Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. SB 430
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/06/2017           .                                

       The Committee on Banking and Insurance (Bean) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Chapter 636, Florida Statutes, entitled “Prepaid
    6  Limited Health Service Organizations and Discount Medical Plan
    7  Organizations,” is retitled “Prepaid Limited Health Service
    8  Organizations and Discount Plan Organizations.”
    9         Section 2. Part II of chapter 636, Florida Statutes,
   10  entitled “Discount Medical Plan Organizations,” is retitled
   11  “Discount Plan Organizations.”
   12         Section 3. Section 636.202, Florida Statutes, is amended to
   13  read:
   14         636.202 Definitions.—As used in this part, the term:
   15         (1) “Discount medical plan” means a business arrangement or
   16  contract in which a person, in exchange for fees, dues, charges,
   17  or other consideration, provides access for plan members to
   18  providers of medical services and the right to receive medical
   19  services from those providers at a discount. The term “discount
   20  medical plan” does not include any product regulated under
   21  chapter 627, chapter 641, or part I of this chapter;, or any
   22  medical services provided through a telecommunications medium
   23  that does not offer a discount to the plan member for those
   24  medical services; or any plan that does not charge a fee to plan
   25  members. Until June 30, 2018, a discount plan may also be
   26  referred to as a discount medical plan.
   27         (2) “Discount medical plan organization” means an entity
   28  that which, in exchange for fees, dues, charges, or other
   29  consideration, provides access for plan members to providers of
   30  medical services and the right to receive medical services from
   31  those providers at a discount. Until June 30, 2018, a discount
   32  plan organization may also be referred to as a discount medical
   33  plan organization.
   34         (3) “Marketer” means a person or entity that which markets,
   35  promotes, sells, or distributes a discount medical plan,
   36  including a private label entity that which places its name on
   37  and markets or distributes a discount medical plan but does not
   38  operate a discount medical plan.
   39         (4) “Medical services” means any care, service, or
   40  treatment of illness or dysfunction of, or injury to, the human
   41  body, including, but not limited to, physician care, inpatient
   42  care, hospital surgical services, emergency services, ambulance
   43  services, dental care services, vision care services, mental
   44  health services, substance abuse services, chiropractic
   45  services, podiatric care services, laboratory services, and
   46  medical equipment and supplies. The term does not include
   47  pharmaceutical supplies or prescriptions.
   48         (5) “Member” means any person who pays fees, dues, charges,
   49  or other consideration for the right to receive the purported
   50  benefits of a discount medical plan.
   51         (6) “Provider” means any person or institution that which
   52  is contracted, directly or indirectly, with a discount medical
   53  plan organization to provide medical services to members.
   54         (7) “Provider network” means an entity that which
   55  negotiates on behalf of more than one provider with a discount
   56  medical plan organization to provide medical services to
   57  members.
   58         Section 4. Subsections (1), (2), (4), and (6) of section
   59  636.204, Florida Statutes, are amended to read:
   60         636.204 License required.—
   61         (1) Before doing business in this state as a discount
   62  medical plan organization, an entity must be a corporation, a
   63  limited liability company, or a limited partnership,
   64  incorporated, organized, formed, or registered under the laws of
   65  this state or authorized to transact business in this state in
   66  accordance with chapter 605, part I of chapter 607, chapter 617,
   67  chapter 620, or chapter 865, and must be licensed by the office
   68  as a discount medical plan organization or be licensed by the
   69  office pursuant to chapter 624, part I of this chapter, or
   70  chapter 641.
   71         (2) An application for a license to operate as a discount
   72  medical plan organization must be filed with the office on a
   73  form prescribed by the commission. Such application must be
   74  sworn to by an officer or authorized representative of the
   75  applicant and be accompanied by the following, if applicable:
   76         (a) A copy of the applicant’s articles of incorporation or
   77  other organizing documents, including all amendments.
   78         (b) A copy of the applicant’s bylaws.
   79         (c) A list of the names, addresses, official positions, and
   80  biographical information of the individuals who are responsible
   81  for conducting the applicant’s affairs, including, but not
   82  limited to, all members of the board of directors, board of
   83  trustees, executive committee, or other governing board or
   84  committee, the officers, contracted management company
   85  personnel, and any person or entity owning or having the right
   86  to acquire 10 percent or more of the voting securities of the
   87  applicant. Such listing must fully disclose the extent and
   88  nature of any contracts or arrangements between any individual
   89  who is responsible for conducting the applicant’s affairs and
   90  the discount medical plan organization, including any possible
   91  conflicts of interest.
