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PCS for CS/HB 487 — the Department of Financial Services

Summary

A Florida House of Representatives proposed committee substitute, PCS for CS/HB 487 (2023), a bill relating to the Department of Financial Services. Its title lists amendments to s. 20.121, F.S. on the Division of Investigative and Forensic Services, s. 112.215, F.S. on deferred compensation plans, and s. 440.13, F.S. on workers' compensation reimbursement schedules. The title also lists changes to insurance agent and adjuster licensing and discipline, board membership of several guaranty associations, a direct-support organization for the Division of State Fire Marshal under s. 633.1423, F.S., and bail bond agent licensing. The closing section ratifies Rule 69L-7.020, Florida Administrative Code, effective July 1, 2023, and Section 75 provides that the act takes effect upon becoming a law. The bill runs 131 pages.

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“PCS for CS/HB 487 — the Department of Financial Services.” Original at www.flhouse.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/committee-fe0f19becc49da7e/, SHA-256 37ca9b58e2637c109489cab8fd1972fffd99ce836aa71c43a3be9ed3ae0a9727.

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           PCS for CS/HB 487                                                                                    2023




    1                                         A bill to be entitled
    2              An act relating to the Department of Financial
    3              Services; amending s. 20.121, F.S.; revising powers
    4              and duties of the department's Division of
    5              Investigative and Forensic Services; deleting the
    6              department's Strategic Markets Research and Assessment
    7              Unit; amending s. 112.215, F.S.; redefining the term
    8              "employee" as "government employee" and revising the
    9              definition of the term; revising eligibility for plans
10                 of deferred compensation established by the Chief
11                 Financial Officer; revising the membership of the
12                 Deferred Compensation Advisory Council; making
13                 technical changes; amending s. 215.55952, F.S.;
14                 revising the initial date and subsequent intervals in
15                 which the Chief Financial Officer must provide the
16                 Governor and the Legislature with a report on the
17                 economic impact of certain hurricanes; amending s.
18                 274.01, F.S.; revising the definition of the term
19                 "governmental unit" for purposes of ch. 274, F.S.;
20                 amending s. 440.13, F.S.; authorizing, rather than
21                 requiring, a judge of compensation claims to order an
22                 injured employee's evaluation by an expert medical
23                 advisor under certain circumstances; revising the
24                 schedules of maximum reimbursement allowances
25                 determined by the three-member panel under the

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        PCS for CS/HB 487                                                                                    2023




26              Workers' Compensation Law; revising reimbursement
27              requirements for certain providers; requiring the
28              department to annually notify carriers and self-
29              insurers of certain schedules; requiring the
30              publication of a schedule in a certain manner;
31              providing construction; revising factors the panel
32              must consider in establishing the uniform schedule of
33              maximum reimbursement allowances; deleting certain
34              standards for practice parameters; amending s.
35              440.385, F.S.; revising eligibility requirements for
36              the board of directors of the Florida Self-Insurers
37              Guaranty Association, Incorporated; authorizing the
38              Chief Financial Officer to remove a director under
39              certain circumstances; specifying requirements for,
40              and restrictions on, directors; prohibiting directors
41              and employees of the association from knowingly
42              accepting certain gifts or expenditures; providing
43              penalties; amending s. 497.005, F.S.; adding and
44              revising definitions for purposes of the Florida
45              Funeral, Cemetery, and Consumer Services Act; amending
46              s. 624.1265, F.S.; revising conditions for a nonprofit
47              religious organization to be exempt from requirements
48              of the Florida Insurance Code; amending s. 624.501,
49              F.S.; deleting an application filing and license fee
50              for reinsurance intermediaries; amending s. 626.015,

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        PCS for CS/HB 487                                                                                    2023




51              F.S.; revising the definition of the term
52              "association" for purposes of part I of ch. 626, F.S.;
53              amending s. 626.171, F.S.; deleting the authority of
54              designated examination centers to take fingerprints of
55              applicants for a license as an agent, customer
56              representative, adjuster, service representative, or
57              reinsurance intermediary; amending s. 626.173, F.S.;
58              providing that a certain notice requirement for
59              certain licensed insurance agencies ceasing the
60              transacting of insurance does not apply to certain
61              kinds of insurance; amending s. 626.207, F.S.;
62              revising violations for which the department must
63              adopt rules establishing specific penalties; amending
64              s. 626.221, F.S.; adding a certification that exempts
65              an applicant for license as an all-lines adjuster from
66              an examination requirement; amending s. 626.2815,
67              F.S.; revising continuing education requirements for
68              certain insurance representatives; amending s.
69              626.321, F.S.; deleting certain requirements for, and
70              restrictions on, licensees of specified limited
71              licenses; adding a limited license for transacting
72              preneed funeral agreement insurance; specifying
73              conditions for issuing such license without an
74              examination; amending s. 626.611, F.S.; revising
75              specified grounds for compulsory disciplinary actions

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         PCS for CS/HB 487                                                                                    2023




 76              taken by the department against insurance
 77              representatives; amending s. 626.621, F.S.; adding
 78              grounds for discretionary disciplinary actions taken
 79              by the department against insurance representatives;
 80              amending s. 626.7492, F.S.; revising definitions of
 81              the terms "producer" and "reinsurance intermediary
 82              manager"; revising licensure requirements for
 83              reinsurance intermediary brokers and reinsurance
 84              intermediary managers; deleting the authority of the
 85              department to refuse to issue a reinsurance
 86              intermediary license under certain circumstances;
 87              amending s. 626.752, F.S.; requiring the department to
 88              suspend the authority of an insurer or employer to
 89              appoint licensees under certain circumstances relating
 90              to the exchange of insurance business; amending s.
 91              626.785, F.S.; authorizing certain persons to obtain a
 92              limited license to sell only policies of life
 93              insurance covering the expense of a prearrangement for
 94              funeral services or merchandise; amending ss. 626.793
 95              and 626.837, F.S.; requiring the department to suspend
 96              the authority of an insurer or employer to appoint
 97              licensees under certain circumstances relating to the
 98              acceptance of excess or rejected insurance business;
 99              amending s. 626.8411, F.S.; providing that certain
100              notice requirements do not apply to title insurance

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         PCS for CS/HB 487                                                                                    2023




101              agents or title insurance agencies; amending s.
102              626.8437, F.S.; adding grounds for compulsory
103              disciplinary actions taken by the department again st a
104              title insurance agent or agency; amending s. 626.844,
105              F.S.; adding grounds for discretionary disciplinary
106              actions taken by the department against a title
107              insurance agent or agency; amending s. 626.8473, F.S.;
108              revising requirements for engaging in the business as
109              an escrow agent in connection with real estate closing
110              transactions; amending s. 626.854, F.S.; revising
111              applicability of a prohibited act relating to public
112              insurance adjusters; amending s. 626.874, F.S.;
113              revising eligibility requirements for the department's
114              issuance of licenses to catastrophe or emergency
115              adjusters; revising grounds on which the department
116              may deny such license; amending s. 626.9892, F.S.;
117              revising a condition and adding violations for which
118              the department may pay rewards under the Anti-Fraud
119              Reward Program; amending s. 626.9957, F.S.; providing
120              for the expiration of a health coverage navigator's
121              registration under certain circumstances; specifying a
122              restriction on expired registrations; amending s.
123              627.351, F.S.; revising requirements for membership of
124              the Florida Medical Malpractice Joint Underwriting
125              Association; specifying a requirement for filling

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         PCS for CS/HB 487                                                                                    2023




126              vacancies; authorizing the Chief Financial Officer to
127              remove board members under certain circumstances;
128              providing requirements for, and restrictions on, board
129              members; providing penalties; amending s. 627.7015,
130              F.S.; providing that a disputed property insurance
131              claim is not eligible for mediation until certain
132              conditions are met; providing that fees for a
133              rescheduled mediation conference be assessed by the
134              department rather than the administrator; authorizing
135              the department to suspend an insurer's authority to
136              appoint licensees under certain circumstances;
137              amending s. 627.7074, F.S.; authorizing the department
138              to designate, by written contract or agreement, an
139              entity or a person to administer the alternative
140              dispute resolution process for sinkhole insurance
141              claims; amending s. 627.745, F.S.; revising
142              requirements and procedures for the mediation of
143              personal injury claims under a motor vehicle insurance
144              policy; requiring the department to adopt specified
145              rules relating to a motor vehicle claims insurance
146              mediation program; authorizing the department to
147              designate a person or entity to serve as
148              administrator; amending s. 631.141, F.S.; authorizing
149              the department in receivership proceedings to take
150              certain actions as a domiciliary receiver; amending s.

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         PCS for CS/HB 487                                                                                    2023




151              631.252, F.S.; revising conditions under which
152              policies and contracts of insolvent insurers are
153              canceled; amending ss. 631.56, 631.716, 631.816, and
154              631.912, F.S.; revising membership eligibility
155              requirements for the Florida Insurance Guaranty
156              Association, the Florida Life and Health Insurance
157              Guaranty Association, the Florida Health Maintenance
158              Organization Consumer Assistance Plan, and the Florida
159              Workers' Compensation Insurance Guaranty Association,
160              Incorporated, respectively; authorizing the Chief
161              Financial Officer to remove a board member under
162              certain circumstances; specifying requirements for, on
163              restrictions on, board members; providing penalties;
164              creating s. 633.1423, F.S.; defining the term
165              "organization"; authorizing the Division of State Fire
166              Marshal to establish a direct-support organization;
167              specifying the purpose of and requirements for the
168              organization; specifying requirements for the
169              organization's written contract and board of
170              directors; providing requirements for the use of
171              property, annual budgets and reports, an annual audit,
172              and the division's receipt of proceeds; authorizing
173              moneys received to be held in a depository account;
174              providing for future repeal; amending s. 634.181,
175              F.S.; adding grounds for compulsory disciplinary

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         PCS for CS/HB 487                                                                                    2023




176              actions by the department against motor vehicle
177              service agreement salespersons; requiring the
178              department to immediately temporarily suspend a
179              license or appointment under certain circumstances;
180              prohibiting a person from transacting insurance
181              business after such suspension; authorizing the
182              department to adopt rules; amending s. 634.191, F.S.;
183              revising grounds for discretionary disciplinary
184              actions by the department against motor vehicle
185              service agreement salespersons; requiring salespersons
186              to submit certain documents to the department;
187              authorizing the department to adopt rules; amending s.
188              634.320, F.S.; revising grounds for compulsory
189              disciplinary actions by the department against home
190              warranty association sales representatives; requiring
191              the department to immediately temporarily suspend a
192              license or appointment under certain circumstances;
193              prohibiting a person from transacting insurance
194              business after such suspension; authorizing the
195              department to adopt rules; amending s. 634.321, F.S.;
196              revising grounds for discretionary disciplinary
197              actions by the department against home warranty
198              association sales representatives; authorizing the
199              department to adopt rules; amending s. 634.419, F.S.;
200              providing that specified home solicitation sale

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         PCS for CS/HB 487                                                                                    2023




201              requirements do not apply to certain persons relating
202              to the solicitation of service warranty or related
203              service or product sales; amending s. 634.422, F.S.;
204              revising grounds for compulsory disciplinary actions
205              by the department against service warranty association
206              sales representatives; requiring the department to
207              immediately temporarily suspend a license or
208              appointment under certain circumstances; prohibiting a
209              person from transacting insurance business after such
210              suspension; authorizing the department to adopt rules;
211              amending s. 634.423, F.S.; revising grounds for
212              discretionary disciplinary actions by the department
213              against service warranty association sales
214              representatives; authorizing the department to adopt
215              rules; reordering and amending s. 648.25, F.S.;
216              defining and redefining terms; amending s. 648.26,
217              F.S.; authorizing certain actions by the department or
218              the Office of Insurance Regulation relating to certain
219              confidential records relating to bail bond agents;
220              amending s. 648.27, F.S.; deleting a provision
221              relating to the continuance of a temporary bail bond
222              agent license; amending s. 648.285, F.S.; revising
223              requirements, conditions, and procedures for a bail
224              bond agency license; providing applicability;
225              conforming a provision to changes made by the act;

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         PCS for CS/HB 487                                                                                    2023




226              amending s. 648.30, F.S.; revising requirements and
227              conditions for the licensure and appointment as a bail
228              bond agent or bail bond agency; conforming a provision
229              to changes made by the act; amending s. 648.31, F.S.;
230              specifying that there is no fee for the issuance of
231              any appointment to a bail bond agency; conforming a
232              provision to changes made by the act; amending s.
233              648.34, F.S.; revising qualifications for a bail bond
234              agent license; conforming a provision to changes made
235              by the act; amending s. 648.355, F.S.; deleting
236              provisions relating to temporary licenses as a limited
237              surety agent or professional bail bond agent;
238              specifying requirements for an individual licensed as
239              a temporary bail bond agent to qualify for bail bond
240              agent license; prohibiting the department from issuing
241              a temporary bail bond agent license beginning on a
242              specified date; providing construction relating to
243              existing temporary licenses; amending s. 648.382,
244              F.S.; revising requirements for the appointment of
245              bail bond agents or bail bond agencies; conforming a
246              provision to changes made by the act; amending s.
247              648.386, F.S.; defining the term "classroom
248              instruction"; revising requirements for approval and
249              certification as an approved limited surety agent and
250              professional bail bond agent continuing education

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         PCS for CS/HB 487                                                                                    2023




251              school; amending s. 648.387, F.S.; renaming primary
252              bail bond agents as bail bond agents in charge;
253              revising the department's disciplinary authority;
254              revising prohibited actions and the applicability of
255              such prohibitions; providing for the automatic
256              expiration of a bail bond agency's license under
257              certain circumstances; creating s. 648.3875, F.S.;
258              providing requirements for applying for designation as
259              a bail bond agent in charge; amending s. 648.39, F.S.;
260              revising applicability of provisions relating to
261              termination of appointments of certain agents and
262              agencies; repealing s. 648.41, F.S., relating to
263              termination of appointment of temporary bail bond
264              agents; amending s. 648.42, F.S.; conforming a
265              provision to changes made by the act; making a
266              technical change; amending s. 648.44, F.S.; revising
267              applicability of prohibited acts; revising and
268              specifying prohibited acts of bail bond agents and
269              bail bond agencies; conforming provisions to changes
270              made by the act; amending s. 648.441, F.S.; revising
271              applicability of a prohibition against furnishing
272              supplies to an unlicensed bail bond agent; amending s.
273              648.46, F.S.; authorizing certain actions by the
274              department or the office relating to certain
275              confidential records relating to bail bond agents;

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         PCS for CS/HB 487                                                                                    2023




276              amending s. 648.50, F.S.; revising applicability of
277              provisions relating to disciplinary actions taken by
278              the department; conforming provisions to changes made
279              by the act; amending s. 717.135, F.S.; revising a
280              requirement for, and a prohibition on, claimants'
281              representatives relating to unclaimed property
282              recovery agreements and purchase agreements; providing
283              construction; amending s. 843.021, F.S.; revising a
284              defense to an unlawful possession of a concealed
285              handcuff key; amending ss. 631.152, 631.398, and
286              903.09, F.S.; conforming cross-references; ratifying a
287              specified rule of the Florida Administrative Code
288              relating to the Florida Workers' Compensation Health
289              Care Provider Reimbursement Manual; providing
290              construction; providing effective dates.
291
292      Be It Enacted by the Legislature of the State of Florida:
293
294              Section 1.         Paragraph (e) of subsection (2) and subsection
295      (6) of section 20.121, Florida Statutes, are amended to read:
296              20.121        Department of Financial Services.—There is created
297      a Department of Financial Services.
298              (2)         DIVISIONS.—The Department of Financial Services shall
299      consist of the following divisions and office:
300              (e)         The Division of Investigative and Forensic Services,

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         PCS for CS/HB 487                                                                                    2023




301      which shall function as a criminal justice agency for purposes
302      of ss. 943.045-943.08. The division may initiate and conduct
303      investigations into any matter under the jurisdiction of the
304      Chief Financial Officer and Fire Marshal within or outside of
305      this state as it deems necessary. If, during an investigation,
306      the division has reason to believe that any criminal law of this
307      state or the United States has or may have been violated, it
308      shall refer any records tending to show such violation to state
309      or federal law enforcement and, if applicable, federal or
310      prosecutorial agencies and shall provide investigative
311      assistance to those agencies as appropriate required. The
312      division shall include the following bureaus and office:
313              1.      The Bureau of Forensic Services;
314              2.      The Bureau of Fire, Arson, and Explosives
315      Investigations;
316              3.      The Office of Fiscal Integrity, which shall have a
317      separate budget;
318              4.      The Bureau of Insurance Fraud; and
319              5.      The Bureau of Workers' Compensation Fraud.
320              (6)         STRATEGIC MARKETS RESEARCH AND ASSESSMENT UNIT.—The
321      Strategic Markets Research and Assessment Unit is established
322      within the Department of Financial Services. The Chief Financial
323      Officer or his or her designee shall report on September 1,
324      2008, and quarterly thereafter, to the Cabinet, the President of
325      the Senate, and the Speaker of the House of Representatives on

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         PCS for CS/HB 487                                                                                    2023




326      the status of the state's financial services markets. At a
327      minimum, the report must include a summary of issues, trends,
328      and threats that broadly impact the condition of th e financial
329      services industries, along with the effect of such conditions on
330      financial institutions, the securities industries, other
331      financial entities, and the credit market. The Chief Financial
332      Officer shall also provide findings and recommendations
333      regarding regulatory and policy changes to the Cabinet, the
334      President of the Senate, and the Speaker of the House of
335      Representatives.
336              Section 2.         Subsections (2) and (4), paragraph (a) of
337      subsection (8), and subsection (12) of section 112.215, Florida
338      Statutes, are amended to read:
339              112.215        Government employees; deferred compensation
340      program.—
341              (2)         For the purposes of this section, the term "government
342      employee" means any person employed, whether appointed, elected,
343      or under contract, by providing services for the state or any
344      governmental unit of the state, including, but not limited to,;
345      any state agency; any or county, municipality, or other
346      political subdivision of the state; any special district or
347      water management district, as the terms are defined in s.
348      189.012 municipality; any state university or Florida College
349      System institution, as the terms are defined in s. 1000.21(6)
350      and (3), respectively board of trustees; or any constitutional

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         PCS for CS/HB 487                                                                                    2023




351      county officer under s. 1(d), Art. VIII of the State
352      Constitution for which compensation or statutory fees are paid.
353              (4)(a)        The Chief Financial Officer, with the approval of
354      the State Board of Administration, shall establish a state such
355      plan or plans of deferred compensation for government state
356      employees and may include persons employed by a state university
357      as defined in s. 1000.21, a special district as defined in s.
358      189.012, or a water management district as defined in s.
359      189.012, including all such investment vehicles or products
360      incident thereto, as may be available through, or offered by,
361      qualified companies or persons, and may approve one or more such
362      plans for implementation by and on behalf of the state and its
363      agencies and employees.
364              (b)         If the Chief Financial Officer deems it advisable, he
365      or she shall have the power, with the approval of the State
366      Board of Administration, to create a trust or other special
367      funds for the segregation of funds or assets resulting from
368      compensation deferred at the request of government employees
369      participating in of the state plan or its agencies and for the
370      administration of such program.
371              (c)         The Chief Financial Officer, with the approval of the
372      State Board of Administration, may delegate responsibility for
373      administration of the state plan to a person the Chief Financial
374      Officer determines to be qualified, compensate such person, and,
375      directly or through such person or pursuant to a collective

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         PCS for CS/HB 487                                                                                    2023




376      bargaining agreement, contract with a private corporation or
377      institution to provide such services as may be part of any such
378      plan or as may be deemed necessary or proper by the Chief
379      Financial Officer or such person, including, but not limited to,
380      providing consolidated billing, individual and collective
381      recordkeeping and accountings, asset purchase, control, and
382      safekeeping, and direct disbursement of funds to employees or
383      other beneficiaries. The Chief Financial Officer may authorize a
384      person, private corporation, or institution to make direct
385      disbursement of funds under the state plan to an employee or
386      other beneficiary.
387              (d)         In accordance with such approved state plan, and upon
388      contract or agreement with an eligible government employee,
389      deferrals of compensation may be accomplished by payroll
390      deductions made by the appropriate officer or officers of the
391      state, with such funds being thereafter held and administered in
392      accordance with the plan.
393              (e)         The administrative costs of the deferred compensation
394      plan must be wholly or partially self-funded. Fees for such
395      self-funding of the state plan shall be paid by investment
396      providers and may be recouped from their respective plan
397      participants. Such fees shall be deposited in the Deferred
398      Compensation Trust Fund.
399              (8)(a)        There is created a Deferred Compensation Advisory
400      Council composed of eight seven members.

