Florida Senate - 2017                                     SB 986
       
       
        
       By Senator Stargel
       
       
       
       
       
       22-00736A-17                                           2017986__
    1                        A bill to be entitled                      
    2         An act relating to the Department of Financial
    3         Services; amending s. 17.575, F.S.; replacing, within
    4         the Division of Treasury, the Treasury Investment
    5         Committee with the Treasury Investment Council;
    6         specifying the composition and term length of members;
    7         specifying duties of the council; providing that
    8         members shall serve without additional compensation or
    9         honorarium but may receive per diem and travel expense
   10         reimbursement; amending s. 215.422, F.S.; providing
   11         applicability of certain requirements relating to
   12         payments, warrants, and invoices to payments made in
   13         relation to certain agreements funded with federal or
   14         state assistance; reordering and amending s. 554.1021,
   15         F.S.; defining and redefining terms; amending s.
   16         554.103, F.S.; requiring, rather than authorizing, the
   17         Department of Financial Services to adopt amendments
   18         and interpretations of a specified code into the State
   19         Boiler Code; revising requirements that installers,
   20         rather than owners, must comply with before installing
   21         a boiler; authorizing the department to adopt rules;
   22         conforming provisions to changes made by the act;
   23         amending s. 554.104, F.S.; deleting a provision
   24         relating to boilers of special design which is
   25         recreated in s. 554.103, F.S.; requiring certification
   26         of boiler inspectors; requiring an application for a
   27         certification examination; specifying qualifications
   28         and requirements for the certification examination;
   29         requiring the department to adopt a specified training
   30         course; providing authorized methods and requirements
   31         for the training course; requiring the chief boiler
   32         inspector to issue a certificate of competency to a
   33         person meeting certain requirements; providing
   34         procedures for renewing a certificate; authorizing the
   35         department to adopt rules; amending s. 554.105, F.S.;
   36         renaming the chief inspector as the chief boiler
   37         inspector; revising requirements for the department
   38         through the state boiler inspection program; amending
   39         s. 554.106, F.S.; renaming deputy inspectors as deputy
   40         boiler inspectors; specifying required and authorized
   41         duties of deputy boiler inspectors; amending s.
   42         554.107, F.S.; renaming special inspectors as special
   43         boiler inspectors; revising entities that may employ
   44         special boiler inspectors; specifying required
   45         inspection intervals for special boiler inspectors;
   46         amending s. 554.108, F.S.; providing an exemption,
   47         under certain conditions, from inspection
   48         requirements; specifying duties of an owner or an
   49         owner’s designee to allow an inspector to conduct
   50         inspections; specifying requirements for boiler
   51         inspections and inspection reports; providing a
   52         penalty against an insurance carrier if certain
   53         followup inspections are not conducted; revising
   54         conditions that require a boiler to be shut down;
   55         revising requirements and procedures for a boiler that
   56         must be shut down; providing construction; authorizing
   57         the department to adopt rules; creating s. 554.1081,
   58         F.S.; revising requirements for boiler inspections by
   59         insurance companies and local governmental agencies;
   60         amending s. 554.109, F.S.; conforming provisions to
   61         changes made by the act; revising boilers that are
   62         exempt from regulation under the chapter; revising
   63         requirements for certain exempt boilers and water
   64         heaters; amending s. 554.1101, F.S.; conforming
   65         provisions to changes made by the act; requiring a
   66         boiler insurance company to notify, within a specified
   67         timeframe, the chief boiler inspector under certain
   68         circumstances; requiring a certificateholder to submit
   69         a certain certificate of insurance to the chief boiler
   70         inspector under certain circumstances; amending s.
   71         554.111, F.S.; requiring an application for a boiler
   72         permit to include a specified fee; requiring the chief
   73         boiler inspector to deposit fines into a specified
   74         trust fund; conforming provisions to changes made by
   75         the act; repealing ss. 554.112 and 554.113, F.S.,
   76         relating to examinations, and certification of
   77         inspectors and renewals, respectively; amending s.
   78         554.114, F.S.; revising prohibited acts; providing
   79         penalties for a boiler insurance company or authorized
   80         inspection agency that fails to conduct certain
   81         inspections; conforming provisions to changes made by
   82         the act; amending s. 554.115, F.S.; adding authorized
   83         disciplinary actions for the department; adding
   84         specified grounds for disciplinary action against an
   85         owner of a boiler; revising grounds for disciplinary
   86         action against a boiler inspector; deleting a
   87         provision requiring a chief inspector to report
   88         certain persons to the state attorney; deleting a
   89         provision authorizing certain administrative action by
   90         the chief inspector; deleting a provision relating to
   91         the duration of a suspended certificate of compliance;
   92         creating s. 554.1151, F.S.; authorizing the department
   93         to impose specified administrative fines in lieu of or
   94         in addition to certain disciplinary actions;
   95         authorizing procedures for payment of fines by a
   96         certificateholder; requiring a certificate to be
   97         revoked under certain circumstances; creating s.
   98         554.116, F.S.; requiring a boiler insurance company to
   99         annually file a specified report with the chief boiler
  100         inspector; requiring the department to adopt a form by
  101         rule; amending s. 624.307, F.S.; authorizing the
  102         department to expend funds for professional
  103         development of its employees; amending s. 626.015,
  104         F.S.; defining terms; conforming a cross-reference;
  105         amending s. 626.207, F.S.; defining the term
  106         “applicant”; revising a list of felonies subject to a
  107         permanent bar from licensure; revising a condition for
  108         when certain disqualifying periods begin; conforming
  109         cross-references; providing an exception from a
  110         permanent bar on or disqualifying periods for cases of
  111         executive clemency; providing construction; amending
  112         s. 626.9954, F.S.; revising a list of felonies subject
  113         to a permanent bar from licensure; revising conditions
  114         for when certain disqualifying periods begin;
  115         conforming cross-references; providing an exception
  116         from a permanent bar on or disqualifying periods for
  117         cases of executive clemency; providing construction;
  118         amending s. 626.2815, F.S.; authorizing the department
  119         to approve a certain number of elective continuing
  120         education credits for certain insurance licensees;
  121         providing an exception from a certain continuing
  122         education requirement for such licensees; amending s.
  123         626.611, F.S.; deleting a condition for the
  124         involvement of moral turpitude in felonies or certain
  125         crimes in relation to compulsory disciplinary actions
  126         by the department against certain entities’ licenses
  127         or appointments; conforming a cross-reference;
  128         amending s. 626.621, F.S.; revising grounds for the
  129         department’s discretionary refusal, suspension, or
  130         revocation of the license or appointment of certain
  131         persons; amending s. 626.7845, F.S.; revising an
  132         exception to the prohibition against the unlicensed
  133         transaction of life insurance; conforming a cross
  134         reference; amending s. 626.8305, F.S.; revising an
  135         exception to the prohibition against the unlicensed
  136         transaction of health insurance; conforming a cross
  137         reference; amending s. 626.861, F.S.; authorizing
  138         certain insurer employees to adjust specified claim
  139         losses or damage; amending s. 626.9543, F.S.; removing
  140         the scheduled expiration of a requirement for insurers
  141         to permit claims from a Holocaust victim or certain
  142         related persons irrespective of certain conditions;
  143         removing the scheduled expiration of an exception from
  144         statutes of limitations or laches for certain actions
  145         brought by Holocaust victims or certain related
  146         persons; amending s. 633.516, F.S.; authorizing the
  147         Division of State Fire Marshal within the division to
  148         contract for studies of, rather than to make a
  149         continuous study of, occupational diseases of
  150         firefighters; adding persons in other fire-related
  151         fields to such studies; authorizing the division to
  152         release confidential information of an individual
  153         firefighter or a person in another fire-related field
  154         to certain parties under certain circumstances;
  155         amending s. 768.28, F.S.; providing exceptions in tort
  156         claims against a subdivision of the state from
  157         requirements that a claimant present the written claim
  158         to the department within a specified timeframe and
  159         serve process upon the department; amending ss.
  160         288.706, 626.7315, and 627.351, F.S.; conforming
  161         cross-references; providing an effective date.
  162          
  163  Be It Enacted by the Legislature of the State of Florida:
  164  
  165         Section 1. Section 17.575, Florida Statutes, is amended to
  166  read:
  167         17.575 Administration of funds; Treasury Investment Council
  168  Committee.—
  169         (1) There is created a Treasury Investment Council
  170  Committee within the Division of Treasury consisting of at least
  171  five members, at least three of whom are professionals from the
  172  private sector, who must possess special knowledge, experience,
  173  and familiarity in finance, investments, or accounting. The
  174  members of the council must committee shall be appointed by and
  175  serve at the pleasure of the Chief Financial Officer. Each
  176  member shall serve a term of 4 years from the date of
  177  appointment. The council committee shall annually elect a chair
  178  and vice chair from among its members membership.
  179         (2) The council shall review the investments required by s.
  180  17.57; meet with staff of the Division of Treasury at least
  181  biannually; and provide recommendations to the Division of
  182  Treasury and the Chief Financial Officer regarding investment
  183  policy, strategy, and procedures The committee shall administer
  184  the Treasury Investment Program consistent with policies
  185  approved by the Chief Financial Officer for deposits and
  186  investments of public funds. The committee shall also make
  187  recommendations regarding investment policy to the Chief
  188  Financial Officer.
  189         (3) Members of the council shall serve without additional
  190  compensation or honorarium, but may receive per diem and
  191  reimbursement for travel expenses as provided in s. 112.061 The
  192  committee shall submit an annual report outlining its activities
  193  and recommendations to the Chief Financial Officer and the Joint
  194  Legislative Auditing Committee. The report shall be submitted on
  195  August 15, 2009, and annually thereafter.
  196         Section 2. Present subsections (14) through (16) of section
  197  215.422, Florida Statutes, are redesignated as subsections (15)
  198  through (17), respectively, and a new subsection (14) is added
  199  to that section, to read:
  200         215.422 Payments, warrants, and invoices; processing time
  201  limits; dispute resolution; agency or judicial branch
  202  compliance.—
  203         (14) All requirements set forth in this section apply to
  204  payments made in accordance with s. 215.971.
  205         Section 3. Section 554.1021, Florida Statutes, is reordered
  206  and amended to read:
  207         554.1021 Definitions.—As used in this chapter, the term ss.
  208  554.1011-554.115:
  209         (3)(1) “Boiler” means a closed vessel in which water or
  210  other liquid is heated, steam or vapor is generated, steam is
  211  superheated, or any combination of these functions is
  212  accomplished, under pressure or vacuum, for use external to
  213  itself, by the direct application of energy from the combustion
  214  of fuels or from electricity or solar energy. The term “boiler”
  215  includes fired units for heating or vaporizing liquids other
  216  than water where these units are separate from processing
  217  systems and are complete within themselves. The varieties of
  218  boilers are as follows:
  219         (f)(a) “Power boiler” means a boiler in which steam or
  220  other vapor is generated at a pressure of more than 15 psig.
  221         (b) “High pressure, high temperature water boiler” means a
  222  water boiler operating at pressures exceeding 160 psig or
  223  temperatures exceeding 250 °F.
  224         (a)(c) “Heating boiler” means a steam or vapor boiler
  225  operating at pressures not exceeding 15 psig, or a hot water
  226  boiler operating at pressures not exceeding 160 psig or
  227  temperatures not exceeding 250 °F.
  228         (c)(d) “Hot water supply boiler” means a boiler or a lined
  229  storage water heater supplying heated water for use external to
  230  itself operating at a pressure not exceeding 160 psig or
  231  temperature not exceeding 250 °F.
  232         (g)(e) “Secondhand boiler” means a boiler that has changed
  233  ownership and location subsequent to its original installation
  234  and use.
  235         (d) “Inservice boiler” means a boiler placed in use after
  236  test firing and required inspections have been satisfactorily
  237  completed.
  238         (e) “Operating boiler” means a boiler connected and ready
  239  for use.
  240         (h) “Secured boiler” means a boiler that has been:
  241         1. Physically disconnected from the system, including
  242  disconnection from fuel, water, steam, electricity, and stack;
  243  and
  244         2. Locked out and tagged out in accordance with the
  245  Occupational Safety and Health Administration’s standard
  246  relating to the control of hazardous energy and lockout or
  247  tagout in 29 C.F.R. s. 1910.147, as adopted by rule of the
  248  department.
