Meeting Notice — Insurance & Banking Subcommittee, House of Representatives (January 21, 2020)
Summary
Meeting packet of the Insurance & Banking Subcommittee of the Florida House of Representatives for its meeting on January 21, 2020, at Sumner Hall (404 HOB). The notice and agenda list HB 1077, Department of Financial Services, by LaMarca. The staff analysis states that the bill makes the Division of Public Assistance Fraud a criminal justice agency, requires only one nomination per vacancy on the Board of Funeral, Cemetery, and Consumer Services, and creates a permanent bar to licensure based on certain crimes. It states that the bill has no fiscal impact on state or local government revenue or expenditures and an effective date of July 1, 2020. An amendment offered by Representative Altman would create Section 633.217, Florida Statutes, on influencing a firesafety inspector.
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Insurance & Banking
Subcommittee
Tuesday, January 21, 2020
3:00 pm - 5:00 pm
Sumner Hall (404 HOB)
Jose Oliva Byron Donalds
Speaker Chair
Committee Meeting Notice
HOUSE OF REPRESENTATIVES
Insurance & Banking Subcommittee
Start Date and Time: Tuesday, January 21, 2020 03:00 pm
End Date and Time: Tuesday, January 21, 2020 05:00 pm
Location: Sumner Hall (404 HOB)
Duration: 2.00 hrs
Consideration of the following bill(s):
HB 1077 Department of Financial Services by LaMarca
Pursuant to rule 7.11, the deadline for amendments to bills on the agenda by non-appointed members shall
be 6:00 p.m., Friday, January 17, 2020.
By Request of Chair Donalds, all Insurance & Banking Subcommittee members are asked to have
amendments to bills on the agenda submitted to staff by 6:00 p.m., Friday, January 17, 2020.
NOTICE FINALIZED on 01/16/2020 4:01PM by Harrell.Lindsey
01/17/2020 5: 16:31PM Leagis ® Page 1 of 1
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Jose R. Oliva Byron Donalds
Speaker Chair
AGENDA
January 21, 2020
404 House Office Building
3:00 PM - 5:00 PM
I. Call to Order & Roll Call
II. Consideration of the following bills:
A. HB 1077 Department of Financial Services by LaMarca
Ill. Adjournment
303 House Office Building, 402 South Momoe Street, Tallahassee, Florida 32399-1300
(850) 717-4871 Fax: (850) 413-0419
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1077 Department of Financial Services
SPONSOR(S): LaMarca
TIED BILLS: IDEN./SIM. BILLS: SB 1404
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Salter Cooper
2) Government Operations & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The bill modifies several areas regulated by the Department of Financial Services (DFS), including:
• Division of Public Assistance Fraud (DPAF): Current law does not list DPAF as a criminal justice
agency. The bill establishes DPAF as a criminal justice agency, allowing proper execution of fighting
public assistance fraud.
• Board of Funeral, Cemetery, and Consumer Services: Currently, the Chief Financial Officer of DFS
is required to nominate three members per vacant position on the Board, and requires six voting
members for a quorum. The bill requires only one nomination per vacancy and changes the definition of
a quorum. The bill also removes unnecessary member staggering requirements and provides
clarification regarding other board member requirements.
• Disqualification and Penalties of Applicants and Licensees: Current law lacks a provision under
which a person can be disqualified for licensure based on a criminal record. The bill creates a
permanent bar to licensure based on certain crimes, as well as disqualifying periods for various felonies
and misdemeanors.
• Violations by Unlicensed Persons: Current law does not specify activity prohibited without a license
under ch. 497, F.S. The bill prohibits specific unlicensed activity and changes the penalty for
unlicensed funeral activity from a second-degree misdemeanor to a third-degree felony.
• Explosives: Current law defines a two-component explosive as having a detonator that is a No.6
blasting cap. The bill changes this distinction to "any detonator" to fall in line with current practice.
• Uniform Fire Alarm Permit Application: Under current law, contractors are required to apply for, and
receive, a permit prior to installing, replacing, or repairing a fire alarm system. The bill expedites repairs
of systems that have previously been permitted by the local enforcement agency by allowing repair to
begin after filing an application. Contractors would not have to wait to receive the permit, although the
permit and approval from the local enforcement agency is still required to ensure compliance.
• Volunteer Firefighter Service: Currently, a volunteer firefighter who is transitioning to become a
career firefighter is prohibited from entering immediately dangerous to life and health environments.
The bill allows the transitioning firefighter to act in the same capacity as when they were a volunteer
firefighter, as long as they are under supervision of a career firefighter and the period of transition
does not go beyond one year.
• False Personation: Current law prohibits impersonation of an officer of DFS and a subset of a fire or
arson investigator of DFS. The bill eliminates the subset and adds broader language, encompassing all
officers of DFS, as well as any personnel or representative of the Division of Investigative and Forensic
Services.
The bill has no fiscal impact on state or local government revenue or expenditures. It has no known positive or
negative economic impacts on the private sector.
The bill has an effective date of July 1, 2020.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
The Department of Financial Services (DFS) is composed of 13 divisions and one independent office.