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         PCS for CS/HB 487                                                                                    2023




401              1.      One member shall be appointed by the Speaker of the
402      House of Representatives and the President of the Senate jointly
403      and shall be an employee of the legislative branch.
404              2.      One member shall be appointed by the Chief Justice of
405      the Supreme Court and shall be an employee of the judicial
406      branch.
407              3.      One member shall be appointed by the chair of the
408      Public Employees Relations Commission and shall be a nonexempt
409      public employee.
410              4.      The remaining five four members shall be employed by
411      the executive branch and shall be appointed as follows:
412              a.      One member shall be appointed by the Chancellor of the
413      State University System and shall be an employee of the
414      university system.
415              b.      One member shall be appointed by the Chief Financial
416      Officer and shall be an employee of the Chief Financial Officer.
417              c.      One member shall be appointed by the Governor and shall
418      be an employee of the executive branch.
419              d.      One member shall be appointed by the Executive Director
420      of the State Board of Administration and shall be an employee of
421      the State Board of Administration.
422              e.      One member shall be appointed by the Chancellor of the
423      Florida College System and shall be an employee of the Florida
424      College System.
425              (12)        The Chief Financial Officer may adopt any rule

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426      necessary to administer and implement this act with respect to
427      the state deferred compensation plan or plans for state
428      employees and persons employed by a state university as defined
429      in s. 1000.21, a special district as defined in s. 189.012, or a
430      water management district as defined in s. 189.012.
431              Section 3.         Section 215.55952, Florida Statutes, is amended
432      to read:
433              215.55952         Triennial Annual report on economic impact of a
434      1-in-100-year hurricane.—The Chief Financial Officer shall
435      provide a report on the economic impact on the state of a 1-in-
436      100-year hurricane to the Governor, the President of the Senate,
437      and the Speaker of the House of Representatives by March 1 ,
438      2025, and of each triennial year thereafter. The report shall
439      include an estimate of the short-term and long-term fiscal
440      impacts of such a storm on Citizens Property Insurance
441      Corporation, the Florida Hurricane Catastrophe Fund, the private
442      insurance and reinsurance markets, the state economy, and the
443      state debt. The report shall also include an analysis of the
444      average premium increase to fund a 1-in-100-year hurricane event
445      and list the average cost, in both a percentage and dollar
446      amount, impact to consumers on a county-level basis. The report
447      may also include recommendations by the Chief Financial Officer
448      for preparing for such a hurricane and reducing the economic
449      impact of such a hurricane on the state. In preparing the
450      analysis, the Chief Financial Officer shall coordinate with and

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         PCS for CS/HB 487                                                                                    2023




451      obtain data from the Office of Insurance Regulation, Citizens
452      Property Insurance Corporation, the Florida Hurricane
453      Catastrophe Fund, the Florida Commission on Hurricane Loss
454      Projection Methodology, the State Board of Administration, the
455      Office of Economic and Demographic Research, and other state
456      agencies.
457              Section 4.         Subsection (1) of section 274.01, Florida
458      Statutes, is amended to read:
459              274.01        Definitions.—The following words as used in this
460      act have the meanings set forth in the below subsections, unless
461      a different meaning is required by the context:
462              (1)         "Governmental unit" means the governing board,
463      commission, or authority of a county, a county agency, a
464      municipality, a special district as defined in s. 189.012 or
465      taxing district of the state, or the sheriff of the county.
466              Section 5.         Present subsections (15) and (16) of section
467      440.13, Florida Statutes, are redesignated as subsections (14)
468      and (15), respectively, and paragraph (c) of subsection (9),
469      subsection (12), and present subsection (14) of that section are
470      amended, to read:
471              440.13        Medical services and supplies; penalty for
472      violations; limitations.—
473              (9)         EXPERT MEDICAL ADVISORS.—
474              (c)         If there is disagreement in the opinions of the health
475      care providers, if two health care providers disagree on medical

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476      evidence supporting the employee's complaints or the need for
477      additional medical treatment, or if two health care providers
478      disagree that the employee is able to return to work, the
479      department may, and the judge of compensation claims may shall,
480      upon his or her own motion or within 15 days after receipt of a
481      written request by either the injured employee, the employer, or
482      the carrier, order the injured employee to be evaluated by an
483      expert medical advisor. The injured employee and the employer or
484      carrier may agree on the health care provider to serve as an
485      expert medical advisor. If the parties do not agree, the judge
486      of compensation claims shall select an expert medical advisor
487      from the department's list of certified expert medical advisors.
488      If a certified medical advisor within the relevant medical
489      specialty is unavailable, the judge of compensation claims shall
490      appoint any otherwise qualified health care provider to serve as
491      an expert medical advisor without obtaining the department's
492      certification. The opinion of the expert medical advisor is
493      presumed to be correct unless there is clear and convincing
494      evidence to the contrary as determined by the judge of
495      compensation claims. The expert medical advisor appointed to
496      conduct the evaluation shall have free and complete access to
497      the medical records of the employee. An employee who fails to
498      report to and cooperate with such evaluation forfeits
499      entitlement to compensation during the period of failure to
500      report or cooperate.

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         PCS for CS/HB 487                                                                                    2023




501              (12)        CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
502      REIMBURSEMENT ALLOWANCES.—
503              (a)         A three-member panel is created, consisting of the
504      Chief Financial Officer, or the Chief Financial Officer's
505      designee, and two members to be appointed by the Governor,
506      subject to confirmation by the Senate, one member who, on
507      account of present or previous vocation, employment , or
508      affiliation, shall be classified as a representative of
509      employers, the other member who, on account of previous
510      vocation, employment, or affiliation, shall be classified as a
511      representative of employees. The panel shall determine statewide
512      schedules of maximum reimbursement allowances for medically
513      necessary treatment, care, and attendance provided by
514      physicians, hospitals and, ambulatory surgical centers, work-
515      hardening programs, pain programs, and durable medical
516      equipment. The maximum reimbursement allowances for inpatient
517      hospital care shall be based on a schedule of per diem rates, to
518      be approved by the three-member panel no later than March 1,
519      1994, to be used in conjunction with a precertification manual
520      as determined by the department, including maximum hours in
521      which an outpatient may remain in observation status, which
522      shall not exceed 23 hours. All compensable charges for hospital
523      outpatient care shall be reimbursed at 75 percent of usual and
524      customary charges, except as otherwise provided by this
525      subsection. Annually, the three-member panel shall adopt

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         PCS for CS/HB 487                                                                                    2023




526      schedules of maximum reimbursement allowances for physicians,
527      hospital inpatient care, hospital outpatient care, and
528      ambulatory surgical centers, work-hardening programs, and pain
529      programs. A An individual physician, hospital or an, ambulatory
530      surgical center, pain program, or work-hardening program shall
531      be reimbursed either the agreed-upon contract price or the
532      maximum reimbursement allowance in the appropriate schedule.
533              (b)         It is the intent of the Legislature to increase the
534      schedule of maximum reimbursement allowances for selected
535      physicians effective January 1, 2004, and to pay for the
536      increases through reductions in payments to hospitals. Revisions
537      developed pursuant to this subsection are limited to the
538      following:
539              1.      Payments for outpatient physical, occupational, and
540      speech therapy provided by hospitals shall be reduced to the
541      schedule of maximum reimbursement allowances for these services
542      which applies to nonhospital providers.
543              (c)2.        Payments for scheduled outpatient nonemergency
544      radiological and clinical laboratory services that are not
545      provided in conjunction with a surgical procedure shall be
546      reduced to the schedule of maximum reimbursement allowances for
547      these services which applies to nonhospital providers.
548              (d)3.        Outpatient reimbursement for scheduled surgeries
549      shall be reduced from 75 percent of charges to 60 percent of
550      charges.

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         PCS for CS/HB 487                                                                                    2023




551              (e)1.       By July 1 of each year, the department shall notify
552      carriers and self-insurers of the physician and nonhospital
553      services schedule of maximum reimbursement allowances. The
554      notice must include publication of this schedule of maximum
555      reimbursement allowances on the division's website. This
556      schedule is not subject to approval by the three-member panel
557      and does not include reimbursement for prescription medication.
558              2.      Subparagraph 1. shall take effect January 1, following
559      the July 1, 2024, notice of the physician and nonhospital
560      services schedule of maximum reimbursement allowances which the
561      department provides to carriers and self-insurers.
562              (f)4.       Maximum reimbursement for a physician licensed under
563      chapter 458 or chapter 459 shall be increased to 110 percent of
564      the reimbursement allowed by Medicare, using appropriate codes
565      and modifiers or the medical reimbursement level adopted by the
566      three-member panel as of January 1, 2003, whichever is greater.
567              (g)5.       Maximum reimbursement for surgical procedures shall
568      be increased to 140 percent of the reimbursement allowed by
569      Medicare or the medical reimbursement level adopted by the
570      three-member panel as of January 1, 2003, whichever is greater.
571              (h)(c)       As to reimbursement for a prescription medication,
572      the reimbursement amount for a prescription shall be the average
573      wholesale price plus $4.18 for the dispensing fee. For
574      repackaged or relabeled prescription medications dispensed by a
575      dispensing practitioner as provided in s. 465.0276, the fee

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         PCS for CS/HB 487                                                                                    2023




576      schedule for reimbursement shall be 112.5 percent of the average
577      wholesale price, plus $8.00 for the dispensing fee. For purposes
578      of this subsection, the average wholesale price shall be
579      calculated by multiplying the number of units dispensed times
580      the per-unit average wholesale price set by the original
581      manufacturer of the underlying drug dispensed by the
582      practitioner, based upon the published manufacturer's average
583      wholesale price published in the Medi-Span Master Drug Database
584      as of the date of dispensing. All pharmaceutical claims
585      submitted for repackaged or relabeled prescription medications
586      must include the National Drug Code of the original
587      manufacturer. Fees for pharmaceuticals and pharmaceutical
588      services shall be reimbursable at the applicable fee schedule
589      amount except where the employer or carrier, or a service
590      company, third party administrator, or any entity acting on
591      behalf of the employer or carrier directly contracts with the
592      provider seeking reimbursement for a lower amount.
593              (i)(d)       Reimbursement for all fees and other charges for
594      such treatment, care, and attendance, including treatment, care,
595      and attendance provided by any hospital or other health care
596      provider, ambulatory surgical center, work-hardening program, or
597      pain program, must not exceed the amounts provided by the
598      uniform schedule of maximum reimbursement allowances as
599      determined by the panel or as otherwise provided in this
600      section. This subsection also applies to independent medical

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         PCS for CS/HB 487                                                                                    2023




601      examinations performed by health care providers under this
602      chapter. In determining the uniform schedule, the panel shall
603      first approve the data which it finds representative of
604      prevailing charges in the state for similar treatment, care, and
605      attendance of injured persons. Each health care provider, health
606      care facility, ambulatory surgical center, work-hardening
607      program, or pain program receiving workers' compensation
608      payments shall maintain records verifying their usual charges.
609      In establishing the uniform schedule of maximum reimbursement
610      allowances, the panel must consider:
611              1.      The levels of reimbursement for similar treatment,
612      care, and attendance made by other health care programs or
613      third-party providers;
614              2.      The impact upon cost to employers for providing a level
615      of reimbursement for treatment, care, and attendance which will
616      ensure the availability of treatment, care, and attendance
617      required by injured workers; and
618              3.      The financial impact of the reimbursement allowances
619      upon health care providers and health care facilities, including
620      trauma centers as defined in s. 395.4001, and its effect upon
621      their ability to make available to injured workers such
622      medically necessary remedial treatment, care, and attendance.
623      The uniform schedule of maximum reimbursement allowances must be
624      reasonable, must promote health care cost containment and
625      efficiency with respect to the workers' compensation health care

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626      delivery system, and must be sufficient to ensure availability
627      of such medically necessary remedial treatment, care, and
628      attendance to injured workers; and
629              4.      The most recent average maximum allowable rate of
630      increase for hospitals determined by the Health Care Board under
631      chapter 408.
632              (j)(e)       In addition to establishing the uniform schedule of
633      maximum reimbursement allowances, the panel shall:
634              1.      Take testimony, receive records, and collect data to
635      evaluate the adequacy of the workers' compensation fee schedu le,
636      nationally recognized fee schedules and alternative methods of
637      reimbursement to health care providers and health care
638      facilities for inpatient and outpatient treatment and care.
639              2.      Survey health care providers and health care facilities
640      to determine the availability and accessibility of workers'
641      compensation health care delivery systems for injured workers.
642              3.      Survey carriers to determine the estimated impact on
643      carrier costs and workers' compensation premium rates by
644      implementing changes to the carrier reimbursement schedule or
645      implementing alternative reimbursement methods.
646              4.      Submit recommendations on or before January 15, 2017,
647      and biennially thereafter, to the President of the Senate and
648      the Speaker of the House of Representatives on methods t o
649      improve the workers' compensation health care delivery system.
650

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         PCS for CS/HB 487                                                                                    2023




651      The department, as requested, shall provide data to the panel,
652      including, but not limited to, utilization trends in the
653      workers' compensation health care delivery system. The
654      department shall provide the panel with an annual report
655      regarding the resolution of medical reimbursement disputes and
656      any actions pursuant to subsection (8). The department shall
657      provide administrative support and service to the panel to the
658      extent requested by the panel. For prescription medication
659      purchased under the requirements of this subsection, a
660      dispensing practitioner shall not possess such medication unless
661      payment has been made by the practitioner, the practitioner's
662      professional practice, or the practitioner's practice management
663      company or employer to the supplying manufacturer, wholesaler,
664      distributor, or drug repackager within 60 days of the dispensing
665      practitioner taking possession of that medication.
666              (14)        PRACTICE PARAMETERS.—The practice parameters and
667      protocols mandated under this chapter shall be the practice
668      parameters and protocols adopted by the United States Agency for
669      Healthcare Research and Quality in effect on January 1, 2003.
670              Section 6.         Effective January 1, 2024, subsection (2) of
671      section 440.385, Florida Statutes, is amended to read:
672              440.385        Florida Self-Insurers Guaranty Association,
673      Incorporated.—
674              (2)         BOARD OF DIRECTORS.—The board of directors of the
675      association shall consist of nine persons and shall be organized

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         PCS for CS/HB 487                                                                                    2023




676      as established in the plan of operation. Each director must All
677      board members shall be experienced in self-insurance in this
678      state. Each director shall serve for a 4-year term and may be
679      reappointed. Appointments after January 1, 2002, shall be made
680      by the department upon recommendation of members of the
681      association or other persons with experience in self-insurance
682      as determined by the Chief Financial Officer. These appointments
683      are deemed to be within the scope of the exemption provided in
684      s. 112.313(7)(b). Any vacancy on the board shall be filled for
685      the remaining period of the term in the same manner as
686      appointments other than initial appointments are made. Each
687      director shall be reimbursed for expenses incurred in carrying
688      out the duties of the board on behalf of the association.
689              (a)         The Chief Financial Officer may remove a director from
690      office for misconduct, malfeasance, misfeasance, or neglect of
691      duty. Any vacancy so created shall be filled as provided in this
692      subsection.
693              (b)         Directors are subject to the code of ethics under part
694      III of chapter 112, including, but not limited to, the code of
695      ethics and public disclosure and reporting of financial
696      interests, pursuant to s. 112.3145. For purposes of applying
697      part III of chapter 112 to activities of members of the boar d of
698      directors, those persons are considered public officers and the
699      association is considered their agency. Notwithstanding s.
700      112.3143(2), a director may not vote on any measure that he or

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         PCS for CS/HB 487                                                                                    2023




701      she knows would inure to his or her special private gain or
702      loss; that he or she knows would inure to the special private
703      gain or loss of any principal by which he or she is retained,
704      other than an agency as defined in s. 112.312; or that he or she
705      knows would inure to the special private gain or loss of a
706      relative or business associate of the public officer. Before the
707      vote is taken, such director shall publicly state to the board
708      the nature of his or her interest in the matter from which he or
709      she is abstaining from voting and, within 15 days after the vote
710      occurs, disclose the nature of his or her interest as a public
711      record in a memorandum filed with the person responsible for
712      recording the minutes of the meeting, who shall incorporate the
713      memorandum in the minutes.
714              (c)         Notwithstanding s. 112.3148, s. 112.3149, or a ny other
715      law, an employee of the association or a director may not
716      knowingly accept, directly or indirectly, any gift or
717      expenditure from a person or an entity, or an employee or a
718      representative of such person or entity, which has a contractual
719      relationship with the association or which is under
720      consideration for a contract.
721              (d)         A director who fails to comply with paragraph (b) or
722      paragraph (c) is subject to the penalties provided under ss.
723      112.317 and 112.3173.
724              Section 7.         Present subsections (62) through (77) and (78)
725      of section 497.005, Florida Statutes, are redesignated as

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         PCS for CS/HB 487                                                                                    2023




726      subsections (63) through (78) and (80), respectively, a new
727      subsection (62) and subsection (79) are added to that section,
728      and subsections (9) and (61) of that section are amende d, to
729      read:
730              497.005        Definitions.—As used in this chapter, the term:
731              (9)         "Burial service" or "service" means any service
732      offered or provided in connection with the final disposition,
733      memorialization, interment, entombment, or inurnment of human
734      remains or cremated remains which is required to be offered or
735      provided by an individual or entity licensed under this chapter.
736              (61)        "Preneed contract" means any arrangement or method,
737      of which the provider of funeral merchandise or services has
738      actual knowledge, whereby any person agrees to furnish funeral
739      merchandise or service in the future.
740              (62)        "Preneed contract" means any arrangement or method
741      for which the provider of funeral merchandise or services
742      receives any payment in advance for funeral or burial
743      merchandise and services after the death of the contract
744      beneficiary. The term excludes a transportation protection
745      agreement and any payments received on a transportation
746      protection agreement.
747              (79)        "Transportation protection agreement" means an
748      agreement that exclusively provides or arranges for services
749      related to the preparation for the purpose of transportation and
750      subsequent transportation of human remains or cremated remains.

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         PCS for CS/HB 487                                                                                    2023




751      The Florida Insurance Code, as defined in s. 624.01, does not
752      apply to any transportation protection agreement sold by any
753      licensee under this chapter.
754              Section 8.          Subsection (1) of section 624.1265, Florida
755      Statutes, is amended to read:
756              624.1265           Nonprofit religious organization exemption;
757      authority; notice.—
758              (1)         A nonprofit religious organization is not subject to
759      the requirements of the Florida Insurance Code if the nonprofit
760      religious organization:
761              (a)         Qualifies under Title 26, s. 501 of the Internal
762      Revenue Code of 1986, as amended;
763              (b)         Limits its participants to those members who share a
764      common set of ethical or religious beliefs;
765              (c)         Acts as a facilitator among participants who have
766      financial, physical, or medical needs to assist those with
767      financial, physical, or medical needs in accordance with
768      criteria established by the nonprofit religious organization;
769              (d)         Provides for the financial or medical needs of a
770      participant through contributions from other participants, or
771      through payments directly from one participant to another
772      participant;
773              (e)         Provides amounts that participants may contribute,
774      with no assumption of risk and no promise to pay:
775              1.      Among the participants; or

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         PCS for CS/HB 487                                                                                    2023




776              2.      By the nonprofit religious organization to the
777      participants;
778              (f)         Provides a monthly accounting to the participants of
779      the total dollar amount of qualified needs actually shared in
780      the previous month in accordance with criteria established by
781      the nonprofit religious organization; and
782              (g)         Conducts an annual audit that is performed by an
783      independent certified public accounting firm in accordance with
784      generally accepted accounting principles and that is made
785      available to the public by providing a copy upon request or by
786      posting on the nonprofit religious organization's website; and
787              (h)         Does not market or sell health plans by agents
788      licensed by the department under chapter 626.
789              Section 9.         Subsection (25) of section 624.501, Florida
790      Statutes, is amended to read:
791              624.501        Filing, license, appointment, and miscellaneous
792      fees.—The department, commission, or office, as appropriate,
793      shall collect in advance, and persons so served shall pay to it
794      in advance, fees, licenses, and miscellaneous charges as
795      follows:
796              (25)        Reinsurance intermediary:
797              (a)         Application filing and license fee $50.00
798              (b)         Original appointment and biennial renewal or
799      continuation thereof, appointment fee                            $60.00
800              Section 10.            Subsection (5) of section 626.015, Florida

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         PCS for CS/HB 487                                                                                    2023




801      Statutes, is amended to read:
802              626.015        Definitions.—As used in this part:
803              (5)         "Association" includes the Florida Association of
804      Insurance Agents (FAIA), the National Association of Insurance
805      and Financial Advisors (NAIFA), the National Association of
806      Benefits and Insurance Professionals Florida Chapter (NABIP
807      Florida) Florida Association of Health Underwriters (FAHU), the
808      Latin American Association of Insurance Agencies (LAAIA), the
809      Florida Association of Public Insurance Adjusters (FAPIA), the
810      Florida Bail Agents Association (FBAA), or the Professional Bail
811      Agents of the United States (PBUS).
812              Section 11.            Subsection (4) of section 626.171, Florida
813      Statutes, is amended to read:
814              626.171        Application for license as an agent, customer
815      representative, adjuster, service representative, or reinsurance
816      intermediary.—
817              (4)         An applicant for a license issued by the department
818      under this chapter must submit a set of the individual
819      applicant's fingerprints, or, if the applicant is not an
820      individual, a set of the fingerprints of the sole proprietor,
821      majority owner, partners, officers, and directors, to the
822      department and must pay the fingerprint processing fee set forth
823      in s. 624.501. Fingerprints must be processed in accordance with
824      s. 624.34 and used to investigate the applicant's qualifications
825      pursuant to s. 626.201. The fingerprints must be taken by a law

