Senate Bill sb0042E

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2002                                  SB 42-E

    By Senator Latvala





    19-2365-02

  1                      A bill to be entitled

  2         An act relating to powers and duties of the

  3         Chief Financial Officer; creating s. 17.001,

  4         F.S.; establishing the Office of the Chief

  5         Financial Officer; creating s. 20.121, F.S.;

  6         creating the Department of Financial Services;

  7         providing for the divisions of the department;

  8         specifying division directors who shall act as

  9         agency head for purposes of ch. 120, F.S.;

10         establishing the manner of their appointment

11         and confirmation; providing that this act shall

12         not affect the validity of certain judicial and

13         administrative actions; transferring the

14         Department of Banking and Finance and the

15         Department of Insurance to the Department of

16         Financial Services; repealing s. 20.12, F.S.;

17         abolishing the Department of Banking and

18         Finance; providing that existing agency

19         contracts continue to be binding with the

20         successor department or agency; repealing s.

21         20.13, F.S.; abolishing the Department of

22         Insurance; redesignating the Insurance

23         Commissioner's Regulatory Trust Fund the

24         Insurance Regulatory Trust Fund; redesignating

25         the Department of Banking and Finance

26         Regulatory Trust Fund the Banking and Finance

27         Regulatory Trust Fund; amending and

28         transferring ss. 18.01, 18.02, 18.021, 18.05,

29         18.06, 18.08, 18.10, 18.101, 18.103, 18.104,

30         18.125, 18.15, 18.17, 18.20, 18.23, 18.24,

31         F.S., and amending ss. 11.12, 11.13, 11.147,

                                  1

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






    Florida Senate - 2002                                  SB 42-E
    19-2365-02




 1         11.151, 11.40, 11.42, 13.05, 14.055, 14.057,

 2         14.058, 14.202, 14.203, 14.24, 15.09, 16.10,

 3         17.011, 17.02, 17.03, 17.031, 17.04, 17.0401,

 4         17.041, 17.0415, 17.05, 17.06, 17.075, 17.076,

 5         17.08, 17.09, 17.10, 17.11, 17.12, 17.13,

 6         17.14, 17.16, 17.17, 17.20, 17.21, 17.22,

 7         17.25, 17.26, 17.27, 17.28, 17.29, 17.30,

 8         17.32, 17.325, 17.41, 17.43, 20.04, 20.055,

 9         20.195, 20.425, 20.435, 24.105, 24.111, 24.112,

10         24.120, 25.241, 26.39, 27.08, 27.10, 27.11,

11         27.12, 27.13, 27.34, 27.3455, 27.703, 27.710,

12         27.711, 28.235, 28.24, 30.52, 40.30, 40.31,

13         40.33, 40.34, 40.35, 43.16, 43.19, 48.151,

14         55.03, 57.091, 68.083, 68.084, 68.087, 68.092,

15         77.0305, 92.39, 99.097, 101.151, 103.091,

16         107.11, 110.1127, 110.113, 110.114, 110.116,

17         110.1227, 110.1228, 110.123, 110.125, 110.181,

18         110.2037, 110.205, 112.061, 112.08, 112.191,

19         112.215, 112.3144, 112.3145, 112.3189,

20         112.31895, 112.3215, 112.63, 114.03, 116.03,

21         116.04, 116.05, 116.06, 116.14, 120.52, 120.80,

22         121.0312, 121.055, 121.061, 121.133, 121.4501,

23         125.0104, 129.201, 131.05, 137.09, 145.141,

24         154.02, 154.03, 154.05, 154.06, 154.209,

25         154.314, 163.01, 163.055, 163.3167, 175.101,

26         175.121, 175.151, 185.08, 185.10, 185.13,

27         189.4035, 189.412, 189.427, 190.007, 191.006,

28         192.091, 192.102, 193.092, 195.101, 198.29,

29         199.232, 203.01, 206.46, 210.16, 210.20,

30         210.50, 211.06, 211.32, 212.08, 212.12, 212.20,

31         213.053, 213.054, 213.255, 213.67, 213.75,

                                  2

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






    Florida Senate - 2002                                  SB 42-E
    19-2365-02




 1         215.02, 215.03, 215.04, 215.05, 215.11, 215.20,

 2         215.22, 215.23, 215.24, 215.25, 215.26, 215.29,

 3         215.31, 215.32, 215.3206, 215.3208, 215.321,

 4         215.322, 215.34, 215.35, 215.405, 215.42,

 5         215.422, 215.44, 215.50, 215.551, 215.552,

 6         215.555, 215.559, 215.56005, 215.5601, 215.58,

 7         215.62, 215.684, 215.70, 215.91, 215.92,

 8         215.93, 215.94, 215.95, 215.96, 215.965,

 9         215.97, 216.0442, 216.102, 216.141, 216.177,

10         216.181, 216.183, 216.192, 216.212, 216.221,

11         216.235, 216.237, 216.251, 216.271, 216.275,

12         216.292, 216.301, 217.07, 218.06, 218.23,

13         218.31, 218.321, 218.325, 220.62, 220.723,

14         228.2001, 229.0535, 229.0537, 229.05371,

15         229.111, 229.781, 231.261, 231.30, 231.545,

16         233.063, 233.07, 233.15, 233.16, 233.255,

17         236.43, 236.601, 237.121, 237.181, 237.211,

18         238.11, 238.15, 238.172, 238.173, 240.551,

19         242.331, 242.341, 245.13, 250.22, 250.24,

20         250.25, 250.26, 250.34, 252.62, 252.87, 253.02,

21         253.025, 255.03, 255.052, 255.258, 255.503,

22         255.521, 257.22, 258.014, 259.032, 259.041,

23         265.53, 265.55, 267.075, 272.18, 280.02,

24         280.04, 280.041, 280.05, 280.051, 280.052,

25         280.053, 280.054, 280.055, 280.06, 280.07,

26         280.071, 280.08, 280.085, 280.09, 280.10,

27         280.11, 280.13, 280.16, 280.17, 280.18, 280.19,

28         282.1095, 284.02, 284.04, 284.05, 284.06,

29         284.08, 284.14, 284.17, 284.30, 284.31, 284.32,

30         284.33, 284.34, 284.35, 284.37, 284.385,

31         284.39, 284.40, 284.41, 284.42, 284.44, 284.50,

                                  3

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






    Florida Senate - 2002                                  SB 42-E
    19-2365-02




 1         287.042, 287.057, 287.058, 287.063, 287.064,

 2         287.09451, 287.115, 287.131, 287.175, 288.1045,

 3         288.106, 288.109, 288.1253, 288.709, 288.712,

 4         288.776, 288.778, 288.99, 289.051, 289.081,

 5         289.121, 292.085, 313.02, 314.02, 316.3025,

 6         316.545, 320.02, 320.081, 320.20, 320.71,

 7         320.781, 322.21, 324.032, 324.171, 326.006,

 8         331.303, 331.309, 331.3101, 331.348, 331.419,

 9         336.022, 337.25, 339.035, 339.081, 344.17,

10         350.06, 354.03, 365.173, 370.06, 370.16,

11         370.19, 370.20, 373.503, 373.59, 373.6065,

12         374.983, 374.986, 376.11, 376.123, 376.307,

13         376.3071, 376.3072, 376.3075, 376.3078,

14         376.3079, 376.40, 377.23, 377.2425, 377.705,

15         378.035, 378.037, 378.208, 381.765, 381.90,

16         388.201, 388.301, 391.025, 391.221, 392.69,

17         393.002, 393.075, 394.482, 400.0238, 400.063,

18         400.071, 400.4174, 400.4298, 400.471, 400.962,

19         401.245, 401.25, 402.04, 402.17, 402.33,

20         403.1835, 403.1837, 403.706, 403.724, 403.8532,

21         404.111, 408.040, 408.05, 408.08, 408.18,

22         408.50, 408.7056, 408.902, 409.175, 409.25656,

23         409.25658, 409.2673, 409.8132, 409.817,

24         409.818, 409.910, 409.912, 409.9124, 409.915,

25         411.01, 413.32, 414.27, 414.28, 420.0005,

26         420.0006, 420.101, 420.123, 420.131, 420.141,

27         420.5092, 430.42, 430.703, 440.103, 440.105,

28         440.1051, 440.106, 440.13, 440.134, 440.135,

29         440.20, 440.24, 440.38, 440.381, 440.385,

30         440.44, 440.4416, 440.49, 440.50, 440.51,

31         440.515, 440.52, 443.131, 443.191, 443.211,

                                  4

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






    Florida Senate - 2002                                  SB 42-E
    19-2365-02




 1         447.12, 450.155, 456.047, 468.392, 473.3065,

 2         475.045, 475.484, 475.485, 489.144, 489.145,

 3         489.533, 494.001, 494.0011, 494.0017,

 4         494.00421, 497.005, 497.101, 497.105, 497.107,

 5         497.109, 497.115, 497.117, 497.131, 497.201,

 6         497.253, 497.313, 497.403, 497.407, 497.435,

 7         497.525, 498.025, 498.049, 499.057, 501.212,

 8         509.215, 513.055, 516.01, 516.03, 516.35,

 9         517.021, 517.03, 517.061, 517.075, 517.1204,

10         517.1205, 517.131, 517.141, 517.151, 518.115,

11         518.116, 519.101, 520.02, 520.07, 520.31,

12         520.34, 520.61, 520.76, 520.998, 526.141,

13         537.003, 537.004, 537.011, 548.066, 548.077,

14         550.0251, 550.054, 550.0951, 550.125, 550.135,

15         550.1645, 552.081, 552.161, 552.21, 552.26,

16         553.72, 553.73, 553.74, 553.79, 554.1021,

17         554.105, 554.111, 559.10, 559.543, 559.545,

18         559.55, 559.555, 559.725, 559.730, 559.928,

19         560.102, 560.103, 560.119, 560.4041, 560.408,

20         561.051, 562.44, 567.08, 569.205, 570.13,

21         570.195, 570.20, 574.03, 589.06, 597.010,

22         601.10, 601.15, 601.28, 607.0501, 607.14401,

23         609.05, 617.0501, 617.1440, 624.05, 624.155,

24         624.305, 624.307, 624.310, 624.314, 624.319,

25         624.320, 624.321, 624.322, 624.33, 624.404,

26         624.4071, 624.4085, 624.40851, 624.422,

27         624.423, 624.442, 624.4435, 624.484, 624.5015,

28         624.502, 624.506, 624.5091, 624.5092, 624.516,

29         624.517, 624.519, 624.521, 624.523, 624.610,

30         624.87, 624.91, 625.161, 625.317, 625.52,

31         625.53, 625.83, 626.266, 626.2815, 626.322,

                                  5

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






    Florida Senate - 2002                                  SB 42-E
    19-2365-02




 1         626.592, 626.742, 626.7492, 626.8427, 626.8463,

 2         626.8467, 626.847, 626.8736, 626.906, 626.907,

 3         626.912, 626.918, 626.931, 626.932, 626.936,

 4         626.9361, 626.937, 626.938, 626.9511, 626.9541,

 5         626.9543, 626.989, 626.9892, 626.9911,

 6         626.9912, 626.9916, 627.0613, 627.0628,

 7         627.0651, 627.06535, 627.0915, 627.0916,

 8         627.092, 627.096, 627.221, 627.311, 627.351,

 9         627.413, 627.4236, 627.6472, 627.6482,

10         627.6488, 627.6675, 627.7012, 627.7015,

11         627.727, 627.728, 627.736, 627.849, 627.912,

12         627.9122, 627.919, 627.94074, 627.944, 627.948,

13         628.461, 628.4615, 629.401, 631.001, 631.221,

14         631.392, 631.54, 631.57, 631.59, 631.714,

15         631.72, 631.723, 631.813, 631.814, 631.904,

16         631.911, 631.912, 631.917, 631.931, 632.628,

17         633.01, 633.022, 633.025, 633.052, 633.061,

18         633.081, 633.111, 633.161, 633.162, 633.30,

19         633.31, 633.353, 633.382, 633.43, 633.445,

20         633.45, 633.46, 633.461, 633.47, 633.50,

21         633.524, 634.011, 634.137, 634.151, 634.161,

22         634.221, 634.301, 634.313, 634.324, 634.327,

23         634.3284, 634.401, 634.415, 634.416, 634.427,

24         634.433, 635.011, 635.041, 636.003, 636.043,

25         636.047, 636.052, 641.185, 641.19, 641.23,

26         641.26, 641.28, 641.39001, 641.402, 641.403,

27         641.412, 641.454, 641.455, 641.48, 641.49,

28         641.511, 641.52, 641.55, 641.58, 642.015,

29         642.0475, 648.25, 648.26, 648.34, 648.355,

30         648.37, 648.386, 648.442, 650.06, 651.011,

31         651.015, 651.0235, 651.035, 651.121, 651.125,

                                  6

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






    Florida Senate - 2002                                  SB 42-E
    19-2365-02




 1         655.001, 655.005, 655.057, 655.90, 657.002,

 2         657.253, 658.23, 658.295, 658.2953, 658.83,

 3         660.27, 660.28, 687.13, 687.14, 697.202,

 4         697.205, 697.206, 713.596, 716.02, 716.03,

 5         716.04, 716.05, 716.06, 716.07, 717.101,

 6         717.135, 717.138, 718.501, 719.501, 721.24,

 7         721.26, 723.006, 732.107, 733.816, 744.534,

 8         766.105, 766.1115, 766.314, 766.315, 768.28,

 9         790.001, 790.1612, 791.01, 791.015, 817.16,

10         817.234, 839.06, 849.086, 849.33, 860.154,

11         860.157, 896.102, 903.101, 903.27, 925.037,

12         932.7055, 932.707, 938.27, 939.13, 943.031,

13         943.032, 944.516, 946.33, 946.509, 946.510,

14         946.517, 946.522, 946.525, 947.12, 950.002,

15         957.04, 985.406, 985.409, F.S., to conform;

16         creating ss. 633.801, 633.802, 633.803,

17         633.804, 633.805, 633.806, 633.807, 633.808,

18         633.809, 633.810, 633.811, 633.812, 633.813,

19         633.814, 633.815, 633.816, 633.817, 633.818,

20         633.819, 633.820, 633.821, F.S.; providing a

21         short title; providing definitions; providing

22         legislative intent; authorizing the Division of

23         State Fire Marshal of the Department of

24         Financial Services to adopt rules related to

25         firefighter safety inspections; requiring the

26         division to conduct a study of firefighter

27         occupational diseases; authorizing

28         representatives of the division to enter and

29         inspect any place of firefighter employment;

30         requiring firefighter employers to provide safe

31         employment conditions; authorizing the division

                                  7

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






    Florida Senate - 2002                                  SB 42-E
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 1         to adopt rules that prescribe means for

 2         preventing accidents in places of firefighter

 3         employment and establish standards for

 4         construction, repair, and maintenance;

 5         requiring the division to inspect places of

 6         firefighter employment and to develop safety

 7         and health programs for those firefighter

 8         employers whose employees have a high frequency

 9         or severity of work-related injuries; requiring

10         certain firefighter employers to establish

11         workplace safety committees and to maintain

12         certain records; providing penalties for

13         firefighter employers who violate provisions of

14         the act; providing exemptions; providing a

15         penalty for the failure to implement a safety

16         and health program and cancellations; providing

17         for expenses of administration; providing

18         penalties for refusal to admit division;

19         specifying firefighter employee rights and

20         responsibilities; providing division remedies

21         for failure to comply; providing penalties for

22         firefighter employers who make false statements

23         to the division or to an insurer; providing

24         criminal penalties for false, malicious, or

25         fraudulent statements and representations;

26         specifying applicability to volunteer

27         firefighters and fire departments; providing

28         for workplace safety and authorizing the

29         division to adopt rules including federal

30         standards for assuring safe working conditions

31         for all firefighter employees; amending s.

                                  8

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






    Florida Senate - 2002                                  SB 42-E
    19-2365-02




 1         633.31, F.S.; changing the name of and

 2         expanding and diversifying the Firefighters

 3         Standards and Training Council; amending s.

 4         633.33, F.S.; providing additional duties of

 5         the council; amending ss. 383.3362, 633.330,

 6         and 633.32, F.S.; revising cross-references, to

 7         conform; providing for legislative

 8         determination of important state interest;

 9         increasing membership on the board of directors

10         of the Florida Healthy Kids Corporation;

11         amending s. 288.99, F.S.; transferring certain

12         responsibilities of the Office of Tourism,

13         Trade, and Economic Development relating to the

14         Certified Capital Company Act to the Department

15         of Financial Services; prescribing duties of

16         that department; revising and adding

17         definitions; providing for additional premium

18         tax credits under the act; repealing s. 18.03,

19         F.S., relating to the residence and office of

20         the Treasurer, s. 18.07, F.S., relating to

21         records of warrants and state funds and

22         securities, s. 18.09, F.S., relating to a

23         report to the Legislature, s. 18.091, F.S.,

24         relating to employees for legislative sessions,

25         s. 18.22, F.S., relating to rules, s. 627.0623,

26         F.S., relating to restrictions on expenditures

27         and solicitations of insurers and affiliates,

28         s. 655.019, F.S., relating to campaign

29         contributions and limitations on them, s.

30         657.067, F.S., relating to conversion of credit

31         unions from federal to state charter; amending

                                  9

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






    Florida Senate - 2002                                  SB 42-E
    19-2365-02




 1         s. 163.05, F.S.; transferring responsibility

 2         for the Small County Technical Assistance

 3         Program from the Comptroller to the

 4         Commissioner of Agriculture; revising

 5         legislative findings; providing criteria for

 6         contracts between the commissioner and program

 7         providers; deleting responsibilities of the

 8         Legislative Committee on Intergovernmental

 9         Relations; authorizing the commissioner to

10         award contracts to provide assistance to small

11         counties; requiring fiscal oversight and

12         performance reviews; providing an

13         appropriation; amending s. 112.313, F.S.;

14         declaring that certain relationships between

15         business entities and the Governor and members

16         of the Cabinet do not violate standards of

17         conduct; providing for construction of laws

18         enacted at the 2002 Regular Session in relation

19         to this act; providing effective dates.

20  

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

22  

23         Section 1.  Section 17.001, Florida Statutes, is

24  created to read:

25         17.001  Financial Officer.--As provided in s. 4(c),

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

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

28  for settling and approving accounts against the state and

29  keeping all state funds and securities.

30         Section 2.  Section 20.121, Florida Statutes, is

31  created to read:

                                  10

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






    Florida Senate - 2002                                  SB 42-E
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 1         20.121  Department of Financial Services.--There is

 2  created a Department of Financial Services.

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

 4  is the Chief Financial Officer.

 5         (2)  The Department of Financial Services shall consist

 6  of the following divisions:

 7         (a)  Division of Treasury.

 8         (b)  Division of Consumer Services.

 9         (c)  Division of Insurance. Division responsibilities,

10  as provided in the Florida Insurance Code, include issuing

11  certificates of authority to insurers, regulatory oversight of

12  insurer solvency, approving policy forms and rates, performing

13  market conduct examinations, and enforcing statutes related to

14  insurers.

15         (d)  Division of Financial Institutions and Securities,

16  which shall consist of the following bureaus:

17         1.  Bureau of Banking;

18         2.  Bureau of Securities;

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

20         4.  Bureau of Regulation.

21  

22  Division responsibilities include licensure, examination, and

23  regulation of state-chartered financial institutions, as

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

25  enforcing chapter 517, the Florida Securities and Investor

26  Protection Act; chapter 494, relating to mortgage brokerage

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

28  chapter 520, relating to retail installment sales; those

29  sections in chapter 559 relating to collection agencies;

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

31  chapter 497 related to the department's responsibilities with

                                  11

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






    Florida Senate - 2002                                  SB 42-E
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 1  respect to cemeteries and preneed services; and certifying and

 2  reviewing certified capital companies, as provided in s.

 3  288.99.

 4         (e)  Division of Risk Management.

 5         (f)  Division of State Fire Marshal.

 6         (g)  Division of Insurance Fraud.

 7         (h)  Division of Rehabilitation and Liquidation.

 8         (i)  Division of Information Systems.

 9         (j)  Division of Legal Services.

10         (k)  Division of Financial Investigations.

11         (l)  Division of Accounting and Auditing.

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

13         (n)  Division of Administration.

14         (o)  The Division of Workers' Compensation.

15         (3)  The Division of Financial Institutions and

16  Securities and the Division of Insurance shall each be headed

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

18  agency heads for purposes of chapter 120 and shall be

19  responsible for final agency action with regard to the

20  implementation and enforcement of statutes and rules under the

21  regulatory authority delegated to their divisions and

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

23  Financial Institutions and Securities and the Director of the

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

25  in consultation with the Chief Financial Officer. Pursuant to

26  Art. IV, s. (6)(a) of the State Constitution, before entering

27  upon the duties of office, a director must be confirmed by all

28  three members of the Cabinet. At any time after a director

29  enters upon the duties of the office, if the Governor or Chief

30  Financial Officer so requests, in writing, for any reason, the

31  Governor shall call for a vote, within 30 days, on whether the

                                  12

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






    Florida Senate - 2002                                  SB 42-E
    19-2365-02




 1  subject director will continue in office. If a director fails

 2  to obtain the affirmative vote of three officers among the

 3  Governor and Cabinet, the subject director is removed from

 4  office, the office becomes vacant on the date specified in the

 5  Governor's order, and the Governor shall appoint a replacement

 6  director in the manner provided for in this subsection.

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

 8  the Division of Financial Institutions and Securities must

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

10  financial institutions or securities or at least 5 years of

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

12  having regulatory responsibility over financial institutions

13  or securities.

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

15  the Division of Insurance must have had private-sector

16  experience working in an area that is under the regulatory

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

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

19  having regulatory responsibility over an area of the business

20  of insurance.

21         (c)  The Division of Financial Institutions and

22  Securities and the Division of Insurance are independent

23  divisions administratively housed within the Department of

24  Financial Services. For purposes of the budget, purchasing,

25  transactions involving real or personal property, and

26  personnel and regulatory matters, the division directors shall

27  exercise exclusive control over their division. Each of these

28  divisions shall have a sufficient number of attorneys,

29  investigators, other professional personnel and administrative

30  personnel as determined annually in the appropriations

31  process. The department shall provide support services to each

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 1  division pursuant to an agreement entered into between the

 2  Chief Financial Officer and the respective division director.

 3         (d)  The Division of Financial Investigations shall

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

 5  943.045(10)(e).

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

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

 8  division, shall administer the Government Employees Deferred

 9  Compensation Plan established under section 112.215, Florida

10  Statutes, for state employees.

11         Section 4.  This act shall not affect the validity of

12  any judicial or administrative action involving the Department

13  of Banking and Finance or the Department of Insurance pending

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

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

16  action. However, if the action involves the constitutional

17  functions of the Comptroller or Treasurer, the Chief Financial

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

19         Section 5.  The Department of Banking and Finance and

20  the Department of Insurance are transferred by a type two

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

22  the Department of Financial Services.

23         Section 6.  Any binding contract or interagency

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

25  Department of Insurance or the Department of Banking and

26  Finance, or an entity or agent of such departments, and any

27  other agency, entity, or person shall continue as a binding

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

29  contract or agreement with the successor department, agency or

30  entity responsible for the program, activity, or functions

31  relative to the contract or agreement.

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 1         Section 7.  Sections 20.12 and 20.13, Florida Statutes,

 2  are repealed.

 3         Section 8.  The Chief Financial Officer is authorized

 4  to organize the Department of Financial Services in a manner

 5  to promote efficiency and accountability, subject to the

 6  provisions of this act.

 7         Section 9.  Section 11.12, Florida Statutes, is amended

 8  to read:

 9         11.12  Salary, subsistence, and mileage of members and

10  employees; expenses authorized by resolution; appropriation;

11  preaudit by Comptroller.--

12         (1)  The Chief Financial Officer Treasurer is

13  authorized to pay the salary, subsistence, and mileage of the

14  members of the Legislature, as the same shall be authorized

15  from time to time by law, upon receipt of a warrant therefor

16  of the Comptroller for the stated amount. The Chief Financial

17  Officer Treasurer is authorized to pay the compensation of

18  employees of the Legislature, together with reimbursement for

19  their authorized travel as provided in s. 112.061, and such

20  expense of the Legislature as shall be authorized by law, a

21  concurrent resolution, a resolution of either house, or rules

22  adopted by the respective houses, provided the total amount

23  appropriated to the legislative branch shall not be altered,

24  upon receipt of such warrant therefor. The number, duties, and

25  compensation of the employees of the respective houses and of

26  their committees shall be determined as provided by the rules

27  of the respective house or in this chapter. Each legislator

28  may designate no more than two employees to attend sessions of

29  the Legislature, and those employees who change their places

30  of residence in order to attend the session shall be paid

31  subsistence at a rate to be established by the President of

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 1  the Senate for Senate employees and the Speaker of the House

 2  of Representatives for House employees. Such employees, in

 3  addition to subsistence, shall be paid transportation expenses

 4  in accordance with s. 112.061(7) and (8) for actual

 5  transportation between their homes and the seat of government

 6  in order to attend the legislative session and return home, as

 7  well as for two round trips during the course of any regular

 8  session of the Legislature.

 9         (2)  All vouchers covering legislative expenses shall

10  be preaudited by the Chief Financial Officer Comptroller, and,

11  if found to be correct, state warrants shall be issued

12  therefor.

13         Section 10.  Paragraph (c) of subsection (5) of section

14  11.13, Florida Statutes, is amended to read:

15         11.13  Compensation of members.--

16         (5)

17         (c)  The Office of Legislative Services shall submit on

18  forms prescribed by the Chief Financial Officer Comptroller

19  requested allotments of appropriations for the fiscal year. It

20  shall be the duty of the Chief Financial Officer Comptroller

21  to release the funds and authorize the expenditures for the

22  legislative branch to be made from the appropriations on the

23  basis of the requested allotments.  However, the aggregate of

24  such allotments shall not exceed the total appropriations

25  available for the fiscal year.

26         Section 11.  Subsection (4) of section 11.147, Florida

27  Statutes, is amended to read:

28         11.147  Office of Legislative Services.--

29         (4)  The Office of Legislative Services shall deliver

30  such vouchers covering legislative expenses as required to the

31  

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 1  Chief Financial Officer Comptroller and, if found to be

 2  correct, state warrants shall be issued therefor.

 3         Section 12.  Section 11.151, Florida Statutes, is

 4  amended to read:

 5         11.151  Annual legislative appropriation to contingency

 6  fund for use of Senate President and House Speaker.--There is

 7  established a legislative contingency fund consisting of

 8  $10,000 for the President of the Senate and $10,000 for the

 9  Speaker of the House of Representatives, which amounts shall

10  be set aside annually from moneys appropriated for legislative

11  expense.  These funds shall be disbursed by the Chief

12  Financial Officer Comptroller upon receipt of vouchers

13  authorized by the President of the Senate or the Speaker of

14  the House of Representatives. Such Said funds may be expended

15  at the unrestricted discretion of the President of the Senate

16  or the Speaker of the House of Representatives in carrying out

17  their official duties during the entire period between the

18  date of their election as such officers at the organizational

19  meeting held pursuant to s. 3(a), Art. III of the State

20  Constitution and the next general election.

21         Section 13.  Subsection (5) of section 11.40, Florida

22  Statutes, is amended to read:

23         11.40  Legislative Auditing Committee.--

24         (5)  Following notification by the Auditor General, the

25  Department of Financial Services Banking and Finance, or the

26  Division of Bond Finance of the State Board of Administration

27  of the failure of a local governmental entity, district school

28  board, charter school, or charter technical career center to

29  comply with the applicable provisions within s. 11.45(5)-(7),

30  s. 218.32(1), or s. 218.38, the Legislative Auditing Committee

31  may schedule a hearing. If a hearing is scheduled, the

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 1  committee shall determine if the entity should be subject to

 2  further state action.  If the committee determines that the

 3  entity should be subject to further state action, the

 4  committee shall:

 5         (a)  In the case of a local governmental entity or

 6  district school board, request the Department of Revenue and

 7  the Department of Financial Services Banking and Finance to

 8  withhold any funds not pledged for bond debt service

 9  satisfaction which are payable to such entity until the entity

10  complies with the law. The committee, in its request, shall

11  specify the date such action shall begin, and the request must

12  be received by the Department of Revenue and the Department of

13  Financial Services Banking and Finance 30 days before the date

14  of the distribution mandated by law. The Department of Revenue

15  and the Department of Financial Services may Banking and

16  Finance are authorized to implement the provisions of this

17  paragraph.

18         (b)  In the case of a special district, notify the

19  Department of Community Affairs that the special district has

20  failed to comply with the law. Upon receipt of notification,

21  the Department of Community Affairs shall proceed pursuant to

22  the provisions specified in ss. 189.421 and 189.422.

23         (c)  In the case of a charter school or charter

24  technical career center, notify the appropriate sponsoring

25  entity, which may terminate the charter pursuant to ss.

26  228.056 and 228.505.

27         Section 14.  Paragraph (b) of subsection (6) of section

28  11.42, Florida Statutes, is amended to read:

29         11.42  The Auditor General.--

30         (6)

31  

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 1         (b)  All payrolls and vouchers for the operations of

 2  the Auditor General's office shall be submitted to the Chief

 3  Financial Officer Comptroller and, if found to be correct,

 4  payments shall be issued therefor.

 5         Section 15.  Subsection (1) of section 13.05, Florida

 6  Statutes, is amended to read:

 7         13.05  Governor's Committee on Interstate

 8  Cooperation.--

 9         (1)  There is hereby established a committee of

10  administrative officials of this state to be officially known

11  as the Governor's Committee on Interstate Cooperation, and to

12  consist of six seven members. Its members shall be the

13  Governor, Secretary of State, Attorney General, Chief

14  Financial Officer Comptroller, Treasurer, Commissioner of

15  Education, and Commissioner of Agriculture. Any member of the

16  Governor's committee may designate an alternate to serve in

17  the member's place upon any occasion; such alternate shall be

18  an administrative official or employee of the state.

19         Section 16.  Section 14.055, Florida Statutes, is

20  amended to read:

21         14.055  Succession to office of Governor.--Upon vacancy

22  in the office of Governor, the Lieutenant Governor shall

23  become Governor.  Upon vacancy in the office of Governor and

24  in the office of Lieutenant Governor, the Secretary of State

25  shall become Governor; or if the office of Secretary of State

26  be vacant, then the Attorney General shall become Governor; or

27  if the office of Attorney General be vacant, then the Chief

28  Financial Officer Comptroller shall become Governor; or if the

29  office of Comptroller be vacant, then the Treasurer shall

30  become Governor; or if the office of Treasurer be vacant, then

31  the Commissioner of Education shall become Governor; or if the

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 1  office of Chief Financial Officer Commissioner of Education be

 2  vacant, then the Commissioner of Agriculture shall become

 3  Governor.  A successor under this section shall serve for the

 4  remainder of the term and shall receive all the rights,

 5  privileges and emoluments of the Governor.  In case a vacancy

 6  shall occur in the office of Governor and provision is not

 7  made herein for filling such vacancy, then the Speaker of the

 8  House and the President of the Senate shall convene the

 9  Legislature by joint proclamation within 15 days for the

10  purpose of choosing a person to serve as Governor for the

11  remainder of the term.  A successor shall be elected by a

12  majority vote in a joint session of both houses.

13         Section 17.  Subsection (1) of section 14.057, Florida

14  Statutes, is amended to read:

15         14.057  Governor-elect; establishment of operating

16  fund.--

17         (1)  There is established an operating fund for the use

18  of the Governor-elect during the period dating from the

19  certification of his or her election by the Elections

20  Canvassing Commission to his or her inauguration as Governor.

21  The Governor-elect during this period may allocate the fund to

22  travel, expenses, his or her salary, and the salaries of the

23  Governor-elect's staff as he or she determines. Such staff may

24  include, but not be limited to, a chief administrative

25  assistant, a legal adviser, a fiscal expert, and a public

26  relations and information adviser. The salary of the

27  Governor-elect and each member of the Governor-elect's staff

28  during this period shall be determined by the Governor-elect,

29  except that the total expenditures chargeable to the state

30  under this section, including salaries, shall not exceed the

31  amount appropriated to the operating fund. The Executive

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 1  Office of the Governor shall supply to the Governor-elect

 2  suitable forms to provide for the expenditure of the fund and

 3  suitable forms to provide for the reporting of all

 4  expenditures therefrom. The Chief Financial Officer

 5  Comptroller shall release moneys from this fund upon the

 6  request of the Governor-elect properly filed.

 7         Section 18.  Section 14.058, Florida Statutes, is

 8  amended to read:

 9         14.058  Inauguration expense fund.--There is

10  established an inauguration expense fund for the use of the

11  Governor-elect in planning and conducting the inauguration

12  ceremonies. The Governor-elect shall appoint an inauguration

13  coordinator and such staff as necessary to plan and conduct

14  the inauguration. Salaries for the inauguration coordinator

15  and the inauguration coordinator's staff shall be determined

16  by the Governor-elect and shall be paid from the inauguration

17  expense fund. The Executive Office of the Governor shall

18  supply to the inauguration coordinator suitable forms to

19  provide for the expenditure of the fund and suitable forms to

20  provide for the reporting of all expenditures therefrom. The

21  Chief Financial Officer Comptroller shall release moneys from

22  this fund upon the request of the inauguration coordinator

23  properly filed.

24         Section 19.  Section 14.202, Florida Statutes, is

25  amended to read:

26         14.202  Administration Commission.--There is created as

27  part of the Executive Office of the Governor an Administration

28  Commission composed of the Governor and Cabinet. The Governor

29  is chair of the commission. The Governor or Chief Financial

30  Officer Comptroller may call a meeting of the commission

31  promptly each time the need therefor arises. Unless otherwise

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 1  provided herein, affirmative action by the commission shall

 2  require the approval of the Governor and at least two three

 3  other members of the commission. The commission shall adopt

 4  rules pursuant to ss. 120.536(1) and 120.54 to implement

 5  provisions of law conferring duties upon it.

 6         Section 20.  Paragraph (f) of subsection (3) of section

 7  14.203, Florida Statutes, is amended to read:

 8         14.203  State Council on Competitive Government.--It is

 9  the policy of this state that all state services be performed

10  in the most effective and efficient manner in order to provide

11  the best value to the citizens of the state. The state also

12  recognizes that competition among service providers may

13  improve the quality of services provided, and that

14  competition, innovation, and creativity among service

15  providers should be encouraged.

16         (3)  In performing its duties under this section, the

17  council may:

18         (f)  Require that an identified state service be

19  submitted to competitive bidding or another process that

20  creates competition with private sources or other governmental

21  entities. In determining whether an identified state service

22  should be submitted to competitive bidding, the council shall

23  consider, at a minimum:

24         1.  Any constitutional and legal implications which may

25  arise as a result of such action.

26         2.  The cost of supervising the work of any private

27  contractor.

28         3.  The total cost to the state agency of such state

29  agency's performance of a service, including all indirect

30  costs related to that state agency and costs of such agencies

31  as the Chief Financial Officer Comptroller, the Treasurer, the

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 1  Attorney General, and other such support agencies to the

 2  extent such costs would not be incurred if a contract is

 3  awarded. Costs for the current provision of the service shall

 4  be considered only when such costs would actually be saved if

 5  the contract were awarded to another entity.

 6         Section 21.  Subsection (1) of section 14.24, Florida

 7  Statutes, is amended to read:

 8         14.24  Florida Commission on the Status of Women.--

 9         (1)  There is established in the Office of the Attorney

10  General the Florida Commission on the Status of Women,

11  consisting of 20 22 members. The Speaker of the House of

12  Representatives, the President of the Senate, the Attorney

13  General, and the Governor shall each appoint three members and

14  the Chief Financial Officer, Insurance Commissioner, the

15  Comptroller, the Secretary of State, the Commissioner of

16  Agriculture, and the Commissioner of Education shall each

17  appoint two members, for a term of 4 years, except that of the

18  initial appointments, one-half shall be for a 2-year term and

19  one-half shall be for a 4-year term. On January 7, 2003, the

20  term of office of each member appointed by the Insurance

21  Commissioner and the Comptroller expires; and the Chief

22  Financial Officer shall reappoint one of the members who was

23  serving on January 6, 2003, and who was appointed by the

24  Insurance Commissioner and one of such members who was

25  appointed by the Comptroller. If possible, the reappointments

26  shall be made so that the terms of the Chief Financial

27  Officer's appointees remain staggered, but if both

28  reappointees were serving terms of the same length, the

29  reappointment shall be made so that the staggering of terms is

30  maintained. The members appointed shall include persons who

31  represent rural and urban interests and the ethnic and

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 1  cultural diversity of the state's population. No member shall

 2  serve more than 8 consecutive years on the commission. A

 3  vacancy shall be filled for the remainder of the unexpired

 4  term in the same manner as the original appointment.

 5         Section 22.  Subsection (3) of section 15.09, Florida

 6  Statutes, is amended to read:

 7         15.09  Fees.--

 8         (3)  All fees arising from certificates of election or

 9  appointment to office and from commissions to officers shall

10  be paid to the Chief Financial Officer Treasurer for deposit

11  in the General Revenue Fund.

12         Section 23.  Section 16.10, Florida Statutes, is

13  amended to read:

14         16.10  Receipt of Supreme Court reports for

15  office.--The Clerk of the Supreme Court shall deliver to the

16  Attorney General a copy of each volume, or part of volume, of

17  the decisions of the Supreme Court, which may be in the care

18  or custody of said clerk, and which the Attorney General's

19  office may be without, and take the Attorney General's receipt

20  for the same. The Attorney General shall keep the same in her

21  or his office at the capitol, and each retiring Attorney

22  General shall take the receipt of her or his successor for the

23  same and file such receipt in the Chief Financial Officer's

24  Treasurer's office; provided that this shall not authorize the

25  taking away of any book belonging to the Supreme Court

26  library, kept for the use of said court.

27         Section 24.  Section 17.011, Florida Statutes, is

28  amended to read:

29         17.011  Assistant Chief Financial Officer

30  comptroller.--The Chief Financial Officer Comptroller of the

31  state may appoint an assistant comptroller to hold office

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 1  during the pleasure of the Chief Financial Officer

 2  Comptroller.

 3         Section 25.  Section 17.02, Florida Statutes, is

 4  amended to read:

 5         17.02  Place of residence and office.--The Chief

 6  Financial Officer Comptroller shall reside at the seat of

 7  government of this state, and shall hold office in a room in

 8  the capitol. Such office must be open every day, holidays and

 9  public festivals excepted, from 8 a.m. to 5 p.m. Monday

10  through Friday of every week.

11         Section 26.  Section 17.03, Florida Statutes, is

12  amended to read:

13         17.03  To audit claims against the state.--

14         (1)  The Chief Financial Officer Comptroller of this

15  state, using generally accepted auditing procedures for

16  testing or sampling, shall examine, audit, and settle all

17  accounts, claims, and demands, whatsoever, against the state,

18  arising under any law or resolution of the Legislature, and

19  issue a warrant to the Treasurer directing the payment

20  Treasurer to pay out of the State Treasury such amount as he

21  or she allows shall be allowed by the Comptroller thereon.

22         (2)  The Chief Financial Officer Comptroller may

23  establish dollar thresholds applicable to each invoice amount

24  and other criteria for testing or sampling invoices on a

25  preaudit and postaudit basis. The Chief Financial Officer

26  Comptroller may revise such thresholds and other criteria for

27  an agency or the unit of any agency as he or she deems

28  appropriate.

29         (3)  The Chief Financial Officer Comptroller may adopt

30  and disseminate to the agencies procedural and documentation

31  

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 1  standards for payment requests and may provide training and

 2  technical assistance to the agencies for these standards.

 3         (4)  The Chief Financial Officer Comptroller shall have

 4  the legal duty of delivering all state warrants and shall be

 5  charged with the official responsibility of the protection and

 6  security of the state warrants while in his or her custody.

 7  The Chief Financial Officer Comptroller may delegate this

 8  authority to other state agencies or officers.

 9         Section 27.  Section 17.031, Florida Statutes, is

10  amended to read:

11         17.031  Security of Chief Financial Officer's

12  Comptroller's office.--The Chief Financial Officer may

13  Comptroller is authorized to engage the full-time services of

14  two law enforcement officers, with power of arrest, to prevent

15  all acts of a criminal nature directed at the property in the

16  custody or control of the Chief Financial Officer Comptroller.

17  While so assigned, such said officers shall be under the

18  direction and supervision of the Chief Financial Officer

19  Comptroller, and their salaries and expenses shall be paid

20  from the general fund of the office of Chief Financial Officer

21  Comptroller.

22         Section 28.  Section 17.04, Florida Statutes, is

23  amended to read:

24         17.04  To audit and adjust accounts of officers and

25  those indebted to the state.--The Chief Financial Officer

26  Department of Banking and Finance of this state, using

27  generally accepted auditing procedures for testing or

28  sampling, shall examine, audit, adjust, and settle the

29  accounts of all the officers of this state, and any other

30  person in anywise entrusted with, or who may have received any

31  property, funds, or moneys of this state, or who may be in

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 1  anywise indebted or accountable to this state for any

 2  property, funds, or moneys, and require such officer or

 3  persons to render full accounts thereof, and to yield up such

 4  property or funds according to law, or pay such moneys into

 5  the treasury of this state, or to such officer or agent of the

 6  state as may be appointed to receive the same, and on failure

 7  so to do, to cause to be instituted and prosecuted

 8  proceedings, criminal or civil, at law or in equity, against

 9  such persons, according to law.  The Division of Financial

10  Investigations may conduct investigations within or outside of

11  this state as it deems necessary to aid in the enforcement of

12  this section.  If during an investigation the division has

13  reason to believe that any criminal statute of this state has

14  or may have been violated, the division shall refer any

15  records tending to show such violation to state or federal law

16  enforcement or prosecutorial agencies and shall provide

17  investigative assistance to those agencies as required.

18         Section 29.  Section 17.0401, Florida Statutes, is

19  amended to read:

20         17.0401  Confidentiality of information relating to

21  financial investigations.--Except as otherwise provided by

22  this section, information relative to an investigation

23  conducted by the Division of Financial Investigations pursuant

24  to s. 17.04, including any consumer complaint, is confidential

25  and exempt from the provisions of s. 119.07(1) and s. 24(a),

26  Art. I of the State Constitution until the investigation is

27  completed or ceases to be active.  Any information relating to

28  an investigation conducted by the division pursuant to s.

29  17.04 shall remain confidential and exempt from the provisions

30  of s. 119.07(1) and s. 24(a), Art. I of the State Constitution

31  after the division's investigation is completed or ceases to

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 1  be active if the division submits the information to any law

 2  enforcement or prosecutorial agency for further investigation.

 3  Such information shall remain confidential and exempt from the

 4  provisions of s. 119.07(1) and s. 24(a), Art. I of the State

 5  Constitution until that agency's investigation is completed or

 6  ceases to be active.  For purposes of this section, an

 7  investigation shall be considered "active" so long as the

 8  division or any law enforcement or prosecutorial agency is

 9  proceeding with reasonable dispatch and has a reasonable good

10  faith belief that the investigation may lead to the filing of

11  an administrative, civil, or criminal proceeding.  This

12  section shall not be construed to prohibit disclosure of

13  information that which is required by law to be filed with the

14  Department of Financial Services Banking and Finance and that

15  which, but for the investigation, would otherwise be subject

16  to public disclosure. Nothing in this section shall be

17  construed to prohibit the division from providing information

18  to any law enforcement or prosecutorial agency.  Any law

19  enforcement or prosecutorial agency receiving confidential

20  information from the division in connection with its official

21  duties shall maintain the confidentiality of the information

22  as provided for in this section.

23         Section 30.  Subsections (1), (4), and (5) of section

24  17.041, Florida Statutes, are amended to read:

25         17.041  County and district accounts and claims.--

26         (1)  It shall be the duty of the Chief Financial

27  Officer Department of Banking and Finance of this state to

28  adjust and settle, or cause to be adjusted and settled, all

29  accounts and claims heretofore or hereafter reported to it by

30  the Auditor General, the appropriate county or district

31  official, or any person against all county and district

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 1  officers and employees, and against all other persons

 2  entrusted with, or who may have received, any property, funds,

 3  or moneys of a county or district or who may be in anywise

 4  indebted to or accountable to a county or district for any

 5  property, funds, moneys, or other thing of value, and to

 6  require such officer, employee, or person to render full

 7  accounts thereof and to yield up such property, funds, moneys,

 8  or other thing of value according to law to the officer or

 9  authority entitled by law to receive the same.

10         (4)  Should it appear to the Chief Financial Officer

11  department that any criminal statute of this state has or may

12  have been violated by such defaulting officer, employee, or

13  person, such information, evidence, documents, and other

14  things tending to show such a violation, whether in the hands

15  of the Chief Financial Officer Comptroller, the Auditor

16  General, the county, or the district, shall be forthwith

17  turned over to the proper state attorney for inspection,

18  study, and such action as may be deemed proper, or the same

19  may be brought to the attention of the proper grand jury.

20         (5)  No such account or claim, after it has been

21  certified to the Chief Financial Officer department, may be

22  settled for less than the amount due according to law without

23  the written consent of the Chief Financial Officer department,

24  and any attempt to make settlement in violation of this

25  subsection shall be deemed null and void.  A county or

26  district board desiring to make such a settlement shall

27  incorporate the proposed settlement into a resolution, stating

28  that the proposed settlement is contingent upon the Chief

29  Financial Officer's Comptroller's approval, and shall submit

30  two copies of the resolution to the Chief Financial Officer

31  department. The Chief Financial Officer department shall

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 1  return one copy with his or her the Comptroller's action

 2  endorsed thereon.

 3         Section 31.  Section 17.0415, Florida Statutes, is

 4  amended to read:

 5         17.0415  Transfer and assignment of claims.--In order

 6  to facilitate their collection from third parties, the Chief

 7  Financial Officer Comptroller may authorize the assignment of

 8  claims among the state, its agencies, and its subdivisions,

 9  whether arising from criminal, civil, or other judgments in

10  state or federal court. The state, its agencies, and its

11  subdivisions, may assign claims under such terms as are

12  mutually acceptable to the Chief Financial Officer Comptroller

13  and the assignee and assignor. The assigned claim may be

14  enforced as a setoff to any claim against the state, its

15  agencies, or its subdivisions, by garnishment or in the same

16  manner as a judgment in a civil action. Claims against the

17  state, its agencies, and its subdivisions resulting from the

18  condemnation of property protected by the provisions of s. 4,

19  Art. X of the State Constitution are not subject to setoff

20  pursuant to this section.

21         Section 32.  Section 17.05, Florida Statutes, is

22  amended to read:

23         17.05  Subpoenas; sworn statements; enforcement

24  proceedings.--

25         (1)  The Chief Financial Officer Comptroller may demand

26  and require full answers on oath from any and every person,

27  party or privy to any account, claim, or demand against or by

28  the state, such as it may be the Chief Financial Officer's

29  Comptroller's official duty to examine into, and which answers

30  the Chief Financial Officer Comptroller may require to be in

31  writing and to be sworn to before the Chief Financial Officer

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 1  Comptroller or the department or before any judicial officer

 2  or clerk of any court of the state so as to enable the Chief

 3  Financial Officer Comptroller to determine the justice or

 4  legality of such account, claim, or demand.

 5         (2)  In exercising authority under this chapter, the

 6  Chief Financial Officer Comptroller or his or her designee

 7  may:

 8         (a)  Issue subpoenas, administer oaths, and examine

 9  witnesses.

10         (b)  Require or permit a person to file a statement in

11  writing, under oath or otherwise as the Chief Financial

12  Officer Comptroller or his or her designee requires, as to all

13  the facts and circumstances concerning the matter to be

14  audited, examined, or investigated.

15         (3)  Subpoenas shall be issued by the Chief Financial

16  Officer Comptroller or his or her designee under seal

17  commanding such witnesses to appear before the Chief Financial

18  Officer Comptroller or the Chief Financial Officer's

19  Comptroller's representative or the department at a specified

20  time and place and to bring books, records, and documents as

21  specified or to submit books, records, and documents for

22  inspection.  Such subpoenas may be served by an authorized

23  representative of the Chief Financial Officer Comptroller or

24  the department.

25         (4)  In the event of noncompliance with a subpoena

26  issued pursuant to this section, the Chief Financial Officer

27  Comptroller or the department may petition the circuit court

28  of the county in which the person subpoenaed resides or has

29  his or her principal place of business for an order requiring

30  the subpoenaed person to appear and testify and to produce

31  books, records, and documents as specified in the subpoena.

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 1  The court may grant legal, equitable, or injunctive relief,

 2  including, but not limited to, issuance of a writ of ne exeat

 3  or the restraint by injunction or appointment of a receiver of

 4  any transfer, pledge, assignment, or other disposition of such

 5  person's assets or any concealment, alteration, destruction,

 6  or other disposition of subpoenaed books, records, or

 7  documents, as the court deems appropriate, until such person

 8  has fully complied with such subpoena and the Chief Financial

 9  Officer Comptroller or the department has completed the audit,

10  examination, or investigation. The Chief Financial Officer

11  Comptroller or the department is entitled to the summary

12  procedure provided in s. 51.011, and the court shall advance

13  the cause on its calendar. Costs incurred by the Chief

14  Financial Officer Comptroller or the department to obtain an

15  order granting, in whole or in part, such petition for

16  enforcement of a subpoena shall be charged against the

17  subpoenaed person, and failure to comply with such order shall

18  be a contempt of court.

19         Section 33.  Section 17.06, Florida Statutes, is

20  amended to read:

21         17.06  Disallowed items and accounts.--The Chief

22  Financial Officer Comptroller shall erase from any original

23  account all items disallowed by him or her; and when the Chief

24  Financial Officer Comptroller shall reject the whole of any

25  account he or she shall write across the face of it the word

26  "disallowed," and the date, and file the same in the Chief

27  Financial Officer's Comptroller's office or deliver it to the

28  claimant.

29         Section 34.  Subsection (1) of section 17.075, Florida

30  Statutes, is amended to read:

31  

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 1         17.075  Form of state warrants and other payment

 2  orders; rules.--

 3         (1)  The Chief Financial Officer may Department of

 4  Banking and Finance is authorized to establish the form or

 5  forms of state warrants which are to be drawn by it and of

 6  other orders for payment or disbursement of moneys out of the

 7  State Treasury and to change the form thereof from time to

 8  time as the Chief Financial Officer department may consider

 9  necessary or appropriate. Such orders for payment may be in

10  any form, but, regardless of form, each order shall be subject

11  to the accounting and recordkeeping requirements applicable to

12  state warrants.

13         Section 35.  Paragraph (b) of subsection (1) and

14  subsections (3) and (7) of section 17.076, Florida Statutes,

15  are amended to read:

16         17.076  Direct deposit of funds.--

17         (1)  As used in this section:

18         (b)  "Department" means the Department of Financial

19  Services Banking and Finance.

20         (3)  The department may contract with an authorized

21  financial institution for the services necessary to operate

22  the program. In order to implement the provisions of this

23  section, the Chief Financial Officer Comptroller is authorized

24  to deposit with that financial institution the funds payable

25  to the beneficiaries, in lump sum, by Chief Financial

26  Officer's Comptroller's warrant to make the authorized direct

27  deposits.

28         (7)  To cover the department's actual costs for

29  processing the direct deposit of funds other than salary or

30  retirement benefits, the department may charge the beneficiary

31  of the direct deposit a reasonable fee. The department may

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 1  collect the fee by direct receipt from the beneficiary or by

 2  subtracting the amount of the fee from the funds due the

 3  beneficiary.  Such fees collected by the department shall be

 4  deposited into the Department of Financial Services Banking

 5  and Finance Administrative Trust Fund.

 6         Section 36.  Section 17.08, Florida Statutes, is

 7  amended to read:

 8         17.08  Accounts, etc., on which warrants drawn, to be

 9  filed.--All accounts, vouchers, and evidence, upon which

10  warrants have heretofore been, or shall hereafter be, drawn

11  upon the treasury by the Chief Financial Officer Comptroller

12  shall be filed and deposited in the office of Chief Financial

13  Officer Comptroller or the office of the Chief Financial

14  Officer's Comptroller's designee, in accordance with

15  requirements established by the Secretary of State.

16         Section 37.  Section 17.09, Florida Statutes, is

17  amended to read:

18         17.09  Application for warrants for salaries.--All

19  public officers who are entitled to salaries in this state,

20  shall make their application for warrants in writing, stating

21  for what terms and the amount they claim, which written

22  application shall be filed by the Chief Financial Officer

23  Comptroller as vouchers for the warrants issued thereupon.

24         Section 38.  Section 17.10, Florida Statutes, is

25  amended to read:

26         17.10  Record of warrants and of state funds and

27  securities issued.--The Chief Financial Officer Comptroller

28  shall cause to be entered in the warrant register a record of

29  the warrants issued during the previous month, and shall make

30  such entry in the record so required to be kept as shall show

31  the number of each warrant issued, in whose favor drawn, and

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 1  the date it was issued. He or she shall account for all state

 2  funds and securities.

 3         Section 39.  Section 17.11, Florida Statutes, is

 4  amended to read:

 5         17.11  To report disbursements made.--

 6         (1)  The Chief Financial Officer Comptroller shall make

 7  in all his or her future annual reports an exhibit stated from

 8  the record of disbursements made during the fiscal year, and

 9  the several heads of expenditures under which such

10  disbursements were made.

11         (2)  The Chief Financial Officer Comptroller shall also

12  cause to have reported from the Florida Accounting Information

13  Resource Subsystem no less than quarterly the disbursements

14  which agencies made to small businesses, as defined in the

15  Florida Small and Minority Business Assistance Act of 1985; to

16  certified minority business enterprises in the aggregate; and

17  to certified minority business enterprises broken down into

18  categories of minority persons, as well as gender and

19  nationality subgroups. This information shall be made

20  available to the agencies, the Office of Supplier Diversity,

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

22  the House of Representatives. Each agency shall be responsible

23  for the accuracy of information entered into the Florida

24  Accounting Information Resource Subsystem for use in this

25  reporting.

26         Section 40.  Section 17.12, Florida Statutes, is

27  amended to read:

28         17.12  Authorized to issue warrants to tax collector or

29  sheriff for payment.--Whenever it shall appear to the

30  satisfaction of the Chief Financial Officer Comptroller of

31  this state from examination of the books of his or her office

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 1  that the tax collector or the sheriff for any county in this

 2  state has paid into the State Treasury, through mistake or

 3  otherwise, a larger or greater sum than is actually due from

 4  such said collector or sheriff, then the Chief Financial

 5  Officer Comptroller may issue a warrant to such said collector

 6  or sheriff for the sum so found to be overpaid.

 7         Section 41.  Section 17.13, Florida Statutes, is

 8  amended to read:

 9         17.13  To duplicate warrants lost or destroyed.--

10         (1)  The Chief Financial Officer Comptroller is

11  required to duplicate any Chief Financial Officer's

12  Comptroller's warrants that may have been lost or destroyed,

13  or may hereafter be lost or destroyed, upon the owner thereof

14  or the owner's agent or attorney presenting the Chief

15  Financial Officer Comptroller the statement, under oath,

16  reciting the number, date, and amount of any warrant or the

17  best and most definite description in his or her knowledge and

18  the circumstances of its loss; if the Chief Financial Officer

19  Comptroller deems it necessary, the owner or the owner's agent

20  or attorney shall file in the office of the Chief Financial

21  Officer Comptroller a surety bond, or a bond with securities,

22  to be approved by one of the judges of the circuit court or

23  one of the justices of the Supreme Court, in a penalty of not

24  less than twice the amount of any warrants so duplicated,

25  conditioned to indemnify the state and any innocent holders

26  thereof from any damages that may accrue from such

27  duplication.

28         (2)  The Chief Financial Officer Comptroller is

29  required to duplicate any Chief Financial Officer's

30  Comptroller's warrant that may have been lost or destroyed, or

31  may hereafter be lost or destroyed, when sent to any payee via

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 1  any state agency when such warrant is lost or destroyed prior

 2  to being received by the payee and provided the director of

 3  the state agency to whom the warrant was sent presents to the

 4  Chief Financial Officer Comptroller a statement, under oath,

 5  reciting the number, date, and amount of the warrant lost or

 6  destroyed, the circumstances surrounding the loss or

 7  destruction of such warrant, and any additional information

 8  that the Chief Financial Officer Comptroller shall request in

 9  regard to such warrant.

10         (3)  Any duplicate Chief Financial Officer's

11  Comptroller's warrant issued in pursuance of the above

12  provisions shall be of the same validity as the original was

13  before its loss.

14         Section 42.  Section 17.14, Florida Statutes, is

15  amended to read:

16         17.14  To prescribe forms.--The Chief Financial Officer

17  Department of Banking and Finance may prescribe the forms of

18  all papers, vouchers, reports and returns and the manner of

19  keeping the accounts and papers to be used by the officers of

20  this state or other persons having accounts, claims, or

21  demands against the state or entrusted with the collection of

22  any of the revenue thereof or any demand due the same, which

23  form shall be pursued by such officer or other persons.

24         Section 43.  Section 17.16, Florida Statutes, is

25  amended to read:

26         17.16  Seal.--The seal of office of the Chief Financial

27  Officer Comptroller of the state shall have a be the same as

28  the seal heretofore used for that purpose.

29         Section 44.  Section 17.17, Florida Statutes, is

30  amended to read:

31  

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 1         17.17  Examination by Governor and report.--The office

 2  of Chief Financial Officer Comptroller of the state, and the

 3  books, files, documents, records, and papers shall always be

 4  subject to the examination of the Governor of this state, or

 5  any person the Governor may authorize to examine the same; and

 6  on the first day of January of each and every year, or oftener

 7  if called for by the Governor, the Chief Financial Officer

 8  Comptroller shall make a full report of all his or her

 9  official acts and proceedings for the last fiscal year to the

10  Governor, to be laid before the Legislature with the

11  Governor's message, and shall make such further report as the

12  constitution may require.

13         Section 45.  Subsection (1) of section 17.20, Florida

14  Statutes, is amended to read:

15         17.20  Assignment of claims for collection.--

16         (1)  The Department of Financial Services Banking and

17  Finance shall charge the state attorneys with the collection

18  of all claims that are placed in their hands for collection of

19  money or property for the state or any county or special

20  district, or that it otherwise requires them to collect.  The

21  charges are evidence of indebtedness of a state attorney

22  against whom any charge is made for the full amount of the

23  claim, until the charges have been collected and paid into the

24  treasury of the state or of the county or special district or

25  the legal remedies of the state have been exhausted, or until

26  the state attorney demonstrates to the department that the

27  failure to collect the charges is not due to negligence and

28  the department has made a proper entry of satisfaction of the

29  charge against the state attorney.

30         Section 46.  Section 17.21, Florida Statutes, is

31  amended to read:

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 1         17.21  Not to allow any claim of state attorney against

 2  state until report made.--The Chief Financial Officer

 3  Comptroller shall not audit or allow any claim which any state

 4  attorney may have against the state for services who shall

 5  fail to make any report which by law the state attorney is

 6  required to make to the Chief Financial Officer Comptroller of

 7  claims of the state which it is his or her duty to collect.

 8         Section 47.  Section 17.22, Florida Statutes, is

 9  amended to read:

10         17.22  Notice to Department of Legal Affairs.--Whenever

11  the Department of Financial Services Banking and Finance

12  forwards any bond or account or claim for suit to any state

13  attorney, it shall advise the Department of Legal Affairs of

14  the fact, giving it the amount of the claim and other

15  necessary particulars for its full information upon the

16  subject.

17         Section 48.  Section 17.25, Florida Statutes, is

18  amended to read:

19         17.25  May certify copies.--The Chief Financial Officer

20  Comptroller of this state may certify, under his or her seal

21  of office, copies of any record, paper, or document, by law

22  placed in the Chief Financial Officer's Comptroller's custody,

23  keeping, and care; and such certified copy shall have the same

24  force and effect as evidence as the original would have.

25         Section 49.  Subsections (1) and (3) of section 17.26,

26  Florida Statutes, are amended to read:

27         17.26  Cancellation of state warrants not presented

28  within 1 year.--

29         (1)  If any state warrant issued by the Comptroller or

30  the Chief Financial Officer against any fund in the State

31  Treasury is not presented for payment within 1 year after the

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 1  last day of the month in which it was originally issued, the

 2  Chief Financial Officer Comptroller may cancel the warrant and

 3  credit the amount of the warrant to the fund upon which it is

 4  drawn.  If the warrant so canceled was issued against a fund

 5  that is no longer operative, the amount of the warrant shall

 6  be credited to the General Revenue Fund. The Chief Financial

 7  Officer Treasurer shall not honor any state warrant after it

 8  has been canceled.

 9         (3)  When a warrant canceled under subsection (1)

10  represents funds that are in whole or in part derived from

11  federal contributions and disposition of the funds under

12  chapter 717 would cause a loss of the federal contributions,

13  the Governor shall certify to the Chief Financial Officer

14  Comptroller that funds represented by such warrants are for

15  that reason exempt from treatment as unclaimed property.

16  Obligations represented by warrants are unenforceable after 1

17  year from the last day of the month in which the warrant was

18  originally issued.  An action may not be commenced thereafter

19  on the obligation unless authorized by the federal program

20  from which the original warrant was funded and unless payment

21  of the obligation is authorized to be made from the current

22  federal funding.  When a payee or person entitled to a warrant

23  subject to this paragraph requests payment, and payment from

24  current federal funding is authorized by the federal program

25  from which the original warrant was funded, the Chief

26  Financial Officer Comptroller may, upon investigation, issue a

27  new warrant to be paid out of the proper fund in the State

28  Treasury, provided the payee or other person executes under

29  oath the statement required by s. 17.13 or surrenders the

30  canceled warrant.

31  

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 1         Section 50.  Subsections (1), (2), and (3) of section

 2  17.27, Florida Statutes, are amended to read:

 3         17.27  Microfilming and destroying records and

 4  correspondence.--

 5         (1)  The Department of Financial Services Banking and

 6  Finance may destroy general correspondence files and also any

 7  other records which the department may deem no longer

 8  necessary to preserve in accordance with retention schedules

 9  and destruction notices established under rules of the

10  Division of Library and Information Services, records and

11  information management program, of the Department of State.

12  Such schedules and notices relating to financial records of

13  the department shall be subject to the approval of the Auditor

14  General.

15         (2)  The Department of Financial Services Banking and

16  Finance may photograph, microphotograph, or reproduce on film

17  such documents and records as it may select, in such manner

18  that each page will be exposed in exact conformity with the

19  original.

20         (3)  The Department of Financial Services Banking and

21  Finance may destroy any of such said documents after they have

22  been photographed and filed in accordance with the provisions

23  of subsection (1).

24         Section 51.  Section 17.28, Florida Statutes, is

25  amended to read:

26         17.28  Chief Financial Officer Comptroller may

27  authorize biweekly salary payments.--The Chief Financial

28  Officer Comptroller is authorized and may permit biweekly

29  salary payments to personnel upon written request by a

30  specific state agency. The Chief Financial Officer Comptroller

31  

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 1  shall adopt promulgate reasonable rules and regulations to

 2  carry out the intent of this section.

 3         Section 52.  Section 17.29, Florida Statutes, is

 4  amended to read:

 5         17.29  Authority to prescribe rules.--The Chief

 6  Financial Officer may Comptroller has authority to adopt rules

 7  pursuant to ss. 120.54 and 120.536(1) to implement ss.

 8  17.51-17.66 and duties assigned by statute or the State

 9  Constitution. Such rules may include, but are not limited to,

10  the following:

11         (1)  Procedures or policies relating to the processing

12  of payments from salaries, other personal services, or any

13  other applicable appropriation.

14         (2)  Procedures for processing interagency and

15  intraagency payments which do not require the issuance of a

16  state warrant.

17         Section 53.  Section 17.30, Florida Statutes, is

18  amended to read:

19         17.30  Dissemination of information.--The Chief

20  Financial Officer Comptroller may disseminate, in any form or

21  manner he or she considers appropriate, information regarding

22  the Chief Financial Officer's Comptroller's official duties.

23         Section 54.  Section 17.32, Florida Statutes, is

24  amended to read:

25         17.32  Annual report of trust funds; duties of Chief

26  Financial Officer Comptroller.--

27         (1)  On February 1 of each year, the Chief Financial

28  Officer Comptroller shall present to the President of the

29  Senate and the Speaker of the House of Representatives a

30  report listing all trust funds as defined in s. 215.32.  The

31  

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 1  report shall contain the following data elements for each fund

 2  for the preceding fiscal year:

 3         (a)  The fund code.

 4         (b)  The title.

 5         (c)  The fund type according to generally accepted

 6  accounting principles.

 7         (d)  The statutory authority.

 8         (e)  The beginning cash balance.

 9         (f)  Direct revenues.

10         (g)  Nonoperating revenues.

11         (h)  Operating disbursements.

12         (i)  Nonoperating disbursements.

13         (j)  The ending cash balance.

14         (k)  The department and budget entity in which the fund

15  is located.

16         (2)  The report shall separately list all funds that

17  received no revenues other than interest earnings or transfers

18  from the General Revenue Fund or from other trust funds during

19  the preceding fiscal year.

20         (3)  The report shall separately list all funds that

21  had unencumbered balances in excess of $2 million in each of

22  the 2 preceding fiscal years.

23         Section 55.  Section 17.325, Florida Statutes, is

24  amended to read:

25         17.325  Governmental efficiency hotline; duties of

26  Chief Financial Officer Comptroller.--

27         (1)  By September 1, 1992, The Chief Financial Officer

28  Comptroller shall establish and operate a statewide toll-free

29  telephone hotline to receive information or suggestions from

30  the citizens of this state on how to improve the operation of

31  government, increase governmental efficiency, and eliminate

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 1  waste in government. The Chief Financial Officer Comptroller

 2  shall report each month to the Appropriations Committee of the

 3  House of Representatives and of the Senate the information or

 4  suggestions received through the hotline and the evaluations

 5  and determinations made by the affected agency, as provided in

 6  subsection (3), with respect to such information or

 7  suggestions.

 8         (2)  The Chief Financial Officer Comptroller shall

 9  operate the hotline 24 hours a day. The Chief Financial

10  Officer Comptroller shall advertise the availability of the

11  hotline in newspapers of general circulation in this state and

12  shall provide for the posting of notices in conspicuous places

13  in state agency offices, city halls, county courthouses, and

14  places in which there is exposure to significant numbers of

15  the general public, including, but not limited to, local

16  convenience stores, shopping malls, shopping centers, gasoline

17  stations, or restaurants. The Chief Financial Officer

18  Comptroller shall use the slogan "Tell us where we can 'Get

19  Lean'" for the hotline and in advertisements for the hotline.

20         (3)  Each telephone call on the hotline shall be

21  received by the office of the Chief Financial Officer

22  Comptroller, and the office of the Chief Financial Officer

23  Comptroller shall conduct an evaluation to determine if it is

24  appropriate for the telephone call to be processed as a "Get

25  Lean" telephone call. If it is determined that the telephone

26  call should be processed as a "Get Lean" telephone call, a

27  record of each suggestion or item of information received

28  shall be entered into a log kept by the Chief Financial

29  Officer Comptroller. A caller on the hotline may remain

30  anonymous, and, if the caller provides his or her name, the

31  name shall be confidential.  If a caller discloses that he or

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 1  she is a state employee, the Chief Financial Officer

 2  Comptroller, in addition to maintaining a record as required

 3  by this section, may refer any information or suggestion from

 4  the caller to an existing state awards program administered by

 5  the affected agency.  The affected agency shall conduct a

 6  preliminary evaluation of the efficacy of any suggestion or

 7  item of information received through the hotline and shall

 8  provide the Chief Financial Officer Comptroller with a

 9  preliminary determination of the amount of revenues the state

10  might save by implementing the suggestion or making use of the

11  information.

12         (4)  Any person who provides any information through

13  the hotline shall be immune from liability for any use of such

14  information and shall not be subject to any retaliation by any

15  employee of the state for providing such information or making

16  such suggestion.

17         (5)  The Chief Financial Officer Comptroller shall

18  adopt any rule necessary to implement the establishment,

19  operation, and advertisement of the hotline.

20         Section 56.  Section 17.41, Florida Statutes, is

21  amended to read:

22         17.41  Department of Financial Services Banking and

23  Finance Tobacco Settlement Clearing Trust Fund.--

24         (1)  The Department of Financial Services Banking and

25  Finance Tobacco Settlement Clearing Trust Fund is created

26  within that department.

27         (2)  Funds to be credited to the Tobacco Settlement

28  Clearing Trust Fund shall consist of payments received by the

29  state from settlement of State of Florida v. American Tobacco

30  Co., No. 95-1466AH (Fla. 15th Cir. Ct. 1996). Moneys received

31  

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 1  from the settlement and deposited into the trust fund are

 2  exempt from the service charges imposed under s. 215.20.

 3         (3)(a)  Subject to approval of the Legislature, all or

 4  any portion of the state's right, title, and interest in and

 5  to the tobacco settlement agreement may be sold to the Tobacco

 6  Settlement Financing Corporation created pursuant to s.

 7  215.56005.  Any such sale shall be a true sale and not a

 8  borrowing.

 9         (b)  Any moneys received by the state pursuant to any

10  residual interest retained in the tobacco settlement agreement

11  or the payments to be made under the tobacco settlement

12  agreement shall be deposited into the Tobacco Settlement

13  Clearing Trust Fund.

14         (4)  Net proceeds of the sale of the tobacco settlement

15  agreement received by the state shall be immediately deposited

16  into the Lawton Chiles Endowment Fund, created in s. 215.5601,

17  without deposit to the Tobacco Settlement Clearing Trust Fund.

18         (5)  The department shall disburse funds, by

19  nonoperating transfer, from the Tobacco Settlement Clearing

20  Trust Fund to the tobacco settlement trust funds of the

21  various agencies in amounts equal to the annual appropriations

22  made from those agencies' trust funds in the General

23  Appropriations Act.

24         (6)  Pursuant to the provisions of s. 19(f)(3), Art.

25  III of the State Constitution, the Tobacco Settlement Clearing

26  Trust Fund is exempt from the termination provisions of s.

27  19(f)(2), Art. III of the State Constitution.

28         Section 57.  Section 17.43, Florida Statutes, is

29  amended to read:

30         17.43  Chief Financial Officer's Comptroller's Federal

31  Equitable Sharing Trust Fund.--

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 1         (1)  The Chief Financial Officer's Comptroller's

 2  Federal Equitable Sharing Trust Fund is created within the

 3  Department of Financial Services Banking and Finance. The

 4  department may deposit into the trust fund receipts and

 5  revenues received as a result of federal criminal,

 6  administrative, or civil forfeiture proceedings and receipts

 7  and revenues received from federal asset-sharing programs. The

 8  trust fund is exempt from the service charges imposed by s.

 9  215.20.

10         (2)  Notwithstanding the provisions of s. 216.301 and

11  pursuant to s. 216.351, any balance in the trust fund at the

12  end of any fiscal year shall remain in the trust fund at the

13  end of the year and shall be available for carrying out the

14  purposes of the trust fund.

15         Section 58.  Section 18.01, Florida Statutes, is

16  transferred, renumbered as section 17.51, Florida Statutes,

17  and amended to read:

18         17.51 18.01  Oath and certificate of Chief Financial

19  Officer Treasurer.--The Chief Financial Officer Treasurer

20  shall, within 10 days before he or she enters upon the duties

21  of office, take and subscribe an oath or affirmation

22  faithfully to discharge the duties of office, which oath or

23  affirmation must be deposited with the Department of State.

24  The Chief Financial Officer Treasurer shall also file with the

25  Department of State a certificate from the Comptroller

26  attesting that the retiring Treasurer or Chief Financial

27  Officer has turned over vouchers for all payments made as

28  required by law, and that the Treasurer's account has been

29  truly credited with the same, and that he or she has filed

30  receipts from his or her successor for all vouchers paid since

31  the end of last quarter, and for balance of cash, and for all

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 1  bonds and other securities held by the Treasurer or Chief

 2  Financial Officer as such, and a certificate from each board

 3  of which he or she is made by law ex officio treasurer, that

 4  he or she has satisfactorily accounted to such board as its

 5  treasurer.

 6         Section 59.  Section 18.02, Florida Statutes, is

 7  transferred, renumbered as section 17.52, Florida Statutes,

 8  and amended to read:

 9         17.52 18.02  Moneys paid on warrants.--The Division of

10  Treasury Treasurer shall pay all warrants on the treasury

11  drawn by the Chief Financial Officer or Comptroller and other

12  orders by the Chief Financial Officer or Comptroller for the

13  disbursement of state funds by electronic means or by means of

14  a magnetic tape or any other transfer medium. No moneys shall

15  be paid out of the treasury except on such warrants or other

16  orders of the Chief Financial Officer or Comptroller.

17         Section 60.  Section 18.021, Florida Statutes, is

18  transferred, renumbered as section 17.53, Florida Statutes,

19  and amended to read:

20         17.53 18.021  Chief Financial Officer Treasurer to

21  operate personal check-cashing service.--

22         (1)  The Chief Financial Officer Treasurer is

23  authorized to operate a personal check-cashing service or a

24  remote financial service unit at the capitol for the benefit

25  of state employees or other responsible persons who properly

26  identify themselves.

27         (2)  If a personal check is dishonored or a state

28  warrant is forged and the Chief Financial Officer Treasurer

29  has made diligent but unsuccessful effort to collect and has

30  forwarded the returned check for prosecution by the

31  appropriate state attorney, then he or she may include such

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 1  amount in his or her budget request to be considered during

 2  the next legislative session.

 3         Section 61.  Section 18.05, Florida Statutes, is

 4  transferred, renumbered as section 17.54, Florida Statutes,

 5  and amended to read:

 6         17.54 18.05  Annual report to Governor.--The Chief

 7  Financial Officer Treasurer shall make a report in detail to

 8  the Governor, with a copy to the President of the Senate and

 9  the Speaker of the House of Representatives as soon after the

10  1st day of July of each year as it is practicable to prepare

11  same of the transactions of the Division of Treasury his or

12  her office for the preceding fiscal year, embracing a

13  statement of the receipts and payments on account of each of

14  the several funds of which he or she has the care and custody.

15         Section 62.  Section 18.06, Florida Statutes, is

16  transferred, renumbered as section 17.55, Florida Statutes,

17  and amended to read:

18         17.55 18.06  Examination by and monthly statements to

19  the Governor.--The office of the Chief Financial Officer

20  Treasurer of this state, and the books, files, documents,

21  records, and papers thereof, shall always be subject to the

22  examination of the Governor of the state, or any person he or

23  she may authorize to examine same. The Chief Financial Officer

24  Treasurer shall exhibit to the Governor monthly a trial

25  balance sheet from the Division of Treasury his or her books

26  and a statement of all the credits, moneys, or effects on hand

27  on the day for which such said trial balance sheet is made,

28  and such said statement accompanying such said trial balance

29  sheet shall particularly describe the exact character of

30  funds, credits, and securities, and shall state in detail the

31  amount which he or she may have representing cash, including

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 1  any not yet entered upon the books of his or her office, and

 2  such statement shall be certified and signed by the Chief

 3  Financial Officer Treasurer officially.

 4         Section 63.  Section 18.08, Florida Statutes, is

 5  transferred, renumbered as section 17.56, Florida Statutes,

 6  and amended to read:

 7         17.56 18.08  Division of Treasury Treasurer to turn

 8  over to the Division of Accounting and Auditing Comptroller

 9  all warrants paid.--The Division of Treasury Treasurer shall

10  turn over to the Division of Accounting and Auditing

11  Comptroller, through the data service center, all warrants

12  drawn by the Chief Financial Officer or the Comptroller and

13  paid by the Division of Treasury Treasurer.  The Said warrants

14  shall be turned over as soon as the Division of Treasury

15  Treasurer shall have recorded such warrants and charged the

16  same against the accounts upon which such warrants are drawn.

17         Section 64.  Section 18.10, Florida Statutes, is

18  transferred, renumbered as section 17.57, Florida Statutes,

19  and amended to read:

20         17.57 18.10  Deposits and investments of state money.--

21         (1)  The Chief Financial Officer Treasurer, or other

22  parties with the permission of the Chief Financial Officer

23  Treasurer, shall deposit the money of the state or any money

24  in the State Treasury in such qualified public depositories of

25  the state as will offer satisfactory collateral security for

26  such deposits, pursuant to chapter 280. It is the duty of the

27  Chief Financial Officer Treasurer, consistent with the cash

28  requirements of the state, to keep such money fully invested

29  or deposited as provided herein in order that the state may

30  realize maximum earnings and benefits.

31  

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 1         (2)  The Chief Financial Officer Treasurer shall make

 2  funds available to meet the disbursement needs of the state.

 3  Funds that which are not needed for this purpose shall be

 4  placed in qualified public depositories that will pay rates

 5  established by the Chief Financial Officer Treasurer at levels

 6  not less than the prevailing rate for United States Treasury

 7  securities with a corresponding maturity. In the event money

 8  is available for interest-bearing time deposits or savings

 9  accounts as provided herein and qualified public depositories

10  are unwilling to accept such money and pay thereon the rates

11  established above, then such money which qualified public

12  depositories are unwilling to accept shall be invested in:

13         (a)  Direct United States Treasury obligations.

14         (b)  Obligations of the Federal Farm Credit Banks.

15         (c)  Obligations of the Federal Home Loan Bank and its

16  district banks.

17         (d)  Obligations of the Federal Home Loan Mortgage

18  Corporation, including participation certificates.

19         (e)  Obligations guaranteed by the Government National

20  Mortgage Association.

21         (f)  Obligations of the Federal National Mortgage

22  Association.

23         (g)  Commercial paper of prime quality of the highest

24  letter and numerical rating as provided for by at least one

25  nationally recognized rating service.

26         (h)  Time drafts or bills of exchange drawn on and

27  accepted by a commercial bank, otherwise known as "bankers

28  acceptances," which are accepted by a member bank of the

29  Federal Reserve System having total deposits of not less than

30  $400 million or which are accepted by a commercial bank which

31  is not a member of the Federal Reserve System with deposits of

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 1  not less than $400 million and which is licensed by a state

 2  government or the Federal Government, and whose senior debt

 3  issues are rated in one of the two highest rating categories

 4  by a nationally recognized rating service and which are held

 5  in custody by a domestic bank which is a member of the Federal

 6  Reserve System.

 7         (i)  Corporate obligations or corporate master notes of

 8  any corporation within the United States, if the long-term

 9  obligations of such corporation are rated by at least two

10  nationally recognized rating services in any one of the four

11  highest classifications. However, if such obligations are

12  rated by only one nationally recognized rating service, then

13  the obligations shall be rated in any one of the two highest

14  classifications.

15         (j)  Obligations of the Student Loan Marketing

16  Association.

17         (k)  Obligations of the Resolution Funding Corporation.

18         (l)  Asset-backed or mortgage-backed securities of the

19  highest credit quality.

20         (m)  Any obligations not previously listed which are

21  guaranteed as to principal and interest by the full faith and

22  credit of the United States Government or are obligations of

23  United States agencies or instrumentalities which are rated in

24  the highest category by a nationally recognized rating

25  service.

26         (n)  Commingled no-load investment funds or no-load

27  mutual funds in which all securities held by the funds are

28  authorized in this subsection.

29         (o)  Money market mutual funds as defined and regulated

30  by the Securities and Exchange Commission.

31  

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 1         (p)  Obligations of state and local governments rated

 2  in any of the four highest classifications by at least two

 3  nationally recognized rating services. However, if such

 4  obligations are rated by only one nationally recognized rating

 5  service, then the obligations shall be rated in any one of the

 6  two highest classifications.

 7         (q)  Derivatives of investment instruments authorized

 8  in paragraphs (a)-(m).

 9         (r)  Covered put and call options on investment

10  instruments authorized in this subsection for the purpose of

11  hedging transactions by investment managers to mitigate risk

12  or to facilitate portfolio management.

13         (s)  Negotiable certificates of deposit issued by

14  financial institutions whose long-term debt is rated in one of

15  the three highest categories by at least two nationally

16  recognized rating services, the investment in which shall not

17  be prohibited by any provision of chapter 280.

18         (t)  Foreign bonds denominated in United States dollars

19  and registered with the Securities and Exchange Commission for

20  sale in the United States, if the long-term obligations of

21  such issuers are rated by at least two nationally recognized

22  rating services in any one of the four highest

23  classifications. However, if such obligations are rated by

24  only one nationally recognized rating service, the obligations

25  shall be rated in any one of the two highest classifications.

26         (u)  Convertible debt obligations of any corporation

27  domiciled within the United States, if the convertible debt

28  issue is rated by at least two nationally recognized rating

29  services in any one of the four highest classifications.

30  However, if such obligations are rated by only one nationally

31  

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 1  recognized rating service, then the obligations shall be rated

 2  in any one of the two highest classifications.

 3         (v)  Securities not otherwise described in this

 4  subsection. However, not more than 3 percent of the funds

 5  under the control of the Chief Financial Officer Treasurer

 6  shall be invested in securities described in this paragraph.

 7  

 8  These investments may be in varying maturities and may be in

 9  book-entry form. Investments made pursuant to this subsection

10  may be under repurchase agreement. The Chief Financial Officer

11  may Treasurer is authorized to hire registered investment

12  advisers and other consultants to assist in investment

13  management and to pay fees directly from investment earnings.

14  Investment securities, proprietary investment services related

15  to contracts, performance evaluation services,

16  investment-related equipment or software used directly to

17  assist investment trading or investment accounting operations

18  including bond calculators, telerates, Bloombergs, special

19  program calculators, intercom systems, and software used in

20  accounting, communications, and trading, and advisory and

21  consulting contracts made under this section are exempt from

22  the provisions of chapter 287.

23         (3)  In the event the financial institutions in the

24  state do not make sufficient loan funds available for a

25  residential conservation program pursuant to any plan approved

26  by the Florida Public Service Commission under the Florida

27  Energy Efficiency and Conservation Act, the board may

28  authorize the investment of state funds, except retirement

29  trust funds, in such a loan program at rates not less than

30  prevailing United States Treasury bill rates. However, prior

31  to investment of such funds, the Florida Public Service

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 1  Commission shall develop a plan which must be approved by the

 2  Legislature before implementation.

 3         (4)  All earnings on any investments made pursuant to

 4  this section shall be credited to the General Revenue Fund,

 5  except that earnings attributable to moneys made available

 6  pursuant to s. 17.61(3) s. 18.125(3) shall be credited pro

 7  rata to the funds from which such moneys were made available.

 8         (5)  The fact that a municipal officer or a state

 9  officer, including an officer of any municipal or state

10  agency, board, bureau, commission, institution, or department,

11  is a stockholder or an officer or director of a bank or

12  savings and loan association will not bar such bank or savings

13  and loan association from being a depository of funds coming

14  under the jurisdiction of any such municipal officer or state

15  officer if it shall appear in the records of the municipal or

16  state office that the governing body of such municipality or

17  state agency has investigated and determined that such

18  municipal or state officer is not favoring such banks or

19  savings and loan associations over other qualified banks or

20  savings and loan associations.

21         (6)  The Chief Financial Officer Treasurer is

22  designated the cash management officer for the state and is

23  charged with the coordination and supervision of procedures

24  providing for the efficient handling of financial assets under

25  the control of the State Treasury and each of the various

26  state agencies, and of the judicial branch, as defined in s.

27  216.011. This responsibility shall include the supervision and

28  approval of all banking relationships.  Pursuant to this

29  responsibility, the Chief Financial Officer may Treasurer is

30  authorized to obtain information from financial institutions

31  

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 1  regarding depository accounts maintained by any agency or

 2  institution of the State of Florida.

 3         Section 65.  Section 18.101, Florida Statutes, is

 4  transferred, renumbered as section 17.58, Florida Statutes,

 5  and amended to read:

 6         17.58 18.101  Deposits of public money outside the

 7  State Treasury; revolving funds.--

 8         (1)  All moneys collected by state agencies, boards,

 9  bureaus, commissions, institutions, and departments shall,

10  except as otherwise provided by law, be deposited in the State

11  Treasury. However, when the volume and complexity of

12  collections so justify, the Chief Financial Officer Treasurer

13  may give written approval for such moneys to be deposited in

14  clearing accounts outside the State Treasury in qualified

15  public depositories pursuant to chapter 280. Such deposits

16  shall only be made in depositories designated by the Chief

17  Financial Officer Treasurer. No money may be maintained in

18  such clearing accounts for a period longer than approved by

19  the Chief Financial Officer Treasurer or 40 days, whichever is

20  shorter, prior to its being transmitted to the Chief Financial

21  Officer Treasurer or to an account designated by him or her,

22  distributed to a statutorily authorized account outside the

23  State Treasury, refunded, or transmitted to the Department of

24  Revenue. All depositories so designated shall pledge

25  sufficient collateral to be security for such funds as

26  provided in chapter 280.

27         (2)  Revolving funds authorized by the Chief Financial

28  Officer Comptroller for all state agencies, boards, bureaus,

29  commissions, institutions, and departments may be deposited by

30  such agencies, boards, bureaus, commissions, institutions, and

31  departments in qualified public depositories designated by the

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 1  Chief Financial Officer Treasurer for such revolving fund

 2  deposits; and the depositories in which such deposits are made

 3  shall pledge collateral security as provided in chapter 280.

 4         (3)  Notwithstanding the foregoing provisions, clearing

 5  and revolving accounts may be established outside the state

 6  when necessary to facilitate the authorized operations of any

 7  agency, board, bureau, commission, institution, or department.

 8  Any of such accounts established in the United States shall be

 9  subject to the collateral security requirements of chapter

10  280. Accounts established outside the United States may be

11  exempted from the requirements of chapter 280 as provided in

12  chapter 280; but before any unsecured account is established,

13  the agency requesting or maintaining the account shall

14  recommend a financial institution to the Chief Financial

15  Officer Treasurer for designation to hold the account and

16  shall submit evidence of the financial condition, size,

17  reputation, and relative prominence of the institution from

18  which the Chief Financial Officer Treasurer can reasonably

19  conclude that the institution is financially sound before

20  designating it to hold the account.

21         (4)  Each department shall furnish a statement to the

22  Chief Financial Officer Treasurer, on or before the 20th of

23  the month following the end of each calendar quarter, listing

24  each clearing account and revolving fund within that

25  department's jurisdiction. Such statement shall report, as of

26  the last day of the calendar quarter, the cash balance in each

27  revolving fund and that portion of the cash balance in each

28  clearing account that will eventually be deposited to the

29  State Treasury as provided by law. The Chief Financial Officer

30  Treasurer shall show the sum total of state funds in clearing

31  accounts and revolving funds, as most recently reported to the

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 1  Chief Financial Officer Treasurer by various departments, in

 2  his or her monthly statement to the Governor, pursuant to s.

 3  17.55 s. 18.06.

 4         Section 66.  Section 18.103, Florida Statutes, is

 5  transferred, renumbered as section 17.59, Florida Statutes,

 6  and amended to read:

 7         17.59 18.103  Safekeeping services of Treasurer.--

 8         (1)  The Chief Financial Officer Treasurer may accept

 9  for safekeeping purposes, deposits of cash, securities, and

10  other documents or articles of value from any state agency as

11  defined in s. 216.011, or any county, city, or political

12  subdivision thereof, or other public authority.

13         (2)  The Chief Financial Officer Treasurer may, in his

14  or her discretion, establish a fee for processing, servicing,

15  and safekeeping deposits and other documents or articles of

16  value held in the Chief Financial Officer's Treasurer's vaults

17  as requested by the various entities or as provided for by

18  law.  Such fee shall be equivalent to the fee charged by

19  financial institutions for processing, servicing, and

20  safekeeping the same types of deposits and other documents or

21  articles of value.

22         (3)  The Chief Financial Officer Treasurer shall

23  collect in advance, and persons so served shall pay to the

24  Chief Financial Officer Treasurer in advance, the

25  miscellaneous charges as follows:

26         (a)  For copies of documents or records on file with

27  the Chief Financial Officer Treasurer, per page..........$.50.

28         (b)  For each certificate of the Chief Financial

29  Officer Treasurer, certified or under the Chief Financial

30  Officer's Treasurer's seal, authenticating any document or

31  other instrument........................................$5.00.

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 1         (4)  All fees collected for the services described in

 2  this section shall be deposited in the Treasury Treasurer's

 3  Administrative and Investment Trust Fund.

 4         Section 67.  Section 18.104, Florida Statutes, is

 5  transferred, renumbered as section 17.60, Florida Statutes,

 6  and amended to read:

 7         17.60 18.104  Treasury Cash Deposit Trust Fund.--

 8         (1)  There is hereby created in the State Treasury the

 9  Treasury Cash Deposit Trust Fund.  Cash deposits made pursuant

10  to s. 17.59 s. 18.103 shall be deposited into this fund.

11         (2)  Interest earned on cash deposited into this fund

12  shall be prorated and paid to the depositing entities.

13         Section 68.  Section 18.125, Florida Statutes, is

14  transferred, renumbered as section 17.61, Florida Statutes,

15  and amended to read:

16         17.61 18.125  Chief Financial Officer Treasurer; powers

17  and duties in the investment of certain funds.--

18         (1)  The Chief Financial Officer Treasurer, acting with

19  the approval of a majority of the State Board of

20  Administration, shall invest all general revenue funds and all

21  the trust funds and all agency funds of each state agency, and

22  of the judicial branch, as defined in s. 216.011, and may,

23  upon request, invest funds of any statutorily created board,

24  association, or entity, except for the funds required to be

25  invested pursuant to ss. 215.44-215.53, by the procedure and

26  in the authorized securities prescribed in s. 17.57 s. 18.10;

27  for this purpose, the Chief Financial Officer may Treasurer

28  shall be authorized to open and maintain one or more demand

29  and safekeeping accounts in any bank or savings association

30  for the investment and reinvestment and the purchase, sale,

31  and exchange of funds and securities in the accounts.  Funds

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 1  in such accounts used solely for investments and reinvestments

 2  shall be considered investment funds and not funds on deposit,

 3  and such funds shall be exempt from the provisions of chapter

 4  280.  In addition, the securities or investments purchased or

 5  held under the provisions of this section and s. 17.57 s.

 6  18.10 may be loaned to securities dealers and banks and may be

 7  registered by the Chief Financial Officer Treasurer in the

 8  name of a third-party nominee in order to facilitate such

 9  loans, provided the loan is collateralized by cash or United

10  States government securities having a market value of at least

11  100 percent of the market value of the securities loaned. The

12  Chief Financial Officer Treasurer shall keep a separate

13  account, designated by name and number, of each fund.

14  Individual transactions and totals of all investments, or the

15  share belonging to each fund, shall be recorded in the

16  accounts.

17         (2)  By and with the consent and approval of any

18  constitutional board, the judicial branch, or agency now

19  having the constitutional power to make investments and in

20  accordance with this section, the Chief Financial Officer may

21  Treasurer shall have the power to make purchases, sales,

22  exchanges, investments, and reinvestments for and on behalf of

23  any such board.

24         (3)(a)  It is the duty of each state agency, and of the

25  judicial branch, now or hereafter charged with the

26  administration of the funds referred to in subsection (1) to

27  make such moneys available for investment as fully as is

28  consistent with the cash requirements of the particular fund

29  and to authorize investment of such moneys by the Chief

30  Financial Officer Treasurer.

31  

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 1         (b)  Monthly, and more often as circumstances require,

 2  such agency or judicial branch shall notify the Chief

 3  Financial Officer Treasurer of the amount available for

 4  investment; and the moneys shall be invested by the Chief

 5  Financial Officer Treasurer.  Such notification shall include

 6  the name and number of the fund for which the investments are

 7  to be made and the life of the investment if the principal sum

 8  is to be required for meeting obligations.  This subsection,

 9  however, shall not be construed to make available for

10  investment any funds other than those referred to in

11  subsection (1).

12         (4)(a)  There is hereby created in the State Treasury

13  the Treasury Treasurer's Administrative and Investment Trust

14  Fund.

15         (b)  The Chief Financial Officer Treasurer shall make

16  an annual assessment of 0.12 percent against the average daily

17  balance of those moneys made available pursuant to this

18  section and 0.2 percent against the average daily balance of

19  those funds requiring investment in a separate account. The

20  proceeds of this assessment shall be deposited in the Treasury

21  Treasurer's Administrative and Investment Trust Fund.

22         (c)  The moneys so received and deposited in the fund

23  shall be used by the Chief Financial Officer Treasurer to

24  defray the expense of his or her office in the discharge of

25  the administrative and investment powers and duties prescribed

26  by this section and this chapter, including the maintaining of

27  an office and necessary supplies therefor, essential equipment

28  and other materials, salaries and expenses of required

29  personnel, and all other legitimate expenses relating to the

30  administrative and investment powers and duties imposed upon

31  and charged to the Chief Financial Officer Treasurer under

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 1  this section and this chapter. The unencumbered balance in the

 2  trust fund at the close of each quarter shall not exceed

 3  $750,000. Any funds in excess of this amount shall be

 4  transferred unallocated to the General Revenue Fund. However,

 5  fees received from deferred compensation participants pursuant

 6  to s. 112.215 shall not be transferred to the General Revenue

 7  Fund and shall be used to operate the deferred compensation

 8  program.

 9         (5)  The transfer of the powers, duties, and

10  responsibilities of existing state agencies and of the

11  judicial branch made by this section to the Chief Financial

12  Officer Treasurer shall include only the particular powers,

13  duties, and responsibilities hereby transferred, and all other

14  existing powers shall in no way be affected by this section.

15         Section 69.  Section 18.15, Florida Statutes, is

16  transferred, renumbered as section 17.62, Florida Statutes,

17  and amended to read:

18         17.62 18.15  Interest on state moneys deposited; when

19  paid.--Interest on state moneys deposited in qualified public

20  depositories under s. 17.57 s. 18.10 shall be payable to the

21  Chief Financial Officer Treasurer quarterly or semiannually.

22         Section 70.  Section 18.17, Florida Statutes, is

23  transferred, renumbered as section 17.63, Florida Statutes,

24  and amended to read:

25         17.63 18.17  Chief Financial Officer Treasurer not to

26  issue evidences of indebtedness.--It is not lawful for the

27  Chief Financial Officer Treasurer of this state to issue any

28  treasury certificates, or any other evidences of indebtedness,

29  for any purpose whatever, and the Chief Financial Officer

30  Treasurer is prohibited from issuing the same.

31  

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 1         Section 71.  Section 18.20, Florida Statutes, is

 2  transferred, renumbered as section 17.64, Florida Statutes,

 3  and amended to read:

 4         17.64 18.20  Chief Financial Officer Treasurer to make

 5  reproductions of certain warrants, records, and documents.--

 6         (1)  All vouchers or checks heretofore or hereafter

 7  drawn by appropriate court officials of the several counties

 8  of the state against money deposited with the Treasurer under

 9  the provisions of s. 43.17, and paid by the Treasurer, may be

10  photographed, microphotographed, or reproduced on film by the

11  Treasurer. Such photographic film shall be durable material

12  and the device used to so reproduce such warrants, vouchers,

13  or checks shall be one which accurately reproduces the

14  originals thereof in all detail; and such photographs,

15  microphotographs, or reproductions on film shall be placed in

16  conveniently accessible and identified files and shall be

17  preserved by the Treasurer as a part of the permanent records

18  of office.  When any such warrants, vouchers, or checks have

19  been so photographed, microphotographed, or reproduced on

20  film, and the photographs, microphotographs, or reproductions

21  on film thereof have been placed in files as a part of the

22  permanent records of the office of the Treasurer as aforesaid,

23  the Treasurer is authorized to return such warrants, vouchers,

24  or checks to the offices of the respective county officials

25  who drew the same and such warrants, vouchers, or checks shall

26  be retained and preserved in such offices to which returned as

27  a part of the permanent records of such offices.

28         (1)(2)  Such Photographs, microphotographs, or

29  reproductions on film of such said warrants, vouchers, or

30  checks shall be deemed to be original records for all

31  purposes; and any copy or reproduction thereof made from such

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 1  original film, duly certified by the Chief Financial Officer

 2  Treasurer as a true and correct copy or reproduction made from

 3  such film, shall be deemed to be a transcript, exemplification

 4  or certified copy of the original warrant, voucher, or check

 5  such copy represents, and shall in all cases and in all courts

 6  and places be admitted and received in evidence with the like

 7  force and effect as the original thereof might be.

 8         (2)(3)  The Chief Financial Officer Treasurer is also

 9  hereby authorized to photograph, microphotograph, or reproduce

10  on film, all records and documents of such said office, as the

11  Chief Financial Officer Treasurer may, in his or her

12  discretion, selects select; and the Chief Financial Officer

13  said Treasurer is hereby authorized to destroy any such of the

14  said documents or records after they have been photographed

15  and filed and after audit of the Chief Financial Officer's

16  Treasurer's office has been completed for the period embracing

17  the dates of such said documents and records.

18         (3)(4)  Photographs or microphotographs in the form of

19  film or prints of any records made in compliance with the

20  provisions of this section shall have the same force and

21  effect as the originals thereof would have, and shall be

22  treated as originals for the purpose of their admissibility in

23  evidence. Duly certified or authenticated reproductions of

24  such photographs or microphotographs shall be admitted in

25  evidence equally with the original photographs or

26  microphotographs.

27         Section 72.  Section 18.23, Florida Statutes, is

28  transferred, renumbered as section 17.65, Florida Statutes,

29  and amended to read:

30         17.65 18.23  Chief Financial Officer Treasurer to

31  prescribe forms.--The Chief Financial Officer Treasurer may

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 1  prescribe the forms, and the manner of keeping the same, for

 2  all receipts, credit advices, abstracts, reports, and other

 3  papers furnished the Chief Financial Officer Treasurer by the

 4  officers of this state or other persons or entities as a

 5  result of their having, or depositing, state moneys.

 6         Section 73.  Section 18.24, Florida Statutes, is

 7  transferred, renumbered as section 17.66, Florida Statutes,

 8  and amended to read:

 9         17.66 18.24  Securities in book-entry form.--Any

10  security which:

11         (1)(a)  Is eligible to be held in book-entry form on

12  the books of the Federal Reserve Book-Entry System; or

13         (b)  Is eligible for deposit in a depository trust

14  clearing system established to hold and transfer securities by

15  computerized book-entry systems; and which

16         (2)(a)  Is held in the name of the Chief Financial

17  Officer, in the name of the State Treasurer, or in the name of

18  the State Insurance Commissioner; or

19         (b)  Is pledged to the Chief Financial Officer, to the

20  State Treasurer, or to the State Insurance Commissioner;

21  

22  under any state law for any purpose whatsoever, may be held in

23  book-entry form on the books of the Federal Reserve Book-Entry

24  System or on deposit in a depository trust clearing system.

25         Section 74.  Subsection (3) of section 20.04, Florida

26  Statutes, is amended to read:

27         20.04  Structure of executive branch.--The executive

28  branch of state government is structured as follows:

29         (3)  For their internal structure, all departments,

30  except for the Department of Financial Services Banking and

31  Finance, the Department of Children and Family Services, the

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 1  Department of Corrections, the Department of Management

 2  Services, the Department of Revenue, and the Department of

 3  Transportation, must adhere to the following standard terms:

 4         (a)  The principal unit of the department is the

 5  "division." Each division is headed by a "director."

 6         (b)  The principal unit of the division is the

 7  "bureau." Each bureau is headed by a "chief."

 8         (c)  The principal unit of the bureau is the "section."

 9  Each section is headed by an "administrator."

10         (d)  If further subdivision is necessary, sections may

11  be divided into "subsections," which are headed by

12  "supervisors."

13         Section 75.  Paragraph (h) of subsection (5) of section

14  20.055, Florida Statutes, is amended to read:

15         20.055  Agency inspectors general.--

16         (5)  In carrying out the auditing duties and

17  responsibilities of this act, each inspector general shall

18  review and evaluate internal controls necessary to ensure the

19  fiscal accountability of the state agency. The inspector

20  general shall conduct financial, compliance, electronic data

21  processing, and performance audits of the agency and prepare

22  audit reports of his or her findings. The scope and assignment

23  of the audits shall be determined by the inspector general;

24  however, the agency head may at any time direct the inspector

25  general to perform an audit of a special program, function, or

26  organizational unit. The performance of the audit shall be

27  under the direction of the inspector general, except that if

28  the inspector general does not possess the qualifications

29  specified in subsection (4), the director of auditing shall

30  perform the functions listed in this subsection.

31  

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 1         (h)  The inspector general shall develop long-term and

 2  annual audit plans based on the findings of periodic risk

 3  assessments. The plan, where appropriate, should include

 4  postaudit samplings of payments and accounts. The plan shall

 5  show the individual audits to be conducted during each year

 6  and related resources to be devoted to the respective audits.

 7  The Chief Financial Officer Comptroller, to assist in

 8  fulfilling the responsibilities for examining, auditing, and

 9  settling accounts, claims, and demands pursuant to s.

10  17.03(1), and examining, auditing, adjusting, and settling

11  accounts pursuant to s. 17.04, may utilize audits performed by

12  the inspectors general and internal auditors. For state

13  agencies under the Governor, the audit plans shall be

14  submitted to the Governor's Chief Inspector General. The plan

15  shall be submitted to the agency head for approval. A copy of

16  the approved plan shall be submitted to the Auditor General.

17         Section 76.  Section 20.195, Florida Statutes, is

18  amended to read:

19         20.195  Department of Children and Family Services

20  Tobacco Settlement Trust Fund.--

21         (1)  The Department of Children and Family Services

22  Tobacco Settlement Trust Fund is created within that

23  department. Funds to be credited to the trust fund shall

24  consist of funds disbursed, by nonoperating transfer, from the

25  Department of Financial Services Banking and Finance Tobacco

26  Settlement Clearing Trust Fund in amounts equal to the annual

27  appropriations made from this trust fund.

28         (2)  Notwithstanding the provisions of s. 216.301 and

29  pursuant to s. 216.351, any unencumbered balance in the trust

30  fund at the end of any fiscal year and any encumbered balance

31  remaining undisbursed on December 31 of the same calendar year

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 1  shall revert to the Department of Financial Services Banking

 2  and Finance Tobacco Settlement Clearing Trust Fund.

 3         Section 77.  Section 20.425, Florida Statutes, is

 4  amended to read:

 5         20.425  Agency for Health Care Administration Tobacco

 6  Settlement Trust Fund.--

 7         (1)  The Agency for Health Care Administration Tobacco

 8  Settlement Trust Fund is created within the agency. Funds to

 9  be credited to the trust fund shall consist of funds

10  disbursed, by nonoperating transfer, from the Department of

11  Financial Services Banking and Finance Tobacco Settlement

12  Clearing Trust Fund in amounts equal to the annual

13  appropriations made from this trust fund.

14         (2)  Notwithstanding the provisions of s. 216.301 and

15  pursuant to s. 216.351, any unencumbered balance in the trust

16  fund at the end of any fiscal year and any encumbered balance

17  remaining undisbursed on December 31 of the same calendar year

18  shall revert to the Department of Financial Services Banking

19  and Finance Tobacco Settlement Clearing Trust Fund.

20         Section 78.  Paragraph (g) of subsection (1) of section

21  20.435, Florida Statutes, is amended to read:

22         20.435  Department of Health; trust funds.--

23         (1)  The following trust funds are hereby created, to

24  be administered by the Department of Health:

25         (g)  Department of Health Tobacco Settlement Trust

26  Fund.

27         1.  Funds to be credited to the trust fund shall

28  consist of funds disbursed, by nonoperating transfer, from the

29  Department of Financial Services Banking and Finance Tobacco

30  Settlement Clearing Trust Fund in amounts equal to the annual

31  appropriations made from this trust fund.

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 1         2.  Notwithstanding the provisions of s. 216.301 and

 2  pursuant to s. 216.351, any unencumbered balance in the trust

 3  fund at the end of any fiscal year and any encumbered balance

 4  remaining undisbursed on December 31 of the same calendar year

 5  shall revert to the Department of Financial Services Banking

 6  and Finance Tobacco Settlement Clearing Trust Fund.

 7         Section 79.  Subsection (4) of section 24.105, Florida

 8  Statutes, is amended to read:

 9         24.105  Powers and duties of department.--The

10  department shall:

11         (4)  Submit monthly and annual reports to the Governor,

12  the Chief Financial Officer Treasurer, the President of the

13  Senate, and the Speaker of the House of Representatives

14  disclosing the total lottery revenues, prize disbursements,

15  and other expenses of the department during the preceding

16  month.  The annual report shall additionally describe the

17  organizational structure of the department, including its

18  hierarchical structure, and shall identify the divisions and

19  bureaus created by the secretary and summarize the

20  departmental functions performed by each.

21         Section 80.  Subsection (5) of section 24.111, Florida

22  Statutes, is amended to read:

23         24.111  Vendors; disclosure and contract

24  requirements.--

25         (5)  Each vendor in a major procurement in excess of

26  $25,000, and any other vendor if the department deems it

27  necessary to protect the state's financial interest, shall, at

28  the time of executing the contract with the department, post

29  an appropriate bond with the department in an amount

30  determined by the department to be adequate to protect the

31  state's interests, but not higher than the full amount

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 1  estimated to be paid annually to the vendor under the

 2  contract.  In lieu of the bond, a vendor may, to assure the

 3  faithful performance of its obligations, file with the

 4  department an irrevocable letter of credit acceptable to the

 5  department in an amount determined by the department to be

 6  adequate to protect the state's interests or deposit and

 7  maintain with the Chief Financial Officer Treasurer securities

 8  that are interest bearing or accruing and that, with the

 9  exception of those specified in paragraphs (a) and (b), are

10  rated in one of the four highest classifications by an

11  established nationally recognized investment rating service.

12  Securities eligible under this subsection shall be limited to:

13         (a)  Certificates of deposit issued by solvent banks or

14  savings associations organized and existing under the laws of

15  this state or under the laws of the United States and having

16  their principal place of business in this state.

17         (b)  United States bonds, notes, and bills for which

18  the full faith and credit of the government of the United

19  States is pledged for the payment of principal and interest.

20         (c)  General obligation bonds and notes of any

21  political subdivision of the state.

22         (d)  Corporate bonds of any corporation that is not an

23  affiliate or subsidiary of the depositor.

24  

25  Such securities shall be held in trust and shall have at all

26  times a market value at least equal to an amount determined by

27  the department to be adequate to protect the state's

28  interests, which amount shall not be set higher than the full

29  amount estimated to be paid annually to the vendor under

30  contract.

31  

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 1         Section 81.  Paragraph (b) of subsection (9) of section

 2  24.112, Florida Statutes, is amended to read:

 3         24.112  Retailers of lottery tickets.--

 4         (9)

 5         (b)  In lieu of such bond, the department may purchase

 6  blanket bonds covering all or selected retailers or may allow

 7  a retailer to deposit and maintain with the Chief Financial

 8  Officer Treasurer securities that are interest bearing or

 9  accruing and that, with the exception of those specified in

10  subparagraphs 1. and 2., are rated in one of the four highest

11  classifications by an established nationally recognized

12  investment rating service.  Securities eligible under this

13  paragraph shall be limited to:

14         1.  Certificates of deposit issued by solvent banks or

15  savings associations organized and existing under the laws of

16  this state or under the laws of the United States and having

17  their principal place of business in this state.

18         2.  United States bonds, notes, and bills for which the

19  full faith and credit of the government of the United States

20  is pledged for the payment of principal and interest.

21         3.  General obligation bonds and notes of any political

22  subdivision of the state.

23         4.  Corporate bonds of any corporation that is not an

24  affiliate or subsidiary of the depositor.

25  

26  Such securities shall be held in trust and shall have at all

27  times a market value at least equal to an amount required by

28  the department.

29         Section 82.  Subsections (3) and (4) of section 24.120,

30  Florida Statutes, are amended to read:

31  

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 1         24.120  Financial matters; Administrative Trust Fund;

 2  interagency cooperation.--

 3         (3)  Any action required by law to be taken by the

 4  Chief Financial Officer State Treasurer or the Comptroller

 5  shall be taken within 2 business days after the department's

 6  request therefor.  If the request for such action is not

 7  approved or rejected within such period, the request shall be

 8  deemed to be approved. The department shall reimburse the

 9  Chief Financial Officer State Treasurer or the Comptroller for

10  any additional costs involved in providing the level of

11  service required by this subsection.

12         (4)  The department shall cooperate with the Chief

13  Financial Officer State Treasurer, the Comptroller, the

14  Auditor General, and the Office of Program Policy Analysis and

15  Government Accountability by giving employees designated by

16  any of them access to facilities of the department for the

17  purpose of efficient compliance with their respective

18  responsibilities.

19         Section 83.  Subsection (5) of section 25.241, Florida

20  Statutes, is amended to read:

21         25.241  Clerk of Supreme Court; compensation;

22  assistants; filing fees, etc.--

23         (5)  The Clerk of the Supreme Court is hereby required

24  to prepare a statement of all fees collected in duplicate each

25  month and remit one copy of such said statement, together with

26  all fees collected by him or her, to the Chief Financial

27  Officer State Treasurer, who shall place the same to the

28  credit of the General Revenue Fund.

29         Section 84.  Section 26.39, Florida Statutes, is

30  amended to read:

31  

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 1         26.39  Penalty for nonattendance of judge.--Whenever

 2  such default shall occur, the clerk of the court (unless such

 3  judge shall file his or her reasons for such default as

 4  hereinbefore provided) shall certify the fact, under his or

 5  her official signature and seal, to the Chief Financial

 6  Officer Comptroller of the state, who shall deduct from the

 7  warrants on the Treasurer, thereafter to be issued in favor of

 8  the judge making such default, the sum of $100 as aforesaid

 9  for every such default.

10         Section 85.  Section 27.08, Florida Statutes, is

11  amended to read:

12         27.08  State claims; surrender of papers to

13  successor.--Upon the qualification of the successor of any

14  state attorney, the state attorney going out of office shall

15  deliver to his or her successor a statement of all cases for

16  the collection of money in favor of the state under his or her

17  control and the papers connected with the same, and take his

18  or her receipt for the same, which receipt, when filed with

19  the Department of Financial Services Banking and Finance,

20  shall release such state attorney from any further liability

21  to the state upon the claims receipted for; and the state

22  attorney receiving the claims shall be liable in all respects

23  for the same, as provided against state attorneys in s. 17.20.

24         Section 86.  Section 27.10, Florida Statutes, is

25  amended to read:

26         27.10  Obligation as to claims; how discharged.--The

27  charges mentioned in s. 17.20 shall be evidence of

28  indebtedness on the part of any state attorney against whom

29  any charge is made for the full amount of such claim to the

30  state until the same shall be collected and paid into the

31  treasury or sued to insolvency, which fact of insolvency shall

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 1  be certified by the circuit judge of his or her circuit,

 2  unless the said state attorney makes shall make it fully

 3  appear to the Department of Financial Services Banking and

 4  Finance that the failure to collect the same did not result

 5  from his or her neglect.

 6         Section 87.  Section 27.11, Florida Statutes, is

 7  amended to read:

 8         27.11  Report upon claims committed to state

 9  attorney.--The state attorney shall make a report to the Chief

10  Financial Officer Comptroller on the first Monday in January

11  and July in each and every year of the condition of all claims

12  placed in his or her hands or which the state attorney may

13  have been required to prosecute and collect, whether the same

14  is in suit or in judgment, or collected, and the probable

15  solvency or insolvency of claims not collected, and shall at

16  the same time pay over all moneys which he or she may have

17  collected belonging to the state; and the Chief Financial

18  Officer Comptroller shall not audit or allow any claim which

19  any state attorney may have against the state for services

20  until he or she makes the report herein required.

21         Section 88.  Subsection (1) of section 27.12, Florida

22  Statutes, is amended to read:

23         27.12  Power to compromise.--

24         (1)  The state attorney may, with the approval of the

25  Department of Financial Services Banking and Finance,

26  compromise and settle all judgments, claims, and demands in

27  favor of the state in his or her circuit against defaulting

28  collectors of revenue, sheriffs and other officers, and the

29  sureties on their bonds, on such terms as the state attorney

30  may deem equitable and proper.

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 1         Section 89.  Section 27.13, Florida Statutes, is

 2  amended to read:

 3         27.13  Completion of compromise.--The state attorney

 4  shall, on agreeing to any compromise or settlement, report the

 5  same to the Department of Financial Services Banking and

 6  Finance for its approval; and, on its approving such

 7  compromise or settlement, the said state attorney, on a

 8  compliance with the terms of such compromise or settlement

 9  shall give a receipt to the collector of revenue, sheriff or

10  other officer, or the sureties on their bonds, or to the legal

11  representatives, which receipt shall be a discharge from all

12  judgments, claims or demands of the state against such

13  collector of revenue or other officer, or the sureties on

14  their bonds.

15         Section 90.  Subsection (4) of section 27.34, Florida

16  Statutes, is amended to read:

17         27.34  Salaries and other related costs of state

18  attorneys' offices; limitations.--

19         (4)  Notwithstanding s. 27.25, the Chief Financial

20  Officer Insurance Commissioner may contract with the state

21  attorney of any judicial circuit of the state for the

22  prosecution of criminal violations of the Workers'

23  Compensation Law and related crimes and may contribute funds

24  for such purposes. Such contracts may provide for the

25  training, salary, and expenses of one or more assistant state

26  attorneys used in the prosecution of such crimes.

27         Section 91.  Section 27.3455, Florida Statutes, is

28  amended to read:

29         27.3455  Annual statement of certain revenues and

30  expenditures.--

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 1         (1)  Each county shall submit annually to the Chief

 2  Financial Officer Comptroller a statement of revenues and

 3  expenditures as set forth in this section in the form and

 4  manner prescribed by the Chief Financial Officer Comptroller

 5  in consultation with the Legislative Committee on

 6  Intergovernmental Relations, provided that such statement

 7  identify total county expenditures on:

 8         (a)  Medical examiner services.

 9         (b)  County victim witness programs.

10         (c)  Each of the services outlined in ss. 27.34(2) and

11  27.54(3).

12         (d)  Appellate filing fees in criminal cases in which

13  an indigent defendant appeals a judgment of a county or

14  circuit court to a district court of appeal or the Florida

15  Supreme Court.

16         (e)  Other court-related costs of the state attorney

17  and public defender that were paid by the county where such

18  costs were included in a judgment or order rendered by the

19  trial court against the county.

20  

21  Such statement also shall identify the revenues provided by s.

22  938.05(1) that were used to meet or reimburse the county for

23  such expenditures.

24         (2)(a)  Within 6 months of the close of the local

25  government fiscal year, each county shall submit to the Chief

26  Financial Officer Comptroller a statement of compliance from

27  its independent certified public accountant, engaged pursuant

28  to s. 218.39, that the certified statement of expenditures was

29  in accordance with ss. 27.34(2), 27.54(3), and this section.

30  All discrepancies noted by the independent certified public

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 1  accountant shall be included in the statement furnished by the

 2  county to the Chief Financial Officer Comptroller.

 3         (b)  If Should the Chief Financial Officer determines

 4  Comptroller determine that additional auditing procedures are

 5  appropriate because:

 6         1.  The county failed to submit timely its annual

 7  statement;

 8         2.  Discrepancies were noted by the independent

 9  certified public accountant; or

10         3.  The county failed to file before March 31 of each

11  year the certified public accountant statement of compliance,

12  the Chief Financial Officer may Comptroller is hereby

13  authorized to send his or her personnel or to contract for

14  services to bring the county into compliance.  The costs

15  incurred by the Chief Financial Officer Comptroller shall be

16  paid promptly by the county upon certification by the Chief

17  Financial Officer Comptroller.

18         (c)  Where the Chief Financial Officer Comptroller

19  elects to utilize the services of an independent contractor,

20  such certification by the Chief Financial Officer Comptroller

21  may require the county to make direct payment to a contractor.

22  Any funds owed by a county in such matters shall be recovered

23  pursuant to s. 17.04 or s. 17.041.

24         (3)  The priority for the allocation of funds collected

25  pursuant to s. 938.05(1) shall be as follows:

26         (a)  Reimbursement to the county for actual county

27  expenditures incurred in providing the state attorney and

28  public defender the services outlined in ss. 27.34(2) and

29  27.54(3), with the exception of office space, utilities, and

30  custodial services.

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 1         (b)  At the close of the local government fiscal year,

 2  funds remaining on deposit in the special trust fund of the

 3  county after reimbursements have been made pursuant to

 4  paragraph (a) shall be reimbursed to the county for actual

 5  county expenditures made in support of the operations and

 6  services of medical examiners, including the costs associated

 7  with the investigation of state prison inmate deaths. Special

 8  county trust fund revenues used to reimburse the county for

 9  medical examiner expenditures in any year shall not exceed $1

10  per county resident.

11         (c)  At the close of the local government fiscal year,

12  counties establishing or having in existence a comprehensive

13  victim-witness program which meets the standards set by the

14  Crime Victims' Services Office shall be eligible to receive 50

15  percent matching moneys from the balance remaining in the

16  special trust fund after reimbursements have been made

17  pursuant to paragraphs (a) and (b).  Special trust fund moneys

18  used in any year to supplement such programs shall not exceed

19  25 cents per county resident.

20         (d)  At the close of the local government fiscal year,

21  funds remaining in the special trust fund after reimbursements

22  have been made pursuant to paragraphs (a), (b), and (c) shall

23  be used to reimburse the county for county costs incurred in

24  the provision of office space, utilities, and custodial

25  services to the state attorney and public defender, for county

26  expenditures on appellate filing fees in criminal cases in

27  which an indigent defendant appeals a judgment of a county or

28  circuit court to a district court of appeal or the Florida

29  Supreme Court, and for county expenditures on court-related

30  costs of the state attorney and public defender that were paid

31  by the county, provided that such court-related costs were

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 1  included in a judgment or order rendered by the trial court

 2  against the county.  Where a state attorney or a public

 3  defender is provided space in a county-owned facility,

 4  responsibility for calculating county costs associated with

 5  the provision of such office space, utilities, and custodial

 6  services is hereby vested in the Chief Financial Officer

 7  Comptroller in consultation with the Legislative Committee on

 8  Intergovernmental Relations.

 9         (4)  At the end of the local government fiscal year,

10  all funds remaining on deposit in the special trust fund after

11  all reimbursements have been made as provided for in

12  subsection (3) shall be forwarded to the Chief Financial

13  Officer Treasurer for deposit in the General Revenue Fund of

14  the state.

15         (5)  The Chief Financial Officer Comptroller shall

16  adopt any rules necessary to implement his or her

17  responsibilities pursuant to this section.

18         Section 92.  Subsection (2) of section 27.703, Florida

19  Statutes, is amended to read:

20         27.703  Conflict of interest and substitute counsel.--

21         (2)  Appointed counsel shall be paid from funds

22  appropriated to the Chief Financial Officer Comptroller. The

23  hourly rate may not exceed $100. However, effective July 1,

24  1999, all appointments of private counsel under this section

25  shall be in accordance with ss. 27.710 and 27.711.

26         Section 93.  Subsection (4) of section 27.710, Florida

27  Statutes, is amended to read:

28         27.710  Registry of attorneys applying to represent

29  persons in postconviction capital collateral proceedings;

30  certification of minimum requirements; appointment by trial

31  court.--

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 1         (4)  Each private attorney who is appointed by the

 2  court to represent a capital defendant must enter into a

 3  contract with the Chief Financial Officer Comptroller. If the

 4  appointed attorney fails to execute the contract within 30

 5  days after the date the contract is mailed to the attorney,

 6  the executive director of the Commission on Capital Cases

 7  shall notify the trial court. The Chief Financial Officer

 8  Comptroller shall develop the form of the contract, function

 9  as contract manager, and enforce performance of the terms and

10  conditions of the contract. By signing such contract, the

11  attorney certifies that he or she intends to continue the

12  representation under the terms and conditions set forth in the

13  contract until the sentence is reversed, reduced, or carried

14  out or until released by order of the trial court.

15         Section 94.  Subsections (3), (4), (5), (6), (7), and

16  (13) of section 27.711, Florida Statutes, are amended to read:

17         27.711  Terms and conditions of appointment of

18  attorneys as counsel in postconviction capital collateral

19  proceedings.--

20         (3)  An attorney appointed to represent a capital

21  defendant is entitled to payment of the fees set forth in this

22  section only upon full performance by the attorney of the

23  duties specified in this section and approval of payment by

24  the trial court, and the submission of a payment request by

25  the attorney, subject to the availability of sufficient

26  funding specifically appropriated for this purpose.  The Chief

27  Financial Officer Comptroller shall notify the executive

28  director and the court if it appears that sufficient funding

29  has not been specifically appropriated for this purpose to pay

30  any fees which may be incurred. The attorney shall maintain

31  appropriate documentation, including a current and detailed

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 1  hourly accounting of time spent representing the capital

 2  defendant. The fee and payment schedule in this section is the

 3  exclusive means of compensating a court-appointed attorney who

 4  represents a capital defendant. When appropriate, a

 5  court-appointed attorney must seek further compensation from

 6  the Federal Government, as provided in 18 U.S.C. s. 3006A or

 7  other federal law, in habeas corpus litigation in the federal

 8  courts.

 9         (4)  Upon approval by the trial court, an attorney

10  appointed to represent a capital defendant under s. 27.710 is

11  entitled to payment of the following fees by the Chief

12  Financial Officer Comptroller:

13         (a)  Regardless of the stage of postconviction capital

14  collateral proceedings, the attorney is entitled to $100 per

15  hour, up to a maximum of $2,500, after accepting appointment

16  and filing a notice of appearance.

17         (b)  The attorney is entitled to $100 per hour, up to a

18  maximum of $20,000, after timely filing in the trial court the

19  capital defendant's complete original motion for

20  postconviction relief under the Florida Rules of Criminal

21  Procedure. The motion must raise all issues to be addressed by

22  the trial court. However, an attorney is entitled to fees

23  under this paragraph if the court schedules a hearing on a

24  matter that makes the filing of the original motion for

25  postconviction relief unnecessary or if the court otherwise

26  disposes of the case.

27         (c)  The attorney is entitled to $100 per hour, up to a

28  maximum of $20,000, after the trial court issues a final order

29  granting or denying the capital defendant's motion for

30  postconviction relief.

31  

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 1         (d)  The attorney is entitled to $100 per hour, up to a

 2  maximum of $20,000, after timely filing in the Supreme Court

 3  the capital defendant's brief or briefs that address the trial

 4  court's final order granting or denying the capital

 5  defendant's motion for postconviction relief and the state

 6  petition for writ of habeas corpus.

 7         (e)  The attorney is entitled to $100 per hour, up to a

 8  maximum of $10,000, after the trial court issues an order,

 9  pursuant to a remand from the Supreme Court, which directs the

10  trial court to hold further proceedings on the capital

11  defendant's motion for postconviction relief.

12         (f)  The attorney is entitled to $100 per hour, up to a

13  maximum of $4,000, after the appeal of the trial court's

14  denial of the capital defendant's motion for postconviction

15  relief and the capital defendant's state petition for writ of

16  habeas corpus become final in the Supreme Court.

17         (g)  At the conclusion of the capital defendant's

18  postconviction capital collateral proceedings in state court,

19  the attorney is entitled to $100 per hour, up to a maximum of

20  $2,500, after filing a petition for writ of certiorari in the

21  Supreme Court of the United States.

22         (h)  If, at any time, the Supreme Court of the United

23  States accepts for review the capital defendant's collateral

24  challenge of the conviction and sentence of death, the

25  attorney is entitled to $100 per hour, up to a maximum of

26  $5,000. This payment shall be full compensation for

27  representing the capital defendant throughout the certiorari

28  proceedings before the United States Supreme Court.

29  

30  The hours billed by a contracting attorney under this

31  subsection may include time devoted to representation of the

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 1  defendant by another attorney who is qualified under s. 27.710

 2  and who has been designated by the contracting attorney to

 3  assist him or her.

 4         (5)  An attorney who represents a capital defendant may

 5  use the services of one or more investigators to assist in

 6  representing a capital defendant. Upon approval by the trial

 7  court, the attorney is entitled to payment from the Chief

 8  Financial Officer Comptroller of $40 per hour, up to a maximum

 9  of $15,000, for the purpose of paying for investigative

10  services.

11         (6)  An attorney who represents a capital defendant is

12  entitled to a maximum of $15,000 for miscellaneous expenses,

13  such as the costs of preparing transcripts, compensating

14  expert witnesses, and copying documents. Upon approval by the

15  trial court, the attorney is entitled to payment by the Chief

16  Financial Officer Comptroller of up to $15,000 for

17  miscellaneous expenses, except that, if the trial court finds

18  that extraordinary circumstances exist, the attorney is

19  entitled to payment in excess of $15,000.

20         (7)  An attorney who is actively representing a capital

21  defendant is entitled to a maximum of $500 per fiscal year for

22  tuition and expenses for continuing legal education that

23  pertains to the representation of capital defendants. Upon

24  approval by the trial court, the attorney is entitled to

25  payment by the Chief Financial Officer Comptroller for

26  expenses for such tuition and continuing legal education.

27         (13)  Prior to the filing of a motion for order

28  approving payment of attorney's fees, costs, or related

29  expenses, the assigned counsel shall deliver a copy of his

30  intended billing, together with supporting affidavits and all

31  other necessary documentation, to the Chief Financial

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 1  Officer's Comptroller's named contract manager. The contract

 2  manager shall have 10 business days from receipt to review the

 3  billings, affidavit, and documentation for completeness and

 4  compliance with contractual and statutory requirements. If the

 5  contract manager objects to any portion of the proposed

 6  billing, the objection and reasons therefor shall be

 7  communicated to the assigned counsel. The assigned counsel may

 8  thereafter file his or her motion for order approving payment

 9  of attorney's fees, costs, or related expenses together with

10  supporting affidavits and all other necessary documentation.

11  The motion must specify whether the Chief Financial Officer's

12  Comptroller's contract manager objects to any portion of the

13  billing or the sufficiency of documentation and, if so, the

14  reason therefor. A copy of the motion and attachments shall be

15  served on the Chief Financial Officer's Comptroller's contract

16  manager, who shall have standing to file pleadings and appear

17  before the court to contest any motion for order approving

18  payment. The fact that the Chief Financial Officer's

19  Comptroller's contract manager has not objected to any portion

20  of the billing or to the sufficiency of the documentation is

21  not binding on the court, which retains primary authority and

22  responsibility for determining the reasonableness of all

23  billings for fees, costs, and related expenses, subject to

24  statutory limitations.

25         Section 95.  Section 28.235, Florida Statutes, is

26  amended to read:

27         28.235  Advance payments by clerk of circuit

28  court.--The clerk of the circuit court is authorized to make

29  advance payments on behalf of the county for goods and

30  services, including, but not limited to, maintenance

31  agreements and subscriptions, pursuant to rules or procedures

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 1  adopted by the Chief Financial Officer Comptroller for advance

 2  payments of invoices submitted to agencies of the state.

 3         Section 96.  Subsections (7) and (23) of section 28.24,

 4  Florida Statutes, are amended to read:

 5         28.24  Service charges by clerk of the circuit

 6  court.--The clerk of the circuit court shall make the

 7  following charges for services rendered by the clerk's office

 8  in recording documents and instruments and in performing the

 9  duties enumerated. However, in those counties where the

10  clerk's office operates as a fiscal unit of the county

11  pursuant to s. 145.022(1), the clerk shall not charge the

12  county for such services.

13  

14  

15  

16  

17                                                         Charges

18  

19         (7)  For making and reporting payrolls of jurors to

20  Chief Financial Officer State Comptroller, per page, per copy

21  ..........................................................5.00

22         (23)  For paying of witnesses and making and reporting

23  payroll to Chief Financial Officer State Comptroller, per

24  copy, per page............................................5.00

25         Section 97.  Section 30.52, Florida Statutes, is

26  amended to read:

27         30.52  Handling of public funds.--The sheriff shall

28  keep public funds in his or her custody, either in his or her

29  office in an amount not in excess of the burglary, theft, and

30  robbery insurance provided, the cost of which is hereby

31  authorized as an expense of the office, or in a depository in

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 1  an amount not in excess of the security provided pursuant to

 2  s. 658.60 and the regulations of the Department of Financial

 3  Services Banking and Finance.  The title of the depository

 4  accounts shall include the word "sheriff" and the name of the

 5  county, and withdrawals from the accounts shall be made by

 6  checks signed by the duly qualified and acting sheriff of the

 7  county, or his or her designated deputy or agent.

 8         Section 98.  Section 40.30, Florida Statutes, is

 9  amended to read:

10         40.30  Requisition endorsed by State Courts

11  Administrator or designee.--Upon receipt of such estimate and

12  the requisition from the clerk of the court, the State Courts

13  Administrator or designee shall endorse the amount that he or

14  she may deem necessary for the pay of jurors and witnesses

15  during the quarterly fiscal period and shall submit a request

16  for payment to the Chief Financial Officer Comptroller.

17         Section 99.  Section 40.31, Florida Statutes, is

18  amended to read:

19         40.31  State Courts Administrator may apportion

20  appropriation.--If the State Courts Administrator shall have

21  reason to believe that the amount appropriated by the

22  Legislature is insufficient to meet the expenses of jurors and

23  witnesses during the remaining part of the state fiscal year,

24  he or she may apportion the money in the treasury for that

25  purpose among the several counties, basing such apportionment

26  upon the amount expended for the payment of jurors and

27  witnesses in each county during the prior fiscal year. In such

28  case, each county shall be paid by warrant, issued by the

29  Chief Financial Officer Comptroller, only the amount so

30  apportioned to each county, and, when the amount so

31  apportioned is insufficient to pay in full all the jurors and

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 1  witnesses during a quarterly fiscal period, the clerk of the

 2  court shall apportion the money received pro rata among the

 3  jurors and witnesses entitled to pay and shall give to each

 4  juror or witness a certificate of the amount of compensation

 5  still due, which certificate shall be held by the State Courts

 6  Administrator as other demands against the state.

 7         Section 100.  Section 40.33, Florida Statutes, is

 8  amended to read:

 9         40.33  Deficiency.--If the compensation of jurors and

10  witnesses during a quarterly fiscal period exceeds the amount

11  estimated by the clerk of the court and therefore is

12  insufficient to pay in full the jurors and witnesses, the

13  clerk of the court shall make a further requisition upon the

14  State Courts Administrator for the amount necessary to pay

15  such default, and the amount required shall be transmitted to

16  the clerk of the court by warrant issued by the Chief

17  Financial Officer Comptroller in the same manner as the

18  original requisition or order.

19         Section 101.  Subsection (2) of section 40.34, Florida

20  Statutes, is amended to read:

21         40.34  Clerks to make triplicate payroll.--

22         (2)  The form of such payroll shall be prescribed by

23  the Chief Financial Officer Comptroller.

24         Section 102.  Section 40.35, Florida Statutes, is

25  amended to read:

26         40.35  Accounting and payment to the State Courts

27  Administrator.--

28         (1)  The clerk of the court shall, within 2 weeks after

29  the last day of the quarterly fiscal period, render to the

30  State Courts Administrator a full statement of accounts for

31  moneys received and disbursed under the provisions of this

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 1  chapter and refund to the State Courts Administrator any

 2  balance in the clerk's hands.  If upon audit the State Courts

 3  Administrator shall determine a balance due the clerk of the

 4  court, the State Courts Administrator shall submit a request

 5  for payment to the Chief Financial Officer Comptroller.

 6         (2)  If a clerk of the court fails to account for and

 7  pay over promptly the balance of all moneys paid him or her,

 8  the sureties, if any, on a clerk's official bond are liable

 9  and responsible for same; and the State Courts Administrator

10  shall report to the Governor and the Chief Financial Officer

11  Comptroller any failure on the part of the clerk of the court

12  to report and faithfully account for any such moneys.

13         Section 103.  Paragraph (b) of subsection (5) of

14  section 43.16, Florida Statutes, is amended to read:

15         43.16  Justice Administrative Commission; membership,

16  powers and duties.--

17         (5)  The duties of the commission shall include, but

18  not be limited to, the following:

19         (b)  Each state attorney and public defender and the

20  Judicial Qualifications Commission shall continue to prepare

21  necessary budgets, vouchers which represent valid claims for

22  reimbursement by the state for authorized expenses, and other

23  things incidental to the proper administrative operation of

24  the office, such as revenue transmittals to the Chief

25  Financial Officer treasurer, automated systems plans, etc.,

26  but will forward same to the commission for recording and

27  submission to the proper state officer.  However, when

28  requested by a state attorney or a public defender or the

29  Judicial Qualifications Commission, the commission will either

30  assist in the preparation of budget requests, voucher

31  

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 1  schedules, and other forms and reports or accomplish the

 2  entire project involved.

 3         Section 104.  Subsections (1), (3), and (4) of section

 4  43.19, Florida Statutes, are amended to read:

 5         43.19  Money paid into court; unclaimed funds.--

 6         (1)  In every case in which the right to withdraw money

 7  deposited as hereinbefore provided has been adjudicated or is

 8  not in dispute and the money has remained so deposited for 5

 9  years or more unclaimed by the person, firm, or corporation

10  entitled thereto, on or before December 1 of each year the

11  judge, or one of the judges, of the court shall direct that

12  the money be deposited with the Chief Financial Officer

13  Treasurer to the credit of the State School Fund, to become a

14  part of that fund, subject to the right of the person, firm,

15  or corporation entitled thereto to receive the money as

16  provided in subsection (3).

17         (3)  Any person, firm or corporation entitled to any of

18  the money may obtain an order directing the payment of the

19  money to the claimant on written petition to the court from

20  which the money was deposited or its successor, and written

21  notice to the state attorney of the circuit wherein the court

22  is situate, whether or not the court is a circuit court, and

23  proof of right thereto, and the money deposited shall

24  constitute and be a permanent appropriation for payments by

25  the Chief Financial Officer Treasurer of the state in

26  obedience of such orders.

27         (4)  All interest and income that accrue from the money

28  while on deposit with the Chief Financial Officer Treasurer to

29  the credit of the State School Fund belong to that fund.

30         Section 105.  Subsections (3) and (4) of section

31  48.151, Florida Statutes, are amended to read:

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 1         48.151  Service on statutory agents for certain

 2  persons.--

 3         (3)  The Chief Financial Officer Insurance Commissioner

 4  and Treasurer or his or her assistant or deputy or another

 5  person in charge of the office is the agent for service of

 6  process on all insurers applying for authority to transact

 7  insurance in this state, all licensed nonresident insurance

 8  agents, all nonresident disability insurance agents licensed

 9  by the Department of Financial Services Insurance pursuant to

10  s. 626.835, any unauthorized insurer under s. 626.906 or s.

11  626.937, domestic reciprocal insurers, fraternal benefit

12  societies under chapter 632, automobile inspection and

13  warranty associations, ambulance service associations, and

14  persons required to file statements under s. 628.461.

15         (4)  The Chief Financial Officer Comptroller is the

16  agent for service of process for any issuer as defined in s.

17  517.021, or any dealer, investment adviser, or associated

18  person registered with the Department of Financial Services

19  Banking and Finance, for any violation of any provision of

20  chapter 517.

21         Section 106.  Subsection (1) of section 55.03, Florida

22  Statutes, is amended to read:

23         55.03  Judgments; rate of interest, generally.--

24         (1)  On December 1 of each year beginning December 1,

25  1994, the Chief Financial Officer Comptroller of the State of

26  Florida shall set the rate of interest that shall be payable

27  on judgments or decrees for the year beginning January 1 by

28  averaging the discount rate of the Federal Reserve Bank of New

29  York for the preceding year, then adding 500 basis points to

30  the averaged federal discount rate. The Chief Financial

31  Officer Comptroller shall inform the clerk of the courts and

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 1  chief judge for each judicial circuit of the rate that has

 2  been established for the upcoming year. The initial interest

 3  rate established by the Comptroller shall take effect on

 4  January 1, 1995, and the interest rate established by the

 5  Chief Financial Officer Comptroller in subsequent years shall

 6  take effect on January 1 of each following year. Judgments

 7  obtained on or after January 1, 1995, shall use the previous

 8  statutory rate for time periods before January 1, 1995, for

 9  which interest is due and shall apply the rate set by the

10  Chief Financial Officer Comptroller for time periods after

11  January 1, 1995, for which interest is due. Nothing contained

12  herein shall affect a rate of interest established by written

13  contract or obligation.

14         Section 107.  Section 57.091, Florida Statutes, is

15  amended to read:

16         57.091  Costs; refunded to counties in certain

17  proceedings relating to state prisoners.--All lawful fees,

18  costs, and expenses hereafter adjudged against, and paid by,

19  any county in all competency proceedings and all criminal

20  prosecutions against state prisoners imprisoned in a state

21  correctional institution, and in all habeas corpus cases

22  brought to test the legality of the imprisonment of state

23  prisoners of such correctional institutions, shall be refunded

24  to the county paying the sum from the General Revenue Fund in

25  the State Treasury in the manner and to the extent herein

26  provided, to wit:  between the 1st and 15th of the month next

27  succeeding the month in which the fees, costs, and expenses

28  have been allowed and paid by the county, the clerk of the

29  court shall make requisition on the Department of Corrections

30  for the fees, costs, and expenses so allowed and paid during

31  the preceding month, giving the style of the cases in which

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 1  fees, costs, and expenses were incurred and the amount and

 2  items of cost in each case; providing a certified copy of the

 3  judgment adjudging the fees, costs, and expenses against the

 4  county and showing that the amount represented thereby has

 5  been approved by the presiding judge, paid by the county, and

 6  verified by the clerk; and attaching a certified copy of the

 7  bill as approved and allowed by the board of county

 8  commissioners of the county. If the Department of Corrections

 9  finds the bills legal and adjudged against and paid by the

10  county, the department shall submit a request to the Chief

11  Financial Officer Comptroller to draw a warrant in the amount

12  thereof, or in the amount the department finds legal and

13  adjudged against and paid by the county, in favor of the

14  county paying the fees, costs, and expenses, which shall be

15  paid by the Chief Financial Officer State Treasurer from the

16  general revenue funds of the state.

17         Section 108.  Subsections (1), (3), and (4) of section

18  68.083, Florida Statutes, are amended to read:

19         68.083  Civil actions for false claims.--

20         (1)  The department may diligently investigate a

21  violation under s. 68.082. If the department finds that a

22  person has violated or is violating s. 68.082, the department

23  may bring a civil action under the Florida False Claims Act

24  against the person. The Department of Financial Services

25  Banking and Finance may bring a civil action under this

26  section if the action arises from an investigation by that

27  department and the Department of Legal Affairs has not filed

28  an action under this act.

29         (3)  The complaint shall be identified on its face as a

30  qui tam action and shall be filed in the circuit court of the

31  Second Judicial Circuit, in and for Leon County. Immediately

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 1  upon the filing of the complaint, a copy of the complaint and

 2  written disclosure of substantially all material evidence and

 3  information the person possesses shall be served on the

 4  Attorney General, as head of the department, and on the Chief

 5  Financial Officer Comptroller, as head of the Department of

 6  Financial Services Banking and Finance, by registered mail,

 7  return receipt requested. The department, or the Department of

 8  Financial Services Banking and Finance under the circumstances

 9  specified in subsection (4), may elect to intervene and

10  proceed with the action, on behalf of the state, within 90

11  days after it receives both the complaint and the material

12  evidence and information.

13         (4)  If a person brings an action under subsection (2)

14  and the action is based upon the facts underlying a pending

15  investigation by the Department of Financial Services Banking

16  and Finance, the Department of Financial Services Banking and

17  Finance, instead of the department, may take over the action

18  on behalf of the state. In order to take over the action, the

19  Department of Financial Services Banking and Finance must give

20  the department written notification within 20 days after the

21  action is filed that the Department of Financial Services

22  Banking and Finance is conducting an investigation of the

23  facts of the action and that the Department of Financial

24  Services Banking and Finance, instead of the department, will

25  take over the action filed under subsection (2). If the

26  Department of Financial Services Banking and Finance takes

27  over the action under this subsection, the word "department"

28  as used in this act means the Department of Financial Services

29  Banking and Finance, and that department, for purposes of that

30  action, shall have all rights and standing granted the

31  department under this act.

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 1         Section 109.  Subsections (3) and (6) of section

 2  68.084, Florida Statutes, are amended to read:

 3         68.084  Rights of the parties in civil actions.--

 4         (3)  If the department elects not to proceed with the

 5  action, the person who initiated the action has the right to

 6  conduct the action. If the Attorney General, as head of the

 7  department, or the Chief Financial Officer Comptroller, as

 8  head of the Department of Financial Services Banking and

 9  Finance, so requests, it shall be served, at the requesting

10  department's expense, with copies of all pleadings and motions

11  filed in the action and copies of all deposition transcripts.

12  When a person proceeds with the action, the court, without

13  limiting the rights of the person initiating the action, may

14  nevertheless permit the department to intervene and take over

15  the action on behalf of the state at a later date upon showing

16  of good cause.

17         (6)  The Department of Financial Services Banking and

18  Finance, or the department, may intervene on its own behalf as

19  a matter of right.

20         Section 110.  Subsection (3) of section 68.087, Florida

21  Statutes, is amended to read:

22         68.087  Exemptions to civil actions.--

23         (3)  No court shall have jurisdiction over an action

24  brought under this act based upon the public disclosure of

25  allegations or transactions in a criminal, civil, or

26  administrative hearing; in a legislative, administrative,

27  inspector general, or Auditor General, Chief Financial Officer

28  Comptroller, or Department of Financial Services Banking and

29  Finance report, hearing, audit, or investigation; or from the

30  news media, unless the action is brought by the department, or

31  unless the person bringing the action is an original source of

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 1  the information. For purposes of this subsection, the term

 2  "original source" means an individual who has direct and

 3  independent knowledge of the information on which the

 4  allegations are based and has voluntarily provided the

 5  information to the department before filing an action under

 6  this act based on the information.

 7         Section 111.  Section 68.092, Florida Statutes, is

 8  amended to read:

 9         68.092  Deposit of recovered moneys.--All moneys

10  recovered by the Chief Financial Officer Comptroller, as head

11  of the Department of Financial Services Banking and Finance,

12  under s. 68.086(1) in any civil action for violation of the

13  Florida False Claims Act shall be deposited in the

14  Administrative Trust Fund of the Department of Financial

15  Services Banking and Finance.

16         Section 112.  Section 77.0305, Florida Statutes, is

17  amended to read:

18         77.0305  Continuing writ of garnishment against salary

19  or wages.--Notwithstanding any other provision of this

20  chapter, if salary or wages are to be garnished to satisfy a

21  judgment, the court shall issue a continuing writ of

22  garnishment to the judgment debtor's employer which provides

23  for the periodic payment of a portion of the salary or wages

24  of the judgment debtor as the salary or wages become due until

25  the judgment is satisfied or until otherwise provided by court

26  order.  A debtor's status as an employee of the state or its

27  agencies or political subdivisions does not preclude a

28  judgment creditor's right to garnish the debtor's wages.  For

29  the purposes of this section, the state includes the judicial

30  branch and the legislative branch as defined in s. 216.011.

31  The state, for itself and for its agencies and subdivisions,

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 1  waives sovereign immunity for the express and limited purpose

 2  necessary to carry out this section.  The court shall allow

 3  the judgment debtor's employer to collect up to $5 against the

 4  salary or wages of the judgment debtor to reimburse the

 5  employer for administrative costs for the first deduction from

 6  the judgment debtor's salary or wages and up to $2 for each

 7  deduction thereafter.  The funds collected by the state under

 8  this section must be deposited in the Department of Financial

 9  Services Banking and Finance Administrative Trust Fund for

10  purposes of carrying out this section.

11         Section 113.  Section 92.39, Florida Statutes, is

12  amended to read:

13         92.39  Evidence of individual's claim against the state

14  in suits between them.--In suits between the state and

15  individuals, no claim for a credit shall be allowed upon

16  trial, but such as shall appear to have been presented to the

17  Chief Financial Officer Comptroller for his or her the

18  Comptroller's examination, and by him or her disallowed in

19  whole or in part, unless it shall be proved to the

20  satisfaction of the court that the defendant is, at the time

21  of the trial, in possession of vouchers not before in the

22  defendant's power to procure, and that the defendant was

23  prevented from exhibiting a claim for such credit at the Chief

24  Financial Officer's Comptroller's office by unavoidable

25  accident.

26         Section 114.  Subsection (4) of section 99.097, Florida

27  Statutes, is amended to read:

28         99.097  Verification of signatures on petitions.--

29         (4)  The supervisor shall be paid in advance the sum of

30  10 cents for each signature checked or the actual cost of

31  checking such signature, whichever is less, by the candidate

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 1  or, in the case of a petition to have an issue placed on the

 2  ballot, by the person or organization submitting the petition.

 3  However, if a candidate, person, or organization seeking to

 4  have an issue placed upon the ballot cannot pay such charges

 5  without imposing an undue burden on personal resources or upon

 6  the resources otherwise available to such candidate, person,

 7  or organization, such candidate, person, or organization

 8  shall, upon written certification of such inability given

 9  under oath to the supervisor, be entitled to have the

10  signatures verified at no charge.  In the event a candidate,

11  person, or organization submitting a petition to have an issue

12  placed upon the ballot is entitled to have the signatures

13  verified at no charge, the supervisor of elections of each

14  county in which the signatures are verified at no charge shall

15  submit the total number of such signatures checked in the

16  county to the Chief Financial Officer Comptroller no later

17  than December 1 of the general election year, and the Chief

18  Financial Officer Comptroller shall cause such supervisor of

19  elections to be reimbursed from the General Revenue Fund in an

20  amount equal to 10 cents for each name checked or the actual

21  cost of checking such signatures, whichever is less.  In no

22  event shall such reimbursement of costs be deemed or applied

23  as extra compensation for the supervisor.  Petitions shall be

24  retained by the supervisors for a period of 1 year following

25  the election for which the petitions were circulated.

26         Section 115.  Paragraph (a) of subsection (2) of

27  section 101.151, Florida Statutes, is amended to read:

28         101.151  Specifications for ballots.--

29         (2)(a)  The ballot shall have headings under which

30  shall appear the names of the offices and names of duly

31  nominated candidates for the respective offices in the

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 1  following order:  the heading "President and Vice President"

 2  and thereunder the names of the candidates for President and

 3  Vice President of the United States nominated by the political

 4  party that received the highest vote for Governor in the last

 5  general election of the Governor in this state.  Then shall

 6  appear the names of other candidates for President and Vice

 7  President of the United States who have been properly

 8  nominated.  Votes cast for write-in candidates for President

 9  and Vice President shall be counted as votes cast for the

10  presidential electors supporting such candidates.  Then shall

11  follow the heading "Congressional" and thereunder the offices

12  of United States Senator and Representative in Congress; then

13  the heading "State" and thereunder the offices of Governor and

14  Lieutenant Governor, Secretary of State, Attorney General,

15  Chief Financial Officer Comptroller, Treasurer, Commissioner

16  of Education, Commissioner of Agriculture, state attorney, and

17  public defender, together with the names of the candidates for

18  each office and the title of the office which they seek; then

19  the heading "Legislative" and thereunder the offices of state

20  senator and state representative; then the heading "County"

21  and thereunder clerk of the circuit court, clerk of the county

22  court (when authorized by law), sheriff, property appraiser,

23  tax collector, district superintendent of schools, and

24  supervisor of elections. Thereafter follows: members of the

25  board of county commissioners, and such other county and

26  district offices as are involved in the general election, in

27  the order fixed by the Department of State, followed, in the

28  year of their election, by "Party Offices," and thereunder the

29  offices of state and county party executive committee members.

30  In addition to the names printed on the ballot, a blank space

31  shall be provided under each heading for an office for which a

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 1  write-in candidate has qualified. With respect to write-in

 2  candidates, if two or more candidates are seeking election to

 3  one office, only one blank space shall be provided.

 4         Section 116.  Subsection (6) of section 103.091,

 5  Florida Statutes, is amended to read:

 6         103.091  Political parties.--

 7         (6)(a)1.  In addition to the members provided for in

 8  subsection (1), each county executive committee shall include

 9  all members of the Legislature who are residents of the county

10  and members of their respective political party and who shall

11  be known as at-large committeemen and committeewomen.

12         (b)2.  Each state executive committee shall include, as

13  at-large committeemen and committeewomen, all members of the

14  United States Congress representing the State of Florida who

15  are members of the political party, all statewide elected

16  officials who are members of the party, and the President of

17  the Senate or the Minority Leader in the Senate, and the

18  Speaker of the House of Representatives or the Minority Leader

19  in the House of Representatives, whichever is a member of the

20  political party, and 20 members of the Legislature who are

21  members of the political party.  Ten of the legislators shall

22  be appointed with the concurrence of the state chair of the

23  respective party, as follows: five to be appointed by the

24  President of the Senate; five by the Minority Leader in the

25  Senate; five by the Speaker of the House of Representatives;

26  and five by the Minority Leader in the House.

27         (c)3.  When a political party allows any member of the

28  state executive committee to have more than one vote per

29  person, other than by proxy, in a matter coming before the

30  state executive committee, the 20 members of the Legislature

31  appointed under paragraph (b) subparagraph 2. shall not be

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 1  appointed to the state executive committee and the following

 2  elected officials who are members of that political party

 3  shall be appointed and shall have the following votes:

 4         1.a.  Governor:  a number equal to 15 percent of votes

 5  cast by state executive committeemen and committeewomen;

 6         2.b.  Lieutenant Governor:  a number equal to 5 percent

 7  of the votes cast by state executive committeemen and

 8  committeewomen;

 9         3.c.  Each member of the United States Senate

10  representing the state: a number equal to 10 percent of the

11  votes cast by state executive committeemen and committeewomen;

12         4.d.  Secretary of State:  a number equal to 5 percent

13  of the votes cast by state executive committeemen and

14  committeewomen;

15         5.e.  Attorney General:  a number equal to 5 percent of

16  the votes cast by state executive committeemen and

17  committeewomen;

18         6.f.  Comptroller:  a number equal to 5 percent of the

19  votes cast by state executive committeemen and committeewomen;

20         7.g.  Treasurer:  a number equal to 5 percent of the

21  votes cast by state executive committeemen and committeewomen;

22         8.h.  Commissioner of Agriculture:  a number equal to 5

23  percent of the votes cast by state executive committeemen and

24  committeewomen;

25         9.i.  Commissioner of Education:  a number equal to 5

26  percent of the votes cast by state executive committeemen and

27  committeewomen;

28         10.j.  President of the Senate: a number equal to 10

29  percent of the votes cast by state executive committeemen and

30  committeewomen;

31  

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 1         11.k.  Minority leader of the Senate:  a number equal

 2  to 10 percent of the votes cast by state executive

 3  committeemen and committeewomen;

 4         12.l.  Speaker of the House of Representatives:  a

 5  number equal to 10 percent of the votes cast by state

 6  executive committeemen and committeewomen;

 7         13.m.  Minority leader of the House of Representatives:

 8  a number equal to 10 percent of the votes cast by state

 9  executive committeemen and committeewomen; and

10         14.n.  Each member of the United States House of

11  Representatives representing the state:  a number equal to 1

12  percent of the votes cast by state executive committeemen and

13  committeewomen.

14         (d)1.4.a.  The governing body of each state executive

15  committee as defined by party rule shall include as at-large

16  committeemen and committeewomen all statewide elected

17  officials who are members of such political party; up to four

18  members of the United States Congress representing the state

19  who are members of such political party and who shall be

20  appointed by the state chair on the basis of geographic

21  representation; the permanent presiding officer selected by

22  the members of each house of the Legislature who are members

23  of such political party; and the minority leader selected by

24  the members of each house of the Legislature who are members

25  of such political party.

26         2.b.  All members of the governing body shall have one

27  vote per person.

28         Section 117.  Section 107.11, Florida Statutes, is

29  amended to read:

30         107.11  Appropriation for expenses.--For the purpose of

31  defraying the expenses of preparing for, conducting, holding

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 1  and declaring the result of the election provided for by this

 2  chapter and also for the purpose of defraying the expenses

 3  allowed by this chapter for the holding of sessions of the

 4  convention as herein provided, to be audited by the Chief

 5  Financial Officer Comptroller, there is appropriated out of

 6  the General Revenue Fund of the State of Florida a sufficient

 7  sum of money for the payment of all amounts necessary to be

 8  expended under the terms of this chapter, which sums of money

 9  shall be disbursed by the State of Florida pursuant to

10  warrants drawn by the Chief Financial Officer Comptroller upon

11  the Treasurer for the payment of same.

12         Section 118.  Paragraph (a) of subsection (2) of

13  section 110.1127, Florida Statutes, is amended to read:

14         110.1127  Employee security checks.--

15         (2)(a)  All positions within the Division of Treasury

16  of the Department of Financial Services Insurance are deemed

17  to be positions of special trust or responsibility, and a

18  person may be disqualified for employment in any such position

19  by reason of:

20         1.  The conviction or prior conviction of a crime which

21  is reasonably related to the nature of the position sought or

22  held by the individual; or

23         2.  The entering of a plea of nolo contendere or, when

24  a jury verdict of guilty is rendered but adjudication of guilt

25  is withheld, with respect to a crime which is reasonably

26  related to the nature of the position sought or held by the

27  individual.

28         Section 119.  Subsection (1) of section 110.113,

29  Florida Statutes, is amended to read:

30         110.113  Pay periods for state officers and employees;

31  salary payments by direct deposit.--

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 1         (1)  The normal pay period for salaries of state

 2  officers and employees shall be 1 month.  The Department of

 3  Financial Services Banking and Finance shall issue either

 4  monthly or biweekly salary payments by state warrants or by

 5  direct deposit pursuant to s. 17.076 or make semimonthly

 6  salary payments by direct deposit pursuant to s. 17.076, as

 7  requested by the head of each state agency and approved by the

 8  Executive Office of the Governor and the Department of

 9  Financial Services Banking and Finance.

10         Section 120.  Subsection (1) of section 110.114,

11  Florida Statutes, is amended to read:

12         110.114  Employee wage deductions.--

13         (1)  The state or any of its departments, bureaus,

14  commissions, and officers are authorized and permitted, with

15  the concurrence of the Department of Financial Services

16  Banking and Finance, to make deductions from the salary or

17  wage of any employee or employees in such amount as shall be

18  authorized and requested by such employee or employees and for

19  such purpose as shall be authorized and requested by such

20  employee or employees and shall pay such sums so deducted as

21  directed by such employee or employees.  The concurrence of

22  the Department of Financial Services Banking and Finance shall

23  not be required for the deduction of a certified bargaining

24  agent's membership dues deductions pursuant to s. 447.303 or

25  any deductions authorized by a collective bargaining

26  agreement.

27         Section 121.  Section 110.116, Florida Statutes, is

28  amended to read:

29         110.116  Personnel information system; payroll

30  procedures.--The Department of Management Services shall

31  establish and maintain, in coordination with the payroll

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 1  system of the Department of Financial Services Banking and

 2  Finance, a complete personnel information system for all

 3  authorized and established positions in the state service,

 4  with the exception of employees of the Legislature.  The

 5  specifications shall be developed in conjunction with the

 6  payroll system of the Department of Financial Services Banking

 7  and Finance and in coordination with the Auditor General.  The

 8  Department of Financial Services Banking and Finance shall

 9  determine that the position occupied by each employee has been

10  authorized and established in accordance with the provisions

11  of s. 216.251.  The Department of Management Services shall

12  develop and maintain a position numbering system that will

13  identify each established position, and such information shall

14  be a part of the payroll system of the Department of Financial

15  Services Banking and Finance.  With the exception of employees

16  of the Legislature, this system shall include all career

17  service positions and those positions exempted from career

18  service provisions, notwithstanding the funding source of the

19  salary payments, and information regarding persons receiving

20  payments from other sources. Necessary revisions shall be made

21  in the personnel and payroll procedures of the state to avoid

22  duplication insofar as is feasible.  A list shall be organized

23  by budget entity to show the employees or vacant positions

24  within each budget entity.  This list shall be available to

25  the Speaker of the House of Representatives and the President

26  of the Senate upon request.

27         Section 122.  Paragraph (a) of subsection (3) and

28  paragraph (b) of subsection (6) of section 110.1227, Florida

29  Statutes, are amended to read:

30         110.1227  Florida Employee Long-Term-Care Plan Act.--

31  

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 1         (3)  The Department of Management Services and the

 2  department shall, in consultation with public employers and

 3  employees and representatives from unions and associations

 4  representing state, university, local government, and other

 5  public employees, establish and supervise the implementation

 6  and administration of a self-funded or fully insured

 7  long-term-care plan entitled "Florida Employee Long-Term-Care

 8  Plan."

 9         (a)  The Department of Management Services and the

10  department shall, in consultation with the Department of

11  Financial Services Insurance, contract for actuarial,

12  professional-administrator, and other services for the Florida

13  Employee Long-Term-Care Plan.

14         (6)  A Florida Employee Long-Term-Care Plan Board of

15  Directors is created, composed of nine members who shall serve

16  2-year terms, to be appointed after May 1, 1999, as follows:

17         (b)  The Chief Financial Officer Insurance Commissioner

18  shall appoint an actuary.

