House Bill hb0003E

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    Florida House of Representatives - 2002                 HB 3-E

        By Representative Alexander






  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 the Department of

  7         Insurance and Financial Services; creating s.

  8         20.121, F.S.; creating the Office of Chief

  9         Financial Officer; providing duties; providing

10         for a Division of Financial Investigations;

11         authorizing the Chief Financial Officer to

12         process certain warrants created by the

13         Comptroller; creating s. 20.131, F.S.; creating

14         the Department of Insurance and Financial

15         Services; providing for an executive director;

16         providing for departmental structure; creating

17         the Offices of Commissioner of Insurance and

18         Commissioner of Financial Services; providing

19         for subpoenas, sworn statements, and

20         enforcement proceedings; providing rulemaking

21         authority; providing for appointment and

22         specifying qualifications for each

23         commissioner; providing jurisdiction for each

24         commissioner's office; providing jurisdiction

25         of the Governor and Cabinet; authorizing the

26         Department of Insurance and Financial Services

27         to destroy certain records and correspondence

28         under certain circumstances; authorizing the

29         Department of Insurance and Financial Services

30         to photograph, microfilm, or reproduce on film

31         certain records and documents for certain

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    Florida House of Representatives - 2002                 HB 3-E

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  1         purposes under certain circumstances;

  2         authorizing the Department of Insurance and

  3         Financial Services to disseminate certain

  4         information under certain circumstances;

  5         providing for effect of photographed,

  6         microfilmed, or reproduced records and

  7         documents; transferring certain programs,

  8         including employees and equipment, from the

  9         Department of Banking and Finance and the

10         Department of Insurance to the Office of Chief

11         Financial Officer and the Department of

12         Insurance and Financial Services; requiring

13         transferring agencies to prepare and submit

14         inventories of certain property to the

15         executive director of the Department of

16         Insurance and Financial Services by a certain

17         date; transferring certain trust funds from the

18         Department of Banking and Finance and the

19         Department of Insurance to the Office of Chief

20         Financial Officer and the Department of

21         Insurance and Financial Services; specifying

22         that rules of the Department of Banking and

23         Finance and the Department of Insurance become

24         rules of the Department of Insurance and

25         Financial Services; specifying that such rules

26         become rules of the Office of Chief Financial

27         Officer under certain circumstances; providing

28         for preservation of validity of judicial or

29         administrative actions involving such

30         departments; providing for substitution of

31         certain parties in interest in such actions;

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    Florida House of Representatives - 2002                 HB 3-E

    593-155C-02E






  1         creating the office of executive director of

  2         the Department of Insurance and Financial

  3         Services; providing for appointment of the

  4         executive director; providing for the executive

  5         director to serve as the head of the Office of

  6         Transition Management; creating the Office of

  7         Transition Management; specifying powers and

  8         duties thereof; requiring reports to the

  9         Governor and the Legislature; providing rules

10         of construction; providing for assistance of

11         certain legislative substantive committees by

12         the Division of Statutory Revision for certain

13         purposes; providing an effective date.

14

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

16

17         Section 1.  Effective January 7, 2003, subsection (3)

18  of section 20.04, Florida Statutes, is amended to read:

19         20.04  Structure of executive branch.--The executive

20  branch of state government is structured as follows:

21         (3)  For their internal structure, all departments,

22  except for the Department of Insurance and Financial Services

23  Banking and Finance, the Department of Children and Family

24  Services, the Department of Corrections, the Department of

25  Management Services, the Department of Revenue, and the

26  Department of Transportation, must adhere to the following

27  standard terms:

28         (a)  The principal unit of the department is the

29  "division." Each division is headed by a "director."

30         (b)  The principal unit of the division is the

31  "bureau." Each bureau is headed by a "chief."

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  1         (c)  The principal unit of the bureau is the "section."

  2  Each section is headed by an "administrator."

  3         (d)  If further subdivision is necessary, sections may

  4  be divided into "subsections," which are headed by

  5  "supervisors."

  6         Section 2.  Section 20.121, Florida Statutes, is

  7  created to read:

  8         20.121  Office of Chief Financial Officer.--Effective

  9  January 7, 2003, there is created the Office of Chief

10  Financial Officer. The head of the office is the Chief

11  Financial Officer.

12         (1)  CONSTITUTIONAL POWERS AND DUTIES.--Pursuant to s.