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826      enforcement agency, designated examination center, or other
827      department-approved entity. The department shall require all
828      designated examination centers to have fingerprinting equipment
829      and to take fingerprints from any applicant or prospective
830      applicant who pays the applicable fee. The department may not
831      approve an application for licensure as an agent, customer
832      service representative, adjuster, service representative, or
833      reinsurance intermediary if fingerprints have not been
834      submitted.
835              Section 12.            Paragraph (c) of subsection (1) of section
836      626.173, Florida Statutes, is amended to read:
837              626.173        Insurance agency closure; cancellation of
838      licenses.—
839              (1)         If a licensed insurance agency permanently ceases the
840      transacting of insurance or ceases the transacting of insurance
841      for more than 30 days, the agent in charge, the director of the
842      agency, or other officer listed on the original application for
843      licensure must, within 35 days after the agency first ceases the
844      transacting of insurance, do all of the following:
845              (c)         Notify all policyholders currently insured by a policy
846      written, produced, or serviced by the agency of the agency's
847      cessation of operations; the date on which operations ceased;
848      and the identity of the agency or agent to which the agency's
849      current book of business has been transferred or, if no transfer
850      has occurred, a statement directing the policyholder to contact

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         PCS for CS/HB 487                                                                                    2023




851      the insurance company for assistance in locating a licensed
852      agent to service the policy. This paragraph does not apply to
853      title insurance, life insurance, or annuity contracts.
854              Section 13.            Subsection (8) of section 626.207, Florida
855      Statutes, is amended to read:
856              626.207        Disqualification of applicants and licensees;
857      penalties against licensees; rulemaking authority.—
858              (8)         The department shall adopt rules establishing specific
859      penalties against licensees in accordance with ss. 626.641 and
860      626.651 for violations of s. 626.112(7) or (9), s. 626.611, s.
861      626.6115, s. 626.621, s. 626.6215, s. 626.7451, s. 626.8437, s.
862      626.844, s. 626.8695, s. 626.8697, s. 626.8698, s. 626.935, s.
863      634.181, s. 634.191, s. 634.320, s. 634.321, s. 634.422, s.
864      634.423, s. 642.041, or s. 642.043. The purpose of the
865      revocation or suspension is to provide a sufficient penalty t o
866      deter future violations of the Florida Insurance Code. The
867      imposition of a revocation or the length of suspension shall be
868      based on the type of conduct and the probability that the
869      propensity to commit further illegal conduct has been overcome
870      at the time of eligibility for relicensure. The length of
871      suspension may be adjusted based on aggravating or mitigating
872      factors, established by rule and consistent with this purpose.
873              Section 14.            Paragraph (j) of subsection (2) of section
874      626.221, Florida Statutes, is amended to read:
875              626.221        Examination requirement; exemptions.—

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         PCS for CS/HB 487                                                                                    2023




876              (2)         However, an examination is not necessary for any of
877      the following:
878              (j)         An applicant for license as an all-lines adjuster who
879      has the designation of Accredited Claims Adjuster (ACA) from a
880      regionally accredited postsecondary institution in this state;
881      Certified All Lines Adjuster (CALA) from Kaplan Financial
882      Education; Associate in Claims (AIC) from the Insurance
883      Institute of America; Professional Claims Adjuster (PCA) from
884      the Professional Career Institute; Professional Property
885      Insurance Adjuster (PPIA) from the HurriClaim Training Academy;
886      Certified Adjuster (CA) from ALL LINES Training; Certified
887      Claims Adjuster (CCA) from AE21 Incorporated; Claims Adjuster
888      Certified Professional (CACP) from WebCE, Inc.; Accredited
889      Insurance Claims Specialist (AICS) from Encore Claim Services;
890      Professional in Claims (PIC) from 2021 Training, LLC; or
891      Universal Claims Certification (UCC) from Claims and Litigation
892      Management Alliance (CLM) whose curriculum has been approved by
893      the department and which includes comprehensive analysis of
894      basic property and casualty lines of insurance and testing at
895      least equal to that of standard department testing for the all-
896      lines adjuster license. The department shall adopt rules
897      establishing standards for the approval of curriculum.
898              Section 15.             Paragraphs (c) and (f) of subsection (3) of
899      section 626.2815, Florida Statutes, are amended to read:
900              626.2815           Continuing education requirements.—

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         PCS for CS/HB 487                                                                                    2023




901              (3)         Each licensee except a title insurance agent must
902      complete a 4-hour update course every 2 years which is specific
903      to the license held by the licensee. The course must be
904      developed and offered by providers and approved by the
905      department. The content of the course must address all lines of
906      insurance for which examination and licensure are required and
907      include the following subject areas: insurance law updates,
908      ethics for insurance professionals, disciplinary trends and case
909      studies, industry trends, premium discounts, determining
910      suitability of products and services, and other similar
911      insurance-related topics the department determines are relevant
912      to legally and ethically carrying out the responsibilities of
913      the license granted. A licensee who holds multiple insurance
914      licenses must complete an update course that is specific to at
915      least one of the licenses held. Except as otherwise specified,
916      any remaining required hours of continuing education are
917      elective and may consist of any continuing education course
918      approved by the department under this section.
919              (c)         A licensee who has been licensed for 25 years or more
920      and is a CLU or a CPCU or has a Bachelor of Science degree or
921      higher in risk management or insurance with evidence of 18 or
922      more semester hours in insurance-related courses must also
923      complete a minimum of 6 hours of elective continuing education
924      courses every 2 years.
925              (f)         Elective continuing education courses for public

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         PCS for CS/HB 487                                                                                    2023




926      adjusters may must be any course related to commercial and
927      residential property coverages, claim adjusting practices, and
928      any other adjuster elective courses specifically designed for
929      public adjusters and approved by the department. Notwithstanding
930      this subsection, public adjusters for workers' compensation
931      insurance or health insurance are not required to take
932      continuing education courses pursuant to this section.
933              Section 16.            Paragraphs (a), (b), and (e) of subsection (1)
934      of section 626.321, Florida Statutes, are amended, and paragraph
935      (i) is added to that subsection, to read:
936              626.321        Limited licenses and registration.—
937              (1)         The department shall issue to a qualified applicant a
938      license as agent authorized to transact a limited class of
939      business in any of the following categories of limited lines
940      insurance:
941              (a)         Motor vehicle physical damage and mechanical breakdown
942      insurance.—License covering insurance against only the loss of
943      or damage to a motor vehicle that is designed for use upon a
944      highway, including trailers and semitrailers designed for use
945      with such vehicles. Such license also covers insurance against
946      the failure of an original or replacement part to perform any
947      function for which it was designed. A licensee under this
948      paragraph may not hold a license as an agent for any other or
949      additional kind or class of insurance coverage except a limit ed
950      license for credit insurance as provided in paragraph (e).

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         PCS for CS/HB 487                                                                                    2023




951      Effective October 1, 2012, all licensees holding such limited
952      license and appointment may renew the license and appointment,
953      but no new or additional licenses may be issued pursuant to this
954      paragraph, and a licensee whose limited license under this
955      paragraph has been terminated, suspended, or revoked may not
956      have such license reinstated.
957              (b)         Industrial fire insurance or burglary insurance.—
958      License covering only industrial fire insurance or burg lary
959      insurance. A licensee under this paragraph may not hold a
960      license as an agent for any other or additional kind or class of
961      insurance coverage except for life insurance and health
962      insurance. Effective July 1, 2019, all licensees holding such
963      limited license and appointment may renew the license and
964      appointment, but no new or additional licenses may be issued
965      pursuant to this paragraph, and a licensee whose limited license
966      under this paragraph has been terminated, suspended, or revoked
967      may not have such license reinstated.
968              (e)         Credit insurance.—License covering credit life, credit
969      disability, credit property, credit unemployment, involuntary
970      unemployment, mortgage life, mortgage guaranty, mortgage
971      disability, guaranteed automobile protection (GAP) insurance,
972      and any other form of insurance offered in connection with an
973      extension of credit which is limited to partially or wholly
974      extinguishing a credit obligation that the department determines
975      should be designated a form of limited line credit insurance.

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          PCS for CS/HB 487                                                                                    2023




 976      Effective October 1, 2012, all valid licenses held by persons
 977      for any of the lines of insurance listed in this paragraph shall
 978      be converted to a credit insurance license. Licensees who wish
 979      to obtain a new license reflecting such change must request a
 980      duplicate license and pay a $5 fee as specified in s.
 981      624.501(15). The license may be issued only to an individual
 982      employed by a life or health insurer as an officer or other
 983      salaried or commissioned representative, to an individual
 984      employed by or associated with a lending or financial
 985      institution or creditor, or to a lending or financial
 986      institution or creditor, and may authorize the sale of such
 987      insurance only with respect to borrowers or debtors of such
 988      lending or financing institution or creditor. However, only the
 989      individual or entity whose tax identification number is used in
 990      receiving or is credited with receiving the commission from the
 991      sale of such insurance shall be the licensed agent of the
 992      insurer. No individual while so licensed shall hold a license as
 993      an agent as to any other or additional kind or class of life or
 994      health insurance coverage.
 995              (i)         Preneed funeral agreement insurance.—Limited license
 996      for insurance covering only prearranged funeral, cremation, or
 997      cemetery agreements, or any combination thereof, funded by
 998      insurance and offered in connection with an establishment that
 999      holds a preneed license pursuant to s. 497.452. Such license may
1000      be issued without examination only to an individual who has

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          PCS for CS/HB 487                                                                                    2023




1001      filed with the department an application for a license in a form
1002      and manner prescribed by the department, who currently holds a
1003      valid preneed sales agent license pursuant to s. 497.466, who
1004      paid the applicable fees for a license as prescribed in s.
1005      624.501, who has been appointed under s. 626.112, and who paid
1006      the prescribed appointment fee under s. 624.501.
1007              Section 17.            Paragraph (n) of subsection (1) of section
1008      626.611, Florida Statutes, is amended to read:
1009              626.611        Grounds for compulsory refusal, suspension, or
1010      revocation of agent's, title agency's, adjuster's, customer
1011      representative's, service representative's, or managing general
1012      agent's license or appointment.—
1013              (1)         The department shall deny an application for, suspend,
1014      revoke, or refuse to renew or continue the license or
1015      appointment of any applicant, agent, title agency, adjuster,
1016      customer representative, service representative, or managing
1017      general agent, and it shall suspend or revoke the eligibility to
1018      hold a license or appointment of any such person, if it finds
1019      that as to the applicant, licensee, or appointee any one or more
1020      of the following applicable grounds exist:
1021              (n)         Having been found guilty of or having pleaded guilty
1022      or nolo contendere to a misdemeanor directly related to the
1023      financial services business, any felony, or any a crime
1024      punishable by imprisonment of 1 year or more under the law of
1025      the United States of America or of any state thereof or under

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          PCS for CS/HB 487                                                                                    2023




1026      the law of any other country, without regard to whether a
1027      judgment of conviction has been entered by the court having
1028      jurisdiction of such cases.
1029              Section 18.             Subsection (18) is added to section 626.621,
1030      Florida Statutes, to read:
1031              626.621        Grounds for discretionary refusal, suspension, or
1032      revocation of agent's, adjuster's, customer representative's,
1033      service representative's, or managing general agent's license or
1034      appointment.—The department may, in its discretion, deny an
1035      application for, suspend, revoke, or refuse to renew or continue
1036      the license or appointment of any applicant, agent, adjuster,
1037      customer representative, service representative, or managing
1038      general agent, and it may suspend or revoke the eligibility to
1039      hold a license or appointment of any such person, if it finds
1040      that as to the applicant, licensee, or appointee any one or more
1041      of the following applicable grounds exist under circumstances
1042      for which such denial, suspension, revocation, or refusal is not
1043      mandatory under s. 626.611:
1044              (18)        Cancellation of the applicant's, licensee's, or
1045      appointee's resident license in a state other than Florida.
1046              Section 19.             Paragraphs (d) and (g) of subsection (2) and
1047      paragraphs (a), (b), and (e) through (j) of subsection (3) of
1048      section 626.7492, Florida Statutes, are amended to read:
1049              626.7492           Reinsurance intermediaries.—
1050              (2)         DEFINITIONS.—As used in this section:

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          PCS for CS/HB 487                                                                                    2023




1051              (d)         "Producer" means a licensed an agent, broker, or
1052      insurance agency that is appointed as a reinsurance intermediary
1053      licensed pursuant to the applicable provision of the Florida
1054      Insurance Code.
1055              (g)         "Reinsurance intermediary manager" means any person
1056      who has authority to bind, or manages all or part of, the
1057      assumed reinsurance business of a reinsurer, including the
1058      management of a separate division, department, or underwriting
1059      office, and acts as a representative an agent for the reinsurer
1060      whether known as a reinsurance intermediary manager, manager, or
1061      other similar term. Notwithstanding the above, none of the
1062      following persons is a reinsurance intermediary manager with
1063      respect to the reinsurer for the purposes of this section:
1064              1.      An employee of the reinsurer;
1065              2.      A manager of the United States branch of an alien
1066      reinsurer;
1067              3.      An underwriting manager which, pursuant to contract,
1068      manages all the reinsurance operations of the reinsurer, is
1069      under common control with the reinsurer, subject to the holding
1070      company act, and whose compensation is not based on the volume
1071      of premiums written.
1072              4.      The manager of a group, association, pool, or
1073      organization of insurers which engage in joint underwriting or
1074      joint reinsurance and who are subject to examination by the
1075      insurance regulatory authority of the state in which the

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          PCS for CS/HB 487                                                                                    2023




1076      manager's principal business office is located.
1077              (3)         LICENSURE.—
1078              (a)         No person shall act as a reinsurance intermediary
1079      broker in this state if the reinsurance intermediary broker
1080      maintains an office either directly or as a member or employee
1081      of a firm or association, or an officer, director, or employee
1082      of a corporation:
1083              1.      In this state, unless the reinsurance intermediary
1084      broker is a licensed producer in this state; or
1085              2.      In another state, unless the reinsurance intermediary
1086      broker is a licensed producer in this state or in another state
1087      having a law substantially similar to this section or the
1088      reinsurance intermediary broker is licensed in this state as an
1089      insurance agency and appointed as a nonresident reinsurance
1090      intermediary.
1091              (b)         No person shall act as a reinsurance intermediary
1092      manager:
1093              1.      For a reinsurer domiciled in this state, unless the
1094      reinsurance intermediary manager is a licensed producer in t his
1095      state;
1096              2.      In this state, if the reinsurance intermediary manager
1097      maintains an office either directly or as a member or employee
1098      of a firm or association, or an officer, director, or employee
1099      of a corporation in this state, unless the reinsurance
1100      intermediary manager is a licensed producer in this state;

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          PCS for CS/HB 487                                                                                    2023




1101              3.      In another state for a nondomestic insurer, unless the
1102      reinsurance intermediary manager is a licensed producer in this
1103      state or another state having a law substantially similar to
1104      this section, or the person is licensed in this state as a
1105      producer nonresident reinsurance intermediary.
1106              (e)         If the applicant for a reinsurance intermediary
1107      appointment license is a nonresident, the applicant, as a
1108      condition precedent to receiving or holding an appointment a
1109      license, must designate the Chief Financial Officer as agent for
1110      service of process in the manner, and with the same legal
1111      effect, provided for by this section for designation of service
1112      of process upon unauthorized insurers. Such applicant shall also
1113      furnish the department with the name and address of a resident
1114      of this state upon whom notices or orders of the department or
1115      process affecting the nonresident reinsurance intermediary may
1116      be served. The licensee shall promptly notify the department in
1117      writing of each change in its designated agent for service of
1118      process, and the change shall not become effective until
1119      acknowledged by the department.
1120              (f)         The department may refuse to issue a reinsurance
1121      intermediary license if, in its judgment, the applicant, anyone
1122      named on the application, or any member, principal, officer, or
1123      director of the applicant, has demonstrated a lack of fitness
1124      and trustworthiness, or that any controlling person of the
1125      applicant is not fit or trustworthy to act as a reinsurance

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          PCS for CS/HB 487                                                                                    2023




1126      intermediary, or that any of the foregoing has given cause for
1127      revocation or suspension of the license, or has failed to comply
1128      with any prerequisite for the issuance of the license.
1129              (g)         Reinsurance intermediaries shall be licensed,
1130      appointed, renewed, continued, reinstated, or terminated as
1131      prescribed in this chapter for insurance representatives in
1132      general, except that they shall be exempt from the photo,
1133      education, and examination provisions. License, Appointment, and
1134      other fees shall be those prescribed in s. 624.501.
1135              (g)(h)        The grounds and procedures for refusal of an a
1136      license or appointment or suspension or revocation of a license
1137      or appointment issued to a reinsurance intermediary under this
1138      section are as set forth in ss. 626.611-626.691 for insurance
1139      representatives in general.
1140              (h)(i)        An attorney licensed in this state, when acting in
1141      a professional capacity, is exempt from this subsection.
1142              (i)(j)        The department may develop necessary rules to carry
1143      out this section.
1144              Section 20.            Subsection (5) of section 626.752, Florida
1145      Statutes, is amended to read:
1146              626.752        Exchange of business.—
1147              (5)         Within 15 days after the last day of each month, any
1148      insurer accepting business under this section shall report to
1149      the department the name, address, telephone number, and social
1150      security number of each agent from which the insurer received

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          PCS for CS/HB 487                                                                                    2023




1151      more than four personal lines risks during the calendar year,
1152      except for risks being removed from the Citizens Property
1153      Insurance Corporation and placed with that insurer by a
1154      brokering agent. Once the insurer has reported pursuant to this
1155      subsection an agent's name to the department, additional reports
1156      on the same agent shall not be required. However, the fee set
1157      forth in s. 624.501 must be paid for the agent by the i nsurer
1158      for each year until the insurer notifies the department that the
1159      insurer is no longer accepting business from the agent pursuant
1160      to this section. The insurer may require that the agent
1161      reimburse the insurer for the fee. If the insurer or employer
1162      does not pay the fees and taxes due pursuant to this subsection
1163      within 21 days after notice by the department, the department
1164      must suspend the insurer's or employer's authority to appo int
1165      licensees until all outstanding fees and taxes have been paid.
1166              Section 21.            Subsection (3) of section 626.785, Florida
1167      Statutes, is amended to read:
1168              626.785        Qualifications for license.—
1169              (3)         Notwithstanding any other provisions of this chapter,
1170      a funeral director, a direct disposer, or an employee of a
1171      funeral establishment that holds a preneed license pursuant to
1172      s. 497.452 may obtain an agent's license or a limited license to
1173      sell only policies of life insurance covering the expense of a
1174      prearrangement for funeral services or merchandise so as to
1175      provide funds at the time the services and merchandise are

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          PCS for CS/HB 487                                                                                    2023




1176      needed. The face amount of insurance covered by any such policy
1177      shall not exceed $21,000, plus an annual percentage increase
1178      based on the Annual Consumer Price Index compiled by the United
1179      States Department of Labor, beginning with the Annual Consumer
1180      Price Index announced by the United States Department of Labor
1181      for 2016.
1182              Section 22.            Subsection (4) of section 626.793, Florida
1183      Statutes, is amended to read:
1184              626.793        Excess or rejected business.—
1185              (4)         Within 15 days after the last day of each month, any
1186      insurer accepting business under this section shall report to
1187      the department the name, address, telephone number, and social
1188      security number of each agent from which the insurer received
1189      more than four risks during the calendar year. Once the insurer
1190      has reported an agent's name to the department pursuant to this
1191      subsection, additional reports on the same agent shall not be
1192      required. However, the fee set forth in s. 624.501 must be paid
1193      for the agent by the insurer for each year until the insurer
1194      notifies the department that the insurer is no longer accepting
1195      business from the agent pursuant to this section. The insurer
1196      may require that the agent reimburse the insurer for the fee. If
1197      the insurer or employer does not pay the fees and taxes due
1198      pursuant to this subsection within 21 days after notice by the
1199      department, the department must suspend the insurer's or
1200      employer's authority to appoint licensees until all outstanding

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1201      fees and taxes have been paid.
1202              Section 23.             Subsection (5) of section 626.837, Florida
1203      Statutes, is amended to read:
1204              626.837        Excess or rejected business.—
1205              (5)         Within 15 days after the last day of each month, any
1206      insurer accepting business under this section shall report to
1207      the department the name, address, telephone number, and social
1208      security number of each agent from which the insurer received
1209      more than four risks during the calendar year. Once the insurer
1210      has reported pursuant to this subsection an agent's name to the
1211      department, additional reports on the same agent shall not be
1212      required. However, the fee set forth in s. 624.501 must be paid
1213      for the agent by the insurer for each year until the insurer
1214      notifies the department that the insurer is no longer accepting
1215      business from the agent pursuant to this section. The insurer
1216      may require that the agent reimburse the insurer for the fee. If
1217      the insurer or employer does not pay the fees and taxes due
1218      pursuant to this subsection within 21 days after notice by the
1219      department, the department must suspend the insurer's or
1220      employer's authority to appoint licensees until all outstanding
1221      fees and taxes have been paid.
1222              Section 24.             Paragraph (e) is added to subsection (2) of
1223      section 626.8411, Florida Statutes, to read:
1224              626.8411           Application of Florida Insurance Code provisions
1225      to title insurance agents or agencies.—

