House Bill hb0003Ee1

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                                           HB 3-E, First Engrossed



  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         Financial Services; creating s. 20.121, F.S.;

  8         creating the Department of Financial Services;

  9         specifying the Chief Financial Officer as the

10         head of the department; providing for

11         departmental structure; creating the Financial

12         Services Commission; providing commission

13         composition, structure, and powers;

14         establishing the Office of Insurance Regulation

15         and the Office of Financial Institutions and

16         Securities Regulation within the commission;

17         providing powers, duties, and responsibilities

18         of such offices; requiring the commission to

19         establish certain additional organizational

20         structure of such offices; providing for

21         appointment and specifying qualifications of

22         directors of such offices; providing for

23         administrative support for such offices;

24         transferring certain programs, including

25         employees and equipment, from the Department of

26         Banking and Finance and the Department of

27         Insurance to the Department of Financial

28         Services, the Office of Insurance Regulation,

29         and the Office of Financial Institutions and

30         Securities Regulation; transferring certain

31         trust funds from the Department of Banking and


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                                           HB 3-E, First Engrossed



 1         Finance and the Department of Insurance to the

 2         Department of Financial Services, the Office of

 3         Insurance Regulation, and the Office of

 4         Financial Institutions and Securities

 5         Regulation; specifying that certain statutory

 6         appointment responsibilities vested by law in

 7         certain officers are the responsibility of the

 8         Chief Financial Officer; specifying that rules

 9         of the Department of Banking and Finance and

10         the Department of Insurance become rules of the

11         Department of Financial Services or the

12         Financial Services Commission; providing for

13         preservation of validity of judicial or

14         administrative actions involving such

15         departments; providing for substitution of

16         certain parties in interest in such actions;

17         creating the Committee of Transition

18         Management; providing for independent function;

19         providing for treatment for administrative

20         purposes as an office of the Executive Office

21         of the Governor; providing for appointment of

22         committee members; specifying powers and duties

23         of the committee; requiring certain reports,

24         proposed organizational plans, and written

25         recommendations to the Financial Services

26         Commission and the Legislature; providing

27         additional legislative intent relating to

28         statutory responsibility for certain

29         appointments becoming the responsibility of the

30         Chief Financial Officer or the Financial

31         Services Commission; providing for conforming


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                                           HB 3-E, First Engrossed



 1         legislation; providing for assistance of

 2         certain legislative substantive committees by

 3         the Division of Statutory Revision for certain

 4         purposes; amending s. 1, ch. 2002-194, Laws of

 5         Florida; providing an exception to a transfer

 6         provided for in said act; amending s. 288.99,

 7         F.S.; redefining the terms "early stage

 8         technology business" and "qualified

 9         distribution"; defining the terms "Program One"

10         and "Program Two"; revising procedures and

11         dates for certification and decertification

12         under Program One and Program Two; revising the

13         process for earning premium tax credits;

14         providing a limitation on tax credits under

15         Program Two; providing for distributions under

16         both programs; requiring the Department of

17         Revenue to adopt certain rules; providing for

18         additional premium; providing for additional

19         allocations of certain insurance premium tax

20         credits under certain circumstances;

21         authorizing the Department of Revenue to adopt

22         rules; amending s. 517.12, Florida Statutes;

23         exempting general lines insurance agents and

24         life insurance agents from registration

25         requirements relating to sales of certain

26         securities in certain circumstances; amending

27         s. 570.07, F.S.; specifying emergency powers of

28         the Commissioner of Agriculture; amending s.

29         624.91, F.S.; revising provisions of the

30         Florida Healthy Kids Corporation Act, to

31         conform; creating ss. 633.801, 633.802,


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                                           HB 3-E, First Engrossed



 1         633.803, 633.804, 633.805, 633.806, 633.807,

 2         633.808, 633.809, 633.810, 633.811, 633.812,

 3         633.813, 633.814, 633.815, 633.816, 633.817,

 4         633.818, 633.819, 633.820, and 633.821, F.S.;

 5         providing a short title; providing definitions;

 6         providing legislative intent; authorizing the

 7         Division of State Fire Marshal of the

 8         Department of Insurance to adopt rules related

 9         to firefighter safety inspections; requiring

10         the division to conduct a study of firefighter

11         occupational diseases; authorizing

12         representatives of the division to enter and

13         inspect any place of firefighter employment;

14         requiring firefighter employers to provide safe

15         employment conditions; authorizing the division

16         to adopt rules that prescribe means for

17         preventing accidents in places of firefighter

18         employment and establish standards for

19         construction, repair, and maintenance;

20         requiring the division to inspect places of

21         firefighter employment and to develop safety

22         and health programs for those firefighter

23         employers whose employees have a high frequency

24         or severity of work-related injuries; requiring

25         certain firefighter employers to establish

26         workplace safety committees and to maintain

27         certain records; providing penalties for

28         firefighter employers who violate provisions of

29         the act; providing exemptions; providing a

30         penalty for the failure to implement a safety

31         and health program and cancellations; providing


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                                           HB 3-E, First Engrossed



 1         for expenses of administration; providing

 2         penalties for refusal to admit division;

 3         specifying firefighter employee rights and

 4         responsibilities; providing division remedies

 5         for failure to comply; providing penalties for

 6         firefighter employers who make false statements

 7         to the division or to an insurer; providing

 8         criminal penalties for false, malicious, or

 9         fraudulent statements and representatives;

10         specifying applicability to volunteer

11         firefighters and fire departments; providing

12         for workplace safety and to authorize the

13         division to adopt rules including federal

14         standards for assuring safe working conditions

15         for all firefighter employees; amending s.