They are the Divisions of:
• Accounting and Auditing;
• Consumer Services;
• Funeral, Cemetery, and Consumer Services;
• Insurance Agent and Agency Services;
• Investigative and Forensic Services (DIFS);
• Public Assistance Fraud (DPAF);
• Rehabilitation and Liquidation;
• Risk Management;
• State Fire Marshal;
• Treasury;
• Unclaimed Property;
• Workers' Compensation;
• Administration; and the
• Office of Insurance Consumer Advocate.
Division of Public Assistance Fraud
When DIFS was created in 2016, DPAF was not designated as a criminal justice agency, limiting
access to information within criminal records systems. Under current law, "criminal justice agency"
means a court, 1 the Department of Law Enforcement,2 the Department of Juvenile Justice, 3 the
protective investigations component of the Department of Children and Families, which investigates
the crimes of abuse and neglect, 4 and any other governmental agency or subunit thereof that performs
the administration of criminal justice pursuant to a statute or rule of court and that allocates a
substantial part of its annual budget to the administration of criminal justice. 5 DPAF currently operates,
in part, as a criminal justice agency. However, current statute does not appropriately reflect this.
Effect of the Bill
The bill establishes DPAF as a criminal justice agency, permitting broader access to criminal records.
The effect of this change should improve the department's investigation and enforcement capabilities.
Board of Funeral, Cemetery, and Consumer Services
The Board of Funeral, Cemetery, and Consumer Services (The Board) consists of ten members, nine
of which are nominated by the Chief Financial Officer (CFO}, confirmed by the Senate, and appointed
by the Governor. 6 The tenth member is the State Health Officer or his or her designee. 7 Currently, the
CFO is required to nominate three persons for each vacancy on the board. Often times, the CFO does
not receive three or more applications for any given vacancy. Additionally, one Board member must be
a Certified Public Accountant (CPA) not affiliated with the death care industry. This position has been
vacant since September 2017. 8
1 S. 943.045 (11 )(a), F.S.
2 S. 943.045 (11 )(b), F.S.
3 S. 943.045 (11 )(c), F.S.
4 S. 943.045 (11 )(d), F.S.
5 S. 943.045 (11 )(e), F.S.
s S. 497.101 (1), F.S.
7 S. 497.101 (1), F.S.
8 Department of Financial Services, Agency Analysis of House Bill 1077, p.2 (Jan. 14, 2020).
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In order for the Board to conduct business, a quorum must be present. A quorum currently means the
presence of six board members. A quorum has proved difficult to meet due to vacant positions,
member absences, and member recusals. Current law requires staggered appointments of initial Board
members. DFS is required to adopt rules establishing forms and procedures for application for
membership on the Board.
Effect of the Bill
The bill amends the requirement of three nominees per vacancy to an option of one to three
nominations. Two members, instead of three, would still be required to be residents of the state, to
have never been licensed as funeral directors or embalmers, and to have no connection to the death
care industry. The CPA qualification of having never been licensed as a funeral director or embalmer
remains, while the CPA would be allowed to be associated with the death care industry.
The bill also removes the provision requiring staggered appointments following expiration of the terms
of initial board members. Because successor members have since been staggered, the provision no
longer is necessary. The bill eliminates the delegated rulemaking authority to DFS for establishing
forms by which persons can apply for membership. Because the Governor makes the appointments,
that delegation is unnecessary.
Disqualification and Penalties of Applicants and Licensees
Individuals, or the individual on behalf of an entity, applying for licensure or relicensure under ch. 497,
F.S., must disclose their criminal records in accordance withs. 497.412, F.S. Applicants must disclose
any felony or misdemeanor directly or indirectly relating to the death care industry, no matter when it
was committed. 9 Felonies unrelated to the death care industry and committed within the 20 years
immediately preceding the application under ch. 497, F.S., must be disclosed. 10 Misdemeanors
unrelated to the death care industry and committed within the five years immediately preceding the
application under ch. 497, F.S., must also be disclosed. 11 Chapter 497, F.S., currently lacks any ability
to disqualify an application for licensure on the basis of an applicant's criminal record.
Effect of the Bill
The bill creates a permanent bar from licensure under certain circumstances. An applicant can be
permanently barred from licensure under ch. 497, F.S., if the applicant has been found guilty of or has
pleaded guilty or nolo contendere 12 to any of the following, regardless of adjudication:
(a) A felony of the first degree,
(b) A capital felony,
(c) A felony money laundering offense, or
(d) A felony embezzlement.
The bill also creates disqualification periods for various felonies and misdemeanors. All felonies
involving moral turpitude 13 that do not fall under the permanent bar are subject to a ten-year
disqualifying period. All felonies that do not fall under the permanent bar and that do not involve moral
turpitude are subject to a five-year disqualifying period. All misdemeanors directly related to the
financial services business 14 are subject to a five-year disqualifying period. A disqualifying period
9 S. 497.412(10)(c)1., F.S.
10 S. 497.412(10)(c)2., F.S.
11 S. 497.412(10)(c)3., F.S.
12 A nolo contendere plea is a plea by which a defendant in a criminal prosecution accepts conviction as though a guilty
plea had been entered but does not admit guilt.
13 "A crime involves moral turpitude if it is an act of baseness, vileness, or depravity in the private and social duties which
a person owes to others and to society in general." 16 Fla. Jur. 2d Criminal Law - Substantive Principles/Offenses §6.
