Senate Bill sb2026c1

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    Florida Senate - 2004                           CS for SB 2026

    By the Committee on Regulated Industries; and Senator Pruitt





    315-2214-04

  1                      A bill to be entitled

  2         An act relating to regulation of professions

  3         under the Department of Business and

  4         Professional Regulation; amending s. 455.32,

  5         F.S.; revising the Management Privatization

  6         Act; providing definitions; authorizing the

  7         department, pursuant to board, commission, or

  8         council request, to establish and contract with

  9         a nonprofit corporation to perform support

10         services specified pursuant to contract for the

11         applicable profession; requiring development of

12         a business case subject to executive and

13         legislative approval; providing corporation

14         organization, powers, duties, and staff;

15         authorizing per diem and reimbursement for

16         travel expenses; requiring adherence to the

17         code of ethics for public officers and

18         employees; providing sovereign immunity;

19         providing for corporation boards of directors

20         and for contract managers; providing contract

21         requirements; establishing financing,

22         reporting, recordkeeping, and audit

23         requirements; providing for quarterly

24         assessment and annual certification of contract

25         compliance; providing requirements in the event

26         any provision of the section is held

27         unconstitutional; amending s. 455.2177, F.S.;

28         revising requirements for the monitoring of

29         continuing education compliance; removing

30         provisions relating to privatization and

31         dispute resolution; revising penalties for

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 1         failure to comply with continuing education

 2         requirements; revising requirements for waiver

 3         of such monitoring; providing rulemaking

 4         authority; amending s. 455.2178, F.S.; revising

 5         reporting requirements for continuing education

 6         providers; removing provisions relating to

 7         private vendors; revising penalties for

 8         noncompliant continuing education providers;

 9         providing for conduct of investigations and

10         prosecutions of noncompliant continuing

11         education providers; providing rulemaking

12         authority; amending s. 455.2179, F.S.; revising

13         continuing education provider and course

14         approval procedures; revising penalties for

15         failing to teach approved course content;

16         providing for conduct of investigations and

17         prosecutions of noncompliant continuing

18         education providers; providing rulemaking

19         authority; amending s. 455.2281, F.S., relating

20         to unlicensed activities; removing a

21         cross-reference to conform; amending s.

22         481.205, F.S., relating to the Board of

23         Architecture and Interior Design; removing a

24         cross-reference to conform; providing an

25         effective date.

26  

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

28  

29         Section 1.  Section 455.32, Florida Statutes, is

30  amended to read:

31         (Substantial rewording of section. See

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 1         s. 455.32, F.S., for present text.)

 2         455.32  Management Privatization Act.--

 3         (1)  This section shall be known by the popular name

 4  the "Management Privatization Act."

 5         (2)  The purpose of this section is to create a model

 6  for contracting with nonprofit corporations to provide

 7  services for the regulation of Florida's professionals which

 8  will ensure a consistent, effective application of regulatory

 9  provisions and appropriate budgetary oversight to achieve the

10  most efficient use of public funds. Nonprofit corporations may

11  be established pursuant to this section to provide

12  administrative, examination, licensing, investigative, and

13  prosecutorial services to any board created within the

14  department pursuant to chapter 20 in accordance with the

15  provisions of this chapter and the applicable practice act. No

16  additional entities may be created to provide these services.

17         (3)  As used in this section, the term:

18         (a)  "Board" means any board, commission, or council

19  created within the department pursuant to chapter 20.

20         (b)  "Corporation" means any nonprofit corporation with

21  which the department contracts pursuant to subsection (14).

22         (c)  "Department" means the Department of Business and

23  Professional Regulation.

24         (d)  "Contract manager" means an employee of the

25  department who serves as a liaison between the department, the

26  board, and the corporation and is responsible for ensuring

27  that the police powers of the state are not exercised by the

28  corporation, while also serving as the contract monitor.

29         (e)  "Business case" means a needs assessment,

30  financial feasibility study, and corporate financial model as

31  specified in paragraph (4).

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 1         (f)  "Performance standards and measurable outcomes"

 2  shall include, but not be limited to, timeliness and

 3  qualitative criteria for the activities specified in paragraph

 4  (6)(o).