16         633.31, F.S.; changing the name of and

17         expanding and diversifying the Firefighters

18         Standards and Training Council; amending s.

19         633.33, F.S.; providing additional duties of

20         the council; amending ss. 383.3362, 633.330,

21         and 633.32, F.S.; conforming language;

22         providing a declaration of important state

23         interest;  amending s. 163.05, F.S.; revising

24         legislative findings; providing criteria for

25         contracts between the Commissioner of

26         Agriculture and program providers; deleting

27         responsibilities of the Comptroller and the

28         Legislative Committee on Intergovernmental

29         Relations; authorizing the Commissioner of

30         Agriculture to award contracts to provide

31         assistance to small counties; requiring the


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                                           HB 3-E, First Engrossed



 1         Commissioner of Agriculture to provide fiscal

 2         oversight and performance reviews; providing an

 3         appropriation; providing effective dates.

 4  

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

 6  

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

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

 9         20.04  Structure of executive branch.--The executive

10  branch of state government is structured as follows:

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

12  except for the Department of Financial Services Banking and

13  Finance, the Department of Children and Family Services, the

14  Department of Corrections, the Department of Management

15  Services, the Department of Revenue, and the Department of

16  Transportation, must adhere to the following standard terms:

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

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

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

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

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

22  Each section is headed by an "administrator."

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

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

25  "supervisors."

26         Section 2.  Effective January 7, 2003, section 20.121,

27  Florida Statutes, is created to read:

28         20.121  Department of Financial Services.--There is

29  created a Department of Financial Services.

30         (1)  DEPARTMENT HEAD.--The head of the Department of

31  Financial Services is the Chief Financial Officer.


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                                           HB 3-E, First Engrossed



 1         (2)  DIVISIONS.--The Department of Financial Services

 2  shall consist of the following divisions:

 3         (a)  The Division of Accounting and Auditing, which

 4  shall include the following bureau and office:

 5         1.  The Bureau of Unclaimed Property.

 6         2.  The Office of Fiscal Integrity which shall function

 7  as a criminal justice agency for purposes of ss.

 8  943.045-943.08 and shall have a separate budget. The office

 9  may conduct investigations within or outside this state as the

10  bureau deems necessary to aid in the enforcement of this

11  section.  If during an investigation the office has reason to

12  believe that any criminal law of this state has or may have

13  been violated, the office shall refer any records tending to

14  show such violation to state or federal law enforcement or

15  prosecutorial agencies and shall provide investigative

16  assistance to those agencies as required.

17         (b)  The Division of State Fire Marshal.

18         (c)  The Division of Risk Management.

19         (d)  The Division of Treasury, which shall include a

20  Bureau of Deferred Compensation responsible for administering

21  the Government Employees Deferred Compensation Plan

22  established under s. 112.215 for state employees.

23         (e)  The Division of Insurance Fraud.

24         (f)  The Division of Rehabilitation and Liquidation.

25         (g)  The Division of Insurance Agents and Agency

26  Services.

27         (h)  The Division of Consumer Services, which shall

28  include a Bureau of Funeral and Cemetery Services.

29         (i)  The Division of Workers' Compensation.

30         (j)  The Division of Administration.

31         (k)  The Division of Legal Services.


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                                           HB 3-E, First Engrossed



 1         (l)  The Division of Information Systems.

 2         (m)  The Office of Insurance Consumer Advocate.

 3         (3)  FINANCIAL SERVICES COMMISSION.--Effective January

 4  7, 2003, there is created within the Department of Financial

 5  Services the Financial Services Commission, composed of the

 6  Governor, the Attorney General, the Chief Financial Officer,

 7  and the Commissioner of Agriculture, which shall for purposes

 8  of this section be referred to as the commission.  Commission

 9  members shall serve as agency head of the Financial Services

10  Commission.  The commission shall be a separate budget entity

11  and shall be exempt from the provisions of s. 20.052.

12  Commission action shall be by majority vote consisting of at

13  least three affirmative votes.  The commission shall not be

14  subject to control, supervision, or direction by the

15  Department of Financial Services in any manner, including

16  purchasing, transactions involving real or personal property,

17  personnel, or budgetary matters.

18         (a)  STRUCTURE.--The major structural unit of the

19  commission is the office.  Each office shall be headed by a

20  director. The following offices are established:

21         1.  The Office of Insurance Regulation, which shall be

22  responsible for all activities concerning insurers and other

23  risk bearing entities, including licensing, rates, policy

24  forms, market conduct, claims, adjusters, issuance of

25  certificates of authority, solvency, viatical settlements,

26  premium financing, and administrative supervision, as provided

27  under the Insurance Code or chapter 636. The head of the

28  Office of Insurance Regulation is the Director of the Office

29  of Insurance Regulation.

30         2.  The Office of Financial Institutions and Securities

31  Regulation, which shall be responsible for all activities of


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                                           HB 3-E, First Engrossed



 1  the Financial Services Commission relating to the regulation

 2  of banks, credit unions, other financial institutions, finance

 3  companies, and the securities industry.  The head of the

 4  office is the Director of the Office of Financial Institutions

 5  and Securities Regulation. The Office of Financial

 6  Institutions and Securities Regulation shall include a Bureau

 7  of Financial Investigations, which shall function as a

 8  criminal justice agency for purposes of ss. 943.045-943.08 and

 9  shall have a separate budget.  The bureau may conduct

10  investigations within or outside this state as the bureau

11  deems necessary to aid in the enforcement of this section. If,

12  during an investigation, the office has reason to believe that

13  any criminal law of this state has or may have been violated,

14  the office shall refer any records tending to show such

15  violation to state or federal law enforcement or prosecutorial

16  agencies and shall provide investigative assistance to those

17  agencies as required.