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1226              (2)         The following provisions of part I do not apply to
1227      title insurance agents or title insurance agencies:
1228              (e)         Section 626.173(1)(c), relating to notifying
1229      policyholders of the agency closure.
1230              Section 25.             Present subsections (8) through (11) of
1231      section 626.8437, Florida Statutes, are redesignated as
1232      subsections (9) through (12), respectively, and a new s ubsection
1233      (8) and subsection (13) are added to that section, to read:
1234              626.8437           Grounds for denial, suspension, revocation, or
1235      refusal to renew license or appointment.—The department shall
1236      deny, suspend, revoke, or refuse to renew or continue the
1237      license or appointment of any title insurance agent or agency,
1238      and it shall suspend or revoke the eligibility to hold a license
1239      or appointment of such person, if it finds that as to the
1240      applicant, licensee, appointee, or any principal thereof, any
1241      one or more of the following grounds exist:
1242              (8)         Misappropriation, conversion, or improper withholding
1243      of funds not legally entitled thereto and which are received in
1244      a fiduciary capacity and held as part of an escrow ag reement,
1245      real estate sales contract, or as provided on a settlement
1246      statement in a real estate transaction.
1247              (13)        Revocation or cancellation of a licensee's resident
1248      license in a jurisdiction other than this state.
1249              Section 26.             Subsections (7) and (8) are added to section
1250      626.844, Florida Statutes, to read:

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1251              626.844        Grounds for discretionary refusal, suspension, or
1252      revocation of license or appointment.—The department may, in its
1253      discretion, deny, suspend, revoke, or refuse to renew or
1254      continue the license or appointment of any title insurance agent
1255      or agency, and it may suspend or revoke the eligibility to hold
1256      a license or appointment of any such title insurance agent or
1257      agency if it finds that as to the applicant or licensee or
1258      appointee, or any principal thereof, any one or more of the
1259      following grounds exist under circumstances for which such
1260      denial, suspension, revocation, or refusal is not mandatory
1261      under s. 626.8437:
1262              (7)         Having been the subject of, or having had a license,
1263      permit, appointment, registration, or other authority to conduct
1264      business subject to, any decision, finding, injunction,
1265      suspension, prohibition, revocation, denial, judgment, final
1266      agency action, or administrative order by any court of competent
1267      jurisdiction, administrative law proceeding, state agency,
1268      federal agency, national securities, commodities, or option
1269      exchange, or national securities, commodities, or option
1270      association involving a violation of any federal or state
1271      securities or commodities law or any rule or regulati on adopted
1272      thereunder, or a violation of any rule or regulation of any
1273      national securities, commodities, or options exchange or
1274      national securities, commodities, or options association.
1275              (8)         Revocation or cancellation of a licensee's resident

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1276      license in a jurisdiction other than this state.
1277              Section 27.             Section 626.8473, Florida Statutes, is amended
1278      to read:
1279              626.8473           Escrow; trust fund.—
1280              (1)         A title insurance agency agent may engage in business
1281      as an escrow agent as to funds received from others to be
1282      subsequently disbursed by the title insurance agent in
1283      connection with real estate closing transactions involving the
1284      issuance of title insurance binders, commitments, policies of
1285      title insurance, or guarantees of title, provided that a
1286      licensed and appointed title insurance agency agent complies
1287      with the requirements of s. 626.8419 s. 626.8417, including such
1288      requirements added after the initial licensure of the agency
1289      agent.
1290              (2)         All funds received by a title insurance agency agent
1291      as described in subsection (1) shall be trust funds received in
1292      a fiduciary capacity by the title insurance agency agent and
1293      shall be the property of the person or persons entitled thereto.
1294              (3)         All funds received by a title insurance agency agent
1295      to be held in trust shall be immediately placed in a financial
1296      institution that is located within this state and is a member of
1297      the Federal Deposit Insurance Corporation or the National Credit
1298      Union Share Insurance Fund. These funds shall be invested in an
1299      escrow account in accordance with the investment requirements
1300      and standards established for deposits and investments of state

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1301      funds in s. 17.57, where the funds shall be kept until
1302      disbursement thereof is properly authorized.
1303              (4)         Funds required to be maintained in escrow trust
1304      accounts pursuant to this section shall not be subject to any
1305      debts of the title insurance agency agent and shall be used only
1306      in accordance with the terms of the individual, escrow,
1307      settlement, or closing instructions under which the funds were
1308      accepted.
1309              (5)         The title insurance agency agents shall maintain
1310      separate records of all receipts and disbursements of escrow,
1311      settlement, or closing funds.
1312              (6)         In the event that the department promulgates rules
1313      necessary to implement the requirements of this secti on pursuant
1314      to s. 624.308, the department shall consider reasonable
1315      standards necessary for the protection of funds held in trust,
1316      including, but not limited to, standards for accounting of
1317      funds, standards for receipt and disbursement of funds, and
1318      protection for the person or persons to whom the funds are to be
1319      disbursed.
1320              (7)         A title insurance agency agent, or any officer,
1321      director, or employee thereof, or any person associated
1322      therewith as an independent contractor for bookkeeping or
1323      similar purposes, who converts or misappropriates funds received
1324      or held in escrow or in trust by such title insurance agency
1325      agent, or any person who knowingly receives or conspires to

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1326      receive such funds, commits:
1327              (a)         If the funds converted or misappropriated are $300 or
1328      less, a misdemeanor of the first degree, punishable as provided
1329      in s. 775.082 or s. 775.083.
1330              (b)         If the funds converted or misappropriated are more
1331      than $300, but less than $20,000, a felony of the third degree,
1332      punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
1333              (c)         If the funds converted or misappropriated are $20,000
1334      or more, but less than $100,000, a felony of the second degree,
1335      punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
1336              (d)         If the funds converted or misappropriated are $100,000
1337      or more, a felony of the first degree, punishable as provided in
1338      s. 775.082, s. 775.083, or s. 775.084.
1339              (8)         An attorney shall deposit and maintain all funds
1340      received in connection with transactions in which the attorney
1341      is serving as a title or real estate settlement agent into a
1342      separate trust account that is maintained exclusively for funds
1343      received in connection with such transactions and permit the
1344      account to be audited by its title insurers, unless maintaining
1345      funds in the separate account for a particular client would
1346      violate applicable rules of The Florida Bar.
1347              Section 28.            Subsection (19) of section 626.854, Florida
1348      Statutes, is amended to read:
1349              626.854        "Public adjuster" defined; prohibitions.—The
1350      Legislature finds that it is necessary for the protection of the

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1351      public to regulate public insurance adjusters and to prevent the
1352      unauthorized practice of law.
1353              (19)        Except as otherwise provided in this chapter, no
1354      person, except an attorney at law or a licensed and appointed
1355      public adjuster, may for money, commission, or any other thing
1356      of value, directly or indirectly:
1357              (a)         Prepare, complete, or file an insurance claim for an
1358      insured or a third-party claimant;
1359              (b)         Act on behalf of or aid an insured or a third -party
1360      claimant in negotiating for or effecting the settlement of a
1361      claim for loss or damage covered by an insurance contract;
1362              (c)         Offer to initiate or negotiate a claim on behalf of an
1363      insured;
1364              (d)         Advertise services that require a license as a public
1365      adjuster; or
1366              (e)         Solicit, investigate, or adjust a claim on behalf of a
1367      public adjuster, an insured, or a third-party claimant.
1368              Section 29.            Section 626.874, Florida Statutes, is amended
1369      to read:
1370              626.874         Catastrophe or emergency adjusters.—
1371              (1)         In the event of a catastrophe or emergency, the
1372      department may issue a license, for the purposes and under the
1373      conditions and for the period of emergency as it shall
1374      determine, to persons who are residents or nonresidents of this
1375      state, who are at least 18 years of age, who are United States

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1376      citizens or legal aliens who possess work authorization from the
1377      United States Bureau of Citizenship and Immigration Services,
1378      and who are not licensed adjusters under this part but who have
1379      been designated and certified to it as qualified to act as
1380      adjusters by an authorized insurer to adjust claims, losses, or
1381      damages under policies or contracts of insurance issued by such
1382      insurers, or by a licensed the primary adjuster of an
1383      independent adjusting firm contracted with an authorized insurer
1384      to adjust claims on behalf of the insurer. The fee for the
1385      license is as provided in s. 624.501(12)(c).
1386              (2)         If any person not a licensed adjuster who has been
1387      permitted to adjust such losses, claims, or damages under the
1388      conditions and circumstances set forth in subsection (1),
1389      engages in any of the misconduct described in or contemplated by
1390      chapter 626 ss. 626.611 and 626.621, the department, without
1391      notice and hearing, shall be authorized to issue its order
1392      denying such person the privileges granted under this section;
1393      and thereafter it shall be unlawful for any such person to
1394      adjust any such losses, claims, or damages in this state.
1395              Section 30.             Subsection (2) of section 626.9892, Flor ida
1396      Statutes, is amended to read:
1397              626.9892           Anti-Fraud Reward Program; reporting of insurance
1398      fraud.—
1399              (2)         The department may pay rewards of up to $25,000 to
1400      persons providing information leading to the arrest and

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1401      conviction of persons committing crimes investigated by the
1402      department arising from violations of s. 400.9935, s. 440.105,
1403      s. 624.15, s. 626.112, s. 626.8473, s. 626.8738, s. 626.9541, s.
1404      626.989, s. 790.164, s. 790.165, s. 790.166, s. 806.01, s.
1405      806.031, s. 806.10, s. 806.111, s. 812.014, s. 817.034, s.
1406      817.233, or s. 817.234, s. 817.236, s. 817.2361, s. 817.505, s.
1407      817.568, s. 831.01, s. 895.03, s. 895.04, or s. 896.101 .
1408              Section 31.             Present subsections (7) through (12) of
1409      section 626.9957, Florida Statutes, are redesignated as
1410      subsections (8) through (13), respectively, and a new subsection
1411      (7) is added to that section, to read:
1412              626.9957           Conduct prohibited; denial, revocation,
1413      termination, expiration, or suspension of registration.—
1414              (7)         If a navigator registered under this part fails to
1415      maintain an active, valid navigator's registration status with
1416      the Federal Government or an exchange, the navigator's
1417      registration issued under this part shall expire by operation of
1418      law. A navigator with an expired registration may not be granted
1419      subsequent registration until the navigator qualifies as a
1420      first-time applicant.
1421              Section 32.             Paragraph (c) of subsection (4) of section
1422      627.351, Florida Statutes, is amended to read:
1423              627.351        Insurance risk apportionment plans.—
1424              (4)         MEDICAL MALPRACTICE RISK APPORTIONMENT.—
1425              (c)         The Joint Underwriting Association shall operate

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1426      subject to the supervision and approval of a board of governors
1427      consisting of representatives of five of the insurers
1428      participating in the Joint Underwriting Association, an attorney
1429      named by The Florida Bar, a physician named by the Florida
1430      Medical Association, a dentist named by the Florida Dental
1431      Association, and a hospital representative named by the Florida
1432      Hospital Association. The Chief Financial Officer shall select
1433      the representatives of the five insurers or other persons with
1434      experience in medical malpractice insurance as determined by the
1435      Chief Financial Officer. These appointments are deemed to be
1436      within the scope of the exemption provided in s. 112.313(7)(b).
1437      One insurer representative shall be selected from
1438      recommendations of the American Insurance Association. One
1439      insurer representative shall be selected from recommendations of
1440      the Property Casualty Insurers Association of America. One
1441      insurer representative shall be selected from recommendations of
1442      the Florida Insurance Council. Two insurer representatives shall
1443      be selected to represent insurers that are not affiliated with
1444      these associations. Vacancies on the board shall be filled for
1445      the remaining period of the term in the same manner as the
1446      initial appointments. During the first meeting of the board
1447      after June 30 of each year, the board shall choose one of its
1448      members to serve as chair of the board and another member to
1449      serve as vice chair of the board. There is no liability on the
1450      part of, and no cause of action shall arise against, any member

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1451      insurer, self-insurer, or its agents or employees, the Joint
1452      Underwriting Association or its agents or employees, members of
1453      the board of governors, or the office or its representat ives for
1454      any action taken by them in the performance of their powers and
1455      duties under this subsection.
1456              1.      The Chief Financial Officer may remove a board member
1457      from office for misconduct, malfeasance, misfeasance, or neglect
1458      of duty. Any vacancy so created shall be filled as provided in
1459      this paragraph.
1460              2.      Board members are subject to the code of ethics under
1461      part III of chapter 112, including, but not limited to, the code
1462      of ethics and public disclosure and reporting of financial
1463      interests, pursuant to s. 112.3145. For purposes of applying
1464      part III of chapter 112 to activities of members of the board of
1465      governors, those persons are considered public officers and the
1466      Joint Underwriting Association is considered their agency.
1467      Notwithstanding s. 112.3143(2), a board member may not vote on
1468      any measure that he or she knows would inure to his or her
1469      special private gain or loss; that he or she knows would inure
1470      to the special private gain or loss of any principal by which he
1471      or she is retained, other than an agency as defined in s.
1472      112.312; or that he or she knows would inure to the special
1473      private gain or loss of a relative or business associate of the
1474      public officer. Before the vote is taken, such board member
1475      shall publicly state to the board the nature of his or her

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1476      interest in the matter from which he or she is abstaining from
1477      voting and, within 15 days after the vote occurs, disclose the
1478      nature of his or her interest as a public record in a memorandum
1479      filed with the person responsible for recording the minu tes of
1480      the meeting, who shall incorporate the memorandum in the
1481      minutes.
1482              3.      Notwithstanding s. 112.3148, s. 112.3149, or any other
1483      law, a board member may not knowingly accept, directly or
1484      indirectly, any gift or expenditure from a person or entity, or
1485      an employee or representative of such person or entity, which
1486      has a contractual relationship with the Joint Underwriting
1487      Association or which is under consideration for a contract.
1488              4.      A board member who fails to comply with subparagraph 2.
1489      or subparagraph 3. is subject to the penalties provided under
1490      ss. 112.317 and 112.3173.
1491              Section 31.             Subsections (2) and (3) of section 627.7015,
1492      Florida Statutes, are amended to read:
1493              627.7015           Alternative procedure for resolution of disputed
1494      property insurance claims.—
1495              (2)         At the time of issuance and renewal of a policy or at
1496      the time a first-party claim within the scope of this section is
1497      filed by the policyholder, the insurer shall notify the
1498      policyholder of its right to participate in the mediation
1499      program under this section. A claim is not eligible for
1500      mediation until an insurer has made a claim determination or

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1501      elected to repair pursuant to s. 627.70131. The department shall
1502      prepare a consumer information pamphlet for distribution to
1503      persons participating in mediation.
1504              (3)         The costs of mediation must be reasonable, and the
1505      insurer must bear all of the cost of conducting mediation
1506      conferences, except as otherwise provided in this section. If a
1507      policyholder fails to appear at the conference, the conference
1508      must be rescheduled upon the policyholder's payment of the costs
1509      of a rescheduled conference. If the insurer fails to appear at
1510      the conference, the insurer must pay the policyholder's actual
1511      cash expenses incurred in attending the conference if the
1512      insurer's failure to attend was not due to a good cause
1513      acceptable to the department. An insurer will be deemed to have
1514      failed to appear if the insurer's representative lacks authority
1515      to settle the full value of the claim. The insurer shall incur
1516      an additional fee for a rescheduled conference necessitated by
1517      the insurer's failure to appear at a scheduled conference. The
1518      fees assessed by the department administrator must include a
1519      charge necessary to defray the expenses of the department
1520      related to its duties under this section and must be deposited
1521      in the Insurance Regulatory Trust Fund. The department may
1522      suspend the insurer's authority to appoint licensees if the
1523      insurer does not timely pay the required fees.
1524              Section 34.            Subsection (18) is added to section 627.7074,
1525      Florida Statutes, to read:

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1526              627.7074           Alternative procedure for resolution of disputed
1527      sinkhole insurance claims.—
1528              (18)        The department may designate, by means of a written
1529      contract or agreement, an entity or a person to serve as
1530      administrator to carry out any of the provisions of this
1531      section.
1532              Section 35.             Section 627.745, Florida Statutes, is amended
1533      to read:
1534              627.745        Mediation of claims.—
1535              (1)(a)        In any claim filed with an insurer for personal
1536      injury in an amount of $10,000 or less or any claim for property
1537      damage in any amount, arising out of the ownership, operation,
1538      use, or maintenance of a motor vehicle, either party may demand
1539      mediation of the claim prior to the institution of litigation.
1540              (b)         The costs of mediation must be reasonable, and the
1541      insurer must bear all of the cost of conducting mediation
1542      conferences, except as otherwise provided in this section. If a
1543      policyholder fails to appear at the conference, the conference
1544      must be rescheduled upon the policyholder's payment of the costs
1545      of a rescheduled conference. If the insurer fails to appear at
1546      the conference, the insurer must pay the policyholder's actual
1547      cash expenses incurred in attending the conference if the
1548      insurer's failure to attend was not due to a good cause
1549      acceptable to the department. An insurer is deemed to have
1550      failed to appear if the insurer's representative lacks authority

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1551      to settle the full value of the claim. The insurer shall incur
1552      an additional fee, paid to the mediator, for a rescheduled
1553      conference necessitated by the insurer's failure to appear at a
1554      scheduled conference. The fees assessed by the department or
1555      administrator must include a charge necessary to defray the
1556      expenses of the department related to its duties under this
1557      section and must be deposited in the Insurance Regulatory Trust
1558      Fund. The department or administrator may request that the
1559      department suspend the insurer's authority to appoint licensees
1560      if the insurer does not timely pay the per-mediation-event
1561      administrative fee. Mediation under this section is a lso
1562      available to litigants referred to the department by a county
1563      court or circuit court.
1564              (b)         A request for mediation shall be filed with the
1565      department on a form approved by the department. The request for
1566      mediation shall state the reason for the request for mediation
1567      and the issues in dispute which are to be mediated. The filing
1568      of a request for mediation tolls the applicable time
1569      requirements for filing suit for a period of 60 days following
1570      the conclusion of the mediation process or the time prescribe d
1571      in s. 95.11, whichever is later.
1572              (c)         The insurance policy must specify in detail the terms
1573      and conditions for mediation of a first-party claim.
1574              (d)         The mediation shall be conducted as an informal
1575      process in which formal rules of evidence and procedure need not

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          PCS for CS/HB 487                                                                                    2023




1576      be observed. Any party participating in a mediation must have
1577      the authority to make a binding decision. All parties must
1578      mediate in good faith.
1579              (e)         The department shall randomly select mediators. Each
1580      party may once reject the mediator selected, either originally
1581      or after the opposing side has exercised its option to reject a
1582      mediator.
1583              (f)         Costs of mediation shall be borne equally by both
1584      parties unless the mediator determines that one party has not
1585      mediated in good faith.
1586              (g)         Only one mediation may be requested for each claim,
1587      unless all parties agree to further mediation.
1588              (2)         Upon receipt of a request for mediation, the
1589      department shall refer the request to a mediator. The mediator
1590      shall notify the applicant and all interested parties, a s
1591      identified by the applicant, and any other parties the mediator
1592      believes may have an interest in the mediation, of the date,
1593      time, and place of the mediation conference. The conference may
1594      be held by telephone, if feasible. The mediation conference
1595      shall be held within 45 days after the request for mediation.
1596              (2)(a)(3)(a)           The department shall approve mediators to
1597      conduct mediations pursuant to this section. All mediators must
1598      file an application under oath for approval as a mediator.
1599              (b)         To qualify for approval as a mediator, an individual
1600      must meet one of the following qualifications:

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          PCS for CS/HB 487                                                                                    2023




1601              1.      Possess an active certification as a Florida Supreme
1602      Court certified circuit court mediator. A Florida Supreme Court
1603      certified circuit court mediator in a lapsed, suspended,
1604      sanctioned, or decertified status is not eligible to participate
1605      in the mediation program.
1606              2.      Be an approved department mediator as of July 1, 2014,
1607      and have conducted at least one mediation on behalf of the
1608      department within 4 years immediately preceding that date.
1609              (3)(4)        The department shall deny an application, or
1610      suspend or revoke its approval, of a mediator to serve in such
1611      capacity if the department finds that one or more of the
1612      following grounds exist:
1613              (a)         Lack of one or more of the qualifications specified in
1614      this section for approval.
1615              (b)         Material misstatement, misrepresentation, or fraud in
1616      obtaining or attempting to obtain the approval.
1617              (c)         Demonstrated lack of fitness or trustworthiness to act
1618      as a mediator.
1619              (d)         Fraudulent or dishonest practices in the conduct of
1620      mediation or in the conduct of business in the financial
1621      services industry.
1622              (e)         Violation of any provision of this code or of a lawful
1623      order or rule of the department, violation of the Florida Rules
1624      for Certified and Court-Appointed Mediators, or aiding,
1625      instructing, or encouraging another party in committing such a

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          PCS for CS/HB 487                                                                                    2023




1626      violation.
1627
1628      The department may adopt rules to administer this subsection.
1629              (4)         The department shall adopt by rule a motor vehicle
1630      claims insurance mediation program to be administered by the
1631      department or its designee. The department may also adopt
1632      special rules that are applicable in cases of an emergency
1633      within the state. The rules shall be modeled after practices and
1634      procedures set forth in mediation rules of procedure adopted by
1635      the Supreme Court. The rules must include:
1636              (a)         Reasonable requirements for processing and scheduling
1637      of requests for mediation.
1638              (b)         Provisions governing who may attend mediation
1639      conferences.
1640              (c)         Selection of mediators.
1641              (d)         Criteria for the conduct of mediation conferences.
1642              (e)         Right to legal counsel.
1643              (5)         The department must adopt rules of procedure for
1644      claims mediation, taking into consideration a system which:
1645              (a)         Is fair.
1646              (b)         Promotes settlement.
1647              (c)         Avoids delay.
1648              (d)         Is nonadversarial.
1649              (e)         Uses a framework for modern mediating technique.
1650              (f)         Controls of costs and expenses of mediation.