  249         (9)(2) “Public assembly locations” includes include
  250  schools, day care centers, community centers, churches,
  251  theaters, hospitals, nursing and convalescent homes, stadiums,
  252  amusement parks, and other locations open to the general public.
  253         (5)(3) “Certificate inspection” means an inspection whose
  254  the report of which is used by the chief boiler inspector to
  255  determine whether or not a certificate of operation may be
  256  issued.
  257         (7)(4) “Certificate of operation compliance” means a
  258  document issued to the owner of a boiler which authorizes the
  259  owner to operate the boiler, subject to any restrictions
  260  endorsed thereon.
  261         (6)(5) “Certificate of competency” means a document issued
  262  to a person who has satisfied the minimum competency
  263  requirements for boiler inspectors under this chapter ss.
  264  554.1011-554.115.
  265         (8)(6) “Department” means the Department of Financial
  266  Services.
  267         (1)(7) “A.S.M.E.” means the American Society of Mechanical
  268  Engineers.
  269         (2) “Authorized inspection agency” means:
  270         (a) Any county, municipality, town, or other governmental
  271  subdivision that has adopted into law the Boiler and Pressure
  272  Vessel Code of the A.S.M.E. and the National Board Inspection
  273  Code for the construction, installation, inspection,
  274  maintenance, and repair of boilers to regulate boilers in public
  275  assembly locations, and whose boiler inspectors hold valid
  276  certificates of competency in accordance with s. 554.104;
  277         (b) An insurer authorized by a subsisting certificate of
  278  authority, issued by the Office of Insurance Regulation, to
  279  transact boiler and machinery insurance in this state, and whose
  280  boiler inspectors hold valid certificates of competency in
  281  accordance with s. 554.104; or
  282         (c) An inspecting agency accredited in accordance with The
  283  National Board of Boiler and Pressure Vessel Inspector’s program
  284  entitled Accreditation of Authorized Inspection Agencies (AIA)
  285  Performing Inservice or Repair/Alteration Inspection
  286  Activities,” document number NB-369, and whose boiler inspectors
  287  hold valid certificates of competency in accordance with s.
  288  554.104.
  289         (4) “Boiler insurance company” means a company authorized
  290  by a subsisting certificate of authority, issued by the Office
  291  of Insurance Regulation, to transact boiler and machinery
  292  insurance in this state.
  293         Section 4. Section 554.103, Florida Statutes, is amended to
  294  read:
  295         554.103 Boiler code.—The department shall adopt by rule a
  296  State Boiler Code for the safe construction, installation,
  297  inspection, maintenance, and repair of boilers in this state.
  298  The rules adopted shall be based upon and shall at all times
  299  follow generally accepted nationwide engineering standards,
  300  formulas, and practices pertaining to boiler construction and
  301  safety.
  302         (1) The department shall adopt an existing code for new
  303  construction and installation known as the Boiler and Pressure
  304  Vessel Code of the American Society of Mechanical Engineers,
  305  including all amendments and interpretations approved thereto by
  306  the Council on Codes and Standards of A.S.M.E. The department
  307  may adopt amendments and interpretations to the A.S.M.E. Boiler
  308  and Pressure Vessel Code approved by the A.S.M.E. Council on
  309  Codes and Standards subsequent to the adoption of the State
  310  Boiler Code, and when so adopted by the department, such
  311  amendments and interpretations shall become a part of the State
  312  Boiler Code.
  313         (2) The installer owner of any boiler placed in use in this
  314  state after July 1, 2017, must, before installing the boiler,
  315  apply on a form adopted by rule of the department for a permit
  316  to install the boiler from the chief boiler inspector. The
  317  application must include the boiler’s A.S.M.E. manufacturer’s
  318  data report and other documents required by the State Boiler
  319  Code before the boiler is placed in service. The installer must
  320  contact the chief boiler inspector to schedule an inspection for
  321  each boiler no later than 7 days before the boiler is placed in
  322  service after October 1, 1987, shall submit the A.S.M.E.
  323  manufacturer’s data report on such boiler to the chief inspector
  324  not more than 90 days following the inservice date of the
  325  boiler.
  326         (3) The maximum allowable working pressure of a boiler
  327  carrying the A.S.M.E. code symbol must shall be determined by
  328  the applicable sections of the code under which it was
  329  constructed and stamped. Subject to the concurrence of the chief
  330  boiler inspector, such boiler may be rerated in accordance with
  331  the standards of the State Boiler Code.
  332         (4) The maximum allowable working pressure of a boiler that
  333  which does not carry the A.S.M.E. code symbol must shall be
  334  computed in accordance with the standards of the State Boiler
  335  Code.
  336         (5) This chapter may not Nothing in ss. 554.1011-554.115
  337  shall be construed to in any way prevent the use, sale, or
  338  reinstallation of a boiler if such boiler has been made to
  339  conform to the applicable provisions of the State Boiler Code
  340  governing existing installations and if, upon inspection, the
  341  boiler has been found to be in a safe condition.
  342         (6)The department, at its discretion, may authorize the
  343  construction, installation, and operation of boilers of special
  344  design or construction which do not meet the specific
  345  requirements of the State Boiler Code, but which are consistent
  346  with the intent of the safety objectives of the code.
  347         (7)The department may adopt rules pursuant to ss.
  348  120.536(1) and 120.54 to administer this chapter. Such rules may
  349  include specifying the procedures and forms to be used to obtain
  350  an installation permit, an initial certificate, or a renewal
  351  certificate, and the submission of reports and notices required
  352  under this chapter.
  353         Section 5. Section 554.104, Florida Statutes, is amended to
  354  read:
  355         554.104 Certification of boiler inspectors required;
  356  application; qualifications; renewal Boilers of special design.
  357  The department, at its discretion, may authorize the
  358  construction, installation, and operation of boilers of special
  359  design or construction that do not meet the specific
  360  requirements of the State Boiler Code but are not inconsistent
  361  with the intent of the safety objectives of such code.
  362         (1) CERTIFICATE REQUIRED.—A person may not be, act as, or
  363  advertise or hold himself or herself out to be an inspector of a
  364  boiler that is subject to regulation by this chapter, unless he
  365  or she currently holds a certificate of competency issued by the
  366  department.
  367         (2) APPLICATION.A person who desires to be certified to
  368  inspect boilers that are subject to regulation by this chapter
  369  must apply in writing to the department to take the
  370  certification examination.
  371         (3) QUALIFICATIONS.A person is qualified to take the
  372  certification examination if the person:
  373         (a) Has submitted the application for examination together
  374  with the fee required under s. 554.111(1)(a);
  375         (b) Is at least 18 years of age;
  376         (c) Has completed the 2-hour training course under
  377  subsection (4) on the requirements of this chapter and any
  378  related rules adopted by the department. The course must be
  379  completed no later than 12 months before issuance of an initial
  380  or renewal certificate; and
  381         (d) Has:
  382         1. At least 3 years of experience in the construction,
  383  installation, inspection, operation, maintenance, or repair of
  384  high pressure, high temperature water boilers; or
  385         2. Met the requirements to qualify as a commissioned
  386  inspector by the National Board of Boiler and Pressure Vessel
  387  Inspectors as set forth in NB-263, Rules for National Board
  388  Inservice and New Construction Commissioned Inspectors, as
  389  adopted by rule of the department.
  390         (4) TRAINING COURSE.The department shall adopt by rule a
  391  2-hour training course on the requirements of this chapter and
  392  any related rules adopted by the department. The department
  393  shall make the training course available online and may make the
  394  course available in a classroom setting. A boiler insurance
  395  company may include the department’s course as part of its in
  396  house training of a boiler inspector student, in lieu of the
  397  student taking the online training course. A boiler insurance
  398  company that includes the department’s course in its in-house
  399  training of a boiler inspector student must indicate that the
  400  student completed the training on an application filed with the
  401  department for certification of competency.
  402         (5) EXAMINATION.A person applying for a certificate of
  403  competency must have successfully passed the examination
  404  administered by the National Board of Boiler and Pressure Vessel
  405  Inspectors and be eligible to obtain a National Board
  406  commission.
  407         (6) ISSUANCE OF CERTIFICATE.The chief boiler inspector
  408  must issue a certificate of competency to each person who is
  409  qualified under this section and who holds a commission from the
  410  National Board of Boiler and Pressure Vessel Inspectors.
  411         (7) RENEWAL OF CERTIFICATE.—A certificate of competency
  412  expires on December 31 of each year and may be renewed upon the
  413  filing of a renewal application with the department. A secured
  414  electronic application must be used, if available on the
  415  department’s website.
  416         (8) RULES.The department may adopt rules necessary to
  417  administer this section.
  418         Section 6. Section 554.105, Florida Statutes, is amended to
  419  read:
  420         554.105 Chief boiler inspector.—
  421         (1) The Chief Financial Officer shall appoint a chief
  422  boiler inspector, who must have at least shall have not less
  423  than 5 years’ experience in the construction, installation,
  424  inspection, operation, maintenance, or repair of high pressure,
  425  high temperature water boilers and who must shall hold a
  426  commission from the National Board of Boiler and Pressure Vessel
  427  Inspectors or a certificate of competency from the department.
  428         (2) The department, through the chief boiler inspector,
  429  shall administer the state boiler inspection program, and shall:
  430         (a) Take all action necessary to enforce the State Boiler
  431  Code and the rules adopted pursuant to this chapter ss.
  432  554.1011-554.115.
  433         (b) Keep a complete record on all boilers at public
  434  assembly locations. Such record must shall include the name of
  435  each boiler owner or user and the location, type, dimensions,
  436  maximum allowable working pressure, age, and last recorded
  437  inspection of each boiler, and any other information necessary
  438  to expedite the certification process.
  439         (c) Publish and make available to anyone, upon request,
  440  copies of the rules adopted pursuant to ss. 554.1011-554.115.
  441         (d) Expend funds necessary to meet the expenses authorized
  442  by this chapter ss. 554.1011-554.115, including the necessary
  443  travel expenses of the chief boiler inspector and deputy boiler
  444  inspectors, and the expenses incident to the maintenance of this
  445  his or her office.
  446         Section 7. Section 554.106, Florida Statutes, is amended to
  447  read:
  448         554.106 Deputy boiler inspectors.—
  449         (1) The department shall employ deputy boiler inspectors
  450  who shall be responsible to the chief boiler inspector and who
  451  shall each hold a certificate of competency from the department.
  452         (2) A deputy boiler inspector shall perform inspections of
  453  uninsured boilers that are subject to regulation under this
  454  chapter, in accordance with the inspection frequency set forth
  455  in s. 554.108. A deputy boiler inspector may also engage in
  456  public outreach activities of the department and conduct other
  457  duties as assigned by the chief boiler inspector.
  458         Section 8. Section 554.107, Florida Statutes, is amended to
  459  read:
  460         554.107 Special boiler inspectors.—
  461         (1) Upon application by any authorized inspection agency
  462  company licensed to insure boilers in this state, the chief
  463  boiler inspector shall issue a certificate of competency as a
  464  special boiler inspector to any inspector employed by the
  465  authorized inspection agency company, if provided that such
  466  boiler inspector satisfies the competency requirements for
  467  inspectors as provided in s. 554.104 s. 554.113. Special boiler
  468  inspectors shall perform inspections of insured boilers in
  469  accordance with the inspection frequency set forth in s.
  470  554.108.
  471         (2) The certificate of competency of a special boiler
  472  inspector remains shall remain in effect only so long as the
  473  special boiler inspector is employed by an authorized inspection
  474  agency a company licensed to insure boilers in this state. Upon
  475  termination of employment with such company, such company a
  476  special inspector shall, in writing, notify the chief boiler
  477  inspector of such special boiler inspector’s termination. Such
  478  notice must shall be given within 15 days following the date of
  479  termination.
  480         Section 9. Subsections (1), (2), (4), and (5) of section
  481  554.108, Florida Statutes, are amended, and subsection (6) is
  482  added to that section, to read:
  483         554.108 Inspection.—
  484         (1) The inspection requirements of this chapter apply only
  485  to boilers located in public assembly locations. A potable hot
  486  water supply boiler with a heat input of 200,000 British thermal
  487  units (Btu) per hour and above, up to a heat input not exceeding
  488  400,000 Btu per hour, is exempt from inspection, but must be
  489  stamped with the A.S.M.E. code symbol “HLW” and the boiler’s
  490  A.S.M.E data report must be filed as required under s.
  491  554.103(2) The only boilers required to be inspected under the
  492  provisions of ss. 554.1011-554.115 are boilers located in public
  493  assembly locations.
