Senate Bill sb0026E

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    Florida Senate - 2002                                  SB 26-E

    By Senator Geller





    29-2387-02

  1                      A bill to be entitled

  2         An act relating to governmental reorganization;

  3         creating the Department of Banking and

  4         Insurance; repealing ss. 20.12, 20.13, F.S.;

  5         abolishing the Department of Banking and

  6         Finance and the Department of Insurance;

  7         amending ss. 17.011, 17.02, 17.03, 17.031,

  8         17.04, 17.0401, 17.041, 17.0415, 17.05, 17.06,

  9         17.075, 17.076, 17.08, 17.09, 17.10, 17.11,

10         17.12, 17.13, 17.14, 17.16, 17.17, 17.20,

11         17.21, 17.22, 17.25, 17.26, 17.27, 17.28,

12         17.29, 17.30, 17.32, 17.325, 17.41, 17.43,

13         F.S.; conforming provisions; transferring,

14         renumbering, and amending ss. 18.01, 18.02,

15         18.021, 18.06, 18.07, 18.091, 18.10, 18.101,

16         18.103, 18.104, 18.125, 18.15, 18.17, 18.20,

17         18.23, 18.24, F.S.; conforming provisions;

18         repealing s. 18.03, F.S., relating to residence

19         and office of the Treasurer; repealing s.

20         18.05, F.S., relating to annual report to

21         Governor; repealing s. 18.08, F.S., relating to

22         warrants turned over to the Comptroller;

23         repealing s. 18.09, F.S., relating to annual

24         report to the Legislature; repealing s. 18.22,

25         F.S., relating to rulemaking authority of the

26         Department of Banking and Finance; providing

27         for the construction of the act in pari materia

28         with Laws enacted at the 2002 Regular Session;

29         providing an effective date.

30  

31  Be It Enacted by the Legislature of the State of Florida:

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 1         Section 1.  Department of Banking and Insurance.--There

 2  is created a Department of Banking and Insurance.

 3         (1)  The head of the Department of Banking and

 4  Insurance is the Chief Financial Officer.

 5         (2)  The following divisions of the Department of

 6  Banking and Insurance are established:

 7         (a)  Division of Insurer Services.

 8         (b)  Division of Insurance Consumer Services.

 9         (c)  Division of Agents and Agencies Services.

10         (d)  Division of Rehabilitation and Liquidation.

11         (e)  Division of Risk Management.

12         (f)  Division of Financial Investigation.

13         (g)  Division of Insurance Fraud.

14         (h)  Division of Administration.

15         (i)  Division of Treasury.

16         (j)  Division of Legal Services.

17         (3)(a)  The department shall have an assistant chief

18  financial officer.

19         (b)  The Division of Insurer Services shall have at

20  least two deputy directors.  All other divisions shall have a

21  director and may have an assistant director.  The department

22  may change the name of any division, by rule, if the name

23  indicates the responsibilities of the division.

24         (4)  The Division of Insurance Fraud shall enforce the

25  provisions of section 626.989, Florida Statutes.  The division

26  shall establish a Bureau of Workers' Compensation Insurance

27  Fraud for the sole purpose of enforcing those provisions of

28  chapter 440, Florida Statutes, which, if violated, would

29  result in the commission of fraudulent insurance acts.

30         (5)  A Bureau of Financial and Support Services is

31  created within the Division of Administration.

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 1         (6)(a)  The Division of Treasury, in addition to other

 2  matters that may be assigned to or located within the

 3  division, shall administer the Government Employees Deferred

 4  Compensation Plan established under section 112.215, Florida

 5  Statutes, for state employees.

 6         (b)  To carry out the purposes of paragraph (a), a

 7  Section of Government Employee Deferred Compensation is

 8  created within the Division of Treasury.

 9         (7)  There is created as a subunit within the

10  department the Office of Financial Investigation. The office

11  shall:

12         (a)  Function as a criminal justice agency within the

13  meaning of section 943.045(10)(d), Florida Statutes; and

14         (b)  Have a separate budget.

15         Section 2.  Section 17.011, Florida Statutes, is

16  amended to read:

17         17.011  Chief Financial Officer Assistant

18  comptroller.--The Chief Financial Officer Comptroller of the

19  state may appoint an assistant Chief Financial Officer

20  comptroller to hold office at during the pleasure of the Chief

21  Financial Officer Comptroller.

22         Section 3.  Section 17.02, Florida Statutes, is amended

23  to read:

24         17.02  Place of residence and office.--The Chief

25  Financial Officer Comptroller shall reside at the seat of

26  government of this state, and shall hold office in a room in

27  the Capitol.

28         Section 4.  Section 17.03, Florida Statutes, is amended

29  to read:

30         17.03  Duty to audit claims against the state.--

31  

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 1         (1)  The Chief Financial Officer Comptroller of this

 2  state, using generally accepted auditing procedures for

 3  testing or sampling, shall examine, audit, and settle all

 4  accounts, claims, and demands, whatsoever, against the state,

 5  arising under any law or resolution of the Legislature, and

 6  shall issue a warrant to the Treasurer directing the Treasurer

 7  to pay out of the State Treasury such amount as is shall be

 8  allowed by law the Comptroller thereon.

 9         (2)  The Chief Financial Officer Comptroller may

10  establish dollar thresholds applicable to each invoice amount

11  and other criteria for testing or sampling invoices on a

12  preaudit and postaudit basis.  The Chief Financial Officer

13  Comptroller may revise such thresholds and other criteria for

14  an agency or the unit of any agency as he or she deems

15  appropriate.

16         (3)  The Chief Financial Officer Comptroller may adopt

17  and disseminate to the agencies procedural and documentation

18  standards for payment requests and may provide training and

19  technical assistance to the agencies for these standards.

20         (4)  The Chief Financial Officer Comptroller shall have

21  the legal duty of delivering all state warrants and shall be

22  charged with the official responsibility of the protection and

23  security of the state warrants while in his or her custody.

24  The Chief Financial Officer Comptroller may delegate this

25  authority to other state agencies or officers.

26         Section 5.  Section 17.031, Florida Statutes, is

27  amended to read:

28         17.031  Security of Chief Financial Officer's

29  Comptroller's office.--The Chief Financial Officer Comptroller

30  is authorized to engage the full-time services of two law

31  enforcement officers, with power of arrest, to prevent all

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 1  acts of a criminal nature directed at the property in the

 2  custody or control of the Chief Financial Officer Comptroller.

 3  While so assigned, these said officers shall be under the

 4  direction and supervision of the Chief Financial Officer

 5  Comptroller, and their salaries and expenses shall be paid

 6  from the general fund of the office of Chief Financial Officer

 7  Comptroller.

 8         Section 6.  Section 17.04, Florida Statutes, is amended

 9  to read:

10         17.04  To audit and adjust accounts of officers and

11  those indebted to the state.--The Department of Banking and

12  Insurance Finance of this state, using generally accepted

13  auditing procedures for testing or sampling, shall examine,

14  audit, adjust, and settle the accounts of all the officers of

15  this state, and any other person in anywise entrusted with, or

16  who may have received any property, funds, or moneys of this

17  state, or who may be in anywise indebted or accountable to

18  this state for any property, funds, or moneys, and require

19  such officers officer or persons to render full accounts

20  thereof, and to yield up such property or funds according to

21  law, or pay such moneys into the treasury of this state, or to

22  such officer or agent of the state as is may be appointed to

23  receive the same, and on failure so to do, to cause to be

24  instituted and prosecuted proceedings, criminal or civil, at

25  law or in equity, against such persons, according to law.  The

26  Division of Financial Investigations may conduct

27  investigations within or outside of this state as it deems

28  necessary to aid in the enforcement of this section.  If

29  during an investigation the division has reason to believe

30  that any criminal statute of this state has or may have been

31  violated, the division shall refer any records tending to show

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 1  such violation to state or federal law enforcement or

 2  prosecutorial agencies and shall provide investigative

 3  assistance to those agencies as required.

 4         Section 7.  Section 17.0401, Florida Statutes, is

 5  amended to read:

 6         17.0401  Confidentiality of information relating to

 7  financial investigations.--Except as otherwise provided by

 8  this section, information relative to an investigation

 9  conducted by the Division of Financial Investigations pursuant

10  to s. 17.04, including any consumer complaint, is confidential

11  and exempt from the provisions of s. 119.07(1) and s. 24(a),

12  Art. I of the State Constitution until the investigation is

13  completed or ceases to be active.  Any information relating to

14  an investigation conducted by the division pursuant to s.

15  17.04 shall remain confidential and exempt from the provisions

16  of s. 119.07(1) and s. 24(a), Art. I of the State Constitution

17  after the division's investigation is completed or ceases to

18  be active if the division submits the information to any law

19  enforcement or prosecutorial agency for further investigation.