13  4, Art. IV of the State Constitution, the duties of the Chief

14  Financial Officer are to serve as the chief fiscal officer of

15  the state, to settle and approve accounts against the state,

16  and to keep all state funds and securities.

17         (2)  ADDITIONAL POWERS AND DUTIES.--In addition to the

18  powers and duties specified in subsection (1), the Chief

19  Financial Officer is also:

20         (a)  The administrator of the Government Employees

21  Deferred Compensation Plan.

22         (b)  The State Fire Marshal.

23         (c)  The state officer responsible for carrying out

24  laws relating to unclaimed property and security for public

25  deposits.

26         (3)  DIVISIONS OF THE OFFICE OF CHIEF FINANCIAL

27  OFFICER.--The following offices and divisions are created

28  within the Office of Chief Financial Officer:

29         (a)  The Office of Financial Investigations, which

30  shall function as a criminal justice agency within the meaning

31  of s. 943.045(10)(e).

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  1         (b)  The Office of the Insurance Consumer Advocate.

  2         (c)  The Division of Accounting and Auditing.

  3         (d)  The Division of Treasury.

  4         (e)  The Division of Risk Management.

  5         (f)  The Division of Insurer Rehabilitation and

  6  Liquidation, the functions of which are limited to acting as

  7  receiver and overseeing guaranty associations, as provided in

  8  chapter 631.

  9         (g)  The Division of State Fire Marshal.

10         (h)  The Division of Insurance Fraud.

11         Section 3.  Effective January 7, 2003, the Chief

12  Financial Officer may process all warrants created by the

13  Comptroller prior to January 7, 2003.

14         Section 4.  Section 20.131, Florida Statutes, is

15  created to read:

16         20.131  Department of Insurance and Financial

17  Services.--Effective January 7, 2003, there is created the

18  Department of Insurance and Financial Services. The Governor

19  and Cabinet shall serve as head of the department.

20         (1)  EXECUTIVE DIRECTOR.--The executive director of the

21  Department of Insurance and Financial Services is the chief

22  administrator of the department and shall be appointed by the

23  Governor and Cabinet, subject to confirmation by the Senate.

24  The executive director serves at the pleasure of the Governor

25  and Cabinet. The functions of the executive director are

26  limited to personnel, administrative, and budgetary matters,

27  including administrative coordination of issues that affect

28  areas under the Offices of the Commissioner of Insurance and

29  the Commissioner of Financial Services, and coordination of

30  legislative activities.

31

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    Florida House of Representatives - 2002                 HB 3-E

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  1         (2)  DEPARTMENTAL STRUCTURE.--The Governor and Cabinet,

  2  as head of the Department of Insurance and Financial Services,

  3  shall adopt rules establishing the organizational structure of

  4  the department. It is the intent of the Legislature to provide

  5  the Governor and Cabinet with the flexibility to organize the

  6  department in any manner they determine appropriate to promote

  7  both efficiency and accountability, subject to the following

  8  requirements:

  9         (a)  The major structural unit of the department is the

10  "office." Each office is headed by a "commissioner." The

11  offices are established as follows:

12         1.  Office of the Commissioner of Insurance.--The

13  Office of the Commissioner of Insurance is responsible for all

14  activities of the department relating to the regulation of

15  insurance. As used in this section, the regulation of

16  insurance includes insurer licensing, rates, forms, and

17  solvency, administrative supervision of insurers, insurance

18  agent and agency licensing and regulation, regulation of

19  workers' compensation insurance, and insurance consumer

20  services and all other powers and duties formerly exercised by

21  the Insurance Commissioner or the Department of Insurance

22  under the Florida Insurance Code or chapter 636, unless

23  specifically provided otherwise by law. The regulation of

24  insurance does not include the activities of the Insurance

25  Consumer Advocate, activities of the Division of Insurance

26  Fraud of the Office of Chief Financial Officer, or activities

27  of the Division of Insurer Rehabilitation and Liquidation of

28  the Office of Chief Financial Officer, as provided in s.

