in
 1433  sub-subparagraph (b)2.a.
 1434         e. Commercial lines nonresidential property insurance forms
 1435  that cover the peril of wind only. The forms are applicable only
 1436  to nonresidential properties located in areas eligible for
 1437  coverage under the coastal account referred to in sub
 1438  subparagraph (b)2.a.
 1439         f. The corporation may adopt variations of the policy forms
 1440  listed in sub-subparagraphs a.-e. which contain more restrictive
 1441  coverage.
 1442         g. Effective January 1, 2013, the corporation shall offer a
 1443  basic personal lines policy similar to an HO-8 policy with
 1444  dwelling repair based on common construction materials and
 1445  methods.
 1446         2. Must provide that the corporation adopt a program in
 1447  which the corporation and authorized insurers enter into quota
 1448  share primary insurance agreements for hurricane coverage, as
 1449  defined in s. 627.4025(2)(a), for eligible risks, and adopt
 1450  property insurance forms for eligible risks which cover the
 1451  peril of wind only.
 1452         a. As used in this subsection, the term:
 1453         (I) “Quota share primary insurance” means an arrangement in
 1454  which the primary hurricane coverage of an eligible risk is
 1455  provided in specified percentages by the corporation and an
 1456  authorized insurer. The corporation and authorized insurer are
 1457  each solely responsible for a specified percentage of hurricane
 1458  coverage of an eligible risk as set forth in a quota share
 1459  primary insurance agreement between the corporation and an
 1460  authorized insurer and the insurance contract. The
 1461  responsibility of the corporation or authorized insurer to pay
 1462  its specified percentage of hurricane losses of an eligible
 1463  risk, as set forth in the agreement, may not be altered by the
 1464  inability of the other party to pay its specified percentage of
 1465  losses. Eligible risks that are provided hurricane coverage
 1466  through a quota share primary insurance arrangement must be
 1467  provided policy forms that set forth the obligations of the
 1468  corporation and authorized insurer under the arrangement,
 1469  clearly specify the percentages of quota share primary insurance
 1470  provided by the corporation and authorized insurer, and
 1471  conspicuously and clearly state that the authorized insurer and
 1472  the corporation may not be held responsible beyond their
 1473  specified percentage of coverage of hurricane losses.
 1474         (II) “Eligible risks” means personal lines residential and
 1475  commercial lines residential risks that meet the underwriting
 1476  criteria of the corporation and are located in areas that were
 1477  eligible for coverage by the Florida Windstorm Underwriting
 1478  Association on January 1, 2002.
 1479         b. The corporation may enter into quota share primary
 1480  insurance agreements with authorized insurers at corporation
 1481  coverage levels of 90 percent and 50 percent.
 1482         c. If the corporation determines that additional coverage
 1483  levels are necessary to maximize participation in quota share
 1484  primary insurance agreements by authorized insurers, the
 1485  corporation may establish additional coverage levels. However,
 1486  the corporation’s quota share primary insurance coverage level
 1487  may not exceed 90 percent.
 1488         d. Any quota share primary insurance agreement entered into
 1489  between an authorized insurer and the corporation must provide
 1490  for a uniform specified percentage of coverage of hurricane
 1491  losses, by county or territory as set forth by the corporation
 1492  board, for all eligible risks of the authorized insurer covered
 1493  under the agreement.
 1494         e. Any quota share primary insurance agreement entered into
 1495  between an authorized insurer and the corporation is subject to
 1496  review and approval by the office. However, such agreement shall
 1497  be authorized only as to insurance contracts entered into
 1498  between an authorized insurer and an insured who is already
 1499  insured by the corporation for wind coverage.
 1500         f. For all eligible risks covered under quota share primary
 1501  insurance agreements, the exposure and coverage levels for both
 1502  the corporation and authorized insurers shall be reported by the
 1503  corporation to the Florida Hurricane Catastrophe Fund. For all
 1504  policies of eligible risks covered under such agreements, the
 1505  corporation and the authorized insurer must maintain complete
 1506  and accurate records for the purpose of exposure and loss
 1507  reimbursement audits as required by fund rules. The corporation
 1508  and the authorized insurer shall each maintain duplicate copies
 1509  of policy declaration pages and supporting claims documents.
 1510         g. The corporation board shall establish in its plan of
 1511  operation standards for quota share agreements which ensure that
 1512  there is no discriminatory application among insurers as to the
 1513  terms of the agreements, pricing of the agreements, incentive
 1514  provisions if any, and consideration paid for servicing policies
 1515  or adjusting claims.