19         Section 123.  Paragraph (f) of subsection (5) of

20  section 110.1228, Florida Statutes, is amended to read:

21         110.1228  Participation by small counties, small

22  municipalities, and district school boards located in small

23  counties.--

24         (5)  If the department determines that a small county,

25  small municipality, or district school board is eligible to

26  enroll, the small county, small municipality, or district

27  school board must agree to the following terms and conditions:

28         (f)  If a small county, small municipality, or district

29  school board employer fails to make the payments required by

30  this section to fully reimburse the state, the Department of

31  Revenue or the Department of Financial Services Banking and

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 1  Finance shall, upon the request of the Department of

 2  Management Services, deduct the amount owed by the employer

 3  from any funds not pledged to bond debt service satisfaction

 4  that are to be distributed by it to the small county, small

 5  municipality, or district school board. The amounts so

 6  deducted shall be transferred to the Department of Management

 7  Services for further distribution to the trust funds in

 8  accordance with this chapter.

 9         Section 124.  Paragraph (f) of subsection (4) and

10  paragraphs (b) and (c) of subsection (5) of section 110.123,

11  Florida Statutes, are amended to read:

12         110.123  State group insurance program.--

13         (4)  PAYMENT OF PREMIUMS; CONTRIBUTION BY STATE;

14  LIMITATION ON ACTIONS TO PAY AND COLLECT PREMIUMS.--

15         (f)  Pursuant to the request of each state officer,

16  full-time or part-time state employee, or retiree

17  participating in the state group insurance program, and upon

18  certification of the employing agency approved by the

19  department, the Chief Financial Officer Comptroller shall

20  deduct from the salary or retirement warrant payable to each

21  participant the amount so certified and shall handle such

22  deductions in accordance with rules established by the

23  department.

24         (5)  DEPARTMENT POWERS AND DUTIES.--The department is

25  responsible for the administration of the state group

26  insurance program.  The department shall initiate and

27  supervise the program as established by this section and shall

28  adopt such rules as are necessary to perform its

29  responsibilities.  To implement this program, the department

30  shall, with prior approval by the Legislature:

31  

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 1         (b)  Prepare, in cooperation with the Department of

 2  Financial Services Insurance, the specifications necessary to

 3  implement the program.

 4         (c)  Contract on a competitive proposal basis with an

 5  insurance carrier or carriers, or professional administrator,

 6  determined by the Department of Financial Services Insurance

 7  to be fully qualified, financially sound, and capable of

 8  meeting all servicing requirements.  Alternatively, the

 9  department may self-insure any plan or plans contained in the

10  state group insurance program subject to approval based on

11  actuarial soundness by the Department of Financial Services

12  Insurance.  The department may contract with an insurance

13  company or professional administrator qualified and approved

14  by the Department of Financial Services Insurance to

15  administer such plan. Before entering into any contract, the

16  department shall advertise for competitive proposals, and such

17  contract shall be let upon the consideration of the benefits

18  provided in relationship to the cost of such benefits. In

19  determining which entity to contract with, the department

20  shall, at a minimum, consider:  the entity's previous

21  experience and expertise in administering group insurance

22  programs of the type it proposes to administer; the entity's

23  ability to specifically perform its contractual obligations in

24  this state and other governmental jurisdictions; the entity's

25  anticipated administrative costs and claims experience; the

26  entity's capability to adequately provide service coverage and

27  sufficient number of experienced and qualified personnel in

28  the areas of claims processing, recordkeeping, and

29  underwriting, as determined by the department; the entity's

30  accessibility to state employees and providers; the financial

31  solvency of the entity, using accepted business sector

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 1  measures of financial performance. The department may contract

 2  for medical services which will improve the health or reduce

 3  medical costs for employees who participate in the state group

 4  insurance plan.

 5  

 6  Final decisions concerning enrollment, the existence of

 7  coverage, or covered benefits under the state group insurance

 8  program shall not be delegated or deemed to have been

 9  delegated by the department.

10         Section 125.  Section 110.125, Florida Statutes, is

11  amended to read:

12         110.125  Administrative costs.--The administrative

13  expenses and costs of operating the personnel program

14  established by this chapter shall be paid by the various

15  agencies of the state government, and each such agency shall

16  include in its budget estimates its pro rata share of such

17  cost as determined by the Department of Management Services.

18  To establish an equitable division of the costs, the amount to

19  be paid by each agency shall be determined in such proportion

20  as the service rendered to each agency bears to the total

21  service rendered under the provisions of this chapter.  The

22  amounts paid to the Department of Management Services which

23  are attributable to positions within the Senior Management

24  Service and the Selected Professional Service shall be used

25  for the administration of such services, training activities

26  for positions within those services, and the development and

27  implementation of a database of pertinent historical

28  information on exempt positions.  Should any state agency

29  become more than 90 days delinquent in payment of this

30  obligation, the department shall certify to the Chief

31  Financial Officer Comptroller the amount due and the Chief

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 1  Financial Officer Comptroller shall transfer the amount due to

 2  the department from any debtor agency funds available.

 3         Section 126.  Paragraph (a) of subsection (1) of

 4  section 110.181, Florida Statutes, is amended to read:

 5         110.181  Florida State Employees' Charitable

 6  Campaign.--

 7         (1)  CREATION AND ORGANIZATION OF CAMPAIGN.--

 8         (a)  The Department of Management Services shall

 9  establish and maintain, in coordination with the payroll

10  system of the Department of Financial Services Banking and

11  Finance, an annual Florida State Employees' Charitable

12  Campaign.  Except as provided in subsection (5), this annual

13  fundraising drive is the only authorized charitable

14  fundraising drive directed toward state employees within work

15  areas during work hours, and for which the state will provide

16  payroll deduction.

17         Section 127.  Subsection (1) of section 110.2037,

18  Florida Statutes, is amended to read:

19         110.2037  Alternative benefits; tax-sheltered annual

20  leave and sick leave payments and special compensation

21  payments.--

22         (1)  The Department of Management Services has

23  authority to adopt tax-sheltered plans under s. 401(a) of the

24  Internal Revenue Code for state employees who are eligible for

25  payment for accumulated leave. The department, upon adoption

26  of the plans, shall contract for a private vendor or vendors

27  to administer the plans. These plans shall be limited to state

28  employees who are over age 55 and who are: eligible for

29  accumulated leave and special compensation payments and

30  separating from employment with 10 years of service in

31  accordance with the Internal Revenue Code, or who are

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 1  participating in the Deferred Retirement Option Program on or

 2  after July 1, 2001. The plans must provide benefits in a

 3  manner that minimizes the tax liability of the state and

 4  participants. The plans must be funded by employer

 5  contributions of payments for accumulated leave or special

 6  compensation payments, or both, as specified by the

 7  department. The plans must have received all necessary federal

 8  and state approval as required by law, must not adversely

 9  impact the qualified status of the Florida Retirement System

10  defined benefit or defined contribution plans or the pretax

11  benefits program, and must comply with the provisions of s.

12  112.65. Adoption of any plan is contingent on: the department

13  receiving appropriate favorable rulings from the Internal

14  Revenue Service; the department negotiating under the

15  provisions of chapter 447, where applicable; and the Chief

16  Financial Officer Comptroller making appropriate changes to

17  the state payroll system. The department's request for

18  proposals by vendors for such plans may require that the

19  vendors provide market-risk or volatility ratings from

20  recognized rating agencies for each of their investment

21  products. The department shall provide for a system of

22  continuous quality assurance oversight to ensure that the

23  program objectives are achieved and that the program is

24  prudently managed.

25         Section 128.  Subsection (6) of section 110.205,

26  Florida Statutes, is amended to read:

27         110.205  Career service; exemptions.--

28         (6)  EXEMPTION OF CHIEF INSPECTOR OF BOILER SAFETY

29  PROGRAM, DEPARTMENT OF FINANCIAL SERVICES INSURANCE.--In

30  addition to those positions exempted from this part, there is

31  hereby exempted from the Career Service System the chief

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 1  inspector of the boiler inspection program of the Department

 2  of Financial Services Insurance. The salary range of this

 3  position shall be established by the Department of Management

 4  Services in accordance with the classification and pay plan

 5  established for the Selected Exempt Service.

 6         Section 129.  Paragraph (b) of subsection (5),

 7  paragraph (b) of subsection (7), paragraph (b) of subsection

 8  (8), and subsections (9), (11), and (13) of section 112.061,

 9  Florida Statutes, are amended to read:

10         112.061  Per diem and travel expenses of public

11  officers, employees, and authorized persons.--

12         (5)  COMPUTATION OF TRAVEL TIME FOR REIMBURSEMENT.--For

13  purposes of reimbursement and methods of calculating

14  fractional days of travel, the following principles are

15  prescribed:

16         (b)  A traveler shall not be reimbursed on a per diem

17  basis for Class C travel, but shall receive subsistence as

18  provided in this section, which allowance for meals shall be

19  based on the following schedule:

20         1.  Breakfast--When travel begins before 6 a.m. and

21  extends beyond 8 a.m.

22         2.  Lunch--When travel begins before 12 noon and

23  extends beyond 2 p.m.

24         3.  Dinner--When travel begins before 6 p.m. and

25  extends beyond 8 p.m., or when travel occurs during nighttime

26  hours due to special assignment.

27  

28  No allowance shall be made for meals when travel is confined

29  to the city or town of the official headquarters or immediate

30  vicinity; except assignments of official business outside the

31  traveler's regular place of employment if travel expenses are

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 1  approved.  The Chief Financial Officer Comptroller shall

 2  establish a schedule for processing Class C travel subsistence

 3  payments at least on a monthly basis.

 4         (7)  TRANSPORTATION.--

 5         (b)  The Department of Financial Services Banking and

 6  Finance may provide any form it deems necessary to cover

 7  travel requests for traveling on official business and when

 8  paid by the state.

 9         (8)  OTHER EXPENSES.--

10         (b)  Other expenses which are not specifically

11  authorized by this section may be approved by the Department

12  of Financial Services Banking and Finance pursuant to rules

13  adopted by it.  Expenses approved pursuant to this paragraph

14  shall be reported by the Department of Financial Services

15  Banking and Finance to the Auditor General annually.

16         (9)  RULES AND REGULATIONS.--

17         (a)  The Department of Financial Services Banking and

18  Finance shall adopt promulgate such rules and regulations,

19  including, but not limited to, the general criteria to be used

20  by a state agency to predetermine justification for attendance

21  by state officers and employees and authorized persons at

22  conventions and conferences, and prescribe such forms as may

23  be necessary to effectuate the purposes of this section.  The

24  department may also adopt rules prescribing the proper

25  disposition and use of promotional items and rebates offered

26  by common carriers and other entities in connection with

27  travel at public expense; however, before adopting such rules,

28  the department shall consult with the appropriation committees

29  of the Legislature.

30         (b)  Each state agency shall promulgate such additional

31  specific rules and regulations and specific criteria to be

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 1  used by it to predetermine justification for attendance by

 2  state officers and employees and authorized persons at

 3  conventions and conferences, not in conflict with the rules

 4  and regulations of the Department of Financial Services

 5  Banking and Finance or with the general criteria to be used by

 6  a state agency to predetermine justification for attendance by

 7  state officers and employees and authorized persons at

 8  conventions, as may be necessary to effectuate the purposes of

 9  this section.

10         (11)  TRAVEL AUTHORIZATION AND VOUCHER FORMS.--

11         (a)  Authorization forms.--The Department of Financial

12  Services Banking and Finance shall furnish a uniform travel

13  authorization request form which shall be used by all state

14  officers and employees and authorized persons when requesting

15  approval for the performance of travel to a convention or

16  conference.  The form shall include, but not be limited to,

17  provision for the name of each traveler, purpose of travel,

18  period of travel, estimated cost to the state, and a statement

19  of benefits accruing to the state by virtue of such travel.  A

20  copy of the program or agenda of the convention or conference,

21  itemizing registration fees and any meals or lodging included

22  in the registration fee, shall be attached to, and filed with,

23  the copy of the travel authorization request form on file with

24  the agency.  The form shall be signed by the traveler and by

25  the traveler's supervisor stating that the travel is to be

26  incurred in connection with official business of the state.

27  The head of the agency or his or her designated representative

28  shall not authorize or approve such request in the absence of

29  the appropriate signatures. A copy of the travel authorization

30  form shall be attached to, and become a part of, the support

31  of the agency's copy of the travel voucher.

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 1         (b)  Voucher forms.--

 2         1.  The Department of Financial Services Banking and

 3  Finance shall furnish a uniform travel voucher form which

 4  shall be used by all state officers and employees and

 5  authorized persons when submitting travel expense statements

 6  for approval and payment.  No travel expense statement shall

 7  be approved for payment by the Chief Financial Officer

 8  Comptroller unless made on the form prescribed and furnished

 9  by the department. The travel voucher form shall provide for,

10  among other things, the purpose of the official travel and a

11  certification or affirmation, to be signed by the traveler,

12  indicating the truth and correctness of the claim in every

13  material matter, that the travel expenses were actually

14  incurred by the traveler as necessary in the performance of

15  official duties, that per diem claimed has been appropriately

16  reduced for any meals or lodging included in the convention or

17  conference registration fees claimed by the traveler, and that

18  the voucher conforms in every respect with the requirements of

19  this section.  The original copy of the executed uniform

20  travel authorization request form shall be attached to the

21  uniform travel voucher on file with the respective agency.

22         2.  Statements for travel expenses incidental to the

23  rendering of medical services for and on behalf of clients of

24  the Department of Health shall be on forms approved by the

25  Department of Financial Services Banking and Finance.

26         (13)  DIRECT PAYMENT OF EXPENSES BY AGENCY.--Whenever

27  an agency requires an employee to incur either Class A or

28  Class B travel on emergency notice to the traveler, such

29  traveler may request the agency to pay his or her expenses for

30  meals and lodging directly to the vendor, and the agency may

31  pay the vendor the actual expenses for meals and lodging

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 1  during the travel period, limited to an amount not to exceed

 2  that authorized pursuant to this section. In emergency

 3  situations, the agency head or his or her designee may

 4  authorize an increase in the amount paid for a specific meal,

 5  provided that the total daily cost of meals does not exceed

 6  the total amount authorized for meals each day.  The agency

 7  head or his or her designee may also grant prior approval for

 8  a state agency to make direct payments of travel expenses in

 9  other situations that result in cost savings to the state, and

10  such cost savings shall be documented in the voucher submitted

11  to the Chief Financial Officer Comptroller for the direct

12  payment of travel expenses.  The provisions of this subsection

13  shall not be deemed to apply to any legislator or to any

14  employee of the Legislature.

15         Section 130.  Subsections (2), (5), and (6) of section

16  112.08, Florida Statutes, are amended to read:

17         112.08  Group insurance for public officers, employees,

18  and certain volunteers; physical examinations.--

19         (2)(a)  Every local governmental unit is authorized to

20  provide and pay out of its available funds for all or part of

21  the premium for life, health, accident, hospitalization, legal

22  expense, or annuity insurance, or all or any kinds of such

23  insurance, for the officers and employees of the local

24  governmental unit and for health, accident, hospitalization,

25  and legal expense insurance for the dependents of such

26  officers and employees upon a group insurance plan and, to

27  that end, to enter into contracts with insurance companies or

28  professional administrators to provide such insurance.  Before

29  entering any contract for insurance, the local governmental

30  unit shall advertise for competitive bids; and such contract

31  shall be let upon the basis of such bids. If a contracting

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 1  health insurance provider becomes financially impaired as

 2  determined by the Department of Financial Services Insurance

 3  or otherwise fails or refuses to provide the contracted-for

 4  coverage or coverages, the local government may purchase

 5  insurance, enter into risk management programs, or contract

 6  with third-party administrators and may make such acquisitions

 7  by advertising for competitive bids or by direct negotiations

 8  and contract. The local governmental unit may undertake

 9  simultaneous negotiations with those companies which have

10  submitted reasonable and timely bids and are found by the

11  local governmental unit to be fully qualified and capable of

12  meeting all servicing requirements.  Each local governmental

13  unit may self-insure any plan for health, accident, and

14  hospitalization coverage or enter into a risk management

15  consortium to provide such coverage, subject to approval based

16  on actuarial soundness by the Department of Financial Services

17  Insurance; and each shall contract with an insurance company

18  or professional administrator qualified and approved by the

19  Department of Financial Services Insurance to administer such

20  a plan.

21         (b)  In order to obtain approval from the Department of

22  Financial Services Insurance of any self-insured plan for

23  health, accident, and hospitalization coverage, each local

24  governmental unit or consortium shall submit its plan along

25  with a certification as to the actuarial soundness of the

26  plan, which certification is prepared by an actuary who is a

27  member of the Society of Actuaries or the American Academy of

28  Actuaries. The Department of Financial Services Insurance

29  shall not approve the plan unless it determines that the plan

30  is designed to provide sufficient revenues to pay current and

31  future liabilities, as determined according to generally

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 1  accepted actuarial principles.  After implementation of an

 2  approved plan, each local governmental unit or consortium

 3  shall annually submit to the Department of Financial Services

 4  Insurance a report which includes a statement prepared by an

 5  actuary who is a member of the Society of Actuaries or the

 6  American Academy of Actuaries as to the actuarial soundness of

 7  the plan.  The report is due 90 days after the close of the

 8  fiscal year of the plan.  The report shall consist of, but is

 9  not limited to:

10         1.  The adequacy of contribution rates in meeting the

11  level of benefits provided and the changes, if any, needed in

12  the contribution rates to achieve or preserve a level of

13  funding deemed adequate to enable payment of the benefit

14  amounts provided under the plan and a valuation of present

15  assets, based on statement value, and prospective assets and

16  liabilities of the plan and the extent of any unfunded accrued

17  liabilities.

18         2.  A plan to amortize any unfunded liabilities and a

19  description of actions taken to reduce unfunded liabilities.

20         3.  A description and explanation of actuarial

21  assumptions.

22         4.  A schedule illustrating the amortization of any

23  unfunded liabilities.

24         5.  A comparative review illustrating the level of

25  funds available to the plan from rates, investment income, and

26  other sources realized over the period covered by the report

27  with the assumptions used.

28         6.  A statement by the actuary that the report is

29  complete and accurate and that in the actuary's opinion the

30  techniques and assumptions used are reasonable and meet the

31  requirements and intent of this subsection.

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 1         7.  Other factors or statements as required by the

 2  Department of Insurance in order to determine the actuarial

 3  soundness of the plan.

 4  

 5  All assumptions used in the report shall be based on

 6  recognized actuarial principles acceptable to the Department

 7  of Financial Services Insurance. The Department of Financial

 8  Services Insurance shall review the report and shall notify

 9  the administrator of the plan and each entity participating in

10  the plan, as identified by the administrator, of any actuarial

11  deficiencies.  Each local governmental unit is responsible for

12  payment of valid claims of its employees that are not paid

13  within 60 days after receipt by the plan administrator or

14  consortium.

15         (c)  Every local governmental unit is authorized to

16  expend funds for preemployment physical examinations and

17  postemployment physical examinations.

18         (5)  The Department of Management Services shall

19  initiate and supervise a group insurance program providing

20  death and disability benefits for active members of the

21  Florida Highway Patrol Auxiliary, with coverage beginning July

22  1, 1978, and purchased from state funds appropriated for that

23  purpose.  The Department of Management Services, in

24  cooperation with the Department of Financial Services

25  Insurance, shall prepare specifications necessary to implement

26  the program, and the Department of Management Services shall

27  receive bids and award the contract in accordance with general

28  law.

29         (6)  The Department of Financial Services Insurance is

30  authorized to adopt rules to carry out the provisions of this

31  section as they pertain to its duties.

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 1         Section 131.  Paragraph (h) of subsection (2) of

 2  section 112.191, Florida Statutes, is amended to read:

 3         112.191  Firefighters; death benefits.--

 4         (2)

 5         (h)  The Division of the State Fire Marshal within the

 6  Department of Financial Services Insurance is directed to

 7  adopt promulgate rules as are necessary to implement the

 8  provisions of this section.

 9         Section 132.  Subsection (4), paragraph (a) of

10  subsection (6), paragraphs (a), (d), (f), and (h) of

11  subsection (8), paragraph (b) of subsection (10), and

12  subsections (11) and (12) of section 112.215, Florida

13  Statutes, are amended to read:

14         112.215  Government employees; deferred compensation

15  program.--

16         (4)(a)  The Chief Financial Officer Treasurer, with the

17  approval of the State Board of Administration, shall establish

18  such plan or plans of deferred compensation for state

19  employees, including all such investment vehicles or products

20  incident thereto, as may be available through, or offered by,

21  qualified companies or persons, and may approve one or more

22  such plans for implementation by and on behalf of the state

23  and its agencies and employees.

24         (b)  If the Chief Financial Officer Treasurer deems it

25  advisable, he or she shall have the power, with the approval

26  of the State Board of Administration, to create a trust or

27  other special funds for the segregation of funds or assets

28  resulting from compensation deferred at the request of

29  employees of the state or its agencies and for the

30  administration of such program.

31  

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 1         (c)  The Chief Financial Officer Treasurer, with the

 2  approval of the State Board of Administration, may delegate

 3  responsibility for administration of the plan to a person the

 4  Chief Financial Officer Treasurer determines to be qualified,

 5  compensate such person, and, directly or through such person

 6  or pursuant to a collective bargaining agreement, contract

 7  with a private corporation or institution to provide such

 8  services as may be part of any such plan or as may be deemed

 9  necessary or proper by the Chief Financial Officer Treasurer

10  or such person, including, but not limited to, providing

11  consolidated billing, individual and collective recordkeeping

12  and accountings, asset purchase, control, and safekeeping, and

13  direct disbursement of funds to employees or other

14  beneficiaries. The Chief Financial Officer Treasurer may

15  authorize a person, private corporation, or institution to

16  make direct disbursement of funds under the plan to an

17  employee or other beneficiary only upon the order of the

18  Comptroller to the Treasurer.

19         (d)  In accordance with such approved plan, and upon

20  contract or agreement with an eligible employee, deferrals of

21  compensation may be accomplished by payroll deductions made by

22  the appropriate officer or officers of the state, with such

23  funds being thereafter held and administered in accordance

24  with the plan.

25         (6)(a)  No deferred compensation plan of the state

26  shall become effective until approved by the State Board of

27  Administration and the Chief Financial Officer Treasurer is

28  satisfied by opinion from such federal agency or agencies as

29  may be deemed necessary that the compensation deferred

30  thereunder and/or the investment products purchased pursuant

31  to the plan will not be included in the employee's taxable

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 1  income under federal or state law until it is actually

 2  received by such employee under the terms of the plan, and

 3  that such compensation will nonetheless be deemed compensation

 4  at the time of deferral for the purposes of social security

 5  coverage, for the purposes of the state retirement system, and

 6  for any other retirement, pension, or benefit program

 7  established by law.

 8         (8)(a)  There is hereby created a Deferred Compensation

 9  Advisory Council composed of six seven members.

10         1.  One member shall be appointed by the Speaker of the

11  House of Representatives and the President of the Senate

12  jointly and shall be an employee of the legislative branch.

13         2.  One member shall be appointed by the Chief Justice

14  of the Supreme Court and shall be an employee of the judicial

15  branch.

16         3.  One member shall be appointed by the chair of the

17  Public Employees Relations Commission and shall be a nonexempt

18  public employee.

19         4.  The remaining four members shall be employed by the

20  executive branch and shall be appointed as follows:

21         a.  One member shall be appointed by the Chancellor of

22  the State University System and shall be an employee of the

23  university system.

24         b.  One member shall be appointed by the Chief

25  Financial Officer Treasurer and shall be an employee of the

26  Chief Financial Officer Treasurer.

27         c.  One member shall be appointed by the Governor and

28  shall be an employee of the executive branch.

29         d.  One member shall be appointed by the Comptroller

30  and shall be an employee of the Comptroller.

31  

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 1         (d)  The council shall meet at the call of its chair,

 2  at the request of a majority of its membership, or at the

 3  request of the Chief Financial Officer Treasurer, but not less

 4  than twice a year.  The business of the council shall be

 5  presented to the council in the form of an agenda.  The agenda

 6  shall be set by the Chief Financial Officer Treasurer and

 7  shall include items of business requested by the council

 8  members.

 9         (f)  The council shall make a report of each meeting to

10  the Chief Financial Officer Treasurer, which shall show the

11  names of the members present and shall include a record of its

12  discussions, recommendations, and actions taken.  The Chief

13  Financial Officer Treasurer shall keep the records of the

14  proceedings of each meeting on file and shall make the records

15  available to any interested person or group.

16         (h)  The advisory council shall provide assistance and

17  recommendations to the Chief Financial Officer Treasurer

18  relating to the provisions of the plan, the insurance or

19  investment options to be offered under the plan, and any other

20  contracts or appointments deemed necessary by the council and

21  the Chief Financial Officer Treasurer to carry out the

22  provisions of this act.  The Chief Financial Officer Treasurer

23  shall inform the council of the manner in which each council

24  recommendation is being addressed.  The Chief Financial

25  Officer Treasurer shall provide the council, at least

26  annually, a report on the status of the deferred compensation

27  program, including, but not limited to, information on

28  participant enrollment, amount of compensation deferred, total

29  plan assets, product provider performance, and participant

30  satisfaction with the program.

31         (10)

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 1         (b)1.  There is created in the State Treasury the

 2  Deferred Compensation Trust Fund, through which the Chief

 3  Financial Officer Treasurer as trustee shall hold moneys,

 4  pensions, annuities, or other benefits accrued or accruing

 5  under and pursuant to 26 U.S.C. s. 457 and the deferred

 6  compensation plan provided for therein and adopted by this

 7  state; and

 8         a.  All amounts of compensation deferred thereunder;

 9         b.  All property and rights purchased with such

10  amounts; and

11         c.  All income attributable to such amounts, property,

12  or rights.

13         2.  Notwithstanding the mandates of 26 U.S.C. s.

14  457(b)(6), all of the assets specified in subparagraph 1.

15  shall be held in trust for the exclusive benefit of

16  participants and their beneficiaries as mandated by 26 U.S.C.

17  s. 457(g)(1).

18         (11)  With respect to any funds held pursuant to a

19  deferred compensation plan, any plan provider which is a bank

20  or savings association and which provides time deposit

21  accounts and certificates of deposit as an investment product

22  to the plan participants may, with the approval of the State

23  Board of Administration for providers in the state plan, or

24  with the approval of the appropriate official or body

25  designated under subsection (5) for a plan of a county,

26  municipality, other political subdivision, or constitutional

27  county officer, be exempt from the provisions of chapter 280

28  requiring it to be a qualified public depository, provided:

29         (a)  The bank or savings association shall, to the

30  extent that the time deposit accounts or certificates of

31  deposit are not insured by the Federal Deposit Insurance

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 1  Corporation or the Federal Savings and Loan Insurance

 2  Corporation, pledge collateral with the Chief Financial

 3  Officer Treasurer for all state funds held by it under a

 4  deferred compensation plan, or with such other appropriate

 5  official for all public funds held by it under a deferred

 6  compensation plan of a county, municipality, other political

 7  subdivision, or constitutional county officer, in an amount

 8  which equals at least 150 percent of all uninsured deferred

 9  compensation funds then held.

10         (b)  Said collateral shall be of the kind permitted by

11  s. 280.13 and shall be pledged in the manner provided for by

12  the applicable provisions of chapter 280.

13  

14  The Chief Financial Officer Treasurer shall have all the

15  applicable powers provided in ss. 280.04, 280.05, and 280.08

16  relating to the sale or other disposition of the pledged

17  collateral.

18         (12)  The Chief Financial Officer Treasurer may adopt

19  any rule necessary to administer and implement this act with

20  respect to deferred compensation plans for state employees.

21         Section 133.  Paragraph (h) of subsection (4) of

22  section 112.3144, Florida Statutes, is amended to read:

23         112.3144  Full and public disclosure of financial

24  interests.--

25         (4)  Forms for compliance with the full and public

26  disclosure requirements of s. 8, Art. II of the State

27  Constitution shall be created by the Commission on Ethics. The

28  commission shall give notice of disclosure deadlines and

29  delinquencies and distribute forms in the following manner:

30         (h)  Notwithstanding any provision of chapter 120, any

31  fine imposed under this subsection which is not waived by

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 1  final order of the commission and which remains unpaid more

 2  than 60 days after the notice of payment due or more than 60

 3  days after the commission renders a final order on the appeal

 4  must be submitted to the Department of Financial Services

 5  Banking and Finance as a claim, debt, or other obligation owed

 6  to the state, and the department shall assign the collection

 7  of such fine to a collection agent as provided in s. 17.20.

 8         Section 134.  Paragraph (i) of subsection (6) of

 9  section 112.3145, Florida Statutes, is amended to read:

10         112.3145  Disclosure of financial interests and clients

11  represented before agencies.--

12         (6)  Forms for compliance with the disclosure

13  requirements of this section and a current list of persons

14  subject to disclosure shall be created by the commission and

15  provided to each supervisor of elections. The commission and

16  each supervisor of elections shall give notice of disclosure

17  deadlines and delinquencies and distribute forms in the

18  following manner:

19         (i)  Notwithstanding any provision of chapter 120, any

20  fine imposed under this subsection which is not waived by

21  final order of the commission and which remains unpaid more

22  than 60 days after the notice of payment due or more than 60

23  days after the commission renders a final order on the appeal

24  must be submitted to the Department of Financial Services

25  Banking and Finance as a claim, debt, or other obligation owed

26  to the state, and the department shall assign the collection

27  of such a fine to a collection agent as provided in s. 17.20.

28         Section 135.  Paragraph (c) of subsection (9) of

29  section 112.3189, Florida Statutes, is amended to read:

30         112.3189  Investigative procedures upon receipt of

31  whistle-blower information from certain state employees.--

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 1         (9)

 2         (c)  The Chief Inspector General shall transmit any

 3  final report under this section, any comments provided by the

 4  complainant, and any appropriate comments or recommendations

 5  by the Chief Inspector General to the Governor, to the Joint

 6  Legislative Auditing Committee, to the investigating agency,

 7  and to the Chief Financial Officer Comptroller.

 8         Section 136.  Paragraph (e) of subsection (3) of

 9  section 112.31895, Florida Statutes, is amended to read:

10         112.31895  Investigative procedures in response to

11  prohibited personnel actions.--

12         (3)  CORRECTIVE ACTION AND TERMINATION OF

13  INVESTIGATION.--

14         (e)1.  The Florida Commission on Human Relations may

15  request an agency or circuit court to order a stay, on such

16  terms as the court requires, of any personnel action for 45

17  days if the Florida Commission on Human Relations determines

18  that reasonable grounds exist to believe that a prohibited

19  personnel action has occurred, is occurring, or is to be

20  taken.  The Florida Commission on Human Relations may request

21  that such stay be extended for appropriate periods of time.

22         2.  If, in connection with any investigation, the

23  Florida Commission on Human Relations determines that

24  reasonable grounds exist to believe that a prohibited action

25  has occurred, is occurring, or is to be taken which requires

26  corrective action, the Florida Commission on Human Relations

27  shall report the determination together with any findings or

28  recommendations to the agency head and may report that

29  determination and those findings and recommendations to the

30  Governor and the Chief Financial Officer Comptroller. The

31  

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 1  Florida Commission on Human Relations may include in the

 2  report recommendations for corrective action to be taken.

 3         3.  If, after 20 days, the agency does not implement

 4  the recommended action, the Florida Commission on Human

 5  Relations shall terminate the investigation and notify the

 6  complainant of the right to appeal under subsection (4), or

 7  may petition the agency for corrective action under this

 8  subsection.

 9         4.  If the Florida Commission on Human Relations finds,

10  in consultation with the individual subject to the prohibited

11  action, that the agency has implemented the corrective action,

12  the commission shall file such finding with the agency head,

13  together with any written comments that the individual

14  provides, and terminate the investigation.

15         Section 137.  Paragraph (f) of subsection (5) of

16  section 112.3215, Florida Statutes, is amended to read:

17         112.3215  Lobbyists before the executive branch or the

18  Constitution Revision Commission; registration and reporting;

19  investigation by commission.--

20         (5)

21         (f)  The commission shall provide by rule a procedure

22  by which a lobbyist who fails to timely file a report shall be

23  notified and assessed fines.  The rule shall provide for the

24  following:

25         1.  Upon determining that the report is late, the

26  person designated to review the timeliness of reports shall

27  immediately notify the lobbyist as to the failure to timely

28  file the report and that a fine is being assessed for each

29  late day. The fine shall be $50 per day per report for each

30  late day up to a maximum of $5,000 per late report.

31  

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 1         2.  Upon receipt of the report, the person designated

 2  to review the timeliness of reports shall determine the amount

 3  of the fine due based upon the earliest of the following:

 4         a.  When a report is actually received by the lobbyist

 5  registration and reporting office.

 6         b.  When the report is postmarked.

 7         c.  When the certificate of mailing is dated.

 8         d.  When the receipt from an established courier

 9  company is dated.

10         3.  Such fine shall be paid within 30 days after the

11  notice of payment due is transmitted by the Lobbyist

12  Registration Office, unless appeal is made to the commission.

13  The moneys shall be deposited into the Executive Branch Lobby

14  Registration Trust Fund.

15         4.  A fine shall not be assessed against a lobbyist the

16  first time any reports for which the lobbyist is responsible

17  are not timely filed. However, to receive the one-time fine

18  waiver, all reports for which the lobbyist is responsible must

19  be filed within 30 days after the notice that any reports have

20  not been timely filed is transmitted by the Lobbyist

21  Registration Office. A fine shall be assessed for any

22  subsequent late-filed reports.

23         5.  Any lobbyist may appeal or dispute a fine, based

24  upon unusual circumstances surrounding the failure to file on

25  the designated due date, and may request and shall be entitled

26  to a hearing before the commission, which shall have the

27  authority to waive the fine in whole or in part for good cause

28  shown.  Any such request shall be made within 30 days after

29  the notice of payment due is transmitted by the Lobbyist

30  Registration Office.  In such case, the lobbyist shall, within

31  the 30-day period, notify the person designated to review the

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 1  timeliness of reports in writing of his or her intention to

 2  bring the matter before the commission.

 3         6.  The person designated to review the timeliness of

 4  reports shall notify the commission of the failure of a

 5  lobbyist to file a report after notice or of the failure of a

 6  lobbyist to pay the fine imposed.

 7         7.  Notwithstanding any provision of chapter 120, any

 8  fine imposed under this subsection that is not waived by final

 9  order of the commission and that remains unpaid more than 60

10  days after the notice of payment due or more than 60 days

11  after the commission renders a final order on the lobbyist's

12  appeal shall be collected by the Department of Financial

13  Services Banking and Finance as a claim, debt, or other

14  obligation owed to the state, and the department may assign

15  the collection of such fine to a collection agent as provided

16  in s. 17.20.

17         Section 138.  Subsection (4) of section 112.63, Florida

18  Statutes, is amended to read:

19         112.63  Actuarial reports and statements of actuarial

20  impact; review.--

21         (4)  Upon receipt, pursuant to subsection (2), of an

22  actuarial report, or upon receipt, pursuant to subsection (3),

23  of a statement of actuarial impact, the Department of

24  Management Services shall acknowledge such receipt, but shall

25  only review and comment on each retirement system's or plan's

26  actuarial valuations at least on a triennial basis.  If the

27  department finds that the actuarial valuation is not complete,

28  accurate, or based on reasonable assumptions, or if the

29  department does not receive the actuarial report or statement

30  of actuarial impact, the department shall notify the local

31  government and request appropriate adjustment. If, after a

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 1  reasonable period of time, a satisfactory adjustment is not

 2  made, the affected local government or the department may

 3  petition for a hearing under the provisions of ss. 120.569 and

 4  120.57. If the administrative law judge recommends in favor of

 5  the department, the department shall perform an actuarial

 6  review or prepare the statement of actuarial impact. The cost

 7  to the department of performing such actuarial review or

 8  preparing such statement shall be charged to the governmental

 9  entity of which the employees are covered by the retirement

10  system or plan.  If payment of such costs is not received by

11  the department within 60 days after receipt by the

12  governmental entity of the request for payment, the department

13  shall certify to the Chief Financial Officer Comptroller the

14  amount due, and the Chief Financial Officer Comptroller shall

15  pay such amount to the department from any funds payable to

16  the governmental entity of which the employees are covered by

17  the retirement system or plan.  If the administrative law

18  judge recommends in favor of the local retirement system and

19  the department performs an actuarial review, the cost to the

20  department of performing the actuarial review shall be paid by

21  the department.

22         Section 139.  Section 114.03, Florida Statutes, is

23  amended to read:

24         114.03  Certain executive officers not to absent

25  themselves from the state.--The Secretary of State, Attorney

26  General, Chief Financial Officer Comptroller, Treasurer,

27  Commissioner of Education, and Commissioner of Agriculture

28  shall reside at the capital, and no member of the Cabinet

29  shall absent himself or herself from the state for a period of

30  60 consecutive days or more without the consent of the

31  Governor and a majority of the Cabinet.  If a Cabinet officer

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 1  should refuse or fail to comply with and observe the

 2  requirements of this section, his or her office may be deemed

 3  vacant pursuant to paragraph (f) or paragraph (g) of s.

 4  114.01(1), as appropriate.

 5         Section 140.  Section 116.03, Florida Statutes, is

 6  amended to read:

 7         116.03  Officers to report fees collected.--Each state

 8  and county officer who receives all or any part of his or her

 9  compensation in fees or commissions, or other remuneration,

10  shall keep a complete report of all fees and commissions, or

11  other remuneration collected, and shall make a report to the

12  Department of Financial Services Banking and Finance of all

13  such fees and commissions, or other remuneration, annually on

14  December 31 of each and every year.  Such report shall be made

15  upon forms to be prescribed from time to time by the

16  department, and shall show in detail the source, character and

17  amount of all his or her official expenses and the net amount

18  that the office has paid up to the time of making such report.

19  All officers shall make out, fill in and subscribe and

20  properly forward to the department such reports, and swear to

21  the accuracy and competency of such reports.

22         Section 141.  Section 116.04, Florida Statutes, is

23  amended to read:

24         116.04  Failure of officer to make sworn report of

25  fees.--Any officer who shall fail or refuse to make,

26  subscribe, and swear, or to file with the Department of

27  Financial Services Banking and Finance a report of all fees,

28  commissions, or other remuneration collected, as required by

29  law, or if any officer shall knowingly or willfully make false

30  or incomplete reports, or in any report violate any of the

31  provisions of s. 116.03 he or she shall be guilty of a

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 1  misdemeanor of the first degree, punishable as provided in  s.

 2  775.082 or s. 775.083.

 3         Section 142.  Section 116.05, Florida Statutes, is

 4  amended to read:

 5         116.05  Examination and publication by Department of

 6  Financial Services Banking and Finance.--The Department of

 7  Financial Services Banking and Finance shall have examined and

 8  verified any of the reports received under s. 116.03 whenever

 9  in its judgment the same may be necessary, and the department

10  shall cause the matter and things in each of said reports to

11  be published one time in a newspaper published in the county

12  in which such report originated, in such form as it shall

13  direct, and the expense of such publication shall be paid by

14  the county commissioners of such county.

15         Section 143.  Section 116.06, Florida Statutes, is

16  amended to read:

17         116.06  Summary of reports; certain officers not

18  required to report fees.--A summary of all such reports shall

19  be included by the Department of Financial Services Banking

20  and Finance in its annual report to the Governor, except that

21  jurors and notaries public shall not be required to make such

22  reports as provided for in s. 116.03.

23         Section 144.  Section 116.14, Florida Statutes, is

24  amended to read:

25         116.14  Receipts required from purchasers of state

26  property.--Upon the sale of any state property by the

27  superintendent and presidents of state institutions as

28  provided by law, they shall take receipt for the same from the

29  purchaser, which receipt shall be forwarded, together with the

30  proceeds of the sale, to the Chief Financial Officer State

31  Treasurer.

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 1         Section 145.  Paragraph (c) of subsection (15) of

 2  section 120.52, Florida Statutes, is amended to read:

 3         120.52  Definitions.--As used in this act:

 4         (15)  "Rule" means each agency statement of general

 5  applicability that implements, interprets, or prescribes law

 6  or policy or describes the procedure or practice requirements

 7  of an agency and includes any form which imposes any

 8  requirement or solicits any information not specifically

 9  required by statute or by an existing rule.  The term also

10  includes the amendment or repeal of a rule.  The term does not

11  include:

12         (c)  The preparation or modification of:

13         1.  Agency budgets.

14         2.  Statements, memoranda, or instructions to state

15  agencies issued by the Chief Financial Officer or Comptroller

16  as chief fiscal officer of the state and relating or

17  pertaining to claims for payment submitted by state agencies

18  to the Chief Financial Officer or Comptroller.

19         3.  Contractual provisions reached as a result of

20  collective bargaining.

21         4.  Memoranda issued by the Executive Office of the

22  Governor relating to information resources management.

23         Section 146.  Section 120.80, Florida Statutes, is

24  amended to read:

25         120.80  Exceptions and special requirements;

26  agencies.--

27         (1)  DIVISION OF ADMINISTRATIVE

28  HEARINGS.--Notwithstanding s. 120.57(1)(a), a hearing in which

29  the division is a party shall not be conducted by an

30  administrative law judge assigned by the division.  An

31  

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 1  attorney assigned by the Administration Commission shall be

 2  the hearing officer.

 3         (2)  DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES.--

 4         (a)  Marketing orders under chapter 527, chapter 573,

 5  or chapter 601 are not rules.

 6         (b)  Notwithstanding s. 120.57(1)(a), hearings held by

 7  the Department of Agriculture and Consumer Services pursuant

 8  to chapter 601 need not be conducted by an administrative law

 9  judge assigned by the division.

10         (3)  DEPARTMENT OF FINANCIAL SERVICES BANKING AND

11  FINANCE.--

12         (a)  Notwithstanding s. 120.60(1), in proceedings for

13  the issuance, denial, renewal, or amendment of a license or

14  approval of a merger pursuant to title XXXVIII:

15         1.a.  The Department of Financial Services Banking and

16  Finance shall have published in the Florida Administrative

17  Weekly notice of the application within 21 days after receipt.

18         b.  Within 21 days after publication of notice, any

19  person may request a hearing. Failure to request a hearing

20  within 21 days after notice constitutes a waiver of any right

21  to a hearing. The Department of Financial Services Banking and

22  Finance or an applicant may request a hearing at any time

23  prior to the issuance of a final order. Hearings shall be

24  conducted pursuant to ss. 120.569 and 120.57, except that the

25  Department of Financial Services Banking and Finance shall by

26  rule provide for participation by the general public.

27         2.  Should a hearing be requested as provided by

28  sub-subparagraph 1.b., the applicant or licensee shall publish

29  at its own cost a notice of the hearing in a newspaper of

30  general circulation in the area affected by the application.

31  

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 1  The Department of Financial Services Banking and Finance may

 2  by rule specify the format and size of the notice.

 3         3.  Notwithstanding s. 120.60(1), and except as

 4  provided in subparagraph 4., every application for license for

 5  a new bank, new trust company, new credit union, or new

 6  savings and loan association shall be approved or denied

 7  within 180 days after receipt of the original application or

 8  receipt of the timely requested additional information or

 9  correction of errors or omissions. Any application for such a

10  license or for acquisition of such control which is not

11  approved or denied within the 180-day period or within 30 days

12  after conclusion of a public hearing on the application,

13  whichever is later, shall be deemed approved subject to the

14  satisfactory completion of conditions required by statute as a

15  prerequisite to license and approval of insurance of accounts

16  for a new bank, a new savings and loan association, or a new

17  credit union by the appropriate insurer.

18         4.  In the case of every application for license to

19  establish a new bank, trust company, or capital stock savings

20  association in which a foreign national proposes to own or

21  control 10 percent or more of any class of voting securities,

22  and in the case of every application by a foreign national for

23  approval to acquire control of a bank, trust company, or

24  capital stock savings association, the Department of Financial

25  Services Banking and Finance shall request that a public

26  hearing be conducted pursuant to ss. 120.569 and 120.57.

27  Notice of such hearing shall be published by the applicant as

28  provided in subparagraph 2. The failure of any such foreign

29  national to appear personally at the hearing shall be grounds

30  for denial of the application. Notwithstanding the provisions

31  of s. 120.60(1) and subparagraph 3., every application

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 1  involving a foreign national shall be approved or denied

 2  within 1 year after receipt of the original application or any

 3  timely requested additional information or the correction of

 4  any errors or omissions, or within 30 days after the

 5  conclusion of the public hearing on the application, whichever

 6  is later.

 7         (b)  In any application for a license or merger

 8  pursuant to title XXXVIII which is referred by the agency to

 9  the division for hearing, the administrative law judge shall

10  complete and submit to the agency and to all parties a written

11  report consisting of findings of fact and rulings on

12  evidentiary matters. The agency shall allow each party at

13  least 10 days in which to submit written exceptions to the

14  report.

15         (c)  Notwithstanding s. 120.60(1), every application

16  for a certificate of authority as required by s. 624.401 shall

17  be approved or denied within 180 days after receipt of the

18  original application. Any application for a certificate of

19  authority which is not approved or denied within the 180-day

20  period, or within 30 days after conclusion of a public hearing

21  held on the application, shall be deemed approved, subject to

22  the satisfactory completion of conditions required by statute

23  as a prerequisite to licensure.

24         (4)  DEPARTMENT OF BUSINESS AND PROFESSIONAL

25  REGULATION.--

26         (a)  Business regulation.--The Division of Pari-mutuel

27  Wagering is exempt from the hearing and notice requirements of

28  ss. 120.569 and 120.57(1)(a), but only for stewards, judges,

29  and boards of judges when the hearing is to be held for the

30  purpose of the imposition of fines or suspensions as provided

31  by rules of the Division of Pari-mutuel Wagering, but not for

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 1  revocations, and only upon violations of subparagraphs 1.-6.

 2  The Division of Pari-mutuel Wagering shall adopt rules

 3  establishing alternative procedures, including a hearing upon

 4  reasonable notice, for the following violations:

 5         1.  Horse riding, harness riding, greyhound

 6  interference, and jai alai game actions in violation of

 7  chapter 550.

 8         2.  Application and usage of drugs and medication to

 9  horses, greyhounds, and jai alai players in violation of

10  chapter 550.

11         3.  Maintaining or possessing any device which could be

12  used for the injection or other infusion of a prohibited drug

13  to horses, greyhounds, and jai alai players in violation of

14  chapter 550.

15         4.  Suspensions under reciprocity agreements between

16  the Division of Pari-mutuel Wagering and regulatory agencies

17  of other states.

18         5.  Assault or other crimes of violence on premises

19  licensed for pari-mutuel wagering.

20         6.  Prearranging the outcome of any race or game.

21         (b)  Professional regulation.--Notwithstanding s.

22  120.57(1)(a), formal hearings may not be conducted by the

23  Secretary of Business and Professional Regulation or a board

24  or member of a board within the Department of Business and

25  Professional Regulation for matters relating to the regulation

26  of professions, as defined by chapter 455.

27         (5)  FLORIDA LAND AND WATER ADJUDICATORY

28  COMMISSION.--Notwithstanding the provisions of s.

29  120.57(1)(a), when the Florida Land and Water Adjudicatory

30  Commission receives a notice of appeal pursuant to s. 380.07,

31  the commission shall notify the division within 60 days after

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 1  receipt of the notice of appeal if the commission elects to

 2  request the assignment of an administrative law judge.

 3         (6)  DEPARTMENT OF LAW ENFORCEMENT.--Law enforcement

 4  policies and procedures of the Department of Law Enforcement

 5  which relate to the following are not rules as defined by this

 6  chapter:

 7         (a)  The collection, management, and dissemination of

 8  active criminal intelligence information and active criminal

 9  investigative information; management of criminal

10  investigations; and management of undercover investigations

11  and the selection, assignment, and fictitious identity of

12  undercover personnel.

13         (b)  The recruitment, management, identity, and

14  remuneration of confidential informants or sources.

15         (c)  Surveillance techniques, the selection of

16  surveillance personnel, and electronic surveillance, including

17  court-ordered and consensual interceptions of communication

18  conducted pursuant to chapter 934.

19         (d)  The safety and release of hostages.

20         (e)  The provision of security and protection to public

21  figures.

22         (f)  The protection of witnesses.

23         (7)  DEPARTMENT OF CHILDREN AND FAMILY

24  SERVICES.--Notwithstanding s. 120.57(1)(a), hearings conducted

25  within the Department of Children and Family Services in the

26  execution of those social and economic programs administered

27  by the former Division of Family Services of the former

28  Department of Health and Rehabilitative Services prior to the

29  reorganization effected by chapter 75-48, Laws of Florida,

30  need not be conducted by an administrative law judge assigned

31  by the division.

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 1         (8)  DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES.--

 2         (a)  Drivers' licenses.--

 3         1.  Notwithstanding s. 120.57(1)(a), hearings regarding

 4  drivers' licensing pursuant to chapter 322 need not be

 5  conducted by an administrative law judge assigned by the

 6  division.

 7         2.  Notwithstanding s. 120.60(5), cancellation,

 8  suspension, or revocation of a driver's license shall be by

 9  personal delivery to the licensee or by first-class mail as

10  provided in s. 322.251.

11         (b)  Wrecker operators.--Notwithstanding s.

12  120.57(1)(a), hearings held by the Division of the Florida

13  Highway Patrol of the Department of Highway Safety and Motor

14  Vehicles to deny, suspend, or remove a wrecker operator from

15  participating in the wrecker rotation system established by s.

16  321.051 need not be conducted by an administrative law judge

17  assigned by the division. These hearings shall be held by a

18  hearing officer appointed by the director of the Division of

19  the Florida Highway Patrol.

20         (9)  DEPARTMENT OF INSURANCE.--Notwithstanding s.

21  120.60(1), every application for a certificate of authority as

22  required by s. 624.401 shall be approved or denied within 180

23  days after receipt of the original application. Any

24  application for a certificate of authority which is not

25  approved or denied within the 180-day period, or within 30

26  days after conclusion of a public hearing held on the

27  application, shall be deemed approved, subject to the

28  satisfactory completion of conditions required by statute as a

29  prerequisite to licensure.

30         (9)(10)  DEPARTMENT OF LABOR AND EMPLOYMENT SECURITY.--

31         (a)  Unemployment compensation.--

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 1         1.  Notwithstanding s. 120.54, the rulemaking

 2  provisions of this chapter do not apply to unemployment

 3  compensation appeals referees.

 4         2.  Notwithstanding s. 120.57(1)(a), hearings may be

 5  conducted by the Unemployment Appeals Commission in

 6  unemployment compensation appeals, unemployment compensation

 7  appeals referees, and special deputies pursuant to s. 443.141.

 8         (b)  Workers' compensation.--Notwithstanding s.

 9  120.52(1), a judge of compensation claims, in the adjudication

10  of matters pursuant to chapter 440, shall not be considered an

11  agency or part of an agency for the purposes of this chapter.

12         (10)(11)  NATIONAL GUARD.--Notwithstanding s.

13  120.52(15), the enlistment, organization, administration,

14  equipment, maintenance, training, and discipline of the

15  militia, National Guard, organized militia, and unorganized

16  militia, as provided by s. 2, Art. X of the State

17  Constitution, are not rules as defined by this chapter.

18         (11)(12)  PUBLIC EMPLOYEES RELATIONS COMMISSION.--

19         (a)  Notwithstanding s. 120.57(1)(a), hearings within

20  the jurisdiction of the Public Employees Relations Commission

21  need not be conducted by an administrative law judge assigned

22  by the division.

23         (b)  Section 120.60 does not apply to certification of

24  employee organizations pursuant to s. 447.307.

25         (12)(13)  FLORIDA PUBLIC SERVICE COMMISSION.--

26         (a)  Agency statements that relate to cost-recovery

27  clauses, factors, or mechanisms implemented pursuant to

28  chapter 366, relating to public utilities, are exempt from the

29  provisions of s. 120.54(1)(a).

30         (b)  Notwithstanding ss. 120.569 and 120.57, a hearing

31  on an objection to proposed action of the Florida Public

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 1  Service Commission may only address the issues in dispute.

 2  Issues in the proposed action which are not in dispute are

 3  deemed stipulated.

 4         (c)  The Florida Public Service Commission is exempt

 5  from the time limitations in s. 120.60(1) when issuing a

 6  license.

 7         (d)  Notwithstanding the provisions of this chapter, in

 8  implementing the Telecommunications Act of 1996, Pub. L. No.

 9  104-104, the Public Service Commission is authorized to employ

10  procedures consistent with that act.

11         (e)  Notwithstanding the provisions of this chapter, s.

12  350.128, or s. 364.381, appellate jurisdiction for Public

13  Service Commission decisions that implement the

14  Telecommunications Act of 1996, Pub. L. No. 104-104, shall be

15  consistent with the provisions of that act.

16         (f)  Notwithstanding any provision of this chapter, all

17  public utilities and companies regulated by the Public Service

18  Commission shall be entitled to proceed under the interim rate

19  provisions of chapter 364 or the procedures for interim rates

20  contained in chapter 74-195, Laws of Florida, or as otherwise

21  provided by law.

22         (13)(14)  DEPARTMENT OF REVENUE.--

23         (a)  Assessments.--An assessment of tax, penalty, or

24  interest by the Department of Revenue is not a final order as

25  defined by this chapter. Assessments by the Department of

26  Revenue shall be deemed final as provided in the statutes and

27  rules governing the assessment and collection of taxes.

28         (b)  Taxpayer contest proceedings.--

29         1.  In any administrative proceeding brought pursuant

30  to this chapter as authorized by s. 72.011(1), the taxpayer

31  shall be designated the "petitioner" and the Department of

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 1  Revenue shall be designated the "respondent," except that for

 2  actions contesting an assessment or denial of refund under

 3  chapter 207, the Department of Highway Safety and Motor

 4  Vehicles shall be designated the "respondent," and for actions

 5  contesting an assessment or denial of refund under chapters

 6  210, 550, 561, 562, 563, 564, and 565, the Department of

 7  Business and Professional Regulation shall be designated the

 8  "respondent."

 9         2.  In any such administrative proceeding, the

10  applicable department's burden of proof, except as otherwise

11  specifically provided by general law, shall be limited to a

12  showing that an assessment has been made against the taxpayer

13  and the factual and legal grounds upon which the applicable

14  department made the assessment.

15         3.a.  Prior to filing a petition under this chapter,

16  the taxpayer shall pay to the applicable department the amount

17  of taxes, penalties, and accrued interest assessed by that

18  department which are not being contested by the taxpayer.

19  Failure to pay the uncontested amount shall result in the

20  dismissal of the action and imposition of an additional

21  penalty of 25 percent of the amount taxed.

22         b.  The requirements of s. 72.011(2) and (3)(a) are

23  jurisdictional for any action under this chapter to contest an

24  assessment or denial of refund by the Department of Revenue,

25  the Department of Highway Safety and Motor Vehicles, or the

26  Department of Business and Professional Regulation.

27         4.  Except as provided in s. 220.719, further

28  collection and enforcement of the contested amount of an

29  assessment for nonpayment or underpayment of any tax,

30  interest, or penalty shall be stayed beginning on the date a

31  

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 1  petition is filed. Upon entry of a final order, an agency may

 2  resume collection and enforcement action.

 3         5.  The prevailing party, in a proceeding under ss.

 4  120.569 and 120.57 authorized by s. 72.011(1), may recover all

 5  legal costs incurred in such proceeding, including reasonable

 6  attorney's fees, if the losing party fails to raise a

 7  justiciable issue of law or fact in its petition or response.

 8         6.  Upon review pursuant to s. 120.68 of final agency

 9  action concerning an assessment of tax, penalty, or interest

10  with respect to a tax imposed under chapter 212, or the denial

11  of a refund of any tax imposed under chapter 212, if the court

12  finds that the Department of Revenue improperly rejected or

13  modified a conclusion of law, the court may award reasonable

14  attorney's fees and reasonable costs of the appeal to the

15  prevailing appellant.

16         (c)  Proceedings for administrative child support

17  orders.--Notwithstanding the provisions of s. 120.569 or s.

18  120.57 to the contrary, in proceedings for the establishment

19  of administrative support orders pursuant to s. 409.2563,

20  final orders in cases referred by the Department of Revenue to

21  the Division of Administrative Hearings shall be entered by

22  the division's administrative law judge and transmitted to the

23  Department of Revenue for filing and indexing.  The Department

24  of Revenue has the right to seek judicial review of a final

25  order entered by an administrative law judge.  Administrative

26  support orders rendered pursuant to s. 409.2563 may be

27  enforced pursuant to s. 120.69 or, alternatively, by any

28  method prescribed by law for the enforcement of judicial

29  support orders, except contempt.

30         (14)(15)  DEPARTMENT OF HEALTH.--Notwithstanding s.

31  120.57(1)(a), formal hearings may not be conducted by the

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 1  Secretary of Health, the Secretary of Health Care

 2  Administration, or a board or member of a board within the

 3  Department of Health or the Agency for Health Care

 4  Administration for matters relating to the regulation of

 5  professions, as defined by chapter 456. Notwithstanding s.

 6  120.57(1)(a), hearings conducted within the Department of

 7  Health in execution of the Special Supplemental Nutrition

 8  Program for Women, Infants, and Children; Child Care Food

 9  Program; Children's Medical Services Program; the Brain and

10  Spinal Cord Injury Program; and the exemption from

11  disqualification reviews for certified nurse assistants

12  program need not be conducted by an administrative law judge

13  assigned by the division. The Department of Health may

14  contract with the Department of Children and Family Services

15  for a hearing officer in these matters.

16         (15)(16)  DEPARTMENT OF ENVIRONMENTAL

17  PROTECTION.--Notwithstanding the provisions of s.

18  120.54(1)(d), the Department of Environmental Protection, in

19  undertaking rulemaking to establish best available control

20  technology, lowest achievable emissions rate, or case-by-case

21  maximum available control technology for purposes of s.

22  403.08725, shall not adopt the lowest regulatory cost

23  alternative if such adoption would prevent the agency from

24  implementing federal requirements.

25         (16)(17)  FLORIDA BUILDING COMMISSION.--

26         (a)  Notwithstanding the provisions of s. 120.542, the

27  Florida Building Commission may not accept a petition for

28  waiver or variance and may not grant any waiver or variance

29  from the requirements of the Florida Building Code.

30         (b)  The Florida Building Commission shall adopt within

31  the Florida Building Code criteria and procedures for

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 1  alternative means of compliance with the code or local

 2  amendments thereto, for enforcement by local governments,

 3  local enforcement districts, or other entities authorized by

 4  law to enforce the Florida Building Code. Appeals from the

 5  denial of the use of alternative means shall be heard by the

 6  local board, if one exists, and may be appealed to the Florida

 7  Building Commission.

 8         Section 147.  Section 121.0312, Florida Statutes, is

 9  amended to read:

10         121.0312  Review; actuarial valuation report;

11  contribution rate determination process.--The Governor, Chief

12  Financial Officer Comptroller, and Attorney General Treasurer,

13  sitting as the Board of Trustees of the State Board of

14  Administration, shall review the actuarial valuation report

15  prepared in accordance with the provisions of this chapter.

16  The board shall review the process by which Florida Retirement

17  System contribution rates are determined and recommend and

18  submit any comments regarding the process to the Legislature.

19         Section 148.  Paragraph (e) of subsection (1) of

20  section 121.055, Florida Statutes, is amended to read:

21         121.055  Senior Management Service Class.--There is

22  hereby established a separate class of membership within the

23  Florida Retirement System to be known as the "Senior

24  Management Service Class," which shall become effective

25  February 1, 1987.

26         (1)

27         (e)  Effective January 1, 1991, participation in the

28  Senior Management Service Class shall be compulsory for the

29  number of senior managers who have policymaking authority with

30  the State Board of Administration, as determined by the

31  Governor, Chief Financial Officer Treasurer, and Attorney

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 1  General Comptroller acting as the State Board of

 2  Administration, unless such member elects to participate in

 3  the Senior Management Service Optional Annuity Program as

 4  established in subsection (6) in lieu of participation in the

 5  Senior Management Service Class. Such election shall be made

 6  in writing and filed with the division and the personnel

 7  officer of the State Board of Administration within 90 days

 8  after becoming eligible for membership in the Senior

 9  Management Service Class.

10         Section 149.  Paragraph (a) of subsection (2) of

11  section 121.061, Florida Statutes, is amended to read:

12         121.061  Funding.--

13         (2)(a)  Should any employer other than a state employer

14  fail to make the retirement and social security contributions,

15  both member and employer contributions, required by this

16  chapter, then, upon request by the administrator, the

17  Department of Revenue or the Department of Financial Services

18  Banking and Finance, as the case may be, shall deduct the

19  amount owed by the employer from any funds to be distributed

20  by it to the county, city, special district, or consolidated

21  form of government.  The amounts so deducted shall be

22  transferred to the administrator for further distribution to

23  the trust funds in accordance with this chapter.

24         Section 150.  Section 121.133, Florida Statutes, is

25  amended to read:

26         121.133  Cancellation of uncashed

27  warrants.--Notwithstanding the provisions of s. 17.26 or s.

28  717.123 to the contrary, effective July 1, 1998, if any state

29  warrant issued by the Chief Financial Officer Comptroller for

30  the payment of retirement benefits from the Florida Retirement

31  System Trust Fund, or any other pension trust fund

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 1  administered by the department, is not presented for payment

 2  within 1 year after the last day of the month in which it was

 3  originally issued, the Chief Financial Officer Comptroller

 4  shall cancel the benefit warrant and credit the amount of the

 5  warrant to the Florida Retirement System Trust Fund or other

 6  pension trust fund administered by the department, as

 7  appropriate. The department may provide for issuance of a

 8  replacement warrant when deemed appropriate.

 9         Section 151.  Paragraph (b) of subsection (12) of

10  section 121.4501, Florida Statutes, is amended to read:

11         121.4501  Public Employee Optional Retirement

12  Program.--

13         (12)  ADVISORY COMMITTEES TO PROVIDE ADVICE AND

14  ASSISTANCE.--The Investment Advisory Council and the Public

15  Employee Optional Retirement Program Advisory Committee shall

16  assist the board in implementing and administering the Public

17  Employee Optional Retirement Program.

18         (b)1.  The Public Employee Optional Retirement Program

19  Advisory Committee shall be composed of seven members. The

20  President of the Senate shall appoint two members, the Speaker

21  of the House of Representatives shall appoint two members, the

22  Governor shall appoint two members one member, the Treasurer

23  shall appoint one member, and the Chief Financial Officer

24  Comptroller shall appoint one member. On January 7, 2003, the

25  term of office of the member appointed by the Treasurer and of

26  the member appointed by the Comptroller expires; and the Chief

27  Financial Officer shall choose one of those members for

28  reappointment for the remainder of the term. The members of

29  the advisory committee shall elect a member as chair. The

30  appointments shall be made by September 1, 2000, and the

31  committee shall meet to organize by October 1, 2000. The

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 1  initial appointments shall be for a term of 24 months. Each

 2  appointing authority shall fill any vacancy occurring among

 3  its appointees for the remainder of the original term.

 4         2.  The advisory committee shall make recommendations

 5  on the selection of the third-party administrator, the

 6  education providers, and the investment products and

 7  providers. The committee's recommendations on the third-party

 8  administrator must be forwarded to the Trustees of the State

 9  Board of Administration by January 1, 2001. The

10  recommendations on the education providers must be forwarded

11  to the trustees by April 1, 2001.

12         3.  The advisory committee's recommendations and

13  activities shall be guided by the best interests of the

14  employees, considering the interests of employers, and the

15  intent of the Legislature in establishing the Public Employee

16  Optional Retirement Program.

17         4.  The staff of the state board and the department

18  shall assist the advisory committee.

19         Section 152.  Paragraphs (a) and (b) of subsection (11)

20  of section 125.0104, Florida Statutes, are amended to read:

21         125.0104  Tourist development tax; procedure for

22  levying; authorized uses; referendum; enforcement.--

23         (11)  INTEREST PAID ON DISTRIBUTIONS.--

24         (a)  Interest shall be paid on undistributed taxes

25  collected and remitted to the Department of Revenue under this

26  section.  Such interest shall be included along with the tax

27  proceeds distributed to the counties and shall be paid from

28  moneys transferred from the General Revenue Fund.  The

29  department shall calculate the interest for net tax

30  distributions using the average daily rate that was earned by

31  the State Treasury for the preceding calendar quarter and paid

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 1  to the General Revenue Fund.  This rate shall be certified by

 2  the Chief Financial Officer Treasurer to the department by the

 3  20th day following the close of each quarter.

 4         (b)  The interest applicable to taxes collected under

 5  this section shall be calculated by multiplying the tax

 6  amounts to be distributed times the daily rate times the

 7  number of days after the third working day following the date

 8  the tax is due and payable pursuant to s. 212.11 until the

 9  date the department issues a voucher to request the Chief

10  Financial Officer Comptroller to issue the payment warrant.

11  The warrant shall be issued within 7 days after the request.

12         Section 153.  Paragraph (b) of subsection (2) of

13  section 129.201, Florida Statutes, is amended to read:

14         129.201  Budget of supervisor of elections; manner and

15  time of preparation and presentation.--

16         (2)

17         (b)  To the extent appropriate, the budget shall be

18  further itemized in conformance with the Uniform Accounting

19  System for Local Units of Government in Florida adopted

20  promulgated by rule of the Chief Financial Officer Comptroller

21  of the state.

22         Section 154.  Section 131.05, Florida Statutes, is

23  amended to read:

24         131.05  Disposition of proceeds of sale.--In the event

25  refunding bonds are issued under the provisions of this

26  chapter prior to the date of maturity or option date of the

27  obligations proposed to be refunded, the proceeds of said

28  refunding bonds shall be deposited in a bank or trust company

29  within the state, which depository shall give a surety bond,

30  or other such bonds as are authorized by law to be accepted

31  for securing county and city funds, satisfactory to the

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 1  Department of Financial Services Banking and Finance for the

 2  full amount of money so deposited, and the funds so deposited

 3  shall only be withdrawn with the approval of the department,

 4  for the purpose of paying the obligations to refund which said

 5  bonds were issued.

 6         Section 155.  Section 137.09, Florida Statutes, is

 7  amended to read:

 8         137.09  Justification and approval of bonds.--Each

 9  surety upon every bond of any county officer shall make

10  affidavit that he or she is a resident of the county for which

11  the officer is to be commissioned, and that he or she has

12  sufficient visible property therein unencumbered and not

13  exempt from sale under legal process to make good his or her

14  bond.  Every such bond shall be approved by the board of

15  county commissioners and by the Department of Financial

16  Services Banking and Finance when they and it are satisfied in

17  their judgment that the same is legal, sufficient, and proper

18  to be approved.

19         Section 156.  Section 145.141, Florida Statutes, is

20  amended to read:

21         145.141  Deficiency to be paid by board of county

22  commissioners.--Should any county officer have insufficient

23  revenue from the income of his or her office, after paying

24  office personnel and expenses, to pay his or her total annual

25  salary, the board of county commissioners shall pay any

26  deficiency in salary from the general revenue fund and notify

27  the Department of Financial Services Banking and Finance.  The

28  deficiency shall be listed in the comptroller's annual report

29  of county finances and county fee officers.

30         Section 157.  Subsections (1) and (2) of section

31  154.02, Florida Statutes, are amended to read:

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 1         154.02  County Health Department Trust Fund.--

 2         (1)  To enable counties to provide public health

 3  services and maintain public health equipment and facilities,

 4  each county in the state with a population exceeding 100,000,

 5  according to the last state census, may levy an annual tax not

 6  exceeding 0.5 mill; each county in the state with a population

 7  exceeding 40,000 and not exceeding 100,000, according to the

 8  last state census, may levy an annual tax not exceeding 1

 9  mill; and each county in the state with a population not

10  exceeding 40,000, according to the last state census, may levy

11  an annual tax not exceeding 2 mills, on the dollar on all

12  taxable property in such county, the proceeds of which tax, if

13  so contracted with the state, shall be paid to the Chief

14  Financial Officer Treasurer. However, the board of county

15  commissioners may elect to pay in 12 equal monthly

16  installments. Such funds in the hands of the Chief Financial

17  Officer Treasurer shall be placed in the county health

18  department trust funds of the county by which such funds were

19  raised, and such funds shall be expended by the Department of

20  Health solely for the purpose of carrying out the intent and

21  object of the public health contract.

22         (2)  The Chief Financial Officer Treasurer shall

23  maintain a full-time County Health Department Trust Fund which

24  shall contain all state and local funds to be expended by

25  county health departments.  Such funds shall be expended by

26  the Department of Health solely for the purposes of carrying

27  out the intent and purpose of this part. Federal funds may be

28  deposited in the trust fund.

29         Section 158.  Subsection (1) of section 154.03, Florida

30  Statutes, is amended to read:

31  

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 1         154.03  Cooperation with Department of Health and

 2  United States Government.--

 3         (1)  The county commissioners of any county may agree

 4  with the Department of Health upon the expenditure by the

 5  department in such county of any funds allotted for that

 6  purpose by the department or received by it for such purposes

 7  from private contributions or other sources, and such funds

 8  shall be paid to the Chief Financial Officer Treasurer and

 9  shall form a part of the full-time county health department

10  trust fund of such county; and such funds shall be expended by

11  the department solely for the purposes of this chapter.  The

12  department is further authorized to arrange and agree with the

13  United States Government, through its duly authorized

14  officials, for the allocation and expenditure by the United

15  States of funds of the United States in the study of causes of

16  disease and prevention thereof in such full-time county health

17  departments when and where established by the department under

18  this part.

19         Section 159.  Section 154.05, Florida Statutes, is

20  amended to read:

21         154.05  Cooperation and agreements between

22  counties.--Two or more counties may combine in the

23  establishment and maintenance of a single full-time county

24  health department for the counties which combine for that

25  purpose; and, pursuant to such combination or agreement, such

26  counties may cooperate with one another and the Department of

27  Health and contribute to a joint fund in carrying out the

28  purpose and intent of this chapter.  The duration and nature

29  of such agreement shall be evidenced by resolutions of the

30  boards of county commissioners of such counties and shall be

31  submitted to and approved by the department.  In the event of

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 1  any such agreement, a full-time county health department shall

 2  be established and maintained by the department in and for the

 3  benefit of the counties which have entered into such an

 4  agreement; and, in such case, the funds raised by taxation

 5  pursuant to this chapter by each such county shall be paid to

 6  the Chief Financial Officer Treasurer for the account of the

 7  department and shall be known as the full-time county health

 8  department trust fund of the counties so cooperating. Such

 9  trust funds shall be used and expended by the department for

10  the purposes specified in this chapter in each county which

11  has entered into such agreement.  In case such an agreement is

12  entered into between two or more counties, the work

13  contemplated by this chapter shall be done by a single

14  full-time county health department in the counties so

15  cooperating; and the nature, extent, and location of such work

16  shall be under the control and direction of the department.

17         Section 160.  Subsection (2) of section 154.06, Florida

18  Statutes, is amended to read:

19         154.06  Fees and services rendered; authority.--

20         (2)  All funds collected under this section shall be

21  expended solely for the purpose of providing health services

22  and facilities within the county served by the county health

23  department. Fees collected by county health departments

24  pursuant to department rules shall be deposited with the Chief

25  Financial Officer Treasurer and credited to the County Health

26  Department Trust Fund. Fees collected by the county health

27  department for public health services or personal health

28  services shall be allocated to the state and the county based

29  upon the pro rata share of funding for each such service. The

30  board of county commissioners, if it has so contracted, shall

31  provide for the transmittal of funds collected for its pro

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 1  rata share of personal health services or primary care

 2  services rendered under the provisions of this section to the

 3  State Treasury for credit to the County Health Department

 4  Trust Fund, but in any event the proceeds from such fees may

 5  only be used to fund county health department services.

 6         Section 161.  Paragraphs (d) and (e) of subsection (17)

 7  of section 154.209, Florida Statutes, are amended to read:

 8         154.209  Powers of authority.--The purpose of the

 9  authority shall be to assist health facilities in the

10  acquisition, construction, financing, and refinancing of

11  projects in any corporated or unincorporated area within the

12  geographical limits of the local agency.  For this purpose,

13  the authority is authorized and empowered:

14         (17)  To issue special obligation revenue bonds for the

15  purpose of establishing and maintaining the self-insurance

16  pool and to provide reserve funds in connection therewith,

17  such bonds to be payable from funds available in the pool from

18  time to time or from assessments against participating health

19  facilities for the purpose of providing required contributions

20  to the fund. With respect to the issuance of such bonds or

21  notes the following provisions shall apply:

22         (d)  Any self-insurance pool funded pursuant to this

23  section shall maintain excess insurance which provides

24  specific and aggregate limits and a retention level determined

25  in accordance with sound actuarial principles. The Department

26  of Financial Services Insurance may waive this requirement if

27  the fund demonstrates that its operation is and will be

28  actuarially sound without obtaining excess insurance.

29         (e)  Prior to the issuance of any bonds pursuant to

30  this section for the purpose of acquiring liability coverage

31  contracts from the self-insurance pool, the Department of

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 1  Financial Services Insurance shall certify that excess

 2  liability coverage for the health facility is reasonably

 3  unobtainable in the amounts provided by such pool or that the

 4  liability coverage obtained through acquiring contracts from

 5  the self-insurance pool, after taking into account costs of

 6  issuance of bonds and any other administrative fees, is less

 7  expensive to the health facility than similar commercial

 8  coverage then reasonably available.

 9         Section 162.  Section 154.314, Florida Statutes, is

10  amended to read:

11         154.314  Certification of the State of Florida.--

12         (1)  In the event payment for the costs of services

13  rendered by a participating hospital or a regional referral

14  hospital is not received from the responsible county within 90

15  days of receipt of a statement for services rendered to a

16  qualified indigent who is a certified resident of the county,

17  or if the payment is disputed and said payment is not received

18  from the county determined to be responsible within 60 days of

19  the date of exhaustion of all administrative and legal

20  remedies, the hospital shall certify to the Chief Financial

21  Officer Comptroller the amount owed by the county.

22         (2)  The Chief Financial Officer Comptroller shall have

23  no longer than 45 days from the date of receiving the

24  hospital's certified notice to forward the amount delinquent

25  to the appropriate hospital from any funds due to the county

26  under any revenue-sharing or tax-sharing fund established by

27  the state, except as otherwise provided by the State

28  Constitution.  The Chief Financial Officer Comptroller shall

29  provide the Governor and the fiscal committees in the House of

30  Representatives and the Senate with a quarterly accounting of

31  the amounts certified by hospitals as owed by counties and the

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 1  amount paid to hospitals out of any revenue or tax sharing

 2  funds due to the county.

 3         Section 163.  Paragraph (e) of subsection (7) of

 4  section 163.01, Florida Statutes, is amended to read:

 5         163.01  Florida Interlocal Cooperation Act of 1969.--

 6         (7)

 7         (e)1.  Notwithstanding the provisions of paragraph (c),

 8  any separate legal entity, created pursuant to the provisions

 9  of this section and controlled by counties or municipalities

10  of this state, the membership of which consists or is to

11  consist only of public agencies of this state, may, for the

12  purpose of financing acquisition of liability coverage

13  contracts from one or more local government liability pools to

14  provide liability coverage for counties, municipalities, or

15  other public agencies of this state, exercise all powers in

16  connection with the authorization, issuance, and sale of

17  bonds. All of the privileges, benefits, powers, and terms of

18  s. 125.01 relating to counties and s. 166.021 relating to

19  municipalities shall be fully applicable to such entity and

20  such entity shall be considered a unit of local government for

21  all of the privileges, benefits, powers, and terms of part I

22  of chapter 159.  Bonds issued by such entity shall be deemed

23  issued on behalf of counties, municipalities, or public

24  agencies which enter into loan agreements with such entity as

25  provided in this paragraph. Proceeds of bonds issued by such

26  entity may be loaned to counties, municipalities, or other

27  public agencies of this state, whether or not such counties,

28  municipalities, or other public agencies are also members of

29  the entity issuing the bonds, and such counties,

30  municipalities, or other public agencies may in turn deposit

31  

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 1  such loan proceeds with a separate local government liability

 2  pool for purposes of acquiring liability coverage contracts.

 3         2.  Counties or municipalities of this state are

 4  authorized pursuant to this section, in addition to the

 5  authority provided by s. 125.01, part II of chapter 166, and

 6  other applicable law, to issue bonds for the purpose of

 7  acquiring liability coverage contracts from a local government

 8  liability pool. Any individual county or municipality may, by

 9  entering into interlocal agreements with other counties,

10  municipalities, or public agencies of this state, issue bonds

11  on behalf of itself and other counties, municipalities, or

12  other public agencies, for purposes of acquiring a liability

13  coverage contract or contracts from a local government

14  liability pool.  Counties, municipalities, or other public

15  agencies are also authorized to enter into loan agreements

16  with any entity created pursuant to subparagraph 1., or with

17  any county or municipality issuing bonds pursuant to this

18  subparagraph, for the purpose of obtaining bond proceeds with

19  which to acquire liability coverage contracts from a local

20  government liability pool.  No county, municipality, or other

21  public agency shall at any time have more than one loan

22  agreement outstanding for the purpose of obtaining bond

23  proceeds with which to acquire liability coverage contracts

24  from a local government liability pool. Obligations of any

25  county, municipality, or other public agency of this state

26  pursuant to a loan agreement as described above may be

27  validated as provided in chapter 75.  Prior to the issuance of

28  any bonds pursuant to subparagraph 1. or this subparagraph for

29  the purpose of acquiring liability coverage contracts from a

30  local government liability pool, the reciprocal insurer or the

31  manager of any self-insurance program shall demonstrate to the

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 1  satisfaction of the Department of Financial Services Insurance

 2  that excess liability coverage for counties, municipalities,

 3  or other public agencies is reasonably unobtainable in the

 4  amounts provided by such pool or that the liability coverage

 5  obtained through acquiring contracts from a local government

 6  liability pool, after taking into account costs of issuance of

 7  bonds and any other administrative fees, is less expensive to

 8  counties, municipalities, or special districts than similar

 9  commercial coverage then reasonably available.

10         3.  Any entity created pursuant to this section or any

11  county or municipality may also issue bond anticipation notes,

12  as provided by s. 215.431, in connection with the

13  authorization, issuance, and sale of such bonds.  In addition,

14  the governing body of such legal entity or the governing body

15  of such county or municipality may also authorize bonds to be

16  issued and sold from time to time and may delegate, to such

17  officer, official, or agent of such legal entity as the

18  governing body of such legal entity may select, the power to

19  determine the time; manner of sale, public or private;

20  maturities; rate or rates of interest, which may be fixed or

21  may vary at such time or times and in accordance with a

22  specified formula or method of determination; and other terms

23  and conditions as may be deemed appropriate by the officer,

24  official, or agent so designated by the governing body of such

25  legal entity. However, the amounts and maturities of such

26  bonds and the interest rate or rates of such bonds shall be

27  within the limits prescribed by the governing body of such

28  legal entity and its resolution delegating to such officer,

29  official, or agent the power to authorize the issuance and

30  sale of such bonds.  Any series of bonds issued pursuant to

31  

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 1  this paragraph shall mature no later than 7 years following

 2  the date of issuance thereof.

 3         4.  Bonds issued pursuant to subparagraph 1. may be

 4  validated as provided in chapter 75.  The complaint in any

 5  action to validate such bonds shall be filed only in the

 6  Circuit Court for Leon County.  The notice required to be

 7  published by s. 75.06 shall be published in Leon County and in

 8  each county which is an owner of the entity issuing the bonds,

 9  or in which a member of the entity is located, and the

10  complaint and order of the circuit court shall be served only

11  on the State Attorney of the Second Judicial Circuit and on

12  the state attorney of each circuit in each county or

13  municipality which is an owner of the entity issuing the bonds

14  or in which a member of the entity is located.

15         5.  Bonds issued pursuant to subparagraph 2. may be

16  validated as provided in chapter 75. The complaint in any

17  action to validate such bonds shall be filed in the circuit

18  court of the county or municipality which will issue the

19  bonds.  The notice required to be published by s. 75.06 shall

20  be published only in the county where the complaint is filed,

21  and the complaint and order of the circuit court shall be

22  served only on the state attorney of the circuit in the county

23  or municipality which will issue the bonds.

24         6.  The participation by any county, municipality, or

25  other public agency of this state in a local government

26  liability pool shall not be deemed a waiver of immunity to the

27  extent of liability coverage, nor shall any contract entered

28  regarding such a local government liability pool be required

29  to contain any provision for waiver.

30         Section 164.  Subsections (4), (5), (6), (7), (8), and

31  (9) of section 163.055, Florida Statutes, are amended to read:

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 1         163.055  Local Government Financial Technical

 2  Assistance Program.--

 3         (4)  The Chief Financial Officer Comptroller shall

 4  enter into contracts with program providers who shall:

 5         (a)  Be a public agency or private, nonprofit

 6  corporation, association, or entity.

 7         (b)  Use existing resources, services, and information

 8  that are available from state or local agencies, universities,

 9  or the private sector.

10         (c)  Seek and accept funding from any public or private

11  source.

12         (d)  Annually submit information to assist the

13  Legislative Committee on Intergovernmental Relations in

14  preparing a performance review that will include an analysis

15  of the effectiveness of the program.

16         (e)  Assist municipalities and independent special

17  districts in developing alternative revenue sources.

18         (f)  Provide for an annual independent financial audit

19  of the program, if the program receives funding.

20         (g)  Provide assistance to municipalities and special

21  districts in the areas of financial management, accounting,

22  investing, budgeting, and debt issuance.

23         (h)  Develop a needs assessment to determine where

24  assistance should be targeted, and to establish a priority

25  system to deliver assistance to those jurisdictions most in

26  need through the most economical means available.

27         (i)  Provide financial emergency assistance upon

28  direction from the Executive Office of the Governor pursuant

29  to s. 218.503.

30         (5)(a)  The Chief Financial Officer Comptroller shall

31  issue a request for proposals to provide assistance to

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 1  municipalities and special districts.  At the request of the

 2  Chief Financial Officer Comptroller, the Legislative Committee

 3  on Intergovernmental Relations shall assist in the preparation

 4  of the request for proposals.

 5         (b)  The Chief Financial Officer Comptroller shall

 6  review each contract proposal submitted.

 7         (c)  The Legislative Committee on Intergovernmental

 8  Relations shall review each contract proposal and submit to

 9  the Chief Financial Officer Comptroller, in writing, advisory

10  comments and recommendations, citing with specificity the

11  reasons for its recommendations.

12         (d)  The Chief Financial Officer Comptroller and the

13  Legislative Committee on Intergovernmental Relations shall

14  consider the following factors in reviewing contract

15  proposals:

16         1.  The demonstrated capacity of the provider to

17  conduct needs assessments and implement the program as

18  proposed.

19         2.  The number of municipalities and special districts

20  to be served under the proposal.

21         3.  The cost of the program as specified in a proposed

22  budget.

23         4.  The short-term and long-term benefits of the

24  assistance to municipalities and special districts.

25         5.  The form and extent to which existing resources,

26  services, and information that are available from state and

27  local agencies, universities, and the private sector will be

28  used by the provider under the contract.

29         (6)  A decision of the Chief Financial Officer

30  Comptroller to award a contract under this section is final

31  

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 1  and shall be in writing with a copy provided to the

 2  Legislative Committee on Intergovernmental Relations.

 3         (7)  The Chief Financial Officer Comptroller may enter

 4  into contracts and agreements with other state and local

 5  agencies and with any person, association, corporation, or

 6  entity other than the program providers, for the purpose of

 7  administering this section.

 8         (8)  The Chief Financial Officer Comptroller shall

 9  provide fiscal oversight to ensure that funds expended for the

10  program are used in accordance with the contracts entered into

11  pursuant to subsection (4).

12         (9)  The Legislative Committee on Intergovernmental

13  Relations shall annually conduct a performance review of the

14  program.  The findings of the review shall be presented in a

15  report submitted to the Governor, the President of the Senate,

16  the Speaker of the House of Representatives, and the Chief

17  Financial Officer Comptroller by January 15 of each year.

18         Section 165.  Subsection (6) of section 163.3167,

19  Florida Statutes, is amended to read:

20         163.3167  Scope of act.--

21         (6)  When a regional planning agency is required to

22  prepare or amend a comprehensive plan, or element or portion

23  thereof, pursuant to subsections (3) and (4), the regional

24  planning agency and the local government may agree to a method

25  of compensating the regional planning agency for any

26  verifiable, direct costs incurred.  If an agreement is not

27  reached within 6 months after the date the regional planning

28  agency assumes planning responsibilities for the local

29  government pursuant to subsections (3) and (4) or by the time

30  the plan or element, or portion thereof, is completed,

31  whichever is earlier, the regional planning agency shall file

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 1  invoices for verifiable, direct costs involved with the

 2  governing body.  Upon the failure of the local government to

 3  pay such invoices within 90 days, the regional planning agency

 4  may, upon filing proper vouchers with the Chief Financial

 5  Officer State Comptroller, request payment by the Chief

 6  Financial Officer State Comptroller from unencumbered revenue

 7  or other tax sharing funds due such local government from the

 8  state for work actually performed, and the Chief Financial

 9  Officer State Comptroller shall pay such vouchers; however,

10  the amount of such payment shall not exceed 50 percent of such

11  funds due such local government in any one year.

12         Section 166.  Subsection (1) of section 175.101,

13  Florida Statutes, is amended to read:

14         175.101  State excise tax on property insurance

15  premiums authorized; procedure.--For any municipality, special

16  fire control district, chapter plan, local law municipality,

17  local law special fire control district, or local law plan

18  under this chapter:

19         (1)  Each municipality or special fire control district

20  in this state described and classified in s. 175.041, having a

21  lawfully established firefighters' pension trust fund or

22  municipal fund or special fire control district fund, by

23  whatever name known, providing pension benefits to

24  firefighters as provided under this chapter, may assess and

25  impose on every insurance company, corporation, or other

26  insurer now engaged in or carrying on, or who shall

27  hereinafter engage in or carry on, the business of property

28  insurance as shown by the records of the Department of

29  Financial Services Insurance an excise tax in addition to any

30  lawful license or excise tax now levied by each of the

31  municipalities or special fire control districts,

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 1  respectively, amounting to 1.85 percent of the gross amount of

 2  receipts of premiums from policyholders on all premiums

 3  collected on property insurance policies covering property

 4  within the corporate limits of such municipalities or within

 5  the legally defined boundaries of special fire control

 6  districts, respectively.  Whenever the boundaries of a special

 7  fire control district that has lawfully established a

 8  firefighters' pension trust fund encompass a portion of the

 9  corporate territory of a municipality that has also lawfully

10  established a firefighters' pension trust fund, that portion

11  of the tax receipts attributable to insurance policies

12  covering property situated both within the municipality and

13  the special fire control district shall be given to the fire

14  service provider. The agent shall identify the fire service

15  provider on the property owner's application for insurance.

16  Remaining revenues collected pursuant to this chapter shall be

17  distributed to the municipality or special fire control

18  district according to the location of the insured property.

19         Section 167.  Subsection (2) of section 175.121,

20  Florida Statutes, is amended to read:

21         175.121  Department of Revenue and Division of

22  Retirement to keep accounts of deposits; disbursements.--For

23  any municipality or special fire control district having a

24  chapter or local law plan established pursuant to this

25  chapter:

26         (2)  The Chief Financial Officer Comptroller shall, on

27  or before July 1 of each year, and at such other times as

28  authorized by the division, draw his or her warrants on the

29  full net amount of money then on deposit in the Police and

30  Firefighters' Premium Tax Trust Fund pursuant to this chapter,

31  specifying the municipalities and special fire control

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 1  districts to which the moneys must be paid and the net amount

 2  collected for and to be paid to each municipality or special

 3  fire control district, respectively, subject to the limitation

 4  on disbursement under s. 175.122. The sum payable to each

 5  municipality or special fire control district is appropriated

 6  annually out of the Police and Firefighters' Premium Tax Trust

 7  Fund. The warrants of the Chief Financial Officer Comptroller

 8  shall be payable to the respective municipalities and special

 9  fire control districts entitled to receive them and shall be

10  remitted annually by the division to the respective

11  municipalities and special fire control districts.  In lieu

12  thereof, the municipality or special fire control district may

13  provide authorization to the division for the direct payment

14  of the premium tax to the board of trustees. In order for a

15  municipality or special fire control district and its pension

16  fund to participate in the distribution of premium tax moneys

17  under this chapter, all the provisions shall be complied with

18  annually, including state acceptance pursuant to part VII of

19  chapter 112.

20         Section 168.  Section 175.151, Florida Statutes, is

21  amended to read:

22         175.151  Penalty for failure of insurers to comply with

23  this act.--If Should any insurance company, corporation or

24  other insurer fails fail to comply with the provisions of this

25  act, on or before March 1 of each year as herein provided, the

26  certificate of authority issued to said insurance company,

27  corporation or other insurer to transact business in this

28  state may be canceled and revoked by the Department of

29  Financial Services Insurance, and it is unlawful for any such

30  insurance company, corporation, or other insurer to transact

31  business thereafter in this state unless such insurance

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 1  company, corporation, or other insurer shall be granted a new

 2  certificate of authority to transact any business in this

 3  state, in compliance with provisions of law authorizing such

 4  certificate of authority to be issued. The division is

 5  responsible for notifying the Department of Financial Services

 6  Insurance regarding any such failure to comply.

 7         Section 169.  Subsection (1) of section 185.08, Florida

 8  Statutes, is amended to read:

 9         185.08  State excise tax on casualty insurance premiums

10  authorized; procedure.--For any municipality, chapter plan,

11  local law municipality, or local law plan under this chapter:

12         (1)  Each incorporated municipality in this state

13  described and classified in s. 185.03, as well as each other

14  city or town of this state which on July 31, 1953, had a

15  lawfully established municipal police officers' retirement

16  trust fund or city fund, by whatever name known, providing

17  pension or relief benefits to police officers as provided

18  under this chapter, may assess and impose on every insurance

19  company, corporation, or other insurer now engaged in or

20  carrying on, or who shall hereafter engage in or carry on, the

21  business of casualty insurance as shown by records of the

22  Department of Financial Services Insurance, an excise tax in

23  addition to any lawful license or excise tax now levied by

24  each of the said municipalities, respectively, amounting to

25  .85 percent of the gross amount of receipts of premiums from

26  policyholders on all premiums collected on casualty insurance

27  policies covering property within the corporate limits of such

28  municipalities, respectively.

29         Section 170.  Subsection (2) of section 185.10, Florida

30  Statutes, is amended to read:

31  

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 1         185.10  Department of Revenue and Division of

 2  Retirement to keep accounts of deposits; disbursements.--For

 3  any municipality having a chapter plan or local law plan under

 4  this chapter:

 5         (2)  The Chief Financial Officer Comptroller shall, on

 6  or before July 1 of each year, and at such other times as

 7  authorized by the division, draw his or her warrants on the

 8  full net amount of money then on deposit pursuant to this

 9  chapter in the Police and Firefighters' Premium Tax Trust

10  Fund, specifying the municipalities to which the moneys must

11  be paid and the net amount collected for and to be paid to

12  each municipality, respectively. The sum payable to each

13  municipality is appropriated annually out of the Police and

14  Firefighters' Premium Tax Trust Fund.  The warrants of the

15  Chief Financial Officer Comptroller shall be payable to the

16  respective municipalities entitled to receive them and shall

17  be remitted annually by the division to the respective

18  municipalities. In lieu thereof, the municipality may provide

19  authorization to the division for the direct payment of the

20  premium tax to the board of trustees.  In order for a

21  municipality and its retirement fund to participate in the

22  distribution of premium tax moneys under this chapter, all the

23  provisions shall be complied with annually, including state

24  acceptance pursuant to part VII of chapter 112.

25         Section 171.  Section 185.13, Florida Statutes, is

26  amended to read:

27         185.13  Failure of insurer to comply with chapter;

28  penalty.--If Should any insurance company, corporation or

29  other insurer fails fail to comply with the provisions of this

30  chapter, on or before March 1 in each year as herein provided,

31  the certificate of authority issued to said insurance company,

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 1  corporation or other insurer to transact business in this

 2  state may be canceled and revoked by the Department of

 3  Financial Services Insurance, and it is unlawful for any such

 4  insurance company, corporation or other insurer to transact

 5  any business thereafter in this state unless such insurance

 6  company, corporation or other insurer shall be granted a new

 7  certificate of authority to transact business in this state,

 8  in compliance with provisions of law authorizing such

 9  certificate of authority to be issued. The division shall be

10  responsible for notifying the Department of Financial Services

11  Insurance regarding any such failure to comply.

12         Section 172.  Subsections (2), (3), and (5) of section

13  189.4035, Florida Statutes, are amended to read:

14         189.4035  Preparation of official list of special

15  districts.--

16         (2)  The official list shall be produced by the

17  department after the department has notified each special

18  district that is currently reporting to the department, the

19  Department of Financial Services Banking and Finance pursuant

20  to s. 218.32, or the Auditor General pursuant to s. 218.39.

21  Upon notification, each special district shall submit, within

22  60 days, its determination of its status.  The determination

23  submitted by a special district shall be consistent with the

24  status reported in the most recent local government audit of

25  district activities submitted to the Auditor General pursuant

26  to s. 218.39.

27         (3)  The Department of Financial Services Banking and

28  Finance shall provide the department with a list of dependent

29  special districts reporting pursuant to s. 218.32 for

30  inclusion on the official list of special districts.

31  

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 1         (5)  The official list of special districts shall be

 2  distributed by the department on October 1 of each year to the

 3  President of the Senate, the Speaker of the House of

 4  Representatives, the Auditor General, the Department of

 5  Revenue, the Department of Financial Services Banking and

 6  Finance, the Department of Management Services, the State

 7  Board of Administration, counties, municipalities, county

 8  property appraisers, tax collectors, and supervisors of

 9  elections and to all interested parties who request the list.

10         Section 173.  Subsection (1) of section 189.412,

11  Florida Statutes, is amended to read:

12         189.412  Special District Information Program; duties

13  and responsibilities.--The Special District Information

14  Program of the Department of Community Affairs is created and

15  has the following special duties:

16         (1)  The collection and maintenance of special district

17  compliance status reports from the Auditor General, the

18  Department of Financial Services Banking and Finance, the

19  Division of Bond Finance of the State Board of Administration,

20  the Department of Management Services, the Department of

21  Revenue, and the Commission on Ethics for the reporting

22  required in ss. 112.3144, 112.3145, 112.3148, 112.3149,

23  112.63, 200.068, 218.32, 218.34, 218.38, 218.39, and 280.17

24  and chapter 121 and from state agencies administering programs

25  that distribute money to special districts. The special

26  district compliance status reports must consist of a list of

27  special districts used in that state agency and a list of

28  which special districts did not comply with the reporting

29  statutorily required by that agency.

30         Section 174.  Section 189.427, Florida Statutes, is

31  amended to read:

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 1         189.427  Fee schedule; Operating Trust Fund.--The

 2  Department of Community Affairs, by rule, shall establish a

 3  schedule of fees to pay one-half of the costs incurred by the

 4  department in administering this act, except that the fee may

 5  not exceed $175 per district per year. The fees collected

 6  under this section shall be deposited in the Operating Trust

 7  Fund, which shall be administered by the Department of

 8  Community Affairs. Any fee rule must consider factors such as

 9  the dependent and independent status of the district and

10  district revenues for the most recent fiscal year as reported

11  to the Department of Financial Services Banking and Finance.

12  The department may assess fines of not more than $25, with an

13  aggregate total not to exceed $50, as penalties against

14  special districts that fail to remit required fees to the

15  department. It is the intent of the Legislature that general

16  revenue funds will be made available to the department to pay

17  one-half of the cost of administering this act.

18         Section 175.  Subsection (3) of section 190.007,

19  Florida Statutes, is amended to read:

20         190.007  Board of supervisors; general duties.--

21         (3)  The board is authorized to select as a depository

22  for its funds any qualified public depository as defined in s.

23  280.02 which meets all the requirements of chapter 280 and has

24  been designated by the Chief Financial Officer Treasurer as a

25  qualified public depository, upon such terms and conditions as

26  to the payment of interest by such depository upon the funds

27  so deposited as the board may deem just and reasonable.

28         Section 176.  Subsection (16) of section 191.006,

29  Florida Statutes, is amended to read:

30         191.006  General powers.--The district shall have, and

31  the board may exercise by majority vote, the following powers:

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 1         (16)  To select as a depository for its funds any

 2  qualified public depository as defined in s. 280.02 which

 3  meets all the requirements of chapter 280 and has been

 4  designated by the Chief Financial Officer State Treasurer as a

 5  qualified public depository, upon such terms and conditions as

 6  to the payment of interest upon the funds deposited as the

 7  board deems just and reasonable.

 8         Section 177.  Subsection (4) of section 192.091,

 9  Florida Statutes, is amended to read:

10         192.091  Commissions of property appraisers and tax

11  collectors.--

12         (4)  The commissions for collecting taxes assessed for

13  or levied by the state shall be audited, and allowed, by the

14  Comptroller and shall be paid by the Chief Financial Officer

15  Treasurer as other Comptroller's warrants are paid; and

16  commissions for collecting the county taxes shall be audited

17  and paid by the boards of county commissioners of the several

18  counties of this state.  The commissions for collecting all

19  special school district taxes shall be audited by the school

20  board of each respective district and taken out of the funds

21  of the respective special school district under its control

22  and allowed and paid to the tax collectors for collecting such

23  taxes; and the commissions for collecting all other district

24  taxes, whether special or not, shall be audited and paid by

25  the governing board or commission having charge of the

26  financial obligations of such district.  All commissions for

27  collecting special tax district taxes shall be paid at the

28  time and in the manner now, or as may hereafter be, provided

29  for the payment of the commissions for the collection of

30  county taxes.  All amounts paid as compensation to any tax

31  collector under the provisions of this or any other law shall

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 1  be a part of the general income or compensation of such

 2  officer for the year in which received, and nothing contained

 3  in this section shall be held or construed to affect or

 4  increase the maximum salary as now provided by law for any

 5  such officer.

 6         Section 178.  Subsection (3) of section 192.102,

 7  Florida Statutes, is amended to read:

 8         192.102  Payment of property appraisers' and

 9  collectors' commissions.--

10         (3)  The Chief Financial Officer Comptroller of the

11  state shall issue to each of the county property appraisers

12  and collectors of taxes, on the first Monday of January,

13  April, July, and October, on demand of such county property

14  appraisers and collectors of taxes after approval by the

15  Department of Revenue, and shall pay, his or her warrant,

16  which shall be paid by the Treasurer of the state, for an

17  amount equal to one-fourth of four-fifths of the total amount

18  of commissions received by such county property appraisers and

19  collectors of taxes or their predecessors in office from the

20  state during and for the preceding year, and the balance of

21  the commissions earned by such county property appraiser and

22  collector of taxes, respectively, during each year, over and

23  above the amount of such installment payments herein provided

24  for, shall be payable when a report of errors and double

25  assessments is approved by the county commissioners and a copy

26  thereof filed with the Department of Revenue.

27         Section 179.  Subsection (1) of section 193.092,

28  Florida Statutes, is amended to read:

29         193.092  Assessment of property for back taxes.--

30         (1)  When it shall appear that any ad valorem tax might

31  have been lawfully assessed or collected upon any property in

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 1  the state, but that such tax was not lawfully assessed or

 2  levied, and has not been collected for any year within a

 3  period of 3 years next preceding the year in which it is

 4  ascertained that such tax has not been assessed, or levied, or

 5  collected, then the officers authorized shall make the

 6  assessment of taxes upon such property in addition to the

 7  assessment of such property for the current year, and shall

 8  assess the same separately for such property as may have

 9  escaped taxation at and upon the basis of valuation applied to

10  such property for the year or years in which it escaped

11  taxation, noting distinctly the year when such property

12  escaped taxation and such assessment shall have the same force

13  and effect as it would have had if it had been made in the

14  year in which the property shall have escaped taxation, and

15  taxes shall be levied and collected thereon in like manner and

16  together with taxes for the current year in which the

17  assessment is made.  But no property shall be assessed for

18  more than 3 years' arrears of taxation, and all property so

19  escaping taxation shall be subject to such taxation to be

20  assessed in whomsoever's hands or possession the same may be

21  found; provided, that the county property appraiser shall not

22  assess any lot or parcel of land certified or sold to the

23  state for any previous years unless such lot or parcel of

24  lands so certified or sold shall be included in the list

25  furnished by the Chief Financial Officer Comptroller to the

26  county property appraiser as provided by law; provided, if

27  real or personal property be assessed for taxes, and because

28  of litigation delay ensues and the assessment be held invalid

29  the taxing authorities, may reassess such property within the

30  time herein provided after the termination of such litigation;

31  provided further, that personal property acquired in good

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 1  faith by purchase shall not be subject to assessment for taxes

 2  for any time prior to the time of such purchase, but the

 3  individual or corporation liable for any such assessment shall

 4  continue personally liable for same.

 5         Section 180.  Section 195.101, Florida Statutes, is

 6  amended to read:

 7         195.101  Withholding of state funds.--

 8         (1)  The Department of Revenue is hereby directed to

 9  determine each year whether the several counties of this state

10  are assessing the real and tangible personal property within

11  their jurisdiction in accordance with law.  If the Department

12  of Revenue determines that any county is assessing property at

13  less than that prescribed by law, the Chief Financial Officer

14  Comptroller shall withhold from such county a portion of any

15  state funds to which the county may be entitled equal to the

16  difference of the amount assessed and the amount required to

17  be assessed by law.

18         (2)  The Department of Revenue is hereby directed to

19  determine each year whether the several municipalities of this

20  state are assessing the real and tangible personal property

21  within their jurisdiction in accordance with law.  If the

22  Department of Revenue determines that any municipality is

23  assessing property at less than that prescribed by law, the

24  Chief Financial Officer Comptroller shall withhold from such

25  municipality a portion of any state funds to which that

26  municipality may be entitled equal to the difference of the

27  amount assessed and the amount required to be assessed by law.

28         Section 181.  Subsection (1) of section 198.29, Florida

29  Statutes, is amended to read:

30         198.29  Refunds of excess tax paid.--

31  

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 1         (1)  Whenever it appears, upon the examination of any

 2  return made under this chapter or upon proof submitted to the

 3  department by the personal representative, that an amount of

 4  estate tax has been paid in excess of the tax legally due

 5  under this chapter, the amount of such overpayment, together

 6  with any overpayment of interest thereon shall be refunded to

 7  the personal representative and paid by upon the warrant of

 8  the Chief Financial Officer Comptroller, drawn upon the

 9  Treasurer who shall honor and pay the same; such refund shall

10  be made by the department as a matter of course regardless of

11  whether or not the personal representative has filed a written

12  claim therefor, except that upon request of the department,

13  the personal representative shall file with the department a

14  conformed copy of any written claim for refund of federal

15  estate tax which has theretofore been filed with the United

16  States.

17         Section 182.  Paragraph (a) of subsection (7) of

18  section 199.232, Florida Statutes, is amended to read:

19         199.232  Powers of department.--

20         (7)(a)  If it appears, upon examination of an

21  intangible tax return made under this chapter or upon proof

22  submitted to the department by the taxpayer, that an amount of

23  intangible personal property tax has been paid in excess of

24  the amount due, the department shall refund the amount of the

25  overpayment to the taxpayer by a warrant of the Chief

26  Financial Officer Comptroller, drawn upon the Treasurer. The

27  department shall refund the overpayment without regard to

28  whether the taxpayer has filed a written claim for a refund;

29  however, the department may request that the taxpayer file a

30  statement affirming that the taxpayer made the overpayment.

31  

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 1         Section 183.  Paragraph (a) of subsection (1) of

 2  section 203.01, Florida Statutes, is amended to read:

 3         203.01  Tax on gross receipts for utility and

 4  communications services.--

 5         (1)(a)1.  Every person that receives payment for any

 6  utility service shall report by the last day of each month to

 7  the Department of Revenue, under oath of the secretary or some

 8  other officer of such person, the total amount of gross

 9  receipts derived from business done within this state, or

10  between points within this state, for the preceding month and,

11  at the same time, shall pay into the State Treasury an amount

12  equal to a percentage of such gross receipts at the rate set

13  forth in paragraph (b).  Such collections shall be certified

14  by the Chief Financial Officer Comptroller upon the request of

15  the State Board of Education.

16         2.  A tax is levied on communications services as

17  defined in s. 202.11(3). Such tax shall be applied to the same

18  services and transactions as are subject to taxation under

19  chapter 202, and to communications services that are subject

20  to the exemption provided in s. 202.125(1). Such tax shall be

21  applied to the sales price of communications services when

22  sold at retail and to the actual cost of operating substitute

23  communications systems, as such terms are defined in s.

24  202.11, shall be due and payable at the same time as the taxes

25  imposed pursuant to chapter 202, and shall be administered and

26  collected pursuant to the provisions of chapter 202.

27         Section 184.  Subsection (1) of section 206.46, Florida

28  Statutes, is amended to read:

29         206.46  State Transportation Trust Fund.--

30         (1)  All moneys in the State Transportation Trust Fund,

31  which is hereby created, shall be used for transportation

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 1  purposes, as provided by law, under the direction of the

 2  Department of Transportation, which department may from time

 3  to time make requisition on the Chief Financial Officer

 4  Comptroller for such funds.  Moneys from such fund shall be

 5  drawn by the Chief Financial Officer Comptroller by warrant

 6  upon the State Treasury pursuant to vouchers and shall be paid

 7  in like manner as other state warrants are paid out of the

 8  appropriated fund against which the warrants are drawn.  All

 9  sums of money necessary to provide for the payment of the

10  warrants by the Chief Financial Officer Comptroller drawn upon

11  such fund are appropriated annually out of the fund for the

12  purpose of making such payments from time to time.

13         Section 185.  Subsection (4) of section 210.16, Florida

14  Statutes, is amended to read:

15         210.16  Revocation or suspension of permit.--

16         (4)  In lieu of the suspension or revocation of

17  permits, the division may impose civil penalties against

18  holders of permits for violations of this part or rules and

19  regulations relating thereto.  No civil penalty so imposed

20  shall exceed $1,000 for each offense, and all amounts

21  collected shall be deposited with the Chief Financial Officer

22  State Treasurer to the credit of the General Revenue Fund.  If

23  the holder of the permit fails to pay the civil penalty, his

24  or her permit shall be suspended for such period of time as

25  the division may specify.

26         Section 186.  Subsection (2) of section 210.20, Florida

27  Statutes, is amended to read:

28         210.20  Employees and assistants; distribution of

29  funds.--

30         (2)  As collections are received by the division from

31  such cigarette taxes, it shall pay the same into a trust fund

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 1  in the State Treasury designated "Cigarette Tax Collection

 2  Trust Fund" which shall be paid and distributed as follows:

 3         (a)  The division shall from month to month certify to

 4  the Chief Financial Officer Comptroller the amount derived

 5  from the cigarette tax imposed by s. 210.02, less the service

 6  charges provided for in s. 215.20 and less 0.9 percent of the

 7  amount derived from the cigarette tax imposed by s. 210.02,

 8  which shall be deposited into the Alcoholic Beverage and

 9  Tobacco Trust Fund, specifying the amounts to be transferred

10  from the Cigarette Tax Collection Trust Fund and credited on

11  the basis of 2.9 percent of the net collections to the Revenue

12  Sharing Trust Fund for Counties and 29.3 percent of the net

13  collections for the funding of indigent health care to the

14  Public Medical Assistance Trust Fund.

15         (b)  Beginning January 1, 1999, and continuing for 10

16  years thereafter, the division shall from month to month

17  certify to the Chief Financial Officer Comptroller the amount

18  derived from the cigarette tax imposed by s. 210.02, less the

19  service charges provided for in s. 215.20 and less 0.9 percent

20  of the amount derived from the cigarette tax imposed by s.

21  210.02 which shall be deposited into the Alcoholic Beverage

22  and Tobacco Trust Fund, specifying an amount equal to 2.59

23  percent of the net collections, and that amount shall be paid

24  to the Board of Directors of the H. Lee Moffitt Cancer Center

25  and Research Institute, established under s. 240.512, by

26  warrant drawn by the Chief Financial Officer Comptroller upon

27  the State Treasury. These funds are hereby appropriated

28  monthly out of the Cigarette Tax Collection Trust Fund, to be

29  used for the purpose of constructing, furnishing, and

30  equipping a cancer research facility at the University of

31  South Florida adjacent to the H. Lee Moffitt Cancer Center and

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 1  Research Institute.  In fiscal years 1999-2000 and thereafter

 2  with the exception of fiscal year 2008-2009, the appropriation

 3  to the H. Lee Moffitt Cancer Center and Research Institute

 4  authorized by this paragraph shall not be less than the amount

 5  which would have been paid to the H. Lee Moffitt Cancer Center

 6  and Research Institute for fiscal year 1998-1999 had payments

 7  been made for the entire fiscal year rather than for a 6-month

 8  period thereof.

 9         Section 187.  Subsection (4) of section 210.50, Florida

10  Statutes, is amended to read:

11         210.50  Revocation or suspension of license.--

12         (4)  In lieu of the suspension or revocation of

13  licenses, the division may impose civil penalties against

14  holders of licenses for violations of this part or rules

15  relating thereto. No civil penalty so imposed shall exceed

16  $1,000 for each offense, and all amounts collected shall be

17  deposited with the Chief Financial Officer State Treasurer to

18  the credit of the General Revenue Fund.  If the holder of the

19  license fails to pay the civil penalty, his or her license

20  shall be suspended for such period of time as the division may

21  specify.

22         Section 188.  Subsection (1) of section 211.06, Florida

23  Statutes, is amended to read:

24         211.06  Oil and Gas Tax Trust Fund; distribution of tax

25  proceeds.--All taxes, interest, and penalties imposed under

26  this part shall be collected by the department and placed in a

27  special fund designated the "Oil and Gas Tax Trust Fund."

28         (1)  There is hereby annually appropriated a sufficient

29  amount from the Oil and Gas Tax Trust Fund for the Chief

30  Financial Officer Comptroller to refund any overpayments that

31  which have been properly approved.

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 1         Section 189.  Paragraph (d) of subsection (1) of

 2  section 211.32, Florida Statutes, is amended to read:

 3         211.32  Tax on solid minerals; Land Reclamation Trust

 4  Fund; refund for restoration and reclamation.--

 5         (1)

 6         (d)  The Chief Financial Officer Comptroller shall,

 7  upon written verification of compliance with paragraph (a),

 8  paragraph (b), or paragraph (c) by the Department of

 9  Environmental Protection, and upon verification of the cost of

10  the restoration and reclamation program or, if paragraph (c)

11  is elected, the fair market value of the land, grant refunds,

12  to be paid from the Land Reclamation Trust Fund, of the taxes

13  paid under this part, in an amount equal to 100 percent of the

14  costs incurred in complying with paragraph (a) or paragraph

15  (b), or 100 percent of the fair market value of the land

16  transferred in complying with paragraph (c), subject to the

17  following limitations:

18         1.  A taxpayer shall not be entitled to refunds in

19  excess of the amount of taxes paid by the taxpayer under this

20  part which are deposited in the Land Reclamation Trust Fund.

21         2.  A taxpayer shall not be entitled to the payment of

22  a refund for costs incurred in connection with a particular

23  restoration and reclamation program unless and until the

24  taxpayer is accomplishing the program in reasonable compliance

25  with the criteria established by the Department of

26  Environmental Protection.

27         Section 190.  Paragraph (m) of subsection (5) of

28  section 212.08, Florida Statutes, is amended to read:

29         212.08  Sales, rental, use, consumption, distribution,

30  and storage tax; specified exemptions.--The sale at retail,

31  the rental, the use, the consumption, the distribution, and

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 1  the storage to be used or consumed in this state of the

 2  following are hereby specifically exempt from the tax imposed

 3  by this chapter.

 4         (5)  EXEMPTIONS; ACCOUNT OF USE.--

 5         (m)  Educational materials purchased by certain child

 6  care facilities.--Educational materials, such as glue, paper,

 7  paints, crayons, unique craft items, scissors, books, and

 8  educational toys, purchased by a child care facility that

 9  meets the standards delineated in s. 402.305, is licensed

10  under s. 402.308, holds a current Gold Seal Quality Care

11  designation pursuant to s. 402.281, and provides basic health

12  insurance to all employees are exempt from the taxes imposed

13  by this chapter. For purposes of this paragraph, the term

14  "basic health insurance" shall be defined and promulgated in

15  rules developed jointly by the Department of Children and

16  Family Services, the Agency for Health Care Administration,

17  and the Department of Financial Services Insurance.

18         Section 191.  Paragraph (c) of subsection (6) of

19  section 212.12, Florida Statutes, is amended to read:

20         212.12  Dealer's credit for collecting tax; penalties

21  for noncompliance; powers of Department of Revenue in dealing

22  with delinquents; brackets applicable to taxable transactions;

23  records required.--

24         (6)

25         (c)1.  If the records of a dealer are adequate but

26  voluminous in nature and substance, the department may sample

27  such records, except for fixed assets, and project the audit

28  findings derived therefrom over the entire audit period to

29  determine the proportion that taxable retail sales bear to

30  total retail sales or the proportion that taxable purchases

31  bear to total purchases. In order to conduct such a sample,

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 1  the department must first make a good faith effort to reach an

 2  agreement with the dealer, which agreement provides for the

 3  means and methods to be used in the sampling process.  In the

 4  event that no agreement is reached, the dealer is entitled to

 5  a review by the executive director.

 6         2.  For the purposes of sampling pursuant to

 7  subparagraph 1., the department shall project any deficiencies

 8  and overpayments derived therefrom over the entire audit

 9  period. In determining the dealer's compliance, the department

10  shall reduce any tax deficiency as derived from the sample by

11  the amount of any overpayment derived from the sample. In the

12  event the department determines from the sample results that

13  the dealer has a net tax overpayment, the department shall

14  provide the findings of this overpayment to the Chief

15  Financial Officer Comptroller for repayment of funds paid into

16  the State Treasury through error pursuant to s. 215.26.

17         Section 192.  Subsection (1) of section 212.20, Florida

18  Statutes, is amended to read:

19         212.20  Funds collected, disposition; additional powers

20  of department; operational expense; refund of taxes

21  adjudicated unconstitutionally collected.--

22         (1)  The department shall pay over to the Chief

23  Financial Officer Treasurer of the state all funds received

24  and collected by it under the provisions of this chapter, to

25  be credited to the account of the General Revenue Fund of the

26  state.

27         Section 193.  Subsections (4) and (6), paragraph (e) of

28  subsection (7) and subsection (13) of section 213.053, Florida

29  Statutes, are amended to read:

30         213.053  Confidentiality and information sharing.--

31  

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 1         (4)  Nothing contained in this section shall prevent

 2  the department from publishing statistics so classified as to

 3  prevent the identification of particular accounts, reports,

 4  declarations, or returns or prevent the department from

 5  disclosing to the Chief Financial Officer Comptroller the

 6  names and addresses of those taxpayers who have claimed an

 7  exemption pursuant to s. 199.185(1)(i) or a deduction pursuant

 8  to s. 220.63(5).

 9         (6)  Any information received by the Department of

10  Revenue in connection with the administration of taxes,

11  including, but not limited to, information contained in

12  returns, reports, accounts, or declarations filed by persons

13  subject to tax, shall be made available by the department to

14  the Auditor General or his or her authorized agent, the

15  director of the Office of Program Policy Analysis and

16  Government Accountability or his or her authorized agent, the

17  Chief Financial Officer Comptroller or his or her authorized

18  agent, the Insurance Commissioner or his or her authorized

19  agent, the Treasurer or his or her authorized agent, or a

20  property appraiser or tax collector or their authorized agents

21  pursuant to s. 195.084(1), in the performance of their

22  official duties, or to designated employees of the Department

23  of Education solely for determination of each school

24  district's price level index pursuant to s. 236.081(2);

25  however, no information shall be disclosed to the Auditor

26  General or his or her authorized agent, the director of the

27  Office of Program Policy Analysis and Government

28  Accountability or his or her authorized agent, the Chief

29  Financial Officer Comptroller or his or her authorized agent,

30  the Insurance Commissioner or his or her authorized agent, the

31  Treasurer or his or her authorized agent, or to a property

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 1  appraiser or tax collector or their authorized agents, or to

 2  designated employees of the Department of Education if such

 3  disclosure is prohibited by federal law.  The Auditor General

 4  or his or her authorized agent, the director of the Office of

 5  Program Policy Analysis and Government Accountability or his

 6  or her authorized agent, the Chief Financial Officer

 7  Comptroller or his or her authorized agent, the Treasurer or

 8  his or her authorized agent, and the property appraiser or tax

 9  collector and their authorized agents, or designated employees

10  of the Department of Education shall be subject to the same

11  requirements of confidentiality and the same penalties for

12  violation of the requirements as the department.  For the

13  purpose of this subsection, "designated employees of the

14  Department of Education" means only those employees directly

15  responsible for calculation of price level indices pursuant to

16  s. 236.081(2).  It does not include the supervisors of such

17  employees or any other employees or elected officials within

18  the Department of Education.

19         (7)  Notwithstanding any other provision of this

20  section, the department may provide:

21         (e)  Names, addresses, taxpayer identification numbers,

22  and outstanding tax liabilities to the Department of the

23  Lottery and the Department of Financial Services Banking and

24  Finance in the conduct of their official duties.

25         (13)  Notwithstanding the provisions of s. 896.102(2),

26  the department may allow full access to the information and

27  documents required to be filed with it under s. 896.102(1) to

28  federal, state, and local law enforcement and prosecutorial

29  agencies, and to the Department of Financial Services Banking

30  and Finance, and any of those agencies may use the information

31  

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 1  and documents in any civil or criminal investigation and in

 2  any court proceedings.

 3         Section 194.  Section 213.054, Florida Statutes, is

 4  amended to read:

 5         213.054  Persons claiming tax exemptions or deductions;

 6  annual report.--The Department of Revenue shall be responsible

 7  for monitoring the utilization of tax exemptions and tax

 8  deductions authorized pursuant to chapter 81-179, Laws of

 9  Florida.  On or before September 1 of each year, the

10  department shall report to the Chief Financial Officer

11  Comptroller the names and addresses of all persons who have

12  claimed an exemption pursuant to s. 199.185(1)(i) or a

13  deduction pursuant to s. 220.63(5).

14         Section 195.  Subsection (6) of section 213.255,

15  Florida Statutes, is amended to read:

16         213.255  Interest.--Interest shall be paid on

17  overpayments of taxes, payment of taxes not due, or taxes paid

18  in error, subject to the following conditions:

19         (6)  Interest shall be paid until a date determined by

20  the department which shall be no more than 7 days prior to the

21  date of the issuance of the refund warrant by the Chief

22  Financial Officer Comptroller.

23         Section 196.  Subsection (9) of section 213.67, Florida

24  Statutes, is amended to read:

25         213.67  Garnishment.--

26         (9)  The department shall provide notice to the Chief

27  Financial Officer Comptroller, in electronic or other form

28  specified by the Chief Financial Officer Comptroller, listing

29  the taxpayers for which tax warrants are outstanding. Pursuant

30  to subsection (1), the Chief Financial Officer Comptroller

31  shall, upon notice from the department, withhold all payments

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 1  to any person or business, as defined in s. 212.02, which

 2  provides commodities or services to the state, leases real

 3  property to the state, or constructs a public building or

 4  public work for the state. The department may levy upon the

 5  withheld payments in accordance with subsection (3). The

 6  provisions of s. 215.422 do not apply from the date the notice

 7  is filed with the Chief Financial Officer Comptroller until

 8  the date the department notifies the Chief Financial Officer

 9  Comptroller of its consent to make payment to the person or 60

10  days after receipt of the department's notice in accordance

11  with subsection (1), whichever occurs earlier.

12         Section 197.  Subsection (4) of section 213.75, Florida

13  Statutes, is amended to read:

14         213.75  Application of payments.--

15         (4)  Any surplus proceeds remaining after the

16  application of subsection (3) shall, upon application and

17  satisfactory proof thereof, be refunded by the Chief Financial

18  Officer Comptroller to the person or persons legally entitled

19  thereto pursuant to s. 215.26.

20         Section 198.  Section 215.02, Florida Statutes, is

21  amended to read:

22         215.02  Manner of paying money into the

23  Treasury.--Whenever any officer of this state or other person

24  desires to pay any money into the Treasury of the state on

25  account of his or her indebtedness to the state, the person

26  shall first go into the Department of Financial Services

27  Banking and Finance, and there ascertain from the department's

28  books the amount of his or her indebtedness to the state, and

29  thereupon the department shall give that person a memorandum

30  or certificate of the amount of such indebtedness, and on what

31  account.  Second, the person shall take said certificate with

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 1  him or her to the Department of Insurance and deliver the same

 2  and pay over to the Chief Financial Officer Insurance

 3  Commissioner and Treasurer the amount ascertained called for

 4  in said certificate.  Third, The Chief Financial Officer

 5  Insurance Commissioner and Treasurer shall receive the money,

 6  make a proper entry thereof, file the certificate of the

 7  Department of Banking and Finance, and give a certificate to

 8  the party paying over the money, acknowledging the receipt of

 9  the money, and on what account; which certificate thus

10  received, the party shall return to the Department of Banking

11  and Finance, on receipt of which the department shall give the

12  party a receipt for the amount, and enter a credit on the

13  party's account in his or her books for the amount thus paid

14  by him or her to the Insurance Commissioner and Treasurer, and

15  file the certificate received from the Insurance Commissioner

16  and Treasurer.

17         Section 199.  Section 215.03, Florida Statutes, is

18  amended to read:

19         215.03  Party to be reimbursed on reversal of judgment

20  for state.--Whenever upon appeal in civil cases, any judgment

21  in favor of the state has been or shall be reversed and set

22  aside, which may have been paid in part by the appellant, the

23  Chief Financial Officer Comptroller shall issue his or her

24  warrant upon the Treasurer to reimburse the appellant for all

25  sums paid in discharge of such judgment and cost, provided the

26  appellant shall adduce satisfactory evidence to the Chief

27  Financial Officer Comptroller of the sums paid as aforesaid.

28         Section 200.  Section 215.04, Florida Statutes, is

29  amended to read:

30         215.04  Department of Financial Services Banking and

31  Finance to report delinquents.--The Department of Financial

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 1  Services Banking and Finance shall report to the state

 2  attorney of the proper circuit the name of any delinquent

 3  officer whose delinquency concerns the department, so soon as

 4  such delinquency shall occur; and the state attorney shall

 5  proceed forthwith against such delinquent.

 6         Section 201.  Section 215.05, Florida Statutes, is

 7  amended to read:

 8         215.05  Department of Financial Services Banking and

 9  Finance to certify accounts of delinquents.--When any revenue

10  officer or other person accountable for public money shall

11  neglect or refuse to pay into the treasury the sum or balance

12  reported to be due to the state, upon the adjustment of that

13  person's account, the Department of Financial Services Banking

14  and Finance shall immediately hand over to the state attorney

15  of the proper circuit the statement of the sum or balance

16  certified under its seal of office, so due; and the state

17  attorney shall institute suit for the recovery of the same,

18  adding to the sum or balance stated to be due on such account

19  the commissions of the delinquent, which shall be forfeited in

20  every instance where suit is commenced and judgment is

21  obtained thereon, and an interest of 8 percent per annum from

22  the time of the delinquent's receiving the money until it

23  shall be paid into the State Treasury.

24         Section 202.  Section 215.11, Florida Statutes, is

25  amended to read:

26         215.11  Defaulting officers; Department of Financial

27  Services Banking and Finance to report to clerk.--The

28  Department of Financial Services Banking and Finance shall,

29  within 90 days after the expiration of the term of office of

30  any tax collector, sheriff, clerk of the circuit or county

31  court, treasurer, or any other officer of any county who has

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 1  the collection, custody, and control of any state funds, who

 2  shall be in arrears in his or her accounts with the state,

 3  make up and forward to the clerk of the circuit court of such

 4  county a statement of his or her accounts with the state.

 5         Section 203.  Paragraph (cc) of subsection (4) of

 6  section 215.20, Florida Statutes, is amended to read:

 7         215.20  Certain income and certain trust funds to

 8  contribute to the General Revenue Fund.--

 9         (4)  The income of a revenue nature deposited in the

10  following described trust funds, by whatever name designated,

11  is that from which the deductions authorized by subsection (3)

12  shall be made:

13         (cc)  The Insurance Commissioner's Regulatory Trust

14  Fund created by s. 624.523.

15  

16  The enumeration of the foregoing moneys or trust funds shall

17  not prohibit the applicability thereto of s. 215.24 should the

18  Governor determine that for the reasons mentioned in s. 215.24

19  the money or trust funds should be exempt herefrom, as it is

20  the purpose of this law to exempt income from its force and

21  effect when, by the operation of this law, federal matching

22  funds or contributions or private grants to any trust fund

23  would be lost to the state.

24         Section 204.  Paragraphs (e) and (g) of subsection (1)

25  of section 215.22, Florida Statutes, is amended to read:

26         215.22  Certain income and certain trust funds

27  exempt.--

28         (1)  The following income of a revenue nature or the

29  following trust funds shall be exempt from the deduction

30  required by s. 215.20(1):

31  

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 1         (e)  State, agency, or political subdivision

 2  investments by the Chief Financial Officer Treasurer.

 3         (g)  Self-insurance programs administered by the Chief

 4  Financial Officer Treasurer.

 5         Section 205.  Section 215.23, Florida Statutes, is

 6  amended to read:

 7         215.23  When contributions to be made.--The deductions

 8  required by s. 215.20 shall be paid into the appropriate fund

 9  by the Department of Financial Services Banking and Finance or

10  by the Chief Financial Officer State Treasurer, as the case

11  may be, for quarterly periods ending March 31, June 30,

12  September 30, and December 31 of each year, and when so paid

13  shall thereupon become a part of that fund to be accounted for

14  and disbursed as provided by law.

15         Section 206.  Section 215.24, Florida Statutes, is

16  amended to read:

17         215.24  Exemptions where federal contributions or

18  private grants.--

19         (1)  Should any state fund be the recipient of federal

20  contributions or private grants, either by the matching of

21  state funds or by a general donation to state funds, and the

22  payment of moneys into the General Revenue Fund under s.

23  215.20 should cause such fund to lose federal or private

24  assistance, the Governor shall certify to the Department of

25  Financial Services Banking and Finance and to the Chief

26  Financial Officer State Treasurer that said income is for that

27  reason exempt from the force and effect of s. 215.20.

28         (2)  Should it be determined by the Governor that by

29  reason of payments already made into the General Revenue Fund

30  by any fund under this law, such fund is subject to the loss

31  of federal or private assistance, then the Governor shall

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 1  certify to the Department of Financial Services Banking and

 2  Finance and to the Chief Financial Officer State Treasurer

 3  that the income from such assistance is exempt from the

 4  provisions of this law, and the Department of Financial

 5  Services Banking and Finance or the Chief Financial Officer

 6  State Treasurer, as the case may be, shall thereupon refund

 7  and pay over to such fund any amount previously paid into the

 8  General Revenue Fund from such income.

 9         Section 207.  Section 215.25, Florida Statutes, is

10  amended to read:

11         215.25  Manner of contributions; rules and

12  regulations.--The Department of Financial Services Banking and

13  Finance and the Chief Financial Officer State Treasurer are

14  hereby authorized to ascertain and determine the manner in

15  which the required amounts shall be deducted and paid and to

16  adopt and effectuate such rules and procedure as may be

17  necessary for carrying out the provisions of this law.  Such

18  rules and procedure shall be approved by the Executive Office

19  of the Governor.

20         Section 208.  Subsections (1), (2), and (5) of section

21  215.26, Florida Statutes, are amended to read:

22         215.26  Repayment of funds paid into State Treasury

23  through error.--

24         (1)  The Chief Financial Officer Comptroller of the

25  state may refund to the person who paid same, or his or her

26  heirs, personal representatives, or assigns, any moneys paid

27  into the State Treasury which constitute:

28         (a)  An overpayment of any tax, license, or account

29  due;

30         (b)  A payment where no tax, license, or account is

31  due; and

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 1         (c)  Any payment made into the State Treasury in error;

 2  

 3  and if any such payment has been credited to an appropriation,

 4  such appropriation shall at the time of making any such

 5  refund, be charged therewith. There are appropriated from the

 6  proper respective funds from time to time such sums as may be

 7  necessary for such refunds.

 8         (2)  Application for refunds as provided by this

 9  section must be filed with the Chief Financial Officer

10  Comptroller, except as otherwise provided in this subsection,

11  within 3 years after the right to the refund has accrued or

12  else the right is barred. Except as provided in chapter 198

13  and s. 220.23, an application for a refund of a tax enumerated

14  in s. 72.011, which tax was paid after September 30, 1994, and

15  before July 1, 1999, must be filed with the Chief Financial

16  Officer Comptroller within 5 years after the date the tax is

17  paid, and within 3 years after the date the tax was paid for

18  taxes paid on or after July 1, 1999. The Chief Financial

19  Officer Comptroller may delegate the authority to accept an

20  application for refund to any state agency, or the judicial

21  branch, vested by law with the responsibility for the

22  collection of any tax, license, or account due. The

23  application for refund must be on a form approved by the Chief

24  Financial Officer Comptroller and must be supplemented with

25  additional proof the Chief Financial Officer Comptroller deems

26  necessary to establish the claim; provided, the claim is not

27  otherwise barred under the laws of this state. Upon receipt of

28  an application for refund, the judicial branch or the state

29  agency to which the funds were paid shall make a determination

30  of the amount due. If an application for refund is denied, in

31  whole or in part, the judicial branch or such state agency

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 1  shall notify the applicant stating the reasons therefor. Upon

 2  approval of an application for refund, the judicial branch or

 3  such state agency shall furnish the Chief Financial Officer

 4  Comptroller with a properly executed voucher authorizing

 5  payment.

 6         (5)  When a taxpayer has pursued administrative

 7  remedies before the Department of Revenue pursuant to s.

 8  213.21 and has failed to comply with the time limitations and

 9  conditions provided in ss. 72.011 and 120.80(14)(b), a claim

10  of refund under subsection (1) shall be denied by the Chief

11  Financial Officer Comptroller. However, the Chief Financial

12  Officer Comptroller may entertain a claim for refund under

13  this subsection when the taxpayer demonstrates that his or her

14  failure to pursue remedies under chapter 72 was not due to

15  neglect or for the purpose of delaying payment of lawfully

16  imposed taxes and can demonstrate reasonable cause for such

17  failure.

18         Section 209.  Section 215.29, Florida Statutes, is

19  amended to read:

20         215.29  Classification of Chief Financial Officer's

21  Comptroller's warrants; report.--All disbursements made by the

22  state upon Chief Financial Officer's Comptroller's warrants

23  shall be classified according to officers, offices, bureaus,

24  divisions, boards, commissions, institutions, other agencies

25  and undertakings, or the judicial branch, and shall be further

26  classified according to personal services, contractual

27  services, commodities, current charges, current obligations,

28  capital outlays, debt payments, or investments or such

29  additional classifications as may be prescribed or authorized

30  by law.  Such detail classifications shall be printed in the

31  Chief Financial Officer's Comptroller's annual reports.

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 1         Section 210.  Section 215.31, Florida Statutes, is

 2  amended to read:

 3         215.31  State funds; deposit in State

 4  Treasury.--Revenue, including licenses, fees, imposts, or

 5  exactions collected or received under the authority of the

 6  laws of the state by each and every state official, office,

 7  employee, bureau, division, board, commission, institution,

 8  agency, or undertaking of the state or the judicial branch

 9  shall be promptly deposited in the State Treasury, and

10  immediately credited to the appropriate fund as herein

11  provided, properly accounted for by the Department of

12  Financial Services Banking and Finance as to source and no

13  money shall be paid from the State Treasury except as

14  appropriated and provided by the annual General Appropriations

15  Act, or as otherwise provided by law.

16         Section 211.  Section 215.32, Florida Statutes, as

17  amended by section 1 of chapter 2001-375, Laws of Florida, is

18  amended to read:

19         215.32  State funds; segregation.--

20         (1)  All moneys received by the state shall be

21  deposited in the State Treasury unless specifically provided

22  otherwise by law and shall be deposited in and accounted for

23  by the Chief Financial Officer Treasurer and the Department of

24  Financial Services Banking and Finance within the following

25  funds, which funds are hereby created and established:

26         (a)  General Revenue Fund.

27         (b)  Trust funds.

28         (c)  Working Capital Fund.

29         (d)  Budget Stabilization Fund.

30         (2)  The source and use of each of these funds shall be

31  as follows:

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 1         (a)  The General Revenue Fund shall consist of all

 2  moneys received by the state from every source whatsoever,

 3  except as provided in paragraphs (b) and (c).  Such moneys

 4  shall be expended pursuant to General Revenue Fund

 5  appropriations acts or transferred as provided in paragraph

 6  (c).  Annually, at least 5 percent of the estimated increase

 7  in General Revenue Fund receipts for the upcoming fiscal year

 8  over the current year General Revenue Fund effective

 9  appropriations shall be appropriated for state-level capital

10  outlay, including infrastructure improvement and general

11  renovation, maintenance, and repairs.

12         (b)1.  The trust funds shall consist of moneys received

13  by the state which under law or under trust agreement are

14  segregated for a purpose authorized by law.  The state agency

15  or branch of state government receiving or collecting such

16  moneys shall be responsible for their proper expenditure as

17  provided by law.  Upon the request of the state agency or

18  branch of state government responsible for the administration

19  of the trust fund, the Chief Financial Officer Comptroller may

20  establish accounts within the trust fund at a level considered

21  necessary for proper accountability. Once an account is

22  established within a trust fund, the Chief Financial Officer

23  Comptroller may authorize payment from that account only upon

24  determining that there is sufficient cash and releases at the

25  level of the account.

26         2.  In order to maintain a minimum number of trust

27  funds in the State Treasury, each state agency or the judicial

28  branch may consolidate, if permitted under the terms and

29  conditions of their receipt, the trust funds administered by

30  it; provided, however, the agency or judicial branch employs

31  effectively a uniform system of accounts sufficient to

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 1  preserve the integrity of such trust funds; and provided,

 2  further, that consolidation of trust funds is approved by the

 3  Governor or the Chief Justice.

 4         3.  All such moneys are hereby appropriated to be

 5  expended in accordance with the law or trust agreement under

 6  which they were received, subject always to the provisions of

 7  chapter 216 relating to the appropriation of funds and to the

 8  applicable laws relating to the deposit or expenditure of

 9  moneys in the State Treasury.

10         4.a.  Notwithstanding any provision of law restricting

11  the use of trust funds to specific purposes, unappropriated

12  cash balances from selected trust funds may be authorized by

13  the Legislature for transfer to the Budget Stabilization Fund

14  and Working Capital Fund in the General Appropriations Act.

15         b.  This subparagraph does not apply to trust funds

16  required by federal programs or mandates; trust funds

17  established for bond covenants, indentures, or resolutions

18  whose revenues are legally pledged by the state or public body

19  to meet debt service or other financial requirements of any

20  debt obligations of the state or any public body; the State

21  Transportation Trust Fund; the trust fund containing the net

22  annual proceeds from the Florida Education Lotteries; the

23  Florida Retirement System Trust Fund; trust funds under the

24  management of the Board of Regents, where such trust funds are

25  for auxiliary enterprises, self-insurance, and contracts,

26  grants, and donations, as those terms are defined by general

27  law; trust funds that serve as clearing funds or accounts for

28  the Chief Financial Officer Comptroller or state agencies;

29  trust funds that account for assets held by the state in a

30  trustee capacity as an agent or fiduciary for individuals,

31  

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 1  private organizations, or other governmental units; and other

 2  trust funds authorized by the State Constitution.

 3         (c)1.  The Budget Stabilization Fund shall consist of

 4  amounts equal to at least 5 percent of net revenue collections

 5  for the General Revenue Fund during the last completed fiscal

 6  year. The Budget Stabilization Fund's principal balance shall

 7  not exceed an amount equal to 10 percent of the last completed

 8  fiscal year's net revenue collections for the General Revenue

 9  Fund. As used in this paragraph, the term "last completed

10  fiscal year" means the most recently completed fiscal year

11  prior to the regular legislative session at which the

12  Legislature considers the General Appropriations Act for the

13  year in which the transfer to the Budget Stabilization Fund

14  must be made under this paragraph.

15         2.  By September 15 of each year, the Governor shall

16  authorize the Chief Financial Officer Comptroller to transfer,

17  and the Chief Financial Officer Comptroller shall transfer

18  pursuant to appropriations made by law, to the Budget

19  Stabilization Fund the amount of money needed for the balance

20  of that fund to equal the amount specified in subparagraph 1.,

21  less any amounts expended and not restored. The moneys needed

22  for this transfer may be appropriated by the Legislature from

23  any funds.

24         3.  Unless otherwise provided in this subparagraph, an

25  expenditure from the Budget Stabilization Fund must be

26  restored pursuant to a restoration schedule that provides for

27  making five equal annual transfers from the General Revenue

28  Fund, beginning in the fiscal year following that in which the

29  expenditure was made. For any Budget Stabilization Fund

30  expenditure, the Legislature may establish by law a different

31  restoration schedule and such change may be made at any time

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 1  during the restoration period. Moneys are hereby appropriated

 2  for transfers pursuant to this subparagraph.

 3         4.  The Budget Stabilization Fund and the Working

 4  Capital Fund may be used as revolving funds for transfers as

 5  provided in s. 18.125; however, any interest earned must be

 6  deposited in the General Revenue Fund.

 7         5.  The Chief Financial Officer Comptroller and the

 8  Department of Management Services shall transfer funds to

 9  water management districts to pay eligible water management

10  district employees for all benefits due under s. 373.6065, as

11  long as funds remain available for the program described under

12  s. 100.152.

13         (d)  The Working Capital Fund shall consist of moneys

14  in the General Revenue Fund which are in excess of the amount

15  needed to meet General Revenue Fund appropriations for the

16  current fiscal year. Each year, no later than the publishing

17  date of the annual financial statements for the state by the

18  Chief Financial Officer Comptroller under s. 216.102, funds

19  shall be transferred between the Working Capital Fund and the

20  General Revenue Fund to establish the balance of the Working

21  Capital Fund for that fiscal year at the amount determined

22  pursuant to this paragraph.

23         Section 212.  Subsections (2) and (3) of section

24  215.3206, Florida Statutes, are amended to read:

25         215.3206  Trust funds; termination or re-creation.--

26         (2)  If the trust fund is terminated and not

27  immediately re-created, all cash balances and income of the

28  trust fund shall be deposited into the General Revenue Fund.

29  The agency or Chief Justice shall pay any outstanding debts of

30  the trust fund as soon as practicable, and the Chief Financial

31  Officer Comptroller shall close out and remove the trust fund

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 1  from the various state accounting systems, using generally

 2  accepted accounting practices concerning warrants outstanding,

 3  assets, and liabilities.  No appropriation or budget amendment

 4  shall be construed to authorize any encumbrance of funds from

 5  a trust fund after the date on which the trust fund is

 6  terminated or is judicially determined to be invalid.

 7         (3)  On or before September 1 of each year, the Chief

 8  Financial Officer Comptroller shall submit to the Executive

 9  Office of the Governor, the President of the Senate, and the

10  Speaker of the House of Representatives a list of trust funds

11  that are scheduled to terminate within 12 months after that

12  date and also, beginning September 1, 1996, a list of all

13  trust funds that are exempt from automatic termination

14  pursuant to the provisions of s. 19(f)(3), Art. III of the

15  State Constitution, listing revenues of the trust funds by

16  major revenue category for each of the last 4 fiscal years.

17         Section 213.  Paragraph (a) of subsection (2) of

18  section 215.3208, Florida Statutes, is amended to read:

19         215.3208  Trust funds; legislative review.--

20         (2)(a)  When the Legislature terminates a trust fund,

21  the agency or branch of state government that administers the

22  trust fund shall pay any outstanding debts or obligations of

23  the trust fund as soon as practicable, and the Chief Financial

24  Officer Comptroller shall close out and remove the trust fund

25  from the various state accounting systems, using generally

26  accepted accounting principles concerning assets, liabilities,

27  and warrants outstanding.

28         Section 214.  Section 215.321, Florida Statutes, is

29  amended to read:

30         215.321  Regulatory trust fund.--All funds received

31  pursuant to ss. 494.001-494.0077, chapter 497, chapter 516,

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 1  chapter 520, or part I of chapter 559 shall be deposited into

 2  the Banking and Finance Regulatory Trust Fund.

 3         Section 215.  Subsections (2), (3), and (4) of section

 4  215.322, Florida Statutes, are amended to read:

 5         215.322  Acceptance of credit cards, charge cards, or

 6  debit cards by state agencies, units of local government, and

 7  the judicial branch.--

 8         (2)  A state agency as defined in s. 216.011, or the

 9  judicial branch, may accept credit cards, charge cards, or

10  debit cards in payment for goods and services with the prior

11  approval of the Chief Financial Officer Treasurer. When the

12  Internet or other related electronic methods are to be used as

13  the collection medium, the State Technology Office shall

14  review and recommend to the Chief Financial Officer Treasurer

15  whether to approve the request with regard to the process or

16  procedure to be used.

17         (3)  The Chief Financial Officer Treasurer shall adopt

18  rules governing the establishment and acceptance of credit

19  cards, charge cards, or debit cards by state agencies or the

20  judicial branch, including, but not limited to, the following:

21         (a)  Utilization of a standardized contract between the

22  financial institution or other appropriate intermediaries and

23  the agency or judicial branch which shall be developed by the

24  Chief Financial Officer Treasurer or approval by the Chief

25  Financial Officer Treasurer of a substitute agreement.

26         (b)  Procedures which permit an agency or officer

27  accepting payment by credit card, charge card, or debit card

28  to impose a convenience fee upon the person making the

29  payment. However, the total amount of such convenience fees

30  shall not exceed the total cost to the state agency. A

31  convenience fee is not refundable to the payor.

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 1  Notwithstanding the foregoing, this section shall not be

 2  construed to permit surcharges on any other credit card

 3  purchase in violation of s. 501.0117.

 4         (c)  All service fees payable pursuant to this section

 5  when practicable shall be invoiced and paid by state warrant

 6  or such other manner that is satisfactory to the Chief

 7  Financial Officer Comptroller in accordance with the time

 8  periods specified in s. 215.422.

 9         (d)  Submission of information to the Chief Financial

10  Officer Treasurer concerning the acceptance of credit cards,

11  charge cards, or debit cards by all state agencies or the

12  judicial branch.

13         (e)  A methodology for agencies to use when completing

14  the cost-benefit analysis referred to in subsection (1). The

15  methodology must consider all quantifiable cost reductions,

16  other benefits to the agency, and potential impact on general

17  revenue. The methodology must also consider nonquantifiable

18  benefits such as the convenience to individuals and businesses

19  that would benefit from the ability to pay for state goods and

20  services through the use of credit cards, charge cards, and

21  debit cards.

22         (4)  The Chief Financial Officer may Treasurer is

23  authorized to establish contracts with one or more financial

24  institutions, credit card companies, or other entities which

25  may lawfully provide such services, in a manner consistent

26  with chapter 287, for processing credit card, charge card, or

27  debit card collections for deposit into the State Treasury or

28  another qualified public depository.  Any state agency, or the

29  judicial branch, which accepts payment by credit card, charge

30  card, or debit card shall use at least one of the contractors

31  established by the Chief Financial Officer Treasurer unless

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 1  the state agency or judicial branch obtains authorization from

 2  the Chief Financial Officer Treasurer to use another

 3  contractor which is more advantageous to such state agency or

 4  the judicial branch.  Such contracts may authorize a unit of

 5  local government to use the services upon the same terms and

 6  conditions for deposit of credit card, charge card, or debit

 7  card transactions into its qualified public depositories.

 8         Section 216.  Subsections (1) and (2) of section

 9  215.34, Florida Statutes, are amended to read:

10         215.34  State funds; noncollectible items; procedure.--

11         (1)  Any check, draft, or other order for the payment

12  of money in payment of any licenses, fees, taxes, commissions,

13  or charges of any sort authorized to be made under the laws of

14  the state and deposited in the State Treasury as provided

15  herein, which may be returned for any reason by the bank or

16  other payor upon which same shall have been drawn shall be

17  forthwith returned by the Chief Financial Officer State

18  Treasurer for collection to the state officer, the state

19  agency, or the entity of the judicial branch making the

20  deposit. In such case, the Chief Financial Officer may

21  Treasurer is hereby authorized to issue a debit memorandum

22  charging an account of the agency, officer, or entity of the

23  judicial branch which originally received the payment.  The

24  original of the debit memorandum shall state the reason for

25  the return of the check, draft, or other order and shall

26  accompany the item being returned to the officer, agency, or

27  entity of the judicial branch being charged, and a copy of the

28  debit memorandum shall be sent to the Comptroller. The

29  officer, agency, or entity of the judicial branch receiving

30  the charged-back item shall prepare a journal transfer which

31  shall debit the charge against the fund or account to which

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 1  the same shall have been originally credited.  Such procedure

 2  for handling noncollectible items shall not be construed as

 3  paying funds out of the State Treasury without an

 4  appropriation, but shall be considered as an administrative

 5  procedure for the efficient handling of state records and

 6  accounts.

 7         (2)  Whenever a check, draft, or other order for the

 8  payment of money is returned by the Chief Financial Officer

 9  State Treasurer, or by a qualified public depository as

10  defined in s. 280.02, to a state officer, a state agency, or

11  the judicial branch for collection, the officer, agency, or

12  judicial branch shall add to the amount due a service fee of

13  $15 or 5 percent of the face amount of the check, draft, or

14  order, whichever is greater.  An agency or the judicial branch

15  may adopt a rule which prescribes a lesser maximum service

16  fee, which shall be added to the amount due for the dishonored

17  check, draft, or other order tendered for a particular

18  service, license, tax, fee, or other charge, but in no event

19  shall the fee be less than $15. The service fee shall be in

20  addition to all other penalties imposed by law, except that

21  when other charges or penalties are imposed by an agency

22  related to a noncollectible item, the amount of the service

23  fee shall not exceed $150. Proceeds from this fee shall be

24  deposited in the same fund as the collected item. Nothing in

25  this section shall be construed as authorization to deposit

26  moneys outside the State Treasury unless specifically

27  authorized by law.

28         Section 217.  Section 215.35, Florida Statutes, is

29  amended to read:

30         215.35  State funds; warrants and their issuance.--All

31  warrants issued by the Chief Financial Officer Comptroller

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 1  shall be numbered in chronological order commencing with

 2  number one in each fiscal year and each warrant shall refer to

 3  the Chief Financial Officer's Comptroller's voucher by the

 4  number thereof, which voucher shall also be numbered as above

 5  set forth.  Each warrant shall state the name of the payee

 6  thereof and the amount allowed, and said warrant shall be

 7  stated in words at length.  No warrant shall issue until same

 8  has been authorized by an appropriation made by law but such

 9  warrant need not state or set forth such authorization.  The

10  Chief Financial Officer Comptroller shall register and

11  maintain a record of each warrant in his or her office.  The

12  record shall show the funds, accounts, purposes, and

13  departments involved in the issuance of each warrant.  In

14  those instances where the expenditure of funds of regulatory

15  boards or commissions has been provided for by laws other than

16  the annual appropriations bill, warrants shall be issued upon

17  requisition to the Chief Financial Officer State Comptroller

18  by the governing body of such board or commission.

19         Section 218.  Section 215.405, Florida Statutes, is

20  amended to read:

21         215.405  State agencies and the judicial branch

22  authorized to collect costs of fingerprinting.--Any state

23  agency, or the judicial branch, exercising regulatory

24  authority and authorized to take fingerprints of persons

25  within or seeking to come within such agency's or the judicial

26  branch's regulatory power may collect from the person or

27  entity on whose behalf the fingerprints were submitted the

28  actual costs of processing such fingerprints including, but

29  not limited to, any charges imposed by the Department of Law

30  Enforcement or any agency or branch of the United States

31  Government.  This provision shall constitute express authority

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 1  for state agencies and the judicial branch to collect the

 2  actual costs of processing the fingerprints either prior to or

 3  subsequent to the actual processing and shall supersede any

 4  other law to the contrary.  To administer the provisions of

 5  this section, a state agency, or the judicial branch, electing

 6  to collect the cost of fingerprinting is empowered to

 7  promulgate and adopt rules to establish the amounts and the

 8  methods of payment needed to collect such costs.  Collections

 9  made under these provisions shall be deposited with the Chief

10  Financial Officer Treasurer to an appropriate trust fund

11  account to be designated by the Executive Office of the

12  Governor.

13         Section 219.  Section 215.42, Florida Statutes, is

14  amended to read:

15         215.42  Purchases from appropriations, proof of

16  delivery.--The Chief Financial Officer State Comptroller may

17  require proof, as he or she deems necessary, of delivery and

18  receipt of purchases before honoring any voucher for payment

19  from appropriations made in the General Appropriations Act or

20  otherwise provided by law.

21         Section 220.  Section 215.422, Florida Statutes, is

22  amended to read:

23         215.422  Warrants, vouchers, and invoices; processing

24  time limits; dispute resolution; agency or judicial branch

25  compliance.--

26         (1)  The voucher authorizing payment of an invoice

27  submitted to an agency of the state or the judicial branch,

28  required by law to be filed with the Chief Financial Officer

29  Comptroller, shall be filed with the Chief Financial Officer

30  Comptroller not later than 20 days after receipt of the

31  invoice and receipt, inspection, and approval of the goods or

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 1  services, except that in the case of a bona fide dispute the

 2  voucher shall contain a statement of the dispute and authorize

 3  payment only in the amount not disputed.  The Chief Financial

 4  Officer Comptroller may establish dollar thresholds and other

 5  criteria for all invoices and may delegate to a state agency

 6  or the judicial branch responsibility for maintaining the

 7  official vouchers and documents for invoices which do not

 8  exceed the thresholds or which meet the established criteria.

 9  Such records shall be maintained in accordance with the

10  requirements established by the Secretary of State.  The

11  electronic payment request transmission to the Chief Financial

12  Officer Comptroller shall constitute filing of a voucher for

13  payment of invoices for which the Chief Financial Officer

14  Comptroller has delegated to an agency custody of official

15  records. Approval and inspection of goods or services shall

16  take no longer than 5 working days unless the bid

17  specifications, purchase order, or contract specifies

18  otherwise.  If a voucher filed within the 20-day period is

19  returned by the Department of Financial Services Banking and

20  Finance because of an error, it shall nevertheless be deemed

21  timely filed.  The 20-day filing requirement may be waived in

22  whole or in part by the Department of Financial Services

23  Banking and Finance on a showing of exceptional circumstances

24  in accordance with rules and regulations of the department.

25  For the purposes of determining the receipt of invoice date,

26  the agency or the judicial branch is deemed to receive an

27  invoice on the date on which a proper invoice is first

28  received at the place designated by the agency or the judicial

29  branch.  The agency or the judicial branch is deemed to

30  receive an invoice on the date of the invoice if the agency or

31  the judicial branch has failed to annotate the invoice with

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 1  the date of receipt at the time the agency or the judicial

 2  branch actually received the invoice or failed at the time the

 3  order is placed or contract made to designate a specific

 4  location to which the invoice must be delivered.

 5         (2)  The warrant in payment of an invoice submitted to

 6  an agency of the state or the judicial branch shall be issued

 7  not later than 10 days after filing of the voucher authorizing

 8  payment. However, this requirement may be waived in whole or

 9  in part by the Department of Financial Services Banking and

10  Finance on a showing of exceptional circumstances in

11  accordance with rules and regulations of the department.  If

12  the 10-day period contains fewer than 6 working days, the

13  Department of Financial Services Banking and Finance shall be

14  deemed in compliance with this subsection if the warrant is

15  issued within 6 working days without regard to the actual

16  number of calendar days. For purposes of this section, a

17  payment is deemed to be issued on the first working day that

18  payment is available for delivery or mailing to the vendor.

19         (3)(a)  Each agency of the state or the judicial branch

20  which is required by law to file vouchers with the Chief

21  Financial Officer Comptroller shall keep a record of the date

22  of receipt of the invoice; dates of receipt, inspection, and

23  approval of the goods or services; date of filing of the

24  voucher; and date of issuance of the warrant in payment

25  thereof. If the voucher is not filed or the warrant is not

26  issued within the time required, an explanation in writing by

27  the agency head or the Chief Justice shall be submitted to the

28  Department of Financial Services Banking and Finance in a

29  manner prescribed by it. Agencies and the judicial branch

30  shall continue to deliver or mail state payments promptly.

31  

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 1         (b)  If a warrant in payment of an invoice is not

 2  issued within 40 days after receipt of the invoice and

 3  receipt, inspection, and approval of the goods and services,

 4  the agency or judicial branch shall pay to the vendor, in

 5  addition to the amount of the invoice, interest at a rate as

 6  established pursuant to s. 55.03(1) on the unpaid balance from

 7  the expiration of such 40-day period until such time as the

 8  warrant is issued to the vendor. Such interest shall be added

 9  to the invoice at the time of submission to the Chief

10  Financial Officer Comptroller for payment whenever possible.

11  If addition of the interest penalty is not possible, the

12  agency or judicial branch shall pay the interest penalty

13  payment within 15 days after issuing the warrant. The

14  provisions of this paragraph apply only to undisputed amounts

15  for which payment has been authorized. Disputes shall be

16  resolved in accordance with rules developed and adopted by the

17  Chief Justice for the judicial branch, and rules adopted by

18  the Department of Financial Services Banking and Finance or in

19  a formal administrative proceeding before an administrative

20  law judge of the Division of Administrative Hearings for state

21  agencies, provided that, for the purposes of ss. 120.569 and

22  120.57(1), no party to a dispute involving less than $1,000 in

23  interest penalties shall be deemed to be substantially

24  affected by the dispute or to have a substantial interest in

25  the decision resolving the dispute. In the case of an error on

26  the part of the vendor, the 40-day period shall begin to run

27  upon receipt by the agency or the judicial branch of a

28  corrected invoice or other remedy of the error. The provisions

29  of this paragraph do not apply when the filing requirement

30  under subsection (1) or subsection (2) has been waived in

31  whole by the Department of Financial Services Banking and

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 1  Finance. The various state agencies and the judicial branch

 2  shall be responsible for initiating the penalty payments

 3  required by this subsection and shall use this subsection as

 4  authority to make such payments. The budget request submitted

 5  to the Legislature shall specifically disclose the amount of

 6  any interest paid by any agency or the judicial branch

 7  pursuant to this subsection. The temporary unavailability of

 8  funds to make a timely payment due for goods or services does

 9  not relieve an agency or the judicial branch from the

10  obligation to pay interest penalties under this section.

11         (c)  An agency or the judicial branch may make partial

12  payments to a contractor upon partial delivery of goods or

13  services or upon partial completion of construction when a

14  request for such partial payment is made by the contractor and

15  approved by the agency. Provisions of this section and rules

16  of the Department of Financial Services Banking and Finance

17  shall apply to partial payments in the same manner as they

18  apply to full payments.

19         (4)  If the terms of the invoice provide a discount for

20  payment in less than 30 days, agencies of the state and the

21  judicial branch shall preferentially process it and use all

22  diligence to obtain the saving by compliance with the invoice

23  terms.

24         (5)  All purchasing agreements between a state agency

25  or the judicial branch and a vendor, applicable to this

26  section, shall include a statement of the vendor's rights and

27  the state's responsibilities under this section.  The vendor's

28  rights shall include being provided with the telephone number

29  of the vendor ombudsman within the Department of Financial

30  Services Banking and Finance, which information shall also be

31  placed on all agency or judicial branch purchase orders.

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 1         (6)  The Department of Financial Services Banking and

 2  Finance shall monitor each agency's and the judicial branch's

 3  compliance with the time limits and interest penalty

 4  provisions of this section.  The department shall provide a

 5  report to an agency or to the judicial branch if the

 6  department determines that the agency or the judicial branch

 7  has failed to maintain an acceptable rate of compliance with

 8  the time limits and interest penalty provisions of this

 9  section.  The department shall establish criteria for

10  determining acceptable rates of compliance. The report shall

11  also include a list of late vouchers or payments, the amount

12  of interest owed or paid, and any corrective actions

13  recommended.  The department shall perform monitoring

14  responsibilities, pursuant to this section, using the

15  Management Services and Purchasing Subsystem or the Florida

16  Accounting Information Resource Subsystem provided in s.

17  215.94.  Each agency and the judicial branch shall be

18  responsible for the accuracy of information entered into the

19  Management Services and Purchasing Subsystem and the Florida

20  Accounting Information Resource Subsystem for use in this

21  monitoring.

22         (7)  There is created a vendor ombudsman within the

23  Department of Financial Services Banking and Finance who shall

24  be responsible for the following functions:

25         (a)  Performing the duties of the department pursuant

26  to subsection (6).

27         (b)  Reviewing requests for waivers due to exceptional

28  circumstances.

29         (c)  Disseminating information relative to the prompt

30  payment policies of this state and assisting vendors in

31  receiving their payments in a timely manner.

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 1         (d)  Performing such other duties as determined by the

 2  department.

 3         (8)  The Department of Financial Services Banking and

 4  Finance is authorized and directed to adopt and promulgate

 5  rules and regulations to implement this section and for

 6  resolution of disputes involving amounts of less than $1,000

 7  in interest penalties for state agencies.  No agency or the

 8  judicial branch shall adopt any rule or policy that is

 9  inconsistent with this section or the Department of Financial

10  Services' Banking and Finance's rules or policies.

11         (9)  Each agency and the judicial branch shall include

12  in the official position description of every officer or

13  employee who is responsible for the approval or processing of

14  vendors' invoices or distribution of warrants to vendors that

15  the requirements of this section are mandatory.