29  20.121. The head of the office is the Commissioner of

30  Insurance.

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    Florida House of Representatives - 2002                 HB 3-E

    593-155C-02E






  1         2.  Office of the Commissioner of Financial

  2  Services.--The Office of the Commissioner of Financial

  3  Services is responsible for all activities of the department

  4  relating to the regulation of banks, credit unions, other

  5  financial institutions, finance companies, funeral and

  6  cemetery services, and the securities industry. The head of

  7  the office is the Commissioner of Financial Services.

  8         a.  The office shall include a Division of Financial

  9  Investigations, which shall be headed by a director who is

10  appointed by and serves at the pleasure of the commissioner.

11  The division shall function as a criminal justice agency for

12  purposes of ss. 943.045-943.08 and shall have a separate

13  budget. The division may conduct investigations within or

14  outside this state as the division deems necessary to aid in

15  the enforcement of this section.  If during an investigation

16  the division has reason to believe that any criminal law of

17  this state has or may have been violated, the division shall

18  refer any records tending to show such violation to state or

19  federal law enforcement or prosecutorial agencies and shall

20  provide investigative assistance to those agencies as

21  required.

22         b.(I)  The Commissioner of Financial Services may

23  demand and require full answers on oath from any person or

24  party privy to any account, claim, or demand against or by the

25  state, such as it may be the commissioner's official duty to

26  examine, which answers the commissioner may require to be in

27  writing and to be sworn to before the commissioner or the

28  office or before any judicial officer or clerk of any court of

29  the state so as to enable the commissioner to determine the

30  justice or legality of such account, claim, or demand.

31

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    Florida House of Representatives - 2002                 HB 3-E

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  1         (II)  In exercising authority under this section, the

  2  commissioner or his or her designee may:

  3         i.  Issue subpoenas, administer oaths, and examine

  4  witnesses.

  5         ii.  Require or permit a person to file a statement in

  6  writing, under oath or otherwise as the commissioner or his or

  7  her designee requires, as to all the facts and circumstances

  8  concerning the matter to be audited, examined, or

  9  investigated.

10         (III)  Subpoenas shall be issued by the commissioner or

11  his or her designee under seal commanding such witnesses to

12  appear before the commissioner, the commissioner's

13  representative, or the office at a specified time and place

14  and to bring books, records, and documents as specified or to

15  submit books, records, and documents for inspection. Such

16  subpoenas may be served by an authorized representative of the

17  commissioner or the office.

18         (IV)  In the event of noncompliance with a subpoena

19  issued pursuant to this section, the commissioner or the

20  office may petition the circuit court of the county in which

21  the person subpoenaed resides or has his or her principal

22  place of business for an order requiring the subpoenaed person

23  to appear and testify and to produce books, records, and

24  documents as specified in the subpoena. The court may grant

25  legal, equitable, or injunctive relief, including, but not

26  limited to, issuance of a writ of ne exeat or the restraint by

27  injunction or appointment of a receiver of any transfer,

28  pledge, assignment, or other disposition of such person's

29  assets or any concealment, alteration, destruction, or other

30  disposition of subpoenaed books, records, or documents, as the

31  court deems appropriate, until such person has fully complied

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    Florida House of Representatives - 2002                 HB 3-E

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  1  with such subpoena and the commissioner or the office has

  2  completed the audit, examination, or investigation. The

  3  commissioner or the office is entitled to the summary

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

  5  the cause on its calendar. Costs incurred by the commissioner

  6  or the office to obtain an order granting, in whole or in

  7  part, such petition for enforcement of a subpoena shall be

  8  charged against the subpoenaed person, and failure to comply

  9  with such order shall be a contempt of court.

10         (b)  The Governor and Cabinet, as head of the

11  department, are the agency head as defined in s. 120.52(3) for

12  purposes of the exercise of rulemaking authority under ss.

13  120.536-120.565. For purposes of final orders, as defined in

14  s. 120.52(7), relating to any matters other than the exercise

15  of such rulemaking authority, each commissioner is the agency

16  head for all areas within that commissioner's jurisdiction and

17  shall be responsible for, and take final agency action related

18  to, orders within the regulatory authority delegated to that

19  commissioner's office.

