Senate Bill sb1970

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    Florida Senate - 2001                                  SB 1970

    By Senators Latvala and Garcia





    19-331C-01

  1                      A bill to be entitled

  2         An act relating to governmental reorganization;

  3         creating s. 17.001, F.S.; establishing the

  4         Office of the Chief Financial Officer; creating

  5         s. 20.121, F.S.; creating the Department of

  6         Financial Services; providing for the Office of

  7         the Commissioner of Insurance; providing for

  8         the Office of the Commissioner of Financial

  9         Institutions; providing for the Office of the

10         Commissioner of Securities and Finance;

11         providing for the Office of the Commissioner of

12         the Treasury; establishing the manner of

13         appointment; providing qualifications;

14         transferring the Department of Banking and

15         Finance and the Department of Insurance to the

16         Department of Financial Services; repealing s.

17         20.12, F.S.; abolishing the Department of

18         Banking and Finance; repealing s. 20.13, F.S.;

19         abolishing the Department of Insurance;

20         requesting the Division of Statutory Revision

21         to prepare draft legislation; establishing the

22         Financial Services Transition Task Force;

23         providing membership; establishing duties;

24         providing an effective date.

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26  Be It Enacted by the Legislature of the State of Florida:

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28         Section 1.  Effective January 7, 2003, section 17.001,

29  Florida Statutes, is created to read:

30         17.001  Financial Officer.--As provided in s. 4(c),

31  Art. IV of the State Constitution, the Chief Financial Officer

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    Florida Senate - 2001                                  SB 1970
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  1  is the chief fiscal officer of the state and is responsible

  2  for settling and approving accounts against the state and

  3  keeping all state funds and securities.

  4         Section 2.  Effective January 7, 2003, section 20.121,

  5  Florida Statutes, is created to read:

  6         20.121  Department of Financial Services.--There is

  7  created a Department of Financial Services.

  8         (1)  The head of the Department of Financial Services

  9  is the Chief Financial Officer.

10         (2)(a)  The Division of Administration is created

11  within the Office of the Chief Financial Officer. The division

12  is headed by a director who is appointed by and serves at the

13  pleasure of the Chief Financial Officer. A Bureau of Financial

14  and Support Services is created within the division.

15         (b)  The Division of Financial Investigations is

16  created within the Office of the Chief Financial Officer. The

17  division is headed by a director who is appointed by and

18  serves at the pleasure of the Chief Financial Officer.

19         (3)  Notwithstanding the requirements of s. 20.04 and

20  except as otherwise provided in this section, the principal

21  policy and program development unit of the department is the

22  "office." Each office is headed by a commissioner who is

23  appointed by and serves at the pleasure of the Chief Financial

24  Officer. Each commissioner shall perform such duties as are

25  specified in this section and such other duties as are

26  assigned by the Chief Financial Officer. The principal unit of

27  each office is the "division." Each division is headed by a

28  "director."

29         (4)(a)  The Office of the Commissioner of Insurance is

30  established in the Department of Financial Services. The

31  office shall be headed by the Commissioner of Insurance. Prior

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    Florida Senate - 2001                                  SB 1970
    19-331C-01




  1  to appointment as commissioner, the Commissioner of Insurance

  2  must have had, within the previous 10 years, at least 5 years

  3  of experience as a senior officer of an insurer, as defined in

  4  s. 624.03, or insurance agency, as defined in s. 626.094, or

  5  as an examiner or other senior employee of a state or federal

  6  agency having regulatory responsibility over insurers or

  7  insurance agencies.

  8         (b)  The Office of the Commissioner of Insurance shall

  9  consist of the following divisions:

10         1.  Division of Insurance Agents and Agencies;

11         2.  Division of Insurance Consumer Services;

12         3.  Division of Insurer Services;

13         4.  Division of Rehabilitation and Liquidation;

14         5.  Division of Risk Management; and

15         6.  Division of State Fire Marshal.

16         7.  Division of Workers' Compensation.

17         (5)(a)  The Office of the Commissioner of Financial

18  Institutions is established in the Department of Financial

19  Services. The office shall be headed by the Commissioner of

20  Financial Institutions. Prior to appointment, the Commissioner

21  of Financial Institutions must have had, within the previous

22  10 years, at least 5 years of experience as a senior officer

23  of a financial institution, as defined in s. 655.005, or as an

24  examiner or other senior employee of a state or federal agency

25  having regulatory responsibility over financial institutions.

26         (b)  The Office of the Commissioner of Financial

27  Institutions shall consist of the following divisions:

28         1.  Division of Banking; and

29         2.  Division of Credit Unions.

