Florida Senate - 2023               CS for CS for CS for SB 1158
       
       
        
       By the Committee on Fiscal Policy; the Appropriations Committee
       on Agriculture, Environment, and General Government; the
       Committee on Banking and Insurance; and Senator DiCeglie
       
       
       
       594-04095-23                                          20231158c3
    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
   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; providing
   38         construction; authorizing the Chief Financial Officer
   39         to remove a director under certain circumstances;
   40         specifying requirements for, and restrictions on,
   41         directors; prohibiting directors and employees of the
   42         association from knowingly accepting certain gifts or
   43         expenditures; providing penalties; amending s.
   44         497.005, F.S.; adding and revising definitions for
   45         purposes of the Florida Funeral, Cemetery, and
   46         Consumer Services Act; amending s. 624.1265, F.S.;
   47         revising conditions for a nonprofit religious
   48         organization to be exempt from requirements of the
   49         Florida Insurance Code; amending s. 624.501, F.S.;
   50         deleting an application filing and license fee for
   51         reinsurance intermediaries; amending s. 626.015, F.S.;
   52         revising the definition of the term “association” for
   53         purposes of part I of ch. 626, F.S.; amending s.
   54         626.171, F.S.; deleting the authority of designated
   55         examination centers to take fingerprints of applicants
   56         for a license as an agent, customer representative,
   57         adjuster, service representative, or reinsurance
   58         intermediary; amending s. 626.173, F.S.; providing
   59         that a certain notice requirement for certain licensed
   60         insurance agencies ceasing the transacting of
   61         insurance does not apply to certain kinds of
   62         insurance; amending s. 626.207, F.S.; revising
   63         violations for which the department must adopt rules
   64         establishing specific penalties; amending s. 626.221,
   65         F.S.; adding a certification that exempts an applicant
   66         for license as an all-lines adjuster from an
   67         examination requirement; amending s. 626.2815, F.S.;
   68         revising continuing education requirements for certain
   69         insurance representatives; amending s. 626.321, F.S.;
   70         deleting certain requirements for, and restrictions
   71         on, licensees of specified limited licenses; adding a
   72         limited license for transacting preneed funeral
   73         agreement insurance; specifying conditions for issuing
   74         such license without an examination; amending s.
   75         626.611, F.S.; revising specified grounds for
   76         compulsory disciplinary actions taken by the
   77         department against insurance representatives; amending
   78         s. 626.621, F.S.; adding grounds for discretionary
   79         disciplinary actions taken by the department against
   80         insurance representatives; amending s. 626.7492, F.S.;
   81         revising definitions of the terms “producer” and
   82         “reinsurance intermediary manager”; revising licensure
   83         requirements for reinsurance intermediary brokers and
   84         reinsurance intermediary managers; deleting the
   85         authority of the department to refuse to issue a
   86         reinsurance intermediary license under certain
   87         circumstances; amending s. 626.752, F.S.; requiring
   88         the department to suspend the authority of an insurer
   89         or employer to appoint licensees under certain
   90         circumstances relating to the exchange of insurance
   91         business; amending s. 626.785, F.S.; authorizing
   92         certain persons to obtain a limited license to sell
   93         only policies of life insurance covering the expense
   94         of a prearrangement for funeral services or
   95         merchandise; amending ss. 626.793 and 626.837, F.S.;
   96         requiring the department to suspend the authority of
   97         an insurer or employer to appoint licensees under
   98         certain circumstances relating to the acceptance of
   99         excess or rejected insurance business; amending s.
  100         626.8411, F.S.; providing that certain notice
  101         requirements do not apply to title insurance agents or
  102         title insurance agencies; amending s. 626.8437, F.S.;
  103         adding grounds for compulsory disciplinary actions
  104         taken by the department against a title insurance
  105         agent or agency; amending s. 626.844, F.S.; adding
  106         grounds for discretionary disciplinary actions taken
  107         by the department against a title insurance agent or
  108         agency; amending s. 626.8473, F.S.; revising
  109         requirements for engaging in the business as an escrow
  110         agent in connection with real estate closing
  111         transactions; amending s. 626.854, F.S.; revising
  112         applicability of a prohibited act relating to public
  113         insurance adjusters; amending s. 626.874, F.S.;
  114         revising eligibility requirements for the department’s
  115         issuance of licenses to catastrophe or emergency
  116         adjusters; revising grounds on which the department
  117         may deny such license; amending s. 626.9892, F.S.;
  118         revising a condition and adding violations for which
  119         the department may pay rewards under the Anti-Fraud
  120         Reward Program; amending s. 626.9957, F.S.; providing
  121         for the expiration of a health coverage navigator’s
  122         registration under certain circumstances; specifying a
  123         restriction on expired registrations; amending s.
  124         627.351, F.S.; revising requirements for membership of
  125         the Florida Medical Malpractice Joint Underwriting
  126         Association; providing construction; specifying a
  127         requirement for filling vacancies; authorizing the
  128         Chief Financial Officer to remove board members under
  129         certain circumstances; providing requirements for, and
  130         restrictions on, board members; providing penalties;
  131         amending s. 627.4215, F.S.; revising the applicability
  132         of disclosure requirements for health insurers
  133         relating to behavioral health insurance coverage;
  134         amending s. 627.7015, F.S.; specifying when a disputed
  135         property insurance claim becomes eligible for
  136         mediation; prohibiting an insurer from requiring
  137         mediation under certain circumstances; providing
  138         construction; providing that fees for a rescheduled
  139         mediation conference be assessed by the department
  140         rather than the administrator; authorizing the
  141         department to suspend an insurer’s authority to
  142         appoint licensees under certain circumstances;
  143         amending s. 627.7074, F.S.; authorizing the department
  144         to designate, by written contract or agreement, an
  145         entity or a person to administer the alternative
  146         dispute resolution process for sinkhole insurance
  147         claims; amending s. 627.745, F.S.; revising
  148         requirements and procedures for the mediation of
  149         personal injury claims under a motor vehicle insurance
  150         policy; requiring the department to adopt specified
  151         rules relating to a motor vehicle claims insurance
  152         mediation program; authorizing the department to
  153         designate a person or entity to serve as
  154         administrator; amending s. 631.141, F.S.; authorizing
  155         the department in receivership proceedings to take
  156         certain actions as a domiciliary receiver; amending s.
  157         631.252, F.S.; revising conditions under which
  158         policies and contracts of insolvent insurers are
  159         canceled; amending ss. 631.56, 631.716, 631.816, and
  160         631.912, F.S.; revising membership eligibility
  161         requirements for the Florida Insurance Guaranty
  162         Association, the Florida Life and Health Insurance
  163         Guaranty Association, the Florida Health Maintenance
  164         Organization Consumer Assistance Plan, and the Florida
  165         Workers’ Compensation Insurance Guaranty Association,
  166         Incorporated, respectively; providing construction;
  167         authorizing the Chief Financial Officer to remove a
  168         board member under certain circumstances; specifying
  169         requirements for, and restrictions on, board members;
  170         providing penalties; creating s. 633.1423, F.S.;
  171         defining the term “organization”; authorizing the
  172         Division of State Fire Marshal to establish a direct
  173         support organization; specifying the purpose of and
  174         requirements for the organization; specifying
  175         requirements for the organization’s written contract
  176         and board of directors; providing requirements for the
  177         use of property, annual budgets and reports, an annual
  178         audit, and the division’s receipt of proceeds;
  179         authorizing moneys received to be held in a depository
  180         account; providing for future repeal; amending s.
  181         634.181, F.S.; adding grounds for compulsory
  182         disciplinary actions by the department against motor
  183         vehicle service agreement salespersons; requiring the
  184         department to immediately temporarily suspend a
  185         license or appointment under certain circumstances;
  186         prohibiting a person from transacting insurance
  187         business after such suspension; authorizing the
  188         department to adopt rules; amending s. 634.191, F.S.;
  189         revising grounds for discretionary disciplinary
  190         actions by the department against motor vehicle
  191         service agreement salespersons; requiring salespersons
  192         to submit certain documents to the department;
  193         authorizing the department to adopt rules; amending s.
  194         634.320, F.S.; revising grounds for compulsory
  195         disciplinary actions by the department against home
  196         warranty association sales representatives; requiring
  197         the department to immediately temporarily suspend a
  198         license or appointment under certain circumstances;
  199         prohibiting a person from transacting insurance
  200         business after such suspension; authorizing the
  201         department to adopt rules; amending s. 634.321, F.S.;
  202         revising grounds for discretionary disciplinary
  203         actions by the department against home warranty
  204         association sales representatives; authorizing the
  205         department to adopt rules; amending s. 634.419, F.S.;
  206         providing that specified home solicitation sale
  207         requirements do not apply to certain persons relating
  208         to the solicitation of service warranty or related
  209         service or product sales; amending s. 634.422, F.S.;
  210         revising grounds for compulsory disciplinary actions
  211         by the department against service warranty association
  212         sales representatives; requiring the department to
  213         immediately temporarily suspend a license or
  214         appointment under certain circumstances; prohibiting a
  215         person from transacting insurance business after such
  216         suspension; authorizing the department to adopt rules;
  217         amending s. 634.423, F.S.; revising grounds for
  218         discretionary disciplinary actions by the department
  219         against service warranty association sales
  220         representatives; authorizing the department to adopt
  221         rules; reordering and amending s. 648.25, F.S.;
  222         defining and redefining terms; amending s. 648.26,
  223         F.S.; authorizing certain actions by the department or
  224         the Office of Insurance Regulation relating to certain
  225         confidential records relating to bail bond agents;
  226         amending s. 648.27, F.S.; deleting a provision
  227         relating to the continuance of a temporary bail bond
  228         agent license; amending s. 648.285, F.S.; revising
  229         requirements, conditions, and procedures for a bail
  230         bond agency license; providing applicability;
  231         conforming a provision to changes made by the act;
  232         amending s. 648.30, F.S.; revising requirements and
  233         conditions for the licensure and appointment as a bail
  234         bond agent or bail bond agency; conforming a provision
  235         to changes made by the act; amending s. 648.31, F.S.;
  236         specifying that there is no fee for the issuance of
  237         any appointment to a bail bond agency; conforming a
  238         provision to changes made by the act; amending s.
  239         648.34, F.S.; revising qualifications for a bail bond
  240         agent license; conforming a provision to changes made
  241         by the act; amending s. 648.355, F.S.; deleting
  242         provisions relating to temporary licenses as a limited
  243         surety agent or professional bail bond agent;
  244         specifying requirements for an individual licensed as
  245         a temporary bail bond agent to qualify for bail bond
  246         agent license; prohibiting the department from issuing
  247         a temporary bail bond agent license beginning on a
  248         specified date; providing construction relating to
  249         existing temporary licenses; amending s. 648.382,
  250         F.S.; revising requirements for the appointment of
  251         bail bond agents or bail bond agencies; conforming a
  252         provision to changes made by the act; amending s.
  253         648.386, F.S.; defining the term “classroom
  254         instruction”; revising requirements for approval and
  255         certification as an approved limited surety agent and
  256         professional bail bond agent continuing education
  257         school; amending s. 648.387, F.S.; renaming primary
  258         bail bond agents as bail bond agents in charge;
  259         revising the department’s disciplinary authority;
  260         revising prohibited actions and the applicability of
  261         such prohibitions; providing for the automatic
  262         expiration of a bail bond agency’s license under
  263         certain circumstances; creating s. 648.3875, F.S.;
  264         providing requirements for applying for designation as
  265         a bail bond agent in charge; amending s. 648.39, F.S.;
  266         revising applicability of provisions relating to
  267         termination of appointments of certain agents and
  268         agencies; repealing s. 648.41, F.S., relating to
  269         termination of appointment of temporary bail bond
  270         agents; amending s. 648.42, F.S.; conforming a
  271         provision to changes made by the act; making a
  272         technical change; amending s. 648.44, F.S.; revising
  273         applicability of prohibited acts; revising and
  274         specifying prohibited acts of bail bond agents and
  275         bail bond agencies; conforming provisions to changes
  276         made by the act; amending s. 648.441, F.S.; revising
  277         applicability of a prohibition against furnishing
  278         supplies to an unlicensed bail bond agent; amending s.
  279         648.46, F.S.; authorizing certain actions by the
  280         department or the office relating to certain
  281         confidential records relating to bail bond agents;
  282         amending s. 648.50, F.S.; revising applicability of
  283         provisions relating to disciplinary actions taken by
  284         the department; conforming provisions to changes made
  285         by the act; amending s. 717.135, F.S.; revising a
  286         requirement for, and a prohibition on, claimants’
  287         representatives relating to unclaimed property
  288         recovery agreements and purchase agreements; providing
  289         construction; amending s. 843.021, F.S.; revising a
  290         defense to an unlawful possession of a concealed
  291         handcuff key; amending ss. 631.152, 631.398, and
  292         903.09, F.S.; conforming cross-references; ratifying
  293         specified rules of the department; providing
  294         construction; providing effective dates.
  295          
  296  Be It Enacted by the Legislature of the State of Florida:
  297  
  298         Section 1. Paragraph (e) of subsection (2) and subsection
  299  (6) of section 20.121, Florida Statutes, are amended to read:
  300         20.121 Department of Financial Services.—There is created a
  301  Department of Financial Services.
  302         (2) DIVISIONS.—The Department of Financial Services shall
  303  consist of the following divisions and office:
  304         (e) The Division of Investigative and Forensic Services,
  305  which shall function as a criminal justice agency for purposes
  306  of ss. 943.045-943.08. The division may initiate and conduct
  307  investigations into any matter under the jurisdiction of the
  308  Chief Financial Officer and Fire Marshal within or outside of
  309  this state as it deems necessary. If, during an investigation,
  310  the division has reason to believe that any criminal law of this
  311  state or the United States has or may have been violated, it
  312  shall refer any records tending to show such violation to state
  313  or federal law enforcement and, if applicable, federal or
  314  prosecutorial agencies and shall provide investigative
  315  assistance to those agencies as appropriate required. The
  316  division shall include the following bureaus and office:
  317         1. The Bureau of Forensic Services;
  318         2. The Bureau of Fire, Arson, and Explosives
  319  Investigations;
  320         3. The Office of Fiscal Integrity, which shall have a
  321  separate budget;
  322         4. The Bureau of Insurance Fraud; and
  323         5. The Bureau of Workers’ Compensation Fraud.
  324         (6)STRATEGIC MARKETS RESEARCH AND ASSESSMENT UNIT.—The
  325  Strategic Markets Research and Assessment Unit is established
  326  within the Department of Financial Services. The Chief Financial
  327  Officer or his or her designee shall report on September 1,
  328  2008, and quarterly thereafter, to the Cabinet, the President of
  329  the Senate, and the Speaker of the House of Representatives on
  330  the status of the state’s financial services markets. At a
  331  minimum, the report must include a summary of issues, trends,
  332  and threats that broadly impact the condition of the financial
  333  services industries, along with the effect of such conditions on
  334  financial institutions, the securities industries, other
  335  financial entities, and the credit market. The Chief Financial
  336  Officer shall also provide findings and recommendations
  337  regarding regulatory and policy changes to the Cabinet, the
  338  President of the Senate, and the Speaker of the House of
  339  Representatives.
  340         Section 2. Subsections (2) and (4), paragraph (a) of
  341  subsection (8), and subsection (12) of section 112.215, Florida
  342  Statutes, are amended to read:
  343         112.215 Government employees; deferred compensation
  344  program.—
  345         (2) For the purposes of this section, the term “government
  346  employee” means any person employed, whether appointed, elected,
  347  or under contract, by providing services for the state or any
  348  governmental unit of the state, including, but not limited to,;
  349  any state agency; any or county, municipality, or other
  350  political subdivision of the state; any special district or
  351  water management district, as the terms are defined in s.
  352  189.012 municipality; any state university or Florida College
  353  System institution, as the terms are defined in s. 1000.21(6)
  354  and (3), respectively board of trustees; or any constitutional
  355  county officer under s. 1(d), Art. VIII of the State
  356  Constitution for which compensation or statutory fees are paid.
  357         (4)(a) The Chief Financial Officer, with the approval of
  358  the State Board of Administration, shall establish a state such
  359  plan or plans of deferred compensation for government state
  360  employees and may include persons employed by a state university
  361  as defined in s. 1000.21, a special district as defined in s.
  362  189.012, or a water management district as defined in s.
  363  189.012, including all such investment vehicles or products
  364  incident thereto, as may be available through, or offered by,
  365  qualified companies or persons, and may approve one or more such
  366  plans for implementation by and on behalf of the state and its
  367  agencies and employees.
  368         (b) If the Chief Financial Officer deems it advisable, he
  369  or she shall have the power, with the approval of the State
  370  Board of Administration, to create a trust or other special
  371  funds for the segregation of funds or assets resulting from
  372  compensation deferred at the request of government employees
  373  participating in of the state plan or its agencies and for the
  374  administration of such program.
  375         (c) The Chief Financial Officer, with the approval of the
  376  State Board of Administration, may delegate responsibility for
  377  administration of the state plan to a person the Chief Financial
  378  Officer determines to be qualified, compensate such person, and,
  379  directly or through such person or pursuant to a collective
  380  bargaining agreement, contract with a private corporation or
  381  institution to provide such services as may be part of any such
  382  plan or as may be deemed necessary or proper by the Chief
  383  Financial Officer or such person, including, but not limited to,
  384  providing consolidated billing, individual and collective
  385  recordkeeping and accountings, asset purchase, control, and
  386  safekeeping, and direct disbursement of funds to employees or
  387  other beneficiaries. The Chief Financial Officer may authorize a
  388  person, private corporation, or institution to make direct
  389  disbursement of funds under the state plan to an employee or
  390  other beneficiary.
  391         (d) In accordance with such approved plan, and upon
  392  contract or agreement with an eligible government employee,
  393  deferrals of compensation may be accomplished by payroll
  394  deductions made by the appropriate officer or officers of the
  395  state, with such funds being thereafter held and administered in
  396  accordance with the plan.
  397         (e) The administrative costs of the deferred compensation
  398  plan must be wholly or partially self-funded. Fees for such
  399  self-funding of the plan shall be paid by investment providers
  400  and may be recouped from their respective plan participants.
  401  Such fees shall be deposited in the Deferred Compensation Trust
  402  Fund.
  403         (8)(a) There is created a Deferred Compensation Advisory
  404  Council composed of eight seven members.
  405         1. One member shall be appointed by the Speaker of the
  406  House of Representatives and the President of the Senate jointly
  407  and shall be an employee of the legislative branch.
  408         2. One member shall be appointed by the Chief Justice of
  409  the Supreme Court and shall be an employee of the judicial
  410  branch.
  411         3. One member shall be appointed by the chair of the Public
  412  Employees Relations Commission and shall be a nonexempt public
  413  employee.
  414         4. The remaining five four members shall be employed by the
  415  executive branch and shall be appointed as follows:
  416         a. One member shall be appointed by the Chancellor of the
  417  State University System and shall be an employee of the
  418  university system.
  419         b. One member shall be appointed by the Chief Financial
  420  Officer and shall be an employee of the Chief Financial Officer.
  421         c. One member shall be appointed by the Governor and shall
  422  be an employee of the executive branch.
  423         d. One member shall be appointed by the Executive Director
  424  of the State Board of Administration and shall be an employee of
  425  the State Board of Administration.
  426         e.One member shall be appointed by the Chancellor of the
  427  Florida College System and shall be an employee of the Florida
  428  College System.
  429         (12) The Chief Financial Officer may adopt any rule
  430  necessary to administer and implement this act with respect to
  431  the state deferred compensation plan or plans for state
  432  employees and persons employed by a state university as defined
  433  in s. 1000.21, a special district as defined in s. 189.012, or a
  434  water management district as defined in s. 189.012.
  435         Section 3. Section 215.55952, Florida Statutes, is amended
  436  to read:
  437         215.55952 Triennial Annual report on economic impact of a
  438  1-in-100-year hurricane.—The Chief Financial Officer shall
  439  provide a report on the economic impact on the state of a 1-in
  440  100-year hurricane to the Governor, the President of the Senate,
  441  and the Speaker of the House of Representatives by March 1,
  442  2025, and of each triennial year thereafter. The report shall
  443  include an estimate of the short-term and long-term fiscal
  444  impacts of such a storm on Citizens Property Insurance
  445  Corporation, the Florida Hurricane Catastrophe Fund, the private
  446  insurance and reinsurance markets, the state economy, and the
  447  state debt. The report shall also include an analysis of the
  448  average premium increase to fund a 1-in-100-year hurricane event
  449  and list the average cost, in both a percentage and dollar
  450  amount, impact to consumers on a county-level basis. The report
  451  may also include recommendations by the Chief Financial Officer
  452  for preparing for such a hurricane and reducing the economic
  453  impact of such a hurricane on the state. In preparing the
  454  analysis, the Chief Financial Officer shall coordinate with and
  455  obtain data from the Office of Insurance Regulation, Citizens
  456  Property Insurance Corporation, the Florida Hurricane
  457  Catastrophe Fund, the Florida Commission on Hurricane Loss
  458  Projection Methodology, the State Board of Administration, the
  459  Office of Economic and Demographic Research, and other state
  460  agencies.