 5         (g)  "Secretary" means the Secretary of Business and

 6  Professional Regulation.

 7         (4)  Based upon the request of any board, the

 8  department is authorized to establish and contract with a

 9  nonprofit corporation to provide administrative, examination,

10  licensing, investigative, and prosecutorial services to that

11  board, in accordance with the provisions of this chapter and

12  the applicable practice act and as specified in a contract

13  between the department and the corporation. The privatization

14  request must contain a business case that includes a needs

15  assessment and financial feasibility study performed by the

16  board or an entity commissioned by a majority vote of the

17  board. The needs assessment must contain specific performance

18  standards and measurable outcomes and an evaluation of the

19  department's current and projected performance in regard to

20  those standards. The feasibility study must include the

21  financial status of the board for the current fiscal year and

22  the next 2 fiscal years. A financial model for the corporation

23  must also be developed which includes projected costs and

24  expenses for the first 2 years of operation and specific

25  performance standards and measurable outcomes. The business

26  case must be approved by the Executive Office of the Governor

27  and the Legislative Budget Commission prior to the

28  establishment of the nonprofit corporation.

29         (5)  Any such corporation may hire staff as necessary

30  to carry out its functions. Such staff are not public

31  employees for the purposes of chapter 110 or chapter 112,

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 1  except that the board of directors and the employees of the

 2  corporation are subject to the provisions of s. 112.061 and

 3  part III of chapter 112. The provisions of s. 768.28 apply to

 4  each such corporation, which is deemed to be a corporation

 5  primarily acting as an instrumentality of the state but which

 6  is not an agency within the meaning of s. 20.03(11).

 7         (6)  Each corporation created to perform the functions

 8  provided in this section shall:

 9         (a)  Be a Florida corporation not for profit,

10  incorporated under the provisions of chapter 617.

11         (b)  Provide administrative, examination, licensing,

12  investigative, and prosecutorial services to the board, which

13  services may include unlicensed activity investigations and

14  prosecutions, in accordance with the provisions of this

15  chapter, the applicable practice act, and the contract

16  required by this section.

17         (c)  Receive, hold, and administer property and make

18  only prudent expenditures directly related to the

19  responsibilities of the applicable board and in accordance

20  with the contract required by this section.

21         (d)  Be approved by the department to operate for the

22  benefit of the board and in the best interest of the state.

23         (e)  Operate under a fiscal year that begins on July 1

24  of each year and ends on June 30 of the following year.

25         (f)  Be funded through appropriations allocated to the

26  regulation of the relevant profession from the Professional

27  Regulation Trust Fund pursuant to s. 455.219.

28         (g)  Have a five-member board of directors, three of

29  whom are to be appointed by the applicable board and must be

30  licensees regulated by that board and two of whom are to be

31  appointed by the secretary and are laypersons not regulated by

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 1  that board. Initially, one member shall be appointed for 2

 2  years, two members shall be appointed for 3 years, and two

 3  members shall be appointed for 4 years. One layperson shall be

 4  appointed to a 3-year term and one layperson shall be

 5  appointed to a 4-year term. Thereafter, all appointments shall

 6  be for 4-year terms. No new member shall serve more than two

 7  consecutive terms. Failure to attend three consecutive

 8  meetings shall be deemed a resignation from the board of

 9  directors, and the vacancy shall be filled by a new

10  appointment. No professional board member may also serve on

11  the board of directors for the corporation.

12         (h)  Select its officers in accordance with its bylaws.

13  The members of the board of directors may be removed by the

14  Governor, for the same reasons that a board member may be

15  removed pursuant to s. 455.209.

16         (i)  Select the president of the corporation, who shall

17  manage the operations of the corporation, subject to the

18  approval of the board.

19         (j)  Use a portion of the interest derived from the

20  corporation account to offset the costs associated with the

21  use of credit cards for payment of fees by applicants or

22  licensees.

23         (k)  Operate under a written contract with the

24  department.