14 The bill defines financial services business as "any financial activity regulated by the Department of Financial Services,
the Office of Insurance Regulation, or the Office of Financial Regulation."
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begins upon an applicant's final release from criminal supervision or upon completion of a criminal
sentence. A license may not be issued until all related fines, court costs & fees, and court-ordered
restitution have been paid.
Once a disqualifying period has elapsed, the applicant carries the burden of showing that they have
been rehabilitated, they do not pose a risk to the public, they are fit and trustworthy to engage in
business regulated by ch. 497, F.S., and they are otherwise qualified. A grant of a pardon or the
restoration of civil rights pursuant to ch. 940, F.S., ands. 8 Art. IV of the State Constitution, with respect
to a finding of guilt or a plea does not bar an applicant from licensure. 15
The bill gives rulemaking authority to the DFS for purposes of implementation. The rules must include
additional disqualifying periods upon a finding of the commitment of multiple crimes, and may include
other factors reasonably related to the applicant's criminal history. 16 The rules must provide for
mitigating and aggravating factors. Mitigating factors must not result in a disqualifying period of less
than five years. Mitigating factors will not apply to the five year disqualifying period for all felonies
unrelated to both the death care industry and moral turpitude or the five year disqualifying period for all
misdemeanors directly related to the financial services business.
The Board may grant an exemption from disqualification due to an applicant's criminal record if the
applicant has paid in full any fee, fine, fund, lien, civil judgment, restitution, or cost of prosecution
imposed by the court as part of a judgment and sentence relating to the disqualifying offense.
Additionally, five years must have elapsed since the applicant has completed or been lawfully released
from confinement, supervision, or nonmonetary condition imposed by a court for the disqualifying
offense. In order for the Board to grant an exemption, an applicant must clearly and convincingly
demonstrate that he or she would not pose a risk to persons or property if granted a license under ch.
497, F.S.
Evidence presented to the Board by an applicant for a potential exemption must include the following:
1. Facts and circumstances surrounding the disqualifying offense,
2. The time that has elapsed since the offense,
3. The nature of the offense and the harm caused to the victim(s),
4. The applicant's history before and after the offense, and
5. Any other evidence or circumstances indicating that the applicant will not present a danger
if licensed or certified.
The Board holds discretion whether to grant or deny an exemption. The Board's decision is subject to
ch. 120, F.S., the Administrative Procedure Act. A formal proceeding under s. 120.57(1)17 is available
to an applicant only if the applicant disputes material facts that the OLE relied upon in order to reach a
decision.
Violations by Unlicensed Persons
Chapter 497, F.S., requires a license for specific death care industry practices, although it does not
include specific examples of what is considered a licensed or unlicensed practice. Current law provides
a penalty of a second-degree misdemeanor for individuals who engage in activity requiring licensure
without possessing a license. 18
Effect of the Bill
The bill specifies that a person may not be, act as, or advertise himself or herself to be a funeral
director, embalmer, or direct disposer unless he or she is licensed by DFS. The bill also specifies that
15 See drafting comments.
1e See drafting comments.
17 This section lays out additional procedures applicable to hearings involving disputed issues of material fact under the
Administrative Procedure Act.
1a S. 497.159(6), F .S.
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a person may not be, act as, or advertise himself or herself as a preneed 19 sales agent unless
currently licensed by DFS and is appointed by a preneed main licensee, for whom they are executing
preneed contracts. Any violation of these newly created subsections would result in a felony of the
third degree, punishable as provided in s. 775.082, s. 775.083, ors. 775.084, F.S.
Explosives
Chapter 552, F.S., addresses the manufacture, distribution, and use of explosives, which are
regulated by the State Fire Marshal. The current definition of a two-component explosive requires
detonation to be triggered by a No. 6 blasting cap. This specific blasting cap has gone out of
production and current blasting caps do not fall under the same rating system. Current blasting caps
fall outside of this definition and therefore are not effectively regulated.
Effect of the Bill
The bill removes the No. 6 blasting cap specification and changes it to any detonator. The amendment
to this subsection brings the language in line with current practices.
Uniform Fire Alarm Permit Application
Contractors can work on installing or repairing a fire alarm system only after receiving a permit. Local
enforcement agencies often require a plan review for installation or replacement. If a plan review is
required, a contractor must file a Uniform Fire Alarm Permit Application with the local enforcement
agency and receive the permit prior to installing or replacing a fire alarm. If the local enforcement
agency requires a fire alarm permit for a repair to an existing alarm system previously permitted by the
local enforcement agency, a contractor must receive the permit prior to repairing the system.
Effect of the Bill
The bill allows a contractor to begin a repair after filing the application instead of waiting for the permit
to be received. However, this change only applies if the local enforcement agency requires a permit to
repair an existing alarm system that was previously permitted by the agency. If a contractor begins the
repair prior to receiving the permit, the repaired fire alarm will not be compliant with the local
enforcement agency until the permit is issued and the agency has approved the repair. This allows
repairs to be completed in a more efficient manner.
Volunteer Firefighter Service
Volunteer firefighters are required to obtain a Firefighter Certificate of Completion through training.
