House Bill hb0681
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Florida House of Representatives - 2001 HB 681
By Representatives Waters, Flanagan and Brummer
1 A bill to be entitled
2 An act relating to governmental reorganization;
3 amending s. 20.04, F.S.; providing an exception
4 to departmental structure requirements;
5 deleting reference to the Department of Banking
6 and Finance and substituting therefor the
7 Department of Insurance and Financial Services;
8 creating s. 20.121, F.S.; creating the Office
9 of Chief Financial Officer; providing duties;
10 creating s. 20.131, F.S.; creating the
11 Department of Insurance and Financial Services;
12 providing for an executive director; providing
13 for departmental structure; creating the
14 Offices of Commissioner of Insurance,
15 Commissioner of Financial Institutions, and
16 Commissioner of Securities; providing for
17 appointment and specifying qualifications for
18 each commissioner; providing jurisdiction of
19 the commissioners' offices; providing for
20 exercise of executive authority; transferring
21 certain powers, duties, functions, rules,
22 records, personnel, property, and unexpended
23 balances of appropriations, allocations, and
24 other funds to the Office of Chief Financial
25 Officer and the Department of Insurance and
26 Financial Services; specifying that
27 administrative rules of the Department of
28 Banking and Finance and the Department of
29 Insurance become administrative rules of the
30 Department of Insurance and Financial Services;
31 specifying that such rules become
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1 administrative rules of the Office of Chief
2 Financial Officer under certain circumstances;
3 providing for preservation of validity of
4 judicial or administrative actions involving
5 such departments; providing for substitution of
6 certain parties in interest in such actions;
7 creating the Office of Transition Management;
8 specifying powers and duties thereof; providing
9 for appropriations; requiring reports to the
10 Governor and the Legislature; directing the
11 Division of Statutory Revision to prepare
12 proposed substantive legislation by a certain
13 time for certain purposes; repealing ss. 20.12
14 and 20.13, F.S., relating to the Department of
15 Banking and Finance and the Department of
16 Insurance, respectively; providing effective
17 dates.
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19 Be It Enacted by the Legislature of the State of Florida:
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21 Section 1. Effective January 7, 2003, subsection (3)
22 of section 20.04, Florida Statutes, is amended to read:
23 20.04 Structure of executive branch.--The executive
24 branch of state government is structured as follows:
25 (3) For their internal structure, all departments,
26 except for the Department of Insurance and Financial Services
27 Banking and Finance, the Department of Children and Family
28 Services, the Department of Corrections, the Department of
29 Management Services, the Department of Revenue, and the
30 Department of Transportation, must adhere to the following
31 standard terms:
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1 (a) The principal unit of the department is the
2 "division." Each division is headed by a "director."
3 (b) The principal unit of the division is the
4 "bureau." Each bureau is headed by a "chief."
5 (c) The principal unit of the bureau is the "section."
6 Each section is headed by an "administrator."
7 (d) If further subdivision is necessary, sections may
8 be divided into "subsections," which are headed by
9 "supervisors."
10 Section 2. Section 20.121, Florida Statutes, is
11 created to read:
12 20.121 Office of Chief Financial Officer.--Effective
13 January 7, 2003, there is created the Office of Chief
14 Financial Officer. The head of the office is the Chief
15 Financial Officer. Pursuant to s. 4, Art. IV of the State
16 Constitution, the duties of the Chief Financial Officer are to
17 serve as the chief fiscal officer of the state, to settle and
18 approve accounts against the state, and to keep all state
19 funds and securities. The Chief Financial Officer is also the
20 administrator of the Government Employees Deferred
21 Compensation Plan and is responsible for carrying out laws
22 relating to unclaimed property and security for public
23 deposits.
24 Section 3. Section 20.131, Florida Statutes, is
25 created to read:
26 20.131 Department of Insurance and Financial
27 Services.--Effective January 7, 2003, there is created the
28 Department of Insurance and Financial Services. The Governor
29 and Cabinet shall serve as head of the department.