  461         Section 4. Subsection (1) of section 274.01, Florida
  462  Statutes, is amended to read:
  463         274.01 Definitions.—The following words as used in this act
  464  have the meanings set forth in the below subsections, unless a
  465  different meaning is required by the context:
  466         (1) “Governmental unit” means the governing board,
  467  commission, or authority of a county, a county agency, a
  468  municipality, a special district as defined in s. 189.012 or
  469  taxing district of the state, or the sheriff of the county.
  470         Section 5. Paragraph (c) of subsection (9) and subsections
  471  (12) and (14) of section 440.13, Florida Statutes, are amended
  472  to read:
  473         440.13 Medical services and supplies; penalty for
  474  violations; limitations.—
  475         (9) EXPERT MEDICAL ADVISORS.—
  476         (c) If there is disagreement in the opinions of the health
  477  care providers, if two health care providers disagree on medical
  478  evidence supporting the employee’s complaints or the need for
  479  additional medical treatment, or if two health care providers
  480  disagree that the employee is able to return to work, the
  481  department may, and the judge of compensation claims may shall,
  482  upon his or her own motion or within 15 days after receipt of a
  483  written request by either the injured employee, the employer, or
  484  the carrier, order the injured employee to be evaluated by an
  485  expert medical advisor. The injured employee and the employer or
  486  carrier may agree on the health care provider to serve as an
  487  expert medical advisor. If the parties do not agree, the judge
  488  of compensation claims shall select an expert medical advisor
  489  from the department’s list of certified expert medical advisors.
  490  If a certified medical advisor within the relevant medical
  491  specialty is unavailable, the judge of compensation claims shall
  492  appoint any otherwise qualified health care provider to serve as
  493  an expert medical advisor without obtaining the department’s
  494  certification. The opinion of the expert medical advisor is
  495  presumed to be correct unless there is clear and convincing
  496  evidence to the contrary as determined by the judge of
  497  compensation claims. The expert medical advisor appointed to
  498  conduct the evaluation shall have free and complete access to
  499  the medical records of the employee. An employee who fails to
  500  report to and cooperate with such evaluation forfeits
  501  entitlement to compensation during the period of failure to
  502  report or cooperate.
  503         (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
  504  REIMBURSEMENT ALLOWANCES.—
  505         (a) A three-member panel is created, consisting of the
  506  Chief Financial Officer, or the Chief Financial Officer’s
  507  designee, and two members to be appointed by the Governor,
  508  subject to confirmation by the Senate, one member who, on
  509  account of present or previous vocation, employment, or
  510  affiliation, shall be classified as a representative of
  511  employers, the other member who, on account of previous
  512  vocation, employment, or affiliation, shall be classified as a
  513  representative of employees. The panel shall determine statewide
  514  schedules of maximum reimbursement allowances for medically
  515  necessary treatment, care, and attendance provided by
  516  physicians, hospitals and, ambulatory surgical centers, work
  517  hardening programs, pain programs, and durable medical
  518  equipment. The maximum reimbursement allowances for inpatient
  519  hospital care shall be based on a schedule of per diem rates, to
  520  be approved by the three-member panel no later than March 1,
  521  1994, to be used in conjunction with a precertification manual
  522  as determined by the department, including maximum hours in
  523  which an outpatient may remain in observation status, which
  524  shall not exceed 23 hours. All compensable charges for hospital
  525  outpatient care shall be reimbursed at 75 percent of usual and
  526  customary charges, except as otherwise provided by this
  527  subsection. Annually, the three-member panel shall adopt
  528  schedules of maximum reimbursement allowances for physicians,
  529  hospital inpatient care, hospital outpatient care, and
  530  ambulatory surgical centers, work-hardening programs, and pain
  531  programs. A An individual physician, hospital or an, ambulatory
  532  surgical center, pain program, or work-hardening program shall
  533  be reimbursed either the agreed-upon contract price or the
  534  maximum reimbursement allowance in the appropriate schedule.
  535         (b) It is the intent of the Legislature to increase the
  536  schedule of maximum reimbursement allowances for selected
  537  physicians effective January 1, 2004, and to pay for the
  538  increases through reductions in payments to hospitals. Revisions
  539  developed pursuant to this subsection are limited to the
  540  following:
  541         1. Payments for outpatient physical, occupational, and
  542  speech therapy provided by hospitals shall be reduced to the
  543  schedule of maximum reimbursement allowances for these services
  544  which applies to nonhospital providers.
  545         (c)2. Payments for scheduled outpatient nonemergency
  546  radiological and clinical laboratory services that are not
  547  provided in conjunction with a surgical procedure shall be
  548  reduced to the schedule of maximum reimbursement allowances for
  549  these services which applies to nonhospital providers.
  550         (d)3. Outpatient reimbursement for scheduled surgeries
  551  shall be reduced from 75 percent of charges to 60 percent of
  552  charges.
  553         (e)1.By July 1 of each year, the department shall notify
  554  carriers and self-insurers of the physician and nonhospital
  555  services schedule of maximum reimbursement allowances. The
  556  notice must include publication of this schedule of maximum
  557  reimbursement allowances on the division’s website. This
  558  schedule is not subject to approval by the three-member panel
  559  and does not include reimbursement for prescription medication.
  560         2.Subparagraph 1. shall take effect January 1, following
  561  the July 1, 2024, notice of the physician and nonhospital
  562  services schedule of maximum reimbursement allowances which the
  563  department provides to carriers and self-insurers.
  564         (f)4. Maximum reimbursement for a physician licensed under
  565  chapter 458 or chapter 459 shall be increased to 110 percent of
  566  the reimbursement allowed by Medicare, using appropriate codes
  567  and modifiers or the medical reimbursement level adopted by the
  568  three-member panel as of January 1, 2003, whichever is greater.
  569         (g)5. Maximum reimbursement for surgical procedures shall
  570  be increased to 140 percent of the reimbursement allowed by
  571  Medicare or the medical reimbursement level adopted by the
  572  three-member panel as of January 1, 2003, whichever is greater.
  573         (h)(c) As to reimbursement for a prescription medication,
  574  the reimbursement amount for a prescription shall be the average
  575  wholesale price plus $4.18 for the dispensing fee. For
  576  repackaged or relabeled prescription medications dispensed by a
  577  dispensing practitioner as provided in s. 465.0276, the fee
  578  schedule for reimbursement shall be 112.5 percent of the average
  579  wholesale price, plus $8.00 for the dispensing fee. For purposes
  580  of this subsection, the average wholesale price shall be
  581  calculated by multiplying the number of units dispensed times
  582  the per-unit average wholesale price set by the original
  583  manufacturer of the underlying drug dispensed by the
  584  practitioner, based upon the published manufacturer’s average
  585  wholesale price published in the Medi-Span Master Drug Database
  586  as of the date of dispensing. All pharmaceutical claims
  587  submitted for repackaged or relabeled prescription medications
  588  must include the National Drug Code of the original
  589  manufacturer. Fees for pharmaceuticals and pharmaceutical
  590  services shall be reimbursable at the applicable fee schedule
  591  amount except where the employer or carrier, or a service
  592  company, third party administrator, or any entity acting on
  593  behalf of the employer or carrier directly contracts with the
  594  provider seeking reimbursement for a lower amount.
  595         (i)(d) Reimbursement for all fees and other charges for
  596  such treatment, care, and attendance, including treatment, care,
  597  and attendance provided by any hospital or other health care
  598  provider, ambulatory surgical center, work-hardening program, or
  599  pain program, must not exceed the amounts provided by the
  600  uniform schedule of maximum reimbursement allowances as
  601  determined by the panel or as otherwise provided in this
  602  section. This subsection also applies to independent medical
  603  examinations performed by health care providers under this
  604  chapter. In determining the uniform schedule, the panel shall
  605  first approve the data which it finds representative of
  606  prevailing charges in the state for similar treatment, care, and
  607  attendance of injured persons. Each health care provider, health
  608  care facility, ambulatory surgical center, work-hardening
  609  program, or pain program receiving workers’ compensation
  610  payments shall maintain records verifying their usual charges.
  611  In establishing the uniform schedule of maximum reimbursement
  612  allowances, the panel must consider:
  613         1. The levels of reimbursement for similar treatment, care,
  614  and attendance made by other health care programs or third-party
  615  providers;
  616         2. The impact upon cost to employers for providing a level
  617  of reimbursement for treatment, care, and attendance which will
  618  ensure the availability of treatment, care, and attendance
  619  required by injured workers; and
  620         3. The financial impact of the reimbursement allowances
  621  upon health care providers and health care facilities, including
  622  trauma centers as defined in s. 395.4001, and its effect upon
  623  their ability to make available to injured workers such
  624  medically necessary remedial treatment, care, and attendance.
  625  The uniform schedule of maximum reimbursement allowances must be
  626  reasonable, must promote health care cost containment and
  627  efficiency with respect to the workers’ compensation health care
  628  delivery system, and must be sufficient to ensure availability
  629  of such medically necessary remedial treatment, care, and
  630  attendance to injured workers; and
  631         4.The most recent average maximum allowable rate of
  632  increase for hospitals determined by the Health Care Board under
  633  chapter 408.
  634         (j)(e) In addition to establishing the uniform schedule of
  635  maximum reimbursement allowances, the panel shall:
  636         1. Take testimony, receive records, and collect data to
  637  evaluate the adequacy of the workers’ compensation fee schedule,
  638  nationally recognized fee schedules and alternative methods of
  639  reimbursement to health care providers and health care
  640  facilities for inpatient and outpatient treatment and care.
  641         2. Survey health care providers and health care facilities
  642  to determine the availability and accessibility of workers’
  643  compensation health care delivery systems for injured workers.
  644         3. Survey carriers to determine the estimated impact on
  645  carrier costs and workers’ compensation premium rates by
  646  implementing changes to the carrier reimbursement schedule or
  647  implementing alternative reimbursement methods.
  648         4. Submit recommendations on or before January 15, 2017,
  649  and biennially thereafter, to the President of the Senate and
  650  the Speaker of the House of Representatives on methods to
  651  improve the workers’ compensation health care delivery system.
  652  
  653  The department, as requested, shall provide data to the panel,
  654  including, but not limited to, utilization trends in the
  655  workers’ compensation health care delivery system. The
  656  department shall provide the panel with an annual report
  657  regarding the resolution of medical reimbursement disputes and
  658  any actions pursuant to subsection (8). The department shall
  659  provide administrative support and service to the panel to the
  660  extent requested by the panel. For prescription medication
  661  purchased under the requirements of this subsection, a
  662  dispensing practitioner shall not possess such medication unless
  663  payment has been made by the practitioner, the practitioner’s
  664  professional practice, or the practitioner’s practice management
  665  company or employer to the supplying manufacturer, wholesaler,
  666  distributor, or drug repackager within 60 days of the dispensing
  667  practitioner taking possession of that medication.
  668         (14)PRACTICE PARAMETERS.—The practice parameters and
  669  protocols mandated under this chapter shall be the practice
  670  parameters and protocols adopted by the United States Agency for
  671  Healthcare Research and Quality in effect on January 1, 2003.
  672         Section 6. Effective January 1, 2024, subsection (2) of
  673  section 440.385, Florida Statutes, is amended to read:
  674         440.385 Florida Self-Insurers Guaranty Association,
  675  Incorporated.—
  676         (2) BOARD OF DIRECTORS.—The board of directors of the
  677  association shall consist of nine persons and shall be organized
  678  as established in the plan of operation. Each director must All
  679  board members shall be experienced in self-insurance in this
  680  state. Each director shall serve for a 4-year term and may be
  681  reappointed. Appointments after January 1, 2002, shall be made
  682  by the department upon recommendation of members of the
  683  association or other persons with experience in self-insurance
  684  as determined by the Chief Financial Officer. These appointments
  685  are deemed to be within the scope of the exemption provided in
  686  s. 112.313(7)(b). Any vacancy on the board shall be filled for
  687  the remaining period of the term in the same manner as
  688  appointments other than initial appointments are made. Each
  689  director shall be reimbursed for expenses incurred in carrying
  690  out the duties of the board on behalf of the association.
  691         (a)The Chief Financial Officer may remove a director from
  692  office for misconduct, malfeasance, misfeasance, or neglect of
  693  duty. Any vacancy so created shall be filled as provided in this
  694  subsection.
  695         (b)Directors are subject to the code of ethics under part
  696  III of chapter 112, including, but not limited to, the code of
  697  ethics and public disclosure and reporting of financial
  698  interests, pursuant to s. 112.3145. For purposes of applying
  699  part III of chapter 112 to activities of members of the board of
  700  directors, those persons are considered public officers and the
  701  association is considered their agency. Notwithstanding s.
  702  112.3143(2), a director may not vote on any measure that he or
  703  she knows would inure to his or her special private gain or
  704  loss; that he or she knows would inure to the special private
  705  gain or loss of any principal by which he or she is retained,
  706  other than an agency as defined in s. 112.312; or that he or she
  707  knows would inure to the special private gain or loss of a
  708  relative or business associate of the public officer. Before the
  709  vote is taken, such director shall publicly state to the board
  710  the nature of his or her interest in the matter from which he or
  711  she is abstaining from voting and, within 15 days after the vote
  712  occurs, disclose the nature of his or her interest as a public
  713  record in a memorandum filed with the person responsible for
  714  recording the minutes of the meeting, who shall incorporate the
  715  memorandum in the minutes.
  716         (c)Notwithstanding s. 112.3148, s. 112.3149, or any other
  717  law, an employee of the association or a director may not
  718  knowingly accept, directly or indirectly, any gift or
  719  expenditure from a person or an entity, or an employee or a
  720  representative of such person or entity, which has a contractual
  721  relationship with the association or which is under
  722  consideration for a contract.
  723         (d)A director who fails to comply with paragraph (b) or
  724  paragraph (c) is subject to the penalties provided under ss.
  725  112.317 and 112.3173.
  726         Section 7. Present subsections (62) through (77) and (78)
  727  of section 497.005, Florida Statutes, are redesignated as
  728  subsections (63) through (78) and (80), respectively, a new
  729  subsection (62) and subsection (79) are added to that section,
  730  and subsections (9) and (61) of that section are amended, to
  731  read:
  732         497.005 Definitions.—As used in this chapter, the term:
  733         (9) “Burial service” or “service” means any service offered
  734  or provided in connection with the final disposition,
  735  memorialization, interment, entombment, or inurnment of human
  736  remains or cremated remains which is required to be offered or
  737  provided by an individual or entity licensed under this chapter.
  738         (61) “Preneed contract” means any arrangement or method, of
  739  which the provider of funeral merchandise or services has actual
  740  knowledge, whereby any person agrees to furnish funeral
  741  merchandise or service in the future.
  742         (62) “Preneed contract” means any arrangement or method for
  743  which the provider of funeral merchandise or services receives
  744  any payment in advance for funeral or burial merchandise and
  745  services after the death of the contract beneficiary. The term
  746  excludes a transportation protection agreement and any payments
  747  received on a transportation protection agreement.
  748         (79)“Transportation protection agreement” means an
  749  agreement that exclusively provides or arranges for services
  750  related to the preparation for the purpose of transportation and
  751  subsequent transportation of human remains or cremated remains.
  752  The Florida Insurance Code, as defined in s. 624.01, does not
  753  apply to any transportation protection agreement sold by any
  754  licensee under this chapter.
  755         Section 8. Subsection (1) of section 624.1265, Florida
  756  Statutes, is amended to read:
  757         624.1265 Nonprofit religious organization exemption;
  758  authority; notice.—
  759         (1) A nonprofit religious organization is not subject to
  760  the requirements of the Florida Insurance Code if the nonprofit
  761  religious organization:
  762         (a) Qualifies under Title 26, s. 501 of the Internal
  763  Revenue Code of 1986, as amended;
  764         (b) Limits its participants to those members who share a
  765  common set of ethical or religious beliefs;
  766         (c) Acts as a facilitator among participants who have
  767  financial, physical, or medical needs to assist those with
  768  financial, physical, or medical needs in accordance with
  769  criteria established by the nonprofit religious organization;
  770         (d) Provides for the financial or medical needs of a
  771  participant through contributions from other participants, or
  772  through payments directly from one participant to another
  773  participant;
  774         (e) Provides amounts that participants may contribute, with
  775  no assumption of risk and no promise to pay:
  776         1. Among the participants; or
  777         2. By the nonprofit religious organization to the
  778  participants;
  779         (f) Provides a monthly accounting to the participants of
  780  the total dollar amount of qualified needs actually shared in
  781  the previous month in accordance with criteria established by
  782  the nonprofit religious organization; and
  783         (g) Conducts an annual audit that is performed by an
  784  independent certified public accounting firm in accordance with
  785  generally accepted accounting principles and that is made
  786  available to the public by providing a copy upon request or by
  787  posting on the nonprofit religious organization’s website; and
  788         (h)Does not market or sell health plans by agents licensed
  789  by the department under chapter 626.
  790         Section 9. Subsection (25) of section 624.501, Florida
  791  Statutes, is amended to read:
  792         624.501 Filing, license, appointment, and miscellaneous
  793  fees.—The department, commission, or office, as appropriate,
  794  shall collect in advance, and persons so served shall pay to it
  795  in advance, fees, licenses, and miscellaneous charges as
  796  follows:
  797         (25) Reinsurance intermediary:
  798         (a)Application filing and license fee	$50.00
  799         (b) Original appointment and biennial renewal or
  800  continuation thereof, appointment fee	$60.00
  801         Section 10. Subsection (5) of section 626.015, Florida
  802  Statutes, is amended to read:
  803         626.015 Definitions.—As used in this part:
  804         (5) “Association” includes the Florida Association of
  805  Insurance Agents (FAIA), the National Association of Insurance
  806  and Financial Advisors (NAIFA), the National Association of
  807  Benefits and Insurance Professionals Florida Chapter (NABIP
  808  Florida) Florida Association of Health Underwriters (FAHU), the
  809  Latin American Association of Insurance Agencies (LAAIA), the
  810  Florida Association of Public Insurance Adjusters (FAPIA), the
  811  Florida Bail Agents Association (FBAA), or the Professional Bail
  812  Agents of the United States (PBUS).
  813         Section 11. Subsection (4) of section 626.171, Florida
  814  Statutes, is amended to read:
  815         626.171 Application for license as an agent, customer
  816  representative, adjuster, service representative, or reinsurance
  817  intermediary.—
  818         (4) An applicant for a license issued by the department
  819  under this chapter must submit a set of the individual
  820  applicant’s fingerprints, or, if the applicant is not an
  821  individual, a set of the fingerprints of the sole proprietor,
  822  majority owner, partners, officers, and directors, to the
  823  department and must pay the fingerprint processing fee set forth
  824  in s. 624.501. Fingerprints must be processed in accordance with
  825  s. 624.34 and used to investigate the applicant’s qualifications
  826  pursuant to s. 626.201. The fingerprints must be taken by a law
  827  enforcement agency, designated examination center, or other
  828  department-approved entity. The department shall require all
  829  designated examination centers to have fingerprinting equipment
  830  and to take fingerprints from any applicant or prospective
  831  applicant who pays the applicable fee. The department may not
  832  approve an application for licensure as an agent, customer
  833  service representative, adjuster, service representative, or
  834  reinsurance intermediary if fingerprints have not been
  835  submitted.
  836         Section 12. Paragraph (c) of subsection (1) of section
  837  626.173, Florida Statutes, is amended to read:
  838         626.173 Insurance agency closure; cancellation of
  839  licenses.—
  840         (1) If a licensed insurance agency permanently ceases the
  841  transacting of insurance or ceases the transacting of insurance
  842  for more than 30 days, the agent in charge, the director of the
  843  agency, or other officer listed on the original application for
  844  licensure must, within 35 days after the agency first ceases the
  845  transacting of insurance, do all of the following:
  846         (c) Notify all policyholders currently insured by a policy
  847  written, produced, or serviced by the agency of the agency’s
  848  cessation of operations; the date on which operations ceased;
  849  and the identity of the agency or agent to which the agency’s
  850  current book of business has been transferred or, if no transfer
  851  has occurred, a statement directing the policyholder to contact
  852  the insurance company for assistance in locating a licensed
  853  agent to service the policy. This paragraph does not apply to
  854  title insurance, life insurance, or annuity contracts.
  855         Section 13. Subsection (8) of section 626.207, Florida
  856  Statutes, is amended to read:
  857         626.207 Disqualification of applicants and licensees;
  858  penalties against licensees; rulemaking authority.—
  859         (8) The department shall adopt rules establishing specific
  860  penalties against licensees in accordance with ss. 626.641 and
  861  626.651 for violations of s. 626.112(7) or (9), s. 626.611, s.
  862  626.6115, s. 626.621, s. 626.6215, s. 626.7451, s. 626.8437, s.
  863  626.844, s. 626.8695, s. 626.8697, s. 626.8698, s. 626.935, s.
  864  634.181, s. 634.191, s. 634.320, s. 634.321, s. 634.422, s.
  865  634.423, s. 642.041, or s. 642.043. The purpose of the
  866  revocation or suspension is to provide a sufficient penalty to
  867  deter future violations of the Florida Insurance Code. The
  868  imposition of a revocation or the length of suspension shall be
  869  based on the type of conduct and the probability that the
  870  propensity to commit further illegal conduct has been overcome
  871  at the time of eligibility for relicensure. The length of
  872  suspension may be adjusted based on aggravating or mitigating
  873  factors, established by rule and consistent with this purpose.