 1516         h. The quota share primary insurance agreement between the
 1517  corporation and an authorized insurer must set forth the
 1518  specific terms under which coverage is provided, including, but
 1519  not limited to, the sale and servicing of policies issued under
 1520  the agreement by the insurance agent of the authorized insurer
 1521  producing the business, the reporting of information concerning
 1522  eligible risks, the payment of premium to the corporation, and
 1523  arrangements for the adjustment and payment of hurricane claims
 1524  incurred on eligible risks by the claims adjuster and personnel
 1525  of the authorized insurer. Entering into a quota sharing
 1526  insurance agreement between the corporation and an authorized
 1527  insurer is voluntary and at the discretion of the authorized
 1528  insurer.
 1529         3. May provide that the corporation may employ or otherwise
 1530  contract with individuals or other entities to provide
 1531  administrative or professional services that may be appropriate
 1532  to effectuate the plan. The corporation may borrow funds by
 1533  issuing bonds or by incurring other indebtedness, and shall have
 1534  other powers reasonably necessary to effectuate the requirements
 1535  of this subsection, including, without limitation, the power to
 1536  issue bonds and incur other indebtedness in order to refinance
 1537  outstanding bonds or other indebtedness. The corporation may
 1538  seek judicial validation of its bonds or other indebtedness
 1539  under chapter 75. The corporation may issue bonds or incur other
 1540  indebtedness, or have bonds issued on its behalf by a unit of
 1541  local government pursuant to subparagraph (q)2. in the absence
 1542  of a hurricane or other weather-related event, upon a
 1543  determination by the corporation, subject to approval by the
 1544  office, that such action would enable it to efficiently meet the
 1545  financial obligations of the corporation and that such
 1546  financings are reasonably necessary to effectuate the
 1547  requirements of this subsection. The corporation may take all
 1548  actions needed to facilitate tax-free status for such bonds or
 1549  indebtedness, including formation of trusts or other affiliated
 1550  entities. The corporation may pledge assessments, projected
 1551  recoveries from the Florida Hurricane Catastrophe Fund, other
 1552  reinsurance recoverables, policyholder surcharges and other
 1553  surcharges, and other funds available to the corporation as
 1554  security for bonds or other indebtedness. In recognition of s.
 1555  10, Art. I of the State Constitution, prohibiting the impairment
 1556  of obligations of contracts, it is the intent of the Legislature
 1557  that no action be taken whose purpose is to impair any bond
 1558  indenture or financing agreement or any revenue source committed
 1559  by contract to such bond or other indebtedness.
 1560         4. Must require that the corporation operate subject to the
 1561  supervision and approval of a board of governors consisting of
 1562  nine individuals who are residents of this state and who are
 1563  from different geographical areas of the state, one of whom is
 1564  appointed by the Governor and serves solely to advocate on
 1565  behalf of the consumer. The appointment of a consumer
 1566  representative by the Governor is deemed to be within the scope
 1567  of the exemption provided in s. 112.313(7)(b) and is in addition
 1568  to the appointments authorized under sub-subparagraph a.
 1569         a. The Governor, the Chief Financial Officer, the President
 1570  of the Senate, and the Speaker of the House of Representatives
 1571  shall each appoint two members of the board. At least one of the
 1572  two members appointed by each appointing officer must have
 1573  demonstrated expertise in insurance and be deemed to be within
 1574  the scope of the exemption provided in s. 112.313(7)(b). The
 1575  Chief Financial Officer shall designate one of the appointees as
 1576  chair. All board members serve at the pleasure of the appointing
 1577  officer. All members of the board are subject to removal at will
 1578  by the officers who appointed them. All board members, including
 1579  the chair, must be appointed to serve for 3-year terms beginning
 1580  annually on a date designated by the plan. However, for the
 1581  first term beginning on or after July 1, 2009, each appointing
 1582  officer shall appoint one member of the board for a 2-year term
 1583  and one member for a 3-year term. A board vacancy shall be
 1584  filled for the unexpired term by the appointing officer. The
 1585  Chief Financial Officer shall appoint a technical advisory group
 1586  to provide information and advice to the board in connection
 1587  with the board’s duties under this subsection. The executive
 1588  director and senior managers of the corporation shall be engaged
 1589  by the board and serve at the pleasure of the board. Any
 1590  executive director appointed on or after July 1, 2006, is
 1591  subject to confirmation by the Senate. The executive director is
 1592  responsible for employing other staff as the corporation may
 1593  require, subject to review and concurrence by the board.