30 (1) EXECUTIVE DIRECTOR.--The executive director of the
31 Department of Insurance and Financial Services is the chief
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1 administrator of the department and shall be appointed by the
2 Governor and Cabinet, subject to confirmation by the Senate.
3 The executive director serves at the pleasure of the Governor
4 and Cabinet. The functions of the executive director are
5 limited to personnel, administrative, and budgetary matters,
6 including administrative coordination of issues that affect
7 areas under the offices of more than one commissioner and
8 coordination of legislative activities.
9 (2) DEPARTMENTAL STRUCTURE.--The Governor and Cabinet,
10 as head of the Department of Insurance and Financial Services,
11 shall adopt rules establishing the organizational structure of
12 the department. It is the intent of the Legislature to provide
13 the Governor and Cabinet with the flexibility to organize the
14 department in any manner they determine appropriate to promote
15 both efficiency and accountability, subject to the following
16 requirements:
17 (a) The major structural unit of the department is the
18 "office." Each office is headed by a "commissioner." The
19 offices are established as follows:
20 1. Office of the Commissioner of Insurance.--The
21 Office of the Commissioner of Insurance is responsible for all
22 activities relating to the regulation of insurance, insurance
23 fraud, and state government risk management. The head of the
24 office is the Commissioner of Insurance, who is also the State
25 Fire Marshal.
26 2. Office of the Commissioner of Financial
27 Institutions.--The Office of the Commissioner of Financial
28 Institutions is responsible for all activities relating to the
29 regulation of banks, credit unions, other financial
30 institutions, and finance companies. The head of the office is
31 the Commissioner of Financial Institutions. The office
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1 includes the Division of Financial Investigations, which is
2 headed by a director who is appointed by and serves at the
3 pleasure of the commissioner.
4 3. Office of the Commissioner of Securities.--The
5 Office of the Commissioner of Securities is responsible for
6 all activities relating to the regulation of securities. The
7 head of the office is the Commissioner of Securities.
8 (b)1. For purposes of chapter 120, each commissioner
9 is the agency head for all units within that commissioner's
10 jurisdiction, as provided in paragraph (a) and rules adopted
11 pursuant to this subsection, except as provided in
12 subparagraph 2. Each commissioner shall be responsible for,
13 and take final agency action related to, the implementation
14 and enforcement of all statutes and the adoption,
15 implementation, and enforcement of all rules within the
16 regulatory authority delegated to that commissioner's office.
17 2. A commissioner, upon adopting a rule under chapter
18 120, shall provide a copy of the rule to the Governor and
19 Cabinet. Within the first 30 days after adoption of the rule,
20 the Governor and Cabinet may, by majority vote, decide to
21 review the rule, in which event operation of the rule is
22 temporarily stayed. The Governor and Cabinet may decide, by
23 majority vote, either to allow the rule to take effect as
24 adopted or to disapprove the rule. If the Governor and Cabinet
25 fail to take final action on the rule within 30 days after
26 voting to review the rule, the rule shall take effect as
27 adopted. This subparagraph does not apply to emergency rules.
28 (3) APPOINTMENT AND QUALIFICATIONS OF
29 COMMISSIONERS.--Each commissioner shall be appointed by, and
30 shall serve at the pleasure of, the executive director.
31 Appointment of a commissioner is subject to the approval of
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1 the Governor and Cabinet. The minimum qualifications of the
2 commissioners are as follows:
3 (a) Prior to appointment as commissioner, the
4 Commissioner of Insurance must have had, within the previous
5 10 years, at least 5 years of experience as a senior officer
6 of an insurer as defined in s. 624.03, as a senior officer of
7 an insurance agency as defined in s. 626.094, or as a senior
8 examiner or other senior employee of a state or federal agency
9 having regulatory responsibility over insurers or insurance
10 agencies.
11 (b) Prior to appointment as commissioner, the
12 Commissioner of Financial Institutions must have had, within
13 the previous 10 years, at least 5 years of experience as a
14 senior officer of a financial institution as defined in s.
15 655.005(1) or of a finance company, or as a senior examiner or
16 other senior employee of a state or federal agency having
17 regulatory responsibility over financial institutions or
18 finance companies.