16         (10)  Persistent failure to comply with this section by

17  any agency of the state or the judicial branch shall

18  constitute good cause for discharge of employees duly found

19  responsible, or predominantly responsible, for failure to

20  comply.

21         (11)  Travel and other reimbursements to state officers

22  and employees must be the same as payments to vendors under

23  this section, except payment of Class C travel subsistence.

24  Class C travel subsistence shall be paid in accordance with

25  the schedule established by the Chief Financial Officer

26  Comptroller pursuant to s. 112.061(5)(b). This section does

27  not apply to payments made to state agencies, the judicial

28  branch, or the legislative branch.

29         (12)  In the event that a state agency or the judicial

30  branch contracts with a third party, uses a revolving fund, or

31  pays from a local bank account to process and pay invoices for

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 1  goods or services, all requirements for financial obligations

 2  and time processing set forth in this section shall be

 3  applicable and the state agency or the judicial branch shall

 4  be responsible for paying vendors the interest assessed for

 5  untimely payment. The state agency or the judicial branch may,

 6  through its contract with a third party, require the third

 7  party to pay interest from the third party's funds.

 8         (13)  Notwithstanding the provisions of subsections (3)

 9  and (12), in order to alleviate any hardship that may be

10  caused to a health care provider as a result of delay in

11  receiving reimbursement for services, any payment or payments

12  for hospital, medical, or other health care services which are

13  to be reimbursed by a state agency or the judicial branch,

14  either directly or indirectly, shall be made to the health

15  care provider not more than 35 days from the date eligibility

16  for payment of such claim is determined.  If payment is not

17  issued to a health care provider within 35 days after the date

18  eligibility for payment of the claim is determined, the state

19  agency or the judicial branch shall pay the health care

20  provider interest at a rate of 1 percent per month calculated

21  on a calendar day basis on the unpaid balance from the

22  expiration of such 35-day period until such time as payment is

23  made to the health care provider, unless a waiver in whole has

24  been granted by the Department of Financial Services Banking

25  and Finance pursuant to subsection (1) or subsection (2).

26         (14)  The Chief Financial Officer Comptroller may adopt

27  rules to authorize advance payments for goods and services,

28  including, but not limited to, maintenance agreements and

29  subscriptions.  Such rules shall provide objective criteria

30  for determining when it is in the best interest of the state

31  to make payments in advance and shall also provide for

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 1  adequate protection to ensure that such goods or services will

 2  be provided.

 3         (15)  Nothing contained in this section shall be

 4  construed to be an appropriation.  Any interest which becomes

 5  due and owing pursuant to this section shall only be payable

 6  from the appropriation charged for such goods or services.

 7         (16)  Notwithstanding the provisions of s. 24.120(3),

 8  applicable to warrants issued for payment of invoices

 9  submitted by the Department of the Lottery, the Chief

10  Financial Officer Comptroller may, by written agreement with

11  the Department of the Lottery, establish a shorter time

12  requirement than the 10 days provided in subsection (2) for

13  warrants issued for payment.  Pursuant to such written

14  agreement, the Department of the Lottery shall reimburse the

15  Chief Financial Officer Comptroller for costs associated with

16  processing invoices under the agreement.

17         Section 221.  Subsection (1) of section 215.44, Florida

18  Statutes, is amended to read:

19         215.44  Board of Administration; powers and duties in

20  relation to investment of trust funds.--

21         (1)  Except when otherwise specifically provided by the

22  State Constitution and subject to any limitations of the trust

23  agreement relating to a trust fund, the Board of

24  Administration, hereinafter sometimes referred to as "board,"

25  composed of the Governor as chair, the Chief Financial Officer

26  Treasurer, and the Attorney General Comptroller, shall invest

27  all the funds in the System Trust Fund, as defined in s.

28  121.021(36), and all other funds specifically required by law

29  to be invested by the board pursuant to ss. 215.44-215.53 to

30  the fullest extent that is consistent with the cash

31  requirements, trust agreement, and investment objectives of

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 1  the fund. Notwithstanding any other law to the contrary, the

 2  State Board of Administration may invest any funds of any

 3  state agency or any unit of local government pursuant to the

 4  terms of a trust agreement with the head of the state agency

 5  or the governing body of the unit of local government, which

 6  trust agreement shall govern the investment of such funds,

 7  provided that the board shall approve the undertaking of such

 8  investment before execution of the trust agreement by the

 9  State Board of Administration. The funds and the earnings

10  therefrom are exempt from the service charge imposed by s.

11  215.20. As used in this subsection, the term "state agency"

12  has the same meaning as that provided in s. 216.001, and the

13  terms "governing body" and "unit of local government" have the

14  same meaning as that provided in s. 218.403.

15         Section 222.  Section 215.50, Florida Statutes, is

16  amended to read:

17         215.50  Custody of securities purchased; income.--

18         (1)  All securities purchased or held may, with the

19  approval of the board, be in the custody of the Chief

20  Financial Officer Treasurer or the Chief Financial Officer

21  Treasurer as treasurer ex officio of the board, or be

22  deposited with a bank or trust company to be held in

23  safekeeping by such bank or trust company for the collection

24  of principal and interest or of the proceeds of the sale

25  thereof.

26         (2)  It shall be the duty of the board or of the Chief

27  Financial Officer Treasurer, as custodian of the securities of

28  the board, to collect the interest or other income on, and the

29  principal of, such securities in their custody as the sums

30  become due and payable and to pay the same, when so collected,

31  

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 1  into the investment account of the fund to which the

 2  investments belong.

 3         (3)  The Chief Financial Officer Treasurer, as

 4  custodian of securities owned by the Florida Retirement System

 5  Trust Fund and the Florida Survivor Benefit Trust Fund, shall

 6  collect the interest, dividends, prepayments, maturities,

 7  proceeds from sales, and other income accruing from such

 8  assets.  As such income is collected by the Chief Financial

 9  Officer Treasurer, it shall be deposited directly into a

10  commercial bank to the credit of the State Board of

11  Administration.  Such bank accounts as may be required for

12  this purpose shall offer satisfactory collateral security as

13  provided by chapter 280.  In the event funds so deposited

14  according to the provisions of this section are required for

15  the purpose of paying benefits or other operational needs, the

16  State Board of Administration shall remit to the Florida

17  Retirement System Trust Fund in the State Treasury such

18  amounts as may be requested by the Department of Management

19  Services.

20         (4)  Securities that the board selects to use for

21  options operations under s. 215.45 or for lending under s.

22  215.47(16) shall be registered by the Chief Financial Officer

23  Treasurer in the name of a third-party nominee in order to

24  facilitate such operations.

25         Section 223.  Section 215.551, Florida Statutes, is

26  amended to read:

27         215.551  Federal Use of State Lands Trust Fund; county

28  distribution.--

29         (1)  The Chief Financial Officer Comptroller may make

30  distribution of the Federal Use of State Lands Trust Fund,

31  

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 1  when so requested by the counties in interest, of such amounts

 2  as may be accumulated in that fund.

 3         (2)  The Chief Financial Officer Comptroller shall

 4  ascertain, from the records of the General Land Office or

 5  other departments in Washington, D.C., the number of acres of

 6  land situated in the several counties in which the

 7  Apalachicola, Choctawhatchee, Ocala, and Osceola Forest

 8  Reserves are located, the number of acres of land of such

 9  forest reserve embraced in each of the counties in each of the

10  reserves, and, also, the amount of money received by the

11  United States Government from each of the reserves,

12  respectively.  The Chief Financial Officer Comptroller shall

13  apportion the money on hand to each county in each reserve,

14  respectively and separately; such distribution shall be based

15  upon the number of acres of land embraced in the Apalachicola

16  Forest, Choctawhatchee Forest, Ocala Forest, and Osceola

17  Forest, respectively, in each county and shall be further

18  based upon the amount collected by the United States from each

19  of such forests, so that such distribution, when made, will

20  include for each county the amount due each county, based upon

21  the receipts for the particular forest and the acreage in the

22  particular county in which such forest is located.  The Chief

23  Financial Officer Comptroller shall issue two warrants on the

24  Treasurer in each case, the sum of which shall be the amount

25  due each of such counties from the fund.  One warrant shall be

26  payable to the county for the county general road fund, and

27  one warrant, of equal amount, shall be payable to such

28  county's district school board for the district school fund.

29         (3)  In the event that actual figures of receipts from

30  different reserves cannot be obtained by counties, so as to

31  fully comply with subsections (1) and (2), the Chief Financial

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 1  Officer Comptroller may adjust the matter according to the

 2  United States statutes, or as may appear to him or her to be

 3  just and fair, and with the approval of all counties in

 4  interest.

 5         (4)  The moneys that may be received and credited to

 6  the Federal Use of State Lands Trust Fund are appropriated for

 7  the payment of the warrants of the Chief Financial Officer

 8  Comptroller drawn on the Treasurer in pursuance of this

 9  section.

10         Section 224.  Section 215.552, Florida Statutes, is

11  amended to read:

12         215.552  Federal Use of State Lands Trust Fund; land

13  within military installations; county distribution.--The Chief

14  Financial Officer Comptroller shall distribute moneys from the

15  Federal Use of State Lands Trust Fund when so requested by the

16  counties so affected.  The Chief Financial Officer Comptroller

17  shall apportion the money on hand equal to the percentage of

18  land in each county within each military installation, and the

19  amount so apportioned to each county shall be applied by such

20  counties equally divided between the district school fund and

21  the general road fund of such counties.

22         Section 225.  Paragraph (c) of subsection (2),

23  paragraph (d) of subsection (4), and paragraphs (a), (b), and

24  (c) of subsection (6) of section 215.555, Florida Statutes,

25  are amended to read:

26         215.555  Florida Hurricane Catastrophe Fund.--

27         (2)  DEFINITIONS.--As used in this section:

28         (c)  "Covered policy" means any insurance policy

29  covering residential property in this state, including, but

30  not limited to, any homeowner's, mobile home owner's, farm

31  owner's, condominium association, condominium unit owner's,

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 1  tenant's, or apartment building policy, or any other policy

 2  covering a residential structure or its contents issued by any

 3  authorized insurer, including any joint underwriting

 4  association or similar entity created pursuant to law.

 5  Additionally, covered policies include policies covering the

 6  peril of wind removed from the Florida Residential Property

 7  and Casualty Joint Underwriting Association, created pursuant

 8  to s. 627.351(6), or from the Florida Windstorm Underwriting

 9  Association, created pursuant to s. 627.351(2), by an

10  authorized insurer under the terms and conditions of an

11  executed assumption agreement between the authorized insurer

12  and either such association. Each assumption agreement between

13  either association and such authorized insurer must be

14  approved by the Florida Department of Financial Services

15  Insurance prior to the effective date of the assumption, and

16  the Department of Financial Services Insurance must provide

17  written notification to the board within 15 working days after

18  such approval. "Covered policy" does not include any policy

19  that excludes wind coverage or hurricane coverage or any

20  reinsurance agreement and does not include any policy

21  otherwise meeting this definition which is issued by a surplus

22  lines insurer or a reinsurer.

23         (4)  REIMBURSEMENT CONTRACTS.--

24         (d)1.  For purposes of determining potential liability

25  and to aid in the sound administration of the fund, the

26  contract shall require each insurer to report such insurer's

27  losses from each covered event on an interim basis, as

28  directed by the board.  The contract shall require the insurer

29  to report to the board no later than December 31 of each year,

30  and quarterly thereafter, its reimbursable losses from covered

31  events for the year. The contract shall require the board to

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 1  determine and pay, as soon as practicable after receiving

 2  these reports of reimbursable losses, the initial amount of

 3  reimbursement due and adjustments to this amount based on

 4  later loss information. The adjustments to reimbursement

 5  amounts shall require the board to pay, or the insurer to

 6  return, amounts reflecting the most recent calculation of

 7  losses.

 8         2.  In determining reimbursements pursuant to this

 9  subsection, the contract shall provide that the board shall:

10         a.  First reimburse insurers writing covered policies,

11  which insurers are in full compliance with this section and

12  have petitioned the Department of Financial Services Insurance

13  and qualified as limited apportionment companies under s.

14  627.351(2)(b)3.  The amount of such reimbursement shall be the

15  lesser of $10 million or an amount equal to 10 times the

16  insurer's reimbursement premium for the current year.  The

17  amount of reimbursement paid under this sub-subparagraph may

18  not exceed the full amount of reimbursement promised in the

19  reimbursement contract. This sub-subparagraph does not apply

20  with respect to any contract year in which the year-end

21  projected cash balance of the fund, exclusive of any bonding

22  capacity of the fund, exceeds $2 billion. Only one member of

23  any insurer group may receive reimbursement under this

24  sub-subparagraph.

25         b.  Next pay to each insurer such insurer's projected

26  payout, which is the amount of reimbursement it is owed, up to

27  an amount equal to the insurer's share of the actual premium

28  paid for that contract year, multiplied by the actual

29  claims-paying capacity available for that contract year;

30  provided, entities created pursuant to s. 627.351 shall be

31  further reimbursed in accordance with sub-subparagraph c.

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 1         c.  Thereafter, establish, based on reimbursable

 2  losses, the prorated reimbursement level at the highest level

 3  for which any remaining fund balance or bond proceeds are

 4  sufficient to reimburse entities created pursuant to s.

 5  627.351 for losses exceeding the amounts payable pursuant to

 6  sub-subparagraph b. for the current contract year.

 7         (6)  REVENUE BONDS.--

 8         (a)  General provisions.--

 9         1.  Upon the occurrence of a hurricane and a

10  determination that the moneys in the fund are or will be

11  insufficient to pay reimbursement at the levels promised in

12  the reimbursement contracts, the board may take the necessary

13  steps under paragraph (b) or paragraph (c) for the issuance of

14  revenue bonds for the benefit of the fund.  The proceeds of

15  such revenue bonds may be used to make reimbursement payments

16  under reimbursement contracts; to refinance or replace

17  previously existing borrowings or financial arrangements; to

18  pay interest on bonds; to fund reserves for the bonds; to pay

19  expenses incident to the issuance or sale of any bond issued

20  under this section, including costs of validating, printing,

21  and delivering the bonds, costs of printing the official

22  statement, costs of publishing notices of sale of the bonds,

23  and related administrative expenses; or for such other

24  purposes related to the financial obligations of the fund as

25  the board may determine. The term of the bonds may not exceed

26  30 years. The board may pledge or authorize the corporation to

27  pledge all or a portion of all revenues under subsection (5)

28  and under subparagraph 3. to secure such revenue bonds and the

29  board may execute such agreements between the board and the

30  issuer of any revenue bonds and providers of other financing

31  arrangements under paragraph (7)(b) as the board deems

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 1  necessary to evidence, secure, preserve, and protect such

 2  pledge. If reimbursement premiums received under subsection

 3  (5) or earnings on such premiums are used to pay debt service

 4  on revenue bonds, such premiums and earnings shall be used

 5  only after the use of the moneys derived from assessments

 6  under subparagraph 3.  The funds, credit, property, or taxing

 7  power of the state or political subdivisions of the state

 8  shall not be pledged for the payment of such bonds. The board

 9  may also enter into agreements under paragraph (b) or

10  paragraph (c) for the purpose of issuing revenue bonds in the

11  absence of a hurricane upon a determination that such action

12  would maximize the ability of the fund to meet future

13  obligations.

14         2.  The Legislature finds and declares that the

15  issuance of bonds under this subsection is for the public

16  purpose of paying the proceeds of the bonds to insurers,

17  thereby enabling insurers to pay the claims of policyholders

18  to assure that policyholders are able to pay the cost of

19  construction, reconstruction, repair, restoration, and other

20  costs associated with damage to property of policyholders of

21  covered policies after the occurrence of a hurricane. Revenue

22  bonds may not be issued under this subsection until validated

23  under chapter 75. The validation of at least the first

24  obligations incurred pursuant to this subsection shall be

25  appealed to the Supreme Court, to be handled on an expedited

26  basis.

27         3.  If the board determines that the amount of revenue

28  produced under subsection (5) is insufficient to fund the

29  obligations, costs, and expenses of the fund and the

30  corporation, including repayment of revenue bonds, the board

31  shall direct the Department of Financial Services Insurance to

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 1  levy an emergency assessment on each insurer writing property

 2  and casualty business in this state. Pursuant to the emergency

 3  assessment, each such insurer shall pay to the corporation by

 4  July 1 of each year an amount set by the board not exceeding 2

 5  percent of its gross direct written premium for the prior year

 6  from all property and casualty business in this state except

 7  for workers' compensation, except that, if the Governor has

 8  declared a state of emergency under s. 252.36 due to the

 9  occurrence of a covered event, the amount of the assessment

10  for the contract year may be increased to an amount not

11  exceeding 4 percent of such premium. Any assessment authority

12  not used for the contract year may be used for a subsequent

13  contract year. If, for a subsequent contract year, the board

14  determines that the amount of revenue produced under

15  subsection (5) is insufficient to fund the obligations, costs,

16  and expenses of the fund and the corporation, including

17  repayment of revenue bonds for that contract year, the board

18  shall direct the Department of Financial Services Insurance to

19  levy an emergency assessment up to an amount not exceeding the

20  amount of unused assessment authority from a previous contract

21  year or years, plus an additional 2 percent if the Governor

22  has declared a state of emergency under s. 252.36 due to the

23  occurrence of a covered event. Any assessment authority not

24  used for the contract year may be used for a subsequent

25  contract year. As used in this subsection, the term "property

26  and casualty business" includes all lines of business

27  identified on Form 2, Exhibit of Premiums and Losses, in the

28  annual statement required by s. 624.424 and any rules adopted

29  under such section, except for those lines identified as

30  accident and health insurance. The annual assessments under

31  this subparagraph shall continue as long as the revenue bonds

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 1  issued with respect to which the assessment was imposed are

 2  outstanding, unless adequate provision has been made for the

 3  payment of such bonds pursuant to the documents authorizing

 4  issuance of the bonds.  An insurer shall not at any time be

 5  subject to aggregate annual assessments under this

 6  subparagraph of more than 2 percent of premium, except that in

 7  the case of a declared emergency, an insurer shall not at any

 8  time be subject to aggregate annual assessments under this

 9  subparagraph of more than 6 percent of premium; provided, no

10  more than 4 percent may be assessed for any one contract year.

11  Any rate filing or portion of a rate filing reflecting a rate

12  change attributable entirely to the assessment levied under

13  this subparagraph shall be deemed approved when made, subject

14  to the authority of the Department of Financial Services

15  Insurance to require actuarial justification as to the

16  adequacy of any rate at any time.  If the rate filing reflects

17  only a rate change attributable to the assessment under this

18  paragraph, the filing may consist of a certification so

19  stating. The assessments otherwise payable to the corporation

20  pursuant to this subparagraph shall be paid instead to the

21  fund unless and until the Department of Financial Services

22  Insurance has received from the corporation and the fund a

23  notice, which shall be conclusive and upon which the

24  Department of Financial Services Insurance may rely without

25  further inquiry, that the corporation has issued bonds and the

26  fund has no agreements in effect with local governments

27  pursuant to paragraph (b).  On or after the date of such

28  notice and until such date as the corporation has no bonds

29  outstanding, the fund shall have no right, title, or interest

30  in or to the assessments, except as provided in the fund's

31  agreements with the corporation.

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 1         (b)  Revenue bond issuance through counties or

 2  municipalities.--

 3         1.  If the board elects to enter into agreements with

 4  local governments for the issuance of revenue bonds for the

 5  benefit of the fund, the board shall enter into such contracts

 6  with one or more local governments, including agreements

 7  providing for the pledge of revenues, as are necessary to

 8  effect such issuance. The governing body of a county or

 9  municipality is authorized to issue bonds as defined in s.

10  125.013 or s. 166.101 from time to time to fund an assistance

11  program, in conjunction with the Florida Hurricane Catastrophe

12  Fund, for the purposes set forth in this section or for the

13  purpose of paying the costs of construction, reconstruction,

14  repair, restoration, and other costs associated with damage to

15  properties of policyholders of covered policies due to the

16  occurrence of a hurricane by assuring that policyholders

17  located in this state are able to recover claims under

18  property insurance policies after a covered event.

19         2.  In order to avoid needless and indiscriminate

20  proliferation, duplication, and fragmentation of such

21  assistance programs, any local government may provide for the

22  payment of fund reimbursements, regardless of whether or not

23  the losses for which reimbursement is made occurred within or

24  outside of the territorial jurisdiction of the local

25  government.

26         3.  The state hereby covenants with holders of bonds

27  issued under this paragraph that the state will not repeal or

28  abrogate the power of the board to direct the Department of

29  Financial Services Insurance to levy the assessments and to

30  collect the proceeds of the revenues pledged to the payment of

31  such bonds as long as any such bonds remain outstanding unless

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 1  adequate provision has been made for the payment of such bonds

 2  pursuant to the documents authorizing the issuance of such

 3  bonds.

 4         4.  There shall be no liability on the part of, and no

 5  cause of action shall arise against any members or employees

 6  of the governing body of a local government for any actions

 7  taken by them in the performance of their duties under this

 8  paragraph.

 9         (c)  Florida Hurricane Catastrophe Fund Finance

10  Corporation.--

11         1.  In addition to the findings and declarations in

12  subsection (1), the Legislature also finds and declares that:

13         a.  The public benefits corporation created under this

14  paragraph will provide a mechanism necessary for the

15  cost-effective and efficient issuance of bonds. This mechanism

16  will eliminate unnecessary costs in the bond issuance process,

17  thereby increasing the amounts available to pay reimbursement

18  for losses to property sustained as a result of hurricane

19  damage.

20         b.  The purpose of such bonds is to fund reimbursements

21  through the Florida Hurricane Catastrophe Fund to pay for the

22  costs of construction, reconstruction, repair, restoration,

23  and other costs associated with damage to properties of

24  policyholders of covered policies due to the occurrence of a

25  hurricane.

26         c.  The efficacy of the financing mechanism will be

27  enhanced by the corporation's ownership of the assessments, by

28  the insulation of the assessments from possible bankruptcy

29  proceedings, and by covenants of the state with the

30  corporation's bondholders.

31  

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 1         2.a.  There is created a public benefits corporation,

 2  which is an instrumentality of the state, to be known as the

 3  Florida Hurricane Catastrophe Fund Finance Corporation.

 4         b.  The corporation shall operate under a five-member

 5  board of directors consisting of the Governor or a designee,

 6  the Chief Financial Officer Comptroller or a designee, the

 7  Attorney General Treasurer or a designee, the director of the

 8  Division of Bond Finance of the State Board of Administration,

 9  and the chief operating officer of the Florida Hurricane

10  Catastrophe Fund.

11         c.  The corporation has all of the powers of

12  corporations under chapter 607 and under chapter 617, subject

13  only to the provisions of this subsection.

14         d.  The corporation may issue bonds and engage in such

15  other financial transactions as are necessary to provide

16  sufficient funds to achieve the purposes of this section.

17         e.  The corporation may invest in any of the

18  investments authorized under s. 215.47.

19         f.  There shall be no liability on the part of, and no

20  cause of action shall arise against, any board members or

21  employees of the corporation for any actions taken by them in

22  the performance of their duties under this paragraph.

23         3.a.  In actions under chapter 75 to validate any bonds

24  issued by the corporation, the notice required by s. 75.06

25  shall be published only in Leon County and in two newspapers

26  of general circulation in the state, and the complaint and

27  order of the court shall be served only on the State Attorney

28  of the Second Judicial Circuit.

29         b.  The state hereby covenants with holders of bonds of

30  the corporation that the state will not repeal or abrogate the

31  power of the board to direct the Department of Financial

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 1  Services Insurance to levy the assessments and to collect the

 2  proceeds of the revenues pledged to the payment of such bonds

 3  as long as any such bonds remain outstanding unless adequate

 4  provision has been made for the payment of such bonds pursuant

 5  to the documents authorizing the issuance of such bonds.

 6         4.  The bonds of the corporation are not a debt of the

 7  state or of any political subdivision, and neither the state

 8  nor any political subdivision is liable on such bonds. The

 9  corporation does not have the power to pledge the credit, the

10  revenues, or the taxing power of the state or of any political

11  subdivision. The credit, revenues, or taxing power of the

12  state or of any political subdivision shall not be deemed to

13  be pledged to the payment of any bonds of the corporation.

14         5.a.  The property, revenues, and other assets of the

15  corporation; the transactions and operations of the

16  corporation and the income from such transactions and

17  operations; and all bonds issued under this paragraph and

18  interest on such bonds are exempt from taxation by the state

19  and any political subdivision, including the intangibles tax

20  under chapter 199 and the income tax under chapter 220. This

21  exemption does not apply to any tax imposed by chapter 220 on

22  interest, income, or profits on debt obligations owned by

23  corporations other than the Florida Hurricane Catastrophe Fund

24  Finance Corporation.

25         b.  All bonds of the corporation shall be and

26  constitute legal investments without limitation for all public

27  bodies of this state; for all banks, trust companies, savings

28  banks, savings associations, savings and loan associations,

29  and investment companies; for all administrators, executors,

30  trustees, and other fiduciaries; for all insurance companies

31  and associations and other persons carrying on an insurance

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 1  business; and for all other persons who are now or may

 2  hereafter be authorized to invest in bonds or other

 3  obligations of the state and shall be and constitute eligible

 4  securities to be deposited as collateral for the security of

 5  any state, county, municipal, or other public funds. This

 6  sub-subparagraph shall be considered as additional and

 7  supplemental authority and shall not be limited without

 8  specific reference to this sub-subparagraph.

 9         6.  The corporation and its corporate existence shall

10  continue until terminated by law; however, no such law shall

11  take effect as long as the corporation has bonds outstanding

12  unless adequate provision has been made for the payment of

13  such bonds pursuant to the documents authorizing the issuance

14  of such bonds. Upon termination of the existence of the

15  corporation, all of its rights and properties in excess of its

16  obligations shall pass to and be vested in the state.

17         Section 226.  Subsection (5) of section 215.559,

18  Florida Statutes, is amended to read:

19         215.559  Hurricane Loss Mitigation Program.--

20         (5)  Except for the program set forth in subsection

21  (3), the Department of Community Affairs shall develop the

22  programs set forth in this section in consultation with an

23  advisory council consisting of a representative designated by

24  the Department of Financial Services Insurance, a

25  representative designated by the Florida Home Builders

26  Association, a representative designated by the Florida

27  Insurance Council, a representative designated by the

28  Federation of Manufactured Home Owners, a representative

29  designated by the Florida Association of Counties, and a

30  representative designated by the Florida Manufactured Housing

31  Association.

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 1         Section 227.  Paragraph (c) of subsection (1) and

 2  paragraph (a) of subsection (3) of section 215.56005, Florida

 3  Statutes, are amended to read:

 4         215.56005  Tobacco Settlement Financing Corporation.--

 5         (1)  DEFINITIONS.--As used in this section:

 6         (c)  "Department" means the Department of Financial

 7  Services Banking and Finance or its successor.

 8         (3)  POWERS OF THE DEPARTMENT.--

 9         (a)  The department is authorized, on behalf of the

10  state, to do all things necessary or desirable to assist the

11  corporation in the execution of the corporation's

12  responsibilities, including, but not limited to, processing

13  budget amendments against the Department of Financial Services

14  Banking and Finance Tobacco Settlement Clearing Trust Fund,

15  subject to the requirements of s. 216.177, for the costs and

16  expenses of administration of the corporation in an amount not

17  to exceed $500,000; entering into one or more purchase

18  agreements to sell to the corporation any or all of the

19  state's right, title, and interest in and to the tobacco

20  settlement agreement; executing any administrative agreements

21  with the corporation to fund the administration, operation,

22  and expenses of the corporation from moneys appropriated for

23  such purpose; and executing and delivering any and all other

24  documents and agreements necessary or desirable in connection

25  with the sale of any or all of the state's right, title, and

26  interest in and to the tobacco settlement agreement to the

27  corporation or the issuance of the bonds by the corporation.

28  The department's authority to sell any or all of the state's

29  right, title, and interest in and to the tobacco settlement

30  agreement is subject to approval by the Legislature in a

31  regular, extended, or special session.

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 1         Section 228.  Subsection (3) and paragraph (a) of

 2  subsection (5) of section 215.5601, Florida Statutes, are

 3  amended to read:

 4         215.5601  Lawton Chiles Endowment Fund.--

 5         (3)  LAWTON CHILES ENDOWMENT FUND; CREATION;

 6  PRINCIPAL.--

 7         (a)  There is created the Lawton Chiles Endowment Fund,

 8  to be administered by the State Board of Administration. The

 9  endowment shall serve as a clearing trust fund, not subject to

10  termination under s. 19(f), Art. III of the State

11  Constitution. The endowment fund shall be exempt from the

12  service charges imposed by s. 215.20.

13         (b)  The endowment shall receive moneys from the sale

14  of the state's right, title, and interest in and to the

15  tobacco settlement agreement as defined in s. 215.56005,

16  including the right to receive payments under such agreement,

17  and from accounts transferred from the Department of Financial

18  Services Banking and Finance Tobacco Settlement Clearing Trust

19  Fund established under s. 17.41. Amounts to be transferred

20  from the Department of Financial Services Banking and Finance

21  Tobacco Settlement Clearing Trust Fund to the endowment shall

22  be in the following amounts for the following fiscal years:

23         1.  For fiscal year 1999-2000, $1.1 billion;

24         2.  For fiscal year 2000-2001, $200 million;

25         3.  For fiscal year 2001-2002, $200 million;

26         4.  For fiscal year 2002-2003, $200 million; and

27         (c)  Amounts to be transferred under subparagraphs

28  (b)2., 3., and 4. may be reduced by an amount equal to the

29  lesser of $200 million or the amount the endowment receives in

30  that fiscal year from the sale of the state's right, title,

31  and interest in and to the tobacco settlement agreement.

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 1         (d)  For fiscal year 2001-2002, $150 million of the

 2  existing principal in the endowment shall be reserved and

 3  accounted for within the endowment, the income from which

 4  shall be used solely for the funding for biomedical research

 5  activities as provided in s. 215.5602. The income from the

 6  remaining principal shall be used solely as the source of

 7  funding for health and human services programs for children

 8  and elders as provided in subsection (5). The separate account

 9  for biomedical research shall be dissolved and the entire

10  principal in the endowment shall be used exclusively for

11  health and human services programs when cures have been found

12  for tobacco-related cancer, heart, and lung disease.

13         (5)  AVAILABILITY OF FUNDS; USES.--

14         (a)  Funds from the endowment which are available for

15  legislative appropriation shall be transferred by the board to

16  the Department of Financial Services Banking and Finance

17  Tobacco Settlement Clearing Trust Fund, created in s. 17.41,

18  and disbursed in accordance with the legislative

19  appropriation.

20         1.  Appropriations by the Legislature to the Department

21  of Health from endowment earnings from the principal set aside

22  for biomedical research shall be from a category called the

23  Florida Biomedical Research Program and shall be deposited

24  into the Biomedical Research Trust Fund in the Department of

25  Health established in s. 20.435.

26         2.  Appropriations by the Legislature to the Department

27  of Children and Family Services, the Department of Health, or

28  the Department of Elderly Affairs for health and human

29  services programs shall be from a category called the Lawton

30  Chiles Endowment Fund Programs and shall be deposited into

31  

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 1  each department's respective Tobacco Settlement Trust Fund as

 2  appropriated.

 3         Section 229.  Section 215.58, Florida Statutes, is

 4  amended to read:

 5         215.58  Definitions relating to State Bond Act.--The

 6  following words or terms when used in this act shall have the

 7  following meanings:

 8         (1)  "Governor" means shall mean the Governor of the

 9  state or any Acting Governor or other person then exercising

10  the duties of the office of Governor.

11         (2)  "Treasurer" shall mean the Insurance Commissioner

12  and Treasurer.

13         (3)  "Comptroller" shall mean the State Comptroller.

14         (2)(4)  "State" means shall mean the State of Florida.

15         (3)(5)  "Division" means shall mean the Division of

16  Bond Finance.

17         (4)(6)  "Board" means shall mean the governing board of

18  the said division, which shall be composed of the Governor and

19  Cabinet.

20         (5)(7)  "Director" means shall mean the chief

21  administrator of the division, who shall act on behalf of the

22  division when authorized by the board, as provided by this

23  act.

24         (6)(8)  "State agency" means shall mean any board,

25  commission, authority, or other state agency heretofore or

26  hereafter created by the constitution or statutes of the

27  state.

28         (7)(9)  "Bonds" means shall mean state bonds, or any

29  revenue bonds, certificates or other obligations heretofore or

30  hereafter authorized to be issued by said division or by any

31  state agency.

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 1         (8)(10)  "State bonds" means shall mean bonds pledging

 2  the full faith and credit of the State of Florida.

 3         (9)(11)  "Legislature" means shall mean the State

 4  Legislature.

 5         (11)(12)  "Constitution" means shall mean the existing

 6  constitution of the state, or any constitution hereafter

 7  adopted by the people of the state, together with all

 8  amendments thereof.

 9         (11)(13)  "Original issue discount" means the amount by

10  which the par value of a bond exceeds its public offering

11  price at the time it is originally offered to an investor.

12         (12)(14)  "Governmental agency" means shall mean:

13         (a)  The state or any department, commission, agency,

14  or other instrumentality thereof.

15         (b)  Any county or municipality or any department,

16  commission, agency, or other instrumentality thereof.

17         (c)  Any school board or special district, authority,

18  or governmental entity.

19         Section 230.  Subsection (1) of section 215.62, Florida

20  Statutes, is amended to read:

21         215.62  Division of Bond Finance.--

22         (1)  There is hereby created a division of the State

23  Board of Administration of the state to be known as the

24  Division of Bond Finance.  The Governor shall be the chair of

25  the governing board of the division, the Attorney General

26  Comptroller shall be the secretary of the board, and the Chief

27  Financial Officer Treasurer shall be the treasurer of the

28  board for the purposes of this act.  The division shall be a

29  public body corporate for the purposes of this act.

30         Section 231.  Subsections (2), (3), (4), (5), and (8)

31  of section 215.684, Florida Statutes, are amended to read:

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 1         215.684  Limitation on engaging services of securities

 2  broker or bond underwriter convicted of fraud.--

 3         (2)  Upon notification under chapter 517 that a person

 4  or firm has been convicted or has pleaded as provided in

 5  subsection (1), the Chief Financial Officer Comptroller shall

 6  issue a notice of intent to take action to disqualify such

 7  person or firm, which notice must state that:

 8         (a)  Such person or firm is considered a disqualified

 9  securities broker or bond underwriter;

10         (b)  A state agency may not enter into a contract with

11  such person or firm as a securities broker or bond underwriter

12  for any new business for a period of 2 years;

13         (c)  The substantial rights of such person or firm as a

14  securities broker or bond underwriter are being affected and

15  the person or firm has the rights accorded pursuant to ss.

16  120.569 and 120.57; and

17         (d)  Such person or firm may petition to mitigate the

18  duration of his or her disqualification, based on the criteria

19  established in subsection (3) and may request that such

20  mitigation be considered as part of any hearing under ss.

21  120.569 and 120.57.

22         (3)  The Chief Financial Officer Comptroller shall

23  decide, based on the following criteria, whether or not to

24  mitigate the duration of the disqualification:

25         (a)  The nature and details of the crime;

26         (b)  The degree of culpability of the person or firm

27  proposed to be requalified;

28         (c)  Prompt or voluntary payment of any damages or

29  penalty as a result of the conviction and disassociation from

30  any other person or firm involved in the crimes of fraud;

31  

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 1         (d)  Cooperation with state or federal investigation or

 2  prosecution of the crime of fraud;

 3         (e)  Prior or future self-policing by the person or

 4  firm to prevent crimes of fraud; and

 5         (f)  Reinstatement or clemency in any jurisdiction in

 6  relation to the crime at issue in the proceeding.

 7         (4)  If the Chief Financial Officer Comptroller in his

 8  or her sole discretion decides to mitigate the duration of the

 9  disqualification based on the foregoing, the duration of

10  disqualification shall be for any period the Chief Financial

11  Officer Comptroller specifies up to 2 years from the date of

12  the person's or firm's conviction or plea. If the Chief

13  Financial Officer Comptroller refuses to mitigate the duration

14  of the disqualification, such person or firm may again file

15  for mitigation no sooner than 9 months after denial by the

16  Chief Financial Officer Comptroller.

17         (5)  Notwithstanding subsection (4), a firm or person

18  at any time may petition the Chief Financial Officer

19  Comptroller for termination of the disqualification based upon

20  a reversal of the conviction of the firm or person by an

21  appellate court or a pardon.

22         (8)  Except when otherwise provided by law for crimes

23  of fraud with respect to the transaction of business with any

24  public entity or with an agency or political subdivision of

25  any other state or with the United States, this act

26  constitutes the sole authorization for determining when a

27  person or firm convicted or having pleaded guilty or nolo

28  contendere to the crime of fraud may not be engaged to provide

29  services as a securities broker or bond underwriter with the

30  state.  Nothing in this act shall be construed to affect the

31  authority granted the Chief Financial Officer Comptroller

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 1  under chapter 517 to revoke or suspend the license of such

 2  securities dealer or bond underwriter.

 3         Section 232.  Subsection (4) of section 215.70, Florida

 4  Statutes, is amended to read:

 5         215.70  State Board of Administration to act in case of

 6  defaults.--

 7         (4)  Whenever it becomes necessary for state funds to

 8  be appropriated for the payment of principal or interest on

 9  bonds which have been issued by the Division of Bond Finance

10  on behalf of any local government or authority and for which

11  the full faith and credit of the state has been pledged, any

12  state shared revenues otherwise earmarked for the local

13  government or authority shall be used by the Chief Financial

14  Officer Comptroller to reimburse the state, until the local

15  government or authority has reimbursed the state in full.

16         Section 233.  Subsection (4) of section 215.91, Florida

17  Statutes, is amended to read:

18         215.91  Florida Financial Management Information

19  System; board; council.--

20         (4)  The council shall provide ongoing counsel to the

21  board and act to resolve problems among or between the

22  functional owner subsystems.  The board, through the

23  coordinating council, shall direct and manage the development,

24  implementation, and operation of the information subsystems

25  that together are the Florida Financial Management Information

26  System.  The coordinating council shall approve the

27  information subsystems' designs prior to the development,

28  implementation, and operation of the subsystems and shall

29  approve subsequent proposed design modifications to the

30  information subsystems subject to the guidelines issued by the

31  council.  The coordinating council shall ensure that the

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 1  information subsystems' operations support the exchange of

 2  unified and coordinated data between information subsystems.

 3  The coordinating council shall establish the common data codes

 4  for financial management, and it shall require and ensure the

 5  use of common data codes by the information subsystems that

 6  together constitute the Florida Financial Management

 7  Information System. The Chief Financial Officer Comptroller

 8  shall adopt a chart of accounts consistent with the common

 9  financial management data codes established by the

10  coordinating council.  The board, through the coordinating

11  council, shall establish the financial management policies and

12  procedures for the executive branch of state government.  The

13  coordinating council shall notify in writing the chairs of the

14  legislative fiscal committees and the Chief Justice of the

15  Supreme Court regarding the adoption of, or modification to, a

16  proposed financial management policy or procedure.  The notice

17  shall solicit comments from the chairs of the legislative

18  fiscal committees and the Chief Justice of the Supreme Court

19  at least 14 consecutive days before the final action by the

20  coordinating council.

21         Section 234.  Subsection (5) of section 215.92, Florida

22  Statutes, is amended to read:

23         215.92  Definitions relating to Florida Financial

24  Management Information System Act.--For the purposes of ss.

25  215.90-215.96:

26         (5)  "Design and coordination staff" means the

27  personnel responsible for providing administrative and

28  clerical support to the board, coordinating council, and

29  secretary to the board.  The design and coordination staff

30  shall function as the agency clerk for the board and the

31  coordinating council.  For administrative purposes, the design

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 1  and coordination staff are assigned to the Department of

 2  Financial Services Banking and Finance but they are

 3  functionally assigned to the board.

 4         Section 235.  Subsection (3) of section 215.93, Florida

 5  Statutes, is amended to read:

 6         215.93  Florida Financial Management Information

 7  System.--

 8         (3)  The Florida Financial Management Information

 9  System shall include financial management data and utilize the

10  chart of accounts approved by the Chief Financial Officer

11  Comptroller.  Common financial management data shall include,

12  but not be limited to, data codes, titles, and definitions

13  used by one or more of the functional owner subsystems.  The

14  Florida Financial Management Information System shall utilize

15  common financial management data codes.  The council shall

16  recommend and the board shall adopt policies regarding the

17  approval and publication of the financial management data.

18  The Chief Financial Officer Comptroller shall adopt policies

19  regarding the approval and publication of the chart of

20  accounts.  The Chief Financial Officer's Comptroller's chart

21  of accounts shall be consistent with the common financial

22  management data codes established by the coordinating council.

23  Further, all systems not a part of the Florida Financial

24  Management Information System which provide information to the

25  system shall use the common data codes from the Florida

26  Financial Management Information System and the Chief

27  Financial Officer's Comptroller's chart of accounts. Data

28  codes that cannot be supplied by the Florida Financial

29  Management Information System and the Chief Financial

30  Officer's Comptroller's chart of accounts and that are

31  required for use by the information subsystems shall be

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 1  approved by the board upon recommendation of the coordinating

 2  council. However, board approval shall not be required for

 3  those data codes specified by the Auditor General under the

 4  provisions of s. 215.94(6)(c).

 5         Section 236.  Subsections (2) and (3) and paragraph (a)

 6  of subsection (5) of section 215.94, Florida Statutes, are

 7  amended to read:

 8         215.94  Designation, duties, and responsibilities of

 9  functional owners.--

10         (2)  The Department of Financial Services Banking and

11  Finance shall be the functional owner of the Florida

12  Accounting Information Resource Subsystem established pursuant

13  to ss. 17.03, 215.86, 216.141, and 216.151 and further

14  developed in accordance with the provisions of ss.

15  215.90-215.96.  The subsystem shall include, but shall not be

16  limited to, the following functions:

17         (a)  Accounting and reporting so as to provide timely

18  data for producing financial statements for the state in

19  accordance with generally accepted accounting principles.

20         (b)  Auditing and settling claims against the state.

21         (3)  The Chief Financial Officer Treasurer shall be the

22  functional owner of the Cash Management Subsystem.  The Chief

23  Financial Officer Treasurer shall design, implement, and

24  operate the subsystem in accordance with the provisions of ss.

25  215.90-215.96.  The subsystem shall include, but shall not be

26  limited to, functions for:

27         (a)  Recording and reconciling credits and debits to

28  treasury fund accounts.

29         (b)  Monitoring cash levels and activities in state

30  bank accounts.

31         (c)  Monitoring short-term investments of idle cash.

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 1         (d)  Administering the provisions of the Federal Cash

 2  Management Improvement Act of 1990.

 3         (5)  The Department of Management Services shall be the

 4  functional owner of the Cooperative Personnel Employment

 5  Subsystem.  The department shall design, implement, and

 6  operate the subsystem in accordance with the provisions of ss.

 7  110.116 and 215.90-215.96.  The subsystem shall include, but

 8  shall not be limited to, functions for:

 9         (a)  Maintenance of employee and position data,

10  including funding sources and percentages and salary lapse.

11  The employee data shall include, but not be limited to,

12  information to meet the payroll system requirements of the

13  Department of Financial Services Banking and Finance and to

14  meet the employee benefit system requirements of the

15  Department of Management Services.

16         Section 237.  Subsection (1) of section 215.95, Florida

17  Statutes, is amended to read:

18         215.95  Financial Management Information Board.--

19         (1)  There is created, as part of the Administration

20  Commission, the Financial Management Information Board.  The

21  board shall be composed of the Governor, the Chief Financial

22  Officer Comptroller, and the Attorney General Treasurer.  The

23  Governor shall be chair of the board.  The Governor or the

24  Chief Financial Officer Comptroller may call a meeting of the

25  board at any time the need arises.

26         Section 238.  Subsections (1) and (2) of section

27  215.96, Florida Statutes, are amended to read:

28         215.96  Coordinating council and design and

29  coordination staff.--

30         (1)  The Chief Financial Officer Comptroller, as chief

31  fiscal officer of the state, shall establish a coordinating

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 1  council to function on a continuing basis.  The coordinating

 2  council shall review and recommend to the board solutions and

 3  policy alternatives to ensure coordination between functional

 4  owners of the various information subsystems described in ss.

 5  215.90-215.96 to the extent necessary to unify all the

 6  subsystems into a financial management information system.

 7         (2)  The coordinating council shall consist of the

 8  Chief Financial Officer Comptroller; the Treasurer; the

 9  secretary of the Department of Management Services; and the

10  Director of Planning and Budgeting, Executive Office of the

11  Governor, or their designees. The Chief Financial Officer

12  Comptroller, or his or her designee, shall be chair of the

13  coordinating council, and the design and coordination staff

14  shall provide administrative and clerical support to the

15  council and the board. The design and coordination staff shall

16  maintain the minutes of each meeting and shall make such

17  minutes available to any interested person. The Auditor

18  General, the State Courts Administrator, an executive officer

19  of the Florida Association of State Agency Administrative

20  Services Directors, and an executive officer of the Florida

21  Association of State Budget Officers, or their designees,

22  shall serve without voting rights as ex officio members on the

23  coordinating council. The chair may call meetings of the

24  coordinating council as often as necessary to transact

25  business; however, the coordinating council shall meet at

26  least once a year.  Action of the coordinating council shall

27  be by motion, duly made, seconded and passed by a majority of

28  the coordinating council voting in the affirmative for

29  approval of items that are to be recommended for approval to

30  the Financial Management Information Board.

31  

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 1         Section 239.  Section 215.965, Florida Statutes, is

 2  amended to read:

 3         215.965  Disbursement of state moneys.--Except as

 4  provided in s. 17.076, s. 253.025(14), s. 259.041(18), s.

 5  717.124(5), s. 732.107(5), or s. 733.816(5), all moneys in the

 6  State Treasury shall be disbursed by state warrant, drawn by

 7  the Chief Financial Officer Comptroller upon the State

 8  Treasury and payable to the ultimate beneficiary. This

 9  authorization shall include electronic disbursement.

10         Section 240.  Paragraphs (a), (c), (j), (n), (p), and

11  (s) of subsection (2), subsections (3) and (4), paragraphs (a)

12  and (b) of subsection (5), paragraphs (a) and (d) of

13  subsection (6), paragraphs (a) and (c) of subsection (7),

14  paragraphs (e) and (g) of subsection (8), paragraph (e) of

15  subsection (9), and paragraphs (d) and (f) of subsection (10)

16  of section 215.97, Florida Statutes, are amended to read:

17         215.97  Florida Single Audit Act.--

18         (2)  Definitions; as used in this section, the term:

19         (a)  "Audit threshold" means the amount to use in

20  determining when a state single audit of a nonstate entity

21  shall be conducted in accordance with this section. Each

22  nonstate entity that expends a total amount of state financial

23  assistance equal to or in excess of $300,000 in any fiscal

24  year of such nonstate entity shall be required to have a state

25  single audit for such fiscal year in accordance with the

26  requirements of this section. Every 2 years the Auditor

27  General, after consulting with the Executive Office of the

28  Governor, the Chief Financial Officer Comptroller, and all

29  state agencies that provide state financial assistance to

30  nonstate entities, shall review the amount for requiring

31  

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 1  audits under this section and may adjust such dollar amount

 2  consistent with the purpose of this section.

 3         (c)  "Catalog of State Financial Assistance" means a

 4  comprehensive listing of state projects. The Catalog of State

 5  Financial Assistance shall be issued by the Executive Office

 6  of the Governor after conferring with the Chief Financial

 7  Officer Comptroller and all state agencies that provide state

 8  financial assistance to nonstate entities. The Catalog of

 9  State Financial Assistance shall include for each listed state

10  project: the responsible state agency; standard state project

11  number identifier; official title; legal authorization; and

12  description of the state project, including objectives,

13  restrictions, application and awarding procedures, and other

14  relevant information determined necessary.

15         (j)  "Major state project" means any state project

16  meeting the criteria as stated in the rules of the Executive

17  Office of the Governor. Such criteria shall be established

18  after consultation with the Chief Financial Officer

19  Comptroller and appropriate state agencies that provide state

20  financial assistance and shall consider the amount of state

21  project expenditures or expenses or inherent risks. Each major

22  state project shall be audited in accordance with the

23  requirements of this section.

24         (n)  "Schedule of State Financial Assistance" means a

25  document prepared in accordance with the rules of the Chief

26  Financial Officer Comptroller and included in each financial

27  reporting package required by this section.

28         (p)  "State financial assistance" means financial

29  assistance from state resources, not including federal

30  financial assistance and state matching, provided to nonstate

31  entities to carry out a state project. "State financial

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 1  assistance" includes all types of state assistance as stated

 2  in the rules of the Executive Office of the Governor

 3  established in consultation with the Chief Financial Officer

 4  Comptroller and appropriate state agencies that provide state

 5  financial assistance. It includes state financial assistance

 6  provided directly by state awarding agencies or indirectly by

 7  recipients of state awards or subrecipients. It does not

 8  include procurement contracts used to buy goods or services

 9  from vendors. Audits of such procurement contracts with

10  vendors are outside of the scope of this section. Also, audits

11  of contracts to operate state-government-owned and

12  contractor-operated facilities are excluded from the audit

13  requirements of this section.

14         (s)  "State Projects Compliance Supplement" means a

15  document issued by the Executive Office of the Governor, in

16  consultation with the Chief Financial Officer Comptroller and

17  all state agencies that provide state financial assistance.

18  The State Projects Compliance Supplement shall identify state

19  projects, the significant compliance requirements, eligibility

20  requirements, matching requirements, suggested audit

21  procedures, and other relevant information determined

22  necessary.

23         (3)  The Executive Office of the Governor shall:

24         (a)  Upon conferring with the Chief Financial Officer

25  Comptroller and all state awarding agencies, adopt rules

26  necessary to provide appropriate guidance to state awarding

27  agencies, recipients and subrecipients, and independent

28  auditors of state financial assistance relating to the

29  requirements of this section, including:

30         1.  The types or classes of financial assistance

31  considered to be state financial assistance which would be

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 1  subject to the requirements of this section. This would

 2  include guidance to assist in identifying when the state

 3  agency or recipient has contracted with a vendor rather than

 4  with a recipient or subrecipient.

 5         2.  The criteria for identifying a major state project.

 6         3.  The criteria for selecting state projects for

 7  audits based on inherent risk.

 8         (b)  Be responsible for coordinating the initial

 9  preparation and subsequent revisions of the Catalog of State

10  Financial Assistance after consultation with the Chief

11  Financial Officer Comptroller and all state awarding agencies.

12         (c)  Be responsible for coordinating the initial

13  preparation and subsequent revisions of the State Projects

14  Compliance Supplement, after consultation with the Chief

15  Financial Officer Comptroller and all state awarding agencies.

16         (4)  The Chief Financial Officer Comptroller shall:

17         (a)  Make enhancements to the state's accounting system

18  to provide for the:

19         1.  Recording of state financial assistance and federal

20  financial assistance appropriations and expenditures within

21  the state awarding agencies' operating funds.

22         2.  Recording of state project number identifiers, as

23  provided in the Catalog of State Financial Assistance, for

24  state financial assistance.

25         3.  Establishment and recording of an identification

26  code for each financial transaction, including state agencies'

27  disbursements of state financial assistance and federal

28  financial assistance, as to the corresponding type or

29  organization that is party to the transaction (e.g., other

30  governmental agencies, nonprofit organizations, and for-profit

31  organizations), and disbursements of federal financial

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 1  assistance, as to whether the party to the transaction is or

 2  is not a recipient or subrecipient.

 3         (b)  Upon conferring with the Executive Office of the

 4  Governor and all state awarding agencies, adopt rules

 5  necessary to provide appropriate guidance to state awarding

 6  agencies, recipients and subrecipients, and independent

 7  auditors of state financial assistance relating to the format

 8  for the Schedule of State Financial Assistance.

 9         (c)  Perform any inspections, reviews, investigations,

10  or audits of state financial assistance considered necessary

11  in carrying out the Chief Financial Officer's Comptroller's

12  legal responsibilities for state financial assistance or to

13  comply with the requirements of this section.

14         (5)  Each state awarding agency shall:

15         (a)  Provide to a recipient information needed by the

16  recipient to comply with the requirements of this section,

17  including:

18         1.  The audit and accountability requirements for state

19  projects as stated in this section and applicable rules of the

20  Executive Office of the Governor, rules of the Chief Financial

21  Officer Comptroller, and rules of the Auditor General.

22         2.  Information from the Catalog of State Financial

23  Assistance, including the standard state project number

24  identifier; official title; legal authorization; and

25  description of the state project including objectives,

26  restrictions, and other relevant information determined

27  necessary.

28         3.  Information from the State Projects Compliance

29  Supplement, including the significant compliance requirements,

30  eligibility requirements, matching requirements, suggested

31  

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 1  audit procedures, and other relevant information determined

 2  necessary.

 3         (b)  Require the recipient, as a condition of receiving

 4  state financial assistance, to allow the state awarding

 5  agency, the Chief Financial Officer Comptroller, and the

 6  Auditor General access to the recipient's records and the

 7  recipient's independent auditor's working papers as necessary

 8  for complying with the requirements of this section.

 9         (6)  As a condition of receiving state financial

10  assistance, each recipient that provides state financial

11  assistance to a subrecipient shall:

12         (a)  Provide to a subrecipient information needed by

13  the subrecipient to comply with the requirements of this

14  section, including:

15         1.  Identification of the state awarding agency.

16         2.  The audit and accountability requirements for state

17  projects as stated in this section and applicable rules of the

18  Executive Office of the Governor, rules of the Chief Financial

19  Officer Comptroller, and rules of the Auditor General.

20         3.  Information from the Catalog of State Financial

21  Assistance, including the standard state project number

22  identifier; official title; legal authorization; and

23  description of the state project, including objectives,

24  restrictions, and other relevant information.

25         4.  Information from the State Projects Compliance

26  Supplement including the significant compliance requirements,

27  eligibility requirements, matching requirements, and suggested

28  audit procedures, and other relevant information determined

29  necessary.

30         (d)  Require subrecipients, as a condition of receiving

31  state financial assistance, to permit the independent auditor

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 1  of the recipient, the state awarding agency, the Chief

 2  Financial Officer Comptroller, and the Auditor General access

 3  to the subrecipient's records and the subrecipient's

 4  independent auditor's working papers as necessary to comply

 5  with the requirements of this section.

 6         (7)  Each recipient or subrecipient of state financial

 7  assistance shall comply with the following:

 8         (a)  Each nonstate entity that receives state financial

 9  assistance and meets audit threshold requirements, in any

10  fiscal year of the nonstate entity, as stated in the rules of

11  the Auditor General, shall have a state single audit conducted

12  for such fiscal year in accordance with the requirements of

13  this act and with additional requirements established in rules

14  of the Executive Office of the Governor, rules of the Chief

15  Financial Officer Comptroller, and rules of the Auditor

16  General. If only one state project is involved in a nonstate

17  entity's fiscal year, the nonstate entity may elect to have

18  only a state project-specific audit of the state project for

19  that fiscal year.

20         (c)  Regardless of the amount of the state financial

21  assistance, the provisions of this section do not exempt a

22  nonstate entity from compliance with provisions of law

23  relating to maintaining records concerning state financial

24  assistance to such nonstate entity or allowing access and

25  examination of those records by the state awarding agency, the

26  Chief Financial Officer Comptroller, or the Auditor General.

27         (8)  The independent auditor when conducting a state

28  single audit of recipients or subrecipients shall:

29         (e)  Report on the results of any audit conducted

30  pursuant to this section in accordance with the rules of the

31  Executive Office of the Governor, rules of the Chief Financial

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 1  Officer Comptroller, and rules of the Auditor General. Audit

 2  reports shall include summaries of the auditor's results

 3  regarding the nonstate entity's financial statements; Schedule

 4  of State Financial Assistance; internal controls; and

 5  compliance with laws, rules, and guidelines.

 6         (g)  Upon notification by the nonstate entity, make

 7  available the working papers relating to the audit conducted

 8  pursuant to the requirements of this section to the state

 9  awarding agency, the Chief Financial Officer Comptroller, or

10  the Auditor General for review or copying.

11         (9)  The independent auditor, when conducting a state

12  project-specific audit of recipients or subrecipients, shall:

13         (e)  Upon notification by the nonstate entity, make

14  available the working papers relating to the audit conducted

15  pursuant to the requirements of this section to the state

16  awarding agency, the Chief Financial Officer Comptroller, or

17  the Auditor General for review or copying.

18         (10)  The Auditor General shall:

19         (d)  Provide technical advice upon request of the Chief

20  Financial Officer Comptroller, Executive Office of the

21  Governor, and state agencies relating to financial reporting

22  and audit responsibilities contained in this section.

23         (f)  Perform ongoing reviews of a sample of financial

24  reporting packages filed pursuant to the requirements of this

25  section to determine compliance with the reporting

26  requirements of this section and applicable rules of the

27  Executive Office of the Governor, rules of the Chief Financial

28  Officer Comptroller, and rules of the Auditor General.

29         Section 241.  Paragraph (a) of subsection (2) of

30  section 216.0442, Florida Statutes, is amended to read:

31  

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 1         216.0442  Truth in bonding; definitions; summary of

 2  state debt; statement of proposed financing; truth-in-bonding

 3  statement.--

 4         (2)  When required by statute to support the proposed

 5  debt financing of fixed capital outlay projects or operating

 6  capital outlay requests or to explain the issuance of a debt

 7  or obligation, one or more of the following documents shall be

 8  developed:

 9         (a)  A summary of outstanding state debt as furnished

10  by the Chief Financial Officer Comptroller pursuant to s.

11  216.102.

12         Section 242.  Section 216.102, Florida Statutes, is

13  amended to read:

14         216.102  Filing of financial information; handling by

15  Chief Financial Officer Comptroller; penalty for

16  noncompliance.--

17         (1)  By September 30 of each year, each agency

18  supported by any form of taxation, licenses, fees, imposts, or

19  exactions, the judicial branch, and, for financial reporting

20  purposes, each component unit of the state as determined by

21  the Chief Financial Officer Comptroller shall prepare, using

22  generally accepted accounting principles, and file with the

23  Chief Financial Officer Comptroller the financial and other

24  information necessary for the preparation of annual financial

25  statements for the State of Florida as of June 30. In

26  addition, each such agency and the judicial branch shall

27  prepare financial statements showing the financial position

28  and results of agency or branch operations as of June 30 for

29  internal management purposes.

30         (a)  Each state agency and the judicial branch shall

31  record the receipt and disbursement of funds from federal

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 1  sources in a form and format prescribed by the Chief Financial

 2  Officer Comptroller. The access to federal funds by the

 3  administering agencies or the judicial branch may not be

 4  authorized until:

 5         1.  The deposit has been recorded in the Florida

 6  Accounting Information Resource Subsystem using proper,

 7  consistent codes that designate deposits as federal funds.

 8         2.  The deposit and appropriate recording required by

 9  this paragraph have been verified by the Office of the Chief

10  Financial Officer Treasurer.

11         (b)  The Chief Financial Officer Comptroller shall

12  publish a statewide policy detailing the requirements for

13  recording receipt and disbursement of federal funds into the

14  Florida Accounting Information Resource Subsystem and provide

15  technical assistance to the agencies and the judicial branch

16  to implement the policy.

17         (2)  Financial information must be contained within the

18  Florida Accounting Information Resource Subsystem. Other

19  information must be submitted in the form and format

20  prescribed by the Chief Financial Officer Comptroller.

21         (a)  Each component unit shall file financial

22  information and other information necessary for the

23  preparation of annual financial statements with the agency or

24  branch designated by the Chief Financial Officer Comptroller

25  by the date specified by the Chief Financial Officer

26  Comptroller.

27         (b)  The state agency or branch designated by the Chief

28  Financial Officer Comptroller to receive financial information

29  and other information from component units shall include the

30  financial information in the Florida Accounting Information

31  Resource Subsystem and shall include the component units'

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 1  other information in its submission to the Chief Financial

 2  Officer Comptroller.

 3         (3)  The Chief Financial Officer Comptroller shall:

 4         (a)  Prepare and furnish to the Auditor General annual

 5  financial statements for the state on or before December 31 of

 6  each year, using generally accepted accounting principles.

 7         (b)  Prepare and publish a comprehensive annual

 8  financial report for the state in accordance with generally

 9  accepted accounting principles on or before February 28 of

10  each year.

11         (c)  Furnish the Governor, the President of the Senate,

12  and the Speaker of the House of Representatives with a copy of

13  the comprehensive annual financial report prepared pursuant to

14  paragraph (b).

15         (d)  Notify each agency and the judicial branch of the

16  data that is required to be recorded to enhance accountability

17  for tracking federal financial assistance.

18         (e)  Provide reports, as requested, to executive or

19  judicial branch entities, the President of the Senate, the

20  Speaker of the House of Representatives, and the members of

21  the Florida Congressional Delegation, detailing the federal

22  financial assistance received and disbursed by state agencies

23  and the judicial branch.

24         (f)  Consult with and elicit comments from the

25  Executive Office of the Governor on changes to the Florida

26  Accounting Information Resource Subsystem which clearly affect

27  the accounting of federal funds, so as to ensure consistency

28  of information entered into the Federal Aid Tracking System by

29  state executive and judicial branch entities. While efforts

30  shall be made to ensure the compatibility of the Florida

31  Accounting Information Resource Subsystem and the Federal Aid

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 1  Tracking System, any successive systems serving identical or

 2  similar functions shall preserve such compatibility.

 3  

 4  The Chief Financial Officer Comptroller may furnish and

 5  publish in electronic form the financial statements and the

 6  comprehensive annual financial report required under

 7  paragraphs (a), (b), and (c).

 8         (4)  If any agency or the judicial branch fails to

 9  comply with subsection (1) or subsection (2), the Chief

10  Financial Officer Comptroller may refuse to honor salary

11  claims for agency or branch fiscal and executive staff until

12  the agency or branch corrects its deficiency.

13         (5)  The Chief Financial Officer Comptroller may

14  withhold any funds payable to a component unit that does not

15  comply with subsection (1) or subsection (2) until the

16  component unit corrects its deficiency.

17         (6)  The Chief Financial Officer Comptroller may adopt

18  rules to administer this section.

19         Section 243.  Subsections (1) and (3) of section

20  216.141, Florida Statutes, are amended to read:

21         216.141  Budget system procedures; planning and

22  programming by state agencies.--

23         (1)  The Executive Office of the Governor, in

24  consultation with the appropriations committees of the Senate

25  and House of Representatives, and by utilizing the Florida

26  Financial Management Information System management data and

27  the Chief Financial Officer's Comptroller's chart of accounts,

28  shall prescribe a planning and budgeting system, pursuant to

29  s. 215.94(1), to provide for continuous planning and

30  programming and for effective management practices for the

31  efficient operations of all state agencies and the judicial

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 1  branch. The Legislature may contract with the Executive Office

 2  of the Governor to develop the planning and budgeting system

 3  and to provide services to the Legislature for the support and

 4  use of the legislative appropriations system.  The contract

 5  shall include the policies and procedures for combining the

 6  legislative appropriations system with the planning and

 7  budgeting information system established pursuant to s.

 8  215.94(1). At a minimum, the contract shall require the use of

 9  common data codes. The combined legislative appropriations and

10  planning and budgeting information subsystem shall support the

11  legislative appropriations and legislative oversight functions

12  without data code conversion or modification.

13         (3)  The Chief Financial Officer Comptroller, as chief

14  fiscal officer, shall use the Florida Accounting Information

15  Resource Subsystem developed pursuant to s. 215.94(2) for

16  account purposes in the performance of and accounting for all

17  of his or her constitutional and statutory duties and

18  responsibilities.  However, state agencies and the judicial

19  branch continue to be responsible for maintaining accounting

20  records necessary for effective management of their programs

21  and functions.

22         Section 244.  Subsection (1) of section 216.177,

23  Florida Statutes, is amended to read:

24         216.177  Appropriations acts, statement of intent,

25  violation, notice, review and objection procedures.--

26         (1)  When an appropriations act is delivered to the

27  Governor after the Legislature has adjourned sine die, as soon

28  as practicable, but no later than the 10th day before the end

29  of the period allowed by law for veto consideration in any

30  year in which an appropriation is made, the chairs of the

31  legislative appropriations committees shall jointly transmit:

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 1         (a)  The official list of General Revenue Fund

 2  appropriations determined in consultation with the Executive

 3  Office of the Governor to be nonrecurring; and

 4         (b)  The documents set forth in s. 216.0442(2)(a) and

 5  (c),

 6  

 7  to the Executive Office of the Governor, the Chief Financial

 8  Officer Comptroller, the Auditor General, the director of the

 9  Office of Program Policy Analysis and Government

10  Accountability, the Chief Justice of the Supreme Court, and

11  each state agency. A request for additional explanation and

12  direction regarding the legislative intent of the General

13  Appropriations Act during the fiscal year may be made to the

14  chair and vice chair of the Legislative Budget Commission or

15  the President of the Senate and the Speaker of the House of

16  Representatives only by and through the Executive Office of

17  the Governor for state agencies, and by and through the Chief

18  Justice of the Supreme Court for the judicial branch, as is

19  deemed necessary. However, the Chief Financial Officer

20  Comptroller may also request further clarification of

21  legislative intent pursuant to the Chief Financial Officer's

22  Comptroller's responsibilities related to his or her preaudit

23  function of expenditures.

24         Section 245.  Subsections (6), (12), and (14) and

25  paragraph (b) of subsection (16) of section 216.181, Florida

26  Statutes, are amended to read:

27         216.181  Approved budgets for operations and fixed

28  capital outlay.--

29         (6)(a)  The Executive Office of the Governor or the

30  Chief Justice of the Supreme Court may require the submission

31  of a detailed plan from the agency or entity of the judicial

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 1  branch affected, consistent with the General Appropriations

 2  Act, special appropriations acts, and the statement of intent

 3  before transferring and releasing the balance of a lump-sum

 4  appropriation. The provisions of this paragraph are subject to

 5  the notice and review procedures set forth in s. 216.177.

 6         (b)  The Executive Office of the Governor and the Chief

 7  Justice of the Supreme Court may amend, without approval of

 8  the Legislative Budget Commission, state agency and judicial

 9  branch entity budgets, respectively, to reflect the

10  transferred funds based on the approved plans for lump-sum

11  appropriations.

12  

13  The Executive Office of the Governor shall transmit to each

14  state agency and the Chief Financial Officer Comptroller, and

15  the Chief Justice shall transmit to each judicial branch

16  component and the Chief Financial Officer Comptroller, any

17  approved amendments to the approved operating budgets.

18         (12)  There is appropriated nonoperating budget for

19  refunds, payments to the United States Treasury, payments of

20  the service charge to the General Revenue Fund, and transfers

21  of funds specifically required by law. Such authorized budget,

22  together with related releases, shall be transmitted by the

23  state agency or by the judicial branch to the Chief Financial

24  Officer Comptroller for entry in his or her the Comptroller's

25  records in the manner and format prescribed by the Executive

26  Office of the Governor in consultation with the Chief

27  Financial Officer Comptroller. A copy of such authorized

28  budgets shall be furnished to the Executive Office of the

29  Governor or the Chief Justice, the chairs of the legislative

30  committees responsible for developing the general

31  appropriations acts, and the Auditor General. The Governor may

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 1  withhold approval of nonoperating investment authority for

 2  certain trust funds when deemed in the best interest of the

 3  state. The Governor for the executive branch, and the Chief

 4  Justice for the judicial branch, may establish nonoperating

 5  budgets for transfers, purchase of investments, special

 6  expenses, distributions, and any other nonoperating budget

 7  categories they deem necessary and in the best interest of the

 8  state and consistent with legislative intent and policy. The

 9  provisions of this subsection are subject to the notice,

10  review, and objection procedures set forth in s. 216.177. For

11  purposes of this section, the term "nonoperating budgets"

12  means nonoperating disbursement authority for purchase of

13  investments, refunds, payments to the United States Treasury,

14  transfers of funds specifically required by law, distributions

15  of assets held by the state in a trustee capacity as an agent

16  of fiduciary, special expenses, and other nonoperating budget

17  categories as determined necessary by the Executive Office of

18  the Governor, not otherwise appropriated in the General

19  Appropriations Act.

20         (14)  The Executive Office of the Governor and the

21  Chief Justice of the Supreme Court shall certify the amounts

22  approved for operations and fixed capital outlay, together

23  with any relevant supplementary materials or information, to

24  the Chief Financial Officer Comptroller; and such

25  certification shall be the Chief Financial Officer's

26  Comptroller's guide with reference to the expenditures of each

27  state agency pursuant to s. 216.192.

28         (16)

29         (b)  Any agency, or the judicial branch, that has been

30  authorized by the General Appropriations Act or expressly

31  authorized by other law to make advances for program startup

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 1  or advances for contracted services, in total or periodically,

 2  shall limit such disbursements to other governmental entities

 3  and not-for-profit corporations.  The amount which may be

 4  advanced shall not exceed the expected cash needs of the

 5  contractor or recipient within the initial 3 months.

 6  Thereafter, disbursements shall only be made on a

 7  reimbursement basis.  Any agreement that provides for

 8  advancements may contain a clause that permits the contractor

 9  or recipient to temporarily invest the proceeds, provided that

10  any interest income shall either be returned to the agency or

11  be applied against the agency's obligation to pay the contract

12  amount.  This paragraph does not constitute lawful authority

13  to make any advance payment not otherwise authorized by laws

14  relating to a particular agency or general laws relating to

15  the expenditure or disbursement of public funds. The Chief

16  Financial Officer Comptroller may, after consultation with the

17  legislative appropriations committees, advance funds beyond a

18  3-month requirement if it is determined to be consistent with

19  the intent of the approved operating budget.

20         Section 246.  Section 216.183, Florida Statutes, is

21  amended to read:

22         216.183  Entities using performance-based program

23  budgets; chart of accounts.--State agencies and the judicial

24  branch for which a performance-based program budget has been

25  appropriated shall utilize the chart of accounts used by the

26  Florida Accounting Information Resource Subsystem in the

27  manner described in s. 215.93(3). The chart of accounts for

28  state agencies and the judicial branch for which a

29  performance-based program budget has been appropriated shall

30  be developed and amended, if necessary, in consultation with

31  the Department of Financial Services Banking and Finance, the

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 1  Executive Office of the Governor, and the chairs of the

 2  Legislative Budget Commission.

 3         Section 247.  Subsections (1) and (4) of section

 4  216.192, Florida Statutes, are amended to read:

 5         216.192  Release of appropriations; revision of

 6  budgets.--

 7         (1)  Unless otherwise provided in the General

 8  Appropriations Act, on July 1 of each fiscal year, up to 25

 9  percent of the original approved operating budget of each

10  agency and of the judicial branch may be released until such

11  time as annual plans for quarterly releases for all

12  appropriations have been developed, approved, and furnished to

13  the Chief Financial Officer Comptroller by the Executive

14  Office of the Governor for state agencies and by the Chief

15  Justice of the Supreme Court for the judicial branch.  The

16  plans, including appropriate plans of releases for fixed

17  capital outlay projects that correspond with each project

18  schedule, shall attempt to maximize the use of trust funds and

19  shall be transmitted to the Chief Financial Officer

20  Comptroller by August 1 of each fiscal year. Such releases

21  shall at no time exceed the total appropriations available to

22  a state agency or to the judicial branch, or the approved

23  budget for such agency or the judicial branch if less. The

24  Chief Financial Officer Comptroller shall enter such releases

25  in his or her records in accordance with the release plans

26  prescribed by the Executive Office of the Governor and the

27  Chief Justice, unless otherwise amended as provided by law.

28  The Executive Office of the Governor and the Chief Justice

29  shall transmit a copy of the approved annual releases to the

30  head of the state agency, the chair and vice chair of the

31  Legislative Budget Commission, and the Auditor General. The

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 1  Chief Financial Officer Comptroller shall authorize all

 2  expenditures to be made from the appropriations on the basis

 3  of such releases and in accordance with the approved budget,

 4  and not otherwise. Expenditures shall be authorized only in

 5  accordance with legislative authorizations. Nothing herein

 6  precludes periodic reexamination and revision by the Executive

 7  Office of the Governor or by the Chief Justice of the annual

 8  plans for release of appropriations and the notifications of

 9  the parties of all such revisions.

10         (4)  The legislative appropriations committees may

11  advise the Chief Financial Officer Comptroller, the Executive

12  Office of the Governor, or the Chief Justice relative to the

13  release of any funds under this section.

14         Section 248.  Subsection (1) of section 216.212,

15  Florida Statutes, is amended to read:

16         216.212  Budgets for federal funds; restrictions on

17  expenditure of federal funds.--

18         (1)  The Executive Office of the Governor and, the

19  office of the Chief Financial Officer Comptroller, and the

20  office of the Treasurer shall develop and implement procedures

21  for accelerating the drawdown of, and minimizing the payment

22  of interest on, federal funds.  The Executive Office of the

23  Governor shall establish a clearinghouse for federal programs

24  and activities.  The clearinghouse shall develop the capacity

25  to respond to federal grant opportunities and to coordinate

26  the use of federal funds in the state.

27         (a)  Every state agency, when making a request or

28  preparing a budget to be submitted to the Federal Government

29  for funds, equipment, material, or services, shall submit such

30  request or budget to the Executive Office of the Governor for

31  review before submitting it to the proper federal authority.

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 1  However, the Executive Office of the Governor may specifically

 2  authorize any agency to submit specific types of grant

 3  proposals directly to the Federal Government.

 4         (b)  Every office or court of the judicial branch, when

 5  making a request or preparing a budget to be submitted to the

 6  Federal Government for funds, equipment, material, or

 7  services, shall submit such request or budget to the Chief

 8  Justice of the Supreme Court for approval before submitting it

 9  to the proper federal authority.  However, the Chief Justice

10  may specifically authorize any court to submit specific types

11  of grant proposals directly to the Federal Government.

12         Section 249.  Subsections (8), (9), and (10) of section

13  216.221, Florida Statutes, are amended to read:

14         216.221  Appropriations as maximum appropriations;

15  adjustment of budgets to avoid or eliminate deficits.--

16         (8)  The Chief Financial Officer Comptroller also has

17  the duty to ensure that revenues being collected will be

18  sufficient to meet the appropriations and that no deficit

19  occurs in any fund of the state.

20         (9)  If, in the opinion of the Chief Financial Officer

21  Comptroller, after consultation with the Revenue Estimating

22  Conference, a deficit will occur, he or she the Comptroller

23  shall report his or her opinion to the Governor in writing. In

24  the event the Governor does not certify a deficit within 10

25  days after the Chief Financial Officer's Comptroller's report,

26  the Chief Financial Officer Comptroller shall report his or

27  her findings and opinion to the commission and the Chief

28  Justice of the Supreme Court.

29         (10)  When advised by the Revenue Estimating

30  Conference, the Chief Financial Officer Comptroller, or any

31  agency responsible for a trust fund that a deficit will occur

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 1  with respect to the appropriations from a specific trust fund

 2  in the current fiscal year, the Governor for the executive

 3  branch, or the Chief Justice for the judicial branch, shall

 4  develop a plan of action to eliminate the deficit. Before

 5  implementing the plan of action, the Governor or the Chief

 6  Justice must comply with the provisions of s. 216.177(2). In

 7  developing the plan of action, the Governor or the Chief

 8  Justice shall, to the extent possible, preserve legislative

 9  policy and intent, and, absent any specific directions to the

10  contrary in the General Appropriations Act, any reductions in

11  appropriations from the trust fund for the fiscal year shall

12  be prorated among the specific appropriations made from the

13  trust fund for the current fiscal year.

14         Section 250.  Paragraph (d) of subsection (4) of

15  section 216.235, Florida Statutes, is amended to read:

16         216.235  Innovation Investment Program; intent;

17  definitions; composition and responsibilities of State

18  Innovation Committee; responsibilities of the Office of

19  Tourism, Trade, and Economic Development and the review board;

20  procedures for innovative project submission, review,

21  evaluation, and approval; criteria to be considered.--

22         (4)  There is hereby created the State Innovation

23  Committee, which shall have final approval authority as to

24  which innovative investment projects submitted under this

25  section shall be funded. Such committee shall be comprised of

26  seven members. Appointed members shall serve terms of 1 year

27  and may be reappointed. The committee shall include:

28         (d)  The Chief Financial Officer Comptroller.

29         Section 251.  Section 216.237, Florida Statutes, is

30  amended to read:

31  

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 1         216.237  Availability of any remaining funds; agency

 2  maintenance of accounting records.--Any remaining funds from

 3  the General Revenue Fund and trust fund spending authority not

 4  awarded to agencies pursuant to s. 216.236 shall be available

 5  to agencies for innovative projects which generate a cost

 6  savings, increase revenue, or improve service delivery.

 7  Innovative projects which generate a cost savings shall

 8  receive greater consideration when awarding innovation

 9  investment funds. Any trust fund authority granted under this

10  program shall be utilized in a manner consistent with the

11  statutory authority for the use of said trust fund. Any

12  savings realized as a result of implementing the innovative

13  project shall be used by the agency to establish an internal

14  innovations fund. State agencies which are awarded funds for

15  innovative projects shall utilize the chart of accounts used

16  by the Florida Accounting Information Resource Subsystem in

17  the manner described in s. 215.93(3). Such chart of accounts

18  shall be developed and amended in consultation with the

19  Department of Financial Services Banking and Finance and the

20  Executive Office of the Governor to separate and account for

21  the savings that result from the implementation of the

22  innovative projects and to keep track of how the innovative

23  funds are reinvested by the state agency to fund additional

24  innovative projects, which may include, but not be limited to,

25  expenditures for training and information technology

26  resources. Guidelines for the establishment of such internal

27  innovations fund shall be provided by the Department of

28  Management Services. Any agency awarded funds under this

29  section shall maintain detailed accounting records showing all

30  expenses, loan transfers, savings, or other financial actions

31  concerning the project. Any savings realized as a result of

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 1  implementing the innovative project shall be quantified,

 2  validated, and verified by the agency. A final report of the

 3  results of the implementation of each innovative project shall

 4  be submitted by each participating agency to the Governor's

 5  Office of Planning and Budgeting and the legislative

 6  appropriations committees by June 30 of the fiscal year in

 7  which the funds were received and ensuing fiscal years for the

 8  life of the project.

 9         Section 252.  Paragraph (b) of subsection (2) of

10  section 216.251, Florida Statutes, is amended to read:

11         216.251  Salary appropriations; limitations.--

12         (2)

13         (b)  Salary payments shall be made only to employees

14  filling established positions included in the agency's or in

15  the judicial branch's approved budgets and amendments thereto

16  as may be provided by law; provided, however:

17         1.  Reclassification of established positions may be

18  accomplished when justified in accordance with the established

19  procedures for reclassifying positions; or

20         2.  When the Division of Risk Management of the

21  Department of Financial Services Insurance has determined that

22  an employee is entitled to receive a temporary partial

23  disability benefit or a temporary total disability benefit

24  pursuant to the provisions of s. 440.15 and there is medical

25  certification that the employee cannot perform the duties of

26  the employee's regular position, but the employee can perform

27  some type of work beneficial to the agency, the agency may

28  return the employee to the payroll, at his or her regular rate

29  of pay, to perform such duties as the employee is capable of

30  performing, even if there is not an established position in

31  which the employee can be placed.  Nothing in this

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 1  subparagraph shall abrogate an employee's rights under chapter

 2  440 or chapter 447, nor shall it adversely affect the

 3  retirement credit of a member of the Florida Retirement System

 4  in the membership class he or she was in at the time of, and

 5  during, the member's disability.

 6         Section 253.  Section 216.271, Florida Statutes, is

 7  amended to read:

 8         216.271  Revolving funds.--

 9         (1)  No revolving fund may be established or increased

10  in amount pursuant to s. 18.101(2), unless approved by the

11  Chief Financial Officer Comptroller. The purpose and uses of a

12  revolving fund may not be changed without the prior approval

13  of the Chief Financial Officer Comptroller. As used in this

14  section, the term "revolving fund" means a cash fund

15  maintained within or outside the State Treasury and

16  established from an appropriation, to be used by an agency or

17  the judicial branch in making authorized expenditures.

18         (2)  When the Chief Financial Officer Comptroller

19  approves a revolving or petty cash fund for making refunds or

20  other payments, such fund shall be established from an account

21  within the appropriate fund to be known as "payments for

22  revolving funds from funds not otherwise appropriated."

23  Reimbursements made from revolving or petty cash funds shall

24  be made in strict accordance with the provisions of s.

25  215.26(2). The Chief Financial Officer Comptroller may

26  restrict the types of uses of any revolving fund established

27  pursuant to this section.

28         (3)  Vouchers for reimbursement of expenditures from

29  revolving funds established under this section shall be

30  presented in a routine manner to the Chief Financial Officer

31  Comptroller for approval and payment, the proceeds of which

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 1  shall be returned to the revolving or petty cash fund

 2  involved.

 3         (4)  The revolving or petty cash fund authorized herein

 4  shall be properly maintained and accounted for by the agency

 5  or by the judicial branch requesting the fund and, upon the

 6  expiration of the need therefor, shall be returned in the

 7  amount originally established to the appropriate fund for

 8  credit to the payments for revolving funds account therein.

 9         (5)  Reimbursement to the revolving fund for uninsured

10  losses and theft may be made from the fund in which the

11  responsible operating department is budgeted.  Such

12  reimbursement shall be submitted consistent with procedures

13  specified by the Chief Financial Officer Comptroller.

14         Section 254.  Section 216.275, Florida Statutes, is

15  amended to read:

16         216.275  Clearing accounts.--No clearing account may be

17  established outside the State Treasury pursuant to s.

18  18.101(1) unless approved by the Chief Financial Officer

19  Treasurer during the fiscal year. Each agency, or the judicial

20  branch, desiring to maintain a clearing account outside the

21  State Treasury shall submit a written request to do so to the

22  Chief Financial Officer Treasurer in accordance with the

23  format and manner prescribed by the Chief Financial Officer

24  Treasurer. The Chief Financial Officer Treasurer shall

25  maintain a listing of all clearing accounts approved during

26  the fiscal year.

27         Section 255.  Subsections (2), (3), (6), (8), (9), and

28  (10) of section 216.292, Florida Statutes, are amended to

29  read:

30         216.292  Appropriations nontransferable; exceptions.--

31  

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 1         (2)  A lump sum appropriated for a performance-based

 2  program must be distributed by the Governor for state agencies

 3  or the Chief Justice for the judicial branch into the

 4  traditional expenditure categories in accordance with s.

 5  216.181(6)(b).  At any time during the year, the agency head

 6  or Chief Justice may transfer funds between those categories

 7  with no limit on the amount of the transfer. Authorized

 8  revisions of the original approved operating budget, together

 9  with related changes, if any, must be transmitted by the state

10  agency or by the judicial branch to the Executive Office of

11  the Governor or the Chief Justice, the chair and vice chair of

12  the Legislative Budget Commission, the Office of Program

13  Policy Analysis and Government Accountability, and the Auditor

14  General. Such authorized revisions shall be consistent with

15  the intent of the approved operating budget, shall be

16  consistent with legislative policy and intent, and shall not

17  conflict with specific spending policies specified in the

18  General Appropriations Act. The Executive Office of the

19  Governor shall forward a copy of the revisions within 7

20  working days to the Chief Financial Officer Comptroller for

21  entry in his or her records in the manner and format

22  prescribed by the Executive Office of the Governor in

23  consultation with the Chief Financial Officer Comptroller.

24  Such authorized revisions shall be consistent with the intent

25  of the approved operating budget, shall be consistent with

26  legislative policy and intent, and shall not conflict with

27  specific spending policies specified in the General

28  Appropriations Act.

29         (3)  The head of each department or the Chief Justice

30  of the Supreme Court, whenever it is deemed necessary by

31  reason of changed conditions, may transfer appropriations

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 1  funded from identical funding sources, except appropriations

 2  for fixed capital outlay, and transfer the amounts included

 3  within the total original approved budget and releases as

 4  furnished pursuant to ss. 216.181 and 216.192, as follows:

 5         (a)  Between categories of appropriations within a

 6  budget entity, if no category of appropriation is increased or

 7  decreased by more than 5 percent of the original approved

 8  budget or $150,000, whichever is greater, by all action taken

 9  under this subsection.

10         (b)  Additionally, between budget entities within

11  identical categories of appropriations, if no category of

12  appropriation is increased or decreased by more than 5 percent

13  of the original approved budget or $150,000, whichever is

14  greater, by all action taken under this subsection.

15         (c)  Such authorized revisions must be consistent with

16  the intent of the approved operating budget, must be

17  consistent with legislative policy and intent, and must not

18  conflict with specific spending policies specified in the

19  General Appropriations Act.

20  

21  Such authorized revisions, together with related changes, if

22  any, in the plan for release of appropriations, shall be

23  transmitted by the state agency or by the judicial branch to

24  the Chief Financial Officer Comptroller for entry in the Chief

25  Financial Officer's Comptroller's records in the manner and

26  format prescribed by the Executive Office of the Governor in

27  consultation with the Chief Financial Officer Comptroller. A

28  copy of such revision shall be furnished to the Executive

29  Office of the Governor or the Chief Justice, the chair and

30  vice chair of the Legislative Budget Commission, the Auditor

31  

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 1  General, and the director of the Office of Program Policy

 2  Analysis and Government Accountability.

 3         (6)  Upon request of a department to, and approval by,

 4  the Chief Financial Officer Comptroller, funds appropriated

 5  may be transferred to accounts established for disbursement

 6  purposes upon release of such appropriation.  Such transfer

 7  may only be made to the same appropriation category and the

 8  same funding source from which the funds are transferred.

 9         (8)(a)  Should any state agency or the judicial branch

10  become more than 90 days delinquent on reimbursements due to

11  the Unemployment Compensation Trust Fund, the Department of

12  Labor and Employment Security shall certify to the Chief

13  Financial Officer Comptroller the amount due; and the Chief

14  Financial Officer Comptroller shall transfer the amount due to

15  the Unemployment Compensation Trust Fund from any funds of the

16  agency available.

17         (b)  Should any state agency or the judicial branch

18  become more than 90 days delinquent in paying the Division of

19  Risk Management of the Department of Financial Services

20  Insurance for insurance coverage, the Department of Financial

21  Services Insurance may certify to the Chief Financial Officer

22  Comptroller the amount due; and the Chief Financial Officer

23  Comptroller shall transfer the amount due to the Division of

24  Risk Management from any funds of the agency or the judicial

25  branch available.

26         (9)  Moneys appropriated in the General Appropriations

27  Act for the purpose of paying for services provided by the

28  state communications system in the Department of Management

29  Services shall be paid by the user agencies, or the judicial

30  branch, within 45 days after the billing date. Billed amounts

31  not paid by the user agencies, or by the judicial branch,

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 1  shall be transferred by the Chief Financial Officer

 2  Comptroller from the user agencies to the Communications

 3  Working Capital Trust Fund.

 4         (10)  The Chief Financial Officer Comptroller shall

 5  report all such transfers and the reasons for such transfers

 6  to the legislative appropriations committees and the Executive

 7  Office of the Governor.

 8         Section 256.  Paragraph (a) of subsection (1),

 9  paragraph (a) of subsection (2), and subsection (3) of section

10  216.301, Florida Statutes, are amended to read:

11         216.301  Appropriations; undisbursed balances.--

12         (1)(a)  Any balance of any appropriation, except an

13  appropriation for fixed capital outlay, which is not disbursed

14  but which is expended or contracted to be expended shall, at

15  the end of each fiscal year, be certified by the head of the

16  affected state agency or the judicial or legislative branches,

17  on or before August 1 of each year, to the Executive Office of

18  the Governor, showing in detail the obligees to whom obligated

19  and the amounts of such obligations.  On or before September 1

20  of each year, the Executive Office of the Governor shall

21  review and approve or disapprove, consistent with legislative

22  policy and intent, any or all of the items and amounts

23  certified by the head of the affected state agency and shall

24  approve all items and amounts certified by the Chief Justice

25  of the Supreme Court for the judicial branch and by the

26  legislative branch and shall furnish the Chief Financial

27  Officer Comptroller, the legislative appropriations

28  committees, and the Auditor General a detailed listing of the

29  items and amounts approved as legal encumbrances against the

30  undisbursed balance of such appropriation. The review shall

31  assure that trust funds have been fully maximized.  Any such

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 1  encumbered balance remaining undisbursed on December 31 of the

 2  same calendar year in which such certification was made shall

 3  revert to the fund from which appropriated and shall be

 4  available for reappropriation by the Legislature.  In the

 5  event such certification is not made and an obligation is

 6  proven to be legal, due, and unpaid, then the obligation shall

 7  be paid and charged to the appropriation for the current

 8  fiscal year of the state agency or the legislative or judicial

 9  branch affected.

10         (2)(a)  Any balance of any appropriation for fixed

11  capital outlay not disbursed but expended or contracted or

12  committed to be expended shall, at the end of each fiscal

13  year, be certified by the head of the affected state agency or

14  the legislative or judicial branch, on or before August 1 of

15  each year, to the Executive Office of the Governor, showing in

16  detail the commitment or to whom obligated and the amount of

17  such commitment or obligation.  On or before September 1 of

18  each year, the Executive Office of the Governor shall review

19  and approve or disapprove, consistent with legislative policy

20  and intent, any or all of the items and amounts certified by

21  the head of the affected state agency and shall approve all

22  items and amounts certified by the Chief Justice of the

23  Supreme Court and by the legislative branch and shall furnish

24  the Chief Financial Officer Comptroller, the legislative

25  appropriations committees, and the Auditor General a detailed

26  listing of the items and amounts approved as legal

27  encumbrances against the undisbursed balances of such

28  appropriations. In the event such certification is not made

29  and the balance of the appropriation has reverted and the

30  obligation is proven to be legal, due, and unpaid, then the

31  

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 1  same shall be presented to the Legislature for its

 2  consideration.

 3         (3)  Notwithstanding the provisions of subsection (2),

 4  the unexpended balance of any appropriation for fixed capital

 5  outlay subject to but not under the terms of a binding

 6  contract or a general construction contract prior to February

 7  1 of the second fiscal year, or the third fiscal year if it is

 8  for an educational facility as defined in chapter 235 or a

 9  construction project of the Board of Regents, of the

10  appropriation shall revert on February 1 of such year to the

11  fund from which appropriated and shall be available for

12  reappropriation. The Executive Office of the Governor shall,

13  not later than February 20 of each year, furnish the Chief

14  Financial Officer Comptroller, the legislative appropriations

15  committees, and the Auditor General a report listing in detail

16  the items and amounts reverting under the authority of this

17  subsection, including the fund to which reverted and the

18  agency affected.

19         Section 257.  Section 217.07, Florida Statutes, is

20  amended to read:

21         217.07  Transfer of surplus property assets to

22  department.--The Chief Financial Officer State Treasurer is

23  authorized to transfer to the department any funds unexpended

24  in the Surplus Property Revolving Trust Fund account in the

25  State Treasury.  This revolving fund shall remain in existence

26  as a separate trust fund as long as the surplus property

27  program exists.  Upon termination of the program any remaining

28  funds shall be disposed of as provided by federal law.

29         Section 258.  Section 218.06, Florida Statutes, is

30  amended to read:

31  

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 1         218.06  Transfer of funds by county commissioners with

 2  relation to public works grants.--

 3         (1)  Boards of county commissioners of the several

 4  counties of the state, whenever it may be necessary to meet

 5  the requirements of the United States Government with

 6  reference to obtaining grants of federal funds in connection

 7  with the program of the Public Works Administration, may by

 8  resolution of such board, transfer and expend such sums of

 9  money as may be necessary to obtain said grant, from any fund

10  to such other fund as may be necessary to meet said

11  requirements and carry out the intent and purposes of the said

12  transfer; provided, however, that no such transfer may be made

13  by any county of the state without first having obtained the

14  approval of the Department of Financial Services Banking and

15  Finance thereto, and in the counties of the state where there

16  is provision for a budget commission, without first having

17  also obtained the approval of said budget commission to said

18  transfer.

19         (2)  The Department of Financial Services Banking and

20  Finance and the budget commissions of the several counties of

21  the state in which there are provisions for such budget

22  commissions, may approve such transfers whenever in their

23  opinion such transfers are necessary and proper.

24         Section 259.  Paragraph (a) of subsection (1) of

25  section 218.23, Florida Statutes, is amended to read:

26         218.23  Revenue sharing with units of local

27  government.--

28         (1)  To be eligible to participate in revenue sharing

29  beyond the minimum entitlement in any fiscal year, a unit of

30  local government is required to have:

31  

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 1         (a)  Reported its finances for its most recently

 2  completed fiscal year to the Department of Financial Services

 3  Banking and Finance, pursuant to s. 218.32.

 4  

 5  Additionally, to receive its share of revenue sharing funds, a

 6  unit of local government shall certify to the Department of

 7  Revenue that the requirements of s. 200.065, if applicable,

 8  were met.  The certification shall be made annually within 30

 9  days of adoption of an ordinance or resolution establishing a

10  final property tax levy or, if no property tax is levied, not

11  later than November 1.  The portion of revenue sharing funds

12  which, pursuant to this part, would otherwise be distributed

13  to a unit of local government which has not certified

14  compliance or has otherwise failed to meet the requirements of

15  s. 200.065 shall be deposited in the General Revenue Fund for

16  the 12 months following a determination of noncompliance by

17  the department.

18         Section 260.  Subsection (4) of section 218.31, Florida

19  Statutes, is amended to read:

20         218.31  Definitions.--As used in this part, except

21  where the context clearly indicates a different meaning:

22         (4)  "Department" means the Department of Financial

23  Services Banking and Finance.

24         Section 261.  Subsections (1) and (4) of section

25  218.321, Florida Statutes, are amended to read:

26         218.321  Annual financial statements; local

27  governmental entities.--

28         (1)  Each local governmental entity shall complete its

29  financial statements for the previous fiscal year in

30  compliance with generally accepted accounting principles and

31  

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 1  the uniform chart of accounts prescribed by the department of

 2  Banking and Finance.

 3         (4)  The failure by any local governmental entity to

 4  complete its annual financial statements shall, in addition to

 5  any other penalties provided by law, authorize the department

 6  to employ personnel or send department personnel to such local

 7  governmental entity in order to complete such annual financial

 8  statements. The expenses related to the completion of the

 9  annual financial statements shall be charged to the local

10  governmental entity. Upon failure by the local governmental

11  entity to pay the charge within 15 days after billing, the

12  department shall so certify to the Chief Financial Officer

13  Comptroller, who shall forward the amount so certified to the

14  department from any funds due to the local governmental entity

15  under any revenue-sharing or tax-sharing fund established by

16  the state, except as otherwise provided by the State

17  Constitution.

18         Section 262.  Section 218.325, Florida Statutes, is

19  amended to read:

20         218.325  Uniform chart of accounts and financial

21  reporting for court and justice system costs and revenues.--

22         (1)(a)  The Uniform Chart of Accounts Development

23  Committee is hereby created to develop and implement a uniform

24  chart of accounts.  The committee shall work with the

25  representatives of the designated end-user groups identified

26  in subsection (3) in order to determine the specific financial

27  data related to the operations of the circuit and county

28  courts and justice-related agencies of the executive branch

29  which must be accounted for and reported. The committee shall

30  then work with the department of Banking and Finance to

31  

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 1  develop the necessary rules required to implement the uniform

 2  chart of accounts.  The committee shall include:

 3         1.  The Chief Financial Officer Comptroller or his or

 4  her the Comptroller's designee.

 5         2.  Three clerks of the circuit court or deputy clerks,

 6  appointed by the president of the Florida Association of Court

 7  Clerks.

 8         3.  Three elected county commissioners or county

 9  finance staff, appointed by the Florida Association of

10  Counties.

11         4.  Three elected sheriffs or their designees,

12  appointed by the president of the Florida Sheriffs

13  Association.

14         (b)  The Chief Financial Officer Comptroller or his or

15  her the Comptroller's designee shall serve as chairperson of

16  the committee. The committee shall use the staff of the

17  department of Banking and Finance for staff support and may

18  also appoint technical support staff as designated by the

19  Florida Association of Court Clerks, the Florida Association

20  of Counties, and the Florida Sheriffs Association as needed

21  for technical assistance and support.  Members of the

22  committee must be appointed within 30 days after June 18,

23  1995. Within 60 days after the appointment of the membership,

24  the committee shall meet to establish procedures for the

25  conduct of its business.

26         (c)  Members of the committee shall serve without

27  compensation.

28         (2)  The Uniform Chart of Accounts Development

29  Committee shall make an analysis of the requirements for

30  implementing a detailed, uniform chart of accounts and

31  financial reporting system for court and justice-related

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 1  agency expenditures and revenues. The Chief Financial Officer

 2  Comptroller shall make a report to the Chief Justice of the

 3  Florida Supreme Court, the Governor, the Speaker of the House

 4  of Representatives, and the President of the Senate on such

 5  requirements, including a timetable for implementation and an

 6  assessment of fiscal impact, by January 1, 1996.  The proposed

 7  uniform chart of accounts and financial reporting system must

 8  provide that all revenues received and expenditures incurred

 9  by county governments, clerks of court, the courts or other

10  judicial entities that are related to the operations of the

11  circuit courts and county courts, and other components of the

12  justice system can be accounted for in sufficient detail to

13  permit reporting for both discrete functions and

14  organizational units.

15         (3)  For purposes of this section, the collection of

16  representatives of end-user groups, which shall assist the

17  Uniform Chart of Accounts Development Committee on the process

18  and procedures for implementing new accounting and reporting

19  requirements and provide oversight and guidance for

20  implementing activities, shall be formed by one representative

21  each from the Office of the Governor, the Speaker of the House

22  of Representatives, the President of the Senate, the Office of

23  the Chief Financial Officer Comptroller, the Office of the

24  State Courts Administrator, the Florida Prosecuting Attorneys

25  Association, the Florida Public Defenders Association, the

26  Legislative Committee on Intergovernmental Relations, the

27  Information Resource Committee, and The Florida Bar.

28         Section 263.  Subsection (3) of section 220.62, Florida

29  Statutes, is amended to read:

30         220.62  Definitions.--For purposes of this part:

31  

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 1         (3)  The term "international banking facility" means a

 2  set of asset and liability accounts segregated on the books

 3  and records of a banking organization that includes only

 4  international banking facility deposits, borrowings, and

 5  extensions of credit, as those terms are defined by the

 6  Department of Financial Services Banking and Finance, taking

 7  into account all transactions in which international banking

 8  facilities are permitted to engage by regulations of the Board

 9  of Governors of the Federal Reserve System, as from time to

10  time amended.  When providing such definitions, the Department

11  of Financial Services Banking and Finance shall also consider

12  the public interest, including the need to maintain a sound

13  and competitive banking system, as well as the purpose of this

14  act, which is to create an environment conducive to the

15  conduct of an international banking business in the state.

16         Section 264.  Subsection (2) of section 220.723,

17  Florida Statutes, is amended to read:

18         220.723  Overpayments; interest.--

19         (2)  Interest shall accrue from the date upon which the

20  taxpayer files a written notice advising the department of the

21  overpayment.  Interest shall be paid until such date as

22  determined by the department, which shall be no more than 7

23  days prior to the date of the issuance by the Chief Financial

24  Officer Comptroller of the refund warrant.

25         Section 265.  Paragraph (g) of subsection (6) of

26  section 228.2001, Florida Statutes, is amended to read:

27         228.2001  Discrimination against students and employees

28  in state system of public education; prohibitions; equality of

29  access; strategies to overcome underrepresentation;

30  remedies.--

31  

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 1         (6)  The functions of the Office of Equal Educational

 2  Opportunity of the Department of Education shall include, but

 3  not be limited to:

 4         (g)  Beginning July 1, 1994, reporting to the

 5  Commissioner of Education any public community college or

 6  school district found to be out of compliance with rules of

 7  the State Board of Education adopted as required by paragraph

 8  (f) or paragraph (3)(d).  To penalize the community college or

 9  school district, the commissioner shall:

10         1.  Declare the educational agency ineligible for

11  competitive state grants.

12         2.  Notwithstanding the provisions of s. 216.192,

13  direct the Chief Financial Officer Comptroller to withhold

14  general revenue funds sufficient to obtain compliance from the

15  educational agency.

16  

17  The educational agency shall remain ineligible and the funds

18  shall not be paid until the agency comes into compliance or

19  the commissioner approves a plan for compliance.

20         Section 266.  Subsection (4) of section 229.0535,

21  Florida Statutes, is amended to read:

22         229.0535  Authority to enforce school improvement.--It

23  is the intent of the Legislature that all public schools be

24  held accountable for students performing at acceptable levels.

25  A system of school improvement and accountability that

26  assesses student performance by school, identifies schools in

27  which students are not making adequate progress toward state

28  standards, institutes appropriate measures for enforcing

29  improvement, and provides rewards and sanctions based on

30  performance shall be the responsibility of the State Board of

31  Education.

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 1         (4)  The State Board of Education is authorized to

 2  require the Department of Education or Chief Financial Officer

 3  Comptroller to withhold any transfer of state funds to the

 4  school district if, within the timeframe specified in state

 5  board action, the school district has failed to comply with

 6  the action ordered to improve the district's low-performing

 7  schools. Withholding the transfer of funds shall occur only

 8  after all other recommended actions for school improvement

 9  have failed to improve performance. The State Board of

10  Education may invoke the same penalty to any school board that

11  fails to develop and implement a plan for assistance and

12  intervention for low-performing schools as specified in s.

13  230.23(16)(c).

14         Section 267.  Paragraph (b) of subsection (6) of

15  section 229.0537, Florida Statutes, is amended to read:

16         229.0537  Opportunity Scholarship Program.--

17         (6)  OPPORTUNITY SCHOLARSHIP FUNDING AND PAYMENT.--

18         (b)  Upon proper documentation reviewed and approved by

19  the Department of Education, the Chief Financial Officer

20  Comptroller shall make opportunity scholarship payments in

21  four equal amounts no later than September 1, November 1,

22  February 1, and April 1 of each academic year in which the

23  opportunity scholarship is in force. The initial payment shall

24  be made after Department of Education verification of

25  admission acceptance, and subsequent payments shall be made

26  upon verification of continued enrollment and attendance at

27  the private school. Payment must be by individual warrant made

28  payable to the student's parent or guardian and mailed by the

29  Department of Education to the private school of the parent's

30  or guardian's choice, and the parent or guardian shall

31  restrictively endorse the warrant to the private school.

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 1         Section 268.  Paragraph (f) of subsection (6) of

 2  section 229.05371, Florida Statutes, is amended to read:

 3         229.05371  The John M. McKay Scholarships for Students

 4  with Disabilities Program.--There is established a program

 5  that is separate and distinct from the Opportunity Scholarship

 6  Program and is named the John M. McKay Scholarships for

 7  Students with Disabilities Program, pursuant to this section.

 8         (6)  SCHOLARSHIP FUNDING AND PAYMENT.--

 9         (f)  Upon proper documentation reviewed and approved by

10  the Department of Education, the Chief Financial Officer

11  Comptroller shall make scholarship payments in four equal

12  amounts no later than September 1, November 1, February 1, and

13  April 15 of each academic year in which the scholarship is in

14  force. The initial payment shall be made after Department of

15  Education verification of admission acceptance, and subsequent

16  payments shall be made upon verification of continued

17  enrollment and attendance at the private school. Payment must

18  be by individual warrant made payable to the student's parent

19  and mailed by the Department of Education to the private

20  school of the parent's choice, and the parent shall

21  restrictively endorse the warrant to the private school for

22  deposit into the account of the private school.

23         Section 269.  Subsection (2) of section 229.111,

24  Florida Statutes, is amended to read:

25         229.111  Gifts to state public education system or

26  school fund.--

27         (2)  The Chief Financial Officer State Treasurer shall

28  be treasurer and custodian of all such gifts and bequests of

29  money, royalty, and other personal property given or

30  bequeathed for the purposes designated herein.  He or she

31  shall receive and provide for the proper custody and

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 1  disbursement of any such funds, in accordance with the

 2  provisions of law and regulations of the state board.

 3         Section 270.  Subsection (2) of section 229.781,

 4  Florida Statutes, is amended to read:

 5         229.781  Records; preservation; destruction.--

 6         (2)  After complying with the provisions of s. 257.37,

 7  the Department of Education is authorized, in its discretion,

 8  to destroy general correspondence which is over 3 years old;

 9  records of bills, accounts, vouchers and requisitions which

10  are over 5 years old and copies of which have been filed with

11  the Chief Financial Officer Comptroller; and other records,

12  papers and documents over 3 years old which do not serve as

13  part of an agreement or understanding nor have value as

14  permanent records.

15         Section 271.  Subsection (9) of section 231.261,

16  Florida Statutes, is amended to read:

17         231.261  Education Practices Commission;

18  organization.--

19         (9)  The commission shall make such expenditures as may

20  be necessary in exercising its authority and powers and

21  carrying out its duties and responsibilities, including

22  expenditures for personal services, general counsel or access

23  to counsel, and rent at the seat of government and elsewhere;

24  for books of reference, periodicals, furniture, equipment, and

25  supplies; and for printing and binding. The expenditures of

26  the commission shall be subject to the powers and duties of

27  the Department of Financial Services Banking and Finance as

28  provided in s. 17.03.

29         Section 272.  Subsection (2) of section 231.30, Florida

30  Statutes, is amended to read:

31         231.30  Certification fees.--

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 1         (2)  The proceeds from the collection of certification

 2  fees, fines, penalties, and costs levied pursuant to this

 3  chapter shall be remitted by the Department of Education to

 4  the Chief Financial Officer Treasurer for deposit into a

 5  separate fund to be known as the "Educational Certification

 6  and Service Trust Fund" and disbursed for the payment of

 7  expenses incurred by the Educational Standards Commission, by

 8  the Educational Practices Commission, and in the printing of

 9  forms and bulletins and the issuing of certificates, upon

10  vouchers approved by the department.

11         Section 273.  Subsection (3) of section 231.545,

12  Florida Statutes, is amended to read:

13         231.545  Education Standards Commission;

14  organization.--

15         (3)  Members shall serve for 3-year staggered terms and

16  shall be entitled to reimbursement for expenses of attending

17  meetings of the commission. Reimbursement for such expenses

18  shall be made by the Chief Financial Officer Treasurer from

19  funds appropriated for the Department of Education, on

20  warrants drawn by the Comptroller upon requisitions approved

21  by the Department of Education. School districts shall be

22  reimbursed for substitute teachers required to replace

23  commission members, when they are carrying out their official

24  duties, at the rate established by the school district for

25  substitute teachers.  The department may reimburse local

26  school districts for substitutes.

27         Section 274.  Paragraph (b) of subsection (3) of

28  section 233.063, Florida Statutes, is amended to read:

29         233.063  Instruction in operation of motor vehicles.--

30         (3)

31  

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 1         (b)  For the purpose of financing the Driver Education

 2  Program in the secondary schools, there shall be levied an

 3  additional 50 cents per year to the driver's license fee

 4  required by s. 322.21. The additional fee shall be promptly

 5  remitted to the Department of Highway Safety and Motor

 6  Vehicles, and the department shall transmit the fee to the

 7  Chief Financial Officer Treasurer to be deposited in the

 8  General Revenue Fund.

 9         Section 275.  Paragraph (c) of subsection (2) of

10  section 233.07, Florida Statutes, is amended to read:

11         233.07  State instructional materials committees.--

12         (2)

13         (c)  The district school board shall be reimbursed for

14  the actual cost of substitute teachers for each workday that a

15  member of its instructional staff is absent from his or her

16  assigned duties for the purpose of rendering service to the

17  state instructional materials committee. In addition,

18  committee members shall be reimbursed for travel expenses, and

19  per diem shall be paid to each committee member as provided in

20  s. 112.061 for actual service in meetings of committees called

21  by the Commissioner of Education. Payment of such travel

22  expenses shall be made by the Chief Financial Officer

23  Treasurer from the appropriation for the administration of the

24  instructional materials program, on warrants to be drawn by

25  the Comptroller upon requisition approved by the commissioner.

26         Section 276.  Section 233.15, Florida Statutes, is

27  amended to read:

28         233.15  Deposit by publisher or manufacturer of

29  instructional materials must accompany bid.--The Department of

30  Education shall require each publisher or manufacturer of

31  instructional materials who submits a bid or proposal under

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 1  the provisions of this chapter to deposit with the department

 2  such sum of money or certified check as may be determined by

 3  the department, the amount to be not less than $500 and not

 4  more than $2,500, according to the number of instructional

 5  materials covered by the proposal; which deposit shall be

 6  forfeited to the state and placed in the General Revenue Fund

 7  if the bidder making the deposit shall fail or refuse to

 8  execute the contract and bond within 30 days of receipt of

 9  such contract in case his or her bid or proposal is accepted.

10  The Commissioner of Education shall, upon determining that the

11  deposit is correct and proper, transmit the deposit to the

12  Chief Financial Officer Treasurer, who shall deposit such

13  funds for credit to the Textbook Bid Trust Fund and issue his

14  or her official receipt covering the same.

15         Section 277.  Paragraphs (a) and (b) of subsection (5)

16  and subsection (6) of section 233.16, Florida Statutes, are

17  amended to read:

18         233.16  Powers and duties of the Commissioner of

19  Education and the Department of Education in selecting and

20  adopting instructional materials.--

21         (5)  RETURN OF DEPOSITS.--

22         (a)  The successful bidder shall be notified by

23  registered mail of the award of contract; and such bidder

24  shall, within 30 days of receipt of the contract, execute the

25  proper contract and post the required bond.  When such bond

26  and contract have been executed, the department shall notify

27  the Chief Financial Officer Comptroller and request that a

28  warrant be issued against the Textbook Bid Trust Fund payable

29  to the successful bidder in the amount deposited under the

30  provisions of s. 233.15. The Chief Financial Officer

31  

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 1  Comptroller shall issue and forward such warrant to the

 2  department for distribution to the bidder.

 3         (b)  At the same time or prior thereto, the department

 4  shall inform the Chief Financial Officer Comptroller of the

 5  names of the unsuccessful bidders. Upon receipt of such

 6  notice, the Chief Financial Officer Comptroller shall issue

 7  warrants against the Textbook Bid Trust Fund payable to the

 8  unsuccessful bidders in the amounts deposited under the

 9  provisions of s. 233.15 and shall forward such warrants to the

10  department for distribution to the unsuccessful bidders.

11         (6)  DEPOSITS FORFEITED.--Should any successful bidder

12  fail or refuse to execute contract and bond within 30 days of

13  receipt of the contract, the cash deposit shall be forfeited

14  to the state and placed by the Chief Financial Officer

15  Treasurer in the General Revenue Fund.

16         Section 278.  Subsection (3) of section 233.255,

17  Florida Statutes, is amended to read:

18         233.255  Production and dissemination of educational

19  materials and products by department.--

20         (3)  All proceeds from the sale of such educational

21  materials and products shall be remitted to the Chief

22  Financial Officer Treasurer and shall be kept in a separate

23  fund to be known as the "Educational Media and Technology

24  Trust Fund" and, when properly budgeted as approved by the

25  Legislature and the Executive Office of the Governor, used to

26  pay the cost of producing and disseminating educational

27  materials and products to carry out the intent of this act.

28         Section 279.  Subsection (2) of section 236.43, Florida

29  Statutes, is amended to read:

30         236.43  Receiving bids and sale of bonds.--

31  

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 1         (2)  All bonds and refunding bonds issued as provided

 2  by law shall be sold to the highest and best bidder at such

 3  public sale unless sold at a better price or yield basis

 4  within 30 days after failure to receive an acceptable bid at a

 5  duly advertised public sale; provided, that at no time shall

 6  bonds or refunding bonds be sold or exchanged at less than par

 7  value except as specifically authorized by the department; and

 8  provided, further, that the school board shall have the right

 9  to reject all bids and cause a new notice to be given in like

10  manner inviting other bids for such bonds, or to sell all or

11  any part of such bonds to the state board at a price and yield

12  basis which shall not be less advantageous to the school board

13  than that represented by the highest and best bid received.

14  In the marketing of said bonds the school board shall be

15  entitled to have such assistance as can be rendered by the

16  Governor, the Chief Financial Officer State Treasurer, the

17  Commissioner of Education, or any other public state officer

18  or agency.  In determining the highest and best bidder for

19  bonds offered for sale, the net interest cost to the school

20  board as shown in standard bond tables shall govern; provided,

21  that the determination of the school board as to the highest

22  and best bidder shall be final.

23         Section 280.  Subsection (4) of section 236.601,

24  Florida Statutes, is amended to read:

25         236.601  Board of Administration to act as fiscal agent

26  in issuance and sale of motor vehicle anticipation

27  certificates.--

28         (4)  The proceeds of any sale of original bonds or

29  original certificates shall be deposited in the State Treasury

30  to the credit of the particular construction account for which

31  the original bonds or original certificates were issued and

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 1  shall be under the direct control and supervision of the State

 2  Board of Education, and withdrawals from such construction

 3  accounts shall be made only upon warrants signed by the

 4  Comptroller and drawn upon the Chief Financial Officer

 5  Treasurer. Such warrants shall be issued by the Chief

 6  Financial Officer Comptroller only when the vouchers

 7  requesting such warrants are accompanied by the certificates

 8  of the State Board of Education to the effect that such

 9  withdrawals are proper expenditures for the cost of the

10  particular construction account against which the requested

11  warrants are to be drawn.

12         Section 281.  Subsection (2) of section 237.121,

13  Florida Statutes, is amended to read:

14         237.121  Penalty.--

15         (2)  Each member of any school board voting to incur an

16  indebtedness against the district school funds in excess of

17  the expenditure allowed by law, or in excess of any

18  appropriation as adopted in the original official budget or

19  amendments thereto, or to approve or pay any illegal charge

20  against the said funds, and any chair of a school board or

21  superintendent who shall sign a warrant for payment of any

22  such claim or bill of indebtedness against any of the said

23  funds shall be personally liable for the amount, and shall be

24  guilty of malfeasance in office and subject to removal by the

25  Governor. It shall be the duty of the Auditor General or other

26  state official charged by law with the responsibility for

27  auditing school accounts, upon discovering any such illegal

28  expenditure or expenditures in excess of the appropriations in

29  the budget as officially amended, to certify such fact to the

30  Department of Financial Services Banking and Finance, which

31  thereupon shall verify such fact and it shall be the duty of

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 1  the said Department of Financial Services Banking and Finance

 2  to advise the Department of Legal Affairs thereof, and it

 3  shall be the duty of the said Department of Legal Affairs to

 4  cause to be instituted and prosecuted, either through its

 5  office or through any state attorney, proceedings at law or in

 6  equity against such member or members of a school board or

 7  superintendent; provided, that if either of the said officers

 8  do not institute proceedings within 90 days after the audit

 9  has been certified to them by the Department of Financial

10  Services Banking and Finance then any taxpayer may institute

11  suit in his or her own name in behalf of the district.

12         Section 282.  Section 237.181, Florida Statutes, is

13  amended to read:

14         237.181  School funds to be paid to Chief Financial

15  Officer Treasurer or into depository.--

16         (1)  Every tax collector, or other person having moneys

17  which by law go to any district school fund shall at least

18  once each month pay the same over to the depository or

19  depositories designated by the school board for such purpose,

20  and shall provide the school board with a duplicate of the

21  deposit slip.  Every officer having moneys which by law go to

22  any state school fund, shall pay the same to the Chief

23  Financial Officer Treasurer of the state, and he or she the

24  Treasurer shall see that these moneys are deposited to the

25  credit of the proper state school fund.

26         (2)  The school board shall have the authority to

27  designate that funds due it be placed for investment for its

28  account with the State Board of Administration rather than be

29  deposited, and the school board may direct those persons

30  having moneys due it or due any state school fund to pay out

31  

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 1  such funds to the State Board of Administration to make

 2  authorized investments for its account.

 3         Section 283.  Paragraph (b) of subsection (6) of

 4  section 237.211, Florida Statutes, is amended to read:

 5         237.211  School depositories; payments into and

 6  withdrawals from depositories.--

 7         (6)  EXEMPTION FOR SELF-INSURANCE PROGRAMS AND

 8  THIRD-PARTY ADMINISTERED EMPLOYEES' FRINGE BENEFIT PROGRAMS.--

 9         (b)  The school board is authorized to contract with an

10  insurance company or professional administrator who holds a

11  valid certificate of authority issued by the Department of

12  Financial Services Insurance to provide any or all services

13  that a third-party administrator is authorized by law to

14  perform.  Pursuant to such contract, the school board may

15  advance or remit money to the administrator to be deposited in

16  a designated special checking account for paying claims

17  against the school board under its self-insurance programs,

18  and remitting premiums to the providers of insured benefits on

19  behalf of the school board and the participants in such

20  programs, and otherwise fulfilling the obligations imposed

21  upon the administrator by law and the contractual agreements

22  between the school board and the administrator.  The special

23  checking account shall be maintained in a designated district

24  school depository. The school board may replenish such account

25  as often as necessary upon the presentation by the service

26  organization of documentation for claims or premiums due paid

27  equal to the amount of the requested reimbursement.  Such

28  replenishment shall be made by a warrant signed by the chair

29  of the board and countersigned by the superintendent. Such

30  replenishment may be made by electronic, telephonic, or other

31  medium, and each transfer shall be confirmed in writing and

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 1  signed by the superintendent or his or her designee.  The

 2  provisions of strict accountability of all funds and an annual

 3  audit by an independent certified public accountant as

 4  provided in s. 230.23(10)(k) shall apply to this subsection.

 5         Section 284.  Paragraph (b) of subsection (1) and

 6  paragraph (b) or subsection (2) of section 238.11, Florida

 7  Statutes, are amended to read:

 8         238.11  Collection of contributions.--

 9         (1)  The collection of contributions shall be as

10  follows:

11         (b)  Each employer shall transmit monthly to the

12  Department of Management Services a warrant for the total

13  amount of such deductions. Each employer shall also transmit

14  monthly to the department a warrant for such employer

15  contribution set aside as provided for in paragraph (a) of

16  this subsection. The department, after making records of all

17  such warrants, shall transmit them to the Department of

18  Financial Services Banking and Finance for delivery to the

19  Chief Financial Officer Treasurer of the state who shall

20  collect them.

21         (2)  The collection of the state contribution shall be

22  made as follows:

23         (b)  The Department of Management Services shall

24  certify one-fourth of the amount so ascertained for each year

25  to the Chief Financial Officer Comptroller on or before the

26  last day of July, October, January, and April of each year.

27  The Chief Financial Officer Comptroller shall, on or before

28  the first day of August, November, February, and May of each

29  year, draw his or her warrant or warrants on the Treasurer for

30  the respective amounts due the several funds of the retirement

31  system. On the receipt of the warrant or warrants of the

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 1  Comptroller, the Treasurer shall immediately transfer to the

 2  several funds of the retirement system the amounts due.

 3         Section 285.  Section 238.15, Florida Statutes, is

 4  amended to read:

 5         238.15  Exemption of funds from taxation, execution,

 6  and assignment.--The pensions, annuities or any other benefits

 7  accrued or accruing to any person under the provisions of this

 8  chapter and the accumulated contributions and cash securities

 9  in the funds created under this chapter are exempted from any

10  state, county or municipal tax of the state, and shall not be

11  subject to execution or attachment or to any legal process

12  whatsoever, and shall be unassignable, except:

13         (1)  That any teacher who has retired shall have the

14  right and power to authorize in writing the Department of

15  Management Services to deduct from his or her monthly

16  retirement allowance money for the payment of the premiums on

17  group insurance for hospital, medical and surgical benefits,

18  under a plan or plans for such benefits approved in writing by

19  the Chief Financial Officer Insurance Commissioner and

20  Treasurer of the state, and upon receipt of such request the

21  department shall make the monthly payments as directed; and

22         (2)  As may be otherwise specifically provided for in

23  this chapter.

24         Section 286.  Section 238.172, Florida Statutes, is

25  amended to read:

26         238.172  Proof required.--For any person to obtain the

27  allowance as set forth in s. 238.171 the said person shall

28  make such proof of the facts and conditions entitling him or

29  her to the said allowance as shall reasonably be required by

30  the state board, and when such proof has been submitted to the

31  satisfaction of the state board, the Chief Financial Officer

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 1  State Treasurer shall pay to such person the monthly allowance

 2  herein provided for on warrants drawn by the Comptroller.

 3         Section 287.  Section 238.173, Florida Statutes, is

 4  amended to read:

 5         238.173  Monthly allowance to widows or widowers of

 6  pensioners.--When any teacher, drawing pension under s.

 7  238.171, shall die leaving surviving a widow or widower to

 8  whom such pensioner has been married for a continuous period

 9  of at least 10 years immediately prior to his or her death,

10  and from whom no dissolution of marriage is obtained, such

11  widow or widower, upon proof of marriage to and continuation

12  of marriage for the minimum period with, and death of, said

13  pensioner, shall be granted a pension payable from the date of

14  the death of said pensioner, and at the same time and rate as

15  other pensions paid under s. 238.171.  The Chief Financial

16  Officer Comptroller is hereby authorized and directed to draw

17  his or her warrants in payment of such pensions so long as

18  such widow or widower shall remain unmarried and continue to

19  be a resident of the state; provided, however, that nothing

20  herein contained shall be so construed as to allow such

21  pension to be paid to any widow or widower where such widow or

22  widower of a deceased pensioner under this section receives a

23  like pension in his or her own right as a retired school

24  teacher.

25         Section 288.  Paragraph (b) of subsection (5) and

26  paragraph (f) of subsection (6) of section 240.551, Florida

27  Statutes, are amended to read:

28         240.551  Florida Prepaid College Program.--

29         (5)  PROGRAM ADMINISTRATION.--

30         (b)  The board shall consist of six seven members to be

31  composed of the Chief Financial Officer Insurance Commissioner

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 1  and Treasurer, the Comptroller, the Chancellor of the Board of

 2  Regents, the Executive Director of the State Board of

 3  Community Colleges, and three members appointed by the

 4  Governor and subject to confirmation by the Senate.  Each

 5  member appointed by the Governor shall possess knowledge,

 6  skill, and experience in the areas of accounting, actuary,

 7  risk management, or investment management.  Each member of the

 8  board not appointed by the Governor may name a designee to

 9  serve the board on behalf of the member; however, any designee

10  so named shall meet the qualifications required of

11  gubernatorial appointees to the board. Members appointed by

12  the Governor shall serve terms of 3 years.  Any person

13  appointed to fill a vacancy on the board shall be appointed in

14  a like manner and shall serve for only the unexpired term.

15  Any member shall be eligible for reappointment and shall serve

16  until a successor qualifies. Members of the board shall serve

17  without compensation but shall be reimbursed for per diem and

18  travel in accordance with s. 112.061.  Each member of the

19  board shall file a full and public disclosure of his or her

20  financial interests pursuant to s. 8, Art. II of the State

21  Constitution and corresponding statute.

22         (6)  FLORIDA PREPAID COLLEGE BOARD; DUTIES.--The board

23  shall:

24         (f)  Solicit proposals and contract, pursuant to s.

25  287.057, for product providers to develop investment

26  portfolios on behalf of the board to achieve the purposes of

27  this section. Product providers shall be limited to authorized

28  insurers as defined in s. 624.09, banks as defined in s.

29  658.12, associations as defined in s. 665.012, authorized

30  Securities and Exchange Commission investment advisers, and

31  investment companies as defined in the Investment Company Act

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 1  of 1940. All product providers shall have their principal

 2  place of business and corporate charter located and registered

 3  in the United States. In addition, each product provider shall

 4  agree to meet the obligations of the board to qualified

 5  beneficiaries if moneys in the fund fail to offset the

 6  obligations of the board as a result of imprudent investing by

 7  such provider. Each authorized insurer shall evidence superior

 8  performance overall on an acceptable level of surety in

 9  meeting its obligations to its policyholders and other

10  contractual obligations. Only qualified public depositories

11  approved by the Chief Financial Officer Insurance Commissioner

12  and Treasurer shall be eligible for board consideration. Each

13  investment company shall provide investment plans as specified

14  within the request for proposals. The goals of the board in

15  selecting a product provider company shall be to provide all

16  purchasers with the most secure, well-diversified, and

17  beneficially administered postsecondary education expense plan

18  possible, to allow all qualified firms interested in providing

19  such services equal consideration, and to provide such

20  services to the state at no cost and to the purchasers at the

21  lowest cost possible. Evaluations of proposals submitted

22  pursuant to this paragraph shall include, but not be limited

23  to, the following criteria:

24         1.  Fees and other costs charged to purchasers that

25  affect account values or operational costs related to the

26  program.

27         2.  Past and current investment performance, including

28  investment and interest rate history, guaranteed minimum rates

29  of interest, consistency of investment performance, and any

30  terms and conditions under which moneys are held.

31  

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 1         3.  Past experience and ability to provide timely and

 2  accurate service in the areas of records administration,

 3  benefit payments, investment management, and complaint

 4  resolution.

 5         4.  Financial history and current financial strength

 6  and capital adequacy to provide products, including operating

 7  procedures and other methods of protecting program assets.

 8         Section 289.  Subsection (2) of section 242.331,

 9  Florida Statutes, is amended to read:

10         242.331  Florida School for the Deaf and the Blind;

11  board of trustees.--

12         (2)  The board of trustees shall elect a chair

13  annually. The trustees shall be reimbursed for travel expenses

14  as provided in s. 112.061, the accounts of which shall be paid

15  by the Chief Financial Officer Treasurer upon itemized

16  vouchers duly approved by the chair.

17         Section 290.  Subsection (2) of section 242.341,

18  Florida Statutes, is amended to read:

19         242.341  Florida School for the Deaf and the Blind;

20  board of trustees; management flexibility.--

21         (2)  Notwithstanding the provisions of s. 216.181 and

22  pursuant to the provisions of s. 216.351, but subject to any

23  requirements imposed in the General Appropriations Act, no

24  lump-sum plan is required to implement the special categories,

25  program categories, or lump-sum appropriations. Upon release

26  of the special categories, program categories, or lump-sum

27  appropriations to the board of trustees, the Chief Financial

28  Officer Comptroller, upon the request of the board of

29  trustees, shall transfer or reallocate funds to or among

30  accounts established for disbursement purposes. The board of

31  

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 1  trustees shall maintain records to account for the original

 2  appropriation.

 3         Section 291.  Subsection (2) of section 245.13, Florida

 4  Statutes, is amended to read:

 5         245.13  Fees; authority to accept additional funds;

 6  annual audit.--

 7         (2)  The anatomical board is hereby empowered to

 8  receive money from public or private sources in addition to

 9  the fees collected from the institution or association to

10  which the bodies are distributed to be used to defray the

11  costs of embalming, handling, shipping, storage, cremation,

12  and other costs relating to the obtaining and use of such

13  bodies as described in this chapter; the anatomical board is

14  empowered to pay the reasonable expenses incurred by any

15  person delivering the bodies as described in this chapter to

16  the anatomical board and is further empowered to enter into

17  contracts and perform such other acts as are necessary to the

18  proper performance of its duties; a complete record of all

19  fees and other financial transactions of said anatomical board

20  shall be kept and audited annually by the Department of

21  Financial Services Banking and Finance, and a report of such

22  audit shall be made annually to the University of Florida.

23         Section 292.  Subsection (3) of section 250.22, Florida

24  Statutes, is amended to read:

25         250.22  Retirement.--

26         (3)  Sufficient money to meet the requirements of this

27  section is hereby appropriated out of any moneys in the State

28  Treasury not otherwise appropriated, and payments under this

29  section will be made to those eligible to receive the same on

30  the first day of each calendar month from the General Revenue

31  Fund by the Chief Financial Officer Comptroller upon

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 1  prescribed pay vouchers certified to by the Adjutant General

 2  of the state.

 3         Section 293.  Subsections (3), (4), and (5) of section

 4  250.24, Florida Statutes, are amended to read:

 5         250.24  Pay and expenses; appropriation; procedures.--

 6         (3)  Notwithstanding the provision of s. 216.271,

 7  moneys for pay and allowances of the troops ordered out in

 8  active service of the state shall be deposited in a separate

 9  revolving fund, which shall be approved by the Chief Financial

10  Officer Comptroller and shall be subject to the provisions of

11  s. 18.101(2).  The Department of Military Affairs shall

12  administer the fund.  Frequency of payments to such troops

13  shall be at the discretion of the Adjutant General. The

14  Department of Military Affairs shall present to the Chief

15  Financial Officer Comptroller audit documentation of such

16  payments.  The Department of Military Affairs shall maintain

17  all employee records relating to payments made pursuant to

18  this subsection and shall furnish to the Chief Financial

19  Officer Comptroller the information necessary to update the

20  payroll master record of each employee.

21         (4)  The fund balance remaining in this separate

22  revolving fund after a final accounting of all expenditures

23  for pay and allowances of the troops shall be returned for

24  deposit to the State Treasury within 45 days after the

25  termination of active duty of the troops, except that an

26  operating balance in an amount mutually agreed upon by the

27  Chief Financial Officer Comptroller and the Department of

28  Military Affairs shall be retained in the fund.

29         (5)  Vouchers for expenditures other than such pay and

30  allowances shall be presented to the Chief Financial Officer

31  Comptroller for approval and payment as prescribed by law.

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 1         Section 294.  Section 250.25, Florida Statutes, is

 2  amended to read:

 3         250.25  Governor and Chief Financial Officer

 4  Comptroller authorized to borrow money.--When there is no

 5  state appropriation available for the pay and expenses of

 6  troops called out in active service to preserve the peace or

 7  in aid of civil authorities, and funds are not immediately

 8  available for this purpose, the Governor and Chief Financial

 9  Officer Comptroller may borrow money to make such payments, in

10  such sum or sums as may from time to time be required, and any

11  such loans, so obtained, shall be promptly repaid out of the

12  first funds that become available for such use.

13         Section 295.  Section 250.26, Florida Statutes, is

14  amended to read:

15         250.26  Transfer of funds.--Where the available funds

16  are not sufficient for the purposes specified in ss. 250.23,

17  250.24, and 250.34, the Governor and Chief Financial Officer

18  Comptroller may transfer from any available fund in the State

19  Treasury, such sum as may be necessary to meet such emergency,

20  and the said moneys, so transferred, shall be repaid to the

21  fund from which transferred when moneys become available for

22  that purpose by legislative appropriation or otherwise.

23         Section 296.  Subsection (3) of section 250.34, Florida

24  Statutes, is amended to read:

25         250.34  Injury or death in active service.--

26         (3)  After the expiration of 1 year from the date of

27  injury or disability, such individual shall be provided

28  hospitalization, medical services and supplies, and

29  compensation for wages and compensation for disability based

30  on the average weekly wages of such injured individual on pay

31  status in the active service of the state or in his or her

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 1  civilian occupation or employment, whichever is greater, in

 2  amounts provided under chapter 440 [F. S. 1973], as if such

 3  individual were covered under the Workers' Compensation Law,

 4  except that payments made during the first year after such

 5  injury shall not be duplicated after the expiration of that

 6  year. The Division of Risk Management of the Department of

 7  Financial Services Insurance is responsible for processing all

 8  claims for benefits under this subsection.

 9         Section 297.  Section 252.62, Florida Statutes, is

10  amended to read:

11         252.62  Chief Financial Officer's Comptroller's powers

12  in a state of emergency.--

13         (1)  It is the purpose and intent of this section to

14  provide the Chief Financial Officer Comptroller, as head of

15  the Department of Financial Services Banking and Finance, the

16  authority to make temporary modifications to or suspensions of

17  the financial institutions codes in order to expedite the

18  recovery of communities affected by a disaster or other

19  emergency and in order to encourage financial institutions to

20  meet the credit, deposit, and other financial needs of such

21  communities.

22         (2)(a)  When the Governor declares a state of emergency

23  pursuant to s. 252.36, the Chief Financial Officer Comptroller

24  may issue:

25         1.  One or more general orders applicable to all

26  financial institutions that are subject to the financial

27  institutions codes and that serve any portion of the area of

28  the state under the state of emergency; or

29         2.  One or more specific orders to particular financial

30  institutions that are subject to the financial institution

31  codes and that normally derive more than 60 percent of their

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 1  deposits from persons in the area of the state under the state

 2  of emergency,

 3  

 4  which orders may modify or suspend, as to those institutions,

 5  all or any part of the financial institutions codes, as

 6  defined in s. 655.005, or any applicable rule, consistent with

 7  the stated purposes of the financial institutions codes and

 8  with maintaining the safety and soundness of the financial

 9  institutions system in this state.

10         (b)  An order issued by the Chief Financial Officer

11  Comptroller under this section becomes effective upon issuance

12  and continues for 120 days unless it is terminated by the

13  Chief Financial Officer Comptroller.  The Chief Financial

14  Officer Comptroller may extend an order for one additional

15  period of 120 days if he or she the Comptroller determines

16  that the emergency conditions that gave rise to the

17  Comptroller's initial order still exist.  The Legislature, by

18  concurrent resolution, may terminate any order issued under

19  this section.

20         (3)  The Chief Financial Officer Comptroller shall

21  publish, in the next available publication of the Florida

22  Administrative Weekly, a copy of the text of any order issued

23  under this section, together with a statement describing the

24  modification or suspension and explaining how the modification

25  or suspension will facilitate recovery from the emergency and

26  maintain the safety and soundness of financial institutions in

27  this state.

28         Section 298.  Subsection (7) of section 252.87, Florida

29  Statutes, is amended to read:

30         252.87  Supplemental state reporting requirements.--

31  

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 1         (7)  The department shall avoid duplicative reporting

 2  requirements by utilizing the reporting requirements of other

 3  state agencies that regulate hazardous materials to the extent

 4  feasible and shall request the information authorized under

 5  EPCRA. With the advice and consent of the State Emergency

 6  Response Commission for Hazardous Materials, the department

 7  may require by rule that the maximum daily amount entry on the

 8  chemical inventory report required under s. 312 of EPCRA

 9  provide for reporting in estimated actual amounts.  The

10  department may also require by rule an entry for the Federal

11  Employer Identification Number on this report.  To the extent

12  feasible, the department shall encourage and accept required

13  information in a form initiated through electronic data

14  interchange and shall describe by rule the format, manner of

15  execution, and method of electronic transmission necessary for

16  using such form. To the extent feasible, the Department of

17  Financial Services Insurance, the Department of Agriculture

18  and Consumer Services, the Department of Environmental

19  Protection, the Public Service Commission, the Department of

20  Revenue, the Department of Labor and Employment Security, and

21  other state agencies which regulate hazardous materials shall

22  coordinate with the department in order to avoid duplicative

23  requirements contained in each agency's respective reporting

24  or registration forms. The other state agencies that inspect

25  facilities storing hazardous materials and suppliers and

26  distributors of covered substances shall assist the department

27  in informing the facility owner or operator of the

28  requirements of this part. The department shall provide the

29  other state agencies with the necessary information and

30  materials to inform the owners and operators of the

31  

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 1  requirements of this part to ensure that the budgets of these

 2  agencies are not adversely affected.

 3         Section 299.  Subsection (1) of section 253.02, Florida

 4  Statutes, is amended to read:

 5         253.02  Board of trustees; powers and duties.--

 6         (1)  For the purpose of assuring the proper application

 7  of the Internal Improvement Trust Fund and the Land

 8  Acquisition Trust Fund for the purposes of this chapter, the

 9  land provided for in ss. 253.01 and 253.03, and all the funds

10  arising from the sale thereof, after paying the necessary

11  expense of selection, management, and sale, are irrevocably

12  vested in a board of four seven trustees, to wit: The

13  Governor, the Secretary of State, the Attorney General, the

14  Chief Financial Officer Comptroller, the State Treasurer, the

15  Commissioner of Education, and the Commissioner of Agriculture

16  and their successors in office, to hold the same in trust for

17  the uses and purposes provided in this chapter, with the power

18  to sell and transfer said lands to the purchasers and receive

19  payment for the same, and invest the surplus moneys arising

20  therefrom, from time to time, in stocks of the United States,

21  stocks of the several states, or the internal improvement

22  bonds issued under the provisions of law; also, the surplus

23  interest accruing from such investments.  Said board of

24  trustees have all the rights, powers, property, claims,

25  remedies, actions, suits, and things whatsoever belonging to

26  them, or appertaining before and at the time of the enactment

27  hereof, and they shall remain subject to and pay, fulfill,

28  perform, and discharge all debts, duties, and obligations of

29  their trust, existing at the time of the enactment hereof or

30  provided in this chapter.

31  

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 1         Section 300.  Subsection (14) of section 253.025,

 2  Florida Statutes, is amended to read:

 3         253.025  Acquisition of state lands for purposes other

 4  than preservation, conservation, and recreation.--

 5         (14)  Any agency that acquires land on behalf of the

 6  board of trustees is authorized to request disbursement of

 7  payments for real estate closings in accordance with a written

 8  authorization from an ultimate beneficiary to allow a third

 9  party authorized by law to receive such payment provided the

10  Chief Financial Officer Comptroller determines that such

11  disbursement is consistent with good business practices and

12  can be completed in a manner minimizing costs and risks to the

13  state.

14         Section 301.  Subsection (1) of section 255.03, Florida

15  Statutes, is amended to read:

16         255.03  Proceeds of insurance to be paid into State

17  Treasury; disbursement of funds.--

18         (1)  The proceeds from the insurance of any state

19  building or state property covered by insurance which may be

20  destroyed in whole or in part by fire, or other damage, shall

21  be paid into the State Treasury and constitute a fund for the

22  rebuilding or replacing of such property, and the Chief

23  Financial Officer Comptroller may draw his or her warrant on

24  the State Treasurer for such amounts, not to exceed the

25  proceeds so paid in, as may be approved by the board or

26  persons having the direct supervision and control of such

27  buildings or property for the purpose of rebuilding or

28  replacing the same.

29         Section 302.  Subsections (1) and (2) of section

30  255.052, Florida Statutes, are amended to read:

31  

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 1         255.052  Substitution of securities for amounts

 2  retained on public contracts.--

 3         (1)  Under any contract made or awarded by the state or

 4  any county, city, or political subdivision thereof, or other

 5  public authority, the contractor may, from time to time,

 6  withdraw the whole or any portion of the amount retained for

 7  payments to the contractor pursuant to the terms of the

 8  contract, upon depositing with the Chief Financial Officer

 9  State Treasurer:

10         (a)  United States Treasury bonds, United States

11  Treasury notes, United States Treasury certificates of

12  indebtedness, or United States Treasury bills;

13         (b)  Bonds or notes of the State of Florida; or

14         (c)  Bonds of any political subdivision in the state;

15  or

16         (d)  Cash delivered to the State Treasury for the

17  Treasury Cash Deposit Trust Fund; or

18         (e)  Certificates of deposit from state or national

19  banks or state or federal savings and loan associations in the

20  state. Certificates of deposit shall possess the eligibility

21  characteristics defined in s. 625.52.

22  

23  No amount shall be withdrawn in excess of the market value of

24  the securities listed in paragraphs (a), (b), and (c) at the

25  time of withdrawal or of the par value of such securities,

26  whichever is lower.

27         (2)  The Chief Financial Officer Treasurer shall

28  regularly, on a regular basis, collect all interest or income

29  on the obligations so deposited, and shall pay the same, when

30  and as collected, to the contractor who deposited the

31  obligations.  If the deposit is in the form of coupon bonds,

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 1  the Chief Financial Officer Treasurer shall deliver each

 2  coupon as it matures to the contractor.

 3  

 4  Nothing in this section shall be construed to require the

 5  state or any county, city, or political subdivision thereof,

 6  or other public authority, to allow the contractor to withdraw

 7  the whole or any portion of the amount retained for payments

 8  to the contractor except pursuant to the terms of the

 9  contract.

10         Section 303.  Subsection (2) of section 255.258,

11  Florida Statutes, is amended to read:

12         255.258  Shared savings financing of energy

13  conservation in state-owned buildings.--

14         (2)  Except as noted in subsection (4), state agency

15  shared savings contracts shall be developed in accordance with

16  a model contract to be developed by the department in

17  cooperation with the Attorney General, the Chief Financial

18  Officer Comptroller, and the Department of Community Affairs.

19  The model contract shall include the methodology for

20  calculating base line energy costs, a procedure for revising

21  these costs should the state institute additional energy

22  conservation features or building use change, a requirement

23  for a performance bond guaranteeing that the facility will be

24  restored to the original condition in the event of default, a

25  provision for early buy-out, a clause specifying who will be

26  responsible for maintaining the equipment, and a provision

27  allowing the disposal of equipment at the end of the contract.

28  No agency shall substantially alter the provisions described

29  in the model without the permission of the department.

30         Section 304.  Subsection (8) of section 255.503,

31  Florida Statutes, is amended to read:

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 1         255.503  Powers of the Department of Management

 2  Services.--The Department of Management Services shall have

 3  all the authority necessary to carry out and effectuate the

 4  purposes and provisions of this act, including, but not

 5  limited to, the authority to:

 6         (8)  Create and establish funds and accounts for the

 7  purpose of debt service reserves, for the matching of the

 8  timing and the amount of available funds and debt service

 9  charges, for sinking funds, for capital depreciation reserves,

10  for operating reserves, for capitalized interest and moneys

11  not required for immediate disbursement to acquire all or a

12  portion of any facility, and for any other reserves, funds, or

13  accounts reasonably necessary to carry out the provisions of

14  this act and to invest in authorized investments any moneys

15  held in such funds and accounts, provided such investments

16  will be made on behalf of the Department of Management

17  Services by the State Board of Administration or the Chief

18  Financial Officer Treasurer, as appropriate.

19         Section 305.  Section 255.521, Florida Statutes, is

20  amended to read:

21         255.521  Failure of payment.--Should an agency fail to

22  make a timely payment of the pool pledged rentals or charges

23  as required by this act, the Chief Financial Officer

24  Comptroller shall withhold general revenues of the agency in

25  an amount sufficient to pay the rentals and charges due and

26  unpaid from such agency.  The Chief Financial Officer

27  Comptroller shall forward such said general revenue amounts to

28  the Department of Management Services in payment of such

29  rents.

30         Section 306.  Section 257.22, Florida Statutes, is

31  amended to read:

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 1         257.22  Division of Library and Information Services;

 2  allocation of funds.--Any moneys that may be appropriated for

 3  use by a county, a municipality, a special district, or a

 4  special tax district for the maintenance of a library or

 5  library service shall be administered and allocated by the

 6  Division of Library and Information Services in the manner

 7  prescribed by law. On or before December 1 of each year, the

 8  division shall certify to the Chief Financial Officer

 9  Comptroller the amount to be paid to each county,

10  municipality, special district, or special tax district, and

11  the Chief Financial Officer Comptroller shall issue warrants

12  to the respective boards of county commissioners or chief

13  municipal executive authorities for the amount so allocated.

14         Section 307.  Subsection (2) of section 258.014,

15  Florida Statutes, is amended to read:

16         258.014  Fees for use of state parks.--

17         (2)  Any moneys received in trust by the division by

18  gift, devise, appropriation, or otherwise shall, subject to

19  the terms of such trust, be deposited with the Chief Financial

20  Officer State Treasurer in a fund to be known as the "State

21  Park Trust Fund," and shall be subject to withdrawal upon

22  application of such said division for expenditure or

23  investment in accordance with the terms of the said trust.

24  Unless prohibited by the terms of the trust by which the said

25  moneys are derived, all of such moneys may be invested as

26  provided by law.

27         Section 308.  Subsection (6) and paragraph (e) of

28  subsection (12) of section 259.032, Florida Statutes, are

29  amended to read:

30         259.032  Conservation and Recreation Lands Trust Fund;

31  purpose.--

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 1         (6)  Moneys in the fund not needed to meet obligations

 2  incurred under this section shall be deposited with the Chief

 3  Financial Officer Treasurer to the credit of the fund and may

 4  be invested in the manner provided by law. Interest received

 5  on such investments shall be credited to the Conservation and

 6  Recreation Lands Trust Fund.

 7         (12)

 8         (e)  Payment in lieu of taxes pursuant to this

 9  subsection shall be made annually to qualifying counties and

10  local governments after certification by the Department of

11  Revenue that the amounts applied for are reasonably

12  appropriate, based on the amount of actual taxes paid on the

13  eligible property, and after the Department of Environmental

14  Protection has provided supporting documents to the Chief

15  Financial Officer Comptroller and has requested that payment

16  be made in accordance with the requirements of this section.

17  

18  For the purposes of this subsection, "local government"

19  includes municipalities, the county school board, mosquito

20  control districts, and any other local government entity which

21  levies ad valorem taxes, with the exception of a water

22  management district.

23         Section 309.  Subsection (18) of section 259.041,

24  Florida Statutes, is amended to read:

25         259.041  Acquisition of state-owned lands for

26  preservation, conservation, and recreation purposes.--

27         (18)  Any agency authorized to acquire lands on behalf

28  of the board of trustees is authorized to request disbursement

29  of payments for real estate closings in accordance with a

30  written authorization from an ultimate beneficiary to allow a

31  third party authorized by law to receive such payment provided

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 1  the Chief Financial Officer Comptroller determines that such

 2  disbursement is consistent with good business practices and

 3  can be completed in a manner minimizing costs and risks to the

 4  state.

 5         Section 310.  Subsection (2) of section 265.53, Florida

 6  Statutes, is amended to read:

 7         265.53  Application for indemnity agreement.--

 8         (2)  The Department of Financial Services Insurance

 9  shall determine whether applicants qualify for indemnity

10  coverage under ss. 265.51-265.56.  Qualification criteria,

11  which shall be set by rule, shall include factors such as:

12         (a)  Physical security of an applicant's exhibition

13  facilities and of the means of transportation of the eligible

14  items from the borrower to the lender.

15         (b)  Experience and qualifications of an applicant's

16  director, curator, registrar, or other staff.

17         (c)  Eligibility of an applicant's exhibition

18  facilities for commercial insurance coverage of works of art

19  displayed there.

20         (d)  Availability of proper equipment to protect works

21  of art from damage from extremes of temperature or humidity or

22  exposure to glare, dust, or corrosion.

23  

24  The department may consult with such private insurance and art

25  experts as reasonably necessary to carry out the intent of

26  this subsection.

27         Section 311.  Subsections (1) and (3) of section

28  265.55, Florida Statutes, are amended to read:

29         265.55  Claims.--

30         (1)  The Division of Risk Management of the Department

31  of Financial Services Insurance may prescribe rules providing

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 1  for prompt adjustment of valid claims for losses which are

 2  covered by an indemnity agreement made pursuant to the

 3  provisions of ss. 265.51-265.56, including rules providing for

 4  the employment of consultants and for the arbitration of

 5  issues relating to the dollar value of damages involving less

 6  than total loss or destruction of such covered objects.

 7         (3)  The authorization for payment delineated in

 8  subsection (2) shall be forwarded to the Chief Financial

 9  Officer Comptroller. The Chief Financial Officer Comptroller

10  shall take appropriate action to execute authorized payment of

11  the claim from the Working Capital Fund, as defined in s.

12  215.32.

13         Section 312.  Paragraph (d) of subsection (3) of

14  section 267.075, Florida Statutes, is amended to read:

15         267.075  The Grove Advisory Council; creation;

16  membership; purposes.--

17         (3)

18         (d)  Members of the council shall serve without

19  compensation or honorarium but shall be entitled to receive

20  reimbursement for per diem and travel expenses as provided in

21  s. 112.061. All expenses of the council shall be paid from

22  appropriations to be made by the Legislature to the Department

23  of State. All vouchers shall be approved by the Division of

24  Historical Resources before being submitted to the Chief

25  Financial Officer Comptroller for payment.

26         Section 313.  Paragraph (c) of subsection (2) of

27  section 272.18, Florida Statutes, is amended to read:

28         272.18  Governor's Mansion Commission.--

29         (2)

30         (c)  Members of the commission shall serve without

31  compensation or honorarium but shall be entitled to receive

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 1  reimbursement for per diem and travel expenses as provided in

 2  s. 112.061. All expenses of the commission shall be paid from

 3  appropriations to be made by the Legislature to the Department

 4  of Management Services for that purpose.  The commission shall

 5  submit its budgetary requests to the Department of Management

 6  Services for approval and inclusion in the legislative budget

 7  request of the department. All vouchers shall be approved by

 8  the secretary of the Department of Management Services before

 9  being submitted to the Chief Financial Officer Comptroller for

10  payment.

11         Section 314.  Subsections (9), (11), (17), (18), (19),

12  and (24), paragraph (f) of subsection (26), and subsections

13  (29), (30), and (31) of section 280.02, Florida Statutes, are

14  amended to read:

15         280.02  Definitions.--As used in this chapter, the

16  term:

17         (9)  "Custodian" means the Chief Financial Officer

18  Treasurer or any bank, savings association, or trust company

19  that:

20         (a)  Is organized and existing under the laws of this

21  state, any other state, or the United States;

22         (b)  Has executed all forms required under this chapter

23  or any rule adopted hereunder;

24         (c)  Agrees to be subject to the jurisdiction of the

25  courts of this state, or of courts of the United States which

26  are located within this state, for the purpose of any

27  litigation arising out of this chapter; and

28         (d)  Has been approved by the Chief Financial Officer

29  Treasurer to act as a custodian.

30         (11)  "Effective date of notice of withdrawal or order

31  of discontinuance" pursuant to s. 280.11(3) means that date

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 1  which is set out as such in any notice of withdrawal or order

 2  of discontinuance from the Chief Financial Officer Treasurer.

 3         (17)  "Operating subsidiary" means the qualified public

 4  depository's 100-percent owned corporation that has ownership

 5  of pledged collateral. The operating subsidiary may have no

 6  powers beyond those that its parent qualified public

 7  depository may itself exercise. The use of an operating

 8  subsidiary is at the discretion of the qualified public

 9  depository and must meet the Chief Financial Officer's

10  Treasurer's requirements.

11         (18)  "Oversight board" means the qualified public

12  depository oversight board created in s. 280.071 for the

13  purpose of safeguarding the integrity of the public deposits

14  program and preventing the realization of loss assessments

15  through standards, policies, and recommendations for actions

16  to the Chief Financial Officer Treasurer.

17         (19)  "Pledged collateral" means securities or cash

18  held separately and distinctly by an eligible custodian for

19  the benefit of the Chief Financial Officer Treasurer to be

20  used as security for Florida public deposits. This includes

21  maturity and call proceeds.

22         (24)  "Public depositor" means the official custodian

23  of funds for a governmental unit who is Treasurer or other

24  Chief Financial Officer or designee responsible for handling

25  public deposits.

26         (26)  "Qualified public depository" means any bank,

27  savings bank, or savings association that:

28         (f)  Has been designated by the Chief Financial Officer

29  Treasurer as a qualified public depository.

30         (29)  "Treasurer" means the Treasurer of the State of

31  Florida.

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 1         (29)(30)  "Chief Financial Officer's "Treasurer's

 2  custody" is a collateral arrangement governed by a contract

 3  between a designated Chief Financial Officer's Treasurer's

 4  custodian and the Chief Financial Officer Treasurer. This

 5  arrangement requires collateral to be in the Chief Financial

 6  Officer's Treasurer's name in order to perfect the security

 7  interest.

 8         (30)(31)  "Triggering events" are events set out in s.

 9  280.041 which give the Chief Financial Officer Treasurer the

10  right to:

11         (a)  Instruct the custodian to transfer securities

12  pledged, interest payments, and other proceeds of pledged

13  collateral not previously credited to the pledgor.

14         (b)  Demand payment under letters of credit.

15         Section 315.  Subsections (1), (2), (5), (6), (7), and

16  (9) of section 280.04, Florida Statutes, are amended to read:

17         280.04  Collateral for public deposits; general

18  provisions.--

19         (1)  The Chief Financial Officer Treasurer shall

20  determine the collateral requirements and collateral pledging

21  level for each qualified public depository following

22  procedures established by rule. These procedures shall include

23  numerical parameters for 25-percent, 50-percent, 125-percent,

24  and 200-percent pledge levels based on nationally recognized

25  financial rating services information and established

26  financial performance guidelines.

27         (2)  A qualified public depository may not accept or

28  retain any public deposit which is required to be secured

29  unless it has deposited with the Chief Financial Officer

30  Treasurer eligible collateral at least equal to the greater

31  of:

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 1         (a)  The average daily balance of public deposits that

 2  does not exceed the lesser of its capital account or 20

 3  percent of the pool figure multiplied by the depository's

 4  collateral-pledging level, plus the greater of:

 5         1.  One hundred twenty-five percent of the average

 6  daily balance of public deposits in excess of capital

 7  accounts; or

 8         2.  One hundred twenty-five percent of the average

 9  daily balance of public deposits in excess of 20 percent of

10  the pool figure.

11         (b)  Twenty-five percent of the average monthly balance

12  of public deposits.

13         (c)  One hundred twenty-five percent of the average

14  daily balance of public deposits if the qualified public

15  depository:

16         1.  Has been established for less than 3 years;

17         2.  Has experienced material decreases in its capital

18  accounts; or

19         3.  Has an overall financial condition that is

20  materially deteriorating.

21         (d)  Two hundred percent of an established maximum

22  amount of public deposits that has been mutually agreed upon

23  by and between the Chief Financial Officer Treasurer and the

24  qualified public depository.

25         (e)  Minimum required collateral of $100,000.

26         (f)  An amount as required in special instructions from

27  the Chief Financial Officer Treasurer to protect the integrity

28  of the public deposits program.

29         (5)  Additional collateral of 20 percent of required

30  collateral is necessary if a valuation date other than the

31  close of business as described below has been approved for the

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 1  qualified public depository and the required collateral is

 2  found to be insufficient based on the Chief Financial

 3  Officer's Treasurer's valuation.

 4         (6)  Each qualified public depository shall value its

 5  collateral in the following manner; it must:

 6         (a)  Use a nationally recognized source.

 7         (b)  Use market price, quality ratings, and pay-down

 8  factors as of the close of business on the last banking day in

 9  the reported month, or as of a date approved by the Chief

10  Financial Officer Treasurer.

11         (c)  Report any material decline in value that occurs

12  before the date of mailing the monthly report, required in s.

13  280.16, to the Chief Financial Officer Treasurer.

14         (d)  Use 100 percent of the maximum amount available

15  under Federal Home Loan Bank letters of credit as market

16  value.

17         (7)  A qualified public depository shall pledge,

18  deposit, or issue additional eligible collateral between

19  filing periods of the monthly report required in s. 280.16

20  when notified by the Chief Financial Officer Treasurer that

21  current market value of collateral does not meet required

22  collateral.  The pledge, deposit, or issuance of such

23  additional collateral shall be made within 2 business days

24  after the Chief Financial Officer's Treasurer's notification.

25         (9)  The Chief Financial Officer Treasurer shall adopt

26  rules for the establishment of collateral requirements,

27  collateral pledging levels, required collateral calculations,

28  and market value and clarifying terms.

29         Section 316.  Section 280.041, Florida Statutes, is

30  amended to read:

31  

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 1         280.041  Collateral arrangements; agreements,

 2  provisions, and triggering events.--

 3         (1)  Eligible collateral listed in s. 280.13 may be

 4  pledged, deposited, or issued using the following collateral

 5  arrangements as approved by the Chief Financial Officer

 6  Treasurer for a qualified public depository or operating

 7  subsidiary, if one is used, to meet required collateral:

 8         (a)  Regular custody arrangement for collateral pledged

 9  to the Chief Financial Officer Treasurer pursuant to

10  subsection (2).

11         (b)  Federal Reserve Bank custody arrangement for

12  collateral pledged to the Chief Financial Officer Treasurer

13  pursuant to subsection (3).

14         (c)  Chief Financial Officer's Treasurer's custody

15  arrangement for collateral deposited in the Chief Financial

16  Officer's Treasurer's name pursuant to subsection (4).

17         (d)  Federal Home Loan Bank letter of credit

18  arrangement for collateral issued with the Chief Financial

19  Officer Treasurer as beneficiary pursuant to subsection (5).

20         (e)  Cash arrangement for collateral held by the Chief

21  Financial Officer Treasurer or a custodian.

22         (2)  With the approval of the Chief Financial Officer

23  Treasurer, a qualified public depository or operating

24  subsidiary, as pledgor, may deposit eligible collateral with a

25  custodian. A qualified public depository shall not act as its

26  own custodian. Except in the case of using a Federal Reserve

27  Bank as custodian, the following are necessary for the Chief

28  Financial Officer's Treasurer's approval:

29         (a)  A completed collateral agreement in a form

30  prescribed by the Chief Financial Officer Treasurer in which

31  the pledgor agrees to the following provisions:

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 1         1.  The pledgor shall own the pledged collateral and

 2  acknowledge that the Chief Financial Officer Treasurer has a

 3  perfected security interest. The pledged collateral shall be

 4  eligible collateral and shall be at least equal to the amount

 5  of required collateral.

 6         2.  The pledgor shall grant to the Chief Financial

 7  Officer Treasurer an interest in pledged collateral for the

 8  purposes of this section. The pledgor shall not enter into or

 9  execute any other agreement related to the pledged collateral

10  that would create an interest in or lien on that collateral in

11  any manner in favor of any third party without the written

12  consent of the Chief Financial Officer Treasurer.