20         (3)  APPOINTMENT AND QUALIFICATIONS OF

21  COMMISSIONERS.--Each commissioner shall be appointed by, and

22  shall serve at the pleasure of, the Governor and Cabinet. The

23  minimum qualifications of the commissioners are as follows:

24         (a)  Prior to appointment as commissioner, the

25  Commissioner of Insurance must have had, within the previous

26  10 years, at least 5 years of responsible private sector

27  experience working full-time in areas within the scope of the

28  subject matter jurisdiction of the Office of the Commissioner

29  of Insurance or at least 5 years of experience as a senior

30  examiner or other senior employee of a state or federal agency

31

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    Florida House of Representatives - 2002                 HB 3-E

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  1  having regulatory responsibility over insurers or insurance

  2  agencies.

  3         (b)  Prior to appointment as commissioner, the

  4  Commissioner of Financial Services must have had, within the

  5  previous 10 years, at least 5 years of responsible private

  6  sector experience working full-time in areas within the

  7  subject matter jurisdiction of the Office of the Commissioner

  8  of Financial Services or at least 5 years of experience as a

  9  senior examiner or other senior employee of a state or federal

10  agency having regulatory responsibility over financial

11  institutions, finance companies, or securities companies.

12         (4)  MICROFILMING AND DESTROYING RECORDS AND

13  CORRESPONDENCE.--

14         (a)  The Department of Insurance and Financial Services

15  may destroy general correspondence files and any other records

16  which the department deems no longer 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         (b)  The Department of Insurance and Financial Services

24  may photograph, microphotograph, or reproduce on film such

25  documents and records as it may select, in such manner that

26  each page will be exposed in exact conformity with the

27  original.

28         (c)  The Department of Insurance and Financial Services

29  may destroy any of said documents after they have been

30  photographed and filed in accordance with the provisions of

31  paragraph (a).

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    Florida House of Representatives - 2002                 HB 3-E

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  1         (d)  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         (5)  DISSEMINATION OF INFORMATION.--The Department of

11  Insurance and Financial Services may disseminate, in any form

12  or manner determined by the department to be appropriate,

13  information regarding the department's official duties.

14         (6)  SEAL.--The Department of Insurance and Financial

15  Services may create and use, exclusively for its purposes, a

16  seal, which shall be copyrighted and or trademarked.

17         Section 5.  Transfers.--

18         (1)  The following programs, including the incumbent

19  employees in the existing positions of such programs on March

20  31, 2002, and all property issued and assigned directly to

21  such employees, are hereby transferred by a type two transfer,

22  as defined in s. 20.06(2), Florida Statutes:

23         (a)  From the Department of Banking and Finance to the

24  Office of Chief Financial Officer, the Financial

25  Accountability for Public Funds Program.

26         (b)  From the Department of Insurance to the Office of

27  Chief Financial Officer:

28         1.  The Treasury Program.

29         2.  The State Fire Marshal Program.

30         3.  The Risk Management Program.

31         4.  The Office of Insurance Consumer Advocate.

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    Florida House of Representatives - 2002                 HB 3-E

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  1         5.  The Division of Insurance Fraud.

  2         6.  The Office of the Treasurer and Administration

  3  Program.

  4         (c)  From the Department of Banking and Finance to the

  5  Department of Insurance and Financial Services:

  6         1.  The Comptroller and Cabinet Affairs Program.

  7         2.  The Financial Institutions Regulatory Program.

  8         (d)  From the Department of Insurance to the Department

  9  of Insurance and Financial Services, the Insurance Regulation

10  and Consumer Protection Program, except the Division of

11  Insurance Fraud and the Office of Insurance Consumer Advocate

12  are transferred as provided in paragraph (b).

13

14  For the purposes of this subsection, employees transferred to

15  the Office of the Chief Financial Officer, to the Department

16  of Insurance and Financial Services, and to the Department of

17  Law Enforcement shall not be considered new employees for the

18  purpose of subjecting such employees to an employee

19  probationary period. Each transferring agency shall prepare an

20  inventory of all property which, on February 25, 2002, had

21  been assigned to each budget entity and shall submit such

22  inventory to the executive director of the Department of

23  Insurance and Financial Services by August 1, 2002.

24         (2)  The following trust funds are transferred:

25         (a)  From the Department of Banking and Finance to the

26  Office of the Chief Financial Officer:

27         1.  Child Support Depository Trust Fund, FLAIR number

28  44-2-080

29         2.  Child Support Clearing Trust Fund, FLAIR number

30  44-2-081.

