Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1252
                                Barcode 249360                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                   Comm: WD            .                                
                  04/27/2011           .                                

       The Committee on Rules (Richter) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Between lines 407 and 408
    4  insert:
    5         Section 6. Section 626.9894, Florida Statutes, is created
    6  to read:
    7         626.9894Motor vehicle insurance fraud direct-support
    8  organization.—
    9         (1) DEFINITIONS.—As used in this section, the term:
   10         (a) “Division” means the Division of Insurance Fraud of the
   11  Department of Financial Services.
   12         (b) “Motor vehicle insurance fraud” means any act defined
   13  as a “fraudulent insurance act” under s. 626.989, which relates
   14  to the coverage of motor vehicle insurance as described in part
   15  XI of chapter 627.
   16         (c) “Organization” means the direct-support organization
   17  established under this section.
   18         (2) ORGANIZATION ESTABLISHED.—The division may establish a
   19  direct-support organization, to be known as the “Automobile
   20  Insurance Fraud Strike Force,” whose sole purpose is to support
   21  the prosecution, investigation, and prevention of motor vehicle
   22  insurance fraud. The organization shall:
   23         (a) Be a not-for-profit corporation incorporated under
   24  chapter 617 and approved by the Department of State.
   25         (b) Be organized and operated to conduct programs and
   26  activities; to raise funds; to request and receive grants,
   27  gifts, and bequests of money; to acquire, receive, hold, invest,
   28  and administer, in its own name, securities, funds, objects of
   29  value, or other property, real or personal; and to make grants
   30  and expenditures to or for the direct or indirect benefit of the
   31  division, state attorneys’ offices, the statewide prosecutor,
   32  the Agency for Health Care Administration, and the Department of
   33  Health to the extent that such grants and expenditures are to be
   34  used exclusively to advance the purpose of prosecuting,
   35  investigating, or preventing motor vehicle insurance fraud.
   36  Grants and expenditures may include the cost of salaries or
   37  benefits of dedicated motor vehicle insurance fraud
   38  investigators, prosecutors, or support personnel if such grants
   39  and expenditures do not interfere with prosecutorial
   40  independence or otherwise create conflicts of interest which
   41  threaten the success of prosecutions.
   42         (c) Be determined by the division to operate in a manner
   43  that promotes the goals of laws relating to motor vehicle
   44  insurance fraud, that is in the best interest of the state, and
   45  that is in accordance with the adopted goals and mission of the
   46  division.
   47         (d) Use all of its grants and expenditures solely for the
   48  purpose of preventing and decreasing motor vehicle insurance
   49  fraud, and not for the purpose of lobbying as defined in s.
   50  11.045.
   51         (e) Be subject to an annual financial audit in accordance
   52  with s. 215.981.
   53         (3) CONTRACT.—The organization shall operate under written
   54  contract with the division. The contract must provide for:
   55         (a) Approval of the articles of incorporation and bylaws of
   56  the organization by the division.
   57         (b) Submission of an annual budget for the approval of the
   58  division. The budget must require the organization to minimize
   59  costs to the division and its members at all times by using
   60  existing personnel and property and allowing for telephonic
   61  meetings when appropriate.
   62         (c) Certification by the division that the direct-support
   63  organization is complying with the terms of the contract and in
   64  a manner consistent with the goals and purposes of the
   65  department and in the best interest of the state. Such
   66  certification must be made annually and reported in the official
   67  minutes of a meeting of the organization.
   68         (d) Allocation of funds to address motor vehicle insurance
   69  fraud.
   70         (e) Reversion of moneys and property held in trust by the
   71  organization for motor vehicle insurance fraud prosecution,
   72  investigation, and prevention to the division if the
   73  organization is no longer approved to operate for the department
   74  or if the organization ceases to exist, or to the state if the
   75  division ceases to exist.
   76         (f) Specific criteria to be used by the organization’s
   77  board of directors to evaluate the effectiveness of funding used
   78  to combat motor vehicle insurance fraud.
   79         (g) The fiscal year of the organization, which begins July
   80  1 of each year and ends June 30 of the following year.
   81         (h) Disclosure of the material provisions of the contract,
   82  and distinguishing between the department and the organization
   83  to donors of gifts, contributions, or bequests, including
   84  providing such disclosure on all promotional and fundraising
   85  publications.
   86         (4) BOARD OF DIRECTORS.—The board of directors of the
   87  organization shall consist of the following seven members:
   88         (a) The Chief Financial Officer, or designee, who shall
   89  serve as chair.
   90         (b) Two state attorneys, one of whom shall be appointed by
   91  the Chief Financial Officer and one of whom shall be appointed
   92  by the Attorney General.
   93         (c) Two representatives of motor vehicle insurers appointed
   94  by the Chief Financial Officer.
   95         (d) Two representatives of local law enforcement agencies,
   96  both of whom shall be appointed by the Chief Financial Officer.
   98  The officer who appointed a member of the board may remove that
   99  member for cause. The term of office of an appointed member
  100  expires at the same time as the term of the officer who
  101  appointed him or her or at such earlier time as the member
  102  ceases to be qualified.
  103         (5) USE OF PROPERTY.—The department may authorize, without
  104  charge, appropriate use of fixed property and facilities of the
  105  division by the organization, subject to this subsection.
  106         (a) The department may prescribe any condition with which
  107  the organization must comply in order to use the division’s
  108  property or facilities.
  109         (b) The department may not authorize the use of the
  110  division’s property or facilities if the organization does not
  111  provide equal membership and employment opportunities to all
  112  persons regardless of race, religion, sex, age, or national
  113  origin.
  114         (c) The department shall adopt rules prescribing the
  115  procedures by which the organization is governed and any
  116  conditions with which the organization must comply to use the
  117  division’s property or facilities.
  118         (6) CONTRIBUTIONS.—Any contributions made by an insurer to
  119  the organization shall be allowed as appropriate business
  120  expenses for all regulatory purposes.
  121         (7) DEPOSITORY.—Any moneys received by the organization may
  122  be held in a separate depository account in the name of the
  123  organization and subject to the provisions of the contract with
  124  the division.
  125         (8) DIVISION’S RECEIPT OF PROCEEDS.—If the division
  126  receives proceeds from the organization, those proceeds shall be
  127  deposited into the Insurance Regulatory Trust Fund.
  129  ================= T I T L E  A M E N D M E N T ================
  130         And the title is amended as follows:
  131         Delete line 19
  132  and insert:
  133         certain crimes; creating s. 626.9894, F.S.; providing
  134         definitions; authorizing the Division of Insurance
  135         Fraud to establish a direct-support organization for
  136         the purpose of prosecuting, investigating, and
  137         preventing motor vehicle insurance fraud; providing
  138         requirements for the organization and the
  139         organization’s contract with the division; providing
  140         for a board of directors; authorizing the organization
  141         to use the division’s property and facilities subject
  142         to certain requirements; authorizing contributions
  143         from insurers; providing that any moneys received by
  144         the organization may be held in a separate depository
  145         account in the name of the organization; requiring the
  146         division to deposit certain proceeds into the
  147         Insurance Regulatory Trust Fund; amending s. 627.4133,
  148         F.S.; changing