13         3.  The pledgor shall not grant the custodian any lien

14  that attaches to the collateral in favor of the custodian that

15  is superior or equal to the security interest of the Chief

16  Financial Officer Treasurer.

17         4.  The pledgor shall agree that the Chief Financial

18  Officer Treasurer may, without notice to or consent by the

19  pledgor, require the custodian to comply with and perform any

20  and all requests and orders directly from the Chief Financial

21  Officer Treasurer. These include, but are not limited to,

22  liquidating all collateral and submitting the proceeds

23  directly to the Chief Financial Officer Treasurer in the name

24  of the Chief Financial Officer Treasurer only or transferring

25  all collateral into an account designated solely by the Chief

26  Financial Officer Treasurer.

27         5.  The pledgor shall acknowledge that the Chief

28  Financial Officer Treasurer may, without notice to or consent

29  by the pledgor, require the custodian to hold principal

30  payments and income for the benefit of the Chief Financial

31  Officer Treasurer.

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 1         6.  The pledgor shall initiate collateral transactions

 2  on forms prescribed by the Chief Financial Officer Treasurer

 3  in the following manner:

 4         a.  A deposit transaction of eligible collateral may be

 5  made without prior approval from the Chief Financial Officer

 6  Treasurer provided: security types that have restrictions have

 7  been approved in advance of the transaction by the Chief

 8  Financial Officer Treasurer and simultaneous notification is

 9  given to the Chief Financial Officer Treasurer; and the

10  custodian has not received notice from the Chief Financial

11  Officer Treasurer prohibiting deposits without prior approval.

12         b.  A substitution transaction of eligible collateral

13  may be made without prior approval from the Chief Financial

14  Officer Treasurer provided: security types that have

15  restrictions have been approved in advance of the transaction

16  by the Chief Financial Officer Treasurer; the market value of

17  the securities to be substituted is at least equal to the

18  amount withdrawn; simultaneous notification is given to the

19  Chief Financial Officer Treasurer; and the custodian has not

20  received notice from the Chief Financial Officer Treasurer

21  prohibiting substitution.

22         c.  A transfer of collateral between accounts at a

23  custodian requires the Chief Financial Officer's Treasurer's

24  prior approval. The collateral shall be released subject to

25  redeposit in the new account with a pledge to the Chief

26  Financial Officer Treasurer intact.

27         d.  A transfer of collateral from a custodian to

28  another custodian requires the Chief Financial Officer's

29  Treasurer's prior approval and a valid collateral agreement

30  with the new custodian. The collateral shall be released

31  

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 1  subject to redeposit at the new custodian with a pledge to the

 2  Chief Financial Officer Treasurer intact.

 3         e.  A withdrawal transaction requires the Chief

 4  Financial Officer's Treasurer's prior approval. The market

 5  value of eligible collateral remaining after the withdrawal

 6  shall be at least equal to the amount of required collateral.

 7  A withdrawal transaction shall be executed for any release of

 8  collateral including maturity or call proceeds.

 9         f.  Written notice shall be sent to the Chief Financial

10  Officer Treasurer to remove from the inventory of pledged

11  collateral a pay-down security that has paid out with zero

12  principal remaining.

13         7.  If pledged collateral includes definitive

14  (physical) securities in registered form which are in the name

15  of the pledgor or a nominee, the pledgor shall deliver the

16  following documents when requested by the Chief Financial

17  Officer Treasurer:

18         a.  A separate certified power of attorney in a form

19  prescribed by the Chief Financial Officer Treasurer for each

20  issue of securities.

21         b.  Separate bond assignment forms as required by the

22  bond agent or trustee.

23         c.  Certified copies of resolutions adopted by the

24  pledgor's governing body authorizing execution of these

25  documents.

26         8.  The pledgor shall be responsible for all costs

27  necessary to the functioning of the collateral agreement or

28  associated with confirmation of pledged collateral to the

29  Chief Financial Officer Treasurer and acknowledges that these

30  costs shall not be a charge against the Chief Financial

31  

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 1  Officer Treasurer or his or her interests in the pledged

 2  collateral.

 3         9.  The pledgor, if notified by the Chief Financial

 4  Officer Treasurer, shall not be allowed to use a custodian if

 5  that custodian fails to complete the collateral agreement,

 6  releases pledged collateral without the Chief Financial

 7  Officer's Treasurer's approval, fails to properly complete

 8  confirmations of pledged collateral, fails to honor a request

 9  for examination of definitive pledged collateral and records

10  of book-entry securities, or fails to provide requested

11  documents on definitive securities. The period for disallowing

12  the use of a custodian shall be 1 year.

13         10.  The pledgor shall be subject to the jurisdiction

14  of the courts of the State of Florida, or of courts of the

15  United States located within the State of Florida, for the

16  purpose of any litigation arising out of the act.

17         11.  The pledgor is responsible and liable to the Chief

18  Financial Officer Treasurer for any action of agents the

19  pledgor uses to execute collateral transactions or submit

20  reports to the Chief Financial Officer Treasurer.

21         12.  The pledgor shall agree that any information,

22  forms, or reports electronically transmitted to the Chief

23  Financial Officer Treasurer shall have the same enforceability

24  as a signed writing.

25         13.  The pledgor shall submit proof that authorized

26  individuals executed the collateral agreement on behalf of the

27  pledgor.

28         14.  The pledgor shall agree by resolution of the board

29  of directors that collateral agreements entered into for

30  purposes of this section have been formally accepted and

31  constitute official records of the pledgor.

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 1         15.  The pledgor shall be bound by any other provisions

 2  found necessary for a perfected security interest in

 3  collateral under the Uniform Commercial Code.

 4         (b)  A completed collateral agreement in a form

 5  prescribed by the Chief Financial Officer Treasurer in which

 6  the custodian agrees to the following provisions:

 7         1.  The custodian shall have no responsibility to

 8  ascertain whether the pledged securities are at least equal to

 9  the amount of required collateral nor whether the pledged

10  securities are eligible collateral.

11         2.  The custodian shall hold pledged collateral in a

12  custody account for the Chief Financial Officer Treasurer for

13  purposes of this section. The custodian shall not enter into

14  or execute any other agreement related to the collateral that

15  would create an interest in or lien on that collateral in any

16  manner in favor of any third party without the written consent

17  of the Chief Financial Officer Treasurer.

18         3.  The custodian shall agree that any lien that

19  attaches to the collateral in favor of the custodian shall not

20  be superior or equal to the security interest of the Chief

21  Financial Officer Treasurer.

22         4.  The custodian shall, without notice to or consent

23  by the pledgor, comply with and perform any and all requests

24  and orders directly from the Chief Financial Officer

25  Treasurer. These include, but are not limited to, liquidating

26  all collateral and submitting the proceeds directly to the

27  Chief Financial Officer Treasurer in the name of the Chief

28  Financial Officer Treasurer only or transferring all

29  collateral into an account designated solely by the Chief

30  Financial Officer Treasurer.

31  

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 1         5.  The custodian shall consider principal payments on

 2  pay-down securities and income paid on pledged collateral as

 3  the property of the pledgor and shall pay thereto provided the

 4  custodian has not received written notice from the Chief

 5  Financial Officer Treasurer to hold such principal payments

 6  and income for the benefit of the Chief Financial Officer

 7  Treasurer.

 8         6.  The custodian shall process collateral transactions

 9  on forms prescribed by the Chief Financial Officer Treasurer

10  in the following manner:

11         a.  A deposit transaction of eligible collateral may be

12  made without prior approval from the Chief Financial Officer

13  Treasurer unless the custodian has received notice from the

14  Chief Financial Officer Treasurer requiring the Chief

15  Financial Officer's Treasurer's prior approval.

16         b.  A substitution transaction of eligible collateral

17  may be made without prior approval from the Chief Financial

18  Officer Treasurer provided the pledgor certifies the market

19  value of the securities to be substituted is at least equal to

20  the market value amount of the securities to be withdrawn and

21  the custodian has not received notice from the Chief Financial

22  Officer Treasurer prohibiting substitution.

23         c.  A transfer of collateral between accounts at a

24  custodian requires the Chief Financial Officer's Treasurer's

25  prior approval. The collateral shall be released subject to

26  redeposit in the new account with a pledge to the Chief

27  Financial Officer Treasurer intact. Confirmation from the

28  custodian to the Chief Financial Officer Treasurer must be

29  received within 5 business days of the redeposit.

30         d.  A transfer of collateral from a custodian to

31  another custodian requires the Chief Financial Officer's

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 1  Treasurer's prior approval. The collateral shall be released

 2  subject to redeposit at the new custodian with a pledge to the

 3  Chief Financial Officer Treasurer intact. Confirmation from

 4  the new custodian to the Chief Financial Officer Treasurer

 5  must be received within 5 business days of the redeposit.

 6         e.  A withdrawal transaction requires the Chief

 7  Financial Officer's Treasurer's prior approval. A withdrawal

 8  transaction shall be executed for the release of any pledged

 9  collateral including maturity or call proceeds.

10         7.  If pledged collateral includes definitive

11  (physical) securities in registered form, which are in the

12  name of the custodian or a nominee, the custodian shall

13  deliver the following documents when requested by the Chief

14  Financial Officer Treasurer:

15         a.  A separate certified power of attorney in a form

16  prescribed by the Chief Financial Officer Treasurer for each

17  issue of securities.

18         b.  Separate bond assignment forms as required by the

19  bond agent or trustee.

20         c.  Certified copies of resolutions adopted by the

21  custodian's governing body authorizing execution of these

22  documents.

23         8.  The custodian shall acknowledge that the pledgor is

24  responsible for all costs necessary to the functioning of the

25  collateral agreement or associated with confirmation of

26  securities pledged to the Chief Financial Officer Treasurer

27  and that these costs shall not be a charge against the Chief

28  Financial Officer Treasurer or his or her interests in the

29  pledged collateral.

30         9.  The custodian shall agree to provide confirmation

31  of pledged collateral upon request from the Chief Financial

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 1  Officer Treasurer. This confirmation shall be provided within

 2  15 working days after the request, in a format prescribed by

 3  the Chief Financial Officer Treasurer, and shall require no

 4  identification other than the pledgor name and location,

 5  unless the special identification is provided in the

 6  collateral agreement.

 7         10.  The custodian shall be subject to the jurisdiction

 8  of the courts of the State of Florida, or of courts of the

 9  United States located within the State of Florida, for the

10  purpose of any litigation arising out of the act.

11         11.  The custodian shall be responsible and liable to

12  the Chief Financial Officer Treasurer for any action of agents

13  the custodian uses to hold and service collateral pledged to

14  the Chief Financial Officer Treasurer.

15         12.  The custodian shall agree that any information,

16  forms, or reports electronically transmitted to the Chief

17  Financial Officer Treasurer shall have the same enforceability

18  as a signed writing.

19         13.  The Chief Financial Officer Treasurer shall have

20  the right to examine definitive pledged collateral and records

21  of book-entry securities during the regular business hours of

22  the custodian without cost to the Chief Financial Officer

23  Treasurer.

24         14.  The responsibilities of the custodian for the

25  safekeeping of the pledged collateral shall be limited to the

26  diligence and care usually exercised by a banking or trust

27  institution toward its own property.

28         15.  If there is any change in the Uniform Commercial

29  Code, as adopted by law in this state, which affects the

30  requirements for a perfected security interest in collateral,

31  the Chief Financial Officer Treasurer shall notify the

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 1  custodian of such change. The custodian shall have a period of

 2  180 calendar days after such notice to withdraw as custodian

 3  if the custodian cannot provide the required custodial

 4  services.

 5         (3)  With the approval of the Chief Financial Officer

 6  Treasurer, a pledgor may deposit eligible collateral pursuant

 7  to an agreement with a Federal Reserve Bank. The Federal

 8  Reserve Bank agreement may require terms not consistent with

 9  subsection (2) but may not subject the Chief Financial Officer

10  Treasurer to any costs or indemnification requirements.

11         (4)  The Chief Financial Officer Treasurer may require

12  deposit or transfer of collateral into a custodial account

13  established in the Chief Financial Officer's Treasurer's name

14  at a designated custodian. This requirement for Chief

15  Financial Officer's Treasurer's custody shall have the

16  following characteristics:

17         (a)  One or more triggering events must have occurred.

18         (b)  The custodian used must be a Chief Financial

19  Officer's Treasurer's approved custodian that must:

20         1.  Meet the definition of custodian.

21         2.  Not be an affiliate of the qualified public

22  depository.

23         3.  Be bound under a distinct Chief Financial Officer's

24  Treasurer's custodial contract.

25         (c)  All deposit transactions require the approval of

26  the Chief Financial Officer Treasurer.

27         (d)  All collateral must be in book-entry form.

28         (e)  The qualified public depository shall be

29  responsible for all costs necessary to the functioning of the

30  contract or associated with the confirmation of securities in

31  the name of the Chief Financial Officer Treasurer and

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 1  acknowledges that these costs shall not be a charge against

 2  the Chief Financial Officer Treasurer and may be deducted from

 3  the collateral or income earned if unpaid.

 4         (5)  With the approval of the Chief Financial Officer

 5  Treasurer, a qualified public depository may use Federal Home

 6  Loan Bank letters of credit to meet collateral requirements.

 7  A completed agreement that includes the following provisions

 8  is necessary for the Chief Financial Officer's Treasurer's

 9  approval:

10         (a)  The letter of credit shall meet the definition of

11  eligible collateral.

12         (b)  The qualified public depository shall agree that

13  the Chief Financial Officer Treasurer, as beneficiary, may,

14  without notice to or consent by the qualified public

15  depository, demand payment under the letter of credit if any

16  of the triggering events listed in this section occur.

17         (c)  The qualified public depository shall agree that

18  funds received by the Chief Financial Officer Treasurer due to

19  the occurrence of one or more triggering events may be

20  deposited in the Treasury Cash Deposit Trust Fund for purposes

21  of eligible collateral.

22         (d)  The qualified public depository shall arrange for

23  the issue of letters of credit which meet the requirements of

24  s. 280.13 and delivery to the Chief Financial Officer

25  Treasurer.  All transactions involving letters of credit

26  require the Chief Financial Officer's Treasurer's approval.

27         (e)  The qualified public depository shall be

28  responsible for all costs necessary in the use or confirmation

29  of letters of credit issued on behalf of the Chief Financial

30  Officer Treasurer and acknowledges that these costs shall not

31  be a charge against the Chief Financial Officer Treasurer.

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 1         (f)  The qualified public depository shall be subject

 2  to the jurisdiction of the courts of this state, or of courts

 3  of the United States which are located within this state, for

 4  the purpose of any litigation arising out of the act.

 5         (g)  The qualified public depository shall agree that

 6  any information, form, or report electronically transmitted to

 7  the Chief Financial Officer Treasurer shall have the same

 8  enforceability as a signed writing.

 9         (h)  The qualified public depository shall submit proof

10  that authorized individuals executed the letters of credit

11  agreement on its behalf.

12         (i)  The qualified public depository shall agree by

13  resolution of the board of directors that the letters of

14  credit agreements entered into for purposes of this section

15  have been formally accepted and constitute official records of

16  the qualified public depository.

17         (6)  The Chief Financial Officer Treasurer may demand

18  payment under a letter of credit or direct a custodian to

19  deposit or transfer collateral and proceeds of securities not

20  previously credited upon the occurrence of one or more

21  triggering events provided that, to the extent not

22  incompatible with the protection of public deposits, as

23  determined in the Chief Financial Officer's Treasurer's sole

24  and absolute discretion, the Chief Financial Officer Treasurer

25  shall provide a custodian and the qualified public depository

26  with 48 hours' advance notice before directing such deposit or

27  transfer. These events include:

28         (a)  The Chief Financial Officer Treasurer determines

29  that an immediate danger to the public health, safety, or

30  welfare exists.

31  

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 1         (b)  The qualified public depository fails to have

 2  adequate procedures and practices for the accurate

 3  identification, classification, reporting, and

 4  collateralization of public deposits.

 5         (c)  The custodian fails to provide or allow inspection

 6  and verification of documents, reports, records, or other

 7  information dealing with the pledged collateral or financial

 8  information.

 9         (d)  The qualified public depository or its operating

10  subsidiary fails to provide or allow inspection and

11  verification of documents, reports, records, or other

12  information dealing with Florida public deposits, pledged

13  collateral, or financial information.

14         (e)  The custodian fails to hold income and principal

15  payments made on securities held as collateral or fails to

16  deposit or transfer such payments pursuant to the Chief

17  Financial Officer's Treasurer's instructions.

18         (f)  The qualified public depository defaults or

19  becomes insolvent.

20         (g)  The qualified public depository fails to pay an

21  assessment.

22         (h)  The qualified public depository fails to pay an

23  administrative penalty.

24         (i)  The qualified public depository fails to meet

25  financial condition standards.

26         (j)  The qualified public depository charges a

27  withdrawal penalty to public depositors when the qualified

28  public depository is suspended, disqualified, or withdrawn

29  from the public deposits program.

30  

31  

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 1         (k)  The qualified public depository does not provide,

 2  as required, the public depositor with annual confirmation

 3  information on all open Florida public deposit accounts.

 4         (l)  The qualified public depository pledges, deposits,

 5  or has issued insufficient or unacceptable collateral to meet

 6  required collateral within the required time.

 7         (m)  Collateral, other than a proper substitution, is

 8  released without the prior approval of the Chief Financial

 9  Officer Treasurer.

10         (n)  The qualified public depository, custodian,

11  operating subsidiary, or agent violates any provision of the

12  act and the Chief Financial Officer Treasurer determines that

13  such violation may be remedied by a move of collateral.

14         (o)  The qualified public depository, custodian,

15  operating subsidiary, or agent fails to timely cooperate in

16  resolving problems by the date established in written

17  communication from the Chief Financial Officer Treasurer.

18         (p)  The custodian fails to provide sufficient

19  confirmation information.

20         (q)  The Federal Home Loan Bank or the qualified public

21  depository gives notification that a letter of credit will not

22  be extended or renewed and other eligible collateral equal to

23  required collateral has not been deposited within 30 days

24  after the notice or 30 days before expiration of the letter of

25  credit.

26         (r)  The qualified public depository, if involved in a

27  merger, acquisition, consolidation, or other organizational

28  change, fails to notify the Chief Financial Officer Treasurer

29  or ensure that required collateral is properly maintained by

30  the depository holding the Florida public deposits.

31  

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 1         (s)  Events that would bring about an administrative or

 2  legal action by the Chief Financial Officer Treasurer.

 3         (7)  The Chief Financial Officer Treasurer shall adopt

 4  rules to identify forms and establish procedures for

 5  collateral agreements and transactions, furnish confirmation

 6  requirements, establish procedures for using an operating

 7  subsidiary and agents, and clarify terms.

 8         Section 317.  Section 280.05, Florida Statutes, is

 9  amended to read:

10         280.05  Powers and duties of the Chief Financial

11  Officer Treasurer.--In fulfilling the requirements of this

12  act, the Chief Financial Officer Treasurer has the power to

13  take the following actions he or she deems necessary to

14  protect the integrity of the public deposits program:

15         (1)  Identify representative qualified public

16  depositories and furnish notification for the qualified public

17  depository oversight board selection pursuant to s. 280.071.

18         (2)  Provide data for the qualified public depository

19  oversight board duties pursuant to s. 280.071 regarding:

20         (a)  Establishing standards for qualified public

21  depositories and custodians.

22         (b)  Evaluating requests for exceptions to standards

23  and alternative participation agreements.

24         (c)  Reviewing and recommending action for qualified

25  public depository or custodian violations.

26         (3)  Review, implement, monitor, evaluate, and modify

27  all or any part of the standards, policies, or recommendations

28  of the qualified public depository oversight board.

29         (4)  Perform financial analysis of any qualified public

30  depositories.

31  

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 1         (5)  Require collateral, or increase the

 2  collateral-pledging level, of any qualified public depository.

 3         (6)  Decline to accept, or reduce the reported value

 4  of, collateral in order to ensure the pledging or depositing

 5  of sufficient marketable collateral and acceptable letters of

 6  credit.

 7         (7)  Maintain perpetual inventory of collateral and

 8  perform monthly market valuations and quality ratings.

 9         (8)  Monitor and confirm collateral with custodians and

10  letter of credit issuers.

11         (9)  Move collateral into an account established in the

12  Chief Financial Officer's Treasurer's name upon the occurrence

13  of one or more triggering events.

14         (10)  Issue notice to a qualified public depository

15  that use of a custodian will be disallowed when the custodian

16  has failed to follow collateral agreement terms.

17         (11)  Furnish written notice to custodians of

18  collateral to hold interest and principal payments made on

19  securities held as collateral and to deposit or transfer such

20  payments pursuant to the Chief Financial Officer's Treasurer's

21  instructions.

22         (12)  Release collateral held in the Chief Financial

23  Officer's Treasurer's name, subject to sale and transfer of

24  funds directly from the custodian to public depositors of a

25  withdrawing depository.

26         (13)  Demand payment under letters of credit for any of

27  the triggering events listed in s. 280.041 and deposit the

28  funds in:

29         (a)  The Public Deposits Trust Fund for purposes of

30  paying losses to public depositors.

31  

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 1         (b)  The Treasury Treasurer's Administrative and

 2  Investment Trust Fund for receiving payment of administrative

 3  penalties.

 4         (c)  The Treasury Cash Deposit Trust Fund for purposes

 5  of eligible collateral.

 6         (14)  Sell securities for the purpose of paying losses

 7  to public depositors not covered by deposit insurance.

 8         (15)  Transfer funds directly from the custodian to

 9  public depositors or the receiver in order to facilitate

10  prompt payment of claims.

11         (16)  Require the filing of the following reports which

12  the Chief Financial Officer Treasurer shall process as

13  provided:

14         (a)  Qualified public depository monthly reports and

15  schedules. The Chief Financial Officer Treasurer shall review

16  the reports of each qualified public depository for material

17  changes in capital accounts or changes in name, address, or

18  type of institution; record the average daily balances of

19  public deposits held; and monitor the collateral-pledging

20  levels and required collateral.

21         (b)  Quarterly regulatory reports from qualified public

22  depositories. The Chief Financial Officer Treasurer shall

23  analyze qualified public depositories ranked in the lowest

24  category based on established financial condition criteria.

25         (c)  Qualified public depository annual reports and

26  public depositor annual reports. The Chief Financial Officer

27  Treasurer shall compare public deposit information reported by

28  qualified public depositories and public depositors.  Such

29  comparison shall be conducted for qualified public

30  depositories which are ranked in the lowest category based on

31  established financial condition criteria of record on

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 1  September 30. Additional comparison processes may be performed

 2  as public deposits program resources permit.

 3         (d)  Any related documents, reports, records, or other

 4  information deemed necessary by the Chief Financial Officer

 5  Treasurer in order to ascertain compliance with this chapter.

 6         (17)  Verify the reports of any qualified public

 7  depository relating to public deposits it holds when necessary

 8  to protect the integrity of the public deposits program.

 9         (18)  Confirm public deposits, to the extent possible

10  under current law, when needed.

11         (19)  Require at his or her discretion the filing of

12  any information or forms required under this chapter to be by

13  electronic data transmission. Such filings of information or

14  forms shall have the same enforceability as a signed writing.

15         (20)  Suspend or disqualify or disqualify after

16  suspension any qualified public depository that has violated

17  any of the provisions of this chapter or of rules adopted

18  hereunder.

19         (a)  Any qualified public depository that is suspended

20  or disqualified pursuant to this subsection is subject to the

21  provisions of s. 280.11(2) governing withdrawal from the

22  public deposits program and return of pledged collateral. Any

23  suspension shall not exceed a period of 6 months.  Any

24  qualified public depository which has been disqualified may

25  not reapply for qualification until after the expiration of 1

26  year from the date of the final order of disqualification or

27  the final disposition of any appeal taken therefrom.

28         (b)  In lieu of suspension or disqualification, impose

29  an administrative penalty upon the qualified public depository

30  as provided in s. 280.054.

31  

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 1         (c)  If the Chief Financial Officer Treasurer has

 2  reason to believe that any qualified public depository or any

 3  other financial institution holding public deposits is or has

 4  been violating any of the provisions of this chapter or of

 5  rules adopted hereunder, he or she may issue to the qualified

 6  public depository or other financial institution an order to

 7  cease and desist from the violation or to correct the

 8  condition giving rise to or resulting from the violation.  If

 9  any qualified public depository or other financial institution

10  violates a cease-and-desist or corrective order, the Chief

11  Financial Officer Treasurer may impose an administrative

12  penalty upon the qualified public depository or other

13  financial institution as provided in s. 280.054 or s. 280.055.

14  In addition to the administrative penalty, the Chief Financial

15  Officer Treasurer may suspend or disqualify any qualified

16  public depository for violation of any order issued pursuant

17  to this paragraph.

18         Section 318.  Section 280.051, Florida Statutes, is

19  amended to read:

20         280.051  Grounds for suspension or disqualification of

21  a qualified public depository.--A qualified public depository

22  may be suspended or disqualified or both if the Chief

23  Financial Officer Treasurer determines that the qualified

24  public depository has:

25         (1)  Violated any of the provisions of this chapter or

26  any rule adopted by the Chief Financial Officer Treasurer

27  pursuant to this chapter.

28         (2)  Submitted reports containing inaccurate or

29  incomplete information regarding public deposits or collateral

30  for such deposits, capital accounts, or the calculation of

31  required collateral.

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 1         (3)  Failed to maintain required collateral.

 2         (4)  Grossly misstated the market value of the

 3  securities pledged as collateral.

 4         (5)  Failed to pay any administrative penalty.

 5         (6)  Failed to furnish the Chief Financial Officer

 6  Treasurer with prompt and accurate information, or failed to

 7  allow inspection and verification of any information, dealing

 8  with public deposits or dealing with the exact status of its

 9  capital accounts, or any other financial information that the

10  Chief Financial Officer Treasurer determines necessary to

11  verify compliance with this chapter or any rule adopted

12  pursuant to this chapter.

13         (7)  Failed to furnish the Chief Financial Officer

14  Treasurer, when the Chief Financial Officer Treasurer

15  requested, with a power of attorney or bond power or other

16  bond assignment form required by the bond agent, bond trustee,

17  or other transferor for each issue of registered certificated

18  securities pledged.

19         (8)  Failed to furnish any agreement, report, form, or

20  other information required to be filed pursuant to s. 280.16,

21  or when requested by the Chief Financial Officer Treasurer.

22         (9)  Submitted reports signed by an unauthorized

23  individual.

24         (10)  Submitted reports without a certified or verified

25  signature, or both, if required by law.

26         (11)  Released a security without notice or approval.

27         (12)  Failed to execute or have the custodian execute a

28  public depository pledge agreement prior to using a custodian.

29         (13)  Failed to give notification as required by s.

30  280.10.

31  

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 1         Section 319.  Section 280.052, Florida Statutes, is

 2  amended to read:

 3         280.052  Order of suspension or disqualification;

 4  procedure.--

 5         (1)  The suspension or disqualification of a bank or

 6  savings association as a qualified public depository must be

 7  by order of the Chief Financial Officer Treasurer and must be

 8  mailed to the qualified public depository by registered or

 9  certified mail.

10         (2)  The Chief Financial Officer Treasurer shall

11  notify, by first-class mail, all public depositors that have

12  complied with s. 280.17 of any such disqualification or

13  suspension.

14         (3)  The procedures for suspension or disqualification

15  shall be as set forth in chapter 120 and in the rules of the

16  Chief Financial Officer Treasurer adopted pursuant to this

17  section.

18         (4)  Whenever the Chief Financial Officer Treasurer

19  determines that an immediate danger to the public health,

20  safety, or welfare exists, the Chief Financial Officer

21  Treasurer may take any appropriate action available to her or

22  him under the provisions of chapter 120.

23         Section 320.  Paragraphs (a) and (c) of subsection (1)

24  and paragraph (c) of subsection (2) of section 280.053,

25  Florida Statutes, is amended to read:

26         280.053  Period of suspension or disqualification;

27  obligations during period; reinstatement.--

28         (1)(a)  The Chief Financial Officer Treasurer may

29  suspend a qualified public depository for any period that is

30  fixed in the order of suspension, not exceeding 6 months.  For

31  the purposes of this section and ss. 280.051 and 280.052, the

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 1  effective date of suspension or disqualification is that date

 2  which is set out as such in any order of suspension or

 3  disqualification.

 4         (c)  Upon expiration of the suspension period, the bank

 5  or savings association may, by order of the Chief Financial

 6  Officer Treasurer, be reinstated as a qualified public

 7  depository, unless the cause of the suspension has not been

 8  corrected or the bank or savings association is otherwise not

 9  in compliance with this chapter or any rule adopted pursuant

10  to this chapter.

11         (2)

12         (c)  Upon expiration of the disqualification period,

13  the bank or savings association may reapply for qualification

14  as a qualified public depository. If a disqualified bank or

15  savings association is purchased or otherwise acquired by new

16  owners, it may reapply to the Chief Financial Officer

17  Treasurer to be a qualified public depository prior to the

18  expiration date of the disqualification period. Redesignation

19  as a qualified public depository may occur only after the

20  Chief Financial Officer Treasurer has determined that all

21  requirements for holding public deposits under the law have

22  been met.

23         Section 321.  Section 280.054, Florida Statutes, is

24  amended to read:

25         280.054  Administrative penalty in lieu of suspension

26  or disqualification.--

27         (1)  If the Chief Financial Officer Treasurer finds

28  that one or more grounds exist for the suspension or

29  disqualification of a qualified public depository, the Chief

30  Financial Officer Treasurer may, in lieu of suspension or

31  

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 1  disqualification, impose an administrative penalty upon the

 2  qualified public depository.

 3         (a)  With respect to any nonwillful violation, such

 4  penalty may not exceed $250 for each violation, exclusive of

 5  any restitution found to be due. If a qualified public

 6  depository discovers a nonwillful violation, the qualified

 7  public depository shall correct the violation; and, if

 8  restitution is due, the qualified public depository shall make

 9  restitution upon the order of the Chief Financial Officer

10  Treasurer and shall pay interest on such amount at the legal

11  rate from the date of the violation.  Each day a violation

12  continues constitutes a separate violation.

13         (b)  With respect to any knowing and willful violation

14  of a lawful order or rule, the Chief Financial Officer

15  Treasurer may impose a penalty upon the qualified public

16  depository in an amount not exceeding $1,000 for each

17  violation. If restitution is due, the qualified public

18  depository shall make restitution upon the order of the Chief

19  Financial Officer Treasurer and shall pay interest on such

20  amount at the legal rate.  Each day a violation continues

21  constitutes a separate violation.

22         (2)  The failure of a qualified public depository to

23  make restitution when due as required under this section

24  constitutes a willful violation of this chapter.  However, if

25  a qualified public depository in good faith is uncertain

26  whether any restitution is due or as to the amount of

27  restitution due, it shall promptly notify the Chief Financial

28  Officer Treasurer of the circumstances. The failure to make

29  restitution pending a determination of whether restitution is

30  due or the amount of restitution due does not constitute a

31  violation of this chapter.

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 1         (3)  A qualified public depository is subject to an

 2  administrative penalty in an amount not exceeding the greater

 3  of $1,000 or 10 percent of the amount of withdrawal, not

 4  exceeding $10,000, if the depository fails to provide required

 5  collateral using eligible collateral and prescribed collateral

 6  agreements or withdraws collateral without the Chief Financial

 7  Officer's Treasurer's approval.

 8         Section 322.  Section 280.055, Florida Statutes, is

 9  amended to read:

10         280.055  Cease and desist order; corrective order;

11  administrative penalty.--

12         (1)  The Chief Financial Officer Treasurer may issue a

13  cease and desist order and a corrective order upon determining

14  that:

15         (a)  A qualified public depository has requested and

16  obtained a release of pledged collateral without approval of

17  the Chief Financial Officer Treasurer;

18         (b)  A bank, savings association, or other financial

19  institution is holding public deposits without a certificate

20  of qualification issued by the Chief Financial Officer

21  Treasurer;

22         (c)  A qualified public depository pledges, deposits,

23  or arranges for the issuance of unacceptable collateral;

24         (d)  A custodian has released pledged collateral

25  without approval of the Chief Financial Officer Treasurer;

26         (e)  A qualified public depository or a custodian has

27  not furnished to the Chief Financial Officer Treasurer, when

28  the Chief Financial Officer Treasurer requested, a power of

29  attorney or bond power or bond assignment form required by the

30  bond agent or bond trustee for each issue of registered

31  certificated securities pledged and registered in the name, or

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 1  nominee name, of the qualified public depository or custodian;

 2  or

 3         (f)  A qualified public depository; a bank, savings

 4  association, or other financial institution; or a custodian

 5  has committed any other violation of this chapter or any rule

 6  adopted pursuant to this chapter that the Chief Financial

 7  Officer Treasurer determines may be remedied by a cease and

 8  desist order or corrective order.

 9         (2)  Any qualified public depository or other bank,

10  savings association, or financial institution or custodian

11  that violates a cease and desist order or corrective order of

12  the Chief Financial Officer Treasurer is subject to an

13  administrative penalty not exceeding $1,000 for each violation

14  of the order. Each day the violation of the order continues

15  constitutes a separate violation.

16         Section 323.  Subsections (1) and (2) of section

17  280.06, Florida Statutes, are amended to read:

18         280.06  Penalty for violation of law, rule, or order to

19  cease and desist or other lawful order.--

20         (1)  The violation of any provision of this chapter, or

21  any order or rule of the Chief Financial Officer Treasurer, or

22  any order to cease and desist or other lawful order is a

23  misdemeanor of the second degree, punishable as provided in s.

24  775.082 or s. 775.083.

25         (2)  It is a felony of the third degree, punishable as

26  provided in s. 775.082 or s. 775.083, to knowingly and

27  willfully give false information on any form made under oath

28  and filed pursuant to this chapter with the intent to mislead

29  the Chief Financial Officer Treasurer in the administration or

30  enforcement of this chapter.

31  

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 1         Section 324.  Section 280.07, Florida Statutes, is

 2  amended to read:

 3         280.07  Mutual responsibility and contingent

 4  liability.--Any bank or savings association that is designated

 5  as a qualified public depository and that is not insolvent

 6  shall guarantee public depositors against loss caused by the

 7  default or insolvency of other qualified public depositories.

 8  Each qualified public depository shall execute a form

 9  prescribed by the Chief Financial Officer Treasurer for such

10  guarantee which shall be approved by the board of directors

11  and shall become an official record of the institution.

12         Section 325.  Subsections (1), (2), (3), and (5),

13  paragraph (e) of subsection (9), paragraphs (b), (c), (d), and

14  (e) of subsection (10), paragraphs (a) and (b) of subsection

15  (11), and subsection (12) of section 280.071, Florida

16  Statutes, are amended to read:

17         280.071  Qualified Public Depository Oversight Board;

18  purpose; identifying representative qualified public

19  depositories; member selection; responsibilities.--A Qualified

20  Public Depository Oversight Board is created comprised of six

21  members and six alternate members who represent the interests

22  of all qualified public depositories in safeguarding the

23  integrity of the public deposits program and preventing the

24  realization of loss assessments.

25         (1)  On July 31 of each year and as vacancies occur,

26  the Chief Financial Officer Treasurer shall initiate the

27  selection of oversight board representation in the following

28  manner:

29         (a)  Categorize eligible qualified public depositories

30  into three groups according to average asset size.  Eligible

31  qualified public depositories must be in compliance with all

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 1  requirements and shall not be suspended, disqualified,

 2  withdrawn, or under an alternative participation agreement in

 3  the public deposits program.

 4         (b)  Identify the two qualified public depositories in

 5  each of the three groups that have the greatest shares of

 6  contingent liability based on the average monthly balances of

 7  public deposits reported pursuant to s. 280.16.

 8         (c)  Send notification to the six qualified public

 9  depositories that have been identified.

10         (2)  Each of the six representative qualified public

11  depositories shall select a member and alternate member for

12  the oversight board and give the Chief Financial Officer

13  Treasurer written information on the selections within 30

14  calendar days of the Chief Financial Officer's Treasurer's

15  notice.

16         (3)  If an identified qualified public depository

17  declines to select a member, does not respond within 30

18  calendar days, or becomes ineligible, the Chief Financial

19  Officer Treasurer shall furnish notice to the Florida Bankers

20  Association which shall select a member and alternate member

21  to represent that average asset category within 30 calendar

22  days.

23         (5)  The oversight board members and alternate members

24  shall be subject to the Chief Financial Officer's Treasurer's

25  approval.

26         (9)  The oversight board shall organize, communicate,

27  and conduct meetings as follows:

28         (e)  Take no official action in the absence of a

29  quorum.

30         1.  A quorum shall consist of the majority of voting

31  members of the oversight board.

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 1         2.  Each member shall have one vote.

 2         3.  A member shall not vote on issues directly related

 3  to the qualified public depository he or she represents.

 4         4.  The Chief Financial Officer Treasurer or his or her

 5  representative shall vote as a member of the oversight board

 6  in the absence of a quorum.

 7         (10)  The oversight board has the power and

 8  responsibility to safeguard the integrity of the public

 9  deposits program and prevent the realization of loss

10  assessments by:

11         (b)  Recommending approval or rejection to the Chief

12  Financial Officer Treasurer for exceptions that do not meet

13  established standards.  These requests for exceptions may be:

14         1.  Referred by the Chief Financial Officer Treasurer;

15  or

16         2.  Submitted directly by the qualified public

17  depository seeking exception.

18         (c)  Issuing approvals or rejections for alternative

19  participation agreements referred by the Chief Financial

20  Officer Treasurer.

21         (d)  Reviewing program violations and recommending that

22  the Chief Financial Officer Treasurer impose penalties and

23  fines or issue corrective actions and administrative orders.

24         (e)  Studying public deposit program areas referred by

25  the Chief Financial Officer Treasurer.

26         (11)  Official actions of the oversight board regarding

27  the establishment of standards, exception and alternate

28  participation agreement decisions, and recommendations

29  concerning violations shall be:

30         (a)  Communicated to the Chief Financial Officer

31  Treasurer in writing.

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 1         (b)  Subject to approval of the Chief Financial Officer

 2  Treasurer.

 3         (12)  The Chief Financial Officer Treasurer may adopt

 4  rules to establish procedures and forms for oversight board

 5  member and alternate member selection and oversight board

 6  functions.

 7         Section 326.  Section 280.08, Florida Statutes, is

 8  amended to read:

 9         280.08  Procedure for payment of losses.--When the

10  Chief Financial Officer Treasurer determines that a default or

11  insolvency has occurred, he or she shall provide notice as

12  required in s. 280.085 and implement the following procedures:

13         (1)  The Division of Treasury Treasurer, in cooperation

14  with the Division of Financial Institutions and Securities

15  Department of Banking and Finance or the receiver of the

16  qualified public depository in default, shall ascertain the

17  amount of funds of each public depositor on deposit at such

18  depository and the amount of deposit insurance applicable to

19  such deposits.

20         (2)  The potential loss to public depositors shall be

21  calculated by compiling claims received from such depositors.

22  The Chief Financial Officer Treasurer shall validate claims on

23  public deposit accounts which meet the requirements of s.

24  280.17 and are confirmed as provided in subsection (1).

25         (3)(a)  The loss to public depositors shall be

26  satisfied, insofar as possible, first through any applicable

27  deposit insurance and then through demanding payment under

28  letters of credit or the sale of collateral pledged or

29  deposited by the defaulting depository. The Chief Financial

30  Officer Treasurer may assess qualified public depositories as

31  provided in paragraph (b) for the total loss if the demand for

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 1  payment or sale of collateral cannot be accomplished within 7

 2  business days.

 3         (b)  The Chief Financial Officer Treasurer shall

 4  provide coverage of any remaining loss by assessment against

 5  the other qualified public depositories.  The Chief Financial

 6  Officer Treasurer shall determine such assessment for each

 7  qualified public depository by multiplying the total amount of

 8  any remaining loss to all public depositors by a percentage

 9  which represents the average monthly balance of public

10  deposits held by each qualified public depository during the

11  previous 12 months divided by the total average monthly

12  balances of public deposits held by all qualified public

13  depositories, excluding the defaulting depository, during the

14  same period. The assessment calculation shall be computed to

15  six decimal places.

16         (4)  Each qualified public depository shall pay its

17  assessment to the Chief Financial Officer Treasurer within 7

18  business days after it receives notice of the assessment. If a

19  depository fails to pay its assessment when due, the Chief

20  Financial Officer Treasurer shall satisfy the assessment by

21  demanding payment under letters of credit or selling

22  collateral pledged or deposited by that depository.

23         (5)  The Chief Financial Officer Treasurer shall

24  distribute the funds to the public depositors of the qualified

25  public depository in default according to their validated

26  claims. The Chief Financial Officer Treasurer, at his or her

27  discretion, may make partial payments to public depositors

28  that have experienced a loss of public funds which payments

29  are critical to the immediate operations of the public entity.

30  The public depositor requesting partial payment of a claim

31  

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 1  shall provide the Chief Financial Officer Treasurer with

 2  written documentation justifying the need for partial payment.

 3         (6)  Public depositors receiving payment under the

 4  provisions of this section shall assign to the Chief Financial

 5  Officer Treasurer any interest they may have in funds that may

 6  subsequently be made available to the qualified public

 7  depository in default.  If the qualified public depository in

 8  default or its receiver provides the funds to the Chief

 9  Financial Officer Treasurer, the Chief Financial Officer

10  Treasurer shall distribute the funds, plus all accrued

11  interest which has accumulated from the investment of the

12  funds, if any, to the depositories which paid assessments on

13  the same pro rata basis as the assessments were paid.

14         (7)  Expenses incurred by the Chief Financial Officer

15  Treasurer in connection with a default or insolvency which are

16  not normally incurred by the Chief Financial Officer Treasurer

17  in the administration of this act must be paid out of the

18  amount paid under letters of credit or proceeds from the sale

19  of collateral.

20         Section 327.  Subsection (1) of section 280.085,

21  Florida Statutes, is amended to read:

22         280.085  Notice to claimants.--

23         (1)  Upon determining the default or insolvency of a

24  qualified public depository, the Chief Financial Officer

25  Treasurer shall notify, by first-class mail, all public

26  depositors that have complied with s. 280.17 of such default

27  or insolvency.  The notice shall direct all public depositors

28  having claims or demands against the Public Deposits Trust

29  Fund occasioned by the default or insolvency to file their

30  claims with the Chief Financial Officer Treasurer within 30

31  days after the date of the notice.

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 1         Section 328.  Section 280.09, Florida Statutes, is

 2  amended to read:

 3         280.09  Public Deposits Trust Fund.--

 4         (1)  In order to facilitate the administration of this

 5  chapter, there is created the Public Deposits Trust Fund,

 6  hereafter in this section designated "the fund."  The proceeds

 7  from the sale of securities or draw on letters of credit held

 8  as collateral or from any assessment pursuant to s. 280.08

 9  shall be deposited into the fund.  Any administrative penalty

10  collected pursuant to this chapter shall be deposited into the

11  Treasury Treasurer's Administrative and Investment Trust Fund.

12         (2)  The Chief Financial Officer Treasurer is

13  authorized to pay any losses to public depositors from the

14  fund, and there are hereby appropriated from the fund such

15  sums as may be necessary from time to time to pay the losses.

16  The term "losses," for purposes of this chapter, shall also

17  include losses of interest or other accumulations to the

18  public depositor as a result of penalties for early withdrawal

19  required by Depository Institution Deregulatory Commission

20  Regulations or applicable successor federal laws or

21  regulations because of suspension or disqualification of a

22  qualified public depository by the Chief Financial Officer

23  Treasurer pursuant to s. 280.05 or because of withdrawal from

24  the public deposits program pursuant to s. 280.11.  In that

25  event, the Chief Financial Officer Treasurer is authorized to

26  assess against the suspended, disqualified, or withdrawing

27  public depository, in addition to any amount authorized by any

28  other provision of this chapter, an administrative penalty

29  equal to the amount of the early withdrawal penalty and to pay

30  that amount over to the public depositor as reimbursement for

31  such loss.  Any money in the fund estimated not to be needed

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 1  for immediate cash requirements shall be invested pursuant to

 2  s. 18.125.

 3         Section 329.  Paragraphs (d) and (e) of subsection (1)

 4  and subsections (2), (3), (4), (5), and (6) of section 280.10,

 5  Florida Statutes, are amended to read:

 6         280.10  Effect of merger, acquisition, or

 7  consolidation; change of name or address.--

 8         (1)  When a qualified public depository is merged into,

 9  acquired by, or consolidated with a bank, savings bank, or

10  savings association that is not a qualified public depository:

11         (d)  The resulting institution shall, within 90

12  calendar days after the effective date of the merger,

13  acquisition, or consolidation, deliver to the Chief Financial

14  Officer Treasurer:

15         1.  Documentation in its name as required for

16  participation in the public deposits program; or

17         2.  Written notice of intent to withdraw from the

18  program as provided in s. 280.11 and a proposed effective date

19  of withdrawal which shall be within 180 days after the

20  effective date of the acquisition, merger, or consolidation of

21  the former institution.

22         (e)  If the resulting institution does not meet

23  qualifications to become a qualified public depository or does

24  not submit required documentation within 90 calendar days

25  after the effective date of the merger, acquisition, or

26  consolidation, the Chief Financial Officer Treasurer shall

27  initiate mandatory withdrawal actions as provided in s. 280.11

28  and shall set an effective date of withdrawal that is within

29  180 days after the effective date of the acquisition, merger,

30  or consolidation of the former institution.

31  

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 1         (2)  When a qualified public depository disposes of any

 2  of its Florida public deposits or collateral securing such

 3  deposits in a manner not covered by subsection (1), the

 4  qualified public depository originally holding the public

 5  deposits shall be responsible for:

 6         (a)  Ensuring the institution receiving such public

 7  deposits becomes a qualified public depository and meets

 8  collateral requirements with the Chief Financial Officer

 9  Treasurer as part of the transaction.

10         (b)  Notifying the Chief Financial Officer Treasurer

11  within 30 calendar days after the final approval by the

12  appropriate regulator.

13  

14  A qualified public depository that fails to meet such

15  responsibilities shall continue to collateralize and report

16  such public deposits until the receiving institution becomes a

17  qualified public depository and collateralizes the deposits or

18  the deposits are returned to the governmental unit.

19         (3)  The qualified public depository shall notify the

20  Chief Financial Officer Treasurer of any acquisition or merger

21  within 30 calendar days after the final approval of the

22  acquisition or merger by its appropriate regulator.

23         (4)  Collateral subject to a collateral agreement may

24  not be released by the Chief Financial Officer Treasurer or

25  the custodian until the assumed liability is evidenced by the

26  deposit of collateral pursuant to the collateral agreement of

27  the successor entity.  The reporting requirement and pledge of

28  collateral will remain in force until the Chief Financial

29  Officer Treasurer determines that the liability no longer

30  exists.  The surviving or new qualified public depository

31  shall be responsible and liable for all of the liabilities and

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 1  obligations of each qualified public depository merged with or

 2  acquired by it.

 3         (5)  Each qualified public depository shall report any

 4  change of name and address to the Chief Financial Officer

 5  Treasurer on a form provided by the Chief Financial Officer

 6  Treasurer regardless of whether the name change is a result of

 7  an acquisition, merger, or consolidation. Notification of such

 8  change must be made within 30 calendar days after the

 9  effective date of the change.

10         (6)  The Chief Financial Officer Treasurer shall adopt

11  rules establishing procedures for mergers, acquisitions,

12  consolidations, and changes in name and address, providing

13  forms, and clarifying terms.

14         Section 330.  Section 280.11, Florida Statutes, is

15  amended to read:

16         280.11  Withdrawal from public deposits program; return

17  of pledged collateral.--

18         (1)  A qualified public depository may withdraw from

19  the public deposits program by giving written notice to the

20  Chief Financial Officer Treasurer.  The contingent liability,

21  required collateral, and reporting requirements of the

22  depository withdrawing from the program shall continue for a

23  period of 12 months after the effective date of the

24  withdrawal, except that the filing of reports may no longer be

25  required when the average monthly balance of public deposits

26  is equal to zero.  Notice of withdrawal shall be mailed or

27  delivered in sufficient time to be received by the Chief

28  Financial Officer Treasurer at least 30 days before the

29  effective date of withdrawal. The Chief Financial Officer

30  Treasurer shall timely publish the withdrawal notice in the

31  Florida Administrative Weekly which shall constitute notice to

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 1  all depositors.  The withdrawing depository shall not receive

 2  or retain public deposits after the effective date of the

 3  withdrawal until such time as it again becomes a qualified

 4  public depository. The Chief Financial Officer Treasurer

 5  shall, upon request, return to the depository that portion of

 6  the collateral pledged that is in excess of the required

 7  collateral as reported on the current public depository

 8  monthly report.  Losses of interest or other accumulations, if

 9  any, because of withdrawal under this section shall be

10  assessed and paid as provided in s. 280.09.

11         (2)  A qualified public depository which has been

12  disqualified pursuant to s. 280.051 shall not receive or

13  retain public deposits after the effective date of the

14  disqualification. Notice of and procedures for

15  disqualification shall be made in accordance with ss. 280.052

16  and 280.053. The Chief Financial Officer Treasurer shall, upon

17  request, return to the depository that portion of the

18  collateral pledged that is in excess of the required

19  collateral as reported on the current public depository

20  monthly report. Losses of interest or other accumulation, if

21  any, because of disqualification shall be paid as provided in

22  s. 280.09(2).

23         (3)  A qualified public depository which is required to

24  withdraw from the public deposits program pursuant to s.

25  280.05(1)(b) shall not receive or retain public deposits after

26  the effective date of withdrawal. The contingent liability,

27  required collateral, and reporting requirements of the

28  withdrawing depository shall continue until the effective date

29  of withdrawal. Notice of withdrawal (order of discontinuance)

30  from the Chief Financial Officer Treasurer shall be mailed to

31  the qualified public depository by registered or certified

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 1  mail. Penalties incurred because of withdrawal from the public

 2  deposits program shall be the responsibility of the

 3  withdrawing depository.

 4         Section 331.  Subsection (2), paragraphs (a), (b), (d),

 5  and (f) of subsection (5), and subsections (6), (7), and (8)

 6  of section 280.13, Florida Statutes, are amended to read:

 7         280.13  Eligible collateral.--

 8         (2)  In addition to the securities listed in subsection

 9  (1), the Chief Financial Officer Treasurer may, in his or her

10  discretion, allow the pledge of the following types of

11  securities. The Chief Financial Officer Treasurer shall, by

12  rule, define any restrictions, specific criteria, or

13  circumstances for which these instruments will be acceptable.

14         (a)  Securities of, or other interests in, any open-end

15  management investment company registered under the Investment

16  Company Act of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended

17  from time to time, provided the portfolio of such investment

18  company is limited to direct obligations of the United States

19  Government and to repurchase agreements fully collateralized

20  by such direct obligations of the United States Government and

21  provided such investment company takes delivery of such

22  collateral either directly or through an authorized custodian.

23         (b)  Collateralized Mortgage Obligations.

24         (c)  Real Estate Mortgage Investment Conduits.

25         (5)  Letters of credit issued by a Federal Home Loan

26  Bank are eligible as collateral under this section provided

27  that:

28         (a)  The letter of credit has been delivered to the

29  Chief Financial Officer Treasurer in the standard format

30  approved by the Chief Financial Officer Treasurer.

31         (b)  The letter of credit meets required conditions of:

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 1         1.  Being irrevocable.

 2         2.  Being clean and unconditional and containing a

 3  statement that it is not subject to any agreement, condition,

 4  or qualification outside of the letter of credit and providing

 5  that a beneficiary need only present the original letter of

 6  credit with any amendments and the demand form to promptly

 7  obtain funds, and that no other document need be presented.

 8         3.  Being issued, presentable, and payable at a Federal

 9  Home Loan Bank in United States dollars.  Presentation may be

10  made by the beneficiary submitting the original letter of

11  credit, including any amendments, and the demand in writing,

12  by overnight delivery.

13         4.  Containing a statement that identifies and defines

14  the Chief Financial Officer Treasurer as beneficiary.

15         5.  Containing an issue date and a date of expiration.

16         6.  Containing a term of at least 1 year and an

17  evergreen clause that provides at least 60 days written notice

18  to the beneficiary prior to expiration date for nonrenewal.

19         7.  Containing a statement that it is subject to and

20  governed by the laws of the State of Florida and that, in the

21  event of any conflict with other laws, the laws of the State

22  of Florida will control.

23         8.  Containing a statement that the letter of credit is

24  an obligation of the Federal Home Loan Bank and is in no way

25  contingent upon reimbursement.

26         9.  Any other provision found necessary under the

27  Uniform Commercial Code--Letters of Credit.

28         (d)  The Federal Home Loan Bank issuing the letter of

29  credit agrees to provide confirmation upon request from the

30  Chief Financial Officer Treasurer.  Such confirmation shall be

31  provided within 15 working days after the request, in a format

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 1  prescribed by the Chief Financial Officer Treasurer, and shall

 2  require no identification other than the qualified public

 3  depository's name and location.

 4         (f)  The qualified public depository, if notified by

 5  the Chief Financial Officer Treasurer, shall not be allowed to

 6  use letters of credit if the Federal Home Loan Bank fails to

 7  pay a draw request as provided for in the letters of credit or

 8  fails to properly complete a confirmation of such letters of

 9  credit.

10         (6)  Cash held by the Chief Financial Officer Treasurer

11  in the Treasury Cash Deposit Trust Fund or by a custodian is

12  eligible as collateral under this section.  Interest earned on

13  cash deposits that is in excess of required collateral shall

14  be paid to the qualified public depository upon request.

15         (7)  The Chief Financial Officer Treasurer may

16  disapprove any security or letter of credit that does not meet

17  the requirements of this section or any rule adopted pursuant

18  to this section or any security for which no current market

19  price can be obtained from a nationally recognized source

20  deemed acceptable to the Chief Financial Officer Treasurer or

21  cannot be converted to cash.

22         (8)  The Chief Financial Officer Treasurer shall adopt

23  rules defining restrictions and special requirements for

24  eligible collateral and clarifying terms.

25         Section 332.  Paragraphs (a), (b), (d), and (e) of

26  subsection (1) and subsection (3) of section 280.16, Florida

27  Statutes, are amended to read:

28         280.16  Requirements of qualified public depositories;

29  confidentiality.--

30         (1)  In addition to any other requirements specified in

31  this chapter, qualified public depositories shall:

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 1         (a)  Take the following actions for each public deposit

 2  account:

 3         1.  Identify the account as a "Florida public deposit"

 4  on the deposit account record with the name of the public

 5  depositor or provide a unique code for the account for such

 6  designation.

 7         2.  When the form prescribed by the Chief Financial

 8  Officer Treasurer for acknowledgment of receipt of each public

 9  deposit account is presented to the qualified public

10  depository by the public depositor opening an account, the

11  qualified public depository shall execute and return the

12  completed form to the public depositor.

13         3.  When the acknowledgment of receipt form is

14  presented to the qualified public depository by the public

15  depositor due to a change of account name, account number, or

16  qualified public depository name on an existing public deposit

17  account, the qualified public depository shall execute and

18  return the completed form to the public depositor within 45

19  calendar days after such presentation.

20         4.  When the acknowledgment of receipt form is

21  presented to the qualified public depository by the public

22  depositor on an account existing before July 1, 1998, the

23  qualified public depository shall execute and return the

24  completed form to the public depositor within 45 calendar days

25  after such presentation.

26         (b)  Within 15 days after the end of each calendar

27  month, or when requested by the Chief Financial Officer

28  Treasurer, submit to the Chief Financial Officer Treasurer a

29  written report, under oath, indicating the average daily

30  balance of all public deposits held by it during the reported

31  month, required collateral, a detailed schedule of all

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 1  securities pledged as collateral, selected financial

 2  information, and any other information that the Chief

 3  Financial Officer's Treasurer determines necessary to

 4  administer this chapter.

 5         (d)  Submit to the Chief Financial Officer Treasurer

 6  annually, not later than November 30, a report of all public

 7  deposits held for the credit of all public depositors at the

 8  close of business on September 30. Such annual report shall

 9  consist of public deposit information in a report format

10  prescribed by the Chief Financial Officer Treasurer. The

11  manner of required filing may be as a signed writing or

12  electronic data transmission, at the discretion of the

13  Treasurer.

14         (e)  Submit to the Chief Financial Officer Treasurer

15  not later than the date required to be filed with the federal

16  agency:

17         1.  A copy of the quarterly Consolidated Reports of

18  Condition and Income, and any amended reports, required by the

19  Federal Deposit Insurance Act, 12 U.S.C. ss. 1811 et seq., if

20  such depository is a bank; or

21         2.  A copy of the Thrift Financial Report, and any

22  amended reports, required to be filed with the Office of

23  Thrift Supervision if such depository is a savings and loan

24  association.

25         (3)  Any information contained in a report of a

26  qualified public depository required under this chapter or any

27  rule adopted under this chapter, together with any information

28  required of a financial institution that is not a qualified

29  public depository, shall, if made confidential by any law of

30  the United States or of this state, be considered confidential

31  and exempt from the provisions of s. 119.07(1) and not subject

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 1  to dissemination to anyone other than the Chief Financial

 2  Officer Treasurer under the provisions of this chapter;

 3  however, it is the responsibility of each qualified public

 4  depository and each financial institution from which

 5  information is required to inform the Chief Financial Officer

 6  Treasurer of information that is confidential and the law

 7  providing for the confidentiality of that information, and the

 8  Chief Financial Officer Treasurer does not have a duty to

 9  inquire into whether information is confidential.

10         Section 333.  Paragraphs (b) and (c) of subsection (2),

11  subsections (3), (4), and (6), and paragraph (c) of subsection

12  (7) of section 280.17, Florida Statutes, are amended to read:

13         280.17  Requirements for public depositors; notice to

14  public depositors and governmental units; loss of

15  protection.--In addition to any other requirement specified in

16  this chapter, public depositors shall comply with the

17  following:

18         (2)  Beginning July 1, 1998, each public depositor

19  shall take the following actions for each public deposit

20  account:

21         (b)  Execute a form prescribed by the Chief Financial

22  Officer Treasurer for identification of each public deposit

23  account and obtain acknowledgment of receipt on the form from

24  the qualified public depository at the time of opening the

25  account. Such public deposit identification and acknowledgment

26  form shall be replaced with a current form as required in

27  subsection (3).  A public deposit account existing before July

28  1, 1998, must have a form completed before September 30, 1998.

29         (c)  Maintain the current public deposit identification

30  and acknowledgment form as a valuable record.  Such form is

31  mandatory for filing a claim with the Chief Financial Officer

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 1  Treasurer upon default or insolvency of a qualified public

 2  depository.

 3         (3)  Each public depositor shall review the Chief

 4  Financial Officer's Treasurer's published list of qualified

 5  public depositories and ascertain the status of depositories

 6  used.  A public depositor shall, for status changes of

 7  depositories:

 8         (a)  Execute a replacement public deposit

 9  identification and acknowledgment form, as described in

10  subsection (2), for each public deposit account when there is

11  a merger, acquisition, name change, or other event which

12  changes the account name, account number, or name of the

13  qualified public depository.

14         (b)  Move and close public deposit accounts when an

15  institution is not included in the authorized list of

16  qualified public depositories or is shown as withdrawing.

17         (4)  Whenever public deposits are in a qualified public

18  depository that has been declared to be in default or

19  insolvent, each public depositor shall:

20         (a)  Notify the Chief Financial Officer Treasurer

21  immediately by telecommunication after receiving notice of the

22  default or insolvency from the receiver of the depository with

23  subsequent written confirmation and a copy of the notice.

24         (b)  Submit to the Chief Financial Officer Treasurer

25  for each public deposit, within 30 days after the date of

26  official notification from the Chief Financial Officer

27  Treasurer, the following:

28         1.  A claim form and agreement, as prescribed by the

29  Chief Financial Officer Treasurer, executed under oath,

30  accompanied by proof of authority to execute the form on

31  behalf of the public depositor.

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 1         2.  A completed public deposit identification and

 2  acknowledgment form, as described in subsection (2).

 3         3.  Evidence of the insurance afforded the deposit

 4  pursuant to the Federal Deposit Insurance Act.

 5         (6)  Each public depositor shall submit, not later than

 6  November 30, an annual report to the Chief Financial Officer

 7  Treasurer which shall include:

 8         (a)  The official name, mailing address, and federal

 9  employer identification number of the public depositor.

10         (b)  Verification that confirmation of public deposit

11  information as of September 30, as described in subsection

12  (5), has been completed.

13         (c)  Public deposit information in a report format

14  prescribed by the Chief Financial Officer Treasurer. The

15  manner of required filing may be as a signed writing or

16  electronic data transmission, at the discretion of the Chief

17  Financial Officer Treasurer.

18         (d)  Confirmation that a current public deposit

19  identification and acknowledgment form, as described in

20  subsection (2), has been completed for each public deposit

21  account and is in the possession of the public depositor.

22         (7)  Notices relating to the public deposits program

23  shall be mailed to public depositors and governmental units

24  from a list developed annually from:

25         (c)  Governmental units established during the year

26  that filed an annual report as a new governmental unit or

27  otherwise furnished in writing to the Chief Financial Officer

28  Treasurer its official name, address, and federal employer

29  identification number.

30         Section 334.  Subsection (2) of section 280.18, Florida

31  Statutes, is amended to read:

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 1         280.18  Protection of public depositors; liability of

 2  the state.--

 3         (2)  The liability of the state, the Chief Financial

 4  Officer Treasurer, or any state agency, or any employee or

 5  agent of the state, the Chief Financial Officer Treasurer, or

 6  a state agency, for any action taken in the performance of

 7  their powers and duties under this chapter shall be limited to

 8  that as a public depositor.

 9         Section 335.  Section 280.19, Florida Statutes, is

10  amended to read:

11         280.19  Rules.--The Chief Financial Officer Treasurer

12  shall adopt rules pursuant to ss. 120.536(1) and 120.54 to

13  administer the provisions of this chapter.

14         Section 336.  Paragraph (a) of subsection (2) of

15  section 282.1095, Florida Statutes, is amended to read:

16         282.1095  State agency law enforcement radio system.--

17         (2)(a)  The Joint Task Force on State Agency Law

18  Enforcement Communications shall consist of eight members, as

19  follows:

20         1.  A representative of the Division of Alcoholic

21  Beverages and Tobacco of the Department of Business and

22  Professional Regulation who shall be appointed by the

23  secretary of the department.

24         2.  A representative of the Division of Florida Highway

25  Patrol of the Department of Highway Safety and Motor Vehicles

26  who shall be appointed by the executive director of the

27  department.

28         3.  A representative of the Department of Law

29  Enforcement who shall be appointed by the executive director

30  of the department.

31  

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 1         4.  A representative of the Fish and Wildlife

 2  Conservation Commission who shall be appointed by the

 3  executive director of the commission.

 4         5.  A representative of the Division of Law Enforcement

 5  of the Department of Environmental Protection who shall be

 6  appointed by the secretary of the department.

 7         6.  A representative of the Department of Corrections

 8  who shall be appointed by the secretary of the department.

 9         7.  A representative of the Division of State Fire

10  Marshal of the Department of Financial Services Insurance who

11  shall be appointed by the State Fire Marshal.

12         8.  A representative of the Department of

13  Transportation who shall be appointed by the secretary of the

14  department.

15         Section 337.  Subsections (2) and (3) of section

16  284.02, Florida Statutes, are amended to read:

17         284.02  Payment of premiums by each agency; handling of

18  funds; payment of losses and expenses.--

19         (2)  All premiums paid into the fund and all moneys

20  received by the fund from investment or any other source

21  pursuant to said program shall be held by the Department of

22  Financial Services Insurance and used for the purpose of

23  paying losses, expenses incurred in adjustment of losses,

24  premiums for reinsurance, and operating expenses.

25         (3)  The Department of Financial Services Insurance is

26  authorized to employ a director of the fund and necessary

27  administrative and clerical personnel, actuaries, consultants,

28  and adjusters to maintain, operate, and administer the fund

29  and to underwrite all certificates of insurance issued by the

30  fund.  All salaries and expenses of administration and

31  operation shall be paid from the fund.

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 1         Section 338.  Section 284.04, Florida Statutes, is

 2  amended to read:

 3         284.04  Notice and information required by Department

 4  of Financial Services Insurance of all newly erected or

 5  acquired state property subject to insurance.--The Department

 6  of Management Services and all agencies in charge of state

 7  property shall notify the Department of Financial Services

 8  Insurance of all newly erected or acquired property subject to

 9  coverage as soon as erected or acquired, giving its value,

10  type of construction, location, whether inside or outside of

11  corporate limits, occupancy, and any other information the

12  Department of Financial Services Insurance may require in

13  connection with such property.  Such department or agency

14  shall also notify the Department of Financial Services

15  Insurance immediately of any change in value or occupancy of

16  any property covered by the fund.  Unless the above data is

17  submitted in writing within a reasonable time following such

18  erection, acquisition, or change, the Department of Financial

19  Services Insurance shall provide insurance coverage to the

20  extent shown by the last notification in writing to the fund

21  or in accordance with the last valuation shown by fund

22  records.  In case of disagreement between the Department of

23  Financial Services Insurance and the agency or person in

24  charge of any covered state property as to its true value, the

25  amount of the insurance to be carried thereon, the proper

26  premium rate or rates, or amount of loss settlement, the

27  matter in disagreement shall be determined by the Department

28  of Management Services.

29         Section 339.  Section 284.05, Florida Statutes, is

30  amended to read:

31  

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 1         284.05  Inspection of insured state property.--The

 2  Department of Financial Services Insurance shall inspect all

 3  permanent buildings insured by the State Risk Management Trust

 4  Fund, and whenever conditions are found to exist which, in the

 5  opinion of the Department of Financial Services Insurance, are

 6  hazardous from the standpoint of destruction by fire or other

 7  loss, the Department of Financial Services Insurance may order

 8  the same repaired or remedied, and the agency, board, or

 9  person in charge of such property is required to have such

10  dangerous conditions immediately repaired or remedied upon

11  written notice from the Department of Financial Services

12  Insurance of such hazardous conditions.  Such amounts as may

13  be necessary to comply with such notice or notices shall be

14  paid by the Department of Management Services or by the

15  agency, board, or person in charge of such property out of any

16  moneys appropriated for the maintenance of the respective

17  agency or for the repairs or permanent improvement of such

18  properties or from any incidental or contingent funds they may

19  have on hand. In the event of a disagreement between the

20  Department of Financial Services Insurance and the agency,

21  board, or person having charge of such property as to the

22  necessity of the repairs or remedies ordered, the matter in

23  disagreement shall be determined by the Department of

24  Management Services.

25         Section 340.  Section 284.06, Florida Statutes, is

26  amended to read:

27         284.06  Annual report to Governor.--The Department of

28  Financial Services Insurance shall report annually to the

29  Governor the investigations which have been made and the

30  actions which have been taken to decrease the fire hazard of

31  

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 1  the various insurable properties of the state, together with

 2  its recommendations as to further safeguards and improvements.

 3         Section 341.  Section 284.08, Florida Statutes, is

 4  amended to read:

 5         284.08  Reinsurance on excess coverage and approval by

 6  Department of Management Services.--The Department of

 7  Financial Services Insurance shall determine what excess

 8  coverage is necessary and may purchase reinsurance thereon

 9  upon approval by the Department of Management Services.

10         Section 342.  Section 284.14, Florida Statutes, is

11  amended to read:

12         284.14  State Risk Management Trust Fund; leasehold

13  interest.--In the event the state or any department or agency

14  thereof has acquired or hereafter acquires a leasehold

15  interest in any improved real property and by the terms and

16  provisions of said lease it is obligated to insure such

17  premises against loss by fire or other hazard to such

18  premises, it shall insure such premises in the State Risk

19  Management Trust Fund as required by the terms of said lease

20  or as required by the provisions of this chapter.  No state

21  agency shall enter into or acquire any such leasehold interest

22  until the coverages required to be maintained by the

23  provisions of the lease are approved in writing by the

24  Department of Financial Services Insurance.

25         Section 343.  Section 284.17, Florida Statutes, is

26  amended to read:

27         284.17  Rules.--The Department of Financial Services

28  Insurance has authority to adopt rules pursuant to ss.

29  120.536(1) and 120.54 to implement the provisions of this

30  chapter.

31  

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 1         Section 344.  Section 284.30, Florida Statutes, is

 2  amended to read:

 3         284.30  State Risk Management Trust Fund; coverages to

 4  be provided.--A state self-insurance fund, designated as the

 5  "State Risk Management Trust Fund," is created to be set up by

 6  the Department of Financial Services Insurance and

 7  administered with a program of risk management, which fund is

 8  to provide insurance, as authorized by s. 284.33, for workers'

 9  compensation, general liability, fleet automotive liability,

10  federal civil rights actions under 42 U.S.C. s. 1983 or

11  similar federal statutes, and court-awarded attorney's fees in

12  other proceedings against the state except for such awards in

13  eminent domain or for inverse condemnation or for awards by

14  the Public Employees Relations Commission.  A party to a suit

15  in any court, to be entitled to have his or her attorney's

16  fees paid by the state or any of its agencies, must serve a

17  copy of the pleading claiming the fees on the Department of

18  Financial Services Insurance; and thereafter the department

19  shall be entitled to participate with the agency in the

20  defense of the suit and any appeal thereof with respect to

21  such fees.

22         Section 345.  Section 284.31, Florida Statutes, is

23  amended to read:

24         284.31  Scope and types of coverages; separate

25  accounts.--The insurance risk management trust fund shall,

26  unless specifically excluded by the Department of Financial

27  Services Insurance, cover all departments of the State of

28  Florida and their employees, agents, and volunteers and shall

29  provide separate accounts for workers' compensation, general

30  liability, fleet automotive liability, federal civil rights

31  actions under 42 U.S.C. s. 1983 or similar federal statutes,

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 1  and court-awarded attorney's fees in other proceedings against

 2  the state except for such awards in eminent domain or for

 3  inverse condemnation or for awards by the Public Employees

 4  Relations Commission.  Unless specifically excluded by the

 5  Department of Financial Services Insurance, the insurance risk

 6  management trust fund shall provide fleet automotive liability

 7  coverage to motor vehicles titled to the state, or to any

 8  department of the state, when such motor vehicles are used by

 9  community transportation coordinators performing, under

10  contract to the appropriate department of the state, services

11  for the transportation disadvantaged under part I of chapter

12  427. Such fleet automotive liability coverage shall be primary

13  and shall be subject to the provisions of s. 768.28 and parts

14  II and III of chapter 284, and applicable rules adopted

15  thereunder, and the terms and conditions of the certificate of

16  coverage issued by the Department of Financial Services

17  Insurance.

18         Section 346.  Section 284.32, Florida Statutes, is

19  amended to read:

20         284.32  Department of Financial Services Insurance to

21  implement and consolidate.--The Department of Financial

22  Services Insurance is hereby authorized to effect a

23  consolidation and combination of all insurance coverages

24  provided herein into one insurance program in accordance with

25  the provisions of part I of chapter 287.

26         Section 347.  Subsection (1) of section 284.33, Florida

27  Statutes, is amended to read:

28         284.33  Purchase of insurance, reinsurance, and

29  services.--

30         (1)  The Department of Financial Services Insurance is

31  authorized to provide insurance, specific excess insurance,

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 1  and aggregate excess insurance through the Department of

 2  Management Services, pursuant to the provisions of part I of

 3  chapter 287, as necessary to provide insurance coverages

 4  authorized by this part, consistent with market availability.

 5  However, the Department of Financial Services Insurance may

 6  directly purchase annuities by using a structured settlement

 7  insurance consulting firm selected by the department to assist

 8  in the settlement of claims being handled by the Division of

 9  Risk Management. The selection of the structured settlement

10  insurance services consultant shall be made by using

11  competitive sealed proposals. The consulting firm shall act as

12  an agent of record for the department in procuring the best

13  annuity products available to facilitate structured settlement

14  of claims, considering price, insurer financial strength, and

15  the best interests of the state risk management program.

16  Purchase of annuities by the department using a structured

17  settlement method is excepted from competitive sealed bidding

18  or proposal requirements. The Department of Financial Services

19  Insurance is further authorized to purchase such risk

20  management services, including, but not limited to, risk and

21  claims control; safety management; and legal, investigative,

22  and adjustment services, as may be required and pay claims.

23  The department may contract with a service organization for

24  such services and advance money to such service organization

25  for deposit in a special checking account for paying claims

26  made against the state under the provisions of this part.  The

27  special checking account shall be maintained in this state in

28  a bank or savings association organized under the laws of this

29  state or of the United States. The department may replenish

30  such account as often as necessary upon the presentation by

31  

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 1  the service organization of documentation for payments of

 2  claims equal to the amount of the requested reimbursement.

 3         Section 348.  Section 284.34, Florida Statutes, is

 4  amended to read:

 5         284.34  Professional medical liability of the Board of

 6  Regents and nuclear energy liability excluded.--Unless

 7  specifically authorized by the Department of Financial

 8  Services Insurance, no coverages shall be provided by this

 9  fund for professional medical liability insurance for the

10  Board of Regents or the physicians, officers, employees, or

11  agents of the board or for liability related to nuclear energy

12  which is ordinarily subject to the standard nuclear energy

13  liability exclusion of conventional liability insurance

14  policies.  This section shall not be construed as affecting

15  the self-insurance programs of the Board of Regents

16  established pursuant to s. 240.213.

17         Section 349.  Section 284.35, Florida Statutes, is

18  amended to read:

19         284.35  Administrative personnel; expenses to be paid

20  from fund.--The Department of Financial Services Insurance is

21  hereby authorized, in accordance with current budget and

22  personnel requirements, to employ necessary administrative and

23  clerical personnel and actuarial consultants, as necessary to

24  maintain, operate, and administer the fund.  All salaries and

25  expenses of administration and operation shall be paid from

26  the fund.

27         Section 350.  Section 284.37, Florida Statutes, is

28  amended to read:

29         284.37  Premium and investment accruals used for fund

30  purposes.--All premiums paid into the fund and all moneys from

31  investments or any other source pursuant to said program shall

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 1  be held by the Department of Financial Services Insurance and

 2  used for the purpose of paying losses, premiums for insurance,

 3  risk and claims management services, and operating expenses.

 4         Section 351.  Section 284.385, Florida Statutes, is

 5  amended to read:

 6         284.385  Reporting and handling of claims.--All

 7  departments covered by the State Risk Management Trust Fund

 8  under this part shall immediately report all known or

 9  potential claims to the Department of Financial Services

10  Insurance for handling, except employment complaints which

11  have not been filed with the Florida Human Relations

12  Commission, Equal Employment Opportunity Commission, or any

13  similar agency. When deemed necessary, the Department of

14  Financial Services Insurance shall assign or reassign the

15  claim to counsel.  The assigned counsel shall report regularly

16  to the Department of Financial Services Insurance or to the

17  covered department on the status of any such claims or

18  litigation as required by the Department of Financial Services

19  Insurance.  No such claim shall be compromised or settled for

20  monetary compensation without the prior approval of the

21  Department of Financial Services Insurance and prior

22  notification to the covered department.  All departments shall

23  cooperate with the Department of Financial Services Insurance

24  in its handling of claims. The Department of Financial

25  Services and Insurance, the Department of Management Services,

26  and the Department of Banking and Finance, with the

27  cooperation of the state attorneys and the clerks of the

28  courts, shall develop a system to coordinate the exchange of

29  information concerning claims for and against the state, its

30  agencies, and its subdivisions, to assist in collection of

31  amounts due to them. The covered department shall have the

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 1  responsibility for the settlement of any claim for injunctive

 2  or affirmative relief under 42 U.S.C. s. 1983 or similar

 3  federal or state statutes.  The payment of a settlement or

 4  judgment for any claim covered and reported under this part

 5  shall be made only from the State Risk Management Trust Fund.

 6         Section 352.  Section 284.39, Florida Statutes, is

 7  amended to read:

 8         284.39  Adoption Promulgation of rules.--The Department

 9  of Financial Services may adopt Insurance is authorized to

10  promulgate rules and regulations for the proper management and

11  maintenance of the fund.

12         Section 353.  Subsections (1) and (2) of section

13  284.40, Florida Statutes, are amended to read:

14         284.40  Division of Risk Management.--

15         (1)  It shall be the responsibility of the Division of

16  Risk Management of the Department of Financial Services

17  Insurance to administer this part and the provisions of s.

18  287.131.

19         (2)  The claim files maintained by the Division of Risk

20  Management shall be confidential, shall be only for the usage

21  by the Department of Financial Services Insurance in

22  fulfilling its duties and responsibilities under this part,

23  and shall be exempt from the provisions of s. 119.07(1).

24         Section 354.  Subsection (1) of section 284.41, Florida

25  Statutes, is amended to read:

26         284.41  Transfer of personnel and funds to the Division

27  of Risk Management.--

28         (1)  All personnel and funds otherwise allocated to the

29  Department of Financial Services Insurance for this purpose

30  are transferred to the Division of Risk Management.

31  

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 1         Section 355.  Subsection (1) of section 284.42, Florida

 2  Statutes, is amended to read:

 3         284.42  Reports on state insurance program.--

 4         (1)  The Department of Financial Services Insurance,

 5  with the Department of Management Services, shall make an

 6  analysis of the state insurance program annually, which shall

 7  include:

 8         (a)  Complete underwriting information as to the nature

 9  of the risks accepted for self-insurance and those risks that

10  are transferred to the insurance market.

11         (b)  The funds allocated to the Florida Casualty Risk

12  Management Trust Fund and premiums paid for insurance through

13  the market.

14         (c)  The method of handling legal matters and the cost

15  allocated.

16         (d)  The method and cost of handling inspection and

17  engineering of risks.

18         (e)  The cost of risk management service purchased.

19         (f)  The cost of managing the State Insurance Program

20  by the Department of Financial Services Insurance and the

21  Department of Management Services.

22         Section 356.  Subsections (4) and (7) of section

23  284.44, Florida Statutes, are amended to read:

24         284.44  Salary indemnification costs of state

25  agencies.--

26         (4)  For the purpose of administering this section, the

27  Division of Risk Management of the Department of Financial

28  Services Insurance shall continue to pay all claims, but shall

29  be periodically reimbursed from funds of state agencies for

30  initial salary indemnification costs for which they are

31  responsible.

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 1         (7)  If a state agency fails to pay casualty increase

 2  premiums or salary indemnification reimbursements within 30

 3  days after being billed, the Division of Risk Management shall

 4  advise the Chief Financial Officer Comptroller.  After

 5  verifying the accuracy of the billing, the Chief Financial

 6  Officer Comptroller shall transfer the appropriate amount from

 7  any available funds of the delinquent state agency to the

 8  State Risk Management Trust Fund.

 9         Section 357.  Subsection (1) of section 284.50, Florida

10  Statutes, is amended to read:

11         284.50  Loss prevention program; safety coordinators;

12  Interagency Advisory Council on Loss Prevention; employee

13  recognition program.--

14         (1)  The head of each department of state government,

15  except the Legislature, shall designate a safety coordinator.

16  Such safety coordinator must be an employee of the department

17  and must hold a position which has responsibilities comparable

18  to those of an employee in the Senior Management System.  The

19  Department of Financial Services Insurance shall provide

20  appropriate training to the safety coordinators to permit them

21  to effectively perform their duties within their respective

22  departments.  Each safety coordinator shall, at the direction

23  of his or her department head:

24         (a)  Develop and implement the loss prevention program,

25  a comprehensive departmental safety program which shall

26  include a statement of safety policy and responsibility.

27         (b)  Provide for regular and periodic facility and

28  equipment inspections.

29         (c)  Investigate job-related employee accidents of his

30  or her department.

31  

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 1         (d)  Establish a program to promote increased safety

 2  awareness among employees.

 3         Section 358.  Subsection (9) and paragraph (c) of

 4  subsection (16) of section 287.042, Florida Statutes, are

 5  amended to read:

 6         287.042  Powers, duties, and functions.--The department

 7  shall have the following powers, duties, and functions:

 8         (9)  To furnish copies of any commodity and contractual

 9  service purchasing rules to the Chief Financial Officer

10  Comptroller and all agencies affected thereby.  The Chief

11  Financial Officer Comptroller shall not approve any account or

12  direct any payment of any account for the purchase of any

13  commodity or the procurement of any contractual service

14  covered by a purchasing or contractual service rule except as

15  authorized therein.  The department shall furnish copies of

16  rules adopted by the department to any county, municipality,

17  or other local public agency requesting them.

18         (16)

19         (c)  Agencies that sign such joint agreements are

20  financially obligated for their portion of the agreed-upon

21  funds. If any agency becomes more than 90 days delinquent in

22  paying such funds, the Department of Management Services shall

23  certify to the Chief Financial Officer Comptroller the amount

24  due, and the Chief Financial Officer Comptroller shall

25  transfer the amount due to the Grants and Donations Trust Fund

26  of the department from any of the agency's available funds.

27  The Chief Financial Officer Comptroller shall report all such

28  transfers and the reasons for such transfers to the Executive

29  Office of the Governor and the legislative appropriations

30  committees.

31  

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 1         Section 359.  Paragraph (a) of subsection (4) of

 2  section 287.057, Florida Statutes, is amended to read:

 3         287.057  Procurement of commodities or contractual

 4  services.--

 5         (4)  When the purchase price of commodities or

 6  contractual services exceeds the threshold amount provided in

 7  s. 287.017 for CATEGORY TWO, no purchase of commodities or

 8  contractual services may be made without receiving competitive

 9  sealed bids, competitive sealed proposals, or responses to an

10  invitation to negotiate or a request for a quote unless:

11         (a)  The agency head determines in writing that an

12  immediate danger to the public health, safety, or welfare or

13  other substantial loss to the state requires emergency action.

14  After the agency head makes such a written determination, the

15  agency may proceed with the procurement of commodities or

16  contractual services necessitated by the immediate danger,

17  without competition. However, such emergency procurement shall

18  be made with such competition as is practicable under the

19  circumstances. The agency shall furnish copies of the written

20  determination certified under oath and any other documents

21  relating to the emergency action to the department.  A copy of

22  the statement shall be furnished to the Chief Financial

23  Officer Comptroller with the voucher authorizing payment.  The

24  individual purchase of personal clothing, shelter, or supplies

25  which are needed on an emergency basis to avoid

26  institutionalization or placement in a more restrictive

27  setting is an emergency for the purposes of this paragraph,

28  and the filing with the department of such statement is not

29  required in such circumstances.  In the case of the emergency

30  purchase of insurance, the period of coverage of such

31  

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 1  insurance shall not exceed a period of 30 days, and all such

 2  emergency purchases shall be reported to the department.

 3         Section 360.  Subsections (2) and (5) of section

 4  287.058, Florida Statutes, are amended to read:

 5         287.058  Contract document.--

 6         (2)  The written agreement shall be signed by the

 7  agency head and the contractor prior to the rendering of any

 8  contractual service the value of which is in excess of the

 9  threshold amount provided in s. 287.017 for CATEGORY TWO,

10  except in the case of a valid emergency as certified by the

11  agency head. The certification of an emergency shall be

12  prepared within 30 days after the contractor begins rendering

13  the service and shall state the particular facts and

14  circumstances which precluded the execution of the written

15  agreement prior to the rendering of the service.  If the

16  agency fails to have the contract signed by the agency head

17  and the contractor prior to rendering the contractual service,

18  and if an emergency does not exist, the agency head shall, no

19  later than 30 days after the contractor begins rendering the

20  service, certify the specific conditions and circumstances to

21  the department as well as describe actions taken to prevent

22  recurrence of such noncompliance. The agency head may delegate

23  the certification only to other senior management agency

24  personnel.  A copy of the certification shall be furnished to

25  the Chief Financial Officer Comptroller with the voucher

26  authorizing payment. The department shall report repeated

27  instances of noncompliance by an agency to the Auditor

28  General. Nothing in this subsection shall be deemed to

29  authorize additional compensation prohibited by s. 215.425.

30  The procurement of contractual services shall not be divided

31  so as to avoid the provisions of this section.

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 1         (5)  Unless otherwise provided in the General

 2  Appropriations Act or the substantive bill implementing the

 3  General Appropriations Act, the Chief Financial Officer

 4  Comptroller may waive the requirements of this section for

 5  services which are included in s. 287.057(4)(f).

 6         Section 361.  Subsections (1) and (2) of section

 7  287.063, F.S., are amended to read:

 8         287.063  Deferred-payment commodity contracts; preaudit

 9  review.--

10         (1)(a)  When any commodity contract requires deferred

11  payments and the payment of interest, such contract shall be

12  submitted to the Chief Financial Officer Comptroller for the

13  purpose of preaudit review and approval prior to acceptance by

14  the state.

15         (b)  Contracts executed pursuant to this subsection may

16  bear interest at a rate not to exceed an average net interest

17  cost rate which shall be computed by adding 150 basis points

18  to the 20 "bond buyer" average yield index published

19  immediately preceding the first day of the calendar month in

20  which the contract is submitted to the Chief Financial Officer

21  Comptroller for preaudit review and approval.

22         (2)(a)  No funds appropriated shall be used to acquire

23  equipment through a lease or deferred-payment purchase

24  arrangement unless approved by the Chief Financial Officer

25  Comptroller as economically prudent and cost-effective.

26         (b)  The Chief Financial Officer Comptroller shall

27  establish, by rule, criteria for approving purchases made

28  under deferred-payment contracts which require the payment of

29  interest. Criteria shall include, but not be limited to, the

30  following provisions:

31  

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 1         1.  No contract shall be approved in which interest

 2  exceeds the statutory ceiling contained in this section.

 3  However, the interest component of any master equipment

 4  financing agreement entered into for the purpose of

 5  consolidated financing of a deferred-payment, installment

 6  sale, or lease-purchase shall be deemed to comply with the

 7  interest rate limitation of this section so long as the

 8  interest component of every interagency agreement under such

 9  master equipment financing agreement complies with the

10  interest rate limitation of this section.

11         2.  No deferred-payment purchase for less than $30,000

12  shall be approved, unless it can be satisfactorily

13  demonstrated and documented to the Chief Financial Officer

14  Comptroller that failure to make such deferred-payment

15  purchase would adversely affect an agency in the performance

16  of its duties.  However, the Chief Financial Officer

17  Comptroller may approve any deferred-payment purchase if the

18  Chief Financial Officer Comptroller determines that such

19  purchase is economically beneficial to the state.

20         3.  No agency shall obligate an annualized amount of

21  payments for deferred-payment purchases in excess of current

22  operating capital outlay appropriations, unless specifically

23  authorized by law or unless it can be satisfactorily

24  demonstrated and documented to the Chief Financial Officer

25  Comptroller that failure to make such deferred-payment

26  purchase would adversely affect an agency in the performance

27  of its duties.

28         4.  No contract shall be approved which extends payment

29  beyond 5 years, unless it can be satisfactorily demonstrated

30  and documented to the Chief Financial Officer Comptroller that

31  

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 1  failure to make such deferred-payment purchase would adversely

 2  affect an agency in the performance of its duties.

 3         (c)  The Chief Financial Officer Comptroller shall

 4  require written justification based on need, usage, size of

 5  the purchase, and financial benefit to the state for

 6  deferred-payment purchases made pursuant to this subsection.

 7         Section 362.  Section 287.064, Florida Statutes, is

 8  amended to read:

 9         287.064  Consolidated financing of deferred-payment

10  purchases.--

11         (1)  The Division of Bond Finance of the State Board of

12  Administration and the Chief Financial Officer Comptroller

13  shall plan and coordinate deferred-payment purchases made by

14  or on behalf of the state or its agencies or by or on behalf

15  of state community colleges participating under this section

16  pursuant to s. 240.319(4)(p).  The Division of Bond Finance

17  shall negotiate and the Chief Financial Officer Comptroller

18  shall execute agreements and contracts to establish master

19  equipment financing agreements for consolidated financing of

20  deferred-payment, installment sale, or lease purchases with a

21  financial institution or a consortium of financial

22  institutions. As used in this act, the term "deferred-payment"

23  includes installment sale and lease-purchase.

24         (a)  The period during which equipment may be acquired

25  under any one master equipment financing agreement shall be

26  limited to not more than 3 years.

27         (b)  Repayment of the whole or a part of the funds

28  drawn pursuant to the master equipment financing agreement may

29  continue beyond the period established pursuant to paragraph

30  (a).

31  

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 1         (c)  The interest rate component of any master

 2  equipment financing agreement shall be deemed to comply with

 3  the interest rate limitation imposed in s. 287.063 so long as

 4  the interest rate component of every interagency or community

 5  college agreement entered into under such master equipment

 6  financing agreement complies with the interest rate limitation

 7  imposed in s. 287.063. Such interest rate limitation does not

 8  apply when the payment obligation under the master equipment

 9  financing agreement is rated by a nationally recognized rating

10  service in any one of the three highest classifications, which

11  rating services and classifications are determined pursuant to

12  rules adopted by the Chief Financial Officer Comptroller.

13         (2)  Unless specifically exempted by the Chief

14  Financial Officer Comptroller, all deferred-payment purchases,

15  including those made by a community college that is

16  participating under this section, shall be acquired by funding

17  through master equipment financing agreements. The Chief

18  Financial Officer Comptroller is authorized to exempt any

19  purchases from consolidated financing when, in his or her

20  judgment, alternative financing would be cost-effective or

21  otherwise beneficial to the state.

22         (3)  The Chief Financial Officer Comptroller may

23  require agencies to enter into interagency agreements and may

24  require participating community colleges to enter into

25  systemwide agreements for the purpose of carrying out the

26  provisions of this act.

27         (a)  The term of any interagency or systemwide

28  agreement shall expire on June 30 of each fiscal year but

29  shall automatically be renewed annually subject to

30  appropriations and deferred-payment schedules.  The period of

31  any interagency or systemwide agreement shall not exceed the

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 1  useful life of the equipment for which the agreement was made

 2  as determined by the Chief Financial Officer Comptroller.

 3         (b)  The interagency or systemwide agreements may

 4  include, but are not limited to, equipment costs, terms, and a

 5  pro rata share of program and issuance expenses.

 6         (4)  Each community college may choose to have its

 7  purchasing agreements involving administrative and

 8  instructional materials consolidated under this section.

 9         (5)  The Chief Financial Officer Comptroller is

10  authorized to automatically debit each agency's funds and each

11  community college's portion of the Community College Program

12  Fund consistently with the deferred-payment schedules.

13         (6)  There is created the Consolidated Payment Trust

14  Fund in the Chief Financial Officer's Comptroller's office for

15  the purpose of implementing the provisions of this act.  All

16  funds debited from each agency and each community college may

17  be deposited in the trust fund and shall be used to meet the

18  financial obligations incurred pursuant to this act.  Any

19  income from the investment of funds may be used to fund

20  administrative costs associated with this program.

21         (7)  The Chief Financial Officer Comptroller may borrow

22  sufficient amounts from trust funds to pay issuance expenses

23  for the purposes of administering this section. Such amounts

24  shall be subject to approval of the Executive Office of the

25  Governor and subject to the notice, review, and objection

26  procedures of s. 216.177.  The amounts approved pursuant to

27  this subsection are hereby appropriated for transfer to the

28  Consolidated Payment Trust Fund and appropriated from the

29  Consolidated Payment Trust Fund to pay issuance expenses.

30  Amounts loaned shall be repaid as soon as practicable not to

31  

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 1  exceed the length of time obligations are issued to establish

 2  the master equipment financing agreement.

 3         (8)  The State Board of Administration and the Chief

 4  Financial Officer Comptroller, individually, shall adopt rules

 5  to implement their respective responsibilities under this

 6  section.

 7         Section 363.  Paragraph (d) of subsection (4) of

 8  section 287.09451, Florida Statutes, is amended to read:

 9         287.09451  Office of Supplier Diversity; powers,

10  duties, and functions.--

11         (4)  The Office of Supplier Diversity shall have the

12  following powers, duties, and functions:

13         (d)  To monitor the degree to which agencies procure

14  services, commodities, and construction from minority business

15  enterprises in conjunction with the Department of Financial

16  Services Banking and Finance as specified in s. 17.11.

17         Section 364.  Section 287.115, Florida Statutes, is

18  amended to read:

19         287.115  Chief Financial Officer Comptroller; annual

20  report.--The Chief Financial Officer Comptroller shall submit

21  to the office of the Auditor General an annual report on those

22  contractual service contracts disallowed by the Chief

23  Financial Officer Comptroller, which report shall include, but

24  is not limited to, the name of the user agency, the name of

25  the firm or individual from which the contractual service was

26  to be acquired, a description of the contractual service, the

27  financial terms of the contract, and the reason for rejection.

28         Section 365.  Section 287.131, Florida Statutes, is

29  amended to read:

30         287.131  Assistance of Department of Financial Services

31  Insurance.--The Department of Financial Services Insurance

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 1  shall provide the Department of Management Services with

 2  technical assistance in all matters pertaining to the purchase

 3  of insurance for all agencies, and shall make surveys of the

 4  insurance needs of the state and all departments thereof,

 5  including the benefits, if any, of self-insurance.

 6         Section 366.  Section 287.175, Florida Statutes, is

 7  amended to read:

 8         287.175  Penalties.--A violation of this part or a rule

 9  adopted hereunder, pursuant to applicable constitutional and

10  statutory procedures, constitutes misuse of public position as

11  defined in s. 112.313(6), and is punishable as provided in s.

12  112.317.  The Chief Financial Officer Comptroller shall report

13  incidents of suspected misuse to the Commission on Ethics, and

14  the commission shall investigate possible violations of this

15  part or rules adopted hereunder when reported by the Chief

16  Financial Officer Comptroller, notwithstanding the provisions

17  of s. 112.324.  Any violation of this part or a rule adopted

18  hereunder shall be presumed to have been committed with

19  wrongful intent, but such presumption is rebuttable.  Nothing

20  in this section is intended to deny rights provided to career

21  service employees by s. 110.227.

22         Section 367.  Paragraph (f) of subsection (5) of

23  section 288.1045, Florida Statutes, is amended to read:

24         288.1045  Qualified defense contractor tax refund

25  program.--

26         (5)  ANNUAL CLAIM FOR REFUND FROM A QUALIFIED DEFENSE

27  CONTRACTOR.--

28         (f)  Upon approval of the tax refund pursuant to

29  paragraphs (c) and (d), the Chief Financial Officer

30  Comptroller shall issue a warrant for the amount included in

31  the final order. In the event of any appeal of the final

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 1  order, the Chief Financial Officer Comptroller may not issue a

 2  warrant for a refund to the qualified applicant until the

 3  conclusion of all appeals of the final order.

 4         Section 368.  Paragraph (g) of subsection (5) of

 5  section 288.106, Florida Statutes, is amended to read:

 6         288.106  Tax refund program for qualified target

 7  industry businesses.--

 8         (5)  ANNUAL CLAIM FOR REFUND.--

 9         (g)  Upon approval of the tax refund under paragraphs

10  (c), (d), and (e), the Chief Financial Officer Comptroller

11  shall issue a warrant for the amount specified in the final

12  order. If the final order is appealed, the Chief Financial

13  Officer Comptroller may not issue a warrant for a refund to

14  the qualified target industry business until the conclusion of

15  all appeals of that order.

16         Section 369.  Paragraph (d) of subsection (5) of

17  section 288.109, Florida Statutes, is amended to read:

18         288.109  One-Stop Permitting System.--

19         (5)  By January 1, 2001, the following state agencies,

20  and the programs within such agencies which require the

21  issuance of licenses, permits, and approvals to businesses,

22  must also be integrated into the One-Stop Permitting System:

23         (d)  The Department of Financial Services Insurance.

24         Section 370.  Paragraphs (b) and (d) of subsection (1)

25  and subsection (2) of section 288.1253, Florida Statutes, are

26  amended to read:

27         288.1253  Travel and entertainment expenses.--

28         (1)  As used in this section:

29         (b)  "Entertainment expenses" means the actual,

30  necessary, and reasonable costs of providing hospitality for

31  business clients or guests, which costs are defined and

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 1  prescribed by rules adopted by the Office of Tourism, Trade,

 2  and Economic Development, subject to approval by the Chief

 3  Financial Officer Comptroller.

 4         (d)  "Travel expenses" means the actual, necessary, and

 5  reasonable costs of transportation, meals, lodging, and

 6  incidental expenses normally incurred by a traveler, which

 7  costs are defined and prescribed by rules adopted by the

 8  Office of Tourism, Trade, and Economic Development, subject to

 9  approval by the Chief Financial Officer Comptroller.

10         (2)  Notwithstanding the provisions of s. 112.061, the

11  Office of Tourism, Trade, and Economic Development shall adopt

12  rules by which it may make expenditures by advancement or

13  reimbursement, or a combination thereof, to:

14         (a)  The Governor, the Lieutenant Governor, security

15  staff of the Governor or Lieutenant Governor, the Commissioner

16  of Film and Entertainment, or staff of the Office of Film and

17  Entertainment for travel expenses or entertainment expenses

18  incurred by such individuals solely and exclusively in

19  connection with the performance of the statutory duties of the

20  Office of Film and Entertainment.

21         (b)  The Governor, the Lieutenant Governor, security

22  staff of the Governor or Lieutenant Governor, the Commissioner

23  of Film and Entertainment, or staff of the Office of Film and

24  Entertainment for travel expenses or entertainment expenses

25  incurred by such individuals on behalf of guests, business

26  clients, or authorized persons as defined in s. 112.061(2)(e)

27  solely and exclusively in connection with the performance of

28  the statutory duties of the Office of Film and Entertainment.

29         (c)  Third-party vendors for the travel or

30  entertainment expenses of guests, business clients, or

31  authorized persons as defined in s. 112.061(2)(e) incurred

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 1  solely and exclusively while such persons are participating in

 2  activities or events carried out by the Office of Film and

 3  Entertainment in connection with that office's statutory

 4  duties.

 5  

 6  The rules shall be subject to approval by the Chief Financial

 7  Officer Comptroller prior to promulgation.  The rules shall

 8  require the submission of paid receipts, or other proof of

 9  expenditure prescribed by the Chief Financial Officer

10  Comptroller, with any claim for reimbursement and shall

11  require, as a condition for any advancement of funds, an

12  agreement to submit paid receipts or other proof of

13  expenditure and to refund any unused portion of the

14  advancement within 15 days after the expense is incurred or,

15  if the advancement is made in connection with travel, within

16  10 working days after the traveler's return to headquarters.

17  However, with respect to an advancement of funds made solely

18  for travel expenses, the rules may allow paid receipts or

19  other proof of expenditure to be submitted, and any unused

20  portion of the advancement to be refunded, within 10 working

21  days after the traveler's return to headquarters. Operational

22  or promotional advancements, as defined in s. 288.35(4),

23  obtained pursuant to this section shall not be commingled with

24  any other state funds.

25         Section 371.  Subsection (10) of section 288.709,

26  Florida Statutes, is amended to read:

27         288.709  Powers of the Florida Black Business

28  Investment Board.--The board shall have all the powers

29  necessary or convenient to carry out and effectuate the

30  purposes and provisions of ss. 9-21, chapter 85-104, Laws of

31  Florida, including, but not limited to, the power to:

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 1         (10)  Invest any funds held in reserves or sinking

 2  funds, or any funds not required for immediate disbursement,

 3  in such investments as may be authorized for trust funds under

 4  s. 215.47; provided, such investments will be made on behalf

 5  of the board by the Chief Financial Officer Office of State

 6  Treasurer or by another trustee appointed for that purpose.

 7         Section 372.  Paragraph (b) of subsection (4) of

 8  section 288.712, Florida Statutes, is amended to read:

 9         288.712  Florida guarantor funds.--

10         (4)

11         (b)  If the board chooses to establish a loan guaranty

12  program, it shall utilize the Black Business Loan Guaranty

13  Trust Fund in the State Treasury, consisting of moneys

14  deposited or credited to the Black Business Loan Guaranty

15  Trust Fund pursuant to appropriation made by law; any grants,

16  gifts, and contributions received pursuant to ss. 9-21,

17  chapter 85-104, Laws of Florida; all moneys recovered

18  following defaults; and any other moneys obtained by the board

19  for this purpose.  The Black Business Loan Guaranty Trust Fund

20  shall be administered by the board in trust for the purposes

21  of this section and shall at no time be part of general public

22  funds under the following procedures:

23         1.  The board shall utilize the Black Business Loan

24  Guaranty Program Administrative and Loss Reserve Fund in the

25  State Treasury, consisting of all premiums charged and

26  collected in accordance with this section and any income

27  earned from the moneys in the account.  All expenses of the

28  board in carrying out the purposes of this subsection shall be

29  paid from the Black Business Loan Guaranty Program

30  Administrative and Loss Reserve Fund.  Any moneys to the

31  credit of the Black Business Loan Guaranty Program

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 1  Administrative and Loss Reserve Fund in excess of the amount

 2  necessary to fund the board's activity shall be held as a loss

 3  reserve to pay claims arising from defaults on loans

 4  underwritten in accordance with this section.

 5         2.  Any claims against the state arising from defaults

 6  shall be payable initially from the Black Business Loan

 7  Guaranty Program Administrative and Loss Reserve Fund and,

 8  secondarily, from the Black Business Loan Guaranty Trust Fund.

 9         3.  The board as loan guarantor may exercise all rights

10  and powers of a company authorized by the Department of

11  Financial Services Insurance to guarantee loans but shall not

12  be subject to any requirements of an insurance company under

13  the Florida Insurance Code, nor to any rules of the Department

14  of Financial Services Insurance; however, the board shall

15  refer to the insurance code and rules thereunder when

16  designing and administering such program.  The board shall

17  follow sound actuarial principles when administering this

18  program. The board shall establish a premium for the loan

19  guaranty and such rules as may be necessary to carry out the

20  purposes of this section.

21         4.  The board may guarantee no more than 20 percent of

22  the principal of a loan to a black business enterprise.

23         Section 373.  Paragraph (a) of subsection (1) of

24  section 288.776, Florida Statutes, is amended to read:

25         288.776  Board of directors; powers and duties.--

26         (1)(a)  The corporation shall have a board of directors

27  consisting of 15 members representing all geographic areas of

28  the state. Minority and gender representation must be

29  considered when making appointments to the board. The board

30  membership must include:

31  

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 1         1.  A representative of the following businesses, all

 2  of which must be registered to do business in this state: a

 3  foreign bank, a state bank, a federal bank, an insurance

 4  company involved in covering trade financing risks, and a

 5  small or medium-sized exporter.

 6         2.  The following persons or their designee: the

 7  President of Enterprise Florida, Inc., the Chief Financial

 8  Officer Comptroller, the Secretary of State, a senior official

 9  of the United States Department of Commerce, and the chair of

10  the Florida Black Business Investment Board.

11         Section 374.  Section 288.778, Florida Statutes, is

12  amended to read:

13         288.778  Department of Financial Services Banking and

14  Finance.--The Department of Financial Services Banking and

15  Finance shall review the corporation's activities once every

16  24 months to determine compliance with this part and other

17  related laws and rules and to evaluate the corporation's

18  operations.  The department shall prepare a report based on

19  its review and evaluation with recommendation for any

20  corrective action.  The president shall submit to the

21  department regular reports on the corporation's activities.

22  The content and frequency of such reports shall be determined

23  by the department.  The department shall charge a fee for

24  conducting the review and evaluation and preparing the related

25  report, which fee shall not be in excess of the examination

26  fee paid by financial institutions chartered or licensed under

27  the financial institutions code of this state.

28         Section 375.  Paragraphs (a), (e), and (k) of

29  subsection (3) of section 288.99, Florida Statutes, are

30  amended and paragraphs (o) and (p) are added to that

31  subsection, paragraph (e) of subsection (4), subsection (7),

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 1  paragraph (c) of subsection (8), paragraphs (b) and (h) of

 2  subsection (10), and paragraph (b) of subsection (14) of that

 3  section are amended, and subsection (17) is added to that

 4  section, to read:

 5         288.99  Certified Capital Company Act.--

 6         (3)  DEFINITIONS.--As used in this section, the term:

 7         (a)  "Affiliate of an insurance company" means:

 8         1.  Any person directly or indirectly beneficially

 9  owning, whether through rights, options, convertible

10  interests, or otherwise, controlling, or holding power to vote

11  15 10 percent or more of the outstanding voting securities or

12  other ownership interests of the insurance company;

13         2.  Any person 15 10 percent or more of whose

14  outstanding voting securities or other voting ownership

15  interest is directly or indirectly beneficially owned, whether

16  through rights, options, convertible interests, or otherwise,

17  controlled, or held with power to vote by the insurance

18  company;

19         3.  Any person directly or indirectly controlling,

20  controlled by, or under common control with the insurance

21  company;

22         4.  A partnership in which the insurance company is a

23  general partner; or

24         5.  Any person who is a principal, director, employee,

25  or agent of the insurance company or an immediate family

26  member of the principal, director, employee, or agent.

27         (e)  "Department" means the Department of Financial

28  Services Banking and Finance.

29         (k)  "Qualified business" means a business that meets

30  the following conditions:

31  

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 1         1.  The business is headquartered in this state and its

 2  principal business operations are located in this state or at

 3  least 75 percent of the employees are employed in this state.

 4         2.  At the time a certified capital company makes an

 5  initial investment in a business, the business is a small

 6  business concern as defined in 13 C.F.R. s. 121.301(c)

 7  121.201, "Size Standards Used to Define Small Business

 8  Concerns" of the United States Small Business Administration

 9  which is involved in manufacturing, processing or assembling

10  products, conducting research and development, or providing

11  services.

12         3.  At the time a certified capital company makes an

13  initial investment in a business, the business certifies in an

14  affidavit that:

15         a.  The business is unable to obtain conventional

16  financing, which means that the business has failed in an

17  attempt to obtain funding for a loan from a bank or other

18  commercial lender or that the business cannot reasonably be

19  expected to qualify for such financing under the standards of

20  commercial lending;

21         b.  The business plan for the business projects that

22  the business is reasonably expected to achieve in excess of

23  $25 million in sales revenue within 5 years after the initial

24  investment, or the business is located in a designated Front

25  Porch community, enterprise zone, urban high crime area, rural

26  job tax credit county, or nationally recognized historic

27  district;

28         c.  The business will maintain its headquarters in this

29  state for the next 10 years and any new manufacturing facility

30  financed by a qualified investment will remain in this state

31  for the next 10 years, or the business is located in a

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 1  designated Front Porch community, enterprise zone, urban high

 2  crime area, rural job tax credit county, or nationally

 3  recognized historic district; and

 4         d.  The business has fewer than 200 employees and at

 5  least 75 percent of the employees are employed in this state.

 6  For purposes of this subsection, the term "qualified business"

 7  also includes the Florida Black Business Investment Board, any

 8  entity majority owned by the Florida Black Business Investment

 9  Board, or any entity in which the Florida Black Business

10  Investment Board holds a majority voting interest on the board

11  of directors.

12  

13  A business predominantly engaged in retail sales, real estate

14  development, insurance, banking, lending, oil and gas

15  exploration, or engaged in professional services provided by

16  accountants, lawyers, or physicians does not constitute a

17  qualified business.

18         (o)  "Program One" means the $150 million in premium

19  tax credits issued under this section in 1999, the allocation

20  of such credits under this section, and the regulation of

21  certified capital companies and investments made by them

22  hereunder.

23         (p)  "Program Two" means the $150 million in premium

24  tax credits to be issued under subsection (17), the allocation

25  of such credits, and the regulation of certified capital

26  companies and investments made by them thereunder.

27         (4)  CERTIFICATION; GROUNDS FOR DENIAL OR

28  DECERTIFICATION.--

29         (e)  The certified capital company shall file a copy of

30  its certification with the office by January 31 of each year,

31  1999.

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 1         (7)  ANNUAL TAX CREDIT; MAXIMUM AMOUNT; ALLOCATION

 2  PROCESS.--

 3         (a)  The total amount of tax credits which may be

 4  allocated by the department office shall not exceed $150

 5  million. The total amount of annual tax credits which may be

 6  used by certified investors under this act shall not exceed 10

 7  percent of the total available tax credits $15 million

 8  annually.

 9         (b)  The department office shall be responsible for

10  allocating premium tax credits as provided for in this act to

11  certified capital companies.

12         (c)  Each certified capital company must apply to the

13  department office for an allocation of premium tax credits for

14  potential certified investors by a date and March 15, 1999, on

15  a form developed by the department office with the cooperation

16  of the Department of Revenue.  The form shall be accompanied

17  by an affidavit from each potential certified investor

18  confirming that the potential certified investor has agreed to

19  make an investment of certified capital in a certified capital

20  company up to a specified amount, subject only to the receipt

21  of a premium tax credit allocation pursuant to this

22  subsection. No allocation shall be made to the potential

23  investors of a certified capital company unless such certified

24  capital company has filed premium tax allocation claims that

25  would result in an allocation to the potential investors in

26  such certified capital company of not less than $15 million in

27  the aggregate.

28         (d)  Within 15 days following the date established by

29  the department On or before April 1, 1999, the department

30  office shall inform each certified capital company of its

31  

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 1  share of total premium tax credits available for allocation to

 2  each of its potential investors.

 3         (e)  If a certified capital company does not receive

 4  certified capital equaling the amount of premium tax credits

 5  allocated to a potential certified investor for which the

 6  investor filed a premium tax allocation claim within 10

 7  business days after the investor received a notice of

 8  allocation, the certified capital company shall notify the

 9  department office by overnight common carrier delivery service

10  of the company's failure to receive the capital.  That portion

11  of the premium tax credits allocated to the certified capital

12  company shall be forfeited.  If the department office must

13  make a pro rata allocation under paragraph (f), the department

14  office shall reallocate such available credits among the other

15  certified capital companies on the same pro rata basis as the

16  initial allocation.

17         (f)  If the total amount of capital committed by all

18  certified investors to certified capital companies in premium

19  tax allocation claims exceeds the aggregate cap on the amount

20  of credits that may be awarded, the premium tax credits that

21  may be allowed to any one certified investor shall be

22  allocated using the following ratio:

23  

24                       A/B = X/$150,000,000

25  

26  where the letter "A" represents the total amount of certified

27  capital certified investors have agreed to invest in any one

28  certified capital company, the letter "B" represents the

29  aggregate amount of certified capital that all certified

30  investors have agreed to invest in all certified capital

31  companies, the letter "X" is the numerator and represents the

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 1  total amount of premium tax credits and certified capital that

 2  may be allocated to a certified capital company in calendar

 3  year 1999, and $150 million is the denominator and represents

 4  the total amount of premium tax credits and certified capital

 5  that may be allocated to all certified investors in calendar

 6  year 1999. Any such premium tax credits are not first

 7  available for utilization until annual filings are made in

 8  2001 for calendar year 2000, and the tax credits may be used

 9  at a rate not to exceed 10 percent annually.

10         (g)  The maximum amount of certified capital for which

11  premium tax allocation claims may be filed on behalf of any

12  certified investor and its affiliates by one or more certified

13  companies may not exceed 15 percent of the total tax credits

14  available $15 million.

15         (h)  To the extent that less than $150 million in

16  certified capital is raised in connection with the procedure

17  set forth in paragraphs (c)-(g), the department may adopt

18  rules to allow a subsequent allocation of the remaining

19  premium tax credits authorized under this section.

20         (i)  The department shall issue a certification letter

21  for each certified investor, showing the amount invested in

22  the certified capital company. The applicable certified

23  capital company shall attest to the validity of the

24  certification letter.

25         (8)  ANNUAL TAX CREDIT; CLAIM PROCESS.--

26         (c)  The department office shall review the form, and

27  any supplemental documentation, submitted by each certified

28  capital company for the purpose of verifying:

29         1.  That the businesses in which certified capital has

30  been invested by the certified capital company are in fact

31  qualified businesses, and that the amount of certified capital

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 1  invested by the certified capital company is as represented in

 2  the form.

 3         2.  The amount of certified capital invested in the

 4  certified capital company by the certified investors.

 5         3.  The amount of premium tax credit available to

 6  certified investors.

 7         (10)  DECERTIFICATION.--

 8         (b)  Nothing contained in this subsection shall be

 9  construed to limit the department's Comptroller's authority to

10  conduct audits of certified capital companies as deemed

11  appropriate and necessary.

12         (h)  The department office shall send written notice to

13  the address of each certified investor whose premium tax

14  credit has been subject to recapture or forfeiture, using the

15  address last shown on the last premium tax filing.

16         (14)  RULEMAKING AUTHORITY.--

17         (b)  The department office may adopt any rules

18  necessary to carry out its duties, obligations, and powers

19  related to the administration, review, and reporting

20  provisions of this section and may perform any other acts

21  necessary for the proper administration and enforcement of

22  such duties, obligations, and powers.

23         (17)  Notwithstanding the limitations set forth in

24  paragraph (7)(a), in the first fiscal year in which the total

25  insurance premium tax collections as determined by the Revenue

26  Estimating Conference exceed collections for fiscal year

27  2000-2001 by more than the total amount of tax credits issued

28  pursuant to this section which were used by certified

29  investors in that year, the department may allocate to

30  certified investors in accordance with this section tax

31  credits for Program Two. The department shall establish, by

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 1  rule, a date and procedures by which certified capital

 2  companies must file applications for allocations of such

 3  additional premium tax credits, which date shall be no later

 4  than 120 days from the date of determination by the Revenue

 5  Estimating Conference. With respect to new certified capital

 6  invested and premium tax credits earned pursuant to this

 7  subsection, the schedule specified in subparagraphs

 8  (5)(a)1.-4. is satisfied by investments by December 31 of the

 9  2nd, 3rd, 4th, and 5th calendar year, respectively, after the

10  date established by the department for applications of

11  additional premium tax credits. The department shall adopt

12  rules by which an entity not already certified as a certified

13  capital company may apply for certification as a certified

14  capital company for participation in this additional

15  allocation.

16         Section 376.  Paragraph (c) of subsection (1) of

17  section 289.051, Florida Statutes, is amended to read:

18         289.051  Membership of financial institutions; loans to

19  corporation, limitations.--

20         (1)  Any financial institution may request membership

21  in the corporation by making application to the board of

22  directors on such form and in such manner as said board of

23  directors may require, and membership shall become effective

24  upon acceptance of such application by said board.  Each

25  member of the corporation shall make loans to the corporation

26  as and when called upon by it to do so, on such terms and

27  other conditions as shall be approved from time to time by the

28  board of directors, subject to the following conditions:

29         (c)  The total amount outstanding on loans to the

30  corporation made by any member at any one time, when added to

31  

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 1  the amount of the investment in the capital stock of the

 2  corporation then held by such member, shall not exceed:

 3         1.  Twenty percent of the total amount then outstanding

 4  on loans to the corporation by all members, including, in said

 5  total amount outstanding, amounts validly called for loan but

 6  not yet loaned.

 7         2.  The following limit, to be determined as of the

 8  time such member becomes a member on the basis of the audited

 9  balance sheet of such member at the close of its fiscal year

10  immediately preceding its application for membership, or, in

11  the case of an insurance company, its last annual statement to

12  the Department of Financial Services Insurance: 2.5 percent of

13  the capital and surplus of commercial banks and trust

14  companies; 0.5 percent of the total outstanding loans made by

15  savings and loan associations and building and loan

16  associations; 2.5 percent of the capital and unassigned

17  surplus of stock insurance companies, except fire insurance

18  companies; 2.5 percent of the unassigned surplus of mutual

19  insurance companies, except fire insurance companies; 0.1

20  percent of the assets of fire insurance companies; and such

21  limits as may be approved by the board of directors of the

22  corporation for other financial institutions.

23         Section 377.  Subsection (1) of section 289.081,

24  Florida Statutes, is amended to read:

25         289.081  Amendments to articles of incorporation.--

26         (1)  The articles of incorporation may be amended by

27  the votes of the stockholders and the members of the

28  corporation, voting separately by classes, and such amendments

29  shall require approval by the affirmative vote of two-thirds

30  of the votes to which the stockholders shall be entitled and

31  two-thirds of the votes to which the members shall be

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 1  entitled. No amendment of the articles of incorporation which

 2  is inconsistent with the general purposes expressed herein, or

 3  which authorizes any additional class of capital stock to be

 4  issued, or which eliminates or curtails the right of the

 5  Department of Financial Services Banking and Finance to

 6  examine the corporation or the obligation of the corporation

 7  to make reports as provided in s. 289.121, shall be made.  No

 8  amendment of the articles of incorporation which increases the

 9  obligation of a member to make loans to the corporation, or

10  makes any change in the principal amount, interest rate,

11  maturity date, or in the security or credit position of any

12  outstanding loan of a member to the corporation, or affects a

13  member's right to withdraw from membership as provided herein,

14  or affects a member's voting rights as provided herein, shall

15  be made without the consent of each member affected by such

16  amendment.

17         Section 378.  Section 289.121, Florida Statutes, is

18  amended to read:

19         289.121  Periodic examinations; reports.--The

20  corporation shall be examined at least once annually by the

21  Department of Financial Services Banking and Finance and shall

22  make reports of its condition not less than annually to that

23  said department and more frequently upon call of the

24  department, which in turn shall make copies of such reports

25  available to the Department of Insurance and the Governor; and

26  the corporation shall also furnish such other information as

27  may from time to time be required by the Department of

28  Financial Services Banking and Finance and Department of

29  State.  The corporation shall pay the actual cost of said

30  examinations.  The Department of Financial Services Banking

31  and Finance shall exercise the same power and authority over

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 1  corporations organized under this act as is exercised over

 2  financial institutions under the provisions of the financial

 3  institutions codes, when such codes are not in conflict with

 4  this act.

 5         Section 379.  Section 292.085, Florida Statutes, is

 6  amended to read:

 7         292.085  Department of Veterans' Affairs Tobacco

 8  Settlement Trust Fund.--

 9         (1)  The Department of Veterans' Affairs Tobacco

10  Settlement Trust Fund is created within that department. Funds

11  to be credited to the trust fund shall consist of funds

12  disbursed, by nonoperating transfer, from the Department of

13  Financial Services Banking and Finance Tobacco Settlement

14  Clearing Trust Fund in amounts equal to the annual

15  appropriations made from this trust fund.

16         (2)  Notwithstanding the provisions of s. 216.301 and

17  pursuant to s. 216.351, any unencumbered balance in the trust

18  fund at the end of any fiscal year and any encumbered balance

19  remaining undisbursed on December 31 of the same calendar year

20  shall revert to the Department of Financial Services Banking

21  and Finance Tobacco Settlement Clearing Trust Fund.

22         Section 380.  Section 313.02, Florida Statutes, is

23  amended to read:

24         313.02  Bond.--Every harbormaster appointed for any

25  port shall give an approved bond in the sum of $500, payable

26  to the Governor of the state, for the faithful performance of

27  the harbormaster's duty, such bond to be approved by the

28  county commissioners of the county in which the port is

29  situated, and by the Department of Financial Services Banking

30  and Finance, and to be filed with the Department of State.

31  

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 1         Section 381.  Section 314.02, Florida Statutes, is

 2  amended to read:

 3         314.02  Bond.--Each harbormaster so appointed shall

 4  enter into a bond in the penal sum of $2,000, with two or more

 5  sureties, payable to the Governor of the state and the

 6  Governor's successors in office, conditioned for the faithful

 7  discharge of the duties of the harbormaster's office, by the

 8  harbormaster and his or her deputies, and for the payment of

 9  any damage any person may sustain in consequence of any

10  wrongful act of such officer or deputy under color of the

11  harbormaster's office; such bond to be approved by the county

12  commissioners of the county in which is situated said port and

13  by the Department of Financial Services Banking and Finance,

14  and to be filed with the Department of State.

15         Section 382.  Paragraph (b) of subsection (5) of

16  section 316.3025, Florida Statutes, is amended to read:

17         316.3025  Penalties.--

18         (5)

19         (b)  All penalties imposed and collected under this

20  section by any state agency having jurisdiction shall be paid

21  to the Chief Financial Officer Treasurer, who shall credit the

22  total amount collected to the State Transportation Trust Fund

23  for use in repairing and maintaining the roads of this state.

24         Section 383.  Subsection (6) of section 316.545,

25  Florida Statutes, is amended to read:

26         316.545  Weight and load unlawful; special fuel and

27  motor fuel tax enforcement; inspection; penalty; review.--

28         (6)  Any officer or agent collecting the penalties

29  herein imposed shall give to the owner or driver of the

30  vehicle an official receipt for all penalties collected.  Such

31  officers or agents of the state departments shall cooperate

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 1  with the owners or drivers of motor vehicles so as not to

 2  delay unduly the vehicles. All penalties imposed and collected

 3  under this section by any state agency having jurisdiction

 4  shall be paid to the Chief Financial Officer Treasurer, who

 5  shall credit the total amount thereof to the State

 6  Transportation Trust Fund, which shall be used to repair and

 7  maintain the roads of this state and to enforce this section.

 8         Section 384.  Paragraph (c) of subsection (5) of

 9  section 320.02, Florida Statutes, is amended to read:

10         320.02  Registration required; application for

11  registration; forms.--

12         (5)

13         (c)  For purposes of providing proof of purchase of

14  required insurance coverage under this subsection, the

15  Department of Financial Services Insurance shall require that

16  uniform proof-of-purchase cards specified by the Department of

17  Highway Safety and Motor Vehicles be furnished by insurers

18  writing motor vehicle liability insurance in this state.  Any

19  person altering or counterfeiting such a card or making a

20  false affidavit in order to furnish false proof or to

21  knowingly permit another person to furnish false proof is

22  guilty of a misdemeanor of the first degree, punishable as

23  provided in s. 775.082 or s. 775.083.

24         Section 385.  Subsection (5) of section 320.081,

25  Florida Statutes, is amended to read:

26         320.081  Collection and distribution of annual license

27  tax imposed on the following type units.--

28         (5)  The department shall keep records showing the

29  total number of stickers issued to each type unit governed by

30  this section, the total amount of license taxes collected, and

31  the county or city wherein each such unit is located and shall

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 1  from month to month certify to the Chief Financial Officer

 2  Comptroller the amount derived from license taxes in each

 3  county and each city within the county. Such amount, less the

 4  amount of $1.50 collected on each license, shall be paid to

 5  the counties and cities within the counties wherein the unit

 6  or units are located as follows: one-half to the district

 7  school board and the remainder either to the board of county

 8  commissioners, for units which are located within the

 9  unincorporated areas of the county, or to any city within such

10  county, for units which are located within its corporate

11  limits. Payment shall be by warrant drawn by the Chief

12  Financial Officer Comptroller upon the treasury, which amount

13  is hereby appropriated monthly out of the License Tax

14  Collection Trust Fund.

15         Section 386.  Paragraphs (b) and (c) of subsection (5)

16  of section 320.20, Florida Statutes, are amended to read:

17         320.20  Disposition of license tax moneys.--The revenue

18  derived from the registration of motor vehicles, including any

19  delinquent fees and excluding those revenues collected and

20  distributed under the provisions of s. 320.081, must be

21  distributed monthly, as collected, as follows:

22         (5)

23         (b)  The Chief Financial Officer State Comptroller each

24  month shall deposit in the State Transportation Trust Fund an

25  amount, drawn from other funds in the State Treasury which are

26  not immediately needed or are otherwise in excess of the

27  amount necessary to meet the requirements of the State

28  Treasury, which when added to such remaining revenues each

29  month will equal one-twelfth of the amount of the anticipated

30  annual revenues to be deposited in the State Transportation

31  Trust Fund under paragraph (a) as estimated by the most recent

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 1  revenue estimating conference held pursuant to s. 216.136(3).

 2  The transfers required hereunder may be suspended by action of

 3  the Legislative Budget Commission in the event of a

 4  significant shortfall of state revenues.

 5         (c)  In any month in which the remaining revenues

 6  derived from the registration of motor vehicles exceed

 7  one-twelfth of those anticipated annual remaining revenues as

 8  determined by the revenue estimating conference, the excess

 9  shall be credited to those state funds in the State Treasury

10  from which the amount was originally drawn, up to the amount

11  which was deposited in the State Transportation Trust Fund

12  under paragraph (b).  A final adjustment must be made in the

13  last months of a fiscal year so that the total revenue

14  deposited in the State Transportation Trust Fund each year

15  equals the amount derived from the registration of motor

16  vehicles, less the amount distributed under subsection (1).

17  For the purposes of this paragraph and paragraph (b), the term

18  "remaining revenues" means all revenues deposited into the

19  State Transportation Trust Fund under paragraph (a) and

20  subsections (2) and (3). In order that interest earnings

21  continue to accrue to the General Revenue Fund, the Department

22  of Transportation may not invest an amount equal to the

23  cumulative amount of funds deposited in the State

24  Transportation Trust Fund under paragraph (b) less funds

25  credited under this paragraph as computed on a monthly basis.

26  The amounts to be credited under this and the preceding

27  paragraph must be calculated and certified to the Chief

28  Financial Officer Comptroller by the Executive Office of the

29  Governor.

30         Section 387.  Subsection (1) of section 320.71, Florida

31  Statutes, is amended to read:

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 1         320.71  Nonresident motor vehicle, mobile home, or

 2  recreational vehicle dealer's license.--

 3         (1)  Any person who is a nonresident of the state, who

 4  does not have a dealer's contract from the manufacturer or

 5  manufacturer's distributor of motor vehicles, mobile homes, or

 6  recreational vehicles authorizing the sale thereof in definite

 7  Florida territory, and who sells or engages in the business of

 8  selling said vehicles at retail within the state shall

 9  register with the Department of Revenue for a sales tax dealer

10  registration number and comply with chapter 212, and pay a

11  license tax of $2,000 per annum in each county where such

12  sales are made; $1,250 of said tax shall be transmitted to the

13  Department of Financial Services Banking and Finance to be

14  deposited in the General Revenue Fund of the state, and $750

15  thereof shall be returned to the county.  The license tax

16  shall cover the period from January 1 to the following

17  December 31, and no such license shall be issued for any

18  fractional part of a year.

19         Section 388.  Subsection (2) of section 320.781,

20  Florida Statutes, is amended to read:

21         320.781  Mobile Home and Recreational Vehicle

22  Protection Trust Fund.--

23         (2)  Beginning October 1, 1990, the department shall

24  charge and collect an additional fee of $1 for each new mobile

25  home and new recreational vehicle title transaction for which

26  it charges a fee.  This additional fee shall be deposited into

27  the trust fund.  The Department of Highway Safety and Motor

28  Vehicles shall charge a fee of $40 per annual dealer and

29  manufacturer license and license renewal, which shall be

30  deposited into the trust fund. The sums deposited in the trust

31  fund shall be used exclusively for carrying out the purposes

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 1  of this section.  These sums may be invested and reinvested by

 2  the Chief Financial Officer Treasurer under the same

 3  limitations as apply to investment of other state funds, with

 4  all interest from these investments deposited to the credit of

 5  the trust fund.

 6         Section 389.  Subsection (5) of section 322.21, Florida

 7  Statutes, is amended to read:

 8         322.21  License fees; procedure for handling and

 9  collecting fees.--

10         (5)  The department shall collect and transmit all fees

11  received by it under this section to the Chief Financial

12  Officer Treasurer to be placed in the General Revenue Fund of

13  the state, and sufficient funds for the necessary expenses of

14  the department shall be included in the appropriations act.

15  The fees shall be used for the maintenance and operation of

16  the department.

17         Section 390.  Subsection (1) of section 324.032,

18  Florida Statutes, is amended to read:

19         324.032  Manner of proving financial responsibility;

20  for-hire passenger transportation vehicles.--

21         (1)  Notwithstanding the provisions of s. 324.031, a

22  person who is either the owner or a lessee required to

23  maintain insurance under s. 324.021(9)(b) and who operates at

24  least 300 taxicabs, limousines, jitneys, or any other for-hire

25  passenger transportation vehicles may prove financial

26  responsibility by satisfying the following:

27         (a)  Furnishing satisfactory evidence of holding a

28  motor vehicle liability policy as defined in s. 324.031; or

29         (b)  Complying with the provisions of s. 324.171, such

30  compliance to be demonstrated by maintaining at its principal

31  place of business an audited financial statement, prepared in

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 1  accordance with generally accepted accounting principles, and

 2  providing to the department a certification issued by a

 3  certified public accountant that the applicant's net worth is

 4  at least equal to the requirements of s. 324.171 as determined

 5  by the Department of Financial Services Insurance, including

 6  claims liabilities in an amount certified as adequate by a

 7  Fellow of the Casualty Actuarial Society.

 8  

 9  Upon request by the department, the applicant must provide the

10  department at the applicant's principal place of business in

11  this state access to the applicant's underlying financial

12  information and financial statements that provide the basis of

13  the certified public accountant's certification.  The

14  applicant shall reimburse the requesting department for all

15  reasonable costs incurred by it in reviewing the supporting

16  information.  The maximum amount of self-insurance permissible

17  under this subsection is $100,000 and must be stated on a

18  per-occurrence basis, and the applicant shall maintain

19  adequate excess insurance issued by an authorized or eligible

20  insurer licensed or approved by the Department of Financial

21  Services Insurance.  All risks self-insured shall remain with

22  the owner or lessee providing it, and the risks are not

23  transferable to any other person, unless a policy complying

24  with paragraph (a) is obtained.

25         Section 391.  Paragraph (b) of subsection (1) of

26  section 324.171, Florida Statutes, is amended to read:

27         324.171  Self-insurer.--

28         (1)  Any person may qualify as a self-insurer by

29  obtaining a certificate of self-insurance from the department

30  which may, in its discretion and upon application of such a

31  person, issue said certificate of self-insurance when such

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 1  person has satisfied the requirements of this section to

 2  qualify as a self-insurer under this section:

 3         (b)  A person, including any firm, partnership,

 4  association, corporation, or other person, other than a

 5  natural person, shall:

 6         1.  Possess a net unencumbered worth of at least

 7  $40,000 for the first motor vehicle and $20,000 for each

 8  additional motor vehicle; or

 9         2.  Maintain sufficient net worth, as determined

10  annually by the department, pursuant to rules promulgated by

11  the department, with the assistance of the Department of

12  Financial Services Insurance, to be financially responsible

13  for potential losses.  The rules shall take into consideration

14  excess insurance carried by the applicant.  The department's

15  determination shall be based upon reasonable actuarial

16  principles considering the frequency, severity, and loss

17  development of claims incurred by casualty insurers writing

18  coverage on the type of motor vehicles for which a certificate

19  of self-insurance is desired.

20         Section 392.  Paragraph (d) of subsection (2) of

21  section 326.006, Florida Statutes, is amended to read:

22         326.006  Powers and duties of division.--

23         (2)  The division has the power to enforce and ensure

24  compliance with the provisions of this chapter and rules

25  adopted under this chapter relating to the sale and ownership

26  of yachts and ships.  In performing its duties, the division

27  has the following powers and duties:

28         (d)  Notwithstanding any remedies available to a yacht

29  or ship purchaser, if the division has reasonable cause to

30  believe that a violation of any provision of this chapter or

31  rule adopted under this chapter has occurred, the division may

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 1  institute enforcement proceedings in its own name against any

 2  broker or salesperson or any of his or her assignees or

 3  agents, or against any unlicensed person or any of his or her

 4  assignees or agents, as follows:

 5         1.  The division may permit a person whose conduct or

 6  actions are under investigation to waive formal proceedings

 7  and enter into a consent proceeding whereby orders, rules, or

 8  letters of censure or warning, whether formal or informal, may

 9  be entered against the person.

10         2.  The division may issue an order requiring the

11  broker or salesperson or any of his or her assignees or

12  agents, or requiring any unlicensed person or any of his or

13  her assignees or agents, to cease and desist from the unlawful

14  practice and take such affirmative action as in the judgment

15  of the division will carry out the purposes of this chapter.

16         3.  The division may bring an action in circuit court

17  on behalf of a class of yacht or ship purchasers for

18  declaratory relief, injunctive relief, or restitution.

19         4.  The division may impose a civil penalty against a

20  broker or salesperson or any of his or her assignees or

21  agents, or against an unlicensed person or any of his or her

22  assignees or agents, for any violation of this chapter or a

23  rule adopted under this chapter.  A penalty may be imposed for

24  each day of continuing violation, but in no event may the

25  penalty for any offense exceed $10,000.  All amounts collected

26  must be deposited with the Chief Financial Officer Treasurer

27  to the credit of the Division of Florida Land Sales,

28  Condominiums, and Mobile Homes Trust Fund.  If a broker,

29  salesperson, or unlicensed person working for a broker, fails

30  to pay the civil penalty, the division shall thereupon issue

31  an order suspending the broker's license until such time as

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 1  the civil penalty is paid or may pursue enforcement of the

 2  penalty in a court of competent jurisdiction. The order

 3  imposing the civil penalty or the order of suspension may not

 4  become effective until 20 days after the date of such order.

 5  Any action commenced by the division must be brought in the

 6  county in which the division has its executive offices or in

 7  the county where the violation occurred.

 8         Section 393.  Subsections (8) and (24) of section

 9  331.303, Florida Statutes, are amended to read:

10         331.303  Definitions.--

11         (8)  "Entertainment expenses" means the actual,

12  necessary, and reasonable costs of providing hospitality for

13  business clients or guests, which costs are defined and

14  prescribed by rules adopted by the authority, subject to

15  approval by the Chief Financial Officer Comptroller.

16         (24)  "Travel expenses" means the actual, necessary,

17  and reasonable costs of transportation, meals, lodging, and

18  incidental expenses normally incurred by a traveler, which

19  costs are defined and prescribed by rules adopted by the

20  authority, subject to approval by the Chief Financial Officer

21  Comptroller.

22         Section 394.  Subsection (2) of section 331.309,

23  Florida Statutes, is amended to read:

24         331.309  Treasurer; depositories; fiscal agent.--

25         (2)  The board is authorized to select as depositories

26  in which the funds of the board and of the authority shall be

27  deposited any qualified public depository as defined in s.

28  280.02, upon such terms and conditions as to the payment of

29  interest by such depository upon the funds so deposited as the

30  board may deem just and reasonable. Funds of the authority may

31  also be deposited with the Florida Commercial Space Financing

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 1  Corporation created by s. 331.407. The funds of the authority

 2  may be kept in or removed from the State Treasury upon written

 3  notification from the chair of the board to the Chief

 4  Financial Officer State Comptroller.

 5         Section 395.  Subsection (2) of section 331.3101,

 6  Florida Statutes, is amended to read:

 7         331.3101  Spaceport Florida Authority; travel and

 8  entertainment expenses.--

 9         (2)  The rules shall be subject to approval by the

10  Chief Financial Officer Comptroller prior to promulgation.

11  The rules shall require the submission of paid receipts, or

12  other proof prescribed by the Chief Financial Officer

13  Comptroller, with any claim for reimbursement, and shall

14  require, as a condition for any advancement, an agreement to

15  submit paid receipts or other proof and to refund any unused

16  portion of the advancement within 15 days after the expense is

17  incurred or, if the advancement is made in connection with

18  travel, within 15 days after completion of the travel.

19  However, with respect to an advancement made solely for travel

20  expenses, the rules may allow paid receipts or other proof to

21  be submitted, and any unused portion of the advancement to be

22  refunded, within 30 days after completion of the travel.

23         Section 396.  Section 331.348, Florida Statutes, is

24  amended to read:

25         331.348  Investment of funds.--The board may in its

26  discretion invest funds of the authority through the Chief

27  Financial Officer Treasurer or in:

28         (1)  Direct obligations of or obligations guaranteed by

29  the United States or for the payment of the principal and

30  interest of which the faith and credit of the United States is

31  pledged;

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 1         (2)  Bonds or notes issued by any of the following

 2  federal agencies:  Bank for Cooperatives; federal intermediate

 3  credit banks; federal home loan bank system; federal land

 4  banks; or the Federal National Mortgage Association (including

 5  debentures or participating certificates issued by such

 6  association);

 7         (3)  Public housing bonds issued by public housing

 8  authorities and secured by a pledge or annual contributions

 9  under an annual contribution contract or contracts with the

10  United States;

11         (4)  Bonds or other interest-bearing obligations of any

12  county, district, city, or town located in the state for which

13  the full faith and credit of such political subdivision is

14  pledged;

15         (5)  Any investment authorized for insurers by ss.

16  625.306-625.316 and amendments thereto; or

17         (6)  Any investment authorized under s. 18.10 and

18  amendments thereto.

19         Section 397.  Subsection (3) of section 331.419,

20  Florida Statutes, is amended to read:

21         331.419  Reports and audits.--

22         (3)  The Division of Banking of the Department of

23  Financial Services Banking and Finance shall review the

24  corporation's activities once every 24 months to determine

25  compliance with this part and related laws and rules and to

26  evaluate the corporation's operations. The department division

27  shall prepare a report based on its review and evaluation with

28  recommendation for any corrective action. The president shall

29  submit to the department division regular reports on the

30  corporation's activities. The content and frequency of such

31  reports shall be determined by the department division. The

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 1  department division may charge a fee for conducting the review

 2  and evaluation and preparing the related report, which fee

 3  shall not be in excess of the examination fee paid by

 4  chartered or licensed financial institutions.

 5         Section 398.  Subsection (1) of section 336.022,

 6  Florida Statutes, is amended to read:

 7         336.022  County transportation trust fund; controls and

 8  administrative remedies.--

 9         (1)  Each county shall establish and maintain a

10  transportation trust fund for all transportation-related

11  revenues and expenditures.  All funds received by a county for

12  transportation shall be deposited into this fund.  No

13  expenditures other than transportation expenditures authorized

14  by law shall be made from such fund.  Each county shall use a

15  uniform accounts classification system approved by the Chief

16  Financial Officer Comptroller.

17         Section 399.  Subsection (9) of section 337.25, Florida

18  Statutes, is amended to read:

19         337.25  Acquisition, lease, and disposal of real and

20  personal property.--

21         (9)  The department, with the approval of the Chief

22  Financial Officer State Comptroller, is authorized to disburse

23  state funds for real estate closings in a manner consistent

24  with good business practices and in a manner minimizing costs

25  and risks to the state.

26         Section 400.  Section 339.035, Florida Statutes, is

27  amended to read:

28         339.035  Expenditures.--All expenditures by the

29  department shall be made upon vouchers issued and certified by

30  the department in such manner as the department may, by rule

31  or internal management memorandum as required by chapter 120,

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 1  provide and shall be paid by warrants issued by the Chief

 2  Financial Officer Comptroller upon the Treasurer.

 3         Section 401.  Section 339.081, Florida Statutes, is

 4  amended to read:

 5         339.081  Department trust funds.--The Chief Financial

 6  Officer Comptroller shall maintain within the State Treasury

 7  the following trust funds for the department:

 8         (1)  The State Transportation Trust Fund, to which

 9  shall be credited the proceeds of the gas tax as authorized by

10  chapter 83-3, Laws of Florida, and such other funds which

11  accrue to the department which are not required to be

12  maintained in separate trust funds.

13         (2)  Such other funds as may be authorized by bond

14  resolutions or agreements with any other public bodies or

15  agencies.

16         Section 402.  Section 344.17, Florida Statutes, is

17  amended to read:

18         344.17  Depositories and investments.--All moneys

19  received by the Chief Financial Officer as treasurer of the

20  State Board of Administration, a body corporate under s. 9,

21  Art. XII of the State Constitution, shall be deposited by the

22  treasurer in a solvent bank or banks, to be approved and

23  accepted for such purposes by the board. In making such

24  deposits, he or she shall follow the method for the deposit of

25  state funds.  Each bank receiving any portion of such funds

26  shall be required to deposit with such treasurer satisfactory

27  bonds or treasury certificates of the United States; bonds of

28  the several states; special tax school district bonds; bonds

29  of any municipality eligible to secure state deposits as

30  provided by law; bonds of any county or special road and

31  bridge district of this state entitled to participate under

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 1  the provisions of s. 16, Art. IX of the State Constitution of

 2  1885, as adopted by the 1968 revised constitution, and of s.

 3  9, Art. XII of that revision; bonds issued under the

 4  provisions of s. 18, Art. XII of the State Constitution of

 5  1885, as adopted by s. 9, Art. XII of the 1968 revised

 6  constitution; or bonds, notes, or certificates issued by the

 7  Florida State Improvement Commission or its successors, the

 8  Florida Development Commission and the Division of Bond

 9  Finance of the State Board of Administration, which contain a

10  pledge of the 80-percent surplus 2-cent constitutional

11  gasoline tax accruing under s. 16, Art. IX of the State

12  Constitution of 1885, as adopted by the 1968 revised

13  constitution, and under s. 9, Art. XII of that revision, which

14  shall be equal to the amount deposited with such bank. Such

15  security shall be in the possession of such treasurer; or the

16  treasurer is authorized to accept, in lieu of the actual

17  depositing with him or her of such security, trust or

18  safekeeping receipts issued by any Federal Reserve Bank, or

19  member bank thereof, or by any bank incorporated under the

20  laws of the United States; provided the member bank or bank

21  incorporated under the laws of the United States has been

22  previously approved and accepted for such purposes by the

23  State Board of Administration and the trust or safekeeping

24  receipts are in substantially the same form as that which the

25  Chief Financial Officer State Treasurer is authorized to

26  accept in lieu of securities given to cover deposits of state

27  funds.

28         Section 403.  Subsections (2) and (9) of section

29  350.06, Florida Statutes, are amended to read:

30         350.06  Place of meeting; expenditures; employment of

31  personnel; records availability and fees.--

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 1         (2)  All sums of money authorized to be paid on account

 2  of said commissioners shall be paid out of the State Treasury

 3  only on the order of the Chief Financial Officer Comptroller.

 4         (9)  The commission shall keep a book in which all fees

 5  collected by it as provided for herein shall be recorded,

 6  together with the amount and purpose for which collected.

 7  This book shall be a public record.  The commission shall

 8  prepare a statement of these fees in duplicate each month and

 9  remit one copy of the statement, together with all fees

10  collected by it, to the Chief Financial Officer Treasurer.

11  All moneys collected pursuant to this section by the

12  commission shall be deposited in the State Treasury to the

13  credit of the Florida Public Service Regulatory Trust Fund.

14         Section 404.  Section 354.03, Florida Statutes, is

15  amended to read:

16         354.03  Bond.--Before entering into the performance of

17  his or her duties every such special officer shall enter into

18  a good and sufficient bond payable to the Governor of Florida,

19  and the Governor's successors, in the penal sum of $5,000,

20  with some surety company authorized to do business in this

21  state as surety thereon, conditioned for the faithful

22  performance of his or her duties, and to pay any and all

23  damage done by any illegal act committed by him or her, to be

24  approved by the Department of Financial Services Banking and

25  Finance.

26         Section 405.  Subsection (1) of section 365.173,

27  Florida Statutes, is amended to read:

28         365.173  Wireless Emergency Telephone System Fund.--

29         (1)  All revenues derived from the E911 fee levied on

30  subscribers under s. 365.172 must be paid into the State

31  Treasury on or before the 15th day of each month. Such moneys

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 1  must be accounted for in a special fund to be designated as

 2  the Wireless Emergency Telephone System Fund, a fund created

 3  in the State Technology Office and must be invested by the

 4  Chief Financial Officer State Treasurer pursuant to s. 18.125.

 5  All moneys in such fund are to be expended by the State

 6  Technology Office for the purposes provided in this section

 7  and s. 365.172. These funds are not subject to s. 215.20.

 8         Section 406.  Subsection (8) of section 370.06, Florida

 9  Statutes, is amended to read:

10         370.06  Licenses.--

11         (8)  COLLECTION OF LICENSES, FEES.--Unless otherwise

12  provided by law, all license taxes or fees provided for in

13  this chapter shall be collected by the commission or its duly

14  authorized agents or deputies to be deposited by the Chief

15  Financial Officer Comptroller in the Marine Resources

16  Conservation Trust Fund. The commission may by rule establish

17  a reasonable processing fee for any free license or permit

18  required under this chapter. The commission is authorized to

19  accept payment by credit card for fees, fines, and civil

20  penalties levied pursuant to this chapter.

21         Section 407.  Subsection (6) of section 370.16, Florida

22  Statutes, is amended to read:

23         370.16  Noncultured shellfish harvesting.--

24         (6)  SEIZURE OF VESSELS AND CARGOES VIOLATING OYSTER

25  AND CLAM LAWS, ETC.--Vessels, with their cargoes, violating

26  the provisions of the laws relating to oysters and clams may

27  be seized by anyone duly and lawfully authorized to make

28  arrests under this section or by any sheriff or the sheriff's

29  deputies, and taken into custody, and when not arrested by the

30  sheriff or the sheriff's deputies, delivered to the sheriff of

31  the county in which the seizure is made, and shall be liable

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 1  to forfeiture, on appropriate proceedings being instituted by

 2  the Fish and Wildlife Conservation Commission, before the

 3  courts of that county.  In such case the cargo shall at once

 4  be disposed of by the sheriff, for account of whom it may

 5  concern. Should the master or any of the crew of said vessel

 6  be found guilty of using dredges or other instruments in

 7  fishing oysters on natural reefs contrary to law, or fishing

 8  on the natural oyster or clam reefs out of season, or

 9  unlawfully taking oysters or clams belonging to a lessee, such

10  vessel shall be declared forfeited by the court, and ordered

11  sold and the proceeds of the sale shall be deposited with the

12  Chief Financial Officer Treasurer to the credit of the General

13  Revenue Fund; any person guilty of such violations shall not

14  be permitted to have any license provided for in this chapter

15  within a period of 1 year from the date of conviction.

16  Pending proceedings such vessel may be released upon the owner

17  furnishing bond, with good and solvent security in double the

18  value of the vessel, conditioned upon its being returned in

19  good condition to the sheriff to abide the judgment of the

20  court.

21         Section 408.  Paragraph (b) of subsection (5) and

22  subsection (6) of section 370.19, Florida Statutes, are

23  amended to read:

24         370.19  Atlantic States Marine Fisheries Compact;

25  implementing legislation.--

26         (5)  ACCOUNTS TO BE KEPT BY COMMISSION; EXAMINATION.--

27         (b)  The Department of Financial Services Banking and

28  Finance is hereby authorized and empowered from time to time

29  to examine the accounts and books of the commission, including

30  its receipts, disbursements and such other items referring to

31  its financial standing as such department deems may deem

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 1  proper and to report the results of such examination to the

 2  governor of such state.

 3         (6)  APPROPRIATION FOR EXPENSES OF COMMISSION.--The sum

 4  of $600, annually, or so much thereof as may be necessary, is

 5  hereby appropriated out of any moneys in the State Treasury

 6  not otherwise appropriated, for the expenses of the commission

 7  created by the compact authorized by this law.  The moneys

 8  hereby appropriated shall be paid out of the State Treasury on

 9  the audit and warrant of the Chief Financial Officer

10  Comptroller upon vouchers certified by the chair of the

11  commission in the manner prescribed by law.

12         Section 409.  Subsection (5) of section 370.20, Florida

13  Statutes, is amended to read:

14         370.20  Gulf States Marine Fisheries Compact;

15  implementing legislation.--

16         (5)  ACCOUNTS TO BE KEPT BY COMMISSION;

17  EXAMINATION.--The commission shall keep accurate accounts of

18  all receipts and disbursements and shall report to the

19  Governor and the Legislature of the State of Florida on or

20  before the 10th day of December in each year, setting forth in

21  detail the transactions conducted by it during the 12 months

22  preceding December 1 of that year and shall make

23  recommendations for any legislative action deemed by it

24  advisable, including amendments to the statutes of the State

25  of Florida which may be necessary to carry out the intent and

26  purposes of the compact between the signatory states.

27         The Department of Financial Services Banking and

28  Finance is hereby authorized and empowered from time to time

29  to examine the accounts and books of the commission, including

30  its receipts, disbursements and such other items referring to

31  its financial standing as such department deems may deem

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 1  proper and to report the results of such examination to the

 2  governor of such state.

 3         Section 410.  Subsection (5) of section 373.503,

 4  Florida Statutes, is amended to read:

 5         373.503  Manner of taxation.--

 6         (5)  Each water management district created under this

 7  chapter which does not receive state shared revenues under

 8  part II of chapter 218 shall, before January 1 of each year,

 9  certify compliance or noncompliance with s. 200.065 to the

10  Department of Financial Services Banking and Finance.

11  Specific grounds for noncompliance shall be stated in the

12  certification. In its annual report required by s. 218.32(2),

13  the Department of Financial Services Banking and Finance shall

14  report to the Governor and the Legislature those water

15  management districts certifying noncompliance or not

16  reporting.

17         Section 411.  Paragraph (e) of subsection (10) of

18  section 373.59, Florida Statutes, is amended to read:

19         373.59  Water Management Lands Trust Fund.--

20         (10)

21         (e)  Payment in lieu of taxes pursuant to this

22  subsection shall be made annually to qualifying counties and

23  local governments after certification by the Department of

24  Revenue that the amounts applied for are reasonably

25  appropriate, based on the amount of actual taxes paid on the

26  eligible property, and after the water management districts

27  have provided supporting documents to the Chief Financial

28  Officer Comptroller and have requested that payment be made in

29  accordance with the requirements of this section.

30         Section 412.  Subsection (2) of section 373.6065,

31  Florida Statutes, is amended to read:

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 1         373.6065  Adoption benefits for water management

 2  district employees.--

 3         (2)  The Chief Financial Officer Comptroller and the

 4  Department of Management Services shall transfer funds to

 5  water management districts to pay eligible water management

 6  district employees for these child adoption monetary benefits

 7  in accordance with s. 215.32(1)(c)5., as long as funds remain

 8  available for the program described under s. 110.152.

 9         Section 413.  Subsection (2) of section 374.983,

10  Florida Statutes, is amended to read:

11         374.983  Governing body.--

12         (2)  The present board of commissioners of the district

13  shall continue to hold office until their respective terms

14  shall expire. Thereafter the members of the board shall

15  continue to be appointed by the Governor for a term of 4 years

16  and until their successors shall be duly appointed.

17  Specifically, commencing on January 10, 1997, the Governor

18  shall appoint the commissioners from Broward, Indian River,

19  Martin, St. Johns, and Volusia Counties and on January 10,

20  1999, the Governor shall appoint the commissioners from

21  Brevard, Dade, Duval, Flagler, Palm Beach, and St. Lucie

22  Counties. Each new appointee must be confirmed by the Senate.

23  Whenever a vacancy occurs among the commissioners, the person

24  appointed to fill such vacancy shall hold office for the

25  unexpired portion of the term of the commissioner whose place

26  he or she is selected to fill. Each commissioner under this

27  act before he or she assumes office shall be required to give

28  a good and sufficient surety bond in the sum of $10,000

29  payable to the Governor and his or her successors in office,

30  conditioned upon the faithful performance of the duties of his

31  or her office, such said bond to be approved by and filed with

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 1  the Chief Financial Officer Comptroller. Any and all premiums

 2  upon such said surety bonds shall be paid by the board of

 3  commissioners of such said district as a necessary expense of

 4  the district.

 5         Section 414.  Subsection (2) of section 374.986,

 6  Florida Statutes, is amended to read:

 7         374.986  Taxing authority.--

 8         (2)  The board may annually assess and levy against the

 9  taxable property in the district a tax not to exceed one-tenth

10  mill on the dollar for each year, and the proceeds from such

11  tax shall be used by the district for all expenses of the

12  district including the purchase price of right-of-way and

13  other property. The board shall, on or before the 31st day of

14  July of each year, prepare a tentative annual written budget

15  of the district's expected income and expenditures. In

16  addition, the board shall compute a proposed millage rate to

17  be levied as taxes for that year upon the taxable property in

18  the district for the purposes of said district. The proposed

19  budget shall be submitted to the Department of Environmental

20  Protection for its approval. Prior to adopting a final budget,

21  the district shall comply with the provisions of s. 200.065,

22  relating to the method of fixing millage, and shall fix the

23  final millage rate by resolution of the district and shall

24  also, by resolution, adopt a final budget pursuant to chapter

25  200.  Copies of such resolutions executed in the name of the

26  board by its chair, and attested by its secretary, shall be

27  made and delivered to the county officials specified in s.

28  200.065 of each and every county in the district, to the

29  Department of Revenue, and to the Chief Financial Officer

30  Comptroller. Thereupon, it shall be the duty of the property

31  assessor of each of said counties to assess, and the tax

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 1  collector of each of said counties to collect, a tax at the

 2  rate fixed by said resolution of the board upon all of the

 3  real and personal taxable property in said counties for said

 4  year (and such officers shall perform such duty) and said levy

 5  shall be included in the warrant of the tax assessors of each

 6  of said counties and attached to the assessment roll of taxes

 7  for each of said counties. The tax collectors of each of said

 8  counties shall collect such taxes so levied by the board in

 9  the same manner as other taxes are collected, and shall pay

10  the same within the time and in the manner prescribed by law,

11  to the treasurer of the board. It shall be the duty of the

12  Chief Financial Officer Comptroller to assess and levy on all

13  railroad lines and railroad property and telegraph lines and

14  telegraph property in the district a tax at the rate

15  prescribed by resolution of the board, and to collect the tax

16  thereon in the same manner as he or she is required by law to

17  assess and collect taxes for state and county purposes and to

18  remit the same to the treasurer of the board. All such taxes

19  shall be held by the treasurer of the district for the credit

20  of the district and paid out by him or her as provided herein.

21  The tax assessor and property appraiser of each of said

22  counties shall be entitled to payment as provided for by

23  general laws.

24         Section 415.  subsection (3) of section 376.11, Florida

25  Statutes, is amended to read:

26         376.11  Florida Coastal Protection Trust Fund.--

27         (3)  Moneys in the fund that are not needed currently

28  to meet the obligations of the department in the exercise of

29  its responsibilities under ss. 376.011-376.21 shall be

30  deposited with the Chief Financial Officer Treasurer to the

31  credit of the fund and may be invested in such manner as is

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 1  provided for by statute. Interest received on such investment

 2  shall be credited to the fund, except as otherwise specified

 3  herein.

 4         Section 416.  Subsection (5) of section 376.123,

 5  Florida Statutes, is amended to read:

 6         376.123  Claims against the Florida Coastal Protection

 7  Trust Fund.--

 8         (5)  The secretary shall establish the amount to be

 9  awarded and shall certify the amount of the award and the name

10  of the claimant to the Chief Financial Officer State

11  Treasurer, who shall pay the award from the fund, subject to

12  the provisions of subsection (12).  If the claimant agrees

13  with the established amount of award, the settlement shall be

14  binding upon both parties as to all issues and cannot be

15  further attacked, collaterally or by separate action, in the

16  future.

17         Section 417.  Subsection (6) of section 376.307,

18  Florida Statutes, is amended to read:

19         376.307  Water Quality Assurance Trust Fund.--

20         (6)  Moneys in the fund which are not needed currently

21  to meet the obligations of the department in the exercise of

22  its responsibilities under this section shall be deposited

23  with the Chief Financial Officer Treasurer to the credit of

24  the fund and may be invested in such manner as is provided for

25  by statute.  The interest received on such investment shall be

26  credited to the fund.  Any provisions of law to the contrary

27  notwithstanding, such interest may be freely transferred

28  between this trust fund and the Inland Protection Trust Fund,

29  in the discretion of the department.

30  

31  

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 1         Section 418.  Subsection (8) and paragraph (k) of

 2  subsection (12) of section 376.3071, Florida Statutes, are

 3  amended to read:

 4         376.3071  Inland Protection Trust Fund; creation;

 5  purposes; funding.--

 6         (8)  INVESTMENTS; INTEREST.--Moneys in the fund which

 7  are not needed currently to meet the obligations of the

 8  department in the exercise of its responsibilities under this

 9  section and s. 376.3073 shall be deposited with the Chief

10  Financial Officer Treasurer to the credit of the fund and may

11  be invested in such manner as is provided for by statute.  The

12  interest received on such investment shall be credited to the

13  fund.  Any provisions of law to the contrary notwithstanding,

14  such interest may be freely transferred between this trust

15  fund and the Water Quality Assurance Trust Fund, in the

16  discretion of the department.

17         (12)  REIMBURSEMENT FOR CLEANUP EXPENSES.--Except as

18  provided in s. 2(3), chapter 95-2, Laws of Florida, this

19  subsection shall not apply to any site rehabilitation program

20  task initiated after March 29, 1995. Effective August 1, 1996,

21  no further site rehabilitation work on sites eligible for

22  state-funded cleanup from the Inland Protection Trust Fund

23  shall be eligible for reimbursement pursuant to this

24  subsection.  The person responsible for conducting site

25  rehabilitation may seek reimbursement for site rehabilitation

26  program task work conducted after March 28, 1995, in

27  accordance with s. 2(2) and (3), chapter 95-2, Laws of

28  Florida, regardless of whether the site rehabilitation program

29  task is completed.  A site rehabilitation program task shall

30  be considered to be initiated when actual onsite work or

31  engineering design, pursuant to chapter 62-770, Florida

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 1  Administrative Code, which is integral to performing a site

 2  rehabilitation program task has begun and shall not include

 3  contract negotiation and execution, site research, or project

 4  planning.  All reimbursement applications pursuant to this

 5  subsection must be submitted to the department by January 3,

 6  1997.  The department shall not accept any applications for

 7  reimbursement or pay any claims on applications for

 8  reimbursement received after that date; provided, however if

 9  an application filed on or prior to January 3, 1997, was

10  returned by the department on the grounds of untimely filing,

11  it shall be refiled within 30 days after the effective date of

12  this act in order to be processed.