  494         (2) Each inspection of a boiler conducted pursuant to this
  495  chapter must ss. 554.1011-554.115 shall be made by the chief
  496  boiler inspector, a deputy boiler inspector, or a special boiler
  497  inspector. An owner, or the owner’s designee, shall perform all
  498  operation, testing, manipulation of boiler controls and safety
  499  devices, removal of lagging, and disassembly of boiler
  500  components to allow the chief boiler inspector, deputy boiler
  501  inspector, or special boiler inspector to conduct inspections as
  502  required by this section.
  503         (4) Each boiler subject to inspection must be inspected
  504  within 30 days after expiration of the boiler’s certificate of
  505  operation. However, an inspection report must be received by the
  506  chief boiler inspector no later than 30 days after the projected
  507  expiration date of the certificate of operation. If, upon
  508  inspection, the chief boiler inspector, deputy boiler inspector,
  509  or special boiler inspector finds that a boiler is in violation
  510  of any provision of the State Boiler Code, the inspector must
  511  promptly notify the owner or user and state what repairs or
  512  other corrective measures are needed. Deputy boiler inspectors
  513  and special boiler inspectors shall file a written report, on a
  514  form adopted by rule of the department, on each certificate
  515  inspection with the chief boiler inspector within 15 days after
  516  the following such inspection. A certificate inspection report
  517  must list all violations of the State Boiler Code and any
  518  conditions that may adversely affect the operation of the
  519  boiler. A certificate inspection report filed by a special
  520  boiler inspector must include the fee for issuance of a
  521  certificate of operation as provided in s. 554.111(1)(c). The
  522  filing of reports of inspections, other than statutorily
  523  required certificate inspections, is are not required unless
  524  such inspections disclose that a boiler is in an unsafe
  525  condition. However, an inspection report must be filed for any
  526  inspection performed on a boiler with a previously identified
  527  code violation. The report must indicate whether the violation
  528  has been corrected. The agency responsible for conducting the
  529  inspection must perform followup inspections, not more often
  530  than every 4 months, of a previously identified code violation
  531  until it is corrected. Failure to conduct such followup
  532  inspections subjects the insurance carrier to the penalties
  533  provided in s. 554.114(4).
  534         (5) Upon a determination by the chief boiler inspector
  535  determining that a boiler cannot be safely operated, is in an
  536  unsafe condition and poses an imminent danger to the public
  537  health, safety, and welfare, the chief inspector, a deputy
  538  inspector, or a special inspector may immediately order the
  539  boiler must immediately to be shut down. The chief boiler
  540  inspector or a deputy boiler inspector shall attach a tag to the
  541  boiler indicating that the boiler has been shut down due to an
  542  unsafe condition. The boiler must shall remain shut down until a
  543  reinspection by the chief boiler inspector or a deputy boiler a
  544  certified inspector determines that all violations have been
  545  corrected, that the boiler may be operated safely, and that a
  546  certificate of compliance has been issued. A boiler that may not
  547  be safely operated, as determined by the chief boiler inspector,
  548  is deemed to constitute an imminent danger to the public health,
  549  safety, and welfare.
  550         (6) The department may adopt rules necessary to administer
  551  this section.
  552         Section 10. Section 554.1081, Florida Statutes, is created
  553  to read:
  554         554.1081 Boiler inspections by insurance companies and
  555  local governmental agencies.—
  556         (1) An insurance company insuring a boiler located in a
  557  public assembly location in this state shall inspect, or shall
  558  contract with an authorized inspection agency to inspect, the
  559  insured boiler. A boiler insurance company shall annually report
  560  to the department the name of any authorized inspection agency
  561  performing any required boiler inspections on its behalf and
  562  shall actively monitor insured boilers to ensure that
  563  inspections are conducted as required by this chapter.
  564         (2)A county, municipality, town, or other governmental
  565  subdivision that has adopted into law the Boiler and Pressure
  566  Vessel Code of the A.S.M.E. and the National Board Inspection
  567  Code for the construction, installation, inspection,
  568  maintenance, and repair of boilers to regulate boilers in public
  569  assembly locations may inspect such boilers. All boiler
  570  inspections must be conducted by special boiler inspectors in
  571  accordance with this chapter.
  572         Section 11. Section 554.109, Florida Statutes, is amended
  573  to read:
  574         554.109 Exemptions.—
  575         (1) Any insurance company insuring a boiler located in a
  576  public assembly location in this state shall inspect such boiler
  577  so insured, and any county, city, town, or other governmental
  578  subdivision which has adopted into law the Boiler and Pressure
  579  Vessel Code of the American Society of Mechanical Engineers and
  580  the National Board Inspection Code for the construction,
  581  installation, inspection, maintenance, and repair of boilers,
  582  regulating such boilers in public assembly locations, shall
  583  inspect such boilers so regulated; provided that such inspection
  584  shall be conducted by a special inspector licensed pursuant to
  585  ss. 554.1011-554.115. Upon filing of a report of satisfactory
  586  inspection with the department, such boiler is exempt from
  587  inspection by the department.
  588         (2) The provisions of This chapter does shall not apply to
  589  potable hot water supply boilers or lined storage water heaters
  590  that which are directly fired with oil, gas, electricity, or
  591  solar energy, provided that none of the following limitations is
  592  are exceeded:
  593         (1)(a) Heat input of 400,000 Btu per hour.
  594         (2)(b) Water temperature of 210 degrees Fahrenheit.
  595         (3)(c) Nominal water-containing capacity of 120 gallons.
  596  
  597  These exempt hot water supply boilers and lined storage water
  598  heaters shall be equipped with safety relief valves conforming
  599  to the requirements of the Boiler and Pressure Vessel Code of
  600  the American Society of Mechanical Engineers and of the National
  601  Board Inspection Code.
  602         Section 12. Section 554.1101, Florida Statutes, is amended
  603  to read:
  604         554.1101 Certificate of operation compliance.—
  605         (1) If an inspection report filed pursuant to s. 554.108
  606  shows a boiler to be in compliance with all applicable
  607  provisions of the State Boiler Code, the chief boiler inspector
  608  must shall, upon receipt of the inspection fee, issue a
  609  certificate of operation compliance to the owner. Such
  610  certificate must shall bear the date of the inspection and
  611  specify the maximum pressure at which the boiler may be
  612  operated.
  613         (2) The certificate for a power boiler or a high pressure,
  614  high temperature water boiler is valid for a period of 12 months
  615  from the date of the certificate inspection. The certificate for
  616  a heating boiler or a hot water supply boiler is valid for a
  617  period of 24 months from the date of the certificate inspection.
  618  The certificate must shall be posted under glass, or be
  619  similarly protected, in the room containing the boiler.
  620         (3) A boiler insurance company shall notify the chief
  621  boiler inspector within 30 days after the issuance of a new or
  622  renewal boiler and machinery insurance policy, or the
  623  cancellation or nonrenewal of a boiler and machinery insurance
  624  policy, covering places of public assembly in this state.
  625         (4) If the chief boiler inspector has knowledge that a
  626  boiler regulated under this chapter was covered by a boiler and
  627  machinery insurance policy after its most recent certification
  628  inspection, the certificateholder must, upon the request of the
  629  chief boiler inspector, submit its certificate of boiler and
  630  machinery insurance for the boiler if the department has not
  631  received the special boiler inspector’s annual inspection report
  632  within 30 days after its due date.
  633         Section 13. Section 554.111, Florida Statutes, is amended
  634  to read:
  635         554.111 Fees.—
  636         (1) The department shall charge the following fees:
  637         (a) For an applicant for a certificate of competency, the
  638  initial application fee shall be $50, and the annual renewal fee
  639  shall be $30. The fee for examination shall be $50.
  640         (b) For certificate inspections conducted by the
  641  department:
  642         1. For power boilers and high pressure, high temperature
  643  water boilers of:
  644  4,000 square feet or less heating surface....................$60
  645  More than 4,000 square feet heating surface and less than 10,000
  646  square feet of heating surface...............................$70
  647  10,000 square feet or more heating surface...................$90
  648         2. For heating boilers:
  649  Without a manhole............................................$40
  650  With a manhole...............................................$70
  651         3. For hot water supply boilers.......................$40
  652         (c) For issuance of a compliance certificate of operation
  653  without a department inspection..............................$30
  654         (d) Duplicate certificates or address
  655  changes.......................................................$5
  656         (e) An application for a boiler permit must include the
  657  applicable certificate inspection fee provided in paragraph (b).
  658         (2) Not more than an amount equal to one certificate
  659  inspection fee may shall be charged or collected for any and all
  660  boiler inspections in any inspection period, except as otherwise
  661  provided in this chapter ss. 554.1011-554.115.
  662         (a) When it is necessary to make a special trip to observe
  663  the application of a hydrostatic test, an additional fee equal
  664  to the fee for a certificate inspection of the boiler must shall
  665  be charged.
  666         (b) All other inspections, including shop inspections,
  667  surveys, and inspections of secondhand boilers made by the chief
  668  boiler inspector or a deputy boiler inspector, must shall be
  669  charged at the rate of not less than $270 for one-half day of 4
  670  hours, and $500 for 1 full day of 8 hours, plus travel, hotel,
  671  and incidental expenses in accordance with chapter 112.
  672         (3) The chief boiler inspector shall deposit all fees or
  673  fines received pursuant to this chapter ss. 554.1011-554.115
  674  into the Insurance Regulatory Trust Fund.
  675         Section 14. Sections 554.112 and 554.113, Florida Statutes,
  676  are repealed.
  677         Section 15. Section 554.114, Florida Statutes, is amended
  678  to read:
  679         554.114 Prohibitions; penalties.—
  680         (1) A person may not:
  681         (a) Operate a boiler at a public assembly location without
  682  a valid certificate of operation compliance for that boiler;
  683         (b) Give false or forged information to the department or
  684  an inspector for the purpose of obtaining a certificate of
  685  compliance;
  686         (c) Use a certificate of operation compliance for any
  687  boiler other than for the boiler for which it was issued;
  688         (c)(d) Operate a boiler for which the certificate of
  689  operation compliance has been suspended, revoked, or not
  690  renewed;
  691         (e) Give false or forged information to the department for
  692  the purpose of obtaining a certificate of competence; or
  693         (d)(f) Inspect any boiler regulated under this chapter the
  694  provisions of ss. 554.1011-554.115 without having a valid
  695  certificate of competency.
  696         (2) A boiler insurance company that fails to inspect or to
  697  have inspected, in accordance with this chapter, any boiler
  698  insured by the company and regulated under this chapter is
  699  subject to the penalties provided in subsection (4) Any person
  700  who violates this section is guilty of a misdemeanor of the
  701  second degree, punishable by fine as provided in s. 775.083.
  702         (3) An authorized inspection agency that is under contract
  703  with a boiler insurance company and that fails to inspect, in
  704  accordance with this chapter, any boiler insured by the company
  705  and regulated under this chapter is subject to the penalties
  706  provided in subsection (4).
  707         (4)A boiler insurance company, authorized inspection
  708  agency, or other person in violation of this section for more
  709  than 30 days shall pay a fine of $10 per day for the first 10
  710  days of noncompliance, $50 per day for the subsequent 20 days of
  711  noncompliance, and $100 per day for each subsequent day over 20
  712  days of noncompliance.
  713         Section 16. Section 554.115, Florida Statutes, is amended
  714  to read:
  715         554.115 Disciplinary proceedings.—
  716         (1) The department may deny, refuse to renew, suspend, or
  717  revoke a certificate of operation compliance upon proof that:
  718         (a) The certificate has been obtained by fraud or
  719  misrepresentation;
  720         (b) The boiler for which the certificate was issued cannot
  721  be operated safely; or
  722         (c) The person who received the certificate willfully or
  723  deliberately violated the State Boiler Code, this chapter, or
  724  ss. 554.1011-554.115 or any other rule adopted pursuant to this
  725  chapter; or ss. 554.1011-554.115.
  726         (d) The owner of a boiler:
  727         1. Operated a boiler at a public assembly location without
  728  a valid certificate of operation for that boiler;
  729         2. Used a certificate of operation for a boiler other than
  730  the boiler for which the certificate of operation was issued;
  731         3. Gave false or forged information to the department, to
  732  an authorized inspection agency, or to another boiler inspector
  733  for the purpose of obtaining a certificate of operation;
  734         4. Operated a boiler after the certificate of operation for
  735  the boiler expired, was not renewed, or was suspended or
  736  revoked;
  737         5. Operated a boiler that is in an unsafe condition; or
  738         6. Operated a boiler in a manner that is contrary to the
  739  requirements of this chapter or any rule adopted under this
  740  chapter.