25         (l)  Provide for an annual financial audit of its

26  financial accounts and records by an independent certified

27  public accountant. The annual audit report shall include a

28  management letter in accordance with s. 11.45 and a detailed

29  supplemental schedule of expenditures for each expenditure

30  category. The annual audit report must be submitted to the

31  board, the department, and the Auditor General for review.

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 1         (m)  Provide for all employees and nonemployees charged

 2  with the responsibility of receiving and depositing fee and

 3  fine revenues to have a faithful performance bond in such an

 4  amount and according to such terms as shall be determined in

 5  the contract.

 6         (n)  Keep financial and statistical information as

 7  necessary to completely disclose the financial condition and

 8  operation of the corporation and as requested by the Office of

 9  Program Policy Analysis and Government Accountability, the

10  Auditor General, and the department.

11         (o)  Submit to the secretary, the board, and the

12  Legislature, on or before October 1 of each year, a report

13  describing all of the activities of the corporation for the

14  previous fiscal year which includes, but is not limited to,

15  information concerning the programs and funds that have been

16  transferred to the corporation. The report must include:

17         1.  The number of license renewals.

18         2.  The number of license applications received.

19         3.  The number of license applications approved and

20  denied and the number of licenses issued.

21         4.  The average time required to issue a license.

22         5.  The number of examinations administered and the

23  number of applicants who passed or failed the examination.

24         6.  The number of complaints received.

25         7.  The number of complaints determined to be legally

26  sufficient.

27         8.  The number of complaints dismissed.

28         9.  The number of complaints determined to have

29  probable cause.

30         10.  The number of administrative complaints issued and

31  the status of the complaints.

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 1         11.  The number and nature of disciplinary actions

 2  taken by the board.

 3         12.  All revenues received and all expenses incurred by

 4  the corporation during the preceding fiscal year in its

 5  performance of the duties under the contract.

 6         13.  Any audit performed under paragraph (l), including

 7  financial reports and performance audits.

 8         14.  The status of the compliance of the corporation

 9  with all performance-based program measures adopted by the

10  board.

11         (p)  Meet or exceed the requirements of the business

12  case developed by the board and approved by the Executive

13  Office of the Governor and the Legislative Budget Commission.

14         (7)  The department shall annually certify that the

15  corporation is complying with the terms of the contract in a

16  manner consistent with the goals and purposes of the board and

17  in the best interest of the state. If the department

18  determines the corporation is not compliant with the terms of

19  the contract, including performance standards and measurable

20  outcomes, the contract may be terminated as provided in

21  paragraph (14)(e).

22         (8)  Nothing in this section shall limit the ability of

23  the corporation to enter into contracts and perform all other

24  acts incidental to those contracts which are necessary for the

25  administration of its affairs and for the attainment of its

26  purposes.

27         (9)  The corporation may acquire by lease, and

28  maintain, use, and operate, any real or personal property

29  necessary to perform the duties provided by the contract and

30  this section.

31  

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 1         (10)  The corporation may exercise the authority

 2  assigned to the department or board under this section or the

 3  practice act of the relevant profession, pursuant to the

 4  contract, including but not limited to initiating disciplinary

 5  investigations for unlicensed practice of the relevant

 6  profession. The corporation may make a determination of legal

 7  sufficiency to begin the investigative process as provided in

 8  s. 455.225.  However, the department or the board may not

 9  delegate to the corporation, by contract or otherwise, the

10  authority for determining probable cause to pursue

11  disciplinary action against a licensee, taking final action on

12  license actions or on disciplinary cases, or adopting

13  administrative rules under chapter 120.

14         (11)  The department shall retain the independent

15  authority to open, investigate, or prosecute any cases or

16  complaints, as necessary to protect the public health, safety,

17  or welfare. In addition, the department shall retain sole

18  authority to issue emergency suspension or restriction orders

19  pursuant to s. 120.60 or may delegate concurrent authority for

20  this purpose to the relevant professional board.

21         (12)  The corporation is the sole source and depository

22  for the records of the board, including all historical

23  information and records. The corporation shall maintain those

24  records in accordance with the guidelines of the Department of

25  State and shall not destroy any records prior to the limits

26  imposed by the Department of State.