13         (k)  Audits.--

14         1.  The department is authorized to perform financial

15  and technical audits in order to certify site restoration

16  costs and ensure compliance with this chapter.  The department

17  shall seek recovery of any overpayments based on the findings

18  of these audits. The department must commence any audit within

19  5 years after the date of reimbursement, except in cases where

20  the department alleges specific facts indicating fraud.

21         2.  Upon determination by the department that any

22  portion of costs which have been reimbursed are disallowed,

23  the department shall give written notice to the applicant

24  setting forth with specificity the allegations of fact which

25  justify the department's proposed action and ordering

26  repayment of disallowed costs within 60 days of notification

27  of the applicant.

28         3.  In the event the applicant does not make payment to

29  the department within 60 days of receipt of such notice, the

30  department shall seek recovery in a court of competent

31  jurisdiction to recover reimbursement overpayments made to the

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 1  person responsible for conducting site rehabilitation, unless

 2  the department finds the amount involved too small or the

 3  likelihood of recovery too uncertain.

 4         4.  In addition to the amount of any overpayment, the

 5  applicant shall be liable to the department for interest of 1

 6  percent per month or the prime rate, whichever is less, on the

 7  amount of overpayment, from the date of overpayment by the

 8  department until the applicant satisfies the department's

 9  request for repayment pursuant to this paragraph.  The

10  calculation of interest shall be tolled during the pendency of

11  any litigation.

12         5.  Financial and technical audits frequently are

13  conducted under this section many years after the site

14  rehabilitation activities were performed and the costs

15  examined in the course of the audit were incurred by the

16  person responsible for site rehabilitation.  During the

17  intervening span of years, the department's rule requirements

18  and its related guidance and other nonrule policy directives

19  may have changed significantly.  The Legislature finds that it

20  may be appropriate for the department to provide relief to

21  persons subject to such requirements in financial and

22  technical audits conducted pursuant to this section.

23         a.  The department is authorized to grant variances and

24  waivers from the documentation requirements of subparagraph

25  (e)2. and from the requirements of rules applicable in

26  technical and financial audits conducted under this section.

27  Variances and waivers shall be granted when the person

28  responsible for site rehabilitation demonstrates to the

29  department that application of a financial or technical

30  auditing requirement would create a substantial hardship or

31  would violate principles of fairness.  For purposes of this

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 1  subsection, "substantial hardship" means a demonstrated

 2  economic, technological, legal, or other type of hardship to

 3  the person requesting the variance or waiver.  For purposes of

 4  this subsection, "principles of fairness" are violated when

 5  the application of a requirement affects a particular person

 6  in a manner significantly different from the way it affects

 7  other similarly situated persons who are affected by the

 8  requirement or when the requirement is being applied

 9  retroactively without due notice to the affected parties.

10         b.  A person whose reimbursed costs are subject to a

11  financial and technical audit under this section may file a

12  written request to the department for grant of a variance or

13  waiver.  The request shall specify:

14         (I)  The requirement from which a variance or waiver is

15  requested.

16         (II)  The type of action requested.

17         (III)  The specific facts which would justify a waiver

18  or variance.

19         (IV)  The reason or reasons why the requested variance

20  or waiver would serve the purposes of this section.

21         c.  Within 90 days after receipt of a written request

22  for variance or waiver under this subsection, the department

23  shall grant or deny the request. If the request is not granted

24  or denied within 90 days of receipt, the request shall be

25  deemed approved.  An order granting or denying the request

26  shall be in writing and shall contain a statement of the

27  relevant facts and reasons supporting the department's action.

28  The department's decision to grant or deny the petition shall

29  be supported by competent substantial evidence and is subject

30  to ss. 120.569 and 120.57.  Once adopted, model rules

31  

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 1  promulgated by the Administration Commission under s. 120.542

 2  shall govern the processing of requests under this provision.

 3         6.  The Chief Financial Officer Comptroller may audit

 4  the records of persons who receive or who have received

 5  payments pursuant to this chapter in order to verify site

 6  restoration costs, ensure compliance with this chapter, and

 7  verify the accuracy and completeness of audits performed by

 8  the department pursuant to this paragraph.  The Chief

 9  Financial Officer Comptroller may contract with entities or

10  persons to perform audits pursuant to this subparagraph.  The

11  Chief Financial Officer Comptroller shall commence any audit

12  within 1 year after the department's completion of an audit

13  conducted pursuant to this paragraph, except in cases where

14  the department or the Chief Financial Officer Comptroller

15  alleges specific facts indicating fraud.

16         Section 419.  Paragraphs (b) and (c) of subsection (5)

17  of section 376.3072, Florida Statutes, are amended to read:

18         376.3072  Florida Petroleum Liability and Restoration

19  Insurance Program.--

20         (5)

21         (b)  The Department of Financial Services Insurance

22  shall offer assistance as requested by the department to

23  implement the program.

24         (c)  Any insurance company, reinsurance company, or

25  other entity contracted with by the department shall be

26  subject to the same rules and regulations of the Department of

27  Financial Services Insurance applicable to other insurers,

28  reinsurers, and other entities.

29         Section 420.  Subsection (2) of section 376.3075,

30  Florida Statutes, is amended to read:

31         376.3075  Inland Protection Financing Corporation.--

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 1         (2)  The corporation shall be governed by a board of

 2  directors consisting of the Governor or the Governor's

 3  designee, the Chief Financial Officer Comptroller or the Chief

 4  Financial Officer's Comptroller's designee, the Treasurer or

 5  the Treasurer's designee, the chair of the Florida Black

 6  Business Investment Board, and the secretary of the Department

 7  of Environmental Protection.  The executive director of the

 8  State Board of Administration shall be the chief executive

 9  officer of the corporation and shall direct and supervise the

10  administrative affairs of the corporation and shall control,

11  direct, and supervise the operation of the corporation.  The

12  corporation shall also have such other officers as may be

13  determined by the board of directors.

14         Section 421.  Subsection (10) of section 376.3078,

15  Florida Statutes, is amended to read:

16         376.3078  Drycleaning facility restoration; funds;

17  uses; liability; recovery of expenditures.--

18         (10)  INSURANCE REQUIREMENTS.--The owner or operator of

19  an operating drycleaning facility or wholesale supply facility

20  shall, by January 1, 1999, have purchased third-party

21  liability insurance for $1 million of coverage for each

22  operating facility.  The owner or operator shall maintain such

23  insurance while operating as a drycleaning facility or

24  wholesale supply facility and provide proof of such insurance

25  to the department upon registration renewal each year

26  thereafter. Such requirement applies only if such insurance

27  becomes available to the owner or operator at a reasonable

28  rate and covers liability for contamination subsequent to the

29  effective date of the policy and prior to the effective date,

30  retroactive to the commencement of operations at the

31  drycleaning facility or wholesale supply facility. Such

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 1  insurance may be offered in group coverage policies with a

 2  minimum coverage of $1 million for each member of the group

 3  per year. For the purposes of this subsection, reasonable rate

 4  means the rate developed based on exposure to loss and

 5  underwriting and administrative costs as determined by the

 6  Department of Financial Services Insurance, in consultation

 7  with representatives of the drycleaning industry.

 8         Section 422.  Paragraphs (b) and (c) of subsection (4)

 9  of section 376.3079, Florida Statutes, are amended to read:

10         376.3079  Third-party liability insurance.--

11         (4)

12         (b)  The Department of Financial Services Insurance

13  shall offer assistance as requested by the department to

14  implement the program.

15         (c)  Any insurance company, reinsurance company, or

16  other entity contracted with by the department shall be

17  subject to the same rules of the Department of Financial

18  Services Insurance applicable to other insurers, reinsurers,

19  and other entities.

20         Section 423.  Subsection (6) of section 376.40, Florida

21  Statutes, is amended to read:

22         376.40  Petroleum exploration and production; purposes;

23  funding.--

24         (6)  INVESTMENTS; INTEREST.--Moneys in the trust fund

25  which are not needed currently to meet the obligations of the

26  department in the exercise of its responsibilities under this

27  section shall be deposited with the Chief Financial Officer

28  Treasurer to the credit of the trust fund and may be invested

29  as provided by law.

30         Section 424.  Section 377.23, Florida Statutes. is

31  amended to read:

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 1         377.23  Monthly reports to division.--Every producer of

 2  oil or gas in the state shall submit to the division, on forms

 3  prescribed by the division, a monthly report of the actual

 4  production from each and every oil and gas well operated by

 5  him or her.  Such Said producer shall submit a duplicate copy

 6  of such said report at the same time to the Department of

 7  Financial Services Banking and Finance; and such said reports

 8  shall be submitted through the medium of the United States

 9  mails, and it shall be unlawful for the same to be transmitted

10  or received in any other way.

11         Section 425.  Paragraph (a) of subsection (1) of

12  section 377.2425, Florida Statutes, is amended to read:

13         377.2425  Manner of providing security for geophysical

14  exploration, drilling, and production.--

15         (1)  Prior to granting a permit to conduct geophysical

16  operations; drilling of exploratory, injection, or production

17  wells; producing oil and gas from a wellhead; or transporting

18  oil and gas through a field-gathering system, the department

19  shall require the applicant or operator to provide surety that

20  these operations will be conducted in a safe and

21  environmentally compatible manner.

22         (a)  The applicant for a drilling, production, or

23  injection well permit or a geophysical permit may provide the

24  following types of surety to the department for this purpose:

25         1.  A deposit of cash or other securities made payable

26  to the Minerals Trust Fund. Such cash or securities so

27  deposited shall be held at interest by the Chief Financial

28  Officer Comptroller to satisfy safety and environmental

29  performance provisions of this chapter.  The interest shall be

30  credited to the Minerals Trust Fund.  Such cash or other

31  securities shall be released by the Chief Financial Officer

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 1  Comptroller upon request of the applicant and certification by

 2  the department that all safety and environmental performance

 3  provisions established by the department for permitted

 4  activities have been fulfilled.

 5         2.  A bond of a surety company authorized to do

 6  business in the state in an amount as provided by rule.

 7         3.  A surety in the form of an irrevocable letter of

 8  credit in an amount as provided by rule guaranteed by an

 9  acceptable financial institution.

10         Section 426.  Paragraph (c) of subsection (4) of

11  section 377.705, Florida Statutes, is amended to read:

12         377.705  Solar Energy Center; development of solar

13  energy standards.--

14         (4)  FLORIDA SOLAR ENERGY CENTER TO SET STANDARDS,

15  REQUIRE DISCLOSURE, SET TESTING FEES.--

16         (c)  The center shall be entitled to receive a testing

17  fee sufficient to cover the costs of such testing.  All

18  testing fees shall be transmitted by the center to the Chief

19  Financial Officer State Treasurer to be deposited in the Solar

20  Energy Center Testing Trust Fund, which is hereby created in

21  the State Treasury, and disbursed for the payment of expenses

22  incurred in testing solar energy systems.

23         Section 427.  Paragraph (a) of subsection (2) of

24  section 378.035, Florida Statutes, is amended to read:

25         378.035  Department responsibilities and duties with

26  respect to Nonmandatory Land Reclamation Trust Fund.--

27         (2)(a)  The department shall verify that reclamation

28  activities or portions thereof have been accomplished in

29  accordance with the reclamation contract and shall certify the

30  cost of such reclamation activities to the Chief Financial

31  Officer Comptroller for reimbursement.

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 1         Section 428.  Section 378.037, Florida Statutes, is

 2  amended to read:

 3         378.037  Chief Financial Officer Comptroller;

 4  responsibilities and duties with respect to reimbursement of

 5  reclamation costs.--

 6         (1)  The Chief Financial Officer Comptroller shall

 7  reimburse approved reclamation costs, less any amount

 8  reasonably retained to ensure completion of the approved

 9  reclamation program, subject to the following limitations:

10         (a)  A landowner shall not be entitled to payments in

11  excess of the funds available in the Nonmandatory Land

12  Reclamation Trust Fund.

13         (b)  Cost reimbursement shall not exceed the least of:

14         1.  The amount actually expended and reasonably

15  necessary to effect the reclamation consistent with the

16  standards of the approved master reclamation plan;

17         2.  The reclamation contract amount; or

18         3.  The amount allowed based on prereclamation land

19  form, to include mined-out areas at $4,000 per reclaimed acre

20  and clay settling areas and other land forms at $2,500 per

21  reclaimed acre adjusted annually by the appropriate

22  inflationary index for construction.

23         (2)  The Chief Financial Officer Comptroller shall

24  adopt rules to implement the payment provisions of the master

25  reclamation plan and this section, including, but not limited

26  to, periodic reimbursements and competitive procurement of

27  services and commodities to the extent practicable, unless a

28  landowner elects to utilize his or her own personnel and

29  equipment.  The landowner may select a method of reimbursement

30  from the alternatives adopted by the Chief Financial Officer

31  Comptroller.

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 1         Section 429.  Subsection (3) of section 378.208,

 2  Florida Statutes, is amended to read:

 3         378.208  Financial responsibility.--

 4         (3)  The amount of financial responsibility shall be

 5  established by the secretary and shall not exceed $4,000 per

 6  acre for each reclamation program, adjusted annually by the

 7  appropriate inflationary index for construction. The

 8  Department of Financial Services Insurance shall be available

 9  to assist the secretary in making this determination. In

10  establishing the amount of financial responsibility, the

11  secretary shall consider:

12         (a)  The amount and type of reclamation involved.

13         (b)  The probable cost of proper reclamation.

14         (c)  Inflation rates.

15         (d)  Changes in mining operations.

16         Section 430.  Subsection (2) of section 381.765,

17  Florida Statutes, is amended to read:

18         381.765  Retention of title to and disposal of

19  equipment.--

20         (2)  The department may offer for sale any surplus

21  items acquired in operating the brain and spinal cord injury

22  program when they are no longer necessary or exchange them for

23  necessary items that may be used to greater advantage. When

24  any such surplus equipment is sold or exchanged, a receipt for

25  the equipment shall be taken from the purchaser showing the

26  consideration given for such equipment and forwarded to the

27  Chief Financial Officer Treasurer, and any funds received by

28  the brain and spinal cord injury program pursuant to any such

29  transaction shall be deposited in the Brain and Spinal Cord

30  Injury Rehabilitation Trust Fund and shall be available for

31  expenditure for any purpose consistent with this part.

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 1         Section 431.  Subsection (3) of section 381.90, Florida

 2  Statutes, is amended to read:

 3         381.90  Health Information Systems Council; legislative

 4  intent; creation, appointment, duties.--

 5         (3)  The council shall be composed of the following

 6  members or their senior executive-level designees:

 7         (a)  The secretary of the Department of Health;

 8         (b)  The secretary of the Department of Business and

 9  Professional Regulation;

10         (c)  The secretary of the Department of Children and

11  Family Services;

12         (d)  The Secretary of Health Care Administration;

13         (e)  The secretary of the Department of Corrections;

14         (f)  The Attorney General;

15         (g)  The executive director of the Correctional Medical

16  Authority;

17         (h)  Two members representing county health

18  departments, one from a small county and one from a large

19  county, appointed by the Governor;

20         (i)  A representative from the Florida Association of

21  Counties;

22         (j)  The Chief Financial Officer State Treasurer and

23  Insurance Commissioner;

24         (k)  A representative from the Florida Healthy Kids

25  Corporation;

26         (l)  A representative from a school of public health

27  chosen by the Board of Regents;

28         (m)  The Commissioner of Education;

29         (n)  The secretary of the Department of Elderly

30  Affairs; and

31  

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 1         (o)  The secretary of the Department of Juvenile

 2  Justice.

 3  

 4  Representatives of the Federal Government may serve without

 5  voting rights.

 6         Section 432.  Subsection (5) of section 388.201,

 7  Florida Statutes, is amended to read:

 8         388.201  District budgets; hearing.--

 9         (5)  County commissioners' mosquito and arthropod

10  control budgets shall be made and adopted as prescribed by

11  subsections (1) and (2); summary figures shall be incorporated

12  into the county budgets as prescribed by the Department of

13  Financial Services Banking and Finance.

14         Section 433.  Section 388.301, Florida Statutes, is

15  amended to read:

16         388.301  Payment of state funds; supplies and

17  services.--State funds shall be payable quarterly, in

18  accordance with the rules of the department, upon requisition

19  by the department to the Chief Financial Officer Comptroller.

20  The department is authorized to furnish insecticides,

21  chemicals, materials, equipment, vehicles, and personnel in

22  lieu of state funds where mass purchasing may save funds for

23  the state, or where it would be more practical and economical

24  to use equipment, supplies, and services between two or more

25  counties or districts.

26         Section 434.  Subsection (3) of section 391.025,

27  Florida Statutes, is amended to read:

28         391.025  Applicability and scope.--

29         (3)  The Children's Medical Services program shall not

30  be deemed an insurer and is not subject to the licensing

31  requirements of the Florida Insurance Code or the rules of the

                                 437

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 1  Department of Financial Services Insurance, when providing

 2  services to children who receive Medicaid benefits, other

 3  Medicaid-eligible children with special health care needs, and

 4  children participating in the Florida Kidcare program.

 5         Section 435.  Subsection (2) of section 391.221,

 6  Florida Statutes, is amended to read:

 7         391.221  Statewide Children's Medical Services Network

 8  Advisory Council.--

 9         (2)  The council shall be composed of 12 members

10  representing the private health care provider sector, families

11  with children who have special health care needs, the Agency

12  for Health Care Administration, the Department of Financial

13  Services Insurance, the Florida Chapter of the American

14  Academy of Pediatrics, an academic health center pediatric

15  program, and the health insurance industry. Members shall be

16  appointed for 4-year, staggered terms.  In no case shall an

17  employee of the Department of Health serve as a member or as

18  an ex officio member of the advisory council.  A vacancy shall

19  be filled for the remainder of the unexpired term in the same

20  manner as the original appointment.  A member may not be

21  appointed to more than two consecutive terms.  However, a

22  member may be reappointed after being off the council for at

23  least 2 years.

24         Section 436.  Subsection (2) of section 392.69, Florida

25  Statutes, is amended to read:

26         392.69  Appropriation, sinking, and maintenance trust

27  funds; additional powers of the department.--

28         (2)  All moneys required to be paid by the several

29  counties and patients for the care and maintenance of patients

30  hospitalized by the department for tuberculosis shall be paid

31  to the department, and the department shall immediately

                                 438

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 1  transmit these moneys to the Chief Financial Officer

 2  Treasurer, who shall deposit the moneys in the Operations and

 3  Maintenance Trust Fund, which shall contain all moneys

 4  appropriated by the Legislature or received from patients or

 5  other third parties and shall be expended for the operation

 6  and maintenance of the state-operated tuberculosis hospital.

 7         Section 437.  Subsection (5) of section 393.002,

 8  Florida Statutes, is amended to read:

 9         393.002  Transfer of Florida Developmental Disabilities

10  Council as formerly created in this chapter to private

11  nonprofit corporation.--

12         (5)  Pursuant to the applicable provisions of chapter

13  284, the Division of Risk Management of the Department of

14  Financial Services Insurance is authorized to insure this

15  nonprofit corporation under the same general terms and

16  conditions as the Florida Developmental Disabilities Council

17  was insured in the Department of Children and Family Services

18  by the division prior to the transfer of its functions

19  authorized by this section.

20         Section 438.  Subsection (2) of section 393.075,

21  Florida Statutes, is amended to read:

22         393.075  General liability coverage.--

23         (2)  The Division of Risk Management of the Department

24  of Financial Services Insurance shall provide coverage through

25  the Department of Children and Family Services to any person

26  who owns or operates a foster care facility or group home

27  facility solely for the Department of Children and Family

28  Services, who cares for children placed by developmental

29  services staff of the department, and who is licensed pursuant

30  to s. 393.067 to provide such supervision and care in his or

31  her place of residence. The coverage shall be provided from

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 1  the general liability account of the State Risk Management

 2  Trust Fund.  The coverage is limited to general liability

 3  claims arising from the provision of supervision and care of

 4  children in a foster care facility or group home facility

 5  pursuant to an agreement with the department and pursuant to

 6  guidelines established through policy, rule, or statute.

 7  Coverage shall be subject to the limits provided in ss. 284.38

 8  and 284.385, and the exclusions set forth therein, together

 9  with other exclusions as may be set forth in the certificate

10  of coverage issued by the trust fund. A person covered under

11  the general liability account pursuant to this subsection

12  shall immediately notify the Division of Risk Management of

13  the Department of Financial Services Insurance of any

14  potential or actual claim.

15         Section 439.  Section 394.482, Florida Statutes, is

16  amended to read:

17         394.482  Payment of financial obligations imposed by

18  compact.--The compact administrator, subject to the approval

19  of the Chief Financial Officer Comptroller, may make or

20  arrange for any payments necessary to discharge any financial

21  obligations imposed upon this state by the compact or by any

22  supplementary agreement entered into thereunder.

23         Section 440.  Paragraphs (a) and (c) of subsection (4)

24  of section 400.0238, Florida Statutes, are amended to read:

25         400.0238  Punitive damages; limitation.--

26         (4)  Notwithstanding any other law to the contrary, the

27  amount of punitive damages awarded pursuant to this section

28  shall be equally divided between the claimant and the Quality

29  of Long-Term Care Facility Improvement Trust Fund, in

30  accordance with the following provisions:

31  

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 1         (a)  The clerk of the court shall transmit a copy of

 2  the jury verdict to the Chief Financial Officer State

 3  Treasurer by certified mail. In the final judgment, the court

 4  shall order the percentages of the award, payable as provided

 5  herein.

 6         (c)  The Department of Financial Services Banking and

 7  Finance shall collect or cause to be collected all payments

 8  due the state under this section. Such payments are made to

 9  the Chief Financial Officer Comptroller and deposited in the

10  appropriate fund specified in this subsection.

11         Section 441.  Subsection (2) of section 400.063,

12  Florida Statutes, is amended to read:

13         400.063  Resident Protection Trust Fund.--

14         (2)  The agency is authorized to establish for each

15  facility, subject to intervention by the agency, a separate

16  bank account for the deposit to the credit of the agency of

17  any moneys received from the Resident Protection Trust Fund or

18  any other moneys received for the maintenance and care of

19  residents in the facility, and the agency is authorized to

20  disburse moneys from such account to pay obligations incurred

21  for the purposes of this section.  The agency is authorized to

22  requisition moneys from the Resident Protection Trust Fund in

23  advance of an actual need for cash on the basis of an estimate

24  by the agency of moneys to be spent under the authority of

25  this section. Any bank account established under this section

26  need not be approved in advance of its creation as required by

27  s. 18.101, but shall be secured by depository insurance equal

28  to or greater than the balance of such account or by the

29  pledge of collateral security in conformance with criteria

30  established in s. 18.11. The agency shall notify the Chief

31  Financial Officer Treasurer and the Comptroller of any such

                                 441

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 1  account so established and shall make a quarterly accounting

 2  to the Chief Financial Officer Comptroller for all moneys

 3  deposited in such account.

 4         Section 442.  Paragraph (c) of subsection (4) of

 5  section 400.071, Florida Statutes, as amended by section 18 of

 6  chapter 2001-377, Laws of Florida, is amended to read:

 7         400.071  Application for license.--

 8         (4)  Each applicant for licensure must comply with the

 9  following requirements:

10         (c)  Proof of compliance with the level 2 background

11  screening requirements of chapter 435 which has been submitted

12  within the previous 5 years in compliance with any other

13  health care or assisted living licensure requirements of this

14  state is acceptable in fulfillment of paragraph (a). Proof of

15  compliance with background screening which has been submitted

16  within the previous 5 years to fulfill the requirements of the

17  Department of Financial Services Insurance pursuant to chapter

18  651 as part of an application for a certificate of authority

19  to operate a continuing care retirement community is

20  acceptable in fulfillment of the Department of Law Enforcement

21  and Federal Bureau of Investigation background check.

22         Section 443.  Paragraph (b) of subsection (1) of

23  section 400.4174, Florida Statutes, is amended to read:

24         400.4174  Background screening; exemptions.--

25         (1)

26         (b)  Proof of compliance with level 2 screening

27  standards which has been submitted within the previous 5 years

28  to meet any facility or professional licensure requirements of

29  the agency or the Department of Health satisfies the

30  requirements of this subsection, provided that such proof is

31  accompanied, under penalty of perjury, by an affidavit of

                                 442

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 1  compliance with the provisions of chapter 435. Proof of

 2  compliance with the background screening requirements of the

 3  Department of Financial Services Insurance for applicants for

 4  a certificate of authority to operate a continuing care

 5  retirement community under chapter 651, submitted within the

 6  last 5 years, satisfies the Department of Law Enforcement and

 7  Federal Bureau of Investigation portions of a level 2

 8  background check.

 9         Section 444.  Paragraphs (a) and (c) of subsection (4)

10  of section 400.4298, Florida Statutes, are amended to read:

11         400.4298  Punitive damages; limitation.--

12         (4)  Notwithstanding any other law to the contrary, the

13  amount of punitive damages awarded pursuant to this section

14  shall be equally divided between the claimant and the Quality

15  of Long-Term Care Facility Improvement Trust Fund, in

16  accordance with the following provisions:

17         (a)  The clerk of the court shall transmit a copy of

18  the jury verdict to the Chief Financial Officer State

19  Treasurer by certified mail. In the final judgment, the court

20  shall order the percentages of the award, payable as provided

21  herein.

22         (c)  The Department of Financial Services Banking and

23  Finance shall collect or cause to be collected all payments

24  due the state under this section. Such payments are made to

25  the Chief Financial Officer Comptroller and deposited in the

26  appropriate fund specified in this subsection.

27         Section 445.  Paragraph (c) of subsection (4) of

28  section 400.471, Florida Statutes, is amended to read:

29         400.471  Application for license; fee; provisional

30  license; temporary permit.--

31  

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 1         (4)  Each applicant for licensure must comply with the

 2  following requirements:

 3         (c)  Proof of compliance with the level 2 background

 4  screening requirements of chapter 435 which has been submitted

 5  within the previous 5 years in compliance with any other

 6  health care or assisted living licensure requirements of this

 7  state is acceptable in fulfillment of paragraph (a). Proof of

 8  compliance with background screening which has been submitted

 9  within the previous 5 years to fulfill the requirements of the

10  Department of Financial Services Insurance pursuant to chapter

11  651 as part of an application for a certificate of authority

12  to operate a continuing care retirement community is

13  acceptable in fulfillment of the Department of Law Enforcement

14  and Federal Bureau of Investigation background check.

15         Section 446.  Paragraph (c) of subsection (10) of

16  section 400.962, Florida Statutes, is amended to read:

17         400.962  License required; license application.--

18         (10)

19         (c)  Proof of compliance with the level 2 background

20  screening requirements of chapter 435 which has been submitted

21  within the previous 5 years in compliance with any other

22  licensure requirements under this chapter satisfies the

23  requirements of paragraph (a). Proof of compliance with

24  background screening which has been submitted within the

25  previous 5 years to fulfill the requirements of the Department

26  of Financial Services Insurance under chapter 651 as part of

27  an application for a certificate of authority to operate a

28  continuing care retirement community satisfies the

29  requirements for the Department of Law Enforcement and Federal

30  Bureau of Investigation background checks.

31  

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 1         Section 447.  Paragraph (b) of subsection (2) of

 2  section 401.245, Florida Statutes, is amended to read:

 3         401.245  Emergency Medical Services Advisory Council.--

 4         (2)

 5         (b)  Representation on the Emergency Medical Services

 6  Advisory Council shall include:  two licensed physicians who

 7  are "medical directors" as defined in s. 401.23(15) or whose

 8  medical practice is closely related to emergency medical

 9  services; two emergency medical service administrators, one of

10  whom is employed by a fire service; two certified paramedics,

11  one of whom is employed by a fire service; two certified

12  emergency medical technicians, one of whom is employed by a

13  fire service; one emergency medical services educator; one

14  emergency nurse; one hospital administrator; one

15  representative of air ambulance services; one representative

16  of a commercial ambulance operator; and two laypersons who are

17  in no way connected with emergency medical services, one of

18  whom is a representative of the elderly. Ex officio members of

19  the advisory council from state agencies shall include, but

20  shall not be limited to, representatives from the Department

21  of Education, the Department of Management Services, the

22  Department of Financial Services Insurance, the Department of

23  Highway Safety and Motor Vehicles, the Department of

24  Transportation, and the Department of Community Affairs.

25         Section 448.  Paragraph (c) of subsection (2) of

26  section 401.25, Florida Statutes, is amended to read:

27         401.25  Licensure as a basic life support or an

28  advanced life support service.--

29         (2)  The department shall issue a license for operation

30  to any applicant who complies with the following requirements:

31  

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 1         (c)  The applicant has furnished evidence of adequate

 2  insurance coverage for claims arising out of injury to or

 3  death of persons and damage to the property of others

 4  resulting from any cause for which the owner of such business

 5  or service would be liable.  The applicant must provide

 6  insurance in such sums and under such terms as required by the

 7  department.  In lieu of such insurance, the applicant may

 8  furnish a certificate of self-insurance evidencing that the

 9  applicant has established an adequate self-insurance plan to

10  cover such risks and that the plan has been approved by the

11  Department of Financial Services Insurance.

12         Section 449.  Section 402.04, Florida Statutes, is

13  amended to read:

14         402.04  Award of scholarships and stipends;

15  disbursement of funds; administration.--The award of

16  scholarships or stipends provided for herein shall be made by

17  the Department of Children and Family Services, hereinafter

18  referred to as the department. The department shall handle the

19  administration of the scholarship or stipend and the

20  Department of Education shall, for and on behalf of the

21  department, handle the notes issued for the payment of the

22  scholarships or stipends provided for herein and the

23  collection of same.  The department shall prescribe

24  regulations governing the payment of scholarships or stipends

25  to the school, college, or university for the benefit of the

26  scholarship or stipend holders. All scholarship awards,

27  expenses and costs of administration shall be paid from moneys

28  appropriated by the Legislature and shall be paid upon

29  vouchers approved by the department and properly certified by

30  the Chief Financial Officer Comptroller.

31  

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 1         Section 450.  Paragraph (b) of subsection (1) and

 2  subsection (4) of section 402.17, Florida Statutes, are

 3  amended to read:

 4         402.17  Claims for care and maintenance; trust

 5  property.--The Department of Children and Family Services

 6  shall protect the financial interest of the state with respect

 7  to claims which the state may have for the care and

 8  maintenance of clients of the department. The department

 9  shall, as trustee, hold in trust and administer money of

10  clients and property designated for the personal benefit of

11  clients. The department shall act as trustee of clients' money

12  and property entrusted to it in accordance with the usual

13  fiduciary standards applicable generally to trustees, and

14  shall act to protect both the short-term and long-term

15  interests of the clients for whose benefit it is holding such

16  money and property.

17         (1)  CLAIMS FOR CARE AND MAINTENANCE.--

18         (b)  The Department of Children and Family Services may

19  charge off accounts if it certifies that the accounts are

20  uncollectible after diligent efforts have been made to collect

21  them.  If the department certifies an account to the

22  Department of Financial Services Banking and Finance, setting

23  forth the circumstances upon which it predicates the

24  uncollectibility, and if, pursuant to s. 17.04, the Department

25  of Financial Services Banking and Finance concurs, the account

26  shall be charged off.

27         (4)  DISPOSITION OF UNCLAIMED TRUST FUNDS.--Upon the

28  death of any client affected by the provisions of this

29  section, any unclaimed money held in trust by the department

30  or by the Chief Financial Officer Treasurer for him or her

31  shall be applied first to the payment of any unpaid claim of

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 1  the state against the client, and any balance remaining

 2  unclaimed for a period of 1 year shall escheat to the state as

 3  unclaimed funds held by fiduciaries.

 4         Section 451.  Paragraph (a) of subsection (8) of

 5  section 402.33, Florida Statutes, is amended to read:

 6         402.33  Department authority to charge fees for

 7  services provided.--

 8         (8)(a)  Unpaid fees for services provided by the

 9  department to a client constitute a lien on any property owned

10  by the client or the client's responsible party which property

11  is not exempt by s. 4, Art. X of the State Constitution.  If

12  fees are not paid within 6 months after they are billed, the

13  department shall charge interest on the unpaid balance at a

14  rate equal to the average rate of interest earned by the State

15  Treasury on state funds deposited in commercial banks as

16  reported by the Chief Financial Officer Treasurer for the

17  previous year. The department is authorized to negotiate and

18  settle any delinquent account, and to charge off any

19  delinquent account even though the claim of the department may

20  be against the client, a responsible party, or a payor of

21  third-party benefits, either directly for the department or as

22  a fiduciary for the client or responsible party.

23         Section 452.  Paragraph (a) of subsection (8) of

24  section 403.1835, Florida Statutes, is amended to read:

25         403.1835  Water pollution control financial

26  assistance.--

27         (8)(a)  If a local governmental agency becomes

28  delinquent on its loan, the department shall so certify to the

29  Chief Financial Officer Comptroller, who shall forward the

30  amount delinquent to the department from any unobligated funds

31  due to the local governmental agency under any revenue-sharing

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 1  or tax-sharing fund established by the state, except as

 2  otherwise provided by the State Constitution. Certification of

 3  delinquency shall not limit the department from pursuing other

 4  remedies available for default on a loan. The department may

 5  impose a penalty for delinquent loan payments in an amount not

 6  to exceed an interest rate of 18 percent per annum on the

 7  amount due in addition to charging the cost to handle and

 8  process the debt. Penalty interest shall accrue on any amount

 9  due and payable beginning on the 30th day following the date

10  upon which payment is due.

11         Section 453.  Subsection (2) of section 403.1837,

12  Florida Statutes, is amended to read:

13         403.1837  Florida Water Pollution Control Financing

14  Corporation.--

15         (2)  The corporation shall be governed by a board of

16  directors consisting of the Governor's Budget Director or the

17  budget director's designee, the Chief Financial Officer

18  Comptroller or the Chief Financial Officer's Comptroller's

19  designee, the Treasurer or the Treasurer's designee, and the

20  Secretary of Environmental Protection or the secretary's

21  designee, until January 7, 2003, at which time the board shall

22  include the Chief Financial Officer or the Chief Financial

23  Officer's designee in place of the Treasurer and Comptroller.

24  The executive director of the State Board of Administration

25  shall be the chief executive officer of the corporation; shall

26  direct and supervise the administrative affairs of the

27  corporation; and shall control, direct, and supervise

28  operation of the corporation. The corporation shall have such

29  other officers as may be determined by the board of directors.

30         Section 454.  Subsection (21) of section 403.706,

31  Florida Statutes, is amended to read:

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 1         403.706  Local government solid waste

 2  responsibilities.--

 3         (21)  In addition to any other penalties provided by

 4  law, a local government that does not comply with the

 5  requirements of subsections (2) and (4) shall not be eligible

 6  for grants from the Solid Waste Management Trust Fund, and the

 7  department may notify the Chief Financial Officer State

 8  Treasurer to withhold payment of all or a portion of funds

 9  payable to the local government by the department from the

10  General Revenue Fund or by the department from any other state

11  fund, to the extent not pledged to retire bonded indebtedness,

12  unless the local government demonstrates that good faith

13  efforts to meet the requirements of subsections (2) and (4)

14  have been made or that the funds are being or will be used to

15  finance the correction of a pollution control problem that

16  spans jurisdictional boundaries.

17         Section 455.  Subsection (3) of section 403.724,

18  Florida Statutes, is amended to read:

19         403.724  Financial responsibility.--

20         (3)  The amount of financial responsibility required

21  shall be approved by the department upon each issuance,

22  renewal, or modification of a hazardous waste facility permit.

23  Such factors as inflation rates and changes in operation may

24  be considered when approving financial responsibility for the

25  duration of the permit. The Department of Financial Services

26  Insurance shall be available to assist the department in

27  making this determination. In approving or modifying the

28  amount of financial responsibility, the department shall

29  consider:

30         (a)  The amount and type of hazardous waste involved;

31  

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 1         (b)  The probable damage to human health and the

 2  environment;

 3         (c)  The danger and probable damage to private and

 4  public property near the facility;

 5         (d)  The probable time that the hazardous waste and

 6  facility involved will endanger the public health, safety, and

 7  welfare or the environment; and

 8         (e)  The probable costs of properly closing the

 9  facility.

10         Section 456.  Paragraph (a) of subsection (15) of

11  section 403.8532, Florida Statutes, is amended to read:

12         403.8532  Drinking water state revolving loan fund;

13  use; rules.--

14         (15)(a)  If a local governmental agency defaults under

15  the terms of its loan agreement, the department shall so

16  certify to the Chief Financial Officer Comptroller, who shall

17  forward the amount delinquent to the department from any

18  unobligated funds due to the local governmental agency under

19  any revenue-sharing or tax-sharing fund established by the

20  state, except as otherwise provided by the State Constitution.

21  Certification of delinquency shall not limit the department

22  from pursuing other remedies available for default on a loan,

23  including accelerating loan repayments, eliminating all or

24  part of the interest rate subsidy on the loan, and court

25  appointment of a receiver to manage the public water system.

26         Section 457.  Paragraphs (a), (b), (c), and (e) of

27  subsection (2) of section 404.111, Florida Statutes, are

28  amended to read:

29         404.111  Surety requirements.--

30         (2)  In lieu of posting a bond as required under

31  subsection (1), a licensee may:

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 1         (a)  Deposit with the Chief Financial Officer Treasurer

 2  securities of the type eligible for deposit by insurers under

 3  s. 625.52, which securities must have at all times a market

 4  value of not less than the amount of the bond required under

 5  subsection (1).

 6         (b)  Whenever the market value of the securities

 7  deposited with the Chief Financial Officer Treasurer is less

 8  than 95 percent of the amount required by the department, the

 9  licensee shall deposit additional securities or otherwise

10  increase the deposit to the amount required.

11         (c)  The state is responsible for the safekeeping of

12  all securities deposited with the Chief Financial Officer

13  Treasurer under this section. Such securities are not, on

14  account of being in this state, subject to taxation but shall

15  be held exclusively and solely to guarantee the faithful

16  performance by the licensee of its obligations.

17         (e)  Such deposit shall be maintained unimpaired so

18  long as the licensee continues in business in this state.

19  Whenever the licensee ceases to do business in this state and

20  furnishes the department satisfactory proof that it has

21  discharged or otherwise adequately provided for all its

22  obligations in this state, the Chief Financial Officer

23  Treasurer shall release the deposit securities to the parties

24  entitled thereto, on the receipt of authorization from the

25  department.

26         Section 458.  Paragraph (b) of subsection (2) of

27  section 408.040, Florida Statutes, is amended to read:

28         408.040  Conditions and monitoring.--

29         (2)

30         (b)  A certificate of need issued to an applicant

31  holding a provisional certificate of authority under chapter

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 1  651 shall terminate 1 year after the applicant receives a

 2  valid certificate of authority from the Department of

 3  Financial Services Insurance.

 4         Section 459.  Paragraph (a) of subsection (8) of

 5  section 408.05, Florida Statutes, is amended to read:

 6         408.05  State Center for Health Statistics.--

 7         (8)  STATE COMPREHENSIVE HEALTH INFORMATION SYSTEM

 8  ADVISORY COUNCIL.--

 9         (a)  There is established in the agency the State

10  Comprehensive Health Information System Advisory Council to

11  assist the center in reviewing the comprehensive health

12  information system and to recommend improvements for such

13  system. The council shall consist of the following members:

14         1.  An employee of the Executive Office of the

15  Governor, to be appointed by the Governor.

16         2.  An employee of the Department of Financial Services

17  Insurance, to be appointed by the Chief Financial Officer

18  Insurance Commissioner.

19         3.  An employee of the Department of Education, to be

20  appointed by the Commissioner of Education.

21         4.  Ten persons, to be appointed by the Secretary of

22  Health Care Administration, representing other state and local

23  agencies, state universities, the Florida Association of

24  Business/Health Coalitions, local health councils,

25  professional health-care-related associations, consumers, and

26  purchasers.

27         Section 460.  Subsection (4) of section 408.08, Florida

28  Statutes, is amended to read:

29         408.08  Inspections and audits; violations; penalties;

30  fines; enforcement.--

31  

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 1         (4)  If a health insurer does not comply with the

 2  requirements of s. 408.061, the agency shall report a health

 3  insurer's failure to comply to the Department of Financial

 4  Services Insurance, which shall take into account the failure

 5  by the health insurer to comply in conjunction with its

 6  approval authority under s. 627.410.  The agency shall adopt

 7  any rules necessary to carry out its responsibilities required

 8  by this subsection.

 9         Section 461.  Paragraph (a) of subsection (4) and

10  subsection (9) of section 408.18, Florida Statutes, are

11  amended to read:

12         408.18  Health Care Community Antitrust Guidance Act;

13  antitrust no-action letter; market-information collection and

14  education.--

15         (4)(a)  Members of the health care community who seek

16  antitrust guidance may request a review of their proposed

17  business activity by the Attorney General's office.  In

18  conducting its review, the Attorney General's office may seek

19  whatever documentation, data, or other material it deems

20  necessary from the Agency for Health Care Administration, the

21  State Center for Health Statistics, and the Department of

22  Financial Services Insurance.

23         (9)  When the member of the health care community

24  seeking the no-action letter is regulated by the Department of

25  Financial Services Insurance, the Department of Financial

26  Services Insurance shall make available to the Attorney

27  General's office, as needed, any information it maintains in

28  its regulatory capacity.

29         Section 462.  Subsection (1) of section 408.50, Florida

30  Statutes, is amended to read:

31         408.50  Prospective payment arrangements.--

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 1         (1)  Hospitals as defined in s. 395.002, and health

 2  insurers regulated pursuant to parts VI and VII of chapter

 3  627, shall establish prospective payment arrangements that

 4  provide hospitals with financial incentives to contain costs.

 5  Each hospital shall enter into a rate agreement with each

 6  health insurer which represents 10 percent or more of the

 7  private-pay patients of the hospital to establish a

 8  prospective payment arrangement. Hospitals and health insurers

 9  regulated pursuant to this section shall report annually the

10  results of each specific prospective payment arrangement

11  adopted by each hospital and health insurer to the board. The

12  agency shall report a health insurer's failure to comply to

13  the Department of Financial Services Insurance, which shall

14  take into account the failure by the health insurer to comply

15  in conjunction with its approval authority under s. 627.410.

16  The agency shall adopt any rules necessary to carry out its

17  responsibilities required by this section.

18         Section 463.  Paragraph (b) of subsection (1),

19  subsection (13), and paragraph (b) of subsection (15) of

20  section 408.7056, Florida Statutes, are amended to read:

21         408.7056  Statewide Provider and Subscriber Assistance

22  Program.--

23         (1)  As used in this section, the term:

24         (b)  "Department" means the Department of Financial

25  Services Insurance.

26         (13)  Any information which would identify a subscriber

27  or the spouse, relative, or guardian of a subscriber and which

28  is contained in a report obtained by the department of

29  Insurance pursuant to this section is confidential and exempt

30  from the provisions of s. 119.07(1) and s. 24(a), Art. I of

31  the State Constitution.

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 1         (15)

 2         (b)  Meetings of the panel shall be open to the public

 3  unless the provider or subscriber whose grievance will be

 4  heard requests a closed meeting or the agency or the

 5  department of Insurance determines that information of a

 6  sensitive personal nature which discloses the subscriber's

 7  medical treatment or history; or information which constitutes

 8  a trade secret as defined by s. 812.081; or information

 9  relating to internal risk management programs as defined in s.

10  641.55(5)(c), (6), and (8) may be revealed at the panel

11  meeting, in which case that portion of the meeting during

12  which such sensitive personal information, trade secret

13  information, or internal risk management program information

14  is discussed shall be exempt from the provisions of s. 286.011

15  and s. 24(b), Art. I of the State Constitution.  All closed

16  meetings shall be recorded by a certified court reporter.

17  

18  This subsection is subject to the Open Government Sunset

19  Review Act of 1995 in accordance with s. 119.15, and shall

20  stand repealed on October 2, 2003, unless reviewed and saved

21  from repeal through reenactment by the Legislature.

22         Section 464.  Subsection (1) of section 408.902,

23  Florida Statutes, is amended to read:

24         408.902  MedAccess program; creation; program title.--

25         (1)  Effective July 1, 1994, there is hereby created

26  the MedAccess program to be administered by the Agency for

27  Health Care Administration.  The MedAccess program shall not

28  be subject to the requirements of the Department of Financial

29  Services Insurance or chapter 627. The secretary of the agency

30  shall appoint an administrator of the MedAccess program.

31  

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 1         Section 465.  Paragraph (f) of subsection (5) and

 2  paragraph (a) of subsection (14) of section 409.175, Florida

 3  Statutes, are amended to read:

 4         409.175  Licensure of family foster homes, residential

 5  child-caring agencies, and child-placing agencies.--

 6         (5)

 7         (f)  All residential child-caring agencies must meet

 8  firesafety standards for such agencies adopted by the Division

 9  of State Fire Marshal of the Department of Financial Services

10  Insurance and must be inspected annually. At the request of

11  the department, firesafety inspections shall be conducted by

12  the Division of State Fire Marshal or a local fire department

13  official who has been certified by the division as having

14  completed the training requirements for persons inspecting

15  such agencies. Inspection reports shall be furnished to the

16  department within 30 days of a request.

17         (14)(a)  The Division of Risk Management of the

18  Department of Financial Services Insurance shall provide

19  coverage through the Department of Children and Family

20  Services to any person who owns or operates a family foster

21  home solely for the Department of Children and Family Services

22  and who is licensed to provide family foster home care in her

23  or his place of residence.  The coverage shall be provided

24  from the general liability account of the State Risk

25  Management Trust Fund, and the coverage shall be primary.  The

26  coverage is limited to general liability claims arising from

27  the provision of family foster home care pursuant to an

28  agreement with the department and pursuant to guidelines

29  established through policy, rule, or statute. Coverage shall

30  be limited as provided in ss. 284.38 and 284.385, and the

31  exclusions set forth therein, together with other exclusions

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 1  as may be set forth in the certificate of coverage issued by

 2  the trust fund, shall apply. A person covered under the

 3  general liability account pursuant to this subsection shall

 4  immediately notify the Division of Risk Management of the

 5  Department of Financial Services Insurance of any potential or

 6  actual claim.

 7         Section 466.  Subsection (10) of section 409.25656,

 8  Florida Statutes, is amended to read:

 9         409.25656  Garnishment.--

10         (10)  The department shall provide notice to the Chief

11  Financial Officer Comptroller, in electronic or other form

12  specified by the Chief Financial Officer Comptroller, listing

13  the obligors for whom warrants are outstanding. Pursuant to

14  subsection (1), the Chief Financial Officer Comptroller shall,

15  upon notice from the department, withhold all payments to any

16  obligor who provides commodities or services to the state,

17  leases real property to the state, or constructs a public

18  building or public work for the state. The department may levy

19  upon the withheld payments in accordance with subsection (3).

20  Section 215.422 does not apply from the date the notice is

21  filed with the Chief Financial Officer Comptroller until the

22  date the department notifies the Chief Financial Officer

23  Comptroller of its consent to make payment to the person or 60

24  days after receipt of the department's notice in accordance

25  with subsection (1), whichever occurs earlier.

26         Section 467.  Subsections (1), (2), (3), and (4) of

27  section 409.25658, Florida Statutes, are amended to read:

28         409.25658  Use of unclaimed property for past due

29  support.--

30         (1)  In a joint effort to facilitate the collection and

31  payment of past due support, the Department of Revenue, in

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 1  cooperation with the Department of Financial Services Banking

 2  and Finance, shall identify persons owing support collected

 3  through a court who are presumed to have abandoned property

 4  held by the Department of Financial Services Banking and

 5  Finance.

 6         (2)  The department shall periodically provide the

 7  Department of Financial Services Banking and Finance with an

 8  electronic file of support obligors who owe past due support.

 9  The Department of Financial Services Banking and Finance shall

10  conduct a data match of the file against all apparent owners

11  of abandoned property under chapter 717 and provide the

12  resulting match list to the department.

13         (3)  Upon receipt of the data match list, the

14  department shall provide to the Department of Financial

15  Services Banking and Finance the obligor's last known address.

16  The Department of Financial Services Banking and Finance shall

17  follow the notification procedures under s. 717.118.

18         (4)  Prior to paying an obligor's approved claim, the

19  Department of Financial Services Banking and Finance shall

20  notify the department that such claim has been approved. Upon

21  confirmation that the Department of Financial Services Banking

22  and Finance has approved the claim, the department shall

23  immediately send a notice by certified mail to the obligor,

24  with a copy to the Department of Financial Services Banking

25  and Finance, advising the obligor of the department's intent

26  to intercept the approved claim up to the amount of the past

27  due support, and informing the obligor of the obligor's right

28  to request a hearing under chapter 120. The Department of

29  Financial Services Banking and Finance shall retain custody of

30  the property until a final order has been entered and any

31  appeals thereon have been concluded. If the obligor fails to

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 1  request a hearing, the department shall enter a final order

 2  instructing the Department of Financial Services Banking and

 3  Finance to transfer to the department the property in the

 4  amount stated in the final order. Upon such transfer, the

 5  Department of Financial Services Banking and Finance shall be

 6  released from further liability related to the transferred

 7  property.

 8         Section 468.  Subsections (4) and (7) of section

 9  409.2673, Florida Statutes, are amended to read:

10         409.2673  Shared county and state health care program

11  for low-income persons.--

12         (4)  The levels of financial participation by counties

13  and the state for this program shall be determined as follows:

14         (a)  If on July 1, 1988, a county funded inpatient

15  hospital services for those who would have been eligible for

16  the program, the county shall fund 35 percent of the cost of

17  this program and the state shall provide the remaining 65

18  percent of the funding required for this program. A county

19  participating at this level shall use that portion of its

20  budget that previously would have funded these inpatient

21  hospital services and that, under this program, has been

22  offset by state funding for funding other health programs.

23         (b)  If a county has not reached its maximum ad valorem

24  millage rate as authorized by law and certified to the

25  Department of Revenue and the county does not currently fund

26  inpatient hospital services for those who would be eligible

27  for this program, the county:

28         1.  Shall provide 35 percent of the cost for this

29  program from within the county's existing budget, and the

30  state shall provide the remaining 65 percent of the funding

31  required for this program; however, under no circumstances

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 1  will county funding which had been used for funding the county

 2  health department under chapter 154 be utilized for funding

 3  the county's portion of this program; or

 4         2.  Shall levy an additional ad valorem millage to fund

 5  the county's portion of this program.  The state shall provide

 6  the remaining portion of program funding if:

 7         a.  A county levies additional ad valorem millage up to

 8  the maximum authorized by law and certified to the Department

 9  of Revenue and still does not have sufficient funds to meet

10  its 35 percent of the funding of this program; and

11         b.  A county has exhausted all revenue sources which

12  can statutorily be used as possible funding sources for this

13  program.

14         (c)  A county will be eligible for 100-percent state

15  funding of this program if:

16         1.  On July 1, 1988, the county did not fund inpatient

17  hospital services for those who would have been eligible for

18  this program;

19         2.  The county has reached its maximum ad valorem

20  millage as authorized by law and certified to the Department

21  of Revenue; and

22         3.  The county has exhausted all revenue sources which

23  can statutorily be used as possible funding sources for this

24  program.

25  

26  Reporting forms specifically designed to capture the

27  information necessary to determine the above levels of

28  participation will be developed as part of the joint

29  rulemaking required for the shared county and state program.

30  For purposes of this program, the counties will be required to

31  

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 1  report necessary information to the Department of Financial

 2  Services Banking and Finance.

 3         (7)  A county that participates in the program at any

 4  level may not reduce its total per capita expenditures being

 5  devoted to health care if any of these funds were previously

 6  utilized for the provision of inpatient hospital services to

 7  those persons made eligible for the shared county and state

 8  program.  It is the intent of the Legislature that, as a

 9  result of the shared county and state program, local funds

10  which were previously used for the provision of inpatient

11  hospital services to persons made eligible by the program be

12  used by counties for funding other health care programs which,

13  for purposes of this section, are health expenditures as

14  reported annually to the Department of Financial Services

15  Banking and Finance pursuant to s. 218.32, provided that this

16  subsection does not apply to reductions in county funding

17  resulting from the expiration of special sales taxes levied

18  pursuant to chapter 84-373, Laws of Florida.

19         Section 469.  Subsection (3) of section 409.8132,

20  Florida Statutes, is amended to read:

21         409.8132  Medikids program component.--

22         (3)  INSURANCE LICENSURE NOT REQUIRED.--The Medikids

23  program component shall not be subject to the licensing

24  requirements of the Florida Insurance Code or rules of the

25  Department of Financial Services Insurance.

26         Section 470.  Section 409.817, Florida Statutes, is

27  amended to read:

28         409.817  Approval of health benefits coverage;

29  financial assistance.--In order for health insurance coverage

30  to qualify for premium assistance payments for an eligible

31  

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 1  child under ss. 409.810-409.820, the health benefits coverage

 2  must:

 3         (1)  Be certified by the Department of Financial

 4  Services Insurance under s. 409.818 as meeting, exceeding, or

 5  being actuarially equivalent to the benchmark benefit plan;

 6         (2)  Be guarantee issued;

 7         (3)  Be community rated;

 8         (4)  Not impose any preexisting condition exclusion for

 9  covered benefits; however, group health insurance plans may

10  permit the imposition of a preexisting condition exclusion,

11  but only insofar as it is permitted under s. 627.6561;

12         (5)  Comply with the applicable limitations on premiums

13  and cost-sharing in s. 409.816;

14         (6)  Comply with the quality assurance and access

15  standards developed under s. 409.820; and

16         (7)  Establish periodic open enrollment periods, which

17  may not occur more frequently than quarterly.

18         Section 471.  Paragraph (c) of subsection (2),

19  paragraphs (a) and (f) of subsection (3), and subsections (4)

20  and (6) of section 409.818, Florida Statutes, are amended to

21  read:

22         409.818  Administration.--In order to implement ss.

23  409.810-409.820, the following agencies shall have the

24  following duties:

25         (2)  The Department of Health shall:

26         (c)  Chair a state-level coordinating council to review

27  and make recommendations concerning the implementation and

28  operation of the program. The coordinating council shall

29  include representatives from the department, the Department of

30  Children and Family Services, the agency, the Florida Healthy

31  Kids Corporation, the Department of Financial Services

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 1  Insurance, local government, health insurers, health

 2  maintenance organizations, health care providers, families

 3  participating in the program, and organizations representing

 4  low-income families.

 5         (3)  The Agency for Health Care Administration, under

 6  the authority granted in s. 409.914(1), shall:

 7         (a)  Calculate the premium assistance payment necessary

 8  to comply with the premium and cost-sharing limitations

 9  specified in s. 409.816. The premium assistance payment for

10  each enrollee in a health insurance plan participating in the

11  Florida Healthy Kids Corporation shall equal the premium

12  approved by the Florida Healthy Kids Corporation and the

13  Department of Financial Services Insurance pursuant to ss.

14  627.410 and 641.31, less any enrollee's share of the premium

15  established within the limitations specified in s. 409.816.

16  The premium assistance payment for each enrollee in an

17  employer-sponsored health insurance plan approved under ss.

18  409.810-409.820 shall equal the premium for the plan adjusted

19  for any benchmark benefit plan actuarial equivalent benefit

20  rider approved by the Department of Financial Services

21  Insurance pursuant to ss. 627.410 and 641.31, less any

22  enrollee's share of the premium  established within the

23  limitations specified in s. 409.816. In calculating the

24  premium assistance payment levels for children with family

25  coverage, the agency shall set the premium assistance payment

26  levels for each child proportionately to the total cost of

27  family coverage.

28         (f)  Approve health benefits coverage for participation

29  in the program, following certification by the Department of

30  Financial Services Insurance under subsection (4).

31  

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 1  The agency is designated the lead state agency for Title XXI

 2  of the Social Security Act for purposes of receipt of federal

 3  funds, for reporting purposes, and for ensuring compliance

 4  with federal and state regulations and rules.

 5         (4)  The Department of Financial Services Insurance

 6  shall certify that health benefits coverage plans that seek to

 7  provide services under the Florida Kidcare program, except

 8  those offered through the Florida Healthy Kids Corporation or

 9  the Children's Medical Services network, meet, exceed, or are

10  actuarially equivalent to the benchmark benefit plan and that

11  health insurance plans will be offered at an approved rate. In

12  determining actuarial equivalence of benefits coverage, the

13  Department of Financial Services Insurance and health

14  insurance plans must comply with the requirements of s. 2103

15  of Title XXI of the Social Security Act. The department shall

16  adopt rules necessary for certifying health benefits coverage

17  plans.

18         (6)  The agency, the Department of Health, the

19  Department of Children and Family Services, the Florida

20  Healthy Kids Corporation, and the Department of Financial

21  Services Insurance, after consultation with and approval of

22  the Speaker of the House of Representatives and the President

23  of the Senate, are authorized to make program modifications

24  that are necessary to overcome any objections of the United

25  States Department of Health and Human Services to obtain

26  approval of the state's child health insurance plan under

27  Title XXI of the Social Security Act.

28         Section 472.  Subsection (20) of section 409.910,

29  Florida Statutes, is amended to read:

30         409.910  Responsibility for payments on behalf of

31  Medicaid-eligible persons when other parties are liable.--

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 1         (20)  Entities providing health insurance as defined in

 2  s. 624.603, and health maintenance organizations and prepaid

 3  health clinics as defined in chapter 641, shall provide such

 4  records and information as are necessary to accomplish the

 5  purpose of this section, unless such requirement results in an

 6  unreasonable burden.

 7         (a)  The director of the agency and the Chief Financial

 8  Officer Insurance Commissioner shall enter into a cooperative

 9  agreement for requesting and obtaining information necessary

10  to effect the purpose and objective of this section.

11         1.  The agency shall request only that information

12  necessary to determine whether health insurance as defined

13  pursuant to s. 624.603, or those health services provided

14  pursuant to chapter 641, could be, should be, or have been

15  claimed and paid with respect to items of medical care and

16  services furnished to any person eligible for services under

17  this section.

18         2.  All information obtained pursuant to subparagraph

19  1. is confidential and exempt from s. 119.07(1).

20         3.  The cooperative agreement or rules adopted under

21  this subsection may include financial arrangements to

22  reimburse the reporting entities for reasonable costs or a

23  portion thereof incurred in furnishing the requested

24  information. Neither the cooperative agreement nor the rules

25  shall require the automation of manual processes to provide

26  the requested information.

27         (b)  The agency and the Department of Financial

28  Services Insurance jointly shall adopt rules for the

29  development and administration of the cooperative agreement.

30  The rules shall include the following:

31  

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 1         1.  A method for identifying those entities subject to

 2  furnishing information under the cooperative agreement.

 3         2.  A method for furnishing requested information.

 4         3.  Procedures for requesting exemption from the

 5  cooperative agreement based on an unreasonable burden to the

 6  reporting entity.

 7         Section 473.  Paragraph (a) of subsection (3),

 8  subsections (5), (14), and (17), and paragraph (a) of

 9  subsection (35) of section 409.912, Florida Statutes, as

10  amended by sections 8 and 9 of chapter 2001-377, Laws of

11  Florida, are amended to read:

12         409.912  Cost-effective purchasing of health care.--The

13  agency shall purchase goods and services for Medicaid

14  recipients in the most cost-effective manner consistent with

15  the delivery of quality medical care.  The agency shall

16  maximize the use of prepaid per capita and prepaid aggregate

17  fixed-sum basis services when appropriate and other

18  alternative service delivery and reimbursement methodologies,

19  including competitive bidding pursuant to s. 287.057, designed

20  to facilitate the cost-effective purchase of a case-managed

21  continuum of care. The agency shall also require providers to

22  minimize the exposure of recipients to the need for acute

23  inpatient, custodial, and other institutional care and the

24  inappropriate or unnecessary use of high-cost services. The

25  agency may establish prior authorization requirements for

26  certain populations of Medicaid beneficiaries, certain drug

27  classes, or particular drugs to prevent fraud, abuse, overuse,

28  and possible dangerous drug interactions. The Pharmaceutical

29  and Therapeutics Committee shall make recommendations to the

30  agency on drugs for which prior authorization is required. The

31  agency shall inform the Pharmaceutical and Therapeutics

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 1  Committee of its decisions regarding drugs subject to prior

 2  authorization.

 3         (3)  The agency may contract with:

 4         (a)  An entity that provides no prepaid health care

 5  services other than Medicaid services under contract with the

 6  agency and which is owned and operated by a county, county

 7  health department, or county-owned and operated hospital to

 8  provide health care services on a prepaid or fixed-sum basis

 9  to recipients, which entity may provide such prepaid services

10  either directly or through arrangements with other providers.

11  Such prepaid health care services entities must be licensed

12  under parts I and III by January 1, 1998, and until then are

13  exempt from the provisions of part I of chapter 641. An entity

14  recognized under this paragraph which demonstrates to the

15  satisfaction of the Department of Financial Services Insurance

16  that it is backed by the full faith and credit of the county

17  in which it is located may be exempted from s. 641.225.

18         (5)  The agency may contract on a prepaid or fixed-sum

19  basis with any health insurer that:

20         (a)  Pays for health care services provided to enrolled

21  Medicaid recipients in exchange for a premium payment paid by

22  the agency;

23         (b)  Assumes the underwriting risk; and

24         (c)  Is organized and licensed under applicable

25  provisions of the Florida Insurance Code and is currently in

26  good standing with the Department of Financial Services

27  Insurance.

28         (14)  An entity contracting on a prepaid or fixed-sum

29  basis shall, in addition to meeting any applicable statutory

30  surplus requirements, also maintain at all times in the form

31  of cash, investments that mature in less than 180 days

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 1  allowable as admitted assets by the Department of Financial

 2  Services Insurance, and restricted funds or deposits

 3  controlled by the agency or the Department of Financial

 4  Services Insurance, a surplus amount equal to one-and-one-half

 5  times the entity's monthly Medicaid prepaid revenues. As used

 6  in this subsection, the term "surplus" means the entity's

 7  total assets minus total liabilities. If an entity's surplus

 8  falls below an amount equal to one-and-one-half times the

 9  entity's monthly Medicaid prepaid revenues, the agency shall

10  prohibit the entity from engaging in marketing and

11  preenrollment activities, shall cease to process new

12  enrollments, and shall not renew the entity's contract until

13  the required balance is achieved.  The requirements of this

14  subsection do not apply:

15         (a)  Where a public entity agrees to fund any deficit

16  incurred by the contracting entity; or

17         (b)  Where the entity's performance and obligations are

18  guaranteed in writing by a guaranteeing organization which:

19         1.  Has been in operation for at least 5 years and has

20  assets in excess of $50 million; or

21         2.  Submits a written guarantee acceptable to the

22  agency which is irrevocable during the term of the contracting

23  entity's contract with the agency and, upon termination of the

24  contract, until the agency receives proof of satisfaction of

25  all outstanding obligations incurred under the contract.

26         (17)  When a merger or acquisition of a Medicaid

27  prepaid contractor has been approved by the Department of

28  Financial Services Insurance pursuant to s. 628.4615, the

29  agency shall approve the assignment or transfer of the

30  appropriate Medicaid prepaid contract upon request of the

31  surviving entity of the merger or acquisition if the

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 1  contractor and the other entity have been in good standing

 2  with the agency for the most recent 12-month period, unless

 3  the agency determines that the assignment or transfer would be

 4  detrimental to the Medicaid recipients or the Medicaid

 5  program.  To be in good standing, an entity must not have

 6  failed accreditation or committed any material violation of

 7  the requirements of s. 641.52 and must meet the Medicaid

 8  contract requirements.  For purposes of this section, a merger

 9  or acquisition means a change in controlling interest of an

10  entity, including an asset or stock purchase.

11         (35)  The Agency for Health Care Administration is

12  directed to issue a request for proposal or intent to

13  negotiate to implement on a demonstration basis an outpatient

14  specialty services pilot project in a rural and urban county

15  in the state.  As used in this subsection, the term

16  "outpatient specialty services" means clinical laboratory,

17  diagnostic imaging, and specified home medical services to

18  include durable medical equipment, prosthetics and orthotics,

19  and infusion therapy.

20         (a)  The entity that is awarded the contract to provide

21  Medicaid managed care outpatient specialty services must, at a

22  minimum, meet the following criteria:

23         1.  The entity must be licensed by the Department of

24  Financial Services Insurance under part II of chapter 641.

25         2.  The entity must be experienced in providing

26  outpatient specialty services.

27         3.  The entity must demonstrate to the satisfaction of

28  the agency that it provides high-quality services to its

29  patients.

30         4.  The entity must demonstrate that it has in place a

31  complaints and grievance process to assist Medicaid recipients

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 1  enrolled in the pilot managed care program to resolve

 2  complaints and grievances.

 3         Section 474.  Subsections (2) and (3) of section

 4  409.9124, Florida Statutes, are amended to read:

 5         409.9124  Managed care reimbursement.--

 6         (2)  The agency shall by rule prescribe those items of

 7  financial information which each managed care plan shall

 8  report to the agency, in the time periods prescribed by rule.

 9  In prescribing items for reporting and definitions of terms,

10  the agency shall consult with the Department of Financial

11  Services Insurance wherever possible.

12         (3)  The agency shall quarterly examine the financial

13  condition of each managed care plan, and its performance in

14  serving Medicaid patients, and shall utilize examinations

15  performed by the Department of Financial Services Insurance

16  wherever possible.

17         Section 475.  Subsections (5) and (6) of section

18  409.915, Florida Statutes, are amended to read:

19         409.915  County contributions to Medicaid.--Although

20  the state is responsible for the full portion of the state

21  share of the matching funds required for the Medicaid program,

22  in order to acquire a certain portion of these funds, the

23  state shall charge the counties for certain items of care and

24  service as provided in this section.

25         (5)  The Department of Financial Services Banking and

26  Finance shall withhold from the cigarette tax receipts or any

27  other funds to be distributed to the counties the individual

28  county share that has not been remitted within 60 days after

29  billing.

30         (6)  In any county in which a special taxing district

31  or authority is located which will benefit from the medical

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 1  assistance programs covered by this section, the board of

 2  county commissioners may divide the county's financial

 3  responsibility for this purpose proportionately, and each such

 4  district or authority must furnish its share to the board of

 5  county commissioners in time for the board to comply with the

 6  provisions of subsection (3). Any appeal of the proration made

 7  by the board of county commissioners must be made to the

 8  Department of Financial Services Banking and Finance, which

 9  shall then set the proportionate share of each party.

10         Section 476.  Paragraph (c) of subsection (7) of

11  section 411.01, Florida Statutes, is amended to read:

12         411.01  Florida Partnership for School Readiness;

13  school readiness coalitions.--

14         (7)  PARENTAL CHOICE.--

15         (c)  The Office of the Chief Financial Officer

16  Comptroller shall establish an electronic transfer system for

17  the disbursement of funds in accordance with this subsection.

18  School readiness coalitions shall fully implement the

19  electronic funds transfer system within 2 years after plan

20  approval unless a waiver is obtained from the partnership.

21         Section 477.  Subsection (2) of section 413.32, Florida

22  Statutes, is amended to read:

23         413.32  Retention of title to and disposal of

24  equipment.--

25         (2)  The division is authorized to offer for sale any

26  surplus items acquired in the operation of the program when

27  they are no longer necessary or to exchange them for necessary

28  items which may be used to greater advantage. When any such

29  surplus equipment is sold or exchanged a receipt for same

30  shall be taken from the purchaser showing the consideration

31  given for such equipment and forwarded to the Chief Financial

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 1  Officer treasurer, and any funds received by the division

 2  pursuant to any such transactions shall be deposited in the

 3  State Treasury in the appropriate federal or state

 4  rehabilitation funds and shall be available for expenditure

 5  for any purpose consistent with this part.

 6         Section 478.  Section 414.27, Florida Statutes, is

 7  amended to read:

 8         414.27  Temporary cash assistance; payment on death.--

 9         (1)  Upon the death of any person receiving temporary

10  cash assistance through the Department of Children and Family

11  Services, all temporary cash accrued to such person from the

12  date of last payment to the date of death shall be paid to the

13  person who shall have been designated by her or him on a form

14  prescribed by the department and filed with the department

15  during the lifetime of the person making such designation. If

16  no designation is made, or the person so designated is no

17  longer living or cannot be found, then payment shall be made

18  to such person as may be designated by the circuit judge of

19  the county where the recipient of temporary cash assistance

20  resided. Designation by the circuit judge may be made on a

21  form provided by the department or by letter or memorandum to

22  the Chief Financial Officer Comptroller. No filing or

23  recording of the designation shall be required, and the

24  circuit judge shall receive no compensation for such service.

25  If a warrant has not been issued and forwarded prior to notice

26  by the department of the recipient's death, upon notice

27  thereof, the department shall promptly requisition the Chief

28  Financial Officer Comptroller to issue a warrant in the amount

29  of the accrued temporary cash assistance payable to the person

30  designated to receive it and shall attach to the requisition

31  the original designation of the deceased recipient, or if

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 1  none, the designation made by the circuit judge, as well as a

 2  notice of death. The Chief Financial Officer Comptroller shall

 3  issue a warrant in the amount payable.

 4         (2)  If a warrant has been issued and not cashed by the

 5  recipient payee prior to her or his death, such warrant shall

 6  be promptly returned to the department, together with notice

 7  of the death of the recipient. The original warrant shall be

 8  endorsed on the back by an authorized employee of the

 9  department. The endorsement must be on a form prescribed by

10  the department and approved by the Chief Financial Officer

11  Comptroller which must contain the name of the deceased

12  recipient, a statement of the recipient's death, and the date

13  thereof and state that it is payable to the order of the

14  designated beneficiary, without recourse.  The form shall be

15  signed by the authorized employee or employees of the

16  department, and thereupon such warrant shall be payable to the

17  designated beneficiary as fully and completely as if made

18  payable to her or him when issued. The department shall

19  furnish to the Chief Financial Officer Comptroller each month

20  a list of such deceased recipients, the designated

21  beneficiaries or persons to whom such warrants are endorsed,

22  and a description of such warrants as herein provided. The

23  department shall cause all persons receiving temporary cash

24  assistance to make the designations as soon as conveniently

25  may be, and shall preserve such designations in a safe place

26  for use.

27         Section 479.  Subsection (8) of section 414.28, Florida

28  Statutes, is amended to read:

29         414.28  Public assistance payments to constitute debt

30  of recipient.--

31  

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 1         (8)  DISPOSITION OF FUNDS RECOVERED.--All funds

 2  collected under this section shall be deposited with the

 3  Department of Financial Services Banking and Finance and a

 4  report of such deposit made to the department. After payment

 5  of costs the sums so collected shall be credited to the

 6  department and used by it.

 7         Section 480.  Section 420.0005, Florida Statutes, is

 8  amended to read:

 9         420.0005  State Housing Trust Fund; State Housing

10  Fund.--There is hereby established in the State Treasury a

11  separate trust fund to be named the "State Housing Trust

12  Fund." There shall be deposited in the fund all moneys

13  appropriated by the Legislature, or moneys received from any

14  other source, for the purpose of this chapter, and all

15  proceeds derived from the use of such moneys. The fund shall

16  be administered by the Florida Housing Finance Corporation on

17  behalf of the department, as specified in this chapter. Money

18  deposited to the fund and appropriated by the Legislature

19  must, notwithstanding the provisions of chapter 216 or s.

20  420.504(3), be transferred quarterly in advance, to the extent

21  available, or, if not so available, as soon as received into

22  the State Housing Trust Fund, and subject to the provisions of

23  s. 420.5092(6)(a) and (b) by the Chief Financial Officer

24  Comptroller to the corporation upon certification by the

25  Secretary of Community Affairs that the corporation is in

26  compliance with the requirements of s. 420.0006. The

27  certification made by the secretary shall also include the

28  split of funds among programs administered by the corporation

29  and the department as specified in chapter 92-317, Laws of

30  Florida, as amended. Moneys advanced by the Chief Financial

31  Officer Comptroller must be deposited by the corporation into

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 1  a separate fund established with a qualified public depository

 2  meeting the requirements of chapter 280 to be named the "State

 3  Housing Fund" and used for the purposes of this chapter.

 4  Administrative and personnel costs incurred in implementing

 5  this chapter may be paid from the State Housing Fund, but such

 6  costs may not exceed 5 percent of the moneys deposited into

 7  such fund. To the State Housing Fund shall be credited all

 8  loan repayments, penalties, and other fees and charges

 9  accruing to such fund under this chapter.  It is the intent of

10  this chapter that all loan repayments, penalties, and other

11  fees and charges collected be credited in full to the program

12  account from which the loan originated. Moneys in the State

13  Housing Fund which are not currently needed for the purposes

14  of this chapter shall be invested in such manner as is

15  provided for by statute.  The interest received on any such

16  investment shall be credited to the State Housing Fund.

17         Section 481.  Section 420.0006, Florida Statutes, is

18  amended to read:

19         420.0006  Authority to contract with corporation;

20  contract requirements; nonperformance.--The secretary of the

21  department shall contract, notwithstanding the provisions of

22  part I of chapter 287, with the Florida Housing Finance

23  Corporation on a multiyear basis to stimulate, provide, and

24  foster affordable housing in the state. The contract must

25  incorporate the performance measures required by s. 420.511

26  and must be consistent with the provisions of the

27  corporation's strategic plan prepared in accordance with s.

28  420.511 and compatible with s. 216.0166. The contract must

29  provide that, in the event the corporation fails to comply

30  with any of the performance measures required by s. 420.511,

31  the secretary shall notify the Governor and shall refer the

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 1  nonperformance to the department's inspector general for

 2  review and determination as to whether such failure is due to

 3  forces beyond the corporation's control or whether such

 4  failure is due to inadequate management of the corporation's

 5  resources. Advances shall continue to be made pursuant to s.

 6  420.0005 during the pendency of the review by the department's

 7  inspector general. If such failure is due to outside forces,

 8  it shall not be deemed a violation of the contract. If such

 9  failure is due to inadequate management, the department's

10  inspector general shall provide recommendations regarding

11  solutions. The Governor is authorized to resolve any

12  differences of opinion with respect to performance under the

13  contract and may request that advances continue in the event

14  of a failure under the contract due to inadequate management.

15  The Chief Financial Officer Comptroller shall approve the

16  request absent a finding by the Chief Financial Officer

17  Comptroller that continuing such advances would adversely

18  impact the state; however, in any event the Chief Financial

19  Officer Comptroller shall provide advances sufficient to meet

20  the debt service requirements of the corporation and

21  sufficient to fund contracts committing funds from the State

22  Housing Trust Fund so long as such contracts are in accordance

23  with the laws of this state. The department inspector general

24  shall perform for the corporation the functions set forth in

25  s. 20.055 and report to the secretary of the department. The

26  corporation shall be deemed an agency for the purposes of s.

27  20.055.

28         Section 482.  Paragraph (d) of subsection (1) of

29  section 420.101, Florida Statutes, is amended to read:

30         420.101  Housing Development Corporation of Florida;

31  creation, membership, and purposes.--

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 1         (1)  Twenty-five or more persons, a majority of whom

 2  shall be residents of this state, who may desire to create a

 3  housing development corporation under the provisions of this

 4  part for the purpose of promoting and developing housing and

 5  advancing the prosperity and economic welfare of the state

 6  and, to that end, to exercise the powers and privileges

 7  hereinafter provided, may be incorporated by filing in the

 8  Department of State, as hereinafter provided, articles of

 9  incorporation.  The articles of incorporation shall contain:

10         (d)  The names and post office addresses of the members

11  of the first board of directors. The first board of directors

12  shall be elected by and from the stockholders of the

13  corporation and shall consist of 21 members.  However, four

14  five of such members shall consist of the following persons,

15  who shall be nonvoting members: the secretary of the

16  Department of Community Affairs or her or his designee; the

17  head of the Department of Financial Services Banking and

18  Finance or her or his designee; the head of the Department of

19  Insurance or her or his designee; one state senator appointed

20  by the President of the Senate; and one representative

21  appointed by the Speaker of the House of Representatives.

22         Section 483.  Subsection (1) of section 420.123,

23  Florida Statutes, is amended to read:

24         420.123  Stockholders; loan requirement.--

25         (1)  Any financial institution may request membership

26  in the corporation by making application to the board of

27  directors on such form and in such manner as the board of

28  directors may require, and membership shall become effective

29  upon acceptance of the application in the manner designated by

30  the board. Each member stockholder of the corporation shall

31  make loans to the corporation as and when called upon by it to

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 1  do so on such terms and other conditions as shall be approved

 2  from time to time by the board of directors, except that the

 3  total amount outstanding on loans to the corporation made by

 4  any member at any one time, when added to the amount of the

 5  investment in the capital stock of the corporation then held

 6  by such member, shall not exceed the following limit, to be

 7  determined as of the time such member becomes a member on the

 8  basis of the audited balance sheet of such member at the close

 9  of its fiscal year immediately preceding its application for

10  membership or, in the case of an insurance company, its last

11  annual statement to the Department of Financial Services

12  Insurance: 5 percent of the capital and surplus of commercial

13  banks and trust companies; 5 percent of the total outstanding

14  loans made by savings and loan associations and building and

15  loan associations; 5 percent of the capital and unassigned

16  surplus of stock insurance companies, except fire insurance

17  companies; 5 percent of the unassigned surplus of mutual

18  insurance companies, except fire insurance companies; 0.2

19  percent of the assets of fire insurance companies; and such

20  limits as may be approved by the board of directors of the

21  corporation for other financial institutions.

22         Section 484.  Subsection (1) of section 420.131,

23  Florida Statutes, is amended to read:

24         420.131  Articles of incorporation; method of

25  amending.--

26         (1)  The articles of incorporation may be amended by

27  the vote of the stockholders of the corporation, and such

28  amendments shall require approval by the affirmative vote of

29  two-thirds of the votes to which the stockholders shall be

30  entitled.  However, no amendment of the articles of

31  incorporation which is inconsistent with the general purposes

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 1  expressed herein or which eliminates or curtails the right of

 2  the Department of Financial Services Banking and Finance to

 3  examine the corporation or the obligation of the corporation

 4  to make reports as provided in s. 420.141(2) shall be made.

 5         Section 485.  Subsection (2) of section 420.141,

 6  Florida Statutes, is amended to read:

 7         420.141  Housing Development Corporation of Florida;

 8  deposits and examination.--

 9         (2)  The corporation shall be examined at least once

10  annually by the Department of Financial Services Banking and

11  Finance and shall make reports of its condition not less than

12  annually to such said department, and more frequently upon

13  call of the department, which in turn shall make copies of

14  such reports available to the Department of Insurance and the

15  Governor; and the corporation shall also furnish such other

16  information as may from time to time be required by the

17  Department of Financial Services Banking and Finance and the

18  Department of State. The Department of Financial Services

19  Banking and Finance shall exercise the same power and

20  authority over the corporation organized pursuant to this part

21  as is exercised over financial institutions under the

22  provisions of the financial institutions codes, when such

23  codes are not in conflict with this chapter.

24         Section 486.  Subsection (6) of section 420.5092,

25  Florida Statutes, is amended to read:

26         420.5092  Florida Affordable Housing Guarantee

27  Program.--

28         (6)(a)  If the primary revenue sources to be used for

29  repayment of revenue bonds used to establish the guarantee

30  fund are insufficient for such repayment, the annual principal

31  and interest due on each series of revenue bonds shall be

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 1  payable from funds in the annual debt service reserve.  The

 2  corporation shall, before June 1 of each year, perform a

 3  financial audit to determine whether at the end of the state

 4  fiscal year there will be on deposit in the guarantee fund an

 5  annual debt service reserve from interest earned pursuant to

 6  the investment of the guarantee fund, fees, charges, and

 7  reimbursements received from issued affordable housing

 8  guarantees and other revenue sources available to the

 9  corporation. Based upon the findings in such guarantee fund

10  financial audit, the corporation shall certify to the Chief

11  Financial Officer Comptroller the amount of any projected

12  deficiency in the annual debt service reserve for any series

13  of outstanding bonds as of the end of the state fiscal year

14  and the amount necessary to maintain such annual debt service

15  reserve. Upon receipt of such certification, the Chief

16  Financial Officer Comptroller shall transfer to the annual

17  debt service reserve, from the first available taxes

18  distributed to the State Housing Trust Fund pursuant to s.

19  201.15(9)(a) and (10)(a) during the ensuing state fiscal year,

20  the amount certified as necessary to maintain the annual debt

21  service reserve.

22         (b)  If the claims payment obligations under affordable

23  housing guarantees from amounts on deposit in the guarantee

24  fund would cause the claims paying rating assigned to the

25  guarantee fund to be less than the third-highest rating

26  classification of any nationally recognized rating service,

27  which classifications being consistent with s. 215.84(3) and

28  rules adopted thereto by the State Board of Administration,

29  the corporation shall certify to the Chief Financial Officer

30  Comptroller the amount of such claims payment obligations.

31  Upon receipt of such certification, the Chief Financial

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 1  Officer Comptroller shall transfer to the guarantee fund, from

 2  the first available taxes distributed to the State Housing

 3  Trust Fund pursuant to s. 201.15(9)(a) and (10)(a) during the

 4  ensuing state fiscal year, the amount certified as necessary

 5  to meet such obligations, such transfer to be subordinate to

 6  any transfer referenced in paragraph (a) and not to exceed 50

 7  percent of the amounts distributed to the State Housing Trust

 8  Fund pursuant to s. 201.15(9)(a) and (10)(a) during the

 9  preceding state fiscal year.

10         Section 487.  Section 430.42, Florida Statutes, is

11  amended to read:

12         430.42  Department of Elderly Affairs Tobacco

13  Settlement Trust Fund.--

14         (1)  The Department of Elderly Affairs Tobacco

15  Settlement Trust Fund is created within that department. Funds

16  to be credited to the trust fund shall consist of funds

17  disbursed, by nonoperating transfer, from the Department of

18  Financial Services Banking and Finance Tobacco Settlement

19  Clearing Trust Fund in amounts equal to the annual

20  appropriations made from this trust fund.

21         (2)  Notwithstanding the provisions of s. 216.301 and

22  pursuant to s. 216.351, any unencumbered balance in the trust

23  fund at the end of any fiscal year and any encumbered balance

24  remaining undisbursed on December 31 of the same calendar year

25  shall revert to the Department of Financial Services Banking

26  and Finance Tobacco Settlement Clearing Trust Fund.

27         Section 488.  Subsection (6) of section 430.703,

28  Florida Statutes, is amended to read:

29         430.703  Definitions.--As used in this act, the term:

30         (6)  "Managed care organization" means an entity that

31  meets the requirements of the Department of Financial Services

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 1  Insurance for operation as a health maintenance organization

 2  and meets the qualifications for participation as a managed

 3  care organization established by the agency and the

 4  department.

 5         Section 489.  Section 440.103, Florida Statutes, is

 6  amended to read:

 7         440.103  Building permits; identification of minimum

 8  premium policy.--Except as otherwise provided in this chapter,

 9  every employer shall, as a condition to receiving a building

10  permit, show proof that it has secured compensation for its

11  employees under this chapter as provided in ss. 440.10 and

12  440.38. Such proof of compensation must be evidenced by a

13  certificate of coverage issued by the carrier, a valid

14  exemption certificate approved by the division, or a copy of

15  the employer's authority to self-insure and shall be presented

16  each time the employer applies for a building permit. As

17  provided in s. 627.413(5), each certificate of coverage must

18  show, on its face, whether or not coverage is secured under

19  the minimum premium provisions of rules adopted by rating

20  organizations licensed by the Department of Financial Services

21  Insurance. The words "minimum premium policy" or equivalent

22  language shall be typed, printed, stamped, or legibly

23  handwritten.

24         Section 490.  Paragraph (a) of subsection (3) of

25  section 440.105, Florida Statutes, is amended to read:

26         440.105  Prohibited activities; reports; penalties;

27  limitations.--

28         (3)  Whoever violates any provision of this subsection

29  commits a misdemeanor of the first degree, punishable as

30  provided in s. 775.082 or s. 775.083.

31  

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 1         (a)  It shall be unlawful for any employer to knowingly

 2  fail to update applications for coverage as required by s.

 3  440.381(1) and Department of Financial Services Insurance

 4  rules, or to post notice of coverage pursuant to s. 440.40.

 5         Section 491.  Subsection (1) of section 440.1051,

 6  Florida Statutes, is amended to read:

 7         440.1051  Fraud reports; civil immunity; criminal

 8  penalties.--

 9         (1)  The Bureau of Workers' Compensation Insurance

10  Fraud of the Division of Insurance Fraud of the Department of

11  Financial Services Insurance shall establish a toll-free

12  telephone number to receive reports of workers' compensation

13  fraud committed by an employee, employer, insurance provider,

14  physician, attorney, or other person.

15         Section 492.  Subsection (3) of section 440.106,

16  Florida Statutes, is amended to read:

17         440.106  Civil remedies; administrative penalties.--

18         (3)  Whenever any group or individual self-insurer,

19  carrier, rating bureau, or agent or other representative of

20  any carrier or rating bureau is determined to have violated s.

21  440.105, the Department of Financial Services Insurance may

22  revoke or suspend the authority or certification of any group

23  or individual self-insurer, carrier, agent, or broker.

24         Section 493.  Paragraph (b) of subsection (11) and

25  paragraph (a) of subsection (12) of section 440.13, Florida

26  Statutes, are amended to read:

27         440.13  Medical services and supplies; penalty for

28  violations; limitations.--

29         (11)  AUDITS BY DIVISION; JURISDICTION.--

30         (b)  The division shall monitor and audit carriers to

31  determine if medical bills are paid in accordance with this

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 1  section and division rules. Any employer, if self-insured, or

 2  carrier found by the division not to be within 90 percent

 3  compliance as to the payment of medical bills after July 1,

 4  1994, must be assessed a fine not to exceed 1 percent of the

 5  prior year's assessment levied against such entity under s.

 6  440.51 for every quarter in which the entity fails to attain

 7  90-percent compliance. The division shall fine an employer or

 8  carrier, pursuant to rules adopted by the division, for each

 9  late payment of compensation that is below the minimum

10  90-percent performance standard. Any carrier that is found to

11  be not in compliance in subsequent consecutive quarters must

12  implement a medical-bill review program approved by the

13  division, and the carrier is subject to disciplinary action by

14  the Department of Financial Services Insurance.

15         (12)  CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM

16  REIMBURSEMENT ALLOWANCES.--

17         (a)  A three-member panel is created, consisting of the

18  Chief Financial Officer Insurance Commissioner, or his or her

19  the Insurance Commissioner's designee, and two members to be

20  appointed by the Governor, subject to confirmation by the

21  Senate, one member who, on account of present or previous

22  vocation, employment, or affiliation, shall be classified as a

23  representative of employers, the other member who, on account

24  of previous vocation, employment, or affiliation, shall be

25  classified as a representative of employees. The panel shall

26  determine statewide schedules of maximum reimbursement

27  allowances for medically necessary treatment, care, and

28  attendance provided by physicians, hospitals, ambulatory

29  surgical centers, work-hardening programs, pain programs, and

30  durable medical equipment. The maximum reimbursement

31  allowances for inpatient hospital care shall be based on a

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 1  schedule of per diem rates, to be approved by the three-member

 2  panel no later than March 1, 1994, to be used in conjunction

 3  with a precertification manual as determined by the division.

 4  All compensable charges for hospital outpatient care shall be

 5  reimbursed at 75 percent of usual and customary charges. Until

 6  the three-member panel approves a schedule of per diem rates

 7  for inpatient hospital care and it becomes effective, all

 8  compensable charges for hospital inpatient care must be

 9  reimbursed at 75 percent of their usual and customary charges.

10  Annually, the three-member panel shall adopt schedules of

11  maximum reimbursement allowances for physicians, hospital

12  inpatient care, hospital outpatient care, ambulatory surgical

13  centers, work-hardening programs, and pain programs. However,

14  the maximum percentage of increase in the individual

15  reimbursement allowance may not exceed the percentage of

16  increase in the Consumer Price Index for the previous year. An

17  individual physician, hospital, ambulatory surgical center,

18  pain program, or work-hardening program shall be reimbursed

19  either the usual and customary charge for treatment, care, and

20  attendance, the agreed-upon contract price, or the maximum

21  reimbursement allowance in the appropriate schedule, whichever

22  is less.

23         Section 494.  Subsections (23) and (24) of section

24  440.134, Florida Statutes, are amended to read:

25         440.134  Workers' compensation managed care

26  arrangement.--

27         (23)  The agency shall immediately notify the

28  Department of Financial Services Insurance and the Department

29  of Labor and Employment Security whenever it issues an

30  administrative complaint or an order or otherwise initiates

31  

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 1  legal proceedings resulting in, or which may result in,

 2  suspension or revocation of an insurer's authorization.

 3         (24)  Nothing in this part shall be deemed to authorize

 4  any entity to transact any insurance business, assume risk, or

 5  otherwise engage in any other type of insurance unless it is

 6  authorized as an insurer or a health maintenance organization

 7  under a certificate of authority issued by the Department of

 8  Financial Services Insurance under the provisions of the

 9  Florida Insurance Code.

10         Section 495.  Subsections (1), (2), (3), and (5) of

11  section 440.135, Florida Statutes, are amended to read:

12         440.135  Pilot programs for medical and remedial care

13  in workers' compensation.--

14         (1)  It is the intent of the Legislature to determine

15  whether the costs of the workers' compensation system can be

16  effectively contained by monitoring more closely the medical,

17  hospital, and remedial care required by s. 440.13, while

18  providing injured workers with more prompt and effective care

19  and earlier restoration of earning capacity without diminution

20  of the quality of such care. It is the further intent of the

21  Legislature to determine whether the total cost to an employer

22  that provides a policy or plan of health insurance and a

23  separate policy or plan of workers' compensation and

24  employer's liability insurance for its employees can be

25  reduced by combining both coverages under a policy or plan

26  that provides 24-hour health insurance coverage as set forth

27  in this section. Therefore, the Legislature authorizes the

28  establishment of one or more pilot programs to be administered

29  by the Department of Financial Services Insurance after

30  consulting with the division. Each pilot program shall

31  terminate 2 years after the first date of operation of the

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 1  program, unless extended by act of the Legislature. In order

 2  to evaluate the feasibility of implementing these pilot

 3  programs, the Department of Financial Services Insurance shall

 4  consult with the division regarding:

 5         (a)  Establishing alternate delivery systems using a

 6  health maintenance organization model, which includes

 7  physician fees, competitive bidding, or capitation models.

 8         (b)  Controlling and enhancing the selection of

 9  providers of medical, hospital, and remedial care and using

10  the peer review and utilization review procedures in s.

11  440.13(1) to control the utilization of care by physicians

12  providing treatment pursuant to s. 440.13(2)(a).

13         (c)  Establishing, by agreement, appropriate fees for

14  medical, hospital, and remedial care pursuant to this chapter.

15         (d)  Promoting effective and timely utilization of

16  medical, hospital, and remedial care by injured workers.

17         (e)  Coordinating the duration of payment of disability

18  benefits with determination made by qualified participating

19  providers of medical, hospital, or remedial care.

20         (f)  Initiating one or more pilot programs under which

21  participating employers would provide a 24-hour health

22  insurance policy to their employees under a single insurance

23  policy or self-insured plan. The policy or plan must provide a

24  level of health insurance benefits which meets criteria

25  established by the Department of Financial Services Insurance

26  but which provides medical benefits for at least occupational

27  injuries and illnesses comparable to those required by this

28  chapter and which may use deductibles and coinsurance

29  provisions that require the employee to pay a portion of the

30  actual medical care received by the employee, notwithstanding

31  any other provisions of this chapter. The policy or plan may

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 1  also provide indemnity benefits as specified in s.

 2  440.38(1)(e). The employer shall pay the entire premium for

 3  the 24-hour health insurance policy or self-insured plan other

 4  than the portion of the premium which relates to dependent

 5  coverage.

 6         (g)  Other methods of monitoring reduced costs within

 7  the workers' compensation system while maintaining quality

 8  care.

 9         (2)  The Department of Financial Services Insurance,

10  after consulting with the division, may, without a bidding

11  process, negotiate and enter into such contracts as may be

12  necessary or appropriate in its judgment to implement the

13  pilot program.

14         (3)  The Department of Financial Services Insurance may

15  also accept grants and moneys from any source and may expend

16  such grants and moneys for the purposes of the program.

17         (5)  The Department of Insurance shall make an interim

18  report on or before December 1, 1991, and a final report on or

19  before the termination date specified in subsection (1) to the

20  Speaker of the House of Representatives, the President of the

21  Senate, the Minority Leader of the Senate, the Minority Leader

22  of the House of Representatives, and the Governor, on the

23  activities, findings, and recommendations of the Department of

24  Insurance relative to the pilot programs. The Department of

25  Financial Services Insurance shall monitor, evaluate, and

26  report the following information regarding physicians,

27  hospitals, and other remedial care providers:

28         (a)  Cost savings.

29         (b)  Effectiveness.

30         (c)  Effect on earning capacity and indemnity payments.

31         (d)  Complaints from injured workers and providers.

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 1         (e)  Concurrent review of quality of care.

 2         (f)  Other pertinent matters.

 3  

 4  The information from the pilot programs shall be reported in a

 5  format to permit comparisons to other similar data.

 6         Section 496.  Subsection (10), paragraphs (a) and (e)

 7  of subsection (15), and subsection (16) of section 440.20,

 8  Florida Statutes, are amended to read:

 9         440.20  Time for payment of compensation; penalties for

10  late payment.--

11         (10)  Whenever the division deems it advisable, it may

12  require any employer to make a deposit with the Chief

13  Financial Officer Treasurer to secure the prompt and

14  convenient payments of such compensation; and payments

15  therefrom upon any awards shall be made upon order of the

16  division or judge of compensation claims.

17         (15)(a)  The division shall examine on an ongoing basis

18  claims files in order to identify questionable claims-handling

19  techniques, questionable patterns or practices of claims, or a

20  pattern of repeated unreasonably controverted claims by

21  employers, carriers, self-insurers, health care providers,

22  health care facilities, training and education providers, or

23  any others providing services to employees pursuant to this

24  chapter and may certify its findings to the Department of

25  Financial Services Insurance. Such questionable techniques,

26  patterns, or repeated unreasonably controverted claims as

27  constitute a general business practice of a carrier in the

28  judgment of the division shall be certified in its findings by

29  the division to the Department of Financial Services Insurance

30  or such other appropriate licensing agency. Such certification

31  by the division is exempt from the provisions of chapter 120.

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 1  Upon receipt of any such certification, the Department of

 2  Financial Services Insurance shall take appropriate action so

 3  as to bring such general business practices to a halt pursuant

 4  to s. 440.38(3)(a). The division may initiate investigations

 5  of questionable techniques, patterns, practices, or repeated

 6  unreasonably controverted claims. The division may by rule

 7  establish forms and procedures for corrective action plans and

 8  for auditing carriers.

 9         (e)  The division shall publish annually a report which

10  indicates the promptness of first payment of compensation

11  records of each carrier or self-insurer so as to focus

12  attention on those carriers or self-insurers with poor payment

13  records for the preceding year. A copy of such report shall be

14  certified to the Department of Financial Services Insurance

15  which shall take appropriate steps so as to cause such poor

16  carrier payment practices to halt pursuant to s. 440.38(3)(a).

17  In addition, the division shall take appropriate action so as

18  to halt such poor payment practices of self-insurers. "Poor

19  payment practice" means a practice of late payment sufficient

20  to constitute a general business practice.

21         (16)  No penalty assessed under this section may be

22  recouped by any carrier or self-insurer in the rate base, the

23  premium, or any rate filing. In the case of carriers, the

24  Department of Financial Services Insurance shall enforce this

25  subsection; and in the case of self-insurers, the division

26  shall enforce this subsection.

27         Section 497.  Subsection (2) of section 440.24, Florida

28  Statutes, is amended to read:

29         440.24  Enforcement of compensation orders;

30  penalties.--

31  

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 1         (2)  In any case where the employer is insured and the

 2  carrier fails to comply with any compensation order of a judge

 3  of compensation claims or court within 10 days after such

 4  order becomes final, the division shall notify the Department

 5  of Financial Services Insurance of such failure, and the

 6  Department of Financial Services Insurance shall thereupon

 7  suspend the license of such carrier to do an insurance

 8  business in this state, until such carrier has complied with

 9  such order.

10         Section 498.  Subsection (1), paragraph (a) of

11  subsection (3), and paragraph (a) of subsection (4) of section

12  440.38, Florida Statutes, are amended to read:

13         440.38  Security for compensation; insurance carriers

14  and self-insurers.--

15         (1)  Every employer shall secure the payment of

16  compensation under this chapter:

17         (a)  By insuring and keeping insured the payment of

18  such compensation with any stock company or mutual company or

19  association or exchange, authorized to do business in the

20  state;

21         (b)  By furnishing satisfactory proof to the division

22  of its financial ability to pay such compensation individually

23  and on behalf of its subsidiary and affiliated companies with

24  employees in this state and receiving an authorization from

25  the division to pay such compensation directly in accordance

26  with the following provisions:

27         1.  The division may require an employer to deposit

28  with the division a qualifying security deposit. The division

29  shall determine the type and amount of the qualifying security

30  deposit and shall prescribe conditions for the qualifying

31  security deposit, which shall include authorization for the

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 1  division to call the qualifying security deposit in the case

 2  of default. In addition, the division shall require, as a

 3  condition to authorization to self-insure, proof that the

 4  employer has provided for competent personnel with whom to

 5  deliver benefits and to provide a safe working environment.

 6  Further, the division shall require such employer to carry

 7  reinsurance at levels that will ensure the actuarial soundness

 8  of such employer in accordance with rules promulgated by the

 9  division.  The division may by rule require that, in the event

10  of an individual self-insurer's insolvency, such qualifying

11  security deposits and reinsurance policies are payable to the

12  Florida Self-Insurers Guaranty Association, Incorporated,

13  created pursuant to s. 440.385.  Any employer securing

14  compensation in accordance with the provisions of this

15  paragraph shall be known as a self-insurer and shall be

16  classed as a carrier of her or his own insurance.

17         2.  If the employer fails to maintain the foregoing

18  requirements, the division shall revoke the employer's

19  authority to self-insure, unless the employer provides to the

20  division the certified opinion of an independent actuary who

21  is a member of the American Society of Actuaries as to the

22  actuarial present value of the employer's determined and

23  estimated future compensation payments based on cash reserves,

24  using a 4-percent discount rate, and a qualifying security

25  deposit equal to 1.5 times the value so certified. The

26  employer shall thereafter annually provide such a certified

27  opinion until such time as the employer meets the requirements

28  of subparagraph 1.  The qualifying security deposit shall be

29  adjusted at the time of each such annual report.  Upon the

30  failure of the employer to timely provide such opinion or to

31  timely provide a security deposit in an amount equal to 1.5

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 1  times the value certified in the latest opinion, the division

 2  shall then revoke such employer's authorization to

 3  self-insure, and such failure shall be deemed to constitute an

 4  immediate serious danger to the public health, safety, or

 5  welfare sufficient to justify the summary suspension of the

 6  employer's authorization to self-insure pursuant to s. 120.68.

 7         3.  Upon the suspension or revocation of the employer's

 8  authorization to self-insure, the employer shall provide to

 9  the division and to the Florida Self-Insurers Guaranty

10  Association, Incorporated, created pursuant to s. 440.385 the

11  certified opinion of an independent actuary who is a member of

12  the American Society of Actuaries of the actuarial present

13  value of the determined and estimated future compensation

14  payments of the employer for claims incurred while the member

15  exercised the privilege of self-insurance, using a discount

16  rate of 4 percent. The employer shall provide such an opinion

17  at 6-month intervals thereafter until such time as the latest

18  opinion shows no remaining value of claims.  With each such

19  opinion, the employer shall deposit with the division a

20  qualifying security deposit in an amount equal to the value

21  certified by the actuary.  The association has a cause of

22  action against an employer, and against any successor of the

23  employer, who fails to timely provide such opinion or who

24  fails to timely maintain the required security deposit with

25  the division. The association shall recover a judgment in the

26  amount of the actuarial present value of the determined and

27  estimated future compensation payments of the employer for

28  claims incurred while the employer exercised the privilege of

29  self-insurance, together with attorney's fees.  For purposes

30  of this section, the successor of an employer means any

31  person, business entity, or group of persons or business

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 1  entities, which holds or acquires legal or beneficial title to

 2  the majority of the assets or the majority of the shares of

 3  the employer.

 4         4.  A qualifying security deposit shall consist, at the

 5  option of the employer, of:

 6         a.  Surety bonds, in a form and containing such terms

 7  as prescribed by the division, issued by a corporation surety

 8  authorized to transact surety business by the Department of

 9  Financial Services Insurance, and whose policyholders' and

10  financial ratings, as reported in A.M. Best's Insurance

11  Reports, Property-Liability, are not less than "A" and "V",

12  respectively.

13         b.  Irrevocable letters of credit in favor of the

14  division issued by financial institutions located within this

15  state, the deposits of which are insured through the Federal

16  Deposit Insurance Corporation.

17         5.  The qualifying security deposit shall be held by

18  the division exclusively for the benefit of workers'

19  compensation claimants. The security shall not be subject to

20  assignment, execution, attachment, or any legal process

21  whatsoever, except as necessary to guarantee the payment of

22  compensation under this chapter.  No surety bond may be

23  terminated, and no letter of credit may be allowed to expire,

24  without 90 days' prior notice to the division and deposit by

25  the self-insuring employer of some other qualifying security

26  deposit of equal value within 10 business days after such

27  notice. Failure to provide such notice or failure to timely

28  provide qualifying replacement security after such notice

29  shall constitute grounds for the division to call or sue upon

30  the surety bond or to exercise its rights under a letter of

31  credit. Current self-insured employers must comply with this

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 1  section on or before December 31, 2001, or upon the maturity

 2  of existing security deposits, whichever occurs later. The

 3  division may specify by rule the amount of the qualifying

 4  security deposit required prior to authorizing an employer to

 5  self-insure and the amount of net worth required for an

 6  employer to qualify for authorization to self-insure;

 7         (c)  By entering into a contract with a public utility

 8  under an approved utility-provided self-insurance program as

 9  set forth in s. 624.46225 in effect as of July 1, 1983.  The

10  division shall adopt rules to implement this paragraph;

11         (d)  By entering into an interlocal agreement with

12  other local governmental entities to create a local government

13  pool pursuant to s. 624.4622;

14         (e)  In accordance with s. 440.135, an employer, other

15  than a local government unit, may elect coverage under the

16  Workers' Compensation Law and retain the benefit of the

17  exclusiveness of liability provided in s. 440.11 by obtaining

18  a 24-hour health insurance policy from an authorized property

19  and casualty insurance carrier or an authorized life and

20  health insurance carrier, or by participating in a fully or

21  partially self-insured 24-hour health plan that is established

22  or maintained by or for two or more employers, so long as the

23  law of this state is not preempted by the Employee Retirement

24  Income Security Act of 1974, Pub. L. No. 93-406, or any

25  amendment to that law, which policy or plan must provide, for

26  at least occupational injuries and illnesses, medical benefits

27  that are comparable to those required by this chapter. A local

28  government unit, as a single employer, in accordance with s.

29  440.135, may participate in the 24-hour health insurance

30  coverage plan referenced in this paragraph. Disputes and

31  remedies arising under policies issued under this section are

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 1  governed by the terms and conditions of the policies and under

 2  the applicable provisions of the Florida Insurance Code and

 3  rules adopted under the insurance code and other applicable

 4  laws of this state. The 24-hour health insurance policy may

 5  provide for health care by a health maintenance organization

 6  or a preferred provider organization. The premium for such

 7  24-hour health insurance policy shall be paid entirely by the

 8  employer. The 24-hour health insurance policy may use

 9  deductibles and coinsurance provisions that require the

10  employee to pay a portion of the actual medical care received

11  by the employee. If an employer obtains a 24-hour health

12  insurance policy or self-insured plan to secure payment of

13  compensation as to medical benefits, the employer must also

14  obtain an insurance policy or policies that provide indemnity

15  benefits as follows:

16         1.  If indemnity benefits are provided only for

17  occupational-related disability, such benefits must be

18  comparable to those required by this chapter.

19         2.  If indemnity benefits are provided for both

20  occupational-related and nonoccupational-related disability,

21  such benefits must be comparable to those required by this

22  chapter, except that they must be based on 60 percent of the

23  average weekly wages.

24         3.  The employer shall provide for each of its

25  employees life insurance with a death benefit of $100,000.

26         4.  Policies providing coverage under this subsection

27  must use prescribed and acceptable underwriting standards,

28  forms, and policies approved by the Department of Financial

29  Services Insurance. If any insurance policy that provides

30  coverage under this section is canceled, terminated, or

31  nonrenewed for any reason, the cancellation, termination, or

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 1  nonrenewal is ineffective until the self-insured employer or

 2  insurance carrier or carriers notify the division and the

 3  Department of Financial Services Insurance of the

 4  cancellation, termination, or nonrenewal, and until the

 5  division has actually received the notification. The division

 6  must be notified of replacement coverage under a workers'

 7  compensation and employer's liability insurance policy or plan

 8  by the employer prior to the effective date of the

 9  cancellation, termination, or nonrenewal; or

10         (f)  By entering into a contract with an individual

11  self-insurer under an approved individual

12  self-insurer-provided self-insurance program as set forth in

13  s. 624.46225.  The division may adopt rules to administer this

14  subsection.

15         (3)(a)  The license of any stock company or mutual

16  company or association or exchange authorized to do insurance

17  business in the state shall for good cause, upon

18  recommendation of the division, be suspended or revoked by the

19  Department of Financial Services Insurance.  No suspension or

20  revocation shall affect the liability of any carrier already

21  incurred.

22         (4)(a)  A carrier of insurance, including the parties

23  to any mutual, reciprocal, or other association, may not write

24  any compensation insurance under this chapter without a permit

25  from the Department of Financial Services Insurance. Such

26  permit shall be given, upon application therefor, to any

27  insurance or mutual or reciprocal insurance association upon

28  the department's being satisfied of the solvency of such

29  corporation or association and its ability to perform all its

30  undertakings. The Department of Financial Services Insurance

31  

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 1  may revoke any permit so issued for violation of any provision

 2  of this chapter.

 3         Section 499.  Subsections (1) and (3) of section

 4  440.381, Florida Statutes, are amended to read:

 5         440.381  Application for coverage; reporting payroll;

 6  payroll audit procedures; penalties.--

 7         (1)  Applications by an employer to a carrier for

 8  coverage required by s. 440.38 must be made on a form

 9  prescribed by the Department of Financial Services Insurance.

10  The Department of Financial Services Insurance shall adopt

11  rules for applications for coverage required by s. 440.38. The

12  rules must provide that an application include information on

13  the employer, the type of business, past and prospective

14  payroll, estimated revenue, previous workers' compensation

15  experience, employee classification, employee names, and any

16  other information necessary to enable a carrier to accurately

17  underwrite the applicant. The rules must include a provision

18  that a carrier or self-insurance fund may require that an

19  employer update an application monthly to reflect any change

20  in the required application information.

21         (3)  The Department of Financial Services Insurance and

22  the Department of Labor and Employment Security shall

23  establish by rule minimum requirements for audits of payroll

24  and classifications in order to ensure that the appropriate

25  premium is charged for workers' compensation coverage. The

26  rules shall ensure that audits performed by both carriers and

27  employers are adequate to provide that all sources of payments

28  to employees, subcontractors, and independent contractors have

29  been reviewed and that the accuracy of classification of

30  employees has been verified. The rules shall provide that

31  employers in all classes other than the construction class be

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 1  audited not less frequently than biennially and may provide

 2  for more frequent audits of employers in specified

 3  classifications based on factors such as amount of premium,

 4  type of business, loss ratios, or other relevant factors. In

 5  no event shall employers in the construction class, generating

 6  more than the amount of premium required to be experience

 7  rated, be audited less than annually. The annual audits

 8  required for construction classes shall consist of physical

 9  onsite audits. Payroll verification audit rules must include,

10  but need not be limited to, the use of state and federal

11  reports of employee income, payroll and other accounting

12  records, certificates of insurance maintained by

13  subcontractors, and duties of employees.

14         Section 500.  Subsection (13) of section 440.385,

15  Florida Statutes, is amended to read:

16         440.385  Florida Self-Insurers Guaranty Association,

17  Incorporated.--

18         (13)  CORPORATE INCOME TAX CREDIT.--Any sums acquired

19  by a member by refund, dividend, or otherwise from the

20  association shall be payable within 30 days of receipt to the

21  Department of Revenue for deposit with the Chief Financial

22  Officer Treasurer to the credit of the General Revenue Fund.

23  All provisions of chapter 220 relating to penalties and

24  interest on delinquent corporate income tax payments apply to

25  payments due under this subsection.

26         Section 501.  Subsection (6) of section 440.44, Florida

27  Statutes, is amended to read:

28         440.44  Workers' compensation; staff organization.--

29         (6)  SEAL.--The division and the judges of compensation

30  claims shall have a seal upon which shall be inscribed the

31  words "State of Florida Department of Financial

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 1  Services--Seal" Insurance--Seal" and "Division of

 2  Administrative Hearings--Seal," respectively.

 3         Section 502.  Paragraph (d) of subsection (1) of

 4  section 440.4416, Florida Statutes, is amended to read:

 5         440.4416  Workers' Compensation Oversight Board.--

 6         (1)  There is created within the Department of Labor

 7  and Employment Security the Workers' Compensation Oversight

 8  Board. The board shall be composed of the following members,

 9  each of whom has knowledge of, or experience with, the

10  workers' compensation system:

11         (d)  Additionally, the Chief Financial Officer

12  Insurance Commissioner and the secretary of the Department of

13  Labor and Employment Security shall be nonvoting ex officio

14  members.

15         Section 503.  Paragraphs (a), (b), and (d) of

16  subsection (9) of section 440.49, Florida Statutes, are

17  amended to read:

18         440.49  Limitation of liability for subsequent injury

19  through Special Disability Trust Fund.--

20         (9)  SPECIAL DISABILITY TRUST FUND.--

21         (a)  There is established in the State Treasury a

22  special fund to be known as the "Special Disability Trust

23  Fund," which shall be available only for the purposes stated

24  in this section; and the assets thereof may not at any time be

25  appropriated or diverted to any other use or purpose. The

26  Chief Financial Officer Treasurer shall be the custodian of

27  such fund, and all moneys and securities in such fund shall be

28  held in trust by such Chief Financial Officer Treasurer and

29  shall not be the money or property of the state. The Chief

30  Financial Officer Treasurer is authorized to disburse moneys

31  from such fund only when approved by the division or

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 1  corporation and upon the order of the Comptroller. The Chief

 2  Financial Officer Treasurer shall deposit any moneys paid into

 3  such fund into such depository banks as the division may

 4  designate and is authorized to invest any portion of the fund

 5  which, in the opinion of the division, is not needed for

 6  current requirements, in the same manner and subject to all

 7  the provisions of the law with respect to the deposits of

 8  state funds by such Chief Financial Officer Treasurer. All

 9  interest earned by such portion of the fund as may be invested

10  by the Chief Financial Officer Treasurer shall be collected by

11  her or him and placed to the credit of such fund.

12         (b)1.  The Special Disability Trust Fund shall be

13  maintained by annual assessments upon the insurance companies

14  writing compensation insurance in the state, the commercial

15  self-insurers under ss. 624.462 and 624.4621, the assessable

16  mutuals under s. 628.601, and the self-insurers under this

17  chapter, which assessments shall become due and be paid

18  quarterly at the same time and in addition to the assessments

19  provided in s. 440.51. The division shall estimate annually in

20  advance the amount necessary for the administration of this

21  subsection and the maintenance of this fund and shall make

22  such assessment in the manner hereinafter provided.

23         2.  The annual assessment shall be calculated to

24  produce during the ensuing fiscal year an amount which, when

25  combined with that part of the balance in the fund on June 30

26  of the current fiscal year which is in excess of $100,000, is

27  equal to the average of:

28         a.  The sum of disbursements from the fund during the

29  immediate past 3 calendar years, and

30         b.  Two times the disbursements of the most recent

31  calendar year.

                                 502

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 1  

 2  Such amount shall be prorated among the insurance companies

 3  writing compensation insurance in the state and the

 4  self-insurers. Provided however, for those carriers that have

 5  excluded ceded reinsurance premiums from their assessments on

 6  or before January 1, 2000, no assessments on ceded reinsurance

 7  premiums shall be paid by those carriers until such time as

 8  the division advises each of those carriers of the impact that

 9  the inclusion of ceded reinsurance premiums has on their

10  assessment. The division may not recover any past

11  underpayments of assessments levied against any carrier that

12  on or before January 1, 2000, excluded ceded reinsurance

13  premiums from their assessment prior to the point that the

14  division advises of the appropriate assessment that should

15  have been paid.

16         3.  The net premiums written by the companies for

17  workers' compensation in this state and the net premium

18  written applicable to the self-insurers in this state are the

19  basis for computing the amount to be assessed as a percentage

20  of net premiums. Such payments shall be made by each carrier

21  and self-insurer to the division for the Special Disability

22  Trust Fund in accordance with such regulations as the division

23  prescribes.

24         4.  The Chief Financial Officer Treasurer is authorized

25  to receive and credit to such Special Disability Trust Fund

26  any sum or sums that may at any time be contributed to the

27  state by the United States under any Act of Congress, or

28  otherwise, to which the state may be or become entitled by

29  reason of any payments made out of such fund.

30         (d)  The Special Disability Trust Fund shall be

31  supplemented by a $250 notification fee on each notice of

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 1  claim filed or refiled after July 1, 1997, and a $500 fee on

 2  each proof of claim filed in accordance with subsection (7).

 3  Revenues from the fee shall be deposited into the Special

 4  Disability Trust Fund and are exempt from the deduction

 5  required by s. 215.20. The fees provided in this paragraph

 6  shall not be imposed upon any insurer which is in receivership

 7  with the Department of Financial Services Insurance.

 8         Section 504.  Paragraph (a) of subsection (1) and

 9  subsections (2) and (3) of section 440.50, Florida Statutes,

10  are amended to read:

11         440.50  Workers' Compensation Administration Trust

12  Fund.--

13         (1)(a)  There is established in the State Treasury a

14  special fund to be known as the "Workers' Compensation

15  Administration Trust Fund" for the purpose of providing for

16  the payment of all expenses in respect to the administration

17  of this chapter, including the vocational rehabilitation of

18  injured employees as provided in s. 440.49 and the payments

19  due under s. 440.15(1)(f), the funding of the fixed

20  administrative expenses of the plan, and the funding of the

21  Bureau of Workers' Compensation Fraud within the Department of

22  Financial Services Insurance.  Such fund shall be administered

23  by the division.

24         (2)  The Chief Financial Officer Treasurer is

25  authorized to disburse moneys from such fund only when

26  approved by the division and upon the order of the

27  Comptroller.

28         (3)  The Chief Financial Officer Treasurer shall

29  deposit any moneys paid into such fund into such depository

30  banks as the division may designate and is authorized to

31  invest any portion of the fund which, in the opinion of the

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 1  division, is not needed for current requirements, in the same

 2  manner and subject to all the provisions of the law with

 3  respect to the deposit of state funds by such Chief Financial

 4  Officer Treasurer.  All interest earned by such portion of the

 5  fund as may be invested by the Chief Financial Officer

 6  Treasurer shall be collected by him or her and placed to the

 7  credit of such fund.

 8         Section 505.  Paragraph (a) of subsection (1),

 9  subsection (3), paragraph (b) of subsection (6), and

10  subsections (11) and (12) of section 440.51, Florida Statutes,

11  are amended to read:

12         440.51  Expenses of administration.--

13         (1)  The division shall estimate annually in advance

14  the amounts necessary for the administration of this chapter,

15  in the following manner.

16         (a)  The division shall, by July 1 of each year, notify

17  carriers and self-insurers of the assessment rate, which shall

18  be based on the anticipated expenses of the administration of

19  this chapter for the next calendar year. Such assessment rate

20  shall take effect January 1 of the next calendar year and

21  shall be included in workers' compensation rate filings

22  approved by the Department of Financial Services Insurance

23  which become effective on or after January 1 of the next

24  calendar year. Assessments shall become due and be paid

25  quarterly.

26         (3)  If any carrier fails to pay the amounts assessed

27  against him or her under the provisions of this section within

28  60 days from the time such notice is served upon him or her,

29  the Department of Financial Services Insurance upon being

30  advised by the division may suspend or revoke the

31  authorization to insure compensation in accordance with the

                                 505

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 1  procedure in s. 440.38(3)(a). The division may permit a

 2  carrier to remit any underpayment of assessments for

 3  assessments levied after January 1, 2001.

 4         (6)

 5         (b)  The Department of Financial Services Insurance may

 6  require from each self-insurer, at such time and in accordance

 7  with such regulations as the Department of Financial Services

 8  Insurance prescribes, reports in respect to wages paid, the

 9  amount of premiums such self-insurer would have to pay if

10  insured, and all payments of compensation made by such

11  self-insurer during each prior period, and may determine the

12  amounts paid by each self-insurer and the amounts paid by all

13  self-insurers during such period. For the purposes of this

14  section, the payroll records of each self-insurer shall be

15  open to annual inspection and audit by the Department of

16  Financial Services Insurance or its authorized representative,

17  during regular business hours; and if any audit of such

18  records of a self-insurer discloses a deficiency in the

19  amounts reported to the Department of Financial Services

20  Insurance or in the amounts paid to the Department of

21  Financial Services Insurance by a self-insurer pursuant to

22  this section, the Department of Financial Services Insurance

23  may assess the cost of such audit against the self-insurer.

24         (11)  The division shall furnish to any employer or

25  carrier, upon request, its individual experience.  The

26  division shall furnish to the Department of Financial Services

27  Insurance, upon request, the Florida experience as developed

28  under accident year or calendar year.

29         (12)  In addition to any other penalties provided by

30  this law, the failure to submit any report or other

31  information required by this law shall be just cause to

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 1  suspend the right of a self-insurer to operate as such, or,

 2  upon certification by the division to the Department of

 3  Financial Services Insurance that a carrier has failed or

 4  refused to furnish such reports, shall be just cause for the

 5  Department of Financial Services Insurance to suspend or

 6  revoke the license of such carrier.

 7         Section 506.  Section 440.515, Florida Statutes, is

 8  amended to read:

 9         440.515  Reports from self-insurers;

10  confidentiality.--The Department of Financial Services

11  Insurance shall maintain the reports filed in accordance with

12  s. 440.51(6)(b) as confidential and exempt from the provisions

13  of s. 119.07(1), and such reports shall be released only for

14  bona fide research or educational purposes or after receipt of

15  consent from the employer.

16         Section 507.  Subsections (3) and (4) of section

17  440.52, Florida Statutes, are amended to read:

18         440.52  Registration of insurance carriers; notice of

19  cancellation or expiration of policy; suspension or revocation

20  of authority.--

21         (3)  If the division finds, after due notice and a

22  hearing at which the insurance carrier is entitled to be heard

23  in person or by counsel and present evidence, that the

24  insurance carrier has repeatedly failed to comply with its

25  obligations under this chapter, the division may request the

26  Department of Financial Services Insurance to suspend or

27  revoke the authorization of such insurance carrier to write

28  workers' compensation insurance under this chapter.  Such

29  suspension or revocation shall not affect the liability of any

30  such insurance carrier under policies in force prior to the

31  suspension or revocation.

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 1         (4)  In addition to the penalties prescribed in

 2  subsection (3), violation of s. 440.381 by an insurance

 3  carrier shall result in the imposition of a fine not to exceed

 4  $1,000 per audit, if the insurance carrier fails to act on

 5  said audits by correcting errors in employee classification or

 6  accepted applications for coverage where it knew employee

 7  classifications were incorrect.  Such fines shall be levied by

 8  the Department of Financial Services Insurance and deposited

 9  into the Insurance Commissioner's Regulatory Trust Fund.

10         Section 508.  Paragraph (a) of subsection (5) of

11  section 443.131, Florida Statutes, is amended to read:

12         443.131  Contributions.--

13         (5)  FINANCING BENEFITS PAID TO EMPLOYEES OF THE STATE

14  AND POLITICAL SUBDIVISIONS OF THE STATE.--Benefits paid to

15  employees of this state or any instrumentality of this state,

16  or to employees of any political subdivision of this state or

17  any instrumentality thereof, based upon service defined in s.

18  443.036(21)(b), shall be financed in accordance with this

19  subsection.

20         (a)1.  Unless an election is made as provided in

21  paragraph (c), the state or any political subdivision of the

22  state shall pay into the Unemployment Compensation Trust Fund

23  an amount equivalent to the amount of regular benefits,

24  short-time compensation benefits, and extended benefits paid

25  to individuals, based on wages paid by the state or the

26  political subdivision for service defined in s.

27  443.036(21)(b).

28         2.  Should any state agency become more than 120 days

29  delinquent on reimbursements due to the Unemployment

30  Compensation Trust Fund, the division shall certify to the

31  Chief Financial Officer Comptroller the amount due and the

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 1  Chief Financial Officer Comptroller shall transfer the amount

 2  due to the Unemployment Compensation Trust Fund from the funds

 3  of such agency that may legally be used for such purpose.  In

 4  the event any political subdivision of the state or any

 5  instrumentality thereof becomes more than 120 days delinquent

 6  on reimbursements due to the Unemployment Compensation Trust

 7  Fund, then, upon request by the division after a hearing, the

 8  Department of Revenue or the Department of Financial Services

 9  Banking and Finance, as the case may be, shall deduct the

10  amount owed by the political subdivision or instrumentality

11  from any funds to be distributed by it to the county, city,

12  special district, or consolidated form of government for

13  further distribution to the trust fund in accordance with this

14  chapter. Should any employer for whom the city or county tax

15  collector collects taxes fail to make the reimbursements to

16  the Unemployment Compensation Trust Fund required by this

17  chapter, the tax collector after a hearing, at the request of

18  the division and upon receipt of a certificate showing the

19  amount owed by the employer, shall deduct the amount so

20  certified from any taxes collected for the employer and remit

21  same to the Department of Labor and Employment Security for

22  further distribution to the trust fund in accordance with this

23  chapter. This subparagraph does not apply to those amounts due

24  for benefits paid prior to October 1, 1979.  This subparagraph

25  does not apply to amounts owed by a political subdivision for

26  benefits erroneously paid where the claimant is required to

27  repay to the division under s. 443.151(6)(a) or (b) any sum as

28  benefits received.

29         Section 509.  Subsections (2), (3), and (4) of section

30  443.191, Florida Statutes, are amended to read:

31  

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 1         443.191  Unemployment Compensation Trust Fund;

 2  establishment and control.--

 3         (2)  The Chief Financial Officer Treasurer is the ex

 4  officio treasurer and custodian of the fund and shall

 5  administer the fund in accordance with the directions of the

 6  division.  All payments from the fund must be approved by the

 7  division or by a duly authorized agent and must be made by the

 8  Treasurer upon warrants issued by the Comptroller, except as

 9  hereinafter provided.  The Chief Financial Officer Treasurer

10  shall maintain within the fund three separate accounts:

11         (a)  A clearing account;

12         (b)  An Unemployment Compensation Trust Fund account;

13  and

14         (c)  A benefit account.

15  

16  All moneys payable to the fund, including moneys received from

17  the United States as reimbursement for extended benefits paid

18  by the division, upon receipt thereof by the division, must be

19  forwarded to the Chief Financial Officer Treasurer, who shall

20  immediately deposit them in the clearing account. Refunds

21  payable under s. 443.141 may be paid from the clearing account

22  upon warrants issued by the Comptroller.  After clearance, all

23  other moneys in the clearing account must be immediately

24  deposited with the Secretary of the Treasury of the United

25  States to the credit of the account of this state in the

26  Unemployment Compensation Trust Fund established and

27  maintained under s. 904 of the Social Security Act, as

28  amended, any provisions of the law in this state relating to

29  the deposit, administration, release, or disbursement of

30  moneys in the possession or custody of this state to the

31  contrary notwithstanding.  The benefit account shall consist

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 1  of all moneys requisitioned from this state's account in the

 2  Unemployment Compensation Trust Fund.  Except as otherwise

 3  provided, moneys in the clearing and benefit accounts may be

 4  deposited by the Chief Financial Officer Treasurer, under the

 5  direction of the division, in any bank or public depository in

 6  which general funds of the state may be deposited, but no

 7  public deposit insurance charge or premium may be paid out of

 8  the fund.  If any warrant issued against the clearing account

 9  or the benefit account is not presented for payment within 1

10  year after issuance thereof, the Chief Financial Officer

11  Comptroller must cancel the same and credit without

12  restriction the amount of such warrant to the account upon

13  which it is drawn. When the payee or person entitled to any

14  warrant so canceled requests payment thereof, the Chief

15  Financial Officer Comptroller, upon direction of the division,

16  must issue a new warrant therefor, to be paid out of the

17  account against which the canceled warrant had been drawn.

18         (3)  Moneys shall be requisitioned from the state's

19  account in the Unemployment Compensation Trust Fund solely for

20  the payment of benefits and extended benefits and in

21  accordance with rules prescribed by the division, except that

22  money credited to this state's account pursuant to s. 903 of

23  the Social Security Act, as amended, shall be used exclusively

24  as provided in subsection (5).  The division, through the

25  Chief Financial Officer Treasurer, shall from time to time

26  requisition from the Unemployment Compensation Trust Fund such

27  amounts, not exceeding the amounts standing to this state's

28  account therein, as it deems necessary for the payment of

29  benefits and extended benefits for a reasonable future period.

30  Upon receipt thereof, the Chief Financial Officer Treasurer

31  shall deposit such moneys in the benefit account in the State

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 1  Treasury and warrants for the payment of benefits and extended

 2  benefits shall be drawn by the Comptroller upon the order of

 3  the division against such benefit account.  All warrants for

 4  benefits and extended benefits shall be payable directly to

 5  the ultimate beneficiary. Expenditures of such moneys in the

 6  benefit account and refunds from the clearing account shall

 7  not be subject to any provisions of law requiring specific

 8  appropriations or other formal release by state officers of

 9  money in their custody. All warrants issued for the payment of

10  benefits and refunds shall bear the signature of the Chief

11  Financial Officer Comptroller as above set forth.  Any balance

12  of moneys requisitioned from the Unemployment Compensation

13  Trust Fund which remains unclaimed or unpaid in the benefit

14  account after the expiration of the period for which such sums

15  were requisitioned shall either be deducted from estimates

16  for, and may be utilized for the payment of, benefits and

17  extended benefits during succeeding periods, or, in the

18  discretion of the division, shall be redeposited with the

19  Secretary of the Treasury of the United States, to the credit

20  of this state's account in the Unemployment Compensation Trust

21  Fund, as provided in subsection (2).

22         (4)  The provisions of subsections (1), (2), and (3),

23  to the extent that they relate to the Unemployment

24  Compensation Trust Fund, shall be operative only so long as

25  such unemployment trust fund continues to exist and so long as

26  the Secretary of the Treasury of the United States continues

27  to maintain for this state a separate book account of all

28  funds deposited therein by this state for benefit purposes,

29  together with this state's proportionate share of the earnings

30  of such Unemployment Compensation Trust Fund, from which no

31  other state is permitted to make withdrawals.  If and when

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 1  such Unemployment Compensation Trust Fund ceases to exist, or

 2  such separate book account is no longer maintained, all

 3  moneys, properties, or securities therein belonging to the

 4  Unemployment Compensation Trust Fund of this state shall be

 5  transferred to the treasurer of the Unemployment Compensation

 6  Trust Fund, who shall hold, invest, transfer, sell, deposit,

 7  and release such moneys, properties, or securities in a manner

 8  approved by the division in accordance with the provisions of

 9  this chapter; however, such moneys shall be invested in the

10  following readily marketable classes of securities:  bonds or

11  other interest-bearing obligations of the United States or of

12  the state.  Further, such investment shall at all times be so

13  made that all the assets of the fund shall always be readily

14  convertible into cash when needed for the payment of benefits.

15  The treasurer shall dispose of securities or other properties

16  belonging to the Unemployment Compensation Trust Fund only

17  under the direction of the division.

18         Section 510.  Subsections (1) and (2) of section

19  443.211, Florida Statutes, are amended to read:

20         443.211  Employment Security Administration Trust Fund;

21  appropriation; reimbursement.--

22         (1)  EMPLOYMENT SECURITY ADMINISTRATION TRUST

23  FUND.--There is created in the State Treasury a special fund

24  to be known as the "Employment Security Administration Trust

25  Fund."  All moneys that are deposited into this fund remain

26  continuously available to the division for expenditure in

27  accordance with the provisions of this chapter and do not

28  lapse at any time and may not be transferred to any other

29  fund.  All moneys in this fund which are received from the

30  Federal Government or any agency thereof or which are

31  appropriated by this state for the purposes described in ss.

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 1  443.171 and 443.181, except money received under s.

 2  443.191(5)(c), must be expended solely for the purposes and in

 3  the amounts found necessary by the authorized cooperating

 4  federal agencies for the proper and efficient administration

 5  of this chapter. The fund shall consist of all moneys

 6  appropriated by this state; all moneys received from the

 7  United States or any agency thereof; all moneys received from

 8  any other source for such purpose; any moneys received from

 9  any agency of the United States or any other state as

10  compensation for services or facilities supplied to such

11  agency; any amounts received pursuant to any surety bond or

12  insurance policy or from other sources for losses sustained by

13  the Employment Security Administration Trust Fund or by reason

14  of damage to equipment or supplies purchased from moneys in

15  such fund; and any proceeds realized from the sale or

16  disposition of any such equipment or supplies which may no

17  longer be necessary for the proper administration of this

18  chapter. Notwithstanding any provision of this section, all

19  money requisitioned and deposited in this fund under s.

20  443.191(5)(c) remains part of the Unemployment Compensation

21  Trust Fund and must be used only in accordance with the

22  conditions specified in s. 443.191(5).  All moneys in this

23  fund must be deposited, administered, and disbursed in the

24  same manner and under the same conditions and requirements as

25  is provided by law for other special funds in the State

26  Treasury.  Such moneys must be secured by the depositary in

27  which they are held to the same extent and in the same manner

28  as required by the general depositary law of the state, and

29  collateral pledged must be maintained in a separate custody

30  account. All payments from the Employment Security

31  Administration Trust Fund must be approved by the division or

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 1  by a duly authorized agent and must be made by the Chief

 2  Financial Officer Treasurer upon warrants issued by the

 3  Comptroller.  Any balances in this fund do not lapse at any

 4  time and must remain continuously available to the division

 5  for expenditure consistent with this chapter.

 6         (2)  SPECIAL EMPLOYMENT SECURITY ADMINISTRATION TRUST

 7  FUND.--There is created in the State Treasury a special fund,

 8  to be known as the "Special Employment Security Administration

 9  Trust Fund," into which shall be deposited or transferred all

10  interest on contributions, penalties, and fines or fees

11  collected under this chapter.  Interest on contributions,

12  penalties, and fines or fees deposited during any calendar

13  quarter in the clearing account in the Unemployment

14  Compensation Trust Fund shall, as soon as practicable after

15  the close of such calendar quarter and upon certification of

16  the division, be transferred to the Special Employment

17  Security Administration Trust Fund.  However, there shall be

18  withheld from any such transfer the amount certified by the

19  division to be required under this chapter to pay refunds of

20  interest on contributions, penalties, and fines or fees

21  collected and erroneously deposited into the clearing account

22  in the Unemployment Compensation Trust Fund.  Such amounts of

23  interest and penalties so certified for transfer shall be

24  deemed to have been erroneously deposited in the clearing

25  account, and the transfer thereof to the Special Employment

26  Security Administration Trust Fund shall be deemed to be a

27  refund of such erroneous deposits. All moneys in this fund

28  shall be deposited, administered, and disbursed in the same

29  manner and under the same conditions and requirements as are

30  provided by law for other special funds in the State Treasury.

31  These moneys shall not be expended or be available for

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 1  expenditure in any manner which would permit their

 2  substitution for, or permit a corresponding reduction in,

 3  federal funds which would, in the absence of these moneys, be

 4  available to finance expenditures for the administration of

 5  the Unemployment Compensation Law.  But nothing in this

 6  section shall prevent these moneys from being used as a

 7  revolving fund to cover expenditures, necessary and proper

 8  under the law, for which federal funds have been duly

 9  requested but not yet received, subject to the charging of

10  such expenditures against such funds when received.  The

11  moneys in this fund, with the approval of the Executive Office

12  of the Governor, shall be used by the Division of Unemployment

13  Compensation and the Agency for Workforce Innovation for the

14  payment of costs of administration which are found not to have

15  been properly and validly chargeable against funds obtained

16  from federal sources. All moneys in the Special Employment

17  Security Administration Trust Fund shall be continuously

18  available to the division for expenditure in accordance with

19  the provisions of this chapter and shall not lapse at any

20  time.  All payments from the Special Employment Security

21  Administration Trust Fund shall be approved by the division or

22  by a duly authorized agent thereof and shall be made by the

23  Chief Financial Officer Treasurer upon warrants issued by the

24  Comptroller. The moneys in this fund are hereby specifically

25  made available to replace, as contemplated by subsection (3),

26  expenditures from the Employment Security Administration Trust

27  Fund, established by subsection (1), which have been found by

28  the Bureau of Employment Security, or other authorized federal

29  agency or authority, because of any action or contingency, to

30  have been lost or improperly expended.  The Chief Financial

31  Officer Treasurer shall be liable on her or his official bond

                                 516

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 1  for the faithful performance of her or his duties in

 2  connection with the Special Employment Security Administration

 3  Trust Fund.

 4         Section 511.  Section 447.12, Florida Statutes, is

 5  amended to read:

 6         447.12  Fees for registration.--All fees collected by

 7  the department under this part shall be paid to the Chief

 8  Financial Officer Treasurer and credited to the General

 9  Revenue Fund.

10         Section 512.  Subsection (1) of section 450.155,

11  Florida Statutes, is amended to read:

12         450.155  Child Labor Law Trust Fund.--

13         (1)  There is created in the State Treasury an account

14  to be known as the Child Labor Law Trust Fund. Subject to such

15  appropriations as the Legislature may make therefor from time

16  to time, disbursements from this account may be made by the

17  division, subject to the approval of the department, in order

18  to carry out the proper responsibilities of administering the

19  Child Labor Law, to protect the working youth of the state,

20  and to provide education about the Child Labor Law to

21  employers, public school employees, the general public, and

22  working youth. The Child Labor Law Trust Fund and the moneys

23  deposited therein shall be under the direct supervision and

24  control of the department, and such moneys may be disbursed by

25  the Chief Financial Officer Treasurer from time to time as

26  determined by the department.

27         Section 513.  Paragraph (h) of subsection (2) of

28  section 456.047, Florida Statutes, is amended to read:

29         456.047  Standardized credentialing for health care

30  practitioners.--

31         (2)  DEFINITIONS.--As used in this section, the term:

                                 517

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 1         (h)  "Health care entity" means:

 2         1.  Any health care facility or other health care

 3  organization licensed or certified to provide approved medical

 4  and allied health services in this state;

 5         2.  Any entity licensed by the Department of Financial

 6  Services Insurance as a prepaid health care plan or health

 7  maintenance organization or as an insurer to provide coverage

 8  for health care services through a network of providers or

 9  similar organization licensed under chapter 627, chapter 636,

10  chapter 641, or chapter 651; or

11         3.  Any accredited medical school in this state.

12         Section 514.  Subsections (1) and (2) of section

13  468.392, Florida Statutes, are amended to read:

14         468.392  Auctioneer Recovery Fund.--There is created

15  the Auctioneer Recovery Fund as a separate account in the

16  Professional Regulation Trust Fund.  The fund shall be

17  administered by the Florida Board of Auctioneers.

18         (1)  The Chief Financial Officer Treasurer shall invest

19  the money not currently needed to meet the obligations of the

20  fund in the same manner as other public funds may be invested.

21  Interest that accrues from these investments shall be

22  deposited to the credit of the Auctioneer Recovery Fund and

23  shall be available for the same purposes as other moneys

24  deposited in the Auctioneer Recovery Fund.

25         (2)  All payments and disbursements from the Auctioneer

26  Recovery Fund shall be made by the Chief Financial Officer

27  Treasurer upon a voucher signed by the Secretary of Business

28  and Professional Regulation or the secretary's designee.

29  Amounts transferred to the Auctioneer Recovery Fund shall not

30  be subject to any limitation imposed by an appropriation act

31  of the Legislature.

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 1         Section 515.  Subsection (2) of section 473.3065,

 2  Florida Statutes, is amended to read:

 3         473.3065  Certified Public Accountant Education

 4  Minority Assistance Program; advisory council.--

 5         (2)  All moneys used to provide scholarships under the

 6  program shall be funded by a portion of existing license fees,

 7  as set by the board, not to exceed $10 per license.  Such

 8  moneys shall be deposited into the Professional Regulation

 9  Trust Fund in a separate account maintained for that purpose.

10  The department is authorized to spend up to $100,000 per year

11  for the program from this program account, but may not

12  allocate overhead charges to it.  Moneys for scholarships

13  shall be disbursed annually upon recommendation of the

14  advisory council and approval by the board, based on the

15  adopted eligibility criteria and comparative evaluation of all

16  applicants. Funds in the program account may be invested by

17  the Chief Financial Officer Treasurer under the same

18  limitations as apply to investment of other state funds, and

19  all interest earned thereon shall be credited to the program

20  account.

21         Section 516.  Subsection (7) of section 475.045,

22  Florida Statutes, is amended to read:

23         475.045  Florida Real Estate Commission Education and

24  Research Foundation.--

25         (7)  The Chief Financial Officer Treasurer shall invest

26  $3 million from the portion of the Professional Regulation

27  Trust Fund credited to the real estate profession, under the

28  same limitations as applied to investments of other state

29  funds, and the income earned thereon shall be available to the

30  foundation to fund the activities and projects authorized

31  under this section. However, any balance of such interest in

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 1  excess of $1 million shall revert to the portion of the

 2  Professional Regulation Trust Fund credited to the real estate

 3  profession.  In the event the foundation is abolished, the

 4  funds in the trust fund shall revert to such portion of the

 5  Professional Regulation Trust Fund.

 6         Section 517.  Subsection (6) of section 475.484,

 7  Florida Statutes, is amended to read:

 8         475.484  Payment from the fund.--

 9         (6)  All payments and disbursements from the Real

10  Estate Recovery Fund shall be made by the Chief Financial

11  Officer Treasurer upon a voucher signed by the secretary of

12  the department.  Amounts transferred to the Real Estate

13  Recovery Fund shall not be subject to any limitation imposed

14  by an appropriation act of the Legislature.

15         Section 518.  Section 475.485, Florida Statutes, is

16  amended to read:

17         475.485  Investment of the fund.--The funds in the Real

18  Estate Recovery Fund may be invested by the Chief Financial

19  Officer Treasurer under the same limitations as apply to

20  investment of other state funds, and the interest earned

21  thereon shall be deposited to the credit of the Real Estate

22  Recovery Fund and shall be available for the same purposes as

23  other moneys deposited in the Real Estate Recovery Fund.

24         Section 519.  Section 489.144, Florida Statutes, is

25  amended to read:

26         489.144  Investment of the fund.--The funds in the

27  Construction Industries Recovery Fund may be invested by the

28  Chief Financial Officer Treasurer under the same limitations

29  as apply to the investment of other state funds, and the

30  interest earned thereon shall be deposited to the credit of

31  the Construction Industries Recovery Fund and shall be

                                 520

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 1  available for the same purposes as other moneys deposited in

 2  the Construction Industries Recovery Fund.

 3         Section 520.  Subsection (6) of section 489.145,

 4  Florida Statutes, is amended to read:

 5         489.145  Guaranteed energy performance savings

 6  contracting.--

 7         (6)  PROGRAM ADMINISTRATION AND CONTRACT REVIEW.--The

 8  Department of Management Services, with the assistance of the

 9  Office of the Chief Financial Officer Comptroller, may, within

10  available resources, provide technical assistance to state

11  agencies contracting for energy conservation measures and

12  engage in other activities considered appropriate by the

13  department for promoting and facilitating guaranteed energy

14  performance contracting by state agencies. The Office of the

15  Chief Financial Officer Comptroller, with the assistance of

16  the Department of Management Services, may, within available

17  resources, develop model contractual and related documents for

18  use by state agencies.  Prior to entering into a guaranteed

19  energy performance savings contract, any contract or lease for

20  third-party financing, or any combination of such contracts, a

21  state agency shall submit such proposed contract or lease to

22  the Office of the Chief Financial Officer Comptroller for

23  review and approval.

24         Section 521.  Subsection (5) of section 489.533,

25  Florida Statutes, is amended to read:

26         489.533  Disciplinary proceedings.--

27         (5)  When the board imposes administrative fines

28  pursuant to subsection (2) resulting from violation of chapter

29  633 or violation of the rules of the State Fire Marshal, 50

30  percent of the fine shall be paid into the Insurance

31  Commissioner's Regulatory Trust Fund to help defray the costs

                                 521

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 1  of investigating the violations and obtaining the corrective

 2  action. The State Fire Marshal may participate at its

 3  discretion, but not as a party, in any proceedings before the

 4  board relating to violation of chapter 633 or the rules of the

 5  State Fire Marshal, in order to make recommendations as to the

 6  appropriate penalty in such case. However, the State Fire

 7  Marshal shall not have standing to bring disciplinary

 8  proceedings regarding certification.

 9         Section 522.  Subsection (8) of section 494.001,

10  Florida Statutes, is amended to read:

11         494.001  Definitions.--As used in ss. 494.001-494.0077,

12  the term:

13         (8)  "Department" means the Department of Financial

14  Services Banking and Finance.

15         Section 523.  Subsection (3) of section 494.0011,

16  Florida Statutes, is amended to read:

17         494.0011  Powers and duties of the department.--

18         (3)  All fees, charges, and fines collected by the

19  department pursuant to ss. 494.001-494.0077 shall be deposited

20  in the State Treasury to the credit of the Banking and Finance

21  Regulatory Trust Fund under the department.

22         Section 524.  Subsections (1) and (2) of section

23  494.0017, Florida Statutes, are amended to read:

24         494.0017  Mortgage Brokerage Guaranty Fund.--

25         (1)  The department shall make transfers from the

26  Banking and Finance Regulatory Trust Fund to the Mortgage

27  Brokerage Guaranty Fund to pay valid claims arising under

28  former ss. 494.042, 494.043, and 494.044, as provided in

29  former s. 494.00171.

30         (2)  Any money paid to the Mortgage Brokerage Guaranty

31  Fund in excess of any liability to claimants against the

                                 522

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 1  Mortgage Brokerage Guaranty Fund shall be transferred to the

 2  Banking and Finance Regulatory Trust Fund.

 3         Section 525.  Paragraph (a) of subsection (7) of

 4  section 494.00421, Florida Statutes, is amended to read:

 5         494.00421  Fees earned upon obtaining a bona fide

 6  commitment.--Notwithstanding the provisions of ss.

 7  494.001-494.0077, any mortgage brokerage business which

 8  contracts to receive from a borrower a mortgage brokerage fee

 9  upon obtaining a bona fide commitment shall accurately

10  disclose in the mortgage brokerage agreement:

11         (7)(a)  The following statement, in no less than

12  12-point boldface type immediately above the signature lines

13  for the borrowers:

14  

15  "You are entering into a contract with a mortgage brokerage

16  business to obtain a bona fide mortgage loan commitment under

17  the same terms and conditions as stated hereinabove or in a

18  separate executed good faith estimate form.  If the mortgage

19  brokerage business obtains a bona fide commitment under the

20  same terms and conditions, you will be obligated to pay the

21  mortgage brokerage business fees, including, but not limited

22  to, a mortgage brokerage fee, even if you choose not to

23  complete the loan transaction.  If the provisions of s.

24  494.00421, Florida Statutes, are not met, the mortgage

25  brokerage fee can only be earned upon the funding of the

26  mortgage loan.  The borrower may contact the Department of

27  Financial Services Banking and Finance, Tallahassee, Florida,

28  regarding any complaints that the borrower may have against

29  the mortgage broker or the mortgage brokerage business.  The

30  telephone number of the department as set by rule of the

31  department is:  ...[insert telephone number]...."

                                 523

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 1         Section 526.  Subsection (16) of section 497.005,

 2  Florida Statutes, is amended to read:

 3         497.005  Definitions.--As used in this chapter:

 4         (16)  "Department" means the Department of Financial

 5  Services Banking and Finance.

 6         Section 527.  Subsection (1) of section 497.101,

 7  Florida Statutes, is amended to read:

 8         497.101  Board of Funeral and Cemetery Services;

 9  membership; appointment; terms.--

10         (1)  The Board of Funeral and Cemetery Services is

11  created within the department of Banking and Finance and shall

12  consist of seven members appointed by the Governor, from

13  nominations made by the Chief Financial Officer Comptroller,

14  and confirmed by the Senate. The Chief Financial Officer

15  Comptroller shall nominate three persons for each vacancy on

16  the board, and the Governor shall fill each vacancy on the

17  board by appointing one of the three persons nominated by the

18  Chief Financial Officer Comptroller to fill that vacancy.  If

19  the Governor objects to each of the three nominations for a

20  vacancy, she or he shall inform the Chief Financial Officer

21  Comptroller in writing.  Upon notification of an objection by

22  the Governor, the Chief Financial Officer Comptroller shall

23  submit three additional nominations for that vacancy until the

24  vacancy is filled.

25         Section 528.  Section 497.105, Florida Statutes, is

26  amended to read:

27         497.105  Department of Banking and Finance; powers and

28  duties.--The department of Banking and Finance shall:

29         (1)  Adopt rules establishing procedures for the

30  renewal of licenses, registrations, and certificates of

31  authority.

                                 524

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 1         (2)  Appoint the executive director of the Board of

 2  Funeral and Cemetery Services, subject to the approval of the

 3  board.

 4         (3)  With the advice of the board, submit a biennial

 5  budget to the Legislature at a time and in the manner provided

 6  by law.

 7         (4)  Develop a training program for persons newly

 8  appointed to membership on the board.  The program shall

 9  familiarize such persons with the substantive and procedural

10  laws and rules which relate to the regulation under this

11  chapter and with the structure of the department.

12         (5)  Adopt rules pursuant to ss. 120.536(1) and 120.54

13  to implement the provisions of this chapter conferring duties

14  upon it.

15         (6)  Establish by rule procedures by which the

16  department shall use the expert or technical advice of the

17  board, for the purposes of investigation, inspection, audit,

18  evaluation of applications, other duties of the department, or

19  any other areas the department may deem appropriate.

20         (7)  Require all proceedings of the board or panels

21  thereof within the department and all formal or informal

22  proceedings conducted by the department, an administrative law

23  judge, or a hearing officer with respect to licensing,

24  registration, certification, or discipline to be

25  electronically recorded in a manner sufficient to ensure the

26  accurate transcription of all matters so recorded.

27         (8)  Select only those investigators approved by the

28  board.  Such investigators shall report to and work in

29  coordination with the executive director of the board and are

30  responsible for all inspections and investigations other than

31  financial examinations.

                                 525

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 1         Section 529.  Section 497.107, Florida Statutes, is

 2  amended to read:

 3         497.107  Headquarters.--The Board of Funeral and

 4  Cemetery Services may be contacted through the headquarters of

 5  the department of Banking and Finance in the City of

 6  Tallahassee.

 7         Section 530.  Subsection (4) of section 497.109,

 8  Florida Statutes, is amended to read:

 9         497.109  Board of Funeral and Cemetery Services;

10  membership.--

11         (4)  Unless otherwise provided by law, a board member

12  shall be compensated $50 for each day the member attends an

13  official meeting of the board and for each day the member

14  participates in any other business involving the board. The

15  board shall adopt rules defining the phrase "other business

16  involving the board," but the phrase may not be defined to

17  include telephone conference calls.  A board member is

18  entitled to reimbursement for expenses pursuant to s. 112.061,

19  but travel out of state requires the prior approval of the

20  Chief Financial Officer Comptroller.

21         Section 531.  Section 497.115, Florida Statutes, is

22  amended to read:

23         497.115  Board rules; final agency action;

24  challenges.--

25         (1)  The Chief Financial Officer Comptroller shall have

26  standing to challenge any rule or proposed rule of the board

27  pursuant to s. 120.56.  In addition to challenges for any

28  invalid exercise of delegated legislative authority, the

29  administrative law judge, upon such a challenge by the Chief

30  Financial Officer Comptroller, may declare all or part of a

31  rule or proposed rule invalid if it:

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 1         (a)  Does not protect the public from any significant

 2  and discernible harm or damages;

 3         (b)  Unreasonably restricts competition or the

 4  availability of professional services in the state or in a

 5  significant part of the state; or

 6         (c)  Unnecessarily increases the cost of professional

 7  services without a corresponding or equivalent public benefit.

 8  

 9  However, there shall not be created a presumption of the

10  existence of any of the conditions cited in this subsection in

11  the event that the rule or proposed rule is challenged.

12         (2)  In addition, either the Chief Financial Officer

13  Comptroller or the board shall be a substantially interested

14  party for purposes of s. 120.54(7).  The board may, as an

15  adversely affected party, initiate and maintain an action

16  pursuant to s. 120.68 challenging the final agency action.

17         Section 532.  Section 497.117, Florida Statutes, is

18  amended to read:

19         497.117  Legal and investigative services.--

20         (1)  The Department of Legal Affairs shall provide

21  legal services to the board within the Department of Financial

22  Services Banking and Finance, but the primary responsibility

23  of the Department of Legal Affairs shall be to represent the

24  interests of the citizens of the state by vigorously

25  counseling the board with respect to its obligations under the

26  laws of the state. Subject to the prior approval of the

27  Attorney General, the board may retain independent legal

28  counsel to provide legal advice to the board on a specific

29  matter. Fees and costs of such counsel shall be paid from the

30  Banking and Finance Regulatory Trust Fund of the Department of

31  Financial Services Banking and Finance.

                                 527

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 1         (2)  The Department of Financial Services Banking and

 2  Finance may employ or utilize the legal services of outside

 3  counsel and the investigative services of outside personnel.

 4  However, no attorney employed or utilized by the department

 5  shall prosecute a matter or provide legal services to the

 6  board with respect to the same matter.

 7         Section 533.  Subsections (1), (4), and (8) of section

 8  497.131, Florida Statutes, are amended to read:

 9         497.131  Disciplinary proceedings.--

10         (1)  The department shall cause to be investigated any

11  complaint which is filed before it if the complaint is in

12  writing, signed by the complainant, and legally sufficient.  A

13  complaint is legally sufficient if it contains ultimate facts

14  which show that a violation of this chapter, or of any rule

15  promulgated by the department or board has occurred.  In order

16  to determine legal sufficiency, the department may require

17  supporting information or documentation.  The department may

18  investigate or continue to investigate, and the department and

19  the board may take appropriate final action on, a complaint

20  even though the original complainant withdraws it or otherwise

21  indicates her or his desire not to cause the complaint to be

22  investigated or prosecuted to completion.  The department may

23  investigate an anonymous complaint if the complaint is in

24  writing and is legally sufficient, if the alleged violation of

25  law or rules is substantial, and if the department has reason

26  to believe, after preliminary inquiry, that the alleged

27  violations in the complaint are true.  The department may

28  investigate a complaint made by a confidential informant if

29  the complaint is legally sufficient, if the alleged violation

30  of law or rule is substantial, and if the department has

31  reason to believe, after preliminary inquiry, that the

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 1  allegations of the complainant are true.  The department may

 2  initiate an investigation if it has reasonable cause to

 3  believe that a person has violated a state statute, a rule of

 4  the department, or a rule of the board.  When an investigation

 5  of any person is undertaken, the department shall promptly

 6  furnish to the person or her or his attorney a copy of the

 7  complaint or document which resulted in the initiation of the

 8  investigation.  The person may submit a written response to

 9  the information contained in such complaint or document within

10  20 days after service to the person of the complaint or

11  document.  The person's written response shall be considered

12  by the probable cause panel.  This right to respond shall not

13  prohibit the department from issuing a summary emergency order

14  if necessary to protect the public.  However, if the Chief

15  Financial Officer Comptroller or her or his designee and the

16  chair of the board or the chair of its probable cause panel

17  agree in writing that such notification would be detrimental

18  to the investigation, the department may withhold

19  notification.  The department may conduct an investigation

20  without notification to any person if the act under

21  investigation is a criminal offense.

22         (4)  The determination as to whether probable cause

23  exists shall be made by majority vote of the probable cause

24  panel of the board. The board shall provide, by rule, that the

25  determination of probable cause shall be made by a panel of

26  its members or by the department. The board may provide, by

27  rule, for multiple probable cause panels composed of at least

28  two members. The board may provide, by rule, that one or more

29  members of the panel or panels may be a former board member.

30  The length of term or repetition of service of any such former

31  board member on a probable cause panel may vary according to

                                 529

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 1  the direction of the board when authorized by board rule. Any

 2  probable cause panel must include one of the board's former or

 3  present consumer members, if one is available, willing to

 4  serve, and is authorized to do so by the board chair. Any

 5  probable cause panel must include a present board member. Any

 6  probable cause panel must include a former or present

 7  professional board member. However, any former professional

 8  board member serving on the probable cause panel must hold an

 9  active valid license for that profession. All probable cause

10  proceedings conducted pursuant to the provisions of this

11  section are exempt from the provisions of s. 286.011 and s.

12  24(b), Art. I of the State Constitution. The probable cause

13  panel may make a reasonable request, and upon such request the

14  department shall provide such additional investigative

15  information as is necessary to the determination of probable

16  cause. A request for additional investigative information

17  shall be made within 15 days from the date of receipt by the

18  probable cause panel of the investigative report of the

19  department. The probable cause panel shall make its

20  determination of probable cause within 30 days after receipt

21  by it of the final investigative report of the department. The

22  Chief Financial Officer Comptroller may grant extensions of

23  the 15-day and the 30-day time limits. If the probable cause

24  panel does not find probable cause within the 30-day time

25  limit, as may be extended, or if the probable cause panel

26  finds no probable cause, the department may determine, within

27  10 days after the panel fails to determine probable cause or

28  10 days after the time limit has elapsed, that probable cause

29  exists. If the probable cause panel finds that probable cause

30  exists, it shall direct the department to file a formal

31  complaint against the licensee. The department shall follow

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 1  the directions of the probable cause panel regarding the

 2  filing of a formal complaint. If directed to do so, the

 3  department shall file a formal complaint against the subject

 4  of the investigation and prosecute that complaint pursuant to

 5  the provisions of chapter 120. However, the department may

 6  decide not to prosecute the complaint if it finds that

 7  probable cause had been improvidently found by the panel. In

 8  such cases, the department shall refer the matter to the

 9  board. The board may then file a formal complaint and

10  prosecute the complaint pursuant to the provisions of chapter

11  120. The department shall also refer to the board any

12  investigation or disciplinary proceeding not before the

13  Division of Administrative Hearings pursuant to chapter 120 or

14  otherwise completed by the department within 1 year after the

15  filing of a complaint. A probable cause panel or the board may

16  retain independent legal counsel, employ investigators, and

17  continue the investigation as it deems necessary; all costs

18  thereof shall be paid from the department's Banking and

19  Finance Regulatory Trust Fund. All proceedings of the probable

20  cause panel shall be exempt from the provisions of s. 120.525.

21         (8)  Any proceeding for the purpose of summary

22  suspension of a license, or for the restriction of a license,

23  of a licensee pursuant to s. 120.60(6) shall be conducted by

24  the Chief Financial Officer Comptroller or her or his

25  designee, who shall issue the final summary order.

26         Section 534.  Paragraph (f) of subsection (3) of

27  section 497.201, Florida Statutes, is amended to read:

28         497.201  Cemetery companies; license; application;

29  fee.--

30  

31  

                                 531

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 1         (3)  If the board finds that the applicant meets the

 2  criteria established in subsection (2), the department shall

 3  notify the applicant that a license will be issued when:

 4         (f)  The applicant has recorded, in the public records

 5  of the county in which the land is located, a notice which

 6  contains the following language:

 7  

 8                              NOTICE

 9  

10  The property described herein shall not be sold, conveyed,

11  leased, mortgaged, or encumbered without the prior written

12  approval of the Department of Financial Services Banking and

13  Finance, as provided in the Florida Funeral and Cemetery

14  Services Act.

15  

16  Such notice shall be clearly printed in boldfaced type of not

17  less than 10 points and may be included on the face of the

18  deed of conveyance to the licensee or may be contained in a

19  separate recorded instrument which contains a description of

20  the property.