  741         (2) The department may deny, refuse to renew, suspend, or
  742  revoke a certificate of competency upon proof that:
  743         (a) The certificate was obtained by fraud or
  744  misrepresentation;
  745         (b) The inspector to whom the certificate was issued is no
  746  longer qualified under this chapter ss. 554.1011-554.115 to
  747  inspect boilers; or
  748         (c) The boiler inspector:
  749         1. Operated a boiler at a public assembly location without
  750  a valid certificate of compliance for that boiler;
  751         2. Gave false or forged information to the department, an
  752  authorized inspection agency, or to another boiler inspector for
  753  the purpose of obtaining a certificate of operation; or
  754  compliance;
  755         3. Used a certificate of compliance for any boiler other
  756  than the boiler for which it was issued;
  757         4. Operated a boiler for which the certificate of
  758  compliance has been suspended or revoked or has expired;
  759         2.5. Inspected any boiler regulated under this chapter ss.
  760  554.1011-554.115 without having obtained a valid certificate of
  761  competency.;
  762         6. Operated a boiler that is in an unsafe condition; or
  763         7. Operated a boiler in a manner that is contrary to the
  764  requirements of this chapter or any rule adopted under this
  765  chapter.
  766         (3) Each suspension of a certificate of operation
  767  compliance or certificate of competency shall continue in effect
  768  until all violations have been corrected and, for boiler safety
  769  violations, until the boiler has been inspected by an authorized
  770  inspector and shown to be in a safe working condition.
  771         (4) A person in violation of this section who does not have
  772  a valid certificate of competency shall be reported by the chief
  773  inspector to the appropriate state attorney.
  774         (5) A person in violation of this section who has a valid
  775  certificate of competency is subject to administrative action by
  776  the chief inspector.
  777         (4)(6) A revocation of a certificate of competency is
  778  permanent, and a revoked certificate of competency may not be
  779  reinstated or a new certificate of competency issued to the same
  780  person. A suspension of a certificate of competency continues in
  781  effect until all violations have been corrected. A suspension of
  782  a certificate of compliance for any boiler safety violation
  783  continues in effect until the boiler has been inspected by an
  784  authorized inspector and shown to be in safe working condition.
  785         Section 17. Section 554.1151, Florida Statutes, is created
  786  to read:
  787         554.1151 Administrative fine in lieu of or in addition to
  788  suspension, revocation, or refusal to renew a certificate of
  789  operation or competency.—
  790         (1) If the department finds that one or more grounds exist
  791  for the suspension, revocation, or refusal to renew any
  792  certificate of operation or certificate of competency issued
  793  under this chapter, the department may, in its discretion, in
  794  lieu of or in addition to suspension or revocation or in lieu of
  795  refusal to renew, impose upon the certificateholder an
  796  administrative penalty in an amount up to $500, or, if the
  797  department has found willful misconduct or willful violation on
  798  the part of the certificateholder, in an amount up to $3,500.
  799         (2) The department may allow the certificateholder a
  800  reasonable period, no more than 30 days, within which to pay to
  801  the department the amount of the penalty so imposed. If the
  802  certificateholder fails to pay the penalty in its entirety to
  803  the department within the period so allowed, the certificate of
  804  that person must be suspended until the penalty is paid. If the
  805  certificateholder fails to pay the penalty in its entirety to
  806  the department within 90 days after the period so allowed, the
  807  certificate of that person must be revoked.
  808         Section 18. Section 554.116, Florida Statutes, is created
  809  to read:
  810         554.116 Report on insured losses.—A boiler insurance
  811  company that insures any boiler in this state must annually file
  812  a report with the chief boiler inspector, within 30 days after
  813  the end of the previous calendar year, regarding claims paid by
  814  the insurer under policies insuring boilers in this state. The
  815  report must include the type of establishment in which the
  816  boiler was located, the location of the establishment, the
  817  amount of the loss, the apparent cause of the loss, and any
  818  other information that the department determines is not
  819  inconsistent with the intent of the safety objectives of the
  820  State Boiler Code. The department shall adopt a form by rule for
  821  submission of the report.
  822         Section 19. Subsection (7) of section 624.307, Florida
  823  Statutes, is amended to read:
  824         624.307 General powers; duties.—
  825         (7) The department and office, within existing resources,
  826  may expend funds for the professional development of its
  827  employees, including, but not limited to, professional dues for
  828  employees who are required to be members of professional
  829  organizations; examinations leading to professional designations
  830  required for employment with the office; training courses and
  831  examinations provided through, and to ensure compliance with,
  832  the National Association of Insurance Commissioners; or other
  833  training courses related to the regulation of insurance.
  834         Section 20. Present subsections (1), (2), and (3) and (4)
  835  through (19) of section 626.015, Florida Statutes, are
  836  redesignated as subsections (2), (3), and (4) and (6) through
  837  (21), respectively, present subsection (8) is amended, and new
  838  subsections (1) and (5) are added to that section, to read:
  839         626.015 Definitions.—As used in this part:
  840         (1) “Active participant” means a member in good standing of
  841  an association who attends 4 or more hours of association
  842  meetings every year, not including any department-approved
  843  continuing education course.
  844         (5) “Association” includes the Florida Association of
  845  Insurance Agents (FAIA), the National Association of Insurance
  846  and Financial Advisors (NAIFA), the Florida Association of
  847  Health Underwriters (FAHU), the Latin American Association of
  848  Insurance Agencies (LAAIA), the Florida Association of Public
  849  Insurance Adjusters (FAPIA), the Florida Bail Agents Association
  850  (FBAA), or the Professional Bail Agents of the United States
  851  (PBUS).
  852         (10)(8) “Insurance agency” means a business location at
  853  which an individual, firm, partnership, corporation,
  854  association, or other entity, other than an employee of the
  855  individual, firm, partnership, corporation, association, or
  856  other entity and other than an insurer as defined by s. 624.03
  857  or an adjuster as defined by subsection (2) (1), engages in any
  858  activity or employs individuals to engage in any activity which
  859  by law may be performed only by a licensed insurance agent.
  860         Section 21. Section 626.207, Florida Statutes, is amended
  861  to read:
  862         626.207 Disqualification of applicants and licensees;
  863  penalties against licensees; rulemaking authority.—
  864         (1) For purposes of this section, the term or terms:
  865         (a) “Applicant” means an individual applying for licensure
  866  or relicensure under this chapter, and an officer, director,
  867  majority owner, partner, manager, or other person who manages or
  868  controls an entity applying for licensure or relicensure under
  869  this chapter.
  870         (c) “Financial services business” means any financial
  871  activity regulated by the Department of Financial Services, the
  872  Office of Insurance Regulation, or the Office of Financial
  873  Regulation.
  874         (b)(2)For purposes of this section, the terms “Felony of
  875  the first degree” and “capital felony” include all felonies
  876  designated as such by the Florida Statutes, as well as any
  877  felony so designated in the jurisdiction in which the plea is
  878  entered or judgment is rendered.
  879         (2)(3) An applicant who has been found guilty of or has
  880  pleaded guilty or nolo contendere to any of the following
  881  crimes, regardless of adjudication, is permanently barred from
  882  licensure under this chapter: commits
  883         (a) A felony of the first degree;
  884         (b) A capital felony;
  885         (c) A felony involving money laundering;, fraud, or
  886         (d) A felony embezzlement; or
  887         (e) A felony directly related to the financial services
  888  business is permanently barred from applying for a license under
  889  this part. This bar applies to convictions, guilty pleas, or
  890  nolo contendere pleas, regardless of adjudication, by any
  891  applicant, officer, director, majority owner, partner, manager,
  892  or other person who manages or controls any applicant.
  893         (3)(4)An applicant who has been found guilty of or has
  894  pleaded guilty or nolo contendere to a crime For all other
  895  crimes not included in subsection (2), regardless of
  896  adjudication, is subject to (3), the department shall adopt
  897  rules establishing the process and application of disqualifying
  898  periods that include:
  899         (a) A 15-year disqualifying period for all felonies
  900  involving moral turpitude which that are not specifically
  901  included in the permanent bar contained in subsection (2) (3).
  902         (b) A 7-year disqualifying period for all felonies to which
  903  neither the permanent bar in subsection (2) (3) nor the 15-year
  904  disqualifying period in paragraph (a) applies.
  905         (c) A 7-year disqualifying period for all misdemeanors
  906  directly related to the financial services business.
  907         (4)(5) The department shall adopt rules to administer this
  908  section. The rules must provide providing for additional
  909  disqualifying periods due to the commitment of multiple crimes
  910  and may include other factors reasonably related to the
  911  applicant’s criminal history. The rules shall provide for
  912  mitigating and aggravating factors. However, mitigation may not
  913  result in a period of disqualification of less than 7 years and
  914  may not mitigate the disqualifying periods in paragraphs (3)(b)
  915  and (c) (4)(b) and (c).
  916         (5)(6) For purposes of this section, the disqualifying
  917  periods begin upon the applicant’s final release from
  918  supervision or upon completion of the applicant’s criminal
  919  sentence, including payment of fines, restitution, and court
  920  costs for the crime for which the disqualifying period applies.
  921  The department may not issue a license to an applicant unless
  922  all related fines, court costs and fees, and court-ordered
  923  restitution have been paid.
  924         (6)(7) After the disqualifying period has expired been met,
  925  the burden is on the applicant to demonstrate that the applicant
  926  has been rehabilitated, does not pose a risk to the insurance
  927  buying public, is fit and trustworthy to engage in the business
  928  of insurance pursuant to s. 626.611(1)(g), and is otherwise
  929  qualified for licensure.
  930         (7)Notwithstanding subsections (2) and (3), upon a grant
  931  of a pardon or the restoration of civil rights pursuant to
  932  chapter 940 and s. 8, Art. IV of the State Constitution with
  933  respect to a finding of guilt or a plea under subsection (2) or
  934  subsection (3), such finding or plea no longer bars or
  935  disqualifies the applicant from licensure under this chapter
  936  unless the clemency specifically excludes licensure in the
  937  financial services business; however, a pardon or restoration of
  938  civil rights does not require the department to award such
  939  license.
  940         (8) The department shall adopt rules establishing specific
  941  penalties against licensees in accordance with ss. 626.641 and
  942  626.651 for violations of s. 626.611, s. 626.621, s. 626.8437,
  943  s. 626.844, s. 626.935, s. 634.181, s. 634.191, s. 634.320, s.
  944  634.321, s. 634.422, s. 634.423, s. 642.041, or s. 642.043. The
  945  purpose of the revocation or suspension is to provide a
  946  sufficient penalty to deter future violations of the Florida
  947  Insurance Code. The imposition of a revocation or the length of
  948  suspension shall be based on the type of conduct and the
  949  probability that the propensity to commit further illegal
  950  conduct has been overcome at the time of eligibility for
  951  relicensure. The length of suspension may be adjusted based on
  952  aggravating or mitigating factors, established by rule and
  953  consistent with this purpose.
  954         (9) Section 112.011 does not apply to any applicants for
  955  licensure under the Florida Insurance Code, including, but not
  956  limited to, agents, agencies, adjusters, adjusting firms,
  957  customer representatives, or managing general agents.
  958         Section 22. Section 626.9954, Florida Statutes, is amended
  959  to read:
  960         626.9954 Disqualification from registration.—
  961         (1) As used in this section, the terms “felony of the first
  962  degree” and “capital felony” include all felonies so designated
  963  by the laws of this state, as well as any felony so designated
  964  in the jurisdiction in which the plea is entered or judgment is
  965  rendered.
  966         (2) An applicant who has been found guilty of or has
  967  pleaded guilty or nolo contendere to the following crimes,
  968  regardless of adjudication, is permanently disqualified from
  969  registration under this part: commits
  970         (a) A felony of the first degree;
  971         (b) A capital felony;
  972         (c) A felony involving money laundering;, fraud, or
  973         (d) A felony embezzlement; or
  974         (e) A felony directly related to the financial services
  975  business is permanently barred from applying for registration
  976  under this part. This bar applies to convictions, guilty pleas,
  977  or nolo contendere pleas, regardless of adjudication, by an
  978  applicant.
