Florida Senate - 2022                             CS for SB 1874
       
       
        
       By the Committee on Banking and Insurance; and Senator Boyd
       
       
       
       
       
       597-02320-22                                          20221874c1
    1                        A bill to be entitled                      
    2         An act relating to the Department of Financial
    3         Services; repealing s. 17.0315, F.S., relating to the
    4         financial and cash management system and task force;
    5         amending s. 48.151, F.S.; providing an exception to
    6         service of process on public entities under certain
    7         circumstances; deleting the Chief Financial Officer’s
    8         assistant or deputy or another person in charge of the
    9         office as agents for service of process on insurers;
   10         requiring the Department of Financial Services to
   11         create a secure online portal as the sole means to
   12         accept certain service of process; amending s.
   13         110.123, F.S.; revising definitions; authorizing
   14         specified persons relating to the Division of
   15         Rehabilitation and Liquidation to purchase coverage in
   16         a state group health insurance plan at specified
   17         premium costs; providing that the enrollment period
   18         for the state group insurance program begins with a
   19         specified plan year for certain persons relating to
   20         the division; amending s. 110.131, F.S.; conforming a
   21         cross-reference; amending s. 120.541, F.S.; revising
   22         applicability of certain provisions relating to a
   23         specified proposed rule; amending s. 215.34, F.S.;
   24         deleting the requirement for specified entities
   25         receiving certain charged-back items to prepare a
   26         journal transfer; amending s. 215.93, F.S.; renaming a
   27         subsystem of the Florida Financial Management
   28         Information System; amending s. 215.94, F.S.;
   29         conforming a provision to changes made by the act;
   30         amending s. 216.102, F.S.; making technical changes;
   31         amending s. 218.32, F.S.; revising legislative intent;
   32         providing functions of the Florida Open Financial
   33         Statement System; requiring local governments to use
   34         the system to file specified reports; providing
   35         requirements for the system; revising the list of
   36         entities with which the Chief Financial Officer may
   37         consult with regard to the system; authorizing, rather
   38         than requiring, certain local governmental financial
   39         statements to be filed in a specified format; deleting
   40         certain requirements for such statements; providing
   41         construction; providing an exception; creating s.
   42         395.1061, F.S.; defining terms; requiring certain
   43         hospitals to demonstrate financial responsibility for
   44         maintaining professional liability coverage;
   45         specifying requirements for such financial
   46         responsibility; requiring hospitals to provide
   47         evidence of compliance and to remain in compliance;
   48         prohibiting the Agency for Health Care Administration
   49         from issuing or renewing licenses of hospitals under
   50         certain circumstances; providing exemptions from
   51         professional liability coverage requirements;
   52         authorizing hospital systems to meet such professional
   53         liability coverage requirements in a specified manner;
   54         amending s. 414.40, F.S.; transferring the Stop Inmate
   55         Fraud Program from the Department of Financial
   56         Services to the Department of Economic Opportunity;
   57         authorizing the program to provide reports of certain
   58         data to the Division of Public Assistance Fraud for a
   59         specified purpose; amending s. 440.02, F.S.; revising
   60         the definition of the term “employer”; amending s.
   61         440.05, F.S.; revising information that must be
   62         submitted with the notice of election to be exempt
   63         from workers’ compensation coverage; specifying the
   64         circumstances under which the Department of Financial
   65         Services is required to send certain notifications to
   66         workers’ compensation carriers; requiring such
   67         notifications to be electronic; requiring certificates
   68         of election to be exempt to contain a specified
   69         notice; deleting a provision requiring certain
   70         corporation officers to maintain business records;
   71         revising applicability of certificates of election to
   72         be exempt; amending s. 440.107, F.S.; revising the
   73         timeframe for certain employers to produce specified
   74         records under certain circumstances; prohibiting
   75         employers who failed to secure payment of workers’
   76         compensation from entering a payment agreement
   77         schedule with the department unless a specified
   78         condition is met; revising circumstances that result
   79         in immediate reinstatement of stop-work orders;
   80         revising penalty assessments; amending s. 440.13,
   81         F.S.; revising statewide schedules of maximum
   82         reimbursement allowances for medically necessary
   83         treatment, care, and attendance; authorizing the
   84         department to adopt rules; amending s. 440.185, F.S.;
   85         revising the timeline and methods for workers’
   86         compensation carriers to send a certain informational
   87         brochure to injured workers; revising methods by which
   88         such informational brochure is sent to employers;
   89         amending s. 440.381, F.S.; specifying workers’
   90         compensation policies that require physical onsite
   91         audits for a specified class; amending s. 497.277,
   92         F.S.; deleting a cap on transferring burial rights
   93         fees; amending s. 497.369, F.S.; revising requirements
   94         for licenses by endorsement to practice embalming;
   95         amending s. 497.372, F.S.; revising the scope of
   96         funeral directing practice; amending s. 497.374, F.S.;
   97         revising requirements for licenses by endorsement to
   98         practice funeral directing; amending s. 554.108, F.S.;
   99         requiring boilers manufactured after a specified date,
  100         rather than boilers of certain heat input, to be
  101         stamped with a specified code symbol; revising the
  102         boilers’ information that must be filed; requiring
  103         that specified spaces and rooms be equipped with
  104         carbon monoxide detector devices; amending s. 554.111,
  105         F.S.; deleting a requirement for a specified fee for a
  106         certificate of competency; requiring applications for
  107         boiler permits to include a specified report; revising
  108         the purpose for special trips that the department is
  109         required to make for boiler inspections; amending s.
  110         554.114, F.S.; revising the schedules of penalties
  111         against boiler insurance companies, inspection
  112         agencies, and other persons for specified violations;
  113         amending s. 624.307, F.S.; providing that certain
  114         regulated persons or unauthorized insurers are
  115         required to appoint the Chief Financial Officer as
  116         their agents, rather than as their attorneys, to
  117         receive service of legal process; revising the method
  118         by which the Chief Financial Officer makes the process
  119         available; requiring the Chief Financial Officer to
  120         promptly send notice of receipt of service of process;
  121         revising requirements for the contents of such notice;
  122         amending s. 624.422, F.S.; requiring insurers to file
  123         with the department e-mail addresses, rather than
  124         addresses, of specified persons; providing that a
  125         specified method by which process is served upon the
  126         Chief Financial Officer is the sole method of service;
  127         conforming provisions to changes made by the act;
  128         amending s. 624.423, F.S.; revising procedures for
  129         service of process; requiring the Chief Financial
  130         Officer to promptly notify certain persons of the
  131         process and to make the process available to such
  132         persons through specified means; revising the method
  133         by which records are retained; amending s. 624.610,
  134         F.S.; conforming provisions to changes made by the
  135         act; amending s. 626.015, F.S.; defining the term
  136         “licensing authority”; revising the definition of the
  137         term “unaffiliated insurance agent”; amending s.
  138         626.171, F.S.; requiring fingerprints for certain
  139         licenses to be processed in accordance with specified
  140         laws; amending s. 626.172, F.S.; revising the method
  141         by which fingerprints for applications for insurance
  142         agency licenses are submitted; deleting a fingerprint
  143         processing fee; creating s. 626.173, F.S.; providing
  144         duties for certain insurance agency persons within a
  145         specified timeframe after cessation of insurance
  146         transactions; authorizing the department to impose
  147         administrative fines against such persons for
  148         specified violations; prohibiting the initiation of
  149         certain proceedings and imposition of fines until
  150         specified prerequisites are completed; providing a cap
  151         on such fines; authorizing the department to suspend
  152         or revoke licenses under certain circumstances;
  153         providing requirements for determining penalties and
  154         remedies; amending s. 626.201, F.S.; conforming a
  155         provision to changes made by the act; providing
  156         continuation of jurisdiction of the licensing
  157         authority to investigate and prosecute specified
  158         violations under certain circumstances; amending s.
  159         626.202, F.S.; conforming provisions to changes made
  160         by the act; amending s. 626.221, F.S.; adding a
  161         designation to the list of designations that allow
  162         applicants for an all-lines adjuster license to be
  163         exempt from an examination; amending s. 626.311, F.S.;
  164         providing an exception to the prohibition against
  165         unaffiliated insurance agents holding appointments
  166         from insurers; authorizing certain adjusters to obtain
  167         adjuster appointments while maintaining unaffiliated
  168         insurance agent appointments and to adjust claims and
  169         receive certain compensation; amending ss. 626.321 and
  170         626.601, F.S.; conforming provisions to changes made
  171         by the act; amending s. 626.7845, F.S.; conforming a
  172         cross-reference; amending ss. 626.8411 and 626.8412,
  173         F.S.; conforming provisions to changes made by the
  174         act; amending s. 626.8417, F.S.; revising requirements
  175         to qualify for title insurance agent licenses;
  176         amending s. 626.8421, F.S.; requiring title agencies
  177         to have separate appointments under certain
  178         circumstances; amending s. 626.843, F.S.; providing
  179         requirements for appointments of title insurance
  180         agencies; amending s. 626.8433, F.S.; requiring title
  181         insurers that terminate appointments of title
  182         insurance agencies to file certain information with
  183         the department; amending s. 626.8447, F.S.; providing
  184         effects of suspension or revocation of title insurance
  185         agency licenses; amending s. 626.854, F.S.; revising
  186         and providing restrictions on public adjuster
  187         compensation; providing exceptions to such
  188         restrictions; amending s. 626.8561, F.S.; revising the
  189         definition of the term “public adjuster apprentice”;
  190         amending s. 626.865, F.S.; revising requirements to
  191         qualify for public adjuster licenses; requiring that
  192         certain bonds remain in effect for a specified period
  193         after expiration of the license; amending s. 626.8651,
  194         F.S.; requiring that certain bonds remain in effect
  195         for a specified period after expiration of a public
  196         adjuster apprentice license; revising requirements for
  197         public adjuster apprentices to be, act as, or hold
  198         themselves out to be public adjuster apprentices;
  199         amending s. 626.8696, F.S.; revising requirements for
  200         adjusting firm license applications; amending s.
  201         626.8732, F.S.; requiring applicants for nonresident
  202         public adjuster licenses to maintain certain bonds
  203         after the expiration or termination of licenses;
  204         amending ss. 626.8734, 626.906, 626.912, 626.937, and
  205         626.9953, F.S.; conforming provisions to changes made
  206         by the act; amending s. 633.135, F.S.; providing
  207         additional uses for firefighter funds; amending s.
  208         633.216, F.S.; revising requirements for renewal of
  209         firesafety inspector certificates; amending s.
  210         633.408, F.S.; revising requirements for the issuance
  211         of a Firefighter Certificate of Compliance and Special
  212         Certificate of Compliance; deleting provisions
  213         relating to requirements to retain a Special
  214         Certificate of Compliance; amending s. 633.414, F.S.;
  215         providing requirements to retain a Special Certificate
  216         of Compliance; revising requirements to retain a
  217         Firefighter Certificate of Compliance; redefining the
  218         term “active”; amending ss. 648.34 and 648.355, F.S.;
  219         conforming provisions to changes made by the act;
  220         amending s. 648.46, F.S.; providing continuation of
  221         jurisdiction of the licensing authority to investigate
  222         and prosecute specified violations under certain
  223         circumstances; amending s. 766.105, F.S.; deleting
  224         requirements and procedures for the certification of
  225         hospital compliance with the Florida Patient’s
  226         Compensation Fund; providing that the fund is subject
  227         to the supervision and approval of the Chief Financial
  228         Officer or his or her designee, rather than the board
  229         of governors; conforming provisions to changes made by
  230         the act; providing for supervision of the fund until
  231         dissolution; specifying duties of the Department of
  232         Financial Services before dissolution of the fund;
  233         providing for future repeal; amending ss. 945.6041 and
  234         985.6441, F.S.; revising the definition of the term
  235         “health care provider”; defining the term “other
  236         medical facility”; transferring the Stop Inmate Fraud
  237         Program within the Department of Financial Services to
  238         the Department of Economic Opportunity by a type two
  239         transfer; providing effective dates.
  240          
  241  Be It Enacted by the Legislature of the State of Florida:
  242  
  243         Section 1. Section 17.0315, Florida Statutes, is repealed.
  244         Section 2. Subsections (1) and (3) of section 48.151,
  245  Florida Statutes, are amended to read:
  246         48.151 Service on statutory agents for certain persons.—
  247         (1) When any law designates a public officer, board,
  248  agency, or commission as the agent for service of process on any
  249  person, firm, or corporation, service of process thereunder
  250  shall be made by leaving one copy of the process with the public
  251  officer, board, agency, or commission or in the office thereof,
  252  or by mailing one copy to the public officer, board, agency, or
  253  commission, except as provided in subsection (3). The public
  254  officer, board, agency, or commission so served shall retain a
  255  record copy and promptly send the copy served, by registered or
  256  certified mail, to the person to be served as shown by his or
  257  her or its records. Proof of service on the public officer,
  258  board, agency, or commission shall be by a notice accepting the
  259  process which shall be issued by the public officer, board,
  260  agency, or commission promptly after service and filed in the
  261  court issuing the process. The notice accepting service shall
  262  state the date upon which the copy of the process was mailed by
  263  the public officer, board, agency, or commission to the person
  264  being served and the time for pleading prescribed by the rules
  265  of procedure shall run from this date. The service is valid
  266  service for all purposes on the person for whom the public
  267  officer, board, agency, or commission is statutory agent for
  268  service of process.
  269         (3) The Chief Financial Officer or his or her assistant or
  270  deputy or another person in charge of the office is the agent
  271  for service of process on all insurers applying for authority to
  272  transact insurance in this state, all licensed nonresident
  273  insurance agents, all nonresident disability insurance agents
  274  licensed pursuant to s. 626.835, any unauthorized insurer under
  275  s. 626.906 or s. 626.937, domestic reciprocal insurers,
  276  fraternal benefit societies under chapter 632, warranty
  277  associations under chapter 634, prepaid limited health service
  278  organizations under chapter 636, and persons required to file
  279  statements under s. 628.461. As an alternative to service of
  280  process made by mail or personal service on the Chief Financial
  281  Officer, on his or her assistant or deputy, or on another person
  282  in charge of the office, The Department of Financial Services
  283  shall may create a secure online portal as the sole means an
  284  Internet-based transmission system to accept service of process
  285  on the Chief Financial Officer under this section by electronic
  286  transmission of documents.
  287         Section 3. Present subsections (9) through (13) of section
  288  110.123, Florida Statutes, are redesignated as subsections (10)
  289  through (14), respectively, a new subsection (9) is added to
  290  that section, and paragraphs (b), (c), (f), (h), (i), and (o) of
  291  subsection (2) and paragraph (i) of subsection (5) are amended,
  292  to read:
  293         110.123 State group insurance program.—
  294         (2) DEFINITIONS.—As used in ss. 110.123-110.1239, the term:
  295         (b) “Enrollee” means all state officers and employees,
  296  retired state officers and employees, surviving spouses of
  297  deceased state officers and employees, and terminated employees
  298  or individuals with continuation coverage who are enrolled in an
  299  insurance plan offered by the state group insurance program. The
  300  term “Enrollee” includes all state university officers and
  301  employees, retired state university officers and employees,
  302  surviving spouses of deceased state university officers and
  303  employees, and terminated state university employees or
  304  individuals with continuation coverage who are enrolled in an
  305  insurance plan offered by the state group insurance program. As
  306  used in this paragraph, state employees and retired state
  307  employees also include employees and retired employees of the
  308  Division of Rehabilitation and Liquidation.
  309         (c) “Full-time state employees” means employees of all
  310  branches or agencies of state government holding salaried
  311  positions who are paid by state warrant or from agency funds and
  312  who work or are expected to work an average of at least 30 or
  313  more hours per week; employees of the Division of Rehabilitation
  314  and Liquidation who work or are expected to work an average of
  315  at least 30 hours per week; employees paid from regular salary
  316  appropriations for 8 months’ employment, including university
  317  personnel on academic contracts; and employees paid from other
  318  personal-services (OPS) funds as described in subparagraphs 1.
  319  and 2. The term includes all full-time employees of the state
  320  universities. The term does not include seasonal workers who are
  321  paid from OPS funds.
  322         1. For persons hired before April 1, 2013, the term
  323  includes any person paid from OPS funds who:
  324         a. Has worked an average of at least 30 hours or more per
  325  week during the initial measurement period from April 1, 2013,
  326  through September 30, 2013; or
  327         b. Has worked an average of at least 30 hours or more per
  328  week during a subsequent measurement period.
  329         2. For persons hired after April 1, 2013, the term includes
  330  any person paid from OPS funds who:
  331         a. Is reasonably expected to work an average of at least 30
  332  hours or more per week; or
  333         b. Has worked an average of at least 30 hours or more per
  334  week during the person’s measurement period.
  335         (f) “Part-time state employee” means an employee of any
  336  branch or agency of state government paid by state warrant from
  337  salary appropriations or from agency funds, or an employee of
  338  the Division of Rehabilitation and Liquidation, and who is
  339  employed for less than an average of 30 hours per week or, if on
  340  academic contract or seasonal or other type of employment which
  341  is less than year-round, is employed for less than 8 months
  342  during any 12-month period, but does not include a person paid
  343  from other-personal-services (OPS) funds. The term includes all
  344  part-time employees of the state universities.