20  Such information shall remain confidential and exempt from the

21  provisions of s. 119.07(1) and s. 24(a), Art. I of the State

22  Constitution until that agency's investigation is completed or

23  ceases to be active.  For purposes of this section, an

24  investigation shall be considered "active" so long as the

25  division or any law enforcement or prosecutorial agency is

26  proceeding with reasonable dispatch and has a reasonable good

27  faith belief that the investigation may lead to the filing of

28  an administrative, civil, or criminal proceeding.  This

29  section shall not be construed to prohibit disclosure of

30  information that which is required by law to be filed with the

31  Department of Banking and Insurance Finance and that which,

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 1  but for the investigation, would otherwise be subject to

 2  public disclosure. Nothing in this section shall be construed

 3  to prohibit the division from providing information to any law

 4  enforcement or prosecutorial agency.  Any law enforcement or

 5  prosecutorial agency receiving confidential information from

 6  the division in connection with its official duties shall

 7  maintain the confidentiality of the information as provided

 8  for in this section.

 9         Section 8.  Section 17.041, Florida Statutes, is

10  amended to read:

11         17.041  County and district accounts and claims.--

12         (1)  It shall be the duty of the Department of Banking

13  and Insurance Finance of this state to adjust and settle, or

14  cause to be adjusted and settled, all accounts and claims

15  heretofore or hereafter reported to it by the Auditor General,

16  the appropriate county or district official, or any person

17  against all county and district officers and employees, and

18  against all other persons entrusted with, or who may have

19  received, any property, funds, or moneys of a county or

20  district or who may be in anywise indebted to or accountable

21  to a county or district for any property, funds, moneys, or

22  other thing of value, and to require such officer, employee,

23  or person to render full accounts thereof and to yield up such

24  property, funds, moneys, or other thing of value according to

25  law to the officer or authority entitled by law to receive the

26  same.

27         (2)  On the failure of such officer, employee, or

28  person to adjust and settle such account, or to yield up such

29  property, funds, moneys, or other thing of value, the

30  department shall direct the attorney for the board of county

31  commissioners, the district school board, or the district, as

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 1  the case may be, entitled to such account, property, funds,

 2  moneys, or other thing of value to represent such county or

 3  district in enforcing settlement, payment, or delivery of such

 4  account, property, funds, moneys, or other thing of value. The

 5  department may enforce such settlement, payment, or delivery

 6  pursuant to s. 17.20.

 7         (3)  If Should the attorney for the county or district

 8  is aforesaid be disqualified or unable to act, and no other

 9  attorney is be furnished by the county or district, or if

10  should the department otherwise considers deem it advisable,

11  such account or claim may be certified to the Department of

12  Legal Affairs by the department, to be prosecuted by the

13  Department of Legal Affairs at county or district expense, as

14  the case may be, including necessary per diem and travel

15  expense in accordance with s. 112.061, as now or hereafter

16  amended.  Such expenses, when approved by the department,

17  shall be paid forthwith by such county or district.

18         (4)  If Should it appears appear to the department that

19  any criminal statute of this state has been or may have been

20  violated by such defaulting officer, employee, or person, such

21  information, evidence, documents, and other things tending to

22  show such a violation, whether in the hands of the Chief

23  Financial Officer Comptroller, the Auditor General, the

24  county, or the district, shall be forthwith turned over to the

25  proper state attorney for inspection, study, and such action

26  as is may be deemed proper, or the same may be brought to the

27  attention of the proper grand jury.

28         (5)  No such account or claim, after it has been

29  certified to the department, may be settled for less than the

30  amount due according to law without the written consent of the

31  department, and any attempt to make settlement in violation of

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 1  this subsection is shall be deemed null and void.  A county or

 2  district board seeking desiring to make such a settlement

 3  shall incorporate the proposed settlement into a resolution,

 4  stating that the proposed settlement is contingent upon the

 5  Chief Financial Officer's Comptroller's approval, and shall

 6  submit two copies of the resolution to the department.  The

 7  department shall return one copy with the Chief Financial

 8  Officer's Comptroller's action endorsed thereon.

 9         (6)  No settlement of account of any such officer,

10  employee, or person, with the county or district, or any of

11  their officers or agents, made in an amount or manner other

12  than as authorized by law or for other than a lawful county or

13  district purpose, is shall be binding upon such county or

14  district unless and until approved by the department, or

15  unless more than 4 years shall have elapsed from the date of

16  such settlement.

17         (7)  Nothing in this section shall supersede the

18  continuing duty of the proper county and district officers to

19  require any officer, employee, or person to render full

20  accounts of and to yield up according to law to the officer or

21  authority entitled by law to receive the same, any property,

22  funds, moneys, or other thing of value as to which such

23  officer, employee, or person is in anywise indebted to or

24  accountable to such county or district.  The provisions of

25  this section provide for collections and recoveries that which

26  the proper county or district officers have failed to make,

27  and for correction of settlements made in an amount or manner

28  other than as authorized by law.

29         Section 9.  Section 17.0415, Florida Statutes, is

30  amended to read:

31  

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 1         17.0415  Transfer and assignment of claims.--In order

 2  to facilitate their collection from third parties, the Chief

 3  Financial Officer Comptroller may authorize the assignment of

 4  claims among the state, its agencies, and its subdivisions,

 5  whether arising from criminal, civil, or other judgments in

 6  state or federal court. The state, its agencies, and its

 7  subdivisions, may assign claims under such terms as are

 8  mutually acceptable to the Chief Financial Officer Comptroller

 9  and the assignee and assignor.  The assigned claim may be

10  enforced as a setoff to any claim against the state, its

11  agencies, or its subdivisions, by garnishment or in the same

12  manner as a judgment in a civil action.  Claims against the

13  state, its agencies, and its subdivisions resulting from the

14  condemnation of property protected by the provisions of s. 4,

15  Art. X of the State Constitution are not subject to setoff

16  pursuant to this section.

17         Section 10.  Section 17.05, Florida Statutes, is

18  amended to read:

19         17.05  Subpoenas; sworn statements; enforcement

20  proceedings.--

21         (1)  The Chief Financial Officer Comptroller may demand

22  and require full answers on oath from any and every person

23  that is, party or privy to any account, claim, or demand

24  against or by the state which, such as it is may be the Chief

25  Financial Officer's Comptroller's official duty to examine

26  into, and the Chief Financial Officer which answers the

27  Comptroller may require that these answers to be in writing

28  and to be sworn to before the Chief Financial Officer

29  Comptroller or the department or before any judicial officer

30  or clerk of any court of the state so as to enable the Chief

31  

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 1  Financial Officer Comptroller to determine the justice or

 2  legality of such account, claim, or demand.

 3         (2)  In exercising authority under this chapter, the

 4  Chief Financial Officer Comptroller or his or her designee

 5  may:

 6         (a)  Issue subpoenas, administer oaths, and examine

 7  witnesses.

 8         (b)  Require or permit a person to file a statement in

 9  writing, under oath or otherwise as the Chief Financial

10  Officer Comptroller or his or her designee requires, as to all

11  the facts and circumstances concerning the matter to be

12  audited, examined, or investigated.

13         (3)  Subpoenas shall be issued by the Chief Financial

14  Officer Comptroller or his or her designee under seal

15  commanding such witnesses to appear before the Chief Financial

16  Officer Comptroller or the Chief Financial Officer's

17  Comptroller's representative or the department at a specified

18  time and place and to bring books, records, and documents as

19  specified or to submit books, records, and documents for

20  inspection.  Such subpoenas may be served by an authorized

21  representative of the Chief Financial Officer Comptroller or

22  the department.

23         (4)  In the event of noncompliance with a subpoena

24  issued pursuant to this section, the Chief Financial Officer

25  Comptroller or the department may petition the circuit court

26  of the county in which the person subpoenaed resides or has

27  his or her principal place of business for an order requiring

28  the subpoenaed person to appear and testify and to produce

29  books, records, and documents as specified in the subpoena.

30  The court may grant legal, equitable, or injunctive relief,

31  including, but not limited to, issuance of a writ of ne exeat

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 1  or the restraint by injunction or appointment of a receiver of

 2  any transfer, pledge, assignment, or other disposition of such

 3  person's assets or any concealment, alteration, destruction,

 4  or other disposition of subpoenaed books, records, or

 5  documents, as the court deems appropriate, until such person

 6  has fully complied with such subpoena and the Chief Financial

 7  Officer Comptroller or the department has completed the audit,

 8  examination, or investigation.  The Chief Financial Officer

 9  Comptroller or the department is entitled to the summary

10  procedure provided in s. 51.011, and the court shall advance

11  the cause on its calendar.  Costs incurred by the Chief

12  Financial Officer Comptroller or the department to obtain an

13  order granting, in whole or in part, such petition for

14  enforcement of a subpoena shall be charged against the

15  subpoenaed person, and failure to comply with such order shall

16  be a contempt of court.

17         Section 11.  Section 17.06, Florida Statutes, is

18  amended to read:

19         17.06  Disallowed items and accounts.--The Chief

20  Financial Officer Comptroller shall erase from any original

21  account all items disallowed by him or her; and when the Chief

22  Financial Officer Comptroller shall reject the whole of any

23  account he or she shall write across the face of it the word

24  "disallowed," and the date, and file the same in the Chief

25  Financial Officer's Comptroller's office or deliver it to the

26  claimant.

27         Section 12.  Section 17.075, Florida Statutes, is

28  amended to read:

29         17.075  Form of state warrants and other payment

30  orders; rules.--

31  

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 1         (1)  The Department of Banking and Insurance Finance is

 2  authorized to establish the form or forms of state warrants

 3  that which are to be drawn by it and of other orders for

 4  payment or disbursement of moneys out of the State Treasury

 5  and to change the form thereof from time to time as the

 6  department may consider necessary or appropriate.  Such orders

 7  for payment may be in any form, but, regardless of form, each

 8  order shall be subject to the accounting and recordkeeping

 9  requirements applicable to state warrants.

