Meeting Packet - Insurance & Banking Subcommittee, Commerce Committee (January 19, 2022)
Summary
Meeting packet of the Insurance & Banking Subcommittee of The Florida House of Representatives Commerce Committee for Wednesday, January 19, 2022, 3:30 PM, with Nick DiCeglie as Chair. The agenda lists PCS for HB 431 (Office of Financial Regulation), HB 453, HB 557, HB 749 Fraud Prevention and HB 959 Department of Financial Services. The staff analysis of PCS for HB 431 states that the bill permits a foreign national to appear through video conference at a hearing, provides the Office of Financial Regulation an additional 90 days to comply with the examination requirement if the federal regulator suspends or cancels a scheduled examination, and requires each director of a financial institution to review and sign a report of examination.
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Insurance & Banking
Subcommittee
Wednesday, January 19, 2022
3:30 PM - 5:30 PM
Morris Hall (17 HOB)
Meeting Packet
Chris Sprowls Nick DiCeglie
Speaker Chair
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Chris Sprowls Nick DiCeglie
Speaker Chair
Meeting Agenda
Wednesday, January 19, 2022
3:30 PM – 5:30 PM
Morris Hall (17 HOB)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following proposed committee substitute(s):
• PCS for HB 431 -- Office of Financial Regulation
Consideration of the following bill(s):
• HB 453 Records of Physical Examinations of Officers by Duggan
• HB 557 Fire Investigator Cancer Treatment Benefits by Salzman
• HB 749 Fraud Prevention by Clemons
• HB 959 Department of Financial Services by LaMarca
V. Closing Remarks
VI. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
PCS for HB 431
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for HB 431 Office of Financial Regulation
SPONSOR(S): Insurance & Banking Subcommittee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Insurance & Banking Subcommittee Hinshelwood Luczynski
SUMMARY ANALYSIS
The Office of Financial Regulation (OFR) regulates banks, credit unions, other financial institutions, finance
companies, and the securities industry. The OFR’s Division of Financial Institutions charters, licenses, and
regulates various entities that engage in financial institution business in Florida, in accordance with the financial
institutions codes and the rules promulgated thereunder. The bill makes the following changes to the financial
institutions codes:
Permits a foreign national to appear through video conference, rather than in person, at a hearing
regarding the foreign national’s proposal to have a controlling interest in a current or proposed state
bank or trust company.
Provides the OFR an additional 90 days to comply with the examination requirement for financial
institutions if the federal regulator suspends or cancels a scheduled examination.
Requires each director of a financial institution to review and sign a report of examination.
Clarifies provisions relating to a financial institution’s acquisition of another financial institution’s assets
or liabilities.
Amends the definition of “financial institution” for purposes of the Florida Control of Money Laundering
and Terrorist Financing in Financial Institutions Act.
Relocates and clarifies a provision relating to a credit union’s reporting of names and addresses of
newly elected or appointed officers and directors.
Permits OFR to approve a bank or trust company based on the intended “target market”; currently, OFR
must consider the geographic area from which the bank or trust company intends to draw deposits and
accounts.
Allows the OFR to waive the experience requirement for a proposed president or CEO of a new bank or
trust company pursuant to specified considerations about the person and the proposed institution.
Provides a process for persons to seek approval to own a controlling interest in a financial institution in
the event of inheritance of such controlling interest.
Defines “de novo branch” in the context of permissibility of interstate bank branching by state-chartered
banks.
Permits certain family trust companies to maintain a deposit account at an insured bank or credit union
located anywhere in the United States, regardless of whether the bank or credit union has a principal
office or branch in Florida.
Amends the deadline for a family trust company to file an annual renewal.
Permits certain international bank offices licensed by OFR to maintain required assets in an insured
bank located anywhere in the United States, not just those banks that are located in Florida.
Updates reference to the name of a list of international jurisdictions that have weak measures to combat
money laundering and terrorist financing, and requires a specified licensed entity to suspend its activities
relating to a jurisdiction on that list.
The bill has an indeterminate fiscal impact on state and local governments and the private sector.
The bill provides an effective date of July 1, 2022
This docum ent 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:
Background
The Office of Financial Regulation (OFR) regulates banks, credit unions, other financial institutions,
finance companies, and the securities industry.1 The OFR’s Division of Financial Institutions charters,
licenses, and regulates various entities that engage in financial institution business in Florida, in
accordance with the financial institutions codes and the rules promulgated thereunder.2 The specific
chapters under the financial institutions codes are:
Chapter 655, F.S. – Financial Institutions Generally
Chapter 657, F.S. – Credit Unions
Chapter 658, F.S. – Banks and Trust Companies
Chapter 660, F.S. – Trust Business
Chapter 662, F.S. – Family Trust Companies
Chapter 663, F.S. – International Banking
Chapter 665, F.S. – Capital Stock Associations
Chapter 667, F.S. – Savings Banks
As of June 30, 2020, the Division of Financial Institutions regulates 197 financial institutions: 3
69 banks
66 credit unions
21 international bank offices
15 trust companies
16 family trust companies
10 qualified limited service affiliates
Formation and Regulation of a Florida-Chartered Bank or Trust Company
Under the dual banking system in the United States, banks may be chartered under either state or
federal law:
State-chartered banks are chartered under the laws of the state in which the bank is
headquartered. State-chartered banks have both a state regulator, which for banks chartered by
the state of Florida is the OFR, and a federal regulator. The primary federal regulator for state
banks that are members of the Federal Reserve System is the Board of Governors of the
Federal Reserve System (FRB), and the primary federal regulator for non-member state banks
is the Federal Deposit Insurance Corporation (FDIC). 4
National banks are chartered by the Office of the Comptroller of the Currency (OCC) under the
National Bank Act.5 As such, the OCC is the primary federal regulator for national banks. 6
A trust company is a business organization, other than a bank, which is authorized by lawful authority
to engage in the business of acting as a fiduciary.7 Trust companies are chartered by states, and the
state regulator for trust companies chartered by the state of Florida is the OFR. Trust companies do not
have a federal regulator.
1 S. 20.121(3)(a)2., F.S.
2 Chs. 655, 657, 658, 660, 662, 663, 665, and 667, F.S.; chs. 69U-100 through 69U-162, F.A.C.
3 Office of Financial Regulation, Fast Facts (2021 ed.), https://flofr.gov/sitePages/documents/FastFacts.pdf.
4 12 U.S.C. § 1813(q).
5 12 U.S.C. § 38.
6 12 U.S.C. § 1813(q).
7 S. 658.12(20) and (21), F.S.
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In order to apply for authority to organize a new state-chartered bank or trust company, the proposed
directors must file a written application with the OFR. 8 The application includes such information as the
name, residence, and occupation of each proposed director; the name and residence of the proposed
president and chief executive officer, if known; the proposed corporate name; the community, including
the street and number, if available, where the principal office of the proposed bank is to be located; the
total initial capital; the proposed business plan; and pro forma financial statements.9
The OFR utilizes the information contained in the application in order to make an investigation of:10
1) The character, reputation, financial standing, business experience, and business qualifications
of the proposed officers and directors.
2) The need for bank or trust facilities or additional bank or trust facilities, as the case may be, in
the primary service area11 where the proposed bank or trust company is to be located.
3) The ability of the primary service area to support the proposed bank or trust company and all
other existing bank or trust facilities in the primary service area.
The OFR evaluates the viability of the business plan in light of current conditions in the primary service
area and the metropolitan statistical area or county, as well as in the industry in general.12
After making such investigation, the OFR must approve an application if it finds the following: 13
1) Local conditions indicate reasonable promise of successful operation for the proposed state
bank or trust company.
2) The proposed capitalization is adequate, but at least $8 million for a bank and at least $3 million
for a trust company.
3) The proposed capital structure is in such form as the OFR may require, subject to certain
minimum requirements.
4) Regarding officers and directors:
a. The proposed officers have sufficient financial institution experience, ability, standing,
and reputation and the proposed directors have sufficient business experience, ability,
standing, and reputation to indicate reasonable promise of successful operation.
b. None of the proposed officers or directors has been convicted of, or pled guilty or nolo
contendere to, any violation of s. 655.50, F.S., relating to the control of money
laundering and terrorist financing; ch. 896, F.S., relating to offenses related to financial
institutions; or similar state or federal law.
c. At least two of the proposed directors who are not also proposed officers have had at
least one year of direct experience as an executive officer, regulator, or director of a
financial institution within the five years before the date of the application. However, if
the applicant demonstrates that at least one of the proposed directors has very
substantial experience as an executive officer, director, or regulator of a financial
institution more than five years before the date of the application, the OFR may allow the
applicant to have only one director who has direct financial institution experience within
the last five years.
d. The proposed president or chief executive officer must have had at least one year of
direct experience as an executive officer, director, or regulator of a financial institution
within the last five years.
5) The corporate name of the proposed state bank is approved by the OFR.
6) Provision has been made for suitable quarters at the location in the application.
8 S. 658.19(1), F.S.; rule 69U-105.202(1), F.A.C..
9 Id.
10 S. 658.20(1), F.S.
11 “Primary service area” is defined by agency rule as “the smallest geographical area from which the proposed state
bank, savings bank or association expects to draw approximately seventy -five percent of its deposits. Said term also
means the smallest geographical area from which a state trust company expects to draw approximately 75 percent of the
asset value of its fiduciary accounts. It should be drawn around a natural customer base and should not be unrealistically
delineated to exclude competing financial institutions or to include areas of concentrated population.” R. 69U-105.001(9),
F.A.C.
12 Office of Financial Regulation, Agency Analysis of 2022 Senate Bill 1680 (Jan. 12, 2022).
13 s. 658.21, F.S.
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Due to technological advancements, the banking industry has become increasingly interconnected and
more digitally driven; many customers no longer engage with their bank exclusively through brick and
mortar branches.14 In order to remain competitive, many financial institutions have adopted online
banking platforms and apps.15 Despite the advent of online banking, the financial institutions codes
remain premised on a brick and mortar centric business plan.16
In recent years, the banking industry both in Florida and nationally has consolidated. 17 As mergers and
acquisitions occur in the banking industry, executives are commonly subjected to non-compete
agreements that may last several years.18 Because a proposed president or chief executive officer
must have requisite experience within a five-year time frame, the current statutory timeframe narrows
the pool of otherwise qualified potential executive officers who may serve in that capacity at a new
Florida-chartered bank.19 Groups of individuals seeking to organize a new bank have found the five-
year requirement an impediment to finding quality president or CEO candidates. 20 This timeframe is not
required for nationally chartered banks.21 Further, for existing Florida-chartered banks, the OFR may
waive the timeframe after considering the overall experience and expertise of the proposed officer and
the condition of the bank or trust company.22
Interstate Bank Branching by State-Chartered Banks
A Florida-chartered bank may establish and maintain a de novo branch (new branch) or acquire a
branch in a state other than Florida. To do so, the Florida-chartered bank must submit an application
and fee to the OFR and receive the OFR’s approval.23
A bank chartered by a state other than Florida may establish and maintain a de novo branch or acquire
a branch in Florida upon compliance with Florida’s limited liability company or corporations laws
relating to doing business in Florida as a foreign business entity.24 No application is filed with the OFR.
Currently, Florida law does not contain a definition for “de novo branch”. Under FDIC regulations, “de
novo branch” is defined25 as a branch of a state bank which:
1) Is originally established by the State bank as a branch; and
2) Does not become a branch of such bank as a result of:
a. The acquisition by the bank of an insured depository institution or a branch of an insured
depository institution; or
b. The conversion, merger, or consolidation of any such institution or branch.
Acquisition of Control of a Florida-Chartered Bank or Trust Company
A person or group of persons is considered to have a controlling interest over a state bank or state trust
company if any of the following are true:26
14 Office of Financial Regulation, supra note 12.
15 Id.
16 Id.
17 Id.
18 Id.
19 Id.
20 Id.
21 Id.
22 “The president, chief executive officer, or any other person, regardless of title, who has equivalent rank or leads the
overall operations of [an existing] bank or trust company must have had at least 1 year of direct experience as an
executive officer, director, or regulator of a financial institution within the last 5 years. This requirement may be waived by
the office after considering the overall experience and expertise of the proposed officer and the condition of the bank or
trust company, as reflected in the most recent regulatory examination report and other available data.” S. 658.33(5), F.S.
(emphasis added).
23 S. 658.2953(11)(a) and (b), F.S.
24 S. 658.2953(11)(c), F.S.
25 12 U.S.C. § 1828(d)(4)(C).
26 Ss. 658.27(2) and 658.28(2), F.S.
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They directly or indirectly own, control, or have the power to vote 25 percent or more of any
class of voting securities of the institution.
They control, in any manner, the election of a majority of the directors, trustees, or other
governing body of the institution; they own, control, or have the power to vote 10 percent or
more of any class of voting securities and exercise a controlling influence over management or
policies of the institution.
The OFR determines, after notice and opportunity for a hearing, that the person or persons
directly or indirectly exercises a controlling influence.
A person or group of persons who proposes to purchase or acquire a controlling interest in a state bank
or trust company may not acquire such an interest until they have submitted an application to the OFR
and have been approved.27 In order to be approved, an applicant must have the reputation, character,
experience, and financial responsibility to control and operate the bank or trust company in a legal and
proper manner and in such a way that would not jeopardize the interests of the stockholders,
depositors, and creditors of the institution, or the public.28 Conviction for certain crimes, such as money
laundering, is a disqualifier.29
If a foreign national proposes to own or control 10 percent or more of a class of voting securities of a
new state bank or trust company, or proposes to acquire a controlling interest in an existing state bank
or trust company, the OFR must conduct a public hearing at which the foreign national must appear in
person.30 The failure of a foreign national to appear is grounds for denial. 31
In certain situations, the presumption of control may be rebutted. A person or group of persons who
proposes to own, control, or have the power to vote 10 percent or more of any class of voting securities
and exercise a controlling influence over management or policies of the institution may rebut the
presumption of control by notifying the OFR of the proposal and presenting information rebutting control
at an informal conference.32 If, after the conference, the OFR determines that such person or group of
persons will exercise a controlling influence over the bank, such person or persons will be required to
file an application for change of control.33
Florida law does not currently contemplate the acquisition of a controlling interest without prior
approval.34 However, not every such acquisition is planned. 35 Shares may pass to an unapproved
owner by operation of law, such as by way of inheritance. 36 For example, if a controlling shareholder
dies and their shares pass to an unapproved beneficiary, the unapproved beneficiary commits an
unavoidable, technical violation of statute upon becoming the owner of the shares. 37
Formation and Regulation of Credit Unions
Like banks, credit unions accept deposits and make loans, and can be state-chartered or federally-
chartered:
State-chartered credit unions may be formed under the Florida Credit Union Act (FCUA), which
became law in 1980.38 The FCUA provides that “[a] credit union is a cooperative, nonprofit
association, organized . . . for the purposes of encouraging thrift among its members, creating
sources of credit at fair and reasonable rates of interest, and providing an opportunity for its
members to use and control their resources on a democratic basis in order to improve their
27 S. 658.28(1), F.S.
28 S. 658.28(1)(b), F.S.
29 S. 658.28(1)(c), F.S.
30 S. 120.80(3)(a)4., F.S.
31 Id.
32 Ss. 658.27(2)(c) and 658.28(3), F.S.
33 S. 658.28(3), F.S.
34 Office of Financial Regulation, supra note 12.
35 Id.
36 Id.
37 Id.
38 Ch. 80-258, Laws of Fla.; codified at ch. 657, F.S.
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economic and social condition.”39 State-chartered credit unions have both a state regulator, the
OFR, and a federal regulator, the National Credit Union Association (NCUA).
Federally-chartered credit unions are chartered under the Federal Credit Union Act of 193440
and are regulated by the NCUA.
For Florida-chartered credit unions, the executive officers are elected by the board of directors at the
organizational meeting, and new officers may be elected at each annual meeting of the board of
directors.41 The terms of executive officers are one year, or until their successors are chosen and have
been duly qualified.42 Within 30 days after election or appointment, a record of the names and
addresses of the members of the board, members of committees, all officers of the credit union, and
the credit manager must be filed with the OFR on forms prescribed by the Financial Services
Commission (commission).43
Formation and Regulation of Family Trust Companies
A family trust company is a corporation or limited liability company that is exclusively owned by family
members, acts as a fiduciary to serve family members, and generally may not serve as a fiduciary for a
person that is not a family.44 Family trust companies are usually formed to manage the wealth of high
net-worth families in lieu of traditional individual or institutional trustee arrangements for a variety of
personal, investment, regulatory, and tax reasons.
There are three types of family trust companies authorized under Florida law:
Licensed family trust companies: A family trust company may elect to be a licensed family trust
company if the company desires to be subject to the regulatory oversight of the OFR, and it
must file an application for licensure with the OFR.45 With respect to a licensed family trust
company, the OFR is responsible for regulating, supervising, and examining the company. 46
Foreign licensed family trust company: A foreign licensed family trust company is licensed by
and has its principal place of business in a state other than Florida, is operated in accordance
with applicable laws of its licensing state, is subject to supervision by the state in which the
principal place of business is located, and is not a subsidiary of a foreign country. 47 A foreign
licensed family trust company must register with the OFR before beginning operations in this
state.48 The OFR’s oversight role is limited to ensuring that fiduciary services provided by the
foreign licensed family trust company are restricted to family members and authorized related
interests and not to the general public.49
Registered family trust company: A family trust company that is not a foreign licensed family
trust company and does not apply to become a licensed family trust company must register with
the OFR before beginning operations in this state.50 The OFR’s oversight role is limited to
ensuring that fiduciary services provided by the registered family trust company are restricted to
family members and authorized related interests and not to the general public.51
39 s. 657.003, F.S.
40 Pub. L. 73-467, codified at 12 U.S.C. § 1751 et seq.
41 S. 657.022(1), F.S.
42 S. 657.022(2), F.S.
43 S. 657.028(6), F.S. The commission is composed of the Governor, Attorney General, Chief Financial Officer, and
Commissioner of Agriculture. S. 20.121(3), F.S. The commission members are the OFR’s agency head for the purpose of
rulemaking. S. 20.121(3)(c), F.S.
44 S. 662.111(12), F.S.
45 Ss. 662.102(2) and 662.121, F.S.
46 S. 662.102(3)(a), F.S.
47 S. 662.111(15)(c), F.S.
48 S. 662.122(2), F.S.
49 S. 662.102(3)(b), F.S.
50 S. 662.122(1), F.S.
51 S. 662.102(3)(b), F.S.
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All three types of family trust companies must maintain a deposit account with a state-chartered or
national financial institution that has a principal or branch office in this state.52
Within 45 days after the end of each calendar year, all three types of family trust companies are
required to file an annual renewal application.53 Currently, the timing of renewal does not account for
when the initial application was filed. Thus, a family trust company may have to submit a renewal
application shortly after becoming licensed or registered in this state.
Formation and Regulation of International Banking Offices
One type of financial institution regulated by the OFR is an international banking corporation (IBC) that
transacts business in Florida. An IBC is “a banking corporation organized and licensed under the laws
of a foreign country.”54 The OFR does not regulate the IBC, i.e., the home-country depository institution,
itself but rather the offices that the IBC establishes in Florida. Florida’s regulation of IBC offices are
designed to provide for appropriate supervision and regulatory oversight to ensure that financial
services activities of IBCs in this state are conducted responsibly and in a safe and sound manner.55
IBCs may operate in Florida through a variety of business models, which must be licensed by the
OFR56 and include the following:
International representative offices - Permissible activities include:57
o Promoting or assisting the deposit-taking, lending, or other financial or banking activities
of an IBC;
o Serving as a liaison in Florida between an IBC and its existing and potential customers;
o Soliciting business for the IBC and its subsidiaries and affiliates;
o Providing information to customers concerning their accounts;
o Answering questions;
o Receiving applications for extensions of credit and other banking services;
o Transmitting documents on behalf of customers; and
o Making arrangements for customers to transact business on their accounts.
However, a representative office may not conduct any banking or trust business in Florida.58
International administrative offices - Permissible activities include:59
o Administering personnel and operations;
o Engaging in data processing or recordkeeping activities; and
o Negotiating, approving, or servicing loans or extensions of credit and investments.
Additionally, this type of office may engage in any activities permissible for an international
representative office.60
International bank agencies - Permissible activities include: 61
o Making loans, extensions of credit, or investments;
o Acting as custodian;
o Furnishing investment management and investment advisory services to nonresident
persons whose principal places of business or domicile are outside the United States
and to resident persons with respect to international, foreign, or domestic investments;
o Receiving specified types of deposits; and
o With prior authorization from the OFR, accepting appointments as trustee by nonresident
persons and exercising trust powers with respect to such fiduciary accounts.
Additionally, this type of office may engage in any activities permissible for an international
administrative office or international representative office.62
52 S. 662.1225(1)(d) and (2)(d), F.S.
53 S. 662.128(1), F.S.
54 S. 663.01(6), F.S.
55 S. 663.001(2), F.S.
56 Ss. 663.04 and 663.05, F.S.
57 S. 663.062, F.S.
58 Id.
59 S. 663.063, F.S.
60 S. 663.063(2), F.S.
61 S. 663.061, F.S.; Rule 69U-140.008, F.A.C.
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International branches - An international branch has the same rights and privileges as a
federally licensed international branch.63 Additionally, this type of office may engage in any
activities permissible for an international bank agency, international administrative office, or
international representative office.64
If an IBC desires to maintain any of the above offices in this state, the IBC is required to meet minimum
licensure requirements, and its offices in Florida are subject to the examination and enforcement
authority of the OFR. The OFR may not issue a license to an IBC for one of the above offices unless
the IBC: 65
In the case of an international bank agency or branch, holds an unrestricted license to receive
deposits from the general public in the foreign country under the laws of which the IBC is
organized and chartered;
Has been authorized by the foreign country's bank regulatory authority to establish the
proposed international bank office;
Is adequately supervised by the central bank or bank regulatory agency in the foreign country in
which the IBC is organized and chartered; and
Meets minimum capital requirements.
International bank agencies and international branches are required to maintain dollar deposits or
investment securities with one or more banks in this state equal to the greater of:66
$4 million dollars; or
7 percent of the total liabilities of the international bank agency or international branch excluding
accrued expenses and amounts due and other liabilities to affiliated branches, offices, agencies,
or entities.
Formation and Regulation of Florida Offices Performing Services for an International Trust Entity
An international trust entity is an international trust company or organization, or any similar business
entity, or an affiliated or subsidiary entity that is licensed, chartered, or similarly permitted to conduct
trust business in a foreign country or countries under the laws where such entity is organized and
supervised.67 A qualified limited service affiliate is a person or entity that is qualified to perform
specified permissible activities related to or for the benefit of one or more affiliated international trust
entities.68 Such permissible activities include:69
1) Marketing and liaison services related to or for the benefit of the affiliated international trust
entities, directed exclusively at professionals and current or prospective nonresident clients of
an affiliated international trust entity;
2) Advertising and marketing at trade, industry, or professional events;
3) Transmission of documents between the international trust entity and its current or prospective
clients or a designee of such clients; and
4) Transmission of information about the trust or trust holdings of current clients between current
clients or their designees and the international trust entity.
A qualified limited service affiliate is prohibited from engaging in the following activities:70
1) Advertising and marketing related to or for the benefit of the international trust entity which are
directed to the general public;
2) Acting as a fiduciary, including, but not limited to, accepting the fiduciary appointment, executing
the fiduciary documents that create the fiduciary relationship, or making discretionary decisions
regarding the investment or distribution of fiduciary accounts;
62 S. 663.061(1), F.S.
63 S. 663.064(2), F.S.
64 S. 663.064(3), F.S.
65 Ss. 663.05(8) and 663.055(1)-(2), F.S.
66 S. 663.07, F.S.
67 S. 663.530(1)(c), F.S.
68 S. 663.530(1)(f), F.S.
69 S. 663.531(1), F.S.
70 S. 663.531(2), F.S.
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3) Accepting custody of any trust property or any other good, asset, or thing of value on behalf of
the affiliated international trust entity, its subsidiaries or affiliates, or subsidiaries and affiliates of
the qualified limited service affiliate;
4) Soliciting business within this state from the general public related to or for the benefit of an
affiliated international trust entity;
5) Adding a director, an executive officer, a principal shareholder, a manager, a managing
member, or an equivalent position to the qualified limited service affiliate without prior written
notification to the OFR;
6) Commencing services for an international trust entity without complying with applicable
requirements;
7) Providing services for any international trust entity that is in bankruptcy, conservatorship,
receivership, liquidation, or a similar status under the laws of any country; or
8) Otherwise conducting banking or trust business.
In order to qualify as a qualified limited service affiliate, a proposed qualified limited service affiliate
must file a written notice that includes the name under which the proposed qualified limited service
affiliate will conduct business in this state; a copy of the articles of incorporation or articles of
organization, or the equivalent, of the proposed qualified limited service affiliate; the physical address
where the proposed qualified limited service affiliate will conduct business; the mailing address of the
proposed qualified limited service affiliate; the name and biographical information of each director,
executive officer, manager, managing member, or equivalent position of the proposed qualified limited
service affiliate; the number of officers and employees of the proposed qualified limited service affiliate;
a detailed list and description of the activities to be conducted by the proposed qualified limited service
affiliate; background information for certain individuals; information related to each international trust
entity for which the proposed qualified limited service affiliate will provide services; and other
information as the office reasonably requires.71 Additionally, the notice to the OFR must include: 72
A declaration under penalty of perjury signed by the executive officer, manager, or managing
member of the proposed qualified limited service affiliate that, to the best of his or her
knowledge the jurisdiction of the international trust entity or its offices, subsidiaries, or any
affiliates that are directly involved in or facilitate the financial services functions, banking, or
fiduciary activities of the international trust entity is not listed on the Financial Action Task Force
Public Statement or on its list of jurisdictions with deficiencies in anti-money laundering or
counterterrorism.
Proof that the jurisdictions where the international trust entity or its offices, subsidiaries, or any
affiliates that are directly involved in or that facilitate the financial services functions, banking, or
fiduciary activities of the international trust entity are not listed on the Financial Action Task
Force Public Statement or on its list of jurisdictions with deficiencies in anti-money laundering
or counterterrorism.
Under current law, the OFR does not have a means of prohibiting the qualified limited service affiliate
from providing services to an international trust entity in a jurisdiction that is included on the Financial
Action Task Force's list of international jurisdictions that have weak measures to combat money
laundering and terrorist financing.
Examination of Florida Financial Institutions
The OFR is required to conduct an examination of the condition of each state financial institution at
least every 18 months, though the OFR may conduct more frequent examinations based upon the risk
profile of the financial institution, prior examination results, or significant changes in the institution or its
operations.73 For state financial institutions that have a federal regulator, the OFR is permitted to accept
an examination performed by the federal regulator or to conduct a joint or concurrent examination of
the state financial institution with the federal regulator.74 The result is that the OFR may alternate with
71 S. 663.532(1), F.S.
72 Id.
73 S. 655.045(1), F.S.
74 S. 655.045(1)(a), F.S.
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the federal regulator such that, while the state financial institution is examined at least every 18 months,
the OFR itself performs the examination every 36 months.
Such alternating, joint, or concurrent examination reduces regulatory burden on the financial institutions
subject to dual regulation, and the OFR works in coordination with these federal agencies when
possible.75 Many of these federal regulators have policies in place authorizing them to alter examination
schedules based on emergency conditions, for example following a major disaster or emergency.76
Many of the documents which the OFR examiners must analyze are kept in paper files. 77 The lack of
digital copies and the confidential nature of these documents often necessitates that examiners be
physically present in the financial institution to perform the examination.78 Most recently, the COVID-19
pandemic up-ended examination schedules; however, Florida examiners commonly face obstacles
when attempting to perform in-person examinations during hurricane season, where weather hazards
and property damage create an unsafe environment.79 Unlike the federal regulators, the OFR does not
have a method by which it can delay an examination due to such hazards. 80
After the examination of the state financial institution is complete, a copy of the report of examination
must be furnished to the entity examined and must be presented to the board of directors at its next
meeting.
Acquisition of Assets or Liabilities of a Financial Institution
Current law requires the OFR’s approval for a financial entity to acquire all or substantially all of the
assets of, or assume all or any part of the liabilities of, any other financial institution.81 A mutual
financial institution may not sell all or substantially all of its assets to a stock financial institution until it
has first converted into a capital stock financial institution.82 These provisions of current law have
generated confusion for the industry, as the term “substantially all” is not defined.83 The OFR regularly
receives questions from industry participants regarding the application of these provisions; financial
institutions have asked what percentage meets the threshold of “substantially all,” and how to calculate
that percentage.84
Florida Control of Money Laundering and Terrorist Financing in Financial Institutions Act (Act)
The Act is found within the financial institutions codes in s. 655.50, F.S. The purpose of the Act is to
require the submission to the OFR of certain reports and the maintenance of certain records of
customers, accounts, and transactions involving currency or monetary instruments or suspicious
activities if such reports and records deter using financial institutions to conceal, move, or provide
proceeds obtained from or intended for criminal or terrorist activities and if such reports and records
have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. 85 The Act
applies to financial institutions as defined under the federal anti-money laundering laws.86 The federal
definition of “financial institution” is very broad and encompasses entities beyond the scope of those
regulated under the financial institutions codes. For example, the federal definition includes entities not
regulated by the OFR at all, such as a travel agency, a casino, and the United States Postal Service. 87
The federal definition also includes entities which the OFR does regulate but does so under different
chapters of law, not the financial institutions codes, such as a broker or dealer in securities (regulated
75 Office of Financial Regulation, supra note 12.
76 Id.
77 Id.
78 Id.
79 Id.
80 Id.
81 S. 655.414, F.S.
82 S. 655.414(6), F.S.
83 Office of Financial Regulation, supra note 12.
84 Id.
85 S. 655.50(2), F.S.
86 S. 655.50(3)(c), F.S.; 31 U.S.C. § 5312.
87 31 U.S.C. § 5312(a)(2)(Q), (V), and (X).
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by the OFR under ch. 517, F.S.) and various money services businesses (regulated by the OFR under
ch. 560, F.S.).88 Chapter 560, F.S., relating to money services businesses, contains a statute similar to
the Act.89 Thus, both statutes may be read to apply to these entities, which may generate confusion for
the industry.90
Effect of the Bill
Examinations of Florida Financial Institutions (Section 4)
The bill provides the OFR an additional 90 days to comply with the examination requirement for state
financial institutions if the federal regulator suspends or cancels a previously scheduled examination. In
such case, the requirement is deemed met by the federal agency conducting the examination or upon
the OFR conducting the examination instead.
The bill clarifies language within the requirement that the report of examination be furnished to the
entity examined by replacing the term “entity” with “state financial institution”. Additionally, the bill
requires that each director review the report and acknowledge receipt of the report and such review by
signing and dating the prescribed signature page of the report and returning a copy of the signed page
to the OFR.
Acquisition of Assets or Liabilities of a Financial Institution (Section 5)
The bill amends provisions relating to the acquisition of assets and liabilities such that OFR’s approval
is needed if a financial institution acquires 50 percent or more of the assets of, liabilities of, or a
combination of assets and liabilities of, another financial institution. The bill provides that a mutual
financial institution may not sell 50 percent or more of its assets to a stock financial institution until it
has first converted to a capital stock financial institution. These provisions will no longer include the
ambiguous phrase “substantially all”. The bill also provides that the percentages of assets or liabilities
must be calculated based on the most recent quarterly reporting date.
Florida Control of Money Laundering and Terrorist Financing in Financial Institutions Act (Section 6)
The bill amends the definition of “financial institution” for purposes of the Florida Control of Money
Laundering and Terrorist Financing in Financial Institutions Act by pointing to the definition of “financial
institution in s. 655.001, F.S., and removing OFR-regulated entities whose permissible activities do not
involve monetary transactions.
Credit Union Reporting of Elected or Appointed Officers, Directors, Etc. (Sections 7 and 8)
The bill relocates and clarifies a provision relating to a credit union’s reporting of names and addresses
of newly elected or appointed officers, directors, etc. Specifically, the bill provides that, within the 30
days following the annual meeting or any other meeting at which any director, officer, member of the
supervisory or audit committee, member of the credit committee, or credit manager is elected or
appointed, the credit union must submit to the OFR the names and residence addresses of the elected
or appointed person or persons on a form adopted by the commission and provided by the OFR.
Target Market (Sections 9, 10, and 11)
The bill introduces the concept of a “target market” for a proposed state bank or trust company and
defines “target market” as the group of clients or potential clients from whom:
(a) A bank or proposed bank expects to draw deposits and to whom the bank or proposed bank
focuses or intends to focus its marketing efforts; or
88 31 U.S.C. § 5312(a)(2)(H), (J), (K), (R).
89 S. 560.123, F.S.
90 Office of Financial Regulation, supra note 12.
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(b) A trust company, a trust department of a bank or association, a proposed trust company, or
a proposed trust department of a bank or association expects to draw its fiduciary accounts
and to whom the trust company, the trust department of a bank or association, the proposed
trust company, or the proposed trust department of a bank or association focuses or intends
to focus its marketing efforts.
In addition to the considerations under current law that are based largely on a geographic location, the
bill allows the OFR to evaluate the following considerations with regard to approving an application for a
new state bank or trust company:
The need for the target market that the proposed state bank or trust company intends to
engage with in business;
The ability of the target market to support the proposed state bank or trust company and all
other existing bank or trust facilities that serve the same target market; and
Whether the target market conditions indicate reasonable promise of successful operations for
the proposed state bank or trust company.
Proposed President or Chief Executive Officer of a New State-Chartered Bank or Trust Company
(Section 11)
The bill allows the OFR to waive the experience requirement for a proposed president or CEO of a new
state bank or trust company after considering:
1) The adequacy of the overall experience and expertise of the proposed president or chief
executive officer;
2) The likelihood of successful operation of the proposed state bank or trust company;
3) The adequacy of the proposed capitalization;
4) The proposed capital structure;
5) The experience of the other proposed officers and directors; and
6) Any other relevant data or information.
Amending this requirement will allow organizers of new state banks the ability to attract higher quality
president or CEO candidates and, therefore, make new bank formations more feasible in today’s
competitive business environment.91
Acquisition of Control of a Florida-Chartered Bank or Trust Company (Sections 1 and 12)
When a hearing is required regarding a foreign national’s proposal to own or control 10 percent or more
of a class of voting securities of a new state bank or trust company, or on a foreign national’s proposal
to acquire a controlling interest in an existing state bank or trust company, the bill permits the foreign
national to participate through video conferencing in lieu of appearing in person.
The bill provides a process for seeking approval to own a controlling interest in a financial institution in
the event of inheritance of such controlling interest. If a person or a group of persons, directly or
indirectly, acquires a controlling interest in a state bank or state trust company, through probate or trust,
the person or group of persons must notify the OFR within 90 days after acquiring such an interest.
Such an interest does not give rise to a presumption of control until the person or group of persons
votes the shares or the OFR has issued a certificate of approval in response to an application for
change in control.
Interstate Bank Branching by State-Chartered Banks (Section 13)
The bill defines “de novo branch” for purposes of Florida law regarding interstate bank branching by
Florida-chartered banks and banks chartered by other states. The definition is based on the definition
for “de novo branch” within FDIC regulations.
91 Office of Financial Regulation, supra note 12.
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The bill amends the catchline of a subsection of the statute in order to clarify application of the
subsection. The subsection relates to interstate bank branching by both Florida-chartered banks and
banks chartered by other states. The catchline currently uses the term “state bank”, which is defined to
mean a Florida-chartered bank; the term does not capture banks chartered by other states.
Family Trust Companies (Sections 14 and 15)
The bill expands the banking options of a registered family trust company and a licensed family trust
company by allowing these entities to maintain a deposit account at an insured bank or credit union
located anywhere in the United States, regardless of whether the bank or credit union has a principal
office or branch in Florida.
The bill amends the deadline for a family trust company to file an annual renewal such that the renewal
application is due no later than 45 days after the anniversary of the filing of either the initial application
or the prior year’s renewal application.
Location of an International Bank Agency’s or International Branch’s Required Minimum Assets
(Section 16)
The bill expands the banking options for an international bank agency or an international branch
regarding the location of required minimum dollar deposits or investment securities. The bill permits
these entities to maintain the required assets in an insured bank located anywhere in the United States,
not just those banks that are located in Florida.
Qualified Limited Service Affiliates (Section 17)
The bill updates two references to the name of a list of international jurisdictions that have weak
measures to combat money laundering and terrorist financing. The bill also requires a qualified limited
service affiliate to suspend its activities relating to an international trust entity in a jurisdiction on that
list. Such a suspension must remain in effect until the jurisdiction is removed from the list.
Conforming Changes (Sections 2, 3, 18)
The bill conforms cross-references to reflect amendments to the definitions in s. 658.12, F.S.
Reenactment (Section 19)
The bill reenacts s. 658.165, F.S., for the purpose of incorporating the amendment made by the bill to
s. 658.20, F.S.
Effective Date (Section 20)
The bill provides an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1. Amends s. 120.80, F.S., relating to exceptions and special requirements; agencies.
Section 2. Amends s. 475.01, F.S., relating to definitions.
Section 3. Amends s. 518.117, F.S., relating to permissible investments of fiduciary funds.
Section 4. Amends s. 655.045, F.S., relating to examinations, reports, and internal audits; penalty.
Section 5. Amends s. 655.414, F.S., relating to acquisition of assets; assumption of liabilities.
Section 6. Amends s. 655.50, F.S., relating to Florida Control of Money Laundering and Terrorist
Financing in Financial Institutions Act.
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Section 7. Amends s. 657.021, F.S., relating to board of directors; executive committee.
Section 8. Amends s. 657.028, F.S., relating to activities of directors, officers, committee members,
employees, and agents.
Section 9. Amends s. 658.12, F.S., relating to definitions.
Section 10. Amends s. 658.20, F.S., relating to investigation by office.
Section 11. Amends s. 658.21, F.S., relating to approval of application; findings required.
Section 12. Amends s. 658.28, F.S., relating to acquisition of control of a bank or trust company.
Section 13. Amends s. 658.2953, F.S., relating to interstate branching.
Section 14. Amends s. 662.1225, F.S., relating to Requirements for a family trust company, licensed
family trust company, or foreign licensed family trust company.
Section 15. Amends s. 662.128, F.S., relating to annual renewal.
Section 16. Amends s. 663.07, F.S., relating to asset maintenance or capital equivalency.
Section 17. Amends s. 663.532, F.S., relating to qualification.
Section 18. Amends s. 736.0802, F.S., relating to duty of loyalty.
Section 19. Reenacts s. 658.165, F.S., relating to banker's banks; formation; applicability of financial
institutions codes; exceptions.
Section 20. Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill may encourage and attract the formation of new financial institutions as Florida-chartered
institutions, in which case the OFR’s revenues would be positively affected through application fees
and annual assessments. However, the sum of increased revenue is indeterminate.
2. Expenditures:
The bill may encourage and attract the formation of new financial institutions as Florida-chartered
institutions, in which case the OFR’s expenditures would increase for the cost of regulation and
oversight of such new institutions. However, the sum of increased expenditures is indeterminate.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
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C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may encourage and attract the formation of new financial institutions as Florida-chartered
institutions, in which case the bill would have a positive impact on investment, employment, economic
growth, and consumer access to financial services. However, the impact to the private sector is
indeterminate.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
Section 7 requires the commission to adopt a form for a credit union to report to OFR the names and
residence addresses of persons elected or appointed at the credit union’s annual meeting.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
PCS for HB 431 2022
1 A bill to be entitled
2 An act relating to financial institutions; amending s.
3 120.80, F.S.; providing that the failure of foreign
4 nationals to participate through video conference in
5 certain hearings is grounds for denial of certain
6 applications; amending s. 475.01, F.S.; conforming a
7 cross-reference; amending s. 518.117, F.S.; conforming
8 a cross-reference; amending s. 655.045, F.S.; revising
9 the circumstances under which the Office of Financial
10 Regulation is required to conduct certain
11 examinations; authorizing the office to delay
12 examinations of state financial institutions under
13 certain circumstances; specifying that examination
14 requirements are deemed met under certain
15 circumstances; requiring copies of certain examination
16 reports to be furnished to state financial
17 institutions; requiring certain directors to review
18 such reports and acknowledge receipt of such reports;
19 amending s. 655.414, F.S.; revising the entities that
20 may acquire liabilities and assets, and the
21 liabilities and assets that may be acquired, according
22 to certain procedures, conditions, and limitations;
23 specifying the basis for calculating percentages of
24 assets or liabilities; revising the assets a mutual
25 financial institution may sell, subject to certain
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26 conditions; amending s. 655.50, F.S.; revising the
27 definition of the term "financial institution";
28 amending s. 657.021, F.S.; requiring credit unions to
29 submit specified information to the office after
30 certain meetings; repealing s. 657.028(6), F.S.,
31 relating to credit union board member, committee
32 member, and officer election and appointment record
33 reporting requirements; amending s. 658.12, F.S.;
34 defining the term "target market"; amending s. 658.20,
35 F.S.; requiring the office, upon receiving
36 applications for authority to organize a bank or trust
37 company, to investigate the need for new bank
38 facilities in a primary service area or for a target
39 market and the ability of such service area or target
40 market to support new and existing bank facilities;
41 amending s. 658.21, F.S.; revising financial
42 institution application approval requirements to
43 include consideration of target market conditions;
44 authorizing the office to waive a requirement that
45 certain proposed financial institution presidents or
46 chief executive officers have certain experience
47 within a specified timeframe; amending s. 658.28,
48 F.S.; requiring a person or group to notify the office
49 within a specified timeframe upon acquiring a
50 controlling interest in a state bank or state trust
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51 company; amending s. 658.2953, F.S.; defining the term
52 "de novo branch"; amending s. 662.1225, F.S.; revising
53 the type of institution with which certain family
54 trust companies are required to maintain a deposit
55 account; amending s. 662.128, F.S.; revising the
56 timeframe for filing renewal applications for certain
57 family trust companies; amending s. 663.07, F.S.;
58 revising the banks with which international bank
59 agencies or branches shall maintain certain deposits
60 or investment securities; amending s. 663.532, F.S.;
61 revising references to lists of jurisdictions used for
62 qualifying qualified limited service affiliates;
63 requiring limited service affiliates to suspend
64 certain permissible activities under certain
65 circumstances; specifying that such suspensions remain
66 in effect until certain conditions are met; amending
67 s. 736.0802, F.S.; conforming a cross-reference;
68 reenacting s. 658.165(1), F.S., relating to banker's
69 banks, for the purpose of incorporating amendments
70 made by the act; providing an effective date.
71
72 Be It Enacted by the Legislature of the State of Florida:
73
74 Section 1. Paragraph (a) of subsection (3) of section
75 120.80, Florida Statutes, is amended to read:
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76 120.80 Exceptions and special requirements; agencies.—
77 (3) OFFICE OF FINANCIAL REGULATION.—
78 (a) Notwithstanding s. 120.60(1), in proceedings for the
79 issuance, denial, renewal, or amendment of a license or approval
80 of a merger pursuant to title XXXVIII:
81 1.a. The Office of Financial Regulation of the Financial
82 Services Commission shall have published in the Florida
83 Administrative Register notice of the application within 21 days
84 after receipt.
85 b. Within 21 days after publication of notice, any person
86 may request a hearing. Failure to request a hearing within 21
87 days after notice constitutes a waiver of any right to a
88 hearing. The Office of Financial Regulation or an applicant may
89 request a hearing at any time prior to the issuance of a final
90 order. Hearings shall be conducted pursuant to ss. 120.569 and
91 120.57, except that the Financial Services Commission shall by
92 rule provide for participation by the general public.
93 2. Should a hearing be requested as provided by sub-
94 subparagraph 1.b., the applicant or licensee shall publish at
95 its own cost a notice of the hearing in a newspaper of general
96 circulation in the area affected by the application. The
97 Financial Services Commission may by rule specify the format and
98 size of the notice.
99 3. Notwithstanding s. 120.60(1), and except as provided in
100 subparagraph 4., an application for license for a new bank, new
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101 trust company, new credit union, new savings and loan
102 association, or new licensed family trust company must be
103 approved or denied within 180 days after receipt of the original
104 application or receipt of the timely requested additional
105 information or correction of errors or omissions. An application
106 for such a license or for acquisition of such control which is
107 not approved or denied within the 180-day period or within 30
108 days after conclusion of a public hearing on the application,
109 whichever is later, shall be deemed approved subject to the
110 satisfactory completion of conditions required by statute as a
111 prerequisite to license and approval of insurance of accounts
112 for a new bank, a new savings and loan association, a new credit
113 union, or a new licensed family trust company by the appropriate
114 insurer.
115 4. In the case of an application for license to establish
116 a new bank, trust company, or capital stock savings association
117 in which a foreign national proposes to own or cont rol 10
118 percent or more of any class of voting securities, and in the
119 case of an application by a foreign national for approval to
120 acquire control of a bank, trust company, or capital stock
121 savings association, the Office of Financial Regulation shall
122 request that a public hearing be conducted pursuant to ss.
123 120.569 and 120.57. Notice of such hearing shall be published by
124 the applicant as provided in subparagraph 2. The failure of such
125 foreign national to appear personally at or to participate
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126 through video conference in the hearing shall be grounds for
127 denial of the application. Notwithstanding s. 120.60(1) and
128 subparagraph 3., every application involving a foreign national
129 shall be approved or denied within 1 year after receipt of the
130 original application or any timely requested additional
131 information or the correction of any errors or omissions, or
132 within 30 days after the conclusion of the public hearing on the
133 application, whichever is later.
134 Section 2. Subsection (4) of section 475.01, Florida
135 Statutes, is amended to read:
136 475.01 Definitions.—
137 (4) A broker acting as a trustee of a trust created under
138 chapter 689 is subject to the provisions of this chapter unless
139 the trustee is a bank, state or federal association, or trust
140 company possessing trust powers as defined in s. 658.12 s.
141 658.12(23).
142 Section 3. Section 518.117, Florida Statutes, is amended
143 to read:
144 518.117 Permissible investments of fiduciary funds.—A
145 fiduciary that is authorized by lawful authority to engage in
146 trust business as defined in s. 658.12 s. 658.12(20) may invest
147 fiduciary funds in accordance with s. 660.417 so long as the
148 investment otherwise complies with this chapter.
149 Section 4. Paragraph (a) of subsection (1) and subsection
150 (4) of section 655.045, Florida Statutes, are amended, and
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151 paragraph (f) is added to subsection (1) of that section, to
152 read:
153 655.045 Examinations, reports, and internal audits;
154 penalty.—
155 (1) The office shall conduct an examination of the
156 condition of each state financial institution at least every 18
157 months. The office may conduct more frequent examinations based
158 upon the risk profile of the financial institution, prior
159 examination results, or significant changes in the institution
160 or its operations. The office may use continuous, phase, or
161 other flexible scheduling examination methods for very large or
162 complex state financial institutions and financial institutions
163 owned or controlled by a multi-financial institution holding
164 company. The office shall consider examination guidelines from
165 federal regulatory agencies in order to facilitate, coordinate,
166 and standardize examination processes.
167 (a) The office may accept an examination of a state
168 financial institution made by an appropriate federal regulatory
169 agency or may conduct a joint or concurrent examination of the
170 institution with the federal agency. However, if the office
171 accepts an examination in accordance with this paragraph, the
172 office shall conduct at least once during each 36-month period
173 beginning July 1, 2023 2014, a subsequent the office shall
174 conduct an examination of each state financial institution in a
175 manner that allows the preparation of a complete examination
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176 report not subject to the right of a federal or other non-
177 Florida entity to limit access to the information contained
178 therein. The office may furnish a copy of all examinations or
179 reviews made of financial institutions or their affiliates to
180 the state or federal agencies participating in the examination,
181 investigation, or review, or as otherwise authorized under s.
182 655.057.
183 (f) In coordinating an examination required under this
184 section, if a federal agency suspends or cancels a previously
185 scheduled examination of a state financial institutio n, the
186 office has an additional 90 days to meet the examination
187 requirement of this section. In such case, the requirement is
188 deemed met by the federal agency conducting the examination or
189 upon the office conducting the examination instead.
190 (4) A copy of the report of each examination must be
191 furnished to the state financial institution entity examined and
192 presented to the board of directors at its next regular or
193 special meeting. Each director shall review the report and
194 acknowledge receipt of the report and such review by signing and
195 dating the prescribed signature page of the report and returning
196 a copy of the signed page to the office.