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1651              (5)         The department may designate an entity or person to
1652      serve as an administrator to carry out any of the provisions of
1653      this section and may take this action by means of a written
1654      contract or agreement.
1655              (6)         Disclosures and information divulged in the mediation
1656      process are not admissible in any subsequent action or
1657      proceeding relating to the claim or to the cause of action
1658      giving rise to the claim. A person demanding mediation under
1659      this section may not demand or request mediation after a suit is
1660      filed relating to the same facts already mediated.
1661              Section 36.            Present subsections (7) through (12) of
1662      section 631.141, Florida Statutes, are redesignated as
1663      subsections (8) through (13), respectively, and a new subsection
1664      (7) is added to that section, to read:
1665              631.141        Conduct of delinquency proceeding; domestic and
1666      alien insurers.—
1667              (7)         In order to preserve as much as possible the right and
1668      interest of the policyholders whose insurance policies or
1669      similar contracts are affected by the receivership proceedings,
1670      the department as a domiciliary receiver may:
1671              (a)         Use the property of the estate of the insurer to
1672      transfer the insurer's book of business, policies, or similar
1673      contracts of coverage, in whole or in part, to a solvent
1674      assuming insurer or insurers.
1675              (b)         Notwithstanding s. 631.195, share records of the

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          PCS for CS/HB 487                                                                                    2023




1676      insurer with the prospective solvent assuming insurer or
1677      insurers, but only to the extent necessary to undertake due
1678      diligence for a transfer contemplated under this section.
1679              Section 37.            Subsections (1) and (3) of section 631.252,
1680      Florida Statutes, are amended to read:
1681              631.252        Continuation of coverage.—
1682              (1)         Unless another insurer, with approval of the
1683      receivership court, assumes or otherwise provides coverage for
1684      the policies of the insolvent insurer, all insurance policies or
1685      similar contracts of coverage, other than coverages defined in
1686      s. 631.713 or health maintenance organization coverage under
1687      part IV, issued by the insurer shall be canceled upon the
1688      earlier earliest to occur of the following:
1689              (a)         The date of entry of the liquidation or, if the court
1690      so provides in its order, the expiration of 30 days from the
1691      date of entry of the liquidation order;
1692              (b)         The normal expiration of the policy or contract
1693      coverage;
1694              (c)         The replacement of the coverage by the insured, or the
1695      replacement of the policy or contract of coverage, with a policy
1696      or contract acceptable to the insured by the receiver with
1697      another insurer; or
1698              (d)         The date proposed by the receiver and approved by the
1699      receivership court to cancel coverage; or
1700              (e)(d)        The termination of the coverage by the insured.

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          PCS for CS/HB 487                                                                                    2023




1701              (3)         The 30-day coverage continuation period provided in
1702      paragraph (1)(a) and s. 631.57(1)(a)1. may not be extended
1703      unless the Chief Financial Officer office determines, based on a
1704      reasonable belief, that market conditions are such that policies
1705      of residential property insurance coverage cannot be placed with
1706      an authorized insurer within 30 days and that an additional 15
1707      days is needed to place such coverage.; and Failure of actual
1708      notice to the policyholder of the insolvency of the insurer, of
1709      commencement of a delinquency proceeding, or of expiration of
1710      the extension period does not affect such expiration.
1711              Section 38.            Subsection (1) of section 631.56, Florida
1712      Statutes, is amended, and subsections (5) through (8) are added
1713      to that section, to read:
1714              631.56        Board of directors.—
1715              (1)         The board of directors of the association shall
1716      consist of not less than five or more than nine persons serving
1717      terms as established in the plan of operation. Three members of
1718      the board must be representatives from domestic insurers and
1719      appointed by the Chief Financial Officer. The department shall
1720      approve and appoint to the board persons recommended by the
1721      member insurers or other persons with experience in property and
1722      casualty insurance or motor vehicle insurance as determined by
1723      the Chief Financial Officer. These appointments are deemed to be
1724      within the scope of the exemption provided in s. 112.313(7)(b).
1725      In the event the department finds that any recommended person

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          PCS for CS/HB 487                                                                                    2023




1726      does not meet the qualifications for service on the board, the
1727      department shall request the member insurers to recommend
1728      another person. Each member shall serve for a 4-year term and
1729      may be reappointed. Vacancies on the board shall be filled for
1730      the remaining period of the term in the same manner as initial
1731      appointments.
1732              (5)         The Chief Financial Officer may remove a board member
1733      from office for misconduct, malfeasance, misfeasance, or neglect
1734      of duty. Any vacancy so created shall be filled as provided in
1735      subsection (1).
1736              (6)         Board members are subject to the code of ethics under
1737      part III of chapter 112, including, but not limited to, the code
1738      of ethics and public disclosure and reporting of financial
1739      interests, pursuant to s. 112.3145. For purposes of applying
1740      part III of chapter 112 to activities of members of the board of
1741      directors, those persons are considered public officers and the
1742      association is considered their agency. Notwithstanding s.
1743      112.3143(2), a board member may not vote on any measure that he
1744      or she knows would inure to his or her special private gain or
1745      loss; that he or she knows would inure to the special private
1746      gain or loss of any principal by which he or she is retained,
1747      other than an agency as defined in s. 112.312; or that he or she
1748      knows would inure to the special private gain or loss of a
1749      relative or business associate of the public officer. Before the
1750      vote is taken, such member shall publicly state to the board the

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1751      nature of his or her interest in the matter from which he or she
1752      is abstaining from voting and, within 15 days after the vote
1753      occurs, disclose the nature of his or her interest as a public
1754      record in a memorandum filed with the person responsible for
1755      recording the minutes of the meeting, who shall incorporate the
1756      memorandum in the minutes.
1757              (7)         Notwithstanding s. 112.3148, s. 112.3149, or any other
1758      law, a board member may not knowingly accept, directly or
1759      indirectly, any gift or expenditure from a person or entity, or
1760      an employee or representative of such person or entity, which
1761      has a contractual relationship with the association or which is
1762      under consideration for a contract.
1763              (8)         A board member who fails to comply with subsection (6)
1764      or subsection (7) is subject to the penalties provided under ss.
1765      112.317 and 112.3173.
1766              Section 39.            Paragraph (a) of subsection (1) of section
1767      631.716, Florida Statutes, is amended, and subsections (4)
1768      through (7) are added to that section, to read:
1769              631.716        Board of directors.—
1770              (1)(a)        The board of directors of the association shall
1771      have at least 9, but no more than 11, members. The members shall
1772      consist be comprised of member insurers serving terms as
1773      established in the plan of operation and 1 Florida Health
1774      Maintenance Organization Consumer Assistance Plan director
1775      confirmed pursuant to paragraph (b), or other persons with

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          PCS for CS/HB 487                                                                                    2023




1776      experience in life and annuity or accident and health insurance
1777      as determined by the Chief Financial Officer. These appointments
1778      are deemed to be within the scope of the exemption provided in
1779      s. 112.313(7)(b). At all times, at least 1 member of the board
1780      member must be a domestic insurer as defined in s. 624.06(1).
1781      The members of the board members who are member insurers shall
1782      be elected by member insurers, subject to the approval of the
1783      department. Each board member shall serve for a 4-year term and
1784      may be reappointed.
1785              (4)         The Chief Financial Officer may remove a board member
1786      from office for misconduct, malfeasance, misfeasance, or neglect
1787      of duty. Any vacancy so created shall be filled as provided in
1788      subsection (1).
1789              (5)         Board members are subject to the code of ethics under
1790      part III of chapter 112, including, but not limited to, the code
1791      of ethics and public disclosure and reporting of financial
1792      interests, pursuant to s. 112.3145. For purposes of applying
1793      part III of chapter 112 to activities of members of the board of
1794      directors, those persons are considered public officers and the
1795      association is considered their agency. Notwithstanding s.
1796      112.3143(2), a board member may not vote on any measure that he
1797      or she knows would inure to his or her special private gain or
1798      loss; that he or she knows would inure to the special private
1799      gain or loss of any principal by which he or she is retained,
1800      other than an agency as defined in s. 112.312; or that he or she

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          PCS for CS/HB 487                                                                                    2023




1801      knows would inure to the special private gain or loss of a
1802      relative or business associate of the public officer. Before the
1803      vote is taken, such member shall publicly state to the board the
1804      nature of his or her interest in the matter from which he or she
1805      is abstaining from voting and, within 15 days after the vote
1806      occurs, disclose the nature of his or her interest as a public
1807      record in a memorandum filed with the person responsible for
1808      recording the minutes of the meeting, who shall incorporate the
1809      memorandum in the minutes.
1810              (6)         Notwithstanding s. 112.3148, s. 112.3149, or any other
1811      law, a board member may not knowingly accept, directly or
1812      indirectly, any gift or expenditure from a person or entity, or
1813      an employee or representative of such person or entity, which
1814      has a contractual relationship with the association or which is
1815      under consideration for a contract.
1816              (7)         A board member who fails to comply with subsection (5)
1817      or subsection (6) is subject to the penalties provided under ss.
1818      112.317 and 112.3173.
1819              Section 40.            Subsection (1) of section 631.816, Florida
1820      Statutes, is amended, and subsections (8) through (11) are added
1821      to that section, to read:
1822              631.816        Board of directors.—
1823              (1)         The board of directors of the plan shall consist of
1824      not less than five or more than nine persons serving terms as
1825      established in the plan of operation. The department shall

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1826      approve and appoint to the board persons recommended by the
1827      member HMOs or other persons with experience in health insurance
1828      as determined by the Chief Financial Officer. These appointments
1829      are deemed to be within the scope of the exemption provided in
1830      s. 112.313(7)(b). In the event the department finds that any
1831      recommended person does not meet the qualifications for service
1832      on the board, the department shall request the member HMOs to
1833      recommend another person. Each member shall serve for a 4-year
1834      term and may be reappointed, except that terms may be st aggered
1835      as defined in the plan of operation. Vacancies on the board
1836      shall be filled for the remaining period of the term in the same
1837      manner as initial appointments. In determining voting rights,
1838      each HMO is entitled to vote on the basis of cumulative weigh ted
1839      voting based on the net written premium for non-Medicare and
1840      non-Medicaid policies.
1841              (8)         The Chief Financial Officer may remove a board member
1842      from office for misconduct, malfeasance, misfeasance, or neglect
1843      of duty. Any vacancy so created shall be filled as provided in
1844      subsection (1).
1845              (9)         Board members are subject to the code of ethics under
1846      part III of chapter 112, including, but not limited to, the code
1847      of ethics and public disclosure and reporting of financial
1848      interests, pursuant to s. 112.3145. For purposes of applying
1849      part III of chapter 112 to activities of members of the board of
1850      directors, those persons are considered public officers and the

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1851      plan is considered their agency. Notwithstanding s. 112.3143(2),
1852      a board member may not vote on any measure that he or she knows
1853      would inure to his or her special private gain or loss; that he
1854      or she knows would inure to the special private gain or loss of
1855      any principal by which he or she is retained, other than an
1856      agency as defined in s. 112.312; or that he or she knows would
1857      inure to the special private gain or loss of a relative or
1858      business associate of the public officer. Before the vote is
1859      taken, such member shall publicly state to the board the nature
1860      of his or her interest in the matter from which he or she is
1861      abstaining from voting and, within 15 days after the vote
1862      occurs, disclose the nature of his or her interest as a public
1863      record in a memorandum filed with the person responsible for
1864      recording the minutes of the meeting, who shall incorporate the
1865      memorandum in the minutes.
1866              (10)        Notwithstanding s. 112.3148, s. 112.3149, or any
1867      other law, a board member may not knowingly accept, directly or
1868      indirectly, any gift or expenditure from a person or entity, or
1869      an employee or representative of such person or entity, which
1870      has a contractual relationship with the plan or which is under
1871      consideration for a contract.
1872              (11)        A board member who fails to comply with subsection
1873      (9) or subsection (10) is subject to the penalties provided
1874      under ss. 112.317 and 112.3173.
1875              Section 41.           Subsection (1) of section 631.912, Florida

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          PCS for CS/HB 487                                                                                    2023




1876      Statutes, is amended, and subsections (4), (5), and (6) are
1877      added to that section, to read:
1878              631.912        Board of directors.—
1879              (1)         The board of directors of the corporation shall
1880      consist of 11 persons, 1 of whom is the insurance consumer
1881      advocate appointed under s. 627.0613 or designee and 1 of whom
1882      is designated by the Chief Financial Officer. The department
1883      shall appoint to the board 6 persons selected by private
1884      carriers from among the 20 workers' compensation insurers with
1885      the largest amount of direct written premium as determined by
1886      the department, and 2 persons selected by the self-insurance
1887      funds or other persons with experience in workers' compensation
1888      insurance as determined by the Chief Financial Officer. These
1889      appointments are deemed to be within the scope of the exemption
1890      provided in s. 112.313(7)(b). The Governor shall appoint one
1891      person who has commercial insurance experience. At least two of
1892      the private carriers shall be foreign carriers authorized to do
1893      business in this state. The board shall elect a chairperson from
1894      among its members. The Chief Financial Officer may remove any
1895      board member for cause. Each board member shall be appointed to
1896      serve a 4-year term and may be reappointed. A vacancy on the
1897      board shall be filled for the remaining period of the term in
1898      the same manner by which the original appointment was made.
1899              (4)         Board members are subject to the code of ethics under
1900      part III of chapter 112, including, but not limited to, the code

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          PCS for CS/HB 487                                                                                    2023




1901      of ethics and public disclosure and reporting of financial
1902      interests, pursuant to s. 112.3145. For purposes of applying
1903      part III of chapter 112 to activities of members of the board of
1904      directors, those persons are considered public officers and the
1905      corporation is considered their agency. Notwithstanding s.
1906      112.3143(2), a board member may not vote on any measure that he
1907      or she knows would inure to his or her special private gain or
1908      loss; that he or she knows would inure to the special private
1909      gain or loss of any principal by which he or she is retained,
1910      other than an agency as defined in s. 112.312; or that he or she
1911      knows would inure to the special private gain or loss of a
1912      relative or business associate of the public officer. Before the
1913      vote is taken, such member shall publicly state to the board the
1914      nature of his or her interest in the matter from which he or she
1915      is abstaining from voting and, within 15 days after the vote
1916      occurs, disclose the nature of his or her interest as a public
1917      record in a memorandum filed with the person responsible for
1918      recording the minutes of the meeting, who shall incorporate the
1919      memorandum in the minutes.
1920              (5)         Notwithstanding s. 112.3148, s. 112.3149, or any other
1921      law, a board member may not knowingly accept, directly or
1922      indirectly, any gift or expenditure from a person or entity, or
1923      an employee or representative of such person or entity, which
1924      has a contractual relationship with the corporation or which is
1925      under consideration for a contract.

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          PCS for CS/HB 487                                                                                    2023




1926              (6)         A board member who fails to comply with subsection (4)
1927      or subsection (5) is subject to the penalties provided under ss.
1928      112.317 and 112.3173.
1929              Section 42.             Section 633.1423, Florida Statutes, is created
1930      to read:
1931              633.1423           State Fire Marshal direct-support organization.—
1932              (1)         DEFINITION.—As used in this section, the term
1933      "organization" means the direct-support organization established
1934      under this section.
1935              (2)         ORGANIZATION ESTABLISHED.—The division may establish a
1936      direct-support organization, to be known as the "State Fire
1937      Marshal Safety and Training Force," whose sole purpose is to
1938      support the safety and training of firefighters and to recognize
1939      exemplary service. The organization must:
1940              (a)         Be a not-for-profit corporation incorporated under
1941      chapter 617 and approved by the Department of State.
1942              (b)         Be organized and operated to raise funds; request and
1943      receive grants, gifts, and bequests of money; conduct programs
1944      and activities; acquire, receive, hold, invest, and administer,
1945      in its own name, securities, funds, or property; and make grants
1946      and expenditures to or for the direct or indirect benefit of the
1947      division. Grants and expenditures may include the cos t of
1948      education or training of firefighters, or the recognition of
1949      exemplary service of firefighters.
1950              (c)         Be determined by the division to operate in a manner

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1951      that is:
1952              1.      Consistent with the goals of the division and laws
1953      relating to the safety and training of firefighters.
1954              2.      In the best interest of the state.
1955              3.      In accordance with the adopted goals and mission of the
1956      division.
1957              (d)         Use all of its grants and expenditures solely for the
1958      purpose of educating, training, and recognizing firefighters,
1959      and not for advertising using the likeness or name of any
1960      elected official nor for the purpose of lobbying as defined in
1961      s. 11.045(1).
1962              (e)         Be subject to an annual financial audit in accordance
1963      with s. 215.981.
1964              (3)         CONTRACT.—The organization shall operate under written
1965      contract with the division. The contract must provide for:
1966              (a)         Certification by the division that the organization is
1967      complying with the terms of the contract and in a manner
1968      consistent with the goals and purposes of the department and in
1969      the best interest of the state. Such certification must be made
1970      annually and reported in the official minutes of a meeting of
1971      the organization.
1972              (b)         The reversion of moneys and property held by the
1973      organization for firefighter safety, training, and recog nition
1974      to the division if the organization is no longer approved to
1975      operate by the division or if the organization ceases to exist,

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1976      or to the state if the division ceases to exist.
1977              (4)         BOARD OF DIRECTORS.—The organization shall be governed
1978      by a board of directors. The State Fire Marshal, or his or her
1979      designee, shall appoint a president of the board. The board of
1980      directors shall be appointed by the president of the board.
1981              (5)         USE OF PROPERTY.—The division may authorize, without
1982      charge, appropriate use of fixed property and facilities of the
1983      division by the organization, subject to this subsection.
1984              (a)         The department may prescribe any condition with which
1985      the organization must comply in order to use the division's
1986      property or facilities.
1987              (b)         The department may not authorize the use of the
1988      division's property or facilities if the organization does not
1989      provide equal membership and employment opportunities to all
1990      persons regardless of race, religion, sex, age, or national
1991      origin.
1992              (c)         The department shall adopt rules prescribing the
1993      procedures by which the organization is governed and any
1994      conditions with which the organization must comply to use the
1995      division's property or facilities.
1996              (6)         DEPOSITORY ACCOUNT.—Any moneys received by the
1997      organization may be held in a separate depository account in the
1998      name of the organization and subject to the contract with the
1999      division.
2000              (7)         ANNUAL BUDGETS AND REPORTS.—The organization shall

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2001      submit to the division its annual budget and financial reports,
2002      its federal Internal Revenue Service Application for Recognition
2003      of Exemption Form 1023, and its federal Internal Revenue Service
2004      Return of Organization Exempt from Income Tax Form 990.
2005              (8)         ANNUAL AUDIT.—The organization shall provide for an
2006      annual financial audit in accordance with s. 215.981.
2007              (9)         DIVISION'S RECEIPT OF PROCEEDS.—Proceeds received by
2008      the division from the organization shall be deposited into the
2009      Insurance Regulatory Trust Fund.
2010              (10)        REPEAL.—This section is repealed October 1, 2028,
2011      unless reviewed and saved from repeal by the Legislature.
2012              Section 43.            Section 634.181, Florida Statutes, is amended
2013      to read:
2014              634.181        Grounds for compulsory refusal, suspension, or
2015      revocation of license or appointment of salespersons. —
2016              (1)         The department shall deny, suspend, revoke, or refuse
2017      to renew or continue the license or appointment of any such
2018      salesperson if it finds that as to the salesperson any one or
2019      more of the following applicable grounds exist:
2020              (a)(1)        Material misstatement, misrepresentation, or fraud
2021      in obtaining or attempting to obtain the license or appointment.
2022              (b)(2)        If the license or appointment is willfully used, or
2023      to be used, to circumvent any of the requirements or
2024      prohibitions of this part, any applicable provision of the
2025      Florida Insurance Code, or rule of the department or commission.

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          PCS for CS/HB 487                                                                                    2023




2026              (c)(3)       Willful misrepresentation of any service agreement
2027      or willful deception with regard to any agreement, done either
2028      in person or by any form of dissemination of information or
2029      advertising.
2030              (d)(4)       If in the adjustment of claims arising out of
2031      service agreements, she or he has materially misrepresented to a
2032      service agreement holder or other interested party the terms and
2033      coverage of a service agreement with intent and for the purpose
2034      of effecting settlement of the claim on less favorable terms
2035      than those provided in and contemplated by the service
2036      agreement.
2037              (e)(5)       For demonstrated lack of fitness or trustworthiness
2038      to engage in the service agreement business.
2039              (f)(6)       For demonstrated lack of adequate knowledge and
2040      technical competence to engage in the transactions authorized by
2041      the license or appointment.
2042              (g)(7)       Fraudulent or dishonest practices in the conduct of
2043      business under the license or appointment.
2044              (h)(8)       Misappropriation, conversion, or unlawful
2045      withholding of moneys belonging to a service agreement company,
2046      insurer, or service agreement holder or to others and received
2047      in the conduct of business under the license or appointment.
2048              (i)(9)       For unlawfully rebating, or attempt thereat, or for
2049      unlawfully dividing or offering to divide her or his commission
2050      with another.