10         (2)  The department shall adopt rules establishing

11  accounting and recordkeeping procedures for all payments made

12  by electronic transfer of funds or by any other means.  Such

13  procedures shall be consistent with the statutory requirements

14  applicable to payments by state warrant.

15         Section 13.  Section 17.076, Florida Statutes, is

16  amended to read:

17         17.076  Direct deposit of funds.--

18         (1)  As used in this section:

19         (a)  "Beneficiary" means any person who is drawing

20  salary or retirement benefits from the state or who is the

21  recipient of any lawful payment from state funds.

22         (b)  "Department" means the Department of Banking and

23  Insurance Finance.

24         (2)  The department shall establish a program for the

25  direct deposit of funds to the account of the beneficiary of

26  such a payment or disbursement in any financial institution

27  equipped for electronic fund transfers, which institution is

28  designated in writing by such beneficiary and has lawful

29  authority to accept such deposits. Direct deposit of funds

30  shall be by any electronic or other transfer medium approved

31  by the department for such purpose.

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 1         (3)  The department may contract with an authorized

 2  financial institution for the services necessary to operate

 3  the program.  In order to implement the provisions of this

 4  section, the Chief Financial Officer Comptroller is authorized

 5  to deposit with that financial institution the funds payable

 6  to the beneficiaries, in lump sum, by Chief Financial

 7  Officer's Comptroller's warrant to make the authorized direct

 8  deposits.

 9         (4)  The written authorization of a beneficiary shall

10  be filed with the department or its designee. Such

11  authorization shall remain in effect until withdrawn in

12  writing by the beneficiary or dishonored by the designated

13  financial institution.

14         (5)  All direct deposit records made prior to October

15  1, 1986, are exempt from the provisions of s. 119.07(1).  With

16  respect to direct deposit records made on or after October 1,

17  1986, the names of the authorized financial institutions and

18  the account numbers of the beneficiaries are confidential and

19  exempt from the provisions of s. 119.07(1).

20         (6)  The department shall implement local option direct

21  deposit of funds for local governmental entities by January 1,

22  1996.

23         (7)  To cover the department's actual costs for

24  processing the direct deposit of funds other than salary or

25  retirement benefits, the department may charge the beneficiary

26  of the direct deposit a reasonable fee. The department may

27  collect the fee by direct receipt from the beneficiary or by

28  subtracting the amount of the fee from the funds due the

29  beneficiary.  Such fees collected by the department shall be

30  deposited into the Department of Banking and Finance

31  Administrative Trust Fund.

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 1         (8)  Effective July 1, 2000, All new recipients of

 2  retirement benefits from this state shall be paid by direct

 3  deposit of funds. A retiree may request from the department an

 4  exemption from the provisions of this subsection when such

 5  retiree can demonstrate a hardship. The department may pay

 6  retirement benefits by state warrant when deemed

 7  administratively necessary.

 8         Section 14.  Section 17.08, Florida Statutes, is

 9  amended to read:

10         17.08  Accounts, etc., on which warrants drawn, to be

11  filed.--All accounts, vouchers, and evidence, upon which

12  warrants have heretofore been, or shall hereafter be, drawn

13  upon the treasury by the Chief Financial Officer Comptroller

14  shall be filed and deposited in the office of the Chief

15  Financial Officer Comptroller or the office of the Chief

16  Financial Officer's Comptroller's designee, in accordance with

17  requirements established by law the Secretary of State.

18         Section 15.  Section 17.09, Florida Statutes, is

19  amended to read:

20         17.09  Application for warrants for salaries.--All

21  public officers who are entitled to salaries in this state,

22  shall make their application for warrants in writing, stating

23  for what terms and the amount they claim, which written

24  application shall be filed by the Chief Financial Officer

25  Comptroller as vouchers for the warrants issued thereupon.

26         Section 16.  Section 17.10, Florida Statutes, is

27  amended to read:

28         17.10  Record of warrants issued.--The Chief Financial

29  Officer Comptroller shall cause to be entered in the warrant

30  register a record of the warrants issued during the previous

31  month, and shall make such entry in the record so required to

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 1  be kept as shall show the number of each warrant issued, in

 2  whose favor drawn, and the date it was issued.

 3         Section 17.  Section 17.11, Florida Statutes, is

 4  amended to read:

 5         17.11  To report disbursements made.--

 6         (1)  The Chief Financial Officer Comptroller shall make

 7  in all his or her future annual reports an exhibit stated from

 8  the record of disbursements made during the fiscal year, and

 9  the several heads of expenditures under which such

10  disbursements were made.

11         (2)  The Chief Financial Officer Comptroller shall also

12  cause to have reported from the Florida Accounting Information

13  Resource Subsystem no less than quarterly the disbursements

14  that which agencies have made to small businesses, as defined

15  in the Florida Small and Minority Business Assistance Act of

16  1985; to certified minority business enterprises in the

17  aggregate; and to certified minority business enterprises

18  broken down into categories of minority persons, as well as

19  gender and nationality subgroups. This information shall be

20  made available to the agencies, the Minority Business Advocacy

21  and Assistance Office, the Governor, the President of the

22  Senate, and the Speaker of the House of Representatives. Each

23  agency shall be responsible for the accuracy of information

24  entered into the Florida Accounting Information Resource

25  Subsystem for use in this reporting.

26         Section 18.  Section 17.12, Florida Statutes, is

27  amended to read:

28         17.12  Authorized to issue warrants to tax collector or

29  sheriff for payment.--Whenever it appears shall appear to the

30  satisfaction of the Chief Financial Officer Comptroller of

31  this state from examination of the books of his or her office

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 1  that the tax collector or the sheriff for any county in this

 2  state has paid into the State Treasury, through mistake or

 3  otherwise, a larger or greater sum than is actually due from

 4  the tax said collector or sheriff, then the Chief Financial

 5  Officer Comptroller may issue a warrant to the tax said

 6  collector or sheriff for the sum so found to be overpaid.

 7         Section 19.  Section 17.13, Florida Statutes, is

 8  amended to read:

 9         17.13  To duplicate warrants lost or destroyed.--

10         (1)  The Chief Financial Officer Comptroller is

11  required to duplicate any Comptroller's warrants that may have

12  been lost or destroyed, or may hereafter be lost or destroyed,

13  upon the owner thereof or the owner's agent or attorney

14  presenting the Chief Financial Officer Comptroller the

15  statement, under oath, reciting the number, date, and amount

16  of any warrant or the best and most definite description in

17  his or her knowledge and the circumstances of its loss; if the

18  Chief Financial Officer Comptroller deems it necessary, the

19  owner or the owner's agent or attorney shall file in the

20  office of the Chief Financial Officer Comptroller a surety

21  bond, or a bond with securities, to be approved by one of the

22  judges of the circuit court or one of the justices of the

23  Supreme Court, in a penalty of not less than twice the amount

24  of any warrants so duplicated, conditioned to indemnify the

25  state and any innocent holders thereof from any damages that

26  may accrue from such duplication.

27         (2)  The Chief Financial Officer Comptroller is

28  required to duplicate any Chief Financial Officer's

29  Comptroller's warrant that may have been lost or destroyed, if

30  it was or may hereafter be lost or destroyed, when sent to any

31  payee via any state agency and was when such warrant is lost

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 1  or destroyed prior to being received by the payee and if

 2  provided the director of the state agency to whom the warrant

 3  was sent presents to the Chief Financial Officer Comptroller a

 4  statement, under oath, reciting the number, date, and amount

 5  of the warrant lost or destroyed, the circumstances

 6  surrounding the loss or destruction of such warrant, and any

 7  additional information that the Chief Financial Officer

 8  requests Comptroller shall request in regard to such warrant.

 9         (3)  Any duplicate Chief Financial Officer's

10  Comptroller's warrant issued in pursuance of this section is

11  the above provisions shall be of the same validity as the

12  original was before its loss.

13         Section 20.  Section 17.14, Florida Statutes, is

14  amended to read:

15         17.14  To prescribe forms.--The Department of Banking

16  and Insurance Finance may prescribe the forms of all papers,

17  vouchers, reports, and returns and the manner of keeping the

18  accounts and papers to be used by the officers of this state

19  or other persons having accounts, claims, or demands against

20  the state or entrusted with the collection of any of the

21  revenue thereof or any demand due the same, which form shall

22  be pursued by such officer or other persons.

23         Section 21.  Section 17.16, Florida Statutes, is

24  amended to read:

25         17.16  Seal.--The seal of office of the Chief Financial

26  Officer Comptroller of the state shall be the same as the seal

27  heretofore used by the Comptroller for that purpose.

28         Section 22.  Section 17.17, Florida Statutes, is

29  amended to read:

30         17.17  Examination by Governor and report.--The office

31  of Chief Financial Officer Comptroller of the state, and the

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 1  associated books, files, documents, records, and papers, shall

 2  always remain be subject to the examination of the Governor of

 3  this state, or any person the Governor authorizes may

 4  authorize to examine the same; and on the first day of January

 5  of each and every year, or oftener if called for by the

 6  Governor, the Chief Financial Officer Comptroller shall make a

 7  full report of all his or her official acts and proceedings

 8  for the last fiscal year to the Governor, to be laid before

 9  the Legislature with the Governor's message, and shall make

10  such further report as the constitution requires may require.