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    Florida House of Representatives - 2002                 HB 3-E

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  1         3.  Collections Internal Revenue Clearing Trust Fund,

  2  FLAIR number 44-2-101.

  3         4.  Consolidated Miscellaneous Deduction Clearing Trust

  4  Fund, FLAIR number 44-2-139.

  5         5.  Consolidated Payment Trust Fund, FLAIR number

  6  44-2-140

  7         6.  Electronic Funds Transfer Clearing Trust Fund,

  8  FLAIR number 44-2-188.

  9         7.  Employee Refund Clearing Trust Fund, FLAIR number

10  44-2-194.

11         8.  Federal Tax Levy Clearing Trust Fund, FLAIR number

12  44-2-274.

13         9.  Federal Use of State Lands Trust Fund, FLAIR number

14  44-2-307.

15         10.  Florida Retirement Clearing Trust Fund, FLAIR

16  number 44-2-323.

17         11.  Hospital Insurance Tax Clearing Trust Fund, FLAIR

18  number 44-2-370.

19         12.  Miscellaneous Deductions Restoration Trust Fund,

20  FLAIR number 44-2-577.

21         13.  Prison Industries Trust Fund, FLAIR number

22  44-2-385.

23         14.  Social Security Clearing Trust Fund, FLAIR number

24  44-2-643.

25         15.  Tobacco Settlement Clearing Trust Fund, FLAIR

26  number 44-2-123.

27         16.  Trust Funds Trust Fund, FLAIR number 44-2-732.

28         17.  Unclaimed Property Trust Fund, FLAIR number

29  44-2-007

30         (b)  From the Department of Insurance to the Office of

31  Chief Financial Officer:

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  1         1.  Florida Casualty Insurance Risk Management Trust

  2  Fund, FLAIR number 46-2-078.

  3         2.  Government Employees Deferred Compensation Trust

  4  Fund, FLAIR number 46-2-155.

  5         3.  Rehabilitation Administrative Expense Trust Fund,

  6  FLAIR number 46-2-582.

  7         4.  State Treasurer Escrow Trust Fund, FLAIR number

  8  46-2-622.

  9         5.  Treasurer's Administrative And Investment Trust

10  Fund, FLAIR number 46-2-725.

11         6.  Treasury Cash Deposit Trust Fund, FLAIR number

12  46-2-720.

13         7.  Treasurer Investment Trust Fund, FLAIR number

14  46-2-728.

15         (c)  From the Department of Banking and Finance to the

16  Department of Insurance and Financial Services:

17         1.  Administrative Trust Fund, FLAIR number 44-2-021,

18  except the moneys in fund account number 44-2-021003 are

19  transferred from the Department of Banking and Finance to the

20  Office of Chief Financial Officer.

21         2.  Anti-Fraud Trust Fund, FLAIR number 44-2-038.

22         3.  Comptroller's Federal Equitable Sharing Trust Fund,

23  FLAIR number 44-2-719.

24         4.  Financial Institutions' Regulatory Trust Fund,

25  FLAIR number 44-2-275.

26         5.  Mortgage Brokerage Guaranty Trust Fund, FLAIR

27  number 44-2-485.

28         6.  Preneed Funeral Contract Consumer Protection Trust

29  Fund, FLAIR number 44-2-536.

30         7.  Regulatory Trust Fund, FLAIR number 44-2-573.

31         8.  Securities Guaranty Fund, FLAIR number 44-2-626.

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  1         9.  Working Capital Trust Fund, FLAIR number 44-2-792.

  2         (d)  From the Department of Insurance to the Department

  3  of Insurance and Financial Services, except as provided:

  4         1.  Agents and Solicitors County Tax Trust Fund, FLAIR

  5  number 46-2-024.