197 Section 5. Section 655.414, Florida Statutes, is amended
198 to read:
199 655.414 Acquisition of assets; assumption of liabilities.—
200 With prior approval of the office, and upon such conditions as
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201 the commission prescribes by rule, a financial institution
202 entity may acquire 50 percent or more all or substantially all
203 of the assets of, liabilities of, or a combination of assets and
204 or assume all or any part of the liabilities of, any other
205 financial institution in accordance with the procedures and
206 subject to the following conditions and limitations:
207 (1) CALCULATION OF ASSET OR LIABILITY PERCENTAGES.—
208 Percentages of assets or liabilities must be calculated based on
209 the most recent quarterly reporting date.
210 (2) ADOPTION OF A PLAN.—The board of directors of the
211 acquiring or assuming financial entity and the board of
212 directors of the transferring financial institution must adopt,
213 by a majority vote, a plan for such acquisition, assumption, or
214 sale on terms that are mutually agreed upon. The plan must
215 include:
216 (a) The names and types of financial institutions
217 involved.
218 (b) A statement setting forth the material terms of the
219 proposed acquisition, assumption, or sale, including the plan
220 for disposition of all assets and liabilities not subject to the
221 plan.
222 (c) A provision for liquidation, if applicable, of the
223 transferring financial institution upon execution of the plan,
224 or a provision setting forth the business plan for the continued
225 operation of each financial institution after the execution of
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226 the plan.
227 (d) A statement that the entire transaction is subject to
228 written approval of the office and approval of the members or
229 stockholders of the transferring financial institution.
230 (e) If a stock financial institution is the transferring
231 financial institution and the proposed sale is not for cash, a
232 clear and concise statement that dissenting stockholders of the
233 institution are entitled to the rights set forth in s. 658.44(4)
234 and (5).
235 (f) The proposed effective date of the acquisition,
236 assumption, or sale and such other information and provisions as
237 necessary to execute the transaction or as required by the
238 office.
239 (3)(2) APPROVAL OF OFFICE.—Following approval by the board
240 of directors of each participating financial institution, the
241 plan, together with certified copies of the authorizing
242 resolutions adopted by the boards and a completed application
243 with a nonrefundable filing fee, must be forwarded to the office
244 for approval or disapproval. The office shall approve the plan
245 of acquisition, assumption, or sale if it appears that:
246 (a) The resulting financial entity or entities would have
247 an adequate capital structure in relation to their activities
248 and their deposit liabilities;
249 (b) The plan is fair to all parties; and
250 (c) The plan is not contrary to the public interest.
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251
252 If the office disapproves the plan, it shall state its
253 objections and give the parties an opportunity to amend the plan
254 to overcome such objections.
255 (4)(3) VOTE OF MEMBERS OR STOCKHOLDERS.—If the office
256 approves the plan, it may be submitted to the members or
257 stockholders of the transferring financial institution at an
258 annual meeting or at a special meeting called to consider such
259 action. Upon a majority vote of the total number of votes
260 eligible to be cast or, in the case of a credit union, a
261 majority vote of the members present at the meeting, the plan is
262 adopted.
263 (5)(4) ADOPTED PLAN; CERTIFICATE; ABANDONMENT.—
264 (a) If the plan is adopted by the members or stockholders
265 of the transferring financial institution, the president or vice
266 president and the cashier, manager, or corporate secretary of
267 such institution shall submit the adopted plan to the offi ce,
268 together with a certified copy of the resolution of the members
269 or stockholders approving it.
270 (b) Upon receipt of the certified copies and evidence that
271 the participating financial institutions have complied with all
272 applicable state and federal law and rules, the office shall
273 certify, in writing, to the participants that the plan has been
274 approved.
275 (c) Notwithstanding approval of the members or
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276 stockholders or certification by the office, the board of
277 directors of the transferring financial institution may abandon
278 such a transaction without further action or approval by the
279 members or stockholders, subject to the rights of third parties
280 under any contracts relating thereto.
281 (6)(5) FEDERALLY CHARTERED OR OUT-OF-STATE INSTITUTION AS
282 A PARTICIPANT.—If one of the participants in a transaction under
283 this section is a federally chartered financial institution or
284 an out-of-state financial institution, all participants must
285 also comply with requirements imposed by federal and other state
286 law for the acquisition, assumption, or sale and provide
287 evidence of such compliance to the office as a condition
288 precedent to the issuance of a certificate authorizing the
289 transaction; however, if the purchasing or assuming financial
290 institution is a federal or out-of-state state-chartered
291 financial institution and the transferring state financial
292 entity will be liquidated, approval of the office is not
293 required.
294 (7)(6) STOCK INSTITUTION ACQUIRING MUTUAL INSTITUTION.—A
295 mutual financial institution may not sell 50 percent or more all
296 or substantially all of its assets to a stock financial
297 institution until it has first converted into a capital stock
298 financial institution in accordance with s. 665.033(1) and (2).
299 For this purpose, references in s. 665.033(1) and (2) to
300 associations also refer to credit unions but, in the case of a
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301 credit union, the provision concerning proxy statements does not
302 apply.
303 Section 6. Paragraph (c) of subsection (3) of section
304 655.50, Florida Statutes, is amended to read:
305 655.50 Florida Control of Money Laundering and Terrorist
306 Financing in Financial Institutions Act.—
307 (3) As used in this section, the term:
308 (c) "Financial institution" has the same meaning as in s.
309 655.005(1)(i), excluding an international representative office,
310 an international administrative office, or a qualified limited
311 service affiliate means a financial institution, as defined in
312 31 U.S.C. s. 5312, as amended, including a credit card bank,
313 located in this state.
314 Section 7. Present subsections (2) through (8) of section
315 657.021, Florida Statutes, are redesignated as subsections (3)
316 through (9), respectively, and a new subsection (2) is added to
317 that section, to read:
318 657.021 Board of directors; executive committee
319 responsibilities; oaths; reports to the office.—
320 (2) Within the 30 days following the annual meeting or any
321 other meeting at which any director, officer, member of the
322 supervisory or audit committee, member of the credit committee,
323 or credit manager is elected or appointed, the credit union
324 shall submit to the office the names and residence addresses of
325 the elected or appointed person or persons on a form adopted by
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326 the commission and provided by the office.
327 Section 8. Subsection (6) of section 657.028, Florida
328 Statutes, is amended to read:
329 657.028 Activities of directors, officers, committee
330 members, employees, and agents.—
331 (6) Within 30 days after election or appointment, a record
332 of the names and addresses of the members of the board, members
333 of committees, all officers of the credit union, and the credit
334 manager shall be filed with the office on forms prescribed by
335 the commission.
336 Section 9. Present subsections (20) through (24) of
337 section 658.12, Florida Statutes, are redesignated as
338 subsections (21) through (25), respectively, and a new
339 subsection (20) is added to that section, to read:
340 658.12 Definitions.—Subject to other definitions contained
341 in the financial institutions codes and unless the context
342 otherwise requires:
343 (20) "Target market" means the group of clients or
344 potential clients from whom:
345 (a) A bank or proposed bank expects to draw deposits and
346 to whom the bank or proposed bank focuses or intends to focus
347 its marketing efforts; or
348 (b) A trust company, a trust department of a bank or
349 association, a proposed trust company, or a proposed trust
350 department of a bank or association expects to draw its
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351 fiduciary accounts and to whom the trust company, the trust
352 department of a bank or association, the proposed t rust company,
353 or the proposed trust department of a bank or association
354 focuses or intends to focus its marketing efforts.
355 Section 10. Paragraphs (b) and (c) of subsection (1) of
356 section 658.20, Florida Statutes, are amended to read:
357 658.20 Investigation by office.—
358 (1) Upon the filing of an application, the office shall
359 make an investigation of:
360 (b) The need for bank or trust facilities or additional
361 bank or trust facilities, as the case may be, in the primary
362 service area where the proposed bank or trust company is to be
363 located or the need for the target market that the bank or trust
364 company intends to engage with in business.
365 (c) The ability of the primary service area or target
366 market to support the proposed bank or trust company and all
367 other existing bank or trust facilities that serve the same
368 primary service area or target market in the primary service
369 area.
370 Section 11. Subsections (1) and (4) of section 658.21,
371 Florida Statutes, are amended to read:
372 658.21 Approval of application; findings required.—The
373 office shall approve the application if it finds that:
374 (1) Local and target market conditions indicate reasonable
375 promise of successful operation for the proposed state bank or
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376 trust company. In determining whether an applicant meets the
377 requirements of this subsection, the office shall consider all
378 materially relevant factors, including:
379 (a) The purpose, objectives, and business philosophy of
380 the proposed state bank or trust company.
381 (b) The projected financial performance of the proposed
382 bank or trust company.
383 (c) The feasibility of the proposed bank or trust company,
384 as stated in the business plan, particularly with respect to
385 asset and liability growth and management.
386 (4)(a) The proposed officers have sufficient financial
387 institution experience, ability, standing, and reputation and
388 the proposed directors have sufficient business experience,
389 ability, standing, and reputation to indicate reasonable promise
390 of successful operation, and none of the proposed officers or
391 directors has been convicted of, or pled guilty or nolo
392 contendere to, any violation of s. 655.50, relating to the
393 control of money laundering and terrorist financing; chapter
394 896, relating to offenses related to financial institutions; or
395 similar state or federal law.
396 (b) At least two of the proposed directors who are not
397 also proposed officers must have had at least 1 year of direct
398 experience as an executive officer, regulator, or director of a
399 financial institution within the 5 years before the date of the
400 application. However, if the applicant demonstrates that at
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401 least one of the proposed directors has very substantial
402 experience as an executive officer, director, or regulator of a
403 financial institution more than 5 years before the date of the
404 application, the office may modify the requirement and allow the
405 applicant to have only one director who has direct financial
406 institution experience within the last 5 years.
407 (c) The proposed president or chief executive officer must
408 have had at least 1 year of direct experience as an executive
409 officer, director, or regulator of a financial institution
410 within the last 5 years. The office may waive this requirement
411 after considering:
412 1. The adequacy of the overall experience and expertise of
413 the proposed president or chief executive officer;
414 2. The likelihood of successful operation of the proposed
415 state bank or trust company pursuant to subsection (1);
416 3. The adequacy of the proposed capitalization under
417 subsection (2);
418 4. The proposed capital structure under subsection (3) ;
419 5. The experience of the other proposed officers and
420 directors; and
421 6. Any other relevant data or information.
422 Section 12. Present subsections (2), (3), and (4) of
423 section 658.28, Florida Statutes, are redesignated as
424 subsections (3), (4), and (5), respectively, and a new
425 subsection (2) is added to that section, to read:
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426 658.28 Acquisition of control of a bank or trust company. —
427 (2) If a person or a group of persons, directly or
428 indirectly, acquires a controlling interest in a state bank or
429 state trust company, as contemplated by this section, through
430 probate or trust, the person or group of persons shall notify
431 the office within 90 days after acquiring such an interest. Such
432 an interest does not give rise to a presumption of control until
433 the person or group of persons votes the shares or the office
434 has issued a certificate of approval in response to an
435 application pursuant to subsection (1).
436 Section 13. Present paragraphs (a), (b), and (c) of
437 subsection (11) of section 658.2953, Florida Statutes, are
438 redesignated as paragraphs (b), (c), and (d), respectively, and
439 a new paragraph (a) is added to that subsection, to read:
440 658.2953 Interstate branching.—
441 (11) DE NOVO INTERSTATE BRANCHING BY STATE BANKS.—
442 (a) As used in this subsection, the term "de novo branch"
443 means a branch of a bank which is originally established by the
444 bank as a branch and does not become a branch of such bank as a
445 result of:
446 1. The bank's acquisition of another bank or of a branch
447 of another bank; or
448 2. The conversion, merger, or consolidation of any bank or
449 branch.
450 Section 14. Paragraph (d) of subsection (1) of section
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451 662.1225, Florida Statutes, is amended to read:
452 662.1225 Requirements for a family trust company, licensed
453 family trust company, or foreign licensed family trust company. —
454 (1) A family trust company or a licensed family trust
455 company shall maintain:
456 (d) A deposit account with:
457 1. A bank located in the United States and insured by the
458 Federal Deposit Insurance Corporation; or
459 2. A credit union located in the United States and insured
460 by the National Credit Union Administration with a state-
461 chartered or national financial institution that has a principal
462 or branch office in this state.
463 Section 15. Subsection (1) of section 662.128, Florida
464 Statutes, is amended to read:
465 662.128 Annual renewal.—
466 (1) Within 45 days after the end of each calendar year, A
467 family trust company, licensed family trust company, or foreign
468 licensed family trust company shall file an its annual renewal
469 application with the office on an annual basis no later than 45
470 days after the anniversary of the filing of either the initial
471 application or the prior year's renewal application .
472 Section 16. Subsection (1) of section 663.07, Florida
473 Statutes, is amended to read:
474 663.07 Asset maintenance or capital equivalency.—
475 (1) Each international bank agency and international
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476 branch shall:
477 (a) Maintain with one or more banks insured by the Federal
478 Deposit Insurance Corporation and located within the United
479 States in this state, in such amounts as the office specifies,
480 evidence of dollar deposits or investment securities of the type
481 that may be held by a state bank for its own account pursuant to
482 s. 658.67. The aggregate amount of dollar deposits and
483 investment securities for an international bank agency or
484 international branch shall, at a minimum, equal the greater of:
485 1. Four million dollars; or
486 2. Seven percent of the total liabilities of the
487 international bank agency or international branch excluding
488 accrued expenses and amounts due and other liabilities to
489 affiliated branches, offices, agencies, or entities; or
490 (b) Maintain other appropriate reserves, taking into
491 consideration the nature of the business being conducted by the
492 international bank agency or international branch.
493
494 The commission shall prescribe, by rule, the deposit,
495 safekeeping, pledge, withdrawal, recordkeeping, and other
496 arrangements for funds and securities maintained under this
497 subsection. The deposits and securities used to satisfy the
498 capital equivalency requirements of this subsection shall be
499 held, to the extent feasible, in one or more state or national
500 banks located in this state or in a federal reserve bank.
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501 Section 17. Present subsections (4), (5), and (6) of
502 section 663.532, Florida Statutes, are redesignated as
503 subsections (5), (6), and (7), respectively, a new subsection
504 (4) is added to that section, and paragraphs (i) and (j) of
505 subsection (1) of that section are amended, to read:
506 663.532 Qualification.—
507 (1) To qualify as a qualified limited service affiliate
508 under this part, a proposed qualified limited service affiliate
509 must file a written notice with the office, in the manner and on
510 a form prescribed by the commission. Such written notice must
511 include:
512 (i) A declaration under penalty of perjury signed by the
513 executive officer, manager, or managing member of the proposed
514 qualified limited service affiliate that, to the best of his or
515 her knowledge:
516 1. No employee, representative, or agent provides, or will
517 provide, banking services; promotes or sells, or will promote or
518 sell, investments; or accepts, or will accept, custody of
519 assets.
520 2. No employee, representative, or agent acts, or will
521 act, as a fiduciary in this state, which includes, but is not
522 limited to, accepting the fiduciary appointment, executing the
523 fiduciary documents that create the fiduciary relationship, or
524 making discretionary decisions regarding the investment or
525 distribution of fiduciary accounts.
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526 3. The jurisdiction of the international trust entity or
527 its offices, subsidiaries, or any affiliates that are directly
528 involved in or facilitate the financial services functions,
529 banking, or fiduciary activities of the international trust
530 entity is not listed on the Financial Action Task Force's list
531 of High-Risk Jurisdictions subject to a Call for Action or list
532 of Jurisdictions under Increased Monitoring Force Public
533 Statement or on its list of jurisdictions with deficiencies in
534 anti-money laundering or counterterrorism.
535 (j) For each international trust entity that the proposed
536 qualified limited service affiliate will provide services for in
537 this state, the following:
538 1. The name of the international trust entity;
539 2. A list of the current officers and directors of the
540 international trust entity;
541 3. Any country where the international trust entity is
542 organized or authorized to do business;
543 4. The name of the home-country regulator;
544 5. Proof that the international trust entity has been
545 authorized by charter, license, or similar authorization by its
546 home-country regulator to engage in trust business;
547 6. Proof that the international trust entity lawfully
548 exists and is in good standing under the laws of the
549 jurisdiction where it is chartered, licensed, or organized;
550 7. A statement that the international trust entity is not
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551 in bankruptcy, conservatorship, receivership, liquidation, or in
552 a similar status under the laws of any country;
553 8. Proof that the international trust entity is not
554 operating under the direct control of the government or the
555 regulatory or supervisory authority of the jurisdiction of its
556 incorporation, through government intervention or any other
557 extraordinary actions, and confirmation that it has not been in
558 such a status or under such control at any time within the prior
559 3 years;
560 9. Proof and confirmation that the proposed qualified
561 limited service affiliate is affiliated with the international
562 trust entities provided in the notice; and
563 10. Proof that the jurisdictions where the internationa l
564 trust entity or its offices, subsidiaries, or any affiliates
565 that are directly involved in or that facilitate the financial
566 services functions, banking, or fiduciary activities of the
567 international trust entity are not listed on the Financial
568 Action Task Force's list of High-Risk Jurisdictions subject to a
569 Call for Action or list of Jurisdictions under Increased
570 Monitoring Force Public Statement or on its list of
571 jurisdictions with deficiencies in anti-money laundering or
572 counterterrorism.
573
574 The proposed qualified limited service affiliate may provide
575 additional information in the form of exhibits when attempting
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576 to satisfy any of the qualification requirements. All
577 information that the proposed qualified limited service
578 affiliate desires to present to support the written notice must
579 be submitted with the notice.
580 (4) The qualified limited service affiliate shall suspend
581 the permissible activities provided in s. 663.531 relating to a
582 specific jurisdiction if the qualified limited service affiliate
583 becomes aware that the jurisdiction of an international trust
584 entity served by the qualified limited service affiliate is
585 included on the Financial Action Task Force's list of High -Risk
586 Jurisdictions subject to a Call for Action or list of
587 Jurisdictions under Increased Monitoring. Suspensions under this
588 subsection must remain in effect until the jurisdiction is
589 removed from the Financial Action Task Force's list of High Risk
590 Jurisdictions subject to a Call for Action or list of
591 Jurisdictions under Increased Monitoring.
592 Section 18. Paragraph (a) of subsection (5) of section
593 736.0802, Florida Statutes, is amended to read:
594 736.0802 Duty of loyalty.—
595 (5)(a) An investment by a trustee authorized by lawful
596 authority to engage in trust business, as defined in s. 658.12
597 s. 658.12(20), in investment instruments, as defined in s.
598 660.25(6), that are owned or controlled by the trustee or its
599 affiliate, or from which the trustee or its affiliate receives
600 compensation for providing services in a capacity other than as
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601 trustee, is not presumed to be affected by a conflict between
602 personal and fiduciary interests provided the investment
603 otherwise complies with chapters 518 and 660 and the trustee
604 complies with the requirements of this subsection.
605 Section 19. For the purpose of incorporating the amendment
606 made by this act to section 658.20, Florida Statutes, in a
607 references thereto, subsection (1) of section 658.165, Florida
608 Statutes, is reenacted to read:
609 658.165 Banker's banks; formation; applicability of
610 financial institutions codes; exceptions.—
611 (1) If authorized by the office, a corporation may be
612 formed under the laws of this state for the purpose of becoming
613 a banker's bank. An application for authority to organize a
614 banker's bank is subject to ss. 658.19, 658.20, and 658.21,
615 except that s. 658.20(1)(b) and (c) and the minimum stock
616 ownership requirements for the organizing directors provided in
617 s. 658.21(2) do not apply.
618 Section 20. This act shall take effect July 1, 2022.
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HB 453
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 453 Records of Physical Examinations of Officers
SPONSOR(S): Duggan
TIED BILLS: IDEN./SIM. BILLS: SB 1736
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Herendeen Luczynski
2) Criminal Justice & Public Safety Subcommittee
3) Appropriations Committee
4) Commerce Committee
SUMMARY ANALYSIS
If a law enforcement officer, correctional officer, correctional probation officer, or firefighter becomes disabled
by tuberculosis, heart disease, or hypertension, Florida law presumes that the disease has been contracted in
the line of duty, and is therefore compensable under workers compensation law, unless the contrary can be
shown by competent evidence.
To be eligible for this legal presumption, the officer or firefighter must have taken a pre-employment physical
exam that failed to reveal any evidence of tuberculosis, heart disease, or hypertension.
The bill requires that the employing agency maintain records of a pre-employment physical examination for at
least five years after a law enforcement, correctional, or correctional probation officer separates from the
employing agency.
If the employing agency fails to maintain records of the pre-employment physical examination, and contests a
petition for workers’ compensation benefits filed by a law enforcement, correctional, or correctional probation
officer, the bill makes the officer entitled to the presumption that disability due to tuberculosis, heart disease, or
hypertension is compensable as an occupational disease under workers’ compensation law. The presumption
shifts the burden of proof to the employer, who must prove that the disabling disease is not related to the
officer’s job duties or workplace exposures.
The bill does not address firefighters, who are also eligible for the presumption so long as they undergo a pre-
employment physical exam that failed to reveal any evidence of tuberculosis, heart disease, or hypertension
The bill does not impose any new costs on government employers, because state and local government
agencies are already subject to records retention laws. Government employers that participate in the Florida
Retirement System (FRS) must retain reports of job-related medical examinations for 25 years after a
participating employee separates from the state or local agency. Local government employers that do not
participate in the FRS must maintain reports of job-related medical examinations for 50 years after a
participating employee separates from the local agency.
The bill has no fiscal impact on state or local governments and no economic impact on the private sector.
The bill has an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0453.IBS
DATE: 1/16/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Qualifications for Employment as a Law Enforcement, Correctional, or Probation Officer
Florida law sets forth the minimum requirements for any person to be employed or appointed in a full-
or part-time capacity, or in an auxiliary capacity, as a law enforcement officer, correctional officer, or
correctional probation officer; or to be appointed as an auxiliary correctional officer by a private entity
contracting with the Department of Corrections.
To become a law enforcement, correctional, or correctional probation officer, an applicant must satisfy
age, education, and citizenship requirements; complete a training course; pass a certification exam;
pass a criminal background check; and pass a physical examination. 1
The physical examination requires screening for evidence of tuberculosis, heart disease, or
hypertension.2
If the physical examination fails to reveal any evidence of tuberculosis, heart disease, or hypertension –
and the officer is subsequently partially or totally disabled by tuberculosis, heart disease, or
hypertension – such disability is presumed to have been accidental and to have been suffered in the
line of duty, unless the contrary is shown by competent evidence. 3
In addition to law enforcement, correctional, and correctional probation officers, the presumption
applies to firefighters working for any unit of Florida government. 4
Workers’ Compensation Presumption
A legal presumption makes it easier for an employee to obtain workers’ compensation benefits by
shifting the burden of proof in a disability determination from the employee to the employer.5
In general, occupational diseases are compensable if:
A condition peculiar to the occupation causes the disease;
The employee contracts the disease on the job;
The job is associated with a particular hazard of the disease;
The incidence of the disease is substantially higher in the occupation than in the public;
The nature of the employment was a major contributing cause of the disease; and
Epidemiological studies show that exposure to the specific substance involved, at the levels to which
the employee was exposed, may cause the precise disease sustained by the employee. 6
Florida law includes a presumption that treats tuberculosis, heart disease, or hypertension as an
occupational disease associated with firefighters, law enforcement officers, correctional officers, and
correctional probation officers. If these employees become temporarily or partially disabled by
tuberculosis, heart disease, or hypertension, the law presumes that the employee contracted the
disease in the line of duty unless the contrary can be shown by competent evidence. 7
1 S. 943.13, F.S.
2 S. 943.13(6), F.S.
3 Ss. 943.13(6) and 112.18(1)(a), F.S.
4 Ss. 112.18(1)(a) and 175.231, F.S.
5 Caldwell v. Division of Retirement, Florida Dept. of Administration, 372 So. 2d 438, (Fla. 1979).
6 S. 440.151(2), F.S.
7 Ss. 112.18(1)(a) and 175.231, F.S.
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However, firefighters, law enforcement officers, correctional officers, and correctional probation officers
are entitled to the presumption only if the officer passed a pre-employment physical exam that failed to
reveal any evidence of tuberculosis, heart disease, or hypertension. 8
If the employee’s pre-employment physical failed to reveal any evidence of disease, the employee must
demonstrate the he or she suffers from tuberculosis, heart disease, or hypertension, but does not have
to present evidence of causation that is typically required to demonstrate that an occupational disease
is compensable.9
To overcome the statutory presumption, the employer must present clear and convincing evidence that
the disease was caused by a non-work-related event or exposure.10
Pre-Employment Physicals
To be employed as a law enforcement, correctional, or correctional probation officer, an applicant must
pass a physical exam.11 The law that establishes minimum employment standards states that such
officers are eligible for the presumption of s. 112.18, F.S., only if the physical exam fails to reveal any
evidence of tuberculosis, heart disease, or hypertension. 12
To enroll in firefighting training courses and be certified as a firefighter, an applicant must be in good
physical condition, as determined by a doctor or nurse practitioner.13 The law does not mention specific
screening for tuberculosis, heart disease, or hypertension. The medical professional must certify that the
applicant is medically fit to engage in firefighting training and does not have any pre-existing or current
condition, illness, injury, or deficiency.14
Records Retention
According to the records retention schedule for state and local government agencies published by the
Florida Department of State, reports of job-related medical examinations must be retained by the Florida
Retirement System (FRS) for 25 years after a participating employee separates from government
employment.15
Local governments that do not participate in the FRS must maintain reports of job-related medical
examinations for 50 years after a participating employee separates from government employment. 16
State agencies that employ people through the Other Personnel Services system, as interns, or on a
voluntary basis must maintain reports of job-related medical examinations for three years after the
employee separates from government employment.17
Eligibility for the Workers’ Compensation Presumption
8 S. 112.18(1)(a), F.S.
9 McDonald v. City of Jack sonville, 286 So. 3d 792 (Fla. 1st DCA 2019), citing Walters v. State, DOC/Div. of Risk
Management, 100 So. 3d 1173 (Fla. 1st DCA 2019), rehearing denied, review denied 108 So. 3d 654 (The presumption is
an adequate substitute for evidence of occupational causation, and compels the legal result that a claimant has proven
occupational causation).
10 Butler v. City of Jack sonville, 980 So. 2d 1250 (Fla. 1st DCA 2008).
11 S. 943.13(6), F.S.
12 Id.
13 Ss. 633.408(6)(a)3 and 633.412(5), F.S.
14 Rule 69A-37.037 and Form DFS-K3-1022.
15 Florida Department of State, Division of Library and Information Services, General Records Schedule GS1-SL for State
and Local Government Agencies, p. 31, https://dos.myflorida.com/library-archives/records-management/general-recor ds -
schedules/ (last visited Jan. 13, 2022).
16 Id. at 32.
17 Id.
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In a disputed workers’ compensation determination, the legal presumption does not apply if a law
enforcement, correctional, or correctional probation officer:
Departed from the course of treatment prescribed by his or her physician, resulting in a significant
aggravation of the disease or disability or need for medical treatment; or
Was previously compensated for the disabling disease and departed from the treatment prescribed
by his or her physician, resulting in disability or increasing the disability or need for medical
treatment.18
To be eligible for workers’ compensation benefits, a law enforcement officer, correctional officer, or
correctional probation officer must make a claim for benefits prior to or within 180 days of leaving the
employment or the employing agency.19
Firefighters are not subject to the exclusion for prior treatment or compensation and they are not
covered by the claim-fling deadline that lets a law enforcement officer, correctional officer or
correctional probation officer file a claim up to 180 days after leaving the employment.
Thus, a firefighter suffering from tuberculosis, heart disease, or hypertension must advise his or her
employer of the injury within 90 days of the initial manifestation of the disease or 90 days after the
firefighter obtains a medical opinion that the injury (occupational disease) is due to the nature of the
firefighter’s employment.20
The Pre-Employment Physical is Crucial Evidence
To use the presumption, a “firefighter or law enforcement officer must have successfully passed a
physical examination upon entering into any such service as a firefighter or law enforcement officer,
which examination failed to reveal any evidence of any such condition.” 21
The requirement of a pre-employment physical makes the record of such physical crucial evidence in a
dispute over workers’ compensation benefits.
For example, an elevated blood pressure reading during a pre-employment physical did not constitute
evidence of hypertension when a law enforcement officer claimed that his disability, due to
hypertension, was a compensable occupational disease. 22 But a firefighter who was found fit for duty,
even though a doctor diagnosed him with hypertension during a pre-employment physical, was not
eligible for workers’ compensation benefits when he later became disabled by hypertension. 23
Meanwhile, a law enforcement officer who suffered a heart attack was not eligible for workers’
compensation benefits, even though his pre-employment physical did not reveal evidence of
hypertension or heart disease, because the employer demonstrated that the heart attack was caused
by a genetic condition that had not been detected in the officer’s pre-employment physical.24
When the parties cannot produce a record of a pre-employment physical, a firefighter or law
enforcement officer cannot use the presumption to establish a compensable occupational disease.
For example, a fireman who did not undergo a physical examination prior to employment, because the
employer did not require such physical, was denied workers’ compensation benefits. The First District
Court of Appeal held: “The statute creating the presumption is very clear and unambiguous and
18 S. 112.18(1)(b)(1), F.S.
19 S. 112.18(1)(b)(4), F.S.
20 S. 440.151(6) and 440.185(1), F.S.
21 S. 112.18(1)(a), F.S.
22 City of Tavares v. Harper, 230 So. 3d 918 (Fla 1st DCA, 2017).
23 Volusia County Fire Services v. Taaffe, So. 3d 81 (Fla. 1st DCA, 2009).
24 Punsk y v. Clay County Sheriff’s Office, 18 So. 3d 577 (Fla. 1st DCA, 2009).
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requires a physical examination upon entering into any service as a fireman as a prerequisite to
entitlement to the presumption.”25
Effect of the Bill:
The bill requires that the employing agency maintain records of a pre-employment physical examination
for at least five years after a law enforcement, correctional, correctional probation, or auxiliary
correctional officer separates from the employing agency.
If the employing agency fails to maintain records of an officers’ physical exam, the law enforcement,
correctional, correctional probation, or auxiliary correctional officer is entitled to the presumption that
disability due to tuberculosis, heart disease, or hypertension is compensable as an occupational
disease under workers’ compensation law.
The record retention requirement ensures that records of the pre-employment physicals of law
enforcement, correctional, correctional probation, and auxiliary correctional officers are available for
review if a contested claim is litigated before a judge of compensation claims.
This requirement does not impose additional duties on government employers, because state and local
government agencies are already subject to record retention requirements that exceed the five-year
benchmark established in this bill.
The bill amends a law that sets the minimum requirements for law enforcement, correctional,
correctional probation, and auxiliary correctional officers working in Florida. The bill does not affect the
certification or training requirements for firefighters, or record-retention requirements for agencies that
employ firefighters.
The bill has an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1. Amends s. 943.13, F.S., relating to officers’ minimum qualifications for employment or
appointment.
Section 2. Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
25 Cumbie v. City of Milton, 496 So. 2d 923 (Fla. 1st DCA, 1986).
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C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
B. RULE-MAKING AUTHORITY:
The bill does not require rule-making authority and does not affect existing rules.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 453 2022
1 A bill to be entitled
2 An act relating to records of physical examinations of
3 officers; amending s. 943.13, F.S.; requiring an
4 employing agency to maintain records of employee
5 physical examinations for a specified period; creating
6 a presumption if records are destroyed before that
7 period has elapsed; providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (6) of section 943.13, Florida
12 Statutes, is amended to read:
13 943.13 Officers' minimum qualifications for employment or
14 appointment.—On or after October 1, 1984, any person employed or
15 appointed as a full-time, part-time, or auxiliary law
16 enforcement officer or correctional officer; on or after October
17 1, 1986, any person employed as a full-time, part-time, or
18 auxiliary correctional probation officer; and on or after
19 October 1, 1986, any person employed as a full-time, part-time,
20 or auxiliary correctional officer by a private entity under
21 contract to the Department of Corrections, to a county
22 commission, or to the Department of Management Services shall:
23 (6)(a) Have passed a physical examination by a licensed
24 physician, physician assistant, or licensed advanced practice
25 registered nurse, based on specifications established by the
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hb0453-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 453 2022
26 commission. In order to be eligible for the presumption set
27 forth in s. 112.18 while employed with an employing agency, a
28 law enforcement officer, correctional officer, or correctional
29 probation officer must have successfully passed the physical
30 examination required by this subsection upon entering into
31 service as a law enforcement officer, correctional officer, or
32 correctional probation officer with the employing agency, which
33 examination must have failed to reveal any evidence of
34 tuberculosis, heart disease, or hypertension. A law enforcement
35 officer, correctional officer, or correctional probation officer
36 may not use a physical examination from a former employing
37 agency for purposes of claiming the presumption set forth in s.
38 112.18 against the current employing agency.
39 (b) The employing agency must maintain records of the
40 physical examination for at least 5 years after the employee's
41 separation from the employing agency. If the employing agency
42 fails to maintain the records of the physical examination for
43 the 5-year period after the employee's separation, it is
44 presumed that the employee has met the requirement of paragraph
45 (a).
46 Section 2. This act shall take effect July 1, 2022.
Page 2 of 2
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hb0453-00
INSURANCE & BANKING SUBCOMMITTEE
HB 453 by Rep. Duggan
Records of Physical Examinations of Officers
AMENDMENT SUMMARY
January 19, 2022
Amendment 1 by Rep. Duggan (Line 46): The amendment makes the following changes:
• States that a medical examination used to determine an applicant’s fitness for firefighter
training (instead of a pre-employment physical) may be used to satisfy a legal
presumption that certain occupational diseases have been contracted in the line of duty.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 453 (2022)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Duggan offered the following:
4
5 Amendment (with title amendment)
6 Remove line 46 and insert:
7 Section 2. Paragraph (1)(a) of Section 112.18, Florida
8 Statutes, is amended to read:
9 112.18 - Firefighters and law enforcement or correctional
10 officers; special provisions relative to disability.
11 (1)(a) Any condition or impairment of health of any Florida
12 state, municipal, county, port authority, special tax district,
13 or fire control district firefighter or any law enforcement
14 officer, correctional officer, or correctional probation officer
15 as defined in s. 943.10(1), (2), or (3) caused by tuberc ulosis,
16 heart disease, or hypertension resulting in total or partial
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Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 453 (2022)
Amendment No. 1
17 disability or death shall be presumed to have been
18 accidental and to have been suffered in the line of duty unless
19 the contrary be shown by competent evidence. However, any such
20 firefighter or law enforcement officer must have successfully
21 passed a physical examination upon entering into any such
22 service as a firefighter or law enforcement officer, which
23 examination failed to reveal any evidence of any such
24 condition. The medical examination required by s. 633.412(5),
25 F.S., may serve as a physical examination upon entering service
26 for a firefighter. Such presumption does not apply to benefits
27 payable under or granted in a policy of life insurance or
28 disability insurance, unless the insurer and insured have
29 negotiated for such additional benefits to be included in the
30 policy contract.
31 Section 3. This act shall take effect July 1, 2022.
32
33
34 -----------------------------------------------------
35 T I T L E A M E N D M E N T
36 Remove line 7 and insert:
37 Amending s. 112.18, F.S.; authorizing use of specified physical
38 examination for a presumption; providing an effective date.
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Page 2 of 2
HB 557
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 557 Fire Investigator Cancer Treatment Benefits
SPONSOR(S): Salzman
TIED BILLS: IDEN./SIM. BILLS: SB 838
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Herendeen Luczynski
2) Government Operations Subcommittee
3) Appropriations Committee
4) Commerce Committee
SUMMARY ANALYSIS
In 2019, the Legislature created a special benefit package for firefighters suffering from certain types of cancer,
because studies have demonstrated a link between firefighting and cancer. The special benefit package is an
alternative to filing a workers’ compensation claim, which requires proof that workplace exposures are the
cause of a firefighter’s occupational disease. Like firefighters, fire investigators sustain significant exposure to
hazardous vapors, gases and particles that are known to contribute to chronic health conditions, including
cancer; however, fire investigators are not eligible for the special benefit package.
The bill amends the definition of “firefighter” to include Florida-certified fire investigators, making fire
investigators eligible for the special benefit package.
The special benefit package provides that firefighters who are diagnosed with certain types of cancer are
eligible for a $25,000 payment and employer-sponsored health insurance, including repayment for any
deductible, co-payment, or co-insurance amount the firefighter pays for the treatment of cancer. The firefighter
must: 1) have been working full-time as a firefighter, for a government employer, for at least five continuous
years; 2) have not used tobacco products for at least the five years prior to the cancer diagnosis; and 3) have
not been employed in any other position which is proven to create a high risk of cancer during the five years
prior to the cancer diagnosis.
Twenty-one types of cancer are covered and employment-sponsored health benefits must be made available
for 10 years after the firefighter terminates employment, so long as the firefighter is not subsequently re-
employed as a firefighter.
If a firefighter becomes disabled or dies due to cancer, the employer must consider the cancer diagnosis as an
injury or illness incurred in the line of duty. This makes the firefighter eligible for line-of-duty disability retirement
benefits and also makes surviving family members eligible for line-of-duty death benefits.
The number of Florida-certified fire investigators working full-time for state and local governments, including
special fire districts, is unclear. The Florida State Fire College has certified 1,740 fire investigators since 2005,
and about half of these people also hold certifications as firefighters. The State Fire Marshall employs 104 fire
investigators; 86 of these fire investigators are Florida-certified or in the process of becoming certified.
The bill may have an indeterminate fiscal impact on state and local governments, which are solely responsible
for the cost of the special benefit package. Three cancer claims have been reported to the Risk Management
Trust Fund by state agencies that employ firefighters since s. 112.1816, F.S., went into effect on July 1, 2019,
and $66,308 has been paid.
The effective date of the bill is July 1, 2022.
FULL ANALYSIS
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Firefighters Face an Increased Risk of Cancer
A two-part study by the Centers for Disease Control and Prevention/National Institute for Occupational Health
and Safety (NIOSH) concluded that firefighters have a nine percent greater risk of being diagnosed with
cancer – and a 14 percent greater risk of dying from cancer – than the general population of the United
States.1
The study was launched in 2010 and reviewed records of more than 30,000 career firefighters who served
in Chicago, Philadelphia, and San Francisco fire departments between 1950 and 2010.
In 2013, researchers reported statistically significant mortality and incidence rates of cancers of the
esophagus, intestine, lung, kidney, and oral cavity, as well as increased mesothelioma for
firefighters compared with the general population, and excess risk of bladder and prostate cancer at
younger ages.2
In 2015, researchers reported that the risk of developing lung cancer and leukemia increases with
exposure to smoke and hazardous chemicals that are released from burning materials, asbestos, and
diesel exhaust.3
In 2018, the federal government directed the Centers for Disease Control to create a National Firefighter
Registry that, with voluntary participation from firefighters, will track cancer and occupational risk factors to
help researchers and the medical community better understand the causes of disease and death among
firefighters.4
Special Benefit Package for Firefighters in lieu of Workers’ Compensation Benefits
The Florida Legislature took action in 2019, by creating s. 112.1816, F.S. Instead of seeking benefits
through the workers’ compensation system, where the employee must prove that workplace exposures
caused cancer, firefighters diagnosed with certain types of cancer may receive a one-time cash payment of
$25,000 and a guarantee that his or her employer-sponsored health insurance will continue while the
firefighter remains on the job and for 10 years after the firefighter terminates employment, so long as the
firefighter is not subsequently re-employed as a firefighter. The employer must reimburse the firefighter for
any deductible, co-payment, or co-insurance amount paid for the treatment of cancer.
Every state board, commission, department, division, bureau, agency, county, municipality, or other
political subdivision of the state that employs firefighters, including fire control districts, must make these
benefits available to firefighters who are employed on a full- or part-time basis.5
Eligibility Requirements
1 Centers for Disease Control and Prevention/National Institute for Occupational Health and Safety, Findings from a Study
of Cancer among U.S. Fire Fighters, www.cdc.gov/niosh/pgms/worknotify/pdfs/ ff-cancer-factsheet-final-508.pdf (last
visited Dec. 20, 2021).
2 Centers for Disease Control and Prevention/National Institute for Occupational Health and Safety, Mortality and cancer
incidence in a pooled cohort of US firefighters from San Francisco, Chicago and Philadelphia (1950− 2009),
http://www.cdc.gov/niosh/firefighters/pdfs/OEM_FF_Ca_Study_10-2013.pdf (last visited Dec. 20, 2021).
3 Centers for Disease Control and Prevention/National Institute for Occupational Health and Safety, Exposure–response
relationships for select cancer and non-cancer health outcomes in a cohort of US firefighters from San Francisco, Chicago
and Philadelphia (1950–2009), https://stacks.cdc.gov/view/cdc/34054, (last visited Dec. 20, 2021).
4 Centers for Disease Control and Prevention/National Institute for Occupational Health and Safety, National Firefighter
Registry, https://www.cdc.gov/niosh/firefighters/registry.html (last visited Dec. 20, 2021).
5 S. 112.191(a), F.S.
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To be eligible, a firefighter must be diagnosed with one of the following types of cancer: bladder cancer,
brain cancer, breast cancer, cervical cancer, colon cancer, esophageal cancer, invasive skin cancer,
kidney cancer, large intestinal cancer, lung cancer, malignant melanoma, mesothelioma, multiple myeloma,
non-Hodgkin’s lymphoma, oral cavity and pharynx cancer, ovarian cancer, prostate cancer, rectal cancer,
stomach cancer, testicular cancer, and thyroid cancer.6 Additionally, the firefighter:
Must have been employed by his or her employer for at least 5 continuous years;
Must not have used tobacco products for at least the preceding 5 years; and
Must not have been employed in any other position in the preceding 5 years which is proven to create a
higher risk for any cancer.7
Line-of-Duty Disability Retirement and Death Benefits
Many firefighters are members of the Florida Retirement System (FRS) which provides retirement benefits
to 980 participating employers, including all state and county government agencies, school boards, state
universities and community colleges, as well as many cities and special districts. 8 Firefighters who are
members of the FRS are included in a special risk class whose members receive enhanced benefits, due
to the unique challenges and risks of their jobs.9
Municipalities and special fire districts that do not participate in the FRS offer retirement plans that are
secured by the Firefighters Pension Trust Fund (FPTF), which must meet minimum requirements
established by the state.10
When a firefighter diagnosed with cancer qualifies for the $25,000 cash payment and health benefits, the
employer must consider a firefighter’s cancer diagnosis as an injury incurred in the line of duty. 11
If the firefighter becomes totally and permanently disabled by cancer, the firefighter is entitled to a line-of-
duty retirement,12 as follows:
Under the FRS, a line-of-duty disability retirement results in payment of 65 percent of the firefighter’s
average final compensation for the remainder of his or her life; 13
Under the FPTF, a line-of-duty disability retirement results in payment of at least 42 percent of the
firefighters’ average monthly compensation for the remainder of his or her life;14 and
If the firefighter did not participate in a retirement plan, the employer must pay 42 percent of the
firefighters’ most recent annual salary, for life.15
If the firefighter dies due to cancer or the treatment of cancer, the firefighter’s beneficiary is entitled to line-
of-duty death benefits,16 as follows:
6 S. 112.1816(1)(a), F.S.
7 S. 112.1816(2), F.S.
8 Department of Management Services, Division of Retirement, Florida Retirement System Pension Plan and other State
Administered Systems, Comprehensive Annual Financial Report FY 2019-2020, p. 8, Annual Reports / Publications /
Retirement / Workforce Operations / Florida Department of Management Services - DMS (myflorida.com) (last visited
Dec. 20, 2021).
9 S. 121.0515, F.S.
10 Ss. 175.021, and 175.351, F.S.; also see Department of Management Services, Municipal Police and Fire
Plans/Overview, Overview / Municipal Police and Fire Plans / Local Retirement Plans / Retirement / Workforce Operations
/ Florida Department of Management Services - DMS (myflorida.com) (last visited Dec. 20, 2021).
11 S. 112.1816(2)(b), F.S.
12 S. 112.1816(4), F.S.
13 Department of Management Services, supra note 8, at 39. Under s. 121.091(4)(b), F.S., an employee is totally and
permanently disabled if he or she cannot render useful and efficient service as an officer or employee.
14 S. 175.191, F.S., states that an employee is totally and permanently disabled if he or she cannot render useful and
efficient service as a firefighter and is likely to remain so disabled continuously and permanently.
15 S. 112.1816(3)(b), F.S.
16 S. 112.1816(3)(a), F.S
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Under the FRS, a line-of-duty death benefit provides a lifetime monthly benefit equal to the firefighter’s
salary at death to the surviving spouse. If the spouse dies, the benefit is paid on behalf of the member’s
dependent children until the youngest reaches age 18, and the benefit may be extended until the
youngest child reaches age 25 if the child is unmarried and a full time student.17
State law does not require a line-of-duty death benefit for the FPTF. However, if a firefighter with 10
years of service dies prior to retirement, the firefighter’s beneficiary receives either early or normal
retirement benefits for 10 years. 18
If the firefighter did not participate in a retirement plan, the employer must provide a death benefit of at
least 42 percent of the firefighters’ most recent annual salary to the beneficiary, for at least 10 years.19
Additionally, the firefighter’s beneficiary is eligible for a death benefit of $75,000. 20
The employer is required to pay the costs of the special benefit package without increasing employee
contributions to a retirement plan.21
Three cancer claims have been reported to the Risk Management Trust Fund by state agencies that employ
firefighters since s. 112.1816, F.S., went into effect on July 1, 2019 and $66,308 has been paid.22 Two
claimants received the $25,000 cash payment and compensation for medical benefits , and one claim was
settled for $15,000.23
Workers’ Compensation Benefits
A firefighter who declines the special benefit package may instead file a claim for workers’ compensation
benefits. Workers’ compensation is a no-fault system that provides medical benefits and compensation for lost
wages when an employee is injured or killed in the course of employment.
The Employee Must Demonstrate Causation
In addition to on-the-job injuries, employers may be required to pay compensation for lost wages or furnish
benefits (such as medical care, medical devices, attendant care) if an occupational disease causes disablement,
is due to the nature of the employee’s occupation, and the employee contracted the disease during the course
of his or her employment.24 In general, occupational diseases are compensable if:
A condition peculiar to the occupation causes the disease;
The employee contracts the disease on the job;
The job presents a particular hazard of the disease;
The incidence of the disease is substantially higher in the occupation than in the public;
The nature of the employment was a major contributing cause of the disease; and
Epidemiological studies show that exposure to the specific substance involved, at the levels to which the
employee was exposed, may cause the precise disease sustained by the employee. 25
Thus, under the workers’ compensation system, a firefighter suffering from cancer must show a causal
relationship between the diagnosis of cancer and his or her work as a firefighter to receive medical benefits
and compensation for lost work time.
Temporary Disability
17 Department of Management Services, supra note 8, at 39.
18 S. 175.201, F.S.
19 S. 112.1816(3)(b), F.S.
20 S. 112.191(2)(a), F.S.
21 S. 112.1816(5), F.S.
22 Department of Financial Services, Agency Analysis of 2022 House Bill 557, p. 1 (Dec. 7, 2021).
23 Email from Austin Stowers, Director of Legislative Affairs, Department of Financial Services, RE: HB 557 (Dec. 22,
2021).
24 Ss. 440.09 and 440.151, F.S.
25 S. 440.151(2), F.S.
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Disability is defined as the incapacity to earn wages the employee was receiving at the time of injury. 26 It is a
measure of the earning capacity that is lost as a result of a work-related injury.27 Disability may be temporary or
permanent, and partial or total.28
When an authorized doctor declares an injured employee to be temporarily but totally disabled, the employee
is eligible for up to 260 weeks (five years) of disability benefits.29
Injured workers who earn less than the statewide average weekly wage30 are paid two thirds of their average
weekly salary, typically beginning on the eighth day after the employee loses time from work. 31 The minimum
payment is $20 per week and the maximum payment is 100 percent of the statewide average weekly wage;
thus, payments to injured workers who earn more than the statewide average weekly wage are capped at the
statewide average weekly wage that was in effect on the date of injury. 32
Temporary disability benefits end when the injured worker’s doctor indicates that the employee can work in
some capacity and the employee returns to work, or when the employee reaches the maximum medical
improvement and the carrier has paid five years of benefits. 33
Total and Permanent Disability
When an employee is totally and permanently disabled after the date of maximum medical improvement, the
employee who is not able to work in any job, for any employer, must be paid 66 2/3 percent of the employee’s
average weekly wage at the time of injury, or up to 100 percent of the statewide average weekly wage, until
age 75, or until the end of the injured workers’ life if the injury prevented the worker from working sufficient
quarters to be eligible for Social Security disability.34
An order of compensation may require lifetime medical benefits for a catastrophic injury. Additionally, people
who are disabled prior to age 65 are eligible for Medicare.35 If a totally and permanently disabled worker
receives Social Security disability benefits, the federal benefit may offset some or all of the benefits paid by the
workers’ compensation system.36
26 S. 440.02(13), F.S.
27 Metropolitan Stevedore Co. v. Rambo, 521 U.S. 121 (1997).
28 S. 440.15, F.S.
29 S. 440.15(2)(a), F.S., limits disability benefits to 104 weeks (two years), but the Florida Supreme Court held that this limit
was unconstitutional and directed that a prior limit of 260 weeks (five years) be reinstated. See Westphal v. City of St.