19 (c) Prior to appointment as commissioner, the
20 Commissioner of Securities must have had, within the previous
21 10 years, at least 5 years of experience as a senior officer
22 of a securities company or as a senior examiner or other
23 senior employee of a state or federal agency having regulatory
24 responsibility over securities.
25 Section 4. Transfers.--
26 (1) TRANSFERS TO THE OFFICE OF CHIEF FINANCIAL
27 OFFICER.--
28 (a) All powers, duties, functions, rules, records,
29 personnel, property, and unexpended balances of
30 appropriations, allocations, and other funds of the Office of
31 the Comptroller;
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1 (b) All powers, duties, functions, rules, records,
2 personnel, property, and unexpended balances of
3 appropriations, allocations, and other funds of the Department
4 of Banking and Finance that relate to the constitutional
5 functions of the Comptroller or to duties relating to
6 unclaimed property;
7 (c) All powers, duties, functions, rules, records,
8 personnel, property, and unexpended balances of
9 appropriations, allocations, and other funds of the Office of
10 the Treasurer, including the Government Employees Deferred
11 Compensation Plan and duties relating to security for public
12 deposits; and
13 (d) All powers, duties, functions, rules, records,
14 personnel, property, and unexpended balances of
15 appropriations, allocations, and other funds of the Department
16 of Insurance that relate to the constitutional functions of
17 the Treasurer
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19 are transferred by a type two transfer, as defined in s.
20 20.06(2), Florida Statutes, to the Office of Chief Financial
21 Officer.
22 (2) TRANSFERS TO THE DEPARTMENT OF INSURANCE AND
23 FINANCIAL SERVICES.--
24 (a) All powers, duties, functions, rules, records,
25 personnel, property, and unexpended balances of
26 appropriations, allocations, and other funds of the Department
27 of Banking and Finance not otherwise transferred by this act;
28 and
29 (b) All powers, duties, functions, rules, records,
30 personnel, property, and unexpended balances of
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1 appropriations, allocations, and other funds of the Department
2 of Insurance not otherwise transferred by this act
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4 are transferred by a type two transfer, as defined in s.
5 20.06(2), Florida Statutes, to the Department of Insurance and
6 Financial Services.
7 (3) This section shall take effect January 7, 2003.
8 Section 5. Effective January 7, 2003, the
9 administrative rules of the Department of Banking and Finance
10 and of the Department of Insurance that were in effect
11 immediately prior to January 7, 2003, shall become rules of
12 the Department of Insurance and Financial Services and shall
13 remain in effect until specifically changed in the manner
14 provided by law. However, any such rules that relate to the
15 constitutional functions of the Comptroller or the Treasurer
16 shall instead become rules of the Office of Chief Financial
17 Officer and shall remain in effect until amended or repealed
18 in the manner provided by law.
19 Section 6. This act shall not affect the validity of
20 any judicial or administrative action involving the Department
21 of Banking and Finance or the Department of Insurance pending
22 on January 7, 2003, and the Department of Insurance and
23 Financial Services shall be substituted as a party in interest
24 in any such action. However, if the action involves the
25 constitutional functions of the Comptroller or Treasurer, the
26 Office of Chief Financial Officer shall instead be substituted
27 as a party in interest.
28 Section 7. Transitional provisions.--
29 (1) The office of executive director of the Department
30 of Insurance and Financial Services is created effective
31 August 1, 2001. The Governor and Cabinet shall, no later than
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1 August 1, 2001, appoint a person pursuant to s. 20.131(1),
2 Florida Statutes, to serve as the executive director of the
3 department. Until the creation of the department takes effect
4 on January 7, 2003, the executive director shall serve as the
5 head of the Office of Transition Management under subsection
6 (2).
7 (2)(a) There is created the Office of Transition
8 Management. The office shall function independently but shall
9 for administrative purposes be treated as an office of the
10 Executive Office of the Governor.
11 (b) The head of the office is the executive director
12 appointed pursuant to subsection (1).