18         (b)  ORGANIZATION.--The commission shall establish by

19  rule any additional organizational structure of the offices.

20  It is the intent of the Legislature to provide the commission

21  with the flexibility to organize the offices in any manner

22  they determine appropriate to promote both efficiency and

23  accountability.

24         (c)  POWERS.--Commission members shall serve as the

25  agency head for purposes of rulemaking under ss.

26  120.536-120.565 by the commission and all subunits of the

27  commission.  Each director is agency head for purposes of

28  final agency action under chapter 120 for all areas within the

29  regulatory authority delegated to the director's office.

30         (d)  APPOINTMENT AND QUALIFICATIONS OF DIRECTORS.--The

31  commission shall appoint or remove each director by a majority


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                                           HB 3-E, First Engrossed



 1  vote consisting of at least three affirmative votes, with both

 2  the Governor and the Chief Financial Officer on the prevailing

 3  side. The minimum qualifications of the directors are as

 4  follows:

 5         1.  Prior to appointment as director, the director of

 6  the Office of Insurance Regulation must have had, within the

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

 8  sector experience working full-time in areas within the scope

 9  of the subject matter jurisdiction of the Office of Insurance

10  Regulation or at least 5 years of experience as a senior

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

12  having regulatory responsibility over insurers or insurance

13  agencies.

14         2.  Prior to appointment as director, the director of

15  the Office of Financial Institutions and Securities Regulation

16  must have had, within the previous 10 years, at least 5 years

17  of responsible private sector experience working full-time in

18  areas within the subject matter jurisdiction of the Office of

19  Financial Institutions and Securities Regulation or at least 5

20  years of experience as a senior examiner or other senior

21  employee of a state or federal agency having regulatory

22  responsibility over financial institutions, finance companies,

23  or securities companies.

24         (e)  ADMINISTRATIVE SUPPORT.--The offices shall have a

25  sufficient number of attorneys, examiners, investigators,

26  other professional personnel to carry out their

27  responsibilities and administrative personnel as determined

28  annually in the appropriations process.  The Department of

29  Financial Services shall provide administrative and

30  information systems support to the offices.

31         Section 3.  Transfers.--


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                                           HB 3-E, First Engrossed



 1         (1)  The following programs, including the incumbent

 2  employees in the existing positions of such programs on

 3  January 6, 2003, and all property issued and assigned directly

 4  to such employees, are hereby transferred by a type two

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

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

 7  Department of Financial Services:

 8         1.  The Financial Accountability for Public Funds

 9  Program.

10         2.  The Comptroller and Cabinet Affairs Program.

11         3.  The Bureau of Funeral and Cemetery Services.

12         (b)  From the Department of Insurance to the Department

13  of Financial Services:

14         1.  The Treasury Program.

15         2.  The State Fire Marshal Program.

16         3.  The Risk Management Program.

17         4.  The Office of Insurance Consumer Advocate.

18         5.  The Division of Insurance Fraud.

19         6.  The Division of Rehabilitation and Liquidation.

20         7.  The Division of Agents and Agencies Services,

21  except for those portions of the division that implement

22  functions assigned to the Office of Insurance Regulation under

23  s. 20.121(3)(a)1., Florida Statutes, as created by this act.

24         8.  The Division of Insurance Consumer Services, which

25  is renamed the Division of Consumer Services.

26         9.  The Division of Legal Services, except for those

27  positions whose responsibilities involve the functions

28  assigned to the Office of Insurance Regulation.

29         10.  The Division of Information Systems.

30  

31  


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                                           HB 3-E, First Engrossed



 1         11.  The Office of the Treasurer, the Administration

 2  Program, and the Office of the Chief of Staff of the

 3  Treasurer.

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

 5  Office of Financial Institutions and Securities Regulation,

 6  the Financial Institutions Regulatory Program.

 7         (d)  From the Department of Insurance to the Office of

 8  Insurance Regulation:

 9         1.  The Division of Insurer Services.

10         2.  Those portions of the Division of Agents and Agency

11  Services that implement functions assigned to the Office of

12  Insurance Regulation under s. 20.121(3)(a)1., Florida

13  Statutes, as created by this act.

14         3.  Those positions within the Division of Legal

15  Services that are not transferred to the Department of

16  Financial Services under subparagraph (b)9.

17  

18  For the purposes of this section, employees transferred from

19  the Department of Banking and Finance and the Department of

20  Insurance to the Department of Financial Services or the

21  Financial Services Commission shall not be considered new

22  employees for the purpose of subjecting such employees to an

23  employee probationary period.

24         (2)  That portion of the Division of Workers'

25  Compensation transferred pursuant to chapter 2002-194, Laws of

26  Florida, to the Department of Insurance, including the

27  incumbent employees in the existing positions of such division

28  on January 6, 2003, and all property issued and assigned

29  directly to such employees, are transferred by a type two

30  transfer, as defined in s. 20.06(2), Florida Statutes, from

31  


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                                           HB 3-E, First Engrossed



 1  the Department of Insurance to the Department of Financial

 2  Services.

 3         (3)  The following trust funds are transferred:

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

 5  Department of Financial Services:

 6         1.  The Child Support Depository Trust Fund, FLAIR

 7  number 44-2-080.