Petersburg, 194 So. 3d 311 (Fla. 2016).
30 S. 440.12(2), F.S., defines the “statewide average weekly wage” as the average weekly wage paid by employers’
subject to the Florida Reemployment Assistance Program Law as reported to the Department of Economic Opportunity.
31 S. 440.14(1), F.S.
32 S. 440.12(2), F.S.
33 S. 440.15(3)(d), F.S.
34 S. 440.15(1)(a) and (b), F.S.
35 Department of Management Services, myBenefits, Frequently Ask ed Questions-Retirees,
https://www.mybenefits.myflorida.com/health/res ourc es/faq_s/frequently_asked_questions_retirees (last visited Dec. 20,
2021).
36 S. 440.15(1)(b) and (f), F.S.
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Death Benefits
In the event that an injured worker dies within one year of an accident that causes injury or within five years of
continuous disability, the employer must pay up to $7,500 for funeral expenses; and compensation up to
$150,000.37
The surviving spouse may also receive payment for up to 1,800 classroom hours at a college or career center,
or 80 semester hours at a community college. If the deceased was a state employee, the spouse is entitled to
a full tuition waiver at a state university or community college.38
In cases that involve a compensable occupational disease, death benefits are provided to surviving
beneficiaries, if the employee demonstrates causation and sufficient exposure to a specific harmful substance
shown to be present in the workplace, and the employee dies within 350 weeks (6.7 years) after the last
exposure to the harmful substance.39
Statutory Presumptions
Florida law includes several statutory presumptions that make a disability due to certain communicable
diseases compensable under workers’ compensation law, for first responders, unless the employer can prove
that the disease was caused by a non-work related event or exposure. For firefighters, these laws include heart
disease, hypertension, hepatitis, meningococcal meningitis, and tuberculosis.40
Workers’ compensation law does not include any statutory presumption for firefighters who are diagnosed with
cancer.
Florida-certified Fire Investigators
Fire investigators determine the origin and cause of fires and explosions, preserve evidence and ensure that
the chain of custody is maintained, and create a record of the investigation. They also support law enforcement
in the detection and apprehension of persons suspected of arson and explosive-related crimes.
According to experts in the field, the best evidence of the cause and origin of a fire may be found after a fire
has been suppressed and before the process of “overhaul” begins. Overhaul involves detecting and
extinguishing hidden fires or hot spots that may rekindle. Thus, fire investigators, like firefighters, face
significant exposure to hazardous vapors, gases, and dangerous chemicals and carcinogens that contribute to
chronic health conditions, including cancer.41 Respiratory protective equipment is crucial to first responders
working in and around a fire scene.42
The Florida State Fire College provides training for firefighters, fire inspectors, fire investigators, and a variety
of administrative positions within the fire service.43 Certified firefighters, certified law enforcement officers, law
enforcement crime scene technicians, and certified fire safety inspectors who have fire investigation
responsibilities may become certified fire investigators by completing a 360-hour certification program and
37 S. 440.16(1)(a)-(b),F.S., states that compensation is based on 50 percent of the statewide average weekly wage to the
surviving spouse if there are no children, and 66 2/3 percent of the statewide average weekly wage if the injured worker
had a surviving spouse and children.
38 S. 440.16(1)(c), F.S.
39 S. 440.151(1)(a), F.S.
40 Ss. 112.18, 112.181 and 175.231, F.S.
41 International Association of Arson Investigators, Inc., Fire Investigator Health and Safety Best Practices, May 4, 2020,
FireInvestigatorHealthS afetyBestPracticesSecond.pdf, (last visited Dec. 20, 2021); and FireRescue1, It’s in the smok e:
cancer-causing compounds and contaminates, August 31, 2018, It’s in the smoke: cancer-causing compounds and
contaminates (firerescue1.com) (last visited Dec. 20, 2021).
42 ScienceDirect, The “Warm Zone” Cases: Environmental Monitoring Immediately Outside the Fire Incident Response
Arena by Firefighters, September 2018, at 352-355, The “Warm Zone” Cases: Environmental Monitoring Immediately
Outside the Fire Incident Response Arena by Firefighters - ScienceDirect (last visited Dec. 20, 2021).
43 Department of Financial Services, Division of State Fire Marshal, Certification and Testing,
www.myfloridacfo.com/Division/SFM/BFST/Standards/default.htm (last visited Dec. 20, 2021).
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passing a certification exam.44 The program includes coursework on fire chemistry, fire origin and cause, fire
protection systems, building construction, latent investigation, arson investigation, post blast investigation, and
legal issues for fire investigators.45
Since 2005, the Florida State Fire College has certified 1,740 fire investigators; 947 of these persons also hold
a firefighter certification.46 The number of certified investigators working as full-time fire investigators for state
and local governments is not known.
The State Fire Marshal’s Division of Investigative and Forensic Services, Bureau of Fire and Arson
Investigation employs 104 fire investigators and 86 of these employees are either Florida-certified or in the
process of becoming certified. These fire investigators respond to fire scenes throughout the state, on the day
of a fire or within three days of a fire, and spend an average of three hours on site for each investigation.47
They handled an average of 39 fires per fire investigator in 2019, and 33 fires per investigator in 2020. 48
The State Fire Marshal conducts investigations when:
A local agency does not have an organized fire department or arson investigators within its law
enforcement agency;
An initial investigation gives reason to believe a fire or explosion was the result of an intentional or
reckless act, or the cause of a fire or explosion is not readily determined by the initial investigation;
A firefighter is injured or killed in the line of duty;
A civilian is injured or killed by a fire or explosion;
The cost of a fire or explosion exceeds $1 million; or
A fire or explosion may be due to the failure of a fire suppression or detection device.49
According to the U.S. Fire Administration, firefighters in Florida spent about 1.8 percent of their time fighting
fires, and 73.2 percent of their time responding to requests for emergency medical services. 50 Thus, fire
investigators employed by the State Fire Marshal likely have as much exposure to cancer-causing carcinogens
as the 19,000 firefighters who respond to the scenes of active fires in Florida.51
Some employers that participate in FRS consider fire investigators to be members of the special risk class,
while others place fire investigators in the regular class, according to the Department of Management Services,
which oversees the FRS. Employees in the special risk class receive enhanced benefits. For example, a line-
of-duty disability retirement benefit for a member of the special risk class is 65 percent of the employee’s
monthly salary, while an employee in the regular class receives 42 percent of his or her monthly salary. 52 If a
fire investigator placed in the regular class wishes to receive the increased benefits of the special risk class, he
or she must complete an application and his or her employer must certify that the fire inspectors’ duties include
on-the-scene firefighting, fire prevention, or fire training, or the supervision of persons who have such
responsibilities.53
44 Department of Financial Services, Division of State Fire Marshal, Bureau of Fire Standards & Training, Fire
Investigation Certification, https://www.myfloridacfo.com/division/sfm/bfst/Standards/FireInvestigator.pdf (last visited Dec.
20, 2021).
45 Rule 69A-37.065(3), F.A.C.
46 Department of Financial Services, supra note 22, at 1.
47 Department of Financial Services, supra note 22, at 1.
48 Email from Austin Stowers, Director of Legislative Affairs, Department of Financial Services, RE: HB 557 / SB 838 (Jan.
11, 2021).
49 S. 633.112, F.S., and Rule 69D-4.001, F.A.C.
50 U.S. Fire Administration, Florida Fire Loss and Fire Department Profile,
https://www.usfa.fema.gov/ data/statistics/states/florida.html (last visited Jan. 11, 2022). The U.S. Fire Administration is an
entity of the U.S. Department of Homeland Security’s Federal Emergency Management Agency.
51 U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2020, Firefi ghters,
https://www.bls.gov/oes/current/oes332011.htm (last visited Jan. 12, 2022).
52 S. 121.091(4)(f), F.S.
53 S. 121.0515(3)(b), F.S., and Rule 60S-1.005, F.A.C.
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A fire investigator who is diagnosed with cancer may file a petition for workers’ compensation benefits. If the
fire investigator’s cancer is compensable as an occupational disease, the fire investigator is eligible for
temporary disability benefits described above, based on his or her level of impairment, and may be deemed
totally and permanently disabled if he or she is unable to work in any job for any employer.
A fire investigator who is disabled by cancer, but denied workers’ compensation benefits, may be eligible for a
general disability retirement rather than a line-of-duty retirement, so long as the fire investigator has completed
eight years of service as a member of the FRS or 10 years of service as a member of the FPTF. The fire
investigator would be paid 25 percent of his or her average monthly compensation.54
Effect of the Bill
The bill amends the definition of “firefighter” to make fire investigators certified by the Florida State Fire College
eligible for the special benefit package provided by s. 112.1816, F.S.
The bill also expands the duties of firefighters to include the investigation of fires and explosives as well as the
protection of life and property and the enforcement of fire prevention laws.
The special benefit package would be available to any full-time firefighter or certified fire investigator who has
been employed by the state or a local government, including special fire districts, for at least five continuous
years and is diagnosed with one of 21 types of cancer discussed above. Additionally, the fire investigator must
not have used tobacco products and cannot have been employed in any other position which is proven to
create a high risk of cancer during the five years prior to diagnosis.
A certified fire investigator who qualifies for the special benefit package would be presumed to have developed
cancer in the course of employment, due to the exposures of the job, and be eligible for a line-of-duty disability
retirement (discussed above) if he or she became unable to work as a firefighter.
If a certified fire investigator qualifies for the special benefit package and dies due to cancer or the treatment of
cancer, his or her beneficiaries would be eligible for line-of-duty death benefits (discussed above). The fire
investigator’s beneficiary would also be eligible for a $75,000 death benefit paid by the employer or the
employer’s liability insurance carrier.
The cost of the benefits would be paid by the employer; the employer would not be permitted to increase
employee contributions to a retirement plan to pay for the benefits.
B. SECTION DIRECTORY:
Section 1. Amends s. 112.1816(1)(c), F.S., relating to firefighters; cancer diagnosis.
Section 2. Provides a statement of important state interest.
Section 3. Provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues: None
2. Expenditures: State agencies that employ certified fire investigators would pay the costs of benefits
and may not raise employee contributions to an employer-sponsored retirement plan to do so.
Costs include the $25,000 payment; continuation of health insurance for 10 years after the
54 Ss. 121.091(4)(f) and 175.191(1), F.S.
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firefighter separates from employment; reimbursement for all co-payments, deductibles, and co-
insurance payments related to the treatment of cancer; and the cost of any line-of-duty disability or
death benefits that may be required. The state government employer also would pay a $75,000
survivor’s benefit if a fire investigator is eligible for the benefits of s. 112.1816, F.S., and dies from
cancer.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues: None.
2. Expenditures: Local governments that employ certified fire investigators, including special fire
districts, would pay the costs of benefits and may not raise employee contributions to an employer-
sponsored retirement plan to do so. Costs include the $25,000 payment; continuation of health
insurance for 10 years after the firefighter separates from employment; reimbursement for all co-
payments, deductibles, and co-insurance payments related to the treatment of cancer; and the cost
of any line-of-duty disability or death benefits that may be required. The local government employer
also would pay a $75,000 survivor’s benefit if a fire investigator is eligible for the benefits of s.
112.1816, F.S., and dies from cancer.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
The cost of benefits for certified fire investigators is not known.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, section 18, of the Florida Constitution may
apply because this bill requires cities and counties and special districts to spend money or take an
action that requires the expenditure of money; however, an exemption may apply as the Legislature
has determined that this bill satisfies an important state interest and similarly situated persons are
all required to comply.
2. Other:
Actuarial Requirements
Article X, s. 14 of the Florida Constitution provides:
A governmental unit responsible for any retirement or pension system supported in
whole or in part by public funds shall not after January 1, 1977, provide any increase in
the benefits to the members or beneficiaries of such system unless such unit has made
or concurrently makes provision for the funding of the increase in benefits on a sound
actuarial basis.
Article X, s. 14 of the State Constitution is implemented by statute under part VII of ch. 112, F.S., the
“Florida Protection of Public Employee Retirement Benefits Act” (Act). The Act establishes minimum
standards for the operation and funding of public employee retirement systems and plans in the State
of Florida. It prohibits the use of any procedure, methodology, or assumptions the effect of which is to
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transfer to future taxpayers any portion of the costs which may reasonably have been expected to be
paid by the current taxpayers.
B. RULE-MAKING AUTHORITY:
The bill does not alter existing rulemaking authority or require additional rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 557 2022
1 A bill to be entitled
2 An act relating to fire investigator cancer treatment
3 benefits; amending s. 112.1816, F.S.; revising the
4 definition of the term "firefighter" to include full-
5 time, Florida-certified fire investigators for the
6 purpose of expanding eligibility for certain cancer
7 treatment benefits to include such investigators;
8 providing a declaration of important state interest;
9 providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Paragraph (c) of subsection (1) of section
14 112.1816, Florida Statutes, is amended to read:
15 112.1816 Firefighters; cancer diagnosis.—
16 (1) As used in this section, the term:
17 (c) "Firefighter" means an individual employed as a full-
18 time firefighter or full-time, Florida-certified fire
19 investigator within the fire department or public safety
20 department of an employer whose primary responsibilities are the
21 prevention and extinguishing of fires; the investigation of
22 fires and explosives; the protection of life and property; and
23 the enforcement of municipal, county, and state fire prevention
24 codes and laws pertaining to the prevention and control of
25 fires.
Page 1 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0557-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 557 2022
26 Section 2. The Legislature determines and declares that
27 this act fulfills an important state interest.
28 Section 3. This act shall take effect July 1, 2022.
Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0557-00
HB 749
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 749 Fraud Prevention
SPONSOR(S): Clemons
TIED BILLS: IDEN./SIM. BILLS: SB 1292
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fortenberry Luczynski
2) State Administration & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The bill makes the following changes to existing law to help prevent insurance fraud:
Service Contracts and Agreements –
o Contracts – establishes that sellers of service contracts that include automatic renewal provisions
must allow consumers to cancel these contracts in the same manner and by the same means as the
consumers entered the contracts;
o Agreements – expands the advertising violations for which a service agreement company or
salesperson can be subject to licensure discipline or criminal penalties; requires that a service
agreement company’s or salesperson’s disclosures in written advertisements be made in at least 12 -
point, boldface type and include a Florida Company Code; requires such company or salesperson
disclose the full name of the company or salesperson in radio or television advertisements; requires
that a service agreement salesperson must identify his or her full legal name and license number
when beginning a solicitation call and his or her telephone number when ending such a call.
Public Adjusters and Public Adjuster Apprentices – establishes a new maximum fine amount, not to
exceed $20,000 per act, for a public adjusters or public adjuster apprentices who commit certain prohibited
acts during a state of emergency declared by the Governor; implements the same penalties for individuals
who engage in these prohibited acts, but are not public adjusters or public adjuster apprentices, and are not
otherwise exempt from licensure.
Investigation by the Division of Investigative and Forensic Services (DIFS) and the State Fire Marshal
(SFM) –
o Public Records Exemptions for Active Investigations – amends the definition of “active” as it
pertains to investigations of fraudulent insurance acts by DIFS and of fires and explosions by SFM
so that it has the same meaning as “active” in the public records law;
o Compliance with Investigations – removes language that makes it a misdemeanor for a person
who violates the statute regarding investigation of fraudulent insurance claims and crimes related to
a fire or explosion loss; establishes that the Department of Financial Services may fine an insurer up
to $2,000 per day if the insurer fails or refuses to comply with the investigation of a fraudulent
insurance act by DIFS, or a fire or explosion by the SFM.
Prosecution of False and Fraudulent Insurance Claims – replaces the word “and” with the word “or” that
violations of certain statutes are separate crimes, and criminal prosecution for violation of either section
must begin within five years of the violation; allows an insurer that has been damaged by a false or
fraudulent insurance act to recover investigation and litigation expenses, including attorney fees, if the
insurer has reported the false or fraudulent act to DIFS and there has been a criminal adjudication of guilt.
The bill has no impact on state or local government revenues or expenditures and no direct economic impact on the
private sector.
The bill as effective upon becoming law except as otherwise provided within the bill.
This docum ent 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:
Service Contracts and Agreements
A service contract is a written contract for the performance of services over a fixed time period or for a
specific duration of time.1 A service agreement is a contract or agreement indemnifying the agreement
holder for the motor vehicle listed on the agreement and arising out of the ownership, operation, and
use of the motor vehicle against loss cause by failure of any mechanical or other component part, or
any mechanical or other component part that does not function as it was originally intended. 2
Cancellation of Service Contracts
A consumer may enter a service contract in a variety of ways. Sometimes entering a service contract is
accomplished easily by a consumer, but the consumer may have difficulty cancelling the contract
because the service contract requires cancellation by a different method. 3 Any seller that sells or offers
to sell a service contract to a consumer that has an automatic renewal provision must “disclose the
automatic renewal provision clearly and conspicuously in the contract or contract offer.” 4 However,
current law does not require that a service contract or offer for a contract to provide a specific method
of contract cancellation.5
Effect of the Bill
The bill establishes that sellers of service contracts that include automatic renewal provisions must
allow consumers to cancel these contracts in the same manner and by the same means as the
consumers entered into the contracts.
Advertising Disclosures by Service Agreement Companies and Salespersons
Current law provides that a service agreement company or salesperson that engages in certain acts is
subject to denial, suspension, revocation, or refusal to renew or continue any appointment or license, or
is guilty of a second-degree misdemeanor.6 These acts include limited violations of advertising
requirements.7
Effect of the Bill
The bill expands the advertising violations for which a service agreement company or salesperson can
be subject to licensure discipline or criminal penalties. The bill requires that a service agreement
company or salesperson make disclosures in written advertisements in at least 12-point, boldface type.
Such written advertisements must include a Florida Company Code, in addition to the name and
address of the company. The bill requires that a service agreement company or salesperson disclose
the full legal name of the company or salesperson in radio or television advertisements. Additionally,
the bill requires that a service agreement salesperson must identify his or her full legal name and
license number when beginning a solicitation call and his or her telephone number when ending such a
call. The bill specifies that the phone number may be either the telephone number on file with the
Department of Financial Service (DFS) or another number at which the salesperson may be reached.
Violation of any of these requirements by a company or a salesperson may result in the denial,
1 S. 501.165(1)(d), F.S. This statute does not apply to warranty associations licensed under ch. 634, F.S.
2 S. 634.011(8), F.S.
3 Department of Financial Services, Agency Analysis of 2022 House Bill 749, p. 1 (Dec. 16, 2021).
4 S. 501.165(2)(a), F.S.
5 DFS, supra, note 3, at 1.
6 S. 634.095, F.S.
7 S. 634.095(3), F.S.
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suspension, revocation, or refusal to renew or continue an appointment or license, or a second-degree
misdemeanor. These portions of the bill are effective January 1, 2023.
Public Adjusters and Public Adjuster Apprentices
Public adjusters and public adjuster apprentices are prohibited from engaging in a list of practices in
current law and can be fined up to $10,000 per act for engaging in these practices at any time,
including a declared state of emergency.8 Any person who engages in the same acts, but is not a
public adjuster or public adjuster apprentice, and who is not otherwise exempt from licensure, is guilty
of the unlicensed practice of public adjusting and may also be subject to the same fines. 9
Effect of the Bill
The bill establishes a new maximum fine amount, not to exceed $20,000 per act, for a public adjusters
or public adjuster apprentices who commit certain prohibited acts during a state of emergency declared
by the Governor through an executive order or proclamation. The bill implements the same penalties for
individuals who engage in these prohibited acts, but are not public adjusters or public adjuster
apprentices, and are not otherwise exempt from licensure.
Investigations by the Division of Investigative and Forensic Services (DIFS) and the State Fire
Marshal (SFM)
Public Records Exemptions for Active Investigations
Chapter 119, F.S., contains the state policy on public records, including specifics about when
documents are exempt from release in response to public records requests. In general, documents
related to an investigation by a state agency are exempt while the investigation is “active.” Under s.
119.011(3)(d), F.S., “active” has the following meaning:
1. Criminal intelligence information shall be considered “active” as long as it is
related to intelligence gathering conducted with a reasonable, good faith belief
that it will lead to detection of ongoing or reasonably anticipated criminal
activities.
2. Criminal investigative information shall be considered “active” as long as it is
related to an ongoing investigation which is continuing with a reasonable, good
faith anticipation of securing an arrest or prosecution in the foreseeable future.
In addition, criminal intelligence and criminal investigative information shall be
considered “active” while such information is directly related to pending
prosecutions or appeals. The word “active” shall not apply to information in cases
which are barred from prosecution under the provisions of s. 775.15 or other
statute of limitation.
However, the statutes regarding investigations of fraudulent insurance acts by DIFS10 and
investigations of fires and explosions by the SFM11 contain their own definitions of an active
investigation. These statutes provide that an investigation is “active” while the investigation with being
conducted with a “reasonable, good faith belief” that it might lead to the filing of administrative, civil or
criminal proceedings.12 Additionally, an investigation does not cease to be active if DIFS or SFM is
“proceeding with reasonable dispatch, and [has]…a good faith belief that action” might be initiated by
DFS or another administrative or law enforcement agency. 13
8 S. 626.854(22), F.S.
9 S. 626.854(22)(c),F.S.
10 See s. 626.989, F.S.
11 See s.633.112, F.S.
12 Ss. 626.989 and 633.112, F.S.
13 Id.
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Effect of the Bill
The bill amends the definition of “active” as it pertains to investigations of fraudulent insurance acts by
DIFS and of fires and explosions by SFM so that they have the same meaning as “active” in the public
records law.14
Compliance with Investigation by DIFS and SFM
Statutes require insurers to report knowledge of fraudulent insurance acts or any other act or practice
which constitutes a crime to DIFS15 and knowledge that an intentional act resulted in a fire or explosion
loss to its insured’s real or personal property.16 However, these statutes do not provide consequences
for an insurer’s failure to report this knowledge.
Effect of the Bill
The bill specifies that DFS may fine an insurer up to $2,000 per day, until it deems the insurer to be
compliant, if an insurer fails or refuses to comply with the DIFS’s investigation of a fraudulent insurance
act or SFM’s investigation of a fire or explosion, including the requirement to report fraudulent acts to
DFS. The bill removes language that makes it a misdemeanor for a person who violates the statute
regarding investigation of fraudulent insurance claims and crimes related to a fire or explosion loss.
Prosecution of False and Fraudulent Insurance Claims and Crimes
Criminal Charges for Insurance Fraud
Section 775.15(11), F.S., specifies that felony violations of two specific statutes 17 regarding criminal
insurance fraud must be commenced within five years after the violation is committed. However, the
present statutory construction could be interpreted to mean that someone must violate both of these
statutes before they are prosecuted for a felony violation of s. 775.15(11), F.S.
Effect of the Bill
The bill replaces the word “and” with the word “or” between two statutory sections to clarify that
violations of either section are separate crimes, and that criminal prosecution for violation of either
section must begin within five years of the violation of that section.
Recovery of Costs by Insurers
Section 817.234, F.S., provides criminal penalties for any person who commits insurance fraud by
engaging in certain acts with intent to injure, defraud, or deceive any insurer. An insurer that has been
damaged as a result of a violation of this statute has a cause of action to recover compensatory
damages, plus reasonable investigation and litigation expenses, including attorney fees, at a trial or
appellate court, if the violation has resulted in a criminal adjudication of guilt. 18
Effect of the Bill
In addition to the requirement under existing law that there has been a criminal adjudication of guilt, the
bill adds the requirement that, in order to recover reasonable investigation and litigation expenses,
14 S. 119.011(3)(d), F.S.; This change may have the effect of expanding a public records exemption. Please see Drafting
Issues for further detail.
15 S. 626.989(6), F.S.
16 S. 633.126(2), F.S.
17 See ss. 440.105 and 817.234, F.S.
18S. 817.235(5), F.S.
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including attorney fees when it has been damaged due to a false or fraudulent insurance claim, an
insurer must report the false or fraudulent claim to DIFS.
B. SECTION DIRECTORY:
Section 1. Amends s. 501.165, F.S., relating to automatic renewal of service contracts.
Section 2. Amends s. 626.854, F.S., relating to “public adjuster” defined; prohibitions.
Section 3. Amends s. 626.989, F.S., relating to investigation by department or Division of Investigative
and Forensic Services; compliance; immunity; confidential information; reports to division;
division investigator’s power of arrest.
Section 4. Amends s.633.112, F.S., relating to State Fire Marshal; hearings; investigations;
recordkeeping and reports; subpoenas of witnesses; orders of circuit court.
Section 5. Amends s. 633.126, F.S., relating to Investigation of fraudulent insurance claims and
crimes; immunity of insurance companies supplying information.
Section 6. Amends s. 634.095, F.S., relating to prohibited acts.
Section 7. Amends s. 775.15, F.S., relating to time limitations; general time limitations; exceptions.
Section 8. Amends s. 817.234, F.S., relating to false and fraudulent insurance claims.
Section 9. Provides that the bill is effective upon becoming law except as otherwise provided.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
STORAGE NAME: h0749.IBS PAGE: 5
DATE: 1/16/2022
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill requires DIFS to adopt rules to administer the statutory sections regarding investigation of
fraudulent insurance acts and fire or explosion claims or crimes, but the bill provides DIFS with the
authority necessary to adopt these rules.
C. DRAFTING ISSUES OR OTHER COMMENTS:
The changes to the definition of “active” in sections 3 (lines 158-166) and 4 (lines 255-263) of the bill
may have the unintended consequence of expanding existing public records exemptions for
investigations by DIFS and SFM such that a separate public records bill might be required. However,
this concern has been discussed with the bill sponsor and he intends to file an amendment to remove
the language that changes the definition of “active” from the bill.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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DATE: 1/16/2022
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 749 2022
1 A bill to be entitled
2 An act relating to fraud prevention; amending s.
3 501.165, F.S.; requiring sellers to allow consumers to
4 cancel in specified manners and by specified means
5 service contracts that have automatic renewal
6 provisions; amending s. 626.854, F.S.; revising
7 maximum fines for public adjusters and public adjuster
8 apprentices for certain violations under a specified
9 circumstance; revising maximum fines for certain
10 violations by certain persons under a specified
11 circumstance; amending s. 626.989, F.S.; defining the
12 term "active"; deleting provisions relating to
13 circumstances under which investigations are
14 considered active; authorizing the Department of
15 Financial Services to impose an administrative fine on
16 insurers under certain circumstances; authorizing the
17 Division of Investigative and Forensic Services to
18 adopt rules; providing requirements for the rules;
19 amending s. 633.112, F.S.; defining the term "active";
20 deleting provisions relating to circumstances under
21 which investigations are considered active; amending
22 s. 633.126, F.S.; authorizing the department to impose
23 an administrative fine on insurance companies under
24 certain circumstances; deleting criminal penalties;
25 authorizing the division to adopt rules; providing
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26 requirements for the rules; amending s. 634.095, F .S.;
27 revising requirements for advertisements issued or
28 caused to be issued by service agreement companies or
29 licensed salespersons; amending s. 775.15, F.S.;
30 revising felony violations for which prosecutions must
31 be commenced within a specified timeframe; amending s.
32 817.234, F.S.; providing that certain insurers are
33 entitled to specified expenses at trials and appellate
34 courts under certain circumstances; providing
35 effective dates.
36
37 Be It Enacted by the Legislature of the State of Florida:
38
39 Section 1. Subsection (2) of section 501.165, Florida
40 Statutes, is amended to read:
41 501.165 Automatic renewal of service contracts.—
42 (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.—
43 (a) A Any seller that sells, leases, or offers to sell or
44 lease any service to a consumer pursuant to a service contract
45 that has an automatic renewal provision, unless the consumer
46 cancels that contract, shall disclose the automatic renewal
47 provision clearly and conspicuously in the contract or contract
48 offer.
49 (b) A Any seller that sells or offers to sell any service
50 to a consumer pursuant to a service contract the term of which
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51 is a specified period of 12 months or more and that
52 automatically renews for a specified period of more than 1
53 month, unless the consumer cancels the contract, shall provide
54 the consumer with written or electronic notification of the
55 automatic renewal provision. Notification shall be provided to
56 the consumer no less than 30 days or no more than 60 days before
57 the cancellation deadline pursuant to the automatic renewal
58 provision. Such notification shall disclose clearly and
59 conspicuously:
60 1. That unless the consumer cancels the contract the
61 contract will automatically renew.
62 2. Methods by which the consumer may obtain details of the
63 automatic renewal provision and cancellation procedure, whether
64 by contacting the seller at a specified telephone number or
65 address, by referring to the contract, or by any other method.
66 (c) A seller that fails to comply with the requirements of
67 this subsection violates is in violation of this subsection
68 unless the seller demonstrates that:
69 1. As part of the seller's routine business practice, the
70 seller has established and implemented written procedures to
71 comply with this section and enforces compliance with t he
72 procedures;
73 2. Any failure to comply with this subsection is the
74 result of error; and
75 3. As part of the seller's routine business practice,
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76 where an error has caused the failure to comply with this
77 subsection, the unearned portion of the contract su bject to the
78 automatic renewal provision is refunded as of the date on which
79 the seller is notified of the error.
80 (d) A seller shall allow a consumer to cancel a service
81 contract that has an automatic renewal provision in the same
82 manner, and by the same means, as the service contract was
83 entered into.
84 (e)(d) This subsection does not apply to:
85 1. A financial institution as defined in s. 655.005 or any
86 depository institution as defined in 12 U.S.C. s. 1813(c)(2).
87 2. A foreign bank maintaining a branch or agency licensed
88 under the laws of any state of the United States.
89 3. Any subsidiary or affiliate of an entity described in
90 subparagraph 1. or subparagraph 2.
91 4. A health studio as defined in s. 501.0125.
92 5. Any entity licensed under chapter 624, chapter 627,
93 chapter 634, chapter 636, or chapter 641.
94 6. Any electric utility as defined in s. 366.02.
95 7. Any private company as defined in s. 180.05 providing
96 services described in chapter 180 which is competing against a
97 governmental entity or has a governmental entity providing
98 billing services on its behalf.
99 (f)(e) A violation of this subsection renders the
100 automatic renewal provision void and unenforceable.
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101 Section 2. Paragraphs (b) and (c) of subsection (22) of
102 section 626.854, Florida Statutes, are amended, and paragraph
103 (a) of that subsection is republished, to read:
104 626.854 "Public adjuster" defined; prohibitions.—The
105 Legislature finds that it is necessary for the protection of the
106 public to regulate public insurance adjusters and to prevent the
107 unauthorized practice of law.
108 (22)(a) Any following act by a public adjuster, a public
109 adjuster apprentice, or a person acting on behalf of a public
110 adjuster or public adjuster apprentice is prohibited and shall
111 result in discipline as applicable under this part:
112 1. Offering to a residential property owner a rebate,
113 gift, gift card, cash, coupon, waiver of any insurance
114 deductible, or any other thing of value in exchange for:
115 a. Allowing a contractor, a public adjuster, a public
116 adjuster apprentice, or a person acting on behalf of a public
117 adjuster or public adjuster apprentice to conduct an inspection
118 of the residential property owner's roof; or
119 b. Making an insurance claim for damage to the residential
120 property owner's roof.
121 2. Offering, delivering, receiving, or accepting any
122 compensation, inducement, or reward for the referral of any
123 services for which property insurance proceeds would be used for
124 roofing repairs or replacement.
125 (b) Notwithstanding the fine set forth in s. 626. 8698, a
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126 public adjuster or public adjuster apprentice may be subject to
127 a fine not to exceed $10,000 per act for a violation of this
128 subsection and a fine not to exceed $20,000 per act for a
129 violation of this subsection that occurs during a state of
130 emergency declared by executive order or proclamation of the
131 Governor pursuant to s. 252.36.
132 (c) A person who engages in an act prohibited by this
133 subsection and who is not a public adjuster or a public adjuster
134 apprentice, or is not otherwise exempt from licensure, is guilty
135 of the unlicensed practice of public adjusting and may be:
136 1. Subject to all applicable penalties set forth in this
137 part.
138 2. Notwithstanding subparagraph 1., subject to a fine not
139 to exceed $10,000 per act for a violation of this subse ction and
140 a fine not to exceed $20,000 per act for a violation of this
141 subsection that occurs during a state of emergency declared by
142 executive order or proclamation of the Governor pursuant to s.
143 252.36.
144 Section 3. Subsections (7), (8), and (9) of section
145 626.989, Florida Statutes, are renumbered as subsections (9),
146 (10), and (11), respectively, subsections (5) and (6) are
147 amended, and new subsections (7) and (8) and subsection (12) are
148 added to that section, to read:
149 626.989 Investigation by department or Division of
150 Investigative and Forensic Services; compliance; immunity;
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151 confidential information; reports to division; division
152 investigator's power of arrest.—
153 (5) The office's and the department's papers, documents,
154 reports, or evidence relative to the subject of an investigation
155 under this section are confidential and exempt from the
156 provisions of s. 119.07(1) until such investigation is completed
157 or ceases to be active. For purposes of this subsection, the
158 term an investigation is considered "active" has the same
159 meaning as in s. 119.011(3)(d) while the investigation is being
160 conducted by the office or department with a reasonable, good
161 faith belief that it could lead to the filing of administrative,
162 civil, or criminal proceedings. An investigation does not cease
163 to be active if the office or department is proceeding with
164 reasonable dispatch and has a good faith belief that action
165 could be initiated by the office or department or other
166 administrative or law enforcement agency. After an investigation
167 is completed or ceases to be active, portions of records
168 relating to the investigation shall remain exempt from the
169 provisions of s. 119.07(1) if disclosure would:
170 (a) Jeopardize the integrity of another active
171 investigation;
172 (b) Impair the safety and soundness of an insurer;
173 (c) Reveal personal financial information;
174 (d) Reveal the identity of a confidential source;
175 (e) Defame or cause unwarranted damage to the good name or
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176 reputation of an individual or jeopardize the safety of an
177 individual; or
178 (f) Reveal investigative techniques or procedures.
179 Further, such papers, documents, reports, or evidence relative
180 to the subject of an investigation under this section shall not
181 be subject to discovery until the investigation is completed or
182 ceases to be active. Office, department, or division
183 investigators shall not be subject to subpoena in civil actions
184 by any court of this state to testify concerning any matter of
185 which they have knowledge pursuant to a pending insurance fraud
186 investigation by the division.
187 (6) Any person, other than an insurer, agent, or other
188 person licensed under the code, or an employee thereof, having
189 knowledge or who believes that a fraudulent insurance act or any
190 other act or practice which, upon conviction, constitutes a
191 felony or a misdemeanor under the code, or under s. 817.234, is
192 being or has been committed may send to the Division of
193 Investigative and Forensic Services a report or information
194 pertinent to such knowledge or belief and such additional
195 information relative thereto as the department may request. Any
196 professional practitioner licensed or regulated by the
197 Department of Business and Professional Regulation, except as
198 otherwise provided by law, any medical review committee as
199 defined in s. 766.101, any private medical review committee, and
200 any insurer, agent, or other person licensed under the code, or
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201 an employee thereof, having knowledge or who believes that a
202 fraudulent insurance act or any other act or practice which,
203 upon conviction, constitutes a felony or a misdemea nor under the
204 code, or under s. 817.234, is being or has been committed shall
205 send to the Division of Investigative and Forensic Services a
206 report or information pertinent to such knowledge or belief and
207 such additional information relative thereto as the department
208 may require.
209 (7) If an insurer fails or otherwise refuses to comply
210 with this section, the department may impose an administrative
211 fine of not more than $2,000 per day for such failure until the
212 department deems the insurer to be in compliance.
213 (8) The Division of Investigative and Forensic Services
214 shall review such information or reports and select such
215 information or reports as, in its judgment, may require further
216 investigation. It shall then cause an independent examination of
217 the facts surrounding such information or report to be made to
218 determine the extent, if any, to which a fraudulent insurance
219 act or any other act or practice which, upon conviction,
220 constitutes a felony or a misdemeanor under the code, or under
221 s. 817.234, is being committed. The Division of Investigative
222 and Forensic Services shall report any alleged violations of law
223 which its investigations disclose to the appropriate licensing
224 agency and state attorney or other prosecuting agency having
225 jurisdiction with respect to any such violation, as provided in
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226 s. 624.310. If prosecution by the state attorney or other
227 prosecuting agency having jurisdiction with respect to such
228 violation is not begun within 60 days of the division's report,
229 the state attorney or other prosecuting agency having
230 jurisdiction with respect to such violation shall inform the
231 division of the reasons for the lack of prosecution.
232 (12) The Division of Investigative and Forensic Services
233 may adopt reasonable rules as are necessary to administer this
234 section. Such rules must meet all of the following requirements:
235 (a) They may not enlarge upon or extend the provisions of
236 this section.
237 (b) They must identify specific factors that determine the
238 grades of penalty.
239 (c) They must specify mitigating and aggravating factors
240 for a violation of this section.
241 Section 4. Subsection (7) of section 633.112, Florida
242 Statutes, is amended to read:
243 633.112 State Fire Marshal; hearings; investigations;
244 recordkeeping and reports; subpoenas of witnesses; orders of
245 circuit court.—
246 (7) The State Fire Marshal shall keep a record of all
247 fires and explosions occurring in this state upon which she or
248 he had caused an investigation to be made and all facts
249 concerning the same. These records, obtained or prepared by the
250 State Fire Marshal pursuant to her or his investigation, include
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251 documents, papers, letters, maps, diagrams, tapes, photographs,
252 films, sound recordings, and evidence. These records are
253 confidential and exempt from the provisions of s. 119.07(1)
254 until the investigation is completed or ceases to be active. For
255 purposes of this section, the term an investigation is
256 considered "active" has the same meaning as in s. 119.011(3)(d)
257 while such investigation is being conducted by the department
258 with a reasonable, good faith belief that it may lead to the
259 filing of administrative, civil, or criminal proceedings. An
260 investigation does not cease to be active if the department is
261 proceeding with reasonable dispatch, and there is a good faith
262 belief that action may be initiated by the department or other
263 administrative or law enforcement agency. Further, these
264 documents, papers, letters, maps, diagrams, tapes, photographs,
265 films, sound recordings, and evidence relative to the subject of
266 an investigation are shall not be subject to subpoena until the
267 investigation is completed or ceases to be active, unless the
268 State Fire Marshal consents. These records shall be made daily
269 from the reports furnished the State Fire Marshal by her or his
270 agents or others.
271 Section 5. Subsection (9) of section 633.126, Florida
272 Statutes, is amended, subsection (10) is added to that section,
273 and subsection (2) of that section is republished, to read:
274 633.126 Investigation of fraudulent insurance claims and
275 crimes; immunity of insurance companies supplying information.—
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276 (2) If an insurance company has reason to suspect that a
277 fire or explosion loss to its insured's real or personal
278 property was caused by intentional means, the company shall
279 notify the State Fire Marshal and shall furnish her or him with
280 all material acquired by the company during its investigation.
281 The State Fire Marshal may adopt rules to implement this
282 subsection.
283 (9) If an insurance company fails or otherwise refuses to
284 comply with this section, the department may impose an
285 administrative fine of not more than $2,000 per day for such
286 failure until the department deems the insurance company to be
287 in compliance A person who willfully violates this section
288 commits a misdemeanor of the first degree, punishable as
289 provided in s. 775.082 or s. 775.083.
290 (10) The Division of Investigative and Forensic Services
291 may adopt reasonable rules as are necessary to administer this
292 section. Such rules must meet all of the following requirements:
293 (a) They may not enlarge upon or extend the provisions of
294 this section.
295 (b) They must identify specific factors that determine the
296 grades of penalty.
297 (c) They must specify mitigating and aggravating factors
298 for a violation of this section.
299 Section 6. Effective January 1, 2023, paragraphs (b), (c),
300 and (d) of subsection (3) of section 634.095, Florida Statutes,
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301 are redesignated as paragraphs (d), (e), and (f), respectively,
302 paragraph (a) of that subsection is amended, and new paragraphs
303 (b) and (c) are added to that subsection, to read:
304 634.095 Prohibited acts.—Any service agreement company or
305 salesperson that engages in one or more of the following acts
306 is, in addition to any applicable denial, suspension,
307 revocation, or refusal to renew or continue any appointment or
308 license, guilty of a misdemeanor of the second degree,
309 punishable as provided in s. 775.082 or s. 775.083:
310 (3) Issuing or causing to be issued any advertisement that
311 which:
312 (a) Does not fully disclose in a written advertisement, in
313 at least 12-point, boldface boldfaced type, the name, address,
314 and Florida Company Code license number of the service agreement
315 company.
316 (b) Does not fully disclose in a radio or television
317 advertisement the full legal name of the licensed salesperson or
318 the service agreement company.
319 (c) Does not fully identify the soliciting licensed
320 salesperson's full legal name and license number when the
321 salesperson begins, and the soliciting salesperson's telephone
322 number when the salesperson concludes, each telephone
323 solicitation. For the purposes of this paragraph, the actual
324 telephone number of the salesperson may be the number on file
325 with the department or the number at which the salesperson may
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326 be contacted.
327 Section 7. Subsection (11) of section 775.15, Florida
328 Statutes, is amended to read:
329 775.15 Time limitations; general time limitations;
330 exceptions.—
331 (11) A prosecution for a felony violation of s. 440.105 or
332 s. 817.234 ss. 440.105 and 817.234 must be commenced within 5
333 years after the violation is committed.
334 Section 8. Subsection (5) of section 817.234, Florida
335 Statutes, is amended to read:
336 817.234 False and fraudulent insurance claims.—
337 (5)(a) Any insurer damaged as a result of a violation of
338 any provision of this section when there has been a criminal
339 adjudication of guilt shall have a cause of action to recover
340 compensatory damages, plus all reasonable investigation and
341 litigation expenses, including attorney attorneys' fees, at the
342 trial and appellate courts.
343 (b) If an insurer damaged as a result of a violation of
344 any provision of this section has reported the possible
345 fraudulent insurance act to the Division of Investigative and
346 Forensic Services pursuant to s. 626.9891 and if there has been
347 a criminal adjudication of guilt, the insurer is entitled to
348 recover reasonable investigation and litigation expenses,
349 including attorney fees, at the trial and appellate courts.
350 Section 9. Except as otherwise provided in this act, this
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351 act shall take effect upon becoming a law.
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INSURANCE & BANKING SUBCOMMITTEE
HB 749 by Rep. Clemons
Fraud Prevention
AMENDMENT SUMMARY
January 19, 2022
Amendment 1 by Rep. Clemons (strike-all): The strike-all amendment contains the current
provisions of the bill and makes the following modifications and clarifications:
• Requires the Department of Highway Safety and Motor Vehicles’ (DHSMV)
electronic credentialing system (system) to display vehicle registration and insurance
information, provide a driver with notification of any lapse in insurance coverage
needed to meet financial responsibility requirements, and allow the driver to update
policy information by the system.
• Requires DHSMV to provide the Legislature with recommendations regarding
electronic verification of drivers’ compliance with financial responsibility laws.
• Removes the sections of the bill that change the definition of “active” so that the
current definitions of “active” investigations by the Department of Financial Services’
Division of Forensic and Investigative Services and State Fire Marshal will remain
unchanged.
• Makes various formatting and minor technical wording changes for clarity.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 749 (2022)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative Clemons offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Section 324.252, Florida Statutes, is created
8 to read:
9 324.252 Electronic insurance verification.—
10 (1)In order to empower drivers in this state and reduce the
11 incidence of automobile insurance fraud within this state, by
12 July 1, 2023, the electronic credentialing system, as defined in
13 s. 322.032(1), must display driver vehicle registration and
14 insurance information, provide a driver with notification of any
15 lapse in his or her insurance coverage needed for compliance
16 with the financial responsibility requirements of this chapter,
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Amendment No. 1
17 and allow the driver to update his or her policy information via
18 the system.
19 (2) By October 1, 2023, the department shall provide the
20 Legislature with recommendations on the means by which the
21 department, law enforcement agencies, and other entities
22 authorized by the department may electronically verify a
23 driver's compliance with the financial responsibility
24 requirements of this chapter.
25 Section 2. Subsection (2) of section 501.165, Florida
26 Statutes, is amended to read:
27 501.165 Automatic renewal of service contracts.—
28 (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.—
29 (a) A Any seller that sells, leases, or offers to sell or
30 lease any service to a consumer pursuant to a service contract
31 that has an automatic renewal provision, unless the consumer
32 cancels that contract, shall disclose the automatic renewal
33 provision clearly and conspicuously in the contract or contract
34 offer.
35 (b) A Any seller that sells or offers to sell any service
36 to a consumer pursuant to a service contract the term of which
37 is a specified period of 12 months or more and that
38 automatically renews for a specified period of more than 1
39 month, unless the consumer cancels the contract, shall provide
40 the consumer with written or electronic notification of the
41 automatic renewal provision. Notification shall be provided to
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Amendment No. 1
42 the consumer no less than 30 days or no more than 60 days before
43 the cancellation deadline pursuant to the automatic renewal
44 provision. Such notification shall disclose clearly and
45 conspicuously:
46 1. That unless the consumer cancels the contract the
47 contract will automatically renew.
48 2. Methods by which the consumer may obtain details of the
49 automatic renewal provision and cancellation procedure, whether
50 by contacting the seller at a specified telephone number or
51 address, by referring to the contract, or by any other method.
52 (c) A seller that fails to comply with the requirements of
53 this subsection violates is in violation of this subsection
54 unless the seller demonstrates that:
55 1. As part of the seller's routine business practice, the
56 seller has established and implemented written procedures to
57 comply with this section and enforces compliance with the
58 procedures;
59 2. Any failure to comply with this subsection is the
60 result of error; and
61 3. As part of the seller's routine business practice,
62 where an error has caused the failure to comply with this
63 subsection, the unearned portion of the contract subject to the
64 automatic renewal provision is refunded as of the date on which
65 the seller is notified of the error.
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Amendment No. 1
66 (d) A seller shall allow a consumer to cancel a service
67 contract that has an automatic renewal provision in the same
68 manner, and by the same means, as the service contract was
69 entered into.
70 (e) This subsection does not apply to:
71 1. A financial institution as defined in s. 655.005 or any
72 depository institution as defined in 12 U.S.C. s. 1813(c)(2).
73 2. A foreign bank maintaining a branch or agency licensed
74 under the laws of any state of the United States.
75 3. Any subsidiary or affiliate of an entity described in
76 subparagraph 1. or subparagraph 2.
77 4. A health studio as defined in s. 501.0125.
78 5. Any entity licensed under chapter 624, chapter 627,
79 chapter 634, chapter 636, or chapter 641.
80 6. Any electric utility as defined in s. 366.02.
81 7. Any private company as defined in s. 180.05 providing
82 services described in chapter 180 which is competing against a
83 governmental entity or has a governmental entity providing
84 billing services on its behalf.
85 (f)(e) A violation of this subsection renders the automatic
86 renewal provision void and unenforceable.
87 Section 3. Paragraphs (b) and (c) of subsection (22) of
88 section 626.854, Florida Statutes, are amended, and paragr aph
89 (a) of that subsection is republished, to read:
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Amendment No. 1
90 626.854 "Public adjuster" defined; prohibitions.—The
91 Legislature finds that it is necessary for the protection of the
92 public to regulate public insurance adjusters and to prevent the
93 unauthorized practice of law.
94 (22)(a) Any following act by a public adjuster, a public
95 adjuster apprentice, or a person acting on behalf of a public
96 adjuster or public adjuster apprentice is prohibited and shall
97 result in discipline as applicable under this part:
98 1. Offering to a residential property owner a rebate,
99 gift, gift card, cash, coupon, waiver of any insurance
100 deductible, or any other thing of value in exchange for:
101 a. Allowing a contractor, a public adjuster, a public
102 adjuster apprentice, or a person acting on behalf of a public
103 adjuster or public adjuster apprentice to conduct an inspection
104 of the residential property owner's roof; or
105 b. Making an insurance claim for damage to the residential
106 property owner's roof.
107 2. Offering, delivering, receiving, or accepting any
108 compensation, inducement, or reward for the referral of any
109 services for which property insurance proceeds would be used for
110 roofing repairs or replacement.