 1594         b. The board shall create a Market Accountability Advisory
 1595  Committee to assist the corporation in developing awareness of
 1596  its rates and its customer and agent service levels in
 1597  relationship to the voluntary market insurers writing similar
 1598  coverage.
 1599         (I) The members of the advisory committee consist of the
 1600  following 11 persons, one of whom must be elected chair by the
 1601  members of the committee: four representatives, one appointed by
 1602  the Florida Association of Insurance Agents, one by the Florida
 1603  Association of Insurance and Financial Advisors, one by the
 1604  Professional Insurance Agents of Florida, and one by the Latin
 1605  American Association of Insurance Agencies; three
 1606  representatives appointed by the insurers with the three highest
 1607  voluntary market share of residential property insurance
 1608  business in the state; one representative from the Office of
 1609  Insurance Regulation; one consumer appointed by the board who is
 1610  insured by the corporation at the time of appointment to the
 1611  committee; one representative appointed by the Florida
 1612  Association of Realtors; and one representative appointed by the
 1613  Florida Bankers Association. All members shall be appointed to
 1614  3-year terms and may serve for consecutive terms.
 1615         (II) The committee shall report to the corporation at each
 1616  board meeting on insurance market issues which may include rates
 1617  and rate competition with the voluntary market; service,
 1618  including policy issuance, claims processing, and general
 1619  responsiveness to policyholders, applicants, and agents; and
 1620  matters relating to depopulation.
 1621         5. Must provide a procedure for determining the eligibility
 1622  of a risk for coverage, as follows:
 1623         a. Subject to s. 627.3517, with respect to personal lines
 1624  residential risks, if the risk is offered coverage from an
 1625  authorized insurer at the insurer’s approved rate under a
 1626  standard policy including wind coverage or, if consistent with
 1627  the insurer’s underwriting rules as filed with the office, a
 1628  basic policy including wind coverage, for a new application to
 1629  the corporation for coverage, the risk is not eligible for any
 1630  policy issued by the corporation unless the premium for coverage
 1631  from the authorized insurer is more than 15 percent greater than
 1632  the premium for comparable coverage from the corporation.
 1633  Whenever an offer of coverage for a personal lines residential
 1634  risk is received for a policyholder of the corporation at
 1635  renewal from an authorized insurer, if the offer is equal to or
 1636  less than the corporation’s renewal premium for comparable
 1637  coverage, the risk is not eligible for coverage with the
 1638  corporation. If the risk is not able to obtain such offer, the
 1639  risk is eligible for a standard policy including wind coverage
 1640  or a basic policy including wind coverage issued by the
 1641  corporation; however, if the risk could not be insured under a
 1642  standard policy including wind coverage regardless of market
 1643  conditions, the risk is eligible for a basic policy including
 1644  wind coverage unless rejected under subparagraph 8. However, a
 1645  policyholder removed from the corporation through an assumption
 1646  agreement remains eligible for coverage from the corporation
 1647  until the end of the assumption period. The corporation shall
 1648  determine the type of policy to be provided on the basis of
 1649  objective standards specified in the underwriting manual and
 1650  based on generally accepted underwriting practices.
 1651         (I) If the risk accepts an offer of coverage through the
 1652  market assistance plan or through a mechanism established by the
 1653  corporation other than a plan established by s. 627.3518, before
 1654  a policy is issued to the risk by the corporation or during the
 1655  first 30 days of coverage by the corporation, and the producing
 1656  agent who submitted the application to the plan or to the
 1657  corporation is not currently appointed by the insurer, the
 1658  insurer shall:
 1659         (A) Pay to the producing agent of record of the policy for
 1660  the first year, an amount that is the greater of the insurer’s
 1661  usual and customary commission for the type of policy written or
 1662  a fee equal to the usual and customary commission of the
 1663  corporation; or
 1664         (B) Offer to allow the producing agent of record of the
 1665  policy to continue servicing the policy for at least 1 year and
 1666  offer to pay the agent the greater of the insurer’s or the
 1667  corporation’s usual and customary commission for the type of
 1668  policy written.
 1669  
 1670  If the producing agent is unwilling or unable to accept
 1671  appointment, the new insurer shall pay the agent in accordance
 1672  with sub-sub-sub-subparagraph (A).