  345         (h) “Retired state officer or employee” or “retiree” means
  346  any state or state university officer or employee, or, beginning
  347  with the 2023 plan year, an employee of the Division of
  348  Rehabilitation and Liquidation, who retires under a state
  349  retirement system or a state optional annuity or retirement
  350  program or is placed on disability retirement, and who was
  351  insured under the state group insurance program or the Division
  352  of Rehabilitation and Liquidation’s group insurance program at
  353  the time of retirement, and who begins receiving retirement
  354  benefits immediately after retirement from state or state
  355  university office or employment. The term also includes any
  356  state officer or state employee who retires under the Florida
  357  Retirement System Investment Plan established under part II of
  358  chapter 121 if he or she:
  359         1. Meets the age and service requirements to qualify for
  360  normal retirement as set forth in s. 121.021(29); or
  361         2. Has attained the age specified by s. 72(t)(2)(A)(i) of
  362  the Internal Revenue Code and has 6 years of creditable service.
  363         (i) “State agency” or “agency” means any branch,
  364  department, or agency of state government. “State agency” or
  365  “agency” includes any state university and the Division of
  366  Rehabilitation and Liquidation for purposes of this section
  367  only.
  368         (o) “Surviving spouse” means the widow or widower of a
  369  deceased state officer, full-time state employee, part-time
  370  state employee, or retiree if such widow or widower was covered
  371  as a dependent under the state group health insurance plan,
  372  TRICARE supplemental insurance plan, or a health maintenance
  373  organization plan established pursuant to this section, or the
  374  Division of Rehabilitation and Liquidation’s group insurance
  375  program at the time of the death of the deceased officer,
  376  employee, or retiree. “Surviving spouse” also means any widow or
  377  widower who is receiving or eligible to receive a monthly state
  378  warrant from a state retirement system as the beneficiary of a
  379  state officer, full-time state employee, or retiree who died
  380  prior to July 1, 1979. For the purposes of this section, any
  381  such widow or widower shall cease to be a surviving spouse upon
  382  his or her remarriage.
  383         (5) DEPARTMENT POWERS AND DUTIES.—The department is
  384  responsible for the administration of the state group insurance
  385  program. The department shall initiate and supervise the program
  386  as established by this section and shall adopt such rules as are
  387  necessary to perform its responsibilities. To implement this
  388  program, the department shall, with prior approval by the
  389  Legislature:
  390         (i) Contract with a single custodian to provide services
  391  necessary to implement and administer the health savings
  392  accounts authorized in subsection (13) (12).
  393  
  394  Final decisions concerning enrollment, the existence of
  395  coverage, or covered benefits under the state group insurance
  396  program shall not be delegated or deemed to have been delegated
  397  by the department.
  398         (9)COVERAGE AND ENROLLMENT PERIOD FOR EMPLOYEES, RETIREES,
  399  AND WIDOWS AND WIDOWERS OF EMPLOYEES AND RETIREES OF THE
  400  DIVISION OF REHABILITATION AND LIQUIDATION.—
  401         (a)Beginning with the 2023 plan year:
  402         1.A retired employee insured under the Division of
  403  Rehabilitation and Liquidation’s group insurance program, or a
  404  widow or widower of an employee or of a retired employee of the
  405  Division of Rehabilitation and Liquidation who is covered as a
  406  dependent under the Division of Rehabilitation and Liquidation’s
  407  group insurance program, may purchase coverage in a state group
  408  health insurance plan at the same premium cost as that for a
  409  retiree or a surviving spouse, respectively, enrolled in the
  410  state group insurance program.
  411         2.A terminated employee of the Division of Rehabilitation
  412  and Liquidation or an individual with continuation coverage who
  413  is insured under the Division of Rehabilitation and
  414  Liquidation’s group insurance program may purchase coverage in a
  415  state group health insurance plan at the same premium cost as
  416  that for a terminated employee or an individual with
  417  continuation coverage, respectively, enrolled in the state group
  418  insurance program.
  419         (b)The enrollment period for the state group insurance
  420  program begins with the 2023 plan year for:
  421         1.Current and retired employees of the Division of
  422  Rehabilitation and Liquidation.
  423         2.Widows and widowers of employees and of retired
  424  employees of the Division of Rehabilitation and Liquidation.
  425         3.Terminated employees of the Division of Rehabilitation
  426  and Liquidation or individuals with continuation coverage who
  427  are insured under the Division of Rehabilitation and
  428  Liquidation’s group insurance program.
  429         Section 4. Subsection (5) of section 110.131, Florida
  430  Statutes, is amended to read:
  431         110.131 Other-personal-services employment.—
  432         (5) Beginning January 1, 2014, an other-personal-services
  433  (OPS) employee who has worked an average of at least 30 or more
  434  hours per week during the measurement period described in s.
  435  110.123(14)(c) or (d) s. 110.123(13)(c) or (d), or who is
  436  reasonably expected to work an average of at least 30 or more
  437  hours per week following his or her employment, is eligible to
  438  participate in the state group insurance program as provided
  439  under s. 110.123.
  440         Section 5. Paragraph (d) is added to subsection (4) of
  441  section 120.541, Florida Statutes, and paragraph (a) of
  442  subsection (2) and subsection (3) of that section are
  443  republished, to read:
  444         120.541 Statement of estimated regulatory costs.—
  445         (2) A statement of estimated regulatory costs shall
  446  include:
  447         (a) An economic analysis showing whether the rule directly
  448  or indirectly:
  449         1. Is likely to have an adverse impact on economic growth,
  450  private sector job creation or employment, or private sector
  451  investment in excess of $1 million in the aggregate within 5
  452  years after the implementation of the rule;
  453         2. Is likely to have an adverse impact on business
  454  competitiveness, including the ability of persons doing business
  455  in the state to compete with persons doing business in other
  456  states or domestic markets, productivity, or innovation in
  457  excess of $1 million in the aggregate within 5 years after the
  458  implementation of the rule; or
  459         3. Is likely to increase regulatory costs, including any
  460  transactional costs, in excess of $1 million in the aggregate
  461  within 5 years after the implementation of the rule.
  462         (3) If the adverse impact or regulatory costs of the rule
  463  exceed any of the criteria established in paragraph (2)(a), the
  464  rule shall be submitted to the President of the Senate and
  465  Speaker of the House of Representatives no later than 30 days
  466  prior to the next regular legislative session, and the rule may
  467  not take effect until it is ratified by the Legislature.
  468         (4) Subsection (3) does not apply to the adoption of:
  469         (d)Schedules of maximum reimbursement allowances by the
  470  three-member panel which are expressly authorized by s. 440.13.
  471         Section 6. Subsection (1) of section 215.34, Florida
  472  Statutes, is amended to read:
  473         215.34 State funds; noncollectible items; procedure.—
  474         (1) Any check, draft, or other order for the payment of
  475  money in payment of any licenses, fees, taxes, commissions, or
  476  charges of any sort authorized to be made under the laws of the
  477  state and deposited in the State Treasury as provided herein,
  478  which may be returned for any reason by the bank or other payor
  479  upon which same shall have been drawn shall be forthwith
  480  returned by the Chief Financial Officer for collection to the
  481  state officer, the state agency, or the entity of the judicial
  482  branch making the deposit. In such case, the Chief Financial
  483  Officer may issue a debit memorandum charging an account of the
  484  agency, officer, or entity of the judicial branch which
  485  originally received the payment. The original of the debit
  486  memorandum shall state the reason for the return of the check,
  487  draft, or other order and shall accompany the item being
  488  returned to the officer, agency, or entity of the judicial
  489  branch being charged. The officer, agency, or entity of the
  490  judicial branch receiving the charged-back item shall prepare a
  491  journal transfer which shall debit the charge against the fund
  492  or account to which the same shall have been originally
  493  credited. Such procedure for handling noncollectible items shall
  494  not be construed as paying funds out of the State Treasury
  495  without an appropriation, but shall be considered as an
  496  administrative procedure for the efficient handling of state
  497  records and accounts.
  498         Section 7. Paragraph (c) of subsection (1) of section
  499  215.93, Florida Statutes, is amended to read:
  500         215.93 Florida Financial Management Information System.—
  501         (1) To provide the information necessary to carry out the
  502  intent of the Legislature, there shall be a Florida Financial
  503  Management Information System. The Florida Financial Management
  504  Information System shall be fully implemented and shall be
  505  upgraded as necessary to ensure the efficient operation of an
  506  integrated financial management information system and to
  507  provide necessary information for the effective operation of
  508  state government. Upon the recommendation of the coordinating
  509  council and approval of the board, the Florida Financial
  510  Management Information System may require data from any state
  511  agency information system or information subsystem or may
  512  request data from any judicial branch information system or
  513  information subsystem that the coordinating council and board
  514  have determined to have statewide financial management
  515  significance. Each functional owner information subsystem within
  516  the Florida Financial Management Information System shall be
  517  developed in such a fashion as to allow for timely, positive,
  518  preplanned, and prescribed data transfers between the Florida
  519  Financial Management Information System functional owner
  520  information subsystems and from other information systems. The
  521  principal unit of the system shall be the functional owner
  522  information subsystem, and the system shall include, but shall
  523  not be limited to, the following:
  524         (c) Financial Cash Management Subsystem.
  525         Section 8. Subsection (3) of section 215.94, Florida
  526  Statutes, is amended to read:
  527         215.94 Designation, duties, and responsibilities of
  528  functional owners.—
  529         (3) The Chief Financial Officer shall be the functional
  530  owner of the Financial Cash Management Subsystem. The Chief
  531  Financial Officer shall design, implement, and operate the
  532  subsystem in accordance with the provisions of ss. 215.90
  533  215.96. The subsystem shall include, but shall not be limited
  534  to, functions for:
  535         (a) Recording and reconciling credits and debits to
  536  treasury fund accounts.
  537         (b) Monitoring cash levels and activities in state bank
  538  accounts.
  539         (c) Monitoring short-term investments of idle cash.
  540         (d) Administering the provisions of the Federal Cash
  541  Management Improvement Act of 1990.
  542         Section 9. Subsection (3) of section 216.102, Florida
  543  Statutes, is amended to read:
  544         216.102 Filing of financial information; handling by Chief
  545  Financial Officer; penalty for noncompliance.—
  546         (3) The Chief Financial Officer shall:
  547         (a) Prepare and furnish to the Auditor General annual
  548  financial statements for the state on or before December 31 of
  549  each year, using generally accepted accounting principles.
  550         (b) Prepare and publish an annual a comprehensive annual
  551  financial report for the state in accordance with generally
  552  accepted accounting principles on or before February 28 of each
  553  year.
  554         (c) Furnish the Governor, the President of the Senate, and
  555  the Speaker of the House of Representatives with a copy of the
  556  annual comprehensive annual financial report prepared pursuant
  557  to paragraph (b).
  558         (d) Notify each agency and the judicial branch of the data
  559  that is required to be recorded to enhance accountability for
  560  tracking federal financial assistance.
  561         (e) Provide reports, as requested, to executive or judicial
  562  branch entities, the President of the Senate, the Speaker of the
  563  House of Representatives, and the members of the Florida
  564  Congressional Delegation, detailing the federal financial
  565  assistance received and disbursed by state agencies and the
  566  judicial branch.
  567         (f) Consult with and elicit comments from the Executive
  568  Office of the Governor on changes to the Florida Accounting
  569  Information Resource Subsystem which clearly affect the
  570  accounting of federal funds, so as to ensure consistency of
  571  information entered into the Federal Aid Tracking System by
  572  state executive and judicial branch entities. While efforts
  573  shall be made to ensure the compatibility of the Florida
  574  Accounting Information Resource Subsystem and the Federal Aid
  575  Tracking System, any successive systems serving identical or
  576  similar functions shall preserve such compatibility.
  577  
  578  The Chief Financial Officer may furnish and publish in
  579  electronic form the financial statements and the annual
  580  comprehensive annual financial report required under paragraphs
  581  (a), (b), and (c).
  582         Section 10. Paragraph (h) of subsection (1) of section
  583  218.32, Florida Statutes, is amended, and paragraph (i) is added
  584  to that subsection, to read:
  585         218.32 Annual financial reports; local governmental
  586  entities.—
  587         (1)
  588         (h) It is the intent of the Legislature to create The
  589  Florida Open Financial Statement System must serve as, an
  590  interactive repository for governmental financial statements.
  591  This system serves as the primary reporting location for
  592  government financial information. A local government shall use
  593  the system to file with the department copies of all audit
  594  reports compiled pursuant to ss. 11.45 and 218.39. The system
  595  must be accessible to the public and must be open to inspection
  596  at all times by the Legislature, the Auditor General, and the
  597  Chief Inspector General.
  598         1. The Chief Financial Officer may consult with
  599  stakeholders with regard to, including the department, the
  600  Auditor General, a representative of a municipality or county, a
  601  representative of a special district, a municipal bond investor,
  602  and an information technology professional employed in the
  603  private sector, for input on the design and implementation of
  604  the Florida Open Financial Statement System.
  605         2. The Chief Financial Officer may choose contractors to
  606  build one or more eXtensible Business Reporting Language (XBRL)
  607  taxonomies suitable for state, county, municipal, and special
  608  district financial filings and to create a software tool that
  609  enables financial statement filers to easily create XBRL
  610  documents consistent with such taxonomies. The Chief Financial
  611  Officer must recruit and select contractors through an open
  612  request for proposals process pursuant to chapter 287.
  613         3. The Chief Financial Officer must require that all work
  614  products be completed no later than December 31, 2021.
  615         4. If the Chief Financial Officer deems the work products
  616  adequate, all local governmental financial statements for fiscal
  617  years ending on or after September 1, 2022, may must be filed in
  618  XBRL format as prescribed by the Chief Financial Officer and
  619  must meet the validation requirements of the relevant taxonomy.
  620         5. A local government that begins filing in XBRL format may
  621  not be required to make filings in Portable Document Format.
  622         (i)Each local governmental entity that enters all required
  623  information in the Florida Open Financial Statement System is
  624  deemed to be compliant with this section, except as otherwise
  625  provided in this section.
  626         Section 11. Section 395.1061, Florida Statutes, is created
  627  to read:
  628         395.1061Professional liability coverage.—
  629         (1)As used in this section, the term:
  630         (a)“Committee” means a committee or board of a hospital
  631  established to make recommendations, policies, or decisions
  632  regarding patient institutional utilization, patient treatment,
  633  or institutional staff privileges or to perform other
  634  administrative or professional purposes or functions.
  635         (b)“Covered individuals” means the officers; trustees;
  636  volunteer workers; trainees; committee members, including
  637  physicians, osteopathic physicians, podiatric physicians, and
  638  dentists; and employees of the hospital other than employed
  639  physicians licensed under chapter 458, physician assistants
  640  licensed under chapter 458, osteopathic physicians licensed
  641  under chapter 459, dentists licensed under chapter 466, and
  642  podiatric physicians licensed under chapter 461. However, with
  643  respect to a hospital, the term also includes house physicians,
  644  interns, employed physician residents in a resident training
  645  program, and physicians performing purely administrative duties
  646  for the hospital instead of treating patients. The coverage
  647  applies to the hospital and those included in the definition of
  648  health care provider as provided in s. 985.6441(1).
  649         (c)“Hospital system” means two or more hospitals
  650  associated by common ownership or corporate affiliation.
  651         (d)“House physician” means any physician, osteopathic
  652  physician, podiatric physician, or dentist at a hospital,
  653  except:
  654         1.The physician, osteopathic physician, podiatric
  655  physician, or dentist who has staff privileges at a hospital,
  656  provides emergency room services, or performs a medical or
  657  dental service for a fee; or
  658         2.An anesthesiologist, a pathologist, or a radiologist.
  659         (e) “Occurrence” means an accident or incident, including
  660  continuous or repeated exposure to certain harmful conditions,
  661  which results in patient injuries.
  662         (f) “Per claim” means all claims per patient arising out of
  663  an occurrence.
  664         (2) Each hospital, unless exempted under paragraph (3)(b),
  665  must demonstrate financial responsibility for maintaining
  666  professional liability coverage to pay claims and costs
  667  ancillary thereto arising out of the rendering of or failure to
  668  render medical care or services and for bodily injury or
  669  property damage to the person or property of any patient arising
  670  out of the activities of the hospital or arising out of the
  671  activities of covered individuals, to the satisfaction of the
  672  agency, by meeting one of the following requirements:
  673         (a) Establish an escrow account in an amount equivalent to
  674  $10,000 per claim for each bed in such hospital, not to exceed a
  675  $2.5 million annual aggregate.
  676         (b) Obtain professional liability coverage in an amount
  677  equivalent to $10,000 or more per claim for each bed in such
  678  hospital from a private insurer, from the Joint Underwriting
  679  Association established under s. 627.351(4), or through a plan
  680  of self-insurance as provided in s. 627.357. However, a hospital
  681  may not be required to obtain such coverage in an amount
  682  exceeding a $2.5 million annual aggregate.
  683         (3)(a) Each hospital, unless exempted under paragraph (b),
  684  shall provide evidence of compliance and remain in continuous
  685  compliance with the professional liability coverage provisions
  686  of this section. The agency may not issue or renew the license
  687  of any hospital that does not provide evidence of compliance or
  688  that provides evidence of insufficient coverage.