111 (b) Notwithstanding the fine set forth in s. 626.8698, a
112 public adjuster or public adjuster apprentice may be subject to
113 a fine not to exceed $10,000 per act for a violation of this
114 subsection and a fine not to exceed $20,000 per act for a
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115 violation of this subsection that occurs during a state of
116 emergency declared by executive order or proclamation of the
117 Governor pursuant to s. 252.36.
118 (c) A person who engages in an act prohibited by this
119 subsection and who is not a public adjuster or a public adjuster
120 apprentice, or is not otherwise exempt from licensure, is guilty
121 of the unlicensed practice of public adjusting and may be:
122 1. Subject to all applicable penalties set forth in this
123 part.
124 2. Notwithstanding subparagraph 1., subject to a fine not
125 to exceed $10,000 per act for a violation of this subsection and
126 a fine not to exceed $20,000 per act for a violation of this
127 subsection that occurs during a state of emergency declared by
128 executive order or proclamation of the Governor pursuant to s.
129 252.36.
130 Section 4. Present subsections (7), (8), and (9) of
131 section 626.989, Florida Statutes, are redesignated as
132 subsections (9), (10), and (11), respectively, new subsections
133 (7) and (8) and subsection (12) are added to that section, and
134 subsection (6) of that section is amended, to read:
135 626.989 Investigation by department or Division of
136 Investigative and Forensic Services; compliance; immunity;
137 confidential information; reports to division; division
138 investigator's power of arrest.—
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139 (6) Any person, other than an insurer, agent, or other
140 person licensed under the code, or an employee thereo f, having
141 knowledge or who believes that a fraudulent insurance act or any
142 other act or practice which, upon conviction, constitutes a
143 felony or a misdemeanor under the code, or under s. 817.234, is
144 being or has been committed may send to the Division of
145 Investigative and Forensic Services a report or information
146 pertinent to such knowledge or belief and such additional
147 information relative thereto as the department may request. Any
148 professional practitioner licensed or regulated by the
149 Department of Business and Professional Regulation, except as
150 otherwise provided by law, any medical review committee as
151 defined in s. 766.101, any private medical review committee, and
152 any insurer, agent, or other person licensed under the code, or
153 an employee thereof, having knowledge or who believes that a
154 fraudulent insurance act or any other act or practice which,
155 upon conviction, constitutes a felony or a misdemeanor under the
156 code, or under s. 817.234, is being or has been committed shall
157 send to the Division of Investigative and Forensic Services a
158 report or information pertinent to such knowledge or belief and
159 such additional information relative thereto as the department
160 may require.
161 (7) If an insurer fails or otherwise refuses to comply
162 with this section, the department may impose an administrative
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Amendment No. 1
163 fine of not more than $2,000 per day for such failure until the
164 department deems the insurer to be in compliance.
165 (8) The Division of Investigative and Forensic Services
166 shall review such information or reports and select such
167 information or reports as, in its judgment, may require further
168 investigation. It shall then cause an independent examination of
169 the facts surrounding such information or report to be made to
170 determine the extent, if any, to which a fraudulent insu rance
171 act or any other act or practice which, upon conviction,
172 constitutes a felony or a misdemeanor under the code, or under
173 s. 817.234, is being committed. The Division of Investigative
174 and Forensic Services shall report any alleged violations of law
175 which its investigations disclose to the appropriate licensing
176 agency and state attorney or other prosecuting agency having
177 jurisdiction with respect to any such violation, as provided in
178 s. 624.310. If prosecution by the state attorney or other
179 prosecuting agency having jurisdiction with respect to such
180 violation is not begun within 60 days of the division's report,
181 the state attorney or other prosecuting agency having
182 jurisdiction with respect to such violation shall inform the
183 division of the reasons for the lack of prosecution.
184 (12) The Division of Investigative and Forensic Services
185 may adopt reasonable rules as are necessary to administer this
186 section. Such rules must meet all of the following requirements:
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187 (a) They may not enlarge upon or extend the provisions of
188 this section.
189 (b) They must identify specific factors that determine the
190 grades of penalty.
191 (c) They must specify mitigating and aggravating factors
192 for a violation of this section.
193 Section 5. Subsection (9) of section 633.126, Florida
194 Statutes, is amended, subsection (10) is added to that section,
195 and subsection (2) of that section is republished, to read:
196 633.126 Investigation of fraudulent insurance claims and
197 crimes; immunity of insurance companies supplying information.—
198 (2) If an insurance company has reason to suspect that a
199 fire or explosion loss to its insured's real or personal
200 property was caused by intentional means, the company shall
201 notify the State Fire Marshal and shall furnish her or him with
202 all material acquired by the company during its investigation.
203 The State Fire Marshal may adopt rules to implement this
204 subsection.
205 (9) If an insurance company fails or otherwise refuses to
206 comply with this section, the department may impose an
207 administrative fine of not more than $2,000 per day for such
208 failure until the department deems the insurance company to be
209 in compliance A person who willfully violates this section
210 commits a misdemeanor of the first degree, punishable as
211 provided in s. 775.082 or s. 775.083.
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212 (10) The Division of Investigative and Forensic Services
213 may adopt reasonable rules as are necessary to administer this
214 section. Such rules must meet all of the following requirements:
215 (a) They may not enlarge upon or extend the provisions of
216 this section.
217 (b) They must identify specific factors that determine the
218 grades of penalty.
219 (c) They must specify mitigating and aggravating factors
220 for a violation of this section.
221 Section 6. Effective January 1, 2023, present paragraphs
222 (b), (c), and (d) of subsection (3) of section 634.095, Florida
223 Statutes, are redesignated as paragraphs (d), (e), and (f),
224 respectively, new paragraphs (b) and (c) are added to that
225 subsection, and paragraph (a) of that subsection is amended, to
226 read:
227 634.095 Prohibited acts.—Any service agreement company or
228 salesperson that engages in one or more of the following acts
229 is, in addition to any applicable denial, suspension,
230 revocation, or refusal to renew or continue any appointment or
231 license, guilty of a misdemeanor of the second degree,
232 punishable as provided in s. 775.082 or s. 775.083:
233 (3) Issuing or causing to be issued any advertisement that
234 which:
235 (a) Does not fully disclose in a written advertisement, in
236 at least 12-point, boldface boldfaced type, the name, address,
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Amendment No. 1
237 and Florida Company Code license number of the service agreement
238 company.
239 (b) Does not fully disclose in a radio or television
240 advertisement the full legal name of the licensed salesperson or
241 the service agreement company.
242 (c) Does not fully identify the soliciting licensed
243 salesperson's full legal name and license number when the
244 salesperson begins, and the soliciting salesperson's telephone
245 number when the salesperson concludes, each outbound telephone
246 solicitation. For the purposes of this paragraph, the actual
247 telephone number of the salesperson may be the number on file
248 with the department or the number at which the salesperson may
249 be contacted.
250 Section 7. Subsection (11) of section 775.15, Florida
251 Statutes, is amended to read:
252 775.15 Time limitations; general time limitations;
253 exceptions.—
254 (11) A prosecution for a felony violation of s. 440.105 or
255 s. 817.234 ss. 440.105 and 817.234 must be commenced within 5
256 years after the violation is committed.
257 Section 8. Subsection (5) of section 817.234, Florida
258 Statutes, is amended to read:
259 817.234 False and fraudulent insurance claims.—
260 (5)(a) Any insurer damaged as a result of a violation of
261 any provision of this section when there has been a criminal
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Amendment No. 1
262 adjudication of guilt shall have a cause of action to recover
263 compensatory damages, plus all reasonable investigation and
264 litigation expenses, including attorney attorneys' fees, at the
265 trial and appellate courts.
266 (b) If an insurer damaged as a result of a violation of
267 any provision of this section has reported the possible
268 fraudulent insurance act to the Division of Investigative and
269 Forensic Services pursuant to s. 626.9891 and if there has been
270 a criminal adjudication of guilt, the insurer is entitled to
271 recover reasonable investigation and litigation expenses,
272 including attorney fees, at the trial and appellate courts.
273 Section 9. Except as otherwise expressly provided in this
274 act, this act shall take effect upon becoming a law
275
276 -----------------------------------------------------
277 T I T L E A M E N D M E N T
278 Remove everything before the enacting clause and insert:
279 An act relating to fraud prevention; creating s. 324.252, F.S.;
280 requiring that the electronic credentialing system display
281 certain vehicle information for specified purposes by a
282 specified date; requiring the Department of Highway Safety and
283 Motor Vehicles to provide the Legislature with recommendations
284 for compliance verification with certain financial
285 responsibility requirements by a specified date; amending s.
286 501.165, F.S.; requiring sellers to allow consumers to cancel in
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287 a specified manner and by specified means service contracts that
288 have automatic renewal provisions; amending s. 626.854, F.S.;
289 revising maximum fines for public adjusters and public adjuster
290 apprentices for certain violations under a specified
291 circumstance; revising maximum fines for certain violations by
292 certain persons under a specified circumstance; amending s.
293 626.989, F.S.; authorizing the Department of Financial Services
294 to impose an administrative fine on insurers under certain
295 circumstances; authorizing the Division of Investigative and
296 Forensic Services to adopt certain rules; amending s. 633.126,
297 F.S.; authorizing the department to impose an administrative
298 fine on insurance companies under certain circumstances;
299 deleting criminal penalties; authorizing the division to adopt
300 certain rules; amending s. 634.095, F.S.; revising requirements
301 for advertisements issued or caused to be issued by service
302 agreement companies or salespersons; amending s. 775.15, F.S.;
303 revising felony violations for which prosecutions must be
304 commenced within a specified timeframe; amending s. 817.234,
305 F.S.; providing that certain insurers are entitled to recover
306 specified expenses at the trial and appellate courts under
307 certain circumstances; providing effective dates.
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HB 959
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 959 Department of Financial Services
SPONSOR(S): LaMarca
TIED BILLS: IDEN./SIM. BILLS: SB 1874
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Herendeen Luczynski
2) Finance & Facilities Subcommittee
3) Appropriations Committee
4) Commerce Committee
SUMMARY ANALYSIS
The bill makes changes to programs of the Department of Financial Services (DFS):
Amends several laws related to a multi-year upgrade to the state’s financial systems, known as the
PALM Project (Planning, Accounting, and Ledger Management).
Employees of the Division of Rehabilitation and Liquidation join the State Group Insurance Program.
Transfers the Stop Inmate Fraud Program from the Division of Public Assistance Fraud to the
Department of Economic Opportunity.
Reduces penalties and creates educational tools within the Division of Workers’ Compensation:
o Changes the definition of “employer” used in workers’ compensation law;
o Requires an online tutorial for persons seeking an exemption from the workers’ compensation law;
o Lengthens a deadline for non-compliant employers to submit payroll records for penalty calculation;
o Reduces penalties for employers with no prior incidents of non-compliance;
o Requests an exemption from the legislative ratification process for reimbursement manuals that
govern payments to ambulatory surgical centers, healthcare providers, and hospitals;
o Provides that a required notice of rights may be sent to employees by mail or email; and
o Eliminates a requirement that payroll audits of some construction businesses be conducted in
person.
In the Division of State Fire Marshal, the bill updates boiler regulations related to inspections and fees;
makes changes to the certification requirements for firefighters and firesafety inspectors; and permits
the use of grant funding to pay for tools and protective clothing.
Amends licensing requirements for embalmers and funeral directors regulated by the Division of
Funeral, Cemetery, and Consumer Services
Amends laws of the Division of Insurance Agent and Agency Services to:
o Make process served upon the Chief Financial Officer binding when delivered to the insurer;
o Add an exemption to the examination requirement for the all-lines adjuster license;
o Provide additional authority for investigation of licensees;
o Allow unaffiliated insurance agents to adjust claims without surrendering their appointments;
o Revise statutes related to the use of fingerprints in background checks, to comply with federal law;
o Create notice requirements for insurance agencies that stop doing business;
o Clarify existing laws for title agents and agencies; and
o Modifies existing laws for public adjuster compensation, qualifications and bonding requirements.
Terminates the Florida Patient’s Compensation Fund and requires that DFS supervise the liquidation
and dissolution of the inactive fund.
The bill will have an indeterminate, but insignificant fiscal impact on state government. The bill provides an
effective date of July 1, 2022; except otherwise provided.
FULL ANALYSIS
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
PALM Project
Since 2014, DFS has been upgrading its financial systems, known as the Cash Management
Subsystem (CMS) and the Florida Accounting Information Resource subsystem (FLAIR), which were
developed in the 1970s and implemented in the 1980s.1
Effect of the Bill
Amendments reflect the transition to the new system, called Florida PALM (Planning, Accounting, and
Ledger Management) which has begun. A task force that developed a business plan for the new
financial and cash management system is disbanded. Technical changes are made because agencies
will no longer need to post a journal transfer to notify the CFO that a charge-back is needed. And the
term “Cash Management Subsystem” is replaced with “Financial Management Subsystem.” 2
Division of Rehabilitation and Liquidation
The DFS Division of Rehabilitation and Liquidation serves as the receiver whenever an insolvent
Florida insurer is ordered into rehabilitation or liquidation. The division has 51 employees and 14
retirees who participate in the Florida Retirement System; these persons have not been part of the
State Group Insurance Program because their salaries and benefits are funded by assets managed by
the division rather than state appropriations. To be eligible for participation in the State Group
Insurance Program, an employee must be paid by a state warrant. The State Group Insurance Program
includes health and welfare insurance benefits for active and retired state employees and their families,
including: health insurance; flexible spending and health savings accounts; life insurance; and dental,
vision and supplemental insurance products.3
Effect of the Bill
The bill makes full- and part-time state employees, retired employees, and surviving spouses of
employees of the Division of Rehabilitation and Liquidation eligible for the State Group Insurance Plan,
beginning with the 2023 plan year.
The bill amends the definitions for full- and part-time state employees, retirees, and surviving spouses
to make such persons eligible for benefits even though employees of the Division of Rehabilitation and
Liquidation are not paid by state warrant.
If adopted, the cost of employee health insurance would continue to be paid by estates that are
liquidated by the division; therefore, no state appropriations are needed. The divis ion would no longer
have the administrative burden of procuring health insurance on its own.
1 S. 17.0315, F.S.
2 Florida Department of Financial Services, Florida Palm, https://www.myfloridacfo.com/floridapalm/ (last visited Jan. 7,
2022).
3 S. 110.123, F.S.
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Division of Accounting and Auditing
Every state and local government entity provides its financial information to DFS annually, so DFS can
prepare annual financial statements for the state of Florida and provide an online clearinghouse for the
financial statements of every county, municipality, and special district in Florida. The Florida Open
Financial Statement System is open to public inspection. 4
Effect of the Bill
The bill changes the name of the state’s annual report from “comprehensive annual financial report” to
“annual comprehensive financial report.” The bill also specifies the electronic file format (XBRL) local
governments must use to file audits and financial reports with the Florida Open Financial Statement
System.
Division of Public Assistance Fraud
Since 2011, DFS has been responsible for investigations of public assistance fraud. 5
The Stop Inmate Fraud Program provides for the sharing of correctional records that are open to public
inspection with state agencies involved in fraud detection, so the state can compare correctional
records with records of the Department of Children and Families (DCF) and the Department of
Economic Opportunity (DEO), to identify inmates receiving benefits or re-employment assistance.6
Correctional records may also be matched against the client files of any other state or local agency as
needed to identify persons who are wrongfully receiving benefits. 7
Florida law directs DFS to establish procedures and implement the record-sharing program, conduct
database searches, and share relevant results with counties where benefits such as food stamps,
Medicaid, and cash assistance originate.8 Results may also be shared with the Child Support
Enforcement Program of the Department of Revenue, to locate persons who are not paying child
support, and to the Social Security Administration, to reduce federal entitlement fraud in Florida. 9
The DFS Division of Public Assistance Fraud receives corrections data and transmits the data to the
agencies listed in s. 414.40, F.S., as part of an interagency agreement. DCF performs the initial
screening of incarceration status of persons receiving public assistance. Investigators employed by the
Division of Public Assistance Fraud act on referrals from DCF. Investigators can obtain the
incarceration status of individuals under investigation from the website of the Department of
Corrections. DFS has not promulgated rules for the Stop Inmate Fraud Program and does not
anticipate any cost associated with the transfer to DEO.
Florida law provides two methods for reorganizations within the executive branch: 1) An existing
agency or department may be transferred to another agency or department; or 2) A unit of an existing
agency or department may be merged into another agency or department. Any funds allocated to the
agency, department, or program being transferred move to the agency or department accepting the
transfer. Applicable administrative rules remain in effect until they are changed by rulemaking
promulgated by the agency that accepted the transfer. 10
4 S. 218.32(1)(h), F.S.
5 SB 2156 (2011) moved the Stop Inmate Fraud Program from the Department of Law Enforcement to the Department of
Financial Services.
6 S. 414.40, F.S.
7 S. 414.40(2)(d), F.S.
8 S. 414.40(2), F.S.
9 S. 414.40(2)(e), F.S.
10 S. 20.06, F.S.
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The fiscal year 2022-23 budget recommended by Gov Ron Desantis appropriates $4.2 million in
recurring contracted services to the DEO, to obtain and share data related to the Stop Inmate Fraud
Program.11
Effect of the Bill
The bill transfers the Stop Inmate Fraud Program from the DFS Division of Public Assistance Fraud to
the DEO by merging the record-sharing program into the DEO. The bill states that a type two transfer
is intended and directs DEO to implement the Stop Inmate Fraud Program and share the results of
data-matching with counties where such benefits originated. In addition to sharing results with the Child
Support Enforcement Program and the Social Security Administration, DEO may share results with the
Division of Public Assistance Fraud.
There are no ongoing appropriations from either DFS or DEO associated with the transfer and the
division has not promulgated rules for the record-sharing program. However, the transfer is proposed in
connection with a recommended appropriation of $4.2 million in recurring contracted services that is
included in the governor’s proposed budget for fiscal year 2022-23.
DEO proposes to use a single vendor to monitor state correctional and county jail data for state
agencies that are affected by benefit fraud, including the Agency for Health Care Administration
(Medicaid), DCF (SNAP and TANF), DEO (Reemployment Assistance), and Child Support Enforcement
(Department of Revenue).
Division of Workers’ Compensation
Workers’ compensation is a no-fault system that provides medical benefits and compensation for lost
wages when an employee is injured or killed in the course of employment. Employers must secure
coverage, and may do so by purchasing insurance from an authorized carrier or through an employee-
leasing agreement, qualifying as a self-insurer, or purchasing coverage from the Florida Workers’
Compensation Joint Underwriting Association, which is the state-sponsored insurer of last resort. In
return for providing compensation, the employer is relieved of liability for workplace injuries, and may
only be sued for intentional acts that result in injury or death. 12
Definition of Employer
Chapter 440, F.S., includes a specific definition of “employer” for the purposes of workers’
compensation, at s. 440.02(16)(a), F.S., which states:
“Employer” means the state and all political subdivisions thereof,
all public and quasi-public corporations therein, every person
carrying on any employment, and the legal representative of a
deceased person or the receiver or trustees of any person.
“Employer” also includes employment agencies, employee leasing
companies, and similar agents who provide employees to other
persons. If the employer is a corporation, parties in actual control
of the corporation, including, but not limited to, the president,
officers who exercise broad corporate powers, directors, and all
shareholders who directly or indirectly own a controlling interest in
the corporation, are considered the employer for the purposes of
ss. 440.105, 440.106, and 440.107.
11 Freedom First Budget for Fiscal Year 2022-23, Department of Economic Opportunity, Stop Inmate Fraud Program,
http://www.freedomfirstbudget.com/web% 20forms/Budget/BudgetIssueDetail.as px?p=Stop% 20inmate%20fraud&AgencyT
itle=ECONOMIC%20OPPORTUNITY% 20%3E%20WORKFORCE%20SERV ICES%20(P rogram)%20%3E%20REEMPLO
YMENT%20ASSISTANCE%20PROGRAM%20% 3E%20&si=40200200&pc=1102000000&icd=8100850&title=S TOP%20I
NMATE%20FRAUD%20P ROGRAM (last visited Dec. 21, 2021).
12 Ss. 440.015, 440.09, 440.10, 440.38, and 627.313, F.S.
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The meaning of the words “similar agents” was disputed in a lawsuit brought against the Florida
Workers’ Compensation Joint Underwriting Association, Inc. (FWCJUA), which is the state’s insurer of
last resort and refused to issue a policy to an out-of-state talent agency doing business in Florida
because the talent agency was not licensed in Florida as an employee leasing company.
The question of whether the FWCJUA was required to issue a policy to the talent agency was not
resolved, but the First District Court of Appeal held that the use of the words “similar agents” in the
definition of employer supported the conclusion that the talent agency was an employer subject to the
workers’ compensation law, even though the talent agency was not an employee leasing company
subject to licensure in Florida.13
Effect of the Bill
The bill deletes the works “similar agents” from the statutory definition of employer used in the workers’
compensation law.
Exemptions
All private sector non-construction businesses with four or more employees must have workers’
compensation coverage for employees, and may provide coverage by purchasing insurance or
qualifying as a self-insurer. In the construction industry, coverage is required for every employee, even
if a business consists of a single sole proprietor. 14
Corporate officers identified in a charter or articles of incorporation filed with the Division of
Corporations of the Department of State may elect an exemption from Florida’s Workers’
Compensation law by electronically submitting a form and paying a $50 fee to the DFS Division of
Worker’s Compensation (DWC). By doing so, the exempt officer indicates that he or she is not covered
by workers’ compensation insurance, and not entitled to benefits in the event of injury. In the
construction industry, no more than three corporate officers may elect such exemptions. 15
If a corporate officer elects an exemption, or DWC revokes an exemption, DWC sends a notice to any
carrier the corporate officer identified in his or her application for exemption. 16
Effect of the Bill
The bill adds an online tutorial to the exemption application process to ensure that business owners
receive accurate information and understand the penalties that can result from violations of the
coverage and compliance requirements. Corporate officers would have to complete the online tutorial to
obtain an exemption. DWC has videos on a variety of topics posted on its website.
Additional changes include:
Applicants must provide the Federal Employer Identification Number of their business rather
than a personal Social Security number;
A notice would be added to the Certificate of Election to be Exempt, stating that the certificate is
not a license issued by the Department of Business and Professional Regulation.
A provision that requires exempt corporate officers in the construction industry to maintain
business records would be deleted.
And DWC would send electronic notice that a corporate officer has elected an exemption, or
has been issued a notice of revocation only upon the request of an insurance carrier, and thus
13 Florida Work ers’ Compensation Joint Underwriting Association, Inc. v. American Residuals and Talent, Inc. , 284 So.3d
1115, 1119 (Fla. 1st DCA 2019).
14 S. 440.02(17)(b)2, F.S.
15 Ss. 440.02(15)(a) and 440.05, F.S.
16 S. 440.05(3), F.S.
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avoid the cost of mailing notices (which can be retrieved online) to any carrier(s) the corporate
officer identified in his or her application for exemption.
The proposed effective date for changes to s. 440.05, F.S., is January 1, 2023.
Compliance
Investigators employed by DWC visit worksites around the state to identify businesses that are required
to secure the payment of workers’ compensation for their employees but fail to do so.
If an investigator identifies employees who are not covered by workers’ compensation insurance and do
not have an exemption from the law, the investigator issues a stop-work order and advises the
employer that business records reflecting payroll during the two years prior to the stop-work order are
due within 10 business days.17
If there is reason to believe an employer has materially misrepresented the number of employees on
the payroll, concealed information about injuries or accidents that would affect the amount of premium
due to the insurer, or misclassified employee duties to avoid paying appropriate premium, the
investigator issues a request for business records to determine if a penalty is warranted. If the
employer does not produce business records within 10 business days, the investigator serves a stop-
work order.18
Stop-work orders cannot be released until the employer pays the penalty in full. 19 However, stop-work
orders may be conditionally released if the employer secures compensation for all employees and
provides proof of insurance to DWC, pays a $1,000 down-payment toward the assessed penalty, and
enters into a payment agreement or pays the penalty in full.20 DWC will not enter into a payment
agreement with an employer that has defaulted on a prior payment agreement; in such cases, DWC
reinstates a stop-work order that had been conditionally released.21 DWC posts information about stop-
work orders on its website for five years, and is required to update such orders daily. 22
Penalties must be equal to the greater of: two times the premium the employer would have paid,
according to the employer’s payroll records, based on the approved manual rates for every non-exempt
employee who was not covered by workers’ compensation insurance during any period of time within
the two years prior to service of the stop-work order; or $1,000.23
If an employer fails to submit business records for the calculation of a penalty, or the employer’s
business records are not sufficient to determine an employer’s payroll during the two years prior to
issuance of a stop-work order, the law directs DWC to calculate a penalty for each employee, corporate
officer, sole proprietor, or partner based upon the statewide average weekly wage24 multiplied by 1.5.25
The law provides two credits that may reduce a penalty assessed by DWC:
An employer who has not previously been issued a stop-work order or order of penalty
assessment, and has purchased insurance to comply with the workers’ compensation law, may
receive a credit equal to the initial payment of the estimated annual policy premium, so long as
17 S. 440.107(3)(a)(c) and (f), and 440.107(7)(a), F.S.
18 S. 440.107(3)(a)(b)(c) and (f) and 440.107(7)(a), F.S.
19 S. 440.107(7)(a), F.S.
20 Id.
21 R. 69L-6.025, F.A.C.
22 S. 440.107(7)(a), F.S.
23 S. 440.107(7)(d)1, F.S
24 Pursuant to S. 440.12(2)(b), F.S., the “statewide average weekly wage” means the average weekly wage paid by
employers subject to the Florida Reemployment Assistance Program Law as reported to the Department of Economic
Opportunity for the four calendar quarters ending each June 30, which average weekly wage shall be determined by the
Department of Economic Opportunity on or before November 30 of each year and shall be used in determining the
maximum weekly compensation rate with respect to injuries occurring in the calendar year immediately following.
25 S. 440.107(7)(e), F.S.,
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proof of coverage and payment of the initial premium is provided to DWC within 28 days of
service of the stop-work order or penalty assessment.26
An employer who has not previously been issued a stop-work order or order of penalty
assessment may receive a 25 percent reduction in the assessed penalty if the employer
provides business records to DWC within 10 business days of receipt of a written request for
such records.27
DWC must reinstate the stop-work order and make the unpaid penalty immediately due if the employer
fails to pay the penalty or enter into a payment agreement with the division within 28 days of the stop-
work order.28 Penalty orders are rarely calculated and served within 28 days of the stop-work order;
thus, the law requires the employer to enter into a payment agreement before the employer knows the
amount of the penalty.
Effect of the Bill
The bill makes changes to workers’ compensation enforcement and compliance laws to increase the
likelihood of compliance and make penalties better reflect the type of violation the law addresses.
Specifically, the law makes business records due 21 days after receipt of a written request from DWC
(rather than 10 business days), and makes payment of the penalty, or execution of a payment
agreement, due within 21 days of service of the penalty assessment (rather than 28 days after service
of the stop-work order).
The two-year penalty period used for calculation of penalty would be reduced to one year for employers
who have not previously been issued a stop-work order and order of penalty assessment. The penalty
period would remain two years for employers that have previously been issued orders for non-
compliance with the workers’ compensation law.
DWC would continue to post stop-work orders on its website for five years, but the requirement that the
website be updated daily would be eliminated.
Credits that may reduce a penalty would be adjusted:
The credit for the initial payment for workers’ compensation insurance would be allowed so long
as proof of payment is provided within 21 days of service of the penalty assessment, rather than
28 days of service of the stop-work order or penalty assessment.
And the 25 percent penalty reduction for employers who have not previously been issued a
stop-work order or order of penalty assessment would be allowed so long as the employer
provides business records within 21 days of receipt of a written request for such records.
The bill creates one new credit: An employer who takes an online tutorial at a DWC worksite, and
correctly answers 80 percent of the questions, may receive an additional 15 percent reduction in the
penalty assessed by DWC.
The bill adds a requirement that an employer cannot enter into a payment agreement if the employer
has previously been assessed a penalty that remains unpaid. This is addressed in rules promulgated
by DWC but has not been required by statute.
DWC is funded by quarterly fees applied to net premiums and paid by insurance carriers and
employers that self-insure to the Workers’ Compensation Administration Trust Fund (WCATF). Fines
and penalties levied by DWC are also paid to the WCATF. DWC anticipates minimal fiscal impact,
because the collection rate may increase as the cost of assessed penalties decreases. Data provided
26 S. 440.107 (d)1.a, F.S.
27 S. 440.107(d)1.b, F.S.
28 S. 440.107(7)(a), F.S.
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by DWC shows that less than one-third of penalties issued by DWC between 2015 and 2019 were paid
in full.
The proposed effective date for changes to s. 440.107, F.S., is January 1, 2023.
Medical Services
DWC is responsible for ensuring that employers provide medically necessary treatment, care, and
attendance for injured workers. Healthcare providers must receive authorization from the insurer before
providing treatment and submit treatment reports to the insurer. Insurers must reimburse healthcare
providers based on statewide schedules of maximum reimbursement allowances developed by the
DWC or an agreed-upon contract price. DWC mediates utilization and reimbursement disputes. 29
In 1980, the Legislature delegated authority over maximum reimbursement allowances to a Three-
Member-Panel which consists of the Insurance Commissioner (as a representative of the Chief
Financial Officer) and two others appointed by the governor and subject to confirmation by the Senate.
Section 440.13(12)(a), F.S., states: “Annually, the three-member panel shall adopt schedules of
maximum reimbursement allowances for physicians, hospital inpatient care, hospital outpatient care,
ambulatory surgical centers, work-hardening programs, and pain programs.”
DWC provides administrative support to the panel, which is statutorily charged with collecting data to
evaluate the adequacy of the fee schedule, surveying healthcare providers to determine the availability
and accessibility of healthcare, and surveying carriers to determine the impact of changes to the
reimbursement schedule.30 According to DWC, medical costs represent 67 percent of all workers’
compensation costs in Florida.
Maximum reimbursements approved by the Three-Member Panel must be based on the following
statutory requirements:
For inpatient treatment, hospitals must be reimbursed 75 percent of the usual and customary
charges;31
For schedule surgeries, hospitals must be reimbursed 60 percent of the charges; 32
For physicians, reimbursement is 110 percent of the reimbursement allowed by Medicare for an
office visit, and 140 percent of the reimbursement allowed by Medicare for a surgical
procedure.33
For prescription medications, reimbursement is the wholesale price plus a $4.18 dispensing fee;
but for repackaged or relabeled prescription medications, reimbursement is 112.5 percent of the
average wholesale price plus an $8 dispensing fee. 34
Healthcare providers cannot recover fees that are higher than those outlined in the schedule. This
applies to treatment, care, and attendance provided by any hospital or other health care provider,
ambulatory surgical center, work-hardening program, or pain program.35 Florida courts have enforced
fee schedule limits against healthcare providers who sought higher fees for their services.36
The law requires reimbursement to medical providers at either the agreed-upon contract price or the
maximum reimbursement allowed in the appropriate schedule.
29 S. 440.13, F.S.
30 S. 440.13(12)(e), F.S.
31 S. 440.13(12)(a), F.S.
32 S. 440.13(12)(b), F.S.
33 Id.
34 S. 440.13(12)(c), F.S
35 S. 440.13(12)(d), F.S.
36 Sun Bank /South Florida, N.A. v. Bak er, 632 So. 2d 669 (Fla. 4th DCA 1994), cause dismissed, 639 So. 2d 982 (Fla.
1994); citing, Easter Elevator Co. v. Hedman, 290 So. 2d 56, 58 (Fla. 1974).
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The Three-Member Panel adopts the schedules as an independent entity, but DWC relies on the
schedules when rendering determinations in reimbursement disputes between health care providers
and insurance carriers,37 and when adopting fee schedules for services rendered by medical
providers.38 As a result, DWC adopts the maximum reimbursement schedules through rulemaking, and,
when the cost of a schedule exceeds $1 million in the aggregate within a five-year period, the adopted
rule is subject to legislative ratification.
The Administrative Procedures Act requires a statement of regulatory cost that includes an economic
analysis showing whether the rule directly or indirectly:
1. Is likely to have an adverse impact on economic growth, private sector
job creation or employment, or private sector investment in excess of $1
million in the aggregate within 5 years after the implementation of the rule;
2. Is likely to have an adverse impact on business competitiveness,
including the ability of persons doing business in the state to compete with
persons doing business in other states or domestic markets, productivity, or
innovation in excess of $1 million in the aggregate within 5 years after the
implementation of the rule; or
3. Is likely to increase regulatory costs, including any transactional costs,
in excess of $1 million in the aggregate within 5 years after the
implementation of the rule.39
The law provides three exemptions to the ratification requirement. Legislative ratification does not apply
to triennial updates of the Florida Building Code and Florida Fire Prevention Code, which are expressly
authorized by statute, or when a state agency adopts federal standards or rules that are needed to
receive federal funds or other benefits under federal law. 40
Stakeholders in Florida’s $4.3 billion workers’ compensation marketplace are using a 2015 manual for
ambulatory surgical centers (which was ratified by the Legislature), 41 a 2016 manual for health care
providers (which did not require ratification),42 and a 2014 manual for hospitals (which did not require
legislative ratification).43
37 S. 440.13(7), F.S.
38 S. 440.13(13), F.S.
39 S. 120.541(2)(a), F.S.
40 S. 120.541(4), F.S.
41 The Florida Workers’ Compensation Reimbursement Manual for Ambulatory Surgical Centers, found at r. 69L -7.100,
F.A.C., was ratified by the Legislature and effective July 1, 2016. See Florida Administrative Code & Florida Administrative
Register, Rule 69L-7.100, https://www.flrules.org/gateway/ruleno.asp?id=69L -7.100&Section= 0 (last visited Jan. 12,
2022). Rulemaking proposals submitted to the Joint Administrative Procedures Committee (JAPC) in 2017 and 2018 were
subsequently withdrawn. See Joint Administrative Procedures Committee, Florida Administrative Law Central Online
Network, Search for Rule 69L-7.100,www.japc.state.fl.us/Pages/res ults.aspx?ruleNumber=69L-
7.100&showAll=True&isTextSearch =False (last visited Jan. 12, 2022).
42 The Florida Workers’ Compensation Health Care Provider Reimbursement Manual, found at r. 69L-7.020, F.A.C., was
effective e January 1, 2016, and did not require legislative ratification. See Florida Administrative Code & Florida
Administrative Register, Rule 69L-7.020 69L-7.020 : Florida Workers' Compensation Health Care Provider
Reimbursement Manual - Florida Administrative Rules, Law, Code, Register - FAC, FAR, eRulemaking (flrules.org)
(last visited Jan. 12, 2022). Rulemaking proposals submitted to JAPC in 2017 and 2018 were withdrawn. See Joint
Administrative Procedures Committee, Florida Administrative Law Central Online Network, Search for Rule 69L-7.020
https://www.japc.state.fl.us/Pages/ResultDetails.aspx?controlNumber=R183748& ruleNumber=69L -7.020 (last visited Jan.
12, 2022).
43 The 2014 edition of the Florida Workers’ Compensation Reimbursement Manual for Hospitals, found at r. 69L -7.501,
F.A.C., did not require legislative ratification and was effective January 1, 2015. See Florida Administrative Code & Florida
Administrative Register, Rule 69L-7.501,
https://www.flrules.org/gateway/RuleNo.asp?title=WORKERS%27%27% 20COMP E NSA TION%20ME DICAL%20REIMBU
RSEMENT%20AND%20UTILIZA TION% 20REVIEW&ID=69L-7.501 (last visited Jan. 12, 2022). Rulemaking proposals
submitted to JAPC in 2016 and 2017 were withdrawn. See Joint Administrative Procedures Committee, Florida
Administrative Law Central Online Network, Search for Rule 69L-7.501
www.japc.state.fl.us/Pages/results.aspx?ruleNumber= 69L -7.501&showAll= True&is Text Search=False (last visited Jan.
12, 2022).
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A 2020 reimbursement manual for healthcare providers was adopted on October 22, 2021, but will not
go into effect unless it is ratified by the legislature. HB 1123 (2022) and SB 1274 (2022) request
legislative ratification for Rule 69L-7.020, F.A.C., which contains the reimbursement manual for
healthcare providers.
Effect of the Bill
The bill adds a section within the Administrative Procedures Act, related to the statement of estimated
regulatory costs, to exempt schedules of maximum reimbursement allowances adopted by the three-
member panel from legislative ratification.
The bill gives DWC explicit rulemaking authority to administer programs related to maximum
reimbursement allowances established by the Three-Member panel.
And, if there is no agreed-upon contract price, the bill permits reimbursement at the lesser of the
maximum reimbursement allowance in the appropriate schedule or the provider’s billed charge.
Notice of Rights to the Employee
When an employee suffers an injury in the course of employment, the employee must notify the
employer of the injury within 30 days, and the employer must report the injury to its insurance carrier
within seven days of such notification. The employer also must mail the injured worker an informational
brochure explaining the employee’s rights, benefits, and obligations, and the process for accessing
workers’ compensation benefits.
Effect of the Bill
The bill permits delivery of the brochure by mail or email and changes the deadline for mailing from
three days to three business days.
Payroll Audits
The cost of workers’ compensation insurance is based primarily upon an employer’s payroll and the
types of duties employees perform. Employers pay an estimated premium at the commencement of a
workers’ compensation policy and receive a refund or a bill for additional premium due at the end of the
policy year, based on a payroll audit conducted by the insurance carrier.
The law requires payroll audits every other year for non-construction businesses. Businesses in the
construction industry that are large enough to have an experience rating factor applied to their premium
(meaning the policy is based on Florida premium of $5,750 in the prior year or $11,500 in the prior two
years) must be audited annually and the audit must take place at the employer’s worksite. 44
The Office of Insurance Regulation (OIR) promulgates rules for payroll audits that are adopted by the
Financial Services Commission. The rules require:
An annual physical audit for policies with premium of $10,000 or more, regardless of governing
classification;
A physical audit for all new businesses that have construction classifications, regardless of
premium; and
An annual physical audit for renewal policies that have construction classifications if the estimated
annual premium is $5,000 or more.45
Other audits may be conducted by mail. Audits conducted by telephone are not permitted in lieu of mail
or physical audits.46
44 S. 440.381, F.S.
45 R. 69O-189.003(b)1, F.A.C.
46 R. 69O-189.003(b)3, F.A.C.
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Effect of the Bill
The bill requires in-person audits for construction businesses only if the construction business has an
estimated annual premium of $10,000 or more. Adoption of the bill would require changes to OIR rules
that require physical audits for all new construction businesses and for construction businesses that
have an annual premium of $5,000 or more.
Division of Funeral, Cemetery, and Consumer Services
The Division of Funeral, Cemetery, and Consumer Services has authority over pre-need burial
contracts as well as funerals and burial services. The division licenses funeral directors, embalmers,
and sales agents, and also conducts annual inspections of cemeteries and related facilities. 47
Fees for Services
In general, the price charged for burial rights, merchandise, and burial services is left to the
marketplace, but Florida law places limits on fees charged for certain related services, including the
transfer of burial rights from one purchaser to another, which may not exceed $50. 48
Effect of the Bill
The bill eliminates the $50 limit for fees paid for transferring burial rights, meaning the parties may
agree to a negotiated rate.
Licensing of Embalmers
To be licensed as an embalmer in Florida, an applicant must:
Complete coursework in mortuary science;
Complete coursework in communicable diseases;
Complete a one-year internship under a licensed embalmer;
Pass a written exam on the disposal of dead bodies;
Pass a licensing exam;
Submit fingerprints for a background check; and
Submit an application and pay an application fee.49
For persons who are licensed to practice embalming in a state other than Florida and wish to be
licensed by DFS, there are two options:
Option One: The applicant must have been licensed in a state where the requirements are
substantially equivalent or more stringent than the requirements in Florida, and:
Provide documentation showing coursework in communicable diseases;
Pass a written exam on the disposal of dead bodies;
Submit fingerprints for a background check;
Submit an application and pay an application fee.50
Option Two: The applicant must have:
Practiced as a licensed embalmer for at least one year;
Passed a state licensing exam during the 10 years prior to application;
47 Ch. 497, F. S.
48 S. 497.277(2), F.S.
49 S. 497.368, F.S.
50 S. 497.369(b)1, F.S.
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Provide documentation showing coursework in communicable diseases;
Pass a written exam on the disposal of dead bodies;
Submit fingerprints for a background check; and
Submit an application and pay an application fee.51
Effect of the Bill
The bill simplifies requirements for persons who are licensed embalmers in another state and wish to
be licensed in Florida under Option 1. Instead of demonstrating current licensure in a state where the
requirements are substantially equivalent or more stringent to those in Florida, the applicant must show
that he or she has worked full-time as a licensed embalmer in another state for no less than five years.
Duties of Funeral Directors
Persons who sell and make financial arrangements for funeral services (including the disposition of
human remains through embalming, cremation or other means) must be licensed as funeral directors
and be affiliated with a licensed funeral establishment. 52
Certain duties may only be performed by licensed funeral directors, including setting the time of
services, acquiring the services of a clergy, obtaining vital information needed to file death certificates,
and obtaining burial transit permits. The funeral director must directly or indirectly supervise any
memorial service held prior to or within 72 hours of burial or cremation, if such memorial service is sold
or arranged by a licensee.
Licensure is not required for persons who perform related services, like ordering flowers, furnishing
price lists, and transporting bodies.53
Effect of the Bill
The bill eliminates the requirement that only licensed funeral directors can set the time of services,
acquire the services of a clergy, obtain vital information needed to file death certificates, and obtain
burial transit permits. Additionally, the bill requires that the funeral director directly or indirectly
supervise all memorial services sold or arranged by a licensee.
51 S. 497.369(b)2, F.S.
52 S. 497.372, F.S.
53 Id.
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Licensing of Funeral Directors
To be licensed as a funeral director, an applicant must:
Have an associates’ degree in mortuary science or an associates’ degree in another subject
and also completed an approved course of study in mortuary science;
Complete a course on communicable diseases;
Complete a one-year internship under a licensed funeral director;
Pass an exam on the disposal of dead bodies;
Pass a licensing exam;
Submit fingerprints for a background check; and
Submit an application and pay an application fee.54
For persons who are licensed as a funeral director in a state other than Florida and wish to be licensed
by DFS, there are two options:
Option One: The applicant must have been licensed in a state where the requirements are
substantially equivalent or more stringent than the requirements in Florida, and:
Complete coursework in communicable diseases;
Pass a written exam on the disposal of dead bodies;
Submit fingerprints for a background check;
Submit an application and pay an application fee.55
Option Two: The applicant must have completed a licensing exam in another state that is
substantially equivalent or more stringent than the licensing exam in Florida, and:
Have an associates’ degree in mortuary science or an associates’ degree in another subject
and also completed an approved course of study in mortuary science;
Complete coursework in communicable diseases;
Complete a one-year internship under a licensed funeral director;
Pass a written exam on the disposal of dead bodies;
Submit fingerprints for a background check; and
Submit an application and pay an application fee.56
Effect of the Bill
The bill changes the licensing requirements for persons who are licensed funeral directors in other
states and seek licensure in Florida. Applicants seeking licensure under Option One must show that
they are in good standing in their state of licensure and that they have practiced as a licensed funeral
director for no less than five years. Applicants seeking licensure under Option Two may be licensed if
they hold a certificate from an accredited program in mortuary science but have not earned an
associate’s degree.
Division of State Fire Marshal
The State Fire Marshal protects people and property throughout Florida and has authority to inspect
buildings, structures, equipment, vehicles and chemicals when there is reasonable caus e to believe a
violation of the Florida Fire Code has occurred.57
The State Fire Marshall has two bureaus:
54 S. 497.373, F.S.
55 S. 497.374(b)1, F.S.
56 S. 497.374(b)2, F.S.
57 Chs. 554 and 633, F. S.
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The Bureau of Fire Prevention conducts safety inspections and reviews construction plans for all
state-owned buildings, regulates fireworks and the fire sprinkler industry, inspects and licenses
boilers, and certifies persons working in the fire suppression industry; and
The Bureau of Firefighter Standards and Training approves curricula and training at the Florida
State Fire College and certifies that fire service members meet industry standards. Persons may be
certified as a volunteer firefighter, firefighter, or administrator of a fire service provider (i.e. fire chief,
fire coordinator, fire director, or fire administrator).58
Boiler Inspections
The State Fire Marshall performs inspections to ensure the safety of boilers in public buildings. 59
Effect of the Bill
The bill updates boiler inspection requirements so the law reflects current industry standards:
Requires carbon monoxide detectors in public lodging establishments that use boilers;
Deletes a $50 fee for a required exam that is now offered by the National Board of Boiler and
Pressure Vessel Inspectors;
Clarifies the type of information needed to obtain a boiler permit;
Clarifies that a fee is required if an inspector is required to make a special trip to conduct a testing
and verification inspection; and
Adjusts compliance deadlines if an insurance company authorized to sell boiler and machinery
insurance or an inspection agency accredited by the National Board of Boiler and Pressure Vessel
Inspectors fails to perform required inspections in a timely manner or fails to correct a violation
within 30 days.
Certification of Fire Inspectors
State and local fire inspectors may enter and inspect any buildings subject to fire safety laws.
To be certified by the State Fire Marshal, a person who wants to be a fire inspector must complete a
200-hour fire-safety inspector training program and pass a fire-safety inspector certification examination
or demonstrate that he or she has had equivalent education and training in another state.60 Additionally,
the applicant must be in good physical condition, as determined by a medical examination, and have
good moral character, as determined by a background investigation that includes the processing of
fingerprints for a national criminal background check. The applicant must provide a sworn affidavit
stating that he or she does not use tobacco.61
Certificates are valid for four years; a certified fire safety inspector must complete 54 hours of
continuing education during the four-year period or pass an examination to renew the certificate. 62
58 Department of Financial Services, Division of State Fire Marshal, What We Do, https://myfloridacfo.com/Division/SFM/
(last visited Jan. 7, 2022).
59 Department of Financial Services, Division of State Fire Marshal, Boiler Safety Section,
https://www.myfloridacfo.com/Division/sfm/BFP/BoilerSafety/default.htm (last visited Jan. 7, 2022).
60 S. 633.216, F.S.
61 S. 633.412, F.S.
62 S. 633.216(4), F.S.
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Effect of the Bill
The bill eliminates the option of passing an exam, rather than completing 54 hours of continuing
education, to renew a fire safety certificate. Thus, the fire safety inspector certificate could only be
renewed if the certificate-holder completes 54 hours of continuing education during the four-year
certification period.
Certification of Firefighters and Commanders
To be certified as a firefighter, a person must complete a minimum standards course and exam
established by the State Fire Marshal or show proof of equivalent training in another state, and pass an
exam within one year of completing the minimum standards course. Additionally, the applicant must be
in good physical condition, as determined by a medical examination, and have good moral character,
as determined by a background investigation that includes the processing of fingerprints for a national
criminal background check. The applicant also must provide a sworn affidavit stating that he or she
does not use tobacco.63
To serve as an administrative and command head of a fire service provider, or to work in a position
directing incident outcomes, a certified firefighter must earn a Special Certificate of Compliance. Such
person must be active as a firefighter, maintain a valid fire service instructor certificate and teach at
least 40 hours of instruction during a four-year period, and complete a Firefighter Retention Refresher
Course prior to expiration of the four-year period.64
A certified firefighter who is employed as a fire chief, fire coordinator, fire director, or fire administrator
must obtain a Special Certificate of Compliance within one year of beginning employment. 65
Effect of the Bill
The bill deletes specific requirements for the Special Certificate of Compliance and instead provides
that the requirements to obtain and renew the Special Certificate of Compliance shall be established by
rule.
Renewing a Firefighter’s Certificate
Firefighter certificates of compliance are valid for four years. To renew a certification, a firefighter must:
Be active as a firefighter, meaning the certificate holder was employed as a firefighter or served
as a volunteer firefighter for at least six months during a four-year period; or
Hold a fire service instructor certificate and instruct at least 40 hours during a four-year period,
or
Complete a Firefighter Retention Refresher Course during the six months before the four-year
period expires, or
Retake and pass the Minimum Standards Course examination during the six months before the
four-year period expires.66
Effect of the Bill
The bill provides that the special certificate of compliance has the same renewal requirements as a
firefighter certificate of compliance. The bill also changes the definition of an active firefighter. Instead
of requiring at least six months of active service during a four-year certification period, the bill provides
the following definition:
63 S. 633.408(4), F.S.
64 S. 633.408(6), F.S.
65 S. 633.408(6)(b), F.S.
66 S. 633.414, F.S.
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As used in this section, the term “active” means being employed as a firefighter
or providing service as a volunteer firefighter as evidenced by the individual’s
name appearing on a fire service provider’s employment roster in the Florida
State Fire College database or a letter by the fire service provider attesting to
dates of employment.