11         Section 23.  Section 17.20, Florida Statutes, is

12  amended to read:

13         17.20  Assignment of claims for collection.--

14         (1)  The Department of Banking and Insurance Finance

15  shall charge the state attorneys with the collection of all

16  claims that are placed in their hands for collection of money

17  or property for the state or any county or special district,

18  or that it otherwise requires them to collect.  The charges

19  are evidence of indebtedness of a state attorney against whom

20  any charge is made for the full amount of the claim, until the

21  charges have been collected and paid into the treasury of the

22  state or of the county or special district or the legal

23  remedies of the state have been exhausted, or until the state

24  attorney demonstrates to the department that the failure to

25  collect the charges is not due to negligence and the

26  department has made a proper entry of satisfaction of the

27  charge against the state attorney.

28         (2)  The department may assign the collection of any

29  claim to a collection agent who is registered and in good

30  standing pursuant to chapter 559, if the department determines

31  the assignation to be cost-effective.  The department may pay

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 1  an agent from any amount collected under the claim a fee that

 2  the department and the agent have agreed upon; may authorize

 3  the agent to deduct the fee from the amount collected; may

 4  require the appropriate state agency, county, or special

 5  district to pay the agent the fee from any amount collected by

 6  the agent on its behalf; or may authorize the agent to add the

 7  fee to the amount to be collected.

 8         (3)  Notwithstanding any other provision of law, in any

 9  contract providing for the location or collection of unclaimed

10  property, the department may authorize the contractor to

11  deduct its fees and expenses for services provided under the

12  contract from the unclaimed property that the contractor has

13  recovered or collected under the contract. The department

14  shall annually report to the Governor, the President of the

15  Senate, and the Speaker of the House of Representatives the

16  total amount collected or recovered by each contractor during

17  the previous fiscal year and the total fees and expenses

18  deducted by each contractor.

19         Section 24.  Section 17.21, Florida Statutes, is

20  amended to read:

21         17.21  Not to allow any claim of state attorney against

22  state until report made.--The Chief Financial Officer

23  Comptroller shall not audit or allow any claim that which any

24  state attorney may have against the state for services who

25  fails shall fail to make any report that which by law the

26  state attorney is required to make to the Chief Financial

27  Officer Comptroller of claims of the state which it is his or

28  her duty to collect.

29         Section 25.  Section 17.22, Florida Statutes, is

30  amended to read:

31  

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 1         17.22  Notice to Department of Legal Affairs.--Whenever

 2  the Department of Banking and Insurance Finance forwards any

 3  bond or account or claim for suit to any state attorney, it

 4  shall advise the Department of Legal Affairs of the fact,

 5  giving it the amount of the claim and other necessary

 6  particulars for its full information upon the subject.

 7         Section 26.  Section 17.25, Florida Statutes, is

 8  amended to read:

 9         17.25  May certify copies.--The Chief Financial Officer

10  Comptroller of this state may certify, under his or her seal

11  of office, copies of any record, paper, or document, by law

12  placed in the Chief Financial Officer's Comptroller's custody,

13  keeping, and care; and such certified copy shall have the same

14  force and effect as evidence as the original would have.

15         Section 27.  Section 17.26, Florida Statutes, is

16  amended to read:

17         17.26  Cancellation of state warrants not presented

18  within 1 year.--

19         (1)  If any state warrant issued by the Chief Financial

20  Officer Comptroller against any fund in the State Treasury is

21  not presented for payment within 1 year after the last day of

22  the month in which it was originally issued, the Chief

23  Financial Officer Comptroller may cancel the warrant and

24  credit the amount of the warrant to the fund upon which it is

25  drawn.  If the warrant so canceled was issued against a fund

26  that is no longer operative, the amount of the warrant shall

27  be credited to the General Revenue Fund. The Chief Financial

28  Officer Treasurer shall not honor any state warrant after it

29  has been canceled.

30         (2)  The funds represented by a warrant canceled under

31  subsection (1) are presumed abandoned by the payee or person

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 1  entitled to the warrant and shall be reported and remitted as

 2  unclaimed property under s. 717.117, except that written

 3  notice to the apparent owner of the unclaimed property is not

 4  required before filing of the report. An action may not be

 5  commenced thereafter for recovery of funds represented by the

 6  warrant, except as provided by chapter 717. This subsection

 7  applies to all warrants issued on or after July 1, 1992.

 8         (3)  When a warrant canceled under subsection (1)

 9  represents funds that are in whole or in part derived from

10  federal contributions and disposition of the funds under

11  chapter 717 would cause a loss of the federal contributions,

12  the Governor shall certify to the Chief Financial Officer

13  Comptroller that funds represented by such warrants are for

14  that reason exempt from treatment as unclaimed property.

15  Obligations represented by warrants are unenforceable after 1

16  year from the last day of the month in which the warrant was

17  originally issued.  An action may not be commenced thereafter

18  on the obligation unless authorized by the federal program

19  from which the original warrant was funded and unless payment

20  of the obligation is authorized to be made from the current

21  federal funding.  When a payee or person entitled to a warrant

22  subject to this paragraph requests payment, and payment from

23  current federal funding is authorized by the federal program

24  from which the original warrant was funded, the Chief

25  Financial Officer Comptroller may, upon investigation, issue a

26  new warrant to be paid out of the proper fund in the State

27  Treasury, provided the payee or other person executes under

28  oath the statement required by s. 17.13 or surrenders the

29  canceled warrant.

30         (4)  If a valid obligation of the state is due, owing,

31  and unpaid and it becomes unenforceable for any reason because

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 1  of the provisions and limitations contained in this section,

 2  the person entitled to payment on the obligation may present a

 3  claim for relief to the Legislature, provided the claim is

 4  made within the time limitations presently provided by law.

 5         (5)  This section does not extend any applicable

 6  statute of limitations or revive any barred claim with respect

 7  to any state obligation outstanding and unpaid on July 1,

 8  1995.

 9         Section 28.  Section 17.27, Florida Statutes, is

10  amended to read:

11         17.27  Microfilming and destroying records and

12  correspondence.--

13         (1)  The Department of Banking and Insurance Finance

14  may destroy general correspondence files, and also any other

15  records that which the department considers to may deem no

16  longer require preservation, necessary to preserve in

17  accordance with retention schedules and destruction notices

18  established under rules of the Division of Library and

19  Information Services, records and information management

20  program, of the Department of State. Such schedules and

21  notices relating to financial records of the department shall

22  be subject to the approval of the Auditor General.

23         (2)  The Department of Banking and Insurance Finance

24  may photograph, microphotograph, or reproduce on film any of

25  its such documents and records as it may select, in such

26  manner that each page will be exposed in exact conformity with

27  the original.

28         (3)  The Department of Banking and Insurance Finance

29  may destroy any of such said documents after they have been

30  photographed and filed in accordance with the provisions of

31  subsection (1).

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 1         (4)  Photographs or microphotographs in the form of

 2  film or prints of any records made in compliance with the

 3  provisions of this section shall have the same force and

 4  effect as the originals thereof would have, and shall be

 5  treated as originals for the purpose of their admissibility in

 6  evidence.  Duly certified or authenticated reproductions of

 7  such photographs or microphotographs shall be admitted in

 8  evidence equally with the original photographs or

 9  microphotographs.

10         Section 29.  Section 17.28, Florida Statutes, is

11  amended to read:

12         17.28  Chief Financial Officer Comptroller may

13  authorize biweekly salary payments.--The Chief Financial

14  Officer Comptroller is authorized and may permit biweekly

15  salary payments to personnel upon written request by a

16  specific state agency.  The Chief Financial Officer

17  Comptroller shall adopt promulgate reasonable rules and

18  regulations to carry out the intent of this section.

19         Section 30.  Section 17.29, Florida Statutes, is

20  amended to read:

21         17.29  Authority to prescribe rules.--The Chief

22  Financial Officer may Comptroller has authority to adopt rules

23  pursuant to ss. 120.54 and 120.536(1) to implement duties

24  assigned by statute or the State Constitution. Such rules may

25  include, but are not limited to, the following:

26         (1)  Procedures or policies relating to the processing

27  of payments from salaries, other personal services, or any

28  other applicable appropriation.

29         (2)  Procedures for processing interagency and

30  intraagency payments that which do not require the issuance of

31  a state warrant.

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 1         Section 31.  Section 17.30, Florida Statutes, is

 2  amended to read:

 3         17.30  Dissemination of information.--The Chief

 4  Financial Officer Comptroller may disseminate, in any form or

 5  manner he or she considers appropriate, information regarding

 6  the Chief Financial Officer's Comptroller's official duties.

 7         Section 32.  Section 17.32, Florida Statutes, is

 8  amended to read:

 9         17.32  Annual report of trust funds; duties of Chief

10  Financial Officer Comptroller.--

11         (1)  On February 1 of each year, the Chief Financial

12  Officer Comptroller shall present to the President of the

13  Senate and the Speaker of the House of Representatives a

14  report listing all trust funds as defined in s. 215.32.  The

15  report shall contain the following data elements for each fund

16  for the preceding fiscal year:

17         (a)  The fund code.