27         (13)  The board shall provide by rule for the

28  procedures the corporation must follow to ensure that all

29  licensure examinations are secure while under the

30  responsibility of the corporation and that there is an

31  

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 1  appropriate level of monitoring during the licensure

 2  examinations.

 3         (14)  The contract between the department and the

 4  corporation must be in compliance with this section and other

 5  applicable laws. The department shall retain responsibility

 6  for any duties it currently exercises relating to its police

 7  powers and any other current duty that is not provided to the

 8  corporation by contract or this section. The contract shall

 9  provide, at a minimum, that:

10         (a)  The corporation provide administrative,

11  examination, licensing, investigative, and prosecutorial

12  services in accordance with the provisions of this section and

13  the practice act of the relevant profession. The prosecutorial

14  functions of the corporation shall include the authority to

15  pursue investigations leading to unlicensed practice

16  complaints, with the approval of and at the direction of the

17  relevant professional board. With approval of the department

18  and the board, the corporation may subcontract for specialized

19  services for the investigation and prosecution of unlicensed

20  activity pursuant to this chapter. The corporation shall be

21  required to report all criminal matters, including unlicensed

22  activity that constitutes a crime, to the state attorney for

23  criminal prosecution pursuant to s. 455.2277.

24         (b)  The articles of incorporation and bylaws of the

25  corporation be approved by the department.

26         (c)  The corporation submit an annual budget for

27  approval by the department. If the department's appropriations

28  request differs from the budget submitted by the corporation,

29  the relevant professional board shall be permitted to

30  authorize the inclusion in the appropriations request a

31  

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 1  comment or statement of disagreement with the department's

 2  request.

 3         (d)  The corporation utilize the department's licensing

 4  and computerized database system.

 5         (e)  The corporation be annually certified by the

 6  department as complying with the terms of the contract in a

 7  manner consistent with the goals and purposes of the board and

 8  in the best interest of the state. As part of the annual

 9  certification, the department shall make quarterly assessments

10  regarding contract compliance by the corporation. The contract

11  must also provide for methods and mechanisms for resolving any

12  situation in which the assessment and certification process

13  determines noncompliance, to include termination.

14         (f)  The department employ a contract manager to

15  actively monitor the activities of the corporation to ensure

16  compliance with the contract, the provisions of this chapter,

17  and the applicable practice act.

18         (g)  The corporation be funded through appropriations

19  allocated to the regulation of the relevant profession from

20  the Professional Regulation Trust Fund.

21         (h)  If the corporation is no longer approved to

22  operate for the board or the board ceases to exist, all

23  moneys, records, data, and property held in trust by the

24  corporation for the benefit of the board revert to the

25  department, or the state if the department ceases to exist.

26  All records and data in a computerized database must be

27  returned to the department in a form that is compatible with

28  the computerized database of the department.

29         (i)  The corporation secure and maintain, during the

30  term of the contract and for all acts performed during the

31  term of the contract, all liability insurance coverages in an

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 1  amount to be approved by the department to defend, indemnify,

 2  and hold harmless the corporation and its officers and

 3  employees, the department and its employees, the board, and

 4  the state against all claims arising from state and federal

 5  laws. Such insurance coverage must be with insurers qualified

 6  and doing business in the state. The corporation must provide

 7  proof of insurance to the department. The department and its

 8  employees, the board, and the state are exempt from and are

 9  not liable for any sum of money which represents a deductible,

10  which sums shall be the sole responsibility of the

11  corporation. Violation of this paragraph shall be grounds for

12  terminating the contract.

13         (j)  The board, in lieu of the department, shall retain

14  board counsel pursuant to the requirements of s. 455.221. The

15  corporation, out of its allocated budget, shall pay all costs

16  of representation by the board counsel, including salary and

17  benefits, travel, and any other compensation traditionally

18  paid by the department to other board counsels.

19         (k)  The corporation, out of its allocated budget, pay

20  to the department all costs incurred by the corporation or the

21  board for the Division of Administrative Hearings of the

22  Department of Management Services and any other cost for

23  utilization of these state services.

24         (l)  The corporation, out of its allocated budget, pay

25  to the department all direct and indirect costs associated

26  with the monitoring of the contract, including salary and

27  benefits, travel, and other related costs traditionally paid

28  to state employees.