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          PCS for CS/HB 487                                                                                    2023




2051              (j)(10)        Willful failure to comply with, or willful
2052      violation of any proper order of the department or office, or
2053      willful violation of any provision of this part, or of any
2054      applicable provision of the insurance code, or applicable rule
2055      of the department or commission.
2056              (k)(11)        Having been found guilty of, or having pleaded
2057      guilty or nolo contendere to, a felony or a crime punishable by
2058      imprisonment of 1 year or more under the law of the United
2059      States of America or any state thereof or under the law of any
2060      other country which involves moral turpitude, without regard to
2061      whether a judgment of conviction has been entered by the court
2062      having jurisdiction of the cases.
2063              (l)(12)        Failure to refund unearned pro rata commission to
2064      the agreement holder or the service agreement company, if the
2065      service agreement company is making a full unearned pro rata
2066      refund to the agreement holder.
2067              (m)         Having been the subject of, or having had a license,
2068      permit, appointment, registration, or other authority to conduct
2069      business subject to, any decision, finding, injunction,
2070      suspension, prohibition, revocation, denial, judgment, final
2071      agency action, or administrative order by any court of competent
2072      jurisdiction, administrative law proceeding, state agency,
2073      federal agency, national securities, commodities, or options
2074      exchange, or national securities, commodities, or options
2075      association involving a violation of any federal or stat e

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          PCS for CS/HB 487                                                                                    2023




2076      securities or commodities law or any rule or regulation adopted
2077      thereunder, or a violation of any rule or regulation of any
2078      national securities, commodities, or options exchange or
2079      national securities, commodities, or options association.
2080              (2)         When a licensee is charged with a felony enumerated in
2081      s. 626.207(2), the department shall, immediately upon receipt of
2082      information on or indictment for the felony, temporarily suspend
2083      a license or appointment issued under this chapter. Such
2084      suspension shall continue if the licensee is found guilty of, or
2085      pleads guilty or nolo contendere to, the crime, regardless of
2086      whether a judgment or conviction is entered, during a pending
2087      appeal. A person may not transact insurance business after
2088      suspension of his or her license or appointment.
2089              (3)         The department may adopt rules to administer this
2090      section.
2091              Section 44.            Section 634.191, Florida Statutes, is amended
2092      to read:
2093              634.191        Grounds for discretionary refusal, suspension, or
2094      revocation of license or appointment of salespersons.—
2095              (1)         The department may, in its discretion, deny, suspend,
2096      revoke, or refuse to renew or continue the license or
2097      appointment of any salesperson if it finds that as to the
2098      salesperson any one or more of the following applicable grounds
2099      exist under circumstances for which such denial, suspension,
2100      revocation, or refusal is not mandatory under s. 634.181:

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2101              (a)(1)       For any cause for which granting of the license or
2102      appointment could have been refused had it then existed and been
2103      known to the department.
2104              (b)(2)       Violation of any provision of this part or of any
2105      other law applicable to the business of service agreements in
2106      the course of dealings under the license or appointment.
2107              (c)(3)       Violation of Has violated any lawful order or rule
2108      of the department or commission.
2109              (d)(4)       Failure or refusal, upon demand, to pay over to any
2110      company or insurer the salesperson represents or has represented
2111      any money coming into her or his hands belonging to the company
2112      or insurer.
2113              (e)(5)       If, in the conduct of business under the license or
2114      appointment, the salesperson has engaged in unfair methods of
2115      competition or in unfair or deceptive acts or practices, as such
2116      methods, acts, or practices are or may be defined under this
2117      part, or has otherwise shown herself or himself to be a source
2118      of injury or loss to the public or detrimental to the public
2119      interest.
2120              (f)(6)       Failure to report to the department within 30 days
2121      the final disposition of an administrative action taken against
2122      a salesperson by a governmental agency or other regulatory
2123      agency in this state or any other state or jurisdiction relating
2124      to the business of insurance, the sale of securities, or an
2125      activity involving fraud, dishonesty, trustworthiness, or breach

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          PCS for CS/HB 487                                                                                    2023




2126      of a fiduciary duty. The salesperson must submit a copy of the
2127      order, consent to order, or other relevant legal documents to
2128      the department Having been found guilty of, or having pleaded
2129      guilty or nolo contendere to, a felony or a crime punishable by
2130      imprisonment of 1 year or more under the law of the United
2131      States of America or any state thereof or under the law of any
2132      other country, without regard to whether a judgment of
2133      conviction has been entered by the court having jurisdiction of
2134      the cases.
2135              (2)         The department may adopt rules to administer t his
2136      section.
2137              Section 45.            Section 634.320, Florida Statutes, is amended
2138      to read:
2139              634.320         Grounds for compulsory refusal, suspension, or
2140      revocation of license or appointment of sales representatives.—
2141              (1)         The department shall deny, suspend, revoke, or refuse
2142      to renew or continue the license or appointment of any sales
2143      representative if it is found that any one or more of the
2144      following grounds applicable to the sales representative exist:
2145              (a)(1)        Material misstatement, misrepresentation, or fraud
2146      in obtaining or attempting to obtain a license or appointment.
2147              (b)(2)        The license or appointment is willfully used, or to
2148      be used, to circumvent any of the requirements or prohibitions
2149      of this part.
2150              (c)(3)        Willful misrepresentation of any warranty contract

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          PCS for CS/HB 487                                                                                    2023




2151      or willful deception with regard to any such contract, done
2152      either in person or by any form of dissemination of information
2153      or advertising.
2154              (d)(4)       In the adjustment of claims arising out of
2155      warranties, material misrepresentation to a warranty holder or
2156      other interested party of the terms and coverage of a contract,
2157      with the intent and for the purpose of effecting settlement of
2158      such claim on less favorable terms than those provided in and
2159      contemplated by the contract.
2160              (e)(5)       Demonstrated lack of fitness or trustworthiness to
2161      engage in the business of home warranty.
2162              (f)(6)       Demonstrated lack of adequate knowledge and
2163      technical competence to engage in the transactions authorized by
2164      the license or appointment.
2165              (g)(7)       Fraudulent or dishonest practices in the conduct of
2166      business under the license or appointment.
2167              (h)(8)       Misappropriation, conversion, or unlawful
2168      withholding of moneys belonging to an association, insurer, or
2169      warranty holder, or to others, and received in the conduct of
2170      business under the license or appointment.
2171              (i)(9)       Unlawfully rebating, or attempting to unlawfully
2172      rebate, or unlawfully dividing, or offering to divide, her or
2173      his commission with another.
2174              (j)(10)       Willful failure to comply with, or willful
2175      violation of, any proper order or rule of the department or

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          PCS for CS/HB 487                                                                                    2023




2176      commission or willful violation of any provision of this part.
2177              (k)(11)        Being found guilty of or pleading guilty or nolo
2178      contendere to a felony or a crime punishable by imprisonment of
2179      1 year or more under the law of the United States of America or
2180      any state thereof or under the law of any other country
2181      involving moral turpitude, without regard to whether judgment of
2182      conviction has been entered by the court.
2183              (l)         Having been the subject of, or having had a license,
2184      permit, appointment, registration, or other authority to conduct
2185      business subject to, any decision, finding, injunction,
2186      suspension, prohibition, revocation, denial, judgment, final
2187      agency action, or administrative order by any court of competent
2188      jurisdiction, administrative law proceeding, state agency,
2189      federal agency, national securities, commodities, or options
2190      exchange, or national securities, commodities, or options
2191      association involving a violation of any federal or s tate
2192      securities or commodities law or any rule or regulation adopted
2193      thereunder, or a violation of any rule or regulation of any
2194      national securities, commodities, or options exchange or
2195      national securities, commodities, or options association.
2196              (2)         When a licensee is charged with a felony enumerated in
2197      s. 626.207(2), the department shall, immediately upon receipt of
2198      information on or indictment for the felony, temporarily suspend
2199      a license or appointment issued under this chapter. Such
2200      suspension shall continue if the licensee is found guilty of, or

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          PCS for CS/HB 487                                                                                    2023




2201      pleads guilty or nolo contendere to, the crime, regardless of
2202      whether a judgment or conviction is entered, during a pending
2203      appeal. A person may not transact insurance business after
2204      suspension of his or her license or appointment.
2205              (3)         The department may adopt rules to administer this
2206      section.
2207              Section 46.            Section 634.321, Florida Statutes, is amended
2208      to read:
2209              634.321        Grounds for discretionary refusal, suspension, or
2210      revocation of license or appointment of sales representatives.—
2211              (1)         The department may, in its discretion, deny, suspend,
2212      revoke, or refuse to renew or continue the license or
2213      appointment of any sales representative if it is found that any
2214      one or more of the following grounds applicable to the sales
2215      representative exist under circumstances for which such denial,
2216      suspension, revocation, or refusal is not mandatory under s.
2217      634.320:
2218              (a)(1)        Any cause for which granting of the license or
2219      appointment could have been refused had it then existed and been
2220      known to the department.
2221              (b)(2)        Violation of any provision of this part, or of any
2222      other law applicable to the business of warranties, in the
2223      course of dealings under the license or appointment.
2224              (c)(3)        Violation of any lawful order or rule of the
2225      department or commission.

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          PCS for CS/HB 487                                                                                    2023




2226              (d)(4)        Failure or refusal to pay over, upon demand, to any
2227      home warranty association or insurer the sales representative
2228      represents or has represented any money coming into her or his
2229      hands which belongs to the association or insurer.
2230              (e)(5)        In the conduct of business under the license or
2231      appointment, engaging in unfair methods of competition or in
2232      unfair or deceptive acts or practices, as such methods, acts, or
2233      practices are or may be defined under this part, or otherwise
2234      showing herself or himself to be a source of injury or loss to
2235      the public or detriment to the public interest.
2236              (f)(6)        Failure to report to the department within 30 days
2237      the final disposition of an administrative action taken against
2238      a sales representative by a governmental agency or other
2239      regulatory agency in this state or any other state or
2240      jurisdiction relating to the business of insurance, the sale of
2241      securities, or an activity involving fraud, dishonesty,
2242      trustworthiness, or breach of a fiduciary duty. The sales
2243      representative must submit a copy of the order, consent to
2244      order, or other relevant legal documents to the department Being
2245      found guilty of or pleading guilty or nolo contendere to a
2246      felony or a crime punishable by imprisonment of 1 year or more
2247      under the law of the United States of America or any state
2248      thereof or under the law of any other country, without regard to
2249      whether a judgment of conviction has been entered by the court.
2250              (2)         The department may adopt rules to administer this

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          PCS for CS/HB 487                                                                                    2023




2251      section.
2252              Section 47.            Section 634.419, Florida Statutes, is amended
2253      to read:
2254              634.419        License and appointment required.—No person or
2255      entity shall solicit, negotiate, advertise, or effectuate
2256      service warranty contracts in this state unless such person or
2257      entity is licensed and appointed as a sales representative.
2258      Sales representatives shall be responsible for the actions of
2259      persons under their supervision. However, a service warranty
2260      association licensed as such under this part shall not be
2261      required to be licensed and appointed as a sales representative
2262      to solicit, negotiate, advertise, or effectuate its products.
2263      Sections 501.021-501.055 do not apply to persons or entities
2264      licensed and appointed under this section, or their affiliates,
2265      which solicit the sale of a service warranty or related service
2266      or product in connection with a prearranged appointment at the
2267      request of the consumer.
2268              Section 48.            Section 634.422, Florida Statutes, is amended
2269      to read:
2270              634.422        Grounds for compulsory refusal, suspension, or
2271      revocation of license or appointment of sales representatives.—
2272              (1)         The department shall deny, suspend, revoke, or refuse
2273      to renew or continue the license or appointment of any sales
2274      representative if it is found that any one or more of the
2275      following grounds applicable to the sales representative exist:

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          PCS for CS/HB 487                                                                                    2023




2276              (a)(1)       Material misstatement, misrepresentation, or fraud
2277      in obtaining or attempting to obtain a license or appointment.
2278              (b)(2)       The license or appointment is willfully used, or to
2279      be used, to circumvent any of the requirements or prohibitions
2280      of this part.
2281              (c)(3)       Willful misrepresentation of any service warranty
2282      contract or willful deception with regard to any such contract,
2283      done either in person or by any form of dissemination of
2284      information or advertising.
2285              (d)(4)       In the adjustment of claims arising out of
2286      warranties, material misrepresentation to a service warranty
2287      holder or other interested party of the terms and coverage of a
2288      contract with the intent and for the purpose of effecting
2289      settlement of the claim on less favorable terms than those
2290      provided in and contemplated by the contract.
2291              (e)(5)       Demonstrated lack of fitness or trustworthiness to
2292      engage in the business of service warranty.
2293              (f)(6)       Demonstrated lack of adequate knowledge and
2294      technical competence to engage in the transactions authorized by
2295      the license or appointment.
2296              (g)(7)       Fraudulent or dishonest practices in the conduct of
2297      business under the license or appointment.
2298              (h)(8)       Misappropriation, conversion, or unlawful
2299      withholding of moneys belonging to an association, insurer, or
2300      warranty holder, or to others, and received in the conduct of

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          PCS for CS/HB 487                                                                                    2023




2301      business under the license or appointment.
2302              (i)(9)        Unlawfully rebating, or attempting to unlawfully
2303      rebate, or unlawfully dividing, or offering to divide, her or
2304      his commission with another.
2305              (j)(10)        Willful failure to comply with, or willful
2306      violation of, any proper order or rule of the department or
2307      commission, or willful violation of any provision of this part.
2308              (k)(11)        Being found guilty of or pleading nolo contendere
2309      to a felony or a crime punishable by imprisonment of 1 year or
2310      more under the law of the United States of America or any state
2311      thereof or under the law of any other country involving moral
2312      turpitude, without regard to whether judgment of conviction has
2313      been entered by the court having jurisdiction of the case.
2314              (l)         Having been the subject of, or having had a license,
2315      permit, appointment, registration, or other authority to conduct
2316      business subject to, any decision, finding, injunction,
2317      suspension, prohibition, revocation, denial, judgment, final
2318      agency action, or administrative order by any court of competent
2319      jurisdiction, administrative law proceeding, state agency,
2320      federal agency, national securities, commodities, or options
2321      exchange, or national securities, commodities, or options
2322      association involving a violation of any federal or state
2323      securities or commodities law or any rule or regulation adopted
2324      thereunder, or a violation of any rule or regulation of any
2325      national securities, commodities, or options exchange or

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          PCS for CS/HB 487                                                                                    2023




2326      national securities, commodities, or options association.
2327              (2)         When a licensee is charged with a felony enumerated in
2328      s. 626.207(2), the department shall, immediately upon receipt of
2329      information on or indictment for the felony, temporarily suspend
2330      a license or appointment issued under this chapter. Such
2331      suspension shall continue if the licensee is found guilty of, or
2332      pleads guilty or nolo contendere to, the crime, regardless of
2333      whether a judgment or conviction is entered, during a pending
2334      appeal. A person may not transact insurance business after
2335      suspension of his or her license or appointment.
2336              (3)         The department may adopt rules to administer this
2337      section.
2338              Section 49.            Section 634.423, Florida Statutes, is amended
2339      to read:
2340              634.423        Grounds for discretionary refusal, suspension, or
2341      revocation of license or appointment of sales representatives.—
2342              (1)         The department may deny, suspend, revoke, or refuse to
2343      renew or continue the license or appointment of any sales
2344      representative if it is found that any one or more of the
2345      following grounds applicable to the sales representative exist
2346      under circumstances for which such denial, suspension,
2347      revocation, or refusal is not mandatory under s. 634.422:
2348              (a)(1)        Any cause for which granting of the license or
2349      appointment could have been refused had it then existed and been
2350      known to the department.

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          PCS for CS/HB 487                                                                                    2023




2351              (b)(2)       Violation of any provision of this part, or of any
2352      other law applicable to the business of service warranties, in
2353      the course of dealings under the license or appointment.
2354              (c)(3)       Violation of any lawful order or rule of the
2355      department or commission.
2356              (d)(4)       Failure or refusal to pay over, upon demand, to any
2357      service warranty association or insurer the sales representative
2358      represents or has represented any money coming into her or his
2359      hands which belongs to the association or insurer.
2360              (e)(5)       In the conduct of business under the license or
2361      appointment, engaging in unfair methods of competition or in
2362      unfair or deceptive acts or practices, as such methods, acts, or
2363      practices are or may be defined under this part, or otherwise
2364      showing herself or himself to be a source of injury or loss to
2365      the public or detriment to the public interest.
2366              (f)(6)       Failure to report to the department within 30 days
2367      the final disposition of an administrative action taken against
2368      a sales representative by a governmental agency or other
2369      regulatory agency in this state or any other state or
2370      jurisdiction relating to the business of insurance, the sale of
2371      securities, or an activity involving fraud, dishonesty,
2372      trustworthiness, or breach of a fiduciary duty. The sales
2373      representative must submit a copy of the order, consent to
2374      order, or other relevant legal documents to the department Being
2375      found guilty of or pleading guilty or nolo contendere to a

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          PCS for CS/HB 487                                                                                    2023




2376      felony or a crime punishable by imprisonment of 1 year or more
2377      under the law of the United States of America or any state
2378      thereof or under the law of any other country, without regard to
2379      whether judgment of conviction has been entered by the court
2380      having jurisdiction of such case.
2381              (2)         The department may adopt rules to administer this
2382      section.
2383              Section 50.            Section 648.25, Florida Statutes, is reordered
2384      and amended to read:
2385              648.25        Definitions.—As used in this chapter, the term:
2386              (1)         "Appointment" means the authority given by an insurer
2387      or the managing general agent of an insurer through the
2388      department to a licensee to transact insurance or adjust claims
2389      on behalf of the insurer or managing general agent.
2390              (2)(1)        "Bail bond agency" means:
2391              (a)         The building where a licensee maintains an office and
2392      where all records required by ss. 648.34 and 648.36 are
2393      maintained; or
2394              (b)         An entity that:
2395              1.      Charges a fee or premium to release an accused
2396      defendant or detainee from jail; or
2397              2.      Engages in or employs others to engage in any activity
2398      that may be performed only by a licensed and appointed bail bond
2399      agent.
2400              (3)(2)        "Bail bond agent" means a limited surety agent or a

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          PCS for CS/HB 487                                                                                    2023




2401      professional bail bond agent as hereafter defined.
2402              (7)(3)       "Managing general agent" means any individual,
2403      partnership, association, or corporation appointed or employed
2404      by an insurer to supervise or manage the bail bond business
2405      written in this state by limited surety agents appointed by the
2406      insurer.
2407              (5)(4)       "Insurer" means any domestic, foreign, or alien
2408      surety company which has been authorized to transact surety
2409      business in this state.
2410              (6)(5)       "Limited surety agent" means any individual
2411      appointed by an insurer by power of attorney to exe cute or
2412      countersign bail bonds in connection with judicial proceedings
2413      who receives or is promised money or other things of value
2414      therefor.
2415              (4)(6)       "Primary Bail bond agent in charge" means a
2416      licensed bail bond agent who is responsible for the overall
2417      operation and management of a bail bond agency location and
2418      whose responsibilities include hiring and supervising all
2419      individuals within that location. A bail bond agent may be
2420      designated as the primary bail bond agent in charge for only one
2421      bail bond agency location.
2422              (8)(7)       "Professional bail bond agent" means any person who
2423      pledges United States currency, United States postal money
2424      orders, or cashier's checks as security for a bail bond in
2425      connection with a judicial proceeding and receives or is

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          PCS for CS/HB 487                                                                                    2023




2426      promised therefor money or other things of value.
2427              (9)(8)        "Temporary bail bond agent" means a person licensed
2428      before January 1, 2024, who is employed by a bail bond agent or
2429      agency, insurer, or managing general agent, and such licensee
2430      has the same authority as a licensed bail bond agent, including
2431      presenting defendants in court; apprehending, arresting, and
2432      surrendering defendants to the proper authorities, while
2433      accompanied by a supervising bail bond agent or an agent from
2434      the same agency; and keeping defendants under necessary
2435      surveillance. However, a temporary licensee may not execute or
2436      sign bonds, handle collateral receipts, or deliver bonds to
2437      appropriate authorities. A temporary licensee may not operate an
2438      agency or branch agency separate from the location of the
2439      supervising bail bond agent, managing general agent, or insurer
2440      by whom the licensee is employed. This does not affect the right
2441      of a bail bond agent or insurer to hire counsel or to obtain the
2442      assistance of law enforcement officers. A temporary bail bond
2443      agent license expires 18 months after issuance and is no longer
2444      valid on or after June 30, 2025.
2445              Section 51.            Subsection (3) of section 648.26, Florida
2446      Statutes, is amended to read:
2447              648.26        Department of Financial Services; administration.—
2448              (3)         The papers, documents, reports, or any other
2449      investigatory records of the department are confidential and
2450      exempt from the provisions of s. 119.07(1) until such

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          PCS for CS/HB 487                                                                                    2023




2451      investigation is completed or ceases to be active. For the
2452      purpose of this section, an investigation is considered active
2453      "active" while the investigation is being conducted by the
2454      department with a reasonable, good faith belief that it may lead
2455      to the filing of administrative, civil, or criminal proceedings.
2456      An investigation does not cease to be active if the department
2457      is proceeding with reasonable dispatch and there is good faith
2458      belief that action may be initiated by the department or other
2459      administrative or law enforcement agency. This subsection does
2460      not prevent the department or office from disclosing the content
2461      of a complaint or such information as it deems necessary to
2462      conduct the investigation, to update the complainant as to the
2463      status and outcome of the complaint, or to share such
2464      information with any law enforcement agency or other regulatory
2465      body.
2466              Section 52.            Subsection (5) of section 648.27, Florida
2467      Statutes, is amended to read:
2468              648.27        Licenses and appointments; general.—
2469              (5)(a)        The license of a bail bond agent shall continue in
2470      force, without further examination unless deemed ne cessary by
2471      the department, until suspended, revoked, or otherwise
2472      terminated.
2473              (b)         The license of a temporary bail bond agent shall
2474      continue in force until suspended, revoked, or otherwise
2475      terminated.