18         (b)  The title.

19         (c)  The fund type according to generally accepted

20  accounting principles.

21         (d)  The statutory authority.

22         (e)  The beginning cash balance.

23         (f)  Direct revenues.

24         (g)  Nonoperating revenues.

25         (h)  Operating disbursements.

26         (i)  Nonoperating disbursements.

27         (j)  The ending cash balance.

28         (k)  The department and budget entity in which the fund

29  is located.

30         (2)  The report shall separately list all funds that

31  received no revenues other than interest earnings or transfers

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 1  from the General Revenue Fund or from other trust funds during

 2  the preceding fiscal year.

 3         (3)  The report shall separately list all funds that

 4  had unencumbered balances in excess of $2 million in each of

 5  the 2 preceding fiscal years.

 6         Section 33.  Section 17.325, Florida Statutes, is

 7  amended to read:

 8         17.325  Governmental efficiency hotline; duties of

 9  Chief Financial Officer Comptroller.--

10         (1)  By September 1, 1992, The Chief Financial Officer

11  Comptroller shall establish and operate a statewide toll-free

12  telephone hotline to receive information or suggestions from

13  the public citizens of this state on how to improve the

14  operation of government, increase governmental efficiency, and

15  eliminate waste in government.  The Chief Financial Officer

16  Comptroller shall report each month to the Appropriations

17  Committee of the House of Representatives and of the Senate

18  the information or suggestions received through the hotline

19  and the evaluations and determinations made by the affected

20  agency, as provided in subsection (3), with respect to such

21  information or suggestions.

22         (2)  The Chief Financial Officer Comptroller shall

23  operate the hotline 24 hours a day. The Chief Financial

24  Officer Comptroller shall advertise the availability of the

25  hotline in newspapers of general circulation in this state and

26  shall provide for the posting of notices in conspicuous places

27  in state agency offices, city halls, county courthouses, and

28  places in which there is exposure to significant numbers of

29  the general public, including, but not limited to, local

30  convenience stores, shopping malls, shopping centers, gasoline

31  stations, or restaurants.  The Chief Financial Officer

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 1  Comptroller shall use the slogan "Tell us where we can 'Get

 2  Lean'" for the hotline and in advertisements for the hotline.

 3         (3)  Each telephone call on the hotline shall be

 4  received by the office of the Chief Financial Officer

 5  Comptroller, and the office of the Chief Financial Officer

 6  Comptroller shall conduct an evaluation to determine whether

 7  if it is appropriate for the telephone call to be processed as

 8  a "Get Lean" telephone call. If it is determined that the

 9  telephone call should be processed as a "Get Lean" telephone

10  call, a record of each suggestion or item of information

11  received shall be entered into a log kept by the Chief

12  Financial Officer Comptroller.  A caller on the hotline may

13  remain anonymous, and, if the caller provides his or her name,

14  the name shall be confidential.  If a caller discloses that he

15  or she is a state employee, the Chief Financial Officer

16  Comptroller, in addition to maintaining a record as required

17  by this section, may refer any information or suggestion from

18  the caller to an existing state awards program administered by

19  the affected agency.  The affected agency shall conduct a

20  preliminary evaluation of the efficacy of any suggestion or

21  item of information received through the hotline and shall

22  provide the Chief Financial Officer Comptroller with a

23  preliminary determination of the amount of revenues the state

24  might save by implementing the suggestion or making use of the

25  information.

26         (4)  Any person who provides any information through

27  the hotline is shall be immune from liability for any use of

28  such information and is shall not be subject to any

29  retaliation by any employee of the state for providing such

30  information or making such suggestion.

31  

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 1         (5)  The Chief Financial Officer may Comptroller shall

 2  adopt any rule necessary to implement the establishment,

 3  operation, and advertisement of the hotline.

 4         Section 34.  Section 17.41, Florida Statutes, is

 5  amended to read:

 6         17.41  Department of Banking and Insurance Finance

 7  Tobacco Settlement Clearing Trust Fund.--

 8         (1)  The Department of Banking and Insurance Finance

 9  Tobacco Settlement Clearing Trust Fund is created within that

10  department.

11         (2)  Funds to be credited to the Tobacco Settlement

12  Clearing Trust Fund shall consist of payments received by the

13  state from settlement of State of Florida v. American Tobacco

14  Co., No. 95-1466AH (Fla. 15th Cir. Ct. 1996). Moneys received

15  from the settlement and deposited into the trust fund are

16  exempt from the service charges imposed under s. 215.20.

17         (3)(a)  Subject to approval of the Legislature, all or

18  any portion of the state's right, title, and interest in and

19  to the tobacco settlement agreement may be sold to the Tobacco

20  Settlement Financing Corporation created pursuant to s.

21  215.56005.  Any such sale shall be a true sale and not a

22  borrowing.

23         (b)  Any moneys received by the state pursuant to any

24  residual interest retained in the tobacco settlement agreement

25  or the payments to be made under the tobacco settlement

26  agreement shall be deposited into the Tobacco Settlement

27  Clearing Trust Fund.

28         (4)  Net proceeds of the sale of the tobacco settlement

29  agreement received by the state shall be immediately deposited

30  into the Lawton Chiles Endowment Fund, created in s. 215.5601,

31  without deposit to the Tobacco Settlement Clearing Trust Fund.

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 1         (5)  The department shall disburse funds, by

 2  nonoperating transfer, from the Tobacco Settlement Clearing

 3  Trust Fund to the tobacco settlement trust funds of the

 4  various agencies in amounts equal to the annual appropriations

 5  made from those agencies' trust funds in the General

 6  Appropriations Act.

 7         (6)  Pursuant to the provisions of s. 19(f)(3), Art.

 8  III of the State Constitution, the Tobacco Settlement Clearing

 9  Trust Fund is exempt from the termination provisions of s.

10  19(f)(2), Art. III of the State Constitution.

11         Section 35.  Section 17.43, Florida Statutes, is

12  amended to read:

13         17.43  Chief Financial Officer's Comptroller's Federal

14  Equitable Sharing Trust Fund.--

15         (1)  The Chief Financial Officer's Comptroller's

16  Federal Equitable Sharing Trust Fund is created within the

17  Department of Banking and Insurance Finance. The department

18  may deposit into the trust fund receipts and revenues received

19  as a result of federal criminal, administrative, or civil

20  forfeiture proceedings and receipts and revenues received from

21  federal asset-sharing programs. The trust fund is exempt from

22  the service charges imposed by s. 215.20.

23         (2)  Notwithstanding the provisions of s. 216.301 and

24  pursuant to s. 216.351, any balance in the trust fund at the

25  end of any fiscal year shall remain in the trust fund at the

26  end of the year and shall be available for carrying out the

27  purposes of the trust fund.

28         Section 36.  Section 18.01, Florida Statutes, is

29  transferred, renumbered as section 17.44, Florida Statutes,

30  and amended to read:

31  

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 1         17.44 18.01  Oath and certificate of Chief Financial

 2  Officer Treasurer.--The Chief Financial Officer Treasurer

 3  shall, within 10 days before he or she enters upon the duties

 4  of office, take and subscribe an oath or affirmation

 5  faithfully to discharge the duties of office, which oath or

 6  affirmation must be deposited with the custodian of state

 7  records Department of State. The Chief Financial Officer

 8  Treasurer shall also file with the custodian of state records

 9  Department of State a certificate from the retiring Chief

10  Financial Officer Comptroller attesting that the retiring

11  Chief Financial Officer Treasurer has turned over vouchers for

12  all payments made as required by law, and that the Chief

13  Financial Officer's Treasurer's account has been truly

14  credited with the same, and that he or she has filed receipts

15  from his or her successor for all vouchers paid since the end

16  of the last quarter, and for balance of cash, and for all

17  bonds and other securities held by the Chief Financial Officer

18  Treasurer as such, and a certificate from each board of which

19  he or she is made by law ex officio treasurer, that he or she

20  has satisfactorily accounted to such board as its treasurer.

21         Section 37.  Section 18.02, Florida Statutes, is

22  transferred, renumbered as section 17.45, Florida Statutes,

23  and amended to read:

24         17.45 18.02  Moneys paid on warrants.--The Chief

25  Financial Officer Treasurer shall pay all warrants drawn on

26  the treasury drawn by the Comptroller and other orders by the

27  Comptroller for the disbursement of state funds by electronic

28  means or by means of a magnetic tape or any other transfer

29  medium.  No moneys shall be paid out of the treasury except on

30  such warrants or other orders of the Chief Financial Officer

31  Comptroller.

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 1         Section 38.  Section 18.021, Florida Statutes, is

 2  transferred, renumbered as section 17.46, Florida Statutes,

 3  and amended to read:

 4         17.46 18.021  Chief Financial Officer Treasurer to

 5  operate personal check-cashing service.--

 6         (1)  The Chief Financial Officer Treasurer is

 7  authorized to operate a personal check-cashing service or a

 8  remote financial service unit at the capitol for the benefit

 9  of state employees or other responsible persons who properly

10  identify themselves.