  689         (b) Any hospital operated by an agency, subdivision, or
  690  instrumentality of the state is exempt from the provisions of
  691  this section.
  692         (4) A hospital system may meet the professional liability
  693  coverage requirement with an escrow account, insurance, or self
  694  insurance policies if the $10,000 per claim and $2.5 million
  695  annual aggregate are met for each hospital in the hospital
  696  system.
  697         Section 12. Section 414.40, Florida Statutes, is amended to
  698  read:
  699         414.40 Stop Inmate Fraud Program established; guidelines.—
  700         (1) There is created within the Department of Economic
  701  Opportunity Financial Services a Stop Inmate Fraud Program.
  702         (2) The Department of Economic Opportunity Financial
  703  Services is directed to implement the Stop Inmate Fraud Program
  704  in accordance with the following guidelines:
  705         (a) The program shall establish procedures for sharing
  706  public records not exempt from the public records law among
  707  social services agencies regarding the identities of persons
  708  incarcerated in state correctional institutions, as defined in
  709  s. 944.02, and or in county, municipal, or regional jails or
  710  other detention facilities of local governments under chapter
  711  950 and or chapter 951 who are wrongfully receiving public
  712  assistance benefits or entitlement benefits.
  713         (b) Pursuant to these procedures, the program shall have
  714  access to records containing correctional information not exempt
  715  from the public records law on incarcerated persons which have
  716  been generated as criminal justice information. As used in this
  717  paragraph, the terms “record” and “criminal justice information”
  718  have the same meanings as provided in s. 943.045.
  719         (c) Database searches shall be conducted of the inmate
  720  population at each correctional institution or other detention
  721  facility. A correctional institution or a detention facility
  722  shall provide the Stop Inmate Fraud Program with the information
  723  necessary to identify persons wrongfully receiving benefits in
  724  the medium requested by the Stop Inmate Fraud Program if the
  725  correctional institution or detention facility maintains the
  726  information in that medium.
  727         (d) Data obtained from correctional institutions or other
  728  detention facilities shall be compared with the client files of
  729  the Department of Children and Families, the Department of
  730  Economic Opportunity, and other state or local agencies as
  731  needed to identify persons wrongfully obtaining benefits. Data
  732  comparisons shall be accomplished during periods of low
  733  information demand by agency personnel to minimize inconvenience
  734  to the agency.
  735         (e) Results of data comparisons shall be furnished to the
  736  appropriate office for use in the county in which the data
  737  originated. The program may provide reports of the data it
  738  obtains to appropriate state, federal, and local government
  739  agencies or governmental entities, including, but not limited
  740  to:
  741         1. The Child Support Enforcement Program of the Department
  742  of Revenue, so that the data may be used as locator information
  743  on persons being sought for purposes of child support.
  744         2. The Social Security Administration, so that the data may
  745  be used to reduce federal entitlement fraud within the state.
  746         3.The Division of Public Assistance Fraud of the
  747  Department of Financial Services, so that an investigation of
  748  the fraudulent receipt of public assistance may be facilitated.
  749         (f) Reports by the program to another agency or entity
  750  shall be generated bimonthly, or as otherwise directed, and
  751  shall be designed to accommodate that agency’s or entity’s
  752  particular needs for data.
  753         (g) Only those persons with active cases, or with cases
  754  that were active during the incarceration period, shall be
  755  reported, in order that the funding agency or entity, upon
  756  verification of the data, may take whatever action is deemed
  757  appropriate.
  758         (h) For purposes of program review and analysis, each
  759  agency or entity receiving data from the program shall submit
  760  reports to the program which indicate the results of how the
  761  data was used.
  762         Section 13. Paragraph (a) of subsection (16) of section
  763  440.02, Florida Statutes, is amended to read:
  764         440.02 Definitions.—When used in this chapter, unless the
  765  context clearly requires otherwise, the following terms shall
  766  have the following meanings:
  767         (16)(a) “Employer” means the state and all political
  768  subdivisions thereof, all public and quasi-public corporations
  769  therein, every person carrying on any employment, and the legal
  770  representative of a deceased person or the receiver or trustees
  771  of any person. The term “Employer” also includes employment
  772  agencies and, employee leasing companies that, and similar
  773  agents who provide employees to other business entities or
  774  persons. If the employer is a corporation, parties in actual
  775  control of the corporation, including, but not limited to, the
  776  president, officers who exercise broad corporate powers,
  777  directors, and all shareholders who directly or indirectly own a
  778  controlling interest in the corporation, are considered the
  779  employer for the purposes of ss. 440.105, 440.106, and 440.107.
  780         Section 14. Effective January 1, 2023, subsections (3),
  781  (4), (10), and (12) of section 440.05, Florida Statutes, are
  782  amended to read:
  783         440.05 Election of exemption; revocation of election;
  784  notice; certification.—
  785         (3) The notice of election to be exempt must be
  786  electronically submitted to the department by the officer of a
  787  corporation who is allowed to claim an exemption as provided by
  788  this chapter and must list the name, date of birth, valid driver
  789  license number or Florida identification card number, and all
  790  certified or registered licenses issued pursuant to chapter 489
  791  held by the person seeking the exemption, the registration
  792  number of the corporation filed with the Division of
  793  Corporations of the Department of State, and the percentage of
  794  ownership evidencing the required ownership under this chapter.
  795  The notice of election to be exempt must identify each
  796  corporation that employs the person electing the exemption and
  797  must list the social security number or federal tax
  798  identification number of each such employer and the additional
  799  documentation required by this section. In addition, the notice
  800  of election to be exempt must provide that the officer electing
  801  an exemption is not entitled to benefits under this chapter,
  802  must provide that the election does not exceed exemption limits
  803  for officers provided in s. 440.02, and must certify that any
  804  employees of the corporation whose officer elects an exemption
  805  are covered by workers’ compensation insurance, and must certify
  806  that the officer electing an exemption has completed an online
  807  workers’ compensation coverage and compliance tutorial developed
  808  by the department. Upon receipt of the notice of the election to
  809  be exempt, receipt of all application fees, and a determination
  810  by the department that the notice meets the requirements of this
  811  subsection, the department shall issue a certification of the
  812  election to the officer, unless the department determines that
  813  the information contained in the notice is invalid. The
  814  department shall revoke a certificate of election to be exempt
  815  from coverage upon a determination by the department that the
  816  person does not meet the requirements for exemption or that the
  817  information contained in the notice of election to be exempt is
  818  invalid. The certificate of election must list the name of the
  819  corporation listed in the request for exemption. A new
  820  certificate of election must be obtained each time the person is
  821  employed by a new or different corporation that is not listed on
  822  the certificate of election. Upon written request from a
  823  workers’ compensation carrier, the department shall send
  824  thereafter an electronic notification to the carrier identifying
  825  each of its policyholders for which a notice of election to be
  826  exempt has been issued or for which a notice of revocation to be
  827  exempt has been received A notice of the certificate of election
  828  must be sent to each workers’ compensation carrier identified in
  829  the request for exemption. Upon filing a notice of revocation of
  830  election, an officer who is a subcontractor or an officer of a
  831  corporate subcontractor must notify her or his contractor. Upon
  832  revocation of a certificate of election of exemption by the
  833  department, the department shall notify the workers’
  834  compensation carriers identified in the request for exemption.
  835         (4) The notice of election to be exempt from the provisions
  836  of this chapter must contain a notice that clearly states in
  837  substance the following: “Any person who, knowingly and with
  838  intent to injure, defraud, or deceive the department or any
  839  employer or employee, insurance company, or any other person,
  840  files a notice of election to be exempt containing any false or
  841  misleading information is guilty of a felony of the third
  842  degree.” Each person filing a notice of election to be exempt
  843  shall personally sign the notice and attest that he or she has
  844  reviewed, understands, and acknowledges the foregoing notice.
  845  The certificate of election to be exempt must contain the
  846  following notice: “This certificate of election to be exempt is
  847  NOT a license issued by the Department of Business and
  848  Professional Regulation (DBPR). To determine if the
  849  certificateholder is required to have a license to perform work
  850  or to verify the license of the certificateholder, go to (insert
  851  DBPR’s website address for where to find this information).”
  852         (10)Each officer of a corporation who is actively engaged
  853  in the construction industry and who elects an exemption from
  854  this chapter shall maintain business records as specified by the
  855  department by rule.
  856         (11)(12) Certificates of election to be exempt issued under
  857  subsection (3) shall apply only to the corporate officer named
  858  on the notice of election to be exempt and apply only within the
  859  scope of the business or trade listed on the notice of election
  860  to be exempt.
  861         Section 15. Effective January 1, 2023, paragraphs (a) and
  862  (d) of subsection (7) of section 440.107, Florida Statutes, are
  863  amended to read:
  864         440.107 Department powers to enforce employer compliance
  865  with coverage requirements.—
  866         (7)(a) Whenever the department determines that an employer
  867  who is required to secure the payment to his or her employees of
  868  the compensation provided for by this chapter has failed to
  869  secure the payment of workers’ compensation required by this
  870  chapter or to produce the required business records under
  871  subsection (5) within 21 10 business days after receipt of the
  872  written request of the department, such failure shall be deemed
  873  an immediate serious danger to public health, safety, or welfare
  874  sufficient to justify service by the department of a stop-work
  875  order on the employer, requiring the cessation of all business
  876  operations. If the department makes such a determination, the
  877  department shall issue a stop-work order within 72 hours. The
  878  order shall take effect when served upon the employer or, for a
  879  particular employer worksite, when served at that worksite. In
  880  addition to serving a stop-work order at a particular worksite
  881  which shall be effective immediately, the department shall
  882  immediately proceed with service upon the employer which shall
  883  be effective upon all employer worksites in the state for which
  884  the employer is not in compliance. A stop-work order may be
  885  served with regard to an employer’s worksite by posting a copy
  886  of the stop-work order in a conspicuous location at the
  887  worksite. Information related to an employer’s stop-work order
  888  shall be made available on the division’s website, be updated
  889  daily, and remain on the website for at least 5 years. The order
  890  shall remain in effect until the department issues an order
  891  releasing the stop-work order upon a finding that the employer
  892  has come into compliance with the coverage requirements of this
  893  chapter and has paid any penalty assessed under this section.
  894  The department may issue an order of conditional release from a
  895  stop-work order to an employer upon a finding that the employer
  896  has complied with the coverage requirements of this chapter,
  897  paid a penalty of $1,000 as a down payment, and agreed to remit
  898  periodic payments of the remaining penalty amount pursuant to a
  899  payment agreement schedule with the department or pay the
  900  remaining penalty amount in full. An employer may not enter into
  901  a payment agreement schedule unless the employer has fully paid
  902  any previous penalty assessed under this section. If an order of
  903  conditional release is issued, failure by the employer to pay
  904  the penalty in full or enter into a payment agreement with the
  905  department within 21 28 days after service of the first penalty
  906  assessment calculation stop-work order upon the employer, or to
  907  meet any term or condition of such penalty payment agreement,
  908  shall result in the immediate reinstatement of the stop-work
  909  order and the entire unpaid balance of the penalty shall become
  910  immediately due.
  911         (d)1. In addition to any penalty, stop-work order, or
  912  injunction, the department shall assess against an any employer
  913  who has failed to secure the payment of compensation as required
  914  by this chapter a penalty equal to 2 times the amount the
  915  employer would have paid in premium when applying approved
  916  manual rates to the employer’s payroll during periods for which
  917  it failed to secure the payment of workers’ compensation
  918  required by this chapter within the preceding 12-month 2-year
  919  period or $1,000, whichever is greater. However, for an employer
  920  who is issued a stop-work order for materially understating or
  921  concealing payroll or has been previously issued a stop-work
  922  order or an order of penalty assessment, the preceding 24-month
  923  period shall be used to calculate the penalty as specified in
  924  this subparagraph.
  925         a. For an employer employers who has have not been
  926  previously issued a stop-work order or order of penalty
  927  assessment, the department must allow the employer to receive a
  928  credit for the initial payment of the estimated annual workers’
  929  compensation policy premium, as determined by the carrier, to be
  930  applied to the penalty. Before applying the credit to the
  931  penalty, the employer must provide the department with
  932  documentation reflecting that the employer has secured the
  933  payment of compensation pursuant to s. 440.38 and proof of
  934  payment to the carrier. In order for the department to apply a
  935  credit for an employer that has secured workers’ compensation
  936  for leased employees by entering into an employee leasing
  937  contract with a licensed employee leasing company, the employer
  938  must provide the department with a written confirmation, by a
  939  representative from the employee leasing company, of the dollar
  940  or percentage amount attributable to the initial estimated
  941  workers’ compensation expense for leased employees, and proof of
  942  payment to the employee leasing company. The credit may not be
  943  applied unless the employer provides the documentation and proof
  944  of payment to the department within 21 28 days after the
  945  employer’s receipt of the written request to produce business
  946  records for calculating the penalty under this subparagraph
  947  service of the stop-work order or first order of penalty
  948  assessment upon the employer.
  949         b. For an employer employers who has have not been
  950  previously issued a stop-work order or order of penalty
  951  assessment, the department must reduce the final assessed
  952  penalty by 25 percent if the employer has complied with
  953  administrative rules adopted pursuant to subsection (5) and has
  954  provided such business records to the department within 21 10
  955  business days after the employer’s receipt of the written
  956  request to produce business records for calculating the penalty
  957  under this subparagraph.
  958         c. For an employer who has not been previously issued a
  959  stop-work order or an order of penalty assessment, the
  960  department must reduce the final assessed penalty by 15 percent
  961  if the employer correctly answers at least 80 percent of the
  962  questions from an online workers’ compensation coverage and
  963  compliance tutorial, developed by the department, within 21 days
  964  after the employer’s receipt of the written request to produce
  965  business records for calculating the penalty under this
  966  subparagraph. The online tutorial must be taken in a department
  967  office location identified by rule.
  968  
  969  The $1,000 penalty shall be assessed against the employer even
  970  if the calculated penalty after the credit provided in sub
  971  subparagraph a., the and 25 percent reduction provided in sub
  972  subparagraph b., and the 15 percent reduction provided in sub
  973  subparagraph c., as applicable, have been applied is less than
  974  $1,000.
  975         2. Any subsequent violation within 5 years after the most
  976  recent violation shall, in addition to the penalties set forth
  977  in this subsection, be deemed a knowing act within the meaning
  978  of s. 440.105.
  979         Section 16. Subsection (12) of section 440.13, Florida
  980  Statutes, is amended to read:
  981         440.13 Medical services and supplies; penalty for
  982  violations; limitations.—
  983         (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
  984  REIMBURSEMENT ALLOWANCES.—
  985         (a) A three-member panel is created, consisting of the
  986  Chief Financial Officer, or the Chief Financial Officer’s
  987  designee, and two members to be appointed by the Governor,
  988  subject to confirmation by the Senate, one member who, on
  989  account of present or previous vocation, employment, or
  990  affiliation, shall be classified as a representative of
  991  employers, the other member who, on account of previous
  992  vocation, employment, or affiliation, shall be classified as a
  993  representative of employees. The panel shall determine statewide
  994  schedules of maximum reimbursement allowances for medically
  995  necessary treatment, care, and attendance provided by
  996  physicians, hospitals, ambulatory surgical centers, work
  997  hardening programs, pain programs, and durable medical
  998  equipment. The maximum reimbursement allowances for inpatient
  999  hospital care shall be based on a schedule of per diem rates, to
 1000  be approved by the three-member panel no later than March 1,
 1001  1994, to be used in conjunction with a precertification manual
 1002  as determined by the department, including maximum hours in
 1003  which an outpatient may remain in observation status, which
 1004  shall not exceed 23 hours. All compensable charges for hospital
 1005  outpatient care shall be reimbursed at 75 percent of usual and
 1006  customary charges, except as otherwise provided by this
 1007  subsection. Annually, the three-member panel shall adopt
 1008  schedules of maximum reimbursement allowances for physicians,
 1009  hospital inpatient care, hospital outpatient care, ambulatory
 1010  surgical centers, work-hardening programs, and pain programs. An
 1011  individual physician, hospital, ambulatory surgical center, pain
 1012  program, or work-hardening program shall be reimbursed:
 1013         1.either The agreed-upon contract price; or
 1014         2.If there is no agreed-upon contract price, the lesser of
 1015  the provider’s billed charge or the maximum reimbursement
 1016  allowance in the appropriate schedule.
 1017         (b) It is the intent of the Legislature to increase the
 1018  schedule of maximum reimbursement allowances for selected
 1019  physicians effective January 1, 2004, and to pay for the
 1020  increases through reductions in payments to hospitals. Revisions
 1021  developed pursuant to this subsection are limited to the
 1022  following:
 1023         1. Payments for outpatient physical, occupational, and
 1024  speech therapy provided by hospitals shall be reduced to the
 1025  schedule of maximum reimbursement allowances for these services
 1026  which applies to nonhospital providers.
 1027         2. Payments for scheduled outpatient nonemergency
 1028  radiological and clinical laboratory services that are not
 1029  provided in conjunction with a surgical procedure shall be
 1030  reduced to the schedule of maximum reimbursement allowances for
 1031  these services which applies to nonhospital providers.