29         (m)  The corporation comply with the performance

30  standards and measurable outcomes developed by the board and

31  

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 1  the department. The performance standards and measurable

 2  outcomes must be specified within the contract.

 3         (15)  Corporation records are public records subject to

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

 5  State Constitution; however, public records exemptions set

 6  forth in ss. 455.217, 455.225, and 455.229 for records held by

 7  the department shall apply to records held by the corporation.

 8  In addition, all meetings of the board of directors are open

 9  to the public in accordance with s. 286.011 and s. 24(b), Art.

10  I of the State Constitution. The department and the board

11  shall have access to all records of the corporation as

12  necessary to exercise their authority to approve and supervise

13  the contract. Both the Auditor General and the Office of

14  Program Policy Analysis and Government Accountability shall

15  have access to all records of the corporation as necessary to

16  conduct financial and operational audits.

17         (16)  If any provision of this section is held to be

18  unconstitutional or is held to violate the state or federal

19  antitrust laws, the following shall occur:

20         (a)  The corporation shall cease and desist from

21  exercising any powers and duties enumerated in this section.

22         (b)  The department shall resume the performance of

23  such activities. The department shall regain and receive,

24  hold, invest, and administer property and make expenditures

25  for the benefit of the board.

26         (c)  The Executive Office of the Governor,

27  notwithstanding chapter 216, may reestablish positions, budget

28  authority, and salary rate necessary to carry out the

29  department's responsibilities related to the board.

30         Section 2.  Section 455.2177, Florida Statutes, is

31  amended to read:

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 1         455.2177  Monitoring of compliance with continuing

 2  education requirements.--

 3         (1)  The department shall establish a system to monitor

 4  licensee compliance with applicable continuing education

 5  requirements and to determine each licensee's continuing

 6  education status. The department is authorized to provide for

 7  a phase-in of the compliance monitoring system, but the system

 8  must provide for monitoring of compliance with applicable

 9  continuing education requirements by all professions regulated

10  by the department no later than July 1, 2002. The compliance

11  monitoring system may use staff of the department or may be

12  privatized. As used in this section, the term "monitor" means

13  the act of determining, for each licensee, whether the

14  licensee was in full compliance with applicable continuing

15  education requirements as of the time of the licensee's

16  license renewal.

17         (2)  If the compliance monitoring system required under

18  this section is privatized, the following provisions apply:

19         (a)  The department may contract pursuant to s. 287.057

20  with a vendor or vendors for the monitoring of compliance with

21  applicable continuing education requirements by all licensees

22  within one or more professions regulated by the department.

23  The contract shall include, but need not be limited to, the

24  following terms and conditions:

25         1.a.  The vendor shall create a computer database, in

26  the form required by the department, that includes the

27  continuing education status of each licensee and shall provide

28  a report to the department within 90 days after the vendor

29  receives the list of licensees to be monitored as provided in

30  sub-subparagraph b. The report shall be in a format determined

31  by the department and shall include each licensee's continuing

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 1  education status by license number, hours of continuing

 2  education credit per cycle, and such other information the

 3  department deems necessary.

 4         b.  No later than 30 days after the end of each renewal

 5  period, the department shall provide to the vendor a list that

 6  includes all licensees of a particular profession whose

 7  licenses were renewed during a particular renewal period. In

 8  order to account for late renewals, the department shall

 9  provide the vendor with such updates to the list as are

10  mutually determined to be necessary.

11         2.a.  Before the vendor informs the department of the

12  status of any licensee the vendor has determined is not in

13  compliance with continuing education requirements, the vendor,

14  acting on behalf of the department, shall provide the licensee

15  with a notice stating that the vendor has determined that the

16  licensee is not in compliance with applicable continuing

17  education requirements. The notice shall also include the

18  licensee's continuing education record for the renewal period,

19  as shown in the records of the vendor, and a description of

20  the process for correcting the vendor's record under

21  sub-subparagraph b.

22         b.  The vendor shall give the licensee 45 days to

23  correct the vendor's information. The vendor shall correct a

24  record only on the basis of evidence of compliance supplied to

25  the vendor by a continuing education provider.