11         (2)  If a personal check is dishonored or a state

12  warrant is forged and the Chief Financial Officer Treasurer

13  has made diligent but unsuccessful effort to collect and has

14  forwarded the returned check for prosecution by the

15  appropriate state attorney, then he or she may include such

16  amount in his or her budget request to be considered during

17  the next legislative session.

18         Section 39.  Section 18.06, Florida Statutes, is

19  transferred, renumbered as section 17.47, Florida Statutes,

20  and amended to read:

21         17.47 18.06  Examination by and monthly statements to

22  the Governor.--The office of the Treasurer of this state, and

23  the books, files, documents, records, and papers thereof,

24  shall always be subject to the examination of the Governor of

25  the state, or any person he or she may authorize to examine

26  same. The Chief Financial Officer Treasurer shall exhibit to

27  the Governor monthly a trial balance sheet from his or her

28  books and a statement of all the credits, moneys, or effects

29  on hand on the day for which the said trial balance sheet is

30  made, and the said statement accompanying the said trial

31  balance sheet shall particularly describe the exact character

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 1  of funds, credits, and securities, and shall state in detail

 2  the amount that which he or she may have representing cash,

 3  including any not yet entered upon the books of his or her

 4  office, and shall certify and sign the statement such

 5  statement shall be certified and signed by the Treasurer

 6  officially.

 7         Section 40.  Section 18.07, Florida Statutes, is

 8  transferred, renumbered as section 17.48, F.S. and amended to

 9  read:

10         17.48 18.07  Chief Financial Officer Treasurer to keep

11  record of warrants and of state funds and securities.--The

12  Chief Financial Officer Treasurer shall keep a record of the

13  warrants or other orders that of the Comptroller which the

14  Chief Financial Officer Treasurer pays and shall account for

15  all state funds and securities.

16         Section 41.  Section 18.091, Florida Statutes, is

17  transferred, renumbered as section 17.49, Florida Statutes,

18  and amended to read:

19         17.49 18.091  Legislative sessions; additional

20  employees.--

21         (1)  Whenever Hereafter during any period of time the

22  Legislature is of Florida may be in actual session, the Chief

23  Financial Officer Treasurer is empowered to employ additional

24  persons to assist in performing the services required of the

25  Chief Financial Officer Treasurer in connection with s.

26  18.021(1). The salary salaries to be paid to such an employee

27  employees of the Chief Financial Officer Treasurer shall not

28  exceed be in excess of the highest salary paid by the House of

29  Representatives or the state Senate for secretarial services;

30  and the salaries for such said employees shall begin with the

31  convening of the Legislature in session and shall continue for

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 1  not more than 7 days after the close of the legislative

 2  session; however, provided, that recesses of the Legislature

 3  not in excess of 3 days shall be considered as time during

 4  which the Legislature is actually in session.

 5         (2)  In addition to the regular annual appropriations

 6  for the Chief Financial Officer Treasurer, there is hereby

 7  appropriated for use of the Chief Financial Officer Treasurer

 8  from the General Revenue Fund, from time to time as necessary,

 9  sufficient sums to pay the salaries of the above-described

10  employees of the Chief Financial Officer Treasurer.

11         Section 42.  Section 18.10, Florida Statutes, is

12  transferred, renumbered as section 17.50, Florida Statutes,

13  and amended to read:

14         17.50 18.10  Deposits and investments of state money.--

15         (1)  The Chief Financial Officer Treasurer, or other

16  parties with the permission of the Chief Financial Officer

17  Treasurer, shall deposit the money of the state or any money

18  in the State Treasury in such qualified public depositories of

19  the state as will offer satisfactory collateral security for

20  such deposits, pursuant to chapter 280. It is the duty of the

21  Chief Financial Officer Treasurer, consistent with the cash

22  requirements of the state, to keep such money fully invested

23  or deposited as provided by law herein in order that the state

24  may realize maximum earnings and benefits.

25         (2)  The Chief Financial Officer Treasurer shall make

26  funds available to meet the disbursement needs of the state.

27  Funds that which are not needed for this purpose shall be

28  placed in qualified public depositories that will pay rates

29  established by the Chief Financial Officer Treasurer at levels

30  not less than the prevailing rate for United States Treasury

31  securities with a corresponding maturity. If In the event

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 1  money is available for interest-bearing time deposits or

 2  savings accounts as provided herein and qualified public

 3  depositories are unwilling to accept such money and pay

 4  thereon the rates required established above, then such money

 5  as which qualified public depositories are unwilling to accept

 6  shall be invested in:

 7         (a)  Direct United States Treasury obligations.

 8         (b)  Obligations of the Federal Farm Credit Banks.

 9         (c)  Obligations of the Federal Home Loan Bank and its

10  district banks.

11         (d)  Obligations of the Federal Home Loan Mortgage

12  Corporation, including participation certificates.

13         (e)  Obligations guaranteed by the Government National

14  Mortgage Association.

15         (f)  Obligations of the Federal National Mortgage

16  Association.

17         (g)  Commercial paper of prime quality of the highest

18  letter and numerical rating as provided for by at least one

19  nationally recognized rating service.

20         (h)  Time drafts or bills of exchange drawn on and

21  accepted by a commercial bank, otherwise known as "bankers

22  acceptances," which are accepted by a member bank of the

23  Federal Reserve System having total deposits of not less than

24  $400 million or which are accepted by a commercial bank which

25  is not a member of the Federal Reserve System with deposits of

26  not less than $400 million and which is licensed by a state

27  government or the Federal Government, and whose senior debt

28  issues are rated in one of the two highest rating categories

29  by a nationally recognized rating service and which are held

30  in custody by a domestic bank which is a member of the Federal

31  Reserve System.

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 1         (i)  Corporate obligations or corporate master notes of

 2  any corporation within the United States, if the long-term

 3  obligations of such corporation are rated by at least two

 4  nationally recognized rating services in any one of the four

 5  highest classifications. However, if such obligations are

 6  rated by only one nationally recognized rating service, then

 7  the obligations must shall be rated in any one of the two

 8  highest classifications.

 9         (j)  Obligations of the Student Loan Marketing

10  Association.

11         (k)  Obligations of the Resolution Funding Corporation.

12         (l)  Asset-backed or mortgage-backed securities of the

13  highest credit quality.

14         (m)  Any obligations not previously listed which are

15  guaranteed as to principal and interest by the full faith and

16  credit of the United States Government or are obligations of

17  United States agencies or instrumentalities which are rated in

18  the highest category by a nationally recognized rating

19  service.

20         (n)  Commingled no-load investment funds or no-load

21  mutual funds in which all securities held by the funds are

22  authorized in this subsection.

23         (o)  Money market mutual funds as defined and regulated

24  by the Securities and Exchange Commission.

25         (p)  Obligations of state and local governments rated

26  in any of the four highest classifications by at least two

27  nationally recognized rating services. However, if such

28  obligations are rated by only one nationally recognized rating

29  service, then the obligations shall be rated in any one of the

30  two highest classifications.

31  

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 1         (q)  Derivatives of investment instruments authorized

 2  in paragraphs (a) through (m).

 3         (r)  Covered put and call options on investment

 4  instruments authorized in this subsection for the purpose of

 5  hedging transactions by investment managers to mitigate risk

 6  or to facilitate portfolio management.

 7         (s)  Negotiable certificates of deposit issued by

 8  financial institutions whose long-term debt is rated in one of

 9  the three highest categories by at least two nationally

10  recognized rating services, the investment in which shall not

11  be prohibited by any provision of chapter 280.

12         (t)  Foreign bonds denominated in United States dollars

13  and registered with the Securities and Exchange Commission for

14  sale in the United States, if the long-term obligations of

15  such issuers are rated by at least two nationally recognized

16  rating services in any one of the four highest

17  classifications. However, if such obligations are rated by

18  only one nationally recognized rating service, the obligations

19  must shall be rated in any one of the two highest

20  classifications.

21         (u)  Convertible debt obligations of any corporation

22  domiciled within the United States, if the convertible debt

23  issue is rated by at least two nationally recognized rating

24  services in any one of the four highest classifications.

25  However, if such obligations are rated by only one nationally

26  recognized rating service, then the obligations must shall be

27  rated in any one of the two highest classifications.

28         (v)  Securities not otherwise described in this

29  subsection. However, not more than 3 percent of the funds

30  under the control of the Treasurer shall be invested in

31  securities described in this paragraph.

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 1  

 2  These investments may be in varying maturities and may be in

 3  book-entry form. Investments made pursuant to this subsection

 4  may be under repurchase agreement. The Chief Financial Officer

 5  Treasurer is authorized to hire registered investment advisers

 6  and other consultants to assist in investment management and

 7  to pay fees directly from investment earnings. Investment

 8  securities, proprietary investment services related to

 9  contracts, performance evaluation services, investment-related

10  equipment or software used directly to assist investment

11  trading or investment accounting operations including bond

12  calculators, telerates, Bloombergs, special program

13  calculators, intercom systems, and software used in

14  accounting, communications, and trading, and advisory and

15  consulting contracts made under this section are exempt from

16  the provisions of chapter 287.

17         (3)  If In the event the financial institutions in the

18  state do not make sufficient loan funds available for a

19  residential conservation program pursuant to any plan approved

20  by the Florida Public Service Commission under the Florida

21  Energy Efficiency and Conservation Act, the board may

22  authorize the investment of state funds, except retirement

23  trust funds, in such a loan program at rates not less than

24  prevailing United States Treasury bill rates. However, prior

25  to investment of such funds, the Florida Public Service

26  Commission shall develop a plan that is which must be approved

27  by the Legislature before implementation.