21         Section 535.  Paragraph (d) of subsection (3) of

22  section 497.253, Florida Statutes, is amended to read:

23         497.253  Minimum acreage; sale or disposition of

24  cemetery lands.--

25         (3)

26         (d)  Any deed, mortgage, or other conveyance by a

27  cemetery company or other owner pursuant to subsections (a)

28  and (c) above must contain a disclosure in the following or

29  substantially similar form:

30  

31  

                                 532

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 1  NOTICE:  The property described herein was formerly used and

 2  dedicated as a cemetery. Conveyance of this property and its

 3  use for noncemetery purposes was authorized by the Florida

 4  Department of Banking and Finance or the Department of

 5  Financial Services by Order No. ...., dated .....

 6         Section 536.  Subsection (4) of section 497.313,

 7  Florida Statutes, is amended to read:

 8         497.313  Other charges.--Other than the fees for the

 9  sale of burial rights, burial merchandise, and burial

10  services, no other fee may be directly or indirectly charged,

11  contracted for, or received by a cemetery company as a

12  condition for a customer to use any burial right, burial

13  merchandise, or burial service, except for:

14         (4)  Charges for credit life and credit disability

15  insurance, as requested by the purchaser, the premiums for

16  which may not exceed the applicable premiums chargeable in

17  accordance with the rates filed with the Department of

18  Financial Services Insurance.

19         Section 537.  Section 497.403, Florida Statutes, is

20  amended to read:

21         497.403  Insurance business not authorized.--Nothing in

22  the Florida Insurance Code or this chapter shall be deemed to

23  authorize any preneed funeral merchandise or service contract

24  business or any preneed burial merchandise or service business

25  to transact any insurance business, other than that of preneed

26  funeral merchandise or service insurance or preneed burial

27  merchandise or service insurance, or otherwise to engage in

28  any other type of insurance unless it is authorized under a

29  certificate of authority issued by the Department of Financial

30  Services Insurance under the provisions of the Florida

31  

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 1  Insurance Code.  Any insurance business transacted under this

 2  section must comply with the provisions of s. 626.785.

 3         Section 538.  Paragraph (b) of subsections (4), and

 4  subsections (9), and (12) of section 497.407, Florida

 5  Statutes, are amended to read:

 6         497.407  Certificate of authority; annual statement;

 7  renewal; transfer.--

 8         (4)

 9         (b)  Any person or entity that is part of a common

10  business enterprise that has a certificate of authority issued

11  pursuant to this section and elects to operate under a name

12  other than that of the common business enterprise shall submit

13  an application on a form adopted by the board to become a

14  branch registrant. Upon the approval of the board that such

15  entity qualifies to sell preneed contracts under this chapter

16  except for the requirements of subparagraph (2)(c)1. and if

17  the certificateholder meets the requirements of such

18  subparagraph, a branch registration shall be issued. Each

19  branch registrant may operate under the certificate of

20  authority of the common business enterprise upon the payment

21  of a fee established by the board not to exceed $150

22  accompanying the application on April 1 annually. The fee

23  shall be payable to the department's Banking and Finance

24  Regulatory Trust Fund.

25         (9)  In addition to any other penalty that may be

26  provided for under this chapter, the board may levy a fine not

27  to exceed $50 a day for each day the certificateholder fails

28  to file its annual statement, and the board may levy a fine

29  not to exceed $50 a day for each day the certificateholder

30  fails to file the statement of activities of the trust. Upon

31  notice to the certificateholder by the board that the

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 1  certificateholder has failed to file the annual statement or

 2  the statement of activities of the trust, the

 3  certificateholder's authority to sell preneed contracts shall

 4  cease while such default continues. The board shall deposit

 5  all sums collected under this section to the credit of the

 6  department's Banking and Finance Regulatory Trust Fund.

 7         (12)  Each certificateholder shall pay to the

 8  department's Banking and Finance Regulatory Trust Fund an

 9  amount established by the board not to exceed $10 for each

10  preneed contract entered into. This amount must be paid within

11  60 days after the end of each quarter. These funds must be

12  used to defray the cost of the board and the department in

13  administering the provisions of this chapter.

14         Section 539.  Subsection (3) of section 497.435,

15  Florida Statutes, is amended to read:

16         497.435  Administrative fine in lieu of revocation or

17  suspension of certificate of authority.--

18         (3)  The fine shall be deposited into the department's

19  Banking and Finance Regulatory Trust Fund.

20         Section 540.  Section 497.525, Florida Statutes, is

21  amended to read:

22         497.525  Disposition of fees and penalties.--All fees

23  and penalties collected pursuant to this chapter shall be

24  deposited in the Banking and Finance Regulatory Trust Fund of

25  the department.

26         Section 541.  Paragraphs (d) and (m) of subsection (1)

27  of section 498.025, Florida Statutes, are amended to read:

28         498.025  Exemptions.--

29         (1)  Except as provided in s. 498.022, the provisions

30  of this chapter do not apply to:

31  

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 1         (d)  An offer or transfer of securities currently

 2  registered with the Department of Financial Services Banking

 3  and Finance or the United States Securities and Exchange

 4  Commission, except when s. 498.023(4) applies.

 5         (m)  The offer or disposition of an interest in

 6  subdivided lands to an accredited investor, as defined by rule

 7  of the Florida Department of Financial Services Banking and

 8  Finance in accordance with Securities and Exchange Commission

 9  Regulation 230.501, 17 C.F.R. s. 230.501.

10         Section 542.  Subsection (5) of section 498.049,

11  Florida Statutes, is amended to read:

12         498.049  Suspension; revocation; civil penalties.--

13         (5)  Each person who materially participates in any

14  offer or disposition of any interest in subdivided lands in

15  violation of this chapter or relevant rules involving fraud,

16  deception, false pretenses, misrepresentation, or false

17  advertising or the disposition, concealment, or diversion of

18  any funds or assets of any person which adversely affects the

19  interests of a purchaser of any interest in subdivided lands,

20  and who directly or indirectly controls a subdivider or is a

21  general partner, officer, director, agent, or employee of a

22  subdivider shall also be liable under this subsection jointly

23  and severally with and to the same extent as the subdivider,

24  unless that person did not know, and in the exercise of

25  reasonable care could not have known, of the existence of the

26  facts creating the alleged liability.  Among these persons a

27  right of contribution shall exist, except that a creditor of a

28  subdivider shall not be jointly and severally liable unless

29  the creditor has assumed managerial or fiduciary

30  responsibility in a manner related to the basis for the

31  liability of the subdivider under this subsection.  Civil

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 1  penalties shall be limited to $10,000 for each offense, and

 2  all amounts collected shall be deposited with the Chief

 3  Financial Officer Treasurer to the credit of the Division of

 4  Florida Land Sales, Condominiums, and Mobile Homes Trust Fund.

 5  No order requiring the payment of a civil penalty shall become

 6  effective until 20 days after the date of the order, unless

 7  otherwise agreed in writing by the person on whom the penalty

 8  is imposed.

 9         Section 543.  Section 499.057, Florida Statutes, is

10  amended to read:

11         499.057  Expenses and salaries.--All expenses and

12  salaries shall be paid out of the special fund hereby created

13  in the office of the Chief Financial Officer Treasurer, which

14  fund is to be known as the "Florida Drug, Device, and Cosmetic

15  Trust Fund."

16         Section 544.  Subsection (4) of section 501.212,

17  Florida Statutes, is amended to read:

18         501.212  Application.--This part does not apply to:

19         (4)  Any person or activity regulated under laws

20  administered, by the Department of Insurance or banks and

21  savings and loan associations regulated, by the Department of

22  Financial Services Banking and Finance or banks or savings and

23  loan associations regulated by federal agencies.

24         Section 545.  Subsection (7) of section 509.215,

25  Florida Statutes, is amended to read:

26         509.215  Firesafety.--

27         (7)  The National Fire Protection Association

28  publications referenced in this section are the ones most

29  recently adopted by rule of the Division of State Fire Marshal

30  of the Department of Financial Services Insurance.

31  

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 1         Section 546.  Paragraph (a) of subsection (2) of

 2  section 513.055, Florida Statutes, is amended to read:

 3         513.055  Revocation or suspension of permit; fines;

 4  procedure.--

 5         (2)

 6         (a)  In lieu of such suspension or revocation of a

 7  permit, the department may impose a fine against a permittee

 8  for the permittee's failure to comply with the provisions

 9  described in paragraph (1)(a) or may place such licensee on

10  probation.  No fine so imposed shall exceed $500 for each

11  offense, and all amounts collected in fines shall be deposited

12  with the Chief Financial Officer Treasurer to the credit of

13  the County Health Department Trust Fund.

14         Section 547.  Subsection (3) of section 516.01, Florida

15  Statutes, is amended to read:

16         516.01  Definitions.--As used in this chapter, the

17  term:

18         (3)  "Department" means the Department of Financial

19  Services Banking and Finance.

20         Section 548.  Subsection (2) of section 516.03, Florida

21  Statutes, is amended to read:

22         516.03  Application for license; fees; etc.--

23         (2)  FEES.--Fees herein provided for shall be collected

24  by the department and shall be turned into the State Treasury

25  to the credit of the Banking and Finance Regulatory Trust Fund

26  under the department.  The department shall have full power to

27  employ such examiners or clerks to assist the department as

28  may from time to time be deemed necessary and fix their

29  compensation. The department may adopt rules to allow

30  electronic submission of any fee required by this section.

31  

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 1         Section 549.  Subsection (1) of section 516.35, Florida

 2  Statutes, is amended to read:

 3         516.35  Credit insurance must comply with credit

 4  insurance act.--

 5         (1)  Tangible property offered as security may be

 6  reasonably insured against loss for a reasonable term,

 7  considering the circumstances of the loan.  If such insurance

 8  is sold at standard rates through a person duly licensed by

 9  the department of Insurance and if the policy is payable to

10  the borrower or any member of her or his family, it shall not

11  be deemed to be a collateral sale, purchase, or agreement even

12  though a customary mortgagee clause is attached or the

13  licensee is a coassured.

14         Section 550.  Subsection (7) of section 517.021,

15  Florida Statutes, is amended to read:

16         517.021  Definitions.--When used in this chapter,

17  unless the context otherwise indicates, the following terms

18  have the following respective meanings:

19         (7)  "Department" means the Department of Financial

20  Services Banking and Finance.

21         Section 551.  Subsection (1) of section 517.03, Florida

22  Statutes, is amended to read:

23         517.03  Rulemaking; immunity for acts in conformity

24  with rules.--

25         (1)  The department of Banking and Finance shall

26  administer and provide for the enforcement of all the

27  provisions of this chapter.  The department has authority to

28  adopt rules pursuant to ss. 120.536(1) and 120.54 to implement

29  the provisions of this chapter conferring powers or duties

30  upon it, including, without limitation, adopting rules and

31  forms governing reports. The department shall also have the

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 1  nonexclusive power to define by rule any term, whether or not

 2  used in this chapter, insofar as the definition is not

 3  inconsistent with the provisions of this chapter.

 4         Section 552.  Subsection (13) of section 517.061,

 5  Florida Statutes, is amended to read:

 6         517.061  Exempt transactions.--The exemption for each

 7  transaction listed below is self-executing and does not

 8  require any filing with the department prior to claiming such

 9  exemption.  Any person who claims entitlement to any of the

10  exemptions bears the burden of proving such entitlement in any

11  proceeding brought under this chapter.  The registration

12  provisions of s. 517.07 do not apply to any of the following

13  transactions; however, such transactions are subject to the

14  provisions of ss. 517.301, 517.311, and 517.312:

15         (13)  An unsolicited purchase or sale of securities on

16  order of, and as the agent for, another by a dealer registered

17  with the department of Banking and Finance pursuant to the

18  provisions of s. 517.12; provided that this exemption applies

19  solely and exclusively to such registered dealers and does not

20  authorize or permit the purchase or sale of securities on

21  order of, and as agent for, another by any person other than a

22  dealer so registered; and provided, further, that such

23  purchase or sale is not directly or indirectly for the benefit

24  of the issuer or an underwriter of such securities or for the

25  direct or indirect promotion of any scheme or enterprise with

26  the intent of violation or evading any provision of this

27  chapter.

28         Section 553.  Subsections (2) and (5) of section

29  517.075, Florida Statutes, are amended to read:

30         517.075  Cuba, prospectus disclosure of doing business

31  with, required.--

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 1         (2)  Any disclosure required by subsection (1) must

 2  include:

 3         (a)  The name of such person, affiliate, or government

 4  with which the issuer does business and the nature of that

 5  business;

 6         (b)  A statement that the information is accurate as of

 7  the date the securities were effective with the United States

 8  Securities and Exchange Commission or with the department,

 9  whichever date is later; and

10         (c)  A statement that current information concerning

11  the issuer's business dealings with the government of Cuba or

12  with any person or affiliate located in Cuba may be obtained

13  from the department of Banking and Finance, which statement

14  must include the address and phone number of the department.

15         (5)  Each securities offering sold in violation of this

16  section, and each failure of an issuer to timely file the form

17  required by subsection (3), subjects the issuer to a fine of

18  up to $5,000.  Any fine collected under this section shall be

19  deposited into the Anti-Fraud Trust Fund of the department of

20  Banking and Finance.

21         Section 554.  Subsection (2) of section 517.1204,

22  Florida Statutes, is amended to read:

23         517.1204  Investment Fraud Restoration Financing

24  Corporation.--

25         (2)  The corporation shall be governed by a board of

26  directors consisting of the Chief Financial Officer or his or

27  her designee assistant comptroller, the Secretary of Elderly

28  Affairs or the secretary's designee, and the executive

29  director of the Department of Veterans' Affairs or the

30  executive director's designee. The executive director of the

31  State Board of Administration shall be the chief executive

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 1  officer of the corporation and shall direct and supervise the

 2  administrative affairs of the corporation and shall control,

 3  direct, and supervise the operation of the corporation.  The

 4  corporation shall also have such other officers as may be

 5  determined by the board of directors.

 6         Section 555.  Section 517.1205, Florida Statutes, is

 7  amended to read:

 8         517.1205  Registration of associated persons specific

 9  as to securities dealer, investment adviser, or federal

10  covered adviser identified at time of registration

11  approval.--Inasmuch as this chapter is intended to protect

12  investors in securities offerings and other investment

13  transactions regulated by that chapter, its provisions are to

14  be construed to require full and fair disclosure of all, but

15  only, those matters material to the investor's evaluation of

16  the offering or other transaction.  It should, furthermore, be

17  construed to impose the standards provided by law on all those

18  seeking to participate in the state's securities industry

19  through registration as a securities dealer, investment

20  adviser, or associated person.  To this end, it is declared to

21  be the intent of the Legislature that the registration of

22  associated persons required by law is specific to the

23  securities dealer, investment adviser, or federal covered

24  adviser identified at the time such registration is approved.

25  Notwithstanding any interpretation of law to the contrary, the

26  historical practice of the department of Banking and Finance,

27  reflected in its rules, that requires a new application for

28  registration from a previously registered associated person

29  when that person seeks to be associated with a new securities

30  dealer or investment adviser is hereby ratified and approved

31  as consistent with legislative intent.  It is, finally,

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 1  declared to be the intent of the Legislature that while

 2  approval of an application for registration of a securities

 3  dealer, investment adviser, associated person, or branch

 4  office requires a finding of the applicant's good repute and

 5  character, such finding is precluded by a determination that

 6  the applicant may be denied registration on grounds provided

 7  by law.

 8         Section 556.  Paragraph (a) of subsection (1) of

 9  section 517.131, Florida Statutes, is amended to read:

10         517.131  Securities Guaranty Fund.--

11         (1)(a)  The Chief Financial Officer Treasurer shall

12  establish a Securities Guaranty Fund.  An amount not exceeding

13  20 percent of all revenues received as assessment fees

14  pursuant to s. 517.12(10) and (11) for dealers and investment

15  advisers or s. 517.1201 for federal covered advisers and an

16  amount not exceeding 10 percent of all revenues received as

17  assessment fees pursuant to s. 517.12(10) and (11) for

18  associated persons shall be allocated to the fund.  An

19  additional amount not exceeding 3.5 percent of all revenues

20  received as assessment fees for associated persons pursuant to

21  s. 517.12(10) and (11) shall be allocated to the Securities

22  Guaranty Fund but only after the department determines, by

23  final order, that sufficient funds have been allocated to the

24  fund pursuant to s. 517.1203 to satisfy all valid claims filed

25  in accordance with s. 517.1203(2) and after all amounts

26  payable under any service contract entered into by the

27  department pursuant to s. 517.1204, and all notes, bonds,

28  certificates of indebtedness, other obligations, or evidences

29  of indebtedness secured by such notes, bonds, certificates of

30  indebtedness, or other obligations, have been paid or

31  provision has been made for the payment of such amounts,

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 1  notes, bonds, certificates of indebtedness, other obligations,

 2  or evidences of indebtedness. This assessment fee shall be

 3  part of the regular license fee and shall be transferred to or

 4  deposited in the Securities Guaranty Fund.

 5         Section 557.  Subsection (10) of section 517.141,

 6  Florida Statutes, is amended to read:

 7         517.141  Payment from the fund.--

 8         (10)  All payments and disbursements made from the

 9  Securities Guaranty Fund shall be made by the Chief Financial

10  Officer Treasurer upon a voucher signed by the Comptroller, as

11  head of the department, or such agent as she or he may

12  designate.

13         Section 558.  Section 517.151, Florida Statutes, is

14  amended to read:

15         517.151  Investments of the fund.--The funds of the

16  Securities Guaranty Fund shall be invested by the Chief

17  Financial Officer Treasurer under the same limitations as

18  other state funds, and the interest earned thereon shall be

19  deposited to the credit of the fund and available for the same

20  purpose as other moneys deposited in the Securities Guaranty

21  Fund.

22         Section 559.  Paragraph (b) of subsection (1) of

23  section 518.115, Florida Statutes, is amended to read:

24         518.115  Power of fiduciary or custodian to deposit

25  securities in a central depository.--

26         (1)

27         (b)  A bank or a trust company so depositing securities

28  with a clearing corporation shall be subject to such rules and

29  regulations with respect to the making and maintenance of such

30  deposit as, in the case of state-chartered institutions, the

31  Department of Financial Services Banking and Finance and, in

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 1  the case of national banking associations, the Comptroller of

 2  the Currency may from time to time issue.

 3         Section 560.  Paragraph (b) of subsection (1) of

 4  section 518.116, Florida Statutes, is amended to read:

 5         518.116  Power of certain fiduciaries and custodians to

 6  deposit United States Government and agency securities with a

 7  Federal Reserve bank.--

 8         (1)

 9         (b)  A bank or trust company so depositing securities

10  with a Federal Reserve Bank shall be subject to such rules and

11  regulations with respect to the making and maintenance of such

12  deposits as, in the case of state-chartered institutions, the

13  Department of Financial Services Banking and Finance and, in

14  the case of national banking associations, the Comptroller of

15  the Currency may from time to time issue.  The records of such

16  bank or trust company shall at all times show the ownership of

17  the securities held in such account.

18         Section 561.  Subsections (1), (3), and (4), paragraphs

19  (b), (c), (d), and (e) of subsection (5), and subsections (6),

20  (7), and (9) of section 519.101, Florida Statutes, are amended

21  to read:

22         519.101  Florida equity exchange feasibility study;

23  structure, operation, and regulation.--

24         (1)  There may be created one or more Florida equity

25  exchanges, with one or more offices each, upon a determination

26  by the Chief Financial Officer Comptroller that each such

27  exchange has a reasonable promise of successful operation,

28  will promote economic development, will produce net economic

29  benefits in the state, and will not expose the public to undue

30  risk of financial loss.  This determination shall be based on

31  the results of a feasibility study concerning the possible

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 1  structure, operation, and regulation of each such exchange, to

 2  be carried out under the supervision of the Chief Financial

 3  Officer Comptroller.  The Secretary of Commerce shall provide

 4  the Chief Financial Officer Comptroller any needed advice on

 5  economic development aspects of the feasibility study.  Said

 6  feasibility study shall evaluate to what extent securities

 7  laws may limit the transferability of investments in which any

 8  exchange would deal; to what extent companies financed through

 9  securities in which the exchange would deal would prefer a

10  stable group of investors; to what extent the particular

11  investment objectives of potential participants in any

12  exchange might be inconsistent with an exchange operation; and

13  the possibility that the frequency of investment opportunities

14  of the type in which an exchange would deal would be too low

15  to economically operate any exchange.  The determination of

16  the Chief Financial Officer Comptroller shall constitute a

17  final order as defined in s. 120.52 and shall be subject to

18  the provisions of chapter 120. Nothing in this section,

19  however, shall be construed to require the expenditure of

20  state funds for the purpose of conducting any such feasibility

21  study.  For the purposes of this section, the term "exchange"

22  shall apply to any such Florida equity exchange proposed or

23  created under this section.

24         (3)  Within 30 days following such determination, a

25  committee shall be appointed to write the constitution and

26  bylaws of the exchange.  The Chief Financial Officer

27  Comptroller may provide technical assistance to the committee

28  on the development of the constitution and bylaws of the

29  exchange.  The committee shall consist of 15 members, 11

30  members to be appointed by the Governor, 2 members to be

31  appointed by the Speaker of the House of Representatives, and

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 1  2 members to be appointed by the President of the Senate.  The

 2  chair shall be elected by a majority of the committee.  The

 3  committee shall transmit such proposed constitution, bylaws,

 4  and other recommendations for the approval of the Chief

 5  Financial Officer Comptroller no later than 90 days following

 6  the first meeting of the committee.  In reviewing the

 7  constitution and the bylaws of the exchange, as well as any

 8  other recommendations made to the Chief Financial Officer

 9  Comptroller by the committee, the Chief Financial Officer

10  Comptroller shall consider whether such constitution, bylaws,

11  and recommendations are reasonably consistent with the public

12  interest and the efficient functioning of the exchange.  The

13  Chief Financial Officer Comptroller shall approve the

14  constitution and bylaws of the exchange if he or she finds

15  that they specifically describe the types of business that the

16  exchange will conduct, that such business activities are not

17  inconsistent with state or federal law, that the form of

18  business organization of the exchange complies with statutory

19  requirements, and that the interest of owners or members of

20  the exchange would be adequately protected.  The submission of

21  the proposed constitution and bylaws to the Chief Financial

22  Officer Comptroller shall be deemed an application for a

23  license and shall be subject to the provisions of s.

24  120.80(9).

25         (4)  The exchange shall have full authority to function

26  60 days after its constitution and bylaws are approved by the

27  Chief Financial Officer Comptroller.  The initial Board of

28  Governors of the exchange shall consist of the members of the

29  committee who shall serve until the first election pursuant to

30  the constitution and bylaws.  If the constitution and bylaws

31  are disapproved by the Chief Financial Officer Comptroller,

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 1  the committee, in consultation with the Chief Financial

 2  Officer Comptroller, shall have 60 days from the date of such

 3  disapproval within which to submit an acceptable constitution

 4  and bylaws.

 5         (5)  The constitution and bylaws of the exchange shall

 6  include provision that:

 7         (b)  The principal offices of each exchange and the

 8  principal offices of its members shall be located within this

 9  state for the purpose of conducting the type of business

10  described in subsection (2).  Any exchange may have such other

11  offices around the state as it deems necessary from time to

12  time, subject to a determination by the Chief Financial

13  Officer Comptroller that such additional offices will be

14  necessary for the efficient operation of the exchange and will

15  be in the public interest.

16         (c)  All members and applicants for membership on the

17  exchange shall submit all financial information reasonably

18  required by the Chief Financial Officer Comptroller.

19         (d)  The exchange shall establish or participate in a

20  security fund which shall be capitalized or underwritten in

21  such form and amount as will reasonably protect persons

22  transacting business through the exchange from any harm or

23  loss occasioned by the insolvency of any member of the

24  exchange.  The formation of such security fund and the

25  adequacy of the financial security provided thereby shall be

26  subject to the approval of the Department of Financial

27  Services Banking and Finance based upon the types and amounts

28  of transactions effected through the facilities of the

29  exchange.

30         (e)  Rules shall be adopted prescribing eligibility for

31  membership and the voting power, duties, and rights to

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 1  participate in the conduct and management of the affairs of

 2  the exchange by the members thereof, such rights and duties to

 3  include, without limitation, the manner and form of conducting

 4  business, financial stability requirements, dues, membership

 5  fees, resolution of dispute mechanisms, and all other matters

 6  necessary or appropriate to conduct any business permitted

 7  herein; however, such rules shall not impose any limit on the

 8  number of members of any such exchange.  Any amendments to the

 9  constitution and bylaws shall be subject to the approval of

10  the Chief Financial Officer Comptroller.

11         (6)  If the exchange contemplated by this section is

12  established, the Chief Financial Officer Comptroller shall

13  furnish the chairs of the finance and taxation committees of

14  the Legislature with copies of its constitution and bylaws.

15  Upon receipt of the constitution and bylaws, the Legislature

16  shall consider what tax policy and tax exemptions are needed

17  to facilitate successful operation of the exchange.

18         (7)  If the exchange contemplated by this section is

19  finally established, the Chief Financial Officer Comptroller

20  shall forthwith adopt rules providing for the reimbursement by

21  the exchange or any member thereof of the actual costs

22  incurred by the Chief Financial Officer Comptroller in

23  connection with the regulation and supervision of the

24  exchange.  As used in this section, "actual costs" means all

25  direct and indirect costs and expenses incurred by the Chief

26  Financial Officer Comptroller in connection with the exchange

27  including, without limitation, general administrative costs,

28  travel expenses, salaries, and other benefits given to persons

29  involved in the regulation and supervision of the exchange.

30  The Chief Financial Officer Comptroller shall have the power

31  to make any allocations that are deemed reasonable and

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 1  necessary and may require the exchange or any members to pay

 2  interim assessments related to estimated final assessments.

 3         (9)  The Chief Financial Officer Comptroller may

 4  establish limitations on investments in members of the

 5  exchange by any person or company, consistent with the public

 6  interest and the efficient functioning of the exchange.

 7         Section 562.  Subsection (3) of section 520.02, Florida

 8  Statutes, is amended to read:

 9         520.02  Definitions.--In this act, unless the context

10  or subject matter otherwise requires:

11         (3)  "Department" means the Department of Financial

12  Services Banking and Finance.

13         Section 563.  Subsection (4) of section 520.07, Florida

14  Statutes, is amended to read:

15         520.07  Requirements and prohibitions as to retail

16  installment contracts.--

17         (4)  The amount, if any, included for insurance which

18  may be purchased by the holder of the retail installment

19  contract may not exceed the applicable premiums chargeable in

20  accordance with the rates filed with the Department of

21  Financial Services Insurance.  If dual interest insurance on

22  the motor vehicle is purchased by the holder, it shall, within

23  30 days after execution of the retail installment contract,

24  send or cause to be sent to the buyer a policy or policies or

25  certificate of insurance, written by an insurance company

26  authorized to do business in this state, clearly setting forth

27  the amount of the premium, the kind or kinds of insurance, the

28  coverages, and all the terms, exceptions, limitations,

29  restrictions, and conditions of the contract or contracts of

30  insurance.  Nothing in this act shall impair or abrogate the

31  right of a buyer, as defined herein, to procure insurance from

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 1  an agent and company of his or her own selection as provided

 2  by the insurance laws of this state; and nothing contained in

 3  this act shall modify, amend, alter, or repeal any of the

 4  insurance laws of the state, including any such laws enacted

 5  by the 1957 Legislature.

 6         Section 564.  Subsection (3) of section 520.31, Florida

 7  Statutes, is amended to read:

 8         520.31  Definitions.--Unless otherwise clearly

 9  indicated by the context, the following words when used in

10  this act, for the purposes of this act, shall have the

11  meanings respectively ascribed to them in this section:

12         (3)  "Department" means the Department of Financial

13  Services Banking and Finance.

14         Section 565.  Subsection (8) of section 520.34, is

15  amended to read:

16         520.34  Retail installment contracts.--

17         (8)  The seller under any retail installment contract

18  shall, within 30 days after execution of the contract, deliver

19  or mail or cause to be delivered or mailed to the buyer at his

20  or her aforesaid address any policy or policies of insurance

21  the seller has agreed to purchase in connection therewith, or

22  in lieu thereof a certificate or certificates of such

23  insurance. The amount, if any, included for insurance shall

24  not exceed the applicable premiums chargeable in accordance

25  with the rates filed with the Department of Financial Services

26  Insurance; if any such insurance is canceled, unearned

27  insurance premium refunds and any unearned finance charges

28  thereon received by the holder shall, at his or her option, be

29  credited to the final maturing installments of the contract or

30  paid to the buyer, except to the extent applied toward the

31  payment for similar insurance protecting the interests of the

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 1  seller and the holder or either of them.  The finance charge

 2  on the original transaction shall be separately computed:

 3         (a)  With the premium for the canceled or adjusted

 4  insurance included in the "amount financed"; and

 5         (b)  With the premium for the canceled insurance or the

 6  amount of the premium adjustment excluded from the "amount

 7  financed."

 8  

 9  The difference in the finance charge resulting from these

10  computations shall be the portion of the finance charge

11  attributable to the canceled or adjusted insurance, and the

12  unearned portion thereof shall be determined by the use of the

13  rule of 78ths.  "Cancellation of insurance" occurs at such

14  time as the seller or holder receives from the insurance

15  carrier the proper refund of unearned insurance premiums.

16  Nothing in this act shall impair or abrogate the right of a

17  buyer to procure insurance from an agent and company of his or

18  her own selection, as provided by the insurance laws of this

19  state; and nothing contained in this act shall modify, alter,

20  or repeal any of the insurance laws of this state.

21         Section 566.  Subsection (6) of section 520.61, Florida

22  Statutes, is amended to read:

23         520.61  Definitions.--As used in this act:

24         (6)  "Department" means the Department of Financial

25  Services Banking and Finance.

26         Section 567.  Subsection (3) of section 520.76, Florida

27  Statutes, is amended to read:

28         520.76  Insurance provisions, procurement, rates.--

29         (3)  The amount, if any, included for such insurance

30  shall not exceed the applicable premiums chargeable in

31  accordance with rates filed with the Department of Financial

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 1  Services Insurance.  If any such group credit life or other

 2  insurance is canceled, the refund for unearned insurance

 3  premiums received or receivable by the holder of the home

 4  improvement contract or the excess of the amount included in

 5  the contract for insurance over the premiums paid or payable

 6  by the holder of the contract together with, in either case,

 7  the unearned portion of the finance charge or other interest

 8  applicable thereto shall be credited to the final maturing

 9  installments of the home improvement contract.  However, no

10  such credit need be made if the amount would be less than $1.

11         Section 568.  Section 520.998, Florida Statutes, is

12  amended to read:

13         520.998  Regulatory Trust Fund.--All fees, charges, and

14  fines collected by the department pursuant to this chapter

15  shall be deposited in the State Treasury to the credit of the

16  Banking and Finance Regulatory Trust Fund under the

17  department.

18         Section 569.  Subsection (7) of section 526.141,

19  Florida Statutes, is amended to read:

20         526.141  Self-service gasoline stations; attendants;

21  regulations.--

22         (7)  The Chief Financial Officer Insurance

23  Commissioner, under her or his powers, duties, and functions

24  as State Fire Marshal, shall adopt promulgate rules and

25  regulations for the administration and enforcement of this

26  section, except for subsection (5) which shall be administered

27  and enforced by the Department of Agriculture and Consumer

28  Services.

29         Section 570.  Subsection (2) of section 537.003,

30  Florida Statutes, is amended to read:

31  

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 1         537.003  Definitions.--As used in this act, unless the

 2  context otherwise requires:

 3         (2)  "Department" means the Department of Financial

 4  Services Banking and Finance.

 5         Section 571.  Subsection (10) of section 537.004,

 6  Florida Statutes, is amended to read:

 7         537.004  License required; license fees.--

 8         (10)  All moneys collected by the department under this

 9  act shall be deposited into the Banking and Finance Regulatory

10  Trust Fund of the Department of Banking and Finance.

11         Section 572.  Subsection (2) of section 537.011,

12  Florida Statutes, is amended to read:

13         537.011  Title loan charges.--

14         (2)  The annual percentage rate that may be charged for

15  a title loan may equal, but not exceed, the annual percentage

16  rate that must be computed and disclosed as required by the

17  federal Truth in Lending Act and Regulation Z of the Board of

18  Governors of the Federal Reserve System. The maximum annual

19  percentage rate of interest that may be charged is 12 times

20  the maximum monthly rate, and the maximum monthly rate must be

21  computed on the basis of one-twelfth of the annual rate for

22  each full month. The department of Banking and Finance shall

23  establish by rule the rate for each day in a fraction of a

24  month when the period for which the charge is computed is more

25  or less than 1 month.

26         Section 573.  Subsection (1) of section 548.066,

27  Florida Statutes, is amended to read:

28         548.066  Ticket refunds.--

29         (1)  Upon the postponement, substitution of either

30  participant, or cancellation of the main event or the entire

31  program of matches, the promoter shall refund the full

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 1  purchase price of a ticket to each person presenting a ticket

 2  for a refund within 30 days after the scheduled date of the

 3  event.  Within 10 days after the expiration of the 30-day

 4  period, the promoter shall pay all unclaimed ticket receipts

 5  to the commission.  The commission shall hold the funds for 1

 6  year and make refunds during such time to any person

 7  presenting a ticket for a refund. Thereafter, the commission

 8  shall pay all remaining moneys from the ticket sale to the

 9  Chief Financial Officer State Treasurer for deposit into the

10  General Revenue Fund.

11         Section 574.  Section 548.077, Florida Statutes, is

12  amended to read:

13         548.077  Florida State Boxing Commission; collection

14  and disposition of moneys.--All fees, fines, forfeitures, and

15  other moneys collected under the provisions of this chapter

16  shall be paid by the commission to the Chief Financial Officer

17  State Treasurer who, after the expenses of the commission are

18  paid, shall deposit them in the Professional Regulation Trust

19  Fund to be used for the administration and operation of the

20  commission and to enforce the laws and rules under its

21  jurisdiction.  In the event the unexpended balance of such

22  moneys collected under the provisions of this chapter exceeds

23  $250,000, any excess of that amount shall be deposited in the

24  General Revenue Fund.

25         Section 575.  Subsection (10) of section 550.0251,

26  Florida Statutes, is amended to read:

27         550.0251  The powers and duties of the Division of

28  Pari-mutuel Wagering of the Department of Business and

29  Professional Regulation.--The division shall administer this

30  chapter and regulate the pari-mutuel industry under this

31  chapter and the rules adopted pursuant thereto, and:

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 1         (10)  The division may impose an administrative fine

 2  for a violation under this chapter of not more than $1,000 for

 3  each count or separate offense, except as otherwise provided

 4  in this chapter, and may suspend or revoke a permit, a

 5  pari-mutuel license, or an occupational license for a

 6  violation under this chapter.  All fines imposed and collected

 7  under this subsection must be deposited with the Chief

 8  Financial Officer Treasurer to the credit of the General

 9  Revenue Fund.

10         Section 576.  Paragraph (b) of subsection (9) of

11  section 550.054, Florida Statutes, is amended to read:

12         550.054  Application for permit to conduct pari-mutuel

13  wagering.--

14         (9)

15         (b)  The division may revoke or suspend any permit or

16  license issued under this chapter upon the willful violation

17  by the permitholder or licensee of any provision of this

18  chapter or of any rule adopted under this chapter. In lieu of

19  suspending or revoking a permit or license, the division may

20  impose a civil penalty against the permitholder or licensee

21  for a violation of this chapter or any rule adopted by the

22  division. The penalty so imposed may not exceed $1,000 for

23  each count or separate offense. All penalties imposed and

24  collected must be deposited with the Chief Financial Officer

25  Treasurer to the credit of the General Revenue Fund.

26         Section 577.  Paragraph (a) of subsection (1) and

27  subsection (5) of section 550.0951, Florida Statutes, are

28  amended to read:

29         550.0951  Payment of daily license fee and taxes.--

30         (1)(a)  DAILY LICENSE FEE.--Each person engaged in the

31  business of conducting race meetings or jai alai games under

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 1  this chapter, hereinafter referred to as the "permitholder,"

 2  "licensee," or "permittee," shall pay to the division, for the

 3  use of the division, a daily license fee on each live or

 4  simulcast pari-mutuel event of $100 for each horserace and $80

 5  for each dograce and $40 for each jai alai game conducted at a

 6  racetrack or fronton licensed under this chapter.  In addition

 7  to the tax exemption specified in s. 550.09514(1) of $360,000

 8  or $500,000 per greyhound permitholder per state fiscal year,

 9  each greyhound permitholder shall receive in the current state

10  fiscal year a tax credit equal to the number of live greyhound

11  races conducted in the previous state fiscal year times the

12  daily license fee specified for each dograce in this

13  subsection applicable for the previous state fiscal year.

14  This tax credit and the exemption in s. 550.09514(1) shall be

15  applicable to any tax imposed by this chapter or the daily

16  license fees imposed by this chapter except during any charity

17  or scholarship performances conducted pursuant to s. 550.0351.

18  Each permitholder shall pay daily license fees not to exceed

19  $500 per day on any simulcast races or games on which such

20  permitholder accepts wagers regardless of the number of

21  out-of-state events taken or the number of out-of-state

22  locations from which such events are taken. This license fee

23  shall be deposited with the Chief Financial Officer Treasurer

24  to the credit of the Pari-mutuel Wagering Trust Fund.

25         (5)  PAYMENT AND DISPOSITION OF FEES AND

26  TAXES.--Payment for the admission tax, tax on handle, and the

27  breaks tax imposed by this section shall be paid to the

28  division. The division shall deposit these sums with the Chief

29  Financial Officer Treasurer, to the credit of the Pari-mutuel

30  Wagering Trust Fund, hereby established. The permitholder

31  shall remit to the division payment for the daily license fee,

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 1  the admission tax, the tax on handle, and the breaks tax. Such

 2  payments shall be remitted by 3 p.m. Wednesday of each week

 3  for taxes imposed and collected for the preceding week ending

 4  on Sunday. Permitholders shall file a report under oath by the

 5  5th day of each calendar month for all taxes remitted during

 6  the preceding calendar month.  Such payments shall be

 7  accompanied by a report under oath showing the total of all

 8  admissions, the pari-mutuel wagering activities for the

 9  preceding calendar month, and such other information as may be

10  prescribed by the division.

11         Section 578.  Paragraph (a) of subsection (3) of

12  section 550.125, Florida Statutes, is amended to read:

13         550.125  Uniform reporting system; bond requirement.--

14         (3)(a)  Each permitholder to which a license is granted

15  under this chapter, at its own cost and expense, must, before

16  the license is delivered, give a bond in the penal sum of

17  $50,000 payable to the Governor of the state and her or his

18  successors in office, with a surety or sureties to be approved

19  by the division and the Chief Financial Officer Treasurer,

20  conditioned to faithfully make the payments to the Chief

21  Financial Officer Treasurer in her or his capacity as

22  treasurer of the division; to keep its books and records and

23  make reports as provided; and to conduct its racing in

24  conformity with this chapter.  When the greatest amount of tax

25  owed during any month in the prior state fiscal year, in which

26  a full schedule of live racing was conducted, is less than

27  $50,000, the division may assess a bond in a sum less than

28  $50,000. The division may review the bond for adequacy and

29  require adjustments each fiscal year.  The division has the

30  authority to adopt rules to implement this paragraph and

31  establish guidelines for such bonds.

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 1         Section 579.  Section 550.135, Florida Statutes, is

 2  amended to read:

 3         550.135  Division of moneys derived under this

 4  law.--All moneys that are deposited with the Chief Financial

 5  Officer Treasurer to the credit of the Pari-mutuel Wagering

 6  Trust Fund shall be distributed as follows:

 7         (1)  The daily license fee revenues collected pursuant

 8  to s. 550.0951(1) shall be used to fund the operating cost of

 9  the division and to provide a proportionate share of the

10  operation of the office of the secretary and the Division of

11  Administration of the Department of Business and Professional

12  Regulation; however, other collections in the Pari-mutuel

13  Wagering Trust Fund may also be used to fund the operation of

14  the division in accordance with authorized appropriations.

15         (2)  All unappropriated funds in excess of $3.5 million

16  in the Pari-mutuel Wagering Trust Fund shall be deposited to

17  the Chief Financial Officer Treasurer to the credit of the

18  General Revenue Fund.

19         Section 580.  Subsection (3) of section 550.1645,

20  Florida Statutes, is amended to read:

21         550.1645  Escheat to state of abandoned interest in or

22  contribution to pari-mutuel pools.--

23         (3)  All money or other property that has escheated to

24  and become the property of the state as provided herein, and

25  which is held by such licensee authorized to conduct

26  pari-mutuel pools in this state, shall be paid by such

27  licensee to the Chief Financial Officer Treasurer annually

28  within 60 days after the close of the race meeting of the

29  licensee.  Such moneys so paid by the licensee to the Chief

30  Financial Officer Treasurer shall be deposited in the State

31  School Fund to be used for the support and maintenance of

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 1  public free schools as required by s. 6, Art. IX of the State

 2  Constitution.

 3         Section 581.  Subsection (14) of section 552.081,

 4  Florida Statutes, is amended to read:

 5         552.081  Definitions.--As used in this chapter:

 6         (14)  "Division" means the Division of State Fire

 7  Marshal of the Department of Financial Services Insurance.

 8         Section 582.  Subsection (2) of section 552.161,

 9  Florida Statutes, is amended to read:

10         552.161  Administrative fines.--

11         (2)  All such fines, monetary penalties, and costs

12  received by the division in connection with this chapter shall

13  be deposited in the Insurance Commissioner's Regulatory Trust

14  Fund.

15         Section 583.  Subsection (3) of section 552.21, Florida

16  Statutes, is amended to read:

17         552.21  Confiscation and disposal of explosives.--

18         (3)  Costs incurred in the confiscation and disposal of

19  such explosives shall be paid from the Insurance

20  Commissioner's Regulatory Trust Fund.

21         Section 584.  Section 552.26, Florida Statutes, is

22  amended to read:

23         552.26  Administration of chapter; personnel; fees to

24  be deposited in Insurance Commissioner's Regulatory Trust

25  Fund.--

26         (1)  The division is authorized to employ such persons

27  as it may deem qualified and necessary, and incur such other

28  expenses as may be required, in connection with the

29  administration of this chapter.

30         (2)  All fees collected for licenses and permits and

31  competency examination filing fees required by this chapter

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 1  shall be deposited in the Insurance Commissioner's Regulatory

 2  Trust Fund and are hereby appropriated for the use of the

 3  division in the administration of this chapter.

 4         Section 585.  Subsection (4) of section 553.72, Florida

 5  Statutes, is amended to read:

 6         553.72  Intent.--

 7         (4)  It is the intent of the Legislature that the

 8  Florida Fire Prevention Code and the Life Safety Code of this

 9  state be adopted, modified, updated, interpreted, and

10  maintained by the Department of Financial Services Insurance

11  in accordance with ss. 120.536(1) and 120.54 and included by

12  reference as sections in the Florida Building Code.

13         Section 586.  Paragraph (c) of subsection (1) of

14  section 553.73, Florida Statutes, is amended to read:

15         553.73  Florida Building Code.--

16         (1)

17         (c)  The Florida Fire Prevention Code and the Life

18  Safety Code shall be referenced in the Florida Building Code,

19  but shall be adopted, modified, revised, or amended,

20  interpreted, and maintained by the Department of Financial

21  Services Insurance by rule adopted pursuant to ss. 120.536(1)

22  and 120.54. The Florida Building Commission may not adopt a

23  fire prevention or lifesafety code, and nothing in the Florida

24  Building Code shall affect the statutory powers, duties, and

25  responsibilities of any fire official or the Department of

26  Financial Services Insurance.

27         Section 587.  Paragraph (k) of subsection (1) of

28  section 553.74, Florida Statutes, is amended to read:

29         553.74  Florida Building Commission.--

30         (1)  The Florida Building Commission is created and

31  shall be located within the Department of Community Affairs

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 1  for administrative purposes. Members shall be appointed by the

 2  Governor subject to confirmation by the Senate. The commission

 3  shall be composed of 23 members, consisting of the following:

 4         (k)  One member who represents the Department of

 5  Financial Services Insurance.

 6         Section 588.  Subsection (16) of section 553.79,

 7  Florida Statutes, is amended to read:

 8         553.79  Permits; applications; issuance; inspections.--

 9         (16)  Notwithstanding any other provision of law, state

10  agencies responsible for the construction, erection,

11  alteration, modification, repair, or demolition of public

12  buildings, or the regulation of public and private buildings,

13  structures, and facilities, shall be subject to enforcement of

14  the Florida Building Code by local jurisdictions. This

15  subsection applies in addition to the jurisdiction and

16  authority of the Department of Financial Services Insurance to

17  inspect state-owned buildings. This subsection does not apply

18  to the jurisdiction and authority of the Department of

19  Agriculture and Consumer Services to inspect amusement rides

20  or the Department of Financial Services Insurance to inspect

21  state-owned buildings and boilers.

22         Section 589.  Subsection (6) of section 554.1021,

23  Florida Statutes, is amended to read:

24         554.1021  Definitions.--As used in ss.

25  554.1011-554.115:

26         (6)  "Department" means the Department of Financial

27  Services Insurance.

28         Section 590.  Subsection (1) of section 554.105,

29  Florida Statutes, is amended to read:

30         554.105  Chief inspector.--

31  

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 1         (1)  The Chief Financial Officer Insurance Commissioner

 2  and Treasurer shall appoint a chief inspector, who shall have

 3  not less than 5 years' experience in the construction,

 4  installation, inspection, operation, maintenance, or repair of

 5  high pressure, high temperature water boilers and who shall

 6  hold a commission from the National Board of Boiler and

 7  Pressure Vessel Inspectors or a certificate of competency from

 8  the department.

 9         Section 591.  Subsection (3) of section 554.111,

10  Florida Statutes, is amended to read:

11         554.111  Fees.--

12         (3)  The chief inspector shall deposit all fees

13  received pursuant to ss. 554.1011-554.115 into the Insurance

14  Commissioner's Regulatory Trust Fund.

15         Section 592.  Paragraph (b) of subsection (2) and

16  subsection (3) of section 559.10, Florida Statutes, are

17  amended to read:

18         559.10  Definition; "budget planning."--

19         (2)  The term "budget planning" does not include the

20  following:

21         (b)  Other activities defined by rule of the Department

22  of Financial Services Banking and Finance as not within the

23  prohibition of this part, provided such rule is adopted after

24  a finding that consumers are adequately protected in the

25  activity and that its prohibition is not required in the

26  public interest.

27         (3)  The Department of Financial Services Banking and

28  Finance may adopt rules as necessary to implement and enforce

29  this part.

30         Section 593.  Subsection (5) of section 559.543,

31  Florida Statutes, is amended to read:

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 1         559.543  Definitions.--As used in this part:

 2         (5)  "Department" means the Department of Financial

 3  Services Banking and Finance.

 4         Section 594.  Subsection (1) of section 559.545,

 5  Florida Statutes, is amended to read:

 6         559.545  Registration of commercial collection

 7  agencies; procedure.--Any person who wishes to register as a

 8  commercial collection agency in compliance with this part

 9  shall do so on forms furnished by the department.  Any renewal

10  of registration shall be made between October 1 and December

11  31 of each year.  In registering or renewing a registration as

12  required by this part, each commercial collection agency shall

13  furnish to the department a registration fee, information, and

14  surety bond, as follows:

15         (1)  The registrant shall pay to the department a

16  registration fee of $500.  All amounts collected shall be

17  deposited to the credit of the Banking and Finance Regulatory

18  Trust Fund of the department.

19         Section 595.  Subsection (4) of section 559.55, Florida

20  Statutes, is amended to read:

21         559.55  Definitions.--The following terms shall, unless

22  the context otherwise indicates, have the following meanings

23  for the purpose of this part:

24         (4)  "Department" means the Department of Financial

25  Services Banking and Finance.

26         Section 596.  Subsection (1) of section 559.555,

27  Florida Statutes, is amended to read:

28         559.555  Registration of consumer collection agencies;

29  procedure.--Any person required to register as a consumer

30  collection agency shall furnish to the department the

31  registration fee and information as follows:

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 1         (1)  The registrant shall pay to the department a

 2  registration fee in the amount of $200.  All amounts collected

 3  shall be deposited by the department to the credit of the

 4  Banking and Finance Regulatory Trust Fund of the department.

 5         Section 597.  Subsection (4) of section 559.725,

 6  Florida Statutes, is amended to read:

 7         559.725  Consumer complaints; administrative duties.--

 8         (4)  The division shall furnish a form to each

 9  complainant whose complaint concerns an alleged violation of

10  s. 559.72 by a consumer collection agency.  Such form may be

11  filed with the Department of Financial Services Banking and

12  Finance.  The form shall identify the accused consumer

13  collection agency and provide for the complainant's summary of

14  the nature of the alleged violation and facts which allegedly

15  support the complaint.  The form shall include a provision for

16  the complainant to state under oath before a notary public

17  that the allegations therein made are true.

18         Section 598.  Subsection (6) of section 559.730,

19  Florida Statutes, is amended to read:

20         559.730  Administrative remedies.--

21         (6)  Any administrative fine imposed under this part

22  shall be payable to the department.  The department shall

23  maintain an appropriate record and shall deposit such fine

24  into the Banking and Finance Regulatory Trust Fund of the

25  department.

26         Section 599.  Subsection (2) of section 559.928,

27  Florida Statutes, is amended to read:

28         559.928  Registration.--

29         (2)  Registration fees shall be $300 per year per

30  registrant.  All amounts collected shall be deposited by the

31  Chief Financial Officer Treasurer to the credit of the General

                                 565

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 1  Inspection Trust Fund of the Department of Agriculture and

 2  Consumer Services pursuant to s. 570.20, for the sole purpose

 3  of administration of this part.

 4         Section 600.  Subsection (1) of section 560.102,

 5  Florida Statutes, is amended to read:

 6         560.102  Purpose; application.--The purposes of the

 7  code are to:

 8         (1)  Provide general regulatory powers to be exercised

 9  by the Department of Financial Services Banking and Finance in

10  relation to the regulation of the money transmitter industry.

11  The code applies to all money transmitters transacting

12  business in this state and to the enforcement of all laws

13  relating to the money transmitter industry.

14         Section 601.  Subsection (7) of section 560.103,

15  Florida Statutes, is amended to read:

16         560.103  Definitions.--As used in the code, unless the

17  context otherwise requires:

18         (7)  "Department" means the Florida Department of

19  Financial Services Banking and Finance.

20         Section 602.  Section 560.119, Florida Statutes, is

21  amended to read:

22         560.119  Deposit of fees and assessments.--The

23  application fees, registration renewal fees, late payment

24  penalties, civil penalties, administrative fines, and other

25  fees or penalties provided for in the code shall, in all

26  cases, be paid directly to the department, which shall deposit

27  such proceeds into the Banking and Finance Regulatory Trust

28  Fund. Each year, the Legislature shall appropriate from the

29  trust fund to the department sufficient moneys to pay the

30  department's costs for administration of the code. The Banking

31  

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 1  and Finance Regulatory Trust Fund is subject to the service

 2  charge imposed pursuant to chapter 215.

 3         Section 603.  Section 560.4041, Florida Statutes, is

 4  amended to read:

 5         560.4041  Database for deferred presentment providers;

 6  public-records exemption.--The identifying information

 7  contained in the database for deferred presentment providers,

 8  which is authorized under s. 560.404, is confidential and

 9  exempt from s. 119.07(1), and s. 24(a), Art. I of the State

10  Constitution, except that the identifying information in the

11  database may be accessed by deferred presentment providers to

12  verify whether any deferred presentment transactions are

13  outstanding for a particular person and by the Department of

14  Financial Services Banking and Finance for the purpose of

15  maintaining the database. This section is subject to the Open

16  Government Sunset Review Act of 1995 in accordance with s.

17  119.15, and shall stand repealed October 2, 2006, unless

18  reviewed and saved from repeal through reenactment by the

19  Legislature.

20         Section 604.  Subsection (2) of section 560.408,

21  Florida Statutes, is amended to read:

22         560.408  Legislative intent; report.--

23         (2)  The Comptroller shall submit a report to the

24  President of the Senate and the Speaker of the House of

25  Representatives on January 1, 2003, and the Chief Financial

26  Officer shall submit such a report on January 1, 2004,

27  containing findings and conclusions concerning the

28  effectiveness of this act in preventing fraud, abuse, and

29  other unlawful activity associated with deferred presentment

30  transactions. The report may contain legislative

31  recommendations addressing the prevention of fraud, abuse, and

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 1  other unlawful activity associated with deferred presentment

 2  transactions. Prior to filing the report, the Comptroller and

 3  the Chief Financial Officer shall consult with the Attorney

 4  General for the purpose of including any recommendations or

 5  concerns expressed by the Attorney General.

 6         Section 605.  Section 561.051, Florida Statutes, is

 7  amended to read:

 8         561.051  Reporting requirements of director.--The

 9  director of the division shall promptly report and remit to

10  the Chief Financial Officer Treasurer all taxes and fees

11  collected by him or her hereunder and shall send copies of the

12  reports to the Comptroller.

13         Section 606.  Section 562.44, Florida Statutes, is

14  amended to read:

15         562.44  Donation of forfeited beverages or raw

16  materials to state institutions; sale of forfeited

17  beverages.--Any alcoholic beverage or raw materials used for

18  the manufacture of alcoholic beverages that may be seized and

19  forfeited under any of the provisions of the Beverage Law may,

20  with the approval and consent of the Department of Business

21  and Professional Regulation, be donated to any state-operated

22  or charitable institution that may have a legitimate use

23  therefor in the operation of such institution, or the division

24  may sell such beverage so seized and forfeited to any licensed

25  wholesaler in the state, upon the condition that all federal

26  and state taxes that may be due thereon shall be paid, that

27  such sale shall be made only upon submission by said division

28  of a request for bids to at least five wholesale dealers in

29  the state, and that such sale shall be made to the highest and

30  best bidder therefor. However, if no satisfactory bid from a

31  wholesaler is received, the division may then reject all bids

                                 568

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 1  and sell such beverage so seized and forfeited to any

 2  retailer, licensed in this state to sell such beverage, upon

 3  the condition that all federal and state taxes that may be due

 4  thereon shall have been paid, that such sale shall be made

 5  only upon submission by said division of a request for bids to

 6  at least five retail dealers in the state and that such sale

 7  shall be to the highest and best bidder therefor. All moneys

 8  received from such sales shall be paid by the division to the

 9  Chief Financial Officer State Treasurer for the account of the

10  beverage fund and shall be subject to disbursement in

11  accordance with the law relating thereto.

12         Section 607.  Section 567.08, Florida Statutes, is

13  amended to read:

14         567.08  Refund of unused portion of state license

15  tax.--When any county votes by an election to discontinue

16  permitting the sale of intoxicating liquors, wines, or beer,

17  prior to the date of expiration of any license issued by the

18  state for the sale of intoxicating liquors, wines, or beer in

19  such county, the fee for the unexpired and unused portion of

20  said license shall be refunded to the licensee by warrant

21  drawn by the Chief Financial Officer, State Comptroller on the

22  State Treasurer who shall pay such warrants from any moneys in

23  the State Treasury not otherwise appropriated.

24         Section 608.  Subsections (1) and (2) of section

25  569.205, Florida Statutes, are amended to read:

26         569.205  Department of Business and Professional

27  Regulation Tobacco Settlement Trust Fund.--

28         (1)  The Department of Business and Professional

29  Regulation Tobacco Settlement Trust Fund is hereby created

30  within that department. Funds to be credited to the trust fund

31  shall consist of funds disbursed, by nonoperating transfer,

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 1  from the Department of Financial Services Banking and Finance

 2  Tobacco Settlement Clearing Trust Fund in amounts equal to the

 3  annual appropriations made from this trust fund.

 4         (2)  Notwithstanding the provisions of s. 216.301 and

 5  pursuant to s. 216.351, any unencumbered balance in the trust

 6  fund at the end of any fiscal year and any encumbered balance

 7  remaining undisbursed on December 31 of the same calendar year

 8  shall revert to the Department of Financial Services Banking

 9  and Finance Tobacco Settlement Clearing Trust Fund.

10         Section 609.  Subsection (2) of section 570.13, Florida

11  Statutes, is amended to read:

12         570.13  Salary of commissioner, officers, and

13  employees; expenses.--

14         (2)  The reasonable and necessary travel and other

15  expenses of the commissioner, assistant commissioner, counsel,

16  directors, and other officers and employees of the department,

17  while actually engaged in the performance of their duties,

18  outside of the City of Tallahassee, or if any such officer or

19  employee be in charge of or regularly employed at a branch

20  office of the department, the reasonable and necessary travel

21  and other expenses outside the place such branch office is

22  located, shall be paid from the State Treasury after audit by

23  the Chief Financial Officer Comptroller of vouchers approved

24  by the department in the amount provided in s. 112.061.

25         Section 610.  Subsection (1) of section 570.195,

26  Florida Statutes, is amended to read:

27         570.195  Tobacco farmers; assistance.--

28         (1)  In order to assist Florida tobacco farmers in

29  reducing encumbered debt on stranded investment in equipment,

30  the nonrecurring sum of $2.5 million is appropriated from the

31  Department of Financial Services Banking and Finance Tobacco

                                 570

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 1  Settlement Clearing Trust Fund to the Department of

 2  Agriculture and Consumer Services for the purchase at fair

 3  market value of equipment associated with agricultural

 4  production of tobacco from persons or entities that were using

 5  such equipment for production of tobacco between April 1 and

 6  October 1, 2000, on land within this state and sign a letter

 7  of intent to cease tobacco production upon the development and

 8  implementation of an alternative crop that would provide the

 9  same net revenue and proportional costs as tobacco. The

10  department may adopt rules that, at a minimum, define and

11  describe the equipment to be purchased under this section,

12  prescribe criteria for identifying persons and entities who

13  are eligible to have such equipment purchased by the

14  department, and prescribe procedures to be followed for

15  equipment purchases. From the funds appropriated by this

16  section, the department is authorized to expend such sums as

17  are reasonable and necessary to administer the program.

18         Section 611.  Section 570.20, Florida Statutes, is

19  amended to read:

20         570.20  General Inspection Trust Fund.--All donations

21  and all inspection fees and other funds authorized and

22  received from whatever source in the enforcement of the

23  inspection laws administered by the department shall be paid

24  into the General Inspection Trust Fund of Florida, which is

25  created in the office of the Chief Financial Officer

26  Treasurer.  All expenses incurred in carrying out the

27  provisions of the inspection laws shall be paid from this fund

28  as other funds are paid from the State Treasury.  A percentage

29  of all revenue deposited in this fund, including transfers

30  from any subsidiary accounts, shall be deposited in the

31  General Revenue Fund pursuant to chapter 215, except that

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 1  funds collected for marketing orders shall pay at the rate of

 2  3 percent.

 3         Section 612.  Subsection (6) of section 574.03, Florida

 4  Statutes, is amended to read:

 5         574.03  Warehouseman; licenses and fees.--

 6         (6)  As a prerequisite to the issuance of a license

 7  under the provisions of this section, each applicant shall

 8  furnish evidence to the Department of Agriculture and Consumer

 9  Services that the applicant has in force a standard fire and

10  extended coverage insurance policy for the full market value

11  of the maximum amount of tobacco contained in his or her sales

12  warehouse at any one time during the marketing season for

13  which the license is sought.  The insurance policy shall be

14  written by an insurance company of the warehouseman's choice

15  authorized to transact business in this state, and such

16  insurance coverage shall be approved in form by the Department

17  of Financial Services Insurance, and a copy of the insurance

18  policy shall be filed with the director of the Division of

19  Marketing and Development of the Department of Agriculture and

20  Consumer Services. The policy shall contain an endorsement

21  requiring notification to the director of the Division of

22  Marketing and Development of the Department of Agriculture and

23  Consumer Services by the insurance company at least 10 days

24  prior to cancellation of their intention to cancel the policy.

25         Section 613.  Section 589.06, Florida Statutes, is

26  amended to read:

27         589.06  Warrants for payment of accounts.--Upon the

28  presentation to the Chief Financial Officer Comptroller of any

29  accounts duly approved by the Division of Forestry,

30  accompanied by such itemized vouchers or accounts as shall be

31  required by her or him, the Chief Financial Officer

                                 572

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 1  Comptroller shall audit the same and draw a warrant on the

 2  State Treasurer for the amount for which the account is

 3  audited, payable out of funds to the credit of the division.

 4         Section 614.  Paragraph (a) of subsection (7) of

 5  section 597.010, Florida Statutes, is amended to read:

 6         597.010  Shellfish regulation; leases.--

 7         (7)  SURCHARGE FOR IMPROVEMENT OR REHABILITATION.--A

 8  surcharge of $10 per acre, or any fraction of an acre, per

 9  annum shall be levied upon each lease, other than a perpetual

10  lease granted pursuant to chapter 370 prior to 1985, and

11  deposited into the General Inspection Trust Fund. The purpose

12  of the surcharge is to provide a mechanism to have financial

13  resources immediately available for improvement of lease areas

14  and for cleanup and rehabilitation of abandoned or vacated

15  lease sites.  The department is authorized to adopt rules

16  necessary to carry out the provisions of this subsection.

17         (a)  Moneys in the fund that are not needed currently

18  for cleanup and rehabilitation of abandoned or vacated lease

19  sites shall be deposited with the Chief Financial Officer

20  Treasurer to the credit of the fund and may be invested in

21  such manner as is provided for by statute. Interest received

22  on such investment shall be credited to the fund.

23         Section 615.  Subsections (9) and (10) of section

24  601.10, Florida Statutes, are amended to read:

25         601.10  Powers of the Department of Citrus.--The

26  Department of Citrus shall have and shall exercise such

27  general and specific powers as are delegated to it by this

28  chapter and other statutes of the state, which powers shall

29  include, but shall not be confined to, the following:

30         (9)  When, in the opinion of the Department of Citrus,

31  the tax revenues collected pursuant to this chapter, whether

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 1  allocated for research, advertising or promotion, reserve

 2  funds, advertising incentive plans, or other purposes, are not

 3  immediately needed for the purpose for which such funds are

 4  provided, the Chief Financial Officer Treasurer is authorized

 5  and shall, upon the request and approval of the Department of

 6  Citrus, or its general manager if she or he has been given

 7  such authority, invest and reinvest the funds designated and

 8  for the period of time specified in such request.  In the

 9  investment of such funds, the Chief Financial Officer

10  Treasurer shall have the powers and be subject to the

11  limitations provided for in s. 17.61 s. 18.125.

12         (10)  Subject to the concurrence of the Chief Financial

13  Officer Treasurer, whenever the department contracts with a

14  foreign entity for performance of services or the purchase of

15  materials, and such contract requires payment in equivalent

16  foreign currency, the department may, for payment of such

17  contract obligation, deposit sufficient state funds in a

18  foreign bank, or purchase foreign currency at the current

19  market rate, up to an amount not in excess of the contract

20  obligation.  All payments from these funds must have prior

21  audit approval from the office of the Chief Financial Officer

22  Comptroller.

23         Section 616.  Paragraph (c) of subsection (8) of

24  section 601.15, Florida Statutes, is amended to read:

25         601.15  Advertising campaign; methods of conducting;

26  excise tax; emergency reserve fund; citrus research.--

27         (8)

28         (c)  All obligations, expenses, and costs incurred

29  under the provisions of this section shall be paid out of the

30  Citrus Advertising Fund upon warrant of the Chief Financial

31  

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 1  Officer Comptroller when vouchers thereof, approved by the

 2  Department of Citrus, are exhibited.

 3         Section 617.  Subsection (6) of section 601.28, Florida

 4  Statutes, is amended to read:

 5         601.28  Inspection fees.--

 6         (6)  When any portion of the revenues deposited to the

 7  Citrus Inspection Trust Fund is not immediately needed for the

 8  purpose for which such funds are appropriated, the Chief

 9  Financial Officer Treasurer shall invest and reinvest such

10  funds, and the earnings thereon shall be deposited to and made

11  a part of the Citrus Inspection Trust Fund.

12         Section 618.  Subsection (2) of section 607.0501,

13  Florida Statutes, is amended to read:

14         607.0501  Registered office and registered agent.--

15         (2)  This section does not apply to corporations which

16  are required by law to designate the Chief Financial Officer

17  Insurance Commissioner and Treasurer as their attorney for the

18  service of process, associations subject to the provisions of

19  chapter 665, and banks and trust companies subject to the

20  provisions of the financial institutions codes.

21         Section 619.  Section 607.14401, Florida Statutes, is

22  amended to read:

23         607.14401  Deposit with Department of Financial

24  Services Banking and Finance.--Assets of a dissolved

25  corporation that should be transferred to a creditor,

26  claimant, or shareholder of the corporation who cannot be

27  found or who is not competent to receive them shall be

28  deposited, within 6 months from the date fixed for the payment

29  of the final liquidating distribution, with the Department of

30  Financial Services Banking and Finance, where such assets

31  shall be held as abandoned property.  When the creditor,

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 1  claimant, or shareholder furnishes satisfactory proof of

 2  entitlement to the amount or assets deposited, the Department

 3  of Financial Services Banking and Finance shall pay the

 4  creditor, claimant, or shareholder or his or her

 5  representative that amount or those assets.

 6         Section 620.  Section 609.05, Florida Statutes, is

 7  amended to read:

 8         609.05  Qualification with Department of Financial

 9  Services Banking and Finance.--Before any person may offer for

10  sale, barter or sell any unit, share, contract, note, bond,

11  mortgage, oil or mineral lease or other security of an

12  association doing business under what is known as a

13  "declaration of trust" in this state, such person shall

14  procure from the Department of Financial Services Banking and

15  Finance a permit to offer for sale and sell such securities,

16  which permit shall be applied for and granted under the same

17  conditions as like permits are applied for and granted to

18  corporations.

19         Section 621.  Subsection (2) of section 617.0501,

20  Florida Statutes, is amended to read:

21         617.0501  Registered office and registered agent.--

22         (2)  This section does not apply to corporations which

23  are required by law to designate the Chief Financial Officer

24  Insurance Commissioner and Treasurer as their attorney for the

25  service of process.

26         Section 622.  Section 617.1440, Florida Statutes, is

27  amended to read:

28         617.1440  Deposit with Department of Financial Services

29  Banking and Finance.--Assets of a dissolved corporation that

30  should be transferred to a creditor, claimant, member of the

31  corporation, or other person who cannot be found or who is not

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 1  competent to receive them shall be deposited, within 6 months

 2  after the date fixed for the payment of the final liquidating

 3  distribution, with the Department of Financial Services

 4  Banking and Finance, where such assets shall be held as

 5  abandoned property.  When the creditor, claimant, member, or

 6  other person furnishes satisfactory proof of entitlement to

 7  the amount or assets deposited, the Department of Financial

 8  Services Banking and Finance shall pay him or her or his or

 9  her representative that amount or those assets.

10         Section 623.  Section 624.05, Florida Statutes, is

11  amended to read:

12         624.05  "Department" defined.--"Department" means the

13  Department of Financial Services Insurance of this state,

14  unless the context otherwise requires.

15         Section 624.  Subsection (5) of section 624.155,

16  Florida Statutes, is amended to read:

17         624.155  Civil remedy.--

18         (5)  This section shall not be construed to authorize a

19  class action suit against an insurer or a civil action against

20  the department, its employees, or the Chief Financial Officer

21  Insurance Commissioner, or to create a cause of action when a

22  health insurer refuses to pay a claim for reimbursement on the

23  ground that the charge for a service was unreasonably high or

24  that the service provided was not medically necessary.

25         Section 625.  Subsection (1) of section 624.305,

26  Florida Statutes, is amended to read:

27         624.305  Prohibited interests, rewards.--

28         (1)  No employee of the department, including the Chief

29  Financial Officer Insurance Commissioner and Treasurer shall:

30         (a)  Be financially interested, directly or indirectly,

31  in any insurer or insurance agency authorized to transact

                                 577

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 1  insurance in this state, or in any insurance transaction

 2  except as a policyholder or claimant under a policy; or

 3         (b)  Be given or receive any fee, compensation, loan,

 4  gift, or other thing of value in addition to the compensation

 5  and expense allowance provided by law, for any service

 6  rendered or to be rendered in her or his capacity as a

 7  department employee.

 8         Section 626.  Subsection (6) of section 624.307,

 9  Florida Statutes, is amended to read:

10         624.307  General powers; duties.--

11         (6)  The department may employ actuaries who shall be

12  at-will employees and who shall serve at the pleasure of the

13  Director of the Division of Insurance Insurance Commissioner.

14  Actuaries employed pursuant to this paragraph shall be members

15  of the Society of Actuaries or the Casualty Actuarial Society

16  and shall be exempt from the Career Service System established

17  under chapter 110.  The salaries of the actuaries employed

18  pursuant to this paragraph by the department shall be set in

19  accordance with s. 216.251(2)(a)5. and shall be set at levels

20  which are commensurate with salary levels paid to actuaries by

21  the insurance industry.

22         Section 627.  Paragraph (d) of subsection (5) of

23  section 624.310, Florida Statutes, is amended to read:

24         624.310  Enforcement; cease and desist orders; removal

25  of certain persons; fines.--

26         (5)  ADMINISTRATIVE FINES; ENFORCEMENT.--

27         (d)  Any administrative fine levied by the department

28  under this subsection may be enforced by the department by

29  appropriate proceedings in the circuit court of the county in

30  which the person resides or in which the principal office of a

31  licensee is located, or, in the case of a foreign insurer or

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 1  person not residing in this state, in Leon County.  In any

 2  administrative or judicial proceeding arising under this

 3  section, a party may elect to correct the violation asserted

 4  by the department, and, upon doing so, any fine shall cease to

 5  accrue; however, the election to correct the violation does

 6  not render any administrative or judicial proceeding moot. All

 7  fines collected under this section shall be paid to the

 8  Insurance Commissioner's Regulatory Trust Fund.

 9         Section 628.  Section 624.314, Florida Statutes, is

10  amended to read:

11         624.314  Publications; Insurance Commissioner's

12  Regulatory Trust Fund.--The department shall deposit all

13  moneys received from the sale of publications under s. 624.313

14  in the Insurance Commissioner's Regulatory Trust Fund for the

15  purpose of paying costs for the preparation, printing, and

16  delivery to the department of the publications mentioned in s.

17  624.313(2), packaging and mailing costs, and banking,

18  accounting, and incidental expenses connected with the sale

19  and delivery of such publications by the department.  All

20  moneys so deposited and all funds hereafter transferred to the

21  Insurance Commissioner's Regulatory Trust Fund are

22  appropriated for the uses and purposes above mentioned.

23         Section 629.  Paragraph (b) of subsection (3) of

24  section 624.319, Florida Statutes, is amended to read:

25         624.319  Examination and investigation reports.--

26         (3)

27         (b)  Lists of insurers or regulated companies are

28  confidential and exempt from the provisions of s. 119.07(1)

29  if:

30  

31  

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 1         1.  The financial solvency, condition, or soundness of

 2  such insurers or regulated companies is being monitored by the

 3  department;

 4         2.  The list is prepared to internally coordinate

 5  regulation by the department of the financial solvency,

 6  condition, or soundness of the insurers or regulated

 7  companies; and

 8         3.  The Chief Financial Officer determines Insurance

 9  Commissioner and Treasurer determine that public inspection of

10  such list could impair the financial solvency, condition, or

11  soundness of such insurers or regulated companies.

12         Section 630.  Subsection (2) of section 624.320,

13  Florida Statutes, is amended to read:

14         624.320  Examination expenses.--

15         (2)  All moneys collected from insurers for

16  examinations shall be deposited into the Insurance

17  Commissioner's Regulatory Trust Fund, and the department is

18  authorized to make deposits from time to time into such fund

19  from moneys appropriated for the operation of the department.

20         Section 631.  Subsection (1) of section 624.321,

21  Florida Statutes, is amended to read:

22         624.321  Witnesses and evidence.--

23         (1)  As to any examination, investigation, or hearing

24  being conducted under this code, the Chief Financial Officer

25  Insurance Commissioner and Treasurer or her or his designee:

26         (a)  May administer oaths, examine and cross-examine

27  witnesses, receive oral and documentary evidence; and

28         (b)  Shall have the power to subpoena witnesses, compel

29  their attendance and testimony, and require by subpoena the

30  production of books, papers, records, files, correspondence,

31  documents, or other evidence which is relevant to the inquiry.

                                 580

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 1         Section 632.  Subsection (2) of section 624.322,

 2  Florida Statutes, is amended to read:

 3         624.322  Testimony compelled; immunity from

 4  prosecution.--

 5         (2)  Any such individual may execute, acknowledge, and

 6  file in the office of the Department of Financial Services

 7  Insurance a statement expressly waiving such immunity or

 8  privilege in respect to any transaction, matter, or thing

 9  specified in such statement; and thereupon the testimony of

10  such individual or such evidence in relation to such

11  transaction, matter, or thing may be received or produced

12  before any judge or justice, court, tribunal, grand jury, or

13  otherwise; and, if so received or produced, such individual

14  shall not be entitled to any immunity or privileges on account

15  of any testimony she or he may so give or evidence so

16  produced.

17         Section 633.  Subsection (1) of section 624.33, Florida

18  Statutes, is amended to read:

19         624.33  Jurisdiction regarding health or life

20  coverage.--

21         (1)  Notwithstanding any other provision of law, and

22  except as provided in this section, any person or other entity

23  which in this state provides life insurance coverage;

24  annuities; or coverage for medical, surgical, chiropractic,

25  physical therapy, speech-language pathology, audiology,

26  professional mental health, dental, hospital, or optometric

27  expenses, or any other health insurance coverage, whether such

28  coverage is by direct payment, reimbursement, or otherwise,

29  shall, upon request, file with the Department of Financial

30  Services Insurance a copy of Internal Revenue Service form

31  5500 and attached schedules as filed with the Internal Revenue

                                 581

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 1  Service and the United States Department of Labor, and an

 2  annual summary, as required by the Employee Retirement Income

 3  Security Act of 1974, 29 U.S.C. ss. 1001 et seq., as amended.

 4         Section 634.  Subsection (5) of section 624.404,

 5  Florida Statutes, is amended to read:

 6         624.404  General eligibility of insurers for

 7  certificate of authority.--To qualify for and hold authority

 8  to transact insurance in this state, an insurer must be

 9  otherwise in compliance with this code and with its charter

10  powers and must be an incorporated stock insurer, an

11  incorporated mutual insurer, or a reciprocal insurer, of the

12  same general type as may be formed as a domestic insurer under

13  this code; except that:

14         (5)  No insurer shall be authorized to transact

15  insurance in this state which, during the 3 years immediately

16  preceding its application for a certificate of authority, has

17  violated any of the insurance laws of this state and after

18  being informed of such violation has failed to correct the

19  same; except that, if all other requirements are met, the

20  department may nevertheless issue a certificate of authority

21  to such an insurer upon the filing by the insurer of a sworn

22  statement of all such insurance so written in violation of

23  law, and upon payment to the department of a sum of money as

24  additional filing fee equivalent to all premium taxes and

25  other state taxes and fees as would have been payable by the

26  insurer if such insurance had been lawfully written by an

27  authorized insurer under the laws of this state. This fee,

28  when collected, shall be deposited to the credit of the

29  Insurance Commissioner's Regulatory Trust Fund.

30         Section 635.  Subsection (9) of section 624.4071,

31  Florida Statutes, is amended to read:

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 1         624.4071  Special purpose homeowner insurance

 2  company.--

 3         (9)  A certificate of authority to operate a special

 4  purpose homeowner insurance company may not be issued after

 5  December 31, 1998. After December 31, 1998, a certificate of

 6  authority issued pursuant to the requirements of this section

 7  continues to be effective and subject to the requirements of

 8  this section until surrendered to the Department of Financial

 9  Services Insurance. A certificate of authority issued pursuant

10  to this section may not be sold or otherwise transferred

11  without the approval of the department.

12         Section 636.  Paragraph (e) of subsection (1) of

13  section 624.4085, Florida Statutes, is amended to read:

14         624.4085  Risk-based capital requirements for

15  insurers.--

16         (1)  As used in this section, the term:

17         (e)  "Department" means the Department of Financial

18  Services Insurance.

19         Section 637.  Subsections (1) and (2) of section

20  624.40851, Florida Statutes, are amended to read:

21         624.40851  Confidentiality of risk-based capital

22  information.--

23         (1)  The initial risk-based capital report made,

24  furnished, or filed with the Department of Financial Services

25  Insurance, any risk-based capital plan, revised risk-based

26  capital plan, adjusted risk-based capital report, and working

27  papers and reports of examination or analysis of an insurer

28  performed pursuant to a plan or corrective order, or

29  regulatory action level, subsequently filed at the request of

30  the department, with respect to any domestic insurer or

31  foreign insurer, and transcripts of hearings conducted

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 1  pursuant to this section, are confidential and exempt from s.

 2  119.07(1) and s. 24(a), Art. I of the State Constitution.

 3         (2)  Proceedings and hearings conducted pursuant to

 4  section 1 of SB 620, section 1 of HB 1943, or section 1 of SB

 5  898 relating to the department's actions regarding any

 6  insurer's risk-based capital plan, revised risk-based capital

 7  plan, risk-based capital report or adjusted risk-based capital

 8  report, are exempt from the provisions of s. 286.011 and s.

 9  24(b), Art. I of the State Constitution, except as otherwise

10  provided in this section. All portions of such hearings or

11  proceedings shall be recorded by a court reporter. The

12  Department of Financial Services Insurance shall open such

13  proceedings or hearings or provide a copy of the transcript of

14  such hearings or proceedings, or disclose the contents of

15  notices, correspondence, reports, records, or other

16  information to a department, agency, or instrumentality of

17  this or another state or of the United States if the

18  department determines the disclosure is necessary or proper

19  for the enforcement of the laws of the United States or of

20  this or another state.

21         Section 638.  Section 624.422, Florida Statutes, is

22  amended to read:

23         624.422  Service of process; appointment of Chief

24  Financial Officer Insurance Commissioner and Treasurer as

25  process agent.--

26         (1)  Each licensed insurer, whether domestic, foreign,

27  or alien, shall be deemed to have appointed the Chief

28  Financial Officer Insurance Commissioner and Treasurer and her

29  or his successors in office as its attorney to receive service

30  of all legal process issued against it in any civil action or

31  

                                 584

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 1  proceeding in this state; and process so served shall be valid

 2  and binding upon the insurer.

 3         (2)  Prior to its authorization to transact insurance

 4  in this state, each insurer shall file with the department

 5  designation of the name and address of the person to whom

 6  process against it served upon the Chief Financial Officer

 7  Insurance Commissioner and Treasurer is to be forwarded.  The

 8  insurer may change the designation at any time by a new

 9  filing.

10         (3)  Service of process upon the Chief Financial

11  Officer Insurance Commissioner and Treasurer as the insurer's

12  attorney pursuant to such an appointment shall be the sole

13  method of service of process upon an authorized domestic,

14  foreign, or alien insurer in this state.

15         Section 639.  Section 624.423, Florida Statutes, is

16  amended to read:

17         624.423  Serving process.--

18         (1)  Service of process upon the Chief Financial

19  Officer Insurance Commissioner and Treasurer as process agent

20  of the insurer (under s. 624.422) shall be made by serving

21  copies in triplicate of the process upon the Chief Financial

22  Officer Insurance Commissioner and Treasurer or upon her or

23  his assistant, deputy, or other person in charge of her or his

24  office.  Upon receiving such service, the Chief Financial

25  Officer Insurance Commissioner and Treasurer shall file one

26  copy in her or his office, return one copy with her or his

27  admission of service, and promptly forward one copy of the

28  process by registered or certified mail to the person last

29  designated by the insurer to receive the same, as provided

30  under s. 624.422(2).

31  

                                 585

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 1         (2)  Where process is served upon the Chief Financial

 2  Officer Insurance Commissioner and Treasurer as an insurer's

 3  process agent, the insurer shall not be required to answer or

 4  plead except within 20 days after the date upon which the

 5  Chief Financial Officer Insurance Commissioner and Treasurer

 6  mailed a copy of the process served upon her or him as

 7  required by subsection (1).

 8         (3)  Process served upon the Chief Financial Officer

 9  Insurance Commissioner and Treasurer and copy thereof

10  forwarded as in this section provided shall for all purposes

11  constitute valid and binding service thereof upon the insurer.

12         Section 640.  Subsection (6) of section 624.442,

13  Florida Statutes, is amended to read:

14         624.442  Annual reports; actuarial certification;

15  quarterly reports; penalties.--

16         (6)  All moneys collected by the department under this

17  section shall be deposited to the credit of the Insurance

18  Commissioner's Regulatory Trust Fund.

19         Section 641.  Subsection (2) of section 624.4435,

20  Florida Statutes, is amended to read:

21         624.4435  Assets of insurers; reporting requirements.--

22         (2)  Each domestic insurer shall file a report with the

23  Department of Financial Services Insurance disclosing a

24  material acquisition of assets, a material disposition of

25  assets, or a material nonrenewal, cancellation, or revision of

26  a ceded reinsurance agreement, unless the material acquisition

27  or disposition of assets or the material nonrenewal,

28  cancellation, or revision of a ceded reinsurance agreement has

29  been submitted to the department for review, approval, or

30  informational purposes under another section of the Florida

31  Insurance Code or a rule adopted thereunder. A copy of the

                                 586

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 1  report and each exhibit or other attachment must be filed by

 2  the insurer with the National Association of Insurance

 3  Commissioners. The report required in this section is due

 4  within 15 days after the end of the calendar month in which

 5  the transaction occurs.

 6         Section 642.  Section 624.484, Florida Statutes, is

 7  amended to read:

 8         624.484  Registration of agent.--A self-insurance fund

 9  shall register with and designate the Chief Financial Officer

10  Insurance Commissioner as its agent solely for the purpose of

11  receiving service of legal documents or process.

12         Section 643.  Subsection (1) of section 624.5015,

13  Florida Statutes, is amended to read:

14         624.5015  Advance collection of fees and taxes; title

15  insurers not to pay without reimbursement.--

16         (1)  The Department of Financial Services Insurance

17  shall collect in advance from the applicant or licensee fees

18  and taxes as provided in s. 624.501.

19         Section 644.  Section 624.502, Florida Statutes, is

20  amended to read:

21         624.502  Service of process fee.--In all instances as

22  provided in any section of the insurance code and s. 48.151(3)

23  in which service of process is authorized to be made upon the

24  Chief Financial Officer Insurance Commissioner and Treasurer,

25  the plaintiff shall pay to the department a fee of $15 for

26  such service of process, which fee shall be deposited into the

27  Insurance Commissioner's Regulatory Trust Fund.

28         Section 645.  Subsections (1) and (3) of section

29  624.506, Florida Statutes, are amended to read:

30         624.506  County tax; deposit and remittance.--

31  

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 1         (1)  The Chief Financial Officer Insurance Commissioner

 2  and Treasurer shall deposit in the Agents and Solicitors

 3  County Tax Trust Fund all moneys accepted as county tax under

 4  this part. She or he shall keep a separate account for all

 5  moneys so collected for each county and, after deducting

 6  therefrom the service charges provided for in s. 215.20, shall

 7  remit the balance to the counties.

 8         (3)  The Chief Financial Officer Comptroller shall

 9  annually, as of January 1 following the date of collection,

10  and thereafter at such other times as he or she elects the

11  Insurance Commissioner and Treasurer may elect, draw her or

12  his warrants on the State Treasury payable to the respective

13  counties entitled to receive the same for the full net amount

14  of such taxes to each county.

15         Section 646.  Subsection (5) of section 624.5091,

16  Florida Statutes, is amended to read:

17         624.5091  Retaliatory provision, insurers.--

18         (5)  The excess amount of all fees, licenses, and taxes

19  collected by the Department of Revenue under this section over

20  the amount of similar fees, licenses, and taxes provided for

21  in this part, together with all fines, penalties, or other

22  monetary obligations collected under this section and ss.

23  626.711 and 626.743 exclusive of such fees, licenses, and

24  taxes, shall be deposited by the Department of Revenue to the

25  credit of the Insurance Commissioner's Regulatory Trust Fund;

26  provided that such excess amount shall not exceed $125,000 for

27  1992, and for any subsequent year shall not exceed $125,000

28  adjusted annually by the lesser of 20 percent or the growth in

29  the total of such excess amount.  The remainder of such excess

30  amount shall be deposited into the General Revenue Fund.

31  

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 1         Section 647.  Subsection (1) of section 624.5092,

 2  Florida Statutes, is amended to read:

 3         624.5092  Administration of taxes; payments.--

 4         (1)  The Department of Revenue shall administer, audit,

 5  and enforce the assessment and collection of those taxes to

 6  which this section is applicable.  The Department of Financial

 7  Services Insurance is authorized to share information with the

 8  Department of Revenue as necessary to verify premium tax or

 9  other tax liability arising under such taxes and credits which

10  may apply thereto.

11         Section 648.  Section 624.516, Florida Statutes, is

12  amended to read:

13         624.516  State Fire Marshal regulatory assessment and

14  surcharge; deposit and use of funds.--

15         (1)  The regulatory assessment imposed under s.

16  624.515(1) and the surcharge imposed under s. 624.515(2) shall

17  be deposited by the Department of Revenue, when received and

18  audited, into the Insurance Commissioner's Regulatory Trust

19  Fund.

20         (2)  The moneys received and deposited in the funds, as

21  provided in subsection (1), are appropriated for use by the

22  Chief Financial Officer State Treasurer as ex officio State

23  Fire Marshal, hereinafter referred to as "State Fire Marshal,"

24  to defray the expenses of the State Fire Marshal in the

25  discharge of her or his administrative and regulatory powers

26  and duties as prescribed by law, including the maintaining of

27  offices and necessary supplies therefor, essential equipment

28  and other materials, salaries and expenses of required

29  personnel, and all other legitimate expenses relating to the

30  discharge of the administrative and regulatory powers and

31  duties imposed in and charged to her or him under such laws.

                                 589

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 1         (3)  If, at the end of any fiscal year, a balance of

 2  funds remains in the Insurance Commissioner's Regulatory Trust

 3  Fund, such balance shall not revert to the general fund of the

 4  state, but shall be retained in the Insurance Commissioner's

 5  Regulatory Trust Fund to be used for the purposes for which

 6  the moneys are appropriated as set forth in subsection (2).

 7         Section 649.  Subsection (1) of section 624.517,

 8  Florida Statutes, is amended to read:

 9         624.517  State Fire Marshal regulatory assessment;

10  reduction of assessment.--

11         (1)  The Department of Financial Services Insurance

12  shall ascertain on or before December 1 of each year whether

13  the amounts estimated to be received from the regulatory

14  assessment imposed under s. 624.515 for that calendar year,

15  payable on or before the following March 1, as herein

16  prescribed, shall result in an accumulation of funds in excess

17  of the just requirements for which the assessment is imposed

18  as set forth in s. 624.516; and if it determines that the

19  imposition of the full amount of the assessment would result

20  in such excess, it may reduce the percentage amount of the

21  assessment for that calendar year to such percentage as may be

22  necessary to meet the just requirements for which the

23  assessment is imposed.

24         Section 650.  Section 624.519, Florida Statutes, is

25  amended to read:

26         624.519  Nonpayment of premium tax or fire marshal

27  assessment; penalty.--If any insurer fails to pay to the

28  Department of Revenue on or before March 1 in each and every

29  year any premium taxes required of it under s. 624.509 or s.

30  624.510, or any state fire marshal regulatory assessment

31  required of it under s. 624.515 or s. 624.517, the Department

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 1  of Financial Services Insurance may revoke its certificate of

 2  authority.

 3         Section 651.  Subsection (1) of section 624.521,

 4  Florida Statutes, is amended to read:

 5         624.521  Deposit of certain tax receipts; refund of

 6  improper payments.--

 7         (1)  The Department of Financial Services Insurance

 8  shall promptly deposit in the State Treasury to the credit of

 9  the Insurance Commissioner's Regulatory Trust Fund all "state

10  tax" portions of agents' and solicitors' licenses collected

11  under s. 624.501 necessary to fund the Division of Insurance

12  Fraud.  The balance of the tax shall be credited to the

13  General Fund.  All moneys received by the Department of

14  Financial Services Insurance not in accordance with the

15  provisions of this code or not in the exact amount as

16  specified by the applicable provisions of this code shall be

17  returned to the remitter.  The records of the department shall

18  show the date and reason for such return.

19         Section 652.  Section 624.523, Florida Statutes, is

20  amended to read:

21         624.523  Insurance Commissioner's Regulatory Trust

22  Fund.--

23         (1)  There is created in the State Treasury a trust

24  fund designated "Insurance Commissioner's Regulatory Trust

25  Fund" to which shall be credited all payments received on

26  account of the following items:

27         (a)  All fines, monetary penalties, and costs imposed

28  upon persons by the department as authorized by law for

29  violation of the laws of this state.

30         (b)  Any sums received for copies of the stenographic

31  record of hearings, as authorized by law.

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 1         (c)  All sums received under s. 624.404(5).

 2         (d)  All sums received under s. 624.5091, as provided

 3  in subsection (5) thereof.

 4         (e)  All payments received on account of items provided

 5  for under respective provisions of s. 624.501, as follows:

 6         1.  Subsection (1) (certificate of authority of

 7  insurer).

 8         2.  Subsection (2) (charter documents of insurer).

 9         3.  Subsection (3) (annual license tax of insurer).

10         4.  Subsection (4) (annual statement of insurer).

11         5.  Subsection (5) (application fee for insurance

12  representatives).

13         6.  The "appointment fee" portion of any appointment

14  provided for under paragraphs (6)(a) and (b) (insurance

15  representatives, property, marine, casualty and surety

16  insurance, agents, and solicitors).

17         7.  Paragraph (6)(c) (nonresident agents).

18         8.  Paragraph (6)(d) (service representatives).

19         9.  The "appointment fee" portion of any appointment

20  provided for under paragraph (7)(a) (life insurance agents,

21  original appointment, and renewal or continuation of

22  appointment).

23         10.  Paragraph (7)(b) (nonresident agent license).

24         11.  The "appointment fee" portion of any appointment

25  provided for under paragraph (8)(a) (health insurance agents,

26  agent's appointment, and renewal or continuation fee).

27         12.  Paragraph (8)(b) (nonresident agent appointment).

28         13.  The "appointment fee" portion of any appointment

29  provided for under subsections (9) and (10) (limited licenses

30  and fraternal benefit society agents).

31         14.  Subsection (11) (vending machines).

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 1         15.  Subsection (12) (surplus lines agent).

 2         16.  Subsection (13) (adjusters' appointment).

 3         17.  Subsection (14) (examination fee).

 4         18.  Subsection (15) (temporary license and appointment

 5  as agent or adjuster).

 6         19.  Subsection (16) (reissuance, reinstatement, etc.).

 7         20.  Subsection (17) (additional license continuation

 8  fees).

 9         21.  Subsection (18) (filing application for permit to

10  form insurer).

11         22.  Subsection (19) (license fee of rating

12  organization).

13         23.  Subsection (20) (miscellaneous services).

14         24.  Subsection (21) (insurance agencies).

15         (f)  All payments received on account of actuarial and

16  other services in the valuation or computation of the reserves

17  of life insurers pursuant to s. 625.121(2).

18         (g)  All sums received under ss. 626.711 and 626.743.

19         (h)  Sums received under s. 626.932, as provided in

20  subsection (5) thereof.

21         (i)  Sums received under s. 626.938, as provided in

22  subsection (7) thereof.

23         (j)  All sums received under s. 627.828.

24         (k)  All sums received from motor vehicle service

25  agreement companies under s. 634.221.

26         (l)  All sums received under s. 648.27(6) (bail bond

27  agent, limited surety agent or runner, continuation fee), the

28  "appointment fee" portion of any license or permit provided

29  for under s. 648.31, and the application fees provided for

30  under ss. 648.34(3) and 648.37(3).

31         (m)  All sums received under s. 651.015.

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 1         (n)  All sums received by the Chief Financial Officer

 2  Insurance Commissioner and Treasurer as fees for her or his

 3  services as service-of-process agent.

 4         (o)  All state tax portions of agents' and solicitors'

 5  licenses collected under s. 624.501.

 6         (2)  The moneys so received and deposited in this

 7  regulatory trust fund are hereby appropriated for use by the

 8  department to defray the expenses of the department in the

 9  discharge of its administrative and regulatory powers and

10  duties as prescribed by law.

11         Section 653.  Subsection (1) and paragraph (b) of

12  subsection (11) of section 624.610, Florida Statutes, are

13  amended to read:

14         624.610  Reinsurance.--

15         (1)  The purpose of this section is to protect the

16  interests of insureds, claimants, ceding insurers, assuming

17  insurers, and the public.  It is the intent of the Legislature

18  to ensure adequate regulation of insurers and reinsurers and

19  adequate protection for those to whom they owe obligations.

20  In furtherance of that state interest, the Legislature

21  requires that upon the insolvency of a non-United States

22  insurer or reinsurer which provides security to fund its

23  United States obligations in accordance with this section,

24  such security shall be maintained in the United States and

25  claims shall be filed with and valued by the Chief Financial

26  Officer State Insurance Commissioner with regulatory

27  oversight, and the assets shall be distributed in accordance

28  with the insurance laws of the state in which the trust is

29  domiciled that are applicable to the liquidation of domestic

30  United States insurance companies.  The Legislature declares

31  that the matters contained in this section are fundamental to

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 1  the business of insurance in accordance with 15 U.S.C. ss.

 2  1011-1012.

 3         (11)

 4         (b)  The summary statement must be signed and attested

 5  to by either the chief executive officer or the chief

 6  financial officer of the reporting insurer. In addition to the

 7  summary statement, the Chief Financial Officer Insurance

 8  Commissioner may require the filing of any supporting

 9  information relating to the ceding of such risks as she or he

10  deems necessary. If the summary statement prepared by the

11  ceding insurer discloses that the net effect of a reinsurance

12  treaty or treaties (or series of treaties with one or more

13  affiliated reinsurers entered into for the purpose of avoiding

14  the following threshold amount) at any time results in an

15  increase of more than 25 percent to the insurer's surplus as

16  to policyholders, then the insurer shall certify in writing to

17  the department that the relevant reinsurance treaty or

18  treaties comply with the accounting requirements contained in

19  any rule adopted by the department under subsection (14). If

20  such certificate is filed after the summary statement of such

21  reinsurance treaty or treaties, the insurer shall refile the

22  summary statement with the certificate. In any event, the

23  certificate must state that a copy of the certificate was sent

24  to the reinsurer under the reinsurance treaty.

25         Section 654.  Subsection (3) of section 624.87, Florida

26  Statutes, is amended to read:

27         624.87  Administrative supervision; expenses.--

28         (3)  All moneys collected from insurers for the

29  expenses of administrative supervision shall be deposited into

30  the Insurance Commissioner's Regulatory Trust Fund, and the

31  department is authorized to make deposits from time to time

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 1  into this fund from moneys appropriated for the operation of

 2  the department.

 3         Section 655.  Paragraph (b) of subsection (4),

 4  paragraph (a) of subsection (5), and paragraphs (a) and (c) of

 5  subsection (6) of section 624.91, Florida Statutes, as amended

 6  by section 20 of chapter 2001-377, Laws of Florida, are

 7  amended to read:

 8         624.91  The Florida Healthy Kids Corporation Act.--

 9         (4)  CORPORATION AUTHORIZATION, DUTIES, POWERS.--

10         (b)  The Florida Healthy Kids Corporation shall phase

11  in a program to:

12         1.  Organize school children groups to facilitate the

13  provision of comprehensive health insurance coverage to

14  children;

15         2.  Arrange for the collection of any family, local

16  contributions, or employer payment or premium, in an amount to

17  be determined by the board of directors, to provide for

18  payment of premiums for comprehensive insurance coverage and

19  for the actual or estimated administrative expenses;

20         3.  Establish the administrative and accounting

21  procedures for the operation of the corporation;

22         4.  Establish, with consultation from appropriate

23  professional organizations, standards for preventive health

24  services and providers and comprehensive insurance benefits

25  appropriate to children; provided that such standards for

26  rural areas shall not limit primary care providers to

27  board-certified pediatricians;

28         5.  Establish eligibility criteria which children must

29  meet in order to participate in the program;

30         6.  Establish procedures under which applicants to and

31  participants in the program may have grievances reviewed by an

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 1  impartial body and reported to the board of directors of the

 2  corporation;

 3         7.  Establish participation criteria and, if

 4  appropriate, contract with an authorized insurer, health

 5  maintenance organization, or insurance administrator to

 6  provide administrative services to the corporation;

 7         8.  Establish enrollment criteria which shall include

 8  penalties or waiting periods of not fewer than 60 days for

 9  reinstatement of coverage upon voluntary cancellation for

10  nonpayment of family premiums;

11         9.  If a space is available, establish a special open

12  enrollment period of 30 days' duration for any child who is

13  enrolled in Medicaid or Medikids if such child loses Medicaid

14  or Medikids eligibility and becomes eligible for the Florida

15  Healthy Kids program;

16         10.  Contract with authorized insurers or any provider

17  of health care services, meeting standards established by the

18  corporation, for the provision of comprehensive insurance

19  coverage to participants.  Such standards shall include

20  criteria under which the corporation may contract with more

21  than one provider of health care services in program sites.

22  Health plans shall be selected through a competitive bid

23  process. The selection of health plans shall be based

24  primarily on quality criteria established by the board. The

25  health plan selection criteria and scoring system, and the

26  scoring results, shall be available upon request for

27  inspection after the bids have been awarded;

28         11.  Develop and implement a plan to publicize the

29  Florida Healthy Kids Corporation, the eligibility requirements

30  of the program, and the procedures for enrollment in the

31  

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 1  program and to maintain public awareness of the corporation

 2  and the program;

 3         12.  Secure staff necessary to properly administer the

 4  corporation. Staff costs shall be funded from state and local

 5  matching funds and such other private or public funds as

 6  become available. The board of directors shall determine the

 7  number of staff members necessary to administer the

 8  corporation;

 9         13.  As appropriate, enter into contracts with local

10  school boards or other agencies to provide onsite information,

11  enrollment, and other services necessary to the operation of

12  the corporation;

13         14.  Provide a report annually on an annual basis to

14  the Governor, Chief Financial Officer Insurance Commissioner,

15  Commissioner of Education, Senate President, Speaker of the

16  House of Representatives, and Minority Leaders of the Senate

17  and the House of Representatives;

18         15.  Each fiscal year, establish a maximum number of

19  participants by county, on a statewide basis, who may enroll

20  in the program without the benefit of local matching funds.

21  Thereafter, the corporation may establish local matching

22  requirements for supplemental participation in the program.

23  The corporation may vary local matching requirements and

24  enrollment by county depending on factors which may influence

25  the generation of local match, including, but not limited to,

26  population density, per capita income, existing local tax

27  effort, and other factors. The corporation also may accept

28  in-kind match in lieu of cash for the local match requirement

29  to the extent allowed by Title XXI of the Social Security Act;

30  and

31  

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 1         16.  Establish eligibility criteria, premium and

 2  cost-sharing requirements, and benefit packages which conform

 3  to the provisions of the Florida Kidcare program, as created

 4  in ss. 409.810-409.820; and

 5         17.  Notwithstanding the requirements of subparagraph

 6  15. to the contrary, establish a local matching requirement of

 7  $0.00 for the Title XXI program in each county of the state

 8  for the 2001-2002 fiscal year. This subparagraph shall take

 9  effect upon becoming a law and shall operate retroactively to

10  July 1, 2001. This subparagraph expires July 1, 2002.

11         (5)  BOARD OF DIRECTORS.--

12         (a)  The Florida Healthy Kids Corporation shall operate

13  subject to the supervision and approval of a board of

14  directors chaired by the Chief Financial Officer Insurance

15  Commissioner or her or his designee, and composed of 14 12

16  other members selected for 3-year terms of office as follows:

17         1.  One member appointed by the Commissioner of

18  Education from among three persons nominated by the Florida

19  Association of School Administrators;

20         2.  One member appointed by the Commissioner of

21  Education from among three persons nominated by the Florida

22  Association of School Boards;

23         3.  One member appointed by the Commissioner of

24  Education from the Office of School Health Programs of the

25  Florida Department of Education;

26         4.  One member appointed by the Governor from among

27  three members nominated by the Florida Pediatric Society;

28         5.  One member, appointed by the Governor, who

29  represents the Children's Medical Services Program;

30  

31  

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 1         6.  One member appointed by the Chief Financial Officer

 2  Insurance Commissioner from among three members nominated by

 3  the Florida Hospital Association;

 4         7.  Two members, appointed by the Chief Financial

 5  Officer Insurance Commissioner, who are representatives of

 6  authorized health care insurers or health maintenance

 7  organizations;

 8         8.  One member, appointed by the Chief Financial

 9  Officer Insurance Commissioner, who represents the Institute

10  for Child Health Policy;

11         9.  One member, appointed by the Governor, from among

12  three members nominated by the Florida Academy of Family

13  Physicians;

14         10.  One member, appointed by the Governor, who

15  represents the Agency for Health Care Administration; and

16         11.  One member, appointed by the Chief Financial

17  Officer from among three members nominated by the Florida

18  Association of Counties, representing rural counties;

19         12.  One member, appointed by the Governor from among

20  three members nominated by the Florida Association of

21  Counties, representing urban counties; and

22         13.11.  The State Health Officer or her or his

23  designee.

24         (6)  LICENSING NOT REQUIRED; FISCAL OPERATION.--

25         (a)  The corporation shall not be deemed an insurer.

26  The officers, directors, and employees of the corporation

27  shall not be deemed to be agents of an insurer. Neither the

28  corporation nor any officer, director, or employee of the

29  corporation is subject to the licensing requirements of the

30  insurance code or the rules of the Department of Financial

31  Services Insurance. However, any marketing representative

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 1  utilized and compensated by the corporation must be appointed

 2  as a representative of the insurers or health services

 3  providers with which the corporation contracts.

 4         (c)  The Department of Financial Services Insurance

 5  shall supervise any liquidation or dissolution of the

 6  corporation and shall have, with respect to such liquidation

 7  or dissolution, all power granted to it pursuant to the

 8  insurance code.

 9         Section 656.  Subsection (5) of section 625.161,

10  Florida Statutes, is amended to read:

11         625.161  Valuation of property.--

12         (5)  In carrying out its responsibilities under this

13  section, in the event that the department and the insurer do

14  not agree on the value of real or personal property of such

15  insurer, the department may retain the services of a qualified

16  real or personal property appraiser.  In the event it is

17  subsequently determined that the insurer has overvalued

18  assets, the department shall be reimbursed for the costs of

19  the services of any such appraiser incurred with respect to

20  its responsibilities under this section regarding an insurer

21  by said insurer and any reimbursement shall be deposited in

22  the Insurance Commissioner's Regulatory Trust Fund.

23         Section 657.  Section 625.317, Florida Statutes, is

24  amended to read:

25         625.317  Corporate bonds and debentures.--An insurer

26  may invest in bonds, notes, or other interest-bearing or

27  interest-accruing obligations of any solvent corporation

28  organized under the laws of the United States or Canada or

29  under the laws of any state, the District of Columbia, any

30  territory or possession of the United States, or any Province

31  of Canada or in bonds or notes issued by the Florida Windstorm

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 1  Underwriting Association or a private nonprofit corporation, a

 2  private nonprofit unincorporated association, or a nonprofit

 3  mutual company organized by that association, all as

 4  authorized in s. 627.351(2)(c), or any subsidiary or affiliate

 5  thereof authorized by the Department of Insurance or the

 6  Department of Financial Services to issue such bonds or notes.

 7         Section 658.  Paragraph (d) of subsection (3) of

 8  section 625.52, Florida Statutes, is amended to read:

 9         625.52  Securities eligible for deposit.--

10         (3)  To be eligible for deposit under paragraph (1)(h),

11  any certificate of deposit must have the following

12  characteristics:

13         (d)  The issuing bank, savings bank, or savings

14  association must agree to the terms and conditions of the

15  Chief Financial Officer State Treasurer regarding the rights

16  to the certificate of deposit and must have executed a written

17  certificate of deposit agreement with the Chief Financial

18  Officer State Treasurer.  The terms and conditions of such

19  agreement shall include, but need not be limited to:

20         1.  Exclusive authorized signature authority for the

21  Chief Financial Officer State Treasurer.

22         2.  Agreement to pay, without protest, the proceeds of

23  its certificate of deposit to the department within 30

24  business days after presentation.

25         3.  Prohibition against levies, setoffs, survivorship,

26  or other conditions that might hinder the department's ability

27  to recover the full face value of a certificate of deposit.

28         4.  Instructions regarding interest payments, renewals,

29  taxpayer identification, and early withdrawal penalties.

30         5.  Agreement to be subject to the jurisdiction of the

31  courts of this state, or those of the United States which are

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 1  located in this state, for the purposes of any litigation

 2  arising out of this section.

 3         6.  Such other conditions as the department requires.

 4         Section 659.  Subsection (2) of section 625.53, Florida

 5  Statutes, is amended to read:

 6         625.53  Depository.--

 7         (2)  The Division of Treasury shall manage department

 8  shall hold all such deposits pursuant to s. 17.59 in

 9  safekeeping in the vaults located in the offices of the

10  Treasurer.

11         Section 660.  Section 625.83, Florida Statutes, is

12  amended to read:

13         625.83  Failure to file reporting forms.--Any insurer

14  who knowingly fails to file information, documents, or reports

15  required to be filed under s. 625.75 or any rule thereunder

16  shall forfeit to the state the sum of $100 for each day such

17  failure to file continues.  Such forfeiture shall be payable

18  to the Chief Financial Officer Treasurer to be deposited in

19  the Insurance Commissioner's Regulatory Trust Fund and shall

20  be recoverable in a civil suit in the name of the state.  A

21  time for filing may be extended for a reasonable period by the

22  department.

23         Section 661.  Section 626.266, Florida Statutes, is

24  amended to read:

25         626.266  Printing of examinations or related materials

26  to preserve examination security.--A contract let for the

27  development, administration, or grading of examinations or

28  related materials by the Department of Financial Services

29  Insurance pursuant to the various agent, customer

30  representative, solicitor, or adjuster licensing and

31  examination provisions of this code may include the printing

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 1  or furnishing of these examinations or related materials in

 2  order to preserve security. Any such contract shall be let as

 3  a contract for a contractual service pursuant to s. 287.057.

 4         Section 662.  Subsections (5) and (6) of section

 5  626.2815, Florida Statutes, are amended to read:

 6         626.2815  Continuing education required; application;

 7  exceptions; requirements; penalties.--

 8         (5)  The Department of Financial Services Insurance

 9  shall refuse to renew the appointment of any agent who has not

10  had his or her continuing education requirements certified

11  unless the agent has been granted an extension by the

12  department. The department may not issue a new appointment of

13  the same or similar type, with any insurer, to an agent who

14  was denied a renewal appointment for failure to complete

15  continuing education as required until the agent completes his

16  or her continuing education requirement.

17         (6)(a)  There is created an 11-member continuing

18  education advisory board to be appointed by the Chief

19  Financial Officer Insurance Commissioner and Treasurer.

20  Appointments shall be for terms of 4 years.  The purpose of

21  the board is to advise the department in determining standards

22  by which courses may be evaluated and categorized as basic,

23  intermediate, or advanced. The board shall establish such

24  criteria and the department shall implement such criteria by

25  January 1, 1997.  The board shall submit recommendations to

26  the department of changes needed in such criteria not less

27  frequently than every 2 years thereafter. The department shall

28  require all approved course providers to submit courses for

29  approval to the department using the criteria.  All materials,

30  brochures, and advertisements related to the approved courses

31  must specify the level assigned to the course.

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 1         (b)  The board members shall be appointed as follows:

 2         1.  Seven members representing agents of which at least

 3  one must be a representative from each of the following

 4  organizations: the Florida Association of Insurance Agents;

 5  the Florida Association of Life Underwriters; the Professional

 6  Insurance Agents of Florida, Inc.; the Florida Association of

 7  Health Underwriters; the Specialty Agents' Association; the

 8  Latin American Agents' Association; and the National

 9  Association of Insurance Women.  Such board members must

10  possess at least a bachelor's degree or higher from an

11  accredited college or university with major coursework in

12  insurance, risk management, or education or possess the

13  designation of CLU, CPCU, CHFC, CFP, AAI, or CIC. In addition,

14  each member must possess 5 years of classroom instruction

15  experience or 5 years of experience in the development or

16  design of educational programs or 10 years of experience as a

17  licensed resident agent. Each organization may submit to the

18  department a list of recommendations for appointment.  If one

19  organization does not submit a list of recommendations, the

20  Chief Financial Officer Insurance Commissioner may select more

21  than one recommended person from a list submitted by other

22  eligible organizations.

23         2.  Two members representing insurance companies at

24  least one of whom must represent a Florida Domestic Company

25  and one of whom must represent the Florida Insurance Council.

26  Such board members must be employed within the training

27  department of the insurance company.  At least one such member

28  must be a member of the Society of Insurance Trainers and

29  Educators.

30         3.  One member representing the general public who is

31  not directly employed in the insurance industry. Such board

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 1  member must possess a minimum of a bachelor's degree or higher

 2  from an accredited college or university with major coursework

 3  in insurance, risk management, training, or education.

 4         4.  One member, appointed by the Chief Financial

 5  Officer Insurance Commissioner, who represents the department.

 6         (c)  The members of the board shall serve at the

 7  pleasure of the Chief Financial Officer Insurance Commissioner

 8  and Treasurer.  Each board member shall be entitled to

 9  reimbursement for expenses pursuant to s. 112.061.  The board

10  shall designate one member as chair.  The board shall meet at

11  the call of the chair or the Chief Financial Officer Insurance

12  Commissioner and Treasurer.

13         Section 663.  Section 626.322, Florida Statutes, is

14  amended to read:

15         626.322  License, appointment; certain military

16  installations.--A natural person, not a resident of this

17  state, may be licensed and appointed to represent an

18  authorized life insurer domiciled in this state or an

19  authorized foreign life insurer which maintains a regional

20  home office in this state, provided such person represents

21  such insurer exclusively at a United States military

22  installation located in a foreign country. The department may,

23  upon request of the applicant and the insurer on application

24  forms furnished by the department and upon payment of fees as

25  prescribed in s. 624.501, issue a license and appointment to

26  such person.  The insurer shall certify to the department that

27  the applicant has the necessary training to hold himself or

28  herself out as a life insurance representative, and the

29  insurer shall further certify that it is willing to be bound

30  by the acts of such applicant within the scope of his or her

31  employment. Appointments shall be continued as prescribed in

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 1  s. 626.381 and upon payment of a fee as prescribed in s.

 2  624.501, unless sooner terminated.  Such fees received shall

 3  be credited to the Insurance Commissioner's Regulatory Trust

 4  Fund as provided for in s. 624.523.

 5         Section 664.  Subsection (1) of section 626.592,

 6  Florida Statutes, is amended to read:

 7         626.592  Primary agents.--

 8         (1)  Each person operating an insurance agency and each

 9  location of a multiple location agency shall designate a

10  primary agent for each insurance agency location and shall

11  file the name of the person so designated, and the address of

12  the insurance agency location where he or she is primary

13  agent, with the Department of Financial Services Insurance, on

14  a form approved by the department. The designation of the

15  primary agent may be changed at the option of the agency, and

16  any change shall be effective upon notification to the

17  department. Notice of change must be sent to the department

18  within 30 days after such change.

19         Section 665.  Section 626.742, Florida Statutes, is

20  amended to read:

21         626.742  Nonresident agents; service of process.--

22         (1)  Each licensed nonresident agent shall appoint the

23  Chief Financial Officer Insurance Commissioner and Treasurer

24  as his or her attorney to receive service of legal process

25  issued against the agent in this state, upon causes of action

26  arising within this state out of transactions under the

27  agent's license and appointment. Service upon the Chief

28  Financial Officer Insurance Commissioner and Treasurer as

29  attorney shall constitute effective legal service upon the

30  agent.

31  

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 1         (2)  The appointment of the Chief Financial Officer

 2  Insurance Commissioner and Treasurer for service of process

 3  shall be irrevocable for as long as there could be any cause

 4  of action against the agent arising out of his or her

 5  insurance transactions in this state.

 6         (3)  Duplicate copies of such legal process against

 7  such agent shall be served upon the Chief Financial Officer

 8  Insurance Commissioner and Treasurer by a person competent to

 9  serve a summons.

10         (4)  Upon receiving such service, the Chief Financial

11  Officer Insurance Commissioner and Treasurer shall forthwith

12  send one of the copies of the process, by registered mail with

13  return receipt requested, to the defendant agent at his or her

14  last address of record with the department.

15         (5)  The Chief Financial Officer Insurance Commissioner

16  and Treasurer shall keep a record of the day and hour of

17  service upon him or her of all such legal process.

18         Section 666.  Paragraph (e) of subsection (3) of

19  section 626.7492, Florida Statutes, is amended to read:

20         626.7492  Reinsurance intermediaries.--

21         (3)  LICENSURE.--

22         (e)  If the applicant for a reinsurance intermediary

23  license is a nonresident, the applicant, as a condition

24  precedent to receiving or holding a license, must designate

25  the Chief Financial Officer Insurance Commissioner as agent

26  for service of process in the manner, and with the same legal

27  effect, provided for by this section for designation of

28  service of process upon unauthorized insurers. Such applicant

29  shall also furnish the department with the name and address of

30  a resident of this state upon whom notices or orders of the

31  department or process affecting the nonresident reinsurance

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 1  intermediary may be served.  The licensee shall promptly

 2  notify the department in writing of each change in its

 3  designated agent for service of process, and the change shall

 4  not become effective until acknowledged by the department.

 5         Section 667.  Subsection (1) of section 626.8427,

 6  Florida Statutes, is amended to read:

 7         626.8427  Number of applications for licensure

 8  required; exemption; effect of expiration of license.--

 9         (1)  After a license as a title insurance agent has

10  been issued to a title insurance agent, the agent is not

11  required to file another license application for a similar

12  license, irrespective of the number of insurers to be

13  represented by the agent, unless:

14         (a)  The agent is specifically ordered by the

15  department to complete a new application; or

16         (b)  During any period of 48 months since the filing of

17  the original license application, the agent was not appointed,

18  unless in the case of individuals the failure to be so

19  appointed was due to military service, in which event the

20  period within which a new application is not required may, in

21  the discretion of the Department of Financial Services

22  Insurance, be extended for 12 months following the date of

23  discharge from military service if the military service does

24  not exceed 3 years, but in no event shall the period be

25  extended under this clause for a period of more than 6 years

26  from the date of filing the original application.

27         Section 668.  Subsection (1) of section 626.8463,

28  Florida Statutes, is amended to read:

29         626.8463  Witnesses and evidence.--

30         (1)  As to the subject of any examination,

31  investigation, or hearing being conducted by him or her under

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 1  s. 624.5015, ss. 626.8417-626.847, or s. 627.791, an examiner

 2  appointed by the Department of Financial Services Insurance

 3  may administer oaths, examine and cross-examine witnesses, and

 4  receive oral and documentary evidence and shall have the power

 5  to subpoena witnesses, compel their attendance and testimony,

 6  and require by subpoena the production of books, papers,

 7  records, files, correspondence, documents, or other evidence

 8  which the examiner deems relevant to the inquiry.

 9         Section 669.  Section 626.8467, Florida Statutes, is

10  amended to read:

11         626.8467  Testimony compelled; immunity from

12  prosecution.--

13         (1)  If a person asks to be excused from attending or

14  testifying or from producing any books, papers, records,

15  contracts, documents, or other evidence in connection with any

16  examination, hearing, or investigation being conducted under

17  s. 624.5015, ss. 626.8417-626.847, or s. 627.791 by the

18  department or its examiner on the ground that the testimony or

19  evidence required of the person may tend to incriminate him or

20  her or subject him or her to a penalty or forfeiture and

21  notwithstanding is directed to give such testimony or produce

22  such evidence, the person must, if so directed by the

23  Department of Financial Services Insurance and the Department

24  of Legal Affairs, nonetheless comply with such direction, but

25  he or she shall not thereafter be prosecuted or subjected to

26  any penalty or forfeiture for or on account of any

27  transaction, matter, or thing concerning which he or she may

28  have so testified or produced evidence, and no testimony so

29  given or evidence produced shall be received against the

30  person upon any criminal action, investigation, or proceeding.

31  However, a person so testifying shall not be exempt from

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 1  prosecution or punishment for any perjury committed by him or

 2  her in such testimony, and the testimony or evidence so given

 3  or produced shall be admissible against him or her upon any

 4  criminal action, investigation, or proceeding concerning such

 5  perjury; and such person shall not be exempt from the refusal,

 6  suspension, or revocation of any license or appointment,

 7  permission, or authority conferred or to be conferred pursuant

 8  to s. 624.5015, ss. 626.8417-626.847, or s. 627.791.

 9         (2)  Any such person may execute, acknowledge, and file

10  in the office of the Department of Financial Services

11  Insurance a statement expressly waiving such immunity or

12  privilege with respect to any transaction, matter, or thing

13  specified in the statement, and thereupon the testimony of

14  such person or such evidence in relation to such transaction,

15  matter, or thing may be received or produced before any judge

16  or justice, court, tribunal, or grand jury or otherwise and,

17  if so received or produced, such person shall not be entitled

18  to any immunity or privilege on account of any testimony he or

19  she may so give or evidence so produced.

20         Section 670.  Section 626.847, Florida Statutes, is

21  amended to read:

22         626.847  Penalty for refusal to testify.--A person who

23  refuses or fails, without lawful cause, to testify relative to

24  the affairs of any title insurer or other person when

25  subpoenaed under s. 626.8463 and requested by the Department

26  of Financial Services Insurance to so testify is guilty of a

27  misdemeanor of the second degree and, upon conviction, is

28  punishable as provided in s. 775.082 or s. 775.083.

29         Section 671.  Section 626.8736, Florida Statutes, is

30  amended to read:

31  

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 1         626.8736  Nonresident independent or public adjusters;

 2  service of process.--

 3         (1)  Each licensed nonresident independent or public

 4  adjuster shall appoint the Chief Financial Officer Insurance

 5  Commissioner and Treasurer and his or her successors in office

 6  as his or her attorney to receive service of legal process

 7  issued against the nonresident independent or public adjuster

 8  in this state, upon causes of action arising within this state

 9  out of transactions under his license and appointment. Service

10  upon the Chief Financial Officer Insurance Commissioner and

11  Treasurer as attorney shall constitute effective legal service

12  upon the nonresident independent or public adjuster.

13         (2)  The appointment of the Chief Financial Officer

14  Insurance Commissioner and Treasurer for service of process

15  shall be irrevocable for as long as there could be any cause

16  of action against the nonresident independent or public

17  adjuster arising out of his or her insurance transactions in

18  this state.

19         (3)  Duplicate copies of legal process against the

20  nonresident independent or public adjuster shall be served

21  upon the Chief Financial Officer Insurance Commissioner and

22  Treasurer by a person competent to serve a summons.

23         (4)  Upon receiving the service, the Chief Financial

24  Officer Insurance Commissioner and Treasurer shall forthwith

25  send one of the copies of the process, by registered mail with

26  return receipt requested, to the defendant nonresident

27  independent or public adjuster at his or her last address of

28  record with the department.

29         (5)  The Chief Financial Officer Insurance Commissioner

30  and Treasurer shall keep a record of the day and hour of

31  

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 1  service upon him or her of all legal process received under

 2  this section.

 3         Section 672.  Section 626.906, Florida Statutes, is

 4  amended to read:

 5         626.906  Acts constituting Chief Financial Officer

 6  Insurance Commissioner and Treasurer as process agent.--Any of

 7  the following acts in this state, effected by mail or

 8  otherwise, by an unauthorized foreign insurer, alien insurer,

 9  or person representing or aiding such an insurer is equivalent

10  to and shall constitute an appointment by such insurer or

11  person representing or aiding such insurer of the Chief

12  Financial Officer Insurance Commissioner and Treasurer, and

13  his or her successor or successors in office, to be its true

14  and lawful attorney, upon whom may be served all lawful

15  process in any action, suit, or proceeding instituted by or on

16  behalf of an insured or beneficiary, arising out of any such

17  contract of insurance; and any such act shall be signification

18  of the insurer's or person's agreement that such service of

19  process is of the same legal force and validity as personal

20  service of process in this state upon such insurer or person

21  representing or aiding such insurer:

22         (1)  The issuance or delivery of contracts of insurance

23  to residents of this state or to corporations authorized to do

24  business therein;

25         (2)  The solicitation of applications for such

26  contracts;

27         (3)  The collection of premiums, membership fees,

28  assessments, or other considerations for such contracts; or

29         (4)  Any other transaction of insurance.

30         Section 673.  Subsection (1) of section 626.907,

31  Florida Statutes, is amended to read:

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 1         626.907  Service of process; judgment by default.--

 2         (1)  Service of process upon an insurer or person

 3  representing or aiding such insurer pursuant to s. 626.906

 4  shall be made by delivering to and leaving with the Chief

 5  Financial Officer Insurance Commissioner and Treasurer or some

 6  person in apparent charge of his or her office two copies

 7  thereof.  The Chief Financial Officer Insurance Commissioner

 8  and Treasurer shall forthwith mail by registered mail one of

 9  the copies of such process to the defendant at the defendant's

10  last known principal place of business and shall keep a record

11  of all process so served upon him or her.  The service of

12  process is sufficient, provided notice of such service and a

13  copy of the process are sent within 10 days thereafter by

14  registered mail by plaintiff or plaintiff's attorney to the

15  defendant at the defendant's last known principal place of

16  business, and the defendant's receipt, or receipt issued by

17  the post office with which the letter is registered, showing

18  the name of the sender of the letter and the name and address

19  of the person to whom the letter is addressed, and the

20  affidavit of the plaintiff or plaintiff's attorney showing a

21  compliance herewith are filed with the clerk of the court in

22  which the action is pending on or before the date the

23  defendant is required to appear, or within such further time

24  as the court may allow.

25         Section 674.  Section 626.912, Florida Statutes, is

26  amended to read:

27         626.912  Exemptions from ss. 626.904-626.911.--The

28  provisions of ss. 626.904-626.911 do not apply to any action,

29  suit, or proceeding against any unauthorized foreign insurer,

30  alien insurer, or person representing or aiding such an

31  insurer arising out of any contract of insurance:

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 1         (1)  Covering reinsurance, wet marine and

 2  transportation, commercial aircraft, or railway insurance

 3  risks;

 4         (2)  Against legal liability arising out of the

 5  ownership, operation, or maintenance of any property having a

 6  permanent situs outside this state;

 7         (3)  Against loss of or damage to any property having a

 8  permanent situs outside this state; or

 9         (4)  Issued under and in accordance with the Surplus

10  Lines Law, when such insurer or person representing or aiding

11  such insurer enters a general appearance or when such contract

12  of insurance contains a provision designating the Chief

13  Financial Officer Insurance Commissioner and Treasurer and his

14  or her successor or successors in office or designating a

15  Florida resident agent to be the true and lawful attorney of

16  such unauthorized insurer or person representing or aiding

17  such insurer upon whom may be served all lawful process in any

18  action, suit, or proceeding instituted by or on behalf of an

19  insured or person representing or aiding such insurer or

20  beneficiary arising out of any such contract of insurance; and

21  service of process effected on such Chief Financial Officer

22  Insurance Commissioner and Treasurer, his or her successor or

23  successors in office, or such resident agent shall be deemed

24  to confer complete jurisdiction over such unauthorized insurer

25  or person representing or aiding such insurer in such action.

26         Section 675.  Subsections (5) and (6) of section

27  626.918, Florida Statutes, are amended to read:

28         626.918  Eligible surplus lines insurers.--

29         (5)  When it appears that any particular insurance risk

30  which is eligible for export, but on which insurance coverage,

31  in whole or in part, is not procurable from the eligible

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 1  surplus lines insurers, after a search of eligible surplus

 2  lines insurers, then the surplus lines agent may file a

 3  supplemental signed statement setting forth such facts and

 4  advising the department that such part of the risk as shall be

 5  unprocurable, as aforesaid, is being placed with named

 6  unauthorized insurers, in the amounts and percentages set

 7  forth in the statement.  Such named unauthorized insurer

 8  shall, however, before accepting any risk in this state,

 9  deposit with the department cash or securities acceptable to

10  the department of the market value of $50,000 for each

11  individual risk, contract, or certificate, which deposit shall

12  be held by the department for the benefit of Florida

13  policyholders only; and the surplus lines agent shall procure

14  from such unauthorized insurer and file with the department a

15  certified copy of its statement of condition as of the close

16  of the last calendar year.  If such statement reveals,

17  including both capital and surplus, net assets of at least

18  that amount required for licensure of a domestic insurer, then

19  the surplus lines agent may proceed to consummate such

20  contract of insurance.  Whenever any insurance risk, or any

21  part thereof, is placed with an unauthorized insurer, as

22  provided herein, the policy, binder, or cover note shall

23  contain a statement signed by the insured and the agent with

24  the following notation: "The insured is aware that certain

25  insurers participating in this risk have not been approved to

26  transact business in Florida nor have they been declared

27  eligible as surplus lines insurers by the Department of

28  Financial Services Insurance of Florida.  The placing of such

29  insurance by a duly licensed surplus lines agent in Florida

30  shall not be construed as approval of such insurer by the

31  Department of Financial Services Insurance of Florida.

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 1  Consequently, the insured is aware that the insured has

 2  severely limited the assistance available under the insurance

 3  laws of Florida.  The insured is further aware that he or she

 4  may be charged a reasonable per policy fee, as provided in s.

 5  626.916(4), Florida Statutes, for each policy certified for

 6  export." All other provisions of this code shall apply to such

 7  placement the same as if such risks were placed with an

 8  eligible surplus lines insurer.

 9         (6)  When any particular insurance risk subject to

10  subsection (5) is eligible for placement with an unauthorized

11  insurer and not more than 12.5 percent of the risk is so

12  subject, the Department of Financial Services Insurance may,

13  at its discretion, permit the agent to obtain from the insured

14  a signed statement as indicated in subsection (5).  All other

15  provisions of this code apply to such placement the same as if

16  such risks were placed with an eligible surplus lines insurer.

17         Section 676.  Subsection (5) of section 626.931,

18  Florida Statutes, is amended to read:

19         626.931  Agent affidavit and insurer reporting

20  requirements.--

21         (5)  The Chief Financial Officer may Insurance

22  Commissioner shall have the authority to waive the filing

23  requirements described in subsections (3) and (4).

24         Section 677.  Paragraph (a) of subsection (2) and

25  subsection (5) of section 626.932, Florida Statutes, are

26  amended to read:

27         626.932  Surplus lines tax.--

28         (2)

29         (a)  The surplus lines agent shall make payable to the

30  Department of Financial Services Insurance the tax related to

31  each calendar quarter's business as reported to the Florida

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 1  Surplus Lines Service Office, and remit the tax to the Florida

 2  Surplus Lines Service Office at the same time as provided for

 3  the filing of the quarterly affidavit, under s. 626.931. The

 4  Florida Surplus Lines Service Office shall forward to the

 5  department the taxes and any interest collected pursuant to

 6  paragraph (b), within 10 days of receipt.

 7         (5)  The department shall deposit 55 percent of all

 8  taxes collected under this section to the credit of the

 9  Insurance Commissioner's Regulatory Trust Fund.  Forty-five

10  percent of all taxes collected under this section shall be

11  deposited into the General Revenue Fund.

12         Section 678.  Section 626.936, Florida Statutes, is

13  amended to read:

14         626.936  Failure to file reports or pay tax or service

15  fee; administrative penalty.--

16         (1)  Any licensed surplus lines agent who neglects to

17  file a report or an affidavit in the form and within the time

18  required or provided for in the Surplus Lines Law may be fined

19  up to $50 per day for each day the neglect continues,

20  beginning the day after the report or affidavit was due until

21  the date the report or affidavit is received. All sums

22  collected under this section shall be deposited into the

23  Insurance Commissioner's Regulatory Trust Fund.

24         (2)  Any licensed surplus lines agent who neglects to

25  pay the taxes or service fees as required under the Surplus

26  Lines Law and within the time required may be fined up to $500

27  per day for each day the failure to pay continues, beginning

28  the day after the tax or service fees were due. The agent

29  shall pay interest on the amount of any delinquent tax due, at

30  the rate of 9 percent per year, compounded annually, beginning

31  the day the amount becomes delinquent.  The department shall

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 1  deposit all sums collected under this section into the

 2  Insurance Commissioner's Regulatory Trust Fund.

 3         Section 679.  Section 626.9361, Florida Statutes, is

 4  amended to read:

 5         626.9361  Failure to file report; administrative

 6  penalty.--Any eligible surplus lines insurer who fails to file

 7  a report in the form and within the time required or provided

 8  for in the Surplus Lines Law may be fined up to $500 per day

 9  for each day such failure continues, beginning the day after

10  the report was due, until the date the report is received.

11  Failure to file a report may also result in withdrawal of

12  eligibility as a surplus lines insurer in this state. All sums

13  collected by the department under this section shall be

14  deposited into the Insurance Commissioner's Regulatory Trust

15  Fund.

16         Section 680.  Subsections (2), (3), and (4) of section

17  626.937, Florida Statutes, are amended to read:

18         626.937  Actions against insurer; service of process.--

19         (2)  The unauthorized insurer accepting the risk or

20  issuing the policy shall be deemed thereby to have authorized

21  service of process against it in the manner and to the effect

22  as provided in this section, and to have appointed the Chief

23  Financial Officer Insurance Commissioner and Treasurer as its

24  agent for service of process issuing upon any cause of action

25  arising in this state under any such policy, contract, or

26  insurance.

27         (3)  Each unauthorized insurer requesting eligibility

28  pursuant to s. 626.918 shall file with the department its

29  appointment of the Chief Financial Officer Insurance

30  Commissioner and Treasurer and his or her successors in

31  office, on a form as furnished by the department, as its

                                 619

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 1  attorney to receive service of all legal process issued

 2  against it in any civil action or proceeding in this state,

 3  and agreeing that process so served shall be valid and binding

 4  upon the insurer. The appointment shall be irrevocable, shall

 5  bind the insurer and any successor in interest as to the

 6  assets or liabilities of the insurer, and shall remain in

 7  effect as long as there is outstanding in this state any

 8  obligation or liability of the insurer resulting from its

 9  insurance transactions therein.

10         (4)  At the time of such appointment of the Chief

11  Financial Officer Insurance Commissioner and Treasurer as its

12  process agent, the insurer shall file with the department

13  designation of the name and address of the person to whom

14  process against it served upon the Chief Financial Officer

15  Insurance Commissioner and Treasurer is to be forwarded.  The

16  insurer may change the designation at any time by a new

17  filing.

18         Section 681.  Subsections (3) and (7) of section

19  626.938, Florida Statutes, are amended to read:

20         626.938  Report and tax of independently procured

21  coverages.--

22         (3)  For the general support of the government of this

23  state, there is levied upon the obligation, chose in action,

24  or right represented by the premium charged for such insurance

25  a tax at the rate of 5 percent of the gross amount of such

26  premium and a 0.3 percent service fee pursuant to s. 626.9325.

27  The insured shall withhold the amount of the tax and service

28  fee from the amount of premium charged by and otherwise

29  payable to the insurer for such insurance. Within 30 days

30  after the insurance is procured, continued, or renewed, and

31  simultaneously with the filing of the report provided for in

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 1  subsection (1) with the Florida Surplus Lines Service Office,

 2  the insured shall make payable to the Department of Financial

 3  Services Insurance the amount of the tax and make payable to

 4  the Florida Surplus Lines Service Office the amount of the

 5  service fee. The insured shall remit the tax and the service

 6  fee to the Florida Surplus Lines Service Office. The Florida

 7  Surplus Lines Service Office shall forward to the department

 8  the taxes, and any interest collected pursuant to subsection

 9  (5), within 10 days after receipt.

10         (7)  The department shall deposit 55 percent of all

11  taxes and interest collected under this section to the credit

12  of the Insurance Commissioner's Regulatory Trust Fund.

13  Forty-five percent of all taxes and interest collected under

14  this section shall be deposited into the General Revenue Fund.

15         Section 682.  Subsection (2) of section 626.9511,

16  Florida Statutes, is amended to read:

17         626.9511  Definitions.--When used in this part:

18         (2)  "Department" means the Department of Financial

19  Services Insurance of this state.

20         Section 683.  Paragraph (w) of subsection (1) of

21  section 626.9541, Florida Statutes, is amended to read:

22         626.9541  Unfair methods of competition and unfair or

23  deceptive acts or practices defined.--

24         (1)  UNFAIR METHODS OF COMPETITION AND UNFAIR OR

25  DECEPTIVE ACTS.--The following are defined as unfair methods

26  of competition and unfair or deceptive acts or practices:

27         (w)  Soliciting or accepting new or renewal insurance

28  risks by insolvent or impaired insurer prohibited; penalty.--

29         1.  Whether or not delinquency proceedings as to the

30  insurer have been or are to be initiated, but while such

31  insolvency or impairment exists, no director or officer of an

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 1  insurer, except with the written permission of the department

 2  of Insurance, shall authorize or permit the insurer to solicit

 3  or accept new or renewal insurance risks in this state after

 4  such director or officer knew, or reasonably should have

 5  known, that the insurer was insolvent or impaired. "Impaired"

 6  includes impairment for capital or surplus, as defined in s.

 7  631.011(9) and (10).

 8         2.  Any such director or officer, upon conviction of a

 9  violation of this paragraph, is guilty of a felony of the

10  third degree, punishable as provided in s. 775.082, s.

11  775.083, or s. 775.084.

12         Section 684.  Paragraph (a) of subsection (3) of

13  section 626.9543, Florida Statutes, is amended to read:

14         626.9543  Holocaust victims.--

15         (3)  DEFINITIONS.--For the purpose of this section:

16         (a)  "Department" means the Department of Financial

17  Services Insurance.

18         Section 685.  Paragraph (e) of subsection (4) and

19  subsection (9) of section 626.989, Florida Statutes, are

20  amended to read:

21         626.989  Investigation by department or Division of

22  Insurance Fraud; compliance; immunity; confidential

23  information; reports to division; division investigator's

24  power of arrest.--

25         (4)

26         (e)  The Chief Financial Officer Insurance Commissioner

27  and any employee or agent of the department or division, when

28  acting without malice and in the absence of fraud or bad

29  faith, is not subject to civil liability for libel, slander,

30  or any other relevant tort, and no civil cause of action of

31  any nature exists against such person by virtue of the

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 1  execution of official activities or duties of the department

 2  under this section or by virtue of the publication of any

 3  report or bulletin related to the official activities or

 4  duties of the department or division under this section.

 5         (9)  In recognition of the complementary roles of

 6  investigating instances of workers' compensation fraud and

 7  enforcing compliance with the workers' compensation coverage

 8  requirements under chapter 440, the Division of Insurance

 9  Fraud of the Department of Financial Services Insurance and

10  the Division of Workers' Compensation of the Department of

11  Labor and Employment Security are directed to prepare and

12  submit a joint performance report to the President of the

13  Senate and the Speaker of the House of Representatives by

14  November 1 of each year for each of the next 2 years, and then

15  every 3 years thereafter, describing the results obtained in

16  achieving compliance with the workers' compensation coverage

17  requirements and reducing the incidence of workers'

18  compensation fraud.

19         Section 686.  Subsection (1) of section 626.9892,

20  Florida Statutes, is amended to read:

21         626.9892  Anti-Fraud Reward Program; reporting of

22  insurance fraud.--

23         (1)  The Anti-Fraud Reward Program is hereby

24  established within the department, to be funded from the

25  Insurance Commissioner's Regulatory Trust Fund.

26         Section 687.  Subsections (1) and (4) of section

27  626.9911, Florida Statutes, are amended to read:

28         626.9911  Definitions.--As used in this act, the term:

29         (1)  "Department" means the Department of Financial

30  Services Insurance.

31  

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 1         (4)  "Viatical settlement broker" means a person who,

 2  on behalf of a viator and for a fee, commission, or other

 3  valuable consideration, offers or attempts to negotiate

 4  viatical settlement contracts between a viator resident in

 5  this state and one or more viatical settlement providers.

 6  Notwithstanding the manner in which the viatical settlement

 7  broker is compensated, a viatical settlement broker is deemed

 8  to represent only the viator and owes a fiduciary duty to the

 9  viator to act according to the viator's instructions and in

10  the best interest of the viator.  The term does not include an

11  attorney, licensed Certified Public Accountant, or investment

12  adviser lawfully registered with the department of Banking and

13  Finance under chapter 517, who is retained to represent the

14  viator and whose compensation is paid directly by or at the

15  direction and on behalf of the viator.

16         Section 688.  Paragraph (e) of subsection (5) of

17  section 626.9912, Florida Statutes, is amended to read:

18         626.9912  Viatical settlement provider license

19  required; application for license.--

20         (5)  Upon the filing of a sworn application and the

21  payment of the license fee, the department shall investigate

22  each applicant and may issue the applicant a license if the

23  department finds that the applicant:

24         (e)  Has designated the Chief Financial Officer

25  Insurance Commissioner and Treasurer as its agent for service

26  of process.

27         Section 689.  Paragraph (e) of subsection (7) and

28  subsection (8) of section 626.9916, Florida Statutes, are

29  amended to read:

30         626.9916  Viatical settlement broker license required;

31  application for license.--

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 1         (7)  Upon the filing of a sworn application and the

 2  payment of the license fee and all other applicable fees under

 3  this act, the department shall investigate each applicant and

 4  may issue the applicant a license if the department finds that

 5  the applicant:

 6         (e)  Has designated the Chief Financial Officer

 7  Insurance Commissioner and Treasurer as its agent for service

 8  of process.

 9         (8)  An applicant for a nonresident viatical settlement

10  broker license must, in addition to designating the Chief

11  Financial Officer Insurance Commissioner and Treasurer as

12  agent for service of process as required by this section, also

13  furnish the department with the name and address of a resident

14  of this state upon whom notices or orders of the department or

15  process affecting the applicant or licensee may be served.

16  After issuance of the license, the licensee must also notify

17  the department of change of the person to receive such

18  notices, orders, or process; such change is not effective

19  until acknowledged by the department.

20         Section 690.  Section 627.0613, Florida Statutes, is

21  amended to read:

22         627.0613  Consumer advocate.--The Chief Financial

23  Officer Insurance Commissioner must appoint a consumer

24  advocate who must represent the general public of the state

25  before the department.  The consumer advocate must report

26  directly to the Chief Financial Officer Insurance

27  Commissioner, but is not otherwise under the authority of the

28  department or of any employee of the department.  The consumer

29  advocate has such powers as are necessary to carry out the

30  duties of the office of consumer advocate, including, but not

31  limited to, the powers to:

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 1         (1)  Recommend to the department, by petition, the

 2  commencement of any proceeding or action; appear in any

 3  proceeding or action before the department; or appear in any

 4  proceeding before the Division of Administrative Hearings

 5  relating to subject matter under the jurisdiction of the

 6  department.

 7         (2)  Have access to and use of all files, records, and

 8  data of the department.

 9         (3)  Examine rate and form filings submitted to the

10  department, hire consultants as necessary to aid in the review

11  process, and recommend to the department any position deemed

12  by the consumer advocate to be in the public interest.

13         (4)  Prepare an annual budget for presentation to the

14  Legislature by the department, which budget must be adequate

15  to carry out the duties of the office of consumer advocate.

16         Section 691.  Paragraphs (b) and (c) of subsection (2)

17  of section 627.0628, Florida Statutes, are amended to read:

18         627.0628  Florida Commission on Hurricane Loss

19  Projection Methodology.--

20         (2)  COMMISSION CREATED.--

21         (b)  The commission shall consist of the following 11

22  members:

23         1.  The insurance consumer advocate.

24         2.  The Chief Operating Officer of the Florida

25  Hurricane Catastrophe Fund.

26         3.  The Executive Director of the Residential Property

27  and Casualty Joint Underwriting Association.

28         4.  The Director of the Division of Emergency

29  Management of the Department of Community Affairs.

30         5.  The actuary member of the Florida Hurricane

31  Catastrophe Fund Advisory Council.

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 1         6.  Six members appointed by the Chief Financial

 2  Officer Insurance Commissioner, as follows:

 3         a.  An employee of the Department of Financial Services

 4  Insurance who is an actuary responsible for property insurance

 5  rate filings.

 6         b.  An actuary who is employed full time by a property

 7  and casualty insurer which was responsible for at least 1

 8  percent of the aggregate statewide direct written premium for

 9  homeowner's insurance in the calendar year preceding the

10  member's appointment to the commission.

11         c.  An expert in insurance finance who is a full time

12  member of the faculty of the State University System and who

13  has a background in actuarial science.

14         d.  An expert in statistics who is a full time member

15  of the faculty of the State University System and who has a

16  background in insurance.

17         e.  An expert in computer system design who is a full

18  time member of the faculty of the State University System.

19         f.  An expert in meteorology who is a full time member

20  of the faculty of the State University System and who

21  specializes in hurricanes.

22         (c)  Members designated under subparagraphs (b)1.-5.

23  shall serve on the commission as long as they maintain the

24  respective offices designated in subparagraphs (b)1.-5.

25  Members appointed by the Chief Financial Officer Insurance

26  Commissioner under subparagraph (b)6. shall serve on the

27  commission until the end of the term of office of the Chief

28  Financial officer Insurance Commissioner who appointed them,

29  unless earlier removed by the Chief Financial Officer

30  Insurance Commissioner for cause.  Vacancies on the commission

31  

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 1  shall be filled in the same manner as the original

 2  appointment.

 3         Section 692.  Paragraph (b) of subsection (5) of

 4  section 627.0651, Florida Statutes, is amended to read:

 5         627.0651  Making and use of rates for motor vehicle

 6  insurance.--

 7         (5)

 8         (b)  The department Insurance Commissioner shall have

 9  the responsibility to ensure that rates for private passenger

10  vehicle insurance are adequate. To that end, the department

11  shall adopt promulgate rules and regulations establishing

12  standards defining inadequate rates on private passenger

13  vehicle insurance as defined in s. 627.041(8). In the event

14  that the department finds that a rate or rate change is

15  inadequate, the department shall order that a new rate or rate

16  schedule be thereafter filed by the insurer and shall further

17  provide information as to the manner in which noncompliance of

18  the standards may be corrected.  When a violation of this

19  provision occurs, the department shall impose an

20  administrative fine pursuant to s. 624.4211.

21         Section 693.  Section 627.06535, Florida Statutes, is

22  amended to read:

23         627.06535  Electric vehicles; restrictions on imposing

24  surcharges.--An insurer may not impose a surcharge on the

25  premium for motor vehicle insurance written on an electric

26  vehicle, as defined in s. 320.01, if the surcharge is based on

27  a factor such as new technology, passenger payload,

28  weight-to-horsepower ratio, or types of materials, including

29  composite materials or aluminum, used to manufacture the

30  vehicle, unless the Department of Financial Services Insurance

31  

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 1  determines from actuarial data submitted to it that the

 2  surcharge is justified.

 3         Section 694.  Section 627.0915, Florida Statutes, is

 4  amended to read:

 5         627.0915  Rate filings; workers' compensation,

 6  drug-free workplace, and safe employers.--The Department of

 7  Financial Services Insurance shall approve rating plans for

 8  workers' compensation insurance that give specific

 9  identifiable consideration in the setting of rates to

10  employers that either implement a drug-free workplace program

11  pursuant to rules adopted by the Division of Workers'

12  Compensation of the Department of Labor and Employment

13  Security or implement a safety program pursuant to provisions

14  of the rating plan or implement both a drug-free workplace

15  program and a safety program. The plans must be actuarially

16  sound and must state the savings anticipated to result from

17  such drug-testing and safety programs.

18         Section 695.  Section 627.0916, Florida Statutes, is

19  amended to read:

20         627.0916  Agricultural horse farms.--Notwithstanding

21  any other provision of this chapter to the contrary, any

22  rates, rating schedules, or rating manuals for workers'

23  compensation and employer's liability insurance filed with the

24  Department of Financial Services Insurance shall provide for

25  the rates of an agricultural horse farm engaged in breeding or

26  training to be separated into the following three rate

27  classifications and the premium paid shall be applied

28  proportionately according to payroll: breeding activity

29  involving stallions; breeding activity not involving

30  stallions, including but not limited to boarding and foaling;

31  and training.

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 1         Section 696.  Section 627.092, Florida Statutes, is

 2  amended to read:

 3         627.092  Workers' Compensation Administrator.--There is

 4  created within the Division of Insurance Insurer Services of

 5  the Department of Financial Services Insurance the position of

 6  Workers' Compensation Administrator to monitor carrier

 7  practices in the field of workers' compensation.

 8         Section 697.  Subsection (2) of section 627.096,

 9  Florida Statutes, is amended to read:

10         627.096  Workers' Compensation Rating Bureau.--

11         (2)  The acquisition by the Department of Management

12  Services of data processing software, hardware, and services

13  necessary to carry out the provisions of this act for the

14  Chief Financial Officer's Treasurer's Management Information

15  Center of the Department of Financial Services Insurance shall

16  be exempt from the provisions of part I of chapter 287.

17         Section 698.  Subsection (3) of section 627.221,

18  Florida Statutes, is amended to read:

19         627.221  Rating organizations; licensing; fee.--

20         (3)  The fee for the license shall be in the amount

21  specified therefor in s. 624.501.  This fee, when collected,

22  shall be deposited to the credit of the Insurance

23  Commissioner's Regulatory Trust Fund.

24         Section 699.  Paragraph (e) of subsection (3) and

25  paragraph (b) of subsection (4) of section 627.311, Florida

26  Statutes, are amended to read:

27         627.311  Joint underwriters and joint reinsurers.--

28         (3)  The department may, after consultation with

29  insurers licensed to write automobile insurance in this state,

30  approve a joint underwriting plan for purposes of equitable

31  apportionment or sharing among insurers of automobile

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 1  liability insurance and other motor vehicle insurance, as an

 2  alternate to the plan required in s. 627.351(1). All insurers

 3  authorized to write automobile insurance in this state shall

 4  subscribe to the plan and participate therein. The plan shall

 5  be subject to continuous review by the department which may at

 6  any time disapprove the entire plan or any part thereof if it

 7  determines that conditions have changed since prior approval

 8  and that in view of the purposes of the plan changes are

 9  warranted. Any disapproval by the department shall be subject

10  to the provisions of chapter 120.  If adopted, the plan and

11  the association created under the plan:

12         (e)  Must provide that the joint underwriting

13  association will operate subject to the supervision and

14  approval of a board of governors consisting of 11 individuals,

15  including 1 who will be elected as chair. Five members of the

16  board must be appointed by the Chief Financial Officer

17  Insurance Commissioner. Two of those the commissioner's

18  appointees must be chosen from the insurance industry.  Any

19  board member appointed by the Chief Financial Officer

20  Insurance Commissioner may be removed and replaced by her or

21  him at any time without cause.  Six members of the board must

22  be appointed by the participating insurers, two of whom must

23  be from the insurance agents' associations.  All board

24  members, including the chair, must be appointed to serve for

25  2-year terms beginning annually on a date designated by the

26  plan.

27         (4)

28         (b)  The operation of the plan is subject to the

29  supervision of a 13-member board of governors. The board of

30  governors shall be comprised of:

31  

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 1         1.  Five of the 20 domestic insurers, as defined in s.

 2  624.06(1), having the largest voluntary direct premiums

 3  written in this state for workers' compensation and employer's

 4  liability insurance, which shall be elected by those 20

 5  domestic insurers;

 6         2.  Five of the 20 foreign insurers as defined in s.

 7  624.06(2) having the largest voluntary direct premiums written

 8  in this state for workers' compensation and employer's

 9  liability insurance, which shall be elected by those 20

10  foreign insurers;

11         3.  One person, who shall serve as the chair, appointed

12  by the Chief Financial Officer Insurance Commissioner;

13         4.  One person appointed by the largest property and

14  casualty insurance agents' association in this state; and

15         5.  The consumer advocate appointed under s. 627.0613

16  or the consumer advocate's designee.

17  

18  Each board member shall serve a 4-year term and may serve

19  consecutive terms. No board member shall be an insurer which

20  provides service to the plan or which has an affiliate which

21  provides services to the plan or which is serviced by a

22  service company or third-party administrator which provides

23  services to the plan or which has an affiliate which provides

24  services to the plan. The minutes, audits, and procedures of

25  the board of governors are subject to chapter 119.

26         Section 700.  Paragraph (b) of subsection (2),

27  paragraph (a) of subsection (3), paragraphs (a) and (e) of

28  subsection (5), and paragraph (c) of subsection (6) of section

29  627.351, Florida Statutes, are amended to read:

30         627.351  Insurance risk apportionment plans.--

31         (2)  WINDSTORM INSURANCE RISK APPORTIONMENT.--

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 1         (b)  The department shall require all insurers holding

 2  a certificate of authority to transact property insurance on a

 3  direct basis in this state, other than joint underwriting

 4  associations and other entities formed pursuant to this

 5  section, to provide windstorm coverage to applicants from

 6  areas determined to be eligible pursuant to paragraph (c) who

 7  in good faith are entitled to, but are unable to procure, such

 8  coverage through ordinary means; or it shall adopt a

 9  reasonable plan or plans for the equitable apportionment or

10  sharing among such insurers of windstorm coverage, which may

11  include formation of an association for this purpose. As used

12  in this subsection, the term "property insurance" means

13  insurance on real or personal property, as defined in s.

14  624.604, including insurance for fire, industrial fire, allied

15  lines, farmowners multiperil, homeowners' multiperil,

16  commercial multiperil, and mobile homes, and including

17  liability coverages on all such insurance, but excluding

18  inland marine as defined in s. 624.607(3) and excluding

19  vehicle insurance as defined in s. 624.605(1)(a) other than

20  insurance on mobile homes used as permanent dwellings. The

21  department shall adopt rules that provide a formula for the

22  recovery and repayment of any deferred assessments.

23         1.  For the purpose of this section, properties

24  eligible for such windstorm coverage are defined as dwellings,

25  buildings, and other structures, including mobile homes which

26  are used as dwellings and which are tied down in compliance

27  with mobile home tie-down requirements prescribed by the

28  Department of Highway Safety and Motor Vehicles pursuant to s.

29  320.8325, and the contents of all such properties. An

30  applicant or policyholder is eligible for coverage only if an

31  

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 1  offer of coverage cannot be obtained by or for the applicant

 2  or policyholder from an admitted insurer at approved rates.

 3         2.a.(I)  All insurers required to be members of such

 4  association shall participate in its writings, expenses, and

 5  losses. Surplus of the association shall be retained for the

 6  payment of claims and shall not be distributed to the member

 7  insurers. Such participation by member insurers shall be in

 8  the proportion that the net direct premiums of each member

 9  insurer written for property insurance in this state during

10  the preceding calendar year bear to the aggregate net direct

11  premiums for property insurance of all member insurers, as

12  reduced by any credits for voluntary writings, in this state

13  during the preceding calendar year. For the purposes of this

14  subsection, the term "net direct premiums" means direct

15  written premiums for property insurance, reduced by premium

16  for liability coverage and for the following if included in

17  allied lines: rain and hail on growing crops; livestock;

18  association direct premiums booked; National Flood Insurance

19  Program direct premiums; and similar deductions specifically

20  authorized by the plan of operation and approved by the

21  department. A member's participation shall begin on the first

22  day of the calendar year following the year in which it is

23  issued a certificate of authority to transact property

24  insurance in the state and shall terminate 1 year after the

25  end of the calendar year during which it no longer holds a

26  certificate of authority to transact property insurance in the

27  state. The commissioner, after review of annual statements,

28  other reports, and any other statistics that the commissioner

29  deems necessary, shall certify to the association the

30  aggregate direct premiums written for property insurance in

31  this state by all member insurers.

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 1         (II)  The plan of operation shall provide for a board

 2  of directors consisting of the Insurance Consumer Advocate

 3  appointed under s. 627.0613, 1 consumer representative

 4  appointed by the Chief Financial Officer Insurance

 5  Commissioner, 1 consumer representative appointed by the

 6  Governor, and 12 additional members appointed as specified in

 7  the plan of operation. One of the 12 additional members shall

 8  be elected by the domestic companies of this state on the

 9  basis of cumulative weighted voting based on the net direct

10  premiums of domestic companies in this state. Nothing in the

11  1997 amendments to this paragraph terminates the existing

12  board or the terms of any members of the board.

13         (III)  The plan of operation shall provide a formula

14  whereby a company voluntarily providing windstorm coverage in

15  affected areas will be relieved wholly or partially from

16  apportionment of a regular assessment pursuant to

17  sub-sub-subparagraph d.(I) or sub-sub-subparagraph d.(II).

18         (IV)  A company which is a member of a group of

19  companies under common management may elect to have its

20  credits applied on a group basis, and any company or group may

21  elect to have its credits applied to any other company or

22  group.

23         (V)  There shall be no credits or relief from

24  apportionment to a company for emergency assessments collected

25  from its policyholders under sub-sub-subparagraph d.(III).

26         (VI)  The plan of operation may also provide for the

27  award of credits, for a period not to exceed 3 years, from a

28  regular assessment pursuant to sub-sub-subparagraph d.(I) or

29  sub-sub-subparagraph d.(II) as an incentive for taking

30  policies out of the Residential Property and Casualty Joint

31  Underwriting Association.  In order to qualify for the

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 1  exemption under this sub-sub-subparagraph, the take-out plan

 2  must provide that at least 40 percent of the policies removed

 3  from the Residential Property and Casualty Joint Underwriting

 4  Association cover risks located in Dade, Broward, and Palm

 5  Beach Counties or at least 30 percent of the policies so

 6  removed cover risks located in Dade, Broward, and Palm Beach

 7  Counties and an additional 50 percent of the policies so

 8  removed cover risks located in other coastal counties, and

 9  must also provide that no more than 15 percent of the policies

10  so removed may exclude windstorm coverage.  With the approval

11  of the department, the association may waive these geographic

12  criteria for a take-out plan that removes at least the lesser

13  of 100,000 Residential Property and Casualty Joint

14  Underwriting Association policies or 15 percent of the total

15  number of Residential Property and Casualty Joint Underwriting

16  Association policies, provided the governing board of the

17  Residential Property and Casualty Joint Underwriting

18  Association certifies that the take-out plan will materially

19  reduce the Residential Property and Casualty Joint

20  Underwriting Association's 100-year probable maximum loss from

21  hurricanes.  With the approval of the department, the board

22  may extend such credits for an additional year if the insurer

23  guarantees an additional year of renewability for all policies

24  removed from the Residential Property and Casualty Joint

25  Underwriting Association, or for 2 additional years if the

26  insurer guarantees 2 additional years of renewability for all

27  policies removed from the Residential Property and Casualty

28  Joint Underwriting Association.

29         b.  Assessments to pay deficits in the association

30  under this subparagraph shall be included as an appropriate

31  factor in the making of rates as provided in s. 627.3512.

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 1         c.  The Legislature finds that the potential for

 2  unlimited deficit assessments under this subparagraph may

 3  induce insurers to attempt to reduce their writings in the

 4  voluntary market, and that such actions would worsen the

 5  availability problems that the association was created to

 6  remedy. It is the intent of the Legislature that insurers

 7  remain fully responsible for paying regular assessments and

 8  collecting emergency assessments for any deficits of the

 9  association; however, it is also the intent of the Legislature

10  to provide a means by which assessment liabilities may be

11  amortized over a period of years.

12         d.(I)  When the deficit incurred in a particular

13  calendar year is 10 percent or less of the aggregate statewide

14  direct written premium for property insurance for the prior

15  calendar year for all member insurers, the association shall

16  levy an assessment on member insurers in an amount equal to

17  the deficit.

18         (II)  When the deficit incurred in a particular

19  calendar year exceeds 10 percent of the aggregate statewide

20  direct written premium for property insurance for the prior

21  calendar year for all member insurers, the association shall

22  levy an assessment on member insurers in an amount equal to

23  the greater of 10 percent of the deficit or 10 percent of the

24  aggregate statewide direct written premium for property

25  insurance for the prior calendar year for member insurers. Any

26  remaining deficit shall be recovered through emergency

27  assessments under sub-sub-subparagraph (III).

28         (III)  Upon a determination by the board of directors

29  that a deficit exceeds the amount that will be recovered

30  through regular assessments on member insurers, pursuant to

31  sub-sub-subparagraph (I) or sub-sub-subparagraph (II), the

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 1  board shall levy, after verification by the department,

 2  emergency assessments to be collected by member insurers and

 3  by underwriting associations created pursuant to this section

 4  which write property insurance, upon issuance or renewal of

 5  property insurance policies other than National Flood

 6  Insurance policies in the year or years following levy of the

 7  regular assessments. The amount of the emergency assessment

 8  collected in a particular year shall be a uniform percentage

 9  of that year's direct written premium for property insurance

10  for all member insurers and underwriting associations,

11  excluding National Flood Insurance policy premiums, as

12  annually determined by the board and verified by the

13  department. The department shall verify the arithmetic

14  calculations involved in the board's determination within 30

15  days after receipt of the information on which the

16  determination was based. Notwithstanding any other provision

17  of law, each member insurer and each underwriting association

18  created pursuant to this section shall collect emergency

19  assessments from its policyholders without such obligation

20  being affected by any credit, limitation, exemption, or

21  deferment.  The emergency assessments so collected shall be

22  transferred directly to the association on a periodic basis as

23  determined by the association. The aggregate amount of

24  emergency assessments levied under this sub-sub-subparagraph

25  in any calendar year may not exceed the greater of 10 percent

26  of the amount needed to cover the original deficit, plus

27  interest, fees, commissions, required reserves, and other

28  costs associated with financing of the original deficit, or 10

29  percent of the aggregate statewide direct written premium for

30  property insurance written by member insurers and underwriting

31  associations for the prior year, plus interest, fees,

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 1  commissions, required reserves, and other costs associated

 2  with financing the original deficit. The board may pledge the

 3  proceeds of the emergency assessments under this

 4  sub-sub-subparagraph as the source of revenue for bonds, to

 5  retire any other debt incurred as a result of the deficit or

 6  events giving rise to the deficit, or in any other way that

 7  the board determines will efficiently recover the deficit. The

 8  emergency assessments under this sub-sub-subparagraph shall

 9  continue as long as any bonds issued or other indebtedness

10  incurred with respect to a deficit for which the assessment

11  was imposed remain outstanding, unless adequate provision has

12  been made for the payment of such bonds or other indebtedness

13  pursuant to the document governing such bonds or other

14  indebtedness. Emergency assessments collected under this

15  sub-sub-subparagraph are not part of an insurer's rates, are

16  not premium, and are not subject to premium tax, fees, or

17  commissions; however, failure to pay the emergency assessment

18  shall be treated as failure to pay premium.