13 (c) The office shall manage the transition to the new
14 Department of Insurance and Financial Services and the new
15 Office of Chief Financial Officer. The management duties of
16 the office include, but are not limited to:
17 1. Assuring that the offices of Commissioner of
18 Insurance, Commissioner of Financial Institutions,
19 Commissioner of Securities, and all senior management
20 positions are occupied by qualified persons no later than
21 January 7, 2003.
22 2. Providing recommendations to the Legislature no
23 later than January 1, 2002, as to statutory changes that are
24 necessary or desirable to implement a successful transition.
25 3. Providing a report that specifies, on a
26 position-by-position basis, those positions that are subject
27 to transfer to the Office of Chief Financial Officer under
28 this act. Except as revised by the General Appropriations Act
29 or other legislation, the report under this subparagraph shall
30 be used to determine which positions within the Department of
31 Banking and Finance or the Department of Insurance will become
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1 positions within the Office of Chief Financial Officer, and
2 which positions will become positions within the Department of
3 Insurance and Financial Services, on January 7, 2003. The
4 office shall provide the report to the Governor, the President
5 of the Senate, the Speaker of the House of Representatives,
6 and the chair of each fiscal committee or council of the
7 Senate and the House of Representatives.
8 4. Taking action in advance on personnel, purchasing,
9 and administrative matters.
10 5. Submitting to the Governor and Cabinet a proposed
11 organizational plan for the Department of Insurance and
12 Financial Services and revisions thereto, which plans and
13 revisions the Governor and Cabinet may adopt by rule.
14 6. Providing status reports and other information as
15 requested by members or staff of the Legislature.
16 (d) The Department of Banking and Finance, the
17 Department of Insurance, the Office of the Comptroller, and
18 the Office of the Treasurer shall fully cooperate with the
19 Office of Transition Management and shall promptly provide the
20 office with any requested information.
21 (e)1. Funding for the Office of Transition Management
22 shall be as provided in the General Appropriations Act.
23 2. As provided in s. 216.351, Florida Statutes,
24 notwithstanding any provision of law to the contrary, the
25 Legislature may appropriate equal amounts from the Financial
26 Institutions Trust Fund of the Department of Banking and
27 Finance and the Insurance Commissioner's Regulatory Trust Fund
28 of the Department of Insurance to fund the activities of the
29 Office of Transition Management.
30 Section 8. No later than January 31, 2002, the
31 Division of Statutory Revision of the Office of Legislative
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1 Services, in consultation with the appropriate substantive
2 committee staffs of the Senate and the House of
3 Representatives, shall submit to the President of the Senate
4 and the Speaker of the House of Representatives proposed
5 substantive legislation to conform the Florida Statutes to the
6 provisions of this act. The proposed legislation shall include
7 provisions:
8 (1) Changing the term "Comptroller" or "Treasurer" to
9 "Chief Financial Officer" with respect to functions of the
10 Chief Financial Officer.
11 (2) Changing references to the Department of Banking
12 and Finance and the Department of Insurance to the Department
13 of Insurance and Financial Services, except with respect to
14 functions of the Chief Financial Officer.
15 (3) Otherwise conforming the Florida Statutes to the
16 abolition of the offices of Comptroller and Treasurer, the
17 creation of the Office of Chief Financial Officer, the
18 abolition of the Department of Banking and Finance and the
19 Department of Insurance, the creation of the Department of
20 Insurance and Financial Services, and the creation of the
21 offices of Commissioner of Insurance, Commissioner of
22 Financial Institutions, and Commissioner of Securities within
23 the Department of Insurance and Financial Services.
24 Section 9. Effective January 7, 2003, sections 20.12
25 and 20.13, Florida Statutes, are repealed.
26 Section 10. Except as otherwise provided herein, this
27 act shall take effect upon becoming a law.
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2 HOUSE SUMMARY
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Creates the Department of Insurance and Financial
4 Services and repeals the present Department of Banking
and Finance and the Department of Insurance. Provides a
5 phase-in period until January 7, 2003. See bill for
details.
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