With this certificate, they can enter into immediately dangerous to life and health (IDLH) environments,
just as career firefighters can. Volunteer firefighters can become career firefighters, if they complete a
Certificate of Compliance. Currently, if a volunteer firefighter chooses to become a career firefighter,
he or she is no longer able to enter an IDLH environment while completing the Certificate of
Compliance.
Effect of the Bill
The bill allows volunteer firefighters who are in transition to become career firefighters to function in
the same capacity in which they acted as volunteer firefighters. The period for which they remain
volunteers cannot extend beyond one year, collectively or consecutively. A volunteer firefighter in
transition must hold a Certificate of Completion with a fire service provider and subsequently be
employed as a regular or permanent firefighter. The volunteer firefighter in transition must be under
19 Preneed contract means "any arrangement or method, of which the provider of funeral merchandise or services has
actual knowledge, whereby any person agrees to furnish funeral merchandise or service in the future." S. 497.005 (61),
F.S.
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the direct supervision of an individual holding a valid firefighter Certificate of Compliance. This allows
Fire Service Providers to transition qualified personnel from volunteer to career status without stripping
their ability to perform.
False Personation
Section 843.08, F.S., lays out the penalties for false personation, which is treated as an obstruction of
justice, a third-degree felony. If the false personation is committed with another felony, it is considered
a second-degree felony. If it is committed and causes death or personal injury to another individual, it
is considered a first-degree felony. Current law prohibits impersonation of a fire or arson investigator of
DFS and any officer of DFS but does not address officers of DIFS.
Effect of the Bill
The bill would take out the specificity of a fire or arson investigator of DFS and instead add "any
personnel or representative of the Division of Investigative and Forensic Services," making the specific
protection broader. This change makes it a felony to impersonate any DIFS personnel and any DFS
officer.
B. SECTION DIRECTORY:
Section 1: Amends s. 20.121, F.S., relating to the Department of Financial Services.
Section 2: Amends s. 497.101, F.S., relating to the Board of Funeral, Cemetery, and Consumer
Services; membership; appointment; terms.
Section 3: Creates s. 497.1411, F.S., relating to disqualification of applicants and licensees; penalties
against licensees; rulemaking.
Section 4: Amends s. 497.157, F.S., relating to unlicensed practice; remedies concerning violations by
unlicensed persons.
Section 5: Amends s. 552.081, F.S., relating to definitions.
Section 6: Amends s. 553.7921, F.S., relating to fire alarm permit application to local enforcement
agency.
Section 7: Amends s. 633.416, F .S., relating to firefighter employment and volunteer firefighter service;
saving clause.
Section 8: Amends s. 843.08, F.S., relating to false personation.
Section 9: Amends s. 943.045, F.S., relating to definitions.
Section 10: Provides an effective date of July 1, 2020.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
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B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The DFS is directed to adopt rules to: 20
• Administers. 497.1411, F.S.;
• Provide for additional disqualifying periods due to commitment of multiple crimes, which may
include other factors reasonably related to the applicant's criminal history; and
• Provide for mitigating and aggravation factors.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Pardon (lines 212-215): The language of the bill makes it seem as if a pardon is currently a reason for
a permanent bar or a period of disqualification. However, the DFS analysis points out that a grant,
pardon, or restoration of civil rights for a crime delineated by the section results in the crime not being
a bar to licensure. 21 It is recommended than an amendment be added to reconcile this gap in the
language and the analysis.
Rulemaking Authority (lines 187-194): The bill allocates rulemaking authority to DFS in relation to
barring or disqualifying licensure. Current law vests sole authority in the Board to determine any and
all criteria for licensure, 22 and to renew and decline to renew licenses under ch. 497, F.S. 23 Both
paragraphs include rulemaking authority, therefore there appears to be a conflict with the delegation to
DFS. 24
20 See drafting comments.
21 Department of Financial Services, Agency Analysis of House Bill 1077, p.4 (Jan. 14, 2020).
22 S. 497.103 (1)(a), F.S.
23 S. 497.103 (1)(k), F.S.,
24 While the Board is housed in DFS, they have independent authority.
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Administrative Procedures Act (lines 239-244): Chapter 120, F.S., the Administrative Procedures
Act, allows for a formal proceeding when an applicant disputes the material facts that an agency or
board relies upon to make a licensure decision. This chapter already applies to licensure decisions by
the Board. Therefore, the bill language establishing the right to a formal hearing appears unnecessary.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1077 2020
1 A bill to be entitled
2 An act relating to the Department of Financial
3 Services; amending s. 20.121, F.S.; specifying powers
4 and duties of the Division of Public Assistance Fraud;
5 amending s. 497.101, F.S.; revising provisions
6 relating to membership of the Board of Funeral,
7 Cemetery, and Consumer Services; creating s. 497.1411,
8 F.S.; providing definitions; providing for permanent
9 disqualification of applicants for licensure under
10 chapter 497, F.S., upon conviction of certain
11 offenses; providing for disqualifying periods for such
12 applicants who have been convicted of certain
13 offenses; requiring rulemaking; providing for
14 calculation of disqualifying periods; providing for
15 applicants to show rehabilitation after completion of
16 a disqualifying period; providing for the effect of a
17 pardon or clemency; providing for exemptions from
18 disqualification in certain circumstances; providing
19 procedures for consideration of applications for such
20 exemptions; amending s. 497.157, F.S.; prohibiting
21 persons from acting as or advertising themselves as
22 being certain persons unless they are so licensed;
23 prohibiting persons from engaging in certain
24 activities requiring licensure without holding
25 required licenses; providing criminal penalties;
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26 amending s. 552.081, F.S.; revising the definition of
27 two-component explosives for the purpose of regulation
28 by the Division of State Fire Marshal; amending s.