Thus, to renew a certification, a firefighter would have to be included in a fire service provider’s
employment roster or provide a letter from a fire service provider attesting to the firefighter’s dates of
employment.
Additionally, the bill permits completion of the Firefighter Retention Refresher Course or passage of the
Minimum Standards Course examination at any time prior to expiration of the certificate.
Grants to Local Fire Departments
The Office of the State Fire Marshall also oversees the Firefighter Assistance Grant Program which
awards grants to fire departments based on an annual needs assessment survey and restricts funding
to training, personal protective equipment, breathing equipment, and fire engine pumper equipment. 67
Effect of the Bill
The bill expands the types of equipment and tools that can be purchased with funds from the Firefighter
Assistance Grant Program. This allows the use of grant funds for equipment and tools that improve fire
safety and rescue capabilities, and for protective clothing and equipment that complies with standards
of the National Fire Protection Association.
Division of Insurance Agent and Agency Services
The DFS Division of Insurance Agent and Agency Services is responsible for the licensing and
regulation of insurance agents, adjusters, insurance agencies, as well as related personnel and
business entities.68
Service of Process
Every insurer licensed to do business in Florida must appoint the Chief Financial Officer (CFO) as
agent for service of legal process in any civil action or proceeding in Florida and provide the name and
e-mail address of the person to whom process received by the CFO should be forwarded. 69
The CFO also serves as the agent for service of legal process against any nonresident agent, 70
reinsurance intermediary,71 nonresident health insurance agent,72 nonresident independent or public
adjuster,73 surplus lines insurer,74 unauthorized insurer,75 and viatical settlement provider.76
Florida law requires that process be served upon a state officer, and then forwarded to the regulated
entity, to ensure that the regulator is aware of lawsuits served upon regulated entities. This is a
standard practice that is recommended by the National Association of Insurance Commissioners and
used in many states.77
67 S. 633.135, F.S. and Rule 69A-37.502, F.A.C.
68 Ch. 626, parts I, II, III,
IV, V, VI, VIII, IX, and XIII, F. S.
69 S. 624.423(3), F.S.
70 S. 626.742, F.S.
71 S. 626.7492, F.S.
72 S. 626.836, F.S.
73 S. 626.8736, F.S.
74 S. 626.937, F.S.
75 S. 626.909, F.S.
76 S. 626.9912, F.S.
77 National Association of Insurance Commissioners, Uniform Consent to Service of Process/Form 12,
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Effect of the Bill
The bill clarifies existing law, to clearly state that service of process is valid and binding on the insurer
on the date such process is delivered to the insurer or the insurer is notified that such information is
available on a secure network, rather than the date the process is served upon the CFO.
Unaffiliated Insurance Agents Adjusting Claims
Unaffiliated insurance agents are licensed agents who work as independent consultants, analyzing
policies and providing advice or recommendations on insurance products for a fee. Such persons may
not be affiliated with an insurer, insurer-appointed insurance agent, or insurance agent contracted with
or employing insurer-appointed insurance agents.78
Insurance agents who are licensed to sell and service insurance must be appointed by an authorized
insurer who sells the type of insurance the agent is authorized to sell. 79
The law was intended to prohibit conflicts of interest that would allow unaffiliated agents to compel
payments for referrals from affiliated agents or companies.80
Effect of the Bill
The bill permits an insurance professional who holds both unaffiliated insurance agent license and an
adjuster license to obtain an adjuster appointment while continuing his or her work as an independent
consultant in the insurance industry. After a catastrophic storm, for example, the adjuster could be
appointed to adjust claims for an insurer without surrendering his or her unaffiliated agent
appointments.
Specifically, the bill amends the definition of unaffiliated insurance agent to state that a licensed
adjuster who is also an unaffiliated insurance agent may obtain an adjuster appointment while
simultaneously holding an unaffiliated appointment on his or her agent license.
Additionally, the bill amends the scope of the licensing law for insurance agents, to permit unaffiliated
agents who also hold an adjuster license to obtain an adjuster appointment and be compensated for
adjusting claims while maintaining his or her license as an unaffiliated insurance agent.
Fingerprints for Background Checks
The Florida Insurance Code authorizes DFS to investigate any applicant or licensee, and further states
that licensing statutes which require an evaluation of an applicant’s character or fitness must include
the submission of fingerprints for a national criminal records check.81 Applicants and licensees submit
fingerprints to FDLE, which forwards the fingerprints to the FBI for a national background check. 82
National background checks conducted for non-criminal purposes are subject to Public Law 92-544,
which was enacted by Congress in 1972 and permits states to receive criminal history records from the
FBI so long as the state has enacted a law that requires the submission of fingerprints for appropriate
licensing and employment purposes.
https://www.naic.org/documents/industry_ucaa_form12.pdf (last visited Dec. 22, 2021).
78 S. 626.015(20), F.S.
79 S. 626.112, F.S.
80 S. 626.311(6), F.S.
81 S. 626.201, F.S.
82 S. 624.34, F.S.
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The FBI processes fingerprints only if the criteria established by the U.S. Department of Justice has
been satisfied. To satisfy federal law, a state licensing statute must identify the specific categories of
licenses that require the submission of fingerprints as part of an application and expressly state that the
applicant’s fingerprints will be submitted to the FBI or submitted for a national criminal records
background check.
Effect of the Bill
The bill makes technical amendments to licensing laws to ensure compliance with federal law and
continuation of FBI background checks for agents and agencies seeking licensure in Florida.
Seven of the laws being amended set forth the application requirements for persons seeking licensure:
As an insurance agent, customer representative, adjuster, service representative, or reinsurance
intermediary;83
For an insurance agency;84
As a limited lines licensee to transact motor vehicle physical damage and mechanical breakdown
insurance; industrial fire or burglary insurance; travel insurance; motor vehicle rental insurance;
credit insurance; crop hail and multiple-peril crop insurance; in-transit and storage personal property
insurance; and portable electronics insurance;85
As a nonresident all-lines adjustor;86
As an insurance navigator;87
As a bail bond agent;88 or
For temporary licensure (pending examination) as a limited surety agent or professional bail bond
agent.89
Four of the laws being amended:
Provide authority to investigate the character, experience, background, and fitness of licensees and
applicants seeking licensure, and to require the submission of fingerprints as part of such
investigation;90
Require the submission of fingerprints if DFS has reason to believe a licensee has been convicted
of a crime; is the subject of an acquisition; or employs or appoints a new partner, officer, or
director;91
Authorize investigations of allegations of improper conduct by licensed persons and entities
(adjustors, agents, agencies, insurers) and related professionals (mediators and continuing
education providers);92 and
Identify portions of the Insurance Code that are applicable to title agents and agencies. 93
Authority to Investigate Licensees
Applicants seeking licensure by DFS as an insurance agent, insurance agency, or bail bond agent are
subject to a background investigation to determine the applicant’s character, experience, background,
and fitness for the desired license.94
83 S. 626.171, F.S.
84 S. 626.172, F.S.
85 S. 626.321, F.S.
86 S. 626.8734, F.S.
87 S. 626.9953, F.S
88 S. 648.34, F.S.
89 S. 648.355, F.S.
90 S. 626.201, F.S.
91 S. 626.202, F.S.
92 S. 626.601, F.S.
93 S. 626.8411, F.S.
94 Ss. 626.201 and 648.27 F.S.
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The application process includes the submission of fingerprints for a national criminal background
check and a review of any prior violations of the Insurance Code. DFS may inquire about any matter
that is reasonably related to the character and fitness of a licensee upon application for a license,
renewal of a license, or reinstatement of a license.95
DFS has authority expressly conferred upon it and reasonably implied from the provisions of the
Insurance Code.96 For investigations, the law provides the following express authority:
DFS may investigate any matter to determine whether a violation of the Insurance Code has
occurred, or to secure information that may be useful in the lawful administration of the Insurance
Code.97 This includes the authority to investigate the accounts, records, documents, and
transactions of licensees.98
DFS may investigate the conduct of any licensee, upon its own motion or upon receiving a written
complaint signed by an interested person, so long as there is reasonable cause to believe that a
licensee has violated a provision of the Insurance Code. 99 A licensee that fails to respond to a
written request for documents or other information within 20 days of receipt of such request may be
subject to administrative penalties of up to $2,500.100
Enforcement powers granted to DFS – including authority to issue orders to cease and desist,
administrative complaints to suspend or revoke a license and/or remove affiliated parties – apply to
licensees and their affiliated parties, and to unlicensed persons who engage in activities for which
licensure is required.101
Effect of the Bill
The bill provides explicit authority to investigate licensees for violations of the Insurance Code even if a
license expires, is not renewed, or is surrendered. The bill also states that the withdrawal of a complaint
does not affect DFS’s authority to investigate or take administrative action against a licensee or former
licensee. An alleged violation must have occurred while the licensee held an active license.
Express authority is added to s. 626.201, F.S., which permits DFS to investigate applicants seeking
licensure or appointment in Florida. Identical express authority is added to s. 648.46, F.S., which
permits DFS to take disciplinary actions against licensed bail bond agents.
Closure of an Insurance Agency
Current law does not address the closure of an insurance agency. Some insurance agencies have
abandoned their offices and records, forcing DFS to work with landlords, retrieve records, and complete
unfinished work, like remitting checks to insurers and managing applications that were not filed.
Effect of the Bill
The bill provides instructions for closure in the event that an insurance agency stops doing business for
a period exceeding 31 days. Within 30 days of the date the insurance agency stops doing business, the
insurance agency must:
Notify DFS of its closure and cancel its agency license;
Notify insurers, policyholders, and premium finance companies of the closure and provide
information about the agency or agent who has taken over the book of business; and
95 Ss. 626.201, 648.27, 648.34 and 648.355 F.S.
96 S. 624.401(2), F.S.
97 S. 624.307(3), F.S.
98 S. 624.317, F.S.
99 S. 626.601, F.S.
100 S. 624.307 (10)(b), F.S.
101 Ss. 624.310(2), 624.319(3)-(4) and (8), and 626.016, F.S.
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Ensure that all funds held in a fiduciary capacity are properly distributed to the rightful owner(s).
Failure to provide the required notifications could result in a fine and suspension or revocation of the
agency license.
All-Lines Adjusters
An all-lines adjuster is a person who determines the value of a claim, loss, or damage payable under a
property or casualty insurance contract and tries to negotiate a settlement of such claim, loss, or
damage.102
Such persons must pass a written exam recognized by DFS to be licensed unless they qualify for an
exemption.103
Examination is not required for persons who earn an appropriate designation from a regionally
accredited postsecondary institution in Florida; or certification from a recognized professional
association whose curriculum has been approved by DFS, like the Insurance Institute of America or the
Claims and Litigation Management Alliance.104
Effect of the Bill
The bill adds the Certified All Lines Adjuster certificate from Kaplan Financial Education to a list of
recognized programs that exempt an applicant from the examination requirement.
Title Agents and Agencies
Title insurance insures property owners against claims related to the ownership of an insured property,
liability for back taxes, and liens or other encumbrances. 105
Effect of the Bill
The bill includes clarifying amendments in six sections related to the sale of title insurance:
A title insurer may not sell policies unless both the agent and the agency are appointed by the
insurer;106
Pre-licensing classes for title insurance agents may be taught online as well as in a classroom; 107
Both title agents and title agencies are required to have a separate appointment for each insurer
that has appointed the agent or agency;108
Appointments for title agents and title agencies are renewable every two years; 109
Notice requirements related to the termination of an appointment apply to both title agents and title
agencies;110
Sanctions related to the suspension or revocation of a license apply to both title agents and title
agencies.111
Public Adjusters
102 S. 626.8548, F.S.
103 Ss. 626.211 and 626.292, F.S.
104 S. 626.221(2)(j), F.S.
105 Ch. 626, part V, F.S.
106 S. 626.8412, F.S.
107 S. 626.8417, F.S.
108 S. 626.8421, F.S.
109 S. 626.843, F.S.
110 S. 626.8433, F.S.
111 S. 626.8447, F.S.
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Public adjusters file and negotiate insurance claims on behalf of a policyholder, for a fee. Florida law
limits reimbursement to a public adjuster to no more than 20 percent of a claim payment, or no more
than 10 percent of a payment for a claim that arose from an event that was declared a state of
emergency. The law additionally prohibits a public adjuster from offering any gratuity worth more than
$25, or any loan or advance to a client in return for representation in an insurance claim. Further, public
adjusters may not offer residential property owners any type of gratuity or rebate in return for permitting
a roof inspection, or making an insurance claim for roof damage. 112
Persons seeking licensure as a public adjuster must have been licensed and appointed as a public
adjuster apprentice, independent adjuster, or company employee adjuster for at least six months prior
to application.113
Persons seeking licensure as a public adjuster apprentice must be licensed as an all-lines adjuster and
must post a $50,000 bond during his or her appointment to a public adjusting firm and for a year
following termination of such appointment.114
Nonresident public adjusters may be licensed to do business in Florida if they satisfy the application
requirements, including passing a written exam, and demonstrating that they have been licensed and
employed as a public adjuster or insurance company adjuster or independent adjuster in a state other
than Florida during the six months prior to application. Additionally, the applicant must post a $50,000
bond that may not be terminated without 30 days written notice to DFS.115
Effect of the Bill
The bill establishes requirements for public adjusting firms and their apprentices, and makes technical
changes to related laws:
Most homeowners, condo, and renter insurance include coverage for additional living expens es a
policyholder incurs if the policyholder cannot live in his or her home due to a covered loss. The bill
prohibits compensation to a public adjuster based on amounts attributable to additional living
expenses unless the public adjuster and the policyholder agree to such compensation in a separate
agreement that includes the following disclosure: "I agree to retain and compensate the public
adjuster for adjusting my additional living expenses and securing payment from my insurer for
amounts attributable to additional living expenses payable under the policy issued on my
(home/mobile home/condominium unit).”
Creates a new provision which states that compensation paid to a public adjuster may not be
increased based on a claim being resolved by litigation.
Requires that adjusting firms seeking licensure include the name and license number of the
designated primary adjuster who is responsible for adjusters at each business location, and
requires fingerprints for background checks of the owner(s) as well as corporate officers and
directors;
Requires that an applicant for licensure as a public adjuster must have been licensed and
appointed in Florida as a non-resident public adjuster, or as an all-lines adjuster, on a continual
basis, during the six months prior to application;
Amends the definition of “public adjuster apprentice” to state that such apprentice must be
employed by a public adjusting firm, rather than employed by a public adjuster;
Requires that a $50,000 bond posted by each public adjuster apprentice remain in effect for one
year after termination of the public adjuster apprentice license, and requires that the public
adjusting firm provide DFS with notice of the primary adjuster who responsible for the supervision of
all adjusters at the firm’s location;
Requires that the $50,000 bond posted by each nonresident public adjuster must remain in effect
for one year following the expiration or termination of the public adjuster license, and also makes
112 S. 626.854, F.S.
113 S. 626.865(1)(e), F.S.
114 S. 626.8651(1),F.S.
115 S. 626.8732, F.S.
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changes to comply with federal law related to the use of fingerprints in national background checks,
discussed above.
The Florida Patient’s Compensation Fund
Florida experienced a medical malpractice insurance crisis in the mid-1970s when 20 professional
liability insurers responded to rising medical malpractice awards and settlements by cancelling
coverage of Florida physicians and withdrawing from the market. Companies remaining in the market
increased rates dramatically, with the leading insurer at the time requesting and receiving approval for a
100 percent increase in premium rates paid by doctors. 116
The Legislature responded by enacting The Medical Malpractice Reform Act of 1975, which, among
other things, created the Florida Patient’s Compensation Fund (Fund) to limit the risk exposure of
participating health care providers. Participants had to show proof of $100,000 coverage from an
insurer or self-insurance plan and deposit an annual fee into the Fund. The Fund paid the excess over
$100,000 for any judgment or settlement against a member. The Fund was capped at $25 million and
could not pay more than $1 million on a given claim in any single year. 117
The Fund attracted providers and ran smoothly for a few years but was not actuarially sound, so
substantial losses began to accumulate.118 In 1982, The Fund assessed its members to cover deficits,
hospitals dropped out because most of the claims were against physicians, and the Fund was unable to
continue operating.119 During its short tenure, the Fund received $72 million in membership fees and
$280 million in assessments; closed 4,595 claims and paid more than $311 million to victims of medical
malpractice.120
Initially, the Fund was scheduled for sunset in 1991 and repeal in 1995; however, during a special
session in 1991 the Legislature revived and readopted all statutes that had been subject to future
repeal, including Section 766.105, F.S.121 As a result, the law has not been subject to sunset review
even though the Fund has not accepted new members since June 30, 1983. 122
All private hospitals were required to join the Fund or demonstrate financial responsibility of at least
$10,000 per bed through self-insurance, by posting a bond or establishing an escrow account, or by
purchasing professional liability insurance. Compliance was delegated to the Agency for Health Care
Administration (AHCA), which required proof of membership or exemption for licensing and license
renewal. The requirement that AHCA determine compliance with Section 766.105(2)(d)2, F.S., remains,
so hospitals must demonstrate that they are exempt from participation in the Florida Patient’s
Compensation Fund by providing proof of financial responsibility through one of the following:
A bond posted in the amount equivalent to $10,000 per claim for
each hospital bed, not to exceed a $2,500,000 annual aggregate.
116 U.S. General Accounting Office, Medical Malpractice Case Study on Florida, Report to Congressional Requestors,
December 1986, at 8, www.gao.gov/assets/hrd-87-21s-3. pdf, (last visited Oct. 8, 2021); and Florida House of
Representatives Committee on Insurance, The Florida Patient’s Compensation Fund: Status Report on Terminating
Activities of the Fund, December 10, 1994, at 1-7.
117 S. 765,105, F.S.
118 The Florida Patient’s Compensation Fund: Status Report on Terminating Activities of the Fund, supra note 116, at 7.
Section 766.105(3)(h), F.S., provides that the Fund must determine whether it has minimum membership levels to offer
coverage one week prior to the beginning of each fiscal year. The minimum membership thresholds of $5 million for non -
hospital providers and $12.5 million for hospitals could not be met when hospitals stopped participatin g.
119 Medical Malpractice Case Study on Florida, Report to Congressional Requestors, supra note 116, at 10.
120 The Florida Patient’s Compensation Fund: Status Report on Terminating Activities of the Fund, supra note 116, at 17-
18.
121 Id., at 1.
122 Office of Insurance Regulation, Target Mark et Conduct Final Examination Report of the Florida Patient’s
Compensation Fund, April 25, 2014, at 4, lamainrouge.net/siteDocuments/FLPatientsCompens ationFund 04252014.pdf
(last visited Oct. 8, 2021).
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An escrow account in an amount equivalent to $10,000 per claim
for each hospital bed, not to exceed a $2,500,000 annual
aggregate to the satisfaction of the Agency for Health Care
Administration.
Professional liability coverage in an amount equivalent to $10,000
or more per claim for each hospital bed, from a private insurer, the
Joint Underwriting Association; or through a plan of self-insurance
as provided in section 627.357, F.S., not to exceed a $2,500,000
annual aggregate. Include proof of funding any self-insurance
retention.
Sovereign immunity. State Agencies, subdivisions or
instrumentalities of the state. No additional documentation
necessary if previously documented.123
The Fund is an independent, tax-exempt entity created by the state, but OIR has supervisory authority
over the Fund’s Plan of Operation and any changes to the Plan of Operation, including repeal. 124
The law requires that OIR review any request for assessments of plan participants or refunds of plan
participants, and further states that the Fund is required to furnish audited financial reports annually,
upon request, to any fund participant and to the OIR and the Joint Legislative Auditing Committee. 125
The following provides a short history of interactions between the Fund and OIR:
OIR Approved the Fund’s Plan of Operations in 1979; 126
OIR approved member fees in 1981, 1985, 1986 and 1989; 127
OIR ordered 12 assessments of Fund members and approved 11 refunds between 1982 and
2004;128
In 1994, the Fund’s general manager advised the House of Representatives that it would take
about six or seven years to wind down the Fund’s operations, which, at that time, included 69
open claims that were the subject of litigation;129
The Fund rejected a proposal to merge with the Florida Medical Malpractice Joint Underwriting
Association in 2008, but promised to reduce its budget by 20 percent in 2009 and an additional
10 percent in 2010.130
o In response, OIR noted that operating expenses of $325,950 (including $111,000 salary to
the general manager, at that time the Fund’s only employee) were not prudent because the
Fund had not written any new policies in 20 years. OIR suggested that the Fund meet once
per year, via conference call, and outsource the duties of the general manager. 131
o In reply, the Fund provided a legal opinion stating that its Articles of Association require a
general manager and that the Fund benefited from the general manager’s knowledge of the
Fund’s history and activities.132
123 Agency for Health Care Administration, Health Quality Assurance Licensure Form3130-8001s, Hospital, at 11,
https://Ahca.myflorida.com/MCHQ/HQALicensureForms , (last visited Oct. 8, 2021).
124 S. 766.105(3)(c), F.S.
125 S. 766.105(3)(e)4, F.S
126 Email from Grant Phillips, Director of Legislative Affairs for the Office of Insurance Regulation, FPCF Order Timeline, at
26 (Nov. 16, 2021).
127 Id.
128 Target Mark et Conduct Final Examination Report of the Florida Patient’s Compensation Fund, supra note 122, at 7.
129 Id., at 20-21.
130 Correspondence from Stanley Marguilies, M.D., chairman of the Board of Governors of the Florida Patient’s
Compensation Fund to Insurance Commissioner Kevin McCarty, June 13, 2008.
131 Correspondence from Insurance Commissioner Kevin McCarty to Stanley Marguilies, M.D., chairman of the Board of
Governors of the Florida Patient’s Compensation Fund, Augus t 14, 2008.
132 Legal opinion of Zollie M. Maynard, Esq., general counsel for the Florida Patient’s Compensation Fund, September 18,
2008.
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A 2014 market conduct exam conducted by OIR noted that the Fund’s operating expenses were
$330,950 in 2010, $338,700 in 2011, and $359,700 in 2012.
o The increase in operating costs was attributed to a “catastrophic computer failure” that
caused the Fund to lose all digital records related to refunds. A vendor used microfilm
records to restore the Fund’s digital system and the Fund installed automated backup
programs on its one desktop and two laptop computers. 133
By spring 2016, the Fund had negotiated a $3,334,000 deal with Berkshire Hathaway, which
was willing to accept liability for 10 annuities that were owned by the Fund and did not have a
unified qualified assignment that would have released the Fund from liability in the event an
insurer paying annuitants through a structured settlement became insolvent. A transfer to
Berkshire Hathaway would have allowed the Fund to issue refunds to former members and wind
down its activities. The Fund rejected the deal when final contract language gave OIR
contractual control over most of the Fund’s activities.134
In the fall of 2016, the Fund submitted a request to OIR to issue refunds and wind the Fund
down, but was unable to persuade OIR that it did not have any contingent liability for some of
the annuities that were issued by insurance companies, and continue to be serviced by those
insurance companies, as part of structured settlements negotiated by the Fund decades
earlier.135
In 2019, the Fund obtained releases of contingent liability from five annuitants whose remaining
payments exceed the $300,000 limit of the Florida Life and Health Insurance Guaranty
Association (FLHIGA), which would be responsible for claims in the event an insurer servicing
the annuities became insolvent.136
In 2021, an actuarial report conducted for the Fund found the Fund retains an ownership
interest in 15 annuities that have an aggregate future value of $12,680,687. In the event of an
insurer insolvency, many of the annuities would be covered by FLHIGA, therefore the actuary
concluded that the Fund’s exposure to contingent liability is $2,403,590. About half of the
remaining annuitants were children when their parents entered into structured settlements with
the Fund; therefore, some of the remaining annuities may continue for another 40 years.137
Audited financial reports state that the Fund had total assets of $15,135,541 at the close of 2020; this
includes $14,888,634 held in investment accounts. 138 Thus, it appears that the Fund has enough assets
to cover its liabilities.
Operating costs have increased in recent years, because the Board of Governors approved the general
manager’s request for an assistant in 2015 and approved 4 percent annual salary increases for the two
Fund employees for 2017, 2018, 2019 and 2020.139 The Fund contributes to an employee pension plan
and pays for legal counsel, accounting and auditing, rent and utilities, travel, and insurance. 140
133 Target Mark et Conduct Final Examination Report of the Florida Patient’s Compensation Fund, supra note 122, at 6-8.
134 Correspondence from OIR Assistant General Counsel Alyssa S. Lathrop to General Manager of the Florida Patient’s
Compensation Fund Charles J. Portrero, November 17, 2016; and Minutes of the May 18, 2017, meeting of the Florida
Patient’s Compensation Fund Operations Committee.
135 Correspondence from OIR Assistant General Counsel Alyssa S. Lathrop to General Manager of the Florida Patient’s
Compensation Fund Charles J. Portrero, November 17, 2016; and Correspondence from David Yon, Esq., on behalf of
the Florida Patient’s Compensation Fund, to Susan Herendeen, Esq., of the Insurance and Banking Subcommittee of the
Florida House of Representatives, Dec. 22. 2021.
136 Correspondence from David Yon, Esq., on behalf of the Florida Patient’s Compensation Fund, to Jane Nelson of the
Office of Insurance Regulation, Aug. 4, 2021.
137 Jack Swisher, ACAS, MAAA, Florida Patient’s Compensation Fund Annuity Insolvency Analysis, Jun e 28, 2021, at 4-5;
and Correspondence from David Yon, Esq., on behalf of the Florida Patient’s Compensation Fund, to Jane Nelson of the
Office of Insurance Regulation, Aug. 4, 2021.
138 Carr Riggs & Ingram CPAs and Advisors, Florida Patient’s Compensation Fund Financial Statements, Dec. 31, 2020,
at 4.
139 Memo to the Florida Patient’s Compensation Fund Operating Committee from General Manager Charles Portrero,
November 19, 2018.
140 OIR monitors meetings of the Florida Patient’s Compensation Fund by telephone and receives copies of meeting
materials the Fund provides to its Board of Governors. OIR provided copies of meeting materials from 2011-2020 to the
Insurance and Banking Subcommittee.
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The following comes from financial statements the Fund shared with its governing board and OIR:
2016 2017 2018 2019 2020
Salaries $181,754.00 $213,668.00 $221,600.00 $229,764.00 $240,417.00
Pension Plan $59,684.00 $52,303.00 $55,677.00 $54,424.00 $45,891.00
Rent, Utilities, and Janitorial $20,336.00 $16,704.00 $16,158.00 $16,758.00 $12,841.00
General Counsel $3,500.00 $42,195.00 $36,992.00 $35,339.00 $37,065.00
Accounting and Audit $73,513.00 $58,294.00 $52,578.00 $52,821.00 $39,126.00
Travel & Expenses (staff) $1,463.00 $4,087.00 $3,841.00 $1,962.00 $4,404.00
Travel & Expenses (board) $7,124.00 $20,327.00 $17,627.00 $21,905.00 $22,751.00
Effect of the Bill
The bill repeals the Florida Patient’s Compensation Fund and states that DFS will supervise any
liquidation or dissolution of the Fund.
Effective Date
The bill shall be effective upon becoming a law, except as otherwise provided. The effective date for the
educational tutorial that will be part of the workers’ compensation exemption application process is
January 1, 2023. The effective date changes to reduce financial penalties for non-compliance with
workers’ compensation law is October 1, 2022.
B. SECTION DIRECTORY:
Section 1. Repeals s. 17.0315, F.S., Financial and cash management system; task force.
Section 2. Amends s. 110.123, F.S., State Group Insurance Program.
Section 3. Amends s. 110.131, F.S., Other-personal-services employment.
Section 4. Amends s. 120.541, F.S., Statement of estimated regulatory costs.
Section 5. Amends s. 215.34, F.S., State funds; noncollectible items; procedure.
Section 6. Amends s. 215.93, F.S., Florida Financial Management Information System.
Section 7. Amends s. 215.94, F.S., Designation, duties, and responsibilities of functional owners.
Section 8. Amends s. 216.102, F.S., Filing of financial information; handling by Chief Financial Officer;
penalty for noncompliance.
Section 9. Amends s. 218.32, F.S., Annual financial reports; local government entities.
Section 10. Amends s. 414.40, F.S., Stop Inmate Fraud Program established; guidelines.
Section 11. Amends s. 440.02, F.S., Definitions.
Section 12. Amends s. 440.05, F.S., Election of exemption; revocation of election; notice; certification of
exemptions.
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Section 13. Amends s. 440.107, F.S., Department powers to enforce employer compliance with
coverage requirements.
Section 14. Amends s. 440.13, F.S., Medical services and supplies; penalty for violations; limitations.
Section 15. Amends s. 440.185, F.S., Notice of injury or death; reports; penalties for violations.
Section 16. Amends s. 440.381, F.S., Application for coverage; reporting payroll; payroll audit
procedures; penalties.
Section 17. Amends s. 497.277, F.S., Other charges.
Section 18. Amends s. 497.369, F.S., Embalmers; licensure as an embalmer by endorsement;
licensure of a temporary embalmer.
Section 19. Amends s. 497.372, F.S., Funeral directing; conduct constituting practice of funeral
directing.
Section 20. Amends s. 497.374, F.S., Funeral directing; licensure as a funeral director by endorsement;
licensure of a temporary funeral director.
Section 21. Amends s. 554.108, F.S., Inspection.
Section 22. Amends s. 544.111, F.S., Fees.
Section 23. Amends s. 554.114, F.S., Prohibitions; penalties.
Section 24. Amends s. 624.423, F.S., Serving process.
Section 25. Amends s. 626.015, F.S., Definitions.
Sections 26, 27, 30, 34, 35, 48, 49, 54, and 55. Amend fingerprint requirements for background checks
that are part of the licensing processes detailed in ss. 626.171, 626.172, 626.202, 626.601, 626.8411,
626.8734, 626.9953, 648.34, and 648.355, F.S., Amendments make it clear that the authority for the
use of fingerprints in background checks comes from s. 626.201, F.S.
Section 28. Creates s. 626.173, F.S., Insurance agency closure; cancellation of licenses.
Section 29. Amends s. 626.201, F.S., Investigation.
Section 31. Amends s. 626.221, F.S., Examination requirements; exemption.
Section 32. Amends s. 626.311, F.S., Scope of license.
Section 33. Amends s. 626.321, F.S., Limited licenses and registration.
Section 36. Amends s. 626.8412, F.S., License and appointments required.
Section 37. Amends s. 626.8417, F.S., Title insurance agent licensure; exemptions.
Section 38. Amends s. 626.8421, F.S., Number of appointments permitted or required.
Section 39. Amends s. 626.843, F.S., Renewal; continuation; reinstatement; termination of title
insurance agent’s; appointment.
Section 40. Amends s. 626.8433, F.S., Filing of reasons for terminating appointment of title insurance
agent’s; confidential information.
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Section 41. Amends s. 626.8447, F.S., Effect of suspension or revocation upon other licensees,
appointees.
Section 42. Amends s. 626.854, F.S., “Public adjuster” defined; prohibitions.
Section 43. Amends s. 626.8561, F.S., “Public adjuster apprentice” defined.
Section 44. Amends s. 626.865, F.S., Public adjuster qualifications, bond.
Section 45. Amends s. 626.8651, F.S., Public adjuster apprentice appointment; qualifications.
Section 46. Amends s. 626.8696, F.S., Application for adjusting firm license.
Section 47. Amends s. 626.8732, F.S., Nonresident public adjuster’s qualifications, bond.
Section 50. Amends s. 633.135, F.S., Firefighter Assistant Grant Program.
Section 51. Amends s. 633.216, F.S., Inspection of Buildings and Equipment; orders; firesafety
inspection training requirements; certification; disciplinary action.
Section 52. Amends s. 633.408, F.S., Firefighter and volunteer firefighter training and certification.
Section 53. Amends s. 633.414, F.S., Retention of firefighter and volunteer firefighter certifications.
Section 56. Amends s. 648.46, F.S., Procedure for disciplinary action against licensees.
Section 57. Repeals s. 766.105, F.S., Florida Patient’s Compensation Fund.
Section 58: Amends s. 945.6041, F.S., Inmate Medical Services.
Section 59: Amends s. 985.6441, F.S., Health care services.
Section 60. Provides DFS authority over the liquidation or dissolution of the Florida Patient’s
Compensation Fund.
Section 61. Provides that the transfer of the Stop Inmate Fraud Program from DFS to DEO shall take
place in accordance with s. 20.06, F.S.
Section 62. Provides that the bill shall be effective July 1, 2022, except as otherwise provided. The bill
proposes an effective date of January 1, 2023, for Sections 12 and 13.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill may have insignificant but indeterminate impact on state revenues.
2. Expenditures:
The bill may have insignificant but indeterminate impact on state expenditures.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
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2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Reducing the penalty calculation period and increasing credits for businesses that fail to comply with
the workers’ compensation law, so long as the business has not previously failed to provide workers’
compensation coverage for its employees, should reduce the cost of non-compliance for small
businesses, particularly those in the construction industry.
Exempting schedules of maximum reimbursement for ambulatory surgical centers, healthcare
providers, and hospitals from legislative ratification likely would result in increased fees to providers of
healthcare, but could also force insurers to request rate increases to pay such costs.
Permitting payroll audits by mail, rather than in person, for employers in the construction industry that
have an estimated annual workers’ compensation premium of less than $10,000 could result in modest
cost savings for insurance carriers.
Permitting unaffiliated insurance agents to adjust claims, so long as the agent is also a licensed
adjuster, could create employment opportunities for persons who hold both licenses and increase the
pool of adjusters who can respond in the aftermath of a large storm or catastrophic event.
Terminating the Florida Patient’s Compensation Fund could result in refunds to doctors and hospitals
that were members of the Fund in the late 1970s and early 1980s.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
Restricting compensation to public adjusters when a claim is resolved by litigation (Section 42 of the
bill) could deter public adjusters from assisting consumers who have complex disputes with a property
insurer and infringe on the public adjuster’s right to bargain for his or her services.
B. RULE-MAKING AUTHORITY:
Section 14. The bill gives DWC explicit rulemaking authority to administer programs related to
maximum reimbursement allowances established by the Three-Member panel in accordance with s.
440.13(12), F.S.
Section 16. Amendments to s. 440.381, F.S., will require revisions to Rule 69O-189.003(b)3, F.A.C.,
promulgated by OIR, relating to payroll audits for workers’ compensation insurance.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Termination of the Florida Patient Compensation’s Fund requires preservation of the financial
responsibility requirements for hospitals that are outlined in s. 766.105, F.S.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 959 2022
1 A bill to be entitled
2 An act relating to Department of Financial Services;
3 repealing s. 17.0315, F.S., relating to the financial
4 and cash management system and task force; amending s.
5 110.123, F.S.; revising definitions; authorizing
6 specified persons relating to the Division of
7 Rehabilitation and Liquidation to purchase coverage in
8 a state group health insurance plan at specified
9 premium costs; providing that the enrollment period
10 for the state group insurance program begins with a
11 specified plan year for certain persons relating to
12 the division; amending s. 110.131, F.S.; conforming a
13 cross-reference; amending s. 120.541, F.S.; revising
14 applicability of certain provisions relating to a
15 specified proposed rule; amending s. 215.34, F.S.;
16 deleting the requirement for specified entities
17 receiving certain charged-back items to prepare a
18 journal transfer; amending s. 215.93, F.S.; renaming a
19 subsystem of the Florida Financial Management
20 Information System; amending s. 215.94, F.S.;
21 conforming a provision to changes made by the act;
22 amending s. 216.102, F.S.; making technical changes;
23 amending s. 218.32, F.S.; revising legislative intent;
24 providing functions of the Florida Open Financial
25 Statement System; requiring local governments to use
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26 the system to file specified reports; providing
27 requirements for the system; revising the list of
28 entities with which the Chief Financial Officer may
29 consult with regard to the system; authorizing, rather
30 than requiring, certain local governmental financial
31 statements to be filed in a specified format; deleting
32 certain requirements for such statements; providing
33 construction; providing exceptions; amending s.
34 414.40, F.S.; transferring the Stop Inmate Fraud
35 Program from the Department of Financial Services to
36 the Department of Economic Opportunity; authorizing
37 the program to provide reports of certain data to the
38 Division of Public Assistance Fraud for a specified
39 purpose; amending s. 440.02, F.S.; revising the
40 definition of the term "employer"; amending s. 440.05,
41 F.S.; revising information that must be submitted with
42 the notice of election to be exempt from workers'
43 compensation coverage; requiring the circumstances
44 under which the Department of Financial Services must
45 send certain notifications to workers' compensation
46 carriers; requiring such notifications to be
47 electronic; requiring certificates of election to be
48 exempt to contain certain notice; deleting a provision
49 requiring certain corporation officers to maintain
50 business records; revising applicability of
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51 certificates of election to be exempt; amending s.
52 440.107, F.S.; revising the timeframe for certain
53 employers to produce specified records under certain
54 circumstances; prohibiting employers who have failed
55 to secure payment of workers' compensation from
56 entering a payment agreement schedule with the
57 department unless a specified condition is met;
58 revising circumstances that result in immediate
59 reinstatement of stop-work orders; revising penalty
60 assessments; amending s. 440.13, F.S.; revising
61 statewide schedules of maximum reimbursement
62 allowances for medically necessary treatment, care,
63 and attendance; authorizing the department to adopt
64 rules; amending s. 440.185, F.S.; revising the
65 timeline and methods for workers' compensation
66 carriers to send certain informational brochure to
67 injured workers; revising methods by which such
68 informational brochure is sent to employers; amending
69 s. 440.381, F.S.; specifying new and renewal workers'
70 compensation policies that require physical onsite
71 audits for a specified class; amending s. 497.277,
72 F.S.; deleting a cap on transferring burial rights
73 fees; amending s. 497.369, F.S.; revising requirements
74 for licenses by endorsement to practice embalming;
75 amending s. 497.372, F.S.; revising the scope of
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76 funeral directing practice; amending s. 497.374, F.S.;
77 revising requirements for licenses by endorsement to
78 practice funeral directing; amending s. 554.108, F.S.;
79 requiring boilers manufactured after a specified date,
80 rather than boilers of certain heat input, to be
81 stamped with a specified code symbol; revising the
82 boilers' information that must be filed; requiring
83 that specified spaces and rooms be equipped with
84 carbon monoxide detector devices; amending s. 554.111,
85 F.S.; deleting a requirement for a specified fee for a
86 certificate of competency; requiring applications for
87 boiler permits to include a specified report; revising
88 the purpose for special trips that the department is
89 required to make for boiler inspections; amending s.
90 554.114, F.S.; revising the schedules of penalties
91 against boiler insurance companies, inspection
92 agencies, and other persons for specified violations;
93 amending s. 624.423, F.S.; specifying procedures for
94 service of process upon insurers; amending s. 626.015,
95 F.S.; revising the definition of the term
96 "unaffiliated insurance agent"; amending s. 626.171,
97 F.S.; requiring fingerprints for certain licenses to
98 be processed in accordance with specified laws;
99 amending s. 626.172, F.S.; revising the method by
100 which fingerprints for applications for insurance
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101 agency licenses are submitted; deleting a fingerprint
102 processing fee; creating s. 626.173, F.S.; requiring
103 insurance agencies' licenses to be immediately
104 cancelled under certain circumstances; providing the
105 method by which such cancellations must be made;
106 providing duties for certain insurance agency persons
107 within a specified timeframe after cessation of
108 insurance transactions; authorizing the department to
109 impose administrative fines against such persons for
110 specified violations; providing a cap on such fines;
111 authorizing the department and the Office of Insurance
112 Regulation to suspend or revoke licenses under certain
113 circumstances; providing requirements for determining
114 penalties and remedies; amending s. 626.201, F.S.;
115 conforming a provision to changes made by the act;
116 providing continuation of jurisdiction of the
117 licensing authority to investigate and prosecute
118 specified violations under certain circumstances;
119 amending s. 626.202, F.S.; conforming provisions to
120 changes made by the act; amending s. 626.221, F.S.;
121 adding a designation to the list of designations that
122 allow applicants for all-lines adjuster license to be
123 exempt from an examination; amending s. 626.311, F.S.;
124 providing an exception to the prohibition against
125 unaffiliated insurance agents' holding appointments
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126 from insurers; amending ss. 626.321, 626.601,
127 626.8411, and 626.8412, F.S.; conforming provisions to
128 changes made by the act; amending s. 626.8417, F.S.;
129 revising requirements to qualify for title insurance
130 agent licenses; amending s. 626.8421, F.S.; requiring
131 title agencies to have separate appointments under
132 certain circumstances; amending s. 626.843, F.S.;
133 providing appointments of title insurance agencies;
134 amending s. 626.8433, F.S.; requiring title insurers
135 that terminate appointments of title insurance
136 agencies to file certain information with the
137 department; amending s. 626.8447, F.S.; providing
138 effects of suspension or revocation of title insurance
139 agency licenses; amending s. 626.854, F.S.; providing
140 restrictions on public adjuster compensations;
141 providing exceptions to such restrictions; amending s.
142 626.8561, F.S.; revising the definition of the term
143 "public adjuster apprentice"; amending s. 626.865,
144 F.S.; revising requirements to qualify for public
145 adjuster licenses; requiring that certain bonds remain
146 in effect for a specified period after expiration of
147 the license; amending s. 626.8651, F.S.; requiring
148 that certain bonds remain in effect for a specified
149 period after expiration of the public adjuster
150 apprentice license; revising requirements for public
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151 adjuster apprentices to be, act as, or hold themselves
152 out to be public adjust apprentices; amending s.
153 626.8696, F.S.; revising requirements for adjusting
154 firm license applications; amending s. 626.8732, F.S.;
155 requiring applicants for nonresident public adjuster
156 licenses to maintain certain bonds after the
157 expiration or termination of licenses; amending ss.
158 626.8734 and 626.9953, F.S.; conforming provisions to
159 changes made by the act; amending s. 633.135, F.S.;
160 providing additional uses for firefighter funds;
161 amending s. 633.216, F.S.; revising requirements for
162 renewal of firesafety inspector certificates; amending
163 s. 633.408, F.S.; revising requirements for the
164 issuance of a Firefighter Certificate of Compliance
165 and Special Certificate of Compliance; deleting
166 provisions relating to requirements to retain a
167 Special Certificate of Compliance; amending s.
168 633.414, F.S.; providing requirements to retain a
169 Special Certificate of Compliance; revising
170 requirements to retain a Firefighter Certificate of
171 Compliance; providing a definition; amending ss.
172 648.34 and 648.355, F.S.; conforming provisions to
173 changes made by the act; amending s. 648.46, F.S.;
174 providing continuation of jurisdiction of the
175 licensing authority to investigate and prosecute
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176 specified violations under certain circumstances;
177 repealing s. 766.105, F.S., relating to the Florida
178 Patient's Compensation Fund; amending ss. 945.6041 and
179 985.6441, F.S.; conforming provisions to changes made
180 by the act; requiring the Department of Financial
181 Services to supervise liquidation and dissolution of
182 the Florida Patient's Compensation Fund and to have
183 all power granted to it with respect to such
184 liquidation or dissolution; transferring the Stop
185 Inmate Fraud Program within the Department of
186 Financial Services to the Department of Economic
187 Opportunity by a type two transfer; providing
188 effective dates.
189
190 Be It Enacted by the Legislature of the State of Florida:
191
192 Section 1. Section 17.0315, Florida Statutes, is repealed.
193 Section 2. Subsections (9) through (13) of section
194 110.123, Florida Statutes, are renumbered as subsection (10)
195 through (14), respectively, paragraphs (b), (c), (f), (h), (i),
196 and (o) of subsection (2) and paragraph (i) of subsection (5)
197 are amended, and a new subsection (9) is added to that section,
198 to read:
199 110.123 State group insurance program.—
200 (2) DEFINITIONS.—As used in ss. 110.123-110.1239, the
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201 term:
202 (b) "Enrollee" means all state officers and employees,
203 retired state officers and employees, surviving spouses of
204 deceased state officers and employees, and terminated employees
205 or individuals with continuation coverage who are enrolled in an
206 insurance plan offered by the state group insurance program. The
207 term "Enrollee" includes all state university officers and
208 employees, retired state university officers and employees,
209 surviving spouses of deceased state university officers and
210 employees, and terminated state university employees or
211 individuals with continuation coverage who are enrolled in an
212 insurance plan offered by the state group insurance program. As
213 used in this paragraph, state employees and retired state
214 employees also include employees and retired employees of the
215 Division of Rehabilitation and Liquidation.
216 (c) "Full-time state employees" means employees of all
217 branches or agencies of state government holding salaried
218 positions who are paid by state warrant or from agency funds and
219 who work or are expected to work an average of at least 30 or
220 more hours per week; employees of the Division of Rehabilitation
221 and Liquidation who work or are expected to work an average of
222 at least 30 hours per week; employees paid from regular salary
223 appropriations for 8 months' employment, including university
224 personnel on academic contracts; and employees paid from other-
225 personal-services (OPS) funds as described in subparagraphs 1.
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226 and 2. The term includes all full-time employees of the state
227 universities. The term does not include seasonal workers who are
228 paid from OPS funds.
229 1. For persons hired before April 1, 2013, the term
230 includes any person paid from OPS funds who:
231 a. Has worked an average of at least 30 hours or more per
232 week during the initial measurement period from April 1, 2013,
233 through September 30, 2013; or
234 b. Has worked an average of at least 30 hours or more per
235 week during a subsequent measurement period.
236 2. For persons hired after April 1, 2013, the term
237 includes any person paid from OPS funds who:
238 a. Is reasonably expected to work an average of at least
239 30 hours or more per week; or
240 b. Has worked an average of at least 30 hours or more per
241 week during the person's measurement period.
242 (f) "Part-time state employee" means an employee of any
243 branch or agency of state government paid by state warrant from
244 salary appropriations or from agency funds, or an employee of
245 the Division of Rehabilitation and Liquidation, and who is
246 employed for less than an average of 30 hours per week or, if on
247 academic contract or seasonal or other type of employment which
248 is less than year-round, is employed for less than 8 months
249 during any 12-month period, but does not include a person paid
250 from other-personal-services (OPS) funds. The term includes all
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251 part-time employees of the state universities.
252 (h) "Retired state officer or employee" or "retiree" means
253 any state or state university officer or employee, or, beginning
254 with the 2023 plan year, an employee of the Division of
255 Rehabilitation and Liquidation, who retires under a state
256 retirement system or a state optional annuity or retirement
257 program or is placed on disability retirement, and who was
258 insured under the state group insurance program or the Division
259 of Rehabilitation and Liquidation's group insurance program at
260 the time of retirement, and who begins receiving retirement
261 benefits immediately after retirement from state or state
262 university office or employment. The term also includes any
263 state officer or state employee who retires under the Florida
264 Retirement System Investment Plan established under part II of
265 chapter 121 if he or she:
266 1. Meets the age and service requirements to qualify for
267 normal retirement as set forth in s. 121.021(29); or
268 2. Has attained the age specified by s. 72(t)(2)(A)(i) of
269 the Internal Revenue Code and has 6 years of creditable service.
270 (i) "State agency" or "agency" means any branch,
271 department, or agency of state government. "State agency" or
272 "agency" includes any state university and the Division of
273 Rehabilitation and Liquidation for purposes of this section
274 only.
275 (o) "Surviving spouse" means the widow or widower of a
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276 deceased state officer, full-time state employee, part-time
277 state employee, or retiree if such widow or widower was covered
278 as a dependent under the state group health insurance plan,
279 TRICARE supplemental insurance plan, or a health maintenance
280 organization plan established pursuant to this sect ion, or the
281 Division of Rehabilitation and Liquidation's group insurance
282 program at the time of the death of the deceased officer,
283 employee, or retiree. "Surviving spouse" also means any widow or
284 widower who is receiving or eligible to receive a monthly st ate
285 warrant from a state retirement system as the beneficiary of a
286 state officer, full-time state employee, or retiree who died
287 prior to July 1, 1979. For the purposes of this section, any
288 such widow or widower shall cease to be a surviving spouse upon
289 his or her remarriage.
290 (5) DEPARTMENT POWERS AND DUTIES.—The department is
291 responsible for the administration of the state group insurance
292 program. The department shall initiate and supervise the program
293 as established by this section and shall adopt such r ules as are
294 necessary to perform its responsibilities. To implement this
295 program, the department shall, with prior approval by the
296 Legislature:
297 (i) Contract with a single custodian to provide services
298 necessary to implement and administer the health savi ngs
299 accounts authorized in subsection (13) (12).