 1032         3. Outpatient reimbursement for scheduled surgeries shall
 1033  be reduced from 75 percent of charges to 60 percent of charges.
 1034         4. Maximum reimbursement for a physician licensed under
 1035  chapter 458 or chapter 459 shall be increased to 110 percent of
 1036  the reimbursement allowed by Medicare, using appropriate codes
 1037  and modifiers or the medical reimbursement level adopted by the
 1038  three-member panel as of January 1, 2003, whichever is greater.
 1039         5. Maximum reimbursement for surgical procedures shall be
 1040  increased to 140 percent of the reimbursement allowed by
 1041  Medicare or the medical reimbursement level adopted by the
 1042  three-member panel as of January 1, 2003, whichever is greater.
 1043         (c) As to reimbursement for a prescription medication, the
 1044  reimbursement amount for a prescription shall be the average
 1045  wholesale price plus $4.18 for the dispensing fee. For
 1046  repackaged or relabeled prescription medications dispensed by a
 1047  dispensing practitioner as provided in s. 465.0276, the fee
 1048  schedule for reimbursement shall be 112.5 percent of the average
 1049  wholesale price, plus $8.00 for the dispensing fee. For purposes
 1050  of this subsection, the average wholesale price shall be
 1051  calculated by multiplying the number of units dispensed times
 1052  the per-unit average wholesale price set by the original
 1053  manufacturer of the underlying drug dispensed by the
 1054  practitioner, based upon the published manufacturer’s average
 1055  wholesale price published in the Medi-Span Master Drug Database
 1056  as of the date of dispensing. All pharmaceutical claims
 1057  submitted for repackaged or relabeled prescription medications
 1058  must include the National Drug Code of the original
 1059  manufacturer. Fees for pharmaceuticals and pharmaceutical
 1060  services shall be reimbursable at the applicable fee schedule
 1061  amount except where the employer or carrier, or a service
 1062  company, third party administrator, or any entity acting on
 1063  behalf of the employer or carrier directly contracts with the
 1064  provider seeking reimbursement for a lower amount.
 1065         (d) Reimbursement for all fees and other charges for such
 1066  treatment, care, and attendance, including treatment, care, and
 1067  attendance provided by any hospital or other health care
 1068  provider, ambulatory surgical center, work-hardening program, or
 1069  pain program, must not exceed the amounts provided by the
 1070  uniform schedule of maximum reimbursement allowances as
 1071  determined by the panel or as otherwise provided in this
 1072  section. This subsection also applies to independent medical
 1073  examinations performed by health care providers under this
 1074  chapter. In determining the uniform schedule, the panel shall
 1075  first approve the data which it finds representative of
 1076  prevailing charges in the state for similar treatment, care, and
 1077  attendance of injured persons. Each health care provider, health
 1078  care facility, ambulatory surgical center, work-hardening
 1079  program, or pain program receiving workers’ compensation
 1080  payments shall maintain records verifying their usual charges.
 1081  In establishing the uniform schedule of maximum reimbursement
 1082  allowances, the panel must consider:
 1083         1. The levels of reimbursement for similar treatment, care,
 1084  and attendance made by other health care programs or third-party
 1085  providers;
 1086         2. The impact upon cost to employers for providing a level
 1087  of reimbursement for treatment, care, and attendance which will
 1088  ensure the availability of treatment, care, and attendance
 1089  required by injured workers;
 1090         3. The financial impact of the reimbursement allowances
 1091  upon health care providers and health care facilities, including
 1092  trauma centers as defined in s. 395.4001, and its effect upon
 1093  their ability to make available to injured workers such
 1094  medically necessary remedial treatment, care, and attendance.
 1095  The uniform schedule of maximum reimbursement allowances must be
 1096  reasonable, must promote health care cost containment and
 1097  efficiency with respect to the workers’ compensation health care
 1098  delivery system, and must be sufficient to ensure availability
 1099  of such medically necessary remedial treatment, care, and
 1100  attendance to injured workers; and
 1101         4. The most recent average maximum allowable rate of
 1102  increase for hospitals determined by the Health Care Board under
 1103  chapter 408.
 1104         (e) In addition to establishing the uniform schedule of
 1105  maximum reimbursement allowances, the panel shall:
 1106         1. Take testimony, receive records, and collect data to
 1107  evaluate the adequacy of the workers’ compensation fee schedule,
 1108  nationally recognized fee schedules and alternative methods of
 1109  reimbursement to health care providers and health care
 1110  facilities for inpatient and outpatient treatment and care.
 1111         2. Survey health care providers and health care facilities
 1112  to determine the availability and accessibility of workers’
 1113  compensation health care delivery systems for injured workers.
 1114         3. Survey carriers to determine the estimated impact on
 1115  carrier costs and workers’ compensation premium rates by
 1116  implementing changes to the carrier reimbursement schedule or
 1117  implementing alternative reimbursement methods.
 1118         4. Submit recommendations on or before January 15, 2017,
 1119  and biennially thereafter, to the President of the Senate and
 1120  the Speaker of the House of Representatives on methods to
 1121  improve the workers’ compensation health care delivery system.
 1122  
 1123  The department, as requested, shall provide data to the panel,
 1124  including, but not limited to, utilization trends in the
 1125  workers’ compensation health care delivery system. The
 1126  department shall provide the panel with an annual report
 1127  regarding the resolution of medical reimbursement disputes and
 1128  any actions pursuant to subsection (8). The department shall
 1129  provide administrative support and service to the panel to the
 1130  extent requested by the panel and may adopt rules necessary to
 1131  administer this subsection. For prescription medication
 1132  purchased under the requirements of this subsection, a
 1133  dispensing practitioner shall not possess such medication unless
 1134  payment has been made by the practitioner, the practitioner’s
 1135  professional practice, or the practitioner’s practice management
 1136  company or employer to the supplying manufacturer, wholesaler,
 1137  distributor, or drug repackager within 60 days of the dispensing
 1138  practitioner taking possession of that medication.
 1139         Section 17. Subsection (3) of section 440.185, Florida
 1140  Statutes, is amended to read:
 1141         440.185 Notice of injury or death; reports; penalties for
 1142  violations.—
 1143         (3) Within 3 business days after the employer or the
 1144  employee informs the carrier of an injury, the carrier shall
 1145  send by regular mail or e-mail to the injured worker an
 1146  informational brochure approved by the department which sets
 1147  forth in clear and understandable language an explanation of the
 1148  rights, benefits, procedures for obtaining benefits and
 1149  assistance, criminal penalties, and obligations of injured
 1150  workers and their employers under the Florida Workers’
 1151  Compensation Law. Annually, the carrier or its third-party
 1152  administrator shall send by regular mail or e-mail to the
 1153  employer an informational brochure approved by the department
 1154  which sets forth in clear and understandable language an
 1155  explanation of the rights, benefits, procedures for obtaining
 1156  benefits and assistance, criminal penalties, and obligations of
 1157  injured workers and their employers under the Florida Workers’
 1158  Compensation Law. All such informational brochures shall contain
 1159  a notice that clearly states in substance the following: “Any
 1160  person who, knowingly and with intent to injure, defraud, or
 1161  deceive any employer or employee, insurance company, or self
 1162  insured program, files a statement of claim containing any false
 1163  or misleading information commits a felony of the third degree.”
 1164         Section 18. Subsection (3) of section 440.381, Florida
 1165  Statutes, is amended to read:
 1166         440.381 Application for coverage; reporting payroll;
 1167  payroll audit procedures; penalties.—
 1168         (3) The Financial Services Commission, in consultation with
 1169  the department, shall establish by rule minimum requirements for
 1170  audits of payroll and classifications in order to ensure that
 1171  the appropriate premium is charged for workers’ compensation
 1172  coverage. The rules must shall ensure that audits performed by
 1173  both carriers and employers are adequate to provide that all
 1174  sources of payments to employees, subcontractors, and
 1175  independent contractors are have been reviewed and that the
 1176  accuracy of classification of employees is has been verified.
 1177  The rules must require shall provide that employers in all
 1178  classes other than the construction class be audited at least
 1179  not less frequently than biennially and may provide for more
 1180  frequent audits of employers in specified classifications based
 1181  on factors such as amount of premium, type of business, loss
 1182  ratios, or other relevant factors. In no event shall Employers
 1183  in the construction class, generating more than the amount of
 1184  premium required to be experience rated must, be audited at
 1185  least less than annually. The annual audits required for
 1186  construction classes must shall consist of physical onsite
 1187  audits for policies only if the estimated annual premium is
 1188  $10,000 or more. Payroll verification audit rules must include,
 1189  but need not be limited to, the use of state and federal reports
 1190  of employee income, payroll and other accounting records,
 1191  certificates of insurance maintained by subcontractors, and
 1192  duties of employees. At the completion of an audit, the employer
 1193  or officer of the corporation and the auditor must print and
 1194  sign their names on the audit document and attach proof of
 1195  identification to the audit document.
 1196         Section 19. Subsection (2) of section 497.277, Florida
 1197  Statutes, is amended to read:
 1198         497.277 Other charges.—Other than the fees for the sale of
 1199  burial rights, burial merchandise, and burial services, no other
 1200  fee may be directly or indirectly charged, contracted for, or
 1201  received by a cemetery company as a condition for a customer to
 1202  use any burial right, burial merchandise, or burial service,
 1203  except for:
 1204         (2) Charges paid for transferring burial rights from one
 1205  purchaser to another; however, no such fee may exceed $50.
 1206         Section 20. Paragraph (b) of subsection (1) of section
 1207  497.369, Florida Statutes, is amended to read:
 1208         497.369 Embalmers; licensure as an embalmer by endorsement;
 1209  licensure of a temporary embalmer.—
 1210         (1) The licensing authority shall issue a license by
 1211  endorsement to practice embalming to an applicant who has
 1212  remitted an examination fee set by rule of the licensing
 1213  authority not to exceed $200 and who the licensing authority
 1214  certifies:
 1215         (b)1. Holds a valid license in good standing to practice
 1216  embalming in another state of the United States and has engaged
 1217  in the full-time, licensed practice of embalming in that state
 1218  for at least 5 years, provided that, when the applicant secured
 1219  her or his original license, the requirements for licensure were
 1220  substantially equivalent to or more stringent than those
 1221  existing in this state; or
 1222         2. Meets the qualifications for licensure in s. 497.368,
 1223  except that the internship requirement shall be deemed to have
 1224  been satisfied by 1 year’s practice as a licensed embalmer in
 1225  another state, and has, within 10 years before prior to the date
 1226  of application, successfully completed a state, regional, or
 1227  national examination in mortuary science, which, as determined
 1228  by rule of the licensing authority, is substantially equivalent
 1229  to or more stringent than the examination given by the licensing
 1230  authority.
 1231         Section 21. Paragraphs (b) and (f) of subsection (1) of
 1232  section 497.372, Florida Statutes, are amended to read:
 1233         497.372 Funeral directing; conduct constituting practice of
 1234  funeral directing.—
 1235         (1) The practice of funeral directing shall be construed to
 1236  consist of the following functions, which may be performed only
 1237  by a licensed funeral director:
 1238         (b) Planning or arranging, on an at-need basis, the details
 1239  of funeral services, embalming, cremation, or other services
 1240  relating to the final disposition of human remains, and
 1241  including the removal of such remains from the state; setting
 1242  the time of the services; establishing the type of services to
 1243  be rendered; acquiring the services of the clergy; and obtaining
 1244  vital information for the filing of death certificates and
 1245  obtaining of burial transit permits.
 1246         (f) Directing, being in charge or apparent charge of, or
 1247  supervising, directly or indirectly, any memorial service held
 1248  prior to or within 72 hours of the burial or cremation, if such
 1249  memorial service is sold or arranged by a licensee.
 1250         Section 22. Paragraph (b) of subsection (1) of section
 1251  497.374, Florida Statutes, is amended to read:
 1252         497.374 Funeral directing; licensure as a funeral director
 1253  by endorsement; licensure of a temporary funeral director.—
 1254         (1) The licensing authority shall issue a license by
 1255  endorsement to practice funeral directing to an applicant who
 1256  has remitted a fee set by rule of the licensing authority not to
 1257  exceed $200 and who:
 1258         (b)1. Holds a valid license in good standing to practice
 1259  funeral directing in another state of the United States and has
 1260  engaged in the full-time, licensed practice of funeral directing
 1261  in that state for at least 5 years, provided that, when the
 1262  applicant secured her or his original license, the requirements
 1263  for licensure were substantially equivalent to or more stringent
 1264  than those existing in this state; or
 1265         2. Meets the qualifications for licensure in s. 497.373,
 1266  except that the applicant need not hold an associate degree or
 1267  higher if the applicant holds a diploma or certificate from an
 1268  accredited program of mortuary science, and has successfully
 1269  completed a state, regional, or national examination in mortuary
 1270  science or funeral service arts, which, as determined by rule of
 1271  the licensing authority, is substantially equivalent to or more
 1272  stringent than the examination given by the licensing authority.
 1273         Section 23. Present subsection (6) of section 554.108,
 1274  Florida Statutes, is redesignated as subsection (7), a new
 1275  subsection (6) is added to that section, and subsection (1) of
 1276  that section is amended, to read:
 1277         554.108 Inspection.—
 1278         (1) The inspection requirements of this chapter apply only
 1279  to boilers located in public assembly locations. A potable hot
 1280  water supply boiler with an a heat input of 200,000 British
 1281  thermal units (Btu) per hour and above, up to an a heat input
 1282  not exceeding 400,000 Btu per hour, is exempt from inspection;
 1283  however, such an exempt boiler, if manufactured after July 1,
 1284  2022, but must be stamped with the A.S.M.E. code symbol.
 1285  Additionally, “HLW” and the boiler’s A.S.M.E data report of a
 1286  boiler with an input of 200,000 to 400,000 Btu per hour must be
 1287  filed as required under s. 554.103(2).
 1288         (6)Each enclosed space or room containing a boiler
 1289  regulated under this chapter which is fired by the direct
 1290  application of energy from the combustion of fuels and which is
 1291  located in any portion of a public lodging establishment under
 1292  s. 509.242 shall be equipped with one or more carbon monoxide
 1293  detector devices.
 1294         Section 24. Paragraphs (a) and (e) of subsection (1) and
 1295  paragraph (a) of subsection (2) of section 554.111, Florida
 1296  Statutes, are amended to read:
 1297         554.111 Fees.—
 1298         (1) The department shall charge the following fees:
 1299         (a) For an applicant for a certificate of competency, the
 1300  initial application fee shall be $50, and the annual renewal fee
 1301  shall be $30. The fee for examination shall be $50.
 1302         (e) An application for a boiler permit must include the
 1303  manufacturer’s data report applicable certificate inspection fee
 1304  provided in paragraph (b).
 1305         (2) Not more than an amount equal to one certificate
 1306  inspection fee may be charged or collected for any and all
 1307  boiler inspections in any inspection period, except as otherwise
 1308  provided in this chapter.
 1309         (a) When it is necessary to make a special trip for testing
 1310  and verification inspections to observe the application of a
 1311  hydrostatic test, an additional fee equal to the fee for a
 1312  certificate inspection of the boiler must be charged.
 1313         Section 25. Subsection (4) of section 554.114, Florida
 1314  Statutes, is amended to read:
 1315         554.114 Prohibitions; penalties.—
 1316         (4) A boiler insurance company, authorized inspection
 1317  agency, or other person in violation of this section for more
 1318  than 30 days shall pay a fine of $10 per day for the subsequent
 1319  first 10 days of noncompliance, $50 per day for the subsequent
 1320  20 days of noncompliance, and $100 per day for each subsequent
 1321  day over 20 days of noncompliance thereafter.
 1322         Section 26. Subsection (9) of section 624.307, Florida
 1323  Statutes, is amended to read:
 1324         624.307 General powers; duties.—
 1325         (9) Upon receiving service of legal process issued in any
 1326  civil action or proceeding in this state against any regulated
 1327  person or any unauthorized insurer under s. 626.906 or s.
 1328  626.937 that which is required to appoint the Chief Financial
 1329  Officer as its agent attorney to receive service of all legal
 1330  process, the Chief Financial Officer shall make the process
 1331  available through a secure online portal, as attorney, may, in
 1332  lieu of sending the process by registered or certified mail,
 1333  send the process or make it available by any other verifiable
 1334  means, including, but not limited to, making the documents
 1335  available by electronic transmission from a secure website
 1336  established by the department to the person last designated by
 1337  the regulated person or the unauthorized insurer to receive the
 1338  process. When process documents are made available
 1339  electronically, the Chief Financial Officer shall promptly send
 1340  a notice of receipt of service of process to the person last
 1341  designated by the regulated person or unauthorized insurer to
 1342  receive legal process. The notice must state the date and manner
 1343  in which the copy of the process was made available to the
 1344  regulated person or unauthorized insurer being served and
 1345  contain the uniform resource locator (URL) where for a hyperlink
 1346  to access files and information on the department’s website to
 1347  obtain a copy of the process may be obtained.