 8         2.  The Child Support Clearing Trust Fund, FLAIR number

 9  44-2-081.

10         3.  The Collections Internal Revenue Clearing Trust

11  Fund, FLAIR number 44-2-101.

12         4.  The Consolidated Miscellaneous Deduction Clearing

13  Trust Fund, FLAIR number 44-2-139.

14         5.  The Consolidated Payment Trust Fund, FLAIR number

15  44-2-140.

16         6.  The Electronic Funds Transfer Clearing Trust Fund,

17  FLAIR number 44-2-188.

18         7.  The Employee Refund Clearing Trust Fund, FLAIR

19  number 44-2-194.

20         8.  The Federal Tax Levy Clearing Trust Fund, FLAIR

21  number 44-2-274.

22         9.  The Federal Use of State Lands Trust Fund, FLAIR

23  number 44-2-307.

24         10.  The Florida Retirement Clearing Trust Fund, FLAIR

25  number 44-2-323.

26         11.  The Hospital Insurance Tax Clearing Trust Fund,

27  FLAIR number 44-2-370.

28         12.  The Miscellaneous Deductions Restoration Trust

29  Fund, FLAIR number 44-2-577.

30         13.  The Preneed Funeral Contract Consumer Protection

31  Trust Fund, FLAIR number 44-2-536.


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                                           HB 3-E, First Engrossed



 1         14.  The Prison Industries Trust Fund, FLAIR number

 2  44-2-385.

 3         15.  The Social Security Clearing Trust Fund, FLAIR

 4  number 44-2-643.

 5         16.  The Tobacco Settlement Clearing Trust Fund, FLAIR

 6  number 44-2-123.

 7         17.  The Trust Funds Trust Fund, FLAIR number 44-2-732.

 8         18.  The Unclaimed Property Trust Fund, FLAIR number

 9  44-2-007.

10         19.  The Working Capital Trust Fund, FLAIR number

11  44-2-792.

12         (b)  From the Department of Insurance to the Department

13  of Financial Services:

14         1.  The Agents and Solicitors County Tax Trust Fund,

15  FLAIR number 46-2-024.

16         2.  The Florida Casualty Insurance Risk Management

17  Trust Fund, FLAIR number 46-2-078.

18         3.  The Government Employees Deferred Compensation

19  Trust Fund, FLAIR number 46-2-155.

20         4.  The Rehabilitation Administrative Expense Trust

21  Fund, FLAIR number 46-2-582.

22         5.  The Special Disability Trust Fund, FLAIR number

23  46-2-798.

24         6.  The State Treasurer Escrow Trust Fund, FLAIR number

25  46-2-622.

26         7.  The Treasurer's Administrative And Investment Trust

27  Fund, FLAIR number 46-2-725.

28         8.  The Treasury Cash Deposit Trust Fund, FLAIR number

29  46-2-720.

30         9.  The Treasurer Investment Trust Fund, FLAIR number

31  46-2-728.


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                                           HB 3-E, First Engrossed



 1         10.  The Workers' Compensation Administration Trust

 2  Fund, FLAIR number 46-2-795.

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

 4  Office of Financial Institutions and Securities Regulation

 5  within the Department of Financial Services:

 6         1.  The Administrative Trust Fund, FLAIR number

 7  44-2-021, except the moneys in fund account number 44-2-021003

 8  are transferred from the Department of Banking and Finance to

 9  the Office of Chief Financial Officer.

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

11         3.  The Comptroller's Federal Equitable Sharing Trust

12  Fund, FLAIR number 44-2-719.

13         4.  The Financial Institutions' Regulatory Trust Fund,

14  FLAIR number 44-2-275.

15         5.  The Mortgage Brokerage Guaranty Trust Fund, FLAIR

16  number 44-2-485.

17         6.  The Regulatory Trust Fund, FLAIR number 44-2-573.

18         7.  The Securities Guaranty Fund, FLAIR number

19  44-2-626.

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

21  of Financial Services, the Insurance Commissioner's Regulatory

22  Trust Fund, FLAIR number 46-2-393. There is created within the

23  trust fund a subaccount for purposes of funding the Office of

24  Insurance Regulation.

25         (4)  The authority to make appointments to the Citizens

26  Property Insurance Corporation shall remain with the Chief

27  Financial Officer as provided in Committee Substitute for

28  Senate Bill 1418 as enacted by the Legislature in the 2002

29  Regular Session.

30         (5)  This section shall take effect January 7, 2003.

31  


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                                           HB 3-E, First Engrossed



 1         Section 4.  (1)  Effective January 7, 2003, the rules

 2  of the Department of Banking and Finance and of the Department

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

 4  become rules of the Department of Financial Services or the

 5  Financial Services Commission as is appropriate to the

 6  corresponding regulatory or constitutional function and shall

 7  remain in effect until specifically amended or repealed in the

 8  manner provided by law.

 9         Section 5.  (1)  This act shall not affect the validity

10  of any judicial or administrative action involving the

11  Department of Banking and Finance or the Department of

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

13  Financial Services, or the Financial Services Commission, or

14  the respective office, shall be substituted as a party in

15  interest in any such action.

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

17  involves the constitutional functions of the Comptroller or

18  Treasurer, the Chief Financial Officer shall instead be

19  substituted as a party in interest.

20         Section 6.  Transitional provisions.--

21         (1)(a)  There is created the Committee of Transition

22  Management. The committee shall function independently but

23  shall for administrative purposes be treated as an office of

24  the Executive Office of the Governor.