   92         (d) A complete biographical statement, on forms prescribed
   93  by the commission, an independent investigation report, and a
   94  set of fingerprints, as provided in chapter 624, with respect to
   95  each individual identified under paragraph (c).
   96         (e) A statement generally describing the applicant, its
   97  facilities and personnel, and the medical services to be
   98  offered.
   99         (f) A copy of the form of all contracts made or to be made
  100  between the applicant and any providers or provider networks
  101  regarding the provision of medical services to members.
  102         (g) A copy of the form of any contract made or arrangement
  103  to be made between the applicant and any person listed in
  104  paragraph (c).
  105         (h) A copy of the form of any contract made or to be made
  106  between the applicant and any person, corporation, partnership,
  107  or other entity for the performance on the applicant’s behalf of
  108  any function, including, but not limited to, marketing,
  109  administration, enrollment, investment management, and
  110  subcontracting for the provision of health services to members.
  111         (i) A copy of the applicant’s most recent financial
  112  statements audited by an independent certified public
  113  accountant. An applicant that is a subsidiary of a parent entity
  114  that is publicly traded and that prepares audited financial
  115  statements reflecting the consolidated operations of the parent
  116  entity and the subsidiary may petition the office to accept, in
  117  lieu of the audited financial statement of the applicant, the
  118  audited financial statement of the parent entity and a written
  119  guaranty by the parent entity that the minimum capital
  120  requirements of the applicant required by this part will be met
  121  by the parent entity.
  122         (j) A description of the proposed method of marketing.
  123         (k) A description of the subscriber complaint procedures to
  124  be established and maintained.
  125         (l) The fee for issuance of a license.
  126         (m) Such other information as the commission or office may
  127  reasonably require to make the determinations required by this
  128  part.
  129         (4) Before Prior to licensure by the office, each discount
  130  medical plan organization must establish an Internet website so
  131  as to conform to the requirements of s. 636.226.
  132         (6) This part does not require Nothing in this part
  133  requires a provider who provides discounts to his or her own
  134  patients to obtain and maintain a license as a discount medical
  135  plan organization. If a provider contracts with a third-party
  136  entity to administer or provide a platform for a discount plan,
  137  the third-party entity must be licensed as a discount plan
  138  organization.
  139         Section 5. Section 636.206, Florida Statutes, is amended to
  140  read:
  141         636.206 Examinations and investigations.—
  142         (1) The office may examine or investigate the business and
  143  affairs of any discount medical plan organization. The office
  144  may order any discount medical plan organization or applicant to
  145  produce any records, books, files, advertising and solicitation
  146  materials, or other information and may take statements under
  147  oath to determine whether the discount medical plan organization
  148  or applicant is in violation of the law or is acting contrary to
  149  the public interest. The expenses incurred in conducting any
  150  examination or investigation must be paid by the discount
  151  medical plan organization or applicant. Examinations and
  152  investigations must be conducted as provided in chapter 624. For
  153  the duration of the agreement and for 5 years thereafter, every
  154  discount plan organization shall maintain, in a form accessible
  155  to the office during an examination or investigation, an
  156  accurate record of each member, the membership materials
  157  provided to the member, the discount plan issued to the member,
  158  and the charges billed and paid by the member.
  159         (2) Failure by the discount medical plan organization to
  160  pay the expenses incurred under subsection (1) is grounds for
  161  denial or revocation.
  162         Section 6. Section 636.208, Florida Statutes, is amended to
  163  read:
  164         636.208 Fees; charges; reimbursement.—
  165         (1) A discount medical plan organization may charge a
  166  periodic charge as well as a reasonable one-time processing fee
  167  for a discount medical plan.
  168         (2)(a) If the member cancels his or her membership in the
  169  discount medical plan organization within the first 30 days
  170  after the effective date of enrollment in the plan, the member
  171  shall receive a reimbursement of all periodic charges upon
  172  return of the discount card to the discount medical plan
  173  organization.
  174         (b)If the member cancels his or her membership in the
  175  discount plan organization consistent with the open enrollment
  176  rules established by an employer or association for a plan
  177  having an open enrollment period, the member shall receive a pro
  178  rata reimbursement of all periodic charges upon return of the
  179  discount card to the discount plan organization.