 1348         Section 27. Section 624.422, Florida Statutes, is amended
 1349  to read:
 1350         624.422 Service of process; appointment of Chief Financial
 1351  Officer as process agent.—
 1352         (1) Each licensed insurer, whether domestic, foreign, or
 1353  alien, shall be deemed to have appointed the Chief Financial
 1354  Officer and her or his successors in office as its agent
 1355  attorney to receive service of all legal process issued against
 1356  it in any civil action or proceeding in this state; and process
 1357  so served shall be valid and binding upon the insurer.
 1358         (2) Before Prior to its authorization to transact insurance
 1359  in this state, each insurer shall file with the department
 1360  designation of the name and e-mail address of the person to whom
 1361  process against it served upon the Chief Financial Officer is to
 1362  be made available through the department’s secure online portal
 1363  forwarded. Each insurer shall also file with the department
 1364  designation of the name and e-mail address of the person to whom
 1365  the department shall forward civil remedy notices filed under s.
 1366  624.155. The insurer may change a designation at any time by a
 1367  new filing.
 1368         (3) Service of process submitted through the department’s
 1369  secure online portal upon the Chief Financial Officer as the
 1370  insurer’s agent attorney pursuant to such an appointment shall
 1371  be the sole method of service of process upon an authorized
 1372  domestic, foreign, or alien insurer in this state.
 1373         Section 28. Subsection (1) of section 624.423, Florida
 1374  Statutes, is amended to read:
 1375         624.423 Serving process.—
 1376         (1) Service of process upon the Chief Financial Officer as
 1377  process agent of the insurer under s. 624.422 and s. 626.937
 1378  shall be made by serving a copy of the process upon the Chief
 1379  Financial Officer or upon her or his assistant, deputy, or other
 1380  person in charge of her or his office. Service may also be made
 1381  by mail or electronically as provided in s. 48.151(3) s. 48.151.
 1382  Upon receiving such service, the Chief Financial Officer shall
 1383  retain a record of the process copy and promptly notify and make
 1384  forward one copy of the process available through the
 1385  department’s secure online portal by registered or certified
 1386  mail or by other verifiable means, as provided under s.
 1387  624.307(9), to the person last designated by the insurer to
 1388  receive the same, as provided under s. 624.422(2). For purposes
 1389  of this section, records shall may be retained electronically as
 1390  paper or electronic copies.
 1391         Section 29. Paragraph (f) of subsection (3) and paragraph
 1392  (d) of subsection (4) of section 624.610, Florida Statutes, are
 1393  amended to read:
 1394         624.610 Reinsurance.—
 1395         (3)
 1396         (f) If the assuming insurer is not authorized or accredited
 1397  to transact insurance or reinsurance in this state pursuant to
 1398  paragraph (a) or paragraph (b), the credit permitted by
 1399  paragraph (c) or paragraph (d) must not be allowed unless the
 1400  assuming insurer agrees in the reinsurance agreements:
 1401         1.a. That in the event of the failure of the assuming
 1402  insurer to perform its obligations under the terms of the
 1403  reinsurance agreement, the assuming insurer, at the request of
 1404  the ceding insurer, shall submit to the jurisdiction of any
 1405  court of competent jurisdiction in any state of the United
 1406  States, will comply with all requirements necessary to give the
 1407  court jurisdiction, and will abide by the final decision of the
 1408  court or of any appellate court in the event of an appeal; and
 1409         b. To designate the Chief Financial Officer, pursuant to s.
 1410  48.151(3) s. 48.151, as its true and lawful agent attorney upon
 1411  whom may be served any lawful process in any action, suit, or
 1412  proceeding instituted by or on behalf of the ceding company.
 1413         2. This paragraph is not intended to conflict with or
 1414  override the obligation of the parties to a reinsurance
 1415  agreement to arbitrate their disputes, if this obligation is
 1416  created in the agreement.
 1417         (4) Credit must be allowed when the reinsurance is ceded to
 1418  an assuming insurer meeting the requirements of this subsection.
 1419         (d) The assuming insurer must, in a form specified by the
 1420  commission:
 1421         1. Agree to provide prompt written notice and explanation
 1422  to the office if the assuming insurer falls below the minimum
 1423  requirements set forth in paragraph (b) or paragraph (c), or if
 1424  any regulatory action is taken against it for serious
 1425  noncompliance with applicable law of any jurisdiction.
 1426         2. Consent in writing to the jurisdiction of the courts of
 1427  this state and to the designation of the Chief Financial
 1428  Officer, pursuant to s. 48.151(3) s. 48.151, as its true and
 1429  lawful agent attorney upon whom may be served any lawful process
 1430  in any action, suit, or proceeding instituted by or on behalf of
 1431  the ceding insurer. This subparagraph does not limit or alter in
 1432  any way the capacity of parties to a reinsurance agreement to
 1433  agree to an alternative dispute resolution mechanism, except to
 1434  the extent that such agreement is unenforceable under applicable
 1435  insolvency or delinquency laws.
 1436         3. Consent in writing to pay all final judgments, wherever
 1437  enforcement is sought, obtained by a ceding insurer or its legal
 1438  successor which have been declared enforceable in the
 1439  jurisdiction where the judgment was obtained.
 1440         4. Confirm in writing that it will include in each
 1441  reinsurance agreement a provision requiring the assuming insurer
 1442  to provide security in an amount equal to 100 percent of the
 1443  assuming insurer’s liabilities attributable to reinsurance ceded
 1444  pursuant to that agreement, if the assuming insurer resists
 1445  enforcement of a final judgment that is enforceable under the
 1446  law of the jurisdiction in which it was obtained or enforcement
 1447  of a properly enforceable arbitration award, whether obtained by
 1448  the ceding insurer or by its legal successor on behalf of its
 1449  resolution estate.
 1450         5. Confirm in writing that it is not presently
 1451  participating in any solvent scheme of arrangement which
 1452  involves this state’s ceding insurers, and agree to notify the
 1453  ceding insurer and the office and to provide security in an
 1454  amount equal to 100 percent of the assuming insurer’s
 1455  liabilities to the ceding insurer if the assuming insurer enters
 1456  into such a solvent scheme of arrangement. Such security must be
 1457  consistent with subsection (5) or as specified by commission
 1458  rule.
 1459         Section 30. Present subsections (12) through (21) of
 1460  section 626.015, Florida Statutes, are redesignated as
 1461  subsections (13) through (22), respectively, a new subsection
 1462  (12) is added to that section, and present subsection (20) of
 1463  that section is amended, to read:
 1464         626.015 Definitions.—As used in this part:
 1465         (12)“Licensing authority” means the respective
 1466  jurisdiction of the department or the office, as provided by
 1467  law.
 1468         (21)(20) “Unaffiliated insurance agent” means a licensed
 1469  insurance agent, except a limited lines agent, who is self
 1470  appointed and who practices as an independent consultant in the
 1471  business of analyzing or abstracting insurance policies,
 1472  providing insurance advice or counseling, or making specific
 1473  recommendations or comparisons of insurance products for a fee
 1474  established in advance by written contract signed by the
 1475  parties. An unaffiliated insurance agent may not be affiliated
 1476  with an insurer, insurer-appointed insurance agent, or insurance
 1477  agency contracted with or employing insurer-appointed insurance
 1478  agents. A licensed adjuster who is also an unaffiliated
 1479  insurance agent may obtain an adjuster appointment in order to
 1480  adjust claims while holding an unaffiliated appointment on the
 1481  agent license.
 1482         Section 31. Subsection (4) of section 626.171, Florida
 1483  Statutes, is amended to read:
 1484         626.171 Application for license as an agent, customer
 1485  representative, adjuster, service representative, or reinsurance
 1486  intermediary.—
 1487         (4) An applicant for a license issued by the department
 1488  under this chapter as an agent, customer representative,
 1489  adjuster, service representative, or reinsurance intermediary
 1490  must submit a set of the individual applicant’s fingerprints,
 1491  or, if the applicant is not an individual, a set of the
 1492  fingerprints of the sole proprietor, majority owner, partners,
 1493  officers, and directors, to the department and must pay the
 1494  fingerprint processing fee set forth in s. 624.501. Fingerprints
 1495  must be processed in accordance with s. 624.34 and used to
 1496  investigate the applicant’s qualifications pursuant to s.
 1497  626.201. The fingerprints must be taken by a law enforcement
 1498  agency, designated examination center, or other department
 1499  approved entity. The department shall require all designated
 1500  examination centers to have fingerprinting equipment and to take
 1501  fingerprints from any applicant or prospective applicant who
 1502  pays the applicable fee. The department may not approve an
 1503  application for licensure as an agent, customer service
 1504  representative, adjuster, service representative, or reinsurance
 1505  intermediary if fingerprints have not been submitted.
 1506         Section 32. Paragraph (f) of subsection (2) of section
 1507  626.172, Florida Statutes, is amended to read:
 1508         626.172 Application for insurance agency license.—
 1509         (2) An application for an insurance agency license must be
 1510  signed by an individual required to be listed in the application
 1511  under paragraph (a). An insurance agency may permit a third
 1512  party to complete, submit, and sign an application on the
 1513  insurance agency’s behalf; however, the insurance agency is
 1514  responsible for ensuring that the information on the application
 1515  is true and correct and is accountable for any misstatements or
 1516  misrepresentations. The application for an insurance agency
 1517  license must include:
 1518         (f) The fingerprints submitted in accordance with s.
 1519  626.171(4) of each of the following:
 1520         1. A sole proprietor;
 1521         2. Each individual required to be listed in the application
 1522  under paragraph (a); and
 1523         3. Each individual who directs or participates in the
 1524  management or control of an incorporated agency whose shares are
 1525  not traded on a securities exchange.
 1526  
 1527  Fingerprints must be taken by a law enforcement agency or other
 1528  entity approved by the department and must be accompanied by the
 1529  fingerprint processing fee specified in s. 624.501. Fingerprints
 1530  must be processed in accordance with s. 624.34. However,
 1531  Fingerprints need not be filed for an individual who is
 1532  currently licensed and appointed under this chapter. This
 1533  paragraph does not apply to corporations whose voting shares are
 1534  traded on a securities exchange.
 1535         Section 33. Section 626.173, Florida Statutes, is created
 1536  to read:
 1537         626.173Insurance agency closure; cancellation of
 1538  licenses.—
 1539         (1)If a licensed insurance agency permanently ceases the
 1540  transaction of insurance or ceases the transaction of insurance
 1541  for more than 30 days, the agent in charge, the director of the
 1542  agency, or other officer listed on the original application for
 1543  licensure must, within 35 days after the agency first ceases the
 1544  transaction of insurance, do all of the following:
 1545         (a)Cancel the insurance agency’s license by completing and
 1546  submitting a form prescribed by the department to notify the
 1547  department of the cancellation of the license.
 1548         (b)Notify all insurers by which the agency or agent in
 1549  charge is appointed of the agency’s cessation of operations, the
 1550  date on which operations ceased, the identity of any agency or
 1551  agent to which the agency’s current book of business has been
 1552  transferred, and the method by which agency records may be
 1553  obtained during the time periods specified in ss. 626.561 and
 1554  626.748.
 1555         (c)Notify all policyholders currently insured by a policy
 1556  written, produced, or serviced by the agency of the agency’s
 1557  cessation of operations; the date on which operations ceased;
 1558  and the identity of the agency or agent to which the agency’s
 1559  current book of business has been transferred or, if no transfer
 1560  has occurred, a statement directing the policyholder to contact
 1561  the insurance company for assistance in locating a licensed
 1562  agent to service the policy.
 1563         (d)Notify all premium finance companies through which
 1564  active policies are financed of the agency’s cessation of
 1565  operations, the date on which operations ceased, and the
 1566  identity of the agency or agent to which the agency’s current
 1567  book of business has been transferred.
 1568         (e)Ensure that all funds held in a fiduciary capacity are
 1569  properly distributed to the rightful owners.
 1570         (2)(a)The department may, in a proceeding initiated
 1571  pursuant to chapter 120, impose an administrative fine against
 1572  the agent in charge or director or officer of the agency found
 1573  in the proceeding to have violated any provision of this
 1574  section. A proceeding may not be initiated and a fine may not
 1575  accrue until after the person has been notified in writing of
 1576  the nature of the violation, has been afforded 10 business days
 1577  to correct the violation, and has failed to do so.
 1578         (b)A fine imposed under this subsection may not exceed the
 1579  amounts specified in s. 626.681 per violation.
 1580         (c)The department may, in addition to the imposition of an
 1581  administrative fine under this subsection, suspend or revoke the
 1582  license of a licensee fined under this subsection.
 1583         (d)In imposing any administrative penalty or remedy
 1584  provided under this subsection, the department shall take into
 1585  account the appropriateness of the penalty with respect to the
 1586  size of the financial resources and the good faith of the person
 1587  charged, the gravity of the violation, the history of previous
 1588  violations, and other matters as justice may require.
 1589         Section 34. Subsection (3) of section 626.201, Florida
 1590  Statutes, is amended, and subsection (4) is added to that
 1591  section, to read:
 1592         626.201 Investigation.—
 1593         (3) An inquiry or investigation of the applicant’s
 1594  qualifications, character, experience, background, and fitness
 1595  must include submission of the applicant’s fingerprints, in
 1596  accordance with s. 626.171(4), to the Department of Law
 1597  Enforcement and the Federal Bureau of Investigation and
 1598  consideration of any state criminal records, federal criminal
 1599  records, or local criminal records obtained from these agencies
 1600  or from local law enforcement agencies.
 1601         (4)The expiration, nonrenewal, or surrender of a license
 1602  under this chapter does not eliminate jurisdiction of the
 1603  licensing authority to investigate and prosecute for a violation
 1604  committed by the licensee while licensed under this chapter. The
 1605  prosecution of any matter may be initiated or continued
 1606  notwithstanding the withdrawal of a complaint.
 1607         Section 35. Section 626.202, Florida Statutes, is amended
 1608  to read:
 1609         626.202 Fingerprinting requirements.—
 1610         (1) The requirements for completion and submission of
 1611  fingerprints under this chapter in accordance with s. 626.171(4)
 1612  are deemed to be met when an individual currently licensed under
 1613  this chapter seeks additional licensure and has previously
 1614  submitted fingerprints to the department within the past 48
 1615  months. However, the department may require the individual to
 1616  file fingerprints if it has reason to believe that an applicant
 1617  or licensee has been found guilty of, or pleaded guilty or nolo
 1618  contendere to, a felony or a crime related to the business of
 1619  insurance in this state or any other state or jurisdiction.
 1620         (2) If there is a change in ownership or control of any
 1621  entity licensed under this chapter, or if a new partner,
 1622  officer, or director is employed or appointed, a set of
 1623  fingerprints of the new owner, partner, officer, or director
 1624  must be filed with the department or office within 30 days after
 1625  the change. The acquisition of 10 percent or more of the voting
 1626  securities of a licensed entity is considered a change of
 1627  ownership or control. The fingerprints must be submitted in
 1628  accordance with s. 626.171(4) taken by a law enforcement agency
 1629  or other department-approved entity and be accompanied by the
 1630  fingerprint processing fee in s. 624.501.
 1631         Section 36. Paragraph (j) of subsection (2) of section
 1632  626.221, Florida Statutes, is amended to read:
 1633         626.221 Examination requirement; exemptions.—
 1634         (2) However, an examination is not necessary for any of the
 1635  following:
 1636         (j) An applicant for license as an all-lines adjuster who
 1637  has the designation of Accredited Claims Adjuster (ACA) from a
 1638  regionally accredited postsecondary institution in this state,
 1639  Certified All Lines Adjuster (CALA) from Kaplan Financial
 1640  Education, Associate in Claims (AIC) from the Insurance
 1641  Institute of America, Professional Claims Adjuster (PCA) from
 1642  the Professional Career Institute, Professional Property
 1643  Insurance Adjuster (PPIA) from the HurriClaim Training Academy,
 1644  Certified Adjuster (CA) from ALL LINES Training, Certified
 1645  Claims Adjuster (CCA) from AE21 Incorporated, Claims Adjuster
 1646  Certified Professional (CACP) from WebCE, Inc., Accredited
 1647  Insurance Claims Specialist (AICS) from Encore Claim Services,
 1648  or Universal Claims Certification (UCC) from Claims and
 1649  Litigation Management Alliance (CLM) whose curriculum has been
 1650  approved by the department and which includes comprehensive
 1651  analysis of basic property and casualty lines of insurance and
 1652  testing at least equal to that of standard department testing
 1653  for the all-lines adjuster license. The department shall adopt
 1654  rules establishing standards for the approval of curriculum.
 1655         Section 37. Subsection (6) of section 626.311, Florida
 1656  Statutes, is amended to read:
 1657         626.311 Scope of license.—
 1658         (6) An agent who appoints his or her license as an
 1659  unaffiliated insurance agent may not hold an appointment from an
 1660  insurer for any license he or she holds, with the exception of
 1661  an adjuster license; transact, solicit, or service an insurance
 1662  contract on behalf of an insurer; interfere with commissions
 1663  received or to be received by an insurer-appointed insurance
 1664  agent or an insurance agency contracted with or employing
 1665  insurer-appointed insurance agents; or receive compensation or
 1666  any other thing of value from an insurer, an insurer-appointed
 1667  insurance agent, or an insurance agency contracted with or
 1668  employing insurer-appointed insurance agents for any transaction
 1669  or referral occurring after the date of appointment as an
 1670  unaffiliated insurance agent. An unaffiliated insurance agent
 1671  may continue to receive commissions on sales that occurred
 1672  before the date of appointment as an unaffiliated insurance
 1673  agent if the receipt of such commissions is disclosed when
 1674  making recommendations or evaluating products for a client that
 1675  involve products of the entity from which the commissions are
 1676  received. An adjuster who holds an adjuster license and who is
 1677  also an unaffiliated insurance agent may obtain an adjuster
 1678  appointment while maintaining his or her unaffiliated insurance
 1679  agent appointment and may adjust claims and receive compensation
 1680  in accordance with the authority granted by the adjuster license
 1681  and appointment.