19         (IV)  Each member insurer's share of the total regular

20  assessments under sub-sub-subparagraph (I) or

21  sub-sub-subparagraph (II) shall be in the proportion that the

22  insurer's net direct premium for property insurance in this

23  state, for the year preceding the assessment bears to the

24  aggregate statewide net direct premium for property insurance

25  of all member insurers, as reduced by any credits for

26  voluntary writings for that year.

27         (V)  If regular deficit assessments are made under

28  sub-sub-subparagraph (I) or sub-sub-subparagraph (II), or by

29  the Residential Property and Casualty Joint Underwriting

30  Association under sub-subparagraph (6)(b)3.a. or

31  sub-subparagraph (6)(b)3.b., the association shall levy upon

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 1  the association's policyholders, as part of its next rate

 2  filing, or by a separate rate filing solely for this purpose,

 3  a market equalization surcharge in a percentage equal to the

 4  total amount of such regular assessments divided by the

 5  aggregate statewide direct written premium for property

 6  insurance for member insurers for the prior calendar year.

 7  Market equalization surcharges under this sub-sub-subparagraph

 8  are not considered premium and are not subject to commissions,

 9  fees, or premium taxes; however, failure to pay a market

10  equalization surcharge shall be treated as failure to pay

11  premium.

12         e.  The governing body of any unit of local government,

13  any residents of which are insured under the plan, may issue

14  bonds as defined in s. 125.013 or s. 166.101 to fund an

15  assistance program, in conjunction with the association, for

16  the purpose of defraying deficits of the association. In order

17  to avoid needless and indiscriminate proliferation,

18  duplication, and fragmentation of such assistance programs,

19  any unit of local government, any residents of which are

20  insured by the association, may provide for the payment of

21  losses, regardless of whether or not the losses occurred

22  within or outside of the territorial jurisdiction of the local

23  government. Revenue bonds may not be issued until validated

24  pursuant to chapter 75, unless a state of emergency is

25  declared by executive order or proclamation of the Governor

26  pursuant to s. 252.36 making such findings as are necessary to

27  determine that it is in the best interests of, and necessary

28  for, the protection of the public health, safety, and general

29  welfare of residents of this state and the protection and

30  preservation of the economic stability of insurers operating

31  in this state, and declaring it an essential public purpose to

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 1  permit certain municipalities or counties to issue bonds as

 2  will provide relief to claimants and policyholders of the

 3  association and insurers responsible for apportionment of plan

 4  losses. Any such unit of local government may enter into such

 5  contracts with the association and with any other entity

 6  created pursuant to this subsection as are necessary to carry

 7  out this paragraph. Any bonds issued under this

 8  sub-subparagraph shall be payable from and secured by moneys

 9  received by the association from assessments under this

10  subparagraph, and assigned and pledged to or on behalf of the

11  unit of local government for the benefit of the holders of

12  such bonds. The funds, credit, property, and taxing power of

13  the state or of the unit of local government shall not be

14  pledged for the payment of such bonds. If any of the bonds

15  remain unsold 60 days after issuance, the department shall

16  require all insurers subject to assessment to purchase the

17  bonds, which shall be treated as admitted assets; each insurer

18  shall be required to purchase that percentage of the unsold

19  portion of the bond issue that equals the insurer's relative

20  share of assessment liability under this subsection. An

21  insurer shall not be required to purchase the bonds to the

22  extent that the department determines that the purchase would

23  endanger or impair the solvency of the insurer. The authority

24  granted by this sub-subparagraph is additional to any bonding

25  authority granted by subparagraph 6.

26         3.  The plan shall also provide that any member with a

27  surplus as to policyholders of $20 million or less writing 25

28  percent or more of its total countrywide property insurance

29  premiums in this state may petition the department, within the

30  first 90 days of each calendar year, to qualify as a limited

31  apportionment company. The apportionment of such a member

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 1  company in any calendar year for which it is qualified shall

 2  not exceed its gross participation, which shall not be

 3  affected by the formula for voluntary writings. In no event

 4  shall a limited apportionment company be required to

 5  participate in any apportionment of losses pursuant to

 6  sub-sub-subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II)

 7  in the aggregate which exceeds $50 million after payment of

 8  available plan funds in any calendar year. However, a limited

 9  apportionment company shall collect from its policyholders any

10  emergency assessment imposed under sub-sub-subparagraph

11  2.d.(III). The plan shall provide that, if the department

12  determines that any regular assessment will result in an

13  impairment of the surplus of a limited apportionment company,

14  the department may direct that all or part of such assessment

15  be deferred. However, there shall be no limitation or

16  deferment of an emergency assessment to be collected from

17  policyholders under sub-sub-subparagraph 2.d.(III).

18         4.  The plan shall provide for the deferment, in whole

19  or in part, of a regular assessment of a member insurer under

20  sub-sub-subparagraph 2.d.(I) or sub-sub-subparagraph 2.d.(II),

21  but not for an emergency assessment collected from

22  policyholders under sub-sub-subparagraph 2.d.(III), if, in the

23  opinion of the commissioner, payment of such regular

24  assessment would endanger or impair the solvency of the member

25  insurer. In the event a regular assessment against a member

26  insurer is deferred in whole or in part, the amount by which

27  such assessment is deferred may be assessed against the other

28  member insurers in a manner consistent with the basis for

29  assessments set forth in sub-sub-subparagraph 2.d.(I) or

30  sub-sub-subparagraph 2.d.(II).

31  

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 1         5.a.  The plan of operation may include deductibles and

 2  rules for classification of risks and rate modifications

 3  consistent with the objective of providing and maintaining

 4  funds sufficient to pay catastrophe losses.

 5         b.  The association may require arbitration of a rate

 6  filing under s. 627.062(6). It is the intent of the

 7  Legislature that the rates for coverage provided by the

 8  association be actuarially sound and not competitive with

 9  approved rates charged in the admitted voluntary market such

10  that the association functions as a residual market mechanism

11  to provide insurance only when the insurance cannot be

12  procured in the voluntary market.  The plan of operation shall

13  provide a mechanism to assure that, beginning no later than

14  January 1, 1999, the rates charged by the association for each

15  line of business are reflective of approved rates in the

16  voluntary market for hurricane coverage for each line of

17  business in the various areas eligible for association

18  coverage.

19         c.  The association shall provide for windstorm

20  coverage on residential properties in limits up to $10 million

21  for commercial lines residential risks and up to $1 million

22  for personal lines residential risks. If coverage with the

23  association is sought for a residential risk valued in excess

24  of these limits, coverage shall be available to the risk up to

25  the replacement cost or actual cash value of the property, at

26  the option of the insured, if coverage for the risk cannot be

27  located in the authorized market. The association must accept

28  a commercial lines residential risk with limits above $10

29  million or a personal lines residential risk with limits above

30  $1 million if coverage is not available in the authorized

31  market.  The association may write coverage above the limits

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 1  specified in this subparagraph with or without facultative or

 2  other reinsurance coverage, as the association determines

 3  appropriate.

 4         d.  The plan of operation must provide objective

 5  criteria and procedures, approved by the department, to be

 6  uniformly applied for all applicants in determining whether an

 7  individual risk is so hazardous as to be uninsurable. In

 8  making this determination and in establishing the criteria and

 9  procedures, the following shall be considered:

10         (I)  Whether the likelihood of a loss for the

11  individual risk is substantially higher than for other risks

12  of the same class; and

13         (II)  Whether the uncertainty associated with the

14  individual risk is such that an appropriate premium cannot be

15  determined.

16  

17  The acceptance or rejection of a risk by the association

18  pursuant to such criteria and procedures must be construed as

19  the private placement of insurance, and the provisions of

20  chapter 120 do not apply.

21         e.  The policies issued by the association must provide

22  that if the association obtains an offer from an authorized

23  insurer to cover the risk at its approved rates under either a

24  standard policy including wind coverage or, if consistent with

25  the insurer's underwriting rules as filed with the department,

26  a basic policy including wind coverage, the risk is no longer

27  eligible for coverage through the association. Upon

28  termination of eligibility, the association shall provide

29  written notice to the policyholder and agent of record stating

30  that the association policy must be canceled as of 60 days

31  after the date of the notice because of the offer of coverage

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 1  from an authorized insurer. Other provisions of the insurance

 2  code relating to cancellation and notice of cancellation do

 3  not apply to actions under this sub-subparagraph.

 4         f.  Association policies and applications must include

 5  a notice that the association policy could, under this

 6  section, be replaced with a policy issued by an authorized

 7  insurer that does not provide coverage identical to the

 8  coverage provided by the association. The notice shall also

 9  specify that acceptance of association coverage creates a

10  conclusive presumption that the applicant or policyholder is

11  aware of this potential.

12         6.a.  The plan of operation may authorize the formation

13  of a private nonprofit corporation, a private nonprofit

14  unincorporated association, a partnership, a trust, a limited

15  liability company, or a nonprofit mutual company which may be

16  empowered, among other things, to borrow money by issuing

17  bonds or by incurring other indebtedness and to accumulate

18  reserves or funds to be used for the payment of insured

19  catastrophe losses. The plan may authorize all actions

20  necessary to facilitate the issuance of bonds, including the

21  pledging of assessments or other revenues.

22         b.  Any entity created under this subsection, or any

23  entity formed for the purposes of this subsection, may sue and

24  be sued, may borrow money; issue bonds, notes, or debt

25  instruments; pledge or sell assessments, market equalization

26  surcharges and other surcharges, rights, premiums, contractual

27  rights, projected recoveries from the Florida Hurricane

28  Catastrophe Fund, other reinsurance recoverables, and other

29  assets as security for such bonds, notes, or debt instruments;

30  enter into any contracts or agreements necessary or proper to

31  accomplish such borrowings; and take other actions necessary

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 1  to carry out the purposes of this subsection. The association

 2  may issue bonds or incur other indebtedness, or have bonds

 3  issued on its behalf by a unit of local government pursuant to

 4  subparagraph (g)2., in the absence of a hurricane or other

 5  weather-related event, upon a determination by the association

 6  subject to approval by the department that such action would

 7  enable it to efficiently meet the financial obligations of the

 8  association and that such financings are reasonably necessary

 9  to effectuate the requirements of this subsection. Any such

10  entity may accumulate reserves and retain surpluses as of the

11  end of any association year to provide for the payment of

12  losses incurred by the association during that year or any

13  future year. The association shall incorporate and continue

14  the plan of operation and articles of agreement in effect on

15  the effective date of chapter 76-96, Laws of Florida, to the

16  extent that it is not inconsistent with chapter 76-96, and as

17  subsequently modified consistent with chapter 76-96. The board

18  of directors and officers currently serving shall continue to

19  serve until their successors are duly qualified as provided

20  under the plan. The assets and obligations of the plan in

21  effect immediately prior to the effective date of chapter

22  76-96 shall be construed to be the assets and obligations of

23  the successor plan created herein.

24         c.  In recognition of s. 10, Art. I of the State

25  Constitution, prohibiting the impairment of obligations of

26  contracts, it is the intent of the Legislature that no action

27  be taken whose purpose is to impair any bond indenture or

28  financing agreement or any revenue source committed by

29  contract to such bond or other indebtedness issued or incurred

30  by the association or any other entity created under this

31  subsection.

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 1         7.  On such coverage, an agent's remuneration shall be

 2  that amount of money payable to the agent by the terms of his

 3  or her contract with the company with which the business is

 4  placed. However, no commission will be paid on that portion of

 5  the premium which is in excess of the standard premium of that

 6  company.

 7         8.  Subject to approval by the department, the

 8  association may establish different eligibility requirements

 9  and operational procedures for any line or type of coverage

10  for any specified eligible area or portion of an eligible area

11  if the board determines that such changes to the eligibility

12  requirements and operational procedures are justified due to

13  the voluntary market being sufficiently stable and competitive

14  in such area or for such line or type of coverage and that

15  consumers who, in good faith, are unable to obtain insurance

16  through the voluntary market through ordinary methods would

17  continue to have access to coverage from the association. When

18  coverage is sought in connection with a real property

19  transfer, such requirements and procedures shall not provide

20  for an effective date of coverage later than the date of the

21  closing of the transfer as established by the transferor, the

22  transferee, and, if applicable, the lender.

23         9.  Notwithstanding any other provision of law:

24         a.  The pledge or sale of, the lien upon, and the

25  security interest in any rights, revenues, or other assets of

26  the association created or purported to be created pursuant to

27  any financing documents to secure any bonds or other

28  indebtedness of the association shall be and remain valid and

29  enforceable, notwithstanding the commencement of and during

30  the continuation of, and after, any rehabilitation,

31  insolvency, liquidation, bankruptcy, receivership,

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 1  conservatorship, reorganization, or similar proceeding against

 2  the association under the laws of this state or any other

 3  applicable laws.

 4         b.  No such proceeding shall relieve the association of

 5  its obligation, or otherwise affect its ability to perform its

 6  obligation, to continue to collect, or levy and collect,

 7  assessments, market equalization or other surcharges,

 8  projected recoveries from the Florida Hurricane Catastrophe

 9  Fund, reinsurance recoverables, or any other rights, revenues,

10  or other assets of the association pledged.

11         c.  Each such pledge or sale of, lien upon, and

12  security interest in, including the priority of such pledge,

13  lien, or security interest, any such assessments, emergency

14  assessments, market equalization or renewal surcharges,

15  projected recoveries from the Florida Hurricane Catastrophe

16  Fund, reinsurance recoverables, or other rights, revenues, or

17  other assets which are collected, or levied and collected,

18  after the commencement of and during the pendency of or after

19  any such proceeding shall continue unaffected by such

20  proceeding.

21         d.  As used in this subsection, the term "financing

22  documents" means any agreement, instrument, or other document

23  now existing or hereafter created evidencing any bonds or

24  other indebtedness of the association or pursuant to which any

25  such bonds or other indebtedness has been or may be issued and

26  pursuant to which any rights, revenues, or other assets of the

27  association are pledged or sold to secure the repayment of

28  such bonds or indebtedness, together with the payment of

29  interest on such bonds or such indebtedness, or the payment of

30  any other obligation of the association related to such bonds

31  or indebtedness.

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 1         e.  Any such pledge or sale of assessments, revenues,

 2  contract rights or other rights or assets of the association

 3  shall constitute a lien and security interest, or sale, as the

 4  case may be, that is immediately effective and attaches to

 5  such assessments, revenues, contract, or other rights or

 6  assets, whether or not imposed or collected at the time the

 7  pledge or sale is made. Any such pledge or sale is effective,

 8  valid, binding, and enforceable against the association or

 9  other entity making such pledge or sale, and valid and binding

10  against and superior to any competing claims or obligations

11  owed to any other person or entity, including policyholders in

12  this state, asserting rights in any such assessments,

13  revenues, contract, or other rights or assets to the extent

14  set forth in and in accordance with the terms of the pledge or

15  sale contained in the applicable financing documents, whether

16  or not any such person or entity has notice of such pledge or

17  sale and without the need for any physical delivery,

18  recordation, filing, or other action.

19         f.  There shall be no liability on the part of, and no

20  cause of action of any nature shall arise against, any member

21  insurer or its agents or employees, agents or employees of the

22  association, members of the board of directors of the

23  association, or the department or its representatives, for any

24  action taken by them in the performance of their duties or

25  responsibilities under this subsection. Such immunity does not

26  apply to actions for breach of any contract or agreement

27  pertaining to insurance, or any willful tort.

28         (3)  POLITICAL SUBDIVISION; CASUALTY INSURANCE RISK

29  APPORTIONMENT.--

30         (a)  The department shall, after consultation with the

31  casualty insurers licensed in this state, adopt a plan or

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 1  plans for the equitable apportionment among them of casualty

 2  insurance coverage which may be afforded political

 3  subdivisions which are in good faith entitled to, but are

 4  unable to, procure such coverage through the voluntary market

 5  at standard rates or through a statutorily approved plan

 6  authorized by the department.  The department may adopt a

 7  joint underwriting plan which shall provide for one or more

 8  designated insurers able and willing to provide policyholder

 9  and claims service, including the issuance of insurance

10  policies, to act on behalf of all other insurers required to

11  participate in the joint underwriting plan. Any joint

12  underwriting plan adopted shall provide for the equitable

13  apportionment of any profits realized, or of losses and

14  expenses incurred, among participating insurers.  The plan

15  shall include, but shall not be limited to:

16         1.  Rules for the classification of risks and rates

17  which reflect the past loss experience and prospective loss

18  experience in different geographic areas.

19         2.  A rating plan which reasonably reflects the prior

20  claims experience of the insureds.

21         3.  Excess coverage by insurers if the department

22  Insurance Commissioner, in its his or her discretion, requires

23  such coverage by insurers participating in the joint

24  underwriting plan.

25         (5)  PROPERTY AND CASUALTY INSURANCE RISK

26  APPORTIONMENT.--The department shall adopt by rule a joint

27  underwriting plan to equitably apportion among insurers

28  authorized in this state to write property insurance as

29  defined in s. 624.604 or casualty insurance as defined in s.

30  624.605, the underwriting of one or more classes of property

31  insurance or casualty insurance, except for the types of

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 1  insurance that are included within property insurance or

 2  casualty insurance for which an equitable apportionment plan,

 3  assigned risk plan, or joint underwriting plan is authorized

 4  under s. 627.311 or subsection (1), subsection (2), subsection

 5  (3), subsection (4), or subsection (6) and except for risks

 6  eligible for flood insurance written through the federal flood

 7  insurance program to persons with risks eligible under

 8  subparagraph (a)1. and who are in good faith entitled to, but

 9  are unable to, obtain such property or casualty insurance

10  coverage, including excess coverage, through the voluntary

11  market. For purposes of this subsection, an adequate level of

12  coverage means that coverage which is required by state law or

13  by responsible or prudent business practices. The Joint

14  Underwriting Association shall not be required to provide

15  coverage for any type of risk for which there are no insurers

16  providing similar coverage in this state. The department may

17  designate one or more participating insurers who agree to

18  provide policyholder and claims service, including the

19  issuance of policies, on behalf of the participating insurers.

20         (a)  The plan shall provide:

21         1.  A means of establishing eligibility of a risk for

22  obtaining insurance through the plan, which provides that:

23         a.  A risk shall be eligible for such property

24  insurance or casualty insurance as is required by Florida law

25  if the insurance is unavailable in the voluntary market,

26  including the market assistance program and the surplus lines

27  market.

28         b.  A commercial risk not eligible under

29  sub-subparagraph a. shall be eligible for property or casualty

30  insurance if:

31  

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 1         (I)  The insurance is unavailable in the voluntary

 2  market, including the market assistance plan and the surplus

 3  lines market;

 4         (II)  Failure to secure the insurance would

 5  substantially impair the ability of the entity to conduct its

 6  affairs; and

 7         (III)  The risk is not determined by the Risk

 8  Underwriting Committee to be uninsurable.

 9         c.  In the event the Federal Government terminates the

10  Federal Crime Insurance Program established under 44 C.F.R.

11  ss. 80-83, Florida commercial and residential risks previously

12  insured under the federal program shall be eligible under the

13  plan.

14         d.(I)  In the event a risk is eligible under this

15  paragraph and in the event the market assistance plan receives

16  a minimum of 100 applications for coverage within a 3-month

17  period, or 200 applications for coverage within a 1-year

18  period or less, for a given class of risk contained in the

19  classification system defined in the plan of operation of the

20  Joint Underwriting Association, and unless the market

21  assistance plan provides a quotation for at least 80 percent

22  of such applicants, such classification shall immediately be

23  eligible for coverage in the Joint Underwriting Association.

24         (II)  Any market assistance plan application which is

25  rejected because an individual risk is so hazardous as to be

26  practically uninsurable, considering whether the likelihood of

27  a loss for such a risk is substantially higher than for other

28  risks of the same class due to individual risk

29  characteristics, prior loss experience, unwillingness to

30  cooperate with a prior insurer, physical characteristics and

31  physical location shall not be included in the minimum

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 1  percentage calculation provided above. In the event that there

 2  is any legal or administrative challenge to a determination by

 3  the department that the conditions of this subparagraph have

 4  been met for eligibility for coverage in the Joint

 5  Underwriting Association for a given classification, any

 6  eligible risk may obtain coverage during the pendency of any

 7  such challenge.

 8         e.  In order to qualify as a quotation for the purpose

 9  of meeting the minimum percentage calculation in this

10  subparagraph, the quoted premium must meet the following

11  criteria:

12         (I)  In the case of an admitted carrier, the quoted

13  premium must not exceed the premium available for a given

14  classification currently in use by the Joint Underwriting

15  Association or the premium developed by using the rates and

16  rating plans on file with the department by the quoting

17  insurer, whichever is greater.

18         (II)  In the case of an authorized surplus lines

19  insurer, the quoted premium must not exceed the premium

20  available for a given classification currently in use by the

21  Joint Underwriting Association by more than 25 percent, after

22  consideration of any individual risk surcharge or credit.

23         f.  Any agent who falsely certifies the unavailability

24  of coverage as provided by sub-subparagraphs a. and b., is

25  subject to the penalties provided in s. 626.611.

26         2.  A means for the equitable apportionment of profits

27  or losses and expenses among participating insurers.

28         3.  Rules for the classification of risks and rates

29  which reflect the past and prospective loss experience.

30         4.  A rating plan which reasonably reflects the prior

31  claims experience of the insureds. Such rating plan shall

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 1  include at least two levels of rates for risks that have

 2  favorable loss experience and risks that have unfavorable loss

 3  experience, as established by the plan.

 4         5.  Reasonable limits to available amounts of

 5  insurance. Such limits may not be less than the amounts of

 6  insurance required of eligible risks by Florida law.

 7         6.  Risk management requirements for insurance where

 8  such requirements are reasonable and are expected to reduce

 9  losses.

10         7.  Deductibles as may be necessary to meet the needs

11  of insureds.

12         8.  Policy forms which are consistent with the forms in

13  use by the majority of the insurers providing coverage in the

14  voluntary market for the coverage requested by the applicant.

15         9.  A means to remove risks from the plan once such

16  risks no longer meet the eligibility requirements of this

17  paragraph. For this purpose, the plan shall include the

18  following requirements: At each 6-month interval after the

19  activation of any class of insureds, the board of governors or

20  its designated committee shall review the number of

21  applications to the market assistance plan for that class. If,

22  based on these latest numbers, at least 90 percent of such

23  applications have been provided a quotation, the Joint

24  Underwriting Association shall cease underwriting new

25  applications for such class within 30 days, and notification

26  of this decision shall be sent to the Chief Financial Officer

27  Insurance Commissioner, the major agents' associations, and

28  the board of directors of the market assistance plan. A

29  quotation for the purpose of this subparagraph shall meet the

30  same criteria for a quotation as provided in sub-subparagraph

31  d. All policies which were previously written for that class

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 1  shall continue in force until their normal expiration date, at

 2  which time, subject to the required timely notification of

 3  nonrenewal by the Joint Underwriting Association, the insured

 4  may then elect to reapply to the Joint Underwriting

 5  Association according to the requirements of eligibility. If,

 6  upon reapplication, those previously insured Joint

 7  Underwriting Association risks meet the eligibility

 8  requirements, the Joint Underwriting Association shall provide

 9  the coverage requested.

10         10.  A means for providing credits to insurers against

11  any deficit assessment levied pursuant to paragraph (c), for

12  risks voluntarily written through the market assistance plan

13  by such insurers.

14         11.  That the Joint Underwriting Association shall

15  operate subject to the supervision and approval of a board of

16  governors consisting of 13 individuals appointed by the Chief

17  Financial Officer Insurance Commissioner, and shall have an

18  executive or underwriting committee. At least four of the

19  members shall be representatives of insurance trade

20  associations as follows: one member from the American

21  Insurance Association, one member from the Alliance of

22  American Insurers, one member from the National Association of

23  Independent Insurers, and one member from an unaffiliated

24  insurer writing coverage on a national basis. Two

25  representatives shall be from two of the statewide agents'

26  associations. Each board member shall be appointed to serve

27  for 2-year terms beginning on a date designated by the plan

28  and shall serve at the pleasure of the commissioner. Members

29  may be reappointed for subsequent terms.

30         (e)  A Risk Underwriting Committee of the Joint

31  Underwriting Association composed of three members experienced

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 1  in evaluating insurance risks is created to review risks

 2  rejected by the voluntary market for which application is made

 3  for insurance through the joint underwriting plan. The

 4  committee shall consist of a representative of the market

 5  assistance plan created under s. 627.3515, a member selected

 6  by the insurers participating in the Joint Underwriting

 7  Association, and a member named by the Chief Financial Officer

 8  Insurance Commissioner. The Risk Underwriting Committee shall

 9  appoint such advisory committees as are provided for in the

10  plan and are necessary to conduct its functions. The salaries

11  and expenses of the members of the Risk Underwriting Committee

12  and its advisory committees shall be paid by the joint

13  underwriting plan. The plan approved by the department shall

14  establish criteria and procedures for use by the Risk

15  Underwriting Committee for determining whether an individual

16  risk is so hazardous as to be uninsurable. In making this

17  determination and in establishing the criteria and procedures,

18  the following shall be considered:

19         1.  Whether the likelihood of a loss for the individual

20  risk is substantially higher than for other risks of the same

21  class; and

22         2.  Whether the uncertainty associated with the

23  individual risk is such that an appropriate premium cannot be

24  determined.

25  

26  The acceptance or rejection of a risk by the underwriting

27  committee shall be construed as the private placement of

28  insurance, and the provisions of chapter 120 shall not apply.

29         (6)  RESIDENTIAL PROPERTY AND CASUALTY JOINT

30  UNDERWRITING ASSOCIATION.--

31         (c)  The plan of operation of the association:

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 1         1.  May provide for one or more designated insurers,

 2  able and willing to provide policy and claims service, to act

 3  on behalf of the association to provide such service.  Each

 4  licensed agent shall be entitled to indicate the order of

 5  preference regarding who will service the business placed by

 6  the agent.  The association shall adhere to each agent's

 7  preferences unless after consideration of other factors in

 8  assigning agents, including, but not limited to, servicing

 9  capacity and fee arrangements, the association has reason to

10  believe it is in the best interest of the association to make

11  a different assignment.

12         2.  Must provide for adoption of residential property

13  and casualty insurance policy forms, which forms must be

14  approved by the department prior to use.  The association

15  shall adopt the following policy forms:

16         a.  Standard personal lines policy forms including wind

17  coverage, which are multiperil policies providing what is

18  generally considered to be full coverage of a residential

19  property similar to the coverage provided under an HO-2, HO-3,

20  HO-4, or HO-6 policy.

21         b.  Standard personal lines policy forms without wind

22  coverage, which are the same as the policies described in

23  sub-subparagraph a. except that they do not include wind

24  coverage.

25         c.  Basic personal lines policy forms including wind

26  coverage, which are policies similar to an HO-8 policy or a

27  dwelling fire policy that provide coverage meeting the

28  requirements of the secondary mortgage market, but which

29  coverage is more limited than the coverage under a standard

30  policy.

31  

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 1         d.  Basic personal lines policy forms without wind

 2  coverage, which are the same as the policies described in

 3  sub-subparagraph c. except that they do not include wind

 4  coverage.

 5         e.  Commercial lines residential policy forms including

 6  wind coverage that are generally similar to the basic perils

 7  of full coverage obtainable for commercial residential

 8  structures in the admitted voluntary market.

 9         f.  Commercial lines residential policy forms without

10  wind coverage, which are the same as the policies described in

11  sub-subparagraph e. except that they do not include wind

12  coverage.

13         3.  May provide that the association may employ or

14  otherwise contract with individuals or other entities to

15  provide administrative or professional services that may be

16  appropriate to effectuate the plan.  The association shall

17  have the power to borrow funds, by issuing bonds or by

18  incurring other indebtedness, and shall have other powers

19  reasonably necessary to effectuate the requirements of this

20  subsection. The association may issue bonds or incur other

21  indebtedness, or have bonds issued on its behalf by a unit of

22  local government pursuant to subparagraph (g)2., in the

23  absence of a hurricane or other weather-related event, upon a

24  determination by the association, subject to approval by the

25  department, that such action would enable it to efficiently

26  meet the financial obligations of the association and that

27  such financings are reasonably necessary to effectuate the

28  requirements of this subsection.  The association is

29  authorized to take all actions needed to facilitate tax-free

30  status for any such bonds or indebtedness, including formation

31  of trusts or other affiliated entities.  The association shall

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 1  have the authority to pledge assessments, projected recoveries

 2  from the Florida Hurricane Catastrophe Fund, other reinsurance

 3  recoverables, market equalization and other surcharges, and

 4  other funds available to the association as security for bonds

 5  or other indebtedness.  In recognition of s. 10, Art. I of the

 6  State Constitution, prohibiting the impairment of obligations

 7  of contracts, it is the intent of the Legislature that no

 8  action be taken whose purpose is to impair any bond indenture

 9  or financing agreement or any revenue source committed by

10  contract to such bond or other indebtedness.

11         4.  Must require that the association operate subject

12  to the supervision and approval of a board of governors

13  consisting of 13 individuals, including 1 who is elected as

14  chair. The board shall consist of:

15         a.  The insurance consumer advocate appointed under s.

16  627.0613.

17         b.  Five members designated by the insurance industry.

18         c.  Five consumer representatives appointed by the

19  Chief Financial Officer Insurance Commissioner. Two of the

20  consumer representatives must, at the time of appointment, be

21  holders of policies issued by the association, who are

22  selected with consideration given to reflecting the geographic

23  balance of association policyholders. Two of the consumer

24  members must be individuals who are minority persons as

25  defined in s. 288.703(3). One of the consumer members shall

26  have expertise in the field of mortgage lending.

27         d.  Two representatives of the insurance industry

28  appointed by the Chief Financial Officer Insurance

29  Commissioner. Of the two insurance industry representatives

30  appointed by the Chief Financial Officer Insurance

31  

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 1  Commissioner, at least one must be an individual who is a

 2  minority person as defined in s. 288.703(3).

 3  

 4  Any board member may be disapproved or removed and replaced by

 5  the commissioner at any time for cause. All board members,

 6  including the chair, must be appointed to serve for 3-year

 7  terms beginning annually on a date designated by the plan.

 8         5.  Must provide a procedure for determining the

 9  eligibility of a risk for coverage, as follows:

10         a.  With respect to personal lines residential risks,

11  if the risk is offered coverage from an authorized insurer at

12  the insurer's approved rate under either a standard policy

13  including wind coverage or, if consistent with the insurer's

14  underwriting rules as filed with the department, a basic

15  policy including wind coverage, the risk is not eligible for

16  any policy issued by the association. If the risk accepts an

17  offer of coverage through the market assistance plan or an

18  offer of coverage through a mechanism established by the

19  association before a policy is issued to the risk by the

20  association or during the first 30 days of coverage by the

21  association, and the producing agent who submitted the

22  application to the plan or to the association is not currently

23  appointed by the insurer, the insurer shall either appoint the

24  agent to service the risk or, if the insurer places the

25  coverage through a new agent, require the new agent who then

26  writes the policy to pay not less than 50 percent of the first

27  year's commission to the producing agent who submitted the

28  application to the plan or the association, except that if the

29  new agent is an employee or exclusive agent of the insurer,

30  the new agent shall pay a policy fee of $50 to the producing

31  agent in lieu of splitting the commission. If the risk is not

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 1  able to obtain any such offer, the risk is eligible for either

 2  a standard policy including wind coverage or a basic policy

 3  including wind coverage issued by the association; however, if

 4  the risk could not be insured under a standard policy

 5  including wind coverage regardless of market conditions, the

 6  risk shall be eligible for a basic policy including wind

 7  coverage unless rejected under subparagraph 8. The association

 8  shall determine the type of policy to be provided on the basis

 9  of objective standards specified in the underwriting manual

10  and based on generally accepted underwriting practices.

11         b.  With respect to commercial lines residential risks,

12  if the risk is offered coverage under a policy including wind

13  coverage from an authorized insurer at its approved rate, the

14  risk is not eligible for any policy issued by the association.

15  If the risk accepts an offer of coverage through the market

16  assistance plan or an offer of coverage through a mechanism

17  established by the association before a policy is issued to

18  the risk by the association, and the producing agent who

19  submitted the application to the plan or the association is

20  not currently appointed by the insurer, the insurer shall

21  either appoint the agent to service the risk or, if the

22  insurer places the coverage through a new agent, require the

23  new agent who then writes the policy to pay not less than 50

24  percent of the first year's commission to the producing agent

25  who submitted the application to the plan, except that if the

26  new agent is an employee or exclusive agent of the insurer,

27  the new agent shall pay a policy fee of $50 to the producing

28  agent in lieu of splitting the commission. If the risk is not

29  able to obtain any such offer, the risk is eligible for a

30  policy including wind coverage issued by the association.

31  

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 1         c.  This subparagraph does not require the association

 2  to provide wind coverage or hurricane coverage in any area in

 3  which such coverage is available through the Florida Windstorm

 4  Underwriting Association.

 5         6.  Must include rules for classifications of risks and

 6  rates therefor.

 7         7.  Must provide that if premium and investment income

 8  attributable to a particular plan year are in excess of

 9  projected losses and expenses of the plan attributable to that

10  year, such excess shall be held in surplus. Such surplus shall

11  be available to defray deficits as to future years and shall

12  be used for that purpose prior to assessing member insurers as

13  to any plan year.

14         8.  Must provide objective criteria and procedures to

15  be uniformly applied for all applicants in determining whether

16  an individual risk is so hazardous as to be uninsurable. In

17  making this determination and in establishing the criteria and

18  procedures, the following shall be considered:

19         a.  Whether the likelihood of a loss for the individual

20  risk is substantially higher than for other risks of the same

21  class; and

22         b.  Whether the uncertainty associated with the

23  individual risk is such that an appropriate premium cannot be

24  determined.

25  

26  The acceptance or rejection of a risk by the association shall

27  be construed as the private placement of insurance, and the

28  provisions of chapter 120 shall not apply.

29         9.  Must provide that the association shall make its

30  best efforts to procure catastrophe reinsurance at reasonable

31  rates, as determined by the board of governors.

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 1         10.  Must provide that in the event of regular deficit

 2  assessments under sub-subparagraph (b)3.a. or sub-subparagraph

 3  (b)3.b., or by the Florida Windstorm Underwriting Association

 4  under sub-sub-subparagraph (2)(b)2.d.(I) or

 5  sub-sub-subparagraph (2)(b)2.d.(II), the association shall

 6  levy upon association policyholders in its next rate filing,

 7  or by a separate rate filing solely for this purpose, a market

 8  equalization surcharge in a percentage equal to the total

 9  amount of such regular assessments divided by the aggregate

10  statewide direct written premium for subject lines of business

11  for member insurers for the prior calendar year. Market

12  equalization surcharges under this subparagraph are not

13  considered premium and are not subject to commissions, fees,

14  or premium taxes; however, failure to pay a market

15  equalization surcharge shall be treated as failure to pay

16  premium.

17         11.  The policies issued by the association must

18  provide that, if the association or the market assistance plan

19  obtains an offer from an authorized insurer to cover the risk

20  at its approved rates under either a standard policy including

21  wind coverage or a basic policy including wind coverage, the

22  risk is no longer eligible for coverage through the

23  association. However, if the risk is located in an area in

24  which Florida Windstorm Underwriting Association coverage is

25  available, such an offer of a standard or basic policy

26  terminates eligibility regardless of whether or not the offer

27  includes wind coverage. Upon termination of eligibility, the

28  association shall provide written notice to the policyholder

29  and agent of record stating that the association policy shall

30  be canceled as of 60 days after the date of the notice because

31  of the offer of coverage from an authorized insurer. Other

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 1  provisions of the insurance code relating to cancellation and

 2  notice of cancellation do not apply to actions under this

 3  subparagraph.

 4         12.  Association policies and applications must include

 5  a notice that the association policy could, under this section

 6  or s. 627.3511, be replaced with a policy issued by an

 7  admitted insurer that does not provide coverage identical to

 8  the coverage provided by the association. The notice shall

 9  also specify that acceptance of association coverage creates a

10  conclusive presumption that the applicant or policyholder is

11  aware of this potential.

12         13.  May establish, subject to approval by the

13  department, different eligibility requirements and operational

14  procedures for any line or type of coverage for any specified

15  county or area if the board determines that such changes to

16  the eligibility requirements and operational procedures are

17  justified due to the voluntary market being sufficiently

18  stable and competitive in such area or for such line or type

19  of coverage and that consumers who, in good faith, are unable

20  to obtain insurance through the voluntary market through

21  ordinary methods would continue to have access to coverage

22  from the association. When coverage is sought in connection

23  with a real property transfer, such requirements and

24  procedures shall not provide for an effective date of coverage

25  later than the date of the closing of the transfer as

26  established by the transferor, the transferee, and, if

27  applicable, the lender.

28         Section 701.  Subsection (5) of section 627.413,

29  Florida Statutes, is amended to read:

30         627.413  Contents of policies, in general;

31  identification.--

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 1         (5)  Any policy that is a minimum premium policy issued

 2  by an insurer pursuant to the minimum premium provisions of

 3  rules adopted by rating organizations licensed by the

 4  Department of Financial Services Insurance, shall have typed,

 5  printed, stamped, or legibly handwritten on the certificate

 6  the words "minimum premium policy" or equivalent language.

 7  The department may impose an administrative fine pursuant to

 8  s. 624.4211 if the department finds any violation of this

 9  subsection.

10         Section 702.  Paragraph (a) of subsection (3) of

11  section 627.4236, Florida Statutes, is amended to read:

12         627.4236  Coverage for bone marrow transplant

13  procedures.--

14         (3)(a)  The Agency for Health Care Administration shall

15  adopt rules specifying the bone marrow transplant procedures

16  that are accepted within the appropriate oncological specialty

17  and are not experimental for purposes of this section. The

18  rules must be based upon recommendations of an advisory panel

19  appointed by the secretary of the agency, composed of:

20         1.  One adult oncologist, selected from a list of three

21  names recommended by the Florida Medical Association;

22         2.  One pediatric oncologist, selected from a list of

23  three names recommended by the Florida Pediatric Society;

24         3.  One representative of the J. Hillis Miller Health

25  Center at the University of Florida;

26         4.  One representative of the H. Lee Moffitt Cancer

27  Center and Research Institute, Inc.;

28         5.  One consumer representative, selected from a list

29  of three names recommended by the Chief Financial Officer

30  Insurance Commissioner;

31  

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 1         6.  One representative of the Health Insurance

 2  Association of America;

 3         7.  Two representatives of health insurers, one of whom

 4  represents the insurer with the largest Florida health

 5  insurance premium volume and one of whom represents the

 6  insurer with the second largest Florida health insurance

 7  premium volume; and

 8         8.  One representative of the insurer with the largest

 9  Florida small group health insurance premium volume.

10         Section 703.  Paragraph (c) of subsection (14) of

11  section 627.6472, Florida Statutes, is amended to read:

12         627.6472  Exclusive provider organizations.--

13         (14)

14         (c)  The failure of the insurer to pay the assessment

15  within the time specified in s. 641.58 constitutes grounds for

16  suspension or revocation of the insurer's certificate of

17  authority by the Department of Financial Services Insurance.

18         Section 704.  Subsection (11) of section 627.6482,

19  Florida Statutes, is amended to read:

20         627.6482  Definitions.--As used in ss.

21  627.648-627.6498, the term:

22         (11)  "Plan" means the comprehensive health insurance

23  plan adopted by the association or by rule of the Department

24  of Financial Services Insurance.

25         Section 705.  Paragraph (a) of subsection (2) and

26  paragraph (j) of subsection (4) of section 627.6488, Florida

27  Statutes, are amended to read:

28         627.6488  Florida Comprehensive Health Association.--

29         (2)(a)  The association shall operate subject to the

30  supervision and approval of a three-member board of directors.

31  

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 1  The board of directors shall be appointed by the Chief

 2  Financial Officer Insurance Commissioner as follows:

 3         1.  The chair of the board shall be the Chief Financial

 4  Officer Insurance Commissioner or his or her designee.

 5         2.  One representative of policyholders who is not

 6  associated with the medical profession, a hospital, or an

 7  insurer.

 8         3.  One representative of insurers.

 9  

10  The administrator or his or her affiliate shall not be a

11  member of the board. Any board member appointed by the

12  commissioner may be removed and replaced by him or her at any

13  time without cause.

14         (4)  The association shall:

15         (j)  Make a report to the Governor, the Chief Financial

16  Officer Insurance Commissioner, the President of the Senate,

17  the Speaker of the House of Representatives, and the Minority

18  Leaders of the Senate and House of Representatives, not later

19  than 45 days after the close of each calendar quarter, which

20  includes, for the prior quarter, current data and estimates of

21  net written and earned premiums, the expenses of

22  administration, and the paid and incurred losses.  The report

23  shall identify any statutorily mandated program that has not

24  been fully implemented by the board.

25         Section 706.  Subsection (20) of section 627.6675,

26  Florida Statutes, is amended to read:

27         627.6675  Conversion on termination of

28  eligibility.--Subject to all of the provisions of this

29  section, a group policy delivered or issued for delivery in

30  this state by an insurer or nonprofit health care services

31  plan that provides, on an expense-incurred basis, hospital,

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 1  surgical, or major medical expense insurance, or any

 2  combination of these coverages, shall provide that an employee

 3  or member whose insurance under the group policy has been

 4  terminated for any reason, including discontinuance of the

 5  group policy in its entirety or with respect to an insured

 6  class, and who has been continuously insured under the group

 7  policy, and under any group policy providing similar benefits

 8  that the terminated group policy replaced, for at least 3

 9  months immediately prior to termination, shall be entitled to

10  have issued to him or her by the insurer a policy or

11  certificate of health insurance, referred to in this section

12  as a "converted policy." A group insurer may meet the

13  requirements of this section by contracting with another

14  insurer, authorized in this state, to issue an individual

15  converted policy, which policy has been approved by the

16  department under s. 627.410. An employee or member shall not

17  be entitled to a converted policy if termination of his or her

18  insurance under the group policy occurred because he or she

19  failed to pay any required contribution, or because any

20  discontinued group coverage was replaced by similar group

21  coverage within 31 days after discontinuance.

22         (20)  Nothing in this section or in the incorporation

23  of it into insurance policies shall be construed to require

24  insurers to provide benefits equal to those provided in the

25  group policy from which the individual converted; provided,

26  however, that comprehensive benefits are offered which shall

27  be subject to approval by the department Insurance

28  Commissioner.

29         Section 707.  Section 627.7012, Florida Statutes, is

30  amended to read:

31  

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 1         627.7012  Pools of insurance adjusters.--The Department

 2  of Financial Services Insurance may, by rule, establish a pool

 3  of qualified insurance adjusters. The rules must provide that,

 4  if a hurricane occurs or an emergency is declared, the

 5  department may assign members of the pool to the affected area

 6  and that an insurer may request that a member of the pool

 7  adjust claims in the assigned area. The rules may not require

 8  that an insurer use those adjusters assigned by the

 9  department.

10         Section 708.  Subsection (3) of section 627.7015,

11  Florida Statutes, is amended to read:

12         627.7015  Alternative procedure for resolution of

13  disputed property insurance claims.--

14         (3)  The costs of mediation shall be reasonable, and

15  the insurer shall bear all of the cost of conducting mediation

16  conferences, except as otherwise provided in this section. If

17  an insured fails to appear at the conference, the conference

18  shall be rescheduled upon the insured's payment of the costs

19  of a rescheduled conference. If the insurer fails to appear at

20  the conference, the insurer shall pay the insured's actual

21  cash expenses incurred in attending the conference if the

22  insurer's failure to attend was not due to a good cause

23  acceptable to the department. An insurer will be deemed to

24  have failed to appear if the insurer's representative lacks

25  authority to settle the full value of the claim. The insurer

26  shall incur an additional fee for a rescheduled conference

27  necessitated by the insurer's failure to appear at a scheduled

28  conference. The fees assessed by the administrator shall

29  include a charge necessary to defray the expenses of the

30  department related to its duties under this section and shall

31  

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 1  be deposited in the Insurance Commissioner's Regulatory Trust

 2  Fund.

 3         Section 709.  Subsection (1) of section 627.727,

 4  Florida Statutes, is amended to read:

 5         627.727  Motor vehicle insurance; uninsured and

 6  underinsured vehicle coverage; insolvent insurer protection.--

 7         (1)  No motor vehicle liability insurance policy which

 8  provides bodily injury liability coverage shall be delivered

 9  or issued for delivery in this state with respect to any

10  specifically insured or identified motor vehicle registered or

11  principally garaged in this state unless uninsured motor

12  vehicle coverage is provided therein or supplemental thereto

13  for the protection of persons insured thereunder who are

14  legally entitled to recover damages from owners or operators

15  of uninsured motor vehicles because of bodily injury,

16  sickness, or disease, including death, resulting therefrom.

17  However, the coverage required under this section is not

18  applicable when, or to the extent that, an insured named in

19  the policy makes a written rejection of the coverage on behalf

20  of all insureds under the policy.  When a motor vehicle is

21  leased for a period of 1 year or longer and the lessor of such

22  vehicle, by the terms of the lease contract, provides

23  liability coverage on the leased vehicle, the lessee of such

24  vehicle shall have the sole privilege to reject uninsured

25  motorist coverage or to select lower limits than the bodily

26  injury liability limits, regardless of whether the lessor is

27  qualified as a self-insurer pursuant to s. 324.171.  Unless an

28  insured, or lessee having the privilege of rejecting uninsured

29  motorist coverage, requests such coverage or requests higher

30  uninsured motorist limits in writing, the coverage or such

31  higher uninsured motorist limits need not be provided in or

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 1  supplemental to any other policy which renews, extends,

 2  changes, supersedes, or replaces an existing policy with the

 3  same bodily injury liability limits when an insured or lessee

 4  had rejected the coverage.  When an insured or lessee has

 5  initially selected limits of uninsured motorist coverage lower

 6  than her or his bodily injury liability limits, higher limits

 7  of uninsured motorist coverage need not be provided in or

 8  supplemental to any other policy which renews, extends,

 9  changes, supersedes, or replaces an existing policy with the

10  same bodily injury liability limits unless an insured requests

11  higher uninsured motorist coverage in writing. The rejection

12  or selection of lower limits shall be made on a form approved

13  by the department Insurance Commissioner. The form shall fully

14  advise the applicant of the nature of the coverage and shall

15  state that the coverage is equal to bodily injury liability

16  limits unless lower limits are requested or the coverage is

17  rejected.  The heading of the form shall be in 12-point bold

18  type and shall state: "You are electing not to purchase

19  certain valuable coverage which protects you and your family

20  or you are purchasing uninsured motorist limits less than your

21  bodily injury liability limits when you sign this form. Please

22  read carefully." If this form is signed by a named insured, it

23  will be conclusively presumed that there was an informed,

24  knowing rejection of coverage or election of lower limits on

25  behalf of all insureds. The insurer shall notify the named

26  insured at least annually of her or his options as to the

27  coverage required by this section. Such notice shall be part

28  of, and attached to, the notice of premium, shall provide for

29  a means to allow the insured to request such coverage, and

30  shall be given in a manner approved by the department. Receipt

31  of this notice does not constitute an affirmative waiver of

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 1  the insured's right to uninsured motorist coverage where the

 2  insured has not signed a selection or rejection form.  The

 3  coverage described under this section shall be over and above,

 4  but shall not duplicate, the benefits available to an insured

 5  under any workers' compensation law, personal injury

 6  protection benefits, disability benefits law, or similar law;

 7  under any automobile medical expense coverage; under any motor

 8  vehicle liability insurance coverage; or from the owner or

 9  operator of the uninsured motor vehicle or any other person or

10  organization jointly or severally liable together with such

11  owner or operator for the accident; and such coverage shall

12  cover the difference, if any, between the sum of such benefits

13  and the damages sustained, up to the maximum amount of such

14  coverage provided under this section.  The amount of coverage

15  available under this section shall not be reduced by a setoff

16  against any coverage, including liability insurance.  Such

17  coverage shall not inure directly or indirectly to the benefit

18  of any workers' compensation or disability benefits carrier or

19  any person or organization qualifying as a self-insurer under

20  any workers' compensation or disability benefits law or

21  similar law.

22         Section 710.  Subsections (7) and (9) of section

23  627.728, Florida Statutes, are amended to read:

24         627.728  Cancellations; nonrenewals.--

25         (7)  Except in the case of cancellation for nonpayment

26  of premium or nonrenewal of the policy, the notice of

27  cancellation as provided by this section must contain the

28  following words which are to be prominently displayed:  "You

29  are permitted by law to appeal this cancellation.  An appeal

30  must be filed no later than 20 days before the effective date

31  of cancellation set forth in this notice.  Forms for such

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 1  appeal and the regulations pertaining thereto may be obtained

 2  from the offices of the Department of Financial Services

 3  Insurance. The Department of Financial Services Insurance does

 4  not have the authority to extend the effective date of

 5  cancellation; therefore you should obtain replacement coverage

 6  prior to the effective date of cancellation."

 7         (9)  The department shall deposit all fees provided for

 8  in this section into the Insurance Commissioner's Regulatory

 9  Trust Fund.

10         Section 711.  Paragraph (c) of subsection (4) and

11  paragraph (a) of subsection (5) of section 627.736, Florida

12  Statutes, are amended to read:

13         627.736  Required personal injury protection benefits;

14  exclusions; priority; claims.--

15         (4)  BENEFITS; WHEN DUE.--Benefits due from an insurer

16  under ss. 627.730-627.7405 shall be primary, except that

17  benefits received under any workers' compensation law shall be

18  credited against the benefits provided by subsection (1) and

19  shall be due and payable as loss accrues, upon receipt of

20  reasonable proof of such loss and the amount of expenses and

21  loss incurred which are covered by the policy issued under ss.

22  627.730-627.7405. When the Agency for Health Care

23  Administration provides, pays, or becomes liable for medical

24  assistance under the Medicaid program related to injury,

25  sickness, disease, or death arising out of the ownership,

26  maintenance, or use of a motor vehicle, benefits under ss.

27  627.730-627.7405 shall be subject to the provisions of the

28  Medicaid program.

29         (c)  All overdue payments shall bear simple interest at

30  the rate established by the Chief Financial Officer

31  Comptroller under s. 55.03 or the rate established in the

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 1  insurance contract, whichever is greater, for the year in

 2  which the payment became overdue, calculated from the date the

 3  insurer was furnished with written notice of the amount of

 4  covered loss. Interest shall be due at the time payment of the

 5  overdue claim is made.

 6         (5)  CHARGES FOR TREATMENT OF INJURED PERSONS.--

 7         (a)  Any physician, hospital, clinic, or other person

 8  or institution lawfully rendering treatment to an injured

 9  person for a bodily injury covered by personal injury

10  protection insurance may charge only a reasonable amount for

11  the services and supplies rendered, and the insurer providing

12  such coverage may pay for such charges directly to such person

13  or institution lawfully rendering such treatment, if the

14  insured receiving such treatment or his or her guardian has

15  countersigned the invoice, bill, or claim form approved by the

16  Department of Financial Services Insurance upon which such

17  charges are to be paid for as having actually been rendered,

18  to the best knowledge of the insured or his or her guardian.

19  In no event, however, may such a charge be in excess of the

20  amount the person or institution customarily charges for like

21  services or supplies in cases involving no insurance.

22         Section 712.  Section 627.849, Florida Statutes, is

23  amended to read:

24         627.849  Fees.--

25         (1)  The department shall collect in advance, and the

26  persons so served shall pay to it in advance, the following

27  fees:

28         (a)  Annual license fee...........................$250.

29         (b)  Investigation fee.............................100.

30         (c)  Annual report filing fee.......................25.

31         (d)  Form filing fee................................10.

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 1         (2)  The fees received under this section shall be

 2  credited to the Insurance Commissioner's Regulatory Trust

 3  Fund.

 4         Section 713.  Subsections (1) and (5) of section

 5  627.912, Florida Statutes, are amended to read:

 6         627.912  Professional liability claims and actions;

 7  reports by insurers.--

 8         (1)  Each self-insurer authorized under s. 627.357 and

 9  each insurer or joint underwriting association providing

10  professional liability insurance to a practitioner of medicine

11  licensed under chapter 458, to a practitioner of osteopathic

12  medicine licensed under chapter 459, to a podiatric physician

13  licensed under chapter 461, to a dentist licensed under

14  chapter 466, to a hospital licensed under chapter 395, to a

15  crisis stabilization unit licensed under part IV of chapter

16  394, to a health maintenance organization certificated under

17  part I of chapter 641, to clinics included in chapter 390, to

18  an ambulatory surgical center as defined in s. 395.002, or to

19  a member of The Florida Bar shall report in duplicate to the

20  Department of Financial Services Insurance any claim or action

21  for damages for personal injuries claimed to have been caused

22  by error, omission, or negligence in the performance of such

23  insured's professional services or based on a claimed

24  performance of professional services without consent, if the

25  claim resulted in:

26         (a)  A final judgment in any amount.

27         (b)  A settlement in any amount.

28  

29  Reports shall be filed with the department and, if the insured

30  party is licensed under chapter 458, chapter 459, chapter 461,

31  or chapter 466, with the Department of Health, no later than

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 1  30 days following the occurrence of any event listed in

 2  paragraph (a) or paragraph (b). The Department of Health shall

 3  review each report and determine whether any of the incidents

 4  that resulted in the claim potentially involved conduct by the

 5  licensee that is subject to disciplinary action, in which case

 6  the provisions of s. 456.073 shall apply. The Department of

 7  Health, as part of the annual report required by s. 456.026,

 8  shall publish annual statistics, without identifying

 9  licensees, on the reports it receives, including final action

10  taken on such reports by the Department of Health or the

11  appropriate regulatory board.

12         (5)  Any self-insurance program established under s.

13  240.213 shall report in duplicate to the Department of

14  Financial Services Insurance any claim or action for damages

15  for personal injuries claimed to have been caused by error,

16  omission, or negligence in the performance of professional

17  services provided by the Board of Regents through an employee

18  or agent of the Board of Regents, including practitioners of

19  medicine licensed under chapter 458, practitioners of

20  osteopathic medicine licensed under chapter 459, podiatric

21  physicians licensed under chapter 461, and dentists licensed

22  under chapter 466, or based on a claimed performance of

23  professional services without consent if the claim resulted in

24  a final judgment in any amount, or a settlement in any amount.

25  The reports required by this subsection shall contain the

26  information required by subsection (3) and the name, address,

27  and specialty of the employee or agent of the Board of Regents

28  whose performance or professional services is alleged in the

29  claim or action to have caused personal injury.

30         Section 714.  Subsection (1) of section 627.9122,

31  Florida Statutes, is amended to read:

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 1         627.9122  Officers' and directors' liability claims;

 2  reports by insurers.--

 3         (1)  Each insurer providing coverage for officers' and

 4  directors' liability coverage shall report to the Department

 5  of Financial Services Insurance any claim or action for

 6  damages claimed to have been caused by error, omission, or

 7  negligence in the performance of the officer's or director's

 8  services, if the claim resulted in:

 9         (a)  A final judgment in any amount.

10         (b)  A settlement in any amount.

11         (c)  A final disposition not resulting in payment on

12  behalf of the insured.

13  

14  Reports shall be filed with the department no later than 60

15  days following the occurrence of any event listed in paragraph

16  (a), paragraph (b), or paragraph (c).

17         Section 715.  Section 627.919, Florida Statutes, is

18  amended to read:

19         627.919  Maintenance of insurance data.--The department

20  shall maintain data elements required in insurers' annual

21  statements and information reported by insurers pursuant to

22  this part in a computer file which will be available for the

23  generation of reports and calculations on a scheduled or

24  demand basis by the department and Legislature. The

25  acquisition by the department of data processing software,

26  hardware, and services necessary to carry out the provisions

27  of this section by the Chief Financial Officer's Treasurer's

28  Management Information Center shall be exempt from the

29  provisions of part I of chapter 287.

30         Section 716.  Subsection (1) of section 627.94074,

31  Florida Statutes, is amended to read:

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 1         627.94074  Standards for benefit triggers.--

 2         (1)(a)  A long-term care insurance policy shall

 3  condition the payment of benefits on a determination of the

 4  insured's ability to perform activities of daily living and on

 5  cognitive impairment. Eligibility for the payment of benefits

 6  shall not be more restrictive than requiring either a

 7  deficiency in the ability to perform not more than three of

 8  the activities of daily living or the presence of cognitive

 9  impairment; or

10         (b)  If a policy is a qualified long-term care

11  insurance policy, the policy shall condition the payment of

12  benefits on a determination of the insured's being chronically

13  ill; having a level of disability similar, as provided by rule

14  of the department Insurance Commissioner, to the insured's

15  ability to perform activities of daily living; or being

16  cognitively impaired as described in paragraph (6)(b).

17  Eligibility for the payment of benefits shall not be more

18  restrictive than requiring a deficiency in the ability to

19  perform not more than three of the activities of daily living.

20         Section 717.  Paragraph (c) of subsection (1) of

21  section 627.944, Florida Statutes, is amended to read:

22         627.944  Risk retention groups not certificated in this

23  state.--Risk retention groups certificated or licensed in

24  states other than this state and seeking to do business as a

25  risk retention group in this state must observe and abide by

26  the laws of this state as follows:

27         (1)  NOTICE OF OPERATIONS AND DESIGNATION OF

28  COMMISSIONER AS AGENT.--Before offering insurance in this

29  state, a risk retention group shall submit to the department:

30         (c)  A statement of registration which designates the

31  Chief Financial Officer Insurance Commissioner and Treasurer

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 1  or her or his designee as its agent for the purpose of

 2  receiving service of legal documents of process.

 3         Section 718.  Subsection (2) of section 627.948,

 4  Florida Statutes, is amended to read:

 5         627.948  Notice and registration requirements of

 6  purchasing groups.--

 7         (2)  The purchasing group shall register with and

 8  designate the Chief Financial Officer Insurance Commissioner

 9  and Treasurer or her or his designee as its agent solely for

10  the purpose of receiving service of legal documents or

11  process. This requirement shall not apply in the case of a

12  purchasing group:

13         (a)  Which:

14         1.  Was domiciled before April 1, 1986.

15         2.  Is domiciled on and after October 27, 1986, in any

16  state of the United States.

17         (b)  Which:

18         1.  Before October 27, 1986, purchased insurance from

19  an insurance carrier licensed in any state; and

20         2.  Since October 27, 1986, purchased its insurance

21  from an insurance carrier licensed in any state.

22         (c)  Which was a purchasing group under the

23  requirements of the Product Liability Risk Retention Act of

24  1981 before October 27, 1986.

25         (d)  Which does not purchase insurance that was not

26  authorized for purposes of an exemption under that act, as in

27  effect before October 27, 1986.

28         Section 719.  Subsection (8) of section 628.461,

29  Florida Statutes, is amended to read:

30         628.461  Acquisition of controlling stock.--

31  

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 1         (8)  No vote by the stockholder of record, or by any

 2  other person, of any security acquired in contravention of the

 3  provisions of this section is valid.  Any acquisition of any

 4  security contrary to the provisions of this section is void.

 5  Upon the petition of the domestic stock insurer or controlling

 6  company, the circuit court for the county in which the

 7  principal office of such domestic stock insurer is located

 8  may, without limiting the generality of its authority, order

 9  the issuance or entry of an injunction or other order to

10  enforce the provisions of this section. There shall be a

11  private right of action in favor of the domestic stock insurer

12  or controlling company to enforce the provisions of this

13  section. No demand upon the department that it perform its

14  functions shall be required as a prerequisite to any suit by

15  the domestic stock insurer or controlling company against any

16  other person, and in no case shall the department be deemed a

17  necessary party to any action by such domestic stock insurer

18  or controlling company to enforce the provisions of this

19  section. Any person who makes or proposes an acquisition

20  requiring the filing of a statement pursuant to this section,

21  or who files such a statement, shall be deemed to have thereby

22  designated the Chief Financial Officer Insurance Commissioner

23  and Treasurer, or his or her assistant or deputy or another

24  person in charge of his or her office, as such person's agent

25  for service of process under this section, and shall thereby

26  be deemed to have submitted himself or herself to the

27  administrative jurisdiction of the department and to the

28  jurisdiction of the circuit court.

29         Section 720.  Subsection (9) of section 628.4615,

30  Florida Statutes, is amended to read:

31  

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 1         628.4615  Specialty insurers; acquisition of

 2  controlling stock, ownership interest, assets, or control;

 3  merger or consolidation.--

 4         (9)  No vote by the stockholder of record, or by any

 5  other person, of any security acquired in contravention of the

 6  provisions of this section is valid.  Any acquisition contrary

 7  to the provisions of this section is void. Upon the petition

 8  of the specialty insurer or the controlling company, the

 9  circuit court for the county in which the principal office of

10  the specialty insurer is located may, without limiting the

11  generality of its authority, order the issuance or entry of an

12  injunction or other order to enforce the provisions of this

13  section. There shall be a private right of action in favor of

14  the specialty insurer or controlling company to enforce the

15  provisions of this section. No demand upon the department that

16  it perform its functions shall be required as a prerequisite

17  to any suit by the specialty insurer or controlling company

18  against any other person, and in no case shall the department

19  be deemed a necessary party to any action by the specialty

20  insurer or controlling company to enforce the provisions of

21  this section. Any person who makes or proposes an acquisition

22  requiring the filing of an application pursuant to this

23  section, or who files such an application, shall be deemed to

24  have thereby designated the Chief Financial Officer Insurance

25  Commissioner and Treasurer, or his or her assistant or deputy

26  or another person in charge of his or her office, as such

27  person's agent for service of process under this section and

28  shall thereby be deemed to have submitted himself or herself

29  to the administrative jurisdiction of the department and to

30  the jurisdiction of the circuit court.

31  

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 1         Section 721.  Subsection (2), paragraph (a) of

 2  subsection (3), and paragraph (b) of subsection (6) of section

 3  629.401, Florida Statutes, are amended to read:

 4         629.401  Insurance exchange.--

 5         (2)  The operation of this subsection shall become

 6  effective with respect to any exchange only after a

 7  determination by the Chief Financial Officer Insurance

 8  Commissioner and Treasurer that the exchange may operate in an

 9  economic and beneficial manner. A committee shall be appointed

10  to write the constitution and bylaws of the proposed exchange,

11  to make such other recommendations as may be necessary to

12  assure maximum coordination of the operations of the exchange

13  with existing insurance industry operations, and to assure

14  maximum economic benefits to the state from the operations of

15  the exchange. The committee shall consist of 13 members, 6 to

16  be appointed by the Chief Financial Officer Insurance

17  Commissioner and Treasurer, 2 each to be appointed by the

18  Speaker of the House of Representatives and the President of

19  the Senate, 1 each to be appointed by the minority leader of

20  the House of Representatives and the minority leader of the

21  Senate, and 1 to be the Insurance Commissioner and Treasurer

22  or his or her designated representative. The chair shall be

23  elected by a majority of the committee. The committee shall

24  transmit such proposed constitution and bylaws and such other

25  recommendations to the Chief Financial Officer Insurance

26  Commissioner and Treasurer and to the Legislature no later

27  than 5 days prior to the adjournment of a regular annual

28  legislative session or no later than 5 days prior to the

29  commencement of any special or organizational legislative

30  session. Subject to the disapproval of the constitution and

31  bylaws by either house of the Legislature by resolution before

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 1  the end of such legislative session, the exchange shall have

 2  full authority to function pursuant to its constitution and

 3  bylaws 60 days after the end of the session. The initial board

 4  of governors of the exchange shall consist of 14 members, 3

 5  appointed by the Chief Financial Officer Insurance

 6  Commissioner and Treasurer, 3 by the Speaker of the House of

 7  Representatives, 3 by the President of the Senate, 1 by the

 8  minority leader of the House of Representatives, 1 by the

 9  minority leader of the Senate, and 3 by the Governor, to serve

10  until the first election pursuant to the constitution or

11  bylaws.

12         (3)  The constitution and bylaws of the exchange shall

13  provide for, but shall not be limited to:

14         (a)  The selection of 13 governors, at least 7 of whom

15  shall be appointed by and serve at the pleasure of the Chief

16  Financial Officer Insurance Commissioner. Five of the

17  governors appointed by the Chief Financial Officer Insurance

18  Commissioner shall not be members of the exchange. One of the

19  remaining two governors appointed by the Chief Financial

20  Officer Insurance Commissioner shall be a broker member, and

21  one shall be a representative of an underwriting member. The

22  remainder of the governors shall be elected by the membership

23  of the exchange in accordance with the constitution and

24  bylaws, except that at least five governors shall be elected

25  by the underwriting members of the exchange.

26         (6)

27         (b)  In addition to the insurance laws specified in

28  paragraph (a), the department shall regulate the exchange

29  pursuant to the following powers, rights, and duties:

30         1.  General examination powers.--The department shall

31  examine the affairs, transactions, accounts, records, and

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 1  assets of any security fund, exchange, members, and associate

 2  brokers as often as it deems advisable.  The examination may

 3  be conducted by the accredited examiners of the department at

 4  the offices of the entity or person being examined.  The

 5  department shall examine in like manner each prospective

 6  member or associate broker applying for membership in an

 7  exchange.

 8         2.  Departmental approval and applications of

 9  underwriting members.--No underwriting member shall commence

10  operation without the approval of the department.  Before

11  commencing operation, an underwriting member shall provide a

12  written application containing:

13         a.  Name, type, and purpose of the underwriting member.

14         b.  Name, residence address, business background, and

15  qualifications of each person associated or to be associated

16  in the formation or financing of the underwriting member.

17         c.  Full disclosure of the terms of all understandings

18  and agreements existing or proposed among persons so

19  associated relative to the underwriting member, or the

20  formation or financing thereof, accompanied by a copy of each

21  such agreement or understanding.

22         d.  Full disclosure of the terms of all understandings

23  and agreements existing or proposed for management or

24  exclusive agency contracts.

25         3.  Investigation of underwriting member

26  applications.--In connection with any proposal to establish an

27  underwriting member, the department shall make an

28  investigation of:

29         a.  The character, reputation, financial standing, and

30  motives of the organizers, incorporators, or subscribers

31  organizing the proposed underwriting member.

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 1         b.  The character, financial responsibility, insurance

 2  experience, and business qualifications of its proposed

 3  officers.

 4         c.  The character, financial responsibility, business

 5  experience, and standing of the proposed stockholders and

 6  directors, or owners.

 7         4.  Notice of management changes.--An underwriting

 8  member shall promptly give the department written notice of

 9  any change among the directors or principal officers of the

10  underwriting member within 30 days after such change.  The

11  department shall investigate the new directors or principal

12  officers of the underwriting member.  The department's

13  investigation shall include an investigation of the character,

14  financial responsibility, insurance experience, and business

15  qualifications of any new directors or principal officers.  As

16  a result of the investigation, the department may require the

17  underwriting member to replace any new directors or principal

18  officers.

19         5.  Alternate financial statement.--In lieu of any

20  financial examination, the department may accept an audited

21  financial statement.

22         6.  Correction and reconstruction of records.--If the

23  department finds any accounts or records to be inadequate, or

24  inadequately kept or posted, it may employ experts to

25  reconstruct, rewrite, post, or balance them at the expense of

26  the person or entity being examined if such person or entity

27  has failed to maintain, complete, or correct such records or

28  accounts after the department has given him or her or it

29  notice and reasonable opportunity to do so.

30         7.  Obstruction of examinations.--Any person or entity

31  who or which willfully obstructs the department or its

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 1  examiner in an examination is guilty of a misdemeanor of the

 2  second degree, punishable as provided in s. 775.082 or s.

 3  775.083.

 4         8.  Filing of annual statement.--Each underwriting

 5  member shall file with the department a full and true

 6  statement of its financial condition, transactions, and

 7  affairs.  The statement shall be filed on or before March 1 of

 8  each year, or within such extension of time as the department

 9  for good cause grants, and shall be for the preceding calendar

10  year.  The statement shall contain information generally

11  included in insurer financial statements prepared in

12  accordance with generally accepted insurance accounting

13  principles and practices and in a form generally utilized by

14  insurers for financial statements, sworn to by at least two

15  executive officers of the underwriting member. The form of the

16  financial statements shall be the approved form of the

17  National Association of Insurance Commissioners or its

18  successor organization. The department may by rule require

19  each insurer to submit any part of the information contained

20  in the financial statement in a computer-readable form

21  compatible with the department's electronic data processing

22  system.  In addition to information furnished in connection

23  with its annual statement, an underwriting member must furnish

24  to the department as soon as reasonably possible such

25  information about its transactions or affairs as the

26  department requests in writing.  All information furnished

27  pursuant to the department's request must be verified by the

28  oath of two executive officers of the underwriting member.

29         9.  Record maintenance.--Each underwriting member shall

30  have and maintain its principal place of business in this

31  state and shall keep therein complete records of its assets,

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 1  transactions, and affairs in accordance with such methods and

 2  systems as are customary for or suitable to the kind or kinds

 3  of insurance transacted.

 4         10.  Examination of agents.--If the department has

 5  reason to believe that any agent, as defined in s. 626.041, s.

 6  626.051, s. 626.062, or s. 626.914, has violated or is

 7  violating any provision of the insurance law, or upon receipt

 8  of a written complaint signed by any interested person

 9  indicating that any such violation may exist, the department

10  shall conduct such examination as it deems necessary of the

11  accounts, records, documents, and transactions pertaining to

12  or affecting the insurance affairs of such agent.

13         11.  Written reports of department.--The department or

14  its examiner shall make a full and true written report of any

15  examination.  The report shall contain only information

16  obtained from examination of the records, accounts, files, and

17  documents of or relative to the person or entity examined or

18  from testimony of individuals under oath, together with

19  relevant conclusions and recommendations of the examiner based

20  thereon.  The department shall furnish a copy of the report to

21  the person or entity examined not less than 30 days prior to

22  filing the report in its office. If such person or entity so

23  requests in writing within such 30-day period, the department

24  shall grant a hearing with respect to the report and shall not

25  file the report until after the hearing and after such

26  modifications have been made therein as the department deems

27  proper.

28         12.  Admissibility of reports.--The report of an

29  examination when filed shall be admissible in evidence in any

30  action or proceeding brought by the department against the

31  person or entity examined, or against his or her or its

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 1  officers, employees, or agents.  The department or its

 2  examiners may at any time testify and offer other proper

 3  evidence as to information secured or matters discovered

 4  during the course of an examination, whether or not a written

 5  report of the examination has been either made, furnished, or

 6  filed in the department.

 7         13.  Publication of reports.--After an examination

 8  report has been filed, the department may publish the results

 9  of any such examination in one or more newspapers published in

10  this state whenever it deems it to be in the public interest.

11         14.  Consideration of examination reports by entity

12  examined.--After the examination report of an underwriting

13  member has been filed, an affidavit shall be filed with the

14  department, not more than 30 days after the report has been

15  filed, on a form furnished by the department and signed by the

16  person or a representative of any entity examined, stating

17  that the report has been read and that the recommendations

18  made in the report will be considered within a reasonable

19  time.

20         15.  Examination costs.--Each person or entity examined

21  by the department shall pay to the department the expenses

22  incurred in such examination.

23         16.  Exchange costs.--An exchange shall reimburse the

24  department for any expenses incurred by it relating to the

25  regulation of the exchange and its members, except as

26  specified in subparagraph 15.

27         17.  Powers of examiners.--Any examiner appointed by

28  the department, as to the subject of any examination,

29  investigation, or hearing being conducted by him or her, may

30  administer oaths, examine and cross-examine witnesses, and

31  receive oral and documentary evidence, and shall have the

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 1  power to subpoena witnesses, compel their attendance and

 2  testimony, and require by subpoena the production of books,

 3  papers, records, files, correspondence, documents, or other

 4  evidence which the examiner deems relevant to the inquiry. If

 5  any person refuses to comply with any such subpoena or to

 6  testify as to any matter concerning which he or she may be

 7  lawfully interrogated, the Circuit Court of Leon County or the

 8  circuit court of the county wherein such examination,

 9  investigation, or hearing is being conducted, or of the county

10  wherein such person resides, on the department's application

11  may issue an order requiring such person to comply with the

12  subpoena and to testify; and any failure to obey such an order

13  of the court may be punished by the court as a contempt

14  thereof.  Subpoenas shall be served, and proof of such service

15  made, in the same manner as if issued by a circuit court.

16  Witness fees and mileage, if claimed, shall be allowed the

17  same as for testimony in a circuit court.

18         18.  False testimony.--Any person willfully testifying

19  falsely under oath as to any matter material to any

20  examination, investigation, or hearing shall upon conviction

21  thereof be guilty of perjury and shall be punished

22  accordingly.

23         19.  Self-incrimination.--

24         a.  If any person asks to be excused from attending or

25  testifying or from producing any books, papers, records,

26  contracts, documents, or other evidence in connection with any

27  examination, hearing, or investigation being conducted by the

28  department or its examiner, on the ground that the testimony

29  or evidence required of the person may tend to incriminate him

30  or her or subject him or her to a penalty or forfeiture, and

31  the person notwithstanding is directed to give such testimony

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 1  or produce such evidence, he or she shall, if so directed by

 2  the department and the Department of Legal Affairs,

 3  nonetheless comply with such direction; but the person shall

 4  not thereafter be prosecuted or subjected to any penalty or

 5  forfeiture for or on account of any transaction, matter, or

 6  thing concerning which he or she may have so testified or

 7  produced evidence, and no testimony so given or evidence so

 8  produced shall be received against him or her upon any

 9  criminal action, investigation, or proceeding; except that no

10  such person so testifying shall be exempt from prosecution or

11  punishment for any perjury committed by him or her in such

12  testimony, and the testimony or evidence so given or produced

13  shall be admissible against him or her upon any criminal

14  action, investigation, or proceeding concerning such perjury,

15  nor shall he or she be exempt from the refusal, suspension, or

16  revocation of any license, permission, or authority conferred,

17  or to be conferred, pursuant to the insurance law.

18         b.  Any such individual may execute, acknowledge, and

19  file in the office of the department a statement expressly

20  waiving such immunity or privilege in respect to any

21  transaction, matter, or thing specified in such statement, and

22  thereupon the testimony of such individual or such evidence in

23  relation to such transaction, matter, or thing may be received

24  or produced before any judge or justice, court, tribunal,

25  grand jury, or otherwise; and if such testimony or evidence is

26  so received or produced, such individual shall not be entitled

27  to any immunity or privileges on account of any testimony so

28  given or evidence so produced.

29         20.  Penalty for failure to testify.--Any person who

30  refuses or fails, without lawful cause, to testify relative to

31  the affairs of any member, associate broker, or other person

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 1  when subpoenaed and requested by the department to so testify,

 2  as provided in subparagraph 17., shall, in addition to the

 3  penalty provided in subparagraph 17., be guilty of a

 4  misdemeanor of the second degree, punishable as provided in s.

 5  775.082 or s. 775.083.

 6         21.  Name selection.--No underwriting member shall be

 7  formed or authorized to transact insurance in this state under

 8  a name which is the same as that of any authorized insurer or

 9  is so nearly similar thereto as to cause or tend to cause

10  confusion or under a name which would tend to mislead as to

11  the type of organization of the insurer.  Before incorporating

12  under or using any name, the underwriting syndicate or

13  proposed underwriting syndicate shall submit its name or

14  proposed name to the department for the approval of the

15  department.

16         22.  Capitalization.--An underwriting member approved

17  on or after July 2, 1987, shall provide an initial paid-in

18  capital and surplus of $3 million and thereafter shall

19  maintain a minimum policyholder surplus of $2 million in order

20  to be permitted to write insurance.  Underwriting members

21  approved prior to July 2, 1987, shall maintain a minimum

22  policyholder surplus of $1 million. After June 29, 1988,

23  underwriting members approved prior to July 2, 1987, must

24  maintain a minimum policyholder surplus of $1.5 million to

25  write insurance.  After June 29, 1989, underwriting members

26  approved prior to July 2, 1987, must maintain a minimum

27  policyholder surplus of $1.75 million to write insurance.

28  After December 30, 1989, all underwriting members, regardless

29  of the date they were approved, must maintain a minimum

30  policyholder surplus of $2 million to write insurance.  Except

31  for that portion of the paid-in capital and surplus which

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 1  shall be maintained in a security fund of an exchange, the

 2  paid-in capital and surplus shall be invested by an

 3  underwriting member in a manner consistent with ss.

 4  625.301-625.340.  The portion of the paid-in capital and

 5  surplus in any security fund of an exchange shall be invested

 6  in a manner limited to investments for life insurance

 7  companies under the Florida insurance laws.

 8         23.  Limitations on coverage written.--

 9         a.  Limit of risk.--No underwriting member shall expose

10  itself to any loss on any one risk in an amount exceeding 10

11  percent of its surplus to policyholders.  Any risk or portion

12  of any risk which shall have been reinsured in an assuming

13  reinsurer authorized or approved to do such business in this

14  state shall be deducted in determining the limitation of risk

15  prescribed in this section.

16         b.  Restrictions on premiums written.--If the

17  department has reason to believe that the underwriting

18  member's ratio of actual or projected annual gross written

19  premiums to policyholder surplus exceeds 8 to 1 or the

20  underwriting member's ratio of actual or projected annual net

21  premiums to policyholder surplus exceeds 4 to 1, the

22  department may establish maximum gross or net annual premiums

23  to be written by the underwriting member consistent with

24  maintaining the ratios specified in this sub-subparagraph.

25         (I)  Projected annual net or gross premiums shall be

26  based on the actual writings to date for the underwriting

27  member's current calendar year, its writings for the previous

28  calendar year, or both.  Ratios shall be computed on an

29  annualized basis.

30  

31  

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 1         (II)  For purposes of this sub-subparagraph, the term

 2  "gross written premiums" means direct premiums written and

 3  reinsurance assumed.

 4         c.  Surplus as to policyholders.--For the purpose of

 5  determining the limitation on coverage written, surplus as to

 6  policyholders shall be deemed to include any voluntary

 7  reserves, or any part thereof, which are not required by or

 8  pursuant to law and shall be determined from the last sworn

 9  statement of such underwriting member with the department, or

10  by the last report or examination filed by the department,

11  whichever is more recent at the time of assumption of such

12  risk.

13         24.  Unearned premium reserves.--All unearned premium

14  reserves for business written on the exchange shall be

15  calculated on a monthly or more frequent basis or on such

16  other basis as determined by the department; except that all

17  premiums on any marine or transportation insurance trip risk

18  shall be deemed unearned until the trip is terminated.

19         25.  Loss reserves.--All underwriting members of an

20  exchange shall maintain loss reserves, including a reserve for

21  incurred but not reported claims.  The reserves shall be

22  subject to review by the department, and, if loss experience

23  shows that an underwriting member's loss reserves are

24  inadequate, the department shall require the underwriting

25  member to maintain loss reserves in such additional amount as

26  is needed to make them adequate.

27         26.  Distribution of profits.--An underwriting member

28  shall not distribute any profits in the form of cash or other

29  assets to owners except out of that part of its available and

30  accumulated surplus funds which is derived from realized net

31  operating profits on its business and realized capital gains.

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 1  In any one year such payments to owners shall not exceed 30

 2  percent of such surplus as of December 31 of the immediately

 3  preceding year, unless otherwise approved by the department.

 4  No distribution of profits shall be made that would render an

 5  underwriting member either impaired or insolvent.

 6         27.  Stock dividends.--A stock dividend may be paid by

 7  an underwriting member out of any available surplus funds in

 8  excess of the aggregate amount of surplus advanced to the

 9  underwriting member under subparagraph 29.

10         28.  Dividends from earned surplus.--A dividend

11  otherwise lawful may be payable out of an underwriting

12  member's earned surplus even though the total surplus of the

13  underwriting member is then less than the aggregate of its

14  past contributed surplus resulting from issuance of its

15  capital stock at a price in excess of the par value thereof.

16         29.  Borrowing of money by underwriting members.--

17         a.  An underwriting member may borrow money to defray

18  the expenses of its organization, provide it with surplus

19  funds, or for any purpose of its business, upon a written

20  agreement that such money is required to be repaid only out of

21  the underwriting member's surplus in excess of that stipulated

22  in such agreement. The agreement may provide for interest not

23  exceeding 15 percent simple interest per annum.  The interest

24  shall or shall not constitute a liability of the underwriting

25  member as to its funds other than such excess of surplus, as

26  stipulated in the agreement. No commission or promotion

27  expense shall be paid in connection with any such loan.  The

28  use of any surplus note and any repayments thereof shall be

29  subject to the approval of the department.

30         b.  Money so borrowed, together with any interest

31  thereon if so stipulated in the agreement, shall not form a

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 1  part of the underwriting member's legal liabilities except as

 2  to its surplus in excess of the amount thereof stipulated in

 3  the agreement, nor be the basis of any setoff; but until

 4  repayment, financial statements filed or published by an

 5  underwriting member shall show as a footnote thereto the

 6  amount thereof then unpaid, together with any interest thereon

 7  accrued but unpaid.

 8         30.  Liquidation, rehabilitation, and

 9  restrictions.--The department, upon a showing that a member or

10  associate broker of an exchange has met one or more of the

11  grounds contained in part I of chapter 631, may restrict sales

12  by type of risk, policy or contract limits, premium levels, or

13  policy or contract provisions; increase surplus or capital

14  requirements of underwriting members; issue cease and desist

15  orders; suspend or restrict a member's or associate broker's

16  right to transact business; place an underwriting member under

17  conservatorship or rehabilitation; or seek an order of

18  liquidation as authorized by part I of chapter 631.

19         31.  Prohibited conduct.--The following acts by a

20  member, associate broker, or affiliated person shall

21  constitute prohibited conduct:

22         a.  Fraud.

23         b.  Fraudulent or dishonest acts committed by a member

24  or associate broker prior to admission to an exchange, if the

25  facts and circumstances were not disclosed to the department

26  upon application to become a member or associate broker.

27         c.  Conduct detrimental to the welfare of an exchange.

28         d.  Unethical or improper practices or conduct,

29  inconsistent with just and equitable principles of trade as

30  set forth in, but not limited to, ss. 626.951-626.9641 and

31  626.973.

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 1         e.  Failure to use due diligence to ascertain the

 2  insurance needs of a client or a principal.

 3         f.  Misstatements made under oath or upon an

 4  application for membership on an exchange.

 5         g.  Failure to testify or produce documents when

 6  requested by the department.

 7         h.  Willful violation of any law of this state.

 8         i.  Failure of an officer or principal to testify under

 9  oath concerning a member, associate broker, or other person's

10  affairs as they relate to the operation of an exchange.

11         j.  Violation of the constitution and bylaws of the

12  exchange.

13         32.  Penalties for participating in prohibited

14  conduct.--

15         a.  The department may order the suspension of further

16  transaction of business on the exchange of any member or

17  associate broker found to have engaged in prohibited conduct.

18  In addition, any member or associate broker found to have

19  engaged in prohibited conduct may be subject to reprimand,

20  censure, and/or a fine not exceeding $25,000 imposed by the

21  department.

22         b.  Any member which has an affiliated person who is

23  found to have engaged in prohibited conduct shall be subject

24  to involuntary withdrawal or in addition thereto may be

25  subject to suspension, reprimand, censure, and/or a fine not

26  exceeding $25,000.

27         33.  Reduction of penalties.--Any suspension,

28  reprimand, censure, or fine may be remitted or reduced by the

29  department on such terms and conditions as are deemed fair and

30  equitable.

31  

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 1         34.  Other offenses.--Any member or associate broker

 2  that is suspended shall be deprived, during the period of

 3  suspension, of all rights and privileges of a member or of an

 4  associate broker and may be proceeded against by the

 5  department for any offense committed either before or after

 6  the date of suspension.

 7         35.  Reinstatement.--Any member or associate broker

 8  that is suspended may be reinstated at any time on such terms

 9  and conditions as the department may specify.

10         36.  Remittance of fines.--Fines imposed under this

11  section shall be remitted to the department and shall be paid

12  into the Insurance Commissioner's Regulatory Trust Fund.

13         37.  Failure to pay fines.--When a member or associate

14  broker has failed to pay a fine for 15 days after it becomes

15  payable, such member or associate broker shall be suspended,

16  unless the department has granted an extension of time to pay

17  such fine.

18         38.  Changes in ownership or assets.--In the event of a

19  major change in the ownership or a major change in the assets

20  of an underwriting member, the underwriting member shall

21  report such change in writing to the department within 30 days

22  of the effective date thereof.  The report shall set forth the

23  details of the change.  Any change in ownership or assets of

24  more than 5 percent shall be considered a major change.

25         39.  Retaliation.--

26         a.  When by or pursuant to the laws of any other state

27  or foreign country any taxes, licenses, or other fees, in the

28  aggregate, and any fines, penalties, deposit requirements, or

29  other material obligations, prohibitions, or restrictions are

30  or would be imposed upon an exchange or upon the agents or

31  representatives of such exchange which are in excess of such

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 1  taxes, licenses, and other fees, in the aggregate, or which

 2  are in excess of such fines, penalties, deposit requirements,

 3  or other obligations, prohibitions, or restrictions directly

 4  imposed upon similar exchanges or upon the agents or

 5  representatives of such exchanges of such other state or

 6  country under the statutes of this state, so long as such laws

 7  of such other state or country continue in force or are so

 8  applied, the same taxes, licenses, and other fees, in the

 9  aggregate, or fines, penalties, deposit requirements, or other

10  material obligations, prohibitions, or restrictions of

11  whatever kind shall be imposed by the department upon the

12  exchanges, or upon the agents or representatives of such

13  exchanges, of such other state or country doing business or

14  seeking to do business in this state.

15         b.  Any tax, license, or other obligation imposed by

16  any city, county, or other political subdivision or agency of

17  a state, jurisdiction, or foreign country on an exchange, or

18  on the agents or representatives on an exchange, shall be

19  deemed to be imposed by such state, jurisdiction, or foreign

20  country within the meaning of sub-subparagraph a.

21         40.  Agents.--

22         a.  Agents as defined in ss. 626.041, 626.051, 626.062,

23  and 626.914 who are broker members or associate broker members

24  of an exchange shall be allowed only to place on an exchange

25  the same kind or kinds of business that the agent is licensed

26  to place pursuant to Florida law.  Direct Florida business as

27  defined in s. 626.916 or s. 626.917 shall be written through a

28  broker member who is a surplus lines agent as defined in s.

29  626.914.  The activities of each broker member or associate

30  broker with regard to an exchange shall be subject to all

31  applicable provisions of the insurance laws of this state, and

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 1  all such activities shall constitute transactions under his or

 2  her license as an insurance agent for purposes of the Florida

 3  insurance law.

 4         b.  Premium payments and other requirements.--If an

 5  underwriting member has assumed the risk as to a surplus lines

 6  coverage and if the premium therefor has been received by the

 7  surplus lines agent who placed such insurance, then in all

 8  questions thereafter arising under the coverage as between the

 9  underwriting member and the insured, the underwriting member

10  shall be deemed to have received the premium due to it for

11  such coverage; and the underwriting member shall be liable to

12  the insured as to losses covered by such insurance, and for

13  unearned premiums which may become payable to the insured upon

14  cancellation of such insurance, whether or not in fact the

15  surplus lines agent is indebted to the underwriting member

16  with respect to such insurance or for any other cause.

17         41.  Improperly issued contracts, riders, and

18  endorsements.--

19         a.  Any insurance policy, rider, or endorsement issued

20  by an underwriting member and otherwise valid which contains

21  any condition or provision not in compliance with the

22  requirements of this section shall not be thereby rendered

23  invalid, except as provided in s. 627.415, but shall be

24  construed and applied in accordance with such conditions and

25  provisions as would have applied had such policy, rider, or

26  endorsement been in full compliance with this section.  In the

27  event an underwriting member issues or delivers any policy for

28  an amount which exceeds any limitations otherwise provided in

29  this section, the underwriting member shall be liable to the

30  insured or his or her beneficiary for the full amount stated

31  

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 1  in the policy in addition to any other penalties that may be

 2  imposed.

 3         b.  Any insurance contract delivered or issued for

 4  delivery in this state governing a subject or subjects of

 5  insurance resident, located, or to be performed in this state

 6  which, pursuant to the provisions of this section, the

 7  underwriting member may not lawfully insure under such a

 8  contract shall be cancelable at any time by the underwriting

 9  member, any provision of the contract to the contrary

10  notwithstanding; and the underwriting member shall promptly

11  cancel the contract in accordance with the request of the

12  department therefor.  No such illegality or cancellation shall

13  be deemed to relieve the underwriting syndicate of any

14  liability incurred by it under the contract while in force or

15  to prohibit the underwriting syndicate from retaining the pro

16  rata earned premium thereon.  This provision does not relieve

17  the underwriting syndicate from any penalty otherwise incurred

18  by the underwriting syndicate.

19         42.  Satisfaction of judgments.--

20         a.  Every judgment or decree for the recovery of money

21  heretofore or hereafter entered in any court of competent

22  jurisdiction against any underwriting member shall be fully

23  satisfied within 60 days from and after the entry thereof or,

24  in the case of an appeal from such judgment or decree, within

25  60 days from and after the affirmance of the judgment or

26  decree by the appellate court.

27         b.  If the judgment or decree is not satisfied as

28  required under sub-subparagraph a., and proof of such failure

29  to satisfy is made by filing with the department a certified

30  transcript of the docket of the judgment or the decree

31  together with a certificate by the clerk of the court wherein

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 1  the judgment or decree remains unsatisfied, in whole or in

 2  part, after the time provided in sub-subparagraph a., the

 3  department shall forthwith prohibit the underwriting member

 4  from transacting business.  The department shall not permit

 5  such underwriting member to write any new business until the

 6  judgment or decree is wholly paid and satisfied and proof

 7  thereof is filed with the department under the official

 8  certificate of the clerk of the court wherein the judgment was

 9  recovered, showing that the judgment or decree is satisfied of

10  record, and until the expenses and fees incurred in the case

11  are also paid by the underwriting syndicate.

12         43.  Tender and exchange offers.--No person shall

13  conclude a tender offer or an exchange offer or otherwise

14  acquire 5 percent or more of the outstanding voting securities

15  of an underwriting member or controlling company or purchase 5

16  percent or more of the ownership of an underwriting member or

17  controlling company unless such person has filed with, and

18  obtained the approval of, the department and sent to such

19  underwriting member a statement setting forth:

20         a.  The identity of, and background information on,

21  each person by whom, or on whose behalf, the acquisition is to

22  be made; and, if the acquisition is to be made by or on behalf

23  of a corporation, association, or trust, the identity of and

24  background information on each director, officer, trustee, or

25  other natural person performing duties similar to those of a

26  director, officer, or trustee for the corporation,

27  association, or trust.

28         b.  The source and amount of the funds or other

29  consideration used, or to be used, in making the acquisition.

30  

31  

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 1         c.  Any plans or proposals which such person may have

 2  to liquidate such member, to sell its assets, or to merge or

 3  consolidate it.

 4         d.  The percentage of ownership which such person

 5  proposes to acquire and the terms of the offer or exchange, as

 6  the case may be.

 7         e.  Information as to any contracts, arrangements, or

 8  understandings with any party with respect to any securities

 9  of such member or controlling company, including, but not

10  limited to, information relating to the transfer of any

11  securities, option arrangements, or puts or calls or the

12  giving or withholding of proxies, naming the party with whom

13  such contract, arrangements, or understandings have been

14  entered and giving the details thereof.

15         f.  The department may disapprove any acquisition

16  subject to the provisions of this subparagraph by any person

17  or any affiliated person of such person who:

18         (I)  Willfully violates this subparagraph;

19         (II)  In violation of an order of the department issued

20  pursuant to sub-subparagraph j., fails to divest himself or

21  herself of any stock obtained in violation of this

22  subparagraph, or fails to divest himself or herself of any

23  direct or indirect control of such stock, within 25 days after

24  such order; or

25         (III)  In violation of an order issued by the

26  department pursuant to sub-subparagraph j., acquires

27  additional stock of the underwriting member or controlling

28  company, or direct or indirect control of such stock, without

29  complying with this subparagraph.

30         g.  The person or persons filing the statement required

31  by this subparagraph have the burden of proof.  The department

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 1  shall approve any such acquisition if it finds, on the basis

 2  of the record made during any proceeding or on the basis of

 3  the filed statement if no proceeding is conducted, that:

 4         (I)  Upon completion of the acquisition, the

 5  underwriting member will be able to satisfy the requirements

 6  for the approval to write the line or lines of insurance for

 7  which it is presently approved;

 8         (II)  The financial condition of the acquiring person

 9  or persons will not jeopardize the financial stability of the

10  underwriting member or prejudice the interests of its

11  policyholders or the public;

12         (III)  Any plan or proposal which the acquiring person

13  has, or acquiring persons have, made:

14         (A)  To liquidate the insurer, sell its assets, or

15  merge or consolidate it with any person, or to make any other

16  major change in its business or corporate structure or

17  management; or

18         (B)  To liquidate any controlling company, sell its

19  assets, or merge or consolidate it with any person, or to make

20  any major change in its business or corporate structure or

21  management which would have an effect upon the underwriting

22  member

23  

24  is fair and free of prejudice to the policyholders of the

25  underwriting member or to the public;

26         (IV)  The competence, experience, and integrity of

27  those persons who will control directly or indirectly the

28  operation of the underwriting member indicate that the

29  acquisition is in the best interest of the policyholders of

30  the underwriting member and in the public interest;

31  

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 1         (V)  The natural persons for whom background

 2  information is required to be furnished pursuant to this

 3  subparagraph have such backgrounds as to indicate that it is

 4  in the best interests of the policyholders of the underwriting

 5  member, and in the public interest, to permit such persons to

 6  exercise control over such underwriting member;

 7         (VI)  The officers and directors to be employed after

 8  the acquisition have sufficient insurance experience and

 9  ability to assure reasonable promise of successful operation;

10         (VII)  The management of the underwriting member after

11  the acquisition will be competent and trustworthy and will

12  possess sufficient managerial experience so as to make the

13  proposed operation of the underwriting member not hazardous to

14  the insurance-buying public;

15         (VIII)  The management of the underwriting member after

16  the acquisition will not include any person who has directly

17  or indirectly through ownership, control, reinsurance

18  transactions, or other insurance or business relations

19  unlawfully manipulated the assets, accounts, finances, or

20  books of any insurer or underwriting member or otherwise acted

21  in bad faith with respect thereto;

22         (IX)  The acquisition is not likely to be hazardous or

23  prejudicial to the underwriting member's policyholders or the

24  public; and

25         (X)  The effect of the acquisition of control would not

26  substantially lessen competition in insurance in this state or

27  would not tend to create a monopoly therein.

28         h.  No vote by the stockholder of record, or by any

29  other person, of any security acquired in contravention of the

30  provisions of this subparagraph is valid.  Any acquisition of

31  any security contrary to the provisions of this subparagraph

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 1  is void. Upon the petition of the underwriting member or

 2  controlling company, the circuit court for the county in which

 3  the principal office of such underwriting member is located

 4  may, without limiting the generality of its authority, order

 5  the issuance or entry of an injunction or other order to

 6  enforce the provisions of this subparagraph.  There shall be a

 7  private right of action in favor of the underwriting member or

 8  controlling company to enforce the provisions of this

 9  subparagraph.  No demand upon the department that it perform

10  its functions shall be required as a prerequisite to any suit

11  by the underwriting member or controlling company against any

12  other person, and in no case shall the department be deemed a

13  necessary party to any action by such underwriting member or

14  controlling company to enforce the provisions of this

15  subparagraph.  Any person who makes or proposes an acquisition

16  requiring the filing of a statement pursuant to this

17  subparagraph, or who files such a statement, shall be deemed

18  to have thereby designated the Chief Financial Officer

19  Insurance Commissioner or his or her assistant or deputy or

20  another person in charge of his or her office, as such

21  person's agent for service of process under this subparagraph

22  and shall thereby be deemed to have submitted himself or

23  herself to the administrative jurisdiction of the department

24  and to the jurisdiction of the circuit court.

25         i.  Any approval by the department under this

26  subparagraph does not constitute a recommendation by the

27  department for an acquisition, tender offer, or exchange

28  offer.  It is unlawful for a person to represent that the

29  department's approval constitutes a recommendation.  A person

30  who violates the provisions of this sub-subparagraph is guilty

31  of a felony of the third degree, punishable as provided in s.

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 1  775.082, s. 775.083, or s. 775.084.  The

 2  statute-of-limitations period for the prosecution of an

 3  offense committed under this sub-subparagraph is 5 years.

 4         j.  Upon notification to the department by the

 5  underwriting member or a controlling company that any person

 6  or any affiliated person of such person has acquired 5 percent

 7  or more of the outstanding voting securities of the

 8  underwriting member or controlling company without complying

 9  with the provisions of this subparagraph, the department shall

10  order that the person and any affiliated person of such person

11  cease acquisition of any further securities of the

12  underwriting member or controlling company; however, the

13  person or any affiliated person of such person may request a

14  proceeding, which proceeding shall be convened within 7 days

15  after the rendering of the order for the sole purpose of

16  determining whether the person, individually or in connection

17  with any affiliated person of such person, has acquired 5

18  percent or more of the outstanding voting securities of an

19  underwriting member or controlling company.  Upon the failure

20  of the person or affiliated person to request a hearing within

21  7 days, or upon a determination at a hearing convened pursuant

22  to this sub-subparagraph that the person or affiliated person

23  has acquired voting securities of an underwriting member or

24  controlling company in violation of this subparagraph, the

25  department may order the person and affiliated person to

26  divest themselves of any voting securities so acquired.

27         k.(I)  The department shall, if necessary to protect

28  the public interest, suspend or revoke the certificate of

29  authority of any underwriting member or controlling company:

30         (A)  The control of which is acquired in violation of

31  this subparagraph;

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 1         (B)  That is controlled, directly or indirectly, by any

 2  person or any affiliated person of such person who, in

 3  violation of this subparagraph, has obtained control of an

 4  underwriting member or controlling company; or

 5         (C)  That is controlled, directly or indirectly, by any

 6  person who, directly or indirectly, controls any other person

 7  who, in violation of this subparagraph, acquires control of an

 8  underwriting member or controlling company.

 9         (II)  If any underwriting member is subject to

10  suspension or revocation pursuant to sub-sub-subparagraph (I),

11  the underwriting member shall be deemed to be in such

12  condition, or to be using or to have been subject to such

13  methods or practices in the conduct of its business, as to

14  render its further transaction of insurance presently or

15  prospectively hazardous to its policyholders, creditors, or

16  stockholders or to the public.

17         l.(I)  For the purpose of this sub-sub-subparagraph,

18  the term "affiliated person" of another person means:

19         (A)  The spouse of such other person;

20         (B)  The parents of such other person and their lineal

21  descendants and the parents of such other person's spouse and

22  their lineal descendants;

23         (C)  Any person who directly or indirectly owns or

24  controls, or holds with power to vote, 5 percent or more of

25  the outstanding voting securities of such other person;

26         (D)  Any person 5 percent or more of the outstanding

27  voting securities of which are directly or indirectly owned or

28  controlled, or held with power to vote, by such other person;

29         (E)  Any person or group of persons who directly or

30  indirectly control, are controlled by, or are under common

31  

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 1  control with such other person; or any officer, director,

 2  partner, copartner, or employee of such other person;

 3         (F)  If such other person is an investment company, any

 4  investment adviser of such company or any member of an

 5  advisory board of such company;

 6         (G)  If such other person is an unincorporated

 7  investment company not having a board of directors, the

 8  depositor of such company; or

 9         (H)  Any person who has entered into an agreement,

10  written or unwritten, to act in concert with such other person

11  in acquiring or limiting the disposition of securities of an

12  underwriting member or controlling company.

13         (II)  For the purposes of this section, the term

14  "controlling company" means any corporation, trust, or

15  association owning, directly or indirectly, 25 percent or more

16  of the voting securities of one or more underwriting members.

17         m.  The department is authorized to adopt, amend, or

18  repeal rules that are necessary to implement the provisions of

19  this subparagraph, pursuant to chapter 120.

20         44.  Background information.--The information as to the

21  background and identity of each person about whom information

22  is required to be furnished pursuant to sub-subparagraph 43.a.

23  shall include, but shall not be limited to:

24         a.  Such person's occupations, positions of employment,

25  and offices held during the past 10 years.

26         b.  The principal business and address of any business,

27  corporation, or other organization in which each such office

28  was held or in which such occupation or position of employment

29  was carried on.

30  

31  

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 1         c.  Whether, at any time during such 10-year period,

 2  such person was convicted of any crime other than a traffic

 3  violation.

 4         d.  Whether, during such 10-year period, such person

 5  has been the subject of any proceeding for the revocation of

 6  any license and, if so, the nature of such proceeding and the

 7  disposition thereof.

 8         e.  Whether, during such 10-year period, such person

 9  has been the subject of any proceeding under the federal

10  Bankruptcy Act or whether, during such 10-year period, any

11  corporation, partnership, firm, trust, or association in which

12  such person was a director, officer, trustee, partner, or

13  other official has been subject to any such proceeding, either

14  during the time in which such person was a director, officer,

15  trustee, partner, or other official, or within 12 months

16  thereafter.

17         f.  Whether, during such 10-year period, such person

18  has been enjoined, either temporarily or permanently, by a

19  court of competent jurisdiction from violating any federal or

20  state law regulating the business of insurance, securities, or

21  banking, or from carrying out any particular practice or

22  practices in the course of the business of insurance,

23  securities, or banking, together with details of any such

24  event.

25         45.  Security fund.--All underwriting members shall be

26  members of the security fund of any exchange.

27         46.  Underwriting member defined.--Whenever the term

28  "underwriting member" is used in this subsection, it shall be

29  construed to mean "underwriting syndicate."

30  

31  

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 1         47.  Offsets.--Any action, requirement, or constraint

 2  imposed by the department shall reduce or offset similar

 3  actions, requirements, or constraints of any exchange.

 4         48.  Restriction on member ownership.--

 5         a.  Investments existing prior to July 2, 1987.--The

 6  investment in any member by brokers, agents, and

 7  intermediaries transacting business on the exchange, and the

 8  investment in any such broker, agent, or intermediary by any

 9  member, directly or indirectly, shall in each case be limited

10  in the aggregate to less than 20 percent of the total

11  investment in such member, broker, agent, or intermediary, as

12  the case may be. After December 31, 1987, the aggregate

13  percent of the total investment in such member by any broker,

14  agent, or intermediary and the aggregate percent of the total

15  investment in any such broker, agent, or intermediary by any

16  member, directly or indirectly, shall not exceed 15 percent.

17  After June 30, 1988, such aggregate percent shall not exceed

18  10 percent and after December 31, 1988, such aggregate percent

19  shall not exceed 5 percent.

20         b.  Investments arising on or after July 2, 1987.--The

21  investment in any underwriting member by brokers, agents, or

22  intermediaries transacting business on the exchange, and the

23  investment in any such broker, agent, or intermediary by any

24  underwriting member, directly or indirectly, shall in each

25  case be limited in the aggregate to less than 5 percent of the

26  total investment in such underwriting member, broker, agent,

27  or intermediary.

28         49.  "Underwriting manager" defined.--"Underwriting

29  manager" as used in this subparagraph includes any person,

30  partnership, corporation, or organization providing any of the

31  following services to underwriting members of the exchange:

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 1         a.  Office management and allied services, including

 2  correspondence and secretarial services.

 3         b.  Accounting services, including bookkeeping and

 4  financial report preparation.

 5         c.  Investment and banking consultations and services.

 6         d.  Underwriting functions and services including the

 7  acceptance, rejection, placement, and marketing of risk.

 8         50.  Prohibition of underwriting manager

 9  investment.--Any direct or indirect investment in any

10  underwriting manager by a broker member or any affiliated

11  person of a broker member or any direct or indirect investment

12  in a broker member by an underwriting manager or any

13  affiliated person of an underwriting manager is prohibited.

14  "Affiliated person" for purposes of this subparagraph is

15  defined in subparagraph 43.

16         51.  An underwriting member may not accept reinsurance

17  on an assumed basis from an affiliate or a controlling

18  company, nor may a broker member or management company place

19  reinsurance from an affiliate or controlling company of theirs

20  with an underwriting member.  "Affiliate and controlling

21  company" for purposes of this subparagraph is defined in

22  subparagraph 43.

23         52.  Premium defined.--"Premium" is the consideration

24  for insurance, by whatever name called.  Any "assessment" or

25  any "membership," "policy," "survey," "inspection," "service"

26  fee or charge or similar fee or charge in consideration for an

27  insurance contract is deemed part of the premium.

28         53.  Rules.--The department shall promulgate rules

29  necessary for or as an aid to the effectuation of any

30  provision of this section.

31  

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 1         Section 722.  Subsection (2) of section 631.001,

 2  Florida Statutes, is amended to read:

 3         631.001  Title, construction, and purpose.--

 4         (2)  This part may not be interpreted to limit the

 5  powers granted the Department of Financial Services Insurance

 6  by other provisions of law.

 7         Section 723.  Section 631.221, Florida Statutes, is

 8  amended to read:

 9         631.221  Deposit of moneys collected.--The moneys

10  collected by the department in a proceeding under this chapter

11  shall be deposited in a qualified public depository as defined

12  in s. 280.02, which depository with regards to such funds

13  shall conform to and be bound by all the provisions of chapter

14  280, or invested with the Chief Financial Officer State

15  Treasurer pursuant to chapter 17 18. For the purpose of

16  accounting for the assets and transactions of the estate, the

17  receiver shall use such accounting books, records, and systems

18  as the court directs after it hears and considers the

19  recommendations of the receiver.

20         Section 724.  Section 631.392, Florida Statutes, is

21  amended to read:

22         631.392  Immunity.--There shall be no liability on the

23  part of, and no cause of action of any nature shall arise

24  against, the Chief Financial Officer Insurance Commissioner or

25  the department or its employees or agents for any action taken

26  by them in the performance of their powers and duties under

27  this chapter.

28         Section 725.  Subsection (4) of section 631.54, Florida

29  Statutes, is amended to read:

30         631.54  Definitions.--As used in this part:

31  

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 1         (4)  "Department" means the Department of Financial

 2  Services Insurance.

 3         Section 726.  Paragraph (e) of subsection (3) of

 4  section 631.57, Florida Statutes, is amended to read:

 5         631.57  Powers and duties of the association.--

 6         (3)

 7         (e)1.

 8         a.  In addition to assessments otherwise authorized in

 9  paragraph (a), as a temporary measure related to insolvencies

10  caused by Hurricane Andrew, and to the extent necessary to

11  secure the funds for the account specified in s. 631.55(2)(c),

12  or to retire indebtedness, including, without limitation, the

13  principal, redemption premium, if any, and interest on, and

14  related costs of issuance of, bonds issued under s.

15  166.111(2), and the funding of any reserves and other payments

16  required under the bond resolution or trust indenture pursuant

17  to which such bonds have been issued, the department, upon

18  certification of the board of directors, shall levy

19  assessments upon insurers holding a certificate of authority

20  as follows:

21         (I)  Except as provided in sub-sub-subparagraph (II),

22  the assessments payable under this paragraph by any insurer

23  shall not exceed in any 1 year more than 2 percent of that

24  insurer's direct written premiums, net of refunds, in this

25  state during the preceding calendar year for the kinds of

26  insurance within the account specified in s. 631.55(2)(c).

27         (II)  If the amount levied under sub-sub-subparagraph

28  (I) is less than 2 percent of the insurer's direct written

29  premiums, net of refunds, in this state during calendar year

30  1991 for the kinds of insurance within the account specified

31  in s. 631.55(2)(c), in addition to and separate from such

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 1  assessment, the assessment shall also include the difference

 2  between the amount calculated based on calendar year 1991 and

 3  the amount determined under sub-sub-subparagraph (I).  If this

 4  sub-sub-subparagraph is held invalid, the invalidity shall not

 5  affect other provisions of this section, and to this end the

 6  provisions of this section are declared severable.

 7         (III)  In addition to any other insurers subject to

 8  this subparagraph, this subparagraph also applies to any

 9  insurer that held a certificate of authority on August 24,

10  1992.  If this sub-sub-subparagraph is held invalid, the

11  invalidity shall not affect other provisions of this section,

12  and to this end the provisions of this section are declared

13  severable.

14         b.  Any assessments authorized under this paragraph

15  shall be levied by the department upon insurers referred to in

16  sub-subparagraph a., upon certification as to the need

17  therefor by the board of directors, in 1992 and in each year

18  that bonds issued under s. 166.111(2) are outstanding, in such

19  amounts up to such 2 percent limit as required in order to

20  provide for the full and timely payment of the principal of,

21  redemption premium, if any, and interest on, and related costs

22  of, issuance of bonds issued under s. 166.111(2).  The

23  assessments provided for in this paragraph are hereby assigned

24  and pledged to a municipality issuing bonds under s.

25  166.111(2)(b), for the benefit of the holders of such bonds,

26  in order to enable such municipality to provide for the

27  payment of the principal of, redemption premium, if any, and

28  interest on such bonds, the cost of issuance of such bonds,

29  and the funding of any reserves and other payments required

30  under the bond resolution or trust indenture pursuant to which

31  such bonds have been issued, without the necessity of any

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 1  further action by the association, the department, or any

 2  other party.  To the extent that bonds are issued under s.

 3  166.111(2), the proceeds of assessments levied under this

 4  paragraph shall be remitted directly to and administered by

 5  the trustee appointed for such bonds.

 6         c.  Assessments under this paragraph shall be payable

 7  in 12 monthly installments with the first installment being

 8  due and payable at the end of the month after an assessment is

 9  levied, and subsequent installments being due not later than

10  the end of each succeeding month.

11         d.  The association shall issue a monthly report on the

12  status of the use of the bond proceeds as related to

13  insolvencies caused by Hurricane Andrew. The report must

14  contain the number of claims paid and the amount of claims

15  paid. The association shall also include an analysis of the

16  revenue generated from the additional assessment levied under

17  this subsection. The report must be sent to the Legislature

18  and the Chief Financial Officer Insurance Commissioner

19  monthly.

20         2.  In order to assure that insurers paying assessments

21  levied under this paragraph continue to charge rates that are

22  neither inadequate nor excessive, within 90 days after being

23  notified of such assessments, each insurer that is to be

24  assessed pursuant to this paragraph shall make a rate filing

25  for coverage included within the account specified in s.

26  631.55(2)(c) and for which rates are required to be filed

27  under s. 627.062.  If the filing reflects a rate change that,

28  as a percentage, is equal to the difference between the rate

29  of such assessment and the rate of the previous year's

30  assessment under this paragraph, the filing shall consist of a

31  certification so stating and shall be deemed approved when

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 1  made, subject to the department's continuing authority to

 2  require actuarial justification as to the adequacy of any rate

 3  at any time. Any rate change of a different percentage shall

 4  be subject to the standards and procedures of s. 627.062.

 5         Section 727.  Section 631.59, Florida Statutes, is

 6  amended to read:

 7         631.59  Duties and powers of Department of Financial

 8  Services Insurance.--

 9         (1)  The department shall:

10         (a)  Notify the association of the existence of an

11  insolvent insurer not later than 3 days after it receives

12  notice of the determination of the insolvency; and

13         (b)  Upon request of the board of directors, provide

14  the association with a statement of the net direct written

15  premiums of each member insurer.

16         (2)  The department may:

17         (a)  Require that the association notify the insureds

18  of the insolvent insurer and any other interested parties of

19  the determination of insolvency and of their rights under this

20  part. Such notification shall be by mail at their last known

21  addresses, when available, but if sufficient information for

22  notification by mail is not available, notice by publication

23  in a newspaper of general circulation shall be sufficient.

24         (b)  Suspend or revoke the certificate of authority to

25  transact insurance in this state of any member insurer which

26  fails to pay an assessment when due or fails to comply with

27  the plan of operation.  As an alternative, the department may

28  levy a fine on any member insurer which fails to pay an

29  assessment when due.  Such fine may not exceed 5 percent of

30  the unpaid assessment per month, except that no fine shall be

31  less than $100 per month.

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 1         (c)  Revoke the designation of any servicing facility

 2  if it finds claims are being handled unsatisfactorily.

 3         Section 728.  Subsection (5) of section 631.714,

 4  Florida Statutes, is amended to read:

 5         631.714  Definitions.--As used in this part:

 6         (5)  "Department" means the Department of Financial

 7  Services Insurance.

 8         Section 729.  Subsection (3) of section 631.72, Florida

 9  Statutes, is amended to read:

10         631.72  Premium or income tax credits for assessments

11  paid.--

12         (3)  Any sums acquired by refund pursuant to s.

13  631.718(6) from the association which have theretofore been

14  written off by contributing insurers and offset against

15  premium or corporate income taxes as provided in subsection

16  (1) and which are not needed for purposes of this part shall

17  be paid by the insurer to the Department of Revenue for

18  deposit with the Chief Financial Officer Treasurer to the

19  credit of the General Revenue Fund.

20         Section 730.  Subsection (3) of section 631.723,

21  Florida Statutes, is amended to read:

22         631.723  Prevention of insolvencies.--To aid in the

23  detection and prevention of insurer insolvencies or

24  impairments:

25         (3)  The board of directors may, upon majority vote,

26  request that the department order an examination of any member

27  insurer which the board in good faith believes may be an

28  impaired or insolvent insurer.  Within 30 days of the receipt

29  of such a request, the department shall begin such an

30  examination. The examination may be conducted as a National

31  Association of Insurance Commissioners examination or may be

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 1  conducted by such persons as the Chief Financial Officer

 2  Insurance Commissioner designates. The cost of such

 3  examination shall be paid by the association, and the

 4  examination report shall be treated in a manner similar to

 5  other examination reports pursuant to s. 624.319. In no event

 6  may such examination report be released to the board of

 7  directors before its release to the public, but this does not

 8  preclude the department from complying with s. 631.398(2). The

 9  department shall notify the board of directors when the

10  examination is completed. The request for an examination shall

11  be kept on file by the department; such request is

12  confidential and exempt from the provisions of s. 119.07(1)

13  until the examination report is released to the public.

14         Section 731.  Section 631.813, Florida Statutes, is

15  amended to read:

16         631.813  Application of part.--This part shall apply to

17  HMO contractual obligations to residents of Florida by HMOs

18  possessing a valid certificate of authority issued by the

19  Florida Department of Financial Services Insurance as provided

20  by part I of chapter 641.  The provisions of this part shall

21  not apply to persons participating in medical assistance

22  programs under the Medicaid program.

23         Section 732.  Subsection (6) of section 631.814,

24  Florida Statutes, is amended to read:

25         631.814  Definitions.--As used in this part:

26         (6)  "Department" means the Florida Department of

27  Financial Services Insurance.

28         Section 733.  Subsections (2) and (3) of section

29  631.904, Florida Statutes, are amended to read:

30         631.904  Definitions.--As used in this part, the term:

31  

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 1         (2)  "Covered claim" means an unpaid claim, including a

 2  claim for return of unearned premiums, which arises out of, is

 3  within the coverage of, and is not in excess of the applicable

 4  limits of, an insurance policy to which this part applies,

 5  which policy was issued by an insurer and which claim is made

 6  on behalf of a claimant or insured who was a resident of this

 7  state at the time of the injury. The term does not include any

 8  amount due any reinsurer, insurer, insurance pool, or

 9  underwriting association, as subrogation recoveries or

10  otherwise. Member insurers have no right of subrogation

11  against the insured of any insolvent insurer.  This provision

12  shall be applied retroactively to cover claims of an insolvent

13  self-insurance fund resulting from accidents or losses

14  incurred prior to January 1, 1994, regardless of the date the

15  Department of Insurance or the Department of Financial

16  Services filed a petition in circuit court alleging insolvency

17  and the date the court entered an order appointing a receiver.

18         (3)  "Department" means the Department of Financial

19  Services Insurance.

20         Section 734.  Paragraph (c) of subsection (1) of

21  section 631.911, Florida Statutes, is amended to read:

22         631.911  Creation of the Florida Workers' Compensation

23  Insurance Guaranty Association, Incorporated; merger; effect

24  of merger.--

25         (1)

26         (c)  Prior to the effective date of the merger, the

27  Florida Self-Insurance Fund Guaranty Association shall be the

28  entity responsible for the claims of insolvent self-insurance

29  funds resulting from accidents or losses incurred prior to

30  January 1, 1994, regardless of the date the Department of

31  Insurance or the Department of Financial Services filed a

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 1  petition in circuit court alleging insolvency and the date the

 2  court entered an order appointing a receiver.

 3         Section 735.  Subsection (1) of section 631.912,

 4  Florida Statutes, is amended to read:

 5         631.912  Board of directors.--

 6         (1)  The board of directors of the corporation shall

 7  consist of 11 persons, 1 of whom is the insurance consumer

 8  advocate appointed under s. 627.0613 or designee and 1 of whom

 9  is designated by the Chief Financial Officer Insurance

10  Commissioner. The department shall appoint to the board 6

11  persons selected by private carriers from among the 20

12  workers' compensation insurers with the largest amount of net

13  direct written premium as determined by the department, and 3

14  persons selected by the self-insurance funds. At least two of

15  the private carriers shall be foreign carriers authorized to

16  do business in this state. The board shall elect a chairperson

17  from among its members. The commissioner may remove any board

18  member for cause. Each board member shall serve for a 4-year

19  term and may be reappointed, except that four members of the

20  initial board shall have 2-year terms so as to stagger the

21  periods of service. A vacancy on the board shall be filled for

22  the remaining period of the term in the same manner by which

23  the original appointment was made.

24         Section 736.  Subsection (4) of section 631.917,

25  Florida Statutes, is amended to read:

26         631.917  Prevention of insolvencies.--To aid in the

27  detection and prevention of insolvencies or impairments:

28         (4)  The board of directors, in its discretion, may

29  request that the department order an examination of any member

30  insurer which the board in good faith believes may be an

31  impaired or insolvent insurer. Within 30 days after receipt of

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 1  such a request, the department shall begin such an

 2  examination. The examination may be conducted as a National

 3  Association of Insurance Commissioners examination or may be

 4  conducted by such persons as the Chief Financial Officer

 5  Insurance Commissioner designates. The cost of such

 6  examination shall be paid by the corporation, and the

 7  examination report shall be treated in a manner similar to

 8  other examination reports pursuant to s. 624.319.  In no event

 9  may such examination report be released to the board of

10  directors before its release to the public, but this

11  requirement does not preclude the department from complying

12  with s. 631.398(2).  The department shall notify the board of

13  directors when the examination is completed.  The request for

14  an examination shall be kept on file by the department.

15         Section 737.  Section 631.931, Florida Statutes, is

16  amended to read:

17         631.931  Reports and recommendations by board; public

18  records exemption.--Reports and recommendations made by the

19  Board of Directors of the Florida Workers' Compensation

20  Insurance Guaranty Association to the Department of Insurance

21  or the Department of Financial Services under s. 631.917 upon

22  any matter germane to the solvency, liquidation,

23  rehabilitation, or conservation of any member insurer are

24  confidential and exempt from the provisions of s. 119.07(1)

25  and s. 24(a), Art. I of the State Constitution until the

26  termination of a delinquency proceeding.

27         Section 738.  Subsection (4) of section 632.628,

28  Florida Statutes, is amended to read:

29         632.628  Reports.--

30  

31  

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 1         (4)  The department shall deposit all fees received

 2  under this section to the credit of the Insurance

 3  Commissioner's Regulatory Trust Fund.

 4         Section 739.  Subsection (1) of section 633.01, Florida

 5  Statutes, is amended to read:

 6         633.01  State Fire Marshal; powers and duties; rules.--

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

 8  is Insurance shall be designated as "State Fire Marshal."  The

 9  State Fire Marshal has authority to adopt rules pursuant to

10  ss. 120.536(1) and 120.54 to implement the provisions of this

11  chapter conferring powers or duties upon the department. Rules

12  shall be in substantial conformity with generally accepted

13  standards of firesafety; shall take into consideration the

14  direct supervision of children in nonresidential child care

15  facilities; and shall balance and temper the need of the State

16  Fire Marshal to protect all Floridians from fire hazards with

17  the social and economic inconveniences that may be caused or

18  created by the rules. The department shall adopt the Florida

19  Fire Prevention Code and the Life Safety Code.

20         Section 740.  Subsection (1) of section 633.022,

21  Florida Statutes, is amended to read:

22         633.022  Uniform firesafety standards.--The Legislature

23  hereby determines that to protect the public health, safety,

24  and welfare it is necessary to provide for firesafety

25  standards governing the construction and utilization of

26  certain buildings and structures. The Legislature further

27  determines that certain buildings or structures, due to their

28  specialized use or to the special characteristics of the

29  person utilizing or occupying these buildings or structures,

30  should be subject to firesafety standards reflecting these

31  special needs as may be appropriate.

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 1         (1)  The Department of Financial Services Insurance

 2  shall establish uniform firesafety standards that apply to:

 3         (a)  All new, existing, and proposed state-owned and

 4  state-leased buildings.

 5         (b)  All new, existing, and proposed hospitals, nursing

 6  homes, assisted living facilities, adult family-care homes,

 7  correctional facilities, public schools, transient public

 8  lodging establishments, public food service establishments,

 9  elevators, migrant labor camps, mobile home parks, lodging

10  parks, recreational vehicle parks, recreational camps,

11  residential and nonresidential child care facilities,

12  facilities for the developmentally disabled, motion picture

13  and television special effects productions, and self-service

14  gasoline stations, of which standards the State Fire Marshal

15  is the final administrative interpreting authority. With

16  respect to public schools, the department shall utilize

17  firesafety standards that have been adopted by the State Board

18  of Education.

19  

20  In the event there is a dispute between the owners of the

21  buildings specified in paragraph (b) and a local authority

22  requiring a more stringent uniform firesafety standard for

23  sprinkler systems, the State Fire Marshal shall be the final

24  administrative interpreting authority and the State Fire

25  Marshal's interpretation regarding the uniform firesafety

26  standards shall be considered final agency action.

27         Section 741.  Subsection (4) of section 633.025,

28  Florida Statutes, is amended to read:

29         633.025  Minimum firesafety standards.--

30         (4)  Such codes shall be minimum codes and a

31  municipality, county, or special district with firesafety

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 1  responsibilities may adopt more stringent firesafety

 2  standards, subject to the requirements of this subsection.

 3  Such county, municipality, or special district may establish

 4  alternative requirements to those requirements which are

 5  required under the minimum firesafety standards on a

 6  case-by-case basis, in order to meet special situations

 7  arising from historic, geographic, or unusual conditions, if

 8  the alternative requirements result in a level of protection

 9  to life, safety, or property equal to or greater than the

10  applicable minimum firesafety standards. For the purpose of

11  this subsection, the term "historic" means that the building

12  or structure is listed on the National Register of Historic

13  Places of the United States Department of the Interior.

14         (a)  The local governing body shall determine,

15  following a public hearing which has been advertised in a

16  newspaper of general circulation at least 10 days before the

17  hearing, if there is a need to strengthen the requirements of

18  the minimum firesafety code adopted by such governing body.

19  The determination must be based upon a review of local

20  conditions by the local governing body, which review

21  demonstrates that local conditions justify more stringent

22  requirements than those specified in the minimum firesafety

23  code for the protection of life and property or justify

24  requirements that meet special situations arising from

25  historic, geographic, or unusual conditions.

26         (b)  Such additional requirements shall not be

27  discriminatory as to materials, products, or construction

28  techniques of demonstrated capabilities.

29         (c)  Paragraphs (a) and (b) apply solely to the local

30  enforcing agency's adoption of requirements more stringent

31  than those specified in the Florida Fire Prevention Code and

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 1  the Life Safety Code that have the effect of amending building

 2  construction standards. Upon request, the enforcing agency

 3  shall provide a person making application for a building

 4  permit, or any state agency or board with construction-related

 5  regulation responsibilities, a listing of all such

 6  requirements and codes.

 7         (d)  A local government which adopts amendments to the

 8  minimum firesafety code must provide a procedure by which the

 9  validity of such amendments may be challenged by any

10  substantially affected party to test the amendment's

11  compliance with the provisions of this section.

12         1.  Unless the local government agrees to stay

13  enforcement of the amendment, or other good cause is shown,

14  the challenging party shall be entitled to a hearing on the

15  challenge within 45 days.

16         2.  For purposes of such challenge, the burden of proof

17  shall be on the challenging party, but the amendment shall not

18  be presumed to be valid or invalid.

19  

20  This subsection gives local government the authority to

21  establish firesafety codes that exceed the minimum firesafety

22  codes and standards adopted by the State Fire Marshal. The

23  Legislature intends that local government give proper public

24  notice and hold public hearings before adopting more stringent

25  firesafety codes and standards. A substantially affected

26  person may appeal, to the Department of Financial Services

27  Insurance, the local government's resolution of the challenge,

28  and the department shall determine if the amendment complies

29  with this section. Actions of the department are subject to

30  judicial review pursuant to s. 120.68.  The department shall

31  consider reports of the Florida Building Commission, pursuant

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 1  to part VII of chapter 553, when evaluating building code

 2  enforcement.

 3         Section 742.  Paragraph (a) of subsection (1) of

 4  section 633.052, Florida Statutes, is amended to read:

 5         633.052  Ordinances relating to firesafety;

 6  definitions; penalties.--

 7         (1)  As used in this section:

 8         (a)  A "firesafety inspector" is an individual

 9  certified by the Division of State Fire Marshal of the

10  Department of Financial Services Insurance, officially

11  assigned the duties of conducting firesafety inspections of

12  buildings and facilities on a recurring or regular basis,

13  investigating civil infractions relating to firesafety, and

14  issuing citations pursuant to this section on behalf of the

15  state or any county, municipality, or special district with

16  firesafety responsibilities.

17         Section 743.  Subsection (7) of section 633.061,

18  Florida Statutes, is amended to read:

19         633.061  License or permit required of organizations

20  and individuals servicing, recharging, repairing, testing,

21  marking, inspecting, installing, or hydrotesting fire

22  extinguishers and preengineered systems.--

23         (7)  The fees collected for any such licenses and

24  permits and the filing fees for license and permit examination

25  are hereby appropriated for the use of the State Fire Marshal

26  in the administration of this chapter and shall be deposited

27  in the Insurance Commissioner's Regulatory Trust Fund.

28         Section 744.  Paragraphs (4) and (7) of section

29  633.081, Florida Statutes, are amended to read:

30         633.081  Inspection of buildings and equipment; orders;

31  firesafety inspection training requirements; certification;

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 1  disciplinary action.--The State Fire Marshal and her or his

 2  agents shall, at any reasonable hour, when the department has

 3  reasonable cause to believe that a violation of this chapter

 4  or s. 509.215, or a rule promulgated thereunder, or a minimum

 5  firesafety code adopted by a local authority, may exist,

 6  inspect any and all buildings and structures which are subject

 7  to the requirements of this chapter or s. 509.215 and rules

 8  promulgated thereunder. The authority to inspect shall extend

 9  to all equipment, vehicles, and chemicals which are located

10  within the premises of any such building or structure.

11         (4)  A firefighter certified pursuant to s. 633.35 may

12  conduct firesafety inspections, under the supervision of a

13  certified firesafety inspector, while on duty as a member of a

14  fire department company conducting inservice firesafety

15  inspections without being certified as a firesafety inspector,

16  if such firefighter has satisfactorily completed an inservice

17  fire department company inspector training program of at least

18  24 hours' duration as provided by rule of the Department of

19  Financial Services Insurance.

20         (7)  The Department of Financial Services Insurance

21  shall provide by rule for the certification of firesafety

22  inspectors.

23         Section 745.  Section 633.111, Florida Statutes, is

24  amended to read:

25         633.111  State Fire Marshal to keep records of fires;

26  reports of agents.--The State Fire Marshal shall keep in her

27  or his office a record of all fires occurring in this state

28  upon which she or he had caused an investigation to be made

29  and all facts concerning the same. These records, obtained or

30  prepared by the State Fire Marshal pursuant to her or his

31  investigation, include documents, papers, letters, maps,

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 1  diagrams, tapes, photographs, films, sound recordings, and

 2  evidence.  These records are confidential and exempt from the

 3  provisions of s. 119.07(1) until the investigation is

 4  completed or ceases to be active. For purposes of this

 5  section, an investigation is considered "active" while such

 6  investigation is being conducted by the department with a

 7  reasonable, good faith belief that it may lead to the filing

 8  of administrative, civil, or criminal proceedings. An

 9  investigation does not cease to be active if the department is

10  proceeding with reasonable dispatch, and there is a good faith

11  belief that action may be initiated by the department or other

12  administrative or law enforcement agency. Further, these

13  documents, papers, letters, maps, diagrams, tapes,

14  photographs, films, sound recordings, and evidence relative to

15  the subject of an investigation shall not be subject to

16  subpoena until the investigation is completed or ceases to be

17  active, unless the State Fire Marshal consents. These records

18  shall be made daily from the reports furnished the State Fire

19  Marshal by her or his agents or others.  Whenever the State

20  Fire Marshal releases an investigative report, any person

21  requesting a copy of the report shall pay in advance, and the

22  State Fire Marshal shall collect in advance, notwithstanding

23  the provisions of s. 624.501(20)(a) and (b), a fee of $10 for

24  the copy of the report, which fee shall be deposited into the

25  Insurance Commissioner's Regulatory Trust Fund. The State Fire

26  Marshal may release the report without charge to any state

27  attorney or to any law enforcement agency or fire department

28  assisting in the investigation.

29         Section 746.  Subsection (1) of section 633.161,

30  Florida Statutes, is amended to read:

31  

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 1         633.161  Cease and desist orders; orders to correct

 2  hazardous conditions; orders to vacate; violation;

 3  penalties.--

 4         (1)  If it is determined by the Department of Financial

 5  Services Insurance that a violation specified in this

 6  subsection exists, the State Fire Marshal or her or his deputy

 7  may issue and deliver to the person committing the violation

 8  an order to cease and desist from such violation, to correct

 9  any hazardous condition, to preclude occupancy of the affected

10  building or structure, or to vacate the premises of the

11  affected building or structure.  Such violations are:

12         (a)  Except as set forth in paragraph (b), a violation

13  of any provision of this chapter, of any rule adopted pursuant

14  thereto, of any applicable uniform firesafety standard adopted

15  pursuant to s. 633.022 which is not adequately addressed by

16  any alternative requirements adopted on a local level, or of

17  any minimum firesafety standard adopted pursuant to s.

18  394.879.

19         (b)  A substantial violation of an applicable minimum

20  firesafety standard adopted pursuant to s. 633.025 which is

21  not reasonably addressed by any alternative requirement

22  imposed at the local level, or an unreasonable interpretation

23  of an applicable minimum firesafety standard, and which

24  violation or interpretation clearly constitutes a danger to

25  lifesafety.

26         (c)  A building or structure which is in a dilapidated

27  condition and as a result thereof creates a danger to life,

28  safety, or property.

29         (d)  A building or structure which contains explosive

30  matter or flammable liquids or gases constituting a danger to

31  life, safety, or property.

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 1         Section 747.  Subsection (5) of section 633.162,

 2  Florida Statutes, is amended to read:

 3         633.162  Disciplinary action; fire extinguisher or

 4  preengineered systems; grounds for denial, nonrenewal,

 5  suspension, or revocation of license or permit.--

 6         (5)  In addition, the Department of Financial Services

 7  Insurance shall not issue a new license or permit if it finds

 8  that the circumstance or circumstances for which the license

 9  or permit was previously revoked or suspended still exist or

10  are likely to recur.

11         Section 748.  Subsections (3) and (5) of section

12  633.30, are amended to read:

13         633.30  Standards for firefighting; definitions.--As

14  used in this chapter:

15         (3)  "Department" means the Department of Financial

16  Services Insurance.

17         (5)  "Division" means the Division of State Fire

18  Marshal of the department of Insurance.

19         Section 749.  Section 633.353, Florida Statutes, is

20  amended to read:

21         633.353  Falsification of qualifications.--Any person

22  who willfully and knowingly falsifies the qualifications of a

23  new employee to the Bureau of Fire Standards and Training of

24  the division of State Fire Marshal of the Department of

25  Insurance is guilty of a misdemeanor of the second degree,

26  punishable as provided in s. 775.082 or s. 775.083.

27         Section 750.  Paragraph (a) of subsection (1) of

28  section 633.382, Florida Statutes, is amended to read:

29         633.382  Firefighters; supplemental compensation.--

30         (1)  DEFINITIONS.--As used in this section, the term:

31  

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 1         (a)  "Division" means the Division of State Fire

 2  Marshal of the Department of Financial Services Insurance

 3  created and existing under the provisions of this chapter.

 4         Section 751.  Section 633.43, Florida Statutes, is

 5  amended to read:

 6         633.43  Florida State Fire College established.--There

 7  is hereby established a state institution to be known as the

 8  Florida State Fire College, to be located at or near Ocala,

 9  Marion County.  The institution shall be operated by the

10  division of State Fire Marshal of the Department of Insurance.

11         Section 752.  Subsections (1), (2), (3), (7), (8), (9),

12  and (10) of section 633.445, Florida Statutes, are amended to

13  read:

14         633.445  State Fire Marshal Scholarship Grant

15  Program.--

16         (1)  All payments, gifts, or grants received pursuant

17  to this section shall be deposited in the State Treasury to

18  the credit of the Insurance Commissioner's Regulatory Trust

19  Fund for the State Fire Marshal Scholarship Grant Program.

20  Such funds shall provide, from grants to the state from moneys

21  raised from public and private sources, scholarships for

22  qualified applicants to the Florida State Fire College as

23  created by s. 633.43.

24         (2)  The Chief Financial Officer Comptroller shall

25  authorize expenditures from the Insurance Commissioner's

26  Regulatory Trust Fund upon receipt of vouchers approved by the

27  State Fire Marshal.  All moneys collected from public and

28  private sources pursuant to this section shall be deposited

29  into the trust fund.  Any balance in the trust fund at the end

30  of any fiscal year shall remain therein and shall be available

31  for carrying out the purposes of the fund in the ensuing year.

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 1         (3)  All funds deposited into the Insurance

 2  Commissioner's Regulatory Trust Fund shall be invested

 3  pursuant to s. 18.125.  Interest income accruing to moneys so

 4  invested shall increase the total funds available for the

 5  purposes for which the trust fund is created.

 6         (7)  The criteria and procedures for establishing

 7  standards of eligibility shall be recommended by the council

 8  to the department of Insurance.  The council shall recommend

 9  to the department of Insurance a rating system upon which to

10  base the approval of scholarship grants.  However, to be

11  eligible to receive a scholarship pursuant to this section, an

12  applicant must:

13         (a)  Be a full-time employee or volunteer of a local

14  municipal, county, regional or district firefighter unit;

15         (b)  Have graduated from high school, have earned an

16  equivalency diploma issued by the Department of Education

17  pursuant to s. 229.814, or have earned an equivalency diploma

18  issued by the United States Armed Forces Institute;

19         (c)  Be accepted for full-time enrollment, with the

20  intent to maintain such enrollment at the Florida State Fire

21  College;

22         (d)  Have the firefighter unit by whom the applicant is

23  employed or for which the applicant is a volunteer, recommend

24  her or him and certify that, because of financial need, the

25  scholarship is necessary for her or him to attend the State

26  Fire College; and

27         (e)  Agree that she or he intends to return to duty

28  with the firefighter unit by whom she or he was recommended,

29  or, by agreement with such unit, that she or he will remain in

30  some capacity relating to the firefighting profession for a

31  period of at least 1 year.

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 1         (8)  The department of Insurance may adopt rules to

 2  implement this section, including rules detailing the

 3  eligibility standards and an approval rating system which are

 4  based on financial need, need for additional certified

 5  firefighters from the applicant's community, and the

 6  applicant's employment record.

 7         (9)  After selection and approval of an applicant for a

 8  grant by the council, payment in the applicant's name for

 9  scholarship funds shall be transmitted from the Insurance

10  Commissioner's Regulatory Trust Fund by the Chief Financial

11  Officer Comptroller upon receipt of vouchers authorized by the

12  State Fire Marshal.  If a recipient terminates her or his

13  enrollment during the course of her or his curriculum at the

14  State Fire College, unless excused by the council and allowed

15  to resume training at a later time, any unused portion of the

16  scholarship funds shall be refunded to the trust fund.  A

17  recipient who terminates her or his enrollment is not liable

18  for any portion of a scholarship.

19         (10)  The council may accept payments, gifts, and

20  grants of money from any federal agency, private agency,

21  county, city, town, corporation, partnership, or individual

22  for deposit in the Insurance Commissioner's Regulatory Trust

23  Fund to implement this section and for authorized expenses

24  incurred by the council in performing its duties.

25         Section 753.  Subsection (1) of section 633.45, Florida

26  Statutes, is amended to read:

27         633.45  Division of State Fire Marshal; powers,

28  duties.--

29         (1)  The division of State Fire Marshal of the

30  Department of Insurance shall:

31  

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 1         (a)  Establish uniform minimum standards for the

 2  employment and training of firefighters.

 3         (b)  Establish minimum curriculum requirements for

 4  schools operated by or for any employing agency for the

 5  specific purpose of training firefighter recruits or

 6  firefighters.

 7         (c)  Approve institutions, instructors, and facilities

 8  for school operation by or for any employing agency for the

 9  specific purpose of training firefighters and firefighter

10  recruits.

11         (d)  Specify, by rule, standards for the approval,

12  denial of approval, probation, and revocation of approval of

13  institutions, instructors, and facilities for training

14  firefighters and firefighter recruits; including a rule that

15  an instructor must complete 40 hours of continuing education

16  every 3 years in order to maintain the approval of the

17  department.

18         (e)  Issue certificates of competency to persons who,

19  by reason of experience and completion of basic inservice

20  training, advanced education, or specialized training, are

21  especially qualified for particular aspects or classes of

22  firefighter duties.

23         (f)  Establish minimum training qualifications for

24  persons serving as firesafety coordinators for their

25  respective departments of state government and certify all

26  persons who satisfy such qualifications.

27         (g)  Establish a uniform lesson plan to be followed by

28  firesafety instructors in the training of state employees in

29  firesafety and emergency evacuation procedures.

30         (h)  Have complete jurisdiction over, and complete

31  management and control of, the Florida State Fire College and

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 1  be invested with full power and authority to make all rules

 2  and regulations necessary for the governance of said

 3  institution.

 4         (i)  Appoint a superintendent of the Florida State Fire

 5  College and such other instructors, experimental helpers, and

 6  laborers as may be necessary and remove the same as in its

 7  judgment and discretion may be best, fix their compensation,

 8  and provide for their payment.

 9         (j)  Have full management, possession, and control of

10  the lands, buildings, structures, and property belonging to

11  the Florida State Fire College.

12         (k)  Provide for the courses of study and curriculum of

13  the Florida State Fire College.

14         (l)  Make rules and regulations for the admission of

15  trainees to the Florida State Fire College.

16         (m)  Visit and inspect the Florida State Fire College

17  and every department thereof and provide for the proper

18  keeping of accounts and records thereof.

19         (n)  Make and prepare all necessary budgets of

20  expenditures for the enlargement, proper furnishing,

21  maintenance, support, and conduct of the Florida State Fire

22  College.

23         (o)  Select and purchase all property, furniture,

24  fixtures, and paraphernalia necessary for the Florida State

25  Fire College.

26         (p)  Build, construct, change, enlarge, repair, and

27  maintain any and all buildings or structures of the Florida

28  State Fire College that may at any time be necessary for said

29  institution and purchase and acquire all lands and property

30  necessary for same, of every nature and description

31  whatsoever.

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 1         (q)  Care for and maintain the Florida State Fire

 2  College and do and perform every other matter or thing

 3  requisite to the proper management, maintenance, support, and

 4  control of said institution, necessary or requisite to carry

 5  out fully the purpose of this act and for raising it to, and

 6  maintaining it at, the proper efficiency and standard as

 7  required in and by the provisions of ss. 633.43-633.49.

 8         Section 754.  Section 633.46, Florida Statutes, is

 9  amended to read:

10         633.46  Fees.--The division may fix and collect

11  admission fees and other fees which it deems necessary to be

12  charged for training given. All fees so collected shall be

13  deposited in the Insurance Commissioner's Regulatory Trust

14  Fund.

15         Section 755.  Section 633.461, Florida Statutes, is

16  amended to read:

17         633.461  Insurance Commissioner's Regulatory Trust

18  Fund.--The funds received from the Insurance Commissioner's

19  Regulatory Trust Fund shall be used by the staff of the

20  Florida State Fire College to provide all necessary services,

21  training, equipment, and supplies to carry out the college's

22  responsibilities, including, but not limited to, the State

23  Fire Marshal Scholarship Grant Program and the procurement of

24  training films, videotapes, audiovisual equipment, and other

25  useful information on fire, firefighting, and fire prevention,

26  including public fire service information packages.

27         Section 756.  Section 633.47, Florida Statutes, is

28  amended to read:

29         633.47  Procedure for making expenditures.--No moneys

30  shall be spent for and on behalf of the Florida State Fire

31  College except upon a written voucher drawn by the division,

                                 736

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 1  stating the nature of the expenditures and the person to whom

 2  the same shall be made payable, which voucher shall be

 3  submitted to the Chief Financial Officer Comptroller and

 4  audited for approval by her or him; upon such approval, the

 5  Chief Financial Officer Comptroller shall draw a warrant upon

 6  the Treasurer for the payment thereof, filing the original

 7  voucher in her or his office.

 8         Section 757.  Section 633.50, Florida Statutes, is

 9  amended to read:

10         633.50  Division powers and duties; Florida State Fire

11  College.--

12         (1)  The division of State Fire Marshal of the

13  Department of Insurance, in performing its duties related to

14  the Florida State Fire College, specified in ss.

15  633.43-633.49, shall:

16         (a)  Enter into agreements with public or private

17  school districts, community colleges, junior colleges, or

18  universities to carry out its duties and responsibilities.

19         (b)  Review and approve budget requests for the fire

20  college educational program.

21         (c)  Prepare the legislative budget request for the

22  Florida State Fire College education program.  The

23  superintendent is responsible for all expenditures pursuant to

24  appropriations.

25         (d)  Implement procedures to obtain appropriate

26  entitlement funds from federal and state grants to supplement

27  the annual legislative appropriation. Such funds must be used

28  expressly for the fire college educational programs.

29         (e)  Develop a staffing and funding formula for the

30  Florida State Fire College.  The formula shall include

31  differential funding levels for various types of programs,

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 1  shall be based on the number of full-time equivalent students

 2  and information obtained from scheduled attendance counts

 3  taken the first day of each program, and shall provide the

 4  basis for the legislative budget request.  As used in this

 5  section, a full-time equivalent student is equal to a minimum

 6  of 900 hours in a vocational program and 400 hours in a

 7  degree-seeking program.  The funding formula shall be as

 8  prescribed pursuant to s. 236.081, shall include procedures to

 9  document daily attendance, and shall require that attendance

10  records be retained for audit purposes.

11         (2)  Funds generated by the formula per full-time

12  equivalent student may not exceed the level of state funding

13  per full-time equivalent student generated through the Florida

14  Education Finance Program or the State Community College

15  Program Fund for students enrolled in comparable education

16  programs provided by public school districts and community

17  colleges.  Funds appropriated for education and operational

18  costs shall be deposited in the Insurance Commissioner's

19  Regulatory Trust Fund to be used solely for purposes specified

20  in s. 633.461 and may not be transferred to any other budget

21  entity for purposes other than education.

22         Section 758.  Subsection (2) of section 633.524,

23  Florida Statutes, is amended to read:

24         633.524  Certificate fees; use and deposit of collected

25  funds.--

26         (2)  All moneys collected by the State Fire Marshal

27  pursuant to this chapter are hereby appropriated for the use

28  of the State Fire Marshal in the administration of this

29  chapter and shall be deposited in the Insurance Commissioner's

30  Regulatory Trust Fund.

31  

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 1         Section 759.  Sections 633.801, 633.802, 633.803,

 2  633.804, 633.805, 633.806, 633.807, 633.808, 633.809, 633.810,

 3  633.811, 633.812, 633.813, 633.814, 633.815, 633.816, 633.817,

 4  633.818, 633.819, 633.820, and 633.821, Florida Statutes, are

 5  created to read:

 6         633.801  Short title.--Sections 633.801-633.821 may be

 7  cited as the "Florida Firefighters Occupational Safety and

 8  Health Act."

 9         633.802  Definitions.--Unless the context clearly

10  requires otherwise, the following definitions shall apply to

11  ss. 633.801-633.821:

12         (1)  "Department" means the Department of Financial

13  Services.

14         (2)  "Division" means the Division of State Fire

15  Marshal of the department.

16         (3)  "Firefighter employee" means any person engaged in

17  any employment, public or private, as a firefighter under any

18  appointment or contract of hire or apprenticeship, express or

19  implied, oral or written, whether lawfully or unlawfully

20  employed, responding to or assisting with fire or medical

21  emergencies, whether or not the firefighter is on duty, except

22  those appointed under s. 590.02(1)(d).

23         (4)  "Firefighter employer" means the state and all

24  political subdivisions of this state, all public and

25  quasi-public corporations in this state, and every person

26  carrying on any employment for this state, political

27  subdivisions of this state, and public and quasi-public

28  corporations in this state, which employs firefighters, except

29  those appointed under s. 590.02(1)(d).

30  

31  

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 1         (5)  "Firefighter employment" or "employment" means any

 2  service performed by a firefighter employee for the

 3  firefighter employer.

 4         (6)  "Firefighter place of employment" or "place of

 5  employment" means the physical location at which the

 6  firefighter is employed.

 7         633.803  Legislative intent.--It is the intent of the

 8  Legislature to enhance firefighter occupational safety and

 9  health in the state through the implementation and maintenance

10  of policies, procedures, practices, rules, and standards that

11  reduce the incidence of firefighter employee accidents,

12  firefighter occupational diseases, and firefighter fatalities

13  compensable under chapter 440 or otherwise.  The Legislature

14  further intends that the division develop a means by which the

15  division can identify individual firefighter employers with a

16  high frequency or severity of work-related injuries, conduct

17  safety inspections of those firefighter employers, and assist

18  those firefighter employers in the development and

19  implementation of firefighter employee safety and health

20  programs.  In addition, it is the intent of the Legislature

21  that the division administer the provisions of ss.

22  633.801-633.821; provide assistance to firefighter employers,

23  firefighter employees, and insurers; and enforce the policies,

24  rules, and standards set forth in ss. 633.801-633.821.

25         633.804  Safety inspections and consultations;

26  rules.--The division shall adopt rules governing the manner,

27  means, and frequency of firefighter employer and firefighter

28  employee safety inspections and consultations by all insurers

29  and self-insurers.

30         633.805  Division to make study of firefighter

31  occupational diseases.--The division shall make a continuous

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 1  study of firefighter occupational diseases and the ways and

 2  means for their control and prevention and shall adopt rules

 3  necessary for such control and prevention.  For this purpose,

 4  the division is authorized to cooperate with firefighter

 5  employers, firefighter employees, and insurers and with the

 6  Department of Health.

 7         633.806  Investigations by the division; refusal to

 8  admit; penalty.--

 9         (1)  The division shall make studies and investigations

10  with respect to safety provisions and the causes of

11  firefighter injuries in firefighter places of employment and

12  shall make such recommendations to the Legislature and

13  firefighter employers and insurers as the division considers

14  proper as to the best means of preventing firefighter

15  injuries.  In making such studies and investigations, the

16  division may cooperate with any agency of the United States

17  charged with the duty of enforcing any law securing safety

18  against injury in any place of firefighter employment covered

19  by ss. 633.801-633.821 or any agency or department of the

20  state engaged in enforcing any law to ensure safety for

21  firefighter employees.

22         (2)  The division by rule may adopt procedures for

23  conducting investigations of firefighter employers under ss.

24  633.801-633.821.

25         633.807  Safety; firefighter employer

26  responsibilities.--Every firefighter employer shall furnish

27  and use safety devices and safeguards, adopt and use methods

28  and processes reasonably adequate to render such an employment

29  and place of employment safe, and do every other thing

30  reasonably necessary to protect the lives, health, and safety

31  of such firefighter employees.  As used in this section, the

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 1  terms "safe" and "safety" as applied to any employment or

 2  place of firefighter employment mean such freedom from danger

 3  as is reasonably necessary for the protection of the lives,

 4  health, and safety of firefighter employees, including

 5  conditions and methods of sanitation and hygiene.  Safety

 6  devices and safeguards required to be furnished by the

 7  firefighter employer by this section or by the division under

 8  authority of this section shall not include personal apparel

 9  and protective devices that replace personal apparel normally

10  worn by firefighter employees during regular working hours.

11         633.808  Division authority.--The division shall:

12         (1)  Investigate and prescribe by rule what safety

13  devices, safeguards, or other means of protection must be

14  adopted for the prevention of accidents in every firefighter

15  place of employment or at any fire scene; determine what

16  suitable devices, safeguards, or other means of protection for

17  the prevention of occupational diseases must be adopted or

18  followed in any or all such firefighter places of employment

19  or at any fire scene; and adopt reasonable rules for the

20  prevention of accidents, the safety, protection, and security

21  of firefighters engaged in interior firefighting, and the

22  prevention of occupational diseases.

23         (2)  Ascertain, fix, and order such reasonable

24  standards and rules for the construction, repair, and

25  maintenance of firefighter places of employment as shall

26  render them safe.  Such rules and standards shall be adopted

27  in accordance with chapter 120.

28         (3)  Assist firefighter employers in the development

29  and implementation of firefighter employee safety training

30  programs by contracting with professional safety

31  organizations.

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 1         (4)  Adopt rules prescribing recordkeeping

 2  responsibilities for firefighter employers, which may include

 3  maintaining a log and summary of occupational injuries,

 4  diseases, and illnesses, rules for producing on request a

 5  notice of injury and firefighter employee accident

 6  investigation records, and rules prescribing a retention

 7  schedule for such records.

 8         633.809  Firefighter employers whose firefighter

 9  employees have a high frequency of work-related injuries.--The

10  division shall develop a means by which the division may

11  identify individual firefighter employers whose firefighter

12  employees have a high frequency or severity of work-related

13  injuries.  The division shall carry out safety inspections of

14  the facilities and operations of those firefighter employers

15  in order to assist them in reducing the frequency and severity

16  of work-related injuries.  The division shall develop safety

17  and health programs for those firefighter employers.  Insurers

18  shall distribute such safety and health programs to the

19  firefighter employers so identified by the division.  Those

20  firefighter employers identified by the division as having a

21  high frequency or severity of work-related injuries shall

22  implement a safety and health program developed by the

23  division.  The division shall carry out safety inspections of

24  those firefighter employers so identified to ensure compliance

25  with the safety and health program and to assist such

26  firefighter employers in reducing the number of work-related

27  injuries.  The division may not assess penalties as the result

28  of such inspections, except as provided by s. 633.813.  Copies

29  of any report made as the result of such an inspection shall

30  be provided to the firefighter employer and its insurer.

31  Firefighter employers may submit their own safety and health

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 1  programs to the division for approval in lieu of using the

 2  safety and health program developed by the division.  The

 3  division shall promptly review the program submitted and

 4  approve or disapprove the program within 60 days, or such

 5  program shall be deemed approved.  Upon approval by the

 6  division, the program shall be implemented by the firefighter

 7  employer.  If the program is not approved or if a program is

 8  not submitted, the firefighter employer shall implement the

 9  program developed by the division.  The division shall adopt

10  rules setting forth the criteria for safety and health

11  programs, as such rules relate to this section.

12         633.810  Workplace safety committees and safety

13  coordinators.--

14         (1)  In order to promote health and safety in places of

15  firefighter employment in this state:

16         (a)  Each firefighter employer of 20 or more

17  firefighter employees shall establish and administer a

18  workplace safety committee in accordance with rules adopted

19  under this section.

20         (b)  Each firefighter employer of fewer than 20

21  firefighter employees identified by the division as having

22  high frequency or severity of work-related injuries shall

23  establish and administer a workplace safety committee or

24  designate a workplace safety coordinator who shall establish

25  and administer workplace safety activities in accordance with

26  rules adopted under this section.

27         (2)  The division shall adopt rules:

28         (a)  Prescribing the membership of the workplace safety

29  committees so as to ensure an equal number of firefighter

30  employee representatives, who are volunteers or are elected by

31  

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 1  their peers, and of firefighter employer representatives, and

 2  specifying the frequency of meetings.

 3         (b)  Requiring firefighter employers to make adequate

 4  records of each meeting and to file and to maintain the

 5  records subject to inspection by the division.

 6         (c)  Prescribing the duties and functions of the

 7  workplace safety committee and workplace safety coordinator,

 8  which include, but are not limited to:

 9         1.  Establishing procedures for workplace safety

10  inspections by the committee.

11         2.  Establishing procedures for investigating all

12  workplace accidents, safety-related incidents, illnesses, and

13  deaths.

14         3.  Evaluating accident prevention and illness

15  prevention programs.

16         4.  Prescribing guidelines for the training of safety

17  committee members.

18         (3)  The composition, selection, and function of

19  workplace safety committees shall be a mandatory topic of

20  negotiations with any certified collective bargaining agent

21  for firefighter employers that operate under a collective

22  bargaining agreement.  Firefighter employers that operate

23  under a collective bargaining agreement that contains

24  provisions regulating the formation and operation of workplace

25  safety committees that meet or exceed the minimum requirements

26  contained in this section, or firefighter employers who

27  otherwise have existing workplace safety committees that meet

28  or exceed the minimum requirements established by this

29  section, are in compliance with this section.

30         (4)  Firefighter employees shall be compensated their

31  regular hourly wage while engaged in workplace safety

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 1  committee or workplace safety coordinator training, meetings,

 2  or other duties prescribed under this section.

 3         633.811  Firefighter employer penalties.--If any

 4  firefighter employer violates or fails or refuses to comply

 5  with ss. 633.801-633.821, or with any rule adopted by the

 6  division under such sections in accordance with chapter 120

 7  for the prevention of injuries, accidents, or occupational

 8  diseases or with any lawful order of the division in

 9  connection with ss. 633.801-633.821, or fails or refuses to

10  furnish or adopt any safety device, safeguard, or other means

11  of protection prescribed by division rule under ss.

12  633.801-633.821 for the prevention of accidents or

13  occupational diseases, the division may assess against the

14  firefighter employer a civil penalty of not less than $100 nor

15  more than $5,000 for each day the violation, omission,

16  failure, or refusal continues after the firefighter employer

17  has been given written notice of such violation, omission,

18  failure, or refusal.  The total penalty for each violation may

19  not exceed $50,000.  The division shall adopt rules requiring

20  penalties commensurate with the frequency or severity of

21  safety violations.  A hearing shall be held in the county in

22  which the violation, omission, failure, or refusal is alleged

23  to have occurred, unless otherwise agreed to by the

24  firefighter employer and authorized by the division.  All

25  penalties assessed and collected under this section shall be

26  deposited in the Insurance Regulatory Trust Fund.

27         633.812  Division cooperation with Federal Government;

28  exemption from requirements for private firefighter

29  employers.--

30         (1)  The division shall cooperate with the Federal

31  Government so that duplicate inspections will be avoided while

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 1  at the same time ensuring safe places of firefighter

 2  employment for the citizens of this state.

 3         (2)  Except as provided in this section, a private

 4  firefighter employer is not subject to the requirements of the

 5  division if:

 6         (a)  The private firefighter employer is subject to the

 7  federal regulations in 29 C.F.R. ss. 1910 and 1926;

 8         (b)  The private firefighter employer has adopted and

 9  implemented a written safety program that conforms to the

10  requirements of 29 C.F.R. ss. 1910 and 1926;

11         (c)  A private firefighter employer with 20 or more

12  full-time firefighter employees shall include provisions for a

13  safety committee in the safety program.  The safety committee

14  shall include firefighter employee representation and shall

15  meet at least once each calendar quarter.  The private

16  firefighter employer shall make adequate records of each

17  meeting and maintain the records subject to inspections under

18  subsection (3).  The safety committee shall, if appropriate,

19  make recommendations regarding improvements to the safety

20  program and corrections of hazards affecting workplace safety;

21  and

22         (d)  The private firefighter employer provides the

23  division with a written statement that certifies compliance

24  with this subsection.

25         (3)  The division may enter at any reasonable time any

26  place of private firefighter employment for the purpose of

27  verifying the accuracy of the written certification.  If the

28  division determines that the private firefighter employer has

29  not complied with the requirements of subsection (2), the

30  private firefighter employer shall be subject to the rules of

31  

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 1  the division until the private firefighter employer complies

 2  with subsection (2) and recertifies that fact to the division.