  180         (c) Except for plans enrolled under paragraph (b), if the
  181  member requests in writing the cancellation of his or her
  182  membership in the discount plan organization after the first 30
  183  days allowed in paragraph (a), the discount plan organization:
  184         1. Must make the cancellation effective no later than 30
  185  days after receiving the member’s cancellation request;
  186         2. May not make future charges to the member after the
  187  cancellation has taken effect; and
  188         3. Must provide the member a pro rata reimbursement of
  189  periodic charges for all months after the effective date of the
  190  cancellation.
  191         (3) If the discount medical plan organization cancels a
  192  membership for any reason other than nonpayment of fees by the
  193  member, the discount medical plan organization must shall make a
  194  pro rata reimbursement of all periodic charges to the member.
  195         (4) In addition to the reimbursement of periodic charges
  196  for the reasons stated in subsections (2) and (3), a discount
  197  medical plan organization shall also reimburse the member for
  198  any portion of a one-time processing fee that exceeds $30 per
  199  year.
  200         Section 7. Section 636.212, Florida Statutes, is amended to
  201  read:
  202         636.212 Disclosures.—A discount plan organization or
  203  marketer shall provide disclosures to a prospective member
  204  before his or her enrollment. A discount plan organization or
  205  marketer may make disclosures in addition to those described in
  206  this part. Before enrollment, a prospective member must
  207  acknowledge he or she has accepted the disclosures The following
  208  disclosures must be made in writing to any prospective member
  209  and must be on the first page of any advertisements, marketing
  210  materials, or brochures relating to a discount medical plan. The
  211  disclosures must be printed in not less than 12-point type:
  212         (1) The disclosures must include:
  213         (a) That the plan is not insurance.
  214         (b)(2) That the plan provides discounts at certain health
  215  care providers for medical services.
  216         (c)(3) That the plan does not make payments directly to the
  217  providers of medical services.
  218         (d)(4) That the plan member is obligated to pay for all
  219  health care services but will receive a discount from those
  220  health care providers who have contracted with the discount plan
  221  organization.
  222         (e)(5) The name and address of the licensed discount
  223  medical plan organization.
  224         (2)Written disclosures must include the disclosures in
  225  subsection (1) on the first page of any advertisement, marketing
  226  material, or brochure relating to a discount plan. The first
  227  page is the page that first includes the information describing
  228  benefits. The disclosures must be printed in not less than 12
  229  point type.
  230         (3)Disclosures provided by electronic means must include
  231  the disclosures in subsection (1) on any advertisement,
  232  marketing material, or brochure relating to a discount plan. The
  233  disclosures must be viewable in a readable font size and color.
  234         (4)Disclosures made by telephone must include the
  235  disclosures in subsection (1), and a written disclosure in
  236  accordance with subsection (2) must also be provided with the
  237  initial materials sent to the prospective or new member.
  239  If the initial contract is made by telephone, the disclosures
  240  required by this section shall be made orally and provided in
  241  the initial written materials that describe the benefits under
  242  the discount medical plan provided to the prospective or new
  243  member.
  244         Section 8. Section 636.214, Florida Statutes, is amended to
  245  read:
  246         636.214 Provider agreements.—
  247         (1) All providers offering medical services to members
  248  under a discount medical plan must provide such services
  249  pursuant to a written agreement. The agreement may be entered
  250  into directly by the provider or by a provider network to which
  251  the provider belongs.
  252         (2) A provider agreement between a discount medical plan
  253  organization and a provider must provide the following:
  254         (a) A list of the services and products to be provided at a
  255  discount.
  256         (b) The amount or amounts of the discounts or,
  257  alternatively, a fee schedule which reflects the provider’s
  258  discounted rates.
  259         (c) A statement that the provider will not charge members
  260  more than the discounted rates.
  261         (3) A provider agreement between a discount medical plan
  262  organization and a provider network must shall require that the
  263  provider network have written agreements with its providers
  264  which:
  265         (a) Contain the terms described in subsection (2).
  266         (b) Authorize the provider network to contract with the
  267  discount medical plan organization on behalf of the provider.
  268         (c) Require the network to maintain an up-to-date list of
  269  its contracted providers and to provide that list on a monthly
  270  basis to the discount medical plan organization.
  271         (4) The discount medical plan organization shall maintain a
  272  copy of each active provider agreement into which it has
  273  entered.