 1673         (II) If the corporation enters into a contractual agreement
 1674  for a take-out plan, the producing agent of record of the
 1675  corporation policy is entitled to retain any unearned commission
 1676  on the policy, and the insurer shall:
 1677         (A) Pay to the producing agent of record, for the first
 1678  year, an amount that is the greater of the insurer’s usual and
 1679  customary commission for the type of policy written or a fee
 1680  equal to the usual and customary commission of the corporation;
 1681  or
 1682         (B) Offer to allow the producing agent of record to
 1683  continue servicing the policy for at least 1 year and offer to
 1684  pay the agent the greater of the insurer’s or the corporation’s
 1685  usual and customary commission for the type of policy written.
 1686  
 1687  If the producing agent is unwilling or unable to accept
 1688  appointment, the new insurer shall pay the agent in accordance
 1689  with sub-sub-sub-subparagraph (A).
 1690         b. With respect to commercial lines residential risks, for
 1691  a new application to the corporation for coverage, if the risk
 1692  is offered coverage under a policy including wind coverage from
 1693  an authorized insurer at its approved rate, the risk is not
 1694  eligible for a policy issued by the corporation unless the
 1695  premium for coverage from the authorized insurer is more than 15
 1696  percent greater than the premium for comparable coverage from
 1697  the corporation. Whenever an offer of coverage for a commercial
 1698  lines residential risk is received for a policyholder of the
 1699  corporation at renewal from an authorized insurer, if the offer
 1700  is equal to or less than the corporation’s renewal premium for
 1701  comparable coverage, the risk is not eligible for coverage with
 1702  the corporation. If the risk is not able to obtain any such
 1703  offer, the risk is eligible for a policy including wind coverage
 1704  issued by the corporation. However, a policyholder removed from
 1705  the corporation through an assumption agreement remains eligible
 1706  for coverage from the corporation until the end of the
 1707  assumption period.
 1708         (I) If the risk accepts an offer of coverage through the
 1709  market assistance plan or through a mechanism established by the
 1710  corporation other than a plan established by s. 627.3518, before
 1711  a policy is issued to the risk by the corporation or during the
 1712  first 30 days of coverage by the corporation, and the producing
 1713  agent who submitted the application to the plan or the
 1714  corporation is not currently appointed by the insurer, the
 1715  insurer shall:
 1716         (A) Pay to the producing agent of record of the policy, for
 1717  the first year, an amount that is the greater of the insurer’s
 1718  usual and customary commission for the type of policy written or
 1719  a fee equal to the usual and customary commission of the
 1720  corporation; or
 1721         (B) Offer to allow the producing agent of record of the
 1722  policy to continue servicing the policy for at least 1 year and
 1723  offer to pay the agent the greater of the insurer’s or the
 1724  corporation’s usual and customary commission for the type of
 1725  policy written.
 1726  
 1727  If the producing agent is unwilling or unable to accept
 1728  appointment, the new insurer shall pay the agent in accordance
 1729  with sub-sub-sub-subparagraph (A).
 1730         (II) If the corporation enters into a contractual agreement
 1731  for a take-out plan, the producing agent of record of the
 1732  corporation policy is entitled to retain any unearned commission
 1733  on the policy, and the insurer shall:
 1734         (A) Pay to the producing agent of record, for the first
 1735  year, an amount that is the greater of the insurer’s usual and
 1736  customary commission for the type of policy written or a fee
 1737  equal to the usual and customary commission of the corporation;
 1738  or
 1739         (B) Offer to allow the producing agent of record to
 1740  continue servicing the policy for at least 1 year and offer to
 1741  pay the agent the greater of the insurer’s or the corporation’s
 1742  usual and customary commission for the type of policy written.
 1743  
 1744  If the producing agent is unwilling or unable to accept
 1745  appointment, the new insurer shall pay the agent in accordance
 1746  with sub-sub-sub-subparagraph (A).