25         (b)  The Governor, the Comptroller, the Treasurer, the

26  chair of the House Fiscal Responsibility Council, and the

27  chair of the Senate Appropriations Committee shall each

28  appoint one member to the committee.

29         (c)  The committee shall oversee the transition to the

30  new Department of Financial Services and the new Financial

31  


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                                           HB 3-E, First Engrossed



 1  Services Commission. The management duties of the office shall

 2  include, but not be limited to:

 3         1.  Providing a written report that specifies the

 4  placement of those positions that are transferred to the Chief

 5  Financial Officer, the Department of Financial Services, and

 6  the Offices of the Financial Services Commission under this

 7  act. The committee shall provide the report to the Governor,

 8  the Cabinet, the President of the Senate, the Speaker of the

 9  House of Representatives, the chair of the House Fiscal

10  Responsibility Council, and the chair of the Senate

11  Appropriations Committee.

12         2.  Submitting to the Financial Services Commission a

13  proposed organizational plan for the commission, which plan

14  the commission may adopt by rule.

15         3.  Providing written recommendations to the

16  commission, the President of the Senate, and the Speaker of

17  the House of Representatives, by no later than February 1,

18  2003, as to statutory changes that are necessary or desirable

19  to facilitate the operations of the department.

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

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

22  the Office of the Treasurer shall fully cooperate with the

23  Committee of Transition Management and shall promptly provide

24  the office with any requested information.

25         Section 7.  Notwithstanding the provisions of ss.

26  216.292 and 216.351, Florida Statutes, upon approval by the

27  Legislative Budget Committee, the Executive Office of the

28  Governor may transfer funds and positions between agencies to

29  implement this act.

30         Section 8.  Conforming legislation.--The Legislature

31  recognizes that there is a need to conform the Florida


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                                           HB 3-E, First Engrossed



 1  Statutes to the policy decisions reflected in this act and

 2  that there is a need to resolve apparent conflicts between any

 3  other legislation that has been or may be enacted during 2002

 4  and the creation by this act of the Department of Financial

 5  Services, the Office of Insurance Regulation, the Office of

 6  Financial Institutions and Securities Regulation, and the

 7  Chief Financial Officer. Therefore, in the interim between

 8  this act becoming a law and the 2003 Regular Session of the

 9  Legislature or an earlier special session addressing this

10  issue, the Division of Statutory Revision shall provide the

11  relevant substantive committees of the Senate and the House of

12  Representatives with assistance, upon request, to enable such

13  committees to prepare draft legislation to conform the Florida

14  Statutes and any legislation enacted during 2002 to the

15  provisions of s. 20.121, Florida Statutes, as created by this

16  act. It is specifically the intent of the Legislature that,

17  until June 1, 2003, the statutory responsibility for

18  appointments to commissions, boards, associations, councils,

19  committees, or other collegial bodies now vested in the

20  Comptroller, the Treasurer, the Insurance Commissioner, or the

21  State FIre Marshal shall become the responsibility of the

22  Chief Financial Officer. 

23         Section 9.  Effective July 1, 2002, subsection 1 of

24  section 1. of chapter 2002-194, Laws of Florida, is amended to

25  read:

26         Section 1.  (1)  All powers, duties, functions, rules,

27  records, personnel, property, and unexpended balances of

28  appropriations, allocations, and other funds of the Division

29  of Workers' Compensation are transferred by a type two

30  transfer, as defined in s. 20.06(2), Florida Statutes, from

31  the Department of Labor and Employment Security to the


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                                           HB 3-E, First Engrossed



 1  Department of Insurance, except as otherwise provided in this

 2  subsection, as follows: the full-time equivalent positions and

 3  the associated funding for salaries, benefits, other capital

 4  outlay, and expenses related to oversight of medical services

 5  in workers' compensation provider relations, dispute and

 6  complaint resolution, program evaluation, data review and

 7  analysis data management, and review of carrier medical bill

 8  payments on issues which are jurisdictionally governed by the

 9  Agency for Health Care Administration, including, but not

10  limited to, the duties in s. 440.13(3), (7), (8), (11)(a),

11  (11)(c), (12), (13), and (14), Florida Statutes, are

12  transferred by a type two transfer, as defined in s. 20.06(2),

13  Florida Statutes, from the Department of Labor and Employment

14  Security to the Agency for Health Care Administration; the

15  full-time equivalent positions and the associated funding for

16  salaries, benefits, other capital outlay, and expenses related

17  to the rehabilitation and reemployment of injured workers are

18  transferred by a type two transfer, as defined in s. 20.06(2),

19  Florida Statutes, from the Department of Labor and Employment

20  Security to the Department of Education; and the full-time

21  equivalent positions and the associated funding for salaries,

22  benefits, other capital outlay, and expenses related to the

23  administration of child labor laws under chapter 450, Florida

24  Statutes, are transferred by a type two transfer, as defined

25  in s. 20.06(2), Florida Statutes, from the Department of Labor

26  and Employment Security to the Department of Business and

27  Professional Regulation. To the extent feasible, the positions

28  transferred to the Department of Insurance will be

29  reclassified to pay grades comparable to the positions

30  established by the Department of Labor and Employment

31  Security, based on the classification codes and specifications


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                                           HB 3-E, First Engrossed