  979         (3) An applicant who has been found guilty of or has
  980  pleaded guilty or nolo contendere to a crime For all other
  981  crimes not described in subsection (2), regardless of
  982  adjudication, is subject to the department may adopt rules
  983  establishing the process and application of disqualifying
  984  periods including:
  985         (a) A 15-year disqualifying period for all felonies
  986  involving moral turpitude which are not specifically included in
  987  subsection (2).
  988         (b) A 7-year disqualifying period for all felonies not
  989  specifically included in subsection (2) or paragraph (a).
  990         (c) A 7-year disqualifying period for all misdemeanors
  991  directly related to the financial services business.
  992         (4) The department may adopt rules to administer this
  993  section. The rules must provide for providing additional
  994  disqualifying periods due to the commitment of multiple crimes
  995  and may include other factors reasonably related to the
  996  applicant’s criminal history. The rules must provide for
  997  mitigating and aggravating factors. However, mitigation may not
  998  result in a disqualifying period of less than 7 years and may
  999  not mitigate the disqualifying periods in paragraph (3)(b) or
 1000  paragraph (3)(c).
 1001         (5) For purposes of this section, the disqualifying periods
 1002  begin upon the applicant’s final release from supervision or
 1003  upon completion of the applicant’s criminal sentence, including
 1004  the payment of fines, restitution, and court costs for the crime
 1005  for which the disqualifying period applies. The department may
 1006  not issue a registration to an applicant unless all related
 1007  fines, court costs and fees, and court-ordered restitution have
 1008  been paid.
 1009         (6) After the disqualifying period has expired been met,
 1010  the burden is on the applicant to demonstrate to the
 1011  satisfaction of the department that he or she has been
 1012  rehabilitated and does not pose a risk to the insurance-buying
 1013  public and is otherwise qualified for registration.
 1014         (7)Notwithstanding subsections (2) and (3), upon a grant
 1015  of a pardon or the restoration of civil rights pursuant to
 1016  chapter 940 and s. 8, Art. IV of the State Constitution with
 1017  respect to a finding of guilt or a plea under subsection (2) or
 1018  subsection (3), such finding or plea no longer bars or
 1019  disqualifies the applicant from applying for registration under
 1020  this part unless the clemency specifically excludes licensure or
 1021  specifically excludes registration in the financial services
 1022  business; however, a pardon or restoration of civil rights does
 1023  not require the department to award such registration.
 1024         (8)(7) Section 112.011 does not apply to an applicant for
 1025  registration as a navigator.
 1026         Section 23. Paragraph (a) of subsection (3) of section
 1027  626.2815, Florida Statutes, is amended, and paragraph (j) is
 1028  added to that subsection, to read:
 1029         626.2815 Continuing education requirements.—
 1030         (3) Each licensee except a title insurance agent must
 1031  complete a 5-hour update course every 2 years which is specific
 1032  to the license held by the licensee. The course must be
 1033  developed and offered by providers and approved by the
 1034  department. The content of the course must address all lines of
 1035  insurance for which examination and licensure are required and
 1036  include the following subject areas: insurance law updates,
 1037  ethics for insurance professionals, disciplinary trends and case
 1038  studies, industry trends, premium discounts, determining
 1039  suitability of products and services, and other similar
 1040  insurance-related topics the department determines are relevant
 1041  to legally and ethically carrying out the responsibilities of
 1042  the license granted. A licensee who holds multiple insurance
 1043  licenses must complete an update course that is specific to at
 1044  least one of the licenses held. Except as otherwise specified,
 1045  any remaining required hours of continuing education are
 1046  elective and may consist of any continuing education course
 1047  approved by the department under this section.
 1048         (a) Except as provided in paragraphs (b), (c), (d), (e),
 1049  and (i), and (j), each licensee must also complete 19 hours of
 1050  elective continuing education courses every 2 years.
 1051         (j) For a licensee who is an active participant in an
 1052  association, 2 hours of elective continuing education credit per
 1053  calendar year may be approved by the department, if properly
 1054  reported by the association.
 1055         Section 24. Paragraph (n) of subsection (1) and subsection
 1056  (2) of section 626.611, Florida Statutes, are amended to read:
 1057         626.611 Grounds for compulsory refusal, suspension, or
 1058  revocation of agent’s, title agency’s, adjuster’s, customer
 1059  representative’s, service representative’s, or managing general
 1060  agent’s license or appointment.—
 1061         (1) The department shall deny an application for, suspend,
 1062  revoke, or refuse to renew or continue the license or
 1063  appointment of any applicant, agent, title agency, adjuster,
 1064  customer representative, service representative, or managing
 1065  general agent, and it shall suspend or revoke the eligibility to
 1066  hold a license or appointment of any such person, if it finds
 1067  that as to the applicant, licensee, or appointee any one or more
 1068  of the following applicable grounds exist:
 1069         (n) Having been found guilty of or having pleaded guilty or
 1070  nolo contendere to a felony or a crime punishable by
 1071  imprisonment of 1 year or more under the law of the United
 1072  States of America or of any state thereof or under the law of
 1073  any other country which involves moral turpitude, without regard
 1074  to whether a judgment of conviction has been entered by the
 1075  court having jurisdiction of such cases.
 1076         (2) The department shall, upon receipt of information or an
 1077  indictment, immediately temporarily suspend a license or
 1078  appointment issued under this chapter when the licensee is
 1079  charged with a felony enumerated in s. 626.207(2) s. 626.207(3).
 1080  Such suspension shall continue if the licensee is found guilty
 1081  of, or pleads guilty or nolo contendere to, the crime,
 1082  regardless of whether a judgment or conviction is entered,
 1083  during a pending appeal. A person may not transact insurance
 1084  business after suspension of his or her license or appointment.
 1085         Section 25. Subsection (8) of section 626.621, Florida
 1086  Statutes, is amended, and a new subsection (15) is added to that
 1087  section, to read:
 1088         626.621 Grounds for discretionary refusal, suspension, or
 1089  revocation of agent’s, adjuster’s, customer representative’s,
 1090  service representative’s, or managing general agent’s license or
 1091  appointment.—The department may, in its discretion, deny an
 1092  application for, suspend, revoke, or refuse to renew or continue
 1093  the license or appointment of any applicant, agent, adjuster,
 1094  customer representative, service representative, or managing
 1095  general agent, and it may suspend or revoke the eligibility to
 1096  hold a license or appointment of any such person, if it finds
 1097  that as to the applicant, licensee, or appointee any one or more
 1098  of the following applicable grounds exist under circumstances
 1099  for which such denial, suspension, revocation, or refusal is not
 1100  mandatory under s. 626.611:
 1101         (8) Having been found guilty of or having pleaded guilty or
 1102  nolo contendere to a felony or a crime punishable by
 1103  imprisonment of 1 year or more under the law of the United
 1104  States of America or of any state thereof or under the law of
 1105  any other country, without regard to whether a judgment of
 1106  conviction has been entered by the court having jurisdiction of
 1107  such cases.
 1108         (15) Denial, suspension, or revocation of, or any other
 1109  adverse administrative action against, a license to practice or
 1110  conduct any regulated profession, business, or vocation by this
 1111  state, any other state, any nation, any possession or district
 1112  of the United States, any court, or any lawful agency thereof.
 1113         Section 26. Subsection (2) of section 626.7845, Florida
 1114  Statutes, is amended to read:
 1115         626.7845 Prohibition against unlicensed transaction of life
 1116  insurance.—
 1117         (2) Except as provided in s. 626.112(6), with respect to
 1118  any line of authority specified in s. 626.015(12) s.
 1119  626.015(10), an no individual may not shall, unless licensed as
 1120  a life agent:
 1121         (a) Solicit insurance or annuities or procure applications;
 1122         (b) In this state, engage or hold himself or herself out as
 1123  engaging in the business of analyzing or abstracting insurance
 1124  policies or of counseling or advising or giving opinions to
 1125  persons relative to insurance or insurance contracts, unless the
 1126  individual is other than:
 1127         1. As A consulting actuary advising insurers an insurer; or
 1128         2. An employee As to the counseling and advising of a labor
 1129  union, association, employer, or other business entity labor
 1130  unions, associations, trustees, employers, or other business
 1131  entities, or the subsidiaries and affiliates of each, who
 1132  counsels and advises such entity or entities relative to their
 1133  interests and those of their members or employees under
 1134  insurance benefit plans; or
 1135         3. A trustee advising a settlor, a beneficiary, or a person
 1136  regarding his or her interests in a trust, relative to insurance
 1137  benefit plans; or
 1138         (c) In this state, from this state, or with a resident of
 1139  this state, offer or attempt to negotiate on behalf of another
 1140  person a viatical settlement contract as defined in s. 626.9911.
 1141         Section 27. Section 626.8305, Florida Statutes, is amended
 1142  to read:
 1143         626.8305 Prohibition against the unlicensed transaction of
 1144  health insurance.—Except as provided in s. 626.112(6), with
 1145  respect to any line of authority specified in s. 626.015(8) s.
 1146  626.015(6), an no individual may not shall, unless licensed as a
 1147  health agent:
 1148         (1) Solicit insurance or procure applications; or
 1149         (2) In this state, engage or hold himself or herself out as
 1150  engaging in the business of analyzing or abstracting insurance
 1151  policies or of counseling or advising or giving opinions to
 1152  persons relative to insurance contracts, unless the individual
 1153  is other than:
 1154         (a) As A consulting actuary advising insurers; or
 1155         (b) An employee As to the counseling and advising of a
 1156  labor union, association, employer, or other business entity
 1157  labor unions, associations, trustees, employers, or other
 1158  business entities, or the subsidiaries and affiliates of each,
 1159  who counsels and advises such entity or entities relative to
 1160  their interests and those of their members or employees under
 1161  insurance benefit plans; or.
 1162         (c) A trustee advising a settlor, a beneficiary, or a
 1163  person regarding his or her interests in a trust, relative to
 1164  insurance benefit plans.
 1165         Section 28. Subsection (1) of section 626.861, Florida
 1166  Statutes, is amended to read:
 1167         626.861 Insurer’s officers, insurer’s employees, reciprocal
 1168  insurer’s representatives; adjustments by.—
 1169         (1) This part may not Nothing in this part shall be
 1170  construed to prevent an executive officer of any insurer, or a
 1171  regularly salaried employee of an insurer handling claims with
 1172  respect to health insurance, a regular employee of an insurer
 1173  handling claims with respect to residential property when the
 1174  sublimit coverage does not exceed $500, or the duly designated
 1175  attorney or agent authorized and acting for subscribers to
 1176  reciprocal insurers, from adjusting any claim loss or damage
 1177  under any insurance contract of such insurer.
 1178         Section 29. Paragraph (c) of subsection (5) and subsection
 1179  (6) of section 626.9543, Florida Statutes, are amended to read:
 1180         626.9543 Holocaust victims.—
 1181         (5) PROOF OF A CLAIM.—Any insurer doing business in this
 1182  state, in receipt of a claim from a Holocaust victim or from a
 1183  beneficiary, descendant, or heir of a Holocaust victim, shall:
 1184         (c) Permit claims irrespective of any statute of
 1185  limitations or notice requirements imposed by any insurance
 1186  policy issued, provided the claim is submitted on or before July
 1187  1, 2018.
 1188         (6) STATUTE OF LIMITATIONS.—Notwithstanding any law or
 1189  agreement among the parties to an insurance policy to the
 1190  contrary, any action brought by Holocaust victims or by a
 1191  beneficiary, heir, or a descendant of a Holocaust victim seeking
 1192  proceeds of an insurance policy issued or in effect between 1920
 1193  and 1945, inclusive, may shall not be dismissed for failure to
 1194  comply with the applicable statute of limitations or laches
 1195  provided the action is commenced on or before July 1, 2018.