  874         Section 14. Paragraph (j) of subsection (2) of section
  875  626.221, Florida Statutes, is amended to read:
  876         626.221 Examination requirement; exemptions.—
  877         (2) However, an examination is not necessary for any of the
  878  following:
  879         (j) An applicant for license as an all-lines adjuster who
  880  has the designation of Accredited Claims Adjuster (ACA) from a
  881  regionally accredited postsecondary institution in this state;
  882  Certified All Lines Adjuster (CALA) from Kaplan Financial
  883  Education; Associate in Claims (AIC) from the Insurance
  884  Institute of America; Professional Claims Adjuster (PCA) from
  885  the Professional Career Institute; Professional Property
  886  Insurance Adjuster (PPIA) from the HurriClaim Training Academy;
  887  Certified Adjuster (CA) from ALL LINES Training; Certified
  888  Claims Adjuster (CCA) from AE21 Incorporated; Claims Adjuster
  889  Certified Professional (CACP) from WebCE, Inc.; Accredited
  890  Insurance Claims Specialist (AICS) from Encore Claim Services;
  891  Professional in Claims (PIC) from 2021 Training, LLC; or
  892  Universal Claims Certification (UCC) from Claims and Litigation
  893  Management Alliance (CLM) whose curriculum has been approved by
  894  the department and which includes comprehensive analysis of
  895  basic property and casualty lines of insurance and testing at
  896  least equal to that of standard department testing for the all
  897  lines adjuster license. The department shall adopt rules
  898  establishing standards for the approval of curriculum.
  899         Section 15. Paragraphs (c) and (f) of subsection (3) of
  900  section 626.2815, Florida Statutes, are amended to read:
  901         626.2815 Continuing education requirements.—
  902         (3) Each licensee except a title insurance agent must
  903  complete a 4-hour update course every 2 years which is specific
  904  to the license held by the licensee. The course must be
  905  developed and offered by providers and approved by the
  906  department. The content of the course must address all lines of
  907  insurance for which examination and licensure are required and
  908  include the following subject areas: insurance law updates,
  909  ethics for insurance professionals, disciplinary trends and case
  910  studies, industry trends, premium discounts, determining
  911  suitability of products and services, and other similar
  912  insurance-related topics the department determines are relevant
  913  to legally and ethically carrying out the responsibilities of
  914  the license granted. A licensee who holds multiple insurance
  915  licenses must complete an update course that is specific to at
  916  least one of the licenses held. Except as otherwise specified,
  917  any remaining required hours of continuing education are
  918  elective and may consist of any continuing education course
  919  approved by the department under this section.
  920         (c) A licensee who has been licensed for 25 years or more
  921  and is a CLU or a CPCU or has a Bachelor of Science degree or
  922  higher in risk management or insurance with evidence of 18 or
  923  more semester hours in insurance-related courses must also
  924  complete a minimum of 6 hours of elective continuing education
  925  courses every 2 years.
  926         (f) Elective continuing education courses for public
  927  adjusters may must be any course related to commercial and
  928  residential property coverages, claim adjusting practices, and
  929  any other adjuster elective courses specifically designed for
  930  public adjusters and approved by the department. Notwithstanding
  931  this subsection, public adjusters for workers’ compensation
  932  insurance or health insurance are not required to take
  933  continuing education courses pursuant to this section.
  934         Section 16. Paragraphs (a), (b), and (e) of subsection (1)
  935  of section 626.321, Florida Statutes, are amended, and paragraph
  936  (i) is added to that subsection, to read:
  937         626.321 Limited licenses and registration.—
  938         (1) The department shall issue to a qualified applicant a
  939  license as agent authorized to transact a limited class of
  940  business in any of the following categories of limited lines
  941  insurance:
  942         (a) Motor vehicle physical damage and mechanical breakdown
  943  insurance.—License covering insurance against only the loss of
  944  or damage to a motor vehicle that is designed for use upon a
  945  highway, including trailers and semitrailers designed for use
  946  with such vehicles. Such license also covers insurance against
  947  the failure of an original or replacement part to perform any
  948  function for which it was designed. A licensee under this
  949  paragraph may not hold a license as an agent for any other or
  950  additional kind or class of insurance coverage except a limited
  951  license for credit insurance as provided in paragraph (e).
  952  Effective October 1, 2012, all licensees holding such limited
  953  license and appointment may renew the license and appointment,
  954  but no new or additional licenses may be issued pursuant to this
  955  paragraph, and a licensee whose limited license under this
  956  paragraph has been terminated, suspended, or revoked may not
  957  have such license reinstated.
  958         (b) Industrial fire insurance or burglary insurance.
  959  License covering only industrial fire insurance or burglary
  960  insurance. A licensee under this paragraph may not hold a
  961  license as an agent for any other or additional kind or class of
  962  insurance coverage except for life insurance and health
  963  insurance. Effective July 1, 2019, all licensees holding such
  964  limited license and appointment may renew the license and
  965  appointment, but no new or additional licenses may be issued
  966  pursuant to this paragraph, and a licensee whose limited license
  967  under this paragraph has been terminated, suspended, or revoked
  968  may not have such license reinstated.
  969         (e) Credit insurance.—License covering credit life, credit
  970  disability, credit property, credit unemployment, involuntary
  971  unemployment, mortgage life, mortgage guaranty, mortgage
  972  disability, guaranteed automobile protection (GAP) insurance,
  973  and any other form of insurance offered in connection with an
  974  extension of credit which is limited to partially or wholly
  975  extinguishing a credit obligation that the department determines
  976  should be designated a form of limited line credit insurance.
  977  Effective October 1, 2012, all valid licenses held by persons
  978  for any of the lines of insurance listed in this paragraph shall
  979  be converted to a credit insurance license. Licensees who wish
  980  to obtain a new license reflecting such change must request a
  981  duplicate license and pay a $5 fee as specified in s.
  982  624.501(15). The license may be issued only to an individual
  983  employed by a life or health insurer as an officer or other
  984  salaried or commissioned representative, to an individual
  985  employed by or associated with a lending or financial
  986  institution or creditor, or to a lending or financial
  987  institution or creditor, and may authorize the sale of such
  988  insurance only with respect to borrowers or debtors of such
  989  lending or financing institution or creditor. However, only the
  990  individual or entity whose tax identification number is used in
  991  receiving or is credited with receiving the commission from the
  992  sale of such insurance shall be the licensed agent of the
  993  insurer. No individual while so licensed shall hold a license as
  994  an agent as to any other or additional kind or class of life or
  995  health insurance coverage.
  996         (i)Preneed funeral agreement insurance.Limited license
  997  for insurance covering only prearranged funeral, cremation, or
  998  cemetery agreements, or any combination thereof, funded by
  999  insurance and offered in connection with an establishment that
 1000  holds a preneed license pursuant to s. 497.452. Such license may
 1001  be issued without examination only to an individual who has
 1002  filed with the department an application for a license in a form
 1003  and manner prescribed by the department, who currently holds a
 1004  valid preneed sales agent license pursuant to s. 497.466, who
 1005  paid the applicable fees for a license as prescribed in s.
 1006  624.501, who has been appointed under s. 626.112, and who paid
 1007  the prescribed appointment fee under s. 624.501.
 1008         Section 17. Paragraph (n) of subsection (1) of section
 1009  626.611, Florida Statutes, is amended to read:
 1010         626.611 Grounds for compulsory refusal, suspension, or
 1011  revocation of agent’s, title agency’s, adjuster’s, customer
 1012  representative’s, service representative’s, or managing general
 1013  agent’s license or appointment.—
 1014         (1) The department shall deny an application for, suspend,
 1015  revoke, or refuse to renew or continue the license or
 1016  appointment of any applicant, agent, title agency, adjuster,
 1017  customer representative, service representative, or managing
 1018  general agent, and it shall suspend or revoke the eligibility to
 1019  hold a license or appointment of any such person, if it finds
 1020  that as to the applicant, licensee, or appointee any one or more
 1021  of the following applicable grounds exist:
 1022         (n) Having been found guilty of or having pleaded guilty or
 1023  nolo contendere to a misdemeanor directly related to the
 1024  financial services business, any felony, or any a crime
 1025  punishable by imprisonment of 1 year or more under the law of
 1026  the United States of America or of any state thereof or under
 1027  the law of any other country, without regard to whether a
 1028  judgment of conviction has been entered by the court having
 1029  jurisdiction of such cases.
 1030         Section 18. Subsection (18) is added to section 626.621,
 1031  Florida Statutes, to read:
 1032         626.621 Grounds for discretionary refusal, suspension, or
 1033  revocation of agent’s, adjuster’s, customer representative’s,
 1034  service representative’s, or managing general agent’s license or
 1035  appointment.—The department may, in its discretion, deny an
 1036  application for, suspend, revoke, or refuse to renew or continue
 1037  the license or appointment of any applicant, agent, adjuster,
 1038  customer representative, service representative, or managing
 1039  general agent, and it may suspend or revoke the eligibility to
 1040  hold a license or appointment of any such person, if it finds
 1041  that as to the applicant, licensee, or appointee any one or more
 1042  of the following applicable grounds exist under circumstances
 1043  for which such denial, suspension, revocation, or refusal is not
 1044  mandatory under s. 626.611:
 1045         (18)Cancellation of the applicant’s, licensee’s, or
 1046  appointee’s resident license in a state other than Florida.
 1047         Section 19. Paragraphs (d) and (g) of subsection (2) and
 1048  paragraphs (a), (b), and (e) through (j) of subsection (3) of
 1049  section 626.7492, Florida Statutes, are amended to read:
 1050         626.7492 Reinsurance intermediaries.—
 1051         (2) DEFINITIONS.—As used in this section:
 1052         (d) “Producer” means a licensed an agent, broker, or
 1053  insurance agency that is appointed as a reinsurance intermediary
 1054  licensed pursuant to the applicable provision of the Florida
 1055  Insurance Code.
 1056         (g) “Reinsurance intermediary manager” means any person who
 1057  has authority to bind, or manages all or part of, the assumed
 1058  reinsurance business of a reinsurer, including the management of
 1059  a separate division, department, or underwriting office, and
 1060  acts as a representative an agent for the reinsurer whether
 1061  known as a reinsurance intermediary manager, manager, or other
 1062  similar term. Notwithstanding the above, none of the following
 1063  persons is a reinsurance intermediary manager with respect to
 1064  the reinsurer for the purposes of this section:
 1065         1. An employee of the reinsurer.;
 1066         2. A manager of the United States branch of an alien
 1067  reinsurer.;
 1068         3. An underwriting manager which, pursuant to contract,
 1069  manages all the reinsurance operations of the reinsurer, is
 1070  under common control with the reinsurer, subject to the holding
 1071  company act, and whose compensation is not based on the volume
 1072  of premiums written.
 1073         4. The manager of a group, association, pool, or
 1074  organization of insurers which engage in joint underwriting or
 1075  joint reinsurance and who are subject to examination by the
 1076  insurance regulatory authority of the state in which the
 1077  manager’s principal business office is located.
 1078         (3) LICENSURE.—
 1079         (a) No person shall act as a reinsurance intermediary
 1080  broker in this state if the reinsurance intermediary broker
 1081  maintains an office either directly or as a member or employee
 1082  of a firm or association, or an officer, director, or employee
 1083  of a corporation:
 1084         1. In this state, unless the reinsurance intermediary
 1085  broker is a licensed producer in this state; or
 1086         2. In another state, unless the reinsurance intermediary
 1087  broker is a licensed producer in this state or in another state
 1088  having a law substantially similar to this section or the
 1089  reinsurance intermediary broker is licensed in this state as an
 1090  insurance agency and appointed as a nonresident reinsurance
 1091  intermediary.
 1092         (b) No person shall act as a reinsurance intermediary
 1093  manager:
 1094         1. For a reinsurer domiciled in this state, unless the
 1095  reinsurance intermediary manager is a licensed producer in this
 1096  state;
 1097         2. In this state, if the reinsurance intermediary manager
 1098  maintains an office either directly or as a member or employee
 1099  of a firm or association, or an officer, director, or employee
 1100  of a corporation in this state, unless the reinsurance
 1101  intermediary manager is a licensed producer in this state;
 1102         3. In another state for a nondomestic insurer, unless the
 1103  reinsurance intermediary manager is a licensed producer in this
 1104  state or another state having a law substantially similar to
 1105  this section, or the person is licensed in this state as a
 1106  producer nonresident reinsurance intermediary.
 1107         (e) If the applicant for a reinsurance intermediary
 1108  appointment license is a nonresident, the applicant, as a
 1109  condition precedent to receiving or holding an appointment a
 1110  license, must designate the Chief Financial Officer as agent for
 1111  service of process in the manner, and with the same legal
 1112  effect, provided for by this section for designation of service
 1113  of process upon unauthorized insurers. Such applicant shall also
 1114  furnish the department with the name and address of a resident
 1115  of this state upon whom notices or orders of the department or
 1116  process affecting the nonresident reinsurance intermediary may
 1117  be served. The licensee shall promptly notify the department in
 1118  writing of each change in its designated agent for service of
 1119  process, and the change shall not become effective until
 1120  acknowledged by the department.
 1121         (f) The department may refuse to issue a reinsurance
 1122  intermediary license if, in its judgment, the applicant, anyone
 1123  named on the application, or any member, principal, officer, or
 1124  director of the applicant, has demonstrated a lack of fitness
 1125  and trustworthiness, or that any controlling person of the
 1126  applicant is not fit or trustworthy to act as a reinsurance
 1127  intermediary, or that any of the foregoing has given cause for
 1128  revocation or suspension of the license, or has failed to comply
 1129  with any prerequisite for the issuance of the license.
 1130         (g) Reinsurance intermediaries shall be licensed,
 1131  appointed, renewed, continued, reinstated, or terminated as
 1132  prescribed in this chapter for insurance representatives in
 1133  general, except that they shall be exempt from the photo,
 1134  education, and examination provisions. License, Appointment, and
 1135  other fees shall be those prescribed in s. 624.501.
 1136         (g)(h) The grounds and procedures for refusal of an a
 1137  license or appointment or suspension or revocation of a license
 1138  or appointment issued to a reinsurance intermediary under this
 1139  section are as set forth in ss. 626.611-626.691 for insurance
 1140  representatives in general.
 1141         (h)(i) An attorney licensed in this state, when acting in a
 1142  professional capacity, is exempt from this subsection.
 1143         (i)(j) The department may develop necessary rules to carry
 1144  out this section.
 1145         Section 20. Subsection (5) of section 626.752, Florida
 1146  Statutes, is amended to read:
 1147         626.752 Exchange of business.—
 1148         (5) Within 15 days after the last day of each month, any
 1149  insurer accepting business under this section shall report to
 1150  the department the name, address, telephone number, and social
 1151  security number of each agent from which the insurer received
 1152  more than four personal lines risks during the calendar year,
 1153  except for risks being removed from the Citizens Property
 1154  Insurance Corporation and placed with that insurer by a
 1155  brokering agent. Once the insurer has reported pursuant to this
 1156  subsection an agent’s name to the department, additional reports
 1157  on the same agent shall not be required. However, the fee set
 1158  forth in s. 624.501 must be paid for the agent by the insurer
 1159  for each year until the insurer notifies the department that the
 1160  insurer is no longer accepting business from the agent pursuant
 1161  to this section. The insurer may require that the agent
 1162  reimburse the insurer for the fee. If the insurer or employer
 1163  does not pay the fees and taxes due pursuant to this subsection
 1164  within 21 days after notice by the department, the department
 1165  must suspend the insurer’s or employer’s authority to appoint
 1166  licensees until all outstanding fees and taxes have been paid.
 1167         Section 21. Subsection (3) of section 626.785, Florida
 1168  Statutes, is amended to read:
 1169         626.785 Qualifications for license.—
 1170         (3) Notwithstanding any other provisions of this chapter, a
 1171  funeral director, a direct disposer, or an employee of a funeral
 1172  establishment that holds a preneed license pursuant to s.
 1173  497.452 may obtain an agent’s license or a limited license to
 1174  sell only policies of life insurance covering the expense of a
 1175  prearrangement for funeral services or merchandise so as to
 1176  provide funds at the time the services and merchandise are
 1177  needed. The face amount of insurance covered by any such policy
 1178  shall not exceed $21,000, plus an annual percentage increase
 1179  based on the Annual Consumer Price Index compiled by the United
 1180  States Department of Labor, beginning with the Annual Consumer
 1181  Price Index announced by the United States Department of Labor
 1182  for 2016.
 1183         Section 22. Subsection (4) of section 626.793, Florida
 1184  Statutes, is amended to read:
 1185         626.793 Excess or rejected business.—
 1186         (4) Within 15 days after the last day of each month, any
 1187  insurer accepting business under this section shall report to
 1188  the department the name, address, telephone number, and social
 1189  security number of each agent from which the insurer received
 1190  more than four risks during the calendar year. Once the insurer
 1191  has reported an agent’s name to the department pursuant to this
 1192  subsection, additional reports on the same agent shall not be
 1193  required. However, the fee set forth in s. 624.501 must be paid
 1194  for the agent by the insurer for each year until the insurer
 1195  notifies the department that the insurer is no longer accepting
 1196  business from the agent pursuant to this section. The insurer
 1197  may require that the agent reimburse the insurer for the fee. If
 1198  the insurer or employer does not pay the fees and taxes due
 1199  pursuant to this subsection within 21 days after notice by the
 1200  department, the department must suspend the insurer’s or
 1201  employer’s authority to appoint licensees until all outstanding
 1202  fees and taxes have been paid.
 1203         Section 23. Subsection (5) of section 626.837, Florida
 1204  Statutes, is amended to read:
 1205         626.837 Excess or rejected business.—
 1206         (5) Within 15 days after the last day of each month, any
 1207  insurer accepting business under this section shall report to
 1208  the department the name, address, telephone number, and social
 1209  security number of each agent from which the insurer received
 1210  more than four risks during the calendar year. Once the insurer
 1211  has reported pursuant to this subsection an agent’s name to the
 1212  department, additional reports on the same agent shall not be
 1213  required. However, the fee set forth in s. 624.501 must be paid
 1214  for the agent by the insurer for each year until the insurer
 1215  notifies the department that the insurer is no longer accepting
 1216  business from the agent pursuant to this section. The insurer
 1217  may require that the agent reimburse the insurer for the fee. If
 1218  the insurer or employer does not pay the fees and taxes due
 1219  pursuant to this subsection within 21 days after notice by the
 1220  department, the department must suspend the insurer’s or
 1221  employer’s authority to appoint licensees until all outstanding
 1222  fees and taxes have been paid.
 1223         Section 24. Paragraph (e) is added to subsection (2) of
 1224  section 626.8411, Florida Statutes, to read:
 1225         626.8411 Application of Florida Insurance Code provisions
 1226  to title insurance agents or agencies.—
 1227         (2) The following provisions of part I do not apply to
 1228  title insurance agents or title insurance agencies:
 1229         (e)Section 626.173(1)(c), relating to notifying
 1230  policyholders of the agency closure.
 1231         Section 25. Present subsections (8) through (11) of section
 1232  626.8437, Florida Statutes, are redesignated as subsections (9)
 1233  through (12), respectively, and a new subsection (8) and
 1234  subsection (13) are added to that section, to read:
 1235         626.8437 Grounds for denial, suspension, revocation, or
 1236  refusal to renew license or appointment.—The department shall
 1237  deny, suspend, revoke, or refuse to renew or continue the
 1238  license or appointment of any title insurance agent or agency,
 1239  and it shall suspend or revoke the eligibility to hold a license
 1240  or appointment of such person, if it finds that as to the
 1241  applicant, licensee, appointee, or any principal thereof, any
 1242  one or more of the following grounds exist:
 1243         (8)Misappropriation, conversion, or improper withholding
 1244  of funds not legally entitled thereto and which are received in
 1245  a fiduciary capacity and held as part of an escrow agreement,
 1246  real estate sales contract, or as provided on a settlement
 1247  statement in a real estate transaction.
 1248         (13)Revocation or cancellation of a licensee’s resident
 1249  license in a jurisdiction other than this state.
 1250         Section 26. Subsections (7) and (8) are added to section
 1251  626.844, Florida Statutes, to read:
 1252         626.844 Grounds for discretionary refusal, suspension, or
 1253  revocation of license or appointment.—The department may, in its
 1254  discretion, deny, suspend, revoke, or refuse to renew or
 1255  continue the license or appointment of any title insurance agent
 1256  or agency, and it may suspend or revoke the eligibility to hold
 1257  a license or appointment of any such title insurance agent or
 1258  agency if it finds that as to the applicant or licensee or
 1259  appointee, or any principal thereof, any one or more of the
 1260  following grounds exist under circumstances for which such
 1261  denial, suspension, revocation, or refusal is not mandatory
 1262  under s. 626.8437:
 1263         (7)Having been the subject of, or having had a license,
 1264  permit, appointment, registration, or other authority to conduct
 1265  business subject to, any decision, finding, injunction,
 1266  suspension, prohibition, revocation, denial, judgment, final
 1267  agency action, or administrative order by any court of competent
 1268  jurisdiction, administrative law proceeding, state agency,
 1269  federal agency, national securities, commodities, or option
 1270  exchange, or national securities, commodities, or option
 1271  association involving a violation of any federal or state
 1272  securities or commodities law or any rule or regulation adopted
 1273  thereunder, or a violation of any rule or regulation of any
 1274  national securities, commodities, or options exchange or
 1275  national securities, commodities, or options association.