 1682         Section 38. Paragraph (h) of subsection (1) of section
 1683  626.321, Florida Statutes, is amended to read:
 1684         626.321 Limited licenses and registration.—
 1685         (1) The department shall issue to a qualified applicant a
 1686  license as agent authorized to transact a limited class of
 1687  business in any of the following categories of limited lines
 1688  insurance:
 1689         (h) Portable electronics insurance.—License for property
 1690  insurance or inland marine insurance that covers only loss,
 1691  theft, mechanical failure, malfunction, or damage for portable
 1692  electronics.
 1693         1. The license may be issued only to:
 1694         a. Employees or authorized representatives of a licensed
 1695  general lines agent; or
 1696         b. The lead business location of a retail vendor that sells
 1697  portable electronics insurance. The lead business location must
 1698  have a contractual relationship with a general lines agent.
 1699         2. Employees or authorized representatives of a licensee
 1700  under subparagraph 1. may sell or offer for sale portable
 1701  electronics coverage without being subject to licensure as an
 1702  insurance agent if:
 1703         a. Such insurance is sold or offered for sale at a licensed
 1704  location or at one of the licensee’s branch locations if the
 1705  branch location is appointed by the licensed lead business
 1706  location or its appointing insurers;
 1707         b. The insurer issuing the insurance directly supervises or
 1708  appoints a general lines agent to supervise the sale of such
 1709  insurance, including the development of a training program for
 1710  the employees and authorized representatives of vendors that are
 1711  directly engaged in the activity of selling or offering the
 1712  insurance; and
 1713         c. At each location where the insurance is offered,
 1714  brochures or other written materials that provide the
 1715  information required by this subparagraph are made available to
 1716  all prospective customers. The brochures or written materials
 1717  may include information regarding portable electronics
 1718  insurance, service warranty agreements, or other incidental
 1719  services or benefits offered by a licensee.
 1720         3. Individuals not licensed to sell portable electronics
 1721  insurance may not be paid commissions based on the sale of such
 1722  coverage. However, a licensee who uses a compensation plan for
 1723  employees and authorized representatives which includes
 1724  supplemental compensation for the sale of noninsurance products,
 1725  in addition to a regular salary or hourly wages, may include
 1726  incidental compensation for the sale of portable electronics
 1727  insurance as a component of the overall compensation plan.
 1728         4. Brochures or other written materials related to portable
 1729  electronics insurance must:
 1730         a. Disclose that such insurance may duplicate coverage
 1731  already provided by a customer’s homeowners insurance policy,
 1732  renters insurance policy, or other source of coverage;
 1733         b. State that enrollment in insurance coverage is not
 1734  required in order to purchase or lease portable electronics or
 1735  services;
 1736         c. Summarize the material terms of the insurance coverage,
 1737  including the identity of the insurer, the identity of the
 1738  supervising entity, the amount of any applicable deductible and
 1739  how it is to be paid, the benefits of coverage, and key terms
 1740  and conditions of coverage, such as whether portable electronics
 1741  may be repaired or replaced with similar make and model
 1742  reconditioned or nonoriginal manufacturer parts or equipment;
 1743         d. Summarize the process for filing a claim, including a
 1744  description of how to return portable electronics and the
 1745  maximum fee applicable if the customer fails to comply with
 1746  equipment return requirements; and
 1747         e. State that an enrolled customer may cancel coverage at
 1748  any time and that the person paying the premium will receive a
 1749  refund of any unearned premium.
 1750         5. A licensed and appointed general lines agent is not
 1751  required to obtain a portable electronics insurance license to
 1752  offer or sell portable electronics insurance at locations
 1753  already licensed as an insurance agency, but may apply for a
 1754  portable electronics insurance license for branch locations not
 1755  otherwise licensed to sell insurance.
 1756         6. A portable electronics license authorizes the sale of
 1757  individual policies or certificates under a group or master
 1758  insurance policy. The license also authorizes the sale of
 1759  service warranty agreements covering only portable electronics
 1760  to the same extent as if licensed under s. 634.419 or s.
 1761  634.420.
 1762         7. A licensee may bill and collect the premium for the
 1763  purchase of portable electronics insurance provided that:
 1764         a. If the insurance is included with the purchase or lease
 1765  of portable electronics or related services, the licensee
 1766  clearly and conspicuously discloses that insurance coverage is
 1767  included with the purchase. Disclosure of the stand-alone cost
 1768  of the premium for same or similar insurance must be made on the
 1769  customer’s bill and in any marketing materials made available at
 1770  the point of sale. If the insurance is not included, the charge
 1771  to the customer for the insurance must be separately itemized on
 1772  the customer’s bill.
 1773         b. Premiums are incidental to other fees collected, are
 1774  maintained in a manner that is readily identifiable, and are
 1775  accounted for and remitted to the insurer or supervising entity
 1776  within 60 days of receipt. Licensees are not required to
 1777  maintain such funds in a segregated account.
 1778         c. All funds received by a licensee from an enrolled
 1779  customer for the sale of the insurance are considered funds held
 1780  in trust by the licensee in a fiduciary capacity for the benefit
 1781  of the insurer. Licensees may receive compensation for billing
 1782  and collection services.
 1783         8. Notwithstanding any other provision of law, the terms
 1784  for the termination or modification of coverage under a policy
 1785  of portable electronics insurance are those set forth in the
 1786  policy.
 1787         9. Notice or correspondence required by the policy, or
 1788  otherwise required by law, may be provided by electronic means
 1789  if the insurer or licensee maintains proof that the notice or
 1790  correspondence was sent. Such notice or correspondence may be
 1791  sent on behalf of the insurer or licensee by the general lines
 1792  agent appointed by the insurer to supervise the administration
 1793  of the program. For purposes of this subparagraph, an enrolled
 1794  customer’s provision of an electronic mail address to the
 1795  insurer or licensee is deemed to be consent to receive notices
 1796  and correspondence by electronic means if a conspicuously
 1797  located disclosure is provided to the customer indicating the
 1798  same.
 1799         10. The provisions of this chapter requiring submission of
 1800  fingerprints requirements in s. 626.171(4) do not apply to
 1801  licenses issued to qualified entities under this paragraph.
 1802         11. A branch location that sells portable electronics
 1803  insurance may, in lieu of obtaining an appointment from an
 1804  insurer or warranty association, obtain a single appointment
 1805  from the associated lead business location licensee and pay the
 1806  prescribed appointment fee under s. 624.501 if the lead business
 1807  location has a single appointment from each insurer or warranty
 1808  association represented and such appointment applies to the lead
 1809  business location and all of its branch locations. Branch
 1810  location appointments shall be renewed 24 months after the
 1811  initial appointment date of the lead business location and every
 1812  24 months thereafter. Notwithstanding s. 624.501, the renewal
 1813  fee applicable to such branch location appointments is $30 per
 1814  appointment.
 1815         12. For purposes of this paragraph:
 1816         a. “Branch location” means any physical location in this
 1817  state at which a licensee offers its products or services for
 1818  sale.
 1819         b. “Portable electronics” means personal, self-contained,
 1820  easily carried by an individual, battery-operated electronic
 1821  communication, viewing, listening, recording, gaming, computing
 1822  or global positioning devices, including cell or satellite
 1823  phones, pagers, personal global positioning satellite units,
 1824  portable computers, portable audio listening, video viewing or
 1825  recording devices, digital cameras, video camcorders, portable
 1826  gaming systems, docking stations, automatic answering devices,
 1827  and other similar devices and their accessories, and service
 1828  related to the use of such devices.
 1829         c. “Portable electronics transaction” means the sale or
 1830  lease of portable electronics or a related service, including
 1831  portable electronics insurance.
 1832         Section 39. Subsection (5) of section 626.601, Florida
 1833  Statutes, is amended to read:
 1834         626.601 Improper conduct; inquiry; fingerprinting.—
 1835         (5) If the department or office, after investigation, has
 1836  reason to believe that an individual may have been found guilty
 1837  of or pleaded guilty or nolo contendere to a felony or a crime
 1838  related to the business of insurance in this or any other state
 1839  or jurisdiction, the department or office may require the
 1840  individual to file with the department or office a complete set
 1841  of his or her fingerprints, in accordance with s. 626.171(4),
 1842  which shall be accompanied by the fingerprint processing fee set
 1843  forth in s. 624.501. The fingerprints shall be taken by an
 1844  authorized law enforcement agency or other department-approved
 1845  entity.
 1846         Section 40. Subsection (2) of section 626.7845, Florida
 1847  Statutes, is amended to read:
 1848         626.7845 Prohibition against unlicensed transaction of life
 1849  insurance.—
 1850         (2) Except as provided in s. 626.112(6), with respect to
 1851  any line of authority specified in s. 626.015(13) s.
 1852  626.015(12), an individual may not, unless licensed as a life
 1853  agent:
 1854         (a) Solicit insurance or annuities or procure applications;
 1855         (b) In this state, engage or hold himself or herself out as
 1856  engaging in the business of analyzing or abstracting insurance
 1857  policies or of counseling or advising or giving opinions to
 1858  persons relative to insurance or insurance contracts, unless the
 1859  individual is:
 1860         1. A consulting actuary advising insurers;
 1861         2. An employee of a labor union, association, employer, or
 1862  other business entity, or the subsidiaries and affiliates of
 1863  each, who counsels and advises such entity or entities relative
 1864  to their interests and those of their members or employees under
 1865  insurance benefit plans; or
 1866         3. A trustee advising a settlor, a beneficiary, or a person
 1867  regarding his or her interests in a trust, relative to insurance
 1868  benefit plans; or
 1869         (c) In this state, from this state, or with a resident of
 1870  this state, offer or attempt to negotiate on behalf of another
 1871  person a viatical settlement contract as defined in s. 626.9911.
 1872         Section 41. Paragraph (d) of subsection (2) of section
 1873  626.8411, Florida Statutes, is amended, and paragraph (f) is
 1874  added to subsection (1) of that section, to read:
 1875         626.8411 Application of Florida Insurance Code provisions
 1876  to title insurance agents or agencies.—
 1877         (1) The following provisions applicable to general lines
 1878  agents or agencies also apply to title insurance agents or
 1879  agencies:
 1880         (f)Section 626.172(2)(f), relating to fingerprints.
 1881         (2) The following provisions of part I do not apply to
 1882  title insurance agents or title insurance agencies:
 1883         (d) Section 626.172, except for paragraph (2)(f) of that
 1884  section, relating to agent in full-time charge.
 1885         Section 42. Paragraph (b) of subsection (1) of section
 1886  626.8412, Florida Statutes, is amended to read:
 1887         626.8412 License and appointments required.—
 1888         (1) Except as otherwise provided in this part:
 1889         (b) A title insurance agent may not sell a title insurance
 1890  policy issued by an insurer for which the agent and the agency
 1891  do does not hold a current appointment.
 1892         Section 43. Paragraph (a) of subsection (3) of section
 1893  626.8417, Florida Statutes, is amended to read:
 1894         626.8417 Title insurance agent licensure; exemptions.—
 1895         (3) The department may not grant or issue a license as a
 1896  title insurance agent to an individual who is found by the
 1897  department to be untrustworthy or incompetent, who does not meet
 1898  the qualifications for examination specified in s. 626.8414, or
 1899  who does not meet the following qualifications:
 1900         (a) Within the 4 years immediately preceding the date of
 1901  the application for license, the applicant must have completed a
 1902  40-hour classroom course in title insurance, 3 hours of which
 1903  are on the subject matter of ethics, as approved by the
 1904  department, or must have had at least 12 months of experience in
 1905  responsible title insurance duties, under the supervision of a
 1906  licensed title insurance agent, title insurer, or attorney while
 1907  working in the title insurance business as a substantially full
 1908  time, bona fide employee of a title insurance agency, title
 1909  insurance agent, title insurer, or attorney who conducts real
 1910  estate closing transactions and issues title insurance policies
 1911  but who is exempt from licensure under subsection (4). If an
 1912  applicant’s qualifications are based upon the periods of
 1913  employment at responsible title insurance duties, the applicant
 1914  must submit, with the license application, an affidavit of the
 1915  applicant and of the employer affirming the period of such
 1916  employment, that the employment was substantially full time, and
 1917  giving a brief abstract of the nature of the duties performed by
 1918  the applicant.
 1919         Section 44. Section 626.8421, Florida Statutes, is amended
 1920  to read:
 1921         626.8421 Number of appointments permitted or required.—A
 1922  title agent and a title agency shall be required to have a
 1923  separate appointment as to each insurer by which they are he or
 1924  she is appointed as agents agent. As a part of each appointment
 1925  there shall be a certified statement or affidavit of an
 1926  appropriate officer or official of the appointing insurer
 1927  stating that to the best of the insurer’s knowledge and belief
 1928  the applicant, or its principals in the case of a corporation or
 1929  other legal entity, has met the requirements of s. 626.8417.
 1930         Section 45. Subsections (1) and (2) of section 626.843,
 1931  Florida Statutes, are amended to read:
 1932         626.843 Renewal, continuation, reinstatement, termination
 1933  of title insurance agent’s and title insurance agency’s
 1934  appointments appointment.—
 1935         (1) Appointments the appointment of a title insurance agent
 1936  and a title insurance agency shall continue in force until
 1937  suspended, revoked, or otherwise terminated, but subject to a
 1938  renewed request filed by the insurer every 24 months after the
 1939  original issue dates date of the appointments appointment,
 1940  accompanied by payments payment of the renewal appointment fees
 1941  fee and taxes as prescribed in s. 624.501.
 1942         (2) Title insurance agent and title insurance agency
 1943  appointments shall be renewed pursuant to s. 626.381 for
 1944  insurance representatives in general.
 1945         Section 46. Subsection (1) of section 626.8433, Florida
 1946  Statutes, is amended to read:
 1947         626.8433 Filing of reasons for terminating appointment of
 1948  title insurance agent and title insurance agency; confidential
 1949  information.—
 1950         (1) Any title insurer that is terminating the appointment
 1951  of a title insurance agent or title insurance agency, whether
 1952  such termination is by direct action of the appointing title
 1953  insurer or by failure to renew or continue the appointment as
 1954  provided, shall file with the department a statement of the
 1955  reasons, if any, for, and the facts relative to, such
 1956  termination.
 1957         Section 47. Section 626.8447, Florida Statutes, is amended
 1958  to read:
 1959         626.8447 Effect of suspension or revocation upon other
 1960  licensees, appointees.—In case of the suspension or revocation
 1961  of the license and appointment of any title insurance agent or
 1962  title insurance agency, the licenses and appointments of all
 1963  other title insurance agents who knowingly were parties to the
 1964  act that which formed the ground for such suspension or
 1965  revocation may likewise be suspended or revoked for the same
 1966  period as that of the offending title insurance agent or title
 1967  insurance agency, but such suspension or revocation does shall
 1968  not prevent any title insurance agent, except the one whose
 1969  license and appointment was first suspended or revoked, from
 1970  being issued an appointment for some other title insurer.
 1971         Section 48. Subsection (10) of section 626.854, Florida
 1972  Statutes, is amended to read:
 1973         626.854 “Public adjuster” defined; prohibitions.—The
 1974  Legislature finds that it is necessary for the protection of the
 1975  public to regulate public insurance adjusters and to prevent the
 1976  unauthorized practice of law.
 1977         (10)(a) If a public adjuster enters into a contract with an
 1978  insured or claimant to reopen a claim or file a supplemental
 1979  claim that seeks additional payments for a claim that has been
 1980  previously paid in part or in full or settled by the insurer,
 1981  the public adjuster may not charge, agree to, or accept from any
 1982  source compensation, payment, commission, fee, or any other
 1983  thing of value based on a previous settlement or previous claim
 1984  payments by the insurer for the same cause of loss. The charge,
 1985  compensation, payment, commission, fee, or any other thing of
 1986  value must be based only on the recovery allocated to the
 1987  insured for covered damages, exclusive of attorney fees and
 1988  costs, claim payments or settlement obtained through the work of
 1989  the public adjuster after entering into the contract with the
 1990  insured or claimant. Compensation for the reopened or
 1991  supplemental claim may not exceed 20 percent of the reopened or
 1992  supplemental claim payment. In no event shall the contracts
 1993  described in this paragraph exceed the limitations in paragraph
 1994  (b).
 1995         (b) A public adjuster may not charge, agree to, or accept
 1996  from any source compensation, payment, commission, fee, or any
 1997  other thing of value in excess of:
 1998         1. Ten percent of the amount of insurance recovery
 1999  allocated to the insured for covered damages, exclusive of
 2000  attorney fees and costs, claim payments made by the insurer for
 2001  claims based on events that are the subject of a declaration of
 2002  a state of emergency by the Governor. This provision applies to
 2003  claims made during the year after the declaration of emergency.