 1  of the positions for work to be performed at the Department of

 2  Insurance. The number of positions the department establishes

 3  may not exceed the number of authorized positions and the

 4  salary and benefits that were authorized for the Division of

 5  Workers' Compensation within the Department of Labor and

 6  Employment Security prior to the transfer. The Department of

 7  Insurance is further authorized to reassign, reorganize,

 8  reclassify, or otherwise transfer positions to appropriate

 9  administrative subdivisions within the department and to

10  establish such regional offices as are necessary to properly

11  enforce and administer its responsibilities under the Florida

12  Insurance Code and chapter 440, Florida Statutes. The

13  department may also enter into contracts with public or

14  private entities to administer its duties and responsibilities

15  associated with the transfer of the Division of Workers'

16  Compensation.

17         Section 10.  Effective July 1, 2002, Subsections (3)

18  and (4), paragraph (b) of subsection (5), paragraph (a) of

19  subsection (6), paragraphs (a), (c), (d), (e), (f), (g), and

20  (h) of subsection (7), paragraph (a) of subsection (8),

21  paragraphs (a) and (b) of subsection (9), paragraph (f) of

22  subsection (10), and subsection (11) of section 288.99,

23  Florida Statutes, are amended, paragraph (i) is added to

24  subsection (7) of said section, and subsection (17) is added

25  to said section, to read:

26         288.99  Certified Capital Company Act.--

27         (3)  DEFINITIONS.--As used in this section, the term:

28         (a)  "Affiliate of an insurance company" means:

29         1.  Any person directly or indirectly beneficially

30  owning, whether through rights, options, convertible

31  interests, or otherwise, controlling, or holding power to vote


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                                           HB 3-E, First Engrossed



 1  15 10 percent or more of the outstanding voting securities or

 2  other voting ownership interests of the insurance company;

 3         2.  Any person 15 10 percent or more of whose

 4  outstanding voting securities or other voting ownership

 5  interest is directly or indirectly beneficially owned, whether

 6  through rights, options, convertible interests, or otherwise,

 7  controlled, or held with power to vote by the insurance

 8  company;

 9         3.  Any person directly or indirectly controlling,

10  controlled by, or under common control with the insurance

11  company;

12         4.  A partnership in which the insurance company is a

13  general partner; or

14         5.  Any person who is a principal, director, employee,

15  or agent of the insurance company or an immediate family

16  member of the principal, director, employee, or agent.

17         (b)  "Certified capital" means an investment of cash by

18  a certified investor in a certified capital company which

19  fully funds the purchase price of either or both its equity

20  interest in the certified capital company or a qualified debt

21  instrument issued by the certified capital company.

22         (c)  "Certified capital company" means a corporation,

23  partnership, or limited liability company which:

24         1.  Is certified by the department in accordance with

25  this act.

26         2.  Receives investments of certified capital from two

27  or more unaffiliated certified investors.

28         3.  Makes qualified investments as its primary

29  activity.

30  

31  


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                                           HB 3-E, First Engrossed



 1         (d)  "Certified investor" means any insurance company

 2  subject to premium tax liability pursuant to s. 624.509 that

 3  invests contributes certified capital.

 4         (e)  "Department" means the Department of Banking and

 5  Finance.

 6         (f)  "Director" means the director of the Office of

 7  Tourism, Trade, and Economic Development.

 8         (g)  "Early stage technology business" means a

 9  qualified business that is:

10         1.  Involved, at the time of the certified capital

11  company's initial investment in such business, in activities

12  related to developing initial product or service offerings,

13  such as prototype development or the establishment of initial

14  production or service processes;. The term includes a

15  qualified business that is

16         2.  Less than 2 years old and has, together with its

17  affiliates, less than $3 million in annual revenues for the

18  fiscal year immediately preceding the initial investment by

19  the certified capital company on a consolidated basis, as

20  determined in accordance with generally accepted accounting

21  principles;. The term also includes

22         3.  The Florida Black Business Investment Board;,

23         4.  Any entity that is majority owned by the Florida

24  Black Business Investment Board;, or

25         5.  Any entity in which the Florida Black Business

26  Investment Board holds a majority voting interest on the board

27  of directors.

28         (h)  "Office" means the Office of Tourism, Trade, and

29  Economic Development.

30  

31  


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                                           HB 3-E, First Engrossed



 1         (i)  "Premium tax liability" means any liability

 2  incurred by an insurance company under the provisions of s.

 3  624.509 and s. 624.5091.

 4         (j)  "Principal" means an executive officer of a

 5  corporation, partner of a partnership, manager of a limited

 6  liability company, or any other person with equivalent

 7  executive functions.

 8         (k)  "Qualified business" means the Digital Divide

 9  Trust Fund established under the State of Florida Technology

10  Office or a business that meets the following conditions as

11  evidenced by documentation required by department rule:

12         1.  The business is headquartered in this state and its

13  principal business operations are located in this state or at

14  least 75 percent of the employees are employed in the state.

15         2.  At the time a certified capital company makes an

16  initial investment in a business, the business would qualify

17  for investment under is a small business concern as defined in

18  13 C.F.R. s. 121.301(c) 121.201, "Size Standards Used to

19  Define Small Business Concerns" of the United States Small

20  Business Administration which is involved in manufacturing,

21  processing or assembling products, conducting research and

22  development, or providing services.