28         (4)  All earnings on any investments made pursuant to

29  this section shall be credited to the General Revenue Fund,

30  except that earnings attributable to moneys made available

31  

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 1  pursuant to s. 17.54(3) s. 18.125(3) shall be credited pro

 2  rata to the funds from which such moneys were made available.

 3         (5)  The fact that a municipal officer or a state

 4  officer, including an officer of any municipal or state

 5  agency, board, bureau, commission, institution, or department,

 6  is a stockholder or an officer or director of a bank or

 7  savings and loan association does will not bar such bank or

 8  savings and loan association from being a depository of funds

 9  coming under the jurisdiction of any such municipal officer or

10  state officer if it appears shall appear in the records of the

11  municipal or state office that the governing body of such

12  municipality or state agency has investigated and determined

13  that such municipal or state officer is not favoring such

14  banks or savings and loan associations over other qualified

15  banks or savings and loan associations.

16         (6)  The Chief Financial Officer Treasurer is

17  designated the cash management officer for the state and is

18  charged with the coordination and supervision of procedures

19  providing for the efficient handling of financial assets under

20  the control of the State Treasury and each of the various

21  state agencies, and of the judicial branch, as defined in s.

22  216.011.  This responsibility includes shall include the

23  supervision and approval of all banking relationships.

24  Pursuant to this responsibility, the Chief Financial Officer

25  Treasurer is authorized to obtain information from financial

26  institutions regarding depository accounts maintained by any

27  agency or institution of the State of Florida.

28         Section 43.  Section 18.101, Florida Statutes, is

29  transferred, renumbered as section 17.51, Florida Statutes,

30  and amended to read:

31  

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 1         17.51 18.101  Deposits of public money outside the

 2  State Treasury; revolving funds.--

 3         (1)  All moneys collected by state agencies, boards,

 4  bureaus, commissions, institutions, and departments shall,

 5  except as otherwise provided by law, be deposited in the State

 6  Treasury. However, when the volume and complexity of

 7  collections so justify, the Chief Financial Officer Treasurer

 8  may give written approval for such moneys to be deposited in

 9  clearing accounts outside the State Treasury in qualified

10  public depositories pursuant to chapter 280.  Such deposits

11  shall only be made only in depositories designated by the

12  Chief Financial Officer Treasurer.  No money may be maintained

13  in such clearing accounts for a period longer than approved by

14  the Chief Financial Officer Treasurer or 40 days, whichever is

15  shorter, prior to its being transmitted to the Chief Financial

16  Officer Treasurer or to an account designated by him or her,

17  distributed to a statutorily authorized account outside the

18  State Treasury, refunded, or transmitted to the Department of

19  Revenue. All depositories so designated shall pledge

20  sufficient collateral to constitute be security for such funds

21  as provided in chapter 280.

22         (2)  Revolving funds authorized by the Chief Financial

23  Officer Comptroller for all state agencies, boards, bureaus,

24  commissions, institutions, and departments may be deposited by

25  such agencies, boards, bureaus, commissions, institutions, and

26  departments in qualified public depositories designated by the

27  Chief Financial Officer Treasurer for such revolving fund

28  deposits; and the depositories in which such deposits are made

29  must shall pledge collateral security as provided in chapter

30  280.

31  

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 1         (3)  Notwithstanding the foregoing provisions, clearing

 2  and revolving accounts may be established outside the state

 3  when necessary to facilitate the authorized operations of any

 4  agency, board, bureau, commission, institution, or department.

 5  Any of such account accounts established in the United States

 6  is shall be subject to the collateral security requirements of

 7  chapter 280.  Accounts established outside the United States

 8  may be exempted from the requirements of chapter 280 as

 9  provided in chapter 280; but before any unsecured account is

10  established, the agency requesting or maintaining the account

11  must shall recommend a financial institution to the Chief

12  Financial Officer Treasurer for designation to hold the

13  account and must shall submit evidence of the financial

14  condition, size, reputation, and relative prominence of the

15  institution from which the Chief Financial Officer Treasurer

16  can reasonably conclude that the institution is financially

17  sound before designating it to hold the account.

18         (4)  Each department must shall furnish a statement to

19  the Chief Financial Officer Treasurer, on or before the 20th

20  of the month following the end of each calendar quarter,

21  listing each clearing account and revolving fund within that

22  department's jurisdiction.  Such statement shall report, as of

23  the last day of the calendar quarter, the cash balance in each

24  revolving fund and that portion of the cash balance in each

25  clearing account that will eventually be deposited to the

26  State Treasury as provided by law.  The Chief Financial

27  Officer Treasurer shall show the sum total of state funds in

28  clearing accounts and revolving funds, as most recently

29  reported to the Chief Financial Officer Treasurer by various

30  departments, in his or her monthly statement to the Governor,

31  pursuant to s. 18.06.

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 1         Section 44.  Section 18.103, Florida Statutes, is

 2  transferred, renumbered as section 17.52, Florida Statutes,

 3  and amended to read:

 4         17.52 18.103  Safekeeping services of Chief Financial

 5  Officer Treasurer.--

 6         (1)  The Chief Financial Officer Treasurer may accept

 7  for safekeeping purposes, deposits of cash, securities, and

 8  other documents or articles of value from any state agency as

 9  defined in s. 216.011, or any county, municipality city, or

10  political subdivision thereof, or other public authority.

11         (2)  The Chief Financial Officer Treasurer may, in his

12  or her discretion, establish a fee for processing, servicing,

13  and safekeeping deposits and other documents or articles of

14  value held in the Chief Financial Officer's Treasurer's vaults

15  as requested by the various entities or as provided for by

16  law.  Such fee shall be equivalent to the fee charged by

17  financial institutions for processing, servicing, and

18  safekeeping the same types of deposits and other documents or

19  articles of value.

20         (3)  The Chief Financial Officer Treasurer shall

21  collect in advance, and persons so served shall pay to the

22  Chief Financial Officer Treasurer in advance, the

23  miscellaneous charges as follows:

24         (a)  For copies of documents or records on file with

25  the Treasurer, per page..................................$.50.

26         (b)  For each certificate of the Chief Financial

27  Officer Treasurer, certified or under the Chief Financial

28  Officer's Treasurer's seal, authenticating any document or

29  other instrument........................................$5.00.

30         (4)  All fees collected for the services described in

31  this section shall be deposited in the Chief Financial

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 1  Officer's Treasurer's Administrative and Investment Trust

 2  Fund.

 3         Section 45.  Section 18.104, Florida Statutes, is

 4  transferred, renumbered as section 17.53, Florida Statutes,

 5  and amended to read:

 6         17.53 18.104  Treasury Cash Deposit Trust Fund.--

 7         (1)  There is hereby created in the State Treasury the

 8  Treasury Cash Deposit Trust Fund.  Cash deposits made pursuant

 9  to s. 17.52 s. 18.103 shall be deposited into this fund.

10         (2)  Interest earned on cash deposited into this fund

11  shall be prorated and paid to the depositing entities.

12         Section 46.  Section 18.125, Florida Statutes, is

13  transferred, renumbered as section 17.54, Florida Statutes,

14  and amended to read:

15         17.54 18.125  Chief Financial Officer Treasurer; powers

16  and duties in the investment of certain funds.--

17         (1)  The Chief Financial Officer Treasurer, acting with

18  the approval of a majority of the State Board of

19  Administration, shall invest all general revenue funds and all

20  the trust funds and all agency funds of each state agency, and

21  of the judicial branch, as defined in s. 216.011, and may,

22  upon request, invest funds of any statutorily created board,

23  association, or entity, except for the funds required to be

24  invested pursuant to ss. 215.44-215.53, by the procedure and

25  in the authorized securities prescribed in s. 17.50 s. 18.10;

26  for this purpose, the Chief Financial Officer Treasurer shall

27  be authorized to open and maintain one or more demand and

28  safekeeping accounts in any bank or savings association for

29  the investment and reinvestment and the purchase, sale, and

30  exchange of funds and securities in the accounts.  Funds in

31  such accounts used solely for investments and reinvestments

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 1  shall be considered investment funds and not funds on deposit,

 2  and such funds shall be exempt from the provisions of chapter

 3  280.  In addition, the securities or investments purchased or

 4  held under the provisions of this section and s. 17.50 s.

 5  18.10 may be loaned to securities dealers and banks and may be

 6  registered by the Chief Financial Officer Treasurer in the

 7  name of a third-party nominee in order to facilitate such

 8  loans, provided the loan is collateralized by cash or United

 9  States government securities having a market value of at least

10  100 percent of the market value of the securities loaned. The

11  Chief Financial Officer Treasurer shall keep a separate

12  account, designated by name and number, of each fund.

13  Individual transactions and totals of all investments, or the

14  share belonging to each fund, shall be recorded in the

15  accounts.

16         (2)  By and with the consent and approval of any

17  constitutional board, the judicial branch, or agency now

18  having the constitutional power to make investments and in

19  accordance with this section, the Chief Financial Officer

20  Treasurer shall have the power to make purchases, sales,

21  exchanges, investments, and reinvestments for and on behalf of

22  any such board.