29 553.7921, F.S.; revising requirements for repair of an
30 existing alarm system that was previously permitted by
31 a local enforcement agency; amending s. 633.416, F.S.;
32 providing that certain persons serving as volunteer
33 firefighters may serve as a regular or permanent
34 firefighter for a limited period subject to certain
35 restrictions; amending s. 843.08, F.S.; prohibiting
36 false personation of personnel or representatives of
37 the Division of Investigative and Forensic Services;
38 providing criminal penalties; amending s. 943.045,
39 F.S.; providing the investigations component of the
40 Department of Financial Services is a criminal justice
41 agency for specified purposes; providing an effective
42 date.
43
44 Be It Enacted by the Legislature of the State of Florida:
45
46 Section 1. Paragraph (f) of subsection (2) of section
47 20.121, Florida Statutes, is amended to read:
48 20.121 Department of Financial Services.-There is created
49 a Department of Financial Services.
50 (2) DIVISIONS.-The Department of Financial Services shall
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51 consist of the following divisions and office:
52 (f) The Division of Public Assistance Fraud, which shall
53 function as a criminal justice agency for purposes of ss.
54 943.045-943.08. The division shall conduct investigations
55 pursuant to s. 414.411 within or outside of this state as it
56 deems necessary. If, during an investigation, the division has
57 reason to believe that any criminal law of this state has or may
58 have been violated, it shall refer any records tending to show
59 such violation to state or federal law enforcement or
60 prosecutorial agencies and shall provide investigative
61 assistance to those agencies as required.
62 Section 2. Subsections (1), (2), (3), (6), and (8) of
63 section 497.101, Florida Statutes, are amended to read:
64 497.101 Board of Funeral, Cemetery, and Consumer Services;
65 membership; appointment; terms.-
66 (1) The Board of Funeral, Cemetery, and Consumer Services
67 is created within the Department of Financial Services and shall
68 consist of 10 members, 9 of whom shall be appointed by the
69 Governor from nominations made by the Chief Financial Officer
70 and confirmed by the Senate. The Chief Financial Officer shall
71 nominate one to three persons for each of the nine vacancies on
72 the board, and the Governor shall fill each vacancy on the board
73 by appointing one of the three persons nominated by the Chief
74 Financial Officer to fill that vacancy. If the Governor objects
75 to each of the three nominations for a vacancy, she or he shall
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76 inform the Chief Financial Officer in writing. Upon notification
77 of an objection by the Governor, the Chief Financial Officer
78 shall submit one to three additional nominations for that
79 vacancy until the vacancy is filled. One member must be the
80 State Health Officer or her or his designee.
81 (2) Two members of the board shall be funeral directors
82 licensed under part III of this chapter who are associated with
83 a funeral establishment. One member of the board shall be a
84 funeral director licensed under part III of this chapter who is
85 associated with a funeral establishment licensed under part III
86 of this chapter that has a valid preneed license issued pursuant
87 to this chapter and who owns or operates a cinerator facility
88 approved under chapter 403 and licensed under part VI of this
89 chapter. Two members of the board shall be persons whose primary
90 occupation is associated with a cemetery company licensed
91 pursuant to this chapter. Two Three members of the board shall
92 be consumers who are residents of the state, have never been
93 licensed as funeral directors or embalmers, are not connected
94 with a cemetery or cemetery company licensed pursuant to this
95 chapter, and are not connected with the death care industry or
96 the practice of embalming, funeral directing, or direct
97 disposition. One of the two consumer members shall be at least
98 60 years of age, and one shall be licensed as a certified public
99 accountant under chapter 473. One member of the board shall be a
100 consumer who is a resident of this state; licensed as a
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101 certified public accountant under chapter 473; has never been
102 licensed as a funeral director or embalmer; is not a principal
103 or employee of any licensee licensed under this chapter; and
104 does not otherwise have control, as defined ins. 497.005, over
105 any licensee licensed under this chapter. One member of the
106 board shall be a principal of a monument establishment licensed
107 under this chapter as a monument builder. One member shall be
108 the State Health Officer or her or his designee. There shall not
109 be two or more board members who are principals or employees of
110 the same company or partnership or group of companies or
111 partnerships under common control.
112 (3) Board members shall be appointed for terms of 4 years,
113 and the State Health Officer shall serve as long as that person
114 holds that office. The designee of the State Health Officer
115 shall serve at the pleasure of the Governor. When the terms of
116 the initial board members e1cpire, the Chief Financial Officer
117 shall stagger the terms of the successor members as follows: one
118 funeral director, one cemetery representative, the monument
119 builder, and one consumer member shall be appointed for terms of
120 2 years, and the remaining members shall be appointed for terms
121 of 4 years. All subsequent terms shall be for 4 years.