23         3.  At the time a certified capital company makes an

24  initial investment in a business, the business certifies in an

25  affidavit that:

26         a.  The business is unable to obtain conventional

27  financing, which means that the business has failed in an

28  attempt to obtain funding for a loan from a bank or other

29  commercial lender or that the business cannot reasonably be

30  expected to qualify for such financing under the standards of

31  commercial lending;


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                                           HB 3-E, First Engrossed



 1         b.  The business plan for the business projects that

 2  the business is reasonably expected to achieve in excess of

 3  $25 million in sales revenue within 5 years after the initial

 4  investment, or the business is located in a designated Front

 5  Porch community, enterprise zone, urban high crime area, rural

 6  job tax credit county, or nationally recognized historic

 7  district;

 8         c.  The business will maintain its headquarters in this

 9  state for the next 10 years and any new manufacturing facility

10  financed by a qualified investment will remain in this state

11  for the next 10 years, or the business is located in a

12  designated Front Porch community, enterprise zone, urban high

13  crime area, rural job tax credit county, or nationally

14  recognized historic district; and

15         d.  The business has fewer than 200 employees and at

16  least 75 percent of the employees are employed in this state.

17  For purposes of this subsection, the term "qualified business"

18  also includes the Florida Black Business Investment Board, any

19  entity majority owned by the Florida Black Business Investment

20  Board, or any entity in which the Florida Black Business

21  Investment Board holds a majority voting interest on the board

22  of directors.

23         4.  The term does not include:

24         a.  Any business predominantly engaged in retail sales,

25  real estate development, insurance, banking, lending, or oil

26  and gas exploration.

27         b.  Any business predominantly engaged in professional

28  services provided by accountants, lawyers, or physicians.

29         c.  Any company that has no historical revenues and

30  either has no specific business plan or purpose or has

31  indicated that its business plan is solely to engage in a


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                                           HB 3-E, First Engrossed



 1  merger or acquisition with any unidentified company or other

 2  entity.

 3         d.  Any company that has a strategic plan to grow

 4  through the acquisition of firms with substantially similar

 5  business which would result in the planned net loss of

 6  Florida-based jobs over a 12-month period after the

 7  acquisition as determined by the department.

 8  

 9  A business predominantly engaged in retail sales, real estate

10  development, insurance, banking, lending, oil and gas

11  exploration, or engaged in professional services provided by

12  accountants, lawyers, or physicians does not constitute a

13  qualified business.

14         (l)  "Qualified debt instrument" means a debt

15  instrument, or a hybrid of a debt instrument, issued by a

16  certified capital company, at par value or a premium, with an

17  original maturity date of at least 5 years after the date of

18  issuance, a repayment schedule which is no faster than a level

19  principal amortization over a 5-year period, and interest,

20  distribution, or payment features which are not related to the

21  profitability of the certified capital company or the

22  performance of the certified capital company's investment

23  portfolio.

24         (m)  "Qualified distribution" means any distribution or

25  payment by to equity holders of a certified capital company

26  for:

27         1.  Reasonable costs and expenses, including, but not

28  limited to, professional fees, of forming and, syndicating the

29  certified capital company, if no such costs or expenses are

30  paid to a certified investor, except as provided in

31  subparagraph (4)(f)2., and the total cash, cash equivalents,


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                                           HB 3-E, First Engrossed



 1  and other current assets permitted by sub-subparagraph

 2  (5)(b)3.g. that can be converted into cash within 5 business

 3  days available to the certified capital company at the time of

 4  receipt of certified capital from certified investors, after

 5  deducting the costs and expenses of forming and syndicating

 6  the certified capital company, including any payments made

 7  over time for obligations incurred at the time of receipt of

 8  certified capital but excluding other future qualified

 9  distributions and payments made under paragraph (9)(a), are an

10  amount equal to or greater than 50 percent of the total

11  certified capital allocated to the certified capital pursuant

12  to subsection (7);,

13         2.  Reasonable costs of managing, and operating the

14  certified capital company, not exceeding 5 percent of the

15  certified capital in any single year, including an annual

16  management fee in an amount that does not exceed 2.5 percent

17  of the certified capital of the certified capital company;,

18  plus

19         3.  Reasonable and necessary fees in accordance with

20  industry custom for professional services, including, but not

21  limited to, legal and accounting services, related to the

22  operation of the certified capital company; or.

23         4.2.  Any projected increase in federal or state taxes,

24  including penalties and interest related to state and federal

25  income taxes, of the equity owners of a certified capital

26  company resulting from the earnings or other tax liability of

27  the certified capital company to the extent that the increase

28  is related to the ownership, management, or operation of a

29  certified capital company.

30         (n)1.  "Qualified investment" means the investment of

31  cash by a certified capital company in a qualified business


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                                           HB 3-E, First Engrossed



 1  for the purchase of any debt, equity, or hybrid security of

 2  any nature and description whatsoever, including a debt

 3  instrument or security that which has the characteristics of

 4  debt but which provides for conversion into equity or equity

 5  participation instruments such as options or warrants.

 6         2.  The term does not include:

 7         a.  Any investment made after the effective date of

 8  this act the contractual terms of which require the repayment

 9  of any portion of the principal in instances, other than

10  default as determined by department rule, within 12 months

11  following the initial investment by the certified capital

12  company unless such investment has a repayment schedule no

13  faster than a level principal amortization of at least 2

14  years;

15         b.  Any "follow-on" or "add-on" investment except for

16  the amount by which the new investment is in addition to the

17  amount of the certified capital company's initial investment

18  returned to it other than in the form of interest, dividends,

19  or other types of profit participation or distributions; or

20         c.  Any investment in a qualified business or affiliate

21  of a qualified business that exceeds 15 percent of certified

22  capital.

23         (o)  "Program One" means the $150 million in premium

24  tax credits issued under this section in 1999, the allocation

25  of such credits under this section, and the regulation of

26  certified capital companies and investments made by them

27  hereunder.