 1747         c. For purposes of determining comparable coverage under
 1748  sub-subparagraphs a. and b., the comparison must be based on
 1749  those forms and coverages that are reasonably comparable. The
 1750  corporation may rely on a determination of comparable coverage
 1751  and premium made by the producing agent who submits the
 1752  application to the corporation, made in the agent’s capacity as
 1753  the corporation’s agent. A comparison may be made solely of the
 1754  premium with respect to the main building or structure only on
 1755  the following basis: the same coverage A or other building
 1756  limits; the same percentage hurricane deductible that applies on
 1757  an annual basis or that applies to each hurricane for commercial
 1758  residential property; the same percentage of ordinance and law
 1759  coverage, if the same limit is offered by both the corporation
 1760  and the authorized insurer; the same mitigation credits, to the
 1761  extent the same types of credits are offered both by the
 1762  corporation and the authorized insurer; the same method for loss
 1763  payment, such as replacement cost or actual cash value, if the
 1764  same method is offered both by the corporation and the
 1765  authorized insurer in accordance with underwriting rules; and
 1766  any other form or coverage that is reasonably comparable as
 1767  determined by the board. If an application is submitted to the
 1768  corporation for wind-only coverage in the coastal account, the
 1769  premium for the corporation’s wind-only policy plus the premium
 1770  for the ex-wind policy that is offered by an authorized insurer
 1771  to the applicant must be compared to the premium for multiperil
 1772  coverage offered by an authorized insurer, subject to the
 1773  standards for comparison specified in this subparagraph. If the
 1774  corporation or the applicant requests from the authorized
 1775  insurer a breakdown of the premium of the offer by types of
 1776  coverage so that a comparison may be made by the corporation or
 1777  its agent and the authorized insurer refuses or is unable to
 1778  provide such information, the corporation may treat the offer as
 1779  not being an offer of coverage from an authorized insurer at the
 1780  insurer’s approved rate.
 1781         6. Must include rules for classifications of risks and
 1782  rates.
 1783         7. Must provide that if premium and investment income for
 1784  an account attributable to a particular calendar year are in
 1785  excess of projected losses and expenses for the account
 1786  attributable to that year, such excess shall be held in surplus
 1787  in the account. Such surplus must be available to defray
 1788  deficits in that account as to future years and used for that
 1789  purpose before assessing assessable insurers and assessable
 1790  insureds as to any calendar year.
 1791         8. Must provide objective criteria and procedures to be
 1792  uniformly applied to all applicants in determining whether an
 1793  individual risk is so hazardous as to be uninsurable. In making
 1794  this determination and in establishing the criteria and
 1795  procedures, the following must be considered:
 1796         a. Whether the likelihood of a loss for the individual risk
 1797  is substantially higher than for other risks of the same class;
 1798  and
 1799         b. Whether the uncertainty associated with the individual
 1800  risk is such that an appropriate premium cannot be determined.
 1801  
 1802  The acceptance or rejection of a risk by the corporation shall
 1803  be construed as the private placement of insurance, and the
 1804  provisions of chapter 120 do not apply.
 1805         9. Must provide that the corporation make its best efforts
 1806  to procure catastrophe reinsurance at reasonable rates, to cover
 1807  its projected 100-year probable maximum loss as determined by
 1808  the board of governors.
 1809         10. The policies issued by the corporation must provide
 1810  that if the corporation or the market assistance plan obtains an
 1811  offer from an authorized insurer to cover the risk at its
 1812  approved rates, the risk is no longer eligible for renewal
 1813  through the corporation, except as otherwise provided in this
 1814  subsection.
 1815         11. Corporation policies and applications must include a
 1816  notice that the corporation policy could, under this section, be
 1817  replaced with a policy issued by an authorized insurer which
 1818  does not provide coverage identical to the coverage provided by
 1819  the corporation. The notice must also specify that acceptance of
 1820  corporation coverage creates a conclusive presumption that the
 1821  applicant or policyholder is aware of this potential.
 1822         12. May establish, subject to approval by the office,
 1823  different eligibility requirements and operational procedures
 1824  for any line or type of coverage for any specified county or
 1825  area if the board determines that such changes are justified due
 1826  to the voluntary market being sufficiently stable and
 1827  competitive in such area or for such line or type of coverage
 1828  and that consumers who, in good faith, are unable to obtain
 1829  insurance through the voluntary market through ordinary methods
 1830  continue to have access to coverage from the corporation. If
 1831  coverage is sought in connection with a real property transfer,
 1832  the requirements and procedures may not provide an effective
 1833  date of coverage later than the date of the closing of the
 1834  transfer as established by the transferor, the transferee, and,
 1835  if applicable, the lender.