  6         2.  Insurance Commissioner's Regulatory Trust Fund,

  7  FLAIR number 46-2-393.

  8         (3)  EFFECTIVE DATE.--This section shall take effect

  9  January 7, 2003.

10         Section 6.  (1)  Effective January 7, 2003, the rules

11  of the Department of Banking and Finance and of the Department

12  of Insurance that were in effect on January 6, 2003, shall

13  become rules of the Department of Insurance and Financial

14  Services and shall remain in effect until specifically amended

15  or repealed in the manner provided by law.

16         (2)  Notwithstanding subsection (1):

17         (a)  Any such rules that relate to the constitutional

18  functions of the Comptroller or the Treasurer shall instead

19  become rules of the Office of Chief Financial Officer and

20  shall remain in effect until amended or repealed in the manner

21  provided by law.

22         (b)  Any such rules that relate to functions assigned

23  by this act to the Office of Chief Financial Officer shall

24  instead become rules of the Chief Financial Officer and shall

25  remain in effect until amended or repealed in the manner

26  provided by law.

27         Section 7.  (1)  This act shall not affect the validity

28  of any judicial or administrative action involving the

29  Department of Banking and Finance or the Department of

30  Insurance pending on January 7, 2003, and the Department of

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    Florida House of Representatives - 2002                 HB 3-E

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  1  Insurance and Financial Services shall be substituted as a

  2  party in interest in any such action.

  3         (2)  Notwithstanding subsection (1), if the action

  4  involves the constitutional functions of the Comptroller or

  5  Treasurer or duties assigned by this act to the Office of

  6  Chief Financial Officer, the Office of Chief Financial Officer

  7  shall instead be substituted as a party in interest.

  8         Section 8.  Transitional provisions.--

  9         (1)  The office of executive director of the Department

10  of Insurance and Financial Services is created effective July

11  1, 2002. By no later than August 1, 2002, the Governor and

12  Cabinet shall appoint a person, subject to confirmation by the

13  Senate, who will serve as the executive director of the

14  department. However, until the creation of the department

15  takes effect on January 7, 2003, that person shall serve as

16  the head of the Office of Transition Management under

17  subsection (2).

18         (2)(a)  There is created the Office of Transition

19  Management. The office shall function independently but shall

20  for administrative purposes be treated as an office of the

21  Executive Office of the Governor.

22         (b)  The head of the office is the executive director

23  appointed pursuant to subsection (1), who shall serve at the

24  pleasure of the Governor and Cabinet.

25         (c)  The office shall manage the transition to the new

26  Department of Insurance and Financial Services and the new

27  Office of Chief Financial Officer. The management duties of

28  the office shall include, but not be limited to:

29         1.  Ensuring that, by no later than January 7, 2003,

30  all positions within the Office of the Commissioner of

31  Insurance and the Office of the Commissioner of Financial

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    Florida House of Representatives - 2002                 HB 3-E

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  1  Services, including all senior management positions, are

  2  occupied by qualified persons.

  3         2.  Providing written recommendations to the

  4  Legislature by no later than February 1, 2003, as to statutory

  5  changes that are necessary or desirable to facilitate the

  6  operations of the department. These recommendations shall

  7  include, but not be limited to, detailed legislative

  8  recommendations regarding rulemaking procedures for the

  9  Department of Insurance and Financial Services, including

10  proposals to streamline the rulemaking process and proposals

11  regarding adoption of emergency rules.

12         3.  Providing a written report that specifies the

13  placement of those positions that are transferred to the

14  Office of Chief Financial Officer and transferred to the

15  Department of Insurance and Financial Services under this act.

16  The office shall provide the report to the Governor, the

17  President of the Senate, the Speaker of the House of

18  Representatives, and the chair of each fiscal committee or

19  council of the Senate and the House of Representatives.

20         4.  Taking action in advance on personnel, purchasing,

21  and administrative matters.

22         5.  Submitting to the Governor and Cabinet a proposed

23  organizational plan for the Department of Insurance and

24  Financial Services, which plan the Governor and Cabinet may

25  adopt by rule.

26         6.  Providing monthly written transition status reports

27  to the President of the Senate and the Speaker of the House of

28  Representatives.

29         7.  Providing such other information as may be

30  requested by members or staff of the Legislature.

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    Florida House of Representatives - 2002                 HB 3-E

    593-155C-02E






  1         (d)  The Department of Banking and Finance, the

  2  Department of Insurance, the Office of the Comptroller, and

  3  the Office of the Treasurer shall fully cooperate with the

  4  Office of Transition Management and shall promptly provide the

  5  office with any requested information.