23         (3)(a)  It is the duty of each state agency, and of the

24  judicial branch, now or hereafter charged with the

25  administration of the funds referred to in subsection (1) to

26  make such moneys available for investment as fully as is

27  consistent with the cash requirements of the particular fund

28  and to authorize investment of such moneys by the Chief

29  Financial Officer Treasurer.

30         (b)  Monthly, and more often as circumstances require,

31  such agency or judicial branch shall notify the Chief

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 1  Financial Officer Treasurer of the amount available for

 2  investment; and the moneys shall be invested by the Chief

 3  Financial Officer Treasurer.  Such notification shall include

 4  the name and number of the fund for which the investments are

 5  to be made and the life of the investment if the principal sum

 6  is to be required for meeting obligations.  This subsection,

 7  however, shall not be construed to make available for

 8  investment any funds other than those referred to in

 9  subsection (1).

10         (4)(a)  There is hereby created in the State Treasury

11  the Chief Financial Officer's Treasurer's Administrative and

12  Investment Trust Fund.

13         (b)  The Chief Financial Officer Treasurer shall make

14  an annual assessment of 0.12 percent against the average daily

15  balance of those moneys made available pursuant to this

16  section and 0.2 percent against the average daily balance of

17  those funds requiring investment in a separate account. The

18  proceeds of this assessment shall be deposited in the Chief

19  Financial Officer's Treasurer's Administrative and Investment

20  Trust Fund.

21         (c)  The moneys so received and deposited in the fund

22  shall be used by the Chief Financial Officer Treasurer to

23  defray the expense of his or her office in the discharge of

24  the administrative and investment powers and duties prescribed

25  by this section and this chapter, including the maintaining of

26  an office and necessary supplies therefor, essential equipment

27  and other materials, salaries and expenses of required

28  personnel, and all other legitimate expenses relating to the

29  administrative and investment powers and duties imposed upon

30  and charged to the Chief Financial Officer Treasurer under

31  this section and this chapter. The unencumbered balance in the

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 1  trust fund at the close of each quarter may shall not exceed

 2  $750,000. Any funds in excess of this amount shall be

 3  transferred unallocated to the General Revenue Fund. However,

 4  fees received from deferred compensation participants pursuant

 5  to s. 112.215 shall not be transferred to the General Revenue

 6  Fund and shall be used to operate the deferred compensation

 7  program.

 8         (5)  The transfer of the powers, duties, and

 9  responsibilities of existing state agencies and of the

10  judicial branch made by this section to the Chief Financial

11  Officer includes Treasurer shall include only the particular

12  powers, duties, and responsibilities hereby transferred, and

13  all other existing powers are shall in no way be affected by

14  this section.

15         Section 47.  Section 18.15, Florida Statutes, is

16  transferred, renumbered as section 17.55, Florida Statutes,

17  and amended to read:

18         17.55 18.15  Interest on state moneys deposited; when

19  paid.--Interest on state moneys deposited in qualified public

20  depositories under s. 17.50 is s. 18.10 shall be payable to

21  the Chief Financial Officer Treasurer quarterly or

22  semiannually.

23         Section 48.  Section 18.17, Florida Statutes, is

24  transferred, renumbered as section 17.56, Florida Statutes,

25  and amended to read:

26         17.56 18.17  Chief Financial Officer Treasurer not to

27  issue evidences of indebtedness.--It is not lawful for the

28  Chief Financial Officer Treasurer of this state to issue any

29  treasury certificates, or any other evidences of indebtedness,

30  for any purpose whatever, and the Chief Financial Officer

31  Treasurer is prohibited from issuing the same.

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 1         Section 49.  Section 18.20, Florida Statutes, is

 2  transferred, renumbered as section 18.57, Florida Statutes,

 3  and amended to read:

 4         17.57 18.20  Chief Financial Officer Treasurer to make

 5  reproductions of certain warrants, records, and documents.--

 6         (1)  All vouchers or checks heretofore or hereafter

 7  drawn by appropriate court officials of the several counties

 8  of the state against money deposited with the Chief Financial

 9  Officer Treasurer under the provisions of s. 43.17, and paid

10  by the Chief Financial Officer Treasurer, may be photographed,

11  microphotographed, or reproduced on film by the Chief

12  Financial Officer Treasurer.  Such photographic film must

13  shall be durable material, and the device used to so reproduce

14  such warrants, vouchers, or checks must shall be one that

15  which accurately reproduces the originals thereof in all

16  detail.; and Such photographs, microphotographs, or

17  reproductions on film must shall be placed in conveniently

18  accessible and identified files and must shall be preserved by

19  the Chief Financial Officer Treasurer as a part of the

20  permanent records of his or her office.  When any such

21  warrants, vouchers, or checks have been so photographed,

22  microphotographed, or reproduced on film, and the photographs,

23  microphotographs, or reproductions on film thereof have been

24  placed in files as a part of the permanent records of the

25  office of the Chief Financial Officer Treasurer as aforesaid,

26  he or she the Treasurer is authorized to return such warrants,

27  vouchers, or checks to the offices of the respective county

28  officials who drew them, the same and such warrants, vouchers,

29  or checks shall be retained and preserved in the such offices

30  to which they have been returned as a part of the permanent

31  records of those such offices.

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 1         (2)  Such photographs, microphotographs, or

 2  reproductions on film of said warrants, vouchers, or checks

 3  shall be deemed to be original records for all purposes; and

 4  any copy or reproduction thereof made from the such original

 5  film, duly certified by the Chief Financial Officer Treasurer

 6  as a true and correct copy or reproduction made from such

 7  film, shall be considered deemed to be a transcript,

 8  exemplification, or certified copy of the original warrant,

 9  voucher, or check such copy represents, and shall in all cases

10  and in all courts and places be admitted and received in

11  evidence with the same like force and effect as the original

12  thereof might be.

13         (3)  The Chief Financial Officer Treasurer is also

14  hereby authorized to photograph, microphotograph, or reproduce

15  on film, all records and documents of his or her said office,

16  as the Chief Financial Officer Treasurer may, in his or her

17  discretion, select; and the said Chief Financial Officer

18  Treasurer is hereby authorized to destroy any of the said

19  documents or records after they have been photographed and

20  filed and after audit of the Chief Financial Officer's

21  Treasurer's office has been completed for the period embracing

22  the dates of the said documents and records.

23         (4)  Photographs or microphotographs in the form of

24  film or prints of any records made in compliance with the

25  provisions of this section shall have the same force and

26  effect as the originals thereof would have, and shall be

27  treated as originals for the purpose of their admissibility in

28  evidence. Duly certified or authenticated reproductions of

29  such photographs or microphotographs shall be admitted in

30  evidence equally with the original photographs or

31  microphotographs.

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 1         Section 50.  Section 18.23, Florida Statutes, is

 2  transferred, renumbered as section 17.58, Florida Statutes,

 3  and amended to read:

 4         17.58 18.23  Chief Financial Officer Treasurer to

 5  prescribe forms.--The Chief Financial Officer Treasurer may

 6  prescribe the forms, and the manner of keeping such forms the

 7  same, for all receipts, credit advices, abstracts, reports,

 8  and other papers furnished the Chief Financial Officer

 9  Treasurer by the officers of this state or other persons or

10  entities as a result of their having, or depositing, state

11  moneys.

12         Section 51.  Section 18.24, Florida Statutes, is

13  transferred, renumbered as section 17.59, Florida Statutes,

14  and amended to read:

15         17.59 18.24  Securities in book-entry form.--Any

16  security that which:

17         (1)(a)  Is eligible to be held in book-entry form on

18  the books of the Federal Reserve Book-Entry System; or

19         (b)  Is eligible for deposit in a depository trust

20  clearing system established to hold and transfer securities by

21  computerized book-entry systems; and that which

22         (2)(a)  Is held in the name of the State Chief

23  Financial Officer Treasurer or in the name of the State

24  Insurance Commissioner; or

25         (b)  Is pledged to the State Chief Financial Officer,

26  Treasurer or to the State Insurance Commissioner;

27  

28  under any state law for any purpose whatsoever, may be held in

29  book-entry form on the books of the Federal Reserve Book-Entry

30  System or on deposit in a depository trust clearing system.

31  

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 1         Section 52.  Sections 18.03, 18.05, 18.08, 18.09,

 2  18.22, 20.12, and 20.13, Florida Statutes, are repealed.

 3         Section 53.  If any law that is amended by this act was

 4  also amended by a law enacted at the 2002 Regular Session of

 5  the Legislature, such laws shall be construed as if they had

 6  been enacted at the same session of the Legislature, and full

 7  effect should be given to each if that is possible.

 8         Section 54.  This act shall take effect January 7,

 9  2003.

10  

11            *****************************************

12                          SENATE SUMMARY

13    Creates the Department of Banking and Insurance and
      transfers to it the powers, duties, functions, property,
14    personnel, records, unexpended balances of
      appropriations, and other funds of the Department of
15    Insurance and of the Department of Banking and Finance.
      Abolishes the Department of Insurance and the Department
16    of Banking and Finance.

17  

18  

19  

20  

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22  

23  

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31  

                                  49

CODING: Words stricken are deletions; words underlined are additions.