 1196         Section 30. Section 633.516, Florida Statutes, is amended
 1197  to read:
 1198         633.516 Studies of Division to make study of firefighter
 1199  employee occupational diseases of firefighters or persons in
 1200  other fire-related fields.—The division may contract for
 1201  studies, subject to the availability of funding, of shall make a
 1202  continuous study of firefighter employee occupational diseases
 1203  of firefighters or persons in other fire-related fields and the
 1204  ways and means for the their control and prevention of such
 1205  occupational diseases. When such a study or another study that
 1206  is wholly or partly funded under an agreement, including a
 1207  contract or grant, with the department tracks a disease of an
 1208  individual firefighter or a person in another fire-related
 1209  field, the division may, with associated security measures,
 1210  release the confidential information, including a social
 1211  security number, of that individual to a party who has entered
 1212  into an agreement with the department and shall adopt rules
 1213  necessary for such control and prevention. For this purpose, the
 1214  division is authorized to cooperate with firefighter employers,
 1215  firefighter employees, and insurers and with the Department of
 1216  Health.
 1217         Section 31. Paragraph (a) of subsection (6) and subsection
 1218  (7) of section 768.28, Florida Statutes, are amended to read:
 1219         768.28 Waiver of sovereign immunity in tort actions;
 1220  recovery limits; limitation on attorney fees; statute of
 1221  limitations; exclusions; indemnification; risk management
 1222  programs.—
 1223         (6)(a) An action may not be instituted on a claim against
 1224  the state or one of its agencies or subdivisions unless the
 1225  claimant presents the claim in writing to the appropriate
 1226  agency, and also, except as to any claim against a municipality,
 1227  or the Florida Space Authority, or a subdivision of the state,
 1228  presents such claim in writing to the Department of Financial
 1229  Services, within 3 years after such claim accrues and the
 1230  Department of Financial Services or the appropriate agency
 1231  denies the claim in writing; except that, if:
 1232         1. Such claim is for contribution pursuant to s. 768.31, it
 1233  must be so presented within 6 months after the judgment against
 1234  the tortfeasor seeking contribution has become final by lapse of
 1235  time for appeal or after appellate review or, if there is no
 1236  such judgment, within 6 months after the tortfeasor seeking
 1237  contribution has either discharged the common liability by
 1238  payment or agreed, while the action is pending against her or
 1239  him, to discharge the common liability; or
 1240         2. Such action is for wrongful death, the claimant must
 1241  present the claim in writing to the Department of Financial
 1242  Services within 2 years after the claim accrues.
 1243         (7) In actions brought pursuant to this section, process
 1244  shall be served upon the head of the agency concerned and also,
 1245  except as to a defendant municipality, or the Florida Space
 1246  Authority, or subdivision of the state, upon the Department of
 1247  Financial Services; and the department or the agency concerned
 1248  shall have 30 days within which to plead thereto.
 1249         Section 32. Subsections (3) and (4) and paragraph (e) of
 1250  subsection (5) of section 288.706, Florida Statutes, are amended
 1251  to read:
 1252         288.706 Florida Minority Business Loan Mobilization
 1253  Program.—
 1254         (3) Notwithstanding ss. 215.422(15) and 216.181(16) ss.
 1255  215.422(14) and 216.181(16), and pursuant to s. 216.351, under
 1256  the Florida Minority Business Loan Mobilization Program, a state
 1257  agency may disburse up to 10 percent of the base contract award
 1258  amount to assist a minority business enterprise vendor that is
 1259  awarded a state agency contract for goods or services in
 1260  obtaining working capital financing as provided in subsection
 1261  (5).
 1262         (4) Notwithstanding ss. 215.422(15) and 216.181(16) ss.
 1263  215.422(14) and 216.181(16), and pursuant to s. 216.351, in lieu
 1264  of applying for participation in the Florida Minority Business
 1265  Loan Mobilization Program, a minority business enterprise vendor
 1266  awarded a state agency contract for the performance of
 1267  professional services may apply with that contracting state
 1268  agency for up to 5 percent of the base contract award amount.
 1269  The contracting state agency may award such advance in order to
 1270  facilitate the performance of that contract.
 1271         (5) The following Florida Minority Business Loan
 1272  Mobilization Program procedures apply to minority business
 1273  enterprise vendors for contracts awarded by a state agency for
 1274  construction or professional services or for the provision of
 1275  goods or services:
 1276         (e) The following procedures shall apply when the minority
 1277  business enterprise is the prime contract vendor to the
 1278  contracting state agency:
 1279         1. Pursuant to s. 216.351, ss. 215.422(15) and 216.181(16)
 1280  the provisions of ss. 215.422(14) and 216.181(16) do not apply
 1281  to this paragraph.
 1282         2. For construction contracts, the designated loan
 1283  mobilization payment shall be disbursed when:
 1284         a. The minority business enterprise prime contract vendor
 1285  requests disbursement in the first application for payment.
 1286         b. The contracting state agency has issued a notice to
 1287  proceed and has approved the first application for payment.
 1288         3. For contracts other than construction contracts, the
 1289  designated loan mobilization payment shall be disbursed when:
 1290         a. The minority business enterprise prime contract vendor
 1291  requests disbursement by letter delivered to the contracting
 1292  state agency after the execution of the contract but prior to
 1293  the commencement of work.
 1294         b. The contracting state agency has approved the minority
 1295  business enterprise prime contract vendor’s letter of request.
 1296         4. The designated loan mobilization payment may be paid by
 1297  the contracting state agency prior to the commencement of work.
 1298  In order to ensure that the contract time provisions do not
 1299  commence until the minority business enterprise prime contract
 1300  vendor has adequate working capital, the contract documents may
 1301  provide that the contract shall commence at such time as the
 1302  contracting state agency releases the designated loan
 1303  mobilization payment to the minority business enterprise prime
 1304  contract vendor and participating financial institution pursuant
 1305  to the working capital agreement.
 1306         Section 33. Section 626.7315, Florida Statutes, is amended
 1307  to read:
 1308         626.7315 Prohibition against the unlicensed transaction of
 1309  general lines insurance.—With respect to any line of authority
 1310  as defined in s. 626.015(7) s. 626.015(5), no individual shall,
 1311  unless licensed as a general lines agent:
 1312         (1) Solicit insurance or procure applications therefor;
 1313         (2) In this state, receive or issue a receipt for any money
 1314  on account of or for any insurer, or receive or issue a receipt
 1315  for money from other persons to be transmitted to any insurer
 1316  for a policy, contract, or certificate of insurance or any
 1317  renewal thereof, even though the policy, certificate, or
 1318  contract is not signed by him or her as agent or representative
 1319  of the insurer, except as provided in s. 626.0428(1);
 1320         (3) Directly or indirectly represent himself or herself to
 1321  be an agent of any insurer or as an agent, to collect or forward
 1322  any insurance premium, or to solicit, negotiate, effect,
 1323  procure, receive, deliver, or forward, directly or indirectly,
 1324  any insurance contract or renewal thereof or any endorsement
 1325  relating to an insurance contract, or attempt to effect the
 1326  same, of property or insurable business activities or interests,
 1327  located in this state;
 1328         (4) In this state, engage or hold himself or herself out as
 1329  engaging in the business of analyzing or abstracting insurance
 1330  policies or of counseling or advising or giving opinions, other
 1331  than as a licensed attorney at law, relative to insurance or
 1332  insurance contracts, for fee, commission, or other compensation,
 1333  other than as a salaried bona fide full-time employee so
 1334  counseling and advising his or her employer relative to the
 1335  insurance interests of the employer and of the subsidiaries or
 1336  business affiliates of the employer;
 1337         (5) In any way, directly or indirectly, make or cause to be
 1338  made, or attempt to make or cause to be made, any contract of
 1339  insurance for or on account of any insurer;
 1340         (6) Solicit, negotiate, or in any way, directly or
 1341  indirectly, effect insurance contracts, if a member of a
 1342  partnership or association, or a stockholder, officer, or agent
 1343  of a corporation which holds an agency appointment from any
 1344  insurer; or
 1345         (7) Receive or transmit applications for suretyship, or
 1346  receive for delivery bonds founded on applications forwarded
 1347  from this state, or otherwise procure suretyship to be effected
 1348  by a surety insurer upon the bonds of persons in this state or
 1349  upon bonds given to persons in this state.
 1350         Section 34. Paragraph (c) of subsection (6) of section
 1351  627.351, Florida Statutes, is amended to read:
 1352         627.351 Insurance risk apportionment plans.—
 1353         (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
 1354         (c) The corporation’s plan of operation:
 1355         1. Must provide for adoption of residential property and
 1356  casualty insurance policy forms and commercial residential and
 1357  nonresidential property insurance forms, which must be approved
 1358  by the office before use. The corporation shall adopt the
 1359  following policy forms:
 1360         a. Standard personal lines policy forms that are
 1361  comprehensive multiperil policies providing full coverage of a
 1362  residential property equivalent to the coverage provided in the
 1363  private insurance market under an HO-3, HO-4, or HO-6 policy.
 1364         b. Basic personal lines policy forms that are policies
 1365  similar to an HO-8 policy or a dwelling fire policy that provide
 1366  coverage meeting the requirements of the secondary mortgage
 1367  market, but which is more limited than the coverage under a
 1368  standard policy.
 1369         c. Commercial lines residential and nonresidential policy
 1370  forms that are generally similar to the basic perils of full
 1371  coverage obtainable for commercial residential structures and
 1372  commercial nonresidential structures in the admitted voluntary
 1373  market.
 1374         d. Personal lines and commercial lines residential property
 1375  insurance forms that cover the peril of wind only. The forms are
 1376  applicable only to residential properties located in areas
 1377  eligible for coverage under the coastal account referred to in
 1378  sub-subparagraph (b)2.a.
 1379         e. Commercial lines nonresidential property insurance forms
 1380  that cover the peril of wind only. The forms are applicable only
 1381  to nonresidential properties located in areas eligible for
 1382  coverage under the coastal account referred to in sub
 1383  subparagraph (b)2.a.
 1384         f. The corporation may adopt variations of the policy forms
 1385  listed in sub-subparagraphs a.-e. which contain more restrictive
 1386  coverage.
 1387         g. Effective January 1, 2013, the corporation shall offer a
 1388  basic personal lines policy similar to an HO-8 policy with
 1389  dwelling repair based on common construction materials and
 1390  methods.
 1391         2. Must provide that the corporation adopt a program in
 1392  which the corporation and authorized insurers enter into quota
 1393  share primary insurance agreements for hurricane coverage, as
 1394  defined in s. 627.4025(2)(a), for eligible risks, and adopt
 1395  property insurance forms for eligible risks which cover the
 1396  peril of wind only.
 1397         a. As used in this subsection, the term:
 1398         (I) “Quota share primary insurance” means an arrangement in
 1399  which the primary hurricane coverage of an eligible risk is
 1400  provided in specified percentages by the corporation and an
 1401  authorized insurer. The corporation and authorized insurer are
 1402  each solely responsible for a specified percentage of hurricane
 1403  coverage of an eligible risk as set forth in a quota share
 1404  primary insurance agreement between the corporation and an
 1405  authorized insurer and the insurance contract. The
 1406  responsibility of the corporation or authorized insurer to pay
 1407  its specified percentage of hurricane losses of an eligible
 1408  risk, as set forth in the agreement, may not be altered by the
 1409  inability of the other party to pay its specified percentage of
 1410  losses. Eligible risks that are provided hurricane coverage
 1411  through a quota share primary insurance arrangement must be
 1412  provided policy forms that set forth the obligations of the
 1413  corporation and authorized insurer under the arrangement,
 1414  clearly specify the percentages of quota share primary insurance
 1415  provided by the corporation and authorized insurer, and
 1416  conspicuously and clearly state that the authorized insurer and
 1417  the corporation may not be held responsible beyond their
 1418  specified percentage of coverage of hurricane losses.
 1419         (II) “Eligible risks” means personal lines residential and
 1420  commercial lines residential risks that meet the underwriting
 1421  criteria of the corporation and are located in areas that were
 1422  eligible for coverage by the Florida Windstorm Underwriting
 1423  Association on January 1, 2002.
 1424         b. The corporation may enter into quota share primary
 1425  insurance agreements with authorized insurers at corporation
 1426  coverage levels of 90 percent and 50 percent.
 1427         c. If the corporation determines that additional coverage
 1428  levels are necessary to maximize participation in quota share
 1429  primary insurance agreements by authorized insurers, the
 1430  corporation may establish additional coverage levels. However,
 1431  the corporation’s quota share primary insurance coverage level
 1432  may not exceed 90 percent.
 1433         d. Any quota share primary insurance agreement entered into
 1434  between an authorized insurer and the corporation must provide
 1435  for a uniform specified percentage of coverage of hurricane
 1436  losses, by county or territory as set forth by the corporation
 1437  board, for all eligible risks of the authorized insurer covered
 1438  under the agreement.