122 (6) The headquarters and records of the board shall be in
123 the Division of Funeral, Cemetery, and Consumer Services of the
124 Department of Financial Services in the City of Tallahassee. The
125 board may be contacted through the Division of Funeral,
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126 Cemetery, and Consumer Services of the Department of Financial
127 Services in the City of Tallahassee. The Chief Financial Officer
128 shall annually appoint from among the board members a chair and
129 vice chair of the board. The board shall meet at least every 6
130 months, and more often as necessary. Special meetings of the
131 board shall be convened upon the direction of the Chief
132 Financial Officer. A quorum is necessary for the conduct of
133 business by the board. Unless otherwise provided by law, a
134 majority of the board members eligible to vote shall constitute
135 a quorum for the purpose of conducting its business oiM board
136 members shall constitute a quorum for the conduct of the board's
137 business.
138 (8) The department shall adopt rules establishing forms by
139 which persons may apply for membership on the board and
140 procedures for applying for ouch membership. Such forms shall
141 require disclosure of the eMiotence and nature of all current
142 and past employments by or contracts with, and direct or
143 indirect affiliations or interests in, any entity or business
144 that at any time was licensed by the board or by the former
145 Board of Funeral and Cemetery Services or the former Board of
146 Funeral Directors and "8ffibalmero or that is or was otherwise
147 involved in the death care industry, as specified by department
148 rule.
149 Section 3. Section 497.1411, Florida Statutes, is created
150 to read:
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151 497.1411 Disqualification of applicants and licensees;
152 penalties against licensees; rulemaking.-
153 ( 1) For purposes of this section, the term:
154 (a) "Applicant" means an individual applying for licensure
155 or relicensure under this chapter, and an officer, director,
156 majority owner, partner, manager, or other person who manages or
157 controls an entity applying for licensure or relicensure under
158 this chapter.
159 (b) "Felony of the first degree" and "capital felony"
160 include all felonies designated as such in this state, at the
161 time of the commission of the offense, as well as any offense in
162 another jurisdiction that is substantially similar to an offense
163 so designated in this state.
164 (c} "Financial services business" means any financial
165 activity regulated by the Department of Financial Services, the
166 Office of Insurance Regulation, or the Office of Financial
167 Regulation.
168 (2) An applicant who has been found guilty of or has
169 pleaded guilty or nolo contendere to any of the following
170 crimes, regardless of adjudication, is permanently barred from
171 licensure under this chapter:
172 (a} A felony of the first degree.
173 (b} A capital felony.
174 (c) A felony money laundering offense.
175 (d) A felony embezzlement.
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176 (3) An applicant who has been found guilty of or has
177 pleaded guilty or nolo contendere to a crime not included in
178 subsection (2), regardless of adjudication, is subject to:
179 (a) A 10-year disqualifying period for all felonies
180 involving moral turpitude that are not specifically included in
181 the permanent bar contained in subsection (2).
182 (b) A 5-year disqualifying period for all felonies to
183 which neither the permanent bar in subsection (2) nor the 10-
184 year disqualifying period in paragraph (a) applies.
185 (c) A 5-year disqualifying period for all misdemeanors
186 directly related to the financial services business.
187 (4) The department shall adopt rules to administer this
188 section. The rules must provide for additional disqualifying
189 periods due to the commitment of multiple crimes and may include
190 other factors reasonably related to the applicant's criminal
191 history. The rules shall provide for mitigating and aggravating
192 factors. However, mitigation may not result in a period of
193 disqualification of less than 5 years and may not mitigate the
194 disqualifying periods in paragraphs (3) (b) and (c).
195 (5) For purposes of this section, a disqualifying period
196 begins upon the applicant's final release from supervision or
197 upon completion of the applicant's criminal sentence. The
198 department may not issue a license to an applicant unless all
199 related fines, court costs and fees, and court-ordered
200 restitution have been paid.
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201 (6) After the disqualifying period has expired, the burden
202 is on the applicant to demonstrate that he or she has been
203 rehabilitated, does not pose a risk to the public, is fit and
204 trustworthy to engage in business regulated by this chapter, and
205 is otherwise qualified for licensure.
206 (7) Notwithstanding subsections (2) and (3), upon a grant
207 of a pardon or the restoration of civil rights pursuant to
208 chapter 940 ands. 8, Art. IV of the State Constitution with
209 respect to a finding of guilt or a plea under subsection (2) or
210 subsection (3), or such pardon or the restoration of civil
211 rights under the laws of another jurisdiction with respect to a
212 conviction in that jurisdiction, such finding or plea no longer
213 bars or disqualifies the applicant from licensure under this
214 chapter; however, such a pardon or restoration of civil rights
215 does not require the department to award such license.
216 (8) (a) The Board of Funeral, Cemetery, and Consumer
217 Services may grant an exemption from disqualification to any
218 person disqualified from licensure under this section because of
219 a criminal record if:
220 1. The applicant has paid in full any fee, fine, fund,
221 lien, civil judgment, restitution, or cost of prosecution
222 imposed by the court as part of the judgment and sentence for
223 any disqualifying offense; and
224 2. At least 5 years have elapsed since the applicant
225 completed or has been lawfully released from confinement,
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226 supervision, or nonmonetary condition imposed by the court for a
227 disqualifying offense.