  274         Section 9. Section 636.216, Florida Statutes, is amended to
  275  read:
  276         636.216 Written agreement Charge or form filings.—
  277         (1) All charges to members must be filed with the office
  278  and any charge to members greater than $30 per month or $360 per
  279  year must be approved by the office before the charges can be
  280  used. The discount medical plan organization has the burden of
  281  proof that the charges bear a reasonable relation to the
  282  benefits received by the member.
  283         (2) There must be a written agreement between the discount
  284  medical plan organization and the member specifying the benefits
  285  under the discount medical plan and complying with the
  286  disclosure requirements of this part.
  287         (3)All forms used, including the written agreement
  288  pursuant to subsection (2), must first be filed with and
  289  approved by the office. Every form filed shall be identified by
  290  a unique form number placed in the lower left corner of each
  291  form.
  292         (4) A charge or form is considered approved on the 60th day
  293  after its date of filing unless it has been previously
  294  disapproved by the office. The office shall disapprove any form
  295  that does not meet the requirements of this part or that is
  296  unreasonable, discriminatory, misleading, or unfair. If such
  297  filings are disapproved, the office shall notify the discount
  298  medical plan organization and shall specify in the notice the
  299  reasons for disapproval.
  300         Section 10. Section 636.228, Florida Statutes, is amended
  301  to read:
  302         636.228 Marketing of discount medical plans.—
  303         (1) All advertisements, marketing materials, brochures, and
  304  discount cards used by marketers must be approved in writing for
  305  such use by the discount medical plan organization.
  306         (2) The discount medical plan organization must shall have
  307  an executed written agreement with a marketer before prior to
  308  the marketer’s marketing, promoting, selling, or distributing
  309  the discount medical plan. Such agreement must shall prohibit
  310  the marketer from using marketing materials, brochures, and
  311  discount cards without the approval in writing by the discount
  312  medical plan organization. The discount medical plan
  313  organization may delegate functions to its marketers but shall
  314  be bound by any acts of its marketers, within the scope of the
  315  delegation, which marketers’ agency, that do not comply with the
  316  provisions of this part.
  317         Section 11. Section 636.230, Florida Statutes, is amended
  318  to read:
  319         636.230 Bundling discount medical plans with other
  320  products.—A marketer or discount plan organization selling a
  321  discount plan with medical services and other services may
  322  commingle those products on a single page of forms,
  323  advertisements, marketing materials, or brochures When a
  324  marketer or discount medical plan organization sells a discount
  325  medical plan together with any other product, the fees for the
  326  discount medical plan must be provided in writing to the member
  327  if the fees exceed $30.
  328         Section 12. Section 636.232, Florida Statutes, is amended
  329  to read:
  330         636.232 Rules.—The commission may adopt rules to administer
  331  this part, including rules for the licensing of discount medical
  332  plan organizations,; establishing standards for evaluating
  333  forms, advertisements, marketing materials, brochures, and
  334  discount cards; providing for the collection of data,; relating
  335  to disclosures to plan members,; and defining terms used in this
  336  part.
  337         Section 13. Paragraph (b) of subsection (5) of section
  338  408.9091, Florida Statutes, is amended to read:
  339         408.9091 Cover Florida Health Care Access Program.—
  340         (5) PLAN PROPOSALS.—The agency and the office shall
  341  announce, no later than July 1, 2008, an invitation to negotiate
  342  for Cover Florida plan entities to design a Cover Florida plan
  343  proposal in which benefits and premiums are specified.
  344         (b) The agency and the office may announce an invitation to
  345  negotiate for the design of Cover Florida Plus products to
  346  companies that offer supplemental insurance, discount medical
  347  plan organizations licensed under part II of chapter 636, or
  348  prepaid health clinics licensed under part II of chapter 641.
  349         Section 14. Paragraph (d) of subsection (2) and paragraph
  350  (d) of subsection (4) of section 408.910, Florida Statutes, are
  351  amended to read:
  352         408.910 Florida Health Choices Program.—
  353         (2) DEFINITIONS.—As used in this section, the term:
  354         (d) “Insurer” means an entity licensed under chapter 624
  355  which offers an individual health insurance policy or a group
  356  health insurance policy, a preferred provider organization as
  357  defined in s. 627.6471, an exclusive provider organization as
  358  defined in s. 627.6472, or a health maintenance organization
  359  licensed under part I of chapter 641, or a prepaid limited
  360  health service organization or discount medical plan
  361  organization licensed under chapter 636.