 2004  After that year, the limitations in subparagraph 2. apply.
 2005         2. Twenty percent of the amount of insurance recovery
 2006  allocated to the insured for covered damages, exclusive of
 2007  attorney fees and costs, claim payments made by the insurer for
 2008  claims that are not based on events that are the subject of a
 2009  declaration of a state of emergency by the Governor.
 2010         (c) Insurance claim payments made by the insurer do not
 2011  include policy deductibles, and public adjuster compensation may
 2012  not be based on the deductible portion of a claim.
 2013         (d) Public adjuster compensation may not be based on
 2014  amounts attributable to additional living expenses unless such
 2015  compensation is affirmatively agreed to in a separate agreement
 2016  that includes a disclosure in substantially the following form:
 2017  “I agree to retain and compensate the public adjuster for
 2018  adjusting my additional living expenses and securing payment
 2019  from my insurer for amounts attributable to additional living
 2020  expenses payable under the policy issued on my (home/mobile
 2021  home/condominium unit).”
 2022         (e)Public adjuster compensation may not be increased based
 2023  on a claim being resolved by litigation.
 2024         (f) Any maneuver, shift, or device through which the limits
 2025  on compensation set forth in this subsection are exceeded is a
 2026  violation of this chapter punishable as provided under s.
 2027  626.8698.
 2028         Section 49. Section 626.8561, Florida Statutes, is amended
 2029  to read:
 2030         626.8561 “Public adjuster apprentice” defined.—The term
 2031  “public adjuster apprentice” means a person licensed as an all
 2032  lines adjuster who:
 2033         (1) Is appointed and employed or contracted by a public
 2034  adjuster or a public adjusting firm;
 2035         (2) Assists the public adjuster or public adjusting firm in
 2036  ascertaining and determining the amount of any claim, loss, or
 2037  damage payable under an insurance contract, or who undertakes to
 2038  effect settlement of such claim, loss, or damage; and
 2039         (3) Satisfies the requirements of s. 626.8651.
 2040         Section 50. Paragraph (e) of subsection (1) and subsection
 2041  (2) of section 626.865, Florida Statutes, are amended to read:
 2042         626.865 Public adjuster’s qualifications, bond.—
 2043         (1) The department shall issue a license to an applicant
 2044  for a public adjuster’s license upon determining that the
 2045  applicant has paid the applicable fees specified in s. 624.501
 2046  and possesses the following qualifications:
 2047         (e) Has been licensed and appointed in this state as a
 2048  nonresident public adjuster on a continual basis for the
 2049  previous 6 months, or has been licensed as an all-lines
 2050  adjuster, and has been appointed on a continual basis for the
 2051  previous 6 months as a public adjuster apprentice under s.
 2052  626.8561, as an independent adjuster under s. 626.855, or as a
 2053  company employee adjuster under s. 626.856.
 2054         (2) At the time of application for license as a public
 2055  adjuster, the applicant shall file with the department a bond
 2056  executed and issued by a surety insurer authorized to transact
 2057  such business in this state, in the amount of $50,000,
 2058  conditioned for the faithful performance of his or her duties as
 2059  a public adjuster under the license for which the applicant has
 2060  applied, and thereafter maintain the bond unimpaired throughout
 2061  the existence of the license and for at least 1 year after
 2062  termination of the license.
 2063         (a) The bond must shall be in favor of the department and
 2064  must shall specifically authorize recovery by the department of
 2065  the damages sustained in case the licensee is guilty of fraud or
 2066  unfair practices in connection with his or her business as
 2067  public adjuster.
 2068         (b)The bond must remain in effect for 1 year after the
 2069  expiration or termination of the license.
 2070         (c) The aggregate liability of the surety for all such
 2071  damages may not shall in no event exceed the amount of the bond.
 2072  The Such bond may shall not be terminated unless at least 30
 2073  days’ written notice is given to the licensee and filed with the
 2074  department.
 2075         Section 51. Paragraph (a) of subsection (1) and subsection
 2076  (3) of section 626.8651, Florida Statutes, are amended to read:
 2077         626.8651 Public adjuster apprentice appointment;
 2078  qualifications.—
 2079         (1)(a) The department shall issue an appointment as a
 2080  public adjuster apprentice to a licensee who:
 2081         1. Is licensed as an all-lines adjuster under s. 626.866;
 2082         2. Has filed with the department a bond executed and issued
 2083  by a surety insurer that is authorized to transact such business
 2084  in this state in the amount of $50,000, which is conditioned
 2085  upon the faithful performance of his or her duties as a public
 2086  adjuster apprentice; and
 2087         3. Maintains such bond unimpaired throughout the existence
 2088  of the appointment. The bond must remain in effect for 1 year
 2089  after the expiration or termination of the license and for at
 2090  least 1 year after termination of the appointment.
 2091         (3) A public adjuster apprentice has the same authority as
 2092  the licensed public adjuster or public adjusting firm that
 2093  employs the apprentice except that an apprentice may not execute
 2094  contracts for the services of a public adjuster or public
 2095  adjusting firm. An individual may not be, act as, or hold
 2096  himself or herself out to be a public adjuster apprentice unless
 2097  the individual is licensed as an all-lines adjuster and holds a
 2098  current appointment by a licensed public all-lines adjuster or a
 2099  public adjusting firm that has designated with the department a
 2100  primary employs a licensed public adjuster as required by s.
 2101  626.8695.
 2102         Section 52. Section 626.8696, Florida Statutes, is amended
 2103  to read:
 2104         626.8696 Application for adjusting firm license.—
 2105         (1) The application for an adjusting firm license must
 2106  include:
 2107         (a) The name of each majority owner, partner, officer, and
 2108  director of the adjusting firm.
 2109         (b) The resident address of each person required to be
 2110  listed in the application under paragraph (a).
 2111         (c) The name of the adjusting firm and its principal
 2112  business address.
 2113         (d) The location of each adjusting firm office and the name
 2114  under which each office conducts or will conduct business.
 2115         (e) The name and license number of the designated primary
 2116  adjuster for each adjusting firm location as required in s.
 2117  626.8695.
 2118         (f)The fingerprints of each individual required to be
 2119  listed in the application under paragraph (a), filed in
 2120  accordance with s. 626.171(4). However, fingerprints need not be
 2121  filed for an individual who is currently licensed and appointed
 2122  under this chapter.
 2123         (g) Any additional information that the department
 2124  requires.
 2125         (2) An application for an adjusting firm license must be
 2126  signed by one of the individuals required to be listed in the
 2127  application under paragraph (1)(a) each owner of the firm. If
 2128  the firm is incorporated, the application must be signed by the
 2129  president and secretary of the corporation.
 2130         (3)Each application must be accompanied by payment of any
 2131  applicable fee as prescribed in s. 624.501.
 2132         (4)License fees are not refundable.
 2133         (5)An adjusting firm required to be licensed pursuant to
 2134  s. 626.8695 must remain so licensed for a period of 3 years from
 2135  the date of licensure, unless the license is suspended or
 2136  revoked. The department may suspend or revoke the adjusting
 2137  firm’s authority to do business for activities occurring during
 2138  the time the firm is licensed, regardless of whether the
 2139  licensing period has terminated.
 2140         Section 53. Subsection (3) of section 626.8732, Florida
 2141  Statutes, is amended to read:
 2142         626.8732 Nonresident public adjuster’s qualifications,
 2143  bond.—
 2144         (3) At the time of application for license as a nonresident
 2145  public adjuster, the applicant shall file with the department a
 2146  bond executed and issued by a surety insurer authorized to
 2147  transact surety business in this state, in the amount of
 2148  $50,000, conditioned for the faithful performance of his or her
 2149  duties as a nonresident public adjuster under the license
 2150  applied for. Thereafter, the applicant shall maintain the bond
 2151  unimpaired throughout the existence of the license and for 1
 2152  year after the expiration or termination of the license.
 2153         (a) The bond must be in favor of the department and must
 2154  specifically authorize recovery by the department of the damages
 2155  sustained if the licensee commits fraud or unfair practices in
 2156  connection with his or her business as nonresident public
 2157  adjuster.
 2158         (b) The aggregate liability of the surety for all the
 2159  damages may not exceed the amount of the bond. The bond may not
 2160  be terminated unless at least 30 days’ written notice is given
 2161  to the licensee and filed with the department.
 2162         Section 54. Paragraph (a) of subsection (2) of section
 2163  626.8734, Florida Statutes, is amended to read:
 2164         626.8734 Nonresident all-lines adjuster license
 2165  qualifications.—
 2166         (2) The applicant must furnish the following with his or
 2167  her application:
 2168         (a) A complete set of his or her fingerprints in accordance
 2169  with s. 626.171(4). The applicant’s fingerprints must be
 2170  certified by an authorized law enforcement officer.
 2171         Section 55. Section 626.906, Florida Statutes, is amended
 2172  to read:
 2173         626.906 Acts constituting Chief Financial Officer as
 2174  process agent.—Any of the following acts in this state, effected
 2175  by mail or otherwise, by an unauthorized foreign insurer, alien
 2176  insurer, or person representing or aiding such an insurer is
 2177  equivalent to and shall constitute an appointment by such
 2178  insurer or person representing or aiding such insurer of the
 2179  Chief Financial Officer to be its true and lawful agent
 2180  attorney, upon whom may be served all lawful process in any
 2181  action, suit, or proceeding instituted by or on behalf of an
 2182  insured or beneficiary, arising out of any such contract of
 2183  insurance; and any such act shall be signification of the
 2184  insurer’s or person’s agreement that such service of process is
 2185  of the same legal force and validity as personal service of
 2186  process in this state upon such insurer or person representing
 2187  or aiding such insurer:
 2188         (1) The issuance or delivery of contracts of insurance to
 2189  residents of this state or to corporations authorized to do
 2190  business therein;
 2191         (2) The solicitation of applications for such contracts;
 2192         (3) The collection of premiums, membership fees,
 2193  assessments, or other considerations for such contracts; or
 2194         (4) Any other transaction of insurance.
 2195         Section 56. Subsection (4) of section 626.912, Florida
 2196  Statutes, is amended to read:
 2197         626.912 Exemptions from ss. 626.904-626.911.—The provisions
 2198  of ss. 626.904-626.911 do not apply to any action, suit, or
 2199  proceeding against any unauthorized foreign insurer, alien
 2200  insurer, or person representing or aiding such an insurer
 2201  arising out of any contract of insurance:
 2202         (4) Issued under and in accordance with the Surplus Lines
 2203  Law, when such insurer or person representing or aiding such
 2204  insurer enters a general appearance or when such contract of
 2205  insurance contains a provision designating the Chief Financial
 2206  Officer or designating a Florida resident agent to be the true
 2207  and lawful agent attorney of such unauthorized insurer or person
 2208  representing or aiding such insurer upon whom may be served all
 2209  lawful process in any action, suit, or proceeding instituted by
 2210  or on behalf of an insured or person representing or aiding such
 2211  insurer or beneficiary arising out of any such contract of
 2212  insurance; and service of process effected on such Chief
 2213  Financial Officer or such resident agent shall be deemed to
 2214  confer complete jurisdiction over such unauthorized insurer or
 2215  person representing or aiding such insurer in such action.
 2216         Section 57. Subsections (3) and (4) of section 626.937,
 2217  Florida Statutes, are amended to read:
 2218         626.937 Actions against insurer; service of process.—
 2219         (3) Each unauthorized insurer requesting eligibility
 2220  pursuant to s. 626.918 shall file with the department its
 2221  appointment of the Chief Financial Officer, on a form as
 2222  furnished by the department, as its agent attorney to receive
 2223  service of all legal process issued against it in any civil
 2224  action or proceeding in this state, and agreeing that process so
 2225  served shall be valid and binding upon the insurer. The
 2226  appointment shall be irrevocable, shall bind the insurer and any
 2227  successor in interest as to the assets or liabilities of the
 2228  insurer, and shall remain in effect as long as there is
 2229  outstanding in this state any obligation or liability of the
 2230  insurer resulting from its insurance transactions therein.
 2231         (4) At the time of such appointment of the Chief Financial
 2232  Officer as its process agent, the insurer shall file with the
 2233  department designation of the name and e-mail address of the
 2234  person to whom process against it served upon the Chief
 2235  Financial Officer is to be made available through the
 2236  department’s secure online portal forwarded. The insurer may
 2237  change the designation at any time by a new filing.
 2238         Section 58. Subsection (5) of section 626.9953, Florida
 2239  Statutes, is amended to read:
 2240         626.9953 Qualifications for registration; application
 2241  required.—
 2242         (5) An applicant must submit a set of his or her
 2243  fingerprints in accordance with s. 626.171(4) to the department
 2244  and pay the processing fee established under s. 624.501(23). The
 2245  department shall submit the applicant’s fingerprints to the
 2246  Department of Law Enforcement for processing state criminal
 2247  history records checks and local criminal records checks through
 2248  local law enforcement agencies and for forwarding to the Federal
 2249  Bureau of Investigation for national criminal history records
 2250  checks. The fingerprints shall be taken by a law enforcement
 2251  agency, a designated examination center, or another department
 2252  approved entity. The department may not approve an application
 2253  for registration as a navigator if fingerprints have not been
 2254  submitted.
 2255         Section 59. Paragraphs (e) and (f) are added to subsection
 2256  (4) of section 633.135, Florida Statutes, to read:
 2257         633.135 Firefighter Assistance Grant Program.—
 2258         (4) Funds shall be used to:
 2259         (e)Purchase other equipment and tools that improve
 2260  firesafety and fire rescue capabilities for firefighters.
 2261         (f)Purchase protective clothing and equipment compliant
 2262  with NFPA 1977, “Standard on Protective Clothing and Equipment
 2263  for Wildland Fire Fighting and Urban Interface Fire Fighting.”
 2264         Section 60. Subsections (4) and (5) of section 633.216,
 2265  Florida Statutes, are amended to read:
 2266         633.216 Inspection of buildings and equipment; orders;
 2267  firesafety inspection training requirements; certification;
 2268  disciplinary action.—The State Fire Marshal and her or his
 2269  agents or persons authorized to enforce laws and rules of the
 2270  State Fire Marshal shall, at any reasonable hour, when the State
 2271  Fire Marshal has reasonable cause to believe that a violation of
 2272  this chapter or s. 509.215, or a rule adopted thereunder, or a
 2273  minimum firesafety code adopted by the State Fire Marshal or a
 2274  local authority, may exist, inspect any and all buildings and
 2275  structures which are subject to the requirements of this chapter
 2276  or s. 509.215 and rules adopted thereunder. The authority to
 2277  inspect shall extend to all equipment, vehicles, and chemicals
 2278  which are located on or within the premises of any such building
 2279  or structure.
 2280         (4) Every firesafety inspector certificate is valid for a
 2281  period of 4 years from the date of issuance. Renewal of
 2282  certification is subject to the affected person’s completing
 2283  proper application for renewal and meeting all of the
 2284  requirements for renewal as established under this chapter or by
 2285  rule adopted under this chapter, which must include completion
 2286  of at least 54 hours during the preceding 4-year period of
 2287  continuing education as required by the rule of the department
 2288  or, in lieu thereof, successful passage of an examination as
 2289  established by the department.
 2290         (5)A previously certified firesafety inspector whose
 2291  certification has lapsed for 8 years or more must repeat the
 2292  fire safety inspector training as specified by the division.
 2293         Section 61. Paragraph (b) of subsection (4) and paragraphs
 2294  (a) and (c) of subsection (6) of section 633.408, Florida
 2295  Statutes, are amended to read:
 2296         633.408 Firefighter and volunteer firefighter training and
 2297  certification.—
 2298         (4) The division shall issue a Firefighter Certificate of
 2299  Compliance to an individual who does all of the following:
 2300         (b) Passes the Minimum Standards Course certification
 2301  examination within 12 months after completing the required
 2302  courses.
 2303         (6)(a) The division may issue a Special Certificate of
 2304  Compliance to an individual who does all of the following:
 2305         1. Satisfactorily completes the course established by rule
 2306  by the division and successfully passes any examination
 2307  corresponding to such course in paragraph (1)(b) to obtain a
 2308  Special Certificate of Compliance.
 2309         2. Passes the examination established in paragraph (1)(b)
 2310  to obtain a Special Certificate of Compliance.
 2311         3. Possesses the qualifications in s. 633.412.
 2312         (c)In order to retain a Special Certificate of Compliance,
 2313  every 4 years an individual must:
 2314         1.Be active as a firefighter;
 2315         2.Maintain a current and valid fire service instructor
 2316  certificate, instruct at least 40 hours during the 4-year
 2317  period, and provide proof of such instruction to the division,
 2318  which proof must be registered in an electronic database
 2319  designated by the division; or
 2320         3.Within 6 months before the 4-year period expires,
 2321  successfully complete a Firefighter Retention Refresher Course
 2322  consisting of a minimum of 40 hours of training as prescribed by
 2323  rule.