228 (b) For the board to grant an exemption under this
229 subsection, the applicant must clearly and convincingly
230 demonstrate that he or she would not pose a risk to persons or
231 property if licensed under this chapter, evidence of which must
232 include, but need not be limited to, facts and circumstances
233 surrounding the disqualifying offense, the time that has elapsed
234 since the offense, the nature of the offense and harm caused to
235 the victim, the applicant's history before and after the
236 offense, and any other evidence or circumstances indicating that
237 the applicant will not present a danger if licensed or
238 certified.
239 (c) The board has discretion whether to grant or deny an
240 exemption under this subsection. The board's decision is subject
241 to chapter 120, except that a formal proceeding under s.
242 120.57(1) is available only if there are disputed issues of
243 material fact that the department relied upon in reaching its
244 decision.
245 Section 4. Subsections (2) through (5) of section 497.157,
246 Florida Statutes, are renumbered as subsections (4) through (7),
247 respectively, new subsections (2), (3) and (8) are added to that
248 section, and present subsection (3) is amended, to read:
249 497.157 Unlicensed practice; remedies concerning
250 violations by unlicensed persons.-
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251 (2) A person may not be, act as, or advertise or hold
252 himself or herself out to be a funeral director, embalmer, or
253 direct disposer, unless he or she is currently licensed by the
254 department.
255 (3) A person may not be, act as, or advertise or hold
256 himself or herself out to be a preneed sales agent unless he or
257 she is currently licensed by the department and appointed by a
258 preneed main licensee for which they are executing preneed
259 contracts.
260 l2.l_-t3+ Where the department determines that an emergency
261 exists regarding any violation of this chapter by any unlicensed
262 person or entity, the department may issue and serve an
263 immediate final order upon such unlicensed person or entity, in
264 accordance withs. 120.569(2) (n). Such an immediate final order
265 may impose such prohibitions and requirements as are reasonably
266 necessary to protect the public health, safety, and welfare, and
267 shall be effective when served.
268 (a) For the purpose of enforcing such an immediate final
269 order, the department may file an emergency or other proceeding
270 in the circuit courts of the state seeking enforcement of the
271 immediate final order by injunctive or other order of the court.
272 The court shall issue its injunction or other order enforcing
273 the immediate final order pending administrative resolution of
274 the matter under subsection J..il-R+, unless the court determines
275 that such action would work a manifest injustice under the
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276 circumstances. Venue for judicial actions under this paragraph
277 shall be, at the election of the department, in the courts of
278 Leon County, or in a county where the respondent resides or has
279 a place of business.
280 (b) After serving an immediate final order to cease and
281 desist upon any person or entity, the department shall within 10
282 days issue and serve upon the same person or entity an
283 administrative complaint as set forth in subsection J..il-R+,
284 except that, absent order of a court to the contrary, the
285 immediate final order shall be effective throughout the pendency
286 of proceedings under subsection J..il-R-t.
287 (8) Any person who is not licensed under this chapter and
288 who engages in activity requiring licensure under this chapter
289 commits a felony of the third degree, punishable as provided in
290 s. 775.082, s. 775.083, ors. 775.084.
291 Section 5. Subsection (13) of section 552.081, Florida
292 Statutes, is amended to read:
293 552.081 Definitions.-As used in this chapter:
294 ( 13) "Two-component explosives" means any two inert
295 components which, when mixed, become capable of detonation by
296 any detonator a Ho. 6 blasting cap, and shall be classified as a
297 Class "A" explosive when so mixed.
298 Section 6. Subsection (2) of section 553.7921, Florida
299 Statutes, is renumbered as subsection (3), subsection (1) of
300 that section is amended, and a new subsection (2) is added to
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301 that section, to read:
302 553.7921 Fire alarm permit application to local
303 enforcement agency.-
304 (1) A contractor must file a Uniform Fire Alarm Permit
305 Application as provided in subsection~~ with the local
306 enforcement agency and must receive the fire alarm permit
307 before+
308 -f-a+ installing or replacing a fire alarm if the local
309 enforcement agency requires a plan review for the installation
310 or replacement+---e-r
311 (b) Repairing an existing alarm system that \1as previously
312 permitted by the local enforcement agency if the local
313 enforcement agency requires a fire alarm permit for the repair.
314 (2) If the local enforcement agency requires a fire alarm
315 permit to repair an existing alarm system that was previously
316 permitted by the local enforcement agency, a contractor may
317 begin work after filing a Uniform Fire Alarm Permit Application
318 as provided in subsection (3). A fire alarm repaired pursuant to
319 this subsection shall not be considered compliant until the
320 required permit has been issued and the local enforcement agency
321 has approved the repair.