  362         (4) ELIGIBILITY AND PARTICIPATION.—Participation in the
  363  program is voluntary and shall be available to employers,
  364  individuals, vendors, and health insurance agents as specified
  365  in this subsection.
  366         (d) All eligible vendors who choose to participate and the
  367  products and services that the vendors are permitted to sell are
  368  as follows:
  369         1. Insurers licensed under chapter 624 may sell health
  370  insurance policies, limited benefit policies, other risk-bearing
  371  coverage, and other products or services.
  372         2. Health maintenance organizations licensed under part I
  373  of chapter 641 may sell health maintenance contracts, limited
  374  benefit policies, other risk-bearing products, and other
  375  products or services.
  376         3. Prepaid limited health service organizations may sell
  377  products and services as authorized under part I of chapter 636,
  378  and discount medical plan organizations may sell products and
  379  services as authorized under part II of chapter 636.
  380         4. Prepaid health clinic service providers licensed under
  381  part II of chapter 641 may sell prepaid service contracts and
  382  other arrangements for a specified amount and type of health
  383  services or treatments.
  384         5. Health care providers, including hospitals and other
  385  licensed health facilities, health care clinics, licensed health
  386  professionals, pharmacies, and other licensed health care
  387  providers, may sell service contracts and arrangements for a
  388  specified amount and type of health services or treatments.
  389         6. Provider organizations, including service networks,
  390  group practices, professional associations, and other
  391  incorporated organizations of providers, may sell service
  392  contracts and arrangements for a specified amount and type of
  393  health services or treatments.
  394         7. Corporate entities providing specific health services in
  395  accordance with applicable state law may sell service contracts
  396  and arrangements for a specified amount and type of health
  397  services or treatments.
  399  A vendor described in subparagraphs 3.-7. may not sell products
  400  that provide risk-bearing coverage unless that vendor is
  401  authorized under a certificate of authority issued by the Office
  402  of Insurance Regulation and is authorized to provide coverage in
  403  the relevant geographic area. Otherwise eligible vendors may be
  404  excluded from participating in the program for deceptive or
  405  predatory practices, financial insolvency, or failure to comply
  406  with the terms of the participation agreement or other standards
  407  set by the corporation.
  408         Section 15. Subsection (11) of section 627.64731, Florida
  409  Statutes, is amended to read:
  410         627.64731 Leasing, renting, or granting access to a
  411  participating provider.—
  412         (11) This section does not apply to a contract between a
  413  contracting entity and a discount medical plan organization
  414  licensed or exempt under part II of chapter 636.
  415         Section 16. Paragraph (c) of subsection (7) of section
  416  636.003, Florida Statutes, is amended to read:
  417         636.003 Definitions.—As used in this act, the term:
  418         (7) “Prepaid limited health service organization” means any
  419  person, corporation, partnership, or any other entity which, in
  420  return for a prepayment, undertakes to provide or arrange for,
  421  or provide access to, the provision of a limited health service
  422  to enrollees through an exclusive panel of providers. Prepaid
  423  limited health service organization does not include:
  424         (c) Any person who is licensed pursuant to part II as a
  425  discount medical plan organization.
  426         Section 17. Paragraphs (c) and (d) of subsection (1) of
  427  section 636.205, Florida Statutes, are amended to read:
  428         636.205 Issuance of license; denial.—
  429         (1) Following receipt of an application filed pursuant to
  430  s. 636.204, the office shall review the application and notify
  431  the applicant of any deficiencies contained therein. The office
  432  shall issue a license to an applicant who has filed a completed
  433  application pursuant to s. 636.204 upon payment of the fees
  434  specified in s. 636.204 and upon the office being satisfied that
  435  the following conditions are met:
  436         (c) The ownership, control, and management of the entity
  437  are competent and trustworthy and possess managerial experience
  438  that would make the proposed operation beneficial to the
  439  subscribers. The office may shall not grant or continue to grant
  440  authority to transact the business of a discount medical plan
  441  organization in this state at any time during which the office
  442  has good reason to believe that the ownership, control, or
  443  management of the organization includes any person whose
  444  business operations are or have been marked by business
  445  practices or conduct that is detrimental to the public,
  446  stockholders, investors, or creditors.
  447         (d) The discount medical plan organization has a complaint
  448  procedure that will facilitate the resolution of subscriber
  449  grievances and that includes both formal and informal steps
  450  available within the organization.