26         3.a.  The vendor must provide the department, with the

27  report required under subparagraph 1., a list, in a form

28  determined by the department, identifying each licensee who

29  the vendor has determined is not in compliance with applicable

30  continuing education requirements.

31  

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 1         b.  The vendor shall provide the department with access

 2  to such information and services as the department deems

 3  necessary to ensure that the actions of the vendor conform to

 4  the contract and to the duties of the department and the

 5  vendor under this subsection.

 6         4.  The department shall ensure the vendor access to

 7  such information from continuing education providers as is

 8  necessary to determine the continuing education record of each

 9  licensee. The vendor shall inform the department of any

10  provider that fails to provide such information to the vendor.

11         5.  If the vendor fails to comply with a provision of

12  the contract, the vendor is obligated to pay the department

13  liquidated damages in the amounts specified in the contract.

14         6.  The department's payments to the vendor must be

15  based on the number of licensees monitored. The department may

16  allocate from the unlicensed activity account of any

17  profession under s. 455.2281 up to $2 per licensee for the

18  monitoring of that profession's licensees under this

19  subsection, which allocations are the exclusive source of

20  funding for contracts under this subsection.

21         7.  A continuing education provider is not eligible to

22  be a vendor under this subsection.

23         (b)  When it receives notice from a vendor that a

24  licensee is not in compliance with continuing education

25  requirements, the department shall send the licensee written

26  notice that disciplinary actions will be taken, together with

27  a description of the remedies available to the licensee under

28  the dispute resolution process created under paragraph (c). If

29  a licensee does not prevail in the dispute resolution process,

30  the department:

31  

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 1         1.  May impose an administrative fine in the amount of

 2  $500 against the licensee; however, the department may reduce

 3  the amount of the fine to $250 if the licensee comes into

 4  compliance with the applicable continuing education

 5  requirements within 90 days after imposition of the original

 6  fine. All proceeds of fines under this subparagraph shall be

 7  deposited in the appropriate unlicensed activity account under

 8  s. 455.2281.

 9         (2)2.  May refuse any further renewal of a the

10  licensee's license until unless the licensee has paid the fine

11  and satisfied all the applicable continuing education

12  requirements. This subsection does not preclude the department

13  or boards from imposing additional penalties pursuant to the

14  applicable practice act or rules adopted pursuant thereto.

15         (c)  The department is authorized to adopt by rule a

16  process for the resolution of disputes between a vendor and a

17  continuing education provider, between a vendor and a

18  licensee, and between a licensee and a continuing education

19  provider. The process shall ensure all parties a fair

20  opportunity to correct any erroneous information. If the

21  parties are unable to reach an agreement, the department shall

22  determine the resolution of the dispute.

23         (d)  Upon the failure of a vendor to meet its

24  obligations under a contract as provided in paragraph (a), the

25  department may suspend the contract and enter into an

26  emergency contract under s. 287.057(5).

27         (3)  Notwithstanding any other provision of law to the

28  contrary and regardless of whether the compliance monitoring

29  system is privatized, neither the department nor a board may

30  impose any sanction other than the sanctions specified in

31  paragraph (2)(b) for the failure of a licensee to meet

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 1  continuing education requirements. This subsection does not

 2  apply to actions under chapter 473.

 3         (3)(4)  The department may shall waive the continuing

 4  education monitoring requirements of this section for any

 5  profession that demonstrates to the department that the

 6  monitoring system places an undue burden on the profession it

 7  has a program in place which measures compliance with

 8  continuing education requirements through statistical sampling

 9  techniques or other methods and can indicate that at least 95

10  percent of its licensees are in compliance.

11         (4)(5)  The department may is authorized to adopt rules

12  under ss. 120.536(1) and 120.54 to implement this section.

13         Section 3.  Section 455.2178, Florida Statutes, is

14  amended to read:

15         455.2178  Continuing education providers.--If the

16  monitoring of compliance with continuing education

17  requirements is privatized pursuant to s. 455.2177:

18         (1)(a)  The department shall notify each approved

19  continuing education provider of the name and address of all

20  vendors that monitor compliance of licensees under s.