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          PCS for CS/HB 487                                                                                    2023




2476              Section 53.            Section 648.285, Florida Statutes, is amended
2477      to read:
2478              648.285        Bond agency; ownership requirements; applications
2479      for bail bond agency licenses.—
2480              (1)         A person may not own, control, manage, or otherwise
2481      have a pecuniary interest in a bail bond agency unless such
2482      individual is a licensed pursuant to s. 648.27, and appointed
2483      through the department, and actively engaged as a bail bond
2484      agent for at least the preceding 24 months. Any agency that is
2485      not in compliance with this subsection is shall be subject to
2486      the issuance of an immediate final order of suspension of its
2487      license and all operations until the agency achieves compliance.
2488              (2)         Effective January 1, 2024, the department may issue a
2489      bail bond agency license to any person only after such person
2490      files a written application with the department and qualifies
2491      for such license.
2492              (3)         An application for a bail bond agency license must be
2493      signed by an individual required to be listed in the application
2494      under paragraph (a). A bail bond agency license may permit a
2495      third party to complete, submit, and sign an application on the
2496      bail bond agency's behalf; however, the bail bond agency is
2497      responsible for ensuring that the information on the application
2498      is true and correct, and the bail bond agency is accountable for
2499      any misstatements or misrepresentations. The application for a
2500      bail bond agency license must include:

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          PCS for CS/HB 487                                                                                    2023




2501              (a)         The name and license number of each owner, partner,
2502      officer, director, president, senior vice president, secretary,
2503      treasurer, and limited liability company member who directs or
2504      participates in the management or control of the bail bond
2505      agency, whether through ownership of voting securities, by
2506      contract, by ownership of any agency bank account, or otherwise.
2507              (b)         The residence address of each person required to be
2508      listed in the application under paragraph (a).
2509              (c)         The name, principal business street address, and valid
2510      e-mail address of the bail bond agency and the name, address,
2511      and e-mail address of the agency's registered agent or person or
2512      company authorized to accept service on behalf of the bail bond
2513      agency.
2514              (d)         The physical address of each branch bail bond agency,
2515      including its name, e-mail address, and telephone number, and
2516      the date that the branch location began transacting bail bond
2517      business.
2518              (e)         The name of the full-time bail bond agent in charge of
2519      the agency office, including branch locations, and his or her
2520      corresponding location.
2521              (f)         Such additional information as the department requires
2522      by rule to ascertain the trustworthiness and competence of
2523      persons required to be listed on the application and to
2524      ascertain that such persons meet the requirements of this code.
2525      However, the department may not require that credit or character

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          PCS for CS/HB 487                                                                                    2023




2526      reports be submitted for persons required to be listed on the
2527      application.
2528              (4)         The department must issue a license to each agency
2529      upon approval of the application, and each agency location must
2530      display the license prominently in a manner that makes it
2531      clearly visible to any customer or potential customer who enters
2532      the agency location.
2533              (5)         A bail bond agency that holds a current and valid
2534      registration number with the department shall have its
2535      registration automatically converted to a license on July 1,
2536      2024.
2537              (6)         Section 112.011 does not apply to bail bond agencies
2538      or to applicants for licensure as owners of bail bond agencies.
2539              (7)(2)        If the owner of a bail bond agency dies or becomes
2540      mentally incapacitated, a personal representative or legal
2541      guardian may be issued a temporary permit to manage the affairs
2542      of the bail bond agency. Such person must appoint or maintain
2543      the appointment of a primary bail bond agent in charge, as
2544      provided in s. 648.387, and may not engage in any activities as
2545      a licensed bail bond agent but must comply with s. 648.387
2546      during the administration of the estate or guardianship. A
2547      temporary permit is valid for a maximum of 24 months.
2548              (8)(3)        Application for a temporary permit must be made by
2549      the personal representative or legal guardian upon statements
2550      and affidavits filed with the department on forms prescribed and

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          PCS for CS/HB 487                                                                                    2023




2551      furnished by it. The applicant must meet the qualifications for
2552      licensure as a bail bond agent, except for the residency,
2553      examination, education, and experience requirements.
2554              Section 54.            Subsection (1) of section 648.30, Florida
2555      Statutes, is amended to read:
2556              648.30        Licensure and appointment required; prohibited
2557      acts; penalties.—
2558              (1)(a)        A person or entity may not act in the capacity of a
2559      bail bond agent or temporary bail bond agency agent or perform
2560      any of the functions, duties, or powers prescribed for bail bond
2561      agents or temporary bail bond agencies agents under this chapter
2562      unless that person or entity is qualified, licensed, and
2563      appointed as provided in this chapter and employed by a bail
2564      bond agency.
2565              (b)         A bail bond agent may not sell a bail bond issued by
2566      an insurer for which the agent and the agent's bail bond agency
2567      do not hold a current appointment.
2568              (c)         Except as otherwise provided in this part, a person or
2569      entity, other than a bail bond agency or an employee of a bail
2570      bond agency, may not perform any of the functions of a bail bond
2571      agency without a bail bond agency license.
2572              Section 55.            Section 648.31, Florida Statutes, is amended
2573      to read:
2574              648.31        Appointment taxes and fees.—The department shall
2575      collect in advance all appointment taxes and fees for the

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          PCS for CS/HB 487                                                                                    2023




2576      issuance of any appointment to a bail bond agent or temporary
2577      bail bond agent, as provided in s. 624.501. There is no fee for
2578      the issuance of any appointment to a bail bond agency.
2579              Section 56.            Subsection (2) of section 648.34, Florida
2580      Statutes, is amended to read:
2581              648.34        Bail bond agents; qualifications.—
2582              (2)         To qualify as a bail bond agent, it must affirmatively
2583      appear at the time of application and throughout the period of
2584      licensure that the applicant has complied with the provisions of
2585      s. 648.355 and has obtained a temporary license pursuant to such
2586      section and:
2587              (a)         The applicant Is a natural person who has reached the
2588      age of 18 years and holds a high school diploma or its
2589      equivalent.
2590              (b)         The applicant Is a United States citizen or legal
2591      alien who possesses work authorization from the United States
2592      Bureau of Citizenship and Immigration Services and is a resident
2593      of this state. An individual who is a resident of this state
2594      shall be deemed to meet the residence requirement of this
2595      paragraph, notwithstanding the existence, at the time of
2596      application for license, of a license in the applicant's name on
2597      the records of another state as a resident licensee of such
2598      other state, if the applicant furnishes a letter of clearance
2599      satisfactory to the department that his or her resident licenses
2600      have been canceled or changed to a nonresident basis and that he

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          PCS for CS/HB 487                                                                                    2023




2601      or she is in good standing.
2602              (c)         Will maintain his or her The place of business of the
2603      applicant will be located in this state and in the county where
2604      the applicant will maintain his or her records and be actively
2605      engaged in the bail bond business and work with a licensed
2606      maintain an agency accessible to the public which is open for
2607      reasonable business hours.
2608              (d)         The applicant Is vouched for and recommended upon
2609      sworn statements filed with the department by at least three
2610      reputable citizens who are residents of the same counties in
2611      which the applicant proposes to engage in the bail bond
2612      business.
2613              (e)         The applicant Is a person of high character and
2614      approved integrity and has not been convicted of or pleaded
2615      guilty or no contest to a felony, a crime involving moral
2616      turpitude, or a crime punishable by imprisonment of 1 year or
2617      more under the law of any state, territory, or country, whether
2618      or not a judgment or conviction has been entered.
2619              (f)         Within 2 years immediately before applying for the
2620      license, has successfully completed a basic certification course
2621      in the criminal justice system which consists of at least 120
2622      hours of classroom instruction with a passing grade of 80
2623      percent or higher and has successfully completed a
2624      correspondence course for bail bond agents approved by the
2625      department.

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          PCS for CS/HB 487                                                                                    2023




2626              (g)(f)        The applicant Has passed any required examination.
2627              Section 57.            Section 648.355, Florida Statutes, is amended
2628      to read:
2629              648.355        Temporary limited license as Limited surety agents
2630      and agent or professional bail bond agents agent; qualifications
2631      pending examination.—
2632              (1)         The department may, in its discretion, issue a
2633      temporary license as a limited surety agent or professional bail
2634      bond agent, subject to the following conditions:
2635              (a)         The applicant is a natural person at least 18 years of
2636      age and holds a high school diploma or its equivalent.
2637              (b)         The applicant is a United States citizen or legal
2638      alien who possesses work authorization from the United States
2639      Bureau of Citizenship and Immigration Services and is a resident
2640      of this state. An individual who is a resident of this state
2641      shall be deemed to meet the residence requirement o f this
2642      paragraph, notwithstanding the existence, at the time of
2643      application for temporary license, of a license in the
2644      individual's name on the records of another state as a resident
2645      licensee of such other state, if the applicant furnishes a
2646      letter of clearance satisfactory to the department that the
2647      individual's resident licenses have been canceled or changed to
2648      a nonresident basis and that the individual is in good standing .
2649              (c)         The applicant is a person of high character and
2650      approved integrity and has never been convicted of or pleaded

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          PCS for CS/HB 487                                                                                    2023




2651      guilty or no contest to a felony, a crime involving moral
2652      turpitude, or a crime punishable by imprisonment of 1 year or
2653      more under the law of any state, territory, or country, whether
2654      or not a judgment or conviction is entered.
2655              (d)         Within 4 years prior to the date of application for a
2656      temporary license, the applicant has successfully completed a
2657      basic certification course in the criminal justice system,
2658      consisting of not less than 120 hours of classroom instruction
2659      with a passing grade of 80 percent or higher and has
2660      successfully completed a correspondence course for bail bond
2661      agents approved by the department.
2662              (e)         The applicant must be employed full time at the time
2663      of licensure, and at all times throughout the existence of the
2664      temporary license, by only one licensed and appointed
2665      supervising bail bond agent, who supervises the work of the
2666      applicant and is responsible for the licensee's conduct in the
2667      bail bond business. The applicant must be appointed by the same
2668      insurers as the supervising bail bond agent. The supervising
2669      bail bond agent shall certify monthly to the department under
2670      oath, on a form prescribed by the department, the names and
2671      hours worked each week of all temporary bail bond agents. Filing
2672      a false certification is grounds for the immediate suspension of
2673      the license and imposition of a $5,000 administrative fine. The
2674      department may adopt rules that establish standards for the
2675      employment requirements.

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          PCS for CS/HB 487                                                                                    2023




2676              (f)         The application must be accompanied by an affidavit
2677      verifying proposed employment and a report as to the applicant's
2678      integrity and moral character on a form prescribed by the
2679      department and executed by the proposed employer.
2680              (g)         The applicant must file with the department statements
2681      by at least three reputable citizens who are residents of the
2682      same counties in which the applicant proposes to engage as a
2683      temporary licensee.
2684              (h)         The applicant's employer is responsible for the bail
2685      bonding acts of any licensee under this section.
2686              (2)         All applicable license fees, as prescribed in s.
2687      624.501, must be paid before issuance of the temporary license.
2688              (3)         The temporary license shall be effective for 18
2689      months, subject to earlier termination at the request of the
2690      employer or if suspended or revoked by the department.
2691              (4)         The applicant shall furnish, with the application for
2692      temporary license, a complete set of the applicant's
2693      fingerprints in accordance with s. 626.171(4) and a recent
2694      credential-sized, fullface photograph of the applicant. The
2695      department may shall not issue a temporary license under this
2696      section until the department has received a report from the
2697      Department of Law Enforcement and the Federal Bureau of
2698      Investigation relative to the existence or nonexistence of a
2699      criminal history report based on the applicant's fingerprints.
2700              (2)(5)        The department may collect a fee necessary to cover

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          PCS for CS/HB 487                                                                                    2023




2701      the cost of a character and credit report made by an established
2702      and reputable independent reporting service. The fee shall be
2703      deposited to the credit of the Insurance Regulatory Trust Fund.
2704              (3)(6)        Effective July 1, 2023, any individual licensed by
2705      the department as a temporary bail bond agent may take the
2706      required bail bond agent's licensure examination, may file an
2707      application for a bail bond agent's license if otherwise
2708      qualified for licensure, and may take the required bail bond
2709      agent's licensure examination After licensure as a temporary
2710      licensee for at least 12 months, such licensee may file an
2711      application for and become eligible for a regular bail bond
2712      agent's license based on the licensee's experience in the bail
2713      bond business and education pursuant to paragraph (1)(d) and, if
2714      otherwise qualified, take the required bail bond agent's
2715      licensure examination. The applicant and supervising bail bond
2716      agent must each file an affidavit under oath, on a form
2717      prescribed by the department, verifying the required employment
2718      of the temporary agent before issuance of the license .
2719              (7)         In no event shall a temporary licensee licensed under
2720      this section perform any of the functions for which a bail bond
2721      agent's license is required after expiration of the temporary
2722      license without having passed the written examination as for a
2723      regular bail bond agent's license.
2724              (8)(a)        A temporary licensee has the same authority as a
2725      licensed bail bond agent, including presenting defendants in

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2726      court; apprehending, arresting, and surrendering defendants to
2727      the proper authorities; and keeping defendants under necessary
2728      surveillance. However, a temporary licensee must be accompanied
2729      by a supervising bail bond agent or an agent from the same
2730      agency when apprehending, arresting, or surrendering defendants
2731      to authorities.
2732              (b)         A temporary licensee may not execute or sign bonds,
2733      handle collateral receipts, deliver bonds to appropriate
2734      authorities, or operate an agency or branch agency separate from
2735      the location of the supervising bail bond agent, managing
2736      general agent, or insurer by whom the licensee is employed.
2737              (4)(9)        Effective July 1, 2023, the department may not
2738      issue a temporary bail bond agent's license. An individual
2739      currently licensed as a temporary bail bond agent may continue
2740      to be licensed in accordance with this chapter. A temporary bail
2741      bond agent's license may not be reinstated if the lic ense
2742      expires or is terminated, suspended, or revoked The department
2743      shall not issue a temporary bail bond agent's license to any
2744      individual who has held such a temporary license in this state
2745      within 2 years after the expiration of such temporary bail bond
2746      agent's license.
2747              Section 58.            Subsections (1) through (4) of section
2748      648.382, Florida Statutes, are amended to read:
2749              648.382        Appointment of bail bond agents and bail bond
2750      agencies temporary bail bond agents; effective date of

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2751      appointment.—
2752              (1)(a)        Each insurer or appointing a bail bond agent and
2753      each insurer, managing general agent, or bail bond agent
2754      appointing a temporary bail bond agent or bail bond agency in
2755      this state must file the appointment with the department and, at
2756      the same time, pay the applicable appointment fees and taxes. A
2757      person appointed under this section must hold a valid bail bond
2758      agent's or temporary bail bond agency's agent's license. There
2759      is no fee for the issuance of any appointment of a bail bond
2760      agency.
2761              (b)         Effective July 1, 2025, each insurer or managing
2762      general agent appointing a bail bond agency in this state must
2763      file the appointment with the department. An entity appointed
2764      under this section must hold a valid bail bond agency's license.
2765              (2)         Before Prior to any appointment, an appropriate
2766      officer or official of the appointing insurer in the case of a
2767      bail bond agent or an insurer, managing general agent, or bail
2768      bond agent in the case of a temporary bail bond agent must
2769      submit:
2770              (a)         A certified statement or affidavit to the department
2771      stating what investigation has been made concerning the proposed
2772      appointee and the proposed appointee's background and the
2773      appointing person's opinion to the best of his or her knowledge
2774      and belief as to the moral character and reputation of the
2775      proposed appointee. In lieu of such certified statement or

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          PCS for CS/HB 487                                                                                    2023




2776      affidavit, by authorizing the effectuation of an appointment for
2777      a licensee, the appointing entity certifies to the department
2778      that such investigation has been made and that the results of
2779      the investigation and the appointing person's opinion is that
2780      the proposed appointee is a person of good moral character and
2781      reputation and is fit to engage in the bail bond business;
2782              (b)         An affidavit under oath on a form prescribed by the
2783      department, signed by the proposed appointee, stating that
2784      premiums are not owed to any insurer and that the appointee will
2785      discharge all outstanding forfeitures and judgments on bonds
2786      previously written. If the appointee does not satisfy or
2787      discharge such forfeitures or judgments, the former insurer
2788      shall file a notice, with supporting documents, with the
2789      appointing insurer, the former agent or agency, and the
2790      department, stating under oath that the licensee has failed to
2791      timely satisfy forfeitures and judgments on bonds written and
2792      that the insurer has satisfied the forfeiture or judgment from
2793      its own funds. Upon receipt of such notification and supporting
2794      documents, the appointing insurer shall immediately cancel the
2795      licensee's appointment. The licensee may be reappointed only
2796      upon certification by the former insurer that all forfeitures
2797      and judgments on bonds written by the licensee have been
2798      discharged. The appointing insurer or former agent or agency
2799      may, within 10 days, file a petition with the department seekin g
2800      relief from this paragraph. Filing of the petition stays the

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2801      duty of the appointing insurer to cancel the appointment until
2802      the department grants or denies the petition; and
2803              (c)         Any other information that the department reasonably
2804      requires concerning the proposed appointee; and
2805              (d)         Effective January 1, 2025, a certification that the
2806      appointing entity obtained from each appointee the following
2807      sworn statement:
2808
2809              Pursuant to section 648.382(2)(b), Florida Statutes, I
2810              do solemnly swear that I owe no premium to any insurer
2811              or agency and that I will discharge all outstanding
2812              forfeitures and judgments on bonds that have been
2813              previously written. I acknowledge that failure to do
2814              this will result in my active appointments being
2815              canceled.
2816
2817      An appointed bail bond agency must have the attestation under
2818      this paragraph signed by its owner.
2819              (3)         By authorizing the effectuation of an appointment for
2820      a licensee, the appointing insurer certifies to the department
2821      that the insurer will be bound by the acts of the bail bon d
2822      agent or bail bond agency acting within the scope of the agent's
2823      or agency's his or her appointment, and, in the case of a
2824      temporary bail bond agent, the appointing insurer, managing
2825      general agent, or bail bond agent, as the case may be, must

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          PCS for CS/HB 487                                                                                    2023




2826      certify to the department that he or she will supervise the
2827      temporary bail bond agent's activities.
2828              (4)         Each appointing insurer or, managing general agent, or
2829      bail bond agent must advise the department in writing within 5
2830      days after receiving notice or learning that an appointee has
2831      been arrested for, pled guilty or nolo contendere to, or been
2832      found guilty of, a felony or other offense punishable by
2833      imprisonment of 1 year or more under the law of any
2834      jurisdiction, whether judgment was entered or withheld by the
2835      court.
2836              Section 59.            Present subsections (1) through (4) of section
2837      648.386, Florida Statutes, are redesignated as subsections (2)
2838      through (5), respectively, a new subsection (1) is added to that
2839      section, and present subsection (2) of that section is amended,
2840      to read:
2841              648.386        Qualifications for prelicensing and continuing
2842      education schools and instructors.—
2843              (1)         DEFINITION OF "CLASSROOM INSTRUCTION".—As used in this
2844      section, the term "classroom instruction" means a course
2845      designed to be presented to a group of students by a live
2846      instructor using lecture, video, webcast, or virtual or other
2847      audio-video presentation.
2848              (3)(2)        SCHOOLS AND CURRICULUM FOR CONTINUING EDUCATION
2849      SCHOOLS.—In order to be considered for approval and
2850      certification as an approved limited surety agent and

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          PCS for CS/HB 487                                                                                    2023