  451         Section 18. Section 636.207, Florida Statutes, is amended
  452  to read:
  453         636.207 Applicability of part.—Except as otherwise provided
  454  in this part, discount medical plan organizations are governed
  455  by the provisions of this part and are exempt from the Florida
  456  Insurance Code unless specifically referenced.
  457         Section 19. Section 636.210, Florida Statutes, is amended
  458  to read:
  459         636.210 Prohibited activities of a discount medical plan
  460  organization.—
  461         (1) A discount medical plan organization may not:
  462         (a) Use in its advertisements, marketing material,
  463  brochures, and discount cards the term “insurance” except as
  464  otherwise provided in this part or as a disclaimer of any
  465  relationship between discount medical plan organization benefits
  466  and insurance;
  467         (b) Use in its advertisements, marketing material,
  468  brochures, and discount cards the terms “health plan,”
  469  “coverage,” “copay,” “copayments,” “preexisting conditions,”
  470  “guaranteed issue,” “premium,” “PPO,” “preferred provider
  471  organization,” or other terms in a manner that could reasonably
  472  mislead a person into believing the discount medical plan was
  473  health insurance;
  474         (c) Have restrictions on free access to plan providers,
  475  including, but not limited to, waiting periods and notification
  476  periods; or
  477         (d) Pay providers any fees for medical services.
  478         (2) A discount medical plan organization may not collect or
  479  accept money from a member for payment to a provider for
  480  specific medical services furnished or to be furnished to the
  481  member unless the organization has an active certificate of
  482  authority from the office to act as an administrator.
  483         Section 20. Subsection (1), paragraphs (b), (c), and (d) of
  484  subsection (2), and subsection (3) of section 636.218, Florida
  485  Statutes, are amended to read:
  486         636.218 Annual reports.—
  487         (1) Each discount medical plan organization shall must file
  488  with the office, within 3 months after the end of each fiscal
  489  year, an annual report.
  490         (2) Such reports must be on forms prescribed by the
  491  commission and must include:
  492         (b) If different from the initial application or the last
  493  annual report, a list of the names and residence addresses of
  494  all persons responsible for the conduct of the organization’s
  495  affairs, together with a disclosure of the extent and nature of
  496  any contracts or arrangements between such persons and the
  497  discount medical plan organization, including any possible
  498  conflicts of interest.
  499         (c) The number of discount medical plan members in the
  500  state.
  501         (d) Such other information relating to the performance of
  502  the discount medical plan organization as is reasonably required
  503  by the commission or office.
  504         (3) Every discount medical plan organization that which
  505  fails to file an annual report in the form and within the time
  506  required by this section shall forfeit up to $500 for each day
  507  for the first 10 days during which the neglect continues and
  508  shall forfeit up to $1,000 for each day after the first 10 days
  509  during which the neglect continues; and, upon notice by the
  510  office to that effect, the organization’s authority to enroll
  511  new members or to do business in this state ceases while such
  512  default continues. The office shall deposit all sums collected
  513  by the office under this section to the credit of the Insurance
  514  Regulatory Trust Fund. The office may not collect more than
  515  $50,000 for each report.
  516         Section 21. Section 636.220, Florida Statutes, is amended
  517  to read:
  518         636.220 Minimum capital requirements.—
  519         (1) Each discount medical plan organization shall must at
  520  all times maintain a net worth of at least $150,000.
  521         (2) The office may not issue a license unless the discount
  522  medical plan organization has a net worth of at least $150,000.
  523         Section 22. Section 636.222, Florida Statutes, is amended
  524  to read:
  525         636.222 Suspension or revocation of license; suspension of
  526  enrollment of new members; terms of suspension.—
  527         (1) The office may suspend the authority of a discount
  528  medical plan organization to enroll new members, revoke any
  529  license issued to a discount medical plan organization, or order
  530  compliance if the office finds that any of the following
  531  conditions exist:
  532         (a) The organization is not operating in compliance with
  533  this part.
  534         (b) The organization does not have the minimum net worth as
  535  required by this part.
  536         (c) The organization has advertised, merchandised, or
  537  attempted to merchandise its services in such a manner as to
  538  misrepresent its services or capacity for service or has engaged
  539  in deceptive, misleading, or unfair practices with respect to
  540  advertising or merchandising.
  541         (d) The organization is not fulfilling its obligations as a
  542  medical discount medical plan organization.
  543         (e) The continued operation of the organization would be
  544  hazardous to its members.