 1439         e. Any quota share primary insurance agreement entered into
 1440  between an authorized insurer and the corporation is subject to
 1441  review and approval by the office. However, such agreement shall
 1442  be authorized only as to insurance contracts entered into
 1443  between an authorized insurer and an insured who is already
 1444  insured by the corporation for wind coverage.
 1445         f. For all eligible risks covered under quota share primary
 1446  insurance agreements, the exposure and coverage levels for both
 1447  the corporation and authorized insurers shall be reported by the
 1448  corporation to the Florida Hurricane Catastrophe Fund. For all
 1449  policies of eligible risks covered under such agreements, the
 1450  corporation and the authorized insurer must maintain complete
 1451  and accurate records for the purpose of exposure and loss
 1452  reimbursement audits as required by fund rules. The corporation
 1453  and the authorized insurer shall each maintain duplicate copies
 1454  of policy declaration pages and supporting claims documents.
 1455         g. The corporation board shall establish in its plan of
 1456  operation standards for quota share agreements which ensure that
 1457  there is no discriminatory application among insurers as to the
 1458  terms of the agreements, pricing of the agreements, incentive
 1459  provisions if any, and consideration paid for servicing policies
 1460  or adjusting claims.
 1461         h. The quota share primary insurance agreement between the
 1462  corporation and an authorized insurer must set forth the
 1463  specific terms under which coverage is provided, including, but
 1464  not limited to, the sale and servicing of policies issued under
 1465  the agreement by the insurance agent of the authorized insurer
 1466  producing the business, the reporting of information concerning
 1467  eligible risks, the payment of premium to the corporation, and
 1468  arrangements for the adjustment and payment of hurricane claims
 1469  incurred on eligible risks by the claims adjuster and personnel
 1470  of the authorized insurer. Entering into a quota sharing
 1471  insurance agreement between the corporation and an authorized
 1472  insurer is voluntary and at the discretion of the authorized
 1473  insurer.
 1474         3. May provide that the corporation may employ or otherwise
 1475  contract with individuals or other entities to provide
 1476  administrative or professional services that may be appropriate
 1477  to effectuate the plan. The corporation may borrow funds by
 1478  issuing bonds or by incurring other indebtedness, and shall have
 1479  other powers reasonably necessary to effectuate the requirements
 1480  of this subsection, including, without limitation, the power to
 1481  issue bonds and incur other indebtedness in order to refinance
 1482  outstanding bonds or other indebtedness. The corporation may
 1483  seek judicial validation of its bonds or other indebtedness
 1484  under chapter 75. The corporation may issue bonds or incur other
 1485  indebtedness, or have bonds issued on its behalf by a unit of
 1486  local government pursuant to subparagraph (q)2. in the absence
 1487  of a hurricane or other weather-related event, upon a
 1488  determination by the corporation, subject to approval by the
 1489  office, that such action would enable it to efficiently meet the
 1490  financial obligations of the corporation and that such
 1491  financings are reasonably necessary to effectuate the
 1492  requirements of this subsection. The corporation may take all
 1493  actions needed to facilitate tax-free status for such bonds or
 1494  indebtedness, including formation of trusts or other affiliated
 1495  entities. The corporation may pledge assessments, projected
 1496  recoveries from the Florida Hurricane Catastrophe Fund, other
 1497  reinsurance recoverables, policyholder surcharges and other
 1498  surcharges, and other funds available to the corporation as
 1499  security for bonds or other indebtedness. In recognition of s.
 1500  10, Art. I of the State Constitution, prohibiting the impairment
 1501  of obligations of contracts, it is the intent of the Legislature
 1502  that no action be taken whose purpose is to impair any bond
 1503  indenture or financing agreement or any revenue source committed
 1504  by contract to such bond or other indebtedness.
 1505         4. Must require that the corporation operate subject to the
 1506  supervision and approval of a board of governors consisting of
 1507  nine individuals who are residents of this state and who are
 1508  from different geographical areas of the state, one of whom is
 1509  appointed by the Governor and serves solely to advocate on
 1510  behalf of the consumer. The appointment of a consumer
 1511  representative by the Governor is deemed to be within the scope
 1512  of the exemption provided in s. 112.313(7)(b) and is in addition
 1513  to the appointments authorized under sub-subparagraph a.
 1514         a. The Governor, the Chief Financial Officer, the President
 1515  of the Senate, and the Speaker of the House of Representatives
 1516  shall each appoint two members of the board. At least one of the
 1517  two members appointed by each appointing officer must have
 1518  demonstrated expertise in insurance and be deemed to be within
 1519  the scope of the exemption provided in s. 112.313(7)(b). The
 1520  Chief Financial Officer shall designate one of the appointees as
 1521  chair. All board members serve at the pleasure of the appointing
 1522  officer. All members of the board are subject to removal at will
 1523  by the officers who appointed them. All board members, including
 1524  the chair, must be appointed to serve for 3-year terms beginning
 1525  annually on a date designated by the plan. However, for the
 1526  first term beginning on or after July 1, 2009, each appointing
 1527  officer shall appoint one member of the board for a 2-year term
 1528  and one member for a 3-year term. A board vacancy shall be
 1529  filled for the unexpired term by the appointing officer. The
 1530  Chief Financial Officer shall appoint a technical advisory group
 1531  to provide information and advice to the board in connection
 1532  with the board’s duties under this subsection. The executive
 1533  director and senior managers of the corporation shall be engaged
 1534  by the board and serve at the pleasure of the board. Any
 1535  executive director appointed on or after July 1, 2006, is
 1536  subject to confirmation by the Senate. The executive director is
 1537  responsible for employing other staff as the corporation may
 1538  require, subject to review and concurrence by the board.
 1539         b. The board shall create a Market Accountability Advisory
 1540  Committee to assist the corporation in developing awareness of
 1541  its rates and its customer and agent service levels in
 1542  relationship to the voluntary market insurers writing similar
 1543  coverage.
 1544         (I) The members of the advisory committee consist of the
 1545  following 11 persons, one of whom must be elected chair by the
 1546  members of the committee: four representatives, one appointed by
 1547  the Florida Association of Insurance Agents, one by the Florida
 1548  Association of Insurance and Financial Advisors, one by the
 1549  Professional Insurance Agents of Florida, and one by the Latin
 1550  American Association of Insurance Agencies; three
 1551  representatives appointed by the insurers with the three highest
 1552  voluntary market share of residential property insurance
 1553  business in the state; one representative from the Office of
 1554  Insurance Regulation; one consumer appointed by the board who is
 1555  insured by the corporation at the time of appointment to the
 1556  committee; one representative appointed by the Florida
 1557  Association of Realtors; and one representative appointed by the
 1558  Florida Bankers Association. All members shall be appointed to
 1559  3-year terms and may serve for consecutive terms.
 1560         (II) The committee shall report to the corporation at each
 1561  board meeting on insurance market issues which may include rates
 1562  and rate competition with the voluntary market; service,
 1563  including policy issuance, claims processing, and general
 1564  responsiveness to policyholders, applicants, and agents; and
 1565  matters relating to depopulation.
 1566         5. Must provide a procedure for determining the eligibility
 1567  of a risk for coverage, as follows:
 1568         a. Subject to s. 627.3517, with respect to personal lines
 1569  residential risks, if the risk is offered coverage from an
 1570  authorized insurer at the insurer’s approved rate under a
 1571  standard policy including wind coverage or, if consistent with
 1572  the insurer’s underwriting rules as filed with the office, a
 1573  basic policy including wind coverage, for a new application to
 1574  the corporation for coverage, the risk is not eligible for any
 1575  policy issued by the corporation unless the premium for coverage
 1576  from the authorized insurer is more than 15 percent greater than
 1577  the premium for comparable coverage from the corporation.
 1578  Whenever an offer of coverage for a personal lines residential
 1579  risk is received for a policyholder of the corporation at
 1580  renewal from an authorized insurer, if the offer is equal to or
 1581  less than the corporation’s renewal premium for comparable
 1582  coverage, the risk is not eligible for coverage with the
 1583  corporation. If the risk is not able to obtain such offer, the
 1584  risk is eligible for a standard policy including wind coverage
 1585  or a basic policy including wind coverage issued by the
 1586  corporation; however, if the risk could not be insured under a
 1587  standard policy including wind coverage regardless of market
 1588  conditions, the risk is eligible for a basic policy including
 1589  wind coverage unless rejected under subparagraph 8. However, a
 1590  policyholder removed from the corporation through an assumption
 1591  agreement remains eligible for coverage from the corporation
 1592  until the end of the assumption period. The corporation shall
 1593  determine the type of policy to be provided on the basis of
 1594  objective standards specified in the underwriting manual and
 1595  based on generally accepted underwriting practices.
 1596         (I) If the risk accepts an offer of coverage through the
 1597  market assistance plan or through a mechanism established by the
 1598  corporation other than a plan established by s. 627.3518, before
 1599  a policy is issued to the risk by the corporation or during the
 1600  first 30 days of coverage by the corporation, and the producing
 1601  agent who submitted the application to the plan or to the
 1602  corporation is not currently appointed by the insurer, the
 1603  insurer shall:
 1604         (A) Pay to the producing agent of record of the policy for
 1605  the first year, an amount that is the greater of the insurer’s
 1606  usual and customary commission for the type of policy written or
 1607  a fee equal to the usual and customary commission of the
 1608  corporation; or
 1609         (B) Offer to allow the producing agent of record of the
 1610  policy to continue servicing the policy for at least 1 year and
 1611  offer to pay the agent the greater of the insurer’s or the
 1612  corporation’s usual and customary commission for the type of
 1613  policy written.
 1614  
 1615  If the producing agent is unwilling or unable to accept
 1616  appointment, the new insurer shall pay the agent in accordance
 1617  with sub-sub-sub-subparagraph (A).
 1618         (II) If the corporation enters into a contractual agreement
 1619  for a take-out plan, the producing agent of record of the
 1620  corporation policy is entitled to retain any unearned commission
 1621  on the policy, and the insurer shall:
 1622         (A) Pay to the producing agent of record, for the first
 1623  year, an amount that is the greater of the insurer’s usual and
 1624  customary commission for the type of policy written or a fee
 1625  equal to the usual and customary commission of the corporation;
 1626  or
 1627         (B) Offer to allow the producing agent of record to
 1628  continue servicing the policy for at least 1 year and offer to
 1629  pay the agent the greater of the insurer’s or the corporation’s
 1630  usual and customary commission for the type of policy written.
 1631  
 1632  If the producing agent is unwilling or unable to accept
 1633  appointment, the new insurer shall pay the agent in accordance
 1634  with sub-sub-sub-subparagraph (A).
 1635         b. With respect to commercial lines residential risks, for
 1636  a new application to the corporation for coverage, if the risk
 1637  is offered coverage under a policy including wind coverage from
 1638  an authorized insurer at its approved rate, the risk is not
 1639  eligible for a policy issued by the corporation unless the
 1640  premium for coverage from the authorized insurer is more than 15
 1641  percent greater than the premium for comparable coverage from
 1642  the corporation. Whenever an offer of coverage for a commercial
 1643  lines residential risk is received for a policyholder of the
 1644  corporation at renewal from an authorized insurer, if the offer
 1645  is equal to or less than the corporation’s renewal premium for
 1646  comparable coverage, the risk is not eligible for coverage with
 1647  the corporation. If the risk is not able to obtain any such
 1648  offer, the risk is eligible for a policy including wind coverage
 1649  issued by the corporation. However, a policyholder removed from
 1650  the corporation through an assumption agreement remains eligible
 1651  for coverage from the corporation until the end of the
 1652  assumption period.
 1653         (I) If the risk accepts an offer of coverage through the
 1654  market assistance plan or through a mechanism established by the
 1655  corporation other than a plan established by s. 627.3518, before
 1656  a policy is issued to the risk by the corporation or during the
 1657  first 30 days of coverage by the corporation, and the producing
 1658  agent who submitted the application to the plan or the
 1659  corporation is not currently appointed by the insurer, the
 1660  insurer shall:
 1661         (A) Pay to the producing agent of record of the policy, for
 1662  the first year, an amount that is the greater of the insurer’s
 1663  usual and customary commission for the type of policy written or
 1664  a fee equal to the usual and customary commission of the
 1665  corporation; or
 1666         (B) Offer to allow the producing agent of record of the
 1667  policy to continue servicing the policy for at least 1 year and
 1668  offer to pay the agent the greater of the insurer’s or the
 1669  corporation’s usual and customary commission for the type of
 1670  policy written.