 1276         (8)Revocation or cancellation of a licensee’s resident
 1277  license in a jurisdiction other than this state.
 1278         Section 27. Section 626.8473, Florida Statutes, is amended
 1279  to read:
 1280         626.8473 Escrow; trust fund.—
 1281         (1) A title insurance agency agent may engage in business
 1282  as an escrow agent as to funds received from others to be
 1283  subsequently disbursed by the title insurance agent in
 1284  connection with real estate closing transactions involving the
 1285  issuance of title insurance binders, commitments, policies of
 1286  title insurance, or guarantees of title, provided that a
 1287  licensed and appointed title insurance agency agent complies
 1288  with the requirements of s. 626.8419 s. 626.8417, including such
 1289  requirements added after the initial licensure of the agency
 1290  agent.
 1291         (2) All funds received by a title insurance agency agent as
 1292  described in subsection (1) shall be trust funds received in a
 1293  fiduciary capacity by the title insurance agency agent and shall
 1294  be the property of the person or persons entitled thereto.
 1295         (3) All funds received by a title insurance agency agent to
 1296  be held in trust shall be immediately placed in a financial
 1297  institution that is located within this state and is a member of
 1298  the Federal Deposit Insurance Corporation or the National Credit
 1299  Union Share Insurance Fund. These funds shall be invested in an
 1300  escrow account in accordance with the investment requirements
 1301  and standards established for deposits and investments of state
 1302  funds in s. 17.57, where the funds shall be kept until
 1303  disbursement thereof is properly authorized.
 1304         (4) Funds required to be maintained in escrow trust
 1305  accounts pursuant to this section shall not be subject to any
 1306  debts of the title insurance agency agent and shall be used only
 1307  in accordance with the terms of the individual, escrow,
 1308  settlement, or closing instructions under which the funds were
 1309  accepted.
 1310         (5) The title insurance agency agents shall maintain
 1311  separate records of all receipts and disbursements of escrow,
 1312  settlement, or closing funds.
 1313         (6) In the event that the department promulgates rules
 1314  necessary to implement the requirements of this section pursuant
 1315  to s. 624.308, the department shall consider reasonable
 1316  standards necessary for the protection of funds held in trust,
 1317  including, but not limited to, standards for accounting of
 1318  funds, standards for receipt and disbursement of funds, and
 1319  protection for the person or persons to whom the funds are to be
 1320  disbursed.
 1321         (7) A title insurance agency agent, or any officer,
 1322  director, or employee thereof, or any person associated
 1323  therewith as an independent contractor for bookkeeping or
 1324  similar purposes, who converts or misappropriates funds received
 1325  or held in escrow or in trust by such title insurance agency
 1326  agent, or any person who knowingly receives or conspires to
 1327  receive such funds, commits:
 1328         (a) If the funds converted or misappropriated are $300 or
 1329  less, a misdemeanor of the first degree, punishable as provided
 1330  in s. 775.082 or s. 775.083.
 1331         (b) If the funds converted or misappropriated are more than
 1332  $300, but less than $20,000, a felony of the third degree,
 1333  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
 1334         (c) If the funds converted or misappropriated are $20,000
 1335  or more, but less than $100,000, a felony of the second degree,
 1336  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
 1337         (d) If the funds converted or misappropriated are $100,000
 1338  or more, a felony of the first degree, punishable as provided in
 1339  s. 775.082, s. 775.083, or s. 775.084.
 1340         (8) An attorney shall deposit and maintain all funds
 1341  received in connection with transactions in which the attorney
 1342  is serving as a title or real estate settlement agent into a
 1343  separate trust account that is maintained exclusively for funds
 1344  received in connection with such transactions and permit the
 1345  account to be audited by its title insurers, unless maintaining
 1346  funds in the separate account for a particular client would
 1347  violate applicable rules of The Florida Bar.
 1348         Section 28. Subsection (19) of section 626.854, Florida
 1349  Statutes, is amended to read:
 1350         626.854 “Public adjuster” defined; prohibitions.—The
 1351  Legislature finds that it is necessary for the protection of the
 1352  public to regulate public insurance adjusters and to prevent the
 1353  unauthorized practice of law.
 1354         (19) Except as otherwise provided in this chapter, no
 1355  person, except an attorney at law or a licensed and appointed
 1356  public adjuster, may for money, commission, or any other thing
 1357  of value, directly or indirectly:
 1358         (a) Prepare, complete, or file an insurance claim for an
 1359  insured or a third-party claimant;
 1360         (b) Act on behalf of or aid an insured or a third-party
 1361  claimant in negotiating for or effecting the settlement of a
 1362  claim for loss or damage covered by an insurance contract;
 1363         (c) Offer to initiate or negotiate a claim on behalf of an
 1364  insured;
 1365         (d) Advertise services that require a license as a public
 1366  adjuster; or
 1367         (e) Solicit, investigate, or adjust a claim on behalf of a
 1368  public adjuster, an insured, or a third-party claimant.
 1369         Section 29. Section 626.874, Florida Statutes, is amended
 1370  to read:
 1371         626.874 Catastrophe or emergency adjusters.—
 1372         (1) In the event of a catastrophe or emergency, the
 1373  department may issue a license, for the purposes and under the
 1374  conditions and for the period of emergency as it shall
 1375  determine, to persons who are residents or nonresidents of this
 1376  state, who are at least 18 years of age, who are United States
 1377  citizens or legal aliens who possess work authorization from the
 1378  United States Bureau of Citizenship and Immigration Services,
 1379  and who are not licensed adjusters under this part but who have
 1380  been designated and certified to it as qualified to act as
 1381  adjusters by an authorized insurer to adjust claims, losses, or
 1382  damages under policies or contracts of insurance issued by such
 1383  insurers, or by a licensed the primary adjuster of an
 1384  independent adjusting firm contracted with an authorized insurer
 1385  to adjust claims on behalf of the insurer. The fee for the
 1386  license is as provided in s. 624.501(12)(c).
 1387         (2) If any person not a licensed adjuster who has been
 1388  permitted to adjust such losses, claims, or damages under the
 1389  conditions and circumstances set forth in subsection (1),
 1390  engages in any of the misconduct described in or contemplated by
 1391  chapter 626 ss. 626.611 and 626.621, the department, without
 1392  notice and hearing, shall be authorized to issue its order
 1393  denying such person the privileges granted under this section;
 1394  and thereafter it shall be unlawful for any such person to
 1395  adjust any such losses, claims, or damages in this state.
 1396         Section 30. Subsection (2) of section 626.9892, Florida
 1397  Statutes, is amended to read:
 1398         626.9892 Anti-Fraud Reward Program; reporting of insurance
 1399  fraud.—
 1400         (2) The department may pay rewards of up to $25,000 to
 1401  persons providing information leading to the arrest and
 1402  conviction of persons committing crimes investigated by the
 1403  department arising from violations of s. 400.9935, s. 440.105,
 1404  s. 624.15, s. 626.112, s. 626.8473, s. 626.8738, s. 626.9541, s.
 1405  626.989, s. 790.164, s. 790.165, s. 790.166, s. 806.01, s.
 1406  806.031, s. 806.10, s. 806.111, s. 812.014, s. 817.034, s.
 1407  817.233, or s. 817.234, s. 817.236, s. 817.2361, s. 817.505, s.
 1408  817.568, s. 831.01, s. 895.03, s. 895.04, or s. 896.101.
 1409         Section 31. Present subsections (7) through (12) of section
 1410  626.9957, Florida Statutes, are redesignated as subsections (8)
 1411  through (13), respectively, and a new subsection (7) is added to
 1412  that section, to read:
 1413         626.9957 Conduct prohibited; denial, revocation,
 1414  termination, expiration, or suspension of registration.—
 1415         (7)If a navigator registered under this part fails to
 1416  maintain an active, valid navigator’s registration status with
 1417  the Federal Government or an exchange, the navigator’s
 1418  registration issued under this part shall expire by operation of
 1419  law. A navigator with an expired registration may not be granted
 1420  subsequent registration until the navigator qualifies as a
 1421  first-time applicant.
 1422         Section 32. Paragraph (c) of subsection (4) of section
 1423  627.351, Florida Statutes, is amended to read:
 1424         627.351 Insurance risk apportionment plans.—
 1425         (4) MEDICAL MALPRACTICE RISK APPORTIONMENT.—
 1426         (c) The Joint Underwriting Association shall operate
 1427  subject to the supervision and approval of a board of governors
 1428  consisting of representatives of five of the insurers
 1429  participating in the Joint Underwriting Association, an attorney
 1430  named by The Florida Bar, a physician named by the Florida
 1431  Medical Association, a dentist named by the Florida Dental
 1432  Association, and a hospital representative named by the Florida
 1433  Hospital Association. The Chief Financial Officer shall select
 1434  the representatives of the five insurers or other persons with
 1435  experience in medical malpractice insurance as determined by the
 1436  Chief Financial Officer. These appointments are deemed to be
 1437  within the scope of the exemption provided in s. 112.313(7)(b).
 1438  One insurer representative shall be selected from
 1439  recommendations of the American Insurance Association. One
 1440  insurer representative shall be selected from recommendations of
 1441  the Property Casualty Insurers Association of America. One
 1442  insurer representative shall be selected from recommendations of
 1443  the Florida Insurance Council. Two insurer representatives shall
 1444  be selected to represent insurers that are not affiliated with
 1445  these associations. Vacancies on the board shall be filled for
 1446  the remaining period of the term in the same manner as the
 1447  initial appointments. During the first meeting of the board
 1448  after June 30 of each year, the board shall choose one of its
 1449  members to serve as chair of the board and another member to
 1450  serve as vice chair of the board. There is no liability on the
 1451  part of, and no cause of action shall arise against, any member
 1452  insurer, self-insurer, or its agents or employees, the Joint
 1453  Underwriting Association or its agents or employees, members of
 1454  the board of governors, or the office or its representatives for
 1455  any action taken by them in the performance of their powers and
 1456  duties under this subsection.
 1457         1.The Chief Financial Officer may remove a board member
 1458  from office for misconduct, malfeasance, misfeasance, or neglect
 1459  of duty. Any vacancy so created shall be filled as provided in
 1460  this paragraph.
 1461         2.Board members are subject to the code of ethics under
 1462  part III of chapter 112, including, but not limited to, the code
 1463  of ethics and public disclosure and reporting of financial
 1464  interests, pursuant to s. 112.3145. For purposes of applying
 1465  part III of chapter 112 to activities of members of the board of
 1466  governors, those persons are considered public officers and the
 1467  Joint Underwriting Association is considered their agency.
 1468  Notwithstanding s. 112.3143(2), a board member may not vote on
 1469  any measure that he or she knows would inure to his or her
 1470  special private gain or loss; that he or she knows would inure
 1471  to the special private gain or loss of any principal by which he
 1472  or she is retained, other than an agency as defined in s.
 1473  112.312; or that he or she knows would inure to the special
 1474  private gain or loss of a relative or business associate of the
 1475  public officer. Before the vote is taken, such board member
 1476  shall publicly state to the board the nature of his or her
 1477  interest in the matter from which he or she is abstaining from
 1478  voting and, within 15 days after the vote occurs, disclose the
 1479  nature of his or her interest as a public record in a memorandum
 1480  filed with the person responsible for recording the minutes of
 1481  the meeting, who shall incorporate the memorandum in the
 1482  minutes.
 1483         3.Notwithstanding s. 112.3148, s. 112.3149, or any other
 1484  law, a board member may not knowingly accept, directly or
 1485  indirectly, any gift or expenditure from a person or entity, or
 1486  an employee or representative of such person or entity, which
 1487  has a contractual relationship with the Joint Underwriting
 1488  Association or which is under consideration for a contract.
 1489         4.A board member who fails to comply with subparagraph 2.
 1490  or subparagraph 3. is subject to the penalties provided under
 1491  ss. 112.317 and 112.3173.
 1492         Section 33. Section 627.4215, Florida Statutes, is amended
 1493  to read:
 1494         627.4215 Disclosures to policyholders; coverage of
 1495  behavioral health care services.—
 1496         (1) A health insurer that offers behavioral health
 1497  insurance coverages required by federal or state law shall make
 1498  all of the following information available on its website:
 1499         (a) The federal and state requirements for coverage of
 1500  behavioral health care services.
 1501         (b) Contact information for the Division of Consumer
 1502  Services of the department, including a hyperlink, for consumers
 1503  to submit inquiries or complaints relating to health insurer
 1504  products or services regulated by the department or the office.
 1505         (2) On an annual basis, a health insurer that offers
 1506  behavioral health insurance coverage required by federal or
 1507  state law shall provide a direct notice to insureds with
 1508  behavioral health insurance coverages required by federal or
 1509  state law which must include a description of the federal and
 1510  state requirements for coverage of behavioral health care
 1511  services. Such notice must also include the website address and
 1512  statewide toll-free telephone number of the Division of Consumer
 1513  Services of the department for receiving and logging complaints.
 1514         Section 34. Subsections (2) and (3) of section 627.7015,
 1515  Florida Statutes, are amended to read:
 1516         627.7015 Alternative procedure for resolution of disputed
 1517  property insurance claims.—
 1518         (2) At the time of issuance and renewal of a policy or at
 1519  the time a first-party claim within the scope of this section is
 1520  filed by the policyholder, the insurer shall notify the
 1521  policyholder of its right to participate in the mediation
 1522  program under this section. A claim becomes eligible for
 1523  mediation after the insurer complies with s. 627.70131(7) or
 1524  elects to reinspect pursuant to s. 627.70152(4)(a)3. If the
 1525  insurer has not complied with s. 627.70131(7) or elected to
 1526  reinspect pursuant to s. 627.70152(4)(a)3. within 90 days after
 1527  notice of the loss, the insurer may not require mediation under
 1528  this section. However, this subsection does not impair the right
 1529  of an insurer to request mediation after a determination of
 1530  coverage pursuant to this section or require appraisal or
 1531  another method of alternative dispute resolution pursuant to s.
 1532  627.70152(4)(b). The department shall prepare a consumer
 1533  information pamphlet for distribution to persons participating
 1534  in mediation.
 1535         (3) The costs of mediation must be reasonable, and the
 1536  insurer must bear all of the cost of conducting mediation
 1537  conferences, except as otherwise provided in this section. If a
 1538  policyholder fails to appear at the conference, the conference
 1539  must be rescheduled upon the policyholder’s payment of the costs
 1540  of a rescheduled conference. If the insurer fails to appear at
 1541  the conference, the insurer must pay the policyholder’s actual
 1542  cash expenses incurred in attending the conference if the
 1543  insurer’s failure to attend was not due to a good cause
 1544  acceptable to the department. An insurer will be deemed to have
 1545  failed to appear if the insurer’s representative lacks authority
 1546  to settle the full value of the claim. The insurer shall incur
 1547  an additional fee for a rescheduled conference necessitated by
 1548  the insurer’s failure to appear at a scheduled conference. The
 1549  fees assessed by the department administrator must include a
 1550  charge necessary to defray the expenses of the department
 1551  related to its duties under this section and must be deposited
 1552  in the Insurance Regulatory Trust Fund. The department may
 1553  suspend the insurer’s authority to appoint licensees if the
 1554  insurer does not timely pay the required fees.
 1555         Section 35. Subsection (18) is added to section 627.7074,
 1556  Florida Statutes, to read:
 1557         627.7074 Alternative procedure for resolution of disputed
 1558  sinkhole insurance claims.—
 1559         (18) The department may designate, by means of a written
 1560  contract or agreement, an entity or a person to serve as
 1561  administrator to carry out any of the provisions of this
 1562  section.
 1563         Section 36. Section 627.745, Florida Statutes, is amended
 1564  to read:
 1565         627.745 Mediation of claims.—
 1566         (1)(a) In any claim filed with an insurer for personal
 1567  injury in an amount of $10,000 or less or any claim for property
 1568  damage in any amount, arising out of the ownership, operation,
 1569  use, or maintenance of a motor vehicle, either party may demand
 1570  mediation of the claim prior to the institution of litigation.
 1571         (b)The costs of mediation must be reasonable, and the
 1572  insurer must bear all of the cost of conducting mediation
 1573  conferences, except as otherwise provided in this section. If a
 1574  policyholder fails to appear at the conference, the conference
 1575  must be rescheduled upon the policyholder’s payment of the costs
 1576  of a rescheduled conference. If the insurer fails to appear at
 1577  the conference, the insurer must pay the policyholder’s actual
 1578  cash expenses incurred in attending the conference if the
 1579  insurer’s failure to attend was not due to a good cause
 1580  acceptable to the department. An insurer is deemed to have
 1581  failed to appear if the insurer’s representative lacks authority
 1582  to settle the full value of the claim. The insurer shall incur
 1583  an additional fee, paid to the mediator, for a rescheduled
 1584  conference necessitated by the insurer’s failure to appear at a
 1585  scheduled conference. The fees assessed by the department or
 1586  administrator must include a charge necessary to defray the
 1587  expenses of the department related to its duties under this
 1588  section and must be deposited in the Insurance Regulatory Trust
 1589  Fund. The department or administrator may request that the
 1590  department suspend the insurer’s authority to appoint licensees
 1591  if the insurer does not timely pay the per-mediation-event
 1592  administrative fee. Mediation under this section is also
 1593  available to litigants referred to the department by a county
 1594  court or circuit court.
 1595         (b)A request for mediation shall be filed with the
 1596  department on a form approved by the department. The request for
 1597  mediation shall state the reason for the request for mediation
 1598  and the issues in dispute which are to be mediated. The filing
 1599  of a request for mediation tolls the applicable time
 1600  requirements for filing suit for a period of 60 days following
 1601  the conclusion of the mediation process or the time prescribed
 1602  in s. 95.11, whichever is later.
 1603         (c) The insurance policy must specify in detail the terms
 1604  and conditions for mediation of a first-party claim.
 1605         (d)The mediation shall be conducted as an informal process
 1606  in which formal rules of evidence and procedure need not be
 1607  observed. Any party participating in a mediation must have the
 1608  authority to make a binding decision. All parties must mediate
 1609  in good faith.
 1610         (e)The department shall randomly select mediators. Each
 1611  party may once reject the mediator selected, either originally
 1612  or after the opposing side has exercised its option to reject a
 1613  mediator.
 1614         (f)Costs of mediation shall be borne equally by both
 1615  parties unless the mediator determines that one party has not
 1616  mediated in good faith.
 1617         (g) Only one mediation may be requested for each claim,
 1618  unless all parties agree to further mediation.
 1619         (2)Upon receipt of a request for mediation, the department
 1620  shall refer the request to a mediator. The mediator shall notify
 1621  the applicant and all interested parties, as identified by the
 1622  applicant, and any other parties the mediator believes may have
 1623  an interest in the mediation, of the date, time, and place of
 1624  the mediation conference. The conference may be held by
 1625  telephone, if feasible. The mediation conference shall be held
 1626  within 45 days after the request for mediation.
 1627         (2)(a)(3)(a) The department shall approve mediators to
 1628  conduct mediations pursuant to this section. All mediators must
 1629  file an application under oath for approval as a mediator.
 1630         (b) To qualify for approval as a mediator, an individual
 1631  must meet one of the following qualifications:
 1632         1. Possess an active certification as a Florida Supreme
 1633  Court certified circuit court mediator. A Florida Supreme Court
 1634  certified circuit court mediator in a lapsed, suspended,
 1635  sanctioned, or decertified status is not eligible to participate
 1636  in the mediation program.
 1637         2. Be an approved department mediator as of July 1, 2014,
 1638  and have conducted at least one mediation on behalf of the
 1639  department within 4 years immediately preceding that date.
 1640         (3)(4) The department shall deny an application, or suspend
 1641  or revoke its approval, of a mediator to serve in such capacity
 1642  if the department finds that one or more of the following
 1643  grounds exist:
 1644         (a) Lack of one or more of the qualifications specified in
 1645  this section for approval.
 1646         (b) Material misstatement, misrepresentation, or fraud in
 1647  obtaining or attempting to obtain the approval.
 1648         (c) Demonstrated lack of fitness or trustworthiness to act
 1649  as a mediator.
 1650         (d) Fraudulent or dishonest practices in the conduct of
 1651  mediation or in the conduct of business in the financial
 1652  services industry.
 1653         (e) Violation of any provision of this code or of a lawful
 1654  order or rule of the department, violation of the Florida Rules
 1655  for Certified and Court-Appointed Mediators, or aiding,
 1656  instructing, or encouraging another party in committing such a
 1657  violation.
 1658  
 1659  The department may adopt rules to administer this subsection.
 1660         (4)The department shall adopt by rule a motor vehicle
 1661  claims insurance mediation program to be administered by the
 1662  department or its designee. The department may also adopt
 1663  special rules that are applicable in cases of an emergency
 1664  within the state. The rules shall be modeled after practices and
 1665  procedures set forth in mediation rules of procedure adopted by
 1666  the Supreme Court. The rules must include:
 1667         (a)Reasonable requirements for processing and scheduling
 1668  of requests for mediation.
 1669         (b)Provisions governing who may attend mediation
 1670  conferences.
 1671         (c)Selection of mediators.
 1672         (d)Criteria for the conduct of mediation conferences.
 1673         (e)Right to legal counsel.
 1674         (5)The department must adopt rules of procedure for claims
 1675  mediation, taking into consideration a system which:
 1676         (a)Is fair.