  545         (2) If the office has cause to believe that grounds for the
  546  suspension or revocation of a license exist, the office must
  547  shall notify the discount medical plan organization in writing
  548  specifically stating the grounds for suspension or revocation
  549  and shall pursue a hearing on the matter in accordance with the
  550  provisions of chapter 120.
  551         (3) When the license of a discount medical plan
  552  organization is surrendered or revoked, such organization must
  553  proceed, immediately following the effective date of the order
  554  of revocation, to wind up its affairs transacted under the
  555  license. The organization may not engage in any further
  556  advertising, solicitation, collecting of fees, or renewal of
  557  contracts.
  558         (4) The office shall, in its order suspending the authority
  559  of a discount medical plan organization to enroll new members,
  560  specify the period during which the suspension is to be in
  561  effect and the conditions, if any, which must be met by the
  562  discount medical plan organization before prior to reinstatement
  563  of its license to enroll new members. The order of suspension is
  564  subject to rescission or modification by further order of the
  565  office before prior to the expiration of the suspension period.
  566  Reinstatement may not be made unless requested by the discount
  567  medical plan organization; however, the office may not grant
  568  reinstatement if it finds that the circumstances for which the
  569  suspension occurred still exist or are likely to recur.
  570         Section 23. Section 636.223, Florida Statutes, is amended
  571  to read:
  572         636.223 Administrative penalty.—In lieu of suspending or
  573  revoking a certificate of authority whenever any discount
  574  medical plan organization has been found to have violated any
  575  provision of this part, the office may:
  576         (1) Issue and cause to be served upon the organization
  577  charged with the violation a copy of such findings and an order
  578  requiring such organization to cease and desist from engaging in
  579  the act or practice that constitutes the violation.
  580         (2) Impose a monetary penalty of not less than $100 for
  581  each violation, but not to exceed an aggregate penalty of
  582  $75,000.
  583         Section 24. Section 636.224, Florida Statutes, is amended
  584  to read:
  585         636.224 Notice of change of name or address of discount
  586  medical plan organization.—Each discount medical plan
  587  organization must provide the office at least 30 days’ advance
  588  notice of any change in the discount medical plan organization’s
  589  name, address, principal business address, or mailing address.
  590         Section 25. Section 636.226, Florida Statutes, is amended
  591  to read:
  592         636.226 Provider name listing.—Each discount medical plan
  593  organization must maintain on an Internet website an up-to-date
  594  list of the names and addresses of the providers with which it
  595  has contracted, on an Internet website page, the address of
  596  which must shall be prominently displayed on all its
  597  advertisements, marketing materials, brochures, and discount
  598  cards. This section applies to those providers with whom the
  599  discount medical plan organization has contracted directly, as
  600  well as those who are members of a provider network with which
  601  the discount medical plan organization has contracted.
  602         Section 26. Section 636.234, Florida Statutes, is amended
  603  to read:
  604         636.234 Service of process on a discount medical plan
  605  organization.—Sections 624.422 and 624.423 apply to a discount
  606  medical plan organization as if the discount medical plan
  607  organization were an insurer.
  608         Section 27. Section 636.236, Florida Statutes, is amended
  609  to read:
  610         636.236 Surety bond or security deposit.—
  611         (1) Each discount medical plan organization licensed
  612  pursuant to the provisions of this part shall must maintain in
  613  force a surety bond in its own name in an amount not less than
  614  $35,000 to be used at the discretion of the office to protect
  615  the financial interests of members who may be adversely affected
  616  by the insolvency of a discount medical plan organization. The
  617  bond must be issued by an insurance company that is licensed to
  618  do business in this state.
  619         (2) In lieu of the bond specified in subsection (1), a
  620  licensed discount medical plan organization may deposit and
  621  maintain deposited in trust with the department securities
  622  eligible for deposit under s. 625.52 having at all times a value
  623  of not less than $35,000. If a licensed discount medical plan
  624  organization substitutes its deposited securities under this
  625  subsection with a surety bond authorized in subsection (1), such
  626  deposited securities must shall be returned to the discount
  627  medical plan organization no later than 45 days following the
  628  effective date of the surety bond.
  629         (3) A No judgment creditor or other claimant of a discount
  630  medical plan organization, other than the office or department,
  631  does not shall have the right to levy upon any of the assets or
  632  securities held in this state as a deposit under subsections (1)
  633  and (2).