300
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301 Final decisions concerning enrollment, the existence of
302 coverage, or covered benefits under the state group insurance
303 program shall not be delegated or deemed to have been delegated
304 by the department.
305 (9) COVERAGE AND ENROLLMENT PERIOD FOR EMPLOYEES,
306 RETIREES, AND WIDOWS AND WIDOWERS OF EMPLOYEES AND RETIREES OF
307 THE DIVISION OF REHABILITATION AND LIQUIDATION.—
308 (a) Beginning with the 2023 plan year:
309 1. A retired employee insured under the Division of
310 Rehabilitation and Liquidation's group insurance program, or a
311 widow or widower of an employee or of a retired employee of the
312 Division of Rehabilitation and Liquidation who is covered as a
313 dependent under the Division of Rehabilitation and Liquidation's
314 group insurance program, may purchase coverage in a state group
315 health insurance plan at the same premium cost as that for a
316 retiree or a surviving spouse, respectively, enrolled in the
317 state group insurance program.
318 2. A terminated employee of the Division of Rehabilitation
319 and Liquidation, or an individual with continuing coverage, who
320 is insured under the Division of Rehabilitation and
321 Liquidation's group insurance program, may purchase coverage in
322 a state group health insurance plan at the same premium cost as
323 that for a terminated employee or an individual with
324 continuation coverage, respectively, enrolled in the state group
325 insurance program.
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326 (b) The enrollment period for the state group insurance
327 program begins with the 2023 plan year for:
328 1. Current and retired employees of the Division of
329 Rehabilitation and Liquidation.
330 2. Widows and widowers of employees and of retired
331 employees of the Division of Rehabilitation and Liquidation.
332 3. Terminated employees of the Division of Rehabilitation
333 and Liquidation, or individuals with continuation coverage, who
334 are insured under the Division of Rehabilitation and
335 Liquidation's group insurance program.
336 Section 3. Subsection (5) of section 110.131, Florida
337 Statutes, is amended to read:
338 110.131 Other-personal-services employment.—
339 (5) Beginning January 1, 2014, an other-personal-services
340 (OPS) employee who has worked an average of at least 30 or more
341 hours per week during the measurement period described in s.
342 110.123(14)(c) or (d) s. 110.123(13)(c) or (d), or who is
343 reasonably expected to work an average of at least 30 or more
344 hours per week following his or her employment, is eligible to
345 participate in the state group insurance program as provided
346 under s. 110.123.
347 Section 4. Paragraph (d) is added to subsection (4) of
348 section 120.541, Florida Statutes, and paragraph (a) of
349 subsection (2) and subsection (3) of that section are
350 republished, to read:
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351 120.541 Statement of estimated regulatory costs.—
352 (2) A statement of estimated regulatory costs shall
353 include:
354 (a) An economic analysis showing whether the rule directly
355 or indirectly:
356 1. Is likely to have an adverse impact on economic growth,
357 private sector job creation or employment, or private sector
358 investment in excess of $1 million in the aggregate within 5
359 years after the implementation of the rule;
360 2. Is likely to have an adverse impact on business
361 competitiveness, including the ability of persons doing business
362 in the state to compete with persons doing business in other
363 states or domestic markets, productivity, or innovation in
364 excess of $1 million in the aggregate within 5 years after the
365 implementation of the rule; or
366 3. Is likely to increase regulatory costs, including any
367 transactional costs, in excess of $1 million in the aggreg ate
368 within 5 years after the implementation of the rule.
369 (3) If the adverse impact or regulatory costs of the rule
370 exceed any of the criteria established in paragraph (2)(a), the
371 rule shall be submitted to the President of the Senate and
372 Speaker of the House of Representatives no later than 30 days
373 prior to the next regular legislative session, and the rule may
374 not take effect until it is ratified by the Legislature.
375 (4) Subsection (3) does not apply to the adoption of:
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376 (d) Schedules of maximum reimbursement allowances by the
377 three-member panel which are expressly authorized by s. 440.13.
378 Section 5. Subsection (1) of section 215.34, Florida
379 Statutes, is amended to read:
380 215.34 State funds; noncollectible items; procedure. —
381 (1) Any check, draft, or other order for the payment of
382 money in payment of any licenses, fees, taxes, commissions, or
383 charges of any sort authorized to be made under the laws of the
384 state and deposited in the State Treasury as provided herein,
385 which may be returned for any reason by the bank or other payor
386 upon which same shall have been drawn shall be forthwith
387 returned by the Chief Financial Officer for collection to the
388 state officer, the state agency, or the entity of the judicial
389 branch making the deposit. In such case, the Chief Financial
390 Officer may issue a debit memorandum charging an account of the
391 agency, officer, or entity of the judicial branch which
392 originally received the payment. The original of the debit
393 memorandum shall state the reason for the return of the check,
394 draft, or other order and shall accompany the item being
395 returned to the officer, agency, or entity of the judicial
396 branch being charged. The officer, agency, or entity of the
397 judicial branch receiving the charged-back item shall prepare a
398 journal transfer which shall debit the charge against the fund
399 or account to which the same shall have been originally
400 credited. Such procedure for handling noncollectible items shall
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401 not be construed as paying funds out of the State Treasury
402 without an appropriation, but shall be considered as an
403 administrative procedure for the efficient handling of state
404 records and accounts.
405 Section 6. Paragraph (c) of subsection (1) of section
406 215.93, Florida Statutes, is amended to read:
407 215.93 Florida Financial Management Information System.—
408 (1) To provide the information necessary to carry out the
409 intent of the Legislature, there shall be a Florida Financial
410 Management Information System. The Florida Financial Management
411 Information System shall be fully implemented and shall be
412 upgraded as necessary to ensure the efficient operation of an
413 integrated financial management information system and to
414 provide necessary information for the effective operation of
415 state government. Upon the recommendation of the coordinat ing
416 council and approval of the board, the Florida Financial
417 Management Information System may require data from any state
418 agency information system or information subsystem or may
419 request data from any judicial branch information system or
420 information subsystem that the coordinating council and board
421 have determined to have statewide financial management
422 significance. Each functional owner information subsystem within
423 the Florida Financial Management Information System shall be
424 developed in such a fashion as to allow for timely, positive,
425 preplanned, and prescribed data transfers between the Florida
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426 Financial Management Information System functional owner
427 information subsystems and from other information systems. The
428 principal unit of the system shall be the functional owner
429 information subsystem, and the system shall include, but shall
430 not be limited to, the following:
431 (c) Financial Cash Management Subsystem.
432 Section 7. Subsection (3) of section 215.94, Florida
433 Statutes, is amended to read:
434 215.94 Designation, duties, and responsibilities of
435 functional owners.—
436 (3) The Chief Financial Officer shall be the functional
437 owner of the Financial Cash Management Subsystem. The Chief
438 Financial Officer shall design, implement, and operate the
439 subsystem in accordance with the provisions of ss. 215.90-
440 215.96. The subsystem shall include, but shall not be limited
441 to, functions for:
442 (a) Recording and reconciling credits and debits to
443 treasury fund accounts.
444 (b) Monitoring cash levels and activities in state b ank
445 accounts.
446 (c) Monitoring short-term investments of idle cash.
447 (d) Administering the provisions of the Federal Cash
448 Management Improvement Act of 1990.
449 Section 8. Subsection (3) of section 216.102, Florida
450 Statutes, is amended to read:
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451 216.102 Filing of financial information; handling by Chief
452 Financial Officer; penalty for noncompliance.—
453 (3) The Chief Financial Officer shall:
454 (a) Prepare and furnish to the Auditor General annual
455 financial statements for the state on or before December 31 of
456 each year, using generally accepted accounting principles.
457 (b) Prepare and publish an annual a comprehensive annual
458 financial report for the state in accordance with generally
459 accepted accounting principles on or before February 28 of each
460 year.
461 (c) Furnish the Governor, the President of the Senate, and
462 the Speaker of the House of Representatives with a copy of the
463 annual comprehensive annual financial report prepared pursuant
464 to paragraph (b).
465 (d) Notify each agency and the judicial branch of the data
466 that is required to be recorded to enhance accountability for
467 tracking federal financial assistance.
468 (e) Provide reports, as requested, to executive or
469 judicial branch entities, the President of the Senate, the
470 Speaker of the House of Representatives, and the members of the
471 Florida Congressional Delegation, detailing the federal
472 financial assistance received and disbursed by state agencies
473 and the judicial branch.
474 (f) Consult with and elicit comments from the Executive
475 Office of the Governor on changes to the Florida Accounting
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476 Information Resource Subsystem which clearly affect the
477 accounting of federal funds, so as to ensure consistency of
478 information entered into the Federal Aid Tracking System by
479 state executive and judicial branch entities. While efforts
480 shall be made to ensure the compatibility of the Florida
481 Accounting Information Resource Subsystem and the Federal Aid
482 Tracking System, any successive systems serving identical or
483 similar functions shall preserve such compatibility.
484
485 The Chief Financial Officer may furnish and publish in
486 electronic form the financial statements and the annual
487 comprehensive annual financial report required under paragraphs
488 (a), (b), and (c).
489 Section 9. Paragraph (h) of subsection (1) of section
490 218.32, Florida Statutes, is amended, and paragraph (i) is added
491 to subsection (1) of that section, to read:
492 218.32 Annual financial reports; local governmental
493 entities.—
494 (1)
495 (h) It is the intent of the Legislature to create The
496 Florida Open Financial Statement System must serve as, an
497 interactive repository for governmental financial statements.
498 This system serves as the primary reporting location for
499 government financial information. A local government shall use
500 the system to file with the department copies of all audit
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501 reports compiled pursuant to ss. 11.45 and 218.39. The system
502 must be accessible to the public and must be open to inspection
503 at all times by the Legislature, the Auditor General, and the
504 Chief Inspector General.
505 1. The Chief Financial Officer may consult with
506 stakeholders with regard to, including the department, the
507 Auditor General, a representative of a municipality or county, a
508 representative of a special district, a municipal bond investor,
509 and an information technology professional employed in the
510 private sector, for input on the design and implementation of
511 the Florida Open Financial Statement System.
512 2. The Chief Financial Officer may choose contractors to
513 build one or more eXtensible Business Reporting Language (XBRL)
514 taxonomies suitable for state, county, municipal, and special
515 district financial filings and to create a software tool that
516 enables financial statement filers to easily create XBRL
517 documents consistent with such taxonomies. The Chief Financial
518 Officer must recruit and select contractors through an open
519 request for proposals process pursuant to chapter 287.
520 3. The Chief Financial Officer must require that all work
521 products be completed no later than December 31, 2021.
522 4. If the Chief Financial Officer deems the work products
523 adequate, all local governmental financial statements for fiscal
524 years ending on or after September 1, 2022, may must be filed in
525 XBRL format prescribed by the Chief Financial Officer and must
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526 meet the validation requirements of the relevant taxonomy.
527 5. A local government that begins filing in XBRL format
528 may not be required to make filings in Portable Document Format.
529 (i) Each local governmental entity that enters all
530 required information in the Florida Open Financial Statement
531 System is deemed to be compliant with this section, except as
532 otherwise provided in this section.
533 Section 10. Section 414.40, Florida Statutes, is amended
534 to read:
535 414.40 Stop Inmate Fraud Program established; guidelines. —
536 (1) There is created within the Department of Economic
537 Opportunity Financial Services a Stop Inmate Fraud Program.
538 (2) The Department of Economic Opportunity Financial
539 Services is directed to implement the Stop Inmate Fraud Program
540 in accordance with the following guidelines:
541 (a) The program shall establish procedures for sharing
542 public records not exempt from the public records law among
543 social services agencies regarding the identities of persons
544 incarcerated in state correctional institutions, as defined in
545 s. 944.02, and or in county, municipal, or regional jails or
546 other detention facilities of local governments under chapter
547 950 and or chapter 951 who are wrongfully receiving public
548 assistance benefits or entitlement benefits.
549 (b) Pursuant to these procedures, the program shall have
550 access to records containing correctional information not exempt
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551 from the public records law on incarcerated persons which have
552 been generated as criminal justice information. As used in this
553 paragraph, the terms "record" and "criminal justice information"
554 have the same meanings as provided in s. 943.045.
555 (c) Database searches shall be conducted of the inmate
556 population at each correctional institution or other detention
557 facility. A correctional institution or a detention facility
558 shall provide the Stop Inmate Fraud Program with the information
559 necessary to identify persons wrongfully receiving benefits in
560 the medium requested by the Stop Inmate Fraud Program if the
561 correctional institution or detention facility maintains t he
562 information in that medium.
563 (d) Data obtained from correctional institutions or other
564 detention facilities shall be compared with the client files of
565 the Department of Children and Families, the Department of
566 Economic Opportunity, and other state or local agencies as
567 needed to identify persons wrongfully obtaining benefits. Data
568 comparisons shall be accomplished during periods of low
569 information demand by agency personnel to minimize inconvenience
570 to the agency.
571 (e) Results of data comparisons shall be furnished to the
572 appropriate office for use in the county in which the data
573 originated. The program may provide reports of the data it
574 obtains to appropriate state, federal, and local government
575 agencies or governmental entities, including, but not limi ted
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576 to:
577 1. The Child Support Enforcement Program of the Department
578 of Revenue, so that the data may be used as locator information
579 on persons being sought for purposes of child support.
580 2. The Social Security Administration, so that the data
581 may be used to reduce federal entitlement fraud within the
582 state.
583 3. The Division of Public Assistance Fraud of the
584 Department of Financial Services, so that an investigation of
585 the fraudulent receipt of public assistance may be facilitated.
586 (f) Reports by the program to another agency or entity
587 shall be generated bimonthly, or as otherwise directed, and
588 shall be designed to accommodate that agency's or entity's
589 particular needs for data.
590 (g) Only those persons with active cases, or with cases
591 that were active during the incarceration period, shall be
592 reported, in order that the funding agency or entity, upon
593 verification of the data, may take whatever action is deemed
594 appropriate.
595 (h) For purposes of program review and analysis, each
596 agency or entity receiving data from the program shall submit
597 reports to the program which indicate the results of how the
598 data was used.
599 Section 11. Paragraph (a) of subsection (16) of section
600 440.02, Florida Statutes, is amended to read:
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601 440.02 Definitions.—When used in this chapter, unless the
602 context clearly requires otherwise, the following terms shall
603 have the following meanings:
604 (16)(a) "Employer" means the state and all political
605 subdivisions thereof, all public and quasi-public corporations
606 therein, every person carrying on any employment, and the legal
607 representative of a deceased person or the receiver or trustees
608 of any person. The term "Employer" also includes employment
609 agencies and, employee leasing companies that, and similar
610 agents who provide employees to other business entities or
611 persons. If the employer is a corporation, parties in actual
612 control of the corporation, including, but not limited to, the
613 president, officers who exercise broad corporate powers,
614 directors, and all shareholders who directly or indirectly own a
615 controlling interest in the corporation, are considered the
616 employer for the purposes of ss. 440.105, 440.106, and 440.107.
617 Section 12. Effective January 1, 2023, subsections (11)
618 through (15) of section 440.05, Florida Statutes, are re numbered
619 as subsections (10) through (14), respectively, subsections (3)
620 and (4) and present subsections (10) and (12) of that section
621 are amended, to read:
622 440.05 Election of exemption; revocation of election;
623 notice; certification.—
624 (3) The notice of election to be exempt must be
625 electronically submitted to the department by the officer of a
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626 corporation who is allowed to claim an exemption as provided by
627 this chapter and must list the name, date of birth, valid driver
628 license number or Florida identification card number, and all
629 certified or registered licenses issued pursuant to chapter 489
630 held by the person seeking the exemption, the registration
631 number of the corporation filed with the Division of
632 Corporations of the Department of State, and the pe rcentage of
633 ownership evidencing the required ownership under this chapter.
634 The notice of election to be exempt must identify each
635 corporation that employs the person electing the exemption and
636 must list the social security number or federal tax
637 identification number of each such employer and the additional
638 documentation required by this section. In addition, the notice
639 of election to be exempt must provide that the officer electing
640 an exemption is not entitled to benefits under this chapter,
641 must provide that the election does not exceed exemption limits
642 for officers provided in s. 440.02, and must certify that any
643 employees of the corporation whose officer elects an exemption
644 are covered by workers' compensation insurance, and must certify
645 that the officer electing an exemption has completed an online
646 workers' compensation coverage and compliance tutorial developed
647 by the department. Upon receipt of the notice of the election to
648 be exempt, receipt of all application fees, and a determination
649 by the department that the notice meets the requirements of this
650 subsection, the department shall issue a certification of the
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651 election to the officer, unless the department determines that
652 the information contained in the notice is invalid. The
653 department shall revoke a certificate of election to be exempt
654 from coverage upon a determination by the department that the
655 person does not meet the requirements for exemption or that the
656 information contained in the notice of election to be exempt is
657 invalid. The certificate of election must list the name of the
658 corporation listed in the request for exemption. A new
659 certificate of election must be obtained each time the person is
660 employed by a new or different corporation that is not listed on
661 the certificate of election. Upon written request from a
662 workers' compensation carrier, the department shall send
663 thereafter an electronic notification to the carrier identifying
664 each of its policyholders for which a notice of election to be
665 exempt has been issued or for which a notice of revocation to be
666 exempt has been received A notice of the certificate of election
667 must be sent to each workers' compensation carrier identified in
668 the request for exemption. Upon filing a notice of revocation of
669 election, an officer who is a subcontractor or an officer of a
670 corporate subcontractor must notify her or his contractor. Upon
671 revocation of a certificate of election of exemption by the
672 department, the department shall notify the workers'
673 compensation carriers identified in the request for exemption.
674 (4) The notice of election to be exempt from the
675 provisions of this chapter must contain a notice that clearly
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676 states in substance the following: "Any person who, knowingly
677 and with intent to injure, defraud, or deceive the department or
678 any employer or employee, insurance company, or any other
679 person, files a notice of election to be exempt containing any
680 false or misleading information is guilty of a felony of the
681 third degree." Each person filing a notice of election to be
682 exempt shall personally sign the notice and attest that he or
683 she has reviewed, understands, and acknowledges the foregoing
684 notice. The certificate of election to be exempt must contain
685 the following notice: "This certificate of election to be exempt
686 is NOT a license issued by the Department of Business and
687 Professional Regulation (DBPR). To determine if the
688 certificateholder is required to have a license to perform work
689 or to verify the license of the certificateholder, go to (insert
690 DBPR's website address for where to find this information)."
691 (10) Each officer of a corporation who is actively engaged
692 in the construction industry and who elects an exemption from
693 this chapter shall maintain business records as specified by the
694 department by rule.
695 (11)(12) Certificates of election to be exempt issued
696 under subsection (3) shall apply only to the corporate officer
697 named on the notice of election to be exempt and apply only
698 within the scope of the business or trade listed on the notice
699 of election to be exempt.
700 Section 13. Effective January 1, 2023, paragraphs (a) and
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701 (d) of subsection (7) of section 440.107, Florida Statutes, are
702 amended to read:
703 440.107 Department powers to enforce employer compliance
704 with coverage requirements.—
705 (7)(a) Whenever the department determines that an employer
706 who is required to secure the payment to his or her employees of
707 the compensation provided for by this chapter has failed to
708 secure the payment of workers' compensation required by this
709 chapter or to produce the required business records under
710 subsection (5) within 21 10 business days after receipt of the
711 written request of the department, such failure shall be deemed
712 an immediate serious danger to public health, safety, or welfare
713 sufficient to justify service by the department of a stop-work
714 order on the employer, requiring the cessation of all business
715 operations. If the department makes such a determination, the
716 department shall issue a stop-work order within 72 hours. The
717 order shall take effect when served upon the employer or, for a
718 particular employer worksite, when served at that worksite. In
719 addition to serving a stop-work order at a particular worksite
720 which shall be effective immediately, the department shall
721 immediately proceed with service upon the employer which shall
722 be effective upon all employer worksites in the state for wh ich
723 the employer is not in compliance. A stop-work order may be
724 served with regard to an employer's worksite by posting a copy
725 of the stop-work order in a conspicuous location at the
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726 worksite. Information related to an employer's stop -work order
727 shall be made available on the division's website, be updated
728 daily, and remain on the website for at least 5 years. The order
729 shall remain in effect until the department issues an order
730 releasing the stop-work order upon a finding that the employer
731 has come into compliance with the coverage requirements of this
732 chapter and has paid any penalty assessed under this section.
733 The department may issue an order of conditional release from a
734 stop-work order to an employer upon a finding that the employer
735 has complied with the coverage requirements of this chapter,
736 paid a penalty of $1,000 as a down payment, and agreed to remit
737 periodic payments of the remaining penalty amount pursuant to a
738 payment agreement schedule with the department or pay the
739 remaining penalty amount in full. An employer may not enter into
740 a payment agreement schedule unless the employer has fully paid
741 any previous penalty assessed under this section. If an order of
742 conditional release is issued, failure by the employer to pay
743 the penalty in full or enter into a payment agreement with the
744 department within 21 28 days after service of the first penalty
745 assessment calculation stop-work order upon the employer, or to
746 meet any term or condition of such penalty payment agreement,
747 shall result in the immediate reinstatement of the stop-work
748 order and the entire unpaid balance of the penalty shall become
749 immediately due.
750 (d)1. In addition to any penalty, stop-work order, or
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751 injunction, the department shall assess against an any employer
752 who has failed to secure the payment of compensation as required
753 by this chapter a penalty equal to 2 times the amount the
754 employer would have paid in premium when applying approved
755 manual rates to the employer's payroll during periods for which
756 it failed to secure the payment of workers' compensation
757 required by this chapter within the preceding 12-month 2-year
758 period or $1,000, whichever is greater. However, for an employer
759 who is issued a stop-work order for materially understating or
760 concealing payroll or has been previously issued a stop-work
761 order or order of penalty assessment, the preceding 24-month
762 period shall be used to calculate the penalty as specified in
763 this subparagraph.
764 a. For an employer employers who has have not been
765 previously issued a stop-work order or order of penalty
766 assessment, the department must allow the employer to receive a
767 credit for the initial payment of the estimated annual workers'
768 compensation policy premium, as determined by the carrier, to be
769 applied to the penalty. Before applying the credit to the
770 penalty, the employer must provide the department with
771 documentation reflecting that the employer has secured the
772 payment of compensation pursuant to s. 440.38 and proof of
773 payment to the carrier. In order for the department to apply a
774 credit for an employer that has secured workers' compensation
775 for leased employees by entering into an employee leasing
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776 contract with a licensed employee leasing company, the employer
777 must provide the department with a written confirmation, by a
778 representative from the employee leasing company, of the dollar
779 or percentage amount attributable to the initial estimated
780 workers' compensation expense for leased employees, and proof of
781 payment to the employee leasing company. The credit may not be
782 applied unless the employer provides the documentation and proof
783 of payment to the department within 21 28 days after the
784 employer's receipt of the written request to produce business
785 records for calculating the penalty under this subparagraph
786 service of the stop-work order or first order of penalty
787 assessment upon the employer.
788 b. For an employer employers who has have not been
789 previously issued a stop-work order or order of penalty
790 assessment, the department must reduce the final assessed
791 penalty by 25 percent if the employer has complied with
792 administrative rules adopted pursuant to subsection (5) and has
793 provided such business records to the department within 21 10
794 business days after the employer's receipt of the written
795 request to produce business records for calculating the penalty
796 under this subparagraph.
797 c. For an employer who has not been previously issued a
798 stop-work order or order of penalty assessment, the department
799 must reduce the final assessed penalty by 15 percent if the
800 employer correctly answers at least 80 percent of the questions
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801 from an online workers' compensation coverage and compliance
802 tutorial, developed by the department, within 21 days after the
803 employer's receipt of the written request to produce business
804 records for calculating the penalty under this subparagraph. The
805 online tutorial must be taken in a department office location
806 identified by rule.
807
808 c. The $1,000 penalty shall be assessed against the employer
809 even if the calculated penalty after the credit provided in sub-
810 subparagraph a., the and 25 percent reduction provided in sub-
811 subparagraph b., and the 15 percent reduction provided in sub -
812 subparagraph c., as applicable, have been applied is less than
813 $1,000.
814 2. Any subsequent violation within 5 years after the most
815 recent violation shall, in addition to the penalties set forth
816 in this subsection, be deemed a knowing act within the meaning
817 of s. 440.105.
818 Section 14. Subsection (12) of section 440.13, Florida
819 Statutes, is amended to read:
820 440.13 Medical services and supplies; penalty for
821 violations; limitations.—
822 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
823 REIMBURSEMENT ALLOWANCES.—
824 (a) A three-member panel is created, consisting of the
825 Chief Financial Officer, or the Chief Financial Officer's
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826 designee, and two members to be appointed by the Governor,
827 subject to confirmation by the Senate, one member who, on
828 account of present or previous vocation, employment, or
829 affiliation, shall be classified as a representative of
830 employers, the other member who, on account of previous
831 vocation, employment, or affiliation, shall be classified as a
832 representative of employees. The panel shall determine statewide
833 schedules of maximum reimbursement allowances for medically
834 necessary treatment, care, and attendance provided by
835 physicians, hospitals, ambulatory surgical centers, work-
836 hardening programs, pain programs, and durable medical
837 equipment. The maximum reimbursement allowances for inpatient
838 hospital care shall be based on a schedule of per diem rates, to
839 be approved by the three-member panel no later than March 1,
840 1994, to be used in conjunction with a precertification manual
841 as determined by the department, including maximum hours in
842 which an outpatient may remain in observation status, which
843 shall not exceed 23 hours. All compensable charges for hospital
844 outpatient care shall be reimbursed at 75 percent of usual and
845 customary charges, except as otherwise provided by this
846 subsection. Annually, the three-member panel shall adopt
847 schedules of maximum reimbursement allowances for physicians,
848 hospital inpatient care, hospital outpatient care, ambulatory
849 surgical centers, work-hardening programs, and pain programs. An
850 individual physician, hospital, ambulatory surgical center, pain
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851 program, or work-hardening program shall be reimbursed:
852 1. either The agreed-upon contract price; or
853 2. If there is no agreed-upon contract price, the lesser
854 of the provider's billed charge or the maximum reimbursement
855 allowance in the appropriate schedule.
856 (b) It is the intent of the Legislature to increase the
857 schedule of maximum reimbursement allowances for selected
858 physicians effective January 1, 2004, and to pay for the
859 increases through reductions in payments to hospitals. Revisions
860 developed pursuant to this subsection are limited to the
861 following:
862 1. Payments for outpatient physical, occupational, and
863 speech therapy provided by hospitals shall be reduced to the
864 schedule of maximum reimbursement allowances for these services
865 which applies to nonhospital providers.
866 2. Payments for scheduled outpatient nonemergency
867 radiological and clinical laboratory services that are not
868 provided in conjunction with a surgical procedure shall be
869 reduced to the schedule of maximum reimbursement allowances for
870 these services which applies to nonhospital providers.
871 3. Outpatient reimbursement for scheduled surgeries shall
872 be reduced from 75 percent of charges to 60 percent of charges.
873 4. Maximum reimbursement for a physician licensed under
874 chapter 458 or chapter 459 shall be increased to 110 percent of
875 the reimbursement allowed by Medicare, using appropriate codes
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876 and modifiers or the medical reimbursement level adopted by the
877 three-member panel as of January 1, 2003, whichever is greater.
878 5. Maximum reimbursement for surgical procedures shall be
879 increased to 140 percent of the reimbursement allowed by
880 Medicare or the medical reimbursement level adopted by the
881 three-member panel as of January 1, 2003, whichever is greater.
882 (c) As to reimbursement for a prescription medication, the
883 reimbursement amount for a prescription shall be the average
884 wholesale price plus $4.18 for the dispensing fee. For
885 repackaged or relabeled prescription medications dispensed by a
886 dispensing practitioner as provided in s. 465.0276, the fee
887 schedule for reimbursement shall be 112.5 percent of th e average
888 wholesale price, plus $8.00 for the dispensing fee. For purposes
889 of this subsection, the average wholesale price shall be
890 calculated by multiplying the number of units dispensed times
891 the per-unit average wholesale price set by the original
892 manufacturer of the underlying drug dispensed by the
893 practitioner, based upon the published manufacturer's average
894 wholesale price published in the Medi-Span Master Drug Database
895 as of the date of dispensing. All pharmaceutical claims
896 submitted for repackaged or relabeled prescription medications
897 must include the National Drug Code of the original
898 manufacturer. Fees for pharmaceuticals and pharmaceutical
899 services shall be reimbursable at the applicable fee schedule
900 amount except where the employer or carrier, or a service
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901 company, third party administrator, or any entity acting on
902 behalf of the employer or carrier directly contracts with the
903 provider seeking reimbursement for a lower amount.
904 (d) Reimbursement for all fees and other charges for such
905 treatment, care, and attendance, including treatment, care, and
906 attendance provided by any hospital or other health care
907 provider, ambulatory surgical center, work-hardening program, or
908 pain program, must not exceed the amounts provided by the
909 uniform schedule of maximum reimbursement allowances as
910 determined by the panel or as otherwise provided in this
911 section. This subsection also applies to independent medical
912 examinations performed by health care providers under this
913 chapter. In determining the uniform schedule, the panel shall
914 first approve the data which it finds representative of
915 prevailing charges in the state for similar treatment, care, and
916 attendance of injured persons. Each health care provider, health
917 care facility, ambulatory surgical center, work-hardening
918 program, or pain program receiving workers' compensation
919 payments shall maintain records verifying their usual charges.
920 In establishing the uniform schedule of maximum reimbursement
921 allowances, the panel must consider:
922 1. The levels of reimbursement for similar treatment,
923 care, and attendance made by other health care programs or
924 third-party providers;
925 2. The impact upon cost to employers for providing a level
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926 of reimbursement for treatment, care, and attendance which will
927 ensure the availability of treatment, care, and attendance
928 required by injured workers;
929 3. The financial impact of the reimbursement allowances
930 upon health care providers and health care facilities, including
931 trauma centers as defined in s. 395.4001, and its effect upon
932 their ability to make available to injured workers such
933 medically necessary remedial treatment, care, and attendance.
934 The uniform schedule of maximum reimbursement allowances must be
935 reasonable, must promote health care cost containment and
936 efficiency with respect to the workers' compensation health care
937 delivery system, and must be sufficient to ensure availability
938 of such medically necessary remedial treatment, care, and
939 attendance to injured workers; and
940 4. The most recent average maximum allowable rate of
941 increase for hospitals determined by the Health Care Board under
942 chapter 408.
943 (e) In addition to establishing the uniform schedule of
944 maximum reimbursement allowances, the panel shall:
945 1. Take testimony, receive records, and collect data to
946 evaluate the adequacy of the workers' compensation fee schedule,
947 nationally recognized fee schedules and alternative methods of
948 reimbursement to health care providers and health care
949 facilities for inpatient and outpatient treatment and care.
950 2. Survey health care providers and health care facilities
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951 to determine the availability and accessibility of workers'
952 compensation health care delivery systems for injured workers.
953 3. Survey carriers to determine the estimated impact on
954 carrier costs and workers' compensation premium rates by
955 implementing changes to the carrier reimbursement schedule or
956 implementing alternative reimbursement methods.
957 4. Submit recommendations on or before January 15, 2017,
958 and biennially thereafter, to the President of the Senate and
959 the Speaker of the House of Representatives on methods to
960 improve the workers' compensation health care delivery system.
961
962 The department, as requested, shall provide data to the panel,
963 including, but not limited to, utilization trends in the
964 workers' compensation health care delivery system. The
965 department shall provide the panel with an annual report
966 regarding the resolution of medical reimbursement disputes and
967 any actions pursuant to subsection (8). The department shall
968 provide administrative support and service to the panel to the
969 extent requested by the panel and may adopt rules necessary to
970 administer this subsection. For prescription medication
971 purchased under the requirements of this subsection, a
972 dispensing practitioner shall not possess such medication un less
973 payment has been made by the practitioner, the practitioner's
974 professional practice, or the practitioner's practice management
975 company or employer to the supplying manufacturer, wholesaler,
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976 distributor, or drug repackager within 60 days of the dispens ing
977 practitioner taking possession of that medication.
978 Section 15. Subsection (3) of section 440.185, Florida
979 Statutes, is amended to read:
980 440.185 Notice of injury or death; reports; penalties for
981 violations.—
982 (3) Within 3 business days after the employer or the
983 employee informs the carrier of an injury, the carrier shall
984 send by regular mail or e-mail to the injured worker an
985 informational brochure approved by the department which sets
986 forth in clear and understandable language an explanation of the
987 rights, benefits, procedures for obtaining benefits and
988 assistance, criminal penalties, and obligations of injured
989 workers and their employers under the Florida Workers'
990 Compensation Law. Annually, the carrier or its third-party
991 administrator shall send by regular mail or e-mail to the
992 employer an informational brochure approved by the department
993 which sets forth in clear and understandable language an
994 explanation of the rights, benefits, procedures for obtaining
995 benefits and assistance, criminal penalties, and obligations of
996 injured workers and their employers under the Florida Workers'
997 Compensation Law. All such informational brochures shall contain
998 a notice that clearly states in substance the following: "Any
999 person who, knowingly and with intent to injure, defraud, or
1000 deceive any employer or employee, insurance company, or self -
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1001 insured program, files a statement of claim containing any false
1002 or misleading information commits a felony of the third degree."
1003 Section 16. Subsection (3) of section 440.381, Florida
1004 Statutes, is amended to read:
1005 440.381 Application for coverage; reporting payroll;
1006 payroll audit procedures; penalties.—
1007 (3) The Financial Services Commission, in consultation
1008 with the department, shall establish by rule minimum
1009 requirements for audits of payroll and classifications in order
1010 to ensure that the appropriate premium is charged for workers'
1011 compensation coverage. The rules must shall ensure that audits
1012 performed by both carriers and employers are adequate to provide
1013 that all sources of payments to employees, subcontractors, and
1014 independent contractors are have been reviewed and that the
1015 accuracy of classification of employees is has been verified.
1016 The rules must require shall provide that employers in all
1017 classes other than the construction class be audited at least
1018 not less frequently than biennially and may provide for more
1019 frequent audits of employers in specified classifications based
1020 on factors such as amount of premium, type of business, loss
1021 ratios, or other relevant factors. In no event shall Employers
1022 in the construction class, generating more than the amount of
1023 premium required to be experience rated must, be audited at
1024 least less than annually. The annual audits required for
1025 construction classes must shall consist of physical onsite
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1026 audits for new and renewal policies only if the estimated annual
1027 premium is $10,000 or more. Payroll verification audit rules
1028 must include, but need not be limited to, the use of state and
1029 federal reports of employee income, payroll and other accounting
1030 records, certificates of insurance maintained by subcontractors,
1031 and duties of employees. At the completion of an audit, the
1032 employer or officer of the corporation and the auditor must
1033 print and sign their names on the audit document and attach
1034 proof of identification to the audit document.
1035 Section 17. Subsection (2) of section 497.277, Florida
1036 Statutes, is amended to read:
1037 497.277 Other charges.—Other than the fees for the sale of
1038 burial rights, burial merchandise, and burial services, no other
1039 fee may be directly or indirectly charged, contracted for, or
1040 received by a cemetery company as a condition for a customer to
1041 use any burial right, burial merchandise, or burial service,
1042 except for:
1043 (2) Charges paid for transferring burial rights f rom one
1044 purchaser to another; however, no such fee may exceed $50.
1045 Section 18. Paragraph (b) of subsection (1) of section
1046 497.369, Florida Statutes, is amended to read:
1047 497.369 Embalmers; licensure as an embalmer by
1048 endorsement; licensure of a temporary embalmer.—
1049 (1) The licensing authority shall issue a license by
1050 endorsement to practice embalming to an applicant who has
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1051 remitted an examination fee set by rule of the licensing
1052 authority not to exceed $200 and who the licensing authority
1053 certifies:
1054 (b)1. Holds a valid license in good standing to practice
1055 embalming in another state of the United States and has engaged
1056 in the full-time, licensed practice of embalming in that state
1057 for at least 5 years, provided that, when the applicant secured
1058 her or his original license, the requirements for licensure were
1059 substantially equivalent to or more stringent than those
1060 existing in this state; or
1061 2. Meets the qualifications for licensure in s. 497.368,
1062 except that the internship requirement shall be deeme d to have
1063 been satisfied by 1 year's practice as a licensed embalmer in
1064 another state, and has, within 10 years before prior to the date
1065 of application, successfully completed a state, regional, or
1066 national examination in mortuary science, which, as determ ined
1067 by rule of the licensing authority, is substantially equivalent
1068 to or more stringent than the examination given by the licensing
1069 authority.
1070 Section 19. Paragraphs (b) and (f) of subsection (1) of
1071 section 497.372, Florida Statutes, are amended to r ead:
1072 497.372 Funeral directing; conduct constituting practice
1073 of funeral directing.—
1074 (1) The practice of funeral directing shall be construed
1075 to consist of the following functions, which may be performed
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1076 only by a licensed funeral director:
1077 (b) Planning or arranging, on an at-need basis, the
1078 details of funeral services, embalming, cremation, or other
1079 services relating to the final disposition of human remains, and
1080 including the removal of such remains from the state; setting
1081 the time of the services; establishing the type of services to
1082 be rendered; acquiring the services of the clergy; and obtaining
1083 vital information for the filing of death certificates and
1084 obtaining of burial transit permits.
1085 (f) Directing, being in charge or apparent charge of, or
1086 supervising, directly or indirectly, any memorial service held
1087 prior to or within 72 hours of the burial or cremation, if such
1088 memorial service is sold or arranged by a licensee.
1089 Section 20. Paragraph (b) of subsection (1) of section
1090 497.374, Florida Statutes, is amended to read:
1091 497.374 Funeral directing; licensure as a funeral director
1092 by endorsement; licensure of a temporary funeral director. —
1093 (1) The licensing authority shall issue a license by
1094 endorsement to practice funeral directing to an applicant who
1095 has remitted a fee set by rule of the licensing authority not to
1096 exceed $200 and who:
1097 (b)1. Holds a valid license in good standing to practice
1098 funeral directing in another state of the United States and has
1099 engaged in the full-time, licensed practice of funeral directing
1100 in that state for at least 5 years, provided that, when the
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1101 applicant secured her or his original license, the requirements
1102 for licensure were substantially equivalent to or more stringent
1103 than those existing in this state; or
1104 2. Meets the qualifications for licensure in s. 497.373 ,
1105 except that the applicant need not hold an associate degree or
1106 higher if the applicant holds a diploma or certificate from an
1107 accredited program of mortuary science, and has successfully
1108 completed a state, regional, or national examination in mortuary
1109 science or funeral service arts, which, as determined by rule of
1110 the licensing authority, is substantially equivalent to or more
1111 stringent than the examination given by the licensing authority.
1112 Section 21. Subsection (6) of section 554.108, Florida
1113 Statutes, is renumbered as subsection (7), subsection (1) is
1114 amended, and a new subsection (6) is added to that section, to
1115 read:
1116 554.108 Inspection.—
1117 (1) The inspection requirements of this chapter apply only
1118 to boilers located in public assembly locations. A potable hot
1119 water supply boiler with an a heat input of 200,000 British
1120 thermal units (Btu) per hour and above, up to an a heat input
1121 not exceeding 400,000 Btu per hour, is exempt from inspect ion;
1122 however, such an exempt boiler, if manufactured after July 1,
1123 2022, but must be stamped with the A.S.M.E. code symbol.
1124 Additionally, "HLW" and the boiler's A.S.M.E data report of a
1125 boiler with an input of 200,000 to 400,000 Btu per hour must be
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1126 filed as required under s. 554.103(2).
1127 (6) Each enclosed space or room containing a boiler
1128 regulated under this chapter which is fired by the direct
1129 application of energy from the combustion of fuels and which is
1130 located in any portion of a public lodging establishment under
1131 s. 509.242 shall be equipped with one or more carbon monoxide
1132 detector devices.
1133 Section 22. Paragraphs (a) and (e) of subsection (1) and
1134 paragraph (a) of subsection (2) of section 554.111, Florida
1135 Statutes, are amended to read:
1136 554.111 Fees.—
1137 (1) The department shall charge the following fees:
1138 (a) For an applicant for a certificate of competency, the
1139 initial application fee shall be $50, and the annual renewal fee
1140 shall be $30. The fee for examination shall be $50.
1141 (e) An application for a boiler permit must include the
1142 manufacturer's data report applicable certificate inspection fee
1143 provided in paragraph (b).
1144 (2) Not more than an amount equal to one certificate
1145 inspection fee may be charged or collected for any and all
1146 boiler inspections in any inspection period, except as otherwise
1147 provided in this chapter.
1148 (a) When it is necessary to make a special trip for
1149 testing and verification inspections to observe the application
1150 of a hydrostatic test, an additional fee equal to the fee for a
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1151 certificate inspection of the boiler must be charged.
1152 Section 23. Subsection (4) of section 554.114, Florida
1153 Statutes, is amended to read:
1154 554.114 Prohibitions; penalties.—
1155 (4) A boiler insurance company, authorized inspection
1156 agency, or other person in violation of this section for more
1157 than 30 days shall pay a fine of $10 per day for the subsequent
1158 first 10 days of noncompliance, $50 per day for the subsequent
1159 20 days of noncompliance, and $100 per day for each subsequent
1160 day over 20 days of noncompliance thereafter.
1161 Section 24. Subsection (3) of section 624.423, Florida
1162 Statutes, is amended to read:
1163 624.423 Serving process.—
1164 (3) Service of process is valid and binding upon the
1165 insurer on the date the process served upon the Chief Financial
1166 Officer is delivered to the insurer and sent or the insurer has
1167 been notified by the department that such information has been
1168 made available on the department's secure online portal in
1169 accordance with this section and s. 624.307(9) shall for all
1170 purposes constitute valid and binding service thereof upon the
1171 insurer.
1172 Section 25. Subsection (20) of section 626.015, Florida
1173 Statutes, is amended to read:
1174 626.015 Definitions.—As used in this part:
1175 (20) "Unaffiliated insurance agent" means a licensed
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1176 insurance agent, except a limited lines agent, who is self -
1177 appointed and who practices as an independent consultant in the
1178 business of analyzing or abstracting insurance policies,
1179 providing insurance advice or counseling, or making specific
1180 recommendations or comparisons of insurance products for a fee
1181 established in advance by written contract signed by the
1182 parties. An unaffiliated insurance agent may not be affiliated
1183 with an insurer, insurer-appointed insurance agent, or insurance
1184 agency contracted with or employing insurer-appointed insurance
1185 agents. A licensed adjuster who is also an unaffiliated
1186 insurance agent may obtain an adjuster appointment in order to
1187 adjust claims while holding an unaffiliated appointment on the
1188 agent license.
1189 Section 26. Subsection (4) of section 626.171, Florida
1190 Statutes, is amended to read:
1191 626.171 Application for license as an agent, customer
1192 representative, adjuster, service representative, or reinsurance
1193 intermediary.—
1194 (4) An applicant for a license under this chapter as an
1195 agent, customer representative, adjuster, service
1196 representative, or reinsurance intermediary must submit a set of
1197 the individual applicant's fingerprints, or, if the applicant is
1198 not an individual, a set of the fingerprints of the sole
1199 proprietor, majority owner, partners, officers, and directors,
1200 to the department and must pay the fingerprint processing fee
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1201 set forth in s. 624.501. Fingerprints must be processed in
1202 accordance with s. 624.34 and used to investigate the
1203 applicant's qualifications pursuant to s. 626.201. The
1204 fingerprints must be taken by a law enforcement agency,
1205 designated examination center, or other department-approved
1206 entity. The department shall require all designated examination
1207 centers to have fingerprinting equipment and to take
1208 fingerprints from any applicant or prospective applicant who
1209 pays the applicable fee. The department may not approve an
1210 application for licensure as an agent, customer service
1211 representative, adjuster, service representative, or reinsurance
1212 intermediary if fingerprints have not been submitted.
1213 Section 27. Subsection (2) of section 626.172, Florida
1214 Statutes, is amended to read:
1215 626.172 Application for insurance agency license. —
1216 (2) An application for an insurance agency license must be
1217 signed by an individual required to be listed in the application
1218 under paragraph (a). An insurance agency may permit a third
1219 party to complete, submit, and sign an application on the
1220 insurance agency's behalf; however, the insurance agency is
1221 responsible for ensuring that the information on the application
1222 is true and correct and is accountable for any misstatements or
1223 misrepresentations. The application for an insurance agency
1224 license must include:
1225 (f) The fingerprints, submitted in accordance with s.
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1226 626.171(4), of each of the following:
1227 1. A sole proprietor;
1228 2. Each individual required to be listed in the
1229 application under paragraph (a); and
1230 3. Each individual who directs or participates in the
1231 management or control of an incorporated agency whose shares are
1232 not traded on a securities exchange.
1233
1234 Fingerprints must be taken by a law enforcement agency or other
1235 entity approved by the department and must be accompanied by the
1236 fingerprint processing fee specified in s. 624.501. Fingerprints
1237 must be processed in accordance with s. 624.34. However,
1238 Fingerprints need not be filed for an individual who is
1239 currently licensed and appointed under this chapter. This
1240 paragraph does not apply to corporations whose voting shares are
1241 traded on a securities exchange.
1242 Section 28. Section 626.173, Florida Statutes, is created
1243 to read:
1244 626.173 Insurance agency closure; cancellation of
1245 licenses.—
1246 (1) If a licensed insurance agency permanently ceases the
1247 transacting of insurance or ceases the transacting of insuran ce
1248 for more than 31 days, the agent in charge, director of the
1249 agency, or other officer listed on the original application for
1250 licensure shall immediately cancel the insurance agency's
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1251 license by completing and submitting a form to notify the Bureau
1252 of Licensing of the Division of Insurance Agent and Agency
1253 Services within the department of the cancellation of the
1254 license.
1255 (2) Within 30 days after the agency ceases the transacting
1256 of insurance, the agent in charge, director of the agency, or
1257 other officer listed on the original application for licensure
1258 shall:
1259 (a) Notify all insurers by which the agency or agent in
1260 charge is appointed of the agency's cessation of operations, the
1261 date on which operations ceased, the identity of any agency or
1262 agent to which the agency's current book of business has been
1263 transferred, and the method by which agency records may be
1264 obtained during the time periods specified in ss. 626.561 and
1265 626.748.
1266 (b) Notify all policyholders currently insured by a policy
1267 written, produced, or serviced by the agency of the agency's
1268 cessation of operations; the date on which operations ceased;
1269 and the identity of the agency or agent to which the agency's
1270 current book of business has been transferred or, if no transfer
1271 has occurred, a statement directing the policyholder to contact
1272 the insurance company for assistance in locating a licensed
1273 agent to service the policy.
1274 (c) Notify all premium finance companies through which
1275 active policies are financed of the agency's cessation of
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1276 operations, the date on which operations ceased, and the
1277 identity of the agency or agent to which the agency's current
1278 book of business has been transferred.
1279 (d) Ensure that all funds held in a fiduciary capacity are
1280 properly distributed to the rightful owners.
1281 (3)(a) The department or office may, in a proceeding
1282 initiated pursuant to chapter 120, impose an administrative fine
1283 against the agent in charge or director or officer of the agency
1284 found in the proceeding to have violated any provision of this
1285 section. A proceeding may not be initiated and a fine may not
1286 accrue until after the person has been notified in writing of
1287 the nature of the violation, has been afforded 10 business days
1288 to correct the violation, and has failed to do so.
1289 (b) A fine imposed under this subsection may not exceed
1290 the amounts specified in s. 626.681 per violation.
1291 (c) The department or office may, in addition to the
1292 imposition of an administrative fine under this subsection, also
1293 suspend or revoke the license of the licensee fined under this
1294 subsection.
1295 (d) In imposing any administrative penalty or remedy
1296 provided under this subsection, the department or office shall
1297 take into account the appropriateness of the penalty with
1298 respect to the size of the financial resources and the good
1299 faith of the person charged, the gravity of the violation, the
1300 history of previous violations, and other matters as justice may
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1301 require.
1302 Section 29. Subsection (3) of section 626.201, Florida
1303 Statutes, is amended, and subsection (4) is added to that
1304 section, to read:
1305 626.201 Investigation.—
1306 (3) An inquiry or investigation of the applicant's
1307 qualifications, character, experience, background, and fitness
1308 must include submission of the applicant's fingerprints , in
1309 accordance with s. 626.171(4), to the Department of Law
1310 Enforcement and the Federal Bureau of Investigation and
1311 consideration of any state criminal records, federal criminal
1312 records, or local criminal records obtained from these agencies
1313 or from local law enforcement agencies.