 1677         (b)Promotes settlement.
 1678         (c)Avoids delay.
 1679         (d)Is nonadversarial.
 1680         (e)Uses a framework for modern mediating technique.
 1681         (f) Controls of costs and expenses of mediation.
 1682         (5)The department may designate an entity or person to
 1683  serve as an administrator to carry out any of the provisions of
 1684  this section and may take this action by means of a written
 1685  contract or agreement.
 1686         (6) Disclosures and information divulged in the mediation
 1687  process are not admissible in any subsequent action or
 1688  proceeding relating to the claim or to the cause of action
 1689  giving rise to the claim. A person demanding mediation under
 1690  this section may not demand or request mediation after a suit is
 1691  filed relating to the same facts already mediated.
 1692         Section 37. Present subsections (7) through (12) of section
 1693  631.141, Florida Statutes, are redesignated as subsections (8)
 1694  through (13), respectively, and a new subsection (7) is added to
 1695  that section, to read:
 1696         631.141 Conduct of delinquency proceeding; domestic and
 1697  alien insurers.—
 1698         (7)In order to preserve as much as possible the right and
 1699  interest of the policyholders whose insurance policies or
 1700  similar contracts are affected by the receivership proceedings,
 1701  the department as a domiciliary receiver may:
 1702         (a)Use the property of the estate of the insurer to
 1703  transfer the insurer’s book of business, policies, or similar
 1704  contracts of coverage, in whole or in part, to a solvent
 1705  assuming insurer or insurers.
 1706         (b)Notwithstanding s. 631.195, share records of the
 1707  insurer with the prospective solvent assuming insurer or
 1708  insurers, but only to the extent necessary to undertake due
 1709  diligence for a transfer contemplated under this section.
 1710         Section 38. Subsections (1) and (3) of section 631.252,
 1711  Florida Statutes, are amended to read:
 1712         631.252 Continuation of coverage.—
 1713         (1) Unless another insurer, with approval of the
 1714  receivership court, assumes or otherwise provides coverage for
 1715  the policies of the insolvent insurer, all insurance policies or
 1716  similar contracts of coverage, other than coverages defined in
 1717  s. 631.713 or health maintenance organization coverage under
 1718  part IV, issued by the insurer shall be canceled upon the
 1719  earlier earliest to occur of the following:
 1720         (a) The date of entry of the liquidation or, if the court
 1721  so provides in its order, the expiration of 30 days from the
 1722  date of entry of the liquidation order;
 1723         (b) The normal expiration of the policy or contract
 1724  coverage;
 1725         (c) The replacement of the coverage by the insured, or the
 1726  replacement of the policy or contract of coverage, with a policy
 1727  or contract acceptable to the insured by the receiver with
 1728  another insurer; or
 1729         (d)The date proposed by the receiver and approved by the
 1730  receivership court to cancel coverage; or
 1731         (e)(d) The termination of the coverage by the insured.
 1732         (3) The 30-day coverage continuation period provided in
 1733  paragraph (1)(a) and s. 631.57(1)(a)1. may not be extended
 1734  unless the Chief Financial Officer office determines, based on a
 1735  reasonable belief, that market conditions are such that policies
 1736  of residential property insurance coverage cannot be placed with
 1737  an authorized insurer within 30 days and that an additional 15
 1738  days is needed to place such coverage.; and Failure of actual
 1739  notice to the policyholder of the insolvency of the insurer, of
 1740  commencement of a delinquency proceeding, or of expiration of
 1741  the extension period does not affect such expiration.
 1742         Section 39. Subsection (1) of section 631.56, Florida
 1743  Statutes, is amended, and subsections (5) through (8) are added
 1744  to that section, to read:
 1745         631.56 Board of directors.—
 1746         (1) The board of directors of the association shall consist
 1747  of not less than five or more than nine persons serving terms as
 1748  established in the plan of operation. Three members of the board
 1749  must be representatives from domestic insurers and appointed by
 1750  the Chief Financial Officer. The department shall approve and
 1751  appoint to the board persons recommended by the member insurers
 1752  or other persons with experience in property and casualty
 1753  insurance or motor vehicle insurance as determined by the Chief
 1754  Financial Officer. These appointments are deemed to be within
 1755  the scope of the exemption provided in s. 112.313(7)(b). In the
 1756  event the department finds that any recommended person does not
 1757  meet the qualifications for service on the board, the department
 1758  shall request the member insurers to recommend another person.
 1759  Each member shall serve for a 4-year term and may be
 1760  reappointed. Vacancies on the board shall be filled for the
 1761  remaining period of the term in the same manner as initial
 1762  appointments.
 1763         (5)The Chief Financial Officer may remove a board member
 1764  from office for misconduct, malfeasance, misfeasance, or neglect
 1765  of duty. Any vacancy so created shall be filled as provided in
 1766  subsection (1).
 1767         (6)Board members are subject to the code of ethics under
 1768  part III of chapter 112, including, but not limited to, the code
 1769  of ethics and public disclosure and reporting of financial
 1770  interests, pursuant to s. 112.3145. For purposes of applying
 1771  part III of chapter 112 to activities of members of the board of
 1772  directors, those persons are considered public officers and the
 1773  association is considered their agency. Notwithstanding s.
 1774  112.3143(2), a board member may not vote on any measure that he
 1775  or she knows would inure to his or her special private gain or
 1776  loss; that he or she knows would inure to the special private
 1777  gain or loss of any principal by which he or she is retained,
 1778  other than an agency as defined in s. 112.312; or that he or she
 1779  knows would inure to the special private gain or loss of a
 1780  relative or business associate of the public officer. Before the
 1781  vote is taken, such member shall publicly state to the board the
 1782  nature of his or her interest in the matter from which he or she
 1783  is abstaining from voting and, within 15 days after the vote
 1784  occurs, disclose the nature of his or her interest as a public
 1785  record in a memorandum filed with the person responsible for
 1786  recording the minutes of the meeting, who shall incorporate the
 1787  memorandum in the minutes.
 1788         (7)Notwithstanding s. 112.3148, s. 112.3149, or any other
 1789  law, a board member may not knowingly accept, directly or
 1790  indirectly, any gift or expenditure from a person or entity, or
 1791  an employee or representative of such person or entity, which
 1792  has a contractual relationship with the association or which is
 1793  under consideration for a contract.
 1794         (8)A board member who fails to comply with subsection (6)
 1795  or subsection (7) is subject to the penalties provided under ss.
 1796  112.317 and 112.3173.
 1797         Section 40. Paragraph (a) of subsection (1) of section
 1798  631.716, Florida Statutes, is amended, and subsections (4)
 1799  through (7) are added to that section, to read:
 1800         631.716 Board of directors.—
 1801         (1)(a) The board of directors of the association shall have
 1802  at least 9, but no more than 11, members. The members shall
 1803  consist be comprised of member insurers serving terms as
 1804  established in the plan of operation and 1 Florida Health
 1805  Maintenance Organization Consumer Assistance Plan director
 1806  confirmed pursuant to paragraph (b), or other persons with
 1807  experience in life and annuity or accident and health insurance
 1808  as determined by the Chief Financial Officer. These appointments
 1809  are deemed to be within the scope of the exemption provided in
 1810  s. 112.313(7)(b). At all times, at least 1 member of the board
 1811  member must be a domestic insurer as defined in s. 624.06(1).
 1812  The members of the board members who are member insurers shall
 1813  be elected by member insurers, subject to the approval of the
 1814  department. Each board member shall serve for a 4-year term and
 1815  may be reappointed.
 1816         (4)The Chief Financial Officer may remove a board member
 1817  from office for misconduct, malfeasance, misfeasance, or neglect
 1818  of duty. Any vacancy so created shall be filled as provided in
 1819  subsection (1).
 1820         (5)Board members are subject to the code of ethics under
 1821  part III of chapter 112, including, but not limited to, the code
 1822  of ethics and public disclosure and reporting of financial
 1823  interests, pursuant to s. 112.3145. For purposes of applying
 1824  part III of chapter 112 to activities of members of the board of
 1825  directors, those persons are considered public officers and the
 1826  association is considered their agency. Notwithstanding s.
 1827  112.3143(2), a board member may not vote on any measure that he
 1828  or she knows would inure to his or her special private gain or
 1829  loss; that he or she knows would inure to the special private
 1830  gain or loss of any principal by which he or she is retained,
 1831  other than an agency as defined in s. 112.312; or that he or she
 1832  knows would inure to the special private gain or loss of a
 1833  relative or business associate of the public officer. Before the
 1834  vote is taken, such member shall publicly state to the board the
 1835  nature of his or her interest in the matter from which he or she
 1836  is abstaining from voting and, within 15 days after the vote
 1837  occurs, disclose the nature of his or her interest as a public
 1838  record in a memorandum filed with the person responsible for
 1839  recording the minutes of the meeting, who shall incorporate the
 1840  memorandum in the minutes.
 1841         (6)Notwithstanding s. 112.3148, s. 112.3149, or any other
 1842  law, a board member may not knowingly accept, directly or
 1843  indirectly, any gift or expenditure from a person or entity, or
 1844  an employee or representative of such person or entity, which
 1845  has a contractual relationship with the association or which is
 1846  under consideration for a contract.
 1847         (7)A board member who fails to comply with subsection (5)
 1848  or subsection (6) is subject to the penalties provided under ss.
 1849  112.317 and 112.3173.
 1850         Section 41. Subsection (1) of section 631.816, Florida
 1851  Statutes, is amended, and subsections (8) through (11) are added
 1852  to that section, to read:
 1853         631.816 Board of directors.—
 1854         (1) The board of directors of the plan shall consist of not
 1855  less than five or more than nine persons serving terms as
 1856  established in the plan of operation. The department shall
 1857  approve and appoint to the board persons recommended by the
 1858  member HMOs or other persons with experience in health insurance
 1859  as determined by the Chief Financial Officer. These appointments
 1860  are deemed to be within the scope of the exemption provided in
 1861  s. 112.313(7)(b). In the event the department finds that any
 1862  recommended person does not meet the qualifications for service
 1863  on the board, the department shall request the member HMOs to
 1864  recommend another person. Each member shall serve for a 4-year
 1865  term and may be reappointed, except that terms may be staggered
 1866  as defined in the plan of operation. Vacancies on the board
 1867  shall be filled for the remaining period of the term in the same
 1868  manner as initial appointments. In determining voting rights,
 1869  each HMO is entitled to vote on the basis of cumulative weighted
 1870  voting based on the net written premium for non-Medicare and
 1871  non-Medicaid policies.
 1872         (8)The Chief Financial Officer may remove a board member
 1873  from office for misconduct, malfeasance, misfeasance, or neglect
 1874  of duty. Any vacancy so created shall be filled as provided in
 1875  subsection (1).
 1876         (9)Board members are subject to the code of ethics under
 1877  part III of chapter 112, including, but not limited to, the code
 1878  of ethics and public disclosure and reporting of financial
 1879  interests, pursuant to s. 112.3145. For purposes of applying
 1880  part III of chapter 112 to activities of members of the board of
 1881  directors, those persons are considered public officers and the
 1882  plan is considered their agency. Notwithstanding s. 112.3143(2),
 1883  a board member may not vote on any measure that he or she knows
 1884  would inure to his or her special private gain or loss; that he
 1885  or she knows would inure to the special private gain or loss of
 1886  any principal by which he or she is retained, other than an
 1887  agency as defined in s. 112.312; or that he or she knows would
 1888  inure to the special private gain or loss of a relative or
 1889  business associate of the public officer. Before the vote is
 1890  taken, such member shall publicly state to the board the nature
 1891  of his or her interest in the matter from which he or she is
 1892  abstaining from voting and, within 15 days after the vote
 1893  occurs, disclose the nature of his or her interest as a public
 1894  record in a memorandum filed with the person responsible for
 1895  recording the minutes of the meeting, who shall incorporate the
 1896  memorandum in the minutes.
 1897         (10)Notwithstanding s. 112.3148, s. 112.3149, or any other
 1898  law, a board member may not knowingly accept, directly or
 1899  indirectly, any gift or expenditure from a person or entity, or
 1900  an employee or representative of such person or entity, which
 1901  has a contractual relationship with the plan or which is under
 1902  consideration for a contract.
 1903         (11)A board member who fails to comply with subsection (9)
 1904  or subsection (10) is subject to the penalties provided under
 1905  ss. 112.317 and 112.3173.
 1906         Section 42. Subsection (1) of section 631.912, Florida
 1907  Statutes, is amended, and subsections (4), (5), and (6) are
 1908  added to that section, to read:
 1909         631.912 Board of directors.—
 1910         (1) The board of directors of the corporation shall consist
 1911  of 11 persons, 1 of whom is the insurance consumer advocate
 1912  appointed under s. 627.0613 or designee and 1 of whom is
 1913  designated by the Chief Financial Officer. The department shall
 1914  appoint to the board 6 persons selected by private carriers from
 1915  among the 20 workers’ compensation insurers with the largest
 1916  amount of direct written premium as determined by the
 1917  department, and 2 persons selected by the self-insurance funds
 1918  or other persons with experience in workers’ compensation
 1919  insurance as determined by the Chief Financial Officer. These
 1920  appointments are deemed to be within the scope of the exemption
 1921  provided in s. 112.313(7)(b). The Governor shall appoint one
 1922  person who has commercial insurance experience. At least two of
 1923  the private carriers shall be foreign carriers authorized to do
 1924  business in this state. The board shall elect a chairperson from
 1925  among its members. The Chief Financial Officer may remove any
 1926  board member for cause. Each board member shall be appointed to
 1927  serve a 4-year term and may be reappointed. A vacancy on the
 1928  board shall be filled for the remaining period of the term in
 1929  the same manner by which the original appointment was made.
 1930         (4)Board members are subject to the code of ethics under
 1931  part III of chapter 112, including, but not limited to, the code
 1932  of ethics and public disclosure and reporting of financial
 1933  interests, pursuant to s. 112.3145. For purposes of applying
 1934  part III of chapter 112 to activities of members of the board of
 1935  directors, those persons are considered public officers and the
 1936  corporation is considered their agency. Notwithstanding s.
 1937  112.3143(2), a board member may not vote on any measure that he
 1938  or she knows would inure to his or her special private gain or
 1939  loss; that he or she knows would inure to the special private
 1940  gain or loss of any principal by which he or she is retained,
 1941  other than an agency as defined in s. 112.312; or that he or she
 1942  knows would inure to the special private gain or loss of a
 1943  relative or business associate of the public officer. Before the
 1944  vote is taken, such member shall publicly state to the board the
 1945  nature of his or her interest in the matter from which he or she
 1946  is abstaining from voting and, within 15 days after the vote
 1947  occurs, disclose the nature of his or her interest as a public
 1948  record in a memorandum filed with the person responsible for
 1949  recording the minutes of the meeting, who shall incorporate the
 1950  memorandum in the minutes.
 1951         (5)Notwithstanding s. 112.3148, s. 112.3149, or any other
 1952  law, a board member may not knowingly accept, directly or
 1953  indirectly, any gift or expenditure from a person or entity, or
 1954  an employee or representative of such person or entity, which
 1955  has a contractual relationship with the corporation or which is
 1956  under consideration for a contract.
 1957         (6)A board member who fails to comply with subsection (4)
 1958  or subsection (5) is subject to the penalties provided under ss.
 1959  112.317 and 112.3173.
 1960         Section 43. Section 633.1423, Florida Statutes, is created
 1961  to read:
 1962         633.1423State Fire Marshal direct-support organization.—
 1963         (1)DEFINITION.—As used in this section, the term
 1964  “organization” means the direct-support organization established
 1965  under this section.
 1966         (2)ORGANIZATION ESTABLISHED.—The division may establish a
 1967  direct-support organization, to be known as the “State Fire
 1968  Marshal Safety and Training Force,” whose sole purpose is to
 1969  support the safety and training of firefighters and to recognize
 1970  exemplary service. The organization must:
 1971         (a)Be a not-for-profit corporation incorporated under
 1972  chapter 617 and approved by the Department of State.
 1973         (b)Be organized and operated to raise funds; request and
 1974  receive grants, gifts, and bequests of money; conduct programs
 1975  and activities; acquire, receive, hold, invest, and administer,
 1976  in its own name, securities, funds, or property; and make grants
 1977  and expenditures to or for the direct or indirect benefit of the
 1978  division. Grants and expenditures may include the cost of
 1979  education or training of firefighters, or the recognition of
 1980  exemplary service of firefighters.
 1981         (c)Be determined by the division to operate in a manner
 1982  that is:
 1983         1.Consistent with the goals of the division and laws
 1984  relating to the safety and training of firefighters.
 1985         2.In the best interest of the state.
 1986         3.In accordance with the adopted goals and mission of the
 1987  division.
 1988         (d)Use all of its grants and expenditures solely for the
 1989  purpose of educating, training, and recognizing firefighters,
 1990  and not for advertising using the likeness or name of any
 1991  elected official nor for the purpose of lobbying as defined in
 1992  s. 11.045(1).
 1993         (e)Be subject to an annual financial audit in accordance
 1994  with s. 215.981.
 1995         (3)CONTRACT.—The organization shall operate under written
 1996  contract with the division. The contract must provide for:
 1997         (a)Certification by the division that the organization is
 1998  complying with the terms of the contract and in a manner
 1999  consistent with the goals and purposes of the department and in
 2000  the best interest of the state. Such certification must be made
 2001  annually and reported in the official minutes of a meeting of
 2002  the organization.
 2003         (b)The reversion of moneys and property held by the
 2004  organization for firefighter safety, training, and recognition
 2005  to the division if the organization is no longer approved to
 2006  operate by the division or if the organization ceases to exist,
 2007  or to the state if the division ceases to exist.
 2008         (4)BOARD OF DIRECTORS.—The organization shall be governed
 2009  by a board of directors. The State Fire Marshal, or his or her
 2010  designee, shall appoint a president of the board. The board of
 2011  directors shall be appointed by the president of the board.
 2012         (5)USE OF PROPERTY.—The division may authorize, without
 2013  charge, appropriate use of fixed property and facilities of the
 2014  division by the organization, subject to this subsection.
 2015         (a)The department may prescribe any condition with which
 2016  the organization must comply in order to use the division’s
 2017  property or facilities.
 2018         (b)The department may not authorize the use of the
 2019  division’s property or facilities if the organization does not
 2020  provide equal membership and employment opportunities to all
 2021  persons regardless of race, religion, sex, age, or national
 2022  origin.
 2023         (c)The department shall adopt rules prescribing the
 2024  procedures by which the organization is governed and any
 2025  conditions with which the organization must comply to use the
 2026  division’s property or facilities.
 2027         (6)DEPOSITORY ACCOUNT.—Any moneys received by the
 2028  organization may be held in a separate depository account in the
 2029  name of the organization and subject to the contract with the
 2030  division.
 2031         (7)ANNUAL BUDGETS AND REPORTS.—The organization shall
 2032  submit to the division its annual budget and financial reports,
 2033  its federal Internal Revenue Service Application for Recognition
 2034  of Exemption Form 1023, and its federal Internal Revenue Service
 2035  Return of Organization Exempt from Income Tax Form 990.
 2036         (8)ANNUAL AUDIT.—The organization shall provide for an
 2037  annual financial audit in accordance with s. 215.981.
 2038         (9)DIVISION’S RECEIPT OF PROCEEDS.—Proceeds received by
 2039  the division from the organization shall be deposited into the
 2040  Insurance Regulatory Trust Fund.
 2041         (10)REPEAL.—This section is repealed October 1, 2028,
 2042  unless reviewed and saved from repeal by the Legislature.
 2043         Section 44. Section 634.181, Florida Statutes, is amended
 2044  to read:
 2045         634.181 Grounds for compulsory refusal, suspension, or
 2046  revocation of license or appointment of salespersons.—
 2047         (1) The department shall deny, suspend, revoke, or refuse
 2048  to renew or continue the license or appointment of any such
 2049  salesperson if it finds that as to the salesperson any one or
 2050  more of the following applicable grounds exist:
 2051         (a)(1) Material misstatement, misrepresentation, or fraud
 2052  in obtaining or attempting to obtain the license or appointment.
 2053         (b)(2) If the license or appointment is willfully used, or
 2054  to be used, to circumvent any of the requirements or
 2055  prohibitions of this part, any applicable provision of the
 2056  Florida Insurance Code, or rule of the department or commission.
 2057         (c)(3) Willful misrepresentation of any service agreement
 2058  or willful deception with regard to any agreement, done either
 2059  in person or by any form of dissemination of information or
 2060  advertising.
 2061         (d)(4) If in the adjustment of claims arising out of
 2062  service agreements, she or he has materially misrepresented to a
 2063  service agreement holder or other interested party the terms and
 2064  coverage of a service agreement with intent and for the purpose
 2065  of effecting settlement of the claim on less favorable terms
 2066  than those provided in and contemplated by the service
 2067  agreement.
 2068         (e)(5) For demonstrated lack of fitness or trustworthiness
 2069  to engage in the service agreement business.
 2070         (f)(6) For demonstrated lack of adequate knowledge and
 2071  technical competence to engage in the transactions authorized by
 2072  the license or appointment.
 2073         (g)(7) Fraudulent or dishonest practices in the conduct of
 2074  business under the license or appointment.
 2075         (h)(8) Misappropriation, conversion, or unlawful
 2076  withholding of moneys belonging to a service agreement company,
 2077  insurer, or service agreement holder or to others and received
 2078  in the conduct of business under the license or appointment.