  6         (e)  Funding for the Office of Transition Management

  7  shall be as provided in the General Appropriations Act or as

  8  otherwise provided pursuant to law.

  9         Section 9.  Legislative intent; construction.--

10         (1)  It is the intent of the Legislature that,

11  beginning on January 7, 2003:

12         (a)  References to the Department of Insurance, to the

13  Insurance Commissioner, and to the Insurance Commissioner and

14  Treasurer, within the Florida Insurance Code and elsewhere in

15  the Florida Statutes and the Florida Administrative Code,

16  shall be construed as references to the Office of the

17  Commissioner of Insurance created by s. 20.131, Florida

18  Statutes. However, with respect only to functions specifically

19  assigned by this act to the Chief Financial Officer, such

20  references and references to the Treasurer shall be construed

21  as references to the Office of Chief Financial Officer.

22         (b)  References to the Department of Banking and

23  Finance and to the Comptroller, within the Financial

24  Institutions Codes and elsewhere in the Florida Statutes and

25  the Florida Administrative Code, shall be construed as

26  references to the Office of the Commissioner of Financial

27  Services created by s. 20.131, Florida Statutes. However, with

28  respect to functions specifically assigned by this act to the

29  Office of Chief Financial Officer, such references shall be

30  construed as references to the Office of Chief Financial

31  Officer.

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    Florida House of Representatives - 2002                 HB 3-E

    593-155C-02E






  1         (2)  The Legislature recognizes that there is a need to

  2  conform the Florida Statutes to the policy decisions reflected

  3  in this act and that there is a need to resolve apparent

  4  conflicts between any other legislation that has been or may

  5  be enacted during 2002 and the creation by this act of the

  6  Department of Insurance and Financial Services, the Office of

  7  the Commissioner of Insurance, the Office of the Commissioner

  8  of Financial Services, and the Office of Chief Financial

  9  Officer. Therefore, in the interim between this act becoming a

10  law and the 2003 Regular Session of the Legislature or an

11  earlier special session addressing this issue, the Division of

12  Statutory Revision shall provide the relevant substantive

13  committees of the Senate and the House of Representatives with

14  assistance, upon request, to enable such committees to prepare

15  draft legislation to conform the Florida Statutes and any

16  legislation enacted during 2002 to the provisions of ss.

17  20.121 and 20.131, Florida Statutes, as created by this act.

18         Section 10.  This act shall take effect upon becoming a

19  law.

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    Florida House of Representatives - 2002                 HB 3-E

    593-155C-02E






  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Creates the Office of Chief Financial Officer with the
  4    Chief Financial Officer as head of the office. Specifies
      powers and duties of the Chief Financial Officer. Creates
  5    divisions within the office. Creates the Department of
      Insurance and Financial Services and provides for
  6    departmental structure. Creates the Offices of
      Commissioner of Insurance and Commissioner of Financial
  7    Services. Provides for appointment and specifies
      qualifications for each commissioner. Provides
  8    jurisdiction for each commissioner's office and the
      Governor and Cabinet. Specifies powers and duties of the
  9    Department of Insurance and Financial Services relating
      to public records. Transfers programs, including
10    employees and equipment, from the Department of Banking
      and Finance and the Department of Insurance to the Office
11    of Chief Financial Officer and the Department of
      Insurance and Financial Services. Requires transferring
12    agencies to prepare and submit property inventories to
      the Department of Insurance and Financial Services.
13    Transfers trust funds from the Department of Banking and
      Finance and the Department of Insurance to the Office of
14    Chief Financial Officer and the Department of Insurance
      and Financial Services. Specifies that rules of the
15    Department of Banking and Finance and the Department of
      Insurance become rules of the Department of Insurance and
16    Financial Services and the Office of Chief Financial
      Officer. Preserves the validity of judicial or
17    administrative actions involving such departments and
      provides for substitution of parties in interest in such
18    actions. Creates the office of executive director of the
      Department of Insurance and Financial Services, provides
19    for appointment of the executive director, and provides
      for the executive director to serve as the head of a
20    created Office of Transition Management.

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