1314 (4) The expiration, nonrenewal, or surrender of a license
1315 under this chapter does not eliminate jurisdiction of the
1316 licensing authority to investigate and prosecute for a violation
1317 committed by the licensee while licensed under this chapter. The
1318 prosecution of any matter may be initiated or continued
1319 notwithstanding the withdrawal of a complaint.
1320 Section 30. Section 626.202, Florida Statutes, is amended
1321 to read:
1322 626.202 Fingerprinting requirements.—
1323 (1) The requirements for completion and submission of
1324 fingerprints under this chapter in accordance with s. 626.171(4)
1325 are deemed to be met when an individual currently licensed under
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1326 this chapter seeks additional licensure and has previously
1327 submitted fingerprints to the department within the past 48
1328 months. However, the department may require the individual to
1329 file fingerprints if it has reason to believe that an applicant
1330 or licensee has been found guilty of, or pleaded guilty or nolo
1331 contendere to, a felony or a crime related to the business of
1332 insurance in this state or any other state or jurisdiction.
1333 (2) If there is a change in ownership or control of any
1334 entity licensed under this chapter, or if a new partner,
1335 officer, or director is employed or appointed, a set of
1336 fingerprints of the new owner, partner, officer, or director
1337 must be filed with the department or office within 30 days after
1338 the change. The acquisition of 10 percent or more of the voting
1339 securities of a licensed entity is considered a change of
1340 ownership or control. The fingerprints must be submitted in
1341 accordance with s. 626.171(4) taken by a law enforcement agency
1342 or other department-approved entity and be accompanied by the
1343 fingerprint processing fee in s. 624.501.
1344 Section 31. Paragraph (j) of subsection (2) of section
1345 626.221, Florida Statutes, is amended to read:
1346 626.221 Examination requirement; exemptions.—
1347 (2) However, an examination is not necessary for any of
1348 the following:
1349 (j) An applicant for license as an all-lines adjuster who
1350 has the designation of Accredited Claims Adjuster (ACA) from a
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1351 regionally accredited postsecondary institution in this state,
1352 Certified All Lines Adjuster (CALA) from Kaplan Financial
1353 Education, Associate in Claims (AIC) from the Insurance
1354 Institute of America, Professional Claims Adjuster (PCA) from
1355 the Professional Career Institute, Professional Property
1356 Insurance Adjuster (PPIA) from the HurriClaim Training Academy,
1357 Certified Adjuster (CA) from ALL LINES Training, Certified
1358 Claims Adjuster (CCA) from AE21 Incorporated, Claims Adjuster
1359 Certified Professional (CACP) from WebCE, Inc., Accredited
1360 Insurance Claims Specialist (AICS) from Encore Claim Services,
1361 or Universal Claims Certification (UCC) from Claims and
1362 Litigation Management Alliance (CLM) whose curriculum has been
1363 approved by the department and which includes comprehensive
1364 analysis of basic property and casualty lines of insurance and
1365 testing at least equal to that of standard department testing
1366 for the all-lines adjuster license. The department shall adopt
1367 rules establishing standards for the approval of curriculum.
1368 Section 32. Subsection (6) of section 626.311, Florida
1369 Statutes, is amended to read:
1370 626.311 Scope of license.—
1371 (6) An agent who appoints his or her license as an
1372 unaffiliated insurance agent may not hold an appointment from an
1373 insurer for any license he or she holds, with the exception of
1374 an adjuster license; transact, solicit, or service an insurance
1375 contract on behalf of an insurer; interfere with commissions
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1376 received or to be received by an insurer-appointed insurance
1377 agent or an insurance agency contracted with or employing
1378 insurer-appointed insurance agents; or receive compensation or
1379 any other thing of value from an insurer, an insurer-appointed
1380 insurance agent, or an insurance agency contracted with or
1381 employing insurer-appointed insurance agents for any transaction
1382 or referral occurring after the date of appointment as an
1383 unaffiliated insurance agent. An unaffiliated insurance agent
1384 may continue to receive commissions on sales that occurred
1385 before the date of appointment as an unaffiliated insurance
1386 agent if the receipt of such commissions is disclosed when
1387 making recommendations or evaluating products for a client t hat
1388 involve products of the entity from which the commissions are
1389 received. An adjuster who holds an adjuster license and who is
1390 also an unaffiliated insurance agent may obtain an adjuster
1391 appointment while maintaining his or her unaffiliated insurance
1392 agent appointment and may adjust claims and receive compensation
1393 in accordance with the authority granted by the adjuster license
1394 and appointment.
1395 Section 33. Paragraph (h) of subsection (1) of section
1396 626.321, Florida Statutes, is amended to read:
1397 626.321 Limited licenses and registration.—
1398 (1) The department shall issue to a qualified applicant a
1399 license as agent authorized to transact a limited class of
1400 business in any of the following categories of limited lines
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1401 insurance:
1402 (h) Portable electronics insurance.—License for property
1403 insurance or inland marine insurance that covers only loss,
1404 theft, mechanical failure, malfunction, or damage for portable
1405 electronics.
1406 1. The license may be issued only to:
1407 a. Employees or authorized representatives of a licensed
1408 general lines agent; or
1409 b. The lead business location of a retail vendor that
1410 sells portable electronics insurance. The lead business location
1411 must have a contractual relationship with a general lines agent.
1412 2. Employees or authorized representatives of a licensee
1413 under subparagraph 1. may sell or offer for sale portable
1414 electronics coverage without being subject to licensure as an
1415 insurance agent if:
1416 a. Such insurance is sold or offered for sale at a
1417 licensed location or at one of the licensee's branch locations
1418 if the branch location is appointed by the licensed lead
1419 business location or its appointing insurers;
1420 b. The insurer issuing the insurance directly supervises
1421 or appoints a general lines agent to supervise the sale of such
1422 insurance, including the development of a training program for
1423 the employees and authorized representatives of vendors that are
1424 directly engaged in the activity of selling or offering the
1425 insurance; and
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1426 c. At each location where the insurance is offered,
1427 brochures or other written materials that provide the
1428 information required by this subparagraph are made available to
1429 all prospective customers. The brochures or written materials
1430 may include information regarding portable electronics
1431 insurance, service warranty agreements, or other incidental
1432 services or benefits offered by a licensee.
1433 3. Individuals not licensed to sell portable electronics
1434 insurance may not be paid commissions based on the sale of such
1435 coverage. However, a licensee who uses a compensation plan for
1436 employees and authorized representatives which includes
1437 supplemental compensation for the sale of noninsurance products,
1438 in addition to a regular salary or hourly wages, may include
1439 incidental compensation for the sale of portable electronics
1440 insurance as a component of the overall compensation plan.
1441 4. Brochures or other written materials related to
1442 portable electronics insurance must:
1443 a. Disclose that such insurance may duplicate coverage
1444 already provided by a customer's homeowners insurance policy,
1445 renters insurance policy, or other source of coverage;
1446 b. State that enrollment in insurance coverage is not
1447 required in order to purchase or lease portable electronics or
1448 services;
1449 c. Summarize the material terms of the insurance coverage,
1450 including the identity of the insurer, the identity of the
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1451 supervising entity, the amount of any applicable deductible and
1452 how it is to be paid, the benefits of coverage, and key terms
1453 and conditions of coverage, such as whether portable electronics
1454 may be repaired or replaced with similar make and model
1455 reconditioned or nonoriginal manufacturer parts or equipment;
1456 d. Summarize the process for filing a claim, including a
1457 description of how to return portable electronics and the
1458 maximum fee applicable if the customer fails to comply with
1459 equipment return requirements; and
1460 e. State that an enrolled customer may cancel coverage at
1461 any time and that the person paying the premium will receive a
1462 refund of any unearned premium.
1463 5. A licensed and appointed general lines agent is not
1464 required to obtain a portable electronics insurance license to
1465 offer or sell portable electronics insurance at locations
1466 already licensed as an insurance agency, but may apply for a
1467 portable electronics insurance license for branch locations not
1468 otherwise licensed to sell insurance.
1469 6. A portable electronics license authorizes the sale of
1470 individual policies or certificates under a group or master
1471 insurance policy. The license also authorizes the sale of
1472 service warranty agreements covering only portable electronics
1473 to the same extent as if licensed under s. 634.419 or s.
1474 634.420.
1475 7. A licensee may bill and collect the premium for the
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1476 purchase of portable electronics insurance provided that:
1477 a. If the insurance is included with the purchase or lease
1478 of portable electronics or related services, the licensee
1479 clearly and conspicuously discloses that insurance coverage is
1480 included with the purchase. Disclosure of the stand -alone cost
1481 of the premium for same or similar insurance must be made on the
1482 customer's bill and in any marketing materials made available at
1483 the point of sale. If the insurance is not included, the charge
1484 to the customer for the insurance must be separately itemized on
1485 the customer's bill.
1486 b. Premiums are incidental to other fees collected, are
1487 maintained in a manner that is readily identifiable, and are
1488 accounted for and remitted to the insurer or supervising entity
1489 within 60 days of receipt. Licensees are not required to
1490 maintain such funds in a segregated account.
1491 c. All funds received by a licensee from an enrolled
1492 customer for the sale of the insurance are considered funds held
1493 in trust by the licensee in a fiduciary capacity for the benefit
1494 of the insurer. Licensees may receive compensation for billing
1495 and collection services.
1496 8. Notwithstanding any other provision of law, the terms
1497 for the termination or modification of coverage under a policy
1498 of portable electronics insurance are those set forth in the
1499 policy.
1500 9. Notice or correspondence required by the policy, or
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1501 otherwise required by law, may be provided by electronic means
1502 if the insurer or licensee maintains proof that the notice or
1503 correspondence was sent. Such notice or correspondence may be
1504 sent on behalf of the insurer or licensee by the general lines
1505 agent appointed by the insurer to supervise the administration
1506 of the program. For purposes of this subparagraph, an enrolled
1507 customer's provision of an electronic mail address to the
1508 insurer or licensee is deemed to be consent to receive notices
1509 and correspondence by electronic means if a conspicuously
1510 located disclosure is provided to the customer indicating the
1511 same.
1512 10. The provisions of this chapter requiring submission of
1513 fingerprints requirements in s. 626.171(4) do not apply to
1514 licenses issued to qualified entities under this paragraph.
1515 11. A branch location that sells portable electronics
1516 insurance may, in lieu of obtaining an appointment from an
1517 insurer or warranty association, obtain a single appointment
1518 from the associated lead business location licensee and pay the
1519 prescribed appointment fee under s. 624.501 if the lead business
1520 location has a single appointment from each insurer or warranty
1521 association represented and such appointment applies to the lead
1522 business location and all of its branch locations. Branch
1523 location appointments shall be renewed 24 months after the
1524 initial appointment date of the lead business location and every
1525 24 months thereafter. Notwithstanding s. 624.501, the renewal
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1526 fee applicable to such branch location appointments is $30 per
1527 appointment.
1528 12. For purposes of this paragraph:
1529 a. "Branch location" means any physical location in this
1530 state at which a licensee offers its products or services for
1531 sale.
1532 b. "Portable electronics" means personal, self-contained,
1533 easily carried by an individual, battery-operated electronic
1534 communication, viewing, listening, recording, gaming, computing
1535 or global positioning devices, including cell or satellite
1536 phones, pagers, personal global positioning satellite units,
1537 portable computers, portable audio listening, video viewing or
1538 recording devices, digital cameras, video camcorders, portable
1539 gaming systems, docking stations, automatic answering devices,
1540 and other similar devices and their accessories, and service
1541 related to the use of such devices.
1542 c. "Portable electronics transaction" means the sale or
1543 lease of portable electronics or a related service, including
1544 portable electronics insurance.
1545 Section 34. Subsection (5) of section 626.601, Florida
1546 Statutes, is amended to read:
1547 626.601 Improper conduct; inquiry; fingerprinting. —
1548 (5) If the department or office, after investigation, has
1549 reason to believe that an individual may have been found guilty
1550 of or pleaded guilty or nolo contendere to a felony or a crime
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1551 related to the business of insurance in this or any other state
1552 or jurisdiction, the department or office may require the
1553 individual to file with the department or office a complete set
1554 of his or her fingerprints, in accordance with s. 626.171(4),
1555 which shall be accompanied by the fingerprint processing fee set
1556 forth in s. 624.501. The fingerprints shall be taken by an
1557 authorized law enforcement agency or other department -approved
1558 entity.
1559 Section 35. Paragraph (d) of subsection (2) of section
1560 626.8411, Florida Statutes, is amended, and paragraph (f) is
1561 added to subsection (1) of that section, to read:
1562 626.8411 Application of Florida Insurance Code provisions
1563 to title insurance agents or agencies.—
1564 (1) The following provisions applicable to general lines
1565 agents or agencies also apply to title insurance agents or
1566 agencies:
1567 (f) Section 626.172(2)(f), relating to fingerprints.
1568 (2) The following provisions of part I do not apply to
1569 title insurance agents or title insurance agencies:
1570 (d) Section 626.172, except for paragraph (2)(f) of that
1571 section, relating to agent in full-time charge.
1572 Section 36. Paragraph (b) of subsection (1) of section
1573 626.8412, Florida Statutes, is amended to read:
1574 626.8412 License and appointments required.—
1575 (1) Except as otherwise provided in this part:
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1576 (b) A title insurance agent may not sell a title insurance
1577 policy issued by an insurer for which the agent and the agency
1578 do does not hold a current appointment.
1579 Section 37. Paragraph (a) of subsection (3) of section
1580 626.8417, Florida Statutes, is amended to read:
1581 626.8417 Title insurance agent licensure; exemptions.—
1582 (3) The department may not grant or issue a license as a
1583 title insurance agent to an individual who is found by the
1584 department to be untrustworthy or incompetent, who does not meet
1585 the qualifications for examination specified in s. 626.8414, or
1586 who does not meet the following qualifications:
1587 (a) Within the 4 years immediately preceding the date of
1588 the application for license, the applicant must have completed a
1589 40-hour classroom course in title insurance, 3 hours of which
1590 are on the subject matter of ethics, as approved by the
1591 department, or must have had at least 12 months of experience in
1592 responsible title insurance duties, under the supervision of a
1593 licensed title insurance agent, title insurer, or attorney while
1594 working in the title insurance business as a substantially full -
1595 time, bona fide employee of a title insurance agency, title
1596 insurance agent, title insurer, or attorney who conducts real
1597 estate closing transactions and issues title insurance policies
1598 but who is exempt from licensure under subsection (4). If an
1599 applicant's qualifications are based upon the periods of
1600 employment at responsible title insurance duties, the applicant
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1601 must submit, with the license application, an affidavit of the
1602 applicant and of the employer affirming the period of such
1603 employment, that the employment was substantially full time, and
1604 giving a brief abstract of the nature of the duties performed by
1605 the applicant.
1606 Section 38. Section 626.8421, Florida Statutes, is amended
1607 to read:
1608 626.8421 Number of appointments permitted or required. —A
1609 title agent and a title agency shall be required to have a
1610 separate appointment as to each insurer by which they are he or
1611 she is appointed as agents agent. As a part of each appointment
1612 there shall be a certified statement or affidavit of an
1613 appropriate officer or official of the appointing insurer
1614 stating that to the best of the insurer's knowledge and belief
1615 the applicant, or its principals in the case of a corporation or
1616 other legal entity, has met the requirements of s. 626.8417.
1617 Section 39. Subsections (1) and (2) of section 626.843,
1618 Florida Statutes, are amended to read:
1619 626.843 Renewal, continuation, reinstatement, termination
1620 of title insurance agent's and title insurance agency's
1621 appointments appointment.—
1622 (1) Appointments the appointment of a title insurance
1623 agent and a title insurance agency shall continue in force until
1624 suspended, revoked, or otherwise terminated, but subject to a
1625 renewed request filed by the insurer every 24 months after the
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1626 original issue dates date of the appointments appointment,
1627 accompanied by payments payment of the renewal appointment fees
1628 fee and taxes as prescribed in s. 624.501.
1629 (2) Title insurance agent and title insurance agency
1630 appointments shall be renewed pursuant to s. 626.381 for
1631 insurance representatives in general.
1632 Section 40. Subsection (1) of section 626.8433, Florida
1633 Statutes, is amended to read:
1634 626.8433 Filing of reasons for terminating appointment of
1635 title insurance agent and title insurance agency; confidential
1636 information.—
1637 (1) Any title insurer that is terminating the appointment
1638 of a title insurance agent or title insurance agency, whether
1639 such termination is by direct action of the appointing title
1640 insurer or by failure to renew or continue the appointment as
1641 provided, shall file with the department a statement of the
1642 reasons, if any, for, and the facts relative to, such
1643 termination.
1644 Section 41. Section 626.8447, Florida Statutes, is amended
1645 to read:
1646 626.8447 Effect of suspension or revocation upon other
1647 licensees, appointees.—In case of the suspension or revocation
1648 of the license and appointment of any title insurance agent or
1649 title insurance agency, the licenses and appointments of all
1650 other title insurance agents who knowingly were parties to the
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1651 act that which formed the ground for such suspension or
1652 revocation may likewise be suspended or revoked for t he same
1653 period as that of the offending title insurance agent or title
1654 insurance agency, but such suspension or revocation does shall
1655 not prevent any title insurance agent, except the one whose
1656 license and appointment was first suspended or revoked, from
1657 being issued an appointment for some other title insurer.
1658 Section 42. Paragraph (d) of subsection (10) of section
1659 626.854, Florida Statutes, is redesignated as paragraph (f), and
1660 a new paragraph (d) and paragraph (e) are added to subsection
1661 (10) of that section, to read:
1662 626.854 "Public adjuster" defined; prohibitions.—The
1663 Legislature finds that it is necessary for the protection of the
1664 public to regulate public insurance adjusters and to prevent the
1665 unauthorized practice of law.
1666 (10)
1667 (d) Public adjuster compensation may not be based on
1668 amounts attributable to additional living expenses, unless such
1669 compensation is affirmatively agreed to in a separate agreement
1670 that includes a disclosure in substantially the following form:
1671 "I agree to retain and compensate the public adjuster for
1672 adjusting my additional living expenses and securing payment
1673 from my insurer for amounts attributable to additional living
1674 expenses payable under the policy issued on my (home/mobile
1675 home/condominium unit)."
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1676 (e) Public adjuster compensation may not be increased
1677 based on a claim being resolved by litigation.
1678 Section 43. Section 626.8561, Florida Statutes, is amended
1679 to read:
1680 626.8561 "Public adjuster apprentice" defined.—The term
1681 "public adjuster apprentice" means a person licensed as an all-
1682 lines adjuster who:
1683 (1) Is appointed and employed or contracted by a public
1684 adjuster or a public adjusting firm;
1685 (2) Assists the public adjuster or public adjusting firm
1686 in ascertaining and determining the amount of any claim, loss,
1687 or damage payable under an insurance contract, or who undertakes
1688 to effect settlement of such claim, loss, or damage; and
1689 (3) Satisfies the requirements of s. 626.8651.
1690 Section 44. Paragraph (e) of subsection (1) and subsection
1691 (2) of section 626.865, Florida Statutes, are amended to read:
1692 626.865 Public adjuster's qualifications, bond.—
1693 (1) The department shall issue a license to an applicant
1694 for a public adjuster's license upon determining that the
1695 applicant has paid the applicable fees specified in s. 624.501
1696 and possesses the following qualifications:
1697 (e) Has been licensed and appointed in this state as a
1698 nonresident public adjuster on a continual basis for the
1699 previous 6 months, or has been licensed as an all-lines
1700 adjuster, and has been appointed on a continual basis for the
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1701 previous 6 months as a public adjuster apprentice under s.
1702 626.8561, as an independent adjuster under s. 626.855, or as a
1703 company employee adjuster under s. 626.856.
1704 (2) At the time of application for license as a public
1705 adjuster, the applicant shall file with the department a bond
1706 executed and issued by a surety insurer authorized to transact
1707 such business in this state, in the amount of $50,000,
1708 conditioned for the faithful performance of his or her duties as
1709 a public adjuster under the license for which the applicant has
1710 applied, and thereafter maintain the bond unimpaired throughout
1711 the existence of the license and for at least 1 year after
1712 termination of the license.
1713 (a) The bond must shall be in favor of the department and
1714 must shall specifically authorize recovery by the department of
1715 the damages sustained in case the licensee is guilty of fraud or
1716 unfair practices in connection with his or her business as
1717 public adjuster.
1718 (b) The bond must remain in effect for 1 year after the
1719 expiration or termination of the license.
1720 (c) The aggregate liability of the surety for all such
1721 damages may not shall in no event exceed the amount of the bond.
1722 The Such bond may shall not be terminated unless at least 30
1723 days' written notice is given to the licensee and filed with the
1724 department.
1725 Section 45. Paragraph (a) of subsection (1) and subsection
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1726 (3) of section 626.8651, Florida Statutes, are amended to read:
1727 626.8651 Public adjuster apprentice appointment;
1728 qualifications.—
1729 (1)(a) The department shall issue an appointment as a
1730 public adjuster apprentice to a licensee who:
1731 1. Is licensed as an all-lines adjuster under s. 626.866;
1732 2. Has filed with the department a bond executed and
1733 issued by a surety insurer that is authorized to transact such
1734 business in this state in the amount of $50,000, which is
1735 conditioned upon the faithful performance of his or her duties
1736 as a public adjuster apprentice; and
1737 3. Maintains such bond unimpaired throughout the existence
1738 of the appointment. The bond must remain in effect for 1 year
1739 after the expiration or termination of the license and for at
1740 least 1 year after termination of the appointment.
1741 (3) A public adjuster apprentice has the same authority as
1742 the licensed public adjuster or public adjusting firm that
1743 employs the apprentice except that an apprentice may not execute
1744 contracts for the services of a public adjuster or public
1745 adjusting firm. An individual may not be, act as, or hold
1746 himself or herself out to be a public adjuster apprentice unless
1747 the individual is licensed as an all-lines adjuster and holds a
1748 current appointment by a licensed public all-lines adjuster or a
1749 public adjusting firm that has designated with the department a
1750 primary employs a licensed public adjuster as required by s.
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1751 626.8695.
1752 Section 46. Section 626.8696, Florida Statutes, is amended
1753 to read:
1754 626.8696 Application for adjusting firm license.—
1755 (1) The application for an adjusting firm license must
1756 include:
1757 (a) The name of each majority owner, partner, officer, and
1758 director of the adjusting firm.
1759 (b) The resident address of each person required to be
1760 listed in the application under paragraph (a).
1761 (c) The name of the adjusting firm and its principal
1762 business address.
1763 (d) The location of each adjusting firm office and the
1764 name under which each office conducts or will conduct business.
1765 (e) The name and license number of the designated primary
1766 adjuster for each adjusting firm location as required in s.
1767 626.8695.
1768 (f) The fingerprints of each individual required to be
1769 listed in the application under paragraph (a), filed in
1770 accordance with s. 626.171(4). However, fingerprints need not be
1771 filed for an individual who is currently licensed and appointed
1772 under this chapter.
1773 (g)(e) Any additional information that the department
1774 requires.
1775 (2) An application for an adjusting firm license must be
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1776 signed by one of the individuals required to be listed in the
1777 application under paragraph (1)(a) each owner of the firm. If
1778 the firm is incorporated, the application must be signed by the
1779 president and secretary of the corporation.
1780 (3) Each application must be accompanied by payment of any
1781 applicable fee as prescribed in s. 624.501.
1782 (4) License fees are not refundable.
1783 (5) An adjusting firm required to be licensed pursuant to
1784 s. 626.8695 must remain so licensed for a period of 3 years from
1785 the date of licensure, unless the license is suspended or
1786 revoked. The department may suspend or revoke the adjusting
1787 firm's authority to do business for activities occurring during
1788 the time the firm is licensed, regardless of whether the
1789 licensing period has terminated.
1790 Section 47. Subsection (3) of section 626.8732, Florida
1791 Statutes, is amended to read:
1792 626.8732 Nonresident public adjuster's qualifications,
1793 bond.—
1794 (3) At the time of application for license as a
1795 nonresident public adjuster, the applicant shall file with the
1796 department a bond executed and issued by a surety insurer
1797 authorized to transact surety business in this state, in the
1798 amount of $50,000, conditioned for the faithful performance of
1799 his or her duties as a nonresident public adjuster under the
1800 license applied for. Thereafter, the applicant shall maintain
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1801 the bond unimpaired throughout the existence of the license and
1802 for 1 year after the expiration or termination of the license.
1803 (a) The bond must be in favor of the department and must
1804 specifically authorize recovery by the department of the damages
1805 sustained if the licensee commits fraud or unfair practices in
1806 connection with his or her business as nonresident public
1807 adjuster.
1808 (b) The aggregate liability of the surety for all the
1809 damages may not exceed the amount of the bond. The bond may not
1810 be terminated unless at least 30 days' written notice is given
1811 to the licensee and filed with the department.
1812 Section 48. Paragraph (a) of subsection (2) of section
1813 626.8734, Florida Statutes, is amended to read:
1814 626.8734 Nonresident all-lines adjuster license
1815 qualifications.—
1816 (2) The applicant must furnish the following with his or
1817 her application:
1818 (a) A complete set of his or her fingerprints in
1819 accordance with s. 626.171(4). The applicant's fingerprints must
1820 be certified by an authorized law enforcement officer.
1821 Section 49. Subsection (5) of section 626.9953, Florida
1822 Statutes, is amended to read:
1823 626.9953 Qualifications for registration; application
1824 required.—
1825 (5) An applicant must submit a set of his or her
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1826 fingerprints in accordance with s. 626.171(4) to the department
1827 and pay the processing fee established under s. 624.5 01(23). The
1828 department shall submit the applicant's fingerprints to the
1829 Department of Law Enforcement for processing state criminal
1830 history records checks and local criminal records checks through
1831 local law enforcement agencies and for forwarding to the Federal
1832 Bureau of Investigation for national criminal history records
1833 checks. The fingerprints shall be taken by a law enforcement
1834 agency, a designated examination center, or another department-
1835 approved entity. The department may not approve an application
1836 for registration as a navigator if fingerprints have not been
1837 submitted.
1838 Section 50. Paragraphs (e) and (f) are added to subsection
1839 (4) of section 633.135, Florida Statutes, to read:
1840 633.135 Firefighter Assistance Grant Program.—
1841 (4) Funds shall be used to:
1842 (e) Purchase other equipment and tools that improve
1843 firesafety and fire rescue capabilities for firefighters.
1844 (f) Purchase protective clothing and equipment compliant
1845 with NFPA 1977, "Standard on Protective Clothing and Equipment
1846 for Wildland Fire Fighting and Urban Interface Fire Fighting."
1847 Section 51. Subsections (6) through (9) of section
1848 633.216, Florida Statutes, are renumbered as subsections (5)
1849 through (8), respectively, and subsection (4) and present
1850 subsection (5) of that section are amended, to read:
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1851 633.216 Inspection of buildings and equipment; orders;
1852 firesafety inspection training requirements; certification;
1853 disciplinary action.—The State Fire Marshal and her or his
1854 agents or persons authorized to enforce laws and rules of the
1855 State Fire Marshal shall, at any reasonable hour, when the State
1856 Fire Marshal has reasonable cause to believe that a violation of
1857 this chapter or s. 509.215, or a rule adopted thereunder, or a
1858 minimum firesafety code adopted by the State Fire Marshal or a
1859 local authority, may exist, inspect any and all buildings and
1860 structures which are subject to the requirements of this chapter
1861 or s. 509.215 and rules adopted thereunder. The authority to
1862 inspect shall extend to all equipment, vehicles, and chemicals
1863 which are located on or within the premises of any such building
1864 or structure.
1865 (4) Every firesafety inspector certificate is valid for a
1866 period of 4 years from the date of issuance. Renewal of
1867 certification is subject to the affected person's completing
1868 proper application for renewal and meeting all of the
1869 requirements for renewal as established under this chapter or by
1870 rule adopted under this chapter, which must include completion
1871 of at least 54 hours during the preceding 4-year period of
1872 continuing education as required by the rule of the department
1873 or, in lieu thereof, successful passage of an examination as
1874 established by the department.
1875 (5) A previously certified firesafety inspector whose
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1876 certification has lapsed for 8 years or more must repeat the
1877 fire safety inspector training as specified by the division.
1878 Section 52. Paragraph (b) of subsection (4) and paragraphs
1879 (a) and (c) of subsection (6) of section 633.408, Florida
1880 Statutes, are amended to read:
1881 633.408 Firefighter and volunteer firefighter training and
1882 certification.—
1883 (4) The division shall issue a Firefighter Certificate of
1884 Compliance to an individual who does all of the following:
1885 (b) Passes the Minimum Standards Course certification
1886 examination within 12 months after completing the required
1887 courses.
1888 (6)(a) The division may issue a Special Certificate of
1889 Compliance to an individual who does all of the following:
1890 1. Satisfactorily completes the course established by rule
1891 by the division and successfully passes any examination
1892 corresponding to such course in paragraph (1)(b) to obtain a
1893 Special Certificate of Compliance.
1894 2. Passes the examination established in paragraph (1)(b)
1895 to obtain a Special Certificate of Compliance.
1896 2.3. Possesses the qualifications in s. 633.412.
1897 (c) In order to retain a Special Certificate of
1898 Compliance, every 4 years an individual must:
1899 1. Be active as a firefighter;
1900 2. Maintain a current and valid fire service instructor
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1901 certificate, instruct at least 40 hours during the 4-year
1902 period, and provide proof of such instruction to the division,
1903 which proof must be registered in an electronic database
1904 designated by the division; or
1905 3. Within 6 months before the 4-year period expires,
1906 successfully complete a Firefighter Retention Refresher Course
1907 consisting of a minimum of 40 hours of training as prescribed by
1908 rule.
1909 Section 53. Subsections (5), (6), and (7) of section
1910 633.414, Florida Statutes, are renumbered as subsections (4),
1911 (5), and (6) respectively, and subsection (1) and present
1912 subsection (4) of that section are amended, to read:
1913 633.414 Retention of firefighter and volunteer firefighter
1914 certifications.—
1915 (1) In order for a firefighter to retain her or his
1916 Firefighter Certificate of Compliance or Special Certificate of
1917 Compliance, every 4 years he or she must meet the requirements
1918 for renewal provided in this chapter and by rule, which must
1919 include at least one of the following:
1920 (a) Be active as a firefighter. As used in this section,
1921 the term "active" means being employed as a firefighter or
1922 providing service as a volunteer firefighter as evidenced by the
1923 individual's name appearing on a fire service provider's
1924 employment roster in the Florida State Fire College database or
1925 a letter by the fire service provider attesting to dates of
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1926 employment.
1927 (b) Maintain a current and valid fire service instructor
1928 certificate, instruct at least 40 hours during the 4-year
1929 period, and provide proof of such instruction to the division,
1930 which proof must be registered in an electronic database
1931 designated by the division.
1932 (c) Before the expiration of the certificate Within 6
1933 months before the 4-year period expires, successfully complete a
1934 Firefighter Retention Refresher Course consisting of a minimum
1935 of 40 hours of training to be prescribed by rule.
1936 (d) Before the expiration of the certificate Within 6
1937 months before the 4-year period expires, successfully retake and
1938 pass the Minimum Standards Course examination pursuant to s.
1939 633.408.
1940 (4) For the purposes of this section, the term "active"
1941 means being employed as a firefighter or providing service as a
1942 volunteer firefighter for a cumulative period of 6 months within
1943 a 4-year period.
1944
1945 The 4-year period may, in the discretion of the department, be
1946 extended to 12 months after discharge from military service if
1947 the military service does not exceed 3 years, but in no event
1948 more than 6 years from the date of issue or renewal, if
1949 applicable, for an honorably discharged veteran of the United
1950 States Armed Forces or the spouse of such a veteran. A qualified
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1951 individual must provide a copy of a military identification
1952 card, military dependent identification card, military service
1953 record, military personnel file, veteran record, discharge
1954 paper, or separation document that indicates such member is
1955 currently in good standing or such veteran is honorably
1956 discharged.
1957 Section 54. Subsection (4) of section 648.34, Florida
1958 Statutes, is amended to read:
1959 648.34 Bail bond agents; qualifications.—
1960 (4) The applicant shall furnish, with his or her
1961 application, a complete set of his or her fingerprints in
1962 accordance with s. 626.171(4) and a recent credential-sized,
1963 fullface photograph of the applicant. The applicant's
1964 fingerprints shall be certified by an authorized law enforcement
1965 officer. The department shall not authorize an applicant to take
1966 the required examination until the department has received a
1967 report from the Department of Law Enforcement and the Federal
1968 Bureau of Investigation relative to the existence or
1969 nonexistence of a criminal history report based on the
1970 applicant's fingerprints.
1971 Section 55. Subsection (4) of section 648.355, Florida
1972 Statutes, is amended to read:
1973 648.355 Temporary limited license as limited surety agent
1974 or professional bail bond agent; pending examination. —
1975 (4) The applicant shall furnish, with the application for
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1976 temporary license, a complete set of the applicant's
1977 fingerprints in accordance with s. 626.171(4) and a recent
1978 credential-sized, fullface photograph of the applicant. The
1979 applicant's fingerprints shall be certified by an authorized law
1980 enforcement officer. The department shall not issue a temporary
1981 license under this section until the department has received a
1982 report from the Department of Law Enforcement and the Federal
1983 Bureau of Investigation relative to the existence or
1984 nonexistence of a criminal history report based on the
1985 applicant's fingerprints.
1986 Section 56. Subsection (4) is added to section 648.4 6,
1987 Florida Statutes, to read:
1988 648.46 Procedure for disciplinary action against
1989 licensees.—
1990 (4) The expiration, nonrenewal, or surrender of licensure
1991 under this chapter does not eliminate the jurisdiction of the
1992 licensing authority to investigate and prosecute for a violation
1993 committed by a licensee while licensed under this chapter. The
1994 prosecution of any matter may be initiated or continued
1995 notwithstanding the withdrawal of a complaint.
1996 Section 57. Section 766.105, Florida Statutes, is
1997 repealed.
1998 Section 58. Paragraph (b) of subsection (1) of section
1999 945.6041, Florida Statutes, is amended to read:
2000 945.6041 Inmate medical services.—
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2001 (1) As used in this section, the term:
2002 (b) "Health care provider" means:
2003 1. A hospital licensed under chapter 395.
2004 2. A physician or physician assistant licensed under
2005 chapter 458.
2006 3. An osteopathic physician or physician assistant
2007 licensed under chapter 459.
2008 4. A podiatric physician licensed under chapter 461.
2009 5. A health maintenance organization certificated under
2010 part I of chapter 641.
2011 6. An ambulatory surgical center licensed under chapter
2012 395.
2013 7. "Other medical facility" as defined in paragraph (c).
2014 8. A professional association, partnership, corporation,
2015 joint venture, or other association by the individuals set forth
2016 in subparagraphs 2., 3., and 4. for professional activity has
2017 the same meaning as provided in s. 766.105.
2018 Section 59. Paragraph (a) of subsection (1) of section
2019 985.6441, Florida Statutes, is amended to read:
2020 985.6441 Health care services.—
2021 (1) As used in this section, the term:
2022 (a) "Health care provider" means:
2023 1. A hospital licensed under chapter 395.
2024 2. A physician or physician assistant licensed under
2025 chapter 458.
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2026 3. An osteopathic physician or physician assistant
2027 licensed under chapter 459.
2028 4. A podiatric physician licensed under chapter 461.
2029 5. A health maintenance organization certificated under
2030 part I of chapter 641.
2031 6. An ambulatory surgical center licensed under chapter
2032 395.
2033 7. "Other medical facility" as defined in paragraph (c).
2034 8. A professional association, partnership, corporation,
2035 joint venture, or other association by the individuals set forth
2036 in subparagraphs 2., 3., and 4. for professional activity has
2037 the same meaning as provided in s. 766.105.
2038 Section 60. The Department of Financial Services shall
2039 supervise any liquidation or dissolution of the Florida
2040 Patient's Compensation Fund and shall have, with respect to such
2041 liquidation or dissolution, all power granted to it under the
2042 insurance code.
2043 Section 61. All powers, duties, functions, records,
2044 offices, personnel, associated administrative support positions,
2045 property, pending issues, existing contracts, administrative
2046 authority, and administrative rules relating to the Stop I nmate
2047 Fraud Program within the Department of Financial Services are
2048 transferred by a type two transfer, as defined in s. 20.06(2),
2049 Florida Statutes, to the Department of Economic Opportunity.
2050 Section 62. Except as otherwise expressly provided in this
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2051 act, this act shall take effect July 1, 2022.
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INSURANCE & BANKING SUBCOMMITTEE
HB 959 by Rep. LaMarca
Department of Financial Services
AMENDMENT SUMMARY
January 19, 2022
Amendment 1 by Rep. LaMarca (Line 710): The amendment makes the following changes:
• Requires that all service of process on the Chief Financial Officer be served through a
secure online portal created and maintained by the Department of Financial Services;
also makes conforming changes to related laws.
• Makes minor clarifications to the language related to payroll audits for workers’
compensation insurance.
• Corrects a scriveners’ error.
Amendment 2 by Rep. LaMarca (Line 1996): The amendment makes the following changes:
• Requires that the Florida Patient’s Compensation Fund (Fund) would be subject to a
two-year wind down supervised by the Chief Financial Officer.
• Requires dissolution of the Fund by Dec. 31, 2023.
• Requires repeal of the law that created the Fund on Jan. 1, 2024.
• Moves financial responsibility requirements for hospitals, which are part of the law that
created the Fund, to a new section within Chapter 395, F.S.
• Makes conforming changes to retain the definition of “health care provider,” which is part
of the law that created the Fund, because the definition is cross-referenced in other
laws.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative LaMarca offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 710-1171 and insert:
7 subsection (5) within 21 10 business days after receipt of the
8 written request of the department, such failure shall be deemed
9 an immediate serious danger to public health, safety, or welfare
10 sufficient to justify service by the department of a stop-work
11 order on the employer, requiring the cessation of all business
12 operations. If the department makes such a determination, the
13 department shall issue a stop-work order within 72 hours. The
14 order shall take effect when served upon the employer or, for a
15 particular employer worksite, when served at that worksite. In
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16 addition to serving a stop-work order at a particular worksite
17 which shall be effective immediately, the department shall
18 immediately proceed with service upon the employer which shall
19 be effective upon all employer worksites in the state for which
20 the employer is not in compliance. A stop-work order may be
21 served with regard to an employer's worksite by posting a copy
22 of the stop-work order in a conspicuous location at the
23 worksite. Information related to an employer's stop-work order
24 shall be made available on the division's website, be updated
25 daily, and remain on the website for at least 5 years. The order
26 shall remain in effect until the department issues an order
27 releasing the stop-work order upon a finding that the employer
28 has come into compliance with the coverage requirements of this
29 chapter and has paid any penalty assessed under this section.
30 The department may issue an order of conditional release from a
31 stop-work order to an employer upon a finding that the employer
32 has complied with the coverage requirements of this chapter,
33 paid a penalty of $1,000 as a down
34 payment, and agreed to remit periodic payments of the remaining
35 penalty amount pursuant to a payment agreement schedule with the
36 department or pay the remaining penalty amount in full. An
37 employer may not enter into a payment agreement schedule unless
38 the employer has fully paid any previous penalty assessed under
39 this section. If an order of conditional release is issued,
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Amendment No. 1
40 failure by the employer to pay the penalty in full or enter into
41 a payment agreement with the department within 21 28 days after
42 service of the first penalty assessment calculation stop-work
43 order upon the employer, or to meet any term or conditio n of
44 such penalty payment agreement, shall result in the immediate
45 reinstatement of the stop-work order and the entire unpaid
46 balance of the penalty shall become immediately due.
47 (d)1. In addition to any penalty, stop-work order, or
48 injunction, the department shall assess against an any employer
49 who has failed to secure the payment of compensation as required
50 by this chapter a penalty equal to 2 times the amount the
51 employer would have paid in premium when applying approved
52 manual rates to the employer's payroll during periods for which
53 it failed to secure the payment of workers' compensation
54 required by this chapter within the preceding 12-month 2-year
55 period or $1,000, whichever is greater. However, for an employer
56 who is issued a stop-work order for materially understating or
57 concealing payroll or has been previously issued a stop -work
58 order or order of penalty assessment, the preceding 24-month
59 period shall be used to calculate the penalty as specified in
60 this subparagraph.
61 a. For an employer employers who has have not been
62 previously issued a stop-work order or order of penalty
63 assessment, the department must allow the employer to receive a
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64 credit for the initial payment of the estimated annual workers'
65 compensation policy premium, as determined by the carrier, to be
66 applied to the penalty. Before applying the credit to the
67 penalty, the employer must provide the department with
68 documentation reflecting that the employer has secured the
69 payment of compensation pursuant to s. 440.38 and proof of
70 payment to the carrier. In order for the department to apply a
71 credit for an employer that has secured workers' compensation
72 for leased employees by entering into an employee leasing
73 contract with a licensed employee leasing company, the employer
74 must provide the department with a written confirmation, by a
75 representative from the employee leasing company, of the dollar
76 or percentage amount attributable to the initial estimated
77 workers' compensation expense for leased employees, and proof of
78 payment to the employee leasing company. The credit may not be
79 applied unless the employer provides the documentation and proof
80 of payment to the department within 21 28 days after the
81 employer's receipt of the written request to produce business
82 records for calculating the penalty under this subparagraph
83 service of the stop-work order or first order of penalty
84 assessment upon the employer.
85 b. For an employer employers who has have not been
86 previously issued a stop-work order or order of penalty
87 assessment, the department must reduce the final assessed
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Amendment No. 1
88 penalty by 25 percent if the employer has complied with
89 administrative rules adopted pursuant to subsection (5) and has
90 provided such business records to the department within 21 10
91 business days after the employer's receipt of the written
92 request to produce business records for calculating the penalty
93 under this subparagraph.
94 c. For an employer who has not been previously issued a
95 stop-work order or order of penalty assessment, the department
96 must reduce the final assessed penalty by 15 percent if the
97 employer correctly answers at least 80 percent of the questions
98 from an online workers' compensation coverage and compliance
99 tutorial, developed by the department, within 21 days after the
100 employer's receipt of the written request to produce business
101 records for calculating the penalty under this subparagraph. The
102 online tutorial must be taken in a department office location
103 identified by rule.
104
105 c. The $1,000 penalty shall be assessed against the employer
106 even if the calculated penalty after the credit provided in sub-
107 subparagraph a., the and 25 percent reduction provided in sub-
108 subparagraph b., and the 15 percent reduction provided in sub-
109 subparagraph c., as applicable, have been applied is less than
110 $1,000.
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Amendment No. 1
111 2. Any subsequent violation within 5 years after the most
112 recent violation shall, in addition to the penalties set forth
113 in this subsection, be deemed a knowing act within the meaning
114 of s. 440.105.
115 Section 14. Subsection (12) of section 440.13, Florida
116 Statutes, is amended to read:
117 440.13 Medical services and supplies; penalty for
118 violations; limitations.—
119 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
120 REIMBURSEMENT ALLOWANCES.—
121 (a) A three-member panel is created, consisting of the
122 Chief Financial Officer, or the Chief Financial Officer's
123 designee, and two members to be appointed by the Governor,
124 subject to confirmation by the Senate, one member who, on
125 account of present or previous vocation, employment, or
126 affiliation, shall be classified as a representative of
127 employers, the other member who, on account of previous
128 vocation, employment, or affiliation, shall be classified as a
129 representative of employees. The panel shall determine statewide
130 schedules of maximum reimbursement allowances for medically
131 necessary treatment, care, and attendance provided by
132 physicians, hospitals, ambulatory surgical centers, work -
133 hardening programs, pain programs, and durable medical
134 equipment. The maximum reimbursement allowances for inpatient
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135 hospital care shall be based on a schedule of per diem rates, to
136 be approved by the three-member panel no later than March 1,
137 1994, to be used in conjunction with a precertification manual
138 as determined by the department, including maximum hours in
139 which an outpatient may remain in observation status, which
140 shall not exceed 23 hours. All compensable charges for hospital
141 outpatient care shall be reimbursed at 75 percent of usual and
142 customary charges, except as otherwise provided by this
143 subsection. Annually, the three-member panel shall adopt
144 schedules of maximum reimbursement allowances for physicians,
145 hospital inpatient care, hospital outpatient care, ambulatory
146 surgical centers, work-hardening programs, and pain programs. An
147 individual physician, hospital, ambulatory surgical center, pain
148 program, or work-hardening program shall be reimbursed:
149 1. either The agreed-upon contract price; or
150 2. If there is no agreed-upon contract price, the lesser
151 of the provider's billed charge or the maximum reimbursement
152 allowance in the appropriate schedule.
153 (b) It is the intent of the Legislature to increase the
154 schedule of maximum reimbursement allowances for selected
155 physicians effective January 1, 2004, and to pay for the
156 increases through reductions in payments to hospitals. Revisions
157 developed pursuant to this subsection are limited to the
158 following:
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Amendment No. 1
159 1. Payments for outpatient physical, occupational, and
160 speech therapy provided by hospitals shall be reduced to the
161 schedule of maximum reimbursement allowances for these services
162 which applies to nonhospital providers.
163 2. Payments for scheduled outpatient nonemergency
164 radiological and clinical laboratory services that are not
165 provided in conjunction with a surgical procedure shall be
166 reduced to the schedule of maximum reimbursement allowances for
167 these services which applies to nonhospital providers.
168 3. Outpatient reimbursement for scheduled surgeries shall
169 be reduced from 75 percent of charges to 60 percent of charges.
170 4. Maximum reimbursement for a physician licensed under
171 chapter 458 or chapter 459 shall be increased to 110 percent of
172 the reimbursement allowed by Medicare, using appropriate codes
173 and modifiers or the medical reimbursement level adopte d by the
174 three-member panel as of January 1, 2003, whichever is greater.
175 5. Maximum reimbursement for surgical procedures shall be
176 increased to 140 percent of the reimbursement allowed by
177 Medicare or the medical reimbursement level adopted by the
178 three-member panel as of January 1, 2003, whichever is greater.
179 (c) As to reimbursement for a prescription medication, the
180 reimbursement amount for a prescription shall be the average
181 wholesale price plus $4.18 for the dispensing fee. For
182 repackaged or relabeled prescription medications dispensed by a
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183 dispensing practitioner as provided in s. 465.0276, the fee
184 schedule for reimbursement shall be 112.5 percent of the average
185 wholesale price, plus $8.00 for the dispensing fee. For purposes
186 of this subsection, the average wholesale price shall be
187 calculated by multiplying the number of units dispensed times
188 the per-unit average wholesale price set by the original
189 manufacturer of the underlying drug dispensed by the
190 practitioner, based upon the published manufacturer 's average
191 wholesale price published in the Medi-Span Master Drug Database
192 as of the date of dispensing. All pharmaceutical claims
193 submitted for repackaged or relabeled prescription medications
194 must include the National Drug Code of the original
195 manufacturer. Fees for pharmaceuticals and pharmaceutical
196 services shall be reimbursable at the applicable fee schedule
197 amount except where the employer or carrier, or a service
198 company, third party administrator, or any entity acting on
199 behalf of the employer or carrier directly contracts with the
200 provider seeking reimbursement for a lower amount.
201 (d) Reimbursement for all fees and other charges for such
202 treatment, care, and attendance, including treatment, care, and
203 attendance provided by any hospital or other health care
204 provider, ambulatory surgical center, work-hardening program, or
205 pain program, must not exceed the amounts provided by the
206 uniform schedule of maximum reimbursement allowances as
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207 determined by the panel or as otherwise provided in this
208 section. This subsection also applies to independent medical
209 examinations performed by health care providers under this
210 chapter. In determining the uniform schedule, the panel shall
211 first approve the data which it finds representative of
212 prevailing charges in the state for similar treatment, care, and
213 attendance of injured persons. Each health care provider, health
214 care facility, ambulatory surgical center, work-hardening
215 program, or pain program receiving workers' compensation
216 payments shall maintain records verifying their usual charges.
217 In establishing the uniform schedule of maximum reimbursement
218 allowances, the panel must consider:
219 1. The levels of reimbursement for similar treatment,
220 care, and attendance made by other health care programs or
221 third-party providers;
222 2. The impact upon cost to employers for providing a level
223 of reimbursement for treatment, care, and attendance which will
224 ensure the availability of treatment, care, and attendance
225 required by injured workers;
226 3. The financial impact of the reimbursement allowances
227 upon health care providers and health care facilities, including
228 trauma centers as defined in s. 395.4001, and its effect upon
229 their ability to make available to injured workers such
230 medically necessary remedial treatment, care, and attendance.