 2324         Section 62. Subsections (1) and (4) of section 633.414,
 2325  Florida Statutes, are amended to read:
 2326         633.414 Retention of firefighter and volunteer firefighter
 2327  certifications.—
 2328         (1) In order for a firefighter to retain her or his
 2329  Firefighter Certificate of Compliance or Special Certificate of
 2330  Compliance, every 4 years he or she must meet the requirements
 2331  for renewal provided in this chapter and by rule, which must
 2332  include at least one of the following:
 2333         (a) Be active as a firefighter. As used in this section,
 2334  the term “active” means being employed as a firefighter or
 2335  providing service as a volunteer firefighter as evidenced by the
 2336  individual’s name appearing on a fire service provider’s
 2337  employment roster in the Florida State Fire College database or
 2338  a letter by the fire service provider attesting to dates of
 2339  employment.
 2340         (b) Maintain a current and valid fire service instructor
 2341  certificate, instruct at least 40 hours during the 4-year
 2342  period, and provide proof of such instruction to the division,
 2343  which proof must be registered in an electronic database
 2344  designated by the division.
 2345         (c) Before the expiration of the certificate Within 6
 2346  months before the 4-year period expires, successfully complete a
 2347  Firefighter Retention Refresher Course consisting of a minimum
 2348  of 40 hours of training to be prescribed by rule.
 2349         (d) Before the expiration of the certificate Within 6
 2350  months before the 4-year period expires, successfully retake and
 2351  pass the Minimum Standards Course examination pursuant to s.
 2352  633.408.
 2353         (4)For the purposes of this section, the term “active”
 2354  means being employed as a firefighter or providing service as a
 2355  volunteer firefighter for a cumulative period of 6 months within
 2356  a 4-year period.
 2357  
 2358  The 4-year period may, in the discretion of the department, be
 2359  extended to 12 months after discharge from military service if
 2360  the military service does not exceed 3 years, but in no event
 2361  more than 6 years from the date of issue or renewal, if
 2362  applicable, for an honorably discharged veteran of the United
 2363  States Armed Forces or the spouse of such a veteran. A qualified
 2364  individual must provide a copy of a military identification
 2365  card, military dependent identification card, military service
 2366  record, military personnel file, veteran record, discharge
 2367  paper, or separation document that indicates such member is
 2368  currently in good standing or such veteran is honorably
 2369  discharged.
 2370         Section 63. Subsection (4) of section 648.34, Florida
 2371  Statutes, is amended to read:
 2372         648.34 Bail bond agents; qualifications.—
 2373         (4) The applicant shall furnish, with his or her
 2374  application, a complete set of his or her fingerprints in
 2375  accordance with s. 626.171(4) and a recent credential-sized,
 2376  fullface photograph of the applicant. The applicant’s
 2377  fingerprints shall be certified by an authorized law enforcement
 2378  officer. The department shall not authorize an applicant to take
 2379  the required examination until the department has received a
 2380  report from the Department of Law Enforcement and the Federal
 2381  Bureau of Investigation relative to the existence or
 2382  nonexistence of a criminal history report based on the
 2383  applicant’s fingerprints.
 2384         Section 64. Subsection (4) of section 648.355, Florida
 2385  Statutes, is amended to read:
 2386         648.355 Temporary limited license as limited surety agent
 2387  or professional bail bond agent; pending examination.—
 2388         (4) The applicant shall furnish, with the application for
 2389  temporary license, a complete set of the applicant’s
 2390  fingerprints in accordance with s. 626.171(4) and a recent
 2391  credential-sized, fullface photograph of the applicant. The
 2392  applicant’s fingerprints shall be certified by an authorized law
 2393  enforcement officer. The department shall not issue a temporary
 2394  license under this section until the department has received a
 2395  report from the Department of Law Enforcement and the Federal
 2396  Bureau of Investigation relative to the existence or
 2397  nonexistence of a criminal history report based on the
 2398  applicant’s fingerprints.
 2399         Section 65. Subsection (4) is added to section 648.46,
 2400  Florida Statutes, to read:
 2401         648.46 Procedure for disciplinary action against
 2402  licensees.—
 2403         (4)The expiration, nonrenewal, or surrender of licensure
 2404  under this chapter does not eliminate the jurisdiction of the
 2405  licensing authority to investigate and prosecute for a violation
 2406  committed by a licensee while licensed under this chapter. The
 2407  prosecution of any matter may be initiated or continued
 2408  notwithstanding the withdrawal of a complaint.
 2409         Section 66. Paragraph (d) of subsection (2) and paragraphs
 2410  (b), (c), and (e) of subsection (3) of section 766.105, Florida
 2411  Statutes, are amended, and paragraph (i) is added to subsection
 2412  (3) and subsection (4) is added to that section, to read:
 2413         766.105 Florida Patient’s Compensation Fund.—
 2414         (2) COVERAGE.—
 2415         (d)1. Any health care provider who participates in the fund
 2416  and who does not meet the provisions of paragraph (b) shall not
 2417  be covered by the fund.
 2418         2. Annually, the Agency for Health Care Administration
 2419  shall require documentation by each hospital that such hospital
 2420  is in compliance, and will remain in compliance, with the
 2421  provisions of this section. The agency shall review the
 2422  documentation and then deliver the documentation to the board of
 2423  governors. At least 60 days before the time a license will be
 2424  issued or renewed, the agency shall request from the board of
 2425  governors a certification that each hospital is in compliance
 2426  with the provisions of this section. The board of governors
 2427  shall not be liable under the law for any erroneous
 2428  certification. The agency may not issue or renew the license of
 2429  any hospital which has not been certified by the board of
 2430  governors. The license of any hospital that fails to remain in
 2431  compliance or fails to provide such documentation shall be
 2432  revoked or suspended by the agency.
 2433         (3) THE FUND.—
 2434         (b) Fund administration and operation.—
 2435         1. The fund shall operate subject to the supervision and
 2436  approval of the Chief Financial Officer or his or her designee a
 2437  board of governors consisting of a representative of the
 2438  insurance industry appointed by the Chief Financial Officer, an
 2439  attorney appointed by The Florida Bar, a representative of
 2440  physicians appointed by the Florida Medical Association, a
 2441  representative of physicians’ insurance appointed by the Chief
 2442  Financial Officer, a representative of physicians’ self
 2443  insurance appointed by the Chief Financial Officer, two
 2444  representatives of hospitals appointed by the Florida Hospital
 2445  Association, a representative of hospital insurance appointed by
 2446  the Chief Financial Officer, a representative of hospital self
 2447  insurance appointed by the Chief Financial Officer, a
 2448  representative of the osteopathic physicians’ or podiatric
 2449  physicians’ insurance or self-insurance appointed by the Chief
 2450  Financial Officer, and a representative of the general public
 2451  appointed by the Chief Financial Officer. The board of governors
 2452  shall, during the first meeting after June 30 of each year,
 2453  choose one of its members to serve as chair of the board and
 2454  another member to serve as vice chair of the board. The members
 2455  of the board shall be appointed to serve terms of 4 years,
 2456  except that the initial appointments of a representative of the
 2457  general public by the Chief Financial Officer, an attorney by
 2458  The Florida Bar, a representative of physicians by the Florida
 2459  Medical Association, and one of the two representatives of the
 2460  Florida Hospital Association shall be for terms of 3 years;
 2461  thereafter, such representatives shall be appointed for terms of
 2462  4 years. Subsequent to initial appointments for 4-year terms,
 2463  the representative of the osteopathic physicians’ or podiatric
 2464  physicians’ insurance or self-insurance appointed by the Chief
 2465  Financial Officer and the representative of hospital self
 2466  insurance appointed by the Chief Financial Officer shall be
 2467  appointed for 2-year terms; thereafter, such representatives
 2468  shall be appointed for terms of 4 years. Each appointed member
 2469  may designate in writing to the chair an alternate to act in the
 2470  member’s absence or incapacity. A member of the board, or the
 2471  member’s alternate, may be reimbursed from the assets of the
 2472  fund for expenses incurred by him or her as a member, or
 2473  alternate member, of the board and for committee work, but he or
 2474  she may not otherwise be compensated by the fund for his or her
 2475  service as a board member or alternate.
 2476         2. There shall be no liability on the part of, and no cause
 2477  of action of any nature shall arise against, the fund or its
 2478  agents or employees, professional advisers or consultants, the
 2479  Chief Financial Officer or his or her designee members of the
 2480  board of governors or their alternates, or the Department of
 2481  Financial Services or the Office of Insurance Regulation of the
 2482  Financial Services Commission or their representatives for any
 2483  action taken by them in the performance of their powers and
 2484  duties pursuant to this section.
 2485         (c) Powers of the fund.—The fund has the power to:
 2486         1. Sue and be sued, and appear and defend, in all actions
 2487  and proceedings in its name to the same extent as a natural
 2488  person.
 2489         2. Adopt, change, amend, and repeal a plan of operation,
 2490  not inconsistent with law, for the regulation and administration
 2491  of the affairs of the fund. The plan and any changes thereto
 2492  shall be filed with the Office of Insurance Regulation of the
 2493  Financial Services Commission and are all subject to its
 2494  approval before implementation by the fund. All fund members,
 2495  board members, and employees shall comply with the plan of
 2496  operation.
 2497         3. Have and exercise all powers necessary or convenient to
 2498  effect any or all of the purposes for which the fund is created.
 2499         4. Enter into such contracts as are necessary or proper to
 2500  carry out the provisions and purposes of this section.
 2501         5. Employ or retain such persons as are necessary to
 2502  perform the administrative and financial transactions and
 2503  responsibilities of the fund and to perform other necessary or
 2504  proper functions unless prohibited by law.
 2505         6. Take such legal action as may be necessary to avoid
 2506  payment of improper claims.
 2507         7. Indemnify any employee, agent, member of the board of
 2508  governors or his or her alternate, or person acting on behalf of
 2509  the fund in an official capacity, for expenses, including
 2510  attorney’s fees, judgments, fines, and amounts paid in
 2511  settlement actually and reasonably incurred by him or her in
 2512  connection with any action, suit, or proceeding, including any
 2513  appeal thereof, arising out of his or her capacity in acting on
 2514  behalf of the fund, if he or she acted in good faith and in a
 2515  manner he or she reasonably believed to be in, or not opposed
 2516  to, the best interests of the fund and, with respect to any
 2517  criminal action or proceeding, he or she had reasonable cause to
 2518  believe his or her conduct was lawful.
 2519         (e) Fund accounting and audit.—
 2520         1. Money shall be withdrawn from the fund only upon a
 2521  voucher as authorized by the Chief Financial Officer or his or
 2522  her designee board of governors.
 2523         2. All books, records, and audits of the fund shall be open
 2524  for reasonable inspection to the general public, except that a
 2525  claim file in possession of the fund, fund members, and their
 2526  insurers is confidential and exempt from the provisions of s.
 2527  119.07(1) and s. 24(a), Art. I of the State Constitution until
 2528  termination of litigation or settlement of the claim, although
 2529  medical records and other portions of the claim file may remain
 2530  confidential and exempt as otherwise provided by law. Any book,
 2531  record, document, audit, or asset acquired by, prepared for, or
 2532  paid for by the fund is subject to the authority of the Chief
 2533  Financial Officer or his or her designee board of governors,
 2534  which shall be responsible therefor.
 2535         3. Persons authorized to receive deposits, issue vouchers,
 2536  or withdraw or otherwise disburse any fund moneys shall post a
 2537  blanket fidelity bond in an amount reasonably sufficient to
 2538  protect fund assets. The cost of such bond shall be paid from
 2539  the fund.
 2540         4. Annually, the fund shall furnish, upon request, audited
 2541  financial reports to any fund participant and to the Office of
 2542  Insurance Regulation and the Joint Legislative Auditing
 2543  Committee. The reports shall be prepared in accordance with
 2544  accepted accounting procedures and shall include income and such
 2545  other information as may be required by the Office of Insurance
 2546  Regulation or the Joint Legislative Auditing Committee.
 2547         5. Any money held in the fund shall be invested in
 2548  interest-bearing investments by the board of governors of the
 2549  fund as administrator. However, in no case may any such money be
 2550  invested in the stock of any insurer participating in the Joint
 2551  Underwriting Association authorized by s. 627.351(4) or in the
 2552  parent company of, or company owning a controlling interest in,
 2553  such insurer. All income derived from such investments shall be
 2554  credited to the fund.
 2555         6. Any health care provider participating in the fund may
 2556  withdraw from such participation only at the end of a fiscal
 2557  year; however, such health care provider shall remain subject to
 2558  any assessment or any refund pertaining to any year in which
 2559  such member participated in the fund.
 2560         (i)Dissolution of the fund.The fund shall operate subject
 2561  to the supervision of the Chief Financial Officer or his or her
 2562  designee, pursuant to the policies and procedures and under the
 2563  auspices of the Department of Financial Services, Division of
 2564  Rehabilitation and Liquidation, until the department executes a
 2565  legal dissolution of the fund on or before December 31, 2023.
 2566  Before the legal dissolution of the fund, the Department of
 2567  Financial Services must:
 2568         1.Obtain all existing records and retain necessary records
 2569  of the fund pursuant to law.
 2570         2.Identify all remaining property held by the fund and
 2571  attempt to return such property to its owners and, for property
 2572  that cannot be returned to the owner, transfer such property to
 2573  the Department of Financial Services, Division of Unclaimed
 2574  Property.
 2575         3.Make a final accounting of the finances of the fund.
 2576         4.Ensure that the fund has met all its obligations
 2577  pursuant to structured settlements, annuities, or other
 2578  instruments established to pay covered claims, and, if the fund
 2579  has not done so, attempt to meet such obligations before final
 2580  and complete dissolution of the fund.
 2581         5.Sell or otherwise dispose of all physical assets of the
 2582  fund.
 2583         6.Execute a legal dissolution of the fund.
 2584         7.Transfer any remaining money or assets of the fund to
 2585  the Chief Financial Officer for deposit in the General Revenue
 2586  Fund.
 2587         (4)REPEAL.—This section is repealed January 1, 2024.
 2588         Section 67. Paragraph (b) of subsection (1) of section
 2589  945.6041, Florida Statutes, is amended to read:
 2590         945.6041 Inmate medical services.—
 2591         (1) As used in this section, the term:
 2592         (b) “Health care provider” means:
 2593         1.A hospital licensed under chapter 395.
 2594         2.A physician or physician assistant licensed under
 2595  chapter 458.
 2596         3.An osteopathic physician or physician assistant licensed
 2597  under chapter 459.
 2598         4.A podiatric physician licensed under chapter 461.
 2599         5.A health maintenance organization certificated under
 2600  part I of chapter 641.
 2601         6.An ambulatory surgical center licensed under chapter
 2602  395.
 2603         7.A professional association, partnership, corporation,
 2604  joint venture, or other association established by the
 2605  individuals set forth in subparagraphs 2., 3., and 4. for
 2606  professional activity.
 2607         8.Other medical facility.
 2608         a. As used in this subparagraph, the term “other medical
 2609  facility” means:
 2610         (I) A facility the primary purpose of which is to provide
 2611  human medical diagnostic services, or a facility providing
 2612  nonsurgical human medical treatment which discharges patients on
 2613  the same working day that the patients are admitted; and
 2614         (II) A facility that is not part of a hospital.
 2615         b. The term does not include a facility existing for the
 2616  primary purpose of performing terminations of pregnancy, or an
 2617  office maintained by a physician or dentist for the practice of
 2618  medicine has the same meaning as provided in s. 766.105.
 2619         Section 68. Paragraph (a) of subsection (1) of section
 2620  985.6441, Florida Statutes, is amended to read:
 2621         985.6441 Health care services.—
 2622         (1) As used in this section, the term:
 2623         (a) “Health care provider” means:
 2624         1.A hospital licensed under chapter 395.
 2625         2.A physician or physician assistant licensed under
 2626  chapter 458.
 2627         3.An osteopathic physician or physician assistant licensed
 2628  under chapter 459.
 2629         4.A podiatric physician licensed under chapter 461.
 2630         5.A health maintenance organization certificated under
 2631  part I of chapter 641.
 2632         6.An ambulatory surgical center licensed under chapter
 2633  395.
 2634         7.A professional association, partnership, corporation,
 2635  joint venture, or other association established by the
 2636  individuals set forth in subparagraphs 2., 3., and 4. for
 2637  professional activity.
 2638         8.Other medical facility.
 2639         a. As used in this subparagraph, the term “other medical
 2640  facility” means:
 2641         (I) A facility the primary purpose of which is to provide
 2642  human medical diagnostic services, or a facility providing
 2643  nonsurgical human medical treatment which discharges patients on
 2644  the same working day that the patients are admitted; and
 2645         (II) A facility that is not part of a hospital.
 2646         b. The term does not include a facility existing for the
 2647  primary purpose of performing terminations of pregnancy, or an
 2648  office maintained by a physician or dentist for the practice of
 2649  medicine has the same meaning as provided in s. 766.105.
 2650         Section 69. All powers, duties, functions, records,
 2651  offices, personnel, associated administrative support positions,
 2652  property, pending issues, existing contracts, administrative
 2653  authority, and administrative rules relating to the Stop Inmate
 2654  Fraud Program within the Department of Financial Services are
 2655  transferred by a type two transfer as defined in s. 20.06(2),
 2656  Florida Statutes, to the Department of Economic Opportunity.
 2657         Section 70. Except as otherwise expressly provided in this
 2658  act, this act shall take effect July 1, 2022.