CODING: Words stricken are deletions; words underlined are additions.



                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB's 662 & 232

    Amendment No. ___   Barcode 090210

                            CHAMBER ACTION
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11  Senator Latvala moved the following amendment:

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13         Senate Amendment 

14         On page 8, line 17, through

15            page 12, line 22, delete those lines

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17  and insert:

18         Section 1.  Section 17.001, Florida Statutes, is

19  created to read:

20         17.001  Financial Officer.--As provided in s. 4(c),

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

22  is the chief fiscal officer of the state and is responsible

23  for settling and approving accounts against the state and

24  keeping all state funds and securities.

25         Section 2.  Section 20.121, Florida Statutes, is

26  created to read:

27         20.121  Department of Financial Services.--There is

28  created a Department of Financial Services.

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

30  is the Chief Financial Officer.

31         (2)  The Department of Financial Services shall consist

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB's 662 & 232

    Amendment No. ___   Barcode 090210





  1  of the following divisions:

  2         (a)  Division of Treasury.

  3         (b)  Division of Consumer Services.

  4         (c)  Division of Insurance. Division responsibilities,

  5  as provided in the Florida Insurance Code, include issuing

  6  certificates of authority to insurers, regulatory oversight of

  7  insurer solvency, approving policy forms and rates, performing

  8  market conduct examinations, and enforcing statutes related to

  9  insurers.

10         (d)  Division of Financial Institutions and Securities,

11  which shall consist of the following bureaus:

12         1.  Bureau of Banking;

13         2.  Bureau of Securities;

14         3.  Bureau of Credit Unions and Finance Entities; and

15         4.  Bureau of Regulation.

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17  Division responsibilities include licensure, examination, and

18  regulation of state-chartered financial institutions, as

19  provided in chapters 655, 657, 658, 660, 663, 665, and 667;

20  enforcing chapter 517, the Florida Securities and Investor

21  Protection Act; chapter 494, relating to mortgage brokerage

22  and mortgage lending; chapter 516, the Consumer Finance Act;

23  chapter 520, relating to retail installment sales; those

24  sections in chapter 559 relating to collection agencies;

25  chapter 560, the Money Transmitters' Code; those portions of

26  chapter 497 related to the department's responsibilities with

27  respect to cemeteries and preneed services; and certifying and

28  reviewing certified capital companies, as provided in s.

29  288.99.

30         (e)  Division of Risk Management.

31         (f)  Division of State Fire Marshal.

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB's 662 & 232

    Amendment No. ___   Barcode 090210





  1         (g)  Division of Insurance Fraud.

  2         (h)  Division of Rehabilitation and Liquidation.

  3         (i)  Division of Information Systems.

  4         (j)  Division of Legal Services.

  5         (k)  Division of Financial Investigations.

  6         (l)  Division of Accounting and Auditing.

  7         (m)  Division of Insurance Agent and Agency Services.

  8         (n)  Division of Administration.

  9         (o)  The Division of Workers' Compensation.

10         (3)  The Division of Financial Institutions and

11  Securities and the Division of Insurance shall each be headed

12  by a "director." The directors of these divisions shall act as

13  agency heads for purposes of chapter 120 and shall be

14  responsible for final agency action with regard to the

15  implementation and enforcement of statutes and rules under the

16  regulatory authority delegated to their divisions and

17  rulemaking under s. 120.54. The Director of the Division of

18  Financial Institutions and Securities and the Director of the

19  Division of Insurance shall each be appointed by the Governor,

20  in consultation with the Chief Financial Officer, subject to

21  confirmation by the Cabinet as provided in s. 6(a), Art. IV of

22  the State Constitution, and, at the request of the Governor or

23  any cabinet member, shall be subject to reconfirmation by the

24  Cabinet.

25         (a)  Before appointment as director, the Director of

26  the Division of Financial Institutions and Securities must

27  have had private-sector experience working in the field of

28  financial institutions or securities or at least 5 years of

29  experience as another senior employee of a state or federal

30  agency having regulatory responsibility over financial

31  institutions or securities.

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB's 662 & 232

    Amendment No. ___   Barcode 090210





  1         (b)  Before appointment as director, the Director of

  2  the Division of Insurance must have had private-sector

  3  experience working in an area that is under the regulatory

  4  jurisdiction of the Division of Insurance or at least 5 years'

  5  experience as a senior employee of a state or federal agency

  6  having regulatory responsibility over an area of the business

  7  of insurance.

  8         (c)  The Division of Financial Institutions and

  9  Securities and the Division of Insurance are administratively

10  housed within the Department of Financial Services. For

11  purposes of budget and personnel matters, each of these

12  divisions shall contract with the department for a sufficient

13  number of attorneys, investigators, other professional

14  personnel, and administrative personnel as determined annually

15  in the appropriations process. The department shall provide

16  support services to each division pursuant to an agreement

17  entered into between the Chief Financial Officer and the

18  respective division director.

19         (d)  The Division of Financial Investigations shall

20  function as a criminal justice agency within the meaning of s.

21  943.045(10)(e).

22         Section 3.  The Division of Treasury, in addition to

23  other matters that may be assigned to or located within the

24  division, shall administer the Government Employees Deferred

25  Compensation Plan established under section 112.215, Florida

26  Statutes, for state employees.

27         Section 4.  Effective July 1, 2002, the Division of

28  Workers' Compensation of the Department of Labor and

29  Employment Security is transferred by a type two transfer, as

30  defined in section 20.06(2), Florida Statutes, to the

31  Department of Insurance. For purposes of this transfer, all

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB's 662 & 232

    Amendment No. ___   Barcode 090210





  1  employees transferred to the Department of Insurance or

  2  reassigned or reclassified by the Department of Insurance

  3  shall be considered new employees as provided in section

  4  110.213(1), Florida Statutes.

  5         Section 5.  This act shall not affect the validity of

  6  any judicial or administrative action involving the Department

  7  of Banking and Finance or the Department of Insurance pending

  8  on January 7, 2003, and the Department of Financial Services

  9  shall be substituted as a party in interest in any such

10  action. However, if the action involves the constitutional

11  functions of the Comptroller or Treasurer, the Chief Financial

12  Officer shall instead be substituted as a party in interest.

13         Section 6.  The Department of Banking and Finance and

14  the Department of Insurance are transferred by a type two

15  transfer, as defined in section 20.06, Florida Statutes, to

16  the Department of Financial Services.

17         Section 7.  Any binding contract or interagency

18  agreement existing on or before January 7, 2003, between the

19  Department of Insurance, the Department of Banking and

20  Finance, or the Department of Labor and Employment Security,

21  or an entity or agent of such departments, and any other

22  agency, entity, or person shall continue as a binding contract

23  or agreement for the remainder of the term of the contract or

24  agreement with the successor department, agency or entity

25  responsible for the program, activity, or functions relative

26  to the contract or agreement.

27         Section 8.  Sections 20.12 and 20.13 and paragraph (b)

28  of subsection (5) of section 20.171, Florida Statutes, are

29  repealed.

30         Section 9.  The Chief Financial Officer is authorized

31  to organize the Department of Financial Services in a manner

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                                                  SENATE AMENDMENT

    Bill No. CS for CS for SB's 662 & 232

    Amendment No. ___   Barcode 090210





  1  to promote efficiency and accountability, subject to the

  2  provisions of this act.

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  4  (Redesignate subsequent sections.)

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