30         (6)  The Office of the Commissioner of Securities and

31  Finance is established within the Department of Financial

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  1  Services. The office shall be headed by the Commissioner of

  2  Securities and Finance. Prior to appointment, the Commissioner

  3  of Securities and Finance must have had, within the previous

  4  10 years, at least 5 years of experience as a senior officer

  5  of a securities or finance company or as an examiner or other

  6  senior employee of a state or federal agency having regulatory

  7  responsibility over securities or finance companies.

  8         (7)(a)  The Office of the Commissioner of the Treasury

  9  is established in the Department of Financial Services. The

10  office shall be headed by the Commissioner of the Treasury.

11  The Commissioner of the Treasury must possess sufficient

12  education, business experience, and managerial ability to

13  effectively perform his or her duties.

14         (b)  The Office of the Commissioner of the Treasury

15  shall consist of the following divisions:

16         1.  Division of Accounting and Auditing, which is

17  responsible for, without limitation, unclaimed property;

18         2.  Division of Information Services; and

19         3.  Division of Treasury. A section of Government

20  Employee Deferred Compensation is created within the Division

21  of Treasury which shall administer the Government Employees

22  Deferred Compensation Plan established under s. 112.215 for

23  state employees.

24         Section 3.  Effective January 7, 2003, the Department

25  of Banking and Finance and the Department of Insurance are

26  transferred by a type two transfer, as defined in section

27  20.06, Florida Statutes, to the Department of Financial

28  Services.

29         Section 4.  Sections 20.12 and 20.13, Florida Statutes,

30  are repealed. This section takes effect January 7, 2003.

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  1         Section 5.  By January 31, 2002, the Division of

  2  Statutory Revision of the Office of Legislative Services shall

  3  prepare and submit to the President of the Senate and the

  4  Speaker of the House of Representatives substantive

  5  legislation to conform the Florida Statutes to the provisions

  6  of this act. The legislation shall not be drafted as a

  7  reviser's bill. The draft shall include provisions:

  8         (1)  Changing the term "Comptroller" or "Treasurer" to

  9  "Chief Financial Officer" with respect to functions of the

10  Chief Financial Officer where appropriate;

11         (2)  Changing references to the "Department of Banking

12  and Finance" or the "Department of Insurance" to the

13  "Department of Financial Services" where appropriate; and

14         (3)  Otherwise conforming the statutes to the abolition

15  of the offices of Comptroller and Treasurer, the creation of

16  the Office of the Chief Financial Officer, the abolition of

17  the Department of Banking and Finance and the Department of

18  Insurance, and the creation of the Department of Financial

19  Services.

20         Section 6.  (1)  The Financial Services Transition Task

21  Force is established. The task force shall be composed of:

22         (a)  One consumer representative appointed by the

23  Governor;

24         (b)  Two members appointed by the President of the

25  Senate;

26         (c)  Two members appointed by the Speaker of the House

27  of Representatives;

28         (d)  Two members appointed by the Comptroller; and

29         (e)  Two members appointed by the Insurance

30  Commissioner and Treasurer.

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    Florida Senate - 2001                                  SB 1970
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  1         (2)  The organizational meeting of the task force must

  2  be held by August 1, 2001. The members of the task force shall

  3  elect a chair by majority vote. Members of the task force

  4  shall serve without compensation, but shall be reimbursed for

  5  per diem and travel expenses as provided in section 112.061,

  6  Florida Statutes.

  7         (3)  The purpose of the task force is to review the

  8  Florida Statutes and state rules and:

  9         (a)  Recommend amendments to statutes and rules made

10  necessary by the changes made by this act.

11         (b)  Identify any organizational problems involving,

12  without limitation, communication among divisions, technical

13  assistance, and other services and recommend solutions to the

14  identified problems.

15         (c)  Identify any issues related to technology,

16  including the coordination or incompatibility of technology

17  systems, and suggest solutions to the identified problems.

18         (d)  Recommend methods to improve departmental

19  accountability, including, but not limited to, modification of

20  performance measures.

21         (4)  The task force may procure information and

22  assistance from any officer or agency of the state or any

23  subdivision thereof. All such officials and agencies shall

24  give the task force all relevant information and assistance

25  with respect to any matter within their knowledge or control.

26         (5)  The task force shall submit a final report to the

27  Governor, the President of the Senate, and the Speaker of the

28  House of Representatives by February 1, 2002.

29         (6)  The task force terminates upon submission of its

30  final report.

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    Florida Senate - 2001                                  SB 1970
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  1         Section 7.  Except as otherwise provided in this act,

  2  this act shall take effect July 1, 2001.

  3

  4            *****************************************

  5                          SENATE SUMMARY

  6    Creates the Department of Financial Services under the
      state's Chief Financial Officer and transfers to it, with
  7    future effect upon the creation of the new position, the
      powers, duties, functions, and assets of the Department
  8    of Banking and Finance and the Department of Insurance.
      Creates the Financial Services Transition Task Force to
  9    provide guidance with respect to effecting the transfers.
      (See bill for details.)
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