322 Section 7. Subsection (1) of section 633.416, Florida
323 Statutes, is amended to read:
324 633.416 Firefighter employment and volunteer firefighter
325 service; saving clause.-
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326 (1) A fire service provider may not employ an individual
327 to:
328 (a} Extinguish fires for the protection of life or
329 property or to supervise individuals who perform such services
330 unless the individual holds a current and valid Firefighter
331 Certificate of Compliance. However, a person who is currently
332 serving as a volunteer firefighter and holds a volunteer
333 firefighter certificate of completion with a fire service
334 provider, who is then employed as a regular or permanent
335 firefighter, by such fire service provider, may function, for a
336 period of 1 year under the direct supervision of an individual
337 holding a valid firefighter certificate of compliance, in the
338 same capacity in which he or she acted as a volunteer
339 firefighter, provided that he or she has completed all training
340 required by the volunteer organization. Under no circumstance
341 can this period extend beyond 1 year either collectively or
342 consecutively from the start of employment to obtain a
343 Firefighter Certificate of Compliance; or
344 (b} Serve as the administrative and command head of a fire
345 service provider for a period in excess of 1 year unless the
346 individual holds a current and valid Firefighter Certificate of
347 Compliance or Special Certificate of Compliance.
348 Section 8. Section 843.08, Florida Statutes, is amended to
349 read:
350 843.08 False personation.-A person who falsely assumes or
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351 pretends to be a firefighter, a sheriff, an officer of the
352 Florida Highway Patrol, an officer of the Fish and Wildlife
353 Conservation Commission, an officer of the Department of
354 Environmental Protection, a fire or arson investigator of the
355 Department of Financial Services, an officer of the Department
356 of Financial Services, or any personnel or representative of the
357 Division of Investigative and Forensic Services, an officer of
358 the Department of Corrections, a correctional probation officer,
359 a deputy sheriff, a state attorney or an assistant state
360 attorney, a statewide prosecutor or an assistant statewide
361 prosecutor, a state attorney investigator, a coroner, a police
362 officer, a lottery special agent or lottery investigator, a
363 beverage enforcement agent, a school guardian as described ins.
364 30.15(1) (k), a security officer licensed under chapter 493, any
365 member of the Florida Commission on Offender Review or any
366 administrative aide or supervisor employed by the commission,
367 any personnel or representative of the Department of Law
368 Enforcement, or a federal law enforcement officer as defined in
369 s. 901.1505, and takes upon himself or herself to act as such,
370 or to require any other person to aid or assist him or her in a
371 matter pertaining to the duty of any such officer, commits a
372 felony of the third degree, punishable as provided ins.
373 775.082, s. 775.083, ors. 775.084. However, a person who
374 falsely personates any such officer during the course of the
375 commission of a felony commits a felony of the second degree,
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376 punishable as provided ins. 775.082, s. 775.083, ors. 775.084.
377 If the commission of the felony results in the death or personal
378 injury of another human being, the person commits a felony of
379 the first degree, punishable as provided ins. 775.082, s.
380 775.083, ors. 775.084.
381 Section 9. Paragraph (f) is added to subsection (11) of
382 section 943.045, Florida Statutes, to read:
383 943.045 Definitions; ss. 943.045-943.08.-The following
384 words and phrases as used in ss. 943.045-943.08 shall have the
385 following meanings:
386 (11) "Criminal justice agency" means:
387 (f) The investigations component of the Department of
388 Financial Services, which investigates the crimes of fraud and
389 official misconduct in all public assistance given to residents
390 of the state or provided to others by the state.
391 Section 10. This act shall take effect July 1, 2020.
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INSURANCE & BANKING SUBCOMMITTEE
HB 1077 by Rep. LaMarca
Department of Financial Services
AMENDMENT SUMMARY
January 21, 2020
Amendment 1 by Rep. Altman (Line 322): The amendment creates s. 633.217, F.S., relating
to firesafety inspectors, to prohibit:
• Any person from influencing a firesafety inspector by threatening, coercing, tricking, or
attempting to threaten, coerce, or trick, a firesafety inspector into violating, or offering to
compensate the firesafety inspector to induce a violation of, any provision of the Florida
Fire Prevention Code, a rule adopted by the State Fire Marshal, or ch. 633, F.S.
• A firesafety inspector from knowingly and willfully accepting an attempt by a person to
influence the firesafety inspector into violating any provision of the Florida Fire
Prevention Code, any rule adopted by the State Fire Marshal, or any provision of ch.
633, F.S.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1077 (2020)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Altman offered the following:
4
5 Amendment (with title amendment)
6 Between lines 321 and 322, insert:
7 Section 7. Section 633.217, Florida Statutes, is created
8 to read:
9 633.217 Influencing a firesafety inspector; prohibited
10 acts.-
11 (1) A person may not influence a firesafety inspector by:
12 (a) Threatening, coercing, tricking, or attempting to
13 threaten, coerce, or trick, the firesafety inspector into
14 violating any provision of the Florida Fire Prevention Code, any
15 rule adopted by the State Fire Marshal, or any provision of this
16 chapter.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1077 (2020)
Amendment No. 1
17 (b) Offering any compensation to the firesafety inspector
18 to induce a violation of the Florida Fire Prevention Code, any
19 rule adopted by the State Fire Marshal, or any provision of this
20 chapter.
21 (2) A firesafety inspector may not knowingly and willfully
22 accept an attempt by a person to influence the firesafety
23 inspector into violating any provision of the Florida Fire
24 Prevention Code, any rule adopted by the State Fire Marshal, or
25 any provision of this chapter.
26
27
28
29 T I T L E A ME N D ME N T
30 Remove line 31 and insert:
31 a local enforcement agency; creating s. 633.217, F.S.;
32 prohibiting certain actions to influence a firesafety inspector
33 into violating certain provisions; prohibiting a firesafety
34 inspector from knowingly and willfully accepting an attempt to
35 influence the firesafety inspector into violating certain
36 provisions; amending s. 633.416, F.S.;
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