  634         Section 28. Subsections (2) and (3) of section 636.238,
  635  Florida Statutes, are amended to read:
  636         636.238 Penalties for violation of this part.—
  637         (2) A person who operates as or willfully aids and abets
  638  another operating as a discount medical plan organization in
  639  violation of s. 636.204(1) commits a felony punishable as
  640  provided for in s. 624.401(4)(b), as if the unlicensed discount
  641  medical plan organization were an unauthorized insurer, and the
  642  fees, dues, charges, or other consideration collected from the
  643  members by the unlicensed discount medical plan organization or
  644  marketer were insurance premium.
  645         (3) A person who collects fees for purported membership in
  646  a discount medical plan but purposefully fails to provide the
  647  promised benefits commits a theft, punishable as provided in s.
  648  812.014.
  649         Section 29. Subsection (1) of section 636.240, Florida
  650  Statutes, is amended to read:
  651         636.240 Injunctions.—
  652         (1) In addition to the penalties and other enforcement
  653  provisions of this part, the office may seek both temporary and
  654  permanent injunctive relief when:
  655         (a) A discount medical plan is being operated by any person
  656  or entity that is not licensed pursuant to this part.
  657         (b) Any person, entity, or discount medical plan
  658  organization has engaged in any activity prohibited by this part
  659  or any rule adopted pursuant to this part.
  660         Section 30. Section 636.244, Florida Statutes, is amended
  661  to read:
  662         636.244 Unlicensed discount medical plan organizations.
  663  Sections The provisions of ss. 626.901-626.912 apply to the
  664  activities of an unlicensed discount medical plan organization
  665  as if the unlicensed discount medical plan organization were an
  666  unauthorized insurer.
  667         Section 31. This act shall take effect upon becoming a law.
  669  ================= T I T L E  A M E N D M E N T ================
  670  And the title is amended as follows:
  671         Delete everything before the enacting clause
  672  and insert:
  673                        A bill to be entitled                      
  674         An act relating to discount plan organizations;
  675         revising the titles of ch. 636, F.S., and part II of
  676         ch. 636, F.S.; amending s. 636.202, F.S.; revising
  677         definitions; amending s. 636.204, F.S.; conforming
  678         provisions to changes made by the act; requiring
  679         third-party entities that contract with providers to
  680         administer or provide platforms for discount plans to
  681         be licensed as discount plan organizations; amending
  682         s. 636.206, F.S.; conforming provisions to changes
  683         made by the act; requiring discount plan organizations
  684         to maintain, for a specified timeframe, certain
  685         records in a form accessible to the Office of
  686         Insurance Regulation during an examination or
  687         investigation; amending s. 636.208, F.S.; conforming
  688         provisions to changes made by the act; specifying
  689         periodic charge reimbursement and other requirements
  690         for discount plan organizations following membership
  691         cancellation requests; amending s. 636.212, F.S.;
  692         requiring discount plan organizations and marketers to
  693         provide specified disclosures to prospective members
  694         before enrollment; authorizing discount plan
  695         organizations and marketers to make other disclosures;
  696         requiring prospective members to acknowledge
  697         acceptance of disclosures before enrollment;
  698         specifying requirements for disclosures made in
  699         writing or by electronic means; revising requirements
  700         for disclosures made by telephone; amending s.
  701         636.214, F.S.; making a technical change; conforming
  702         provisions to changes made by the act; amending s.
  703         636.216, F.S.; deleting provisions relating to charge
  704         and form filings; conforming a provision to changes
  705         made by the act; amending s. 636.228, F.S.; conforming
  706         provisions to changes made by the act; authorizing a
  707         discount plan organization to delegate functions to
  708         its marketers; providing that the discount plan
  709         organization is bound by acts of its marketers within
  710         the scope of the delegation; amending s. 636.230,
  711         F.S.; conforming provisions to changes made by the
  712         act; authorizing a marketer or discount plan
  713         organization to commingle certain products on a single
  714         page of certain documents; deleting a requirement for
  715         discount medical plan fees to be provided in writing
  716         under certain circumstances; amending s. 636.232,
  717         F.S.; conforming a provision to changes made by the
  718         act; deleting rulemaking authority of the Financial
  719         Services Commission as to the establishment of certain
  720         standards; amending ss. 408.9091, 408.910, 627.64731,
  721         636.003, 636.205, 636.207, 636.210, 636.218, 636.220,
  722         636.222, 636.223, 636.224, 636.226, 636.234, 636.236,
  723         636.238, 636.240, and 636.244, F.S.; conforming
  724         provisions to changes made by the act; providing an
  725         effective date.