 2079         (i)(9) For unlawfully rebating, or attempt thereat, or for
 2080  unlawfully dividing or offering to divide her or his commission
 2081  with another.
 2082         (j)(10) Willful failure to comply with, or willful
 2083  violation of any proper order of the department or office, or
 2084  willful violation of any provision of this part, or of any
 2085  applicable provision of the insurance code, or applicable rule
 2086  of the department or commission.
 2087         (k)(11) Having been found guilty of, or having pleaded
 2088  guilty or nolo contendere to, a felony or a crime punishable by
 2089  imprisonment of 1 year or more under the law of the United
 2090  States of America or any state thereof or under the law of any
 2091  other country which involves moral turpitude, without regard to
 2092  whether a judgment of conviction has been entered by the court
 2093  having jurisdiction of the cases.
 2094         (l)(12) Failure to refund unearned pro rata commission to
 2095  the agreement holder or the service agreement company, if the
 2096  service agreement company is making a full unearned pro rata
 2097  refund to the agreement holder.
 2098         (m)Having been the subject of, or having had a license,
 2099  permit, appointment, registration, or other authority to conduct
 2100  business subject to, any decision, finding, injunction,
 2101  suspension, prohibition, revocation, denial, judgment, final
 2102  agency action, or administrative order by any court of competent
 2103  jurisdiction, administrative law proceeding, state agency,
 2104  federal agency, national securities, commodities, or options
 2105  exchange, or national securities, commodities, or options
 2106  association involving a violation of any federal or state
 2107  securities or commodities law or any rule or regulation adopted
 2108  thereunder, or a violation of any rule or regulation of any
 2109  national securities, commodities, or options exchange or
 2110  national securities, commodities, or options association.
 2111         (2)When a licensee is charged with a felony enumerated in
 2112  s. 626.207(2), the department shall, immediately upon receipt of
 2113  information on or indictment for the felony, temporarily suspend
 2114  a license or appointment issued under this chapter. Such
 2115  suspension shall continue if the licensee is found guilty of, or
 2116  pleads guilty or nolo contendere to, the crime, regardless of
 2117  whether a judgment or conviction is entered, during a pending
 2118  appeal. A person may not transact insurance business after
 2119  suspension of his or her license or appointment.
 2120         (3)The department may adopt rules to administer this
 2121  section.
 2122         Section 45. Section 634.191, Florida Statutes, is amended
 2123  to read:
 2124         634.191 Grounds for discretionary refusal, suspension, or
 2125  revocation of license or appointment of salespersons.—
 2126         (1) The department may, in its discretion, deny, suspend,
 2127  revoke, or refuse to renew or continue the license or
 2128  appointment of any salesperson if it finds that as to the
 2129  salesperson any one or more of the following applicable grounds
 2130  exist under circumstances for which such denial, suspension,
 2131  revocation, or refusal is not mandatory under s. 634.181:
 2132         (a)(1) For any cause for which granting of the license or
 2133  appointment could have been refused had it then existed and been
 2134  known to the department.
 2135         (b)(2) Violation of any provision of this part or of any
 2136  other law applicable to the business of service agreements in
 2137  the course of dealings under the license or appointment.
 2138         (c)(3)Violation of Has violated any lawful order or rule
 2139  of the department or commission.
 2140         (d)(4) Failure or refusal, upon demand, to pay over to any
 2141  company or insurer the salesperson represents or has represented
 2142  any money coming into her or his hands belonging to the company
 2143  or insurer.
 2144         (e)(5) If, in the conduct of business under the license or
 2145  appointment, the salesperson has engaged in unfair methods of
 2146  competition or in unfair or deceptive acts or practices, as such
 2147  methods, acts, or practices are or may be defined under this
 2148  part, or has otherwise shown herself or himself to be a source
 2149  of injury or loss to the public or detrimental to the public
 2150  interest.
 2151         (f)(6)Failure to report to the department within 30 days
 2152  the final disposition of an administrative action taken against
 2153  a salesperson by a governmental agency or other regulatory
 2154  agency in this state or any other state or jurisdiction relating
 2155  to the business of insurance, the sale of securities, or an
 2156  activity involving fraud, dishonesty, trustworthiness, or breach
 2157  of a fiduciary duty. The salesperson must submit a copy of the
 2158  order, consent to order, or other relevant legal documents to
 2159  the department Having been found guilty of, or having pleaded
 2160  guilty or nolo contendere to, a felony or a crime punishable by
 2161  imprisonment of 1 year or more under the law of the United
 2162  States of America or any state thereof or under the law of any
 2163  other country, without regard to whether a judgment of
 2164  conviction has been entered by the court having jurisdiction of
 2165  the cases.
 2166         (2)The department may adopt rules to administer this
 2167  section.
 2168         Section 46. Section 634.320, Florida Statutes, is amended
 2169  to read:
 2170         634.320 Grounds for compulsory refusal, suspension, or
 2171  revocation of license or appointment of sales representatives.—
 2172         (1) The department shall deny, suspend, revoke, or refuse
 2173  to renew or continue the license or appointment of any sales
 2174  representative if it is found that any one or more of the
 2175  following grounds applicable to the sales representative exist:
 2176         (a)(1) Material misstatement, misrepresentation, or fraud
 2177  in obtaining or attempting to obtain a license or appointment.
 2178         (b)(2) The license or appointment is willfully used, or to
 2179  be used, to circumvent any of the requirements or prohibitions
 2180  of this part.
 2181         (c)(3) Willful misrepresentation of any warranty contract
 2182  or willful deception with regard to any such contract, done
 2183  either in person or by any form of dissemination of information
 2184  or advertising.
 2185         (d)(4) In the adjustment of claims arising out of
 2186  warranties, material misrepresentation to a warranty holder or
 2187  other interested party of the terms and coverage of a contract,
 2188  with the intent and for the purpose of effecting settlement of
 2189  such claim on less favorable terms than those provided in and
 2190  contemplated by the contract.
 2191         (e)(5) Demonstrated lack of fitness or trustworthiness to
 2192  engage in the business of home warranty.
 2193         (f)(6) Demonstrated lack of adequate knowledge and
 2194  technical competence to engage in the transactions authorized by
 2195  the license or appointment.
 2196         (g)(7) Fraudulent or dishonest practices in the conduct of
 2197  business under the license or appointment.
 2198         (h)(8) Misappropriation, conversion, or unlawful
 2199  withholding of moneys belonging to an association, insurer, or
 2200  warranty holder, or to others, and received in the conduct of
 2201  business under the license or appointment.
 2202         (i)(9) Unlawfully rebating, or attempting to unlawfully
 2203  rebate, or unlawfully dividing, or offering to divide, her or
 2204  his commission with another.
 2205         (j)(10) Willful failure to comply with, or willful
 2206  violation of, any proper order or rule of the department or
 2207  commission or willful violation of any provision of this part.
 2208         (k)(11) Being found guilty of or pleading guilty or nolo
 2209  contendere to a felony or a crime punishable by imprisonment of
 2210  1 year or more under the law of the United States of America or
 2211  any state thereof or under the law of any other country
 2212  involving moral turpitude, without regard to whether judgment of
 2213  conviction has been entered by the court.
 2214         (l)Having been the subject of, or having had a license,
 2215  permit, appointment, registration, or other authority to conduct
 2216  business subject to, any decision, finding, injunction,
 2217  suspension, prohibition, revocation, denial, judgment, final
 2218  agency action, or administrative order by any court of competent
 2219  jurisdiction, administrative law proceeding, state agency,
 2220  federal agency, national securities, commodities, or options
 2221  exchange, or national securities, commodities, or options
 2222  association involving a violation of any federal or state
 2223  securities or commodities law or any rule or regulation adopted
 2224  thereunder, or a violation of any rule or regulation of any
 2225  national securities, commodities, or options exchange or
 2226  national securities, commodities, or options association.
 2227         (2)When a licensee is charged with a felony enumerated in
 2228  s. 626.207(2), the department shall, immediately upon receipt of
 2229  information on or indictment for the felony, temporarily suspend
 2230  a license or appointment issued under this chapter. Such
 2231  suspension shall continue if the licensee is found guilty of, or
 2232  pleads guilty or nolo contendere to, the crime, regardless of
 2233  whether a judgment or conviction is entered, during a pending
 2234  appeal. A person may not transact insurance business after
 2235  suspension of his or her license or appointment.
 2236         (3)The department may adopt rules to administer this
 2237  section.
 2238         Section 47. Section 634.321, Florida Statutes, is amended
 2239  to read:
 2240         634.321 Grounds for discretionary refusal, suspension, or
 2241  revocation of license or appointment of sales representatives.—
 2242         (1) The department may, in its discretion, deny, suspend,
 2243  revoke, or refuse to renew or continue the license or
 2244  appointment of any sales representative if it is found that any
 2245  one or more of the following grounds applicable to the sales
 2246  representative exist under circumstances for which such denial,
 2247  suspension, revocation, or refusal is not mandatory under s.
 2248  634.320:
 2249         (a)(1) Any cause for which granting of the license or
 2250  appointment could have been refused had it then existed and been
 2251  known to the department.
 2252         (b)(2) Violation of any provision of this part, or of any
 2253  other law applicable to the business of warranties, in the
 2254  course of dealings under the license or appointment.
 2255         (c)(3) Violation of any lawful order or rule of the
 2256  department or commission.
 2257         (d)(4) Failure or refusal to pay over, upon demand, to any
 2258  home warranty association or insurer the sales representative
 2259  represents or has represented any money coming into her or his
 2260  hands which belongs to the association or insurer.
 2261         (e)(5) In the conduct of business under the license or
 2262  appointment, engaging in unfair methods of competition or in
 2263  unfair or deceptive acts or practices, as such methods, acts, or
 2264  practices are or may be defined under this part, or otherwise
 2265  showing herself or himself to be a source of injury or loss to
 2266  the public or detriment to the public interest.
 2267         (f)(6)Failure to report to the department within 30 days
 2268  the final disposition of an administrative action taken against
 2269  a sales representative by a governmental agency or other
 2270  regulatory agency in this state or any other state or
 2271  jurisdiction relating to the business of insurance, the sale of
 2272  securities, or an activity involving fraud, dishonesty,
 2273  trustworthiness, or breach of a fiduciary duty. The sales
 2274  representative must submit a copy of the order, consent to
 2275  order, or other relevant legal documents to the department Being
 2276  found guilty of or pleading guilty or nolo contendere to a
 2277  felony or a crime punishable by imprisonment of 1 year or more
 2278  under the law of the United States of America or any state
 2279  thereof or under the law of any other country, without regard to
 2280  whether a judgment of conviction has been entered by the court.
 2281         (2)The department may adopt rules to administer this
 2282  section.
 2283         Section 48. Section 634.419, Florida Statutes, is amended
 2284  to read:
 2285         634.419 License and appointment required.—No person or
 2286  entity shall solicit, negotiate, advertise, or effectuate
 2287  service warranty contracts in this state unless such person or
 2288  entity is licensed and appointed as a sales representative.
 2289  Sales representatives shall be responsible for the actions of
 2290  persons under their supervision. However, a service warranty
 2291  association licensed as such under this part shall not be
 2292  required to be licensed and appointed as a sales representative
 2293  to solicit, negotiate, advertise, or effectuate its products.
 2294  Sections 501.021-501.055 do not apply to persons or entities
 2295  licensed and appointed under this section, or their affiliates,
 2296  which solicit the sale of a service warranty or related service
 2297  or product in connection with a prearranged appointment at the
 2298  request of the consumer.
 2299         Section 49. Section 634.422, Florida Statutes, is amended
 2300  to read:
 2301         634.422 Grounds for compulsory refusal, suspension, or
 2302  revocation of license or appointment of sales representatives.—
 2303         (1) The department shall deny, suspend, revoke, or refuse
 2304  to renew or continue the license or appointment of any sales
 2305  representative if it is found that any one or more of the
 2306  following grounds applicable to the sales representative exist:
 2307         (a)(1) Material misstatement, misrepresentation, or fraud
 2308  in obtaining or attempting to obtain a license or appointment.
 2309         (b)(2) The license or appointment is willfully used, or to
 2310  be used, to circumvent any of the requirements or prohibitions
 2311  of this part.
 2312         (c)(3) Willful misrepresentation of any service warranty
 2313  contract or willful deception with regard to any such contract,
 2314  done either in person or by any form of dissemination of
 2315  information or advertising.
 2316         (d)(4) In the adjustment of claims arising out of
 2317  warranties, material misrepresentation to a service warranty
 2318  holder or other interested party of the terms and coverage of a
 2319  contract with the intent and for the purpose of effecting
 2320  settlement of the claim on less favorable terms than those
 2321  provided in and contemplated by the contract.
 2322         (e)(5) Demonstrated lack of fitness or trustworthiness to
 2323  engage in the business of service warranty.
 2324         (f)(6) Demonstrated lack of adequate knowledge and
 2325  technical competence to engage in the transactions authorized by
 2326  the license or appointment.
 2327         (g)(7) Fraudulent or dishonest practices in the conduct of
 2328  business under the license or appointment.
 2329         (h)(8) Misappropriation, conversion, or unlawful
 2330  withholding of moneys belonging to an association, insurer, or
 2331  warranty holder, or to others, and received in the conduct of
 2332  business under the license or appointment.
 2333         (i)(9) Unlawfully rebating, or attempting to unlawfully
 2334  rebate, or unlawfully dividing, or offering to divide, her or
 2335  his commission with another.
 2336         (j)(10) Willful failure to comply with, or willful
 2337  violation of, any proper order or rule of the department or
 2338  commission, or willful violation of any provision of this part.
 2339         (k)(11) Being found guilty of or pleading nolo contendere
 2340  to a felony or a crime punishable by imprisonment of 1 year or
 2341  more under the law of the United States of America or any state
 2342  thereof or under the law of any other country involving moral
 2343  turpitude, without regard to whether judgment of conviction has
 2344  been entered by the court having jurisdiction of the case.
 2345         (l)Having been the subject of, or having had a license,
 2346  permit, appointment, registration, or other authority to conduct
 2347  business subject to, any decision, finding, injunction,
 2348  suspension, prohibition, revocation, denial, judgment, final
 2349  agency action, or administrative order by any court of competent
 2350  jurisdiction, administrative law proceeding, state agency,
 2351  federal agency, national securities, commodities, or options
 2352  exchange, or national securities, commodities, or options
 2353  association involving a violation of any federal or state
 2354  securities or commodities law or any rule or regulation adopted
 2355  thereunder, or a violation of any rule or regulation of any
 2356  national securities, commodities, or options exchange or
 2357  national securities, commodities, or options association.
 2358         (2)When a licensee is charged with a felony enumerated in
 2359  s. 626.207(2), the department shall, immediately upon receipt of
 2360  information on or indictment for the felony, temporarily suspend
 2361  a license or appointment issued under this chapter. Such
 2362  suspension shall continue if the licensee is found guilty of, or
 2363  pleads guilty or nolo contendere to, the crime, regardless of
 2364  whether a judgment or conviction is entered, during a pending
 2365  appeal. A person may not transact insurance business after
 2366  suspension of his or her license or appointment.
 2367         (3)The department may adopt rules to administer this
 2368  section.
 2369         Section 50. Section 634.423, Florida Statutes, is amended
 2370  to read:
 2371         634.423 Grounds for discretionary refusal, suspension, or
 2372  revocation of license or appointment of sales representatives.—
 2373         (1) The department may deny, suspend, revoke, or refuse to
 2374  renew or continue the license or appointment of any sales
 2375  representative if it is found that any one or more of the
 2376  following grounds applicable to the sales representative exist
 2377  under circumstances for which such denial, suspension,
 2378  revocation, or refusal is not mandatory under s. 634.422:
 2379         (a)(1) Any cause for which granting of the license or
 2380  appointment could have been refused had it then existed and been
 2381  known to the department.
 2382         (b)(2) Violation of any provision of this part, or of any
 2383  other law applicable to the business of service warranties, in
 2384  the course of dealings under the license or appointment.
 2385         (c)(3) Violation of any lawful order or rule of the
 2386  department or commission.
 2387         (d)(4) Failure or refusal to pay over, upon demand, to any
 2388  service warranty association or insurer the sales representative
 2389  represents or has represented any money coming into her or his
 2390  hands which belongs to the association or insurer.
 2391         (e)(5) In the conduct of business under the license or
 2392  appointment, engaging in unfair methods of competition or in
 2393  unfair or deceptive acts or practices, as such methods, acts, or
 2394  practices are or may be defined under this part, or otherwise
 2395  showing herself or himself to be a source of injury or loss to
 2396  the public or detriment to the public interest.
 2397         (f)(6)Failure to report to the department within 30 days
 2398  the final disposition of an administrative action taken against
 2399  a sales representative by a governmental agency or other
 2400  regulatory agency in this state or any other state or
 2401  jurisdiction relating to the business of insurance, the sale of
 2402  securities, or an activity involving fraud, dishonesty,
 2403  trustworthiness, or breach of a fiduciary duty. The sales
 2404  representative must submit a copy of the order, consent to
 2405  order, or other relevant legal documents to the department Being
 2406  found guilty of or pleading guilty or nolo contendere to a
 2407  felony or a crime punishable by imprisonment of 1 year or more
 2408  under the law of the United States of America or any state
 2409  thereof or under the law of any other country, without regard to
 2410  whether judgment of conviction has been entered by the court
 2411  having jurisdiction of such case.
 2412         (2)The department may adopt rules to administer this
 2413  section.
 2414         Section 51. Section 648.25, Florida Statutes, is reordered
 2415  and amended to read:
 2416         648.25 Definitions.—As used in this chapter, the term:
 2417         (1)“Appointment” means the authority given by an insurer
 2418  or the managing general agent of an insurer through the
 2419  department to a licensee to transact insurance or adjust claims
 2420  on behalf of the insurer or managing general agent.
 2421         (2)(1) “Bail bond agency” means:
 2422         (a) The building where a licensee maintains an office and
 2423  where all records required by ss. 648.34 and 648.36 are
 2424  maintained; or
 2425         (b) An entity that:
 2426         1. Charges a fee or premium to release an accused defendant
 2427  or detainee from jail; or
 2428         2. Engages in or employs others to engage in any activity
 2429  that may be performed only by a licensed and appointed bail bond
 2430  agent.
 2431         (3)(2) “Bail bond agent” means a limited surety agent or a
 2432  professional bail bond agent as hereafter defined.
 2433         (7)(3) “Managing general agent” means any individual,
 2434  partnership, association, or corporation appointed or employed
 2435  by an insurer to supervise or manage the bail bond business
 2436  written in this state by limited surety agents appointed by the
 2437  insurer.
 2438         (5)(4) “Insurer” means any domestic, foreign, or alien
 2439  surety company which has been authorized to transact surety
 2440  business in this state.
 2441         (6)(5) “Limited surety agent” means any individual
 2442  appointed by an insurer by power of attorney to execute or
 2443  countersign bail bonds in connection with judicial proceedings
 2444  who receives or is promised money or other things of value
 2445  therefor.
 2446         (4)(6) “Primary Bail bond agent in charge” means a licensed
 2447  bail bond agent who is responsible for the overall operation and
 2448  management of a bail bond agency location and whose
 2449  responsibilities include hiring and supervising all individuals
 2450  within that location. A bail bond agent may be designated as the
 2451  primary bail bond agent in charge for only one bail bond agency
 2452  location.
 2453         (8)(7) “Professional bail bond agent” means any person who
 2454  pledges United States currency, United States postal money
 2455  orders, or cashier’s checks as security for a bail bond in
 2456  connection with a judicial proceeding and receives or is
 2457  promised therefor money or other things of value.
 2458         (9)(8) “Temporary bail bond agent” means a person licensed
 2459  before January 1, 2024, who is employed by a bail bond agent or
 2460  agency, insurer, or managing general agent, and such licensee
 2461  has the same authority as a licensed bail bond agent, including
 2462  presenting defendants in court; apprehending, arresting, and
 2463  surrendering defendants to the proper authorities, while
 2464  accompanied by a supervising bail bond agent or an agent from
 2465  the same agency; and keeping defendants under necessary
 2466  surveillance. However, a temporary licensee may not execute or
 2467  sign bonds, handle collateral receipts, or deliver bonds to
 2468  appropriate authorities. A temporary licensee may not operate an
 2469  agency or branch agency separate from the location of the
 2470  supervising bail bond agent, managing general agent, or insurer
 2471  by whom the licensee is employed. This does not affect the right
 2472  of a bail bond agent or insurer to hire counsel or to obtain the
 2473  assistance of law enforcement officers. A temporary bail bond
 2474  agent license expires 18 months after issuance and is no longer
 2475  valid on or after June 30, 2025.
 2476         Section 52. Subsection (3) of section 648.26, Florida
 2477  Statutes, is amended to read:
 2478         648.26 Department of Financial Services; administration.—
 2479         (3) The papers, documents, reports, or any other
 2480  investigatory records of the department are confidential and
 2481  exempt from the provisions of s. 119.07(1) until such
 2482  investigation is completed or ceases to be active. For the
 2483  purpose of this section, an investigation is considered active
 2484  “active” while the investigation is being conducted by the
 2485  department with a reasonable, good faith belief that it may lead
 2486  to the filing of administrative, civil, or criminal proceedings.