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231 The uniform schedule of maximum reimbursement allowances must be
232 reasonable, must promote health care cost containment and
233 efficiency with respect to the workers' compensation health care
234 delivery system, and must be sufficient to ensure availabili ty
235 of such medically necessary remedial treatment, care, and
236 attendance to injured workers; and
237 4. The most recent average maximum allowable rate of
238 increase for hospitals determined by the Health Care Board under
239 chapter 408.
240 (e) In addition to establishing the uniform schedule of
241 maximum reimbursement allowances, the panel shall:
242 1. Take testimony, receive records, and collect data to
243 evaluate the adequacy of the workers' compensation fee schedule,
244 nationally recognized fee schedules and alternative methods of
245 reimbursement to health care providers and health care
246 facilities for inpatient and outpatient treatment and care.
247 2. Survey health care providers and health care facilities to
248 determine the availability and accessibility of workers'
249 compensation health care delivery systems for injured workers.
250 3. Survey carriers to determine the estimated impact on
251 carrier costs and workers' compensation premium rates by
252 implementing changes to the carrier reimbursement schedule or
253 implementing alternative reimbursement methods.
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254 4. Submit recommendations on or before January 15, 2017,
255 and biennially thereafter, to the President of the Senate and
256 the Speaker of the House of Representatives on methods to
257 improve the workers' compensation health care delivery system.
258
259 The department, as requested, shall provide data to the panel,
260 including, but not limited to, utilization trends in the
261 workers' compensation health care delivery system. The
262 department shall provide the panel with an annual report
263 regarding the resolution of medical reimbursement disputes and
264 any actions pursuant to subsection (8). The department shall
265 provide administrative support and service to the panel to the
266 extent requested by the panel and may adopt rules necessary to
267 administer this subsection. For prescription medication
268 purchased under the requirements of this subsection, a
269 dispensing practitioner shall not possess such medication unless
270 payment has been made by the practitioner, the practitioner's
271 Section 14. Subsection (12) of section 440.13, Florida
272 Statutes, is amended to read:
273 440.13 Medical services and supplies; penalty for
274 violations; limitations.—
275 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
276 REIMBURSEMENT ALLOWANCES.—
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277 (a) A three-member panel is created, consisting of the
278 Chief Financial Officer, or the Chief Financial Officer's
279 designee, and two members to be appointed by the Governor,
280 subject to confirmation by the Senate, one member who, on
281 account of present or previous vocation, employment, or
282 affiliation, shall be classified as a representative of
283 employers, the other member who, on account of previous
284 vocation, employment, or affiliation, shall be classified as a
285 representative of employees. The panel shall determine statewide
286 schedules of maximum reimbursement allowances for medically
287 necessary treatment, care, and attendance provided by
288 physicians, hospitals, ambulatory surgical centers, work -
289 hardening programs, pain programs, and durable medical
290 equipment. The maximum reimbursement allowances for inpatient
291 hospital care shall be based on a schedule of per diem rates, to
292 be approved by the three-member panel no later than March 1,
293 1994, to be used in conjunction with a precertification manual
294 as determined by the department, including maximum hours in
295 which an outpatient may remain in observation status, which
296 shall not exceed 23 hours. All compensable charges for hospital
297 outpatient care shall be reimbursed at 75 percent of usual and
298 customary charges, except as otherwise provided by this
299 subsection. Annually, the three-member panel shall adopt
300 schedules of maximum reimbursement allowances for physicians,
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Amendment No. 1
301 hospital inpatient care, hospital outpatient care, ambulatory
302 surgical centers, work-hardening programs, and pain programs. An
303 individual physician, hospital, ambulatory surgical center, pain
304 program, or work-hardening program shall be reimbursed:
305 1. either The agreed-upon contract price; or
306 2. If there is no agreed-upon contract price, the lesser
307 of the provider's billed charge or the maximum reimbursement
308 allowance in the appropriate schedule.
309 (b) It is the intent of the Legislature to increase the
310 schedule of maximum reimbursement allowances for selected
311 physicians effective January 1, 2004, and to pay for the
312 increases through reductions in payments to hospitals. Revisions
313 developed pursuant to this subsection are limited to the
314 following:
315 1. Payments for outpatient physical, occupational, and
316 speech therapy provided by hospitals shall be reduced to the
317 schedule of maximum reimbursement allowances for these services
318 which applies to nonhospital providers.
319 2. Payments for scheduled outpatient nonemergency
320 radiological and clinical laboratory services that are not
321 provided in conjunction with a surgical procedure shall be
322 reduced to the schedule of maximum reimbursement allowances for
323 these services which applies to nonhospital providers.
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324 3. Outpatient reimbursement for scheduled surgeries shall
325 be reduced from 75 percent of charges to 60 percent of charges.
326 4. Maximum reimbursement for a physician licensed under
327 chapter 458 or chapter 459 shall be increased to 110 percent of
328 the reimbursement allowed by Medicare, using appropriate codes
329 and modifiers or the medical reimbursement level adopted by the
330 three-member panel as of January 1, 2003, whichever is g reater.
331 5. Maximum reimbursement for surgical procedures shall be
332 increased to 140 percent of the reimbursement allowed by
333 Medicare or the medical reimbursement level adopted by the
334 three-member panel as of January 1, 2003, whichever is greater.
335 (c) As to reimbursement for a prescription medication, the
336 reimbursement amount for a prescription shall be the average
337 wholesale price plus $4.18 for the dispensing fee. For
338 repackaged or relabeled prescription medications dispensed by a
339 dispensing practitioner as provided in s. 465.0276, the fee
340 schedule for reimbursement shall be 112.5 percent of the average
341 wholesale price, plus $8.00 for the dispensing fee. For purposes
342 of this subsection, the average wholesale price shall be
343 calculated by multiplying the number of units dispensed times
344 the per-unit average wholesale price set by the original
345 manufacturer of the underlying drug dispensed by the
346 practitioner, based upon the published manufacturer's average
347 wholesale price published in the Medi-Span Master Drug Database
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Amendment No. 1
348 as of the date of dispensing. All pharmaceutical claims
349 submitted for repackaged or relabeled prescription medications
350 must include the National Drug Code of the original
351 manufacturer. Fees for pharmaceuticals and pharmaceutical
352 services shall be reimbursable at the applicable fee schedule
353 amount except where the employer or carrier, or a service
354 company, third party administrator, or any entity acting on
355 behalf of the employer or carrier directly contracts with the
356 provider seeking reimbursement for a lower amount.
357 (d) Reimbursement for all fees and other charges for such
358 treatment, care, and attendance, including treatment, care, and
359 attendance provided by any hospital or other health care
360 provider, ambulatory surgical center, work-hardening program, or
361 pain program, must not exceed the amounts provided by the
362 uniform schedule of maximum reimbursement allowances as
363 determined by the panel or as otherwise provided in this
364 section. This subsection also applies to independent medical
365 examinations performed by health care providers under this
366 chapter. In determining the uniform schedule, the panel shall
367 first approve the data which it finds representative of
368 prevailing charges in the state for similar treatment, care, and
369 attendance of injured persons. Each health care provider, health
370 care facility, ambulatory surgical center, work-hardening
371 program, or pain program receiving workers' compensation
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372 payments shall maintain records verifying their usual charges.
373 In establishing the uniform schedule of maximum reimbursement
374 allowances, the panel must consider:
375 1. The levels of reimbursement for similar treatment,
376 care, and attendance made by other health care programs or
377 third-party providers;
378 2. The impact upon cost to employers for providing a level
379 of reimbursement for treatment, care, and attendance which will
380 ensure the availability of treatment, care, and attendance
381 required by injured workers;
382 3. The financial impact of the reimbursement allowances
383 upon health care providers and health care facilities, including
384 trauma centers as defined in s. 395.4001, and its effect upon
385 their ability to make available to injured workers such
386 medically necessary remedial treatment, care, and attendance.
387 The uniform schedule of maximum reimbursement allowances must be
388 reasonable, must promote health care cost containment and
389 efficiency with respect to the workers' compensation health care
390 delivery system, and must be sufficient to ensure availability
391 of such medically necessary remedial treatment, care, and
392 attendance to injured workers; and
393 4. The most recent average maximum allowable rate of
394 increase for hospitals determined by the Health Care Board under
395 chapter 408.
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396 (e) In addition to establishing the uniform schedule of
397 maximum reimbursement allowances, the panel shall:
398 1. Take testimony, receive records, and collect data to
399 evaluate the adequacy of the workers' compensation fee schedule,
400 nationally recognized fee schedules and alternative methods of
401 reimbursement to health care providers and health care
402 facilities for inpatient and outpatient treatment and care.
403 2. Survey health care providers and health care facilities
404 to determine the availability and accessibility of workers'
405 compensation health care delivery systems for injured workers.
406 3. Survey carriers to determine the estimated impact on
407 carrier costs and workers' compensation premium rates by
408 implementing changes to the carrier reimbursement schedule or
409 implementing alternative reimbursement methods.
410 4. Submit recommendations on or before January 15, 2017,
411 and biennially thereafter, to the President of the Senate and
412 the Speaker of the House of Representatives on methods to
413 improve the workers' compensation health care delivery system.
414
415 The department, as requested, shall provide data to t he panel,
416 including, but not limited to, utilization trends in the
417 workers' compensation health care delivery system. The
418 department shall provide the panel with an annual report
419 regarding the resolution of medical reimbursement disputes and
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420 any actions pursuant to subsection (8). The department shall
421 provide administrative support and service to the panel to the
422 extent requested by the panel and may adopt rules necessary to
423 administer this subsection. For prescription medication
424 purchased under the requirements of this subsection, a
425 dispensing practitioner shall not possess such medication unless
426 payment has been made by the practitioner, the practitioner's
427 professional practice, or the practitioner's practice management
428 company or employer to the supplying manufacturer, wholesaler,
429 distributor, or drug repackager within 60 days of the dispensing
430 practitioner taking possession of that medication.
431 Section 15. Subsection (3) of section 440.185, Florida
432 Statutes, is amended to read:
433 440.185 Notice of injury or death; reports; penalties for
434 violations.—
435 (3) Within 3 business days after the employer or the
436 employee informs the carrier of an injury, the carrier shall
437 send by regular mail or e-mail to the injured worker an
438 informational brochure approved by the department which sets
439 forth in clear and understandable language an explanation of the
440 rights, benefits, procedures for obtaining benefits and
441 assistance, criminal penalties, and obligations of injured
442 workers and their employers under the Florida Workers'
443 Compensation Law. Annually, the carrier or its third-party
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444 administrator shall send by regular mail or e-mail to the
445 employer an informational brochure approved by the department
446 which sets forth in clear and understandable language an
447 explanation of the rights, benefits, procedures for obtaining
448 benefits and assistance, criminal penalties, and obligations of
449 injured workers and their employers under the Florida Workers'
450 Compensation Law. All such informational brochures shall contain
451 a notice that clearly states in substance the following: "Any
452 person who, knowingly and with intent to injure, defraud, or
453 deceive any employer or employee, insurance company, or self -
454 insured program, files a statement of claim containing any false
455 or misleading information commits a felony of the third degree."
456 Section 16. Subsection (3) of section 440.381, Florida
457 Statutes, is amended to read:
458 440.381 Application for coverage; reporting payroll;
459 payroll audit procedures; penalties.—
460 (3) The Financial Services Commission, in consultation
461 with the department, shall establish by rule minimum
462 requirements for audits of payroll and classifications in order
463 to ensure that the appropriate premium is charged for workers'
464 compensation coverage. The rules must shall ensure that audits
465 performed by both carriers and employers are adequate to provide
466 that all sources of payments to employees, subcontractors, and
467 independent contractors are have been reviewed and that the
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468 accuracy of classification of employees is has been verified.
469 The rules must require shall provide that employers in all
470 classes other than the construction class be audited at least
471 not less frequently than biennially and may provide for more
472 frequent audits of employers in specified classifications based
473 on factors such as amount of premium, type of business, loss
474 ratios, or other relevant factors. In no event shall Employers
475 in the construction class, generating more than the amount of
476 premium required to be experience rated must, be audited at
477 least less than annually. The annual audits required for
478 construction classes must shall consist of physical onsite
479 audits for policies only if the estimated annual premium is
480 $10,000 or more. Payroll verification audit rules must include,
481 but need not be limited to, the use of state and federal reports
482 of employee income, payroll and other accounting records,
483 certificates of insurance maintained by subcontractors, and
484 duties of employees. At the completion of an audit, the employer
485 or officer of the corporation and the auditor must print and
486 sign their names on the audit document and attach proof of
487 identification to the audit document.
488 Section 17. Subsection (2) of section 497.277, Florida
489 Statutes, is amended to read:
490 497.277 Other charges.—Other than the fees for the sale of
491 burial rights, burial merchandise, and burial services, no other
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Amendment No. 1
492 fee may be directly or indirectly charged, contracted for, or
493 received by a cemetery company as a condition for a cust omer to
494 use any burial right, burial merchandise, or burial service,
495 except for:
496 (2) Charges paid for transferring burial rights from one
497 purchaser to another; however, no such fee may exceed $50.
498 Section 18. Paragraph (b) of subsection (1) of section
499 497.369, Florida Statutes, is amended to read:
500 497.369 Embalmers; licensure as an embalmer by
501 endorsement; licensure of a temporary embalmer.—
502 (1) The licensing authority shall issue a license by
503 endorsement to practice embalming to an applicant who ha s
504 remitted an examination fee set by rule of the licensing
505 authority not to exceed $200 and who the licensing authority
506 certifies:
507 (b)1. Holds a valid license in good standing to practice
508 embalming in another state of the United States and has engaged
509 in the full-time, licensed practice of embalming in that state
510 for at least 5 years, provided that, when the applicant secured
511 her or his original license, the requirements for licensure were
512 substantially equivalent to or more stringent than those
513 existing in this state; or
514 2. Meets the qualifications for licensure in s. 497.368,
515 except that the internship requirement shall be deemed to have
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516 been satisfied by 1 year's practice as a licensed embalmer in
517 another state, and has, within 10 years before prior to the date
518 of application, successfully completed a state, regional, or
519 national examination in mortuary science, which, as determined
520 by rule of the licensing authority, is substantially equivalent
521 to or more stringent than the examination given by the licensing
522 authority.
523 Section 19. Paragraphs (b) and (f) of subsection (1) of
524 section 497.372, Florida Statutes, are amended to read:
525 497.372 Funeral directing; conduct constituting practice
526 of funeral directing.—
527 (1) The practice of funeral directing shall be construed
528 to consist of the following functions, which may be performed
529 only by a licensed funeral director:
530 (b) Planning or arranging, on an at-need basis, the
531 details of funeral services, embalming, cremation, or other
532 services relating to the final disposition of human remains, and
533 including the removal of such remains from the state; setting
534 the time of the services; establishing the type of services to
535 be rendered; acquiring the services of the clergy; and obtaining
536 vital information for the filing of death certificates and
537 obtaining of burial transit permits.
538 (f) Directing, being in charge or apparent charge of, or
539 supervising, directly or indirectly, any memorial service held
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Amendment No. 1
540 prior to or within 72 hours of the burial or cremation, if such
541 memorial service is sold or arranged by a licensee.
542 Section 20. Paragraph (b) of subsection (1) of section
543 497.374, Florida Statutes, is amended to read:
544 497.374 Funeral directing; licensure as a funeral director
545 by endorsement; licensure of a temporary funeral director.—
546 (1) The licensing authority shall issue a license by
547 endorsement to practice funeral directing to an applicant who
548 has remitted a fee set by rule of the licensing authority not to
549 exceed $200 and who:
550 (b)1. Holds a valid license in good standing to practice
551 funeral directing in another state of the United States and has
552 engaged in the full-time, licensed practice of funeral directing
553 in that state for at least 5 years, provided that, when the
554 applicant secured her or his original license, the requirements
555 for licensure were substantially equivalent to or more stringent
556 than those existing in this state; or
557 2. Meets the qualifications for licensure in s. 497.373 ,
558 except that the applicant need not hold an associate degree or
559 higher if the applicant holds a diploma or certificate from an
560 accredited program of mortuary science, and has successfully
561 completed a state, regional, or national examination in mortuary
562 science or funeral service arts, which, as determined by rule of
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Amendment No. 1
563 the licensing authority, is substantially equivalent to or more
564 stringent than the examination given by the licensing authority.
565 Section 21. Subsection (6) of section 554.108, Florida
566 Statutes, is renumbered as subsection (7), subsection (1) is
567 amended, and a new subsection (6) is added to that section, to
568 read:
569 554.108 Inspection.—
570 (1) The inspection requirements of this chapter apply only
571 to boilers located in public assembly locations. A potable hot
572 water supply boiler with an a heat input of 200,000 British
573 thermal units (Btu) per hour and above, up to an a heat input
574 not exceeding 400,000 Btu per hour, is exempt from inspection ;
575 however, such an exempt boiler, if manufactured after July 1,
576 2022, but must be stamped with the A.S.M.E. code symbol.
577 Additionally, "HLW" and the boiler's A.S.M.E data report of a
578 boiler with an input of 200,000 to 400,000 Btu per hour must be
579 filed as required under s. 554.103(2).
580 (6) Each enclosed space or room containing a boiler
581 regulated under this chapter which is fired by the direct
582 application of energy from the combustion of fuels and which is
583 located in any portion of a public lodging establishment under
584 s. 509.242 shall be equipped with one or more carbon monoxide
585 detector devices.
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586 Section 22. Paragraphs (a) and (e) of subsection (1) and
587 paragraph (a) of subsection (2) of section 554.111, Florida
588 Statutes, are amended to read:
589 554.111 Fees.—
590 (1) The department shall charge the following fees:
591 (a) For an applicant for a certificate of competency, the
592 initial application fee shall be $50, and the annual renewal fee
593 shall be $30. The fee for examination shall be $50.
594 (e) An application for a boiler permit must include the
595 manufacturer's data report applicable certificate inspection fee
596 provided in paragraph (b).
597 (2) Not more than an amount equal to one certificate
598 inspection fee may be charged or collected for any and all
599 boiler inspections in any inspection period, except as otherwise
600 provided in this chapter.
601 (a) When it is necessary to make a special trip for
602 testing and verification inspections to observe the application
603 of a hydrostatic test, an additional fee equal to the fee for a
604 certificate inspection of the boiler must be charged.
605 Section 23. Subsection (4) of section 554.114, Florida
606 Statutes, is amended to read:
607 554.114 Prohibitions; penalties.—
608 (4) A boiler insurance company, authorized inspection
609 agency, or other person in violation of this section for more
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Amendment No. 1
610 than 30 days shall pay a fine of $10 per day for the subsequent
611 first 10 days of noncompliance, $50 per day for the subsequent
612 20 days of noncompliance, and $100 per day for each subsequent
613 day over 20 days of noncompliance thereafter.
614 Section 24. Subsection (9) of section 624.307, Florida
615 Statutes, is amended to read:
616 624.307 General powers; duties.—
617 (9) Upon receiving service of legal process issued in any
618 civil action or proceeding in this state against any regulated
619 person or any unauthorized insurer under s. 626.906 or s.
620 626.937 that which is required to appoint the Chief Financial
621 Officer as its agent attorney to receive service of all legal
622 process, the Chief Financial Officer shall make the process
623 available through a secure online portal, as attorney, may, in
624 lieu of sending the process by registered or certified mail,
625 send the process or make it available by any other verifiable
626 means, including, but not limited to, making the documents
627 available by electronic transmission from a secure website
628 established by the department to the person last designated by
629 the regulated person or the unauthorized insurer to receive the
630 process. When process documents are made available
631 electronically, the Chief Financial Officer shall promptly send
632 a notice of receipt of service of process to the person last
633 designated by the regulated person or unauthorized insurer to
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Amendment No. 1
634 receive legal process. The notice must state the date and manner
635 in which the copy of the process was made available to the
636 regulated person or unauthorized insurer being served and
637 contain the uniform resource locator (URL) where for a hyperlink
638 to access files and information on the department's website to
639 obtain a copy of the process may be obtained.
640 Section 25. Section 624.422, Florida Statutes, are amended
641 to read:
642 624.422 Service of process; appointment of Chief Financial
643 Officer as process agent.—
644 (1) Each licensed insurer, whether domestic, foreign, or
645 alien, shall be deemed to have appointed the Chief Financial
646 Officer and her or his successors in office as its agent
647 attorney to receive service of all legal process issued against
648 it in any civil action or proceeding in this state; and process
649 so served shall be valid and binding upon the insurer.
650 (2) Before Prior to its authorization to transact
651 insurance in this state, each insurer shall file with the
652 department designation of the name and e-mail address of the
653 person to whom process against it served upon the Chief
654 Financial Officer is to be made available through the
655 department's secure online portal forwarded. Each insurer shall
656 also file with the department designation of the name and e-mail
657 address of the person to whom the department shall forward civil
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Amendment No. 1
658 remedy notices filed under s. 624.155. The insurer may change a
659 designation at any time by a new filing.
660 (3) Service of process submitted through the department's
661 secure online portal upon the Chief Financial Officer as the
662 insurer's agent attorney pursuant to such an appointment shall
663 be the sole method of service of process upon an authorize d
664 domestic, foreign, or alien insurer in this state
665 Section 26. Subsection (1) of section 624.423, Florida
666 Statutes, is amended to read:
667 624.423 Serving process.—
668 (1) Service of process upon the Chief Financial Officer as
669 process agent of the insurer under s. 624.422 and s. 626.937
670 shall be made by serving a copy of the process upon the Chief
671 Financial Officer or upon her or his assistant, deputy, or other
672 person in charge of her or his office. Service may also be made
673 by mail or electronically as provided in s. 48.151(3) s. 48.151.
674 Upon receiving such service, the Chief Financial Officer shall
675 retain a record of the process copy and promptly notify and make
676 forward one copy of the process available through the
677 department's secure online portal by registered or certified
678 mail or by other verifiable means, as provided under s.
679 624.307(9), to the person last designated by the insurer to
680 receive the same, as provided under s. 624.422(2). For purposes
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681 of this section, records shall may be retained electronically as
682 paper or electronic copies.
683 Section 27. Subsections (3) and (4) of section 626.937,
684 Florida Statutes, are amended to read:
685 626.937 Actions against insurer; service of process. —
686 (3) Each unauthorized insurer requesting eligibility
687 pursuant to s. 626.918 shall file with the department its
688 appointment of the Chief Financial Officer, on a form as
689 furnished by the department, as its agent attorney to receive
690 service of all legal process issued against it in any civil
691 action or proceeding in this state, and agreeing that process so
692 served shall be valid and binding upon the insurer. The
693 appointment shall be irrevocable, shall bind the insurer and any
694 successor in interest as to the assets or liabilities of the
695 insurer, and shall remain in effect as long as there is
696 outstanding in this state any obligation or liability of the
697 insurer resulting from its insurance transactions therein.
698 (4) At the time of such appointment of the Chief Financial
699 Officer as its process agent, the insurer shall file with the
700 department designation of the name and e-mail address of the
701 person to whom process against it served upon the Chief
702 Financial Officer is to be made available through the
703 department's secure online portal forwarded. The insurer may
704 change the designation at any time by a new filing.
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Amendment No. 1
705 Section 28. Subsections (1) and (3) of section 48.151,
706 Florida Statutes, are amended to read:
707 48.151 Service on statutory agents for certain persons. —
708 (1) When any law designates a public officer, board,
709 agency, or commission as the agent for service of process on any
710 person, firm, or corporation, service of process thereunder
711 shall be made by leaving one copy of the process with the public
712 officer, board, agency, or commission or in the office thereof,
713 or by mailing one copy to the public officer, board, agency, or
714 commission, except as provided in subsection (3). The public
715 officer, board, agency, or commission so served shall retain a
716 record copy and promptly send the copy served, by registered or
717 certified mail, to the person to be served as shown by his or
718 her or its records. Proof of service on the public officer,
719 board, agency, or commission shall be by a notice accepting the
720 process which shall be issued by the public officer, board,
721 agency, or commission promptly after service and filed in the
722 court issuing the process. The notice accepting service shall
723 state the date upon which the copy of the process was mailed by
724 the public officer, board, agency, or commission to the person
725 being served and the time for pleading prescribed by the rules
726 of procedure shall run from this date. The service is valid
727 service for all purposes on the person for whom the public
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Bill No. HB 959 (2022)
Amendment No. 1
728 officer, board, agency, or commission is statutory agent for
729 service of process.
730 (3) The Chief Financial Officer or his or her assistant or
731 deputy or another person in charge of the office is the agent
732 for service of process on all insurers applying for authority to
733 transact insurance in this state, all licensed nonresident
734 insurance agents, all nonresident disability insurance agents
735 licensed pursuant to s. 626.835, any unauthorized insurer under
736 s. 626.906 or s. 626.937, domestic reciprocal insurers,
737 fraternal benefit societies under chapter 632, warranty
738 associations under chapter 634, prepaid limited hea lth service
739 organizations under chapter 636, and persons required to file
740 statements under s. 628.461. As an alternative to service of
741 process made by mail or personal service on the Chief Financial
742 Officer, on his or her assistant or deputy, or on another person
743 in charge of the office, The Department of Financial Services
744 shall may create a secure online portal as the sole means an
745 Internet-based transmission system to accept service of process
746 on the Chief Financial Officer, or his or her assistant or
747 deputy, or another person in charge of the office pursuant to
748 this section.
749 Section 29. Subsection (3)(f) of section 624.610, Florida
750 Statutes, is amended to read:
751 624.610 Reinsurance.—
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Bill No. HB 959 (2022)
Amendment No. 1
752 (3)(f) If the assuming insurer is not authorized or
753 accredited to transact insurance or reinsurance in this state
754 pursuant to paragraph (a) or paragraph (b), the credit permitted
755 by paragraph (c) or paragraph (d) must not be allowed unless the
756 assuming insurer agrees in the reinsurance agreements:
757 1.a. That in the event of the failure of the assuming
758 insurer to perform its obligations under the terms of the
759 reinsurance agreement, the assuming insurer, at the request of
760 the ceding insurer, shall submit to the jurisdiction of any
761 court of competent jurisdiction in any state of the United
762 States, will comply with all requirements necessary to give the
763 court jurisdiction, and will abide by the final decision of the
764 court or of any appellate court in the event of an appeal; and
765 b. To designate the Chief Financial Officer, pursuant to
766 s. 48.151, as its true and lawful agent attorney upon whom may
767 be served any lawful process in any action, suit, or proceeding
768 instituted by or on behalf of the ceding company.
769 Section 30. Subsection (4)(d) of section 624.610, Florida
770 Statutes, is amended to read:
771 624.610 Reinsurance.—
772 (4)(d)
773 2. Consent in writing to the jurisdiction of the courts of
774 this state and to the designation of the Chief Financial
775 Officer, pursuant to s. 48.151, as its true and lawful agent
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Bill No. HB 959 (2022)
Amendment No. 1
776 attorney upon whom may be served any lawful process in any
777 action, suit, or proceeding instituted by or on behalf of the
778 ceding insurer. This subparagraph does not limit or alter in any
779 way the capacity of parties to a reinsurance agreement to agree
780 to an alternative dispute resolution mechanism, except to the
781 extent that such agreement is unenforceable under applicable
782 insolvency or delinquency laws.
783 Section 31. Section 626.906, Florida Statutes, is amended
784 to read:
785 626.906 Acts constituting Chief Financial Officer as
786 process agent.—Any of the following acts in this state, effected
787 by mail or otherwise, by an unauthorized foreign insurer, alien
788 insurer, or person representing or aiding such an insurer is
789 equivalent to and shall constitute an appointment by such
790 insurer or person representing or aiding such insurer of the
791 Chief Financial Officer to be its true and lawful agent
792 attorney, upon whom may be served all lawful process in any
793 action, suit, or proceeding instituted by or on behalf of an
794 insured or beneficiary, arising out of any such contract of
795 insurance; and any such act shall be signification of the
796 insurer’s or person’s agreement that such service of process is
797 of the same legal force and validity as personal service of
798 process in this state upon such insurer or person representing
799 or aiding such insurer:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 1
800 Section 32. Subsection (4) of section 626.912, Florida
801 Statutes, is amended to read:
802 626.912 Exemptions from ss. 626.904-626.911.
803 (4) Issued under and in accordance with the Surplus Lines
804 Law, when such insurer or person representing or aiding such
805 insurer enters a general appearance or when such contract of
806 insurance contains a provision designating the Chief Financial
807 Officer or designating a Florida resident agent to be the true
808 and lawful agent attorney of such unauthorized insurer or person
809 representing or aiding such insurer upon whom may be served all
810 lawful process in any action, suit, or proceeding instituted by
811 or on behalf of an insured or person representing or aiding such
812 insurer or beneficiary arising out of any such contract of
813 insurance; and service of process effected on such Chief
814 Financial Officer or such resident agent shall be deemed to
815 confer complete jurisdiction over such unauthorized insurer or
816 person representing or aiding such insurer in such action.
817 Section 33. Subsection (3) of section 626.937, Florida
818 Statutes, is amended to read:
819 626.937 Actions against insurer; service of process.—
820 (3) Each unauthorized insurer requesting eligibility
821 pursuant to s. 626.918 shall file with the department its
822 appointment of the Chief Financial Officer, on a form as
823 furnished by the department, as its agent attorney to receive
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 1
824 service of all legal process issued against it in any civil
825 action or proceeding in this state, and agreeing that process so
826 served shall be valid and binding upon the insurer. The
827 appointment shall be irrevocable, shall bind the insurer and any
828 successor in interest as to the assets or liabilities of the
829 insurer, and shall remain in effect as long as there is
830 outstanding in this state any obligation or liability of the
831 insurer resulting from its insurance transactions therein.
832
833 -----------------------------------------------------
834 T I T L E A M E N D M E N T
835 Remove lines 69-94 and insert:
836 s. 440.381, F.S.; specifying workers' compensation
837 policies that require physical onsite audits for a
838 specified class; amending s. 497.277, F.S.; deleting a
839 cap on transferring burial rights fees; amending s.
840 497.369, F.S.; revising requirements for licenses by
841 endorsement to practice embalming; amending s.
842 497.372, F.S.; revising the scope of funeral directing
843 practice; amending s. 497.374, F.S.; revising
844 requirements for licenses by endorsement to practice
845 funeral directing; amending s. 554.108, F.S.;
846 requiring boilers manufactured after a specified date,
847 rather than boilers of certain heat input, to be
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 1
848 stamped with a specified code symbol; revising the
849 boilers' information that must be filed; requiring
850 that specified spaces and rooms be equipped with
851 carbon monoxide detector devices; amending s. 554.111,
852 F.S.; deleting a requirement for a specified fee for a
853 certificate of competency; requiring applications for
854 boiler permits to include a specified report; revising
855 the purpose for special trips that the department is
856 required to make for boiler inspections; amending s.
857 554.114, F.S.; revising the schedules of penalties
858 against boiler insurance companies, inspection
859 agencies, and other persons for specified violations;
860 amending s. 624.307, F.S.; providing that certain
861 regulated persons or unauthorized insurers are
862 required to appoint the Chief Financial Officer as
863 their agents, rather than as their attorneys, to
864 receive service of legal process; revising the method
865 in which the Chief Financial Officer makes the process
866 available; amending s. 624.422, F.S.; requiring
867 insurers to file with the department email-addresses,
868 rather than addresses, of specified persons;
869 conforming provisions to changes made by the act;
870 providing that a specified method in which process is
871 served upon the Chief Financial Officer is the sole
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Bill No. HB 959 (2022)
Amendment No. 1
872 method of service; amending s. 624.423, F.S.; revising
873 procedures for service of process; requiring the Chief
874 Financial Officer to promptly notify certain persons
875 of the process and to make the process available to
876 such persons through a specified method; revising
877 method by which records are retained; amending s.
878 626.937, F.S.; conforming provisions to changes made
879 by the act; amending s. 48.151, F.S.; providing an
880 exception to service of process on public entities
881 under certain circumstances; requiring the department
882 to create a secure online portal as the sole means to
883 accept certain service of process; amending s.
884 624.610, F.S.; conforming provisions to changes made
885 by the act; amending s. 626.906, F.S.; conforming
886 provisions to changes made by the act; amending s.
887 626.912, F.S.; conforming provisions to changes made
888 by the act; amending s. 626.937, F.S.; conforming
889 provisions to changes made by the act; amending s.
890 626.015,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 2
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Insurance & Banking
2 Subcommittee
3 Representative LaMarca offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 1996-2042 and insert:
7 Section 57. Paragraph (d) of subsection (2) and paragraphs
8 (b), (c), and (e) of subsection (3) of section 766.105, Florida
9 Statutes, are amended, and paragraph (i) is added to subsection
10 (3) and subsection (4) is added to that section, to read:
11 766.105 Florida Patient's Compensation Fund.—
12 (2) COVERAGE.—
13 (d)1. Any health care provider who participates in the
14 fund and who does not meet the provisions of paragraph (b) shall
15 not be covered by the fund.
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Bill No. HB 959 (2022)
Amendment No. 2
16 2. Annually, the Agency for Health Care Administration
17 shall require documentation by each hospital that such hospital
18 is in compliance, and will remain in compliance, with the
19 provisions of this section. The agency shall review the
20 documentation and then deliver the documentation to the board of
21 governors. At least 60 days before the time a license will be
22 issued or renewed, the agency shall request from the board of
23 governors a certification that each hospital is in compliance
24 with the provisions of this section. The board of governors
25 shall not be liable under the law for any erroneous
26 certification. The agency may not issue or renew the license of
27 any hospital which has not been certified by the board of
28 governors. The license of any hospital that fails to remain in
29 compliance or fails to provide such documentation shall be
30 revoked or suspended by the agency.
31 (3) THE FUND.—
32 (b) Fund administration and operation.—
33 1. The fund shall operate subject to the supervision and
34 approval of the Chief Financial Officer or his or her designee a
35 board of governors consisting of a representative of the
36 insurance industry appointed by the Chief Financial Officer, an
37 attorney appointed by The Florida Bar, a representative of
38 physicians appointed by the Florida Medical Association, a
39 representative of physicians' insurance appointed by the Chief
40 Financial Officer, a representative of physicians' self -
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 2
41 insurance appointed by the Chief Financial Officer, two
42 representatives of hospitals appointed by the Florida Hospital
43 Association, a representative of hospital insurance appointed by
44 the Chief Financial Officer, a representative of hospital self-
45 insurance appointed by the Chief Financial Officer, a
46 representative of the osteopathic physicians' or podiatric
47 physicians' insurance or self-insurance appointed by the Chief
48 Financial Officer, and a representative of the general public
49 appointed by the Chief Financial Officer. The board of governors
50 shall, during the first meeting after June 30 of each year,
51 choose one of its members to serve as chair of the board and
52 another member to serve as vice chair of the board. The members
53 of the board shall be appointed to serve terms of 4 years,
54 except that the initial appointments of a representative of the
55 general public by the Chief Financial Officer, an attorney by
56 The Florida Bar, a representative of physicians by the Florida
57 Medical Association, and one of the two representatives of the
58 Florida Hospital Association shall be for terms of 3 years;
59 thereafter, such representatives shall be appointed for terms of
60 4 years. Subsequent to initial appointments for 4-year terms,
61 the representative of the osteopathic physicians' or podiatric
62 physicians' insurance or self-insurance appointed by the Chief
63 Financial Officer and the representative of hospital self-
64 insurance appointed by the Chief Financial Officer shall be
65 appointed for 2-year terms; thereafter, such representatives
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 2
66 shall be appointed for terms of 4 years. Each appointed member
67 may designate in writing to the chair an alternate to act in the
68 member's absence or incapacity. A member of the board, or the
69 member's alternate, may be reimbursed from the assets of the
70 fund for expenses incurred by him or her as a member, or
71 alternate member, of the board and for committee work, but he or
72 she may not otherwise be compensated by the fund for his or her
73 service as a board member or alternate.
74 2. There shall be no liability on the part of, and no
75 cause of action of any nature shall arise against, the fund or
76 its agents or employees, professional advisers or con sultants,
77 the Chief Financial Officer or his or her designee members of
78 the board of governors or their alternates, or the Department of
79 Financial Services or the Office of Insurance Regulation of the
80 Financial Services Commission or their representatives for any
81 action taken by them in the performance of their powers and
82 duties pursuant to this section.
83 (c) Powers of the fund.—The fund has the power to:
84 1. Sue and be sued, and appear and defend, in all actions
85 and proceedings in its name to the same extent as a natural
86 person.
87 2. Adopt, change, amend, and repeal a plan of operation,
88 not inconsistent with law, for the regulation and administration
89 of the affairs of the fund. The plan and any changes thereto
90 shall be filed with the Office of Insurance Regulation of the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 2
91 Financial Services Commission and are all subject to its
92 approval before implementation by the fund. All fund members,
93 board members, and employees shall comply with the plan of
94 operation.
95 3. Have and exercise all powers necessary or convenient to
96 effect any or all of the purposes for which the fund is created.
97 4. Enter into such contracts as are necessary or proper to
98 carry out the provisions and purposes of this section.
99 5. Employ or retain such persons as are necessary to
100 perform the administrative and financial transactions and
101 responsibilities of the fund and to perform other necessary or
102 proper functions unless prohibited by law.
103 6. Take such legal action as may be necessary to avoid
104 payment of improper claims.
105 7. Indemnify any employee, agent, member of the board of
106 governors or his or her alternate, or person acting on behalf of
107 the fund in an official capacity, for expenses, including
108 attorney's fees, judgments, fines, and amounts paid in
109 settlement actually and reasonably incurred by him or her in
110 connection with any action, suit, or proceeding, including any
111 appeal thereof, arising out of his or her capacity in acting on
112 behalf of the fund, if he or she acted in good faith and in a
113 manner he or she reasonably believed to be in, or not opposed
114 to, the best interests of the fund and, with respect to any
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 2
115 criminal action or proceeding, he or she had reasonable cause to
116 believe his or her conduct was lawful.
117 (e) Fund accounting and audit.—
118 1. Money shall be withdrawn from the fund only upon a
119 voucher as authorized by the Chief Financial Officer or his or
120 her designee board of governors.
121 2. All books, records, and audits of the fund shall be
122 open for reasonable inspection to the general public, except
123 that a claim file in possession of the fund, fund members, and
124 their insurers is confidential and exempt from the provisions of
125 s. 119.07(1) and s. 24(a), Art. I of the State Constitution
126 until termination of litigation or settlement of the claim,
127 although medical records and other portions of the claim file
128 may remain confidential and exempt as otherwise provided by law.
129 Any book, record, document, audit, or asset acquired by,
130 prepared for, or paid for by the fund is subject to the
131 authority of the Chief Financial Officer or his or her designee
132 board of governors, which shall be responsible therefor.
133 3. Persons authorized to receive deposits, issue vouchers,
134 or withdraw or otherwise disburse any fund moneys shall post a
135 blanket fidelity bond in an amount reasonably sufficient to
136 protect fund assets. The cost of such bond shall be paid from
137 the fund.
138 4. Annually, the fund shall furnish, upon request, audited
139 financial reports to any fund participant and to the Office of
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 2
140 Insurance Regulation and the Joint Legislative Auditing
141 Committee. The reports shall be prepared in accordance with
142 accepted accounting procedures and shall include income and such
143 other information as may be required by the Office of Insurance
144 Regulation or the Joint Legislative Auditing Committee.
145 5. Any money held in the fund shall be invested in
146 interest-bearing investments by the board of governors of the
147 fund as administrator. However, in no case may any such money be
148 invested in the stock of any insurer participating in the Joint
149 Underwriting Association authorized by s. 627.351(4) or in the
150 parent company of, or company owning a controlling interest in,
151 such insurer. All income derived from such investments shall be
152 credited to the fund.
153 6. Any health care provider participating in the fund may
154 withdraw from such participation only at the end of a fiscal
155 year; however, such health care provider shall remain subject to
156 any assessment or any refund pertaining to any year in which
157 such member participated in the fund.
158 (i) Dissolution of the fund.—The fund shall operate
159 subject to the supervision of the Chief Financial Officer or his
160 or her designee, pursuant to the policies and procedures and
161 under the auspices of the Department of Financial Services'
162 Division of Rehabilitation and Liquidation, until the department
163 executes a legal dissolution of the fund on or before December
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 2
164 31, 2023. Before the legal dissolution of the fund, the
165 Department of Financial Services must:
166 1. Obtain all existing records and retain necessary
167 records of the fund pursuant to law.
168 2. Identify all remaining property held by the fund and
169 attempt to return such property to its owners and, for property
170 that cannot be returned to the owner, transfer such property to
171 the Department of Financial Services' Division of Unclaimed
172 Property.
173 3. Make a final accounting of the finances of the fund.
174 4. Ensure that the fund has met all its obligations
175 pursuant to structured settlements, annuities, or other
176 instruments established to pay covered claims and, if the fund
177 has not done so, attempt to meet such obligations before final
178 and complete dissolution of the fund.
179 5. Sell or otherwise dispose of all physical assets of the
180 fund.
181 6. Execute a legal dissolution of the fund.
182 7. Transfer any remaining money or assets of the fund to
183 the Chief Financial Officer for deposit in the General Revenue
184 Fund.
185 (4) REPEAL.—This section is repealed January 1, 2024.
186 Section 58. Paragraph (b) of subsection (1) of section
187 945.6041, Florida Statutes, is amended to read:
188 945.6041 Inmate medical services.—
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Bill No. HB 959 (2022)
Amendment No. 2
189 (1) As used in this section, the term:
190 (b) "Health care provider" means:
191 1. A hospital licensed under chapter 395.
192 2. A physician or physician assistant licensed under
193 chapter 458.
194 3. An osteopathic physician or physician assistant
195 licensed under chapter 459.
196 4. A podiatric physician licensed under chapter 461.
197 5. A health maintenance organization certificated under
198 part I of chapter 641.
199 6. An ambulatory surgical center licensed under chapter
200 395.
201 7. A professional association, partnership, corporation,
202 joint venture, or other association established by the
203 individuals set forth in subparagraphs 2., 3., and 4. for
204 professional activity.
205 8. Other medical facility.
206 a. As used in this subparagraph, the term "other medical
207 facility" means:
208 (I) A facility the primary purpose of which is to provide
209 human medical diagnostic services, or a facility providing
210 nonsurgical human medical treatment which discharges patients on
211 the same working day that the patients are admitted; and
212 (II) A facility that is not part of a hospital.
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Bill No. HB 959 (2022)
Amendment No. 2
213 b. The term does not include a facility existing for the
214 primary purpose of performing terminations of pregnancy, or an
215 office maintained by a physician or dentist for the practice of
216 medicine has the same meaning as provided in s. 766.105.
217 Section 59. Paragraph (a) of subsection (1) of section
218 985.6441, Florida Statutes, is amended to read:
219 985.6441 Health care services.—
220 (1) As used in this section, the term:
221 (a) "Health care provider" means:
222 1. A hospital licensed under chapter 395.
223 2. A physician or physician assistant licensed under
224 chapter 458.
225 3. An osteopathic physician or physician assistant
226 licensed under chapter 459.
227 4. A podiatric physician licensed under chapter 461.
228 5. A health maintenance organization certificated under
229 part I of chapter 641.
230 6. An ambulatory surgical center licensed under chapter
231 395.
232 7. A professional association, partnership, corporation,
233 joint venture, or other association established by the
234 individuals set forth in subparagraphs 2., 3., and 4. for
235 professional activity
236 8. Other medical facility.
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Bill No. HB 959 (2022)
Amendment No. 2
237 a. As used in this subparagraph, the term "other medical
238 facility" means:
239 (I) A facility the primary purpose of which is to provide
240 human medical diagnostic services, or a facility providing
241 nonsurgical human medical treatment which discharges patients on
242 the same working day that the patients are admitted; and
243 (II) A facility that is not part of a hospital.
244 b. The term does not include a facility existing for the
245 primary purpose of performing terminations of pregnancy, or an
246 office maintained by a physician or dentist for the practice of
247 medicine has the same meaning as provided in s. 766.105.
248 Section 60. 395.1061, Florida Statutes, is created to
249 read:
250 395.1061 Professional liability coverage.—
251 (1) As used in this section, the term:
252 (a) "Committee" means a committee or board of a hospital
253 established to make recommendations, policies, or decisions
254 regarding patient institutional utilization, patient treatment,
255 or institutional staff privileges or to perform other
256 administrative or professional purposes or functions.
257 (b) "Covered individuals" means the officers; trustees;
258 volunteer workers; trainees; committee members, including
259 physicians, osteopathic physicians, podiatric physicians, and
260 dentists; and employees of the hospital other than employed
261 physicians licensed under chapter 458, physician assistants
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 2
262 licensed under chapter 458, osteopathic physicians licensed
263 under chapter 459, dentists licensed under chapter 466, and
264 podiatric physicians licensed under chapter 461. However, with
265 respect to a hospital, the term also includes: house physicians,
266 interns, employed physician residents in a resident training
267 program, and physicians performing purely administrative duties
268 for the hospital instead of treating patients. This coverage
269 applies to the hospital and those included in the definition of
270 health care provider at s. 985.6441(1)(a), F.S.
271 (c) "Hospital system" means two or more hospitals
272 associated by common ownership or corporate affiliation.
273 (d) "House physician" means any physician, osteopathic
274 physician, podiatric physician, or dentist at a hospital,
275 except:
276 1. The physician, osteopathic physician, podiatric
277 physician, or dentist who has staff privileges at a hospital,
278 provides emergency room services, or performs a medical or
279 dental service for a fee; or
280 2. An anesthesiologist, pathologist, or radiologist.
281 (e) "Occurrence" means an accident or incident, including
282 continuous or repeated exposure to certain harmful conditions,
283 which results in patient injuries
284 (f) "Per claim" means all claims per patient arising out
285 of an occurrence.
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Bill No. HB 959 (2022)
Amendment No. 2
286 (2) Each hospital, unless exempted under paragraph (3)(b),
287 must demonstrate financial responsibility for maintaining
288 professional liability coverage to pay claims and costs
289 ancillary thereto arising out of the rendering of or failure to
290 render medical care or services and for bodily injury or
291 property damage to the person or property of any patient arising
292 out of the activities of the hospital or arising out of the
293 activities of covered individuals, to the satisfaction of the
294 Agency for Health Care Administration, by meeting one of the
295 following requirements:
296 (a) Establish an escrow account in an amount equivalent to
297 $10,000 per claim for each hospital bed in such hospital, not to
298 exceed a $2.5 million annual aggregate.
299 (b) Obtain professional liability coverage in an amount
300 equivalent to $10,000 or more per claim for each bed in such
301 hospital from a private insurer, from the Joint Underwriting
302 Association established under s. 627.351(4), or through a plan
303 of self-insurance as provided in s. 627.357. However, no
304 hospital may be required to obtain such coverage in an amount
305 exceeding a $2.5 million annual aggregate.
306 (3)(a) Each hospital, unless exempted under paragraph (b),
307 shall provide evidence of compliance and remain in continuous
308 compliance with the professional liability coverage provisions
309 of this section. The Agency for Health Care Administration may
310 not issue or renew the license of any hospital that does not
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 2
311 provide evidence of compliance or that provides evidence of
312 insufficient coverage.
313 (b) Any hospital operated by an agency, subdivision, or
314 instrumentality of the state is exempt from the provisions of
315 this section.
316 (4) A hospital system may meet the professional liability
317 coverage requirement with an escrow account, insurance, or self-
318 insurance policies if the $10,000 per claim and $2.5 million
319 annual aggregate is met for each hospital in the hospital
320 system.
321
322 -----------------------------------------------------
323 T I T L E A M E N D M E N T
324 Remove lines 177-184 and insert:
325 amending s. 766.105, F.S.; deleting certain provisions relating
326 to the Agency for Health Care Administration; requiring that the
327 Florida Patient's Compensation Fund be subject to the
328 supervision and approval of the Chief Financial Officer rather
329 than a board of governors and be dissolved on or before a
330 specified date; deleting certain provisions relating to the
331 board of governors; providing duties of the department before
332 the legal dissolution of the fund; requiring that provisions
333 relating to the fund be repealed on a specified date; amending
334 ss. 945.6041 and 985.6441, F.S.; conforming provisions to
335 changes made by the act; creating s. 395.1061, F.S.; providing
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 959 (2022)
Amendment No. 2
336 definitions; requiring certain hospitals and hospital systems to
337 demonstrate financial responsibility for maintaining
338 professional liability coverage; prohibiting the agency from
339 issuing or renewing licenses of hospitals under certain
340 circumstances; providing exemptions from professional liability
341 coverage requirements; transferring the Stop
342
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