 1671  
 1672  If the producing agent is unwilling or unable to accept
 1673  appointment, the new insurer shall pay the agent in accordance
 1674  with sub-sub-sub-subparagraph (A).
 1675         (II) If the corporation enters into a contractual agreement
 1676  for a take-out plan, the producing agent of record of the
 1677  corporation policy is entitled to retain any unearned commission
 1678  on the policy, and the insurer shall:
 1679         (A) Pay to the producing agent of record, for the first
 1680  year, an amount that is the greater of the insurer’s usual and
 1681  customary commission for the type of policy written or a fee
 1682  equal to the usual and customary commission of the corporation;
 1683  or
 1684         (B) Offer to allow the producing agent of record to
 1685  continue servicing the policy for at least 1 year and offer to
 1686  pay the agent the greater of the insurer’s or the corporation’s
 1687  usual and customary commission for the type of policy written.
 1688  
 1689  If the producing agent is unwilling or unable to accept
 1690  appointment, the new insurer shall pay the agent in accordance
 1691  with sub-sub-sub-subparagraph (A).
 1692         c. For purposes of determining comparable coverage under
 1693  sub-subparagraphs a. and b., the comparison must be based on
 1694  those forms and coverages that are reasonably comparable. The
 1695  corporation may rely on a determination of comparable coverage
 1696  and premium made by the producing agent who submits the
 1697  application to the corporation, made in the agent’s capacity as
 1698  the corporation’s agent. A comparison may be made solely of the
 1699  premium with respect to the main building or structure only on
 1700  the following basis: the same coverage A or other building
 1701  limits; the same percentage hurricane deductible that applies on
 1702  an annual basis or that applies to each hurricane for commercial
 1703  residential property; the same percentage of ordinance and law
 1704  coverage, if the same limit is offered by both the corporation
 1705  and the authorized insurer; the same mitigation credits, to the
 1706  extent the same types of credits are offered both by the
 1707  corporation and the authorized insurer; the same method for loss
 1708  payment, such as replacement cost or actual cash value, if the
 1709  same method is offered both by the corporation and the
 1710  authorized insurer in accordance with underwriting rules; and
 1711  any other form or coverage that is reasonably comparable as
 1712  determined by the board. If an application is submitted to the
 1713  corporation for wind-only coverage in the coastal account, the
 1714  premium for the corporation’s wind-only policy plus the premium
 1715  for the ex-wind policy that is offered by an authorized insurer
 1716  to the applicant must be compared to the premium for multiperil
 1717  coverage offered by an authorized insurer, subject to the
 1718  standards for comparison specified in this subparagraph. If the
 1719  corporation or the applicant requests from the authorized
 1720  insurer a breakdown of the premium of the offer by types of
 1721  coverage so that a comparison may be made by the corporation or
 1722  its agent and the authorized insurer refuses or is unable to
 1723  provide such information, the corporation may treat the offer as
 1724  not being an offer of coverage from an authorized insurer at the
 1725  insurer’s approved rate.
 1726         6. Must include rules for classifications of risks and
 1727  rates.
 1728         7. Must provide that if premium and investment income for
 1729  an account attributable to a particular calendar year are in
 1730  excess of projected losses and expenses for the account
 1731  attributable to that year, such excess shall be held in surplus
 1732  in the account. Such surplus must be available to defray
 1733  deficits in that account as to future years and used for that
 1734  purpose before assessing assessable insurers and assessable
 1735  insureds as to any calendar year.
 1736         8. Must provide objective criteria and procedures to be
 1737  uniformly applied to all applicants in determining whether an
 1738  individual risk is so hazardous as to be uninsurable. In making
 1739  this determination and in establishing the criteria and
 1740  procedures, the following must be considered:
 1741         a. Whether the likelihood of a loss for the individual risk
 1742  is substantially higher than for other risks of the same class;
 1743  and
 1744         b. Whether the uncertainty associated with the individual
 1745  risk is such that an appropriate premium cannot be determined.
 1746  
 1747  The acceptance or rejection of a risk by the corporation shall
 1748  be construed as the private placement of insurance, and the
 1749  provisions of chapter 120 do not apply.
 1750         9. Must provide that the corporation make its best efforts
 1751  to procure catastrophe reinsurance at reasonable rates, to cover
 1752  its projected 100-year probable maximum loss as determined by
 1753  the board of governors.
 1754         10. The policies issued by the corporation must provide
 1755  that if the corporation or the market assistance plan obtains an
 1756  offer from an authorized insurer to cover the risk at its
 1757  approved rates, the risk is no longer eligible for renewal
 1758  through the corporation, except as otherwise provided in this
 1759  subsection.
 1760         11. Corporation policies and applications must include a
 1761  notice that the corporation policy could, under this section, be
 1762  replaced with a policy issued by an authorized insurer which
 1763  does not provide coverage identical to the coverage provided by
 1764  the corporation. The notice must also specify that acceptance of
 1765  corporation coverage creates a conclusive presumption that the
 1766  applicant or policyholder is aware of this potential.
 1767         12. May establish, subject to approval by the office,
 1768  different eligibility requirements and operational procedures
 1769  for any line or type of coverage for any specified county or
 1770  area if the board determines that such changes are justified due
 1771  to the voluntary market being sufficiently stable and
 1772  competitive in such area or for such line or type of coverage
 1773  and that consumers who, in good faith, are unable to obtain
 1774  insurance through the voluntary market through ordinary methods
 1775  continue to have access to coverage from the corporation. If
 1776  coverage is sought in connection with a real property transfer,
 1777  the requirements and procedures may not provide an effective
 1778  date of coverage later than the date of the closing of the
 1779  transfer as established by the transferor, the transferee, and,
 1780  if applicable, the lender.
 1781         13. Must provide that, with respect to the coastal account,
 1782  any assessable insurer with a surplus as to policyholders of $25
 1783  million or less writing 25 percent or more of its total
 1784  countrywide property insurance premiums in this state may
 1785  petition the office, within the first 90 days of each calendar
 1786  year, to qualify as a limited apportionment company. A regular
 1787  assessment levied by the corporation on a limited apportionment
 1788  company for a deficit incurred by the corporation for the
 1789  coastal account may be paid to the corporation on a monthly
 1790  basis as the assessments are collected by the limited
 1791  apportionment company from its insureds, but a limited
 1792  apportionment company must begin collecting the regular
 1793  assessments not later than 90 days after the regular assessments
 1794  are levied by the corporation, and the regular assessments must
 1795  be paid in full within 15 months after being levied by the
 1796  corporation. A limited apportionment company shall collect from
 1797  its policyholders any emergency assessment imposed under sub
 1798  subparagraph (b)3.d. The plan must provide that, if the office
 1799  determines that any regular assessment will result in an
 1800  impairment of the surplus of a limited apportionment company,
 1801  the office may direct that all or part of such assessment be
 1802  deferred as provided in subparagraph (q)4. However, an emergency
 1803  assessment to be collected from policyholders under sub
 1804  subparagraph (b)3.d. may not be limited or deferred.
 1805         14. Must provide that the corporation appoint as its
 1806  licensed agents only those agents who throughout such
 1807  appointments also hold an appointment as defined in s. 626.015
 1808  s. 626.015(3) by an insurer who is authorized to write and is
 1809  actually writing or renewing personal lines residential property
 1810  coverage, commercial residential property coverage, or
 1811  commercial nonresidential property coverage within the state.
 1812         15. Must provide a premium payment plan option to its
 1813  policyholders which, at a minimum, allows for quarterly and
 1814  semiannual payment of premiums. A monthly payment plan may, but
 1815  is not required to, be offered.
 1816         16. Must limit coverage on mobile homes or manufactured
 1817  homes built before 1994 to actual cash value of the dwelling
 1818  rather than replacement costs of the dwelling.
 1819         17. Must provide coverage for manufactured or mobile home
 1820  dwellings. Such coverage must also include the following
 1821  attached structures:
 1822         a. Screened enclosures that are aluminum framed or screened
 1823  enclosures that are not covered by the same or substantially the
 1824  same materials as those of the primary dwelling;
 1825         b. Carports that are aluminum or carports that are not
 1826  covered by the same or substantially the same materials as those
 1827  of the primary dwelling; and
 1828         c. Patios that have a roof covering that is constructed of
 1829  materials that are not the same or substantially the same
 1830  materials as those of the primary dwelling.
 1831  
 1832  The corporation shall make available a policy for mobile homes
 1833  or manufactured homes for a minimum insured value of at least
 1834  $3,000.
 1835         18. May provide such limits of coverage as the board
 1836  determines, consistent with the requirements of this subsection.
 1837         19. May require commercial property to meet specified
 1838  hurricane mitigation construction features as a condition of
 1839  eligibility for coverage.
 1840         20. Must provide that new or renewal policies issued by the
 1841  corporation on or after January 1, 2012, which cover sinkhole
 1842  loss do not include coverage for any loss to appurtenant
 1843  structures, driveways, sidewalks, decks, or patios that are
 1844  directly or indirectly caused by sinkhole activity. The
 1845  corporation shall exclude such coverage using a notice of
 1846  coverage change, which may be included with the policy renewal,
 1847  and not by issuance of a notice of nonrenewal of the excluded
 1848  coverage upon renewal of the current policy.
 1849         21. As of January 1, 2012, must require that the agent
 1850  obtain from an applicant for coverage from the corporation an
 1851  acknowledgment signed by the applicant, which includes, at a
 1852  minimum, the following statement:
 1853  
 1854                ACKNOWLEDGMENT OF POTENTIAL SURCHARGE              
 1855                      AND ASSESSMENT LIABILITY:                    
 1856  
 1857         1. AS A POLICYHOLDER OF CITIZENS PROPERTY INSURANCE
 1858  CORPORATION, I UNDERSTAND THAT IF THE CORPORATION SUSTAINS A
 1859  DEFICIT AS A RESULT OF HURRICANE LOSSES OR FOR ANY OTHER REASON,
 1860  MY POLICY COULD BE SUBJECT TO SURCHARGES, WHICH WILL BE DUE AND
 1861  PAYABLE UPON RENEWAL, CANCELLATION, OR TERMINATION OF THE
 1862  POLICY, AND THAT THE SURCHARGES COULD BE AS HIGH AS 45 PERCENT
 1863  OF MY PREMIUM, OR A DIFFERENT AMOUNT AS IMPOSED BY THE FLORIDA
 1864  LEGISLATURE.
 1865         2. I UNDERSTAND THAT I CAN AVOID THE CITIZENS POLICYHOLDER
 1866  SURCHARGE, WHICH COULD BE AS HIGH AS 45 PERCENT OF MY PREMIUM,
 1867  BY OBTAINING COVERAGE FROM A PRIVATE MARKET INSURER AND THAT TO
 1868  BE ELIGIBLE FOR COVERAGE BY CITIZENS, I MUST FIRST TRY TO OBTAIN
 1869  PRIVATE MARKET COVERAGE BEFORE APPLYING FOR OR RENEWING COVERAGE
 1870  WITH CITIZENS. I UNDERSTAND THAT PRIVATE MARKET INSURANCE RATES
 1871  ARE REGULATED AND APPROVED BY THE STATE.
 1872         3. I UNDERSTAND THAT I MAY BE SUBJECT TO EMERGENCY
 1873  ASSESSMENTS TO THE SAME EXTENT AS POLICYHOLDERS OF OTHER
 1874  INSURANCE COMPANIES, OR A DIFFERENT AMOUNT AS IMPOSED BY THE
 1875  FLORIDA LEGISLATURE.
 1876         4. I ALSO UNDERSTAND THAT CITIZENS PROPERTY INSURANCE
 1877  CORPORATION IS NOT SUPPORTED BY THE FULL FAITH AND CREDIT OF THE
 1878  STATE OF FLORIDA.
 1879  
 1880         a. The corporation shall maintain, in electronic format or
 1881  otherwise, a copy of the applicant’s signed acknowledgment and
 1882  provide a copy of the statement to the policyholder as part of
 1883  the first renewal after the effective date of this subparagraph.
 1884         b. The signed acknowledgment form creates a conclusive
 1885  presumption that the policyholder understood and accepted his or
 1886  her potential surcharge and assessment liability as a
 1887  policyholder of the corporation.
 1888         Section 35. This act shall take effect July 1, 2017.