 2487  An investigation does not cease to be active if the department
 2488  is proceeding with reasonable dispatch and there is good faith
 2489  belief that action may be initiated by the department or other
 2490  administrative or law enforcement agency. This subsection does
 2491  not prevent the department or office from disclosing the content
 2492  of a complaint or such information as it deems necessary to
 2493  conduct the investigation, to update the complainant as to the
 2494  status and outcome of the complaint, or to share such
 2495  information with any law enforcement agency or other regulatory
 2496  body.
 2497         Section 53. Subsection (5) of section 648.27, Florida
 2498  Statutes, is amended to read:
 2499         648.27 Licenses and appointments; general.—
 2500         (5)(a) The license of a bail bond agent shall continue in
 2501  force, without further examination unless deemed necessary by
 2502  the department, until suspended, revoked, or otherwise
 2503  terminated.
 2504         (b)The license of a temporary bail bond agent shall
 2505  continue in force until suspended, revoked, or otherwise
 2506  terminated.
 2507         Section 54. Section 648.285, Florida Statutes, is amended
 2508  to read:
 2509         648.285 Bond agency; ownership requirements; applications
 2510  for bail bond agency licenses.—
 2511         (1) A person may not own, control, manage, or otherwise
 2512  have a pecuniary interest in a bail bond agency unless such
 2513  individual is a licensed pursuant to s. 648.27, and appointed
 2514  through the department, and actively engaged as a bail bond
 2515  agent for at least the preceding 24 months. Any agency that is
 2516  not in compliance with this subsection is shall be subject to
 2517  the issuance of an immediate final order of suspension of its
 2518  license and all operations until the agency achieves compliance.
 2519         (2)Effective January 1, 2024, the department may issue a
 2520  bail bond agency license to any person only after such person
 2521  files a written application with the department and qualifies
 2522  for such license.
 2523         (3)An application for a bail bond agency license must be
 2524  signed by an individual required to be listed in the application
 2525  under paragraph (a). A bail bond agency license may permit a
 2526  third party to complete, submit, and sign an application on the
 2527  bail bond agency’s behalf; however, the bail bond agency is
 2528  responsible for ensuring that the information on the application
 2529  is true and correct, and the bail bond agency is accountable for
 2530  any misstatements or misrepresentations. The application for a
 2531  bail bond agency license must include:
 2532         (a)The name and license number of each owner, partner,
 2533  officer, director, president, senior vice president, secretary,
 2534  treasurer, and limited liability company member who directs or
 2535  participates in the management or control of the bail bond
 2536  agency, whether through ownership of voting securities, by
 2537  contract, by ownership of any agency bank account, or otherwise.
 2538         (b)The residence address of each person required to be
 2539  listed in the application under paragraph (a).
 2540         (c)The name, principal business street address, and valid
 2541  e-mail address of the bail bond agency and the name, address,
 2542  and e-mail address of the agency’s registered agent or person or
 2543  company authorized to accept service on behalf of the bail bond
 2544  agency.
 2545         (d)The physical address of each branch bail bond agency,
 2546  including its name, e-mail address, and telephone number, and
 2547  the date that the branch location began transacting bail bond
 2548  business.
 2549         (e)The name of the full-time bail bond agent in charge of
 2550  the agency office, including branch locations, and his or her
 2551  corresponding location.
 2552         (f)Such additional information as the department requires
 2553  by rule to ascertain the trustworthiness and competence of
 2554  persons required to be listed on the application and to
 2555  ascertain that such persons meet the requirements of this code.
 2556  However, the department may not require that credit or character
 2557  reports be submitted for persons required to be listed on the
 2558  application.
 2559         (4)The department must issue a license to each agency upon
 2560  approval of the application, and each agency location must
 2561  display the license prominently in a manner that makes it
 2562  clearly visible to any customer or potential customer who enters
 2563  the agency location.
 2564         (5)A bail bond agency that holds a current and valid
 2565  registration number with the department shall have its
 2566  registration automatically converted to a license on July 1,
 2567  2024.
 2568         (6)Section 112.011 does not apply to bail bond agencies or
 2569  to applicants for licensure as owners of bail bond agencies.
 2570         (7)(2) If the owner of a bail bond agency dies or becomes
 2571  mentally incapacitated, a personal representative or legal
 2572  guardian may be issued a temporary permit to manage the affairs
 2573  of the bail bond agency. Such person must appoint or maintain
 2574  the appointment of a primary bail bond agent in charge, as
 2575  provided in s. 648.387, and may not engage in any activities as
 2576  a licensed bail bond agent but must comply with s. 648.387
 2577  during the administration of the estate or guardianship. A
 2578  temporary permit is valid for a maximum of 24 months.
 2579         (8)(3) Application for a temporary permit must be made by
 2580  the personal representative or legal guardian upon statements
 2581  and affidavits filed with the department on forms prescribed and
 2582  furnished by it. The applicant must meet the qualifications for
 2583  licensure as a bail bond agent, except for the residency,
 2584  examination, education, and experience requirements.
 2585         Section 55. Subsection (1) of section 648.30, Florida
 2586  Statutes, is amended to read:
 2587         648.30 Licensure and appointment required; prohibited acts;
 2588  penalties.—
 2589         (1)(a) A person or entity may not act in the capacity of a
 2590  bail bond agent or temporary bail bond agency agent or perform
 2591  any of the functions, duties, or powers prescribed for bail bond
 2592  agents or temporary bail bond agencies agents under this chapter
 2593  unless that person or entity is qualified, licensed, and
 2594  appointed as provided in this chapter and employed by a bail
 2595  bond agency.
 2596         (b)A bail bond agent may not sell a bail bond issued by an
 2597  insurer for which the agent and the agent’s bail bond agency do
 2598  not hold a current appointment.
 2599         (c)Except as otherwise provided in this part, a person or
 2600  entity, other than a bail bond agency or an employee of a bail
 2601  bond agency, may not perform any of the functions of a bail bond
 2602  agency without a bail bond agency license.
 2603         Section 56. Section 648.31, Florida Statutes, is amended to
 2604  read:
 2605         648.31 Appointment taxes and fees.—The department shall
 2606  collect in advance all appointment taxes and fees for the
 2607  issuance of any appointment to a bail bond agent or temporary
 2608  bail bond agent, as provided in s. 624.501. There is no fee for
 2609  the issuance of any appointment to a bail bond agency.
 2610         Section 57. Subsection (2) of section 648.34, Florida
 2611  Statutes, is amended to read:
 2612         648.34 Bail bond agents; qualifications.—
 2613         (2) To qualify as a bail bond agent, it must affirmatively
 2614  appear at the time of application and throughout the period of
 2615  licensure that the applicant has complied with the provisions of
 2616  s. 648.355 and has obtained a temporary license pursuant to such
 2617  section and:
 2618         (a) The applicant Is a natural person who has reached the
 2619  age of 18 years and holds a high school diploma or its
 2620  equivalent.
 2621         (b) The applicant Is a United States citizen or legal alien
 2622  who possesses work authorization from the United States Bureau
 2623  of Citizenship and Immigration Services and is a resident of
 2624  this state. An individual who is a resident of this state shall
 2625  be deemed to meet the residence requirement of this paragraph,
 2626  notwithstanding the existence, at the time of application for
 2627  license, of a license in the applicant’s name on the records of
 2628  another state as a resident licensee of such other state, if the
 2629  applicant furnishes a letter of clearance satisfactory to the
 2630  department that his or her resident licenses have been canceled
 2631  or changed to a nonresident basis and that he or she is in good
 2632  standing.
 2633         (c) Will maintain his or her The place of business of the
 2634  applicant will be located in this state and in the county where
 2635  the applicant will maintain his or her records and be actively
 2636  engaged in the bail bond business and work with a licensed
 2637  maintain an agency accessible to the public which is open for
 2638  reasonable business hours.
 2639         (d) The applicant Is vouched for and recommended upon sworn
 2640  statements filed with the department by at least three reputable
 2641  citizens who are residents of the same counties in which the
 2642  applicant proposes to engage in the bail bond business.
 2643         (e) The applicant Is a person of high character and
 2644  approved integrity and has not been convicted of or pleaded
 2645  guilty or no contest to a felony, a crime involving moral
 2646  turpitude, or a crime punishable by imprisonment of 1 year or
 2647  more under the law of any state, territory, or country, whether
 2648  or not a judgment or conviction has been entered.
 2649         (f)Within 2 years immediately before applying for the
 2650  license, has successfully completed a basic certification course
 2651  in the criminal justice system which consists of at least 120
 2652  hours of classroom instruction with a passing grade of 80
 2653  percent or higher and has successfully completed a
 2654  correspondence course for bail bond agents approved by the
 2655  department.
 2656         (g)(f)The applicant Has passed any required examination.
 2657         Section 58. Section 648.355, Florida Statutes, is amended
 2658  to read:
 2659         648.355 Temporary limited license as Limited surety agents
 2660  and agent or professional bail bond agents agent; qualifications
 2661  pending examination.—
 2662         (1) The department may, in its discretion, issue a
 2663  temporary license as a limited surety agent or professional bail
 2664  bond agent, subject to the following conditions:
 2665         (a)The applicant is a natural person at least 18 years of
 2666  age and holds a high school diploma or its equivalent.
 2667         (b)The applicant is a United States citizen or legal alien
 2668  who possesses work authorization from the United States Bureau
 2669  of Citizenship and Immigration Services and is a resident of
 2670  this state. An individual who is a resident of this state shall
 2671  be deemed to meet the residence requirement of this paragraph,
 2672  notwithstanding the existence, at the time of application for
 2673  temporary license, of a license in the individual’s name on the
 2674  records of another state as a resident licensee of such other
 2675  state, if the applicant furnishes a letter of clearance
 2676  satisfactory to the department that the individual’s resident
 2677  licenses have been canceled or changed to a nonresident basis
 2678  and that the individual is in good standing.
 2679         (c)The applicant is a person of high character and
 2680  approved integrity and has never been convicted of or pleaded
 2681  guilty or no contest to a felony, a crime involving moral
 2682  turpitude, or a crime punishable by imprisonment of 1 year or
 2683  more under the law of any state, territory, or country, whether
 2684  or not a judgment or conviction is entered.
 2685         (d)Within 4 years prior to the date of application for a
 2686  temporary license, the applicant has successfully completed a
 2687  basic certification course in the criminal justice system,
 2688  consisting of not less than 120 hours of classroom instruction
 2689  with a passing grade of 80 percent or higher and has
 2690  successfully completed a correspondence course for bail bond
 2691  agents approved by the department.
 2692         (e)The applicant must be employed full time at the time of
 2693  licensure, and at all times throughout the existence of the
 2694  temporary license, by only one licensed and appointed
 2695  supervising bail bond agent, who supervises the work of the
 2696  applicant and is responsible for the licensee’s conduct in the
 2697  bail bond business. The applicant must be appointed by the same
 2698  insurers as the supervising bail bond agent. The supervising
 2699  bail bond agent shall certify monthly to the department under
 2700  oath, on a form prescribed by the department, the names and
 2701  hours worked each week of all temporary bail bond agents. Filing
 2702  a false certification is grounds for the immediate suspension of
 2703  the license and imposition of a $5,000 administrative fine. The
 2704  department may adopt rules that establish standards for the
 2705  employment requirements.
 2706         (f)The application must be accompanied by an affidavit
 2707  verifying proposed employment and a report as to the applicant’s
 2708  integrity and moral character on a form prescribed by the
 2709  department and executed by the proposed employer.
 2710         (g)The applicant must file with the department statements
 2711  by at least three reputable citizens who are residents of the
 2712  same counties in which the applicant proposes to engage as a
 2713  temporary licensee.
 2714         (h)The applicant’s employer is responsible for the bail
 2715  bonding acts of any licensee under this section.
 2716         (2)All applicable license fees, as prescribed in s.
 2717  624.501, must be paid before issuance of the temporary license.
 2718         (3)The temporary license shall be effective for 18 months,
 2719  subject to earlier termination at the request of the employer or
 2720  if suspended or revoked by the department.
 2721         (4) The applicant shall furnish, with the application for
 2722  temporary license, a complete set of the applicant’s
 2723  fingerprints in accordance with s. 626.171(4) and a recent
 2724  credential-sized, fullface photograph of the applicant. The
 2725  department may shall not issue a temporary license under this
 2726  section until the department has received a report from the
 2727  Department of Law Enforcement and the Federal Bureau of
 2728  Investigation relative to the existence or nonexistence of a
 2729  criminal history report based on the applicant’s fingerprints.
 2730         (2)(5) The department may collect a fee necessary to cover
 2731  the cost of a character and credit report made by an established
 2732  and reputable independent reporting service. The fee shall be
 2733  deposited to the credit of the Insurance Regulatory Trust Fund.
 2734         (3)(6)Effective July 1, 2023, any individual licensed by
 2735  the department as a temporary bail bond agent may take the
 2736  required bail bond agent’s licensure examination, may file an
 2737  application for a bail bond agent’s license if otherwise
 2738  qualified for licensure, and may take the required bail bond
 2739  agent’s licensure examination After licensure as a temporary
 2740  licensee for at least 12 months, such licensee may file an
 2741  application for and become eligible for a regular bail bond
 2742  agent’s license based on the licensee’s experience in the bail
 2743  bond business and education pursuant to paragraph (1)(d) and, if
 2744  otherwise qualified, take the required bail bond agent’s
 2745  licensure examination. The applicant and supervising bail bond
 2746  agent must each file an affidavit under oath, on a form
 2747  prescribed by the department, verifying the required employment
 2748  of the temporary agent before issuance of the license.
 2749         (7)In no event shall a temporary licensee licensed under
 2750  this section perform any of the functions for which a bail bond
 2751  agent’s license is required after expiration of the temporary
 2752  license without having passed the written examination as for a
 2753  regular bail bond agent’s license.
 2754         (8)(a)A temporary licensee has the same authority as a
 2755  licensed bail bond agent, including presenting defendants in
 2756  court; apprehending, arresting, and surrendering defendants to
 2757  the proper authorities; and keeping defendants under necessary
 2758  surveillance. However, a temporary licensee must be accompanied
 2759  by a supervising bail bond agent or an agent from the same
 2760  agency when apprehending, arresting, or surrendering defendants
 2761  to authorities.
 2762         (b)A temporary licensee may not execute or sign bonds,
 2763  handle collateral receipts, deliver bonds to appropriate
 2764  authorities, or operate an agency or branch agency separate from
 2765  the location of the supervising bail bond agent, managing
 2766  general agent, or insurer by whom the licensee is employed.
 2767         (4)(9)Effective July 1, 2023, the department may not issue
 2768  a temporary bail bond agent’s license. An individual currently
 2769  licensed as a temporary bail bond agent may continue to be
 2770  licensed in accordance with this chapter. A temporary bail bond
 2771  agent’s license may not be reinstated if the license expires or
 2772  is terminated, suspended, or revoked The department shall not
 2773  issue a temporary bail bond agent’s license to any individual
 2774  who has held such a temporary license in this state within 2
 2775  years after the expiration of such temporary bail bond agent’s
 2776  license.
 2777         Section 59. Subsections (1) through (4) of section 648.382,
 2778  Florida Statutes, are amended to read:
 2779         648.382 Appointment of bail bond agents and bail bond
 2780  agencies temporary bail bond agents; effective date of
 2781  appointment.—
 2782         (1)(a) Each insurer or appointing a bail bond agent and
 2783  each insurer, managing general agent, or bail bond agent
 2784  appointing a temporary bail bond agent or bail bond agency in
 2785  this state must file the appointment with the department and, at
 2786  the same time, pay the applicable appointment fees and taxes. A
 2787  person appointed under this section must hold a valid bail bond
 2788  agent’s or temporary bail bond agency’s agent’s license. There
 2789  is no fee for the issuance of any appointment of a bail bond
 2790  agency.
 2791         (b)Effective July 1, 2025, each insurer or managing
 2792  general agent appointing a bail bond agency in this state must
 2793  file the appointment with the department. An entity appointed
 2794  under this section must hold a valid bail bond agency’s license.
 2795         (2) Before Prior to any appointment, an appropriate officer
 2796  or official of the appointing insurer in the case of a bail bond
 2797  agent or an insurer, managing general agent, or bail bond agent
 2798  in the case of a temporary bail bond agent must submit:
 2799         (a) A certified statement or affidavit to the department
 2800  stating what investigation has been made concerning the proposed
 2801  appointee and the proposed appointee’s background and the
 2802  appointing person’s opinion to the best of his or her knowledge
 2803  and belief as to the moral character and reputation of the
 2804  proposed appointee. In lieu of such certified statement or
 2805  affidavit, by authorizing the effectuation of an appointment for
 2806  a licensee, the appointing entity certifies to the department
 2807  that such investigation has been made and that the results of
 2808  the investigation and the appointing person’s opinion is that
 2809  the proposed appointee is a person of good moral character and
 2810  reputation and is fit to engage in the bail bond business;
 2811         (b) An affidavit under oath on a form prescribed by the
 2812  department, signed by the proposed appointee, stating that
 2813  premiums are not owed to any insurer and that the appointee will
 2814  discharge all outstanding forfeitures and judgments on bonds
 2815  previously written. If the appointee does not satisfy or
 2816  discharge such forfeitures or judgments, the former insurer
 2817  shall file a notice, with supporting documents, with the
 2818  appointing insurer, the former agent or agency, and the
 2819  department, stating under oath that the licensee has failed to
 2820  timely satisfy forfeitures and judgments on bonds written and
 2821  that the insurer has satisfied the forfeiture or judgment from
 2822  its own funds. Upon receipt of such notification and supporting
 2823  documents, the appointing insurer shall immediately cancel the
 2824  licensee’s appointment. The licensee may be reappointed only
 2825  upon certification by the former insurer that all forfeitures
 2826  and judgments on bonds written by the licensee have been
 2827  discharged. The appointing insurer or former agent or agency
 2828  may, within 10 days, file a petition with the department seeking
 2829  relief from this paragraph. Filing of the petition stays the
 2830  duty of the appointing insurer to cancel the appointment until
 2831  the department grants or denies the petition; and
 2832         (c) Any other information that the department reasonably
 2833  requires concerning the proposed appointee; and
 2834         (d)Effective January 1, 2025, a certification that the
 2835  appointing entity obtained from each appointee the following
 2836  sworn statement:
 2837  
 2838         Pursuant to section 648.382(2)(b), Florida Statutes, I
 2839         do solemnly swear that I owe no premium to any insurer
 2840         or agency and that I will discharge all outstanding
 2841         forfeitures and judgments on bonds that have been
 2842         previously written. I acknowledge that failure to do
 2843         this will result in my active appointments being
 2844         canceled.
 2845  
 2846  An appointed bail bond agency must have the attestation under
 2847  this paragraph signed by its owner.
 2848         (3) By authorizing the effectuation of an appointment for a
 2849  licensee, the appointing insurer certifies to the department
 2850  that the insurer will be bound by the acts of the bail bond
 2851  agent or bail bond agency acting within the scope of the agent’s
 2852  or agency’s his or her appointment, and, in the case of a
 2853  temporary bail bond agent, the appointing insurer, managing
 2854  general agent, or bail bond agent, as the case may be, must
 2855  certify to the department that he or she will supervise the
 2856  temporary bail bond agent’s activities.
 2857         (4) Each appointing insurer or, managing general agent, or
 2858  bail bond agent must advise the department in writing within 5
 2859  days after receiving notice or learning that an appointee has
 2860  been arrested for, pled guilty or nolo contendere to, or been
 2861  found guilty of, a felony or other offense punishable by
 2862  imprisonment of 1 year or more under the law of any
 2863  jurisdiction, whether judgment was entered or withheld by the
 2864  court.
 2865         Section 60. Present subsections (1) through (4) of section
 2866  648.386, Florida Statutes, are redesignated as subsections (2)
 2867  through (5), respectively, a new subsection (1) is added to that
 2868  section, and present subsection (2) of that section is amended,
 2869  to read:
 2870         648.386 Qualifications for prelicensing and continuing
 2871  education schools and instructors.—
 2872         (1)DEFINITION OF “CLASSROOM INSTRUCTION.”—As used in this
 2873  section, the term “classroom instruction” means a course
 2874  designed to be presented to a group of students by a live
 2875  instructor using lecture, video, webcast, or virtual or other
 2876  audio-video presentation.
 2877         (3)(2) SCHOOLS AND CURRICULUM FOR CONTINUING EDUCATION
 2878  SCHOOLS.—In order to be considered for approval and
 2879  certification as an approved limited surety agent and
 2880  professional bail bond agent continuing education school, such
 2881  entity must:
 2882         (a) Provide a minimum of three classroom-instruction
 2883  continuing education classes per calendar year.
 2884         (b) Submit a course curriculum to the department for
 2885  approval.
 2886         (c) Offer continuing education classes that comprise which
 2887  are comprised of a minimum of 2 hours of approved classroom
 2888  instruction coursework and are taught by an approved supervising
 2889  instructor or guest lecturer approved by the entity or the
 2890  supervising instructor.
 2891         Section 61. Section 648.387, Florida Statutes, is amended
 2892  to read:
 2893         648.387 Primary Bail bond agent in charge agents; duties.—
 2894         (1) The owner or operator of a bail bond agency shall
 2895  designate a primary bail bond agent in charge for each location,
 2896  and shall file with the department the name and license number
 2897  of the person and the address of the location on a form approved
 2898  by the department. The designation of the primary bail bond
 2899  agent in charge may be changed if the department is notified
 2900  immediately. Failure to notify the department within 10 working
 2901  days after such change is grounds for disciplinary action
 2902  pursuant to s. 648.45.