21  455.2177. If the department contracts with more than one

22  vendor under s. 455.2177, the notice shall specify the

23  professions to be monitored by each vendor.

24         (1)(b)  Each continuing education provider shall

25  provide to the department appropriate vendor such information

26  regarding the continuing education status of licensees as the

27  department determines is necessary for the vendor to carry out

28  its duties under s. 455.2177, in an electronic format s.

29  455.2177(2), in a form determined by the department. After a

30  licensee's completion of a course, the information must be

31  submitted to the department vendor electronically no later

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 1  than 30 calendar 5 business days thereafter or prior to the

 2  licensee's renewal date, whichever occurs sooner after a

 3  licensee's completion of a course. The foregoing applies only

 4  if the profession has not been granted a waiver from the

 5  monitoring requirements under s. 455.2177. Upon the request of

 6  a licensee, the provider must also furnish to the department a

 7  vendor information regarding courses completed by the

 8  licensee.

 9         (2)  Each continuing education provider shall retain

10  all records relating to a licensee's completion of continuing

11  education courses for at least 4 years after completion of a

12  course.

13         (3)  A continuing education provider may not be

14  approved, and the approval may not be renewed, unless the

15  provider agrees in writing to provide such cooperation with

16  vendors under this section and s. 455.2177 as the department

17  deems necessary or appropriate.

18         (4)  The department may fine, suspend, or immediately

19  revoke approval of any continuing education provider that

20  fails to comply with its duties under this section. Such fine

21  may not exceed $500 per violation. Investigations and

22  prosecutions of a provider's failure to comply with its duties

23  under this section shall be conducted pursuant to s. 455.225.

24         (5)  For the purpose of determining which persons or

25  entities must meet the reporting, recordkeeping, and access

26  provisions of this section, the board of any profession

27  subject to this section, or the department if there is no

28  board, shall, by rule, adopt a definition of the term

29  "continuing education provider" applicable to the profession's

30  continuing education requirements. The intent of the rule

31  shall be to ensure that all records and information necessary

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 1  to carry out the requirements of this section and s. 455.2177

 2  are maintained and transmitted accordingly and to minimize

 3  disputes as to what person or entity is responsible for

 4  maintaining and reporting such records and information.

 5         (6)  The department may has the authority to adopt

 6  rules under ss. 120.536(1) and 120.54 to implement this

 7  section.

 8         Section 4.  Section 455.2179, Florida Statutes, is

 9  amended to read:

10         455.2179  Continuing education provider and course

11  approval; cease and desist orders.--

12         (1)  If a board, or the department if there is no

13  board, requires completion of continuing education as a

14  requirement for renewal of a license, the board, or the

15  department if there is no board, shall approve providers of

16  the continuing education. The approval of a continuing

17  education providers and courses provider must be for a

18  specified period of time, not to exceed 4 years. An approval

19  that does not include such a time limitation may remain in

20  effect pursuant to the applicable practice act or the rules

21  adopted under the applicable practice act only until July 1,

22  2001, unless earlier replaced by an approval that includes

23  such a time limitation.

24         (2)  The board, or the department if there is no, on

25  its own motion or at the request of a board, shall issue an

26  order requiring a person or entity to cease and desist from

27  offering any continuing education programs for licensees, and

28  fining, suspending, or revoking any approval of the provider

29  previously granted by the board, or the department if there is

30  no or a board, if the board, or the department if there is no

31  or a board, determines that the person or entity failed to

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 1  provide appropriate continuing education services that conform

 2  to approved course material. Such fine may not exceed $500 per

 3  violation. Investigations and prosecutions of a provider's

 4  failure to comply with its duties under this section shall be

 5  conducted under s. 455.225.