 1836         13. Must provide that, with respect to the coastal account,
 1837  any assessable insurer with a surplus as to policyholders of $25
 1838  million or less writing 25 percent or more of its total
 1839  countrywide property insurance premiums in this state may
 1840  petition the office, within the first 90 days of each calendar
 1841  year, to qualify as a limited apportionment company. A regular
 1842  assessment levied by the corporation on a limited apportionment
 1843  company for a deficit incurred by the corporation for the
 1844  coastal account may be paid to the corporation on a monthly
 1845  basis as the assessments are collected by the limited
 1846  apportionment company from its insureds, but a limited
 1847  apportionment company must begin collecting the regular
 1848  assessments not later than 90 days after the regular assessments
 1849  are levied by the corporation, and the regular assessments must
 1850  be paid in full within 15 months after being levied by the
 1851  corporation. A limited apportionment company shall collect from
 1852  its policyholders any emergency assessment imposed under sub
 1853  subparagraph (b)3.d. The plan must provide that, if the office
 1854  determines that any regular assessment will result in an
 1855  impairment of the surplus of a limited apportionment company,
 1856  the office may direct that all or part of such assessment be
 1857  deferred as provided in subparagraph (q)4. However, an emergency
 1858  assessment to be collected from policyholders under sub
 1859  subparagraph (b)3.d. may not be limited or deferred.
 1860         14. Must provide that the corporation appoint as its
 1861  licensed agents only those agents who throughout such
 1862  appointments also hold an appointment as defined in s. 626.015
 1863  s. 626.015(3) by an insurer who is authorized to write and is
 1864  actually writing or renewing personal lines residential property
 1865  coverage, commercial residential property coverage, or
 1866  commercial nonresidential property coverage within the state.
 1867         15. Must provide a premium payment plan option to its
 1868  policyholders which, at a minimum, allows for quarterly and
 1869  semiannual payment of premiums. A monthly payment plan may, but
 1870  is not required to, be offered.
 1871         16. Must limit coverage on mobile homes or manufactured
 1872  homes built before 1994 to actual cash value of the dwelling
 1873  rather than replacement costs of the dwelling.
 1874         17. Must provide coverage for manufactured or mobile home
 1875  dwellings. Such coverage must also include the following
 1876  attached structures:
 1877         a. Screened enclosures that are aluminum framed or screened
 1878  enclosures that are not covered by the same or substantially the
 1879  same materials as those of the primary dwelling;
 1880         b. Carports that are aluminum or carports that are not
 1881  covered by the same or substantially the same materials as those
 1882  of the primary dwelling; and
 1883         c. Patios that have a roof covering that is constructed of
 1884  materials that are not the same or substantially the same
 1885  materials as those of the primary dwelling.
 1886  
 1887  The corporation shall make available a policy for mobile homes
 1888  or manufactured homes for a minimum insured value of at least
 1889  $3,000.
 1890         18. May provide such limits of coverage as the board
 1891  determines, consistent with the requirements of this subsection.
 1892         19. May require commercial property to meet specified
 1893  hurricane mitigation construction features as a condition of
 1894  eligibility for coverage.
 1895         20. Must provide that new or renewal policies issued by the
 1896  corporation on or after January 1, 2012, which cover sinkhole
 1897  loss do not include coverage for any loss to appurtenant
 1898  structures, driveways, sidewalks, decks, or patios that are
 1899  directly or indirectly caused by sinkhole activity. The
 1900  corporation shall exclude such coverage using a notice of
 1901  coverage change, which may be included with the policy renewal,
 1902  and not by issuance of a notice of nonrenewal of the excluded
 1903  coverage upon renewal of the current policy.
 1904         21. As of January 1, 2012, must require that the agent
 1905  obtain from an applicant for coverage from the corporation an
 1906  acknowledgment signed by the applicant, which includes, at a
 1907  minimum, the following statement:
 1908  
 1909                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1910                      AND ASSESSMENT LIABILITY:                    
 1911  
 1912         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1913  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1914  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1915  MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
 1916  PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
 1917  POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
 1918  OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
 1919  LEGISLATURE.
 1920         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1921  SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
 1922  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1923  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1924  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1925  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1926  ARE REGULATED AND APPROVED BY THE STATE.
 1927         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1928  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1929  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1930  FLORIDA LEGISLATURE.
 1931         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1932  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1933  STATE OF FLORIDA.
 1934  
 1935         a. The corporation shall maintain, in electronic format or
 1936  otherwise, a copy of the applicant’s signed acknowledgment and
 1937  provide a copy of the statement to the policyholder as part of
 1938  the first renewal after the effective date of this subparagraph.
 1939         b. The signed acknowledgment form creates a conclusive
 1940  presumption that the policyholder understood and accepted his or
 1941  her potential surcharge and assessment liability as a
 1942  policyholder of the corporation.
 1943         Section 37. This act shall take effect July 1, 2017.