 2903         (2) The primary bail bond agent in charge is responsible
 2904  for the overall operation and management of a bail bond agency
 2905  location, whose responsibilities may include, without
 2906  limitations, hiring and supervising of all individuals within
 2907  the location, whether they deal with the public in the
 2908  solicitation or negotiation of bail bond contracts or in the
 2909  collection or accounting of moneys. A person may be designated
 2910  as the primary bail bond agent in charge for only one agency and
 2911  location.
 2912         (3) The department may suspend or revoke the license of the
 2913  owner, bail bond agent in charge operator, and primary bail bond
 2914  agency agent if the a bail bond agency employs, contracts with,
 2915  or uses the services of a person who has had a license denied or
 2916  whose license is currently suspended or revoked. However, a
 2917  person who has been denied a license for failure to pass a
 2918  required examination may be employed to perform clerical or
 2919  administrative functions for which licensure is not required.
 2920         (4) An owner, a bail bond agent in charge operator, or a
 2921  bail bond agency primary agent may not employ, contract with, or
 2922  use the services of any person in a bail bond agency who has
 2923  been charged with, found guilty of, or pled guilty or nolo
 2924  contendere to a felony or a crime punishable by imprisonment of
 2925  1 year or more under the law of any jurisdiction, without regard
 2926  to whether judgment was entered or withheld by the court.
 2927         (5) A bail bond agency location may not conduct surety
 2928  business unless a primary bail bond agent in charge is
 2929  designated by, and provides services to, the bail bond agency at
 2930  all times. If the bail bond agent in charge designated with the
 2931  department ends his or her affiliation with the bail bond agency
 2932  for any reason, and the bail bond agency fails to designate
 2933  another bail bond agent in charge within the 10-day period under
 2934  subsection (1) and such failure continues for 90 days, the bail
 2935  bond agency license automatically expires on the 91st day after
 2936  the date the designated bail bond agent in charge ended his or
 2937  her affiliation with the agency The failure to designate a
 2938  primary agent on a form prescribed by the department, within 10
 2939  working days after an agency’s inception or a change of primary
 2940  agent, is a violation of this chapter, punishable as provided in
 2941  s. 648.45.
 2942         Section 62. Section 648.3875, Florida Statutes, is created
 2943  to read:
 2944         648.3875Bail bond agent in charge; qualifications.—
 2945         (1)An application for designation as a bail bond agent in
 2946  charge must be submitted on forms prescribed by the department.
 2947  The application must include the applicant’s full name and the
 2948  applicant’s license number issued pursuant to s. 648.27.
 2949         (2)To qualify as a bail bond agent in charge, it must
 2950  affirmatively appear that, at the time of application and
 2951  throughout the period of licensure, the applicant has complied
 2952  with s. 648.285 and that the applicant has been licensed as a
 2953  bail bond agent for the 24 months immediately preceding the
 2954  appointment as the bail bond agent in charge.
 2955         Section 63. Section 648.39, Florida Statutes, is amended to
 2956  read:
 2957         648.39 Termination of appointment of managing general
 2958  agents, bail bond agents, and temporary bail bond agencies
 2959  agents.—
 2960         (1) An insurer that who terminates the appointment of a
 2961  managing general agent, bail bond agent, or temporary bail bond
 2962  agency agent shall, within 10 days after such termination, file
 2963  written notice thereof with the department together with a
 2964  statement that it has given or mailed notice to the terminated
 2965  agent or agency. Such notice filed with the department must
 2966  state the reasons, if any, for such termination. Information so
 2967  furnished to the department is confidential and exempt from the
 2968  provisions of s. 119.07(1).
 2969         (2) Each insurer shall, within 5 days after terminating the
 2970  appointment of any managing general agent, bail bond agent, or
 2971  temporary bail bond agency agent, give written notice thereof to
 2972  each clerk of the circuit court and sheriff with whom such
 2973  person is registered.
 2974         (3) An insurer that terminates the appointment of a
 2975  managing general agent or, bail bond agent, or temporary bail
 2976  bond agent may authorize such person to continue to attempt the
 2977  arrest and surrender of a defendant for whom a surety bond had
 2978  been written by the bail bond agent before prior to termination
 2979  and to seek discharge of forfeitures and judgments as provided
 2980  in chapter 903.
 2981         Section 64. Section 648.41, Florida Statutes, is repealed.
 2982         Section 65. Section 648.42, Florida Statutes, is amended to
 2983  read:
 2984         648.42 Registration of bail bond agents.—A bail bond agent
 2985  may not become a surety on an undertaking unless he or she has
 2986  registered in the office of the sheriff and with the clerk of
 2987  the circuit court in the county in which the bail bond agent
 2988  resides. The bail bond agent may register in a like manner in
 2989  any other county, and any bail bond agent shall file a certified
 2990  copy of his or her appointment by power of attorney from each
 2991  insurer which he or she represents as a bail bond agent with
 2992  each of such officers. Registration and filing of a certified
 2993  copy of renewed power of attorney shall be performed by April 1
 2994  of each odd-numbered year. The clerk of the circuit court and
 2995  the sheriff may shall not permit the registration of a bail bond
 2996  agent unless such bail bond agent is currently licensed by the
 2997  department and appointed by an insurer the department. Nothing
 2998  in this section shall prevent the registration of a temporary
 2999  licensee at the jail for the purposes of enabling the licensee
 3000  to perform the duties under such license as set forth in this
 3001  chapter.
 3002         Section 66. Subsections (1) and (2) and paragraphs (c) and
 3003  (d) of subsection (8) of section 648.44, Florida Statutes, are
 3004  amended to read:
 3005         648.44 Prohibitions; penalty.—
 3006         (1) A bail bond agent or temporary bail bond agency agent
 3007  may not:
 3008         (a) Suggest or advise the employment of, or name for
 3009  employment, any particular attorney or attorneys to represent
 3010  his or her principal.
 3011         (b) Directly or indirectly solicit business in or on the
 3012  property or grounds of a jail, prison, or other place where
 3013  prisoners are confined or in or on the property or grounds of
 3014  any court. The term “solicitation” includes the distribution of
 3015  business cards, print advertising, or other written or oral
 3016  information directed to prisoners or potential indemnitors,
 3017  unless a request is initiated by the prisoner or a potential
 3018  indemnitor. Permissible print advertising in the jail is
 3019  strictly limited to a listing in a telephone directory and the
 3020  posting of the bail bond agent’s or agency’s name, address, e
 3021  mail address, web address, and telephone number in a designated
 3022  location within the jail.
 3023         (c) Initiate in-person or telephone solicitation after 9:00
 3024  p.m. or before 8:00 a.m., in the case of domestic violence
 3025  cases, at the residence of the detainee or the detainee’s
 3026  family. Any solicitation not prohibited by this chapter must
 3027  comply with the telephone solicitation requirements in ss.
 3028  501.059(2) and (4), 501.613, and 501.616(6).
 3029         (d) Wear or display any identification other than the
 3030  department issued or approved license or approved department
 3031  identification, which includes a citation of the licensee’s
 3032  arrest powers, in or on the property or grounds of a jail,
 3033  prison, or other place where prisoners are confined or in or on
 3034  the property or grounds of any court.
 3035         (e) Pay a fee or rebate or give or promise anything of
 3036  value to a jailer, police officer, peace officer, or committing
 3037  trial court judge or any other person who has power to arrest or
 3038  to hold in custody or to any public official or public employee
 3039  in order to secure a settlement, compromise, remission, or
 3040  reduction of the amount of any bail bond or estreatment thereof.
 3041         (f) Pay a fee or rebate or give anything of value to an
 3042  attorney in a bail bond matter, except in defense of any action
 3043  on a bond.
 3044         (g) Pay a fee or rebate or give or promise anything of
 3045  value to the principal or anyone in his or her behalf.
 3046         (h) Participate in the capacity of an attorney at a trial
 3047  or hearing of one on whose bond he or she is surety.
 3048         (i) Loiter in or about a jail, courthouse, or where
 3049  prisoners are confined.
 3050         (j) Accept anything of value from a principal for providing
 3051  a bail bond except the premium and transfer fee authorized by
 3052  the office, except that the bail bond agent or bail bond agency
 3053  may accept collateral security or other indemnity from the
 3054  principal or another person in accordance with the provisions of
 3055  s. 648.442, together with documentary stamp taxes, if
 3056  applicable. No fees, expenses, or charges of any kind shall be
 3057  permitted to be deducted from the collateral held or any return
 3058  premium due, except as authorized by this chapter or rule of the
 3059  department or commission. A bail bond agent or bail bond agency
 3060  may, upon written agreement with another party, receive a fee or
 3061  compensation for returning to custody an individual who has fled
 3062  the jurisdiction of the court or caused the forfeiture of a
 3063  bond.
 3064         (k) Write more than one power of attorney per charge on a
 3065  bond, except in the case of a cosurety, unless the power of
 3066  attorney prohibits a cosurety.
 3067         (l) Execute a bond in this state on his or her own behalf.
 3068         (m) Execute a bond in this state if a judgment has been
 3069  entered on a bond executed by the bail bond agent or the bail
 3070  bond agency is a named party on the judgment, which has remained
 3071  unpaid for 35 days, unless the full amount of the judgment is
 3072  deposited with the clerk in accordance with s. 903.27(5).
 3073         (n) Make a statement or representation to a court, unless
 3074  such statement or representation is under oath. Such statement
 3075  or representation may not be false, misleading, or deceptive.
 3076         (o) Attempt to collect, through threat or coercion, amounts
 3077  due for the payment of any indebtedness related to the issuance
 3078  of a bail bond in violation of s. 559.72.
 3079         (p) Conduct bail bond business with any person, other than
 3080  the defendant, on the grounds of the jail or courthouse for the
 3081  purpose of executing a bond.
 3082         (2) The following persons or classes may shall not be bail
 3083  bond agents, temporary bail bond agents, or employees of a bail
 3084  bond agent or a bail bond agency business and may shall not
 3085  directly or indirectly receive any benefits from the execution
 3086  of any bail bond:
 3087         (a) Jailers or persons employed in any jail.
 3088         (b) Police officers or employees of any police department
 3089  or law enforcement agency.
 3090         (c) Committing trial court judges, employees of a court, or
 3091  employees of the clerk of any court.
 3092         (d) Sheriffs and deputy sheriffs or employees of any
 3093  sheriff’s department.
 3094         (e) Attorneys.
 3095         (f) Persons having the power to arrest or persons who have
 3096  authority over or control of federal, state, county, or
 3097  municipal prisoners.
 3098         (8)
 3099         (c) Any law enforcement agency, state attorney’s office,
 3100  court clerk, or insurer that is aware that a bail bond agent or
 3101  temporary bail bond agent has been convicted of or who has
 3102  pleaded guilty or no contest to a crime as described in
 3103  paragraph (a) shall notify the department of this fact.
 3104         (d) Upon the filing of an information or indictment against
 3105  a bail bond agent or temporary bail bond agent, the state
 3106  attorney or clerk of the circuit court shall immediately furnish
 3107  the department a certified copy of the information or
 3108  indictment.
 3109         Section 67. Subsection (1) of section 648.441, Florida
 3110  Statutes, is amended to read:
 3111         648.441 Furnishing supplies to unlicensed bail bond agent
 3112  prohibited; civil liability and penalty.—
 3113         (1) An insurer, managing general agent, bail bond agent, or
 3114  temporary bail bond agency agent appointed under this chapter
 3115  may not furnish to any person any blank forms, applications,
 3116  stationery, business card, or other supplies to be used in
 3117  soliciting, negotiating, or effecting bail bonds until such
 3118  person has received from the department a license to act as a
 3119  bail bond agent and is appointed by the insurer. This section
 3120  does not prohibit an unlicensed employee, under the direct
 3121  supervision and control of a licensed and appointed bail bond
 3122  agent, from possessing or executing in the bail bond agency, any
 3123  forms, except for powers of attorney, bond forms, and collateral
 3124  receipts, while acting within the scope of his or her
 3125  employment.
 3126         Section 68. Subsection (3) of section 648.46, Florida
 3127  Statutes, is amended to read:
 3128         648.46 Procedure for disciplinary action against
 3129  licensees.—
 3130         (3) The complaint and all information obtained pursuant to
 3131  the investigation of the department are confidential and exempt
 3132  from the provisions of s. 119.07(1) until such investigation is
 3133  completed or ceases to be active. For the purpose of this
 3134  section, an investigation is considered “active” while the
 3135  investigation is being conducted by the department with a
 3136  reasonable, good faith belief that it may lead to the filing of
 3137  administrative, civil, or criminal proceedings. An investigation
 3138  does not cease to be active if the department is proceeding with
 3139  reasonable dispatch and there is good faith belief that action
 3140  may be initiated by the department or other administrative or
 3141  law enforcement agency. This subsection does not prevent the
 3142  department or office from disclosing the complaint or such
 3143  information as it deems necessary to conduct the investigation,
 3144  to update the complainant as to the status and outcome of the
 3145  complaint, or to share such information with any law enforcement
 3146  agency or other regulatory body.
 3147         Section 69. Section 648.50, Florida Statutes, is amended to
 3148  read:
 3149         648.50 Effect of suspension, revocation upon associated
 3150  licenses and licensees.—
 3151         (1) Upon the suspension, revocation, or refusal to renew or
 3152  continue any license or appointment or the eligibility to hold a
 3153  license or appointment of a bail bond agent or temporary bail
 3154  bond agency agent, the department shall at the same time
 3155  likewise suspend or revoke all other licenses or appointments
 3156  and the eligibility to hold any other such licenses or
 3157  appointments which may be held by the licensee under the Florida
 3158  Insurance Code.
 3159         (2) In case of the suspension or revocation of the license
 3160  or appointment, or the eligibility to hold a license or
 3161  appointment, of any bail bond agent, the license, appointment,
 3162  or eligibility of any and all bail bond agents who are members
 3163  of a bail bond agency, whether incorporated or unincorporated,
 3164  and any and all temporary bail bond agents employed by such bail
 3165  bond agency, who knowingly are parties to the act which formed
 3166  the ground for the suspension or revocation may likewise be
 3167  suspended or revoked.
 3168         (3) A No person whose license as a bail bond agent or
 3169  temporary bail bond agent has been revoked or suspended may not
 3170  shall be employed by any bail bond agent, have any ownership
 3171  interest in any business involving bail bonds, or have any
 3172  financial interest of any type in any bail bond business during
 3173  the period of revocation or suspension.
 3174         Section 70. Subsections (4) and (6) of section 717.135,
 3175  Florida Statutes, are amended to read:
 3176         717.135 Recovery agreements and purchase agreements for
 3177  claims filed by a claimant’s representative; fees and costs.—
 3178         (4) A claimant’s representative must use the Unclaimed
 3179  Property Recovery Agreement or the Unclaimed Property Purchase
 3180  Agreement as the exclusive means of entering into an agreement
 3181  or a contract engaging with a claimant or seller to file a claim
 3182  with the department.
 3183         (6) A claimant’s representative may not use or distribute
 3184  any other agreement of any type, conveyed by any method, form,
 3185  or other media with respect to the claimant or seller which
 3186  relates, directly or indirectly, to unclaimed property accounts
 3187  held by the department or the Chief Financial Officer other than
 3188  the agreements authorized by this section. Any engagement,
 3189  authorization, recovery, or fee agreement that is not authorized
 3190  by this section is void. A claimant’s representative is subject
 3191  to administrative and civil enforcement under s. 717.1322 if he
 3192  or she uses an agreement that is not authorized by this section.
 3193  This subsection does not prohibit lawful nonagreement,
 3194  noncontractual, or advertising communications between or among
 3195  the parties.
 3196         Section 71. Paragraph (a) of subsection (4) of section
 3197  843.021, Florida Statutes, is amended to read:
 3198         843.021 Unlawful possession of a concealed handcuff key.—
 3199         (4)(a) It is a defense to a charge of violating this
 3200  section that the person in custody and in possession of a
 3201  concealed handcuff key is:
 3202         1. A federal, state, or local law enforcement officer,
 3203  including a reserve or auxiliary officer, a licensed security
 3204  officer, or a private investigator as defined in s. 493.6101; or
 3205         2. A professional bail bond agent, temporary bail bond
 3206  agent, runner, or limited surety agent as defined in s. 648.25.
 3207         Section 72. Subsection (4) of section 631.152, Florida
 3208  Statutes, is amended to read:
 3209         631.152 Conduct of delinquency proceeding; foreign
 3210  insurers.—
 3211         (4) Section 631.141(10)(b) 631.141(9)(b) applies to
 3212  ancillary delinquency proceedings opened for the purpose of
 3213  obtaining records necessary to adjudicate the covered claims of
 3214  Florida policyholders.
 3215         Section 73. Paragraph (b) of subsection (3) of section
 3216  631.398, Florida Statutes, is amended to read:
 3217         631.398 Prevention of insolvencies.—To aid in the detection
 3218  and prevention of insurer insolvencies or impairments:
 3219         (3)
 3220         (b) For an insolvency involving a domestic property
 3221  insurer, the department shall:
 3222         1. Begin an analysis of the history and causes of the
 3223  insolvency once the department is appointed by the court as
 3224  receiver.
 3225         2. Submit an initial report analyzing the history and
 3226  causes of the insolvency to the Governor, the President of the
 3227  Senate, the Speaker of the House of Representatives, and the
 3228  office. The initial report must be submitted no later than 4
 3229  months after the department is appointed as receiver. The
 3230  initial report shall be updated at least annually until the
 3231  submission of the final report. The report may not be used as
 3232  evidence in any proceeding brought by the department or others
 3233  to recover assets on behalf of the receivership estate as part
 3234  of its duties under s. 631.141(9) s. 631.141(8). The submission
 3235  of a report under this subparagraph shall not be considered a
 3236  waiver of any evidentiary privilege the department may assert
 3237  under state or federal law.
 3238         3. Provide a special report to the Governor, the President
 3239  of the Senate, the Speaker of the House of Representatives, and
 3240  the office, within 10 days upon identifying any condition or
 3241  practice that may lead to insolvency in the property insurance
 3242  marketplace.
 3243         4. Submit a final report analyzing the history and causes
 3244  of the insolvency and the review of the Office of Insurance
 3245  Regulation’s regulatory oversight of the insurer to the
 3246  Governor, the President of the Senate, the Speaker of the House
 3247  of Representatives, and the office within 30 days of the
 3248  conclusion of the insolvency proceeding.
 3249         5. Review the Office of Insurance Regulation’s regulatory
 3250  oversight of the insurer.
 3251         Section 74. Subsection (2) of section 903.09, Florida
 3252  Statutes, is amended to read:
 3253         903.09 Justification of sureties.—
 3254         (2) A bond agent, as defined in s. 648.25 s. 648.25(2),
 3255  shall justify her or his suretyship by attaching a copy of the
 3256  power of attorney issued by the company to the bond or by
 3257  attaching to the bond United States currency, a United States
 3258  postal money order, or a cashier’s check in the amount of the
 3259  bond; but the United States currency, United States postal money
 3260  order, or cashier’s check cannot be used to secure more than one
 3261  bond. Nothing herein shall prohibit two or more qualified
 3262  sureties from each posting any portion of a bond amount, and
 3263  being liable for only that amount, so long as the total posted
 3264  by all cosureties is equal to the amount of bond required.
 3265         Section 75. (1)The following rules are ratified for the
 3266  sole and exclusive purpose of satisfying any condition on the
 3267  effectiveness imposed under s. 120.541(3), Florida Statutes:
 3268  Rule 69L-7.020, Florida Administrative Code, titled “Florida
 3269  Workers’ Compensation Health Care Provider Reimbursement Manual”
 3270  as filed for adoption with the Department of State pursuant to
 3271  the certification package dated October 22, 2021; Rule 69L
 3272  7.730, Florida Administrative Code, titled “Health Care Provider
 3273  Medical Billing and Reporting Responsibilities” as filed for
 3274  adoption with the Department of State pursuant to the
 3275  certification package dated April 6, 2023; and Rule 7.740,
 3276  Florida Administrative Code, titled “Insurer Authorization and
 3277  Medical Bill Review Responsibilities” as filed for adoption with
 3278  the Department of State pursuant to the certification package
 3279  dated April 6, 2023.
 3280         (2)This section serves no other purpose and may not be
 3281  codified in the Florida Statutes. After this section becomes
 3282  law, its enactment and effective dates shall be noted in the
 3283  Florida Administrative Code, the Florida Administrative
 3284  Register, or both, as appropriate. This section does not alter
 3285  rulemaking additions delegated by prior law, does not constitute
 3286  legislative preemption of or exception to any provision of law
 3287  governing adoption or enforcement of the rule cited, and is
 3288  intended to preserve the status of any cited rule as a rule
 3289  under chapter 120, Florida Statutes. This section does not cure
 3290  any rulemaking defect or preempt any challenge based on a lack
 3291  of authority or a violation of the legal requirements governing
 3292  the adoption of any rule cited.
 3293         (3)This section takes effect July 1, 2023.
 3294         Section 76. Except as otherwise expressly provided in this
 3295  act, this act shall take effect upon becoming a law.