 6         (3)  Each board authorized to approve continuing

 7  education providers, or the department if there is no board,

 8  may establish, by rule, a fee not to exceed $250 for anyone

 9  seeking approval to provide continuing education courses and

10  may establish, by rule, a biennial fee not to exceed $250 for

11  the renewal of providership of such courses. The Florida Real

12  Estate Commission, authorized under the provisions of chapter

13  475 to approve prelicensure, precertification, and

14  postlicensure education providers, may establish, by rule, an

15  application fee not to exceed $250 for anyone seeking approval

16  to offer prelicensure, precertification, or postlicensure

17  education courses and may establish, by rule, a biennial fee

18  not to exceed $250 for the renewal of such courses. Such

19  post-licensure education courses are subject to the reporting,

20  monitoring, and compliance provisions of this section and ss.

21  455.2177 and 455.2178.

22         (4)  The department and each affected board may adopt

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

24  provisions of this section.

25         Section 5.  Section 455.2281, Florida Statutes, is

26  amended to read:

27         455.2281  Unlicensed activities; fees; disposition.--In

28  order to protect the public and to ensure a consumer-oriented

29  department, it is the intent of the Legislature that vigorous

30  enforcement of regulation for all professional activities is a

31  state priority. All enforcement costs should be covered by

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 1  professions regulated by the department. Therefore, the

 2  department shall impose, upon initial licensure and each

 3  renewal thereof, a special fee of $5 per licensee. Such fee

 4  shall be in addition to all other fees collected from each

 5  licensee and shall fund efforts to combat unlicensed activity.

 6  Any profession regulated by the department which offers

 7  services that are not subject to regulation when provided by

 8  an unlicensed person may use funds in its unlicensed activity

 9  account to inform the public of such situation. The board with

10  concurrence of the department, or the department when there is

11  no board, may earmark $5 of the current licensure fee for this

12  purpose, if such board, or profession regulated by the

13  department, is not in a deficit and has a reasonable cash

14  balance. A board or profession regulated by the department may

15  authorize the transfer of funds from the operating fund

16  account to the unlicensed activity account of that profession

17  if the operating fund account is not in a deficit and has a

18  reasonable cash balance. The department shall make direct

19  charges to this fund by profession and shall not allocate

20  indirect overhead. The department shall seek board advice

21  regarding enforcement methods and strategies prior to

22  expenditure of funds; however, the department may, without

23  board advice, allocate funds to cover the costs of continuing

24  education compliance monitoring under s. 455.2177. The

25  department shall directly credit, by profession, revenues

26  received from the department's efforts to enforce licensure

27  provisions, including revenues received from fines collected

28  under s. 455.2177. The department shall include all financial

29  and statistical data resulting from unlicensed activity

30  enforcement and from continuing education compliance

31  monitoring as separate categories in the quarterly management

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 1  report provided for in s. 455.219. The department shall not

 2  charge the account of any profession for the costs incurred on

 3  behalf of any other profession. For an unlicensed activity

 4  account, a balance which remains at the end of a renewal cycle

 5  may, with concurrence of the applicable board and the

 6  department, be transferred to the operating fund account of

 7  that profession.

 8         Section 6.  Paragraph (b) of subsection (3) of section

 9  481.205, Florida Statutes, is amended to read:

10         481.205  Board of Architecture and Interior Design.--

11         (3)

12         (b)  Notwithstanding the provisions of s. 455.32(13),

13  The board, in lieu of the department, shall contract with a

14  corporation or other business entity pursuant to s. 287.057(3)

15  to provide investigative, legal, prosecutorial, and other

16  services necessary to perform its duties.

17         Section 7.  This act shall take effect July 1, 2004.

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2026

 3                                 

 4  The committee substitute:

 5  o    Changes the term "executive director" to "contract
         manager."
 6  
    o    Provides a definition for the term "business case."
 7  
    o    Provides that no professional board member may also serve
 8       on the board of directors for the corporation.

 9  o    Provides for the removal of the corporation's directors
         by the Governor instead of the department.
10  
    o    Requires a financial model and business case for the
11       corporation with projected costs for the first two years.
         The business case must be approved by the Governor.
12  
    o    Authorizes the corporation to initiate disciplinary
13       investigations, and authorizes the department to delegate
         to the corporation the authority to issue emergency
14       suspension or restriction orders.

15  o    Requires the board to retain the board counsel, and the
         corporation must pay for all direct and indirect costs
16       associated with monitoring the contract.

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

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31  

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