2851      professional bail bond agent continuing education school, such
2852      entity must:
2853              (a)         Provide a minimum of three classroom-instruction
2854      continuing education classes per calendar year.
2855              (b)         Submit a course curriculum to the department for
2856      approval.
2857              (c)         Offer continuing education classes that comprise which
2858      are comprised of a minimum of 2 hours of approved classroom-
2859      instruction coursework and are taught by an approved supervising
2860      instructor or guest lecturer approved by the entity or the
2861      supervising instructor.
2862              Section 60.            Section 648.387, Florida Statutes, is amended
2863      to read:
2864              648.387        Primary Bail bond agent in charge agents; duties.—
2865              (1)         The owner or operator of a bail bond agency shall
2866      designate a primary bail bond agent in charge for each location,
2867      and shall file with the department the name and license number
2868      of the person and the address of the location on a form approved
2869      by the department. The designation of the primary bail bond
2870      agent in charge may be changed if the department is notified
2871      immediately. Failure to notify the department within 10 working
2872      days after such change is grounds for disciplinary action
2873      pursuant to s. 648.45.
2874              (2)         The primary bail bond agent in charge is responsible
2875      for the overall operation and management of a bail bond agency

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2876      location, whose responsibilities may include, without
2877      limitations, hiring and supervising of all individuals within
2878      the location, whether they deal with the public in the
2879      solicitation or negotiation of bail bond contracts or in the
2880      collection or accounting of moneys. A person may be designated
2881      as the primary bail bond agent in charge for only one agency and
2882      location.
2883              (3)         The department may suspend or revoke the license of
2884      the owner, bail bond agent in charge operator, and primary bail
2885      bond agency agent if the a bail bond agency employs, contracts
2886      with, or uses the services of a person who has had a license
2887      denied or whose license is currently suspended or revoked.
2888      However, a person who has been denied a license for failure to
2889      pass a required examination may be employed to perform clerical
2890      or administrative functions for which licensure is not required.
2891              (4)         An owner, a bail bond agent in charge operator, or a
2892      bail bond agency primary agent may not employ, contract with, or
2893      use the services of any person in a bail bond agency who has
2894      been charged with, found guilty of, or pled guilty or nolo
2895      contendere to a felony or a crime punishable by imprisonment of
2896      1 year or more under the law of any jurisdiction, without regard
2897      to whether judgment was entered or withheld by the court.
2898              (5)         A bail bond agency location may not conduct surety
2899      business unless a primary bail bond agent in charge is
2900      designated by, and provides services to, the bail bond agency at

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          PCS for CS/HB 487                                                                                     2023




2901      all times. If the bail bond agent in charge designated with the
2902      department ends his or her affiliation with the bail bond agency
2903      for any reason, and the bail bond agency fails to designate
2904      another bail bond agent in charge within the 10-day period under
2905      subsection (1) and such failure continues for 90 days, the bail
2906      bond agency license automatically expires on the 91st day after
2907      the date the designated bail bond agent in charge ended his or
2908      her affiliation with the agency The failure to designate a
2909      primary agent on a form prescribed by the department, within 10
2910      working days after an agency's inception or a change of primary
2911      agent, is a violation of this chapter, punishable as provided in
2912      s. 648.45.
2913              Section 61.             Section 648.3875, Florida Statutes, is created
2914      to read:
2915              648.3875           Bail bond agent in charge; qualifications.—
2916              (1)         An application for designation as a bail bond agent in
2917      charge must be submitted on forms prescribed by the department.
2918      The application must include the applicant's full name and the
2919      applicant's license number issued pursuant to s. 648.27.
2920              (2)         To qualify as a bail bond agent in charge, it must
2921      affirmatively appear that, at the time of application and
2922      throughout the period of licensure, the applicant has complied
2923      with s. 648.285 and that the applicant has been licensed as a
2924      bail bond agent for the 24 months immediately preceding the
2925      appointment as the bail bond agent in charge.

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2926              Section 62.            Section 648.39, Florida Statutes, is amended
2927      to read:
2928              648.39        Termination of appointment of managing general
2929      agents, bail bond agents, and temporary bail bond agencies
2930      agents.—
2931              (1)         An insurer that who terminates the appointment of a
2932      managing general agent, bail bond agent, or temporary bail bond
2933      agency agent shall, within 10 days after such termination, file
2934      written notice thereof with the department together with a
2935      statement that it has given or mailed notice to the terminated
2936      agent or agency. Such notice filed with the department must
2937      state the reasons, if any, for such termination. Information so
2938      furnished to the department is confidential and exempt from the
2939      provisions of s. 119.07(1).
2940              (2)         Each insurer shall, within 5 days after terminating
2941      the appointment of any managing general agent, bail bond agent,
2942      or temporary bail bond agency agent, give written notice thereof
2943      to each clerk of the circuit court and sheriff with whom such
2944      person is registered.
2945              (3)         An insurer that terminates the appointment of a
2946      managing general agent or, bail bond agent, or temporary bail
2947      bond agent may authorize such person to continue to attempt the
2948      arrest and surrender of a defendant for whom a surety bond had
2949      been written by the bail bond agent before prior to termination
2950      and to seek discharge of forfeitures and judgments as provided

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2951      in chapter 903.
2952              Section 63.           Section 648.41, Florida Statutes, is repealed.
2953              Section 64.           Section 648.42, Florida Statutes, is amended
2954      to read:
2955              648.42       Registration of bail bond agents.—A bail bond agent
2956      may not become a surety on an undertaking unless he or she has
2957      registered in the office of the sheriff and with the clerk of
2958      the circuit court in the county in which the bail bond agent
2959      resides. The bail bond agent may register in a like manner in
2960      any other county, and any bail bond agent shall file a certified
2961      copy of his or her appointment by power of attorney from each
2962      insurer which he or she represents as a bail bond agent with
2963      each of such officers. Registration and filing of a certified
2964      copy of renewed power of attorney shall be performed by April 1
2965      of each odd-numbered year. The clerk of the circuit court and
2966      the sheriff may shall not permit the registration of a bail bond
2967      agent unless such bail bond agent is currently licensed by the
2968      department and appointed by an insurer the department. Nothing
2969      in this section shall prevent the registration of a temporary
2970      licensee at the jail for the purposes of enabling the licensee
2971      to perform the duties under such license as set forth in this
2972      chapter.
2973              Section 65.           Subsections (1) and (2) and paragraphs (c) and
2974      (d) of subsection (8) of section 648.44, Florida Statutes, are
2975      amended to read:

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          PCS for CS/HB 487                                                                                    2023




2976              648.44        Prohibitions; penalty.—
2977              (1)         A bail bond agent or temporary bail bond agency agent
2978      may not:
2979              (a)         Suggest or advise the employment of, or name for
2980      employment, any particular attorney or attorneys to represent
2981      his or her principal.
2982              (b)         Directly or indirectly solicit business in or on the
2983      property or grounds of a jail, prison, or other place where
2984      prisoners are confined or in or on the property or grounds of
2985      any court. The term "solicitation" includes the distribution of
2986      business cards, print advertising, or other written or oral
2987      information directed to prisoners or potential indemnitors,
2988      unless a request is initiated by the prisoner or a potential
2989      indemnitor. Permissible print advertising in the jail is
2990      strictly limited to a listing in a telephone directory and the
2991      posting of the bail bond agent's or agency's name, address, e-
2992      mail address, web address, and telephone number in a designated
2993      location within the jail.
2994              (c)         Initiate in-person or telephone solicitation after
2995      9:00 p.m. or before 8:00 a.m., in the case of domestic violence
2996      cases, at the residence of the detainee or the detainee's
2997      family. Any solicitation not prohibited by this chapter must
2998      comply with the telephone solicitation requirements in ss.
2999      501.059(2) and (4), 501.613, and 501.616(6).
3000              (d)         Wear or display any identification other than the

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          PCS for CS/HB 487                                                                                    2023




3001      department issued or approved license or approved department
3002      identification, which includes a citation of the licensee's
3003      arrest powers, in or on the property or grounds of a jail,
3004      prison, or other place where prisoners are confined or in or on
3005      the property or grounds of any court.
3006              (e)         Pay a fee or rebate or give or promise anything of
3007      value to a jailer, police officer, peace officer, or committing
3008      trial court judge or any other person who has power to arrest or
3009      to hold in custody or to any public official or public employee
3010      in order to secure a settlement, compromise, remission, or
3011      reduction of the amount of any bail bond or estreatment thereof.
3012              (f)         Pay a fee or rebate or give anything of value to an
3013      attorney in a bail bond matter, except in defense of any action
3014      on a bond.
3015              (g)         Pay a fee or rebate or give or promise anything of
3016      value to the principal or anyone in his or her behalf.
3017              (h)         Participate in the capacity of an attorney at a trial
3018      or hearing of one on whose bond he or she is surety.
3019              (i)         Loiter in or about a jail, courthouse, or where
3020      prisoners are confined.
3021              (j)         Accept anything of value from a principal for
3022      providing a bail bond except the premium and transfer fee
3023      authorized by the office, except that the bail bond agent or
3024      bail bond agency may accept collateral security or other
3025      indemnity from the principal or another person in accordance

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          PCS for CS/HB 487                                                                                    2023




3026      with the provisions of s. 648.442, together with documentary
3027      stamp taxes, if applicable. No fees, expenses, or charges of any
3028      kind shall be permitted to be deducted from the collateral held
3029      or any return premium due, except as authorized by this chapter
3030      or rule of the department or commission. A bail bond agent or
3031      bail bond agency may, upon written agreement with another party,
3032      receive a fee or compensation for returning to custody an
3033      individual who has fled the jurisdiction of the court or caused
3034      the forfeiture of a bond.
3035              (k)         Write more than one power of attorney per charge on a
3036      bond, except in the case of a cosurety, unless the power of
3037      attorney prohibits a cosurety.
3038              (l)         Execute a bond in this state on his or her own behalf.
3039              (m)         Execute a bond in this state if a judgment has been
3040      entered on a bond executed by the bail bond agent or the bail
3041      bond agency is a named party on the judgment, which has remained
3042      unpaid for 35 days, unless the full amount of the judgment is
3043      deposited with the clerk in accordance with s. 903.27(5).
3044              (n)         Make a statement or representation to a court, unless
3045      such statement or representation is under oath. Such statement
3046      or representation may not be false, misleading, or deceptive.
3047              (o)         Attempt to collect, through threat or coercion,
3048      amounts due for the payment of any indebtedness related to the
3049      issuance of a bail bond in violation of s. 559.72.
3050              (p)         Conduct bail bond business with any person, other than

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          PCS for CS/HB 487                                                                                    2023




3051      the defendant, on the grounds of the jail or courthouse for the
3052      purpose of executing a bond.
3053              (2)         The following persons or classes may shall not be bail
3054      bond agents, temporary bail bond agents, or employees of a bail
3055      bond agent or a bail bond agency business and may shall not
3056      directly or indirectly receive any benefits from the execution
3057      of any bail bond:
3058              (a)         Jailers or persons employed in any jail.
3059              (b)         Police officers or employees of any police department
3060      or law enforcement agency.
3061              (c)         Committing trial court judges, employees of a court,
3062      or employees of the clerk of any court.
3063              (d)         Sheriffs and deputy sheriffs or employees of any
3064      sheriff's department.
3065              (e)         Attorneys.
3066              (f)         Persons having the power to arrest or persons who have
3067      authority over or control of federal, state, county, or
3068      municipal prisoners.
3069              (8)
3070              (c)         Any law enforcement agency, state attorney's office,
3071      court clerk, or insurer that is aware that a bail bond agent or
3072      temporary bail bond agent has been convicted of or who has
3073      pleaded guilty or no contest to a crime as described in
3074      paragraph (a) shall notify the department of this fact.
3075              (d)         Upon the filing of an information or indictment

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          PCS for CS/HB 487                                                                                    2023




3076      against a bail bond agent or temporary bail bond agent, the
3077      state attorney or clerk of the circuit court shall immediate ly
3078      furnish the department a certified copy of the information or
3079      indictment.
3080              Section 66.            Subsection (1) of section 648.441, Florida
3081      Statutes, is amended to read:
3082              648.441        Furnishing supplies to unlicensed bail bond agent
3083      prohibited; civil liability and penalty.—
3084              (1)         An insurer, managing general agent, bail bond agent,
3085      or temporary bail bond agency agent appointed under this chapter
3086      may not furnish to any person any blank forms, applications,
3087      stationery, business card, or other supplies to be used in
3088      soliciting, negotiating, or effecting bail bonds until such
3089      person has received from the department a license to act as a
3090      bail bond agent and is appointed by the insurer. This section
3091      does not prohibit an unlicensed employee, under the direct
3092      supervision and control of a licensed and appointed bail bond
3093      agent, from possessing or executing in the bail bond agency, any
3094      forms, except for powers of attorney, bond forms, and collateral
3095      receipts, while acting within the scope of his or her
3096      employment.
3097              Section 67.            Subsection (3) of section 648.46, Florida
3098      Statutes, is amended to read:
3099              648.46        Procedure for disciplinary action against
3100      licensees.—

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          PCS for CS/HB 487                                                                                    2023




3101              (3)         The complaint and all information obtained pursuant to
3102      the investigation of the department are confidential and exempt
3103      from the provisions of s. 119.07(1) until such investigation is
3104      completed or ceases to be active. For the purpose of this
3105      section, an investigation is considered "active" while the
3106      investigation is being conducted by the department with a
3107      reasonable, good faith belief that it may lead to the filing of
3108      administrative, civil, or criminal proceedings. An investigation
3109      does not cease to be active if the department is proceeding with
3110      reasonable dispatch and there is good faith belief that action
3111      may be initiated by the department or other administrative or
3112      law enforcement agency. This subsection does not prevent the
3113      department or office from disclosing the complaint or such
3114      information as it deems necessary to conduct the investigation,
3115      to update the complainant as to the status and outcome of the
3116      complaint, or to share such information with any law enforcem ent
3117      agency or other regulatory body.
3118              Section 68.            Section 648.50, Florida Statutes, is amended
3119      to read:
3120              648.50        Effect of suspension, revocation upon associated
3121      licenses and licensees.—
3122              (1)         Upon the suspension, revocation, or refusal to renew
3123      or continue any license or appointment or the eligibility to
3124      hold a license or appointment of a bail bond agent or temporary
3125      bail bond agency agent, the department shall at the same time

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          PCS for CS/HB 487                                                                                    2023




3126      likewise suspend or revoke all other licenses or appointments
3127      and the eligibility to hold any other such licenses or
3128      appointments which may be held by the licensee under the Florida
3129      Insurance Code.
3130              (2)         In case of the suspension or revocation of the license
3131      or appointment, or the eligibility to hold a license or
3132      appointment, of any bail bond agent, the license, appointment,
3133      or eligibility of any and all bail bond agents who are members
3134      of a bail bond agency, whether incorporated or unincorporated,
3135      and any and all temporary bail bond agents employed by such bail
3136      bond agency, who knowingly are parties to the act which formed
3137      the ground for the suspension or revocation may likewise be
3138      suspended or revoked.
3139              (3)         A No person whose license as a bail bond agent or
3140      temporary bail bond agent has been revoked or suspended may not
3141      shall be employed by any bail bond agent, have any ownership
3142      interest in any business involving bail bonds, or have any
3143      financial interest of any type in any bail bond business during
3144      the period of revocation or suspension.
3145              Section 69.            Subsections (4) and (6) of section 717.135,
3146      Florida Statutes, are amended to read:
3147              717.135        Recovery agreements and purchase agreements for
3148      claims filed by a claimant's representative; fees and costs. —
3149              (4)         A claimant's representative must use the Unclaimed
3150      Property Recovery Agreement or the Unclaimed Property Purchase

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          PCS for CS/HB 487                                                                                    2023




3151      Agreement as the exclusive means of entering into an agreement
3152      or a contract engaging with a claimant or seller to file a claim
3153      with the department.
3154              (6)         A claimant's representative may not use or distribute
3155      any other agreement of any type, conveyed by any method, form,
3156      or other media with respect to the claimant or seller which
3157      relates, directly or indirectly, to unclaimed property accounts
3158      held by the department or the Chief Financial Officer other than
3159      the agreements authorized by this section. Any engagement,
3160      authorization, recovery, or fee agreement that is not authorized
3161      by this section is void. A claimant's representative is subject
3162      to administrative and civil enforcement under s. 717.1322 if he
3163      or she uses an agreement that is not authorized by this section.
3164      This subsection does not prohibit lawful nonagreement,
3165      noncontractual, or advertising communications between or among
3166      the parties.
3167              Section 70.            Paragraph (a) of subsection (4) of section
3168      843.021, Florida Statutes, is amended to read:
3169              843.021        Unlawful possession of a concealed handcuff key.—
3170              (4)(a)        It is a defense to a charge of violating this
3171      section that the person in custody and in possession of a
3172      concealed handcuff key is:
3173              1.      A federal, state, or local law enforcement officer,
3174      including a reserve or auxiliary officer, a licensed security
3175      officer, or a private investigator as defined in s. 493.6101; or

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          PCS for CS/HB 487                                                                                    2023




3176              2.      A professional bail bond agent, temporary bail bond
3177      agent, runner, or limited surety agent as defined in s. 648.25.
3178              Section 71.            Subsection (4) of section 631.152, Florida
3179      Statutes, is amended to read:
3180              631.152        Conduct of delinquency proceeding; foreign
3181      insurers.—
3182              (4)         Section 631.141(10)(b) 631.141(9)(b) applies to
3183      ancillary delinquency proceedings opened for the purpose of
3184      obtaining records necessary to adjudicate the covered claims of
3185      Florida policyholders.
3186              Section 72.            Paragraph (b) of subsection (3) of section
3187      631.398, Florida Statutes, is amended to read:
3188              631.398        Prevention of insolvencies.—To aid in the
3189      detection and prevention of insurer insolvencies or impairments:
3190              (3)
3191              (b)         For an insolvency involving a domestic property
3192      insurer, the department shall:
3193              1.      Begin an analysis of the history and causes of the
3194      insolvency once the department is appointed by the court as
3195      receiver.
3196              2.      Submit an initial report analyzing the history and
3197      causes of the insolvency to the Governor, the President of the
3198      Senate, the Speaker of the House of Representatives, and the
3199      office. The initial report must be submitted no later than 4
3200      months after the department is appointed as receiver. The

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          PCS for CS/HB 487                                                                                    2023




3201      initial report shall be updated at least annually until the
3202      submission of the final report. The report may not be used as
3203      evidence in any proceeding brought by the department or others
3204      to recover assets on behalf of the receivership estate as part
3205      of its duties under s. 631.141(9) s. 631.141(8). The submission
3206      of a report under this subparagraph shall not be considered a
3207      waiver of any evidentiary privilege the department may assert
3208      under state or federal law.
3209              3.      Provide a special report to the Governor, the President
3210      of the Senate, the Speaker of the House of Representatives, and
3211      the office, within 10 days upon identifying any condition or
3212      practice that may lead to insolvency in the property insurance
3213      marketplace.
3214              4.      Submit a final report analyzing the history and causes
3215      of the insolvency and the review of the Office of Insurance
3216      Regulation's regulatory oversight of the insurer to the
3217      Governor, the President of the Senate, the Speaker of the House
3218      of Representatives, and the office within 30 days of the
3219      conclusion of the insolvency proceeding.
3220              5.      Review the Office of Insurance Regulation's regulatory
3221      oversight of the insurer.
3222              Section 73.            Subsection (2) of section 903.09, Florida
3223      Statutes, is amended to read:
3224              903.09        Justification of sureties.—
3225              (2)         A bond agent, as defined in s. 648.25 s. 648.25(2),

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          PCS for CS/HB 487                                                                                    2023




3226      shall justify her or his suretyship by attaching a copy of the
3227      power of attorney issued by the company to the bond or by
3228      attaching to the bond United States currency, a United States
3229      postal money order, or a cashier's check in the amount of the
3230      bond; but the United States currency, United States postal money
3231      order, or cashier's check cannot be used to secure more than one
3232      bond. Nothing herein shall prohibit two or more qualified
3233      sureties from each posting any portion of a bond amount, and
3234      being liable for only that amount, so long as the total posted
3235      by all cosureties is equal to the amount of bond required.
3236              Section 74.            (1) The following rule is ratified for the
3237      sole and exclusive purpose of satisfying any condition on the
3238      effectiveness imposed under s. 120.541(3), Florida Statutes:
3239      Rule 69L-7.020, Florida Administrative Code, titled "Florida
3240      Workers' Compensation Health Care Provider Reimbursement Manual"
3241      as filed for adoption with the Department of State pursuant to
3242      the certification package dated October 22, 2021.
3243              (2)         This section serves no other purpose and may not be
3244      codified in the Florida Statutes. After this section becomes
3245      law, its enactment and effective dates shall be noted in the
3246      Florida Administrative Code, the Florida Administrative
3247      Register, or both, as appropriate. This section does not alter
3248      rulemaking additions delegated by prior law, does not constitute
3249      legislative preemption of or exception to any provision of law
3250      governing adoption or enforcement of the rule cited, and is

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          PCS for CS/HB 487                                                                                    2023




3251      intended to preserve the status of any cited rule as a rule
3252      under chapter 120, Florida Statutes. This section does n ot cure
3253      any rulemaking defect or preempt any challenge based on a lack
3254      of authority or a violation of the legal requirements governing
3255      the adoption of any rule cited.
3256              (3)         This section takes effect July 1, 2023.
3257              Section 75.            Except as otherwise expressly provided in this
3258      act, this act shall take effect upon becoming a law.




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