 3         (4)  This section shall not restrict the division's

 4  performance of any duties pursuant to a written contract

 5  between the division and the federal Occupational Safety and

 6  Health Administration.

 7         633.813  Failure to implement a safety and health

 8  program; cancellations.--If a firefighter employer that is

 9  found by the division to have a high frequency or severity of

10  work-related injuries fails to implement a safety and health

11  program, the insurer or self-insurer's fund that is providing

12  coverage for the firefighter employer may cancel the contract

13  for insurance with the firefighter employer.  In the

14  alternative, the insurer or fund may terminate any discount or

15  deviation granted to the firefighter employer for the

16  remainder of the term of the policy.  If the contract is

17  canceled or the discount or deviation is terminated, the

18  insurer shall make such reports as are required by law.

19         633.814  Expenses of administration.--The amounts that

20  are needed to administer ss. 633.801-633.821 shall be

21  disbursed from the Insurance Regulatory Trust Fund.

22         633.815  Refusal to admit; penalty.--The division and

23  authorized representatives of the division may enter and

24  inspect any place of firefighter employment at any reasonable

25  time for the purpose of investigating compliance with ss.

26  633.801-633.821 and conducting inspections for the proper

27  enforcement of ss. 633.801-633.821.  A firefighter employer

28  who refuses to admit any member of the division or authorized

29  representative of the division to any place of employment or

30  to allow investigation and inspection pursuant to this section

31  

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 1  commits a misdemeanor of the second degree, punishable as

 2  provided in s. 775.082 or s. 775.083.

 3         633.816  Firefighter employee rights and

 4  responsibilities.--

 5         (1)  Each firefighter employee of a firefighter

 6  employer covered under ss. 633.801-633.821 shall comply with

 7  rules adopted by the division and with reasonable workplace

 8  safety and health standards, rules, policies, procedures, and

 9  work practices established by the firefighter employer and the

10  workplace safety committee.  A firefighter employee who

11  knowingly fails to comply with this subsection may be

12  disciplined or discharged by the firefighter employer.

13         (2)  A firefighter employer may not discharge, threaten

14  to discharge, cause to be discharged, intimidate, coerce,

15  otherwise discipline, or in any manner discriminate against a

16  firefighter employee for any of the following reasons:

17         (a)  The firefighter employee has testified or is about

18  to testify, on her or his own behalf, or on behalf of others,

19  in any proceeding instituted under ss. 633.801-633.821;

20         (b)  The firefighter employee has exercised any other

21  right afforded under ss. 633.801-633.821; or

22         (c)  The firefighter employee is engaged in activities

23  relating to the workplace safety committee.

24         (3)  No pay, position, seniority, or other benefit may

25  be lost for exercising any right under, or for seeking

26  compliance with, any requirement of ss. 633.801-633.821.

27         633.817  Compliance.--Failure of a firefighter employer

28  or an insurer to comply with ss. 633.801-633.821, or with any

29  rules adopted under ss. 633.801-633.821, constitutes grounds

30  for the division to seek remedies, including injunctive

31  

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 1  relief, for compliance by making appropriate filings with the

 2  circuit court.

 3         633.818  False statements to insurers.--A firefighter

 4  employer who knowingly and willfully falsifies or conceals a

 5  material fact; makes a false, fictitious, or fraudulent

 6  statement or representation; or makes or uses any false

 7  document knowing the document to contain any false,

 8  fictitious, or fraudulent entry or statement to an insurer of

 9  workers' compensation insurance under ss. 633.801-633.821

10  commits a misdemeanor of the second degree, punishable as

11  provided in s. 775.082 or s. 775.083.

12         633.819  Matters within jurisdiction of the division;

13  false, fictitious, or fraudulent acts, statements, and

14  representations prohibited; penalty; statute of

15  limitations.--A person may not, in any matter within the

16  jurisdiction of the division, knowingly and willfully falsify

17  or conceal a material fact; make any false, fictitious, or

18  fraudulent statement or representation; or make or use any

19  false document, knowing the same to contain any false,

20  fictitious, or fraudulent statement or entry.  A person who

21  violates this section commits a misdemeanor of the second

22  degree, punishable as provided in s. 775.082 or s. 775.083.

23  The statute of limitations for prosecution of an act committed

24  in violation of this section is 5 years after the date the act

25  was committed or, if not discovered within 30 days after the

26  act was committed, 5 years after the date the act was

27  discovered.

28         633.820  Volunteer firefighters.--Sections

29  633.803-633.821 apply to volunteer firefighters and volunteer

30  fire departments.

31         633.821  Workplace safety.--

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 1         (1)  The division shall assist in making the workplace

 2  of a firefighter place of employment a safer place to work and

 3  decreasing the frequency and severity of on-the-job injuries

 4  in such workplace.

 5         (2)  The division shall have the authority to adopt

 6  rules for the purpose of ensuring safe working conditions for

 7  all firefighter employees by authorizing the enforcement of

 8  effective standards, by assisting and encouraging firefighter

 9  employers to maintain safe working conditions, and by

10  providing for education and training in the field of safety.

11  Specifically, the division may by rule adopt all or any part

12  of subparts C through T and subpart Z of 29 C.F.R. s. 1910, as

13  revised April 8, 1998; the National Fire Protection

14  Association, Inc., Standard 1500, paragraph 5-7 (Personal

15  Alert Safety System) (1992 edition); and ANSI A 10.4-1990.

16         (3)  With respect to 29 C.F.R. s. 1910.134(g)(4), the

17  two individuals located outside the immediately dangerous to

18  life and health atmosphere may be assigned to an additional

19  role, such as incident commander, pumper operator, engineer,

20  or driver, so long as such individual is able to immediately

21  perform assistance or rescue activities without jeopardizing

22  the safety or health of any firefighter working at an

23  incident.  Also with respect to 29 C.F.R. s. 1910.134(g)(4):

24         (a)  Each county, municipality, and special district

25  shall implement such provision by April 1, 2003, except as

26  provided in paragraphs (b) and (c).

27         (b)  If any county, municipality, or special district

28  is unable to implement such provision by April 1, 2003,

29  without adding additional personnel to its firefighting staff

30  or expending significant additional funds, such county,

31  municipality, or special district shall have an additional 6

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 1  months within which to implement such provision. Such county,

 2  municipality, or special district shall notify the division

 3  that the 6-month extension to implement such provision is in

 4  effect in such county, municipality, or special district

 5  within 30 days after its decision to extend the time for the

 6  additional 6 months. The decision to extend the time for

 7  implementation shall be made prior to April 1, 2003.

 8         (c)  If, after the extension granted in paragraph (b),

 9  the county, municipality, or special district, after having

10  worked with and cooperated fully with the division and the

11  Firefighters Employment, Standards, and Training Council, is

12  still unable to implement such provisions without adding

13  additional personnel to its firefighting staff or expending

14  significant additional funds, such municipality, county, or

15  special district shall be exempt from the requirements of 29

16  C.F.R. s. 1910.134(g)(4).  Nevertheless, each year thereafter

17  the division shall review each such county, municipality, or

18  special district to determine if such county, municipality, or

19  special district has the ability to implement such provision

20  without adding additional personnel to its firefighting staff

21  or expending significant additional funds.  If the division

22  determines that any county, municipality, or special district

23  has the ability to implement such provision without adding

24  additional personnel to its firefighting staff or expending

25  significant additional funds, the division shall require such

26  county, municipality, or special district to implement such

27  provision.  Such requirement by the division under this

28  paragraph constitutes final agency action subject to chapter

29  120.

30         (4)  The provisions of chapter 440 which pertain to

31  workplace safety apply to the division.

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 1         (5)  The division may adopt any rule necessary to

 2  implement, interpret, and make specific the provisions of this

 3  section, provided the division may not adopt by rule any other

 4  standard or standards of the Occupational Safety and Health

 5  Administration or the National Fire Protection Association

 6  relating solely to ss. 633.801-633.821 and firefighter

 7  employment safety without specific legislative authority.

 8         Section 760.  Section 633.31, Florida Statutes, is

 9  amended to read:

10         633.31  Firefighters Employment, Standards, and

11  Training Council.--

12         (1)  There is created within the department of

13  Insurance a Firefighters Employment, Standards, and Training

14  Council of 13 nine members appointed by the State Fire

15  Marshal. Two members shall be fire chiefs, who shall be

16  appointed by the Florida Fire Chiefs Association;, two members

17  shall be firefighters who are not officers, who shall be

18  appointed by the Florida Professional Firefighters

19  Association;, two members shall be firefighter officers who

20  are not fire chiefs, who shall be appointed by the State Fire

21  Marshal; one member shall be a director or instructor of a

22  state-certified firefighting training facility, who shall be

23  appointed by the State Fire Marshal; one member shall be

24  appointed by the Florida League of Cities, one member shall be

25  appointed by the Florida Association of Counties, one member

26  shall be appointed by the Florida Association of Special

27  Districts, one member shall be appointed by the Florida Fire

28  Marshal's Association, and one member shall be appointed by

29  the State Fire Marshal and one member shall be a director or

30  instructor of a state-certified firefighting training

31  facility. To be eligible for appointment as a fire chief

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 1  member, firefighter officer member, firefighter member, or a

 2  director or instructor of a state-certified firefighting

 3  facility, a person shall have had at least 4 years' experience

 4  in the firefighting profession. The remaining member, who

 5  shall be appointed by the State Fire Marshal, two members

 6  shall not be a member or representative members of the

 7  firefighting profession or of any local government. Members

 8  shall serve only as long as they continue to meet the criteria

 9  under which they were appointed, or unless a member has failed

10  to appear at three consecutive and properly noticed meetings

11  unless excused by the chair.

12         (2)  Initially, the State Fire Marshal shall appoint

13  three members for terms of 4 years, two members for terms of 3

14  years, two members for terms of 2 years, and two members for

15  terms of 1 year.  Thereafter, Members shall be appointed for

16  4-year terms and in no event shall a member serve more than

17  two consecutive terms.  Any vacancy shall be filled in the

18  manner of the original appointment for the remaining time of

19  the term.

20         (3)  The State Fire Marshal, in making her or his

21  appointments, shall take into consideration representation by

22  geography, population, and other relevant factors, in order

23  that the membership on the council will be apportioned to give

24  representation to the state at large rather than to a

25  particular area.

26         (4)  Membership on the council shall not disqualify a

27  member from holding any other public office or being employed

28  by a public entity, except that no member of the Legislature

29  shall serve on the council.

30         Section 761.  Subsections (4) and (5) of section

31  633.33, Florida Statutes, are amended to read:

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 1         633.33  Special powers; firefighter training.--The

 2  council shall have special powers in connection with the

 3  employment and training of firefighters to:

 4         (4)  Consult and cooperate with any employing agency,

 5  university, college, community college, the Florida State Fire

 6  College, or other educational institution concerning the

 7  employment and safety of firefighters, including, but not

 8  limited to, the safety of firefighters while at the scene of a

 9  fire or the scene of an incident related to the provision of

10  emergency services to which a firefighter responds and

11  development of firefighter training schools and programs of

12  courses of instruction, including, but not limited to,

13  education and training in the areas of firefighter employment,

14  fire science, fire technology, fire administration, and all

15  allied and supporting fields.

16         (5)  Make or support studies on any aspect of

17  firefighting employment, education, and training or

18  recruitment.

19         Section 762.  Paragraph (c) of subsection (3) of

20  section 383.3362, Florida Statutes, is amended to read:

21         383.3362  Sudden Infant Death Syndrome.--

22         (3)  TRAINING.--

23         (c)  The Department of Health, in consultation with the

24  Emergency Medical Services Advisory Council, the Firefighters

25  Employment, Standards, and Training Council, and the Criminal

26  Justice Standards and Training Commission, shall develop and

27  adopt, by rule, curriculum that, at a minimum, includes

28  training in the nature of SIDS, standard procedures to be

29  followed by law enforcement agencies in investigating cases

30  involving sudden deaths of infants, and training in responding

31  

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 1  appropriately to the parents or caretakers who have requested

 2  assistance.

 3         Section 763.  Subsection (4) of section 633.30, Florida

 4  Statutes, is amended to read:

 5         633.30  Standards for firefighting; definitions.--As

 6  used in this chapter:

 7         (4)  "Council" means the Firefighters Employment,

 8  Standards, and Training Council.

 9         Section 764.  Subsection (4) of section 633.32, Florida

10  Statutes, is amended to read:

11         633.32  Organization; meetings; quorum; compensation;

12  seal.--

13         (4)  The council may adopt a seal for its use

14  containing the words "Firefighters Employment, Standards, and

15  Training Council."

16         Section 765.  The Legislature determines and declares

17  that sections 759-765 of this act fulfill an important state

18  interest.

19         Section 766.  Subsection (4) of section 634.011,

20  Florida Statutes, is amended to read:

21         634.011  Definitions.--As used in this part, the term:

22         (4)  "Department" means the Department of Financial

23  Services Insurance.

24         Section 767.  Subsection (3) of section 634.137,

25  Florida Statutes, is amended to read:

26         634.137  Financial and statistical reporting

27  requirements.--

28         (3)  Any service agreement company that does not file

29  an annual statement in the form and within the time provided

30  by this section shall forfeit up to $100 for each day during

31  which the default continues, and, upon notice by the

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 1  department, the authority of the company to do business in

 2  this state shall cease while the default continues.  The

 3  department shall deposit all sums collected under this

 4  subsection in the Insurance Commissioner's Regulatory Trust

 5  Fund.

 6         Section 768.  Section 634.151, Florida Statutes, is

 7  amended to read:

 8         634.151  Service of process; appointment of

 9  commissioner as process agent.--

10         (1)  Each company applying for authority to transact

11  business in this state, whether domestic or foreign, shall

12  file with the department its appointment of the Chief

13  Financial Officer Insurance Commissioner and Treasurer and her

14  or his successors in office, on a form as furnished by the

15  department, as its attorney to receive service of all legal

16  process issued against it in any civil action or proceeding in

17  this state and agreeing that process so served shall be valid

18  and binding upon the company.  The appointment shall be

19  irrevocable, shall bind the company and any successor in

20  interest as to the assets or liabilities of the company, and

21  shall remain in effect as long as there is outstanding in this

22  state any obligation or liability of the company resulting

23  from its service agreement transactions therein.

24         (2)  At the time of such appointment of the Chief

25  Financial Officer Insurance Commissioner and Treasurer as its

26  process agent the company shall file with the department a

27  designation of the name and address of the person to whom

28  process against it served upon the Chief Financial Officer

29  Insurance Commissioner and Treasurer is to be forwarded.  The

30  company may change the designation at any time by a new

31  filing.

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 1         Section 769.  Section 634.161, Florida Statutes, is

 2  amended to read:

 3         634.161  Service of process; method.--

 4         (1)  Service of process upon the Chief Financial

 5  Officer Insurance Commissioner and Treasurer as process agent

 6  of the company shall be made by serving copies in triplicate

 7  of the process upon the Chief Financial Officer Insurance

 8  Commissioner and Treasurer or upon her or his assistant,

 9  deputy, or other person in charge of her or his office.  Upon

10  receiving such service, the Chief Financial Officer Insurance

11  Commissioner and Treasurer shall file one copy with the

12  department, return one copy with her or his admission of

13  service, and promptly forward one copy of the process by

14  registered or certified mail to the person last designated by

15  the company to receive the same, as provided under s. 634.151.

16         (2)  Process served upon the Chief Financial Officer

17  Insurance Commissioner and Treasurer and copy thereof

18  forwarded as in this section provided shall for all purposes

19  constitute valid and binding service thereof upon the company.

20         Section 770.  Section 634.221, Florida Statutes, is

21  amended to read:

22         634.221  Disposition of taxes and fees.--All license

23  taxes, taxes on premiums and assessments, registration fees,

24  and administrative fines and penalties collected under this

25  act from motor vehicle service agreement companies shall be

26  deposited to the credit of the Insurance Commissioner's

27  Regulatory Trust Fund.

28         Section 771.  Subsection (1) of section 634.301,

29  Florida Statutes, is amended to read:

30         634.301  Definitions.--As used in this part, the term:

31  

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 1         (1)  "Department" means the Department of Financial

 2  Services Insurance.

 3         Section 772.  Subsections (1) and (3) of section

 4  634.313, Florida Statutes, are amended to read:

 5         634.313  Tax on premiums; annual statement; reports.--

 6         (1)  In addition to paying the license taxes provided

 7  for in this part for home warranty associations and license

 8  taxes provided in the insurance code as to insurers, each such

 9  association and each such insurer must, annually on or before

10  March 1, file with the department its annual statement, in the

11  form prescribed by the department, showing all premiums

12  received by it in connection with the issuance of warranties

13  in this state during the preceding calendar year and using

14  accounting principles that will enable the department to

15  ascertain whether the reserve required by s. 634.3077 has been

16  maintained.  Each annual statement must contain a balance

17  sheet listing all assets and liabilities; a statement of

18  operations and retained earnings; and a schedule used to

19  report all claims statistics.  The annual statement must be

20  completed using generally accepted accounting principles

21  except as otherwise provided in this part.  Further, each

22  association and each insurer must pay to the Chief Financial

23  Officer Treasurer a tax in an amount equal to 2 percent of the

24  amount of such premiums so received.

25         (3)  Any association or insurer neglecting to file the

26  annual statement in the form and within the time provided by

27  this section shall forfeit up to $100 for each day during

28  which such neglect continues; and, upon notice by the

29  department to that effect, its authority to do business in

30  this state shall cease while such default continues.  The

31  department shall deposit all sums collected by it under this

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 1  section to the credit of the Insurance Commissioner's

 2  Regulatory Trust Fund.

 3         Section 773.  Section 634.324, Florida Statutes, is

 4  amended to read:

 5         634.324  Disposition of taxes and fees.--All license

 6  taxes, taxes on premiums, license and appointment fees, and

 7  administrative fines and penalties collected under this part

 8  from home warranty associations and sales representatives

 9  shall be deposited to the credit of the Insurance

10  Commissioner's Regulatory Trust Fund.

11         Section 774.  Section 634.327, Florida Statutes, is

12  amended to read:

13         634.327  Applicability to warranty on new home.--This

14  part shall not apply to any program offering a warranty on a

15  new home which is underwritten by an insurer licensed to do

16  business in the state when the insurance policy underwriting

17  such program has been filed with and approved by the

18  department of Insurance as required by law.

19         Section 775.  Subsection (4) of section 634.3284,

20  Florida Statutes, is amended to read:

21         634.3284  Civil remedy.--

22         (4)  This section shall not be construed to authorize a

23  class action suit against a home warranty association or a

24  civil action against the department, its employees, or the

25  Chief Financial Officer Insurance Commissioner.

26         Section 776.  Subsection (2) of section 634.401,

27  Florida Statutes, is amended to read:

28         634.401  Definitions.--As used in this part, the term:

29         (2)  "Department" means the Department of Financial

30  Services Insurance.

31  

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 1         Section 777.  Subsection (3) of section 634.415,

 2  Florida Statutes, is amended to read:

 3         634.415  Tax on premiums; annual statement; reports;

 4  quarterly statements.--

 5         (3)  The department may levy a fine of up to $100 a day

 6  for each day an association neglects to file the annual

 7  statement in the form and within the time provided by this

 8  part.  The amount of the fine shall be established by rules

 9  promulgated by the department.  The department shall deposit

10  all sums collected by it under this section to the credit of

11  the Insurance Commissioner's Regulatory Trust Fund.

12         Section 778.  Subsection (1) of section 634.416,

13  Florida Statutes, is amended to read:

14         634.416  Examination of associations.--

15         (1)  Service warranty associations licensed under this

16  part are subject to periodic examination by the department, in

17  the same manner and subject to the same terms and conditions

18  that apply to insurers under part II of chapter 624.  However,

19  the rate charged a service warranty association by the

20  department for examination may be adjusted to reflect the

21  amount collected for the Form 10-K filing fee as provided in

22  this section.  On or before May 1 of each year, an association

23  may submit to the department the Form 10-K, as filed with the

24  United States Securities and Exchange Commission pursuant to

25  the Securities Exchange Act of 1934, as amended.  Upon receipt

26  and review of the most current Form 10-K, the department may

27  waive the examination requirement; if the department

28  determines not to waive the examination, such examination will

29  be limited to that examination necessary to ensure compliance

30  with this part.  The Form 10-K shall be accompanied by a

31  

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 1  filing fee of $2,000 to be deposited into the Insurance

 2  Commissioner's Regulatory Trust Fund.

 3         Section 779.  Section 634.427, Florida Statutes, is

 4  amended to read:

 5         634.427  Disposition of taxes and fees.--All license

 6  fees, taxes on premiums, registration fees, and administrative

 7  fines and penalties collected under this part from service

 8  warranty associations and sales representatives shall be

 9  deposited to the credit of the Insurance Commissioner's

10  Regulatory Trust Fund.

11         Section 780.  Subsection (4) of section 634.433,

12  Florida Statutes, is amended to read:

13         634.433  Civil remedy.--

14         (4)  This section shall not be construed to authorize a

15  class action suit against a service warranty association or a

16  civil action against the department, its employees, or the

17  Chief Financial Officer Insurance Commissioner.

18         Section 781.  Subsection (3) of section 635.011,

19  Florida Statutes, is amended to read:

20         635.011  Definitions.--As used in this chapter, the

21  term:

22         (3)  "Department" means the Department of Financial

23  Services Insurance of this state.

24         Section 782.  Subsection (2) of section 635.041,

25  Florida Statutes, is amended to read:

26         635.041  Contingency reserve.--

27         (2)  Subject to approval by the insurance department of

28  the insurer's state of domicile and upon 30 days' prior notice

29  to the Department of Financial Services Insurance of this

30  state, the contingency reserve shall be available for loss

31  payments only when the insurer's incurred losses in any one

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 1  calendar year exceed 35 percent of the corresponding earned

 2  premiums.

 3         Section 783.  Subsections (2) and (3) of section

 4  636.003, Florida Statutes, are amended to read:

 5         636.003  Definitions.--As used in this act, the term:

 6         (2)  "Commissioner" means the Commissioner of

 7  Insurance.

 8         (2)(3)  "Department" means the Department of Financial

 9  Services Insurance.

10         Section 784.  Subsection (3) of section 636.043,

11  Florida Statutes, is amended to read:

12         636.043  Annual, quarterly, and miscellaneous

13  reports.--

14         (3)  Every prepaid limited health service organization

15  which fails to file an annual report or quarterly report in

16  the form and within the time required by this section shall

17  forfeit up to $500 for each day for the first 10 days during

18  which the neglect continues and shall forfeit up to $1,000 for

19  each day after the first 10 days during which the neglect

20  continues; and, upon notice by the department to that effect,

21  the organization's authority to enroll new subscribers or to

22  do business in this state ceases while such default continues.

23  The department shall deposit all sums collected by it under

24  this section to the credit of the Insurance Commissioner's

25  Regulatory Trust Fund.  The department may not collect more

26  than $50,000 for each report.

27         Section 785.  Subsection (2) of section 636.047,

28  Florida Statutes, is amended to read:

29         636.047  Officers' and employees' fidelity bond.--

30         (2)  In lieu of the bond specified in subsection (1), a

31  prepaid limited health service organization may deposit with

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 1  the department cash or securities or other investments of the

 2  types set forth in s. 636.042.  Such a deposit must be

 3  maintained in joint custody with the Chief Financial Officer

 4  commissioner in the amount and subject to the same conditions

 5  required for a bond under this subsection.

 6         Section 786.  Section 636.052, Florida Statutes, is

 7  amended to read:

 8         636.052  Civil remedy.--In any civil action brought to

 9  enforce the terms and conditions of a prepaid limited health

10  service organization contract, the prevailing party is

11  entitled to recover reasonable attorney's fees and court

12  costs. This section does not authorize a civil action against

13  the department, its employees, or the Chief Financial Officer

14  commissioner or against the Agency for Health Care

15  Administration, its employees, or the director of that agency.

16         Section 787.  Subsection (1) of section 641.185,

17  Florida Statutes, is amended to read:

18         641.185  Health maintenance organization subscriber

19  protections.--

20         (1)  With respect to the provisions of this part and

21  part III, the principles expressed in the following statements

22  shall serve as standards to be followed by the Department of

23  Financial Services Insurance and the Agency for Health Care

24  Administration in exercising their powers and duties, in

25  exercising administrative discretion, in administrative

26  interpretations of the law, in enforcing its provisions, and

27  in adopting rules:

28         (a)  A health maintenance organization shall ensure

29  that the health care services provided to its subscribers

30  shall be rendered under reasonable standards of quality of

31  care which are at a minimum consistent with the prevailing

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 1  standards of medical practice in the community pursuant to ss.

 2  641.495(1) and 641.51.

 3         (b)  A health maintenance organization subscriber

 4  should receive quality health care from a broad panel of

 5  providers, including referrals, preventive care pursuant to s.

 6  641.402(1), emergency screening and services pursuant to ss.

 7  641.31(12) and 641.513, and second opinions pursuant to s.

 8  641.51.

 9         (c)  A health maintenance organization subscriber

10  should receive assurance that the health maintenance

11  organization has been independently accredited by a national

12  review organization pursuant to s. 641.512, and is financially

13  secure as determined by the state pursuant to ss. 641.221,

14  641.225, and 641.228.

15         (d)  A health maintenance organization subscriber

16  should receive continuity of health care, even after the

17  provider is no longer with the health maintenance organization

18  pursuant to s. 641.51(8).

19         (e)  A health maintenance organization subscriber

20  should receive timely, concise information regarding the

21  health maintenance organization's reimbursement to providers

22  and services pursuant to ss. 641.31 and 641.31015.

23         (f)  A health maintenance organization subscriber

24  should receive the flexibility to transfer to another Florida

25  health maintenance organization, regardless of health status,

26  pursuant to ss. 641.228, 641.3104, 641.3107, 641.3111,

27  641.3921, and 641.3922.

28         (g)  A health maintenance organization subscriber

29  should be eligible for coverage without discrimination against

30  individual participants and beneficiaries of group plans based

31  on health status pursuant to s. 641.31073.

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 1         (h)  A health maintenance organization that issues a

 2  group health contract must: provide coverage for preexisting

 3  conditions pursuant to s. 641.31071; guarantee renewability of

 4  coverage pursuant to s. 641.31074; provide notice of

 5  cancellation pursuant to s. 641.3108; provide extension of

 6  benefits pursuant to s. 641.3111; provide for conversion on

 7  termination of eligibility pursuant to s. 641.3921; and

 8  provide for conversion contracts and conditions pursuant to s.

 9  641.3922.

10         (i)  A health maintenance organization subscriber

11  should receive timely and, if necessary, urgent grievances and

12  appeals within the health maintenance organization pursuant to

13  ss. 641.228, 641.31(5), 641.47, and 641.511.

14         (j)  A health maintenance organization should receive

15  timely and, if necessary, urgent review by an independent

16  state external review organization for unresolved grievances

17  and appeals pursuant to s. 408.7056.

18         (k)  A health maintenance organization subscriber shall

19  be given written notice at least 30 days in advance of a rate

20  change pursuant to s. 641.31(3)(b). In the case of a group

21  member, there may be a contractual agreement with the health

22  maintenance organization to have the employer provide the

23  required notice to the individual members of the group

24  pursuant to s. 641.31(3)(b).

25         (l)  A health maintenance organization subscriber shall

26  be given a copy of the applicable health maintenance contract,

27  certificate, or member handbook specifying: all the

28  provisions, disclosure, and limitations required pursuant to

29  s. 641.31(1) and (4); the covered services, including those

30  services, medical conditions, and provider types specified in

31  ss. 641.31, 641.31094, 641.31095, 641.31096, 641.51(11), and

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 1  641.513; and where and in what manner services may be obtained

 2  pursuant to s. 641.31(4).

 3         Section 788.  Subsections (6) and (11) of section

 4  641.19, Florida Statutes, are amended to read:

 5         641.19  Definitions.--As used in this part, the term:

 6         (6)  "Department" means the Department of Financial

 7  Services Insurance.

 8         (11)  "Guaranteeing organization" is an organization

 9  that which is domiciled in the United States; that which has

10  authorized service of process against it; and that which has

11  appointed the Chief Financial Officer Insurance Commissioner

12  and Treasurer as its agent for service of process issuing upon

13  any cause of action arising in this state, based upon any

14  guarantee entered into under this part.

15         Section 789.  Subsection (1) of section 641.23, Florida

16  Statutes, is amended to read:

17         641.23  Revocation or cancellation of certificate of

18  authority; suspension of enrollment of new subscribers; terms

19  of suspension.--

20         (1)  The maintenance of a valid and current health care

21  provider certificate issued pursuant to part III of this

22  chapter is a condition of the maintenance of a valid and

23  current certificate of authority issued by the department to

24  operate a health maintenance organization.  Denial or

25  revocation of a health care provider certificate shall be

26  deemed to be an automatic and immediate cancellation of a

27  health maintenance organization's certificate of authority.

28  At the discretion of the department of Insurance, nonrenewal

29  of a health care provider certificate may be deemed to be an

30  automatic and immediate cancellation of a health maintenance

31  organization's certificate of authority if the Agency for

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 1  Health Care Administration notifies the department of

 2  Insurance, in writing, that the health care provider

 3  certificate will not be renewed.

 4         Section 790.  Subsection (4) of section 641.26, Florida

 5  Statutes, is amended to read:

 6         641.26  Annual report.--

 7         (4)  Any health maintenance organization that neglects

 8  to file an annual report or quarterly report in the form and

 9  within the time required by this section shall forfeit up to

10  $1,000 for each day for the first 10 days during which the

11  neglect continues and shall forfeit up to $2,000 for each day

12  after the first 10 days during which the neglect continues;

13  and, upon notice by the department to that effect, the

14  organization's authority to enroll new subscribers or to do

15  business in this state shall cease while such default

16  continues.  The department shall deposit all sums collected by

17  it under this section to the credit of the Insurance

18  Commissioner's Regulatory Trust Fund. The department shall not

19  collect more than $100,000 for each report.

20         Section 791.  Section 641.28, Florida Statutes, is

21  amended to read:

22         641.28  Civil remedy.--In any civil action brought to

23  enforce the terms and conditions of a health maintenance

24  organization contract, the prevailing party is entitled to

25  recover reasonable attorney's fees and court costs. This

26  section shall not be construed to authorize a civil action

27  against the department, its employees, or the Chief Financial

28  Officer Insurance Commissioner or against the Agency for

29  Health Care Administration, its employees, or the director of

30  the agency.

31  

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 1         Section 792.  Subsection (1) of section 641.39001,

 2  Florida Statutes, is amended to read:

 3         641.39001  Soliciting or accepting new or renewal

 4  health maintenance contracts by insolvent or impaired health

 5  maintenance organization prohibited; penalty.--

 6         (1)  Whether or not delinquency proceedings as to a

 7  health maintenance organization have been or are to be

 8  initiated, a director or officer of a health maintenance

 9  organization, except with the written permission of the

10  department of Insurance, may not authorize or permit the

11  health maintenance organization to solicit or accept new or

12  renewal health maintenance contracts or provider contracts in

13  this state after the director or officer knew, or reasonably

14  should have known, that the health maintenance organization

15  was insolvent or impaired. As used in this section, the term

16  "impaired" means that the health maintenance organization does

17  not meet the requirements of s. 641.225.

18         Section 793.  Subsections (2) and (3) of section

19  641.402, Florida Statutes, are amended to read:

20         641.402  Definitions.--As used in this part, the term:

21         (2)  "Department" means the Department of Financial

22  Services Insurance.

23         (3)  "Guaranteeing organization" means an organization

24  that which is domiciled in the United States; that which has

25  authorized service of process against it; and that which has

26  appointed the Chief Financial Officer Insurance Commissioner

27  and Treasurer as its agent for service of process in

28  connection with any cause of action arising in this state,

29  based upon any guarantee entered into under this part.

30         Section 794.  Section 641.403, Florida Statutes, is

31  amended to read:

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 1         641.403  Rulemaking authority.--The department may of

 2  Insurance has authority to adopt rules pursuant to ss.

 3  120.536(1) and 120.54 to implement the provisions of this

 4  part.

 5         Section 795.  Subsection (2) of section 641.412,

 6  Florida Statutes, is amended to read:

 7         641.412  Fees.--

 8         (2)  The fees charged under this section shall be

 9  distributed as follows:

10         (a)  One-third of the total amount of fees shall be

11  distributed to the Agency for Health Care Administration; and

12         (b)  Two-thirds of the total amount of fees shall be

13  distributed to the department of Insurance.

14         Section 796.  Section 641.454, Florida Statutes, is

15  amended to read:

16         641.454  Civil action to enforce prepaid health clinic

17  contract; attorney's fees; court costs.--In any civil action

18  brought to enforce the terms and conditions of a prepaid

19  health clinic contract, the prevailing party is entitled to

20  recover reasonable attorney's fees and court costs.  This

21  section shall not be construed to authorize a civil action

22  against the department, its employees, or the Chief Financial

23  Officer Insurance Commissioner and Treasurer or against the

24  Agency for Health Care Administration, the employees of the

25  Agency for Health Care Administration, or the Secretary of

26  Health Care Administration.

27         Section 797.  Section 641.455, Florida Statutes, is

28  amended to read:

29         641.455  Disposition of moneys collected under this

30  part.--Fees, administrative penalties, examination expenses,

31  and other sums collected by the department under this part

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 1  shall be deposited to the credit of the Insurance

 2  Commissioner's Regulatory Trust Fund; however, fees,

 3  examination expenses, and other sums collected by, or

 4  allocated to, the Agency for Health Care Administration under

 5  this part shall be deposited to the credit of the General

 6  Revenue Fund.

 7         Section 798.  Section 641.48, Florida Statutes, is

 8  amended to read:

 9         641.48  Purpose and application of part.--The purpose

10  of this part is to ensure that health maintenance

11  organizations and prepaid health clinics deliver high-quality

12  health care to their subscribers.  To achieve this purpose,

13  this part requires all such organizations to obtain a health

14  care provider certificate from the agency as a condition

15  precedent to obtaining a certificate of authority to do

16  business in Florida from the Department of Financial Services

17  Insurance, under part I or part II of this chapter.

18         Section 799.  Subsection (2) of section 641.49, Florida

19  Statutes, is amended to read:

20         641.49  Certification of health maintenance

21  organization and prepaid health clinic as health care

22  providers; application procedure.--

23         (2)  The Department of Financial Services Insurance

24  shall not issue a certificate of authority under part I or

25  part II of this chapter to any applicant which does not

26  possess a valid health care provider certificate issued by the

27  agency under this part.

28         Section 800.  Subsection (7), paragraph (a) of

29  subsection (8), and subsection (11) of section 641.511,

30  Florida Statutes, are amended to read:

31  

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 1         641.511  Subscriber grievance reporting and resolution

 2  requirements.--

 3         (7)  Each organization shall send to the agency a copy

 4  of its quarterly grievance reports submitted to the Department

 5  of Financial Services Insurance pursuant to s. 408.7056(12).

 6         (8)  The agency shall investigate all reports of

 7  unresolved quality of care grievances received from:

 8         (a)  Annual and quarterly grievance reports submitted

 9  by the organization to the Department of Financial Services

10  Insurance.

11         (11)  Each organization, as part of its contract with

12  any provider, must require the provider to post a consumer

13  assistance notice prominently displayed in the reception area

14  of the provider and clearly noticeable by all patients. The

15  consumer assistance notice must state the addresses and

16  toll-free telephone numbers of the Agency for Health Care

17  Administration, the Statewide Provider and Subscriber

18  Assistance Program, and the Department of Financial Services

19  Insurance. The consumer assistance notice must also clearly

20  state that the address and toll-free telephone number of the

21  organization's grievance department shall be provided upon

22  request. The agency is authorized to promulgate rules to

23  implement this section.

24         Section 801.  Section 641.52, Florida Statutes, is

25  amended to read:

26         641.52  Revocation of certificate; suspension of new

27  enrollment; suspension of the health care provider

28  certificate; administrative fine; notice of action to the

29  Department of Financial Services Insurance; penalty for use of

30  unlicensed providers.--

31  

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 1         (1)  The agency may suspend the authority of an

 2  organization to enroll new subscribers or revoke the health

 3  care provider certificate of any organization, or order

 4  compliance within a time certain, if it finds that any of the

 5  following conditions exist:

 6         (a)  The organization is in substantial violation of

 7  its contracts.

 8         (b)  The organization is unable to fulfill its

 9  obligations under outstanding contracts entered into with its

10  subscribers.

11         (c)  The organization knowingly utilizes a provider who

12  is furnishing or has furnished health care services and who

13  does not have a subsisting license or other authority to

14  practice or furnish health care services in this state.

15         (d)  The organization no longer meets the requirements

16  for the certificate as originally issued.

17         (e)  The organization has violated any lawful rule or

18  order of the agency or any provision of this part.

19         (f)  The organization has refused to be examined or to

20  produce its accounts, records, and files for examination or to

21  perform any other legal obligation as to such examination,

22  when required by the agency.

23         (g)  The organization has not, after given reasonable

24  notice, maintained accreditation or received favorable

25  external quality assurance reviews under s. 641.512 or,

26  following an investigation under s. 641.515, has been

27  determined to not materially meet requirements under this

28  part.

29         (2)  Revocation of an organization's certificate shall

30  be for a period of 2 years. After 2 years, the organization

31  

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 1  may apply for a new certificate by compliance with all

 2  application requirements applicable to first-time applicants.

 3         (3)  Suspension of an organization's authority to

 4  enroll new subscribers shall be for such period, not to exceed

 5  1 year, as is fixed by the agency. The agency shall, in its

 6  order suspending the authority of an organization to enroll

 7  new subscribers, specify the period during which the

 8  suspension is to be in effect and the conditions, if any,

 9  which must be met by the organization prior to reinstatement

10  of its authority to enroll new subscribers.  The order of

11  suspension is subject to rescission or modification by further

12  order of the agency prior to the expiration of the suspension

13  period.  Authority to enroll new subscribers shall not be

14  reinstated unless requested by the organization; however, the

15  agency may not grant reinstatement if it finds that the

16  circumstances for which the suspension of authority to enroll

17  new subscribers occurred still exist or are likely to recur.

18         (4)  The agency may suspend the health care provider

19  certificate issued to an organization. The agency shall, in

20  its order suspending the health care provider certificate,

21  specify the period during which the suspension is to be in

22  effect and the conditions, if any, which must be met by the

23  organization for reinstatement. Upon expiration of the

24  suspension period, the organization's certificate

25  automatically reinstates unless the agency finds that the

26  causes of the suspension have not been removed or that the

27  organization is otherwise not in compliance with this part.

28  If the agency makes such a finding, the health care provider

29  certificate shall not be reinstated and is considered to have

30  expired as of the end of the suspension period.

31  

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 1         (5)  If the agency finds that one or more grounds exist

 2  for the revocation or suspension of a certificate issued under

 3  this part, the agency may, in lieu of such revocation or

 4  suspension, impose a fine upon the organization.  With respect

 5  to any nonwillful violation, the fine may not exceed $2,500

 6  per violation.  Such fines may not exceed an aggregate amount

 7  of $25,000 for all nonwillful violations arising out of the

 8  same action.  With respect to any knowing and willful

 9  violation of a lawful order or rule of the agency or a

10  provision of this part, the agency may impose a fine upon the

11  organization in an amount not to exceed $20,000 for each such

12  violation.  Such fines may not exceed an aggregate amount of

13  $250,000 for all knowing and willful violations arising out of

14  the same action. The agency shall, by January 1, 1997, adopt

15  by rule penalty categories that specify varying ranges of

16  fines for willful violations and for nonwillful violations.

17         (6)  The agency shall immediately notify the Department

18  of Financial Services Insurance whenever it issues an

19  administrative complaint or an order or otherwise initiates

20  legal proceedings resulting in or which may result in

21  suspension or revocation of an organization's health care

22  provider certificate or suspension of new enrollment.

23         (7)  Any organization that knowingly utilizes the

24  services of a provider who is not licensed or otherwise

25  authorized by law to provide such services is guilty of a

26  felony of the third degree, punishable as provided in s.

27  775.082, s. 775.083, or s. 775.084.

28         Section 802.  Subsection (4) of section 641.55, Florida

29  Statutes, is amended to read:

30         641.55  Internal risk management program.--

31  

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 1         (4)  The Agency for Health Care Administration shall

 2  adopt rules necessary to carry out the provisions of this

 3  section, including rules governing the establishment of

 4  required internal risk management programs to meet the needs

 5  of individual organizations and each specific organization

 6  type governed by this part.  The Department of Financial

 7  Services Insurance shall assist the agency in preparing these

 8  rules. Each internal risk management program shall include the

 9  use of incident reports to be filed with the risk manager.

10  The risk manager shall have free access to all organization or

11  provider medical records. The incident reports shall be

12  considered to be a part of the workpapers of the attorney

13  defending the organization in litigation relating thereto and

14  shall be subject to discovery, but not be admissible as

15  evidence in court, nor shall any person filing an incident

16  report be subject to civil suit by virtue of the incident

17  report and the matters it contains.  As a part of each

18  internal risk management program, the incident reports shall

19  be utilized to develop categories of incidents which identify

20  problem areas. Once identified, procedures must be adjusted to

21  correct these problem areas.

22  

23  The gross data compiled under this section or s. 395.0197

24  shall be furnished by the agency upon request to organizations

25  to be utilized for risk management purposes.  The agency shall

26  adopt rules necessary to carry out the provisions of this

27  section.

28         Section 803.  Subsection (2) of section 641.58, Florida

29  Statutes, is amended to read:

30         641.58  Regulatory assessment; levy and amount; use of

31  funds; tax returns; penalty for failure to pay.--

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 1         (2)  The Department of Financial Services Insurance

 2  shall determine the amount of gross premiums for the purposes

 3  of the regulatory assessment, and then the agency shall

 4  determine on or before December 1 of each year the regulatory

 5  assessment percentage necessary to be imposed for that

 6  calendar year, payable on or before the following April 1, as

 7  herein prescribed, to provide the funds appropriated to the

 8  agency to carry out the provisions of subsection (4).

 9         Section 804.  Subsection (1) of section 642.015,

10  Florida Statutes, is amended to read:

11         642.015  Definitions.--As used in ss. 642.011-642.049,

12  the term:

13         (1)  "Department" means the Department of Financial

14  Services Insurance.

15         Section 805.  Subsection (4) of section 642.0475,

16  Florida Statutes, is amended to read:

17         642.0475  Civil remedy.--

18         (4)  This section shall not be construed to authorize a

19  class action suit against a legal expense insurance

20  corporation or a civil action against the department, its

21  employees, or the Chief Financial Officer Insurance

22  Commissioner.

23         Section 806.  Subsection (2) of section 648.25, Florida

24  Statutes, is amended to read:

25         648.25  Definitions.--The following words when used in

26  this chapter have the meanings respectively ascribed to them

27  in this section:

28         (2)  "Department" means the Department of Financial

29  Services Insurance.

30         Section 807.  Section 648.26, Florida Statutes, is

31  amended to read:

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 1         648.26  Department of Financial Services Insurance;

 2  administration.--

 3         (1)  The department shall administer the provisions of

 4  this chapter as provided in this chapter.

 5         (a)  The department has authority to adopt rules

 6  pursuant to ss. 120.536(1) and 120.54 to implement the

 7  provisions of this chapter conferring powers or duties upon

 8  it.

 9         (b)  The department may employ and discharge such

10  employees, examiners, counsel, and other assistants as shall

11  be deemed necessary, and it shall prescribe their duties;

12  their compensation shall be the same as other state employees

13  receive for similar services.

14         (2)  The department shall adopt a seal by which its

15  proceedings are authenticated.  Any written instrument

16  purporting to be a copy of any action, proceeding, or finding

17  of fact by the department, or any record of the department

18  authenticated by the seal, shall be accepted by all the courts

19  of this state as prima facie evidence of the contents thereof.

20         (3)  The papers, documents, reports, or any other

21  investigatory records of the department are confidential and

22  exempt from the provisions of s. 119.07(1) until such

23  investigation is completed or ceases to be active. For the

24  purpose of this section, an investigation is considered

25  "active" while the investigation is being conducted by the

26  department with a reasonable, good faith belief that it may

27  lead to the filing of administrative, civil, or criminal

28  proceedings.  An investigation does not cease to be active if

29  the department is proceeding with reasonable dispatch and

30  there is good faith belief that action may be initiated by the

31  department or other administrative or law enforcement agency.

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 1         Section 808.  Subsection (3) of section 648.34, Florida

 2  Statutes, is amended to read:

 3         648.34  Bail bond agents; qualifications.--

 4         (3)  The department may collect a fee necessary to

 5  cover the cost of a character and credit report made by an

 6  established and reputable independent reporting service.  The

 7  fee shall be deposited to the credit of the Insurance

 8  Commissioner's Regulatory Trust Fund.  Any information so

 9  furnished is confidential and exempt from the provisions of s.

10  119.07(1).

11         Section 809.  Subsection (5) of section 648.355,

12  Florida Statutes, is amended to read:

13         648.355  Temporary limited license as limited surety

14  agent or professional bail bond agent; pending examination.--

15         (5)  The department may collect a fee necessary to

16  cover the cost of a character and credit report made by an

17  established and reputable independent reporting service. The

18  fee shall be deposited to the credit of the Insurance

19  Commissioner's Regulatory Trust Fund.

20         Section 810.  Subsection (3) of section 648.37, Florida

21  Statutes, is amended to read:

22         648.37  Runners; qualifications.--

23         (3)  The department may collect a fee necessary to

24  cover the cost of a character and credit report made by an

25  established and reputable independent reporting service.  The

26  fee shall be deposited to the credit of the Insurance

27  Commissioner's Regulatory Trust Fund.  Any information so

28  furnished is confidential and exempt from the provisions of s.

29  119.07(1).

30  

31  

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 1         Section 811.  Paragraph (b) of subsection (1) and

 2  paragraph (b) of subsection (2) of section 648.386, Florida

 3  Statutes, are amended to read:

 4         648.386  Qualifications for prelicensing and continuing

 5  education schools and instructors.--

 6         (1)  SCHOOLS AND CURRICULUM FOR PRELICENSING

 7  SCHOOLS.--In order to be considered for approval and

 8  certification as an approved limited surety agent and

 9  professional bail bond agent prelicensing school, such entity

10  must:

11         (b)  Submit a prelicensing course curriculum to the

12  Department of Financial Services Insurance for approval.

13         (2)  SCHOOLS AND CURRICULUM FOR CONTINUING EDUCATION

14  SCHOOLS.--In order to be considered for approval and

15  certification as an approved limited surety agent and

16  professional bail bond agent continuing education school, such

17  entity must:

18         (b)  Submit a course curriculum to the Department of

19  Financial Services Insurance for approval.

20         Section 812.  Subsection (9) of section 648.442,

21  Florida Statutes, is amended to read:

22         648.442  Collateral security.--

23         (9)  An indemnity agreement may not be entered into

24  between a principal and either a surety or any agent of the

25  surety, and an application may not be accepted either by a

26  bail bond agent engaged in the bail bond business or by a

27  surety company for a bail bond in which an indemnity agreement

28  is required between a principal and either a surety or any

29  agent of such surety, unless the indemnity agreement reads as

30  follows:  "For good and valuable consideration, the

31  undersigned principal agrees to indemnify and hold harmless

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 1  the surety company or its agent for all losses not otherwise

 2  prohibited by law or by rules of the Department of Financial

 3  Services Insurance."

 4         Section 813.  Subsection (4) of section 650.06, Florida

 5  Statutes, is amended to read:

 6         650.06  Social Security Contribution Trust Fund.--

 7         (4)  The Chief Financial Officer Treasurer of the state

 8  shall be ex officio treasurer and custodian of the Social

 9  Security Contribution Trust Fund and shall administer such

10  fund in accordance with the provisions of this chapter and the

11  directions of the state agency. The Chief Financial Officer

12  Treasurer shall pay all warrants drawn by the Comptroller upon

13  the fund in accordance with the provisions of this section and

14  with such regulations as the state agency may prescribe

15  pursuant thereto.

16         Section 814.  Subsection (3) of section 651.011,

17  Florida Statutes, is amended to read:

18         651.011  Definitions.--For the purposes of this

19  chapter, the term:

20         (3)  "Department" means the Department of Financial

21  Services Insurance of this state.

22         Section 815.  Subsection (5) of section 651.015,

23  Florida Statutes, is amended to read:

24         651.015  Administration; forms; fees; rules;

25  fines.--The administration of this chapter is vested in the

26  department, which shall:

27         (5)  Deposit all fees and fines collected under the

28  provisions of this chapter into the Insurance Commissioner's

29  Regulatory Trust Fund.

30         Section 816.  Subsection (3) of section 651.0235,

31  Florida Statutes, is amended to read:

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 1         651.0235  Validity of provisional certificates of

 2  authority and certificates of authority.--

 3         (3)  The department of Insurance shall notify the

 4  Agency for Health Care Administration of any facility for

 5  which a provisional certificate of authority or certificate of

 6  authority is no longer valid.

 7         Section 817.  Paragraph (b) of subsection (1) of

 8  section 651.035, Florida Statutes, is amended to read:

 9         651.035  Minimum liquid reserve requirements.--

10         (1)

11         (b)  A provider which has outstanding indebtedness

12  which requires what is normally referred to as a "debt service

13  reserve" to be held in escrow pursuant to a trust indenture or

14  mortgage lien on the facility and for which the debt service

15  reserve may only be used to pay principal and interest

16  payments on the debt which the debtor is obligated to pay, and

17  which may include taxes and insurance, may include such debt

18  service reserve in its computation of its minimum liquid

19  reserve to satisfy this subsection, provided that the provider

20  furnishes to the department of Insurance a copy of the

21  agreement under which such debt service is held, together with

22  a statement of the amount being held in escrow for the debt

23  service reserve, certified by the lender or trustee and the

24  provider to be correct.  The trustee shall provide the

25  department with any information concerning the debt service

26  reserve account upon request of the provider or the

27  department.

28         Section 818.  Subsection (1) of section 651.121,

29  Florida Statutes, is amended to read:

30         651.121  Advisory council.--

31  

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 1         (1)  The Continuing Care Advisory Council to the

 2  Department of Financial Services Insurance is created to

 3  consist of 10 members who are residents of this state

 4  appointed by the Governor and geographically representative of

 5  this state. Three members shall be administrators of

 6  facilities which hold valid certificates of authority under

 7  this chapter and shall have been actively engaged in the

 8  offering of continuing care agreements in this state for 5

 9  years before appointment. The remaining members shall include:

10         (a)  A representative of the business community whose

11  expertise is in the area of management.

12         (b)  A representative of the financial community who is

13  not a facility owner or administrator.

14         (c)  A certified public accountant.

15         (d)  An attorney.

16         (e)  Three residents who hold continuing care

17  agreements with a facility certified in this state.

18         Section 819.  Subsection (4) of section 651.125,

19  Florida Statutes, is amended to read:

20         651.125  Criminal penalties; injunctive relief.--

21         (4)  Any action brought by the department against a

22  provider shall not abate by reason of a sale or other transfer

23  of ownership of the facility used to provide care, which

24  provider is a party to the action, except with the express

25  written consent of the Chief Financial Officer Treasurer and

26  Insurance Commissioner.

27         Section 820.  Subsection (1) of section 655.001,

28  Florida Statutes, is amended to read:

29         655.001  Purpose; application.--The purposes of the

30  financial institutions codes are to:

31  

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 1         (1)  Provide general regulatory powers to be exercised

 2  by the Department of Financial Services Banking and Finance in

 3  relation to the regulation of financial institutions. The

 4  financial institutions codes apply to all state-authorized or

 5  state-chartered financial institutions and to the enforcement

 6  of all laws relating to state-authorized or state-chartered

 7  financial institutions.

 8         Section 821.  Paragraph (e) of subsection (1) of

 9  section 655.005, Florida Statutes, is amended to read:

10         655.005  Definitions.--

11         (1)  As used in the financial institutions codes,

12  unless the context otherwise requires, the term:

13         (e)  "Department" means the Department of Financial

14  Services Banking and Finance.

15         Section 822.  Paragraph (f) of subsection (3) of

16  section 655.057, Florida Statutes, is amended to read:

17         655.057  Records; limited restrictions upon public

18  access.--

19         (3)  The provisions of this section do not prevent or

20  restrict:

21         (f)  Furnishing information upon request to the

22  Division of Treasury State Treasurer regarding the financial

23  condition of any financial institution that is, or has applied

24  to be, designated as a qualified public depository pursuant to

25  chapter 280.

26  

27  Any confidential information or records obtained from the

28  department pursuant to this subsection shall be maintained as

29  confidential and exempt from the provisions of s. 119.07(1).

30         Section 823.  Paragraph (a) of subsection (1) of

31  section 655.90, Florida Statutes, is amended to read:

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 1         655.90  Closing during emergencies and other special

 2  days.--

 3         (1)  DEFINITIONS.--As used in this section, the term:

 4         (a)  "Commissioner" means the officer of this state

 5  designated by law as the head of the department of Banking and

 6  Finance and any other person lawfully exercising such powers,

 7  whether as a deputy to such officer, as a director, bureau

 8  chief, or financial administrator of or within such

 9  department, or otherwise.

10         Section 824.  Subsection (7) of section 657.002,

11  Florida Statutes, is amended to read:

12         657.002  Definitions.--As used in this part:

13         (7)  "Department" means the Department of Financial

14  Services Banking and Finance.

15         Section 825.  Subsection (3) of section 657.253,

16  Florida Statutes, is amended to read:

17         657.253  Definitions.--As used in this part:

18         (3)  "Department" means the Department of Financial

19  Services Banking and Finance.

20         Section 826.  Subsection (3) of section 658.23, Florida

21  Statutes, is amended to read:

22         658.23  Submission of articles of incorporation;

23  contents; form; approval; filing; commencement of corporate

24  existence; bylaws.--

25         (3)  Within 30 days of receipt of the executed articles

26  of incorporation in the form previously approved, and the

27  required filing fees, the department shall place the following

28  legend upon the articles of incorporation and affix the seal

29  of the Office of the Chief Financial Officer Comptroller of

30  Florida thereto. The legend shall in substance read:

31  "Approved by the Department of Financial Services Banking and

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 1  Finance this .... day of .... ...(herein the name and

 2  signature of the head of the department)...."  Thereafter, the

 3  articles of incorporation shall be filed with the Department

 4  of State.

 5         Section 827.  Paragraph (k) of subsection (2) of

 6  section 658.295, Florida Statutes, is amended to read:

 7         658.295  Interstate banking.--

 8         (2)  DEFINITIONS.--For purposes of this section, the

 9  term:

10         (k)  "Department" means the Department of Financial

11  Services Banking and Finance.

12         Section 828.  Paragraph (e) of subsection (4) of

13  section 658.2953, Florida Statutes, is amended to read:

14         658.2953  Interstate branching.--

15         (4)  DEFINITIONS.--As used in this section, unless a

16  different meaning is required by the context:

17         (e)  "Department" means the Department of Financial

18  Services Banking and Finance.

19         Section 829.  Subsection (3) of section 658.83, Florida

20  Statutes, is amended to read:

21         658.83  Liquidator; powers and duties.--

22         (3)  Such liquidator shall pay all moneys received to

23  the Chief Financial Officer Treasurer to be held as a special

24  deposit for the use and benefit of the creditors subject to

25  the order of the department and also shall make reports

26  quarterly, or when called upon, to the department of all her

27  or his acts and proceedings.

28         Section 830.  Section 660.27, Florida Statutes, is

29  amended to read:

30         660.27  Deposit of securities with Chief Financial

31  Officer Treasurer.--

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 1         (1)  Before transacting any trust business in this

 2  state, every trust company and every state or national bank or

 3  state or federal association having trust powers shall give

 4  satisfactory security by the deposit or pledge of security of

 5  the kind or type provided in this section having at all times

 6  a market value in an amount equal to 25 percent of the issued

 7  and outstanding capital stock of such trust company, bank, or

 8  state or federal stock association or, in the case of a

 9  federal mutual association, an equivalent amount determined by

10  the department, or the sum of $25,000, whichever is greater.

11  However, the value of the security deposited or pledged

12  pursuant to the provisions of this section shall not be

13  required to exceed $500,000.  Any notes, mortgages, bonds, or

14  other securities, other than shares of stock, eligible for

15  investment by a state bank, state association, or state trust

16  company, or eligible for investment by fiduciaries, shall be

17  accepted as satisfactory security for the purposes of this

18  section.

19         (2)  The trust company, bank, or association shall

20  provide to the Chief Financial Officer Treasurer the

21  following:

22         (a)  Written information which includes full legal

23  name; federal employer identification number; principal place

24  of business; amount of capital stock; and amount of required

25  collateral.

26         (b)  The required information listed in paragraph (a)

27  shall be provided annually as of September 30 and shall be due

28  November 15.

29         (3)  The Chief Financial Officer Treasurer shall

30  determine whether the security deposited or pledged pursuant

31  to this section, or tendered for such deposit or pledge, is of

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 1  the kind or type permitted, and has a market value in the

 2  amount required, by subsection (1). The security required by

 3  this section shall be deposited with or to the credit of, or

 4  pledged to, the Chief Financial Officer Treasurer for the

 5  account of each state or national bank, state or federal

 6  association, or trust company depositing or pledging the same

 7  and shall be used, if at all, by the liquidator of such bank,

 8  association, or trust company with first priority being given

 9  to claims on account of the trust business or fiduciary

10  functions of such bank, association, or trust company or,

11  prior to liquidation, for the payment of any judgment or

12  decree which may be rendered against such bank, association,

13  or trust company in connection with its trust business or its

14  fiduciary functions if such judgment or decree is not

15  otherwise paid by, or out of other assets of, such bank,

16  association, or trust company.

17         (4)  Any security of any kind which has been deposited

18  or pledged as provided in this section may at any time, by or

19  upon the direction of such bank, association, or trust company

20  which deposited or pledged such security, be withdrawn and

21  released from such pledge provided that simultaneously

22  therewith satisfactory security as provided in this section,

23  in such amount, if any, as may be necessary in order to comply

24  with the requirements of this section, is substituted for the

25  security so withdrawn and released.

26         (5)  With the approval of the Chief Financial Officer

27  Treasurer, each trust company, bank, or association as pledgor

28  may deposit eligible collateral with a custodian. This

29  custodian shall not be affiliated or related to the trust

30  company, bank, or association. Collateral must be deposited

31  

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 1  using the collateral agreements and provisions as set forth in

 2  s. 280.041(1) and (2).

 3         Section 831.  Section 660.28, Florida Statutes, is

 4  amended to read:

 5         660.28  Exemption from bond and other security as

 6  fiduciary.--A trust company or trust department maintaining

 7  security with the Chief Financial Officer Treasurer as

 8  required by s. 660.27 shall not be required by the state or

 9  any of its political subdivisions or by a court of this state

10  to furnish any bond or other security as a condition of, or in

11  connection with, acting in any fiduciary capacity which such

12  trust company or trust department is lawfully permitted to

13  accept or assume.

14         Section 832.  Subsection (2) of section 687.13, Florida

15  Statutes, is amended to read:

16         687.13  International transactions.--

17         (2)  The provisions of this chapter shall not apply to

18  any international banking facility "deposit," "borrowing," or

19  "extension of credit," as those terms are defined by the

20  Department of Financial Services Banking and Finance pursuant

21  to s. 655.071.

22         Section 833.  Subsection (3) of section 687.14, Florida

23  Statutes, is amended to read:

24         687.14  Definitions.--As used in this act, unless the

25  context otherwise requires:

26         (3)  "Department" means the Department of Financial

27  Services Banking and Finance.

28         Section 834.  Subsection (2) of section 697.202,

29  Florida Statutes, is amended to read:

30         697.202  Definitions of terms used in ss.

31  697.20-697.206.--As used in ss. 697.20-697.206, the term:

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 1         (2)  "Department" means the Department of Financial

 2  Services Insurance.

 3         Section 835.  Section 697.205, Florida Statutes, is

 4  amended to read:

 5         697.205  Recoveries from the trust fund.--

 6         (1)(a)  Any person is eligible to seek recovery from

 7  the Treasury Treasurer's Administrative and Investment Trust

 8  Fund if:

 9         1.  Such person was the mortgagee of a home equity

10  conversion mortgage which was foreclosed upon termination, and

11  the proceeds from the foreclosure sale were insufficient to

12  repay the full loan amount due;

13         2.  Such person has caused to be issued a writ of

14  execution upon a decree rendered pursuant to chapter 702, and

15  the officer executing the writ has made a return showing that

16  no real or personal property of the judgment debtor can be

17  found which is liable to be levied upon in satisfaction of the

18  decree or that the amount realized on the sale of the judgment

19  debtor's property pursuant to such execution was insufficient

20  to satisfy the judgment;

21         3.  Such person has made all searches and inquiries

22  which are reasonable to ascertain whether the judgment debtor

23  possesses real or personal property or other assets subject to

24  being sold or applied in satisfaction of the judgment, and

25  such person through her or his search has discovered no

26  property or assets or has discovered property and assets and

27  taken all necessary action and proceedings for the application

28  of such property and assets in satisfaction of the judgment

29  but the amounts thereby realized were insufficient to satisfy

30  the judgment;

31  

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 1         4.  Such person has applied any amounts recovered from

 2  the judgment debtor, or from any other source, to the

 3  deficiency decree; or

 4         5.  The mortgage on which recovery is sought was

 5  insured pursuant to s. 697.204 prior to July 1, 1993.

 6         (b)  Any person who meets all of the conditions

 7  prescribed in subsection (1) may apply to the department for

 8  payment to be made to such person from the Treasury

 9  Treasurer's Administrative and Investment Trust Fund in an

10  amount equal to the unsatisfied portion of such person's

11  deficiency decree. Such amount may not exceed the difference

12  between the amount of the proceeds from a foreclosure sale and

13  the loan amount due, including principal and interest.

14         (c)  Upon receipt by the mortgagee of the payment from

15  the Treasury Treasurer's Administrative and Investment Trust

16  Fund, the mortgagee shall assign to the department any

17  additional right, title, and interest in the judgment, to the

18  extent of such payment.

19         (2)(a)  If a search is made by the mortgagee to

20  determine all of the debtor's real and personal property which

21  may be applied towards payment of the debt and it is

22  determined that foreclosure of the home equity conversion

23  mortgage would not result in recovering any significant

24  additional assets of the debtor which may be used to satisfy

25  the mortgage, the mortgagee may still be able to recover from

26  the fund without having to foreclose, provided that such

27  mortgage was insured pursuant to s. 697.204 prior to July 1,

28  1993.

29         (b)  Any person who meets all of the conditions set by

30  rule for recovery under this subsection may apply to the

31  department for payment to be made to such person from the

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 1  Treasury Treasurer's Administrative and Investment Trust Fund

 2  in an amount equal to the maximum recovery as provided herein.

 3         Section 836.  Section 697.206, Florida Statutes, is

 4  amended to read:

 5         697.206  Department of Financial Services Insurance;

 6  powers and duties.--

 7         (1)  The Department of Financial Services Insurance

 8  shall have all the powers necessary or appropriate to carry

 9  out the purposes and provisions of ss. 697.20-697.206,

10  including the power to:

11         (a)  Make contracts and agreements with other agencies

12  of the state, the Federal Government, any other public agency,

13  or any other public person, association, corporation, local

14  government, or other entity in exercising its powers and

15  performing its duties under ss. 697.20-697.206.

16         (b)  Seek and accept funding from any public or private

17  source.

18         (2)  On or before March 1 of each year, the Department

19  of Financial Services Insurance shall make a report to the

20  Legislature on the activities undertaken pursuant to ss.

21  697.20-697.206.

22         Section 837.  Paragraph (c) of subsection (3) of

23  section 713.596, Florida Statutes, is amended to read:

24         713.596  Molder's liens.--

25         (3)  SALE.--

26         (c)1.  The proceeds of the sale must be paid first to

27  any holder of a security interest perfected in this state. Any

28  excess must be paid to the molder holding the lien created by

29  this section. Any remaining amount is to be paid to the

30  customer, if the customer's address is known, or to the Chief

31  Financial Officer State Treasurer for deposit in the General

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 1  Revenue Fund if the customer's address is unknown to the

 2  molder at the time of the sale.

 3         2.  A sale may not be made under this section if it

 4  would be in violation of any right of a customer under federal

 5  patent or copyright law.

 6         Section 838.  Subsection (4) of section 716.02, Florida

 7  Statutes, is amended to read:

 8         716.02  Escheat of funds in the possession of federal

 9  agencies.--All property within the provisions of subsections

10  (1), (2), (3), (4) and (5), are declared to have escheated, or

11  to escheat, including all principal and interest accruing

12  thereon, and to have become the property of the state.

13         (4)  In the event any money is due to any resident of

14  this state as a refund, rebate or tax rebate from the United

15  States Commissioner of Internal Revenue, the United States

16  Treasurer, or other governmental agency or department, which

17  said resident will, or is likely to have her or his rights to

18  apply for and secure such refund or rebate barred by any

19  statute of limitations or, in any event, has failed for a

20  period of 1 year after said resident could have filed a claim

21  for said refund or rebate, the Department of Financial

22  Services Banking and Finance is hereby appointed agent of such

23  resident to demand, file and apply for said refund or rebate,

24  and is hereby appointed to do any act which a natural person

25  could do to recover such said money, and it is hereby declared

26  that when the department files such said application or any

27  other proceeding to secure such said refund or rebate, its

28  agency is coupled with an interest in the money sought and

29  money recovered.

30         Section 839.  Section 716.03, Florida Statutes, is

31  amended to read:

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 1         716.03  Department to institute proceedings to recover

 2  escheated property.--When there exists, or may exist,

 3  escheated funds or property under this chapter, the Department

 4  of Financial Services Banking and Finance shall demand or

 5  institute proceedings in the name of the state for an

 6  adjudication that an escheat to the state of such funds or

 7  property has occurred; and shall take appropriate action to

 8  recover such funds or property.

 9         Section 840.  Section 716.04, Florida Statutes, is

10  amended to read:

11         716.04  Jurisdiction.--Whenever the Department of

12  Financial Services Banking and Finance is of the opinion an

13  escheat has occurred, or shall occur, of any money or other

14  property deposited in the custody of, or under the control of,

15  any court of the United States, in and for any district within

16  the state, or in the custody of any depository, registry or

17  clerk or other officer of such court, or the treasury of the

18  United States, it shall cause to be filed a complaint in the

19  Circuit Court of Leon County, or in any other court of

20  competent jurisdiction, to ascertain if any escheat has

21  occurred, and to cause said court to enter a judgment or

22  decree of escheat in favor of the state, with costs,

23  disbursements, and attorney fee.

24         Section 841.  Section 716.05, Florida Statutes, is

25  amended to read:

26         716.05  Money recovered to be paid into State

27  Treasury.--When any funds or property which has escheated

28  within the meaning of this chapter has been recovered by the

29  Department of Financial Services Banking and Finance, the

30  department shall first pay all costs incident to the

31  collection and recovery of such funds or property and shall

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 1  promptly deposit the remaining balance of such funds or

 2  property with the Chief Financial Officer Treasurer of the

 3  state, to be distributed in accordance with law.

 4         Section 842.  Section 716.06, Florida Statutes, is

 5  amended to read:

 6         716.06  Public records.--All records in the office of

 7  the Chief Financial Officer State Treasurer or the Department

 8  of Financial Services Banking and Finance relating to federal

 9  funds, pursuant to this chapter, shall be public records.

10         Section 843.  Section 716.07, Florida Statutes, is

11  amended to read:

12         716.07  Recovery of escheated property by claimant.--

13         (1)  Any person who claims any property, funds, or

14  money delivered to the State Treasurer or Chief Financial

15  Officer under this chapter, shall, within 5 years from the

16  date of receipt of such said property, funds, or money, file a

17  verified claim with the Chief Financial Officer State

18  Treasurer, setting forth the facts upon which such said party

19  claims to be entitled to recover such said money or property.

20  The Chief Financial Officer State Treasurer, within 5 days

21  after receipt of such claim, shall submit the said verified

22  claim or a verified copy thereof, to the Department of

23  Financial Services Banking and Finance. All claims made for

24  recovery of property, funds, or money, not filed within 5

25  years from the date that such said property, funds, or money

26  is received by the Chief Financial Officer State Treasurer,

27  shall be forever barred, and the Chief Financial Officer

28  Treasurer of the state shall be without power to consider or

29  determine any claims so made by any claimant after 5 years

30  from the date that the property, funds, or money was received

31  by the Chief Financial Officer State Treasurer.

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 1         (2)  The Chief Financial Officer Comptroller shall

 2  approve or disapprove the claim.  If the claim is approved,

 3  the funds, money, or property of the claimant, less any

 4  expenses and costs which shall have been incurred by the state

 5  in securing the possession of said property, as provided by

 6  this chapter, shall be delivered to the claimant by the Chief

 7  Financial Officer State Treasurer upon warrant issued

 8  according to law and her or his receipt taken therefor.  If

 9  the court finds, upon any judicial review, that the claimant

10  is entitled to the property, money, or funds claimed, and

11  shall render judgment in her or his or its favor, declaring

12  that the claimant is entitled to such said property, funds, or

13  money, then upon presentation of said judgment or a certified

14  copy thereof to the Chief Financial Officer State Comptroller,

15  the Chief Financial Officer said Comptroller shall draw her or

16  his warrant for the amount of money stated in such said

17  judgment, without interest or cost to the state, less any sum

18  paid by the state as costs or expenses in securing possession

19  of such said property, funds, or money. When payment has been

20  made to any claimant, no action thereafter shall be maintained

21  by any other claimant against the state or any officer

22  thereof, for or on account of such said money, property, or

23  funds.

24         Section 844.  Subsection (6) of section 717.101,

25  Florida Statutes, is amended to read:

26         717.101  Definitions.--As used in this chapter, unless

27  the context otherwise requires:

28         (6)  "Department" means the Department of Financial

29  Services Banking and Finance.

30         Section 845.  Subsection (1) of section 717.135,

31  Florida Statutes, is amended to read:

                                 796

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 1         717.135  Agreement to locate reported property.--

 2         (1)  All agreements between an owner's representative

 3  and an owner for compensation to recover or assist in the

 4  recovery of property reported to the department under s.

 5  717.117 shall either:

 6         (a)  Limit the fees for services for each owner

 7  contract to $25 for all contracts relating to unclaimed

 8  property with a dollar value below $250. For all contracts

 9  relating to unclaimed property with a dollar value of $250 and

10  above, fees shall be limited to 15 percent on property held by

11  the department for 24 months or less and 25 percent on

12  property held by the department for more than 24 months. Fees

13  for cash accounts shall be based on the value of the property

14  at the time the agreement for recovery is signed by the

15  apparent owner. Fees for accounts containing securities or

16  other intangible ownership interests, which securities or

17  interests are not converted to cash, shall be based on the

18  purchase price of the security as quoted on a national

19  exchange or other market on which the ownership interest is

20  regularly traded at the time the securities or other ownership

21  interest is remitted to the owner or the owner's

22  representative. Fees for tangible property or safe-deposit box

23  accounts shall be based on the value of the tangible property

24  or contents of the safe-deposit box at the time the ownership

25  interest is transferred or remitted to the owner or the

26  owner's representative; or

27         (b)  Disclose that the property is held by the

28  Department of Financial Services Banking and Finance pursuant

29  to this chapter, the person or name of the entity that held

30  the property prior to the property becoming unclaimed, the

31  date of the holder's last contact with the owner, if known,

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 1  and the approximate value of the property, and identify which

 2  of the following categories of unclaimed property the owner's

 3  representative is seeking to recover:

 4         1.  Cash accounts.

 5         2.  Stale dated checks.

 6         3.  Life insurance or annuity contract assets.

 7         4.  Utility deposits.

 8         5.  Securities or other interests in business

 9  associations.

10         6.  Wages.

11         7.  Accounts receivable.

12         8.  Contents of safe-deposit boxes.

13  

14  However, this section shall not apply to contracts made in

15  connection with guardianship proceedings or the probate of an

16  estate.

17         Section 846.  Section 717.138, Florida Statutes, is

18  amended to read:

19         717.138  Rulemaking authority.--The Department of

20  Financial Services Banking and Finance shall administer and

21  provide for the enforcement of this chapter. The department

22  has authority to adopt rules pursuant to ss. 120.536(1) and

23  120.54 to implement the provisions of this chapter. The

24  department may adopt rules to allow for electronic filing of

25  fees, forms, and reports required by this chapter.

26         Section 847.  Paragraph (d) of subsection (1) of

27  section 718.501, Florida Statutes, is amended to read:

28         718.501  Powers and duties of Division of Florida Land

29  Sales, Condominiums, and Mobile Homes.--

30         (1)  The Division of Florida Land Sales, Condominiums,

31  and Mobile Homes of the Department of Business and

                                 798

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 1  Professional Regulation, referred to as the "division" in this

 2  part, in addition to other powers and duties prescribed by

 3  chapter 498, has the power to enforce and ensure compliance

 4  with the provisions of this chapter and rules promulgated

 5  pursuant hereto relating to the development, construction,

 6  sale, lease, ownership, operation, and management of

 7  residential condominium units. In performing its duties, the

 8  division has the following powers and duties:

 9         (d)  Notwithstanding any remedies available to unit

10  owners and associations, if the division has reasonable cause

11  to believe that a violation of any provision of this chapter

12  or rule promulgated pursuant hereto has occurred, the division

13  may institute enforcement proceedings in its own name against

14  any developer, association, officer, or member of the board of

15  administration, or its assignees or agents, as follows:

16         1.  The division may permit a person whose conduct or

17  actions may be under investigation to waive formal proceedings

18  and enter into a consent proceeding whereby orders, rules, or

19  letters of censure or warning, whether formal or informal, may

20  be entered against the person.

21         2.  The division may issue an order requiring the

22  developer, association, officer, or member of the board of

23  administration, or its assignees or agents, to cease and

24  desist from the unlawful practice and take such affirmative

25  action as in the judgment of the division will carry out the

26  purposes of this chapter. Such affirmative action may include,

27  but is not limited to, an order requiring a developer to pay

28  moneys determined to be owed to a condominium association.

29         3.  The division may bring an action in circuit court

30  on behalf of a class of unit owners, lessees, or purchasers

31  for declaratory relief, injunctive relief, or restitution.

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 1         4.  The division may impose a civil penalty against a

 2  developer or association, or its assignee or agent, for any

 3  violation of this chapter or a rule promulgated pursuant

 4  hereto. The division may impose a civil penalty individually

 5  against any officer or board member who willfully and

 6  knowingly violates a provision of this chapter, a rule adopted

 7  pursuant hereto, or a final order of the division. The term

 8  "willfully and knowingly" means that the division informed the

 9  officer or board member that his or her action or intended

10  action violates this chapter, a rule adopted under this

11  chapter, or a final order of the division and that the officer

12  or board member refused to comply with the requirements of

13  this chapter, a rule adopted under this chapter, or a final

14  order of the division. The division, prior to initiating

15  formal agency action under chapter 120, shall afford the

16  officer or board member an opportunity to voluntarily comply

17  with this chapter, a rule adopted under this chapter, or a

18  final order of the division. An officer or board member who

19  complies within 10 days is not subject to a civil penalty. A

20  penalty may be imposed on the basis of each day of continuing

21  violation, but in no event shall the penalty for any offense

22  exceed $5,000. By January 1, 1998, the division shall adopt,

23  by rule, penalty guidelines applicable to possible violations

24  or to categories of violations of this chapter or rules

25  adopted by the division. The guidelines must specify a

26  meaningful range of civil penalties for each such violation of

27  the statute and rules and must be based upon the harm caused

28  by the violation, the repetition of the violation, and upon

29  such other factors deemed relevant by the division. For

30  example, the division may consider whether the violations were

31  committed by a developer or owner-controlled association, the

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 1  size of the association, and other factors. The guidelines

 2  must designate the possible mitigating or aggravating

 3  circumstances that justify a departure from the range of

 4  penalties provided by the rules. It is the legislative intent

 5  that minor violations be distinguished from those which

 6  endanger the health, safety, or welfare of the condominium

 7  residents or other persons and that such guidelines provide

 8  reasonable and meaningful notice to the public of likely

 9  penalties that may be imposed for proscribed conduct. This

10  subsection does not limit the ability of the division to

11  informally dispose of administrative actions or complaints by

12  stipulation, agreed settlement, or consent order. All amounts

13  collected shall be deposited with the Chief Financial Officer

14  Treasurer to the credit of the Division of Florida Land Sales,

15  Condominiums, and Mobile Homes Trust Fund. If a developer

16  fails to pay the civil penalty, the division shall thereupon

17  issue an order directing that such developer cease and desist

18  from further operation until such time as the civil penalty is

19  paid or may pursue enforcement of the penalty in a court of

20  competent jurisdiction. If an association fails to pay the

21  civil penalty, the division shall thereupon pursue enforcement

22  in a court of competent jurisdiction, and the order imposing

23  the civil penalty or the cease and desist order will not

24  become effective until 20 days after the date of such order.

25  Any action commenced by the division shall be brought in the

26  county in which the division has its executive offices or in

27  the county where the violation occurred.

28         Section 848.  Paragraph (d) of subsection (1) of

29  section 719.501, Florida Statutes, is amended to read:

30         719.501  Powers and duties of Division of Florida Land

31  Sales, Condominiums, and Mobile Homes.--

                                 801

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 1         (1)  The Division of Florida Land Sales, Condominiums,

 2  and Mobile Homes of the Department of Business and

 3  Professional Regulation, referred to as the "division" in this

 4  part, in addition to other powers and duties prescribed by

 5  chapter 498, has the power to enforce and ensure compliance

 6  with the provisions of this chapter and rules promulgated

 7  pursuant hereto relating to the development, construction,

 8  sale, lease, ownership, operation, and management of

 9  residential cooperative units. In performing its duties, the

10  division shall have the following powers and duties:

11         (d)  Notwithstanding any remedies available to unit

12  owners and associations, if the division has reasonable cause

13  to believe that a violation of any provision of this chapter

14  or rule promulgated pursuant hereto has occurred, the division

15  may institute enforcement proceedings in its own name against

16  a developer, association, officer, or member of the board, or

17  its assignees or agents, as follows:

18         1.  The division may permit a person whose conduct or

19  actions may be under investigation to waive formal proceedings

20  and enter into a consent proceeding whereby orders, rules, or

21  letters of censure or warning, whether formal or informal, may

22  be entered against the person.

23         2.  The division may issue an order requiring the

24  developer, association, officer, or member of the board, or

25  its assignees or agents, to cease and desist from the unlawful

26  practice and take such affirmative action as in the judgment

27  of the division will carry out the purposes of this chapter.

28  Such affirmative action may include, but is not limited to, an

29  order requiring a developer to pay moneys determined to be

30  owed to a condominium association.

31  

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 1         3.  The division may bring an action in circuit court

 2  on behalf of a class of unit owners, lessees, or purchasers

 3  for declaratory relief, injunctive relief, or restitution.

 4         4.  The division may impose a civil penalty against a

 5  developer or association, or its assignees or agents, for any

 6  violation of this chapter or a rule promulgated pursuant

 7  hereto. The division may impose a civil penalty individually

 8  against any officer or board member who willfully and

 9  knowingly violates a provision of this chapter, a rule adopted

10  pursuant to this chapter, or a final order of the division.

11  The term "willfully and knowingly" means that the division

12  informed the officer or board member that his or her action or

13  intended action violates this chapter, a rule adopted under

14  this chapter, or a final order of the division, and that the

15  officer or board member refused to comply with the

16  requirements of this chapter, a rule adopted under this

17  chapter, or a final order of the division. The division, prior

18  to initiating formal agency action under chapter 120, shall

19  afford the officer or board member an opportunity to

20  voluntarily comply with this chapter, a rule adopted under

21  this chapter, or a final order of the division. An officer or

22  board member who complies within 10 days is not subject to a

23  civil penalty. A penalty may be imposed on the basis of each

24  day of continuing violation, but in no event shall the penalty

25  for any offense exceed $5,000. By January 1, 1998, the

26  division shall adopt, by rule, penalty guidelines applicable

27  to possible violations or to categories of violations of this

28  chapter or rules adopted by the division. The guidelines must

29  specify a meaningful range of civil penalties for each such

30  violation of the statute and rules and must be based upon the

31  harm caused by the violation, the repetition of the violation,

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 1  and upon such other factors deemed relevant by the division.

 2  For example, the division may consider whether the violations

 3  were committed by a developer or owner-controlled association,

 4  the size of the association, and other factors. The guidelines

 5  must designate the possible mitigating or aggravating

 6  circumstances that justify a departure from the range of

 7  penalties provided by the rules. It is the legislative intent

 8  that minor violations be distinguished from those which

 9  endanger the health, safety, or welfare of the cooperative

10  residents or other persons and that such guidelines provide

11  reasonable and meaningful notice to the public of likely

12  penalties that may be imposed for proscribed conduct. This

13  subsection does not limit the ability of the division to

14  informally dispose of administrative actions or complaints by

15  stipulation, agreed settlement, or consent order. All amounts

16  collected shall be deposited with the Chief Financial Officer

17  Treasurer to the credit of the Division of Florida Land Sales,

18  Condominiums, and Mobile Homes Trust Fund. If a developer

19  fails to pay the civil penalty, the division shall thereupon

20  issue an order directing that such developer cease and desist

21  from further operation until such time as the civil penalty is

22  paid or may pursue enforcement of the penalty in a court of

23  competent jurisdiction. If an association fails to pay the

24  civil penalty, the division shall thereupon pursue enforcement

25  in a court of competent jurisdiction, and the order imposing

26  the civil penalty or the cease and desist order shall not

27  become effective until 20 days after the date of such order.

28  Any action commenced by the division shall be brought in the

29  county in which the division has its executive offices or in

30  the county where the violation occurred.

31  

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 1         Section 849.  Subsection (3) of section 721.24, Florida

 2  Statutes, is amended to read:

 3         721.24  Firesafety.--

 4         (3)  The Division of State Fire Marshal of the

 5  Department of Financial Services Insurance may prescribe

 6  uniform standards for firesafety equipment for timeshare units

 7  of timeshare plans for which the construction contracts were

 8  let before October 1, 1983. An entire building shall be

 9  equipped as outlined, except that the approved sprinkler

10  system may be delayed by the Division of State Fire Marshal

11  until October 1, 1991, on a schedule for complete compliance

12  in accordance with rules adopted by the Division of State Fire

13  Marshal, which schedule shall include a provision for a 1-year

14  extension which may be granted not more than three times for

15  any individual requesting an extension.  The entire system

16  must be installed and operational by October 1, 1994.  The

17  Division of State Fire Marshal shall not grant an extension

18  for the approved sprinkler system unless a written request for

19  the extension and a construction work schedule is submitted.

20  The Division of State Fire Marshal may grant an extension upon

21  demonstration that compliance with this section by the date

22  required would impose an extreme hardship and a

23  disproportionate financial impact.  Any establishment that has

24  been granted an extension by the Division of State Fire

25  Marshal shall post, in a conspicuous place on the premises, a

26  public notice stating that the establishment has not yet

27  installed the approved sprinkler system required by law.

28         Section 850.  Paragraph (e) of subsection (5) of

29  section 721.26, Florida Statutes, is amended to read:

30         721.26  Regulation by division.--The division has the

31  power to enforce and ensure compliance with the provisions of

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 1  this chapter, except for parts III and IV, using the powers

 2  provided in this chapter, as well as the powers prescribed in

 3  chapters 498, 718, and 719. In performing its duties, the

 4  division shall have the following powers and duties:

 5         (5)  Notwithstanding any remedies available to

 6  purchasers, if the division has reasonable cause to believe

 7  that a violation of this chapter, or of any division rule or

 8  order promulgated or issued pursuant to this chapter, has

 9  occurred, the division may institute enforcement proceedings

10  in its own name against any regulated party, as such term is

11  defined in this subsection:

12         (e)1.  The division may impose a penalty against any

13  regulated party for a violation of this chapter or any rule

14  adopted thereunder.  A penalty may be imposed on the basis of

15  each day of continuing violation, but in no event may the

16  penalty for any offense exceed $10,000.  All accounts

17  collected shall be deposited with the Chief Financial Officer

18  Treasurer to the credit of the Division of Florida Land Sales,

19  Condominiums, and Mobile Homes Trust Fund.

20         2.a.  If a regulated party fails to pay a penalty, the

21  division shall thereupon issue an order directing that such

22  regulated party cease and desist from further operation until

23  such time as the penalty is paid; or the division may pursue

24  enforcement of the penalty in a court of competent

25  jurisdiction.

26         b.  If an association or managing entity fails to pay a

27  civil penalty, the division may pursue enforcement in a court

28  of competent jurisdiction.

29         Section 851.  Paragraph (e) of subsection (5) of

30  section 723.006, Florida Statutes, is amended to read:

31  

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 1         723.006  Powers and duties of division.--In performing

 2  its duties, the division has the following powers and duties:

 3         (5)  Notwithstanding any remedies available to mobile

 4  home owners, mobile home park owners, and homeowners'

 5  associations, if the division has reasonable cause to believe

 6  that a violation of any provision of this chapter or any rule

 7  promulgated pursuant hereto has occurred, the division may

 8  institute enforcement proceedings in its own name against a

 9  developer, mobile home park owner, or homeowners' association,

10  or its assignee or agent, as follows:

11         (e)1.  The division may impose a civil penalty against

12  a mobile home park owner or homeowners' association, or its

13  assignee or agent, for any violation of this chapter, a

14  properly promulgated park rule or regulation, or a rule or

15  regulation promulgated pursuant hereto.  A penalty may be

16  imposed on the basis of each separate violation and, if the

17  violation is a continuing one, for each day of continuing

18  violation, but in no event may the penalty for each separate

19  violation or for each day of continuing violation exceed

20  $5,000. All amounts collected shall be deposited with the

21  Chief Financial Officer Treasurer to the credit of the

22  Division of Florida Land Sales, Condominiums, and Mobile Homes

23  Trust Fund.

24         2.  If a violator fails to pay the civil penalty, the

25  division shall thereupon issue an order directing that such

26  violator cease and desist from further violation until such

27  time as the civil penalty is paid or may pursue enforcement of

28  the penalty in a court of competent jurisdiction.  If a

29  homeowners' association fails to pay the civil penalty, the

30  division shall thereupon pursue enforcement in a court of

31  competent jurisdiction, and the order imposing the civil

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 1  penalty or the cease and desist order shall not become

 2  effective until 20 days after the date of such order.  Any

 3  action commenced by the division shall be brought in the

 4  county in which the division has its executive offices or in

 5  which the violation occurred.

 6         Section 852.  Subsections (2) and (3) and paragraph (a)

 7  of subsection (5) of section 732.107, Florida Statutes, are

 8  amended to read:

 9         732.107  Escheat.--

10         (2)  Property that escheats shall be sold as provided

11  in the Florida Probate Rules and the proceeds paid to the

12  Chief Financial Officer Treasurer of the state and deposited

13  in the State School Fund.

14         (3)  At any time within 10 years after the payment to

15  the Chief Financial Officer Treasurer, a person claiming to be

16  entitled to the proceeds may reopen the administration to

17  assert entitlement to the proceeds.  If no claim is timely

18  asserted, the state's rights to the proceeds shall become

19  absolute.

20         (5)(a)  If a person entitled to the proceeds assigns

21  the rights to receive payment to an attorney,

22  Florida-certified public accountant, or private investigative

23  agency which is duly licensed to do business in this state

24  pursuant to a written agreement with that person, the

25  Department of Financial Services Banking and Finance is

26  authorized to make distribution in accordance with the

27  assignment.

28         Section 853.  Subsections (1), (2), and (3) and

29  paragraph (a) of subsection (5) of section 733.816, Florida

30  Statutes, are amended to read:

31  

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 1         733.816  Disposition of unclaimed property held by

 2  personal representatives.--

 3         (1)  In all cases in which there is unclaimed property

 4  in the hands of a personal representative that cannot be

 5  distributed or paid because of the inability to find the

 6  lawful owner or because no lawful owner is known or because

 7  the lawful owner refuses to accept the property after a

 8  reasonable attempt to distribute it and after notice to that

 9  lawful owner, the court shall order the personal

10  representative to sell the property and deposit the proceeds

11  and cash already in hand, after retaining those amounts

12  provided for in subsection (4), with the clerk and receive a

13  receipt, and the clerk shall deposit the funds in the registry

14  of the court to be disposed of as follows:

15         (a)  If the value of the funds is $500 or less, the

16  clerk shall post a notice for 30 days at the courthouse door

17  giving the amount involved, the name of the personal

18  representative, and the other pertinent information that will

19  put interested persons on notice.

20         (b)  If the value of the funds is over $500, the clerk

21  shall publish the notice once a month for 2 consecutive months

22  in a newspaper of general circulation in the county.

23  

24  After the expiration of 6 months from the posting or first

25  publication, the clerk shall deposit the funds with the Chief

26  Financial Officer State Treasurer after deducting the clerk's

27  fees and the costs of publication.

28         (2)  Upon receipt of the funds, the Chief Financial

29  Officer State Treasurer shall deposit them to the credit of

30  the State School Fund, to become a part of the school fund.

31  All interest and all income that may accrue from the money

                                 809

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 1  while so deposited shall belong to the fund. The funds so

 2  deposited shall constitute and be a permanent appropriation

 3  for payments by the Chief Financial Officer State Treasurer in

 4  obedience to court orders entered as provided by subsection

 5  (3).

 6         (3)  Within 10 years from the date of deposit with the

 7  Chief Financial Officer State Treasurer, on written petition

 8  to the court that directed the deposit of the funds and

 9  informal notice to the Department of Legal Affairs, and after

10  proof of entitlement, any person entitled to the funds before

11  or after payment to the Chief Financial Officer State

12  Treasurer and deposit as provided by subsection (1) may obtain

13  a court order directing the payment of the funds to that

14  person. All funds deposited with the Chief Financial Officer

15  State Treasurer and not claimed within 10 years from the date

16  of deposit shall escheat to the state for the benefit of the

17  State School Fund.

18         (5)(a)  If a person entitled to the funds assigns the

19  right to receive payment or part payment to an attorney or

20  private investigative agency which is duly licensed to do

21  business in this state pursuant to a written agreement with

22  that person, the Department of Financial Services Banking and

23  Finance is authorized to make distribution in accordance with

24  the assignment.

25         Section 854.  Paragraphs (a), (b), and (c) of

26  subsection (2) of section 744.534, Florida Statutes, are

27  amended to read:

28         744.534  Disposition of unclaimed funds held by

29  guardian.--

30         (2)(a)  In those cases in which it is appropriate for

31  the guardianship to terminate pursuant to s. 744.521 and in

                                 810

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 1  which property in the hands of a guardian cannot be

 2  distributed to the ward or the ward's estate solely because

 3  the guardian is unable to locate the ward through diligent

 4  search, the court shall order the guardian of the property to

 5  sell the property of the ward and deposit the proceeds and

 6  cash already on hand after retaining those amounts provided

 7  for in paragraph (e) with the clerk of the court exercising

 8  jurisdiction over the guardianship and receive a receipt.  The

 9  clerk shall deposit the funds in the registry of the court, to

10  be disposed of as follows:

11         1.  If the value of the funds is $50 or less, the clerk

12  shall post a notice for 30 days at the courthouse door giving

13  the amount involved, the name of the ward, and other pertinent

14  information that will put interested persons on notice.

15         2.  If the value of the funds is over $50, the clerk

16  shall publish the notice once a month for 2 consecutive months

17  in a newspaper of general circulation in the county.

18         3.  After the expiration of 6 months from the posting

19  or first publication, the clerk shall deposit the funds with

20  the Chief Financial Officer State Treasurer after deducting

21  his or her fees and the costs of publication.

22         (b)  Upon receipt of the funds, the Chief Financial

23  Officer State Treasurer shall deposit them to the credit of

24  public guardianship. All interest and all income that may

25  accrue from the money while so deposited shall belong to the

26  fund. The funds so deposited shall constitute and be a

27  permanent appropriation for payments by the Chief Financial

28  Officer State Treasurer in obedience to court orders entered

29  as provided by paragraph (c).

30         (c)  Within 10 years from the date of deposit with the

31  Chief Financial Officer State Treasurer, on written petition

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 1  to the court that directed the deposit of the funds and

 2  informal notice to the Department of Legal Affairs, and after

 3  proof of his or her right to them, any person entitled to the

 4  funds, before or after payment to the Chief Financial Officer

 5  State Treasurer and deposit as provided for in paragraph (a),

 6  may obtain a court order directing the payment of the funds to

 7  him or her. All funds deposited with the Chief Financial

 8  Officer State Treasurer and not claimed within 10 years from

 9  the date of deposit shall escheat to the state for the benefit

10  of public guardianship.

11         Section 855.  Paragraphs (b), (c), (d), and (e) of

12  subsection (3) of section 766.105, Florida Statutes, are

13  amended to read:

14         766.105  Florida Patient's Compensation Fund.--

15         (3)  THE FUND.--

16         (b)  Fund administration and operation.--

17         1.  The fund shall operate subject to the supervision

18  and approval of a board of governors consisting of a

19  representative of the insurance industry appointed by the

20  Chief Financial Officer Insurance Commissioner, an attorney

21  appointed by The Florida Bar, a representative of physicians

22  appointed by the Florida Medical Association, a representative

23  of physicians' insurance appointed by the Chief Financial

24  Officer Insurance Commissioner, a representative of

25  physicians' self-insurance appointed by the Chief Financial

26  Officer Insurance Commissioner, two representatives of

27  hospitals appointed by the Florida Hospital Association, a

28  representative of hospital insurance appointed by the Chief

29  Financial Officer Insurance Commissioner, a representative of

30  hospital self-insurance appointed by the Chief Financial

31  Officer Insurance Commissioner, a representative of the

                                 812

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 1  osteopathic physicians' or podiatric physicians' insurance or

 2  self-insurance appointed by the Chief Financial Officer

 3  Insurance Commissioner, and a representative of the general

 4  public appointed by the Chief Financial Officer Insurance

 5  Commissioner. The board of governors shall, during the first

 6  meeting after June 30 of each year, choose one of its members

 7  to serve as chair of the board and another member to serve as

 8  vice chair of the board.  The members of the board shall be

 9  appointed to serve terms of 4 years, except that the initial

10  appointments of a representative of the general public by the

11  Chief Financial Officer Insurance Commissioner, an attorney by

12  The Florida Bar, a representative of physicians by the Florida

13  Medical Association, and one of the two representatives of the

14  Florida Hospital Association shall be for terms of 3 years;

15  thereafter, such representatives shall be appointed for terms

16  of 4 years. Subsequent to initial appointments for 4-year

17  terms, the representative of the osteopathic physicians' or

18  podiatric physicians' insurance or self-insurance appointed by

19  the Chief Financial Officer Insurance Commissioner and the

20  representative of hospital self-insurance appointed by the

21  Chief Financial Officer Insurance Commissioner shall be

22  appointed for 2-year terms; thereafter, such representatives

23  shall be appointed for terms of 4 years. Each appointed member

24  may designate in writing to the chair an alternate to act in

25  the member's absence or incapacity. A member of the board, or

26  the member's alternate, may be reimbursed from the assets of

27  the fund for expenses incurred by him or her as a member, or

28  alternate member, of the board and for committee work, but he

29  or she may not otherwise be compensated by the fund for his or

30  her service as a board member or alternate.

31  

                                 813

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 1         2.  There shall be no liability on the part of, and no

 2  cause of action of any nature shall arise against, the fund or

 3  its agents or employees, professional advisers or consultants,

 4  members of the board of governors or their alternates, or the

 5  Department of Financial Services Insurance or its

 6  representatives for any action taken by them in the

 7  performance of their powers and duties pursuant to this

 8  section.

 9         (c)  Powers of the fund.--The fund has the power to:

10         1.  Sue and be sued, and appear and defend, in all

11  actions and proceedings in its name to the same extent as a

12  natural person.

13         2.  Adopt, change, amend, and repeal a plan of

14  operation, not inconsistent with law, for the regulation and

15  administration of the affairs of the fund.  The plan and any

16  changes thereto shall be filed with the Chief Financial

17  Officer Insurance Commissioner and are all subject to his or

18  her approval before implementation by the fund.  All fund

19  members, board members, and employees shall comply with the

20  plan of operation.

21         3.  Have and exercise all powers necessary or

22  convenient to effect any or all of the purposes for which the

23  fund is created.

24         4.  Enter into such contracts as are necessary or

25  proper to carry out the provisions and purposes of this

26  section.

27         5.  Employ or retain such persons as are necessary to

28  perform the administrative and financial transactions and

29  responsibilities of the fund and to perform other necessary or

30  proper functions unless prohibited by law.

31  

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 1         6.  Take such legal action as may be necessary to avoid

 2  payment of improper claims.

 3         7.  Indemnify any employee, agent, member of the board

 4  of governors or his or her alternate, or person acting on

 5  behalf of the fund in an official capacity, for expenses,

 6  including attorney's fees, judgments, fines, and amounts paid

 7  in settlement actually and reasonably incurred by him or her

 8  in connection with any action, suit, or proceeding, including

 9  any appeal thereof, arising out of his or her capacity in

10  acting on behalf of the fund, if he or she acted in good faith

11  and in a manner he or she reasonably believed to be in, or not

12  opposed to, the best interests of the fund and, with respect

13  to any criminal action or proceeding, he or she had reasonable

14  cause to believe his or her conduct was lawful.

15         (d)  Fees and assessments.--Each health care provider,

16  as set forth in subsection (2), electing to comply with

17  paragraph (2)(b) for a given fiscal year shall pay the fees

18  and any assessments established under this section relative to

19  such fiscal year, for deposit into the fund.  Those entering

20  the fund after the fiscal year has begun shall pay a prorated

21  share of the yearly fees for a prorated membership.

22  Actuarially sound membership fees payable annually,

23  semiannually, or quarterly with appropriate service charges

24  shall be established by the fund before January 1 of each

25  fiscal year, based on the following considerations:

26         1.  Past and prospective loss and expense experience in

27  different types of practice and in different geographical

28  areas within the state;

29         2.  The prior claims experience of the members covered

30  under the fund; and

31  

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 1         3.  Risk factors for persons who are retired,

 2  semiretired, or part-time professionals.

 3  

 4  Such fees shall be based on not more than three geographical

 5  areas, not necessarily contiguous, with five categories of

 6  practice and with categories which contemplate separate risk

 7  ratings for hospitals, for health maintenance organizations,

 8  for ambulatory surgical facilities, and for other medical

 9  facilities. The fund is authorized to adjust the fees of an

10  individual member to reflect the claims experience of such

11  member.  Each fiscal year of the fund shall operate

12  independently of preceding fiscal years. Participants shall

13  only be liable for assessments for claims from years during

14  which they were members of the fund; in cases in which a

15  participant is a member of the fund for less than the total

16  fiscal year, a member shall be subject to assessments for that

17  year on a pro rata basis determined by the percentage of

18  participation for the year.  The fund shall submit to the

19  Chief Financial Officer Insurance Commissioner the

20  classifications and membership fees to be charged, and the

21  Chief Financial Officer Insurance Commissioner shall review

22  such fees and shall approve them if they comply with all the

23  requirements of this section and fairly reflect the

24  considerations provided for in this section.  If the

25  classifications or membership fees do not comply with this

26  section, the Chief Financial Officer Insurance Commissioner

27  shall set classifications or membership fees which do comply

28  and which give due recognition to all considerations provided

29  for in this section.  Nothing contained herein shall be

30  construed as imposing liability for payment of any part of a

31  fund deficit on the Joint Underwriting Association authorized

                                 816

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 1  by s. 627.351(4) or its member insurers. If the fund

 2  determines that the amount of money in an account for a given

 3  fiscal year is in excess of or not sufficient to satisfy the

 4  claims made against the account, the fund shall certify the

 5  amount of the projected excess or insufficiency to the Chief

 6  Financial Officer Insurance Commissioner and request the Chief

 7  Financial Officer Insurance Commissioner to levy an assessment

 8  against or refund to all participants in the fund for that

 9  fiscal year, prorated, based on the number of days of

10  participation during the year in question. The Chief Financial

11  Officer Insurance Commissioner shall approve the request of

12  the fund to refund to, or levy any assessment against, the

13  participants, provided the refund or assessment fairly

14  reflects the same considerations and classifications upon

15  which the membership fees were based. The assessment shall be

16  in an amount sufficient to satisfy reserve requirements for

17  known claims, including expenses to satisfy the claims, made

18  against the account for a given fiscal year.  In any

19  proceeding to challenge the amount of the refund or

20  assessment, it is to be presumed that the amount of refund or

21  assessment requested by the fund is correct, if the fund

22  demonstrates that it has used reasonable claims handling and

23  reserving procedures. Additional assessments may be certified

24  and levied in accordance with this paragraph as necessary for

25  any fiscal year.  If a fund member objects to his or her

26  assessment, he or she shall, as a condition precedent to

27  bringing legal action contesting the assessment, pay the

28  assessment, under protest, to the fund.  The fund may borrow

29  money needed for current operations, if necessary to pay

30  claims and related expenses, fees, and costs timely for a

31  given fiscal year, from an account for another fiscal year

                                 817

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 1  until such time as sufficient funds have been obtained through

 2  the assessment process.  Any such money, together with

 3  interest at the mean interest rate earned on the investment

 4  portfolio of the fund, shall be repaid from the next

 5  assessment for the given fiscal year. If any assessments are

 6  levied in accordance with this subsection as a result of

 7  claims in excess of $500,000 per occurrence, and such

 8  assessments are a result of the liability of certain

 9  individuals and entities specified in paragraph (2)(e), only

10  hospitals shall be subject to such assessments.  Before

11  approving the request of the fund to charge membership fees,

12  issue refunds, or levy assessments, the Chief Financial

13  Officer Insurance Commissioner shall publish notice of the

14  request in the Florida Administrative Weekly. Pursuant to

15  chapter 120, any party substantially affected may request an

16  appropriate proceeding. Any petition for such a proceeding

17  shall be filed with the Department of Financial Services

18  Insurance within 21 days after the date of publication of the

19  notice in the Florida Administrative Weekly.

20         (e)  Fund accounting and audit.--

21         1.  Money shall be withdrawn from the fund only upon a

22  voucher as authorized by the board of governors.

23         2.  All books, records, and audits of the fund shall be

24  open for reasonable inspection to the general public, except

25  that a claim file in possession of the fund, fund members, and

26  their insurers is confidential and exempt from the provisions

27  of s. 119.07(1) and s. 24(a), Art. I of the State Constitution

28  until termination of litigation or settlement of the claim,

29  although medical records and other portions of the claim file

30  may remain confidential and exempt as otherwise provided by

31  law. Any book, record, document, audit, or asset acquired by,

                                 818

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 1  prepared for, or paid for by the fund is subject to the

 2  authority of the board of governors, which shall be

 3  responsible therefor.

 4         3.  Persons authorized to receive deposits, issue

 5  vouchers, or withdraw or otherwise disburse any fund moneys

 6  shall post a blanket fidelity bond in an amount reasonably

 7  sufficient to protect fund assets. The cost of such bond shall

 8  be paid from the fund.

 9         4.  Annually, the fund shall furnish, upon request,

10  audited financial reports to any fund participant and to the

11  Department of Financial Services Insurance and the Joint

12  Legislative Auditing Committee. The reports shall be prepared

13  in accordance with accepted accounting procedures and shall

14  include income and such other information as may be required

15  by the Department of Financial Services Insurance or the Joint

16  Legislative Auditing Committee.

17         5.  Any money held in the fund shall be invested in

18  interest-bearing investments by the board of governors of the

19  fund as administrator. However, in no case may any such money

20  be invested in the stock of any insurer participating in the

21  Joint Underwriting Association authorized by s. 627.351(4) or

22  in the parent company of, or company owning a controlling

23  interest in, such insurer. All income derived from such

24  investments shall be credited to the fund.

25         6.  Any health care provider participating in the fund

26  may withdraw from such participation only at the end of a

27  fiscal year; however, such health care provider shall remain

28  subject to any assessment or any refund pertaining to any year

29  in which such member participated in the fund.

30         Section 856.  Subsection (7) of section 766.1115,

31  Florida Statutes, is amended to read:

                                 819

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 1         766.1115  Health care providers; creation of agency

 2  relationship with governmental contractors.--

 3         (7)  RISK MANAGEMENT REPORT.--The Division of Risk

 4  Management of the Department of Financial Services Insurance

 5  shall annually compile a report of all claims statistics for

 6  all entities participating in the risk management program

 7  administered by the division, which shall include the number

 8  and total of all claims pending and paid, and defense and

 9  handling costs associated with all claims brought against

10  contract providers under this section.  This report shall be

11  forwarded to the department and included in the annual report

12  submitted to the Legislature pursuant to this section.

13         Section 857.  Paragraph (c) of subsection (2),

14  subsection (5), paragraph (a) of subsection (6), subsection

15  (7), and paragraph (c) of subsection (9) of section 766.314,

16  Florida Statutes, are amended to read:

17         766.314  Assessments; plan of operation.--

18         (2)  The assessments and appropriations dedicated to

19  the plan shall be administered by the Florida Birth-Related

20  Neurological Injury Compensation Association established in s.

21  766.315, in accordance with the following requirements:

22         (c)  Amendments to the plan of operation may be made by

23  the directors of the plan, subject to the approval of the

24  Department of Financial Services Insurance.

25         (5)(a)  Beginning January 1, 1990, the persons and

26  entities listed in paragraphs (4)(b) and (c), except those

27  persons or entities who are specifically excluded from said

28  provisions, as of the date determined in accordance with the

29  plan of operation, taking into account persons licensed

30  subsequent to the payment of the initial assessment, shall pay

31  an annual assessment in the amount equal to the initial

                                 820

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 1  assessments provided in paragraphs (4)(b) and (c).  On January

 2  1, 1991, and on each January 1 thereafter, the association

 3  shall determine the amount of additional assessments necessary

 4  pursuant to subsection (7), in the manner required by the plan

 5  of operation, subject to any increase determined to be

 6  necessary by the Department of Financial Services Insurance

 7  pursuant to paragraph (7)(b).  On July 1, 1991, and on each

 8  July 1 thereafter, the persons and entities listed in

 9  paragraphs (4)(b) and (c), except those persons or entities

10  who are specifically excluded from said provisions, shall pay

11  the additional assessments which were determined on January 1.

12  Beginning January 1, 1990, the entities listed in paragraph

13  (4)(a), including those licensed on or after October 1, 1988,

14  shall pay an annual assessment of $50 per infant delivered

15  during the prior calendar year.  The additional assessments

16  which were determined on January 1, 1991, pursuant to the

17  provisions of subsection (7) shall not be due and payable by

18  the entities listed in paragraph (4)(a) until July 1.

19         (b)  If the assessments collected pursuant to

20  subsection (4) and the appropriation of funds provided by s.

21  76, chapter 88-1, Laws of Florida, as amended by s. 41,

22  chapter 88-277, Laws of Florida, to the plan from the

23  Insurance Commissioner's Regulatory Trust Fund are

24  insufficient to maintain the plan on an actuarially sound

25  basis, there is hereby appropriated for transfer to the

26  association from the Insurance Commissioner's Regulatory Trust

27  Fund an additional amount of up to $20 million.

28         (c)1.  Taking into account the assessments collected

29  pursuant to subsection (4) and appropriations from the

30  Insurance Commissioner's Regulatory Trust Fund, if required to

31  maintain the plan on an actuarially sound basis, the

                                 821

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 1  Department of Financial Services Insurance shall require each

 2  entity licensed to issue casualty insurance as defined in s.

 3  624.605(1)(b), (k), and (q) to pay into the association an

 4  annual assessment in an amount determined by the department

 5  pursuant to paragraph (7)(a), in the manner required by the

 6  plan of operation.

 7         2.  All annual assessments shall be made on the basis

 8  of net direct premiums written for the business activity which

 9  forms the basis for each such entity's inclusion as a funding

10  source for the plan in the state during the prior year ending

11  December 31, as reported to the Department of Financial

12  Services Insurance, and shall be in the proportion that the

13  net direct premiums written by each carrier on account of the

14  business activity forming the basis for its inclusion in the

15  plan bears to the aggregate net direct premiums for all such

16  business activity written in this state by all such entities.

17         3.  No entity listed in this paragraph shall be

18  individually liable for an annual assessment in excess of 0.25

19  percent of that entity's net direct premiums written.

20         4.  Casualty insurance carriers shall be entitled to

21  recover their initial and annual assessments through a

22  surcharge on future policies, a rate increase applicable

23  prospectively, or a combination of the two.

24         (6)(a)  The association shall make all assessments

25  required by this section, except initial assessments of

26  physicians licensed on or after October 1, 1988, which

27  assessments will be made by the Department of Business and

28  Professional Regulation, and except assessments of casualty

29  insurers pursuant to subparagraph (5)(c)1., which assessments

30  will be made by the Department of Financial Services

31  Insurance. Beginning October 1, 1989, for any physician

                                 822

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 1  licensed between October 1 and December 31 of any year, the

 2  Department of Business and Professional Regulation shall make

 3  the initial assessment plus the assessment for the following

 4  calendar year. The Department of Business and Professional

 5  Regulation shall provide the association, with such frequency

 6  as determined to be necessary, a listing, in a

 7  computer-readable form, of the names and addresses of all

 8  physicians licensed under chapter 458 or chapter 459.

 9         (7)(a)  The Department of Insurance shall undertake an

10  actuarial investigation of the requirements of the plan based

11  on the plan's experience in the first year of operation and

12  any additional relevant information, including without

13  limitation the assets and liabilities of the plan. Pursuant to

14  such investigation, the Department of Insurance shall

15  establish the rate of contribution of the entities listed in

16  paragraph (5)(c) for the tax year beginning January 1, 1990.

17  Following the initial valuation, the Department of Financial

18  Services Insurance shall cause an actuarial valuation to be

19  made of the assets and liabilities of the plan no less

20  frequently than biennially. Pursuant to the results of such

21  valuations, the Department of Financial Services Insurance

22  shall prepare a statement as to the contribution rate

23  applicable to the entities listed in paragraph (5)(c).

24  However, at no time shall the rate be greater than 0.25

25  percent of net direct premiums written.

26         (b)  If the Department of Financial Services Insurance

27  finds that the plan cannot be maintained on an actuarially

28  sound basis based on the assessments and appropriations listed

29  in subsections (4) and (5), the department shall increase the

30  assessments specified in subsection (4) on a proportional

31  basis as needed.

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 1         (9)

 2         (c)  In the event the total of all current estimates

 3  equals 80 percent of the funds on hand and the funds that will

 4  become available to the association within the next 12 months

 5  from all sources described in subsections (4) and (5) and

 6  paragraph (7)(a), the association shall not accept any new

 7  claims without express authority from the Legislature. Nothing

 8  herein shall preclude the association from accepting any claim

 9  if the injury occurred 18 months or more prior to the

10  effective date of this suspension. Within 30 days of the

11  effective date of this suspension, the association shall

12  notify the Governor, the Speaker of the House of

13  Representatives, the President of the Senate, the Department

14  of Financial Services Insurance, the Agency for Health Care

15  Administration, the Department of Health, and the Department

16  of Business and Professional Regulation of this suspension.

17         Section 858.  Paragraph (c) of subsection (1),

18  subsection (2), and paragraph (d) of subsection (5) of section

19  766.315, Florida Statutes, are amended to read:

20         766.315  Florida Birth-Related Neurological Injury

21  Compensation Association; board of directors.--

22         (1)

23         (c)  The directors shall be appointed by the Chief

24  Financial Officer Insurance Commissioner as follows:

25         1.  One citizen representative.

26         2.  One representative of participating physicians.

27         3.  One representative of hospitals.

28         4.  One representative of casualty insurers.

29         5.  One representative of physicians other than

30  participating physicians.

31  

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 1         (2)(a)  The Chief Financial Officer Insurance

 2  Commissioner may select the representative of the

 3  participating physicians from a list of at least three names

 4  to be recommended by the Florida Obstetric and Gynecologic

 5  Society; the representative of hospitals from a list of at

 6  least three names to be recommended by the Florida Hospital

 7  Association; the representative of casualty insurers from a

 8  list of at least three names, one of which is recommended by

 9  the American Insurance Association, one by the Alliance of

10  American Insurers, and one by the National Association of

11  Independent Insurers; and the representative of physicians

12  other than participating physicians from a list of three names

13  to be recommended by the Florida Medical Association and a

14  list of three names to be recommended by the Florida

15  Osteopathic Medical Association.  In no case shall the Chief

16  Financial Officer Insurance Commissioner be bound to make any

17  appointment from among the nominees of such respective

18  associations.

19         (b)  The Chief Financial Officer Insurance Commissioner

20  shall promptly notify the appropriate medical association upon

21  the occurrence of any vacancy, and like nominations may be

22  made for the filling of the vacancy.

23         (5)

24         (d)  Annually, the association shall furnish audited

25  financial reports to any plan participant upon request, to the

26  Department of Financial Services Insurance, and to the Joint

27  Legislative Auditing Committee. The reports must be prepared

28  in accordance with accepted accounting procedures and must

29  include such information as may be required by the Department

30  of Financial Services Insurance or the Joint Legislative

31  Auditing Committee.  At any time determined to be necessary,

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 1  the Department of Financial Services Insurance or the Joint

 2  Legislative Auditing Committee may conduct an audit of the

 3  plan.

 4         Section 859.  Subsection (3), paragraphs (a) and (d) of

 5  subsection (6), and subsection (7) of section 768.28, Florida

 6  Statutes, are amended to read:

 7         768.28  Waiver of sovereign immunity in tort actions;

 8  recovery limits; limitation on attorney fees; statute of

 9  limitations; exclusions; indemnification; risk management

10  programs.--

11         (3)  Except for a municipality and the Spaceport

12  Florida Authority, the affected agency or subdivision may, at

13  its discretion, request the assistance of the Department of

14  Financial Services Insurance in the consideration, adjustment,

15  and settlement of any claim under this act.

16         (6)(a)  An action may not be instituted on a claim

17  against the state or one of its agencies or subdivisions

18  unless the claimant presents the claim in writing to the

19  appropriate agency, and also, except as to any claim against a

20  municipality or the Spaceport Florida Authority, presents such

21  claim in writing to the Department of Financial Services

22  Insurance, within 3 years after such claim accrues and the

23  Department of Financial Services Insurance or the appropriate

24  agency denies the claim in writing; except that, if such claim

25  is for contribution pursuant to s. 768.31, it must be so

26  presented within 6 months after the judgment against the

27  tortfeasor seeking contribution has become final by lapse of

28  time for appeal or after appellate review or, if there is no

29  such judgment, within 6 months after the tortfeasor seeking

30  contribution has either discharged the common liability by

31  

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 1  payment or agreed, while the action is pending against her or

 2  him, to discharge the common liability.

 3         (d)  For purposes of this section, complete, accurate,

 4  and timely compliance with the requirements of paragraph (c)

 5  shall occur prior to settlement payment, close of discovery or

 6  commencement of trial, whichever is sooner; provided the

 7  ability to plead setoff is not precluded by the delay. This

 8  setoff shall apply only against that part of the settlement or

 9  judgment payable to the claimant, minus claimant's reasonable

10  attorney's fees and costs.  Incomplete or inaccurate

11  disclosure of unpaid adjudicated claims due the state, its

12  agency, officer, or subdivision, may be excused by the court

13  upon a showing by the preponderance of the evidence of the

14  claimant's lack of knowledge of an adjudicated claim and

15  reasonable inquiry by, or on behalf of, the claimant to obtain

16  the information from public records. Unless the appropriate

17  agency had actual notice of the information required to be

18  disclosed by paragraph (c) in time to assert a setoff, an

19  unexcused failure to disclose shall, upon hearing and order of

20  court, cause the claimant to be liable for double the original

21  undisclosed judgment and, upon further motion, the court shall

22  enter judgment for the agency in that amount.  The failure of

23  the Department of Financial Services Insurance or the

24  appropriate agency to make final disposition of a claim within

25  6 months after it is filed shall be deemed a final denial of

26  the claim for purposes of this section.  For purposes of this

27  subsection, in medical malpractice actions, the failure of the

28  Department of Financial Services Insurance or the appropriate

29  agency to make final disposition of a claim within 90 days

30  after it is filed shall be deemed a final denial of the claim.

31  

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 1  The provisions of this subsection do not apply to such claims

 2  as may be asserted by counterclaim pursuant to s. 768.14.

 3         (7)  In actions brought pursuant to this section,

 4  process shall be served upon the head of the agency concerned

 5  and also, except as to a defendant municipality or the

 6  Spaceport Florida Authority, upon the Department of Financial

 7  Services Insurance; and the department or the agency concerned

 8  shall have 30 days within which to plead thereto.

 9         Section 860.  Subsection (5) of section 790.001,

10  Florida Statutes, is amended to read:

11         790.001  Definitions.--As used in this chapter, except

12  where the context otherwise requires:

13         (5)  "Explosive" means any chemical compound or mixture

14  that has the property of yielding readily to combustion or

15  oxidation upon application of heat, flame, or shock, including

16  but not limited to dynamite, nitroglycerin, trinitrotoluene,

17  or ammonium nitrate when combined with other ingredients to

18  form an explosive mixture, blasting caps, and detonators; but

19  not including:

20         (a)  Shotgun shells, cartridges, or ammunition for

21  firearms;

22         (b)  Fireworks as defined in s. 791.01;

23         (c)  Smokeless propellant powder or small arms

24  ammunition primers, if possessed, purchased, sold,

25  transported, or used in compliance with s. 552.241;

26         (d)  Black powder in quantities not to exceed that

27  authorized by chapter 552, or by any rules adopted or

28  regulations promulgated thereunder by the Department of

29  Financial Services Insurance, when used for, or intended to be

30  used for, the manufacture of target and sporting ammunition or

31  for use in muzzle-loading flint or percussion weapons.

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 1  

 2  The exclusions contained in paragraphs (a)-(d) do not apply to

 3  the term "explosive" as used in the definition of "firearm" in

 4  subsection (6).

 5         Section 861.  Section 790.1612, Florida Statutes, is

 6  amended to read:

 7         790.1612  Authorization for governmental manufacture,

 8  possession, and use of destructive devices.--The governing

 9  body of any municipality or county and the Division of State

10  Fire Marshal of the Department of Financial Services Insurance

11  have the power to authorize the manufacture, possession, and

12  use of destructive devices as defined in s. 790.001(4).

13         Section 862.  Subsection (2) of section 791.01, Florida

14  Statutes, is amended to read:

15         791.01  Definitions.--As used in this chapter, the

16  term:

17         (2)  "Division" means the Division of the State Fire

18  Marshal of the Department of Financial Services Insurance.

19         Section 863.  Paragraph (b) of subsection (3) of

20  section 791.015, Florida Statutes, is amended to read:

21         791.015  Registration of manufacturers, distributors,

22  wholesalers, and retailers of sparklers.--

23         (3)  FEES.--

24         (b)  Revenue from registration fee payments shall be

25  deposited in the Insurance Commissioner's Regulatory Trust

26  Fund for the purposes of implementing the registration and

27  testing provisions of this chapter.

28         Section 864.  Section 817.16, Florida Statutes, is

29  amended to read:

30         817.16  False reports, etc., by officers of banks,

31  trust companies, etc., under supervision of Department of

                                 829

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 1  Banking and Finance with intent to defraud.--Any officer,

 2  director, agent or clerk of any bank, trust company, building

 3  and loan association, small loan licensee, credit union, or

 4  other similar corporation under the supervision of the

 5  Department of Financial Services or formerly the Department of

 6  Banking and Finance, who willfully and knowingly subscribes or

 7  exhibits any false paper with intent to deceive any person

 8  authorized to examine as to the records of such bank, trust

 9  company, building and loan association, small loan licensee,

10  credit union, or other corporation under the supervision of

11  the Department of Financial Services or formerly the

12  Department of Banking and Finance, or willfully and knowingly

13  subscribes to or makes any false reports to the Department of

14  Financial Services or subscribed to or made any such false

15  report to the Department of Banking and Finance or causes to

16  be published any false report, shall be guilty of a felony of

17  the third degree, punishable as provided s. 775.082 or s.

18  775.083.

19         Section 865.  Paragraph (b) of subsection (1) and

20  subsection (10) of section 817.234, Florida Statutes, are

21  amended to read:

22         817.234  False and fraudulent insurance claims.--

23         (1)

24         (b)  All claims and application forms shall contain a

25  statement that is approved by the Department of Financial

26  Services which Insurance that clearly states in substance the

27  following: "Any person who knowingly and with intent to

28  injure, defraud, or deceive any insurer files a statement of

29  claim or an application containing any false, incomplete, or

30  misleading information is guilty of a felony of the third

31  degree."  This paragraph shall not apply to reinsurance

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 1  contracts, reinsurance agreements, or reinsurance claims

 2  transactions.

 3         (10)  As used in this section, the term "insurer" means

 4  any insurer, health maintenance organization, self-insurer,

 5  self-insurance fund, or other similar entity or person

 6  regulated under chapter 440 or chapter 641 or by the

 7  Department of Financial Services Insurance under the Florida

 8  Insurance Code.

 9         Section 866.  Section 839.06, Florida Statutes, is

10  amended to read:

11         839.06  Collectors not to deal in warrants, etc.;

12  removal.--No tax collector of any county shall, either

13  directly or indirectly, purchase or receive in exchange any

14  Chief Financial Officer's Comptroller's warrants, county

15  orders, jurors' certificates or school district orders for a

16  less amount than expressed on the face of such orders or

17  demand, and any such person so offending shall, for each

18  offense, be deemed guilty of a misdemeanor of the first

19  degree, punishable as provided in s. 775.083, and be removed

20  from office.

21         Section 867.  Paragraph (d) of subsection (5) and

22  paragraph (c) of subsection (13) of section 849.086, Florida

23  Statutes, are amended to read:

24         849.086  Cardrooms authorized.--

25         (5)  LICENSE REQUIRED; APPLICATION; FEES.--No person

26  may operate a cardroom in this state unless such person holds

27  a valid cardroom license issued pursuant to this section.

28         (d)  The annual cardroom license fee shall be $1,000

29  for the first table and $500 for each additional table to be

30  operated at the cardroom.  This license fee shall be deposited

31  

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 1  by the division with the Chief Financial Officer Treasurer to

 2  the credit of the Pari-mutuel Wagering Trust Fund.

 3         (13)  TAXES AND OTHER PAYMENTS.--

 4         (c)  Payment of the admission tax and gross receipts

 5  tax imposed by this section shall be paid to the division. The

 6  division shall deposit these sums with the Chief Financial

 7  Officer Treasurer, one-half being credited to the Pari-mutuel

 8  Wagering Trust Fund and one-half being credited to the General

 9  Revenue Fund.  The cardroom licensee shall remit to the

10  division payment for the admission tax, the gross receipts

11  tax, and the licensee fees.  Such payments shall be remitted

12  to the division on the fifth day of each calendar month for

13  taxes and fees imposed for the preceding month's cardroom

14  activities.  Licensees shall file a report under oath by the

15  fifth day of each calendar month for all taxes remitted during

16  the preceding calendar month.  Such report shall, under oath,

17  indicate the total of all admissions, the cardroom activities

18  for the preceding calendar month, and such other information

19  as may be prescribed by the division.

20         Section 868.  Section 849.33, Florida Statutes, is

21  amended to read:

22         849.33  Judgment and collection of money;

23  execution.--Any judgment recovered in such a suit shall

24  adjudge separately the amounts recovered for the use of the

25  state, and the plaintiff shall not have execution therefor,

26  and such amounts shall not be paid to the plaintiff, but shall

27  be payable to the state attorney, who shall promptly transmit

28  the sums collected by him or her to the Chief Financial

29  Officer State Treasurer. The state attorney shall diligently

30  seek the collection of such amounts and may cause a separate

31  execution to issue for the collection thereof.

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 1         Section 869.  Subsection (1) of section 860.154,

 2  Florida Statutes, is amended to read:

 3         860.154  Florida Motor Vehicle Theft Prevention

 4  Authority.--

 5         (1)  There is hereby established within the Department

 6  of Legal Affairs the Florida Motor Vehicle Theft Prevention

 7  Authority, which shall exercise its powers, duties, and

 8  responsibilities independently of the department.  The

 9  purposes, powers, and duties of the authority shall be vested

10  in and exercised by a board of directors.  There shall be nine

11  members of the board, consisting of the Chief Financial

12  Officer commissioner of the Department of Insurance or his or

13  her the commissioner's designee; the executive director of the

14  Department of Highway Safety and Motor Vehicles; the executive

15  director of the Department of Law Enforcement; six additional

16  members, each of whom shall be appointed by the Attorney

17  General: a state attorney or city or county executive, a chief

18  executive law enforcement official, a sheriff, one

19  representative of companies authorized to sell motor vehicle

20  insurance, one representative of insurers authorized to write

21  motor vehicle insurance in this state, and one representative

22  of purchasers of motor vehicle insurance in this state who is

23  not employed by or connected with the business of insurance.

24         Section 870.  Subsection (7) of section 860.157,

25  Florida Statutes, is amended to read:

26         860.157  Powers and duties of the authority.--The

27  authority shall have the following powers, duties, and

28  responsibilities:

29         (7)  To report annually, on or before January 1, to the

30  Governor, Attorney General, Chief Financial Officer Insurance

31  Commissioner, President of the Senate, Speaker of the House of

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 1  Representatives, Minority Leader of the House of

 2  Representatives, Minority Leader of the Senate, and

 3  appropriate committee chairs in the House of Representatives

 4  and the Senate, and, upon request, to members of the general

 5  public on the authority's activities in the preceding year.

 6         Section 871.  Subsections (1) and (2) of section

 7  896.102, Florida Statutes, are amended to read:

 8         896.102  Currency more than $10,000 received in trade

 9  or business; report required; noncompliance penalties.--

10         (1)  All persons engaged in a trade or business, except

11  for those financial institutions that report to the Chief

12  Financial Officer Comptroller pursuant to s. 655.50, who

13  receive more than $10,000 in currency, including foreign

14  currency, in one transaction, or who receive this amount

15  through two or more related transactions, must complete and

16  file with the Department of Revenue the information required

17  pursuant to 26 U.S.C. s. 6050I., concerning returns relating

18  to currency received in trade or business. Any person who

19  willfully fails to comply with the reporting requirements of

20  this subsection is guilty of a misdemeanor of the first

21  degree, punishable as provided in s. 775.082, or by a fine not

22  exceeding $250,000 or twice the value of the amount of the

23  currency transaction involved, whichever is greater, or by

24  both such imprisonment and fine. For a second or subsequent

25  conviction of a violation of the provisions of this

26  subsection, the maximum fine that may be imposed is $500,000

27  or quintuple the value of the amount of the currency

28  transaction involved, whichever is greater.

29         (2)  The Department of Revenue shall enforce compliance

30  with the provisions of subsection (1) and is to be the

31  custodian of all information and documents filed pursuant to

                                 834

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 1  subsection (1). Such information and documents are

 2  confidential and exempt from the provisions of s. 119.07(1)

 3  and s. 24(a), Art. I of the State Constitution; however, the

 4  department must provide any report filed under this section,

 5  or information contained therein, to federal, state, and local

 6  law enforcement and prosecutorial agencies and to the

 7  Department of Financial Services Banking and Finance, and the

 8  information is subject to disclosure pursuant to subpoena as

 9  provided in s. 213.053(8).

10         Section 872.  Section 903.101, Florida Statutes, is

11  amended to read:

12         903.101  Sureties; licensed persons; to have equal

13  access.--Subject to rules adopted regulations promulgated by

14  the Department of Financial Services Insurance, every surety

15  who meets the requirements of ss.  903.05, 903.06, 903.08, and

16  903.09, and every person who is currently licensed by the

17  Department of Financial Services Insurance and registered as

18  required by s. 648.42 shall have equal access to the jails of

19  this state for the purpose of making bonds.

20         Section 873.  Subsection (1) of section 903.27, Florida

21  Statutes, is amended to read:

22         903.27  Forfeiture to judgment.--

23         (1)  If the forfeiture is not paid or discharged by

24  order of a court of competent jurisdiction within 60 days and

25  the bond is secured other than by money and bonds authorized

26  in s. 903.16, the clerk of the circuit court for the county

27  where the order was made shall enter a judgment against the

28  surety for the amount of the penalty and issue execution.

29  Within 10 days, the clerk shall furnish the Department of

30  Financial Services Insurance with a certified copy of the

31  judgment docket and shall furnish the surety company at its

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 1  home office a copy of the judgment, which shall include the

 2  power of attorney number of the bond and the name of the

 3  executing agent.  If the judgment is not paid within 35 days,

 4  the clerk shall furnish the Department of Financial Services

 5  Insurance and the sheriff of the county in which the bond was

 6  executed, or the official responsible for operation of the

 7  county jail, if other than the sheriff, two copies of the

 8  judgment and a certificate stating that the judgment remains

 9  unsatisfied. When and if the judgment is properly paid or an

10  order to vacate the judgment has been entered by a court of

11  competent jurisdiction, the clerk shall immediately notify the

12  sheriff, or the official responsible for the operation of the

13  county jail, if other than the sheriff, and the Department of

14  Financial Services Insurance, if the department had been

15  previously notified of nonpayment, of such payment or order to

16  vacate the judgment.  The clerk shall also immediately prepare

17  and record in the public records a satisfaction of the

18  judgment or record the order to vacate judgment. If the

19  defendant is returned to the county of jurisdiction of the

20  court, whenever a motion to set aside the judgment is filed,

21  the operation of this section is tolled until the court makes

22  a disposition of the motion.

23         Section 874.  Paragraphs (a) and (b) of subsection (5)

24  of section 925.037, Florida Statutes, are amended to read:

25         925.037  Reimbursement of counties for fees paid to

26  appointed counsel; circuit conflict committees.--

27         (5)(a)  The clerk of the circuit court in each county

28  shall submit to the Justice Administrative Commission a

29  statement of conflict counsel fees at least annually. Such

30  statement shall identify total expenditures incurred by the

31  county on fees of counsel appointed by the court pursuant to

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 1  this section where such fees are taxed against the county by

 2  judgment of the court. On the basis of such statement of

 3  expenditures, the Justice Administrative Commission shall pay

 4  state conflict case appropriations to the county. The

 5  statement of conflict counsel fees shall be on a form

 6  prescribed by the Justice Administrative Commission in

 7  consultation with the Legislative Committee on

 8  Intergovernmental Relations and the Chief Financial Officer

 9  Comptroller. Such form also shall provide for the separate

10  reporting of total expenditures made by the county on attorney

11  fees in cases in which other counsel were appointed by the

12  court where the public defender was unable to accept the case

13  as a result of a stated lack of resources. To facilitate such

14  expenditure identification and reporting, the public defender,

15  within 7 days of the appointment of such counsel by the court,

16  shall report to the clerk of circuit court case-related

17  information sufficient to permit the clerk to identify

18  separately county expenditures on fees of such counsel. No

19  county shall be required to submit any additional information

20  to the commission on an annual or other basis in order to

21  document or otherwise verify the expenditure information

22  provided on the statement of conflict counsel fees form,

23  except as provided in paragraph (c).

24         (b)  Before September 30 of each year, the clerk of the

25  circuit court in each county shall submit to the Justice

26  Administrative Commission a report of conflict counsel

27  expenses and costs for the previous local government fiscal

28  year. Such report shall identify expenditures incurred by the

29  county on expenses and costs of counsel appointed by the court

30  pursuant to this section where such expenses and costs are

31  taxed against the county by judgment of the court. Such report

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 1  of expenditures shall be on a form prescribed by the

 2  commission in consultation with the Legislative Committee on

 3  Intergovernmental Relations and the Chief Financial Officer

 4  Comptroller, provided that such form shall at a minimum

 5  separately identify total county expenditures for witness fees

 6  and expenses, court reporter fees and costs, and defense

 7  counsel travel and per diem. Such form also shall provide for

 8  the separate reporting of total county expenditures on

 9  attorney expenses and costs in cases in which other counsel

10  were appointed by the court where the public defender was

11  unable to accept the case as a result of a stated lack of

12  resources. To facilitate such expenditure identification and

13  reporting, the public defender, within 7 days of the

14  appointment of such counsel by the court, shall report to the

15  clerk of the circuit court case-related information sufficient

16  to permit the clerk to identify separately county expenditures

17  on expenses and costs of such counsel. No county shall be

18  required to submit any additional information to the Justice

19  Administrative Commission on an annual or other basis in order

20  to document or otherwise verify the expenditure information

21  provided on the report of conflict counsel expenses and costs

22  form, except as provided in paragraph (c).

23         Section 875.  Paragraph (b) of subsection (8) of

24  section 932.7055, Florida Statutes, is amended to read:

25         932.7055  Disposition of liens and forfeited

26  property.--

27         (8)

28         (b)  The Department of Law Enforcement shall submit an

29  annual report to the criminal justice committees of the House

30  of Representatives and of the Senate compiling the information

31  and data related in the semiannual reports submitted by the

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 1  law enforcement agencies.  The annual report shall also

 2  contain a list of law enforcement agencies which have failed

 3  to meet the reporting requirements and a summary of any action

 4  which has been taken against the noncomplying agency by the

 5  Office of the Chief Financial Officer Comptroller.

 6         Section 876.  Section 932.707, Florida Statutes, is

 7  amended to read:

 8         932.707  Penalty for noncompliance with reporting

 9  requirements.--Any seizing agency which fails to comply with

10  the reporting requirements as described in s. 932.7055(8)(a),

11  is subject to a civil fine of $5,000 payable to the General

12  Revenue Fund.  However, such agency will not be subject to the

13  fine if, within 60 days of receipt of written notification

14  from the Department of Law Enforcement of the noncompliance

15  with the reporting requirements of the Florida Contraband

16  Forfeiture Act, the agency substantially complies with said

17  requirements.  The Department of Law Enforcement shall submit

18  any substantial noncompliance to the Office of the Chief

19  Financial Officer Comptroller, which shall be responsible for

20  the enforcement of this section.

21         Section 877.  Subsection (1) of section 938.27, Florida

22  Statutes, is amended to read:

23         938.27  Judgment for costs on conviction.--

24         (1)  In all criminal cases the costs of prosecution,

25  including investigative costs incurred by law enforcement

26  agencies, by fire departments for arson investigations, and by

27  investigations of the Division of Financial Investigations of

28  the Department of Financial Services Banking and Finance, if

29  requested and documented by such agencies, shall be included

30  and entered in the judgment rendered against the convicted

31  person.

                                 839

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 1         Section 878.  Section 939.13, Florida Statutes, is

 2  amended to read:

 3         939.13  Power of Chief Financial Officer

 4  Comptroller.--The Chief Financial Officer Comptroller may

 5  audit and approve or disapprove any claim or any item thereof

 6  against the state for costs, fees or expenses of criminal

 7  cases prosecuted in the name of the state, and for which the

 8  state is liable, if the Chief Financial Officer Comptroller is

 9  satisfied that the same is legal, just, necessary and correct

10  or otherwise, and may prescribe forms and methods for the

11  same.  The Chief Financial Officer Comptroller shall not

12  dispense with any of the requirements of law relative to the

13  auditing and payment of such accounts, but may prescribe

14  additional requirements.

15         Section 879.  Paragraph (h) of subsection (1) of

16  section 943.031, Florida Statutes, is amended to read:

17         943.031  Florida Violent Crime and Drug Control

18  Council.--The Legislature finds that there is a need to

19  develop and implement a statewide strategy to address violent

20  criminal activity and drug control efforts by state and local

21  law enforcement agencies, including investigations of illicit

22  money laundering. In recognition of this need, the Florida

23  Violent Crime and Drug Control Council is created within the

24  department. The council shall serve in an advisory capacity to

25  the department.

26         (1)  MEMBERSHIP.--The council shall consist of 14

27  members, as follows:

28         (h)  The Chief Financial Officer Comptroller, or a

29  designate.

30  

31  

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 1  The Governor, when making appointments under this subsection,

 2  must take into consideration representation by geography,

 3  population, ethnicity, and other relevant factors to ensure

 4  that the membership of the council is representative of the

 5  state at large. Designates appearing on behalf of a council

 6  member who is unable to attend a meeting of the council are

 7  empowered to vote on issues before the council to the same

 8  extent the designating council member is so empowered.

 9         Section 880.  Subsection (2) of section 943.032,

10  Florida Statutes, is amended to read:

11         943.032  Financial Crime Analysis Center and Financial

12  Transaction Database.--

13         (2)  The department shall compile information and data

14  available from financial transaction reports required to be

15  submitted by state or federal law that are provided to the

16  Department of Financial Services Banking and Finance, to the

17  Department of Revenue, or to which the department otherwise

18  has access. Information and data so received shall be utilized

19  by the department in the Financial Transaction Database.  The

20  department shall implement a system utilizing the database

21  that allows data review and processing to reveal patterns,

22  trends, and correlations that are indicative of money

23  laundering or other financial transactions indicative of

24  criminal activity.  The department shall, in consultation with

25  the Department of Financial Services Banking and Finance and

26  the Department of Revenue, establish the methods and

27  parameters by which information and data received by the

28  Department of Financial Services Banking and Finance or the

29  Department of Revenue are transferred to the department for

30  inclusion in the database.  Information developed in or

31  through the use of the database shall be made available to law

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 1  enforcement agencies and prosecutors in this state in a manner

 2  defined by the department and as allowed by state or federal

 3  law or regulation.  All information contained in the database

 4  shall be considered "active criminal intelligence" or "active

 5  criminal investigative information" as defined in s. 119.011.

 6         Section 881.  Subsections (3) and (4) of section

 7  944.516, Florida Statutes, are amended to read:

 8         944.516  Money or other property received for personal

 9  use or benefit of inmate; deposit; disposition of unclaimed

10  trust funds.--The Department of Corrections shall protect the

11  financial interest of the state with respect to claims which

12  the state may have against inmates in state institutions under

13  its supervision and control and shall administer money and

14  other property received for the personal benefit of such

15  inmates.  In carrying out the provisions of this section, the

16  department may delegate any of its enumerated powers and

17  duties affecting inmates of an institution to the warden or

18  regional director who shall personally, or through designated

19  employees of his or her personal staff under his or her direct

20  supervision, exercise such powers or perform such duties.

21         (3)  Moneys received by the department in payment of

22  claims of the state against inmates shall be transmitted to

23  the Chief Financial Officer Treasurer for deposit into the

24  General Revenue Fund.

25         (4)  Upon the death of any inmate in an institution

26  affected by the provisions of this section, any unclaimed

27  money held for the inmate in trust by the department or by the

28  Chief Financial Officer Treasurer shall be applied first to

29  the payment of any unpaid state claim against the inmate, and

30  any balance remaining unclaimed for a period of 1 year shall

31  escheat to the state as unclaimed funds held by fiduciaries.

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 1         Section 882.  Section 946.33, Florida Statutes, is

 2  amended to read:

 3         946.33  Disbursements from fund.--The funds in the

 4  Correctional Work Program Trust Fund shall be deposited in the

 5  State Treasury and paid out only on warrants drawn by the

 6  Chief Financial Officer Comptroller, duly approved by the

 7  Department of Corrections.  The department shall maintain all

 8  necessary records and accounts relative to such funds.

 9         Section 883.  Subsection (2) of section 946.509,

10  Florida Statutes, is amended to read:

11         946.509  Insurance of property leased or acquired by

12  the corporation.--

13         (2)  Coverage under the State Risk Management Trust

14  Fund of property leased to or otherwise acquired by the

15  corporation shall be secured and maintained through the

16  existing policy and account of the Department of Corrections

17  with the Division of Risk Management of the Department of

18  Financial Services Insurance.  All matters, including premium

19  calculations, assessments and payments, retrospective premium

20  adjustments, reporting requirements, and other requirements,

21  concerning coverage of such property under the State Risk

22  Management Trust Fund shall be conducted as if all such

23  property were owned solely by the department. Except as

24  required by chapter 284, if the corporation finds that it is

25  more economical to do so, the corporation may secure private

26  insurance coverage on all or a portion of the activities of or

27  properties used by the corporation. If coverage through the

28  State Risk Management Trust Fund is not secured, the

29  corporation must present documentation of insurance coverage

30  to the Division of Risk Management equal to the coverage that

31  

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 1  could otherwise be provided by the State Risk Management Trust

 2  Fund.

 3         Section 884.  Section 946.510, Florida Statutes, is

 4  amended to read:

 5         946.510  Insurance by Division of Risk

 6  Management.--Pursuant to the applicable provisions of chapter

 7  284, the Division of Risk Management of the Department of

 8  Financial Services Insurance is authorized to insure the

 9  corporation under the same general terms and conditions as the

10  Department of Corrections was insured by the division prior to

11  the corporation leasing the correctional work programs as

12  authorized by this chapter.

13         Section 885.  Section 946.517, Florida Statutes, is

14  amended to read:

15         946.517  Corporation records.--Corporation records are

16  public records; however, proprietary confidential business

17  information shall be confidential and exempt from the

18  provisions of s. 119.07(1) and s. 24(a), Art. I of the State

19  Constitution. However, the Legislature, the Chief Financial

20  Officer Comptroller, and the Governor, pursuant to their

21  oversight and auditing functions, shall have access to all

22  proprietary confidential business information upon request and

23  without subpoena and shall retain the confidentiality of

24  information so received. "Proprietary confidential business

25  information" means information regardless of form or

26  characteristics, that is owned or controlled by the

27  corporation; is intended to be and is treated by the

28  corporation as private and the disclosure of the information

29  would cause harm to the corporation's business operations; has

30  not been disclosed unless disclosed pursuant to a statutory

31  provision, an order of a court or administrative body, a

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 1  legislative proceeding pursuant to s. 5, Art. III of the State

 2  Constitution, or a private agreement that provides that the

 3  information may be released to the public; and, which is

 4  information regarding:

 5         (1)  Internal auditing controls and reports of internal

 6  auditors.

 7         (2)  Matters reasonably encompassed in privileged

 8  attorney-client communications.

 9         (3)  Security measures, systems, or procedures.

10         (4)  Information concerning bids or other contractual

11  data, banking records, and credit agreements, the disclosure

12  of which would impair the efforts of the corporation to

13  contract for goods or services on favorable terms.

14         (5)  Information relating to private contractual data,

15  the disclosure of which would impair the competitive interest

16  of the provider of the information.

17         (6)  Corporate officer, employee personnel, or inmate

18  worker information unrelated to compensation, duties,

19  qualifications, or responsibilities.

20         Section 886.  Subsections (1) and (2) of section

21  946.522, Florida Statutes, are amended to read:

22         946.522  Prison Industries Trust Fund.--

23         (1)  The Prison Industries Trust Fund is created, to be

24  administered by the Department of Financial Services Banking

25  and Finance. The trust fund shall consist of moneys authorized

26  to be deducted pursuant to 18 U.S.C. s. 1761(c) and the

27  applicable federal guidelines, to be appropriated by the

28  Legislature, and moneys deposited by the corporation

29  authorized under this part to manage and operate correctional

30  work programs. The appropriated funds shall be used by the

31  corporation for purposes of construction or renovation of its

                                 845

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 1  facilities or for the expansion or establishment of

 2  correctional work programs as described in this part or for

 3  prison industries enhancement (PIE) programs as authorized

 4  under s. 946.523.

 5         (2)  The funds must be deposited in the State Treasury

 6  and may be paid out only on warrants drawn by the Chief

 7  Financial Officer Comptroller upon receipt of a corporate

 8  resolution that has been duly authorized by the board of

 9  directors of the corporation authorized under this part to

10  manage and operate correctional work programs. The corporation

11  shall maintain all necessary records and accounts relative to

12  such funds.

13         Section 887.  Paragraph (f) of subsection (3) of

14  section 946.525, Florida Statutes, is amended to read:

15         946.525  Participation by the corporation in the state

16  group health insurance and prescription drug programs.--

17         (3)  If the Department of Management Services

18  determines that the corporation is eligible to enroll, the

19  corporation must agree to the following terms and conditions:

20         (f)  If the corporation fails to make the payments

21  required by this section to fully reimburse the state, the

22  Department of Revenue or the Department of Financial Services

23  Banking and Finance shall, upon the request of the Department

24  of Management Services, deduct the amount owed by the employer

25  from any funds to be distributed by it to the corporation. The

26  amounts so deducted shall be transferred to the Department of

27  Management Services for further distribution to the trust

28  funds in accordance with this chapter.

29         Section 888.  Subsection (1) of section 947.12, Florida

30  Statutes, is amended to read:

31         947.12  Members, employees, expenses.--

                                 846

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 1         (1)  The members of the commission and its employees

 2  shall be reimbursed for travel expenses as provided in s.

 3  112.061. All bills for expenses shall be properly receipted,

 4  audited, and approved and forwarded to the Chief Financial

 5  Officer Comptroller and shall be paid in a manner and form as

 6  the bills for the expenses of the several departments of the

 7  state government are paid.  All expenses, including salaries

 8  and other compensation, shall be paid from the General Revenue

 9  Fund and within the appropriation as fixed therefor by the

10  Legislature.  Such expenses shall be paid by the Chief

11  Financial Officer Treasurer upon proper warrants issued by the

12  Comptroller of the state, drawn upon vouchers and requisitions

13  approved by the commission, and signed by the Comptroller.

14         Section 889.  Subsection (8) of section 950.002,

15  Florida Statutes, is amended to read:

16         950.002  County work camps.--

17         (8)  Pursuant to the applicable provisions of chapter

18  284, the Division of Risk Management of the Department of

19  Financial Services Insurance is authorized to insure any

20  county work camp facility established pursuant to this act

21  under the same general terms and conditions as the Department

22  of Corrections is insured by the division for any of its

23  comparable work camps.

24         Section 890.  Paragraph (b) of subsection (1) of

25  section 957.04, Florida Statutes, is amended to read:

26         957.04  Contract requirements.--

27         (1)  A contract entered into under this chapter for the

28  operation of private correctional facilities shall maximize

29  the cost savings of such facilities and shall:

30         (b)  Indemnify the state and the department, including

31  their officials and agents, against any and all liability,

                                 847

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 1  including, but not limited to, civil rights liability.  Proof

 2  of satisfactory insurance is required in an amount to be

 3  determined by the commission, following consultation with the

 4  Division of Risk Management of the Department of Financial

 5  Services Insurance.  Not less than 30 days prior to the

 6  release of each request for proposals by the commission, the

 7  commission shall request the written recommendation of the

 8  division regarding indemnification of the state and the

 9  department under this paragraph.  Within 15 days after such

10  request, the division shall provide a written recommendation

11  to the commission regarding the amount and manner of such

12  indemnification.  The commission shall adopt the division's

13  recommendation unless, based on substantial competent

14  evidence, the commission determines a different amount and

15  manner of indemnification is sufficient.

16         Section 891.  Paragraph (a) of subsection (6) and

17  subsection (8) of section 985.406, Florida Statutes, are

18  amended to read:

19         985.406  Juvenile justice training academies

20  established; Juvenile Justice Standards and Training

21  Commission created; Juvenile Justice Training Trust Fund

22  created.--

23         (6)  SCHOLARSHIPS AND STIPENDS.--

24         (a)  By rule, the commission shall establish criteria

25  to award scholarships or stipends to qualified juvenile

26  justice personnel who are residents of the state who want to

27  pursue a bachelor's or associate in arts degree in juvenile

28  justice or a related field. The department shall handle the

29  administration of the scholarship or stipend. The Department

30  of Education shall handle the notes issued for the payment of

31  the scholarships or stipends. All scholarship and stipend

                                 848

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 1  awards shall be paid from the Juvenile Justice Training Trust

 2  Fund upon vouchers approved by the Department of Education and

 3  properly certified by the Chief Financial Officer Comptroller.

 4  Prior to the award of a scholarship or stipend, the juvenile

 5  justice employee must agree in writing to practice her or his

 6  profession in juvenile justice or a related field for 1 month

 7  for each month of grant or to repay the full amount of the

 8  scholarship or stipend together with interest at the rate of 5

 9  percent per annum over a period not to exceed 10 years.

10  Repayment shall be made payable to the state for deposit into

11  the Juvenile Justice Training Trust Fund.

12         (8)  PARTICIPATION OF CERTAIN PROGRAMS IN THE STATE

13  RISK MANAGEMENT TRUST FUND.--Pursuant to s. 284.30, the

14  Division of Risk Management of the Department of Financial

15  Services Insurance is authorized to insure a private agency,

16  individual, or corporation operating a state-owned training

17  school under a contract to carry out the purposes and

18  responsibilities of any program of the department. The

19  coverage authorized herein shall be under the same general

20  terms and conditions as the department is insured for its

21  responsibilities under chapter 284.

22         Section 892.  Section 985.409, Florida Statutes, is

23  amended to read:

24         985.409  Participation of certain programs in the State

25  Risk Management Trust Fund.--Pursuant to s. 284.30, the

26  Division of Risk Management of the Department of Financial

27  Services Insurance is authorized to insure a private agency,

28  individual, or corporation operating a state-owned training

29  school under a contract to carry out the purposes and

30  responsibilities of any program of the department. The

31  coverage authorized herein shall be under the same general

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 1  terms and conditions as the department is insured for its

 2  responsibilities under chapter 284.

 3         Section 893.  Effective June 30, 2002, paragraphs (a)

 4  and (c) of subsection (1) and subsections (4), (5), (6), (7),

 5  (8), and (9) of section 163.05, Florida Statutes, are amended

 6  to read:

 7         163.05  Small County Technical Assistance Program.--

 8         (1)  Among small counties, the Legislature finds that:

 9         (a)  The percentage of the population of small counties

10  residing in the unincorporated areas is relatively high based

11  on the United States Decennial Census of 2000 and increased

12  substantially between 1980 and 1990.

13         (c)  Fiscal shortfalls persist even though 12 13 of the

14  small counties levied the maximum ad valorem millage

15  authorized in their jurisdictions in 2001 1990 and an

16  additional 15 13 small counties levied between 8 and 10 mills.

17         (4)  The Commissioner of Agriculture Comptroller shall

18  enter into contracts with program providers who shall:

19         (a)  Be a foundation that meets the requirements for

20  nonprofit status under s. 501(c)(3) of the Internal Revenue

21  Code with a governing board which includes in its membership

22  county commissioners and professional staff of the county

23  public agency or private, nonprofit corporation, association,

24  or entity.

25         (b)  Have substantial and documented experience working

26  closely with county governments in providing both educational

27  and technical assistance.

28         (c)(b)  Use existing resources, services, and

29  information that are available from state or local agencies,

30  universities, or the private sector.

31  

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 1         (d)(c)  Seek and accept funding from any public or

 2  private source.

 3         (d)  Annually submit information to assist the

 4  Legislative Committee on Intergovernmental Relations in

 5  preparing a performance review that will include an analysis

 6  of the effectiveness of the program.

 7         (e)  Assist small counties in developing alternative

 8  revenue sources.

 9         (f)  Provide assistance to small counties in the areas

10  such as of financial management, accounting, investing,

11  purchasing, planning and budgeting, debt issuance, public

12  management, management systems, computers and information

13  technology, economic and community development, and public

14  safety management.

15         (g)  Provide for an annual independent financial audit

16  of the program.

17         (h)  In each county served, conduct a needs assessment

18  upon which the assistance provided for that county will be

19  designed.

20         (5)(a)  The Commissioner of Agriculture Comptroller

21  shall issue a request for proposals to provide assistance to

22  small counties. The request for proposals shall be required no

23  more frequently than every third year beginning with fiscal

24  year 2004-2005. All contracts in existence on the effective

25  date of this act between the Comptroller and any other party

26  with respect to the Small County Technical Assistance Program

27  may be accepted by the Commissioner of Agriculture as the

28  party in interest and said contracts shall remain in full

29  force and effect according to their terms. At the request of

30  the Comptroller, the Legislative Committee on

31  

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 1  Intergovernmental Relations shall assist in the preparation of

 2  the request for proposals.

 3         (b)  The Commissioner of Agriculture Comptroller shall

 4  review each contract proposal submitted.

 5         (c)  The Legislative Committee on Intergovernmental

 6  Relations shall review each contract proposal and submit to

 7  the Comptroller, in writing, advisory comments and

 8  recommendations, citing with specificity the reasons for its

 9  recommendations.

10         (c)(d)  The Commissioner of Agriculture Comptroller and

11  the council shall consider the following factors in reviewing

12  contract proposals:

13         1.  The demonstrated capacity of the provider to

14  conduct needs assessments and implement the program as

15  proposed.

16         2.  The number of small counties to be served under the

17  proposal.

18         3.  The cost of the program as specified in a proposed

19  budget.

20         4.  The short-term and long-term benefits of the

21  assistance to small counties.

22         5.  The form and extent to which existing resources,

23  services, and information that are available from state and

24  local agencies, universities, and the private sector will be

25  used by the provider under the contract.

26         (6)  A decision of the Commissioner of Agriculture

27  Comptroller to award a contract under this section is final

28  and shall be in writing with a copy provided to the

29  Legislative Committee on Intergovernmental Relations.

30         (7)  The Comptroller may enter into contracts and

31  agreements with other state and local agencies and with any

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 1  person, association, corporation, or entity other than the

 2  program providers, for the purpose of administering this

 3  section.

 4         (7)(8)  The Commissioner of Agriculture Comptroller

 5  shall provide fiscal oversight to ensure that funds expended

 6  for the program are used in accordance with the contracts

 7  entered into pursuant to subsection (4) and shall conduct a

 8  performance review of the program as may be necessary to

 9  ensure that the goals and objectives of the program are being

10  met.

11         (9)  The Legislative Committee on Intergovernmental

12  Relations shall annually conduct a performance review of the

13  program. The findings of the review shall be presented in a

14  report submitted to the Governor, the President of the Senate,

15  the Speaker of the House of Representatives, and the

16  Comptroller by January 15 of each year.

17         Section 894.  Specific Appropriation 2252 in the

18  2002-2003 General Appropriations Act is hereby repealed and an

19  identical amount is hereby appropriated to the Department of

20  Agriculture and Consumer Services from the General Revenue

21  Fund for the purposes of this act. This section shall take

22  effect June 30, 2002.

23         Section 895.  Paragraph (a) of subsection (7) of

24  section 112.313, Florida Statutes, is amended to read:

25         112.313  Standards of conduct for public officers,

26  employees of agencies, and local government attorneys.--

27         (7)  CONFLICTING EMPLOYMENT OR CONTRACTUAL

28  RELATIONSHIP.--

29         (a)  No public officer or employee of an agency shall

30  have or hold any employment or contractual relationship with

31  any business entity or any agency which is subject to the

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 1  regulation of, or is doing business with, an agency of which

 2  he or she is an officer or employee, excluding those

 3  organizations and their officers who, when acting in their

 4  official capacity, enter into or negotiate a collective

 5  bargaining contract with the state or any municipality,

 6  county, or other political subdivision of the state; nor shall

 7  an officer or employee of an agency have or hold any

 8  employment or contractual relationship that will create a

 9  continuing or frequently recurring conflict between his or her

10  private interests and the performance of his or her public

11  duties or that would impede the full and faithful discharge of

12  his or her public duties.

13         1.  When the agency referred to is that certain kind of

14  special tax district created by general or special law and is

15  limited specifically to constructing, maintaining, managing,

16  and financing improvements in the land area over which the

17  agency has jurisdiction, or when the agency has been organized

18  pursuant to chapter 298, then employment with, or entering

19  into a contractual relationship with, such business entity by

20  a public officer or employee of such agency shall not be

21  prohibited by this subsection or be deemed a conflict per se.

22  However, conduct by such officer or employee that is

23  prohibited by, or otherwise frustrates the intent of, this

24  section shall be deemed a conflict of interest in violation of

25  the standards of conduct set forth by this section.

26         2.  When the agency referred to is a legislative body

27  and the regulatory power over the business entity resides in

28  another agency, or when the regulatory power which the

29  legislative body exercises over the business entity or agency

30  is strictly through the enactment of laws or ordinances, then

31  employment or a contractual relationship with such business

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 1  entity by a public officer or employee of a legislative body

 2  shall not be prohibited by this subsection or be deemed a

 3  conflict.

 4         3.  When the agency referred to consists of the

 5  Governor and members of the Cabinet who possess the power of

 6  appointment, confirmation, or termination and the regulatory

 7  power over the business entity resides in another agency, or

 8  when the regulatory power that the Governor and members of the

 9  Cabinet exercise over the business entity or agency is to

10  adopt rules establishing the organizational structure of the

11  agency, then employment or a contractual relationship with

12  such business entity by the Governor or member of the Cabinet

13  shall not be prohibited by this subsection or be deemed a

14  conflict.

15         Section 896.  Sections 18.03, 18.07, 18.09, 18.091,

16  18.22, 627.0623, 655.019, and 657.067, Florida Statutes, are

17  repealed.

18         Section 897.  If any law that is amended by this act

19  was also amended by a law enacted at the 2002 Regular Session

20  of the Legislature, such laws shall be construed as if they

21  had been enacted at the same session of the Legislature, and

22  full effect should be given to each if that is possible.

23         Section 898.  Except as otherwise expressly provided in

24  this act, this act shall take effect January 7, 2003.

25  

26  

27  

28  

29  

30  

31  

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Establishes the office of Chief Financial Officer.
      Creates the Department of Financial Services and
 4    subdivisions of that department and transfers to it the
      Department of Banking and Finance and the Department of
 5    Insurance. Provides for the appointment, powers, and
      duties of the Chief Financial Officer and the Department
 6    of Financial Services and of the directors of the
      Division of Financial Institutions and Securities and the
 7    Division of Insurance. Redesignates the regulatory trust
      funds of the respective departments. (See bill for
 8    details.)

 9  

10  

11  

12  

13  

14  

15  

16  

17  

18  

19  

20  

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                                 856

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