28         (p)  "Program Two" means the $150 million in premium

29  tax credits to be issued under subsection (17), the allocation

30  of such credits under this section, and the regulation of

31  


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                                           HB 3-E, First Engrossed



 1  certified capital companies and investments made by them

 2  hereunder.

 3         (4)  CERTIFICATION; GROUNDS FOR DENIAL OR

 4  DECERTIFICATION.--

 5         (a)  To operate as a certified capital company, a

 6  corporation, partnership, or limited liability company must be

 7  certified by the department pursuant to this act.

 8         (b)  An applicant for certification as a certified

 9  capital company must file a verified application with the

10  department on or before December 1, 1998, a date determined in

11  rules adopted pursuant to subsection (17) in the case of

12  applicants for Program Two, in a form which the department may

13  prescribe by rule.  The applicant shall submit a nonrefundable

14  application fee of $7,500 to the department.  The applicant

15  shall provide:

16         1.  The name of the applicant and the address of its

17  principal office and each office in this state.

18         2.  The applicant's form and place of organization and

19  the relevant organizational documents, bylaws, and amendments

20  or restatements of such documents, bylaws, or amendments.

21         3.  Evidence from the Department of State that the

22  applicant is registered with the Department of State as

23  required by law, maintains an active status with the

24  Department of State, and has not been dissolved or had its

25  registration revoked, canceled, or withdrawn.

26         4.  The applicant's proposed method of doing business.

27         5.  The applicant's financial condition and history,

28  including an audit report on the financial statements prepared

29  in accordance with generally accepted accounting principles.

30  The applicant must have, at the time of application for

31  certification, an equity capitalization of at least $500,000


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                                           HB 3-E, First Engrossed



 1  in the form of cash or cash equivalents.  The applicant must

 2  maintain this equity capitalization until the applicant

 3  receives an allocation of certified capital pursuant to this

 4  act showing net capital of not less than $500,000 within 90

 5  days after the date the application is submitted to the

 6  department. If the date of the application is more than 90

 7  days after preparation of the applicant's fiscal year-end

 8  financial statements, the applicant may file financial

 9  statements reviewed by an independent certified public

10  accountant for the period subsequent to the audit report,

11  together with the audited financial statement for the most

12  recent fiscal year.  If the applicant has been in business

13  less than 12 months, and has not prepared an audited financial

14  statement, the applicant may file a financial statement

15  reviewed by an independent certified public accountant.

16         6.  Copies of any offering materials used or proposed

17  to be used by the applicant in soliciting investments of

18  certified capital from certified investors.

19         (c)  Within 60 days after receipt of a verified

20  application On December 31, 1998, the department shall grant

21  or deny certification as a certified capital company.  If the

22  department denies certification within the time period

23  specified, the department shall inform the applicant of the

24  grounds for the denial.  If the department has not granted or

25  denied certification within the time specified, the

26  application shall be deemed approved.  The department shall

27  approve the application if the department finds that:

28         1.  The applicant satisfies the requirements of

29  paragraph (b).

30         2.  No evidence exists that the applicant has committed

31  any act specified in paragraph (d).


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                                           HB 3-E, First Engrossed



 1         3.  At least two of the principals have a minimum of 5

 2  years of experience making venture capital investments out of

 3  private equity funds, with not less than $20 million being

 4  provided by third-party investors for investment in the early

 5  stage of operating businesses. At least one full-time manager

 6  or principal of the certified capital company who has such

 7  experience must be primarily located in an office of the

 8  certified capital company which is based in this state.

 9         4.  The applicant's proposed method of doing business

10  and raising certified capital as described in its offering

11  materials and other materials submitted to the department

12  conforms with the requirements of this section.

13         (d)  The department may deny certification or decertify

14  a certified capital company if the grounds for decertification

15  are not removed or corrected within 90 days after the notice

16  of such grounds is received by the certified capital company.

17  The department may deny certification or decertify a certified

18  capital company if the certified capital company fails to

19  maintain common stock or paid in capital a net worth of at

20  least $500,000, or if the department determines that the

21  applicant, or any principal or director of the certified

22  capital company, has:

23         1.  Violated any provision of this section;

24         2.  Made a material misrepresentation or false

25  statement or concealed any essential or material fact from any

26  person during the application process or with respect to

27  information and reports required of certified capital

28  companies under this section;

29         3.  Been convicted of, or entered a plea of guilty or

30  nolo contendere to, a crime against the laws of this state or

31  any other state or of the United States or any other country


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                                           HB 3-E, First Engrossed



 1  or government, including a fraudulent act in connection with

 2  the operation of a certified capital company, or in connection

 3  with the performance of fiduciary duties in another capacity;

 4         4.  Been adjudicated liable in a civil action on

 5  grounds of fraud, embezzlement, misrepresentation, or deceit;

 6  or

 7         5.a.  Been the subject of any decision, finding,

 8  injunction, suspension, prohibition, revocation, denial,

 9  judgment, or administrative order by any court of competent

10  jurisdiction, administrative law judge, or any state or

11  federal agency, national securities, commodities, or option

12  exchange, or national securities, commodities, or option

13  association, involving a material violation of any federal or

14  state securities or commodities law or any rule or regulation

15  adopted under such law, or any rule or regulation of any

16  national securities, commodities, or options exchange, or

17  national securities, commodities, or options association; or

18         b.  Been the subject of any injunction or adverse

19  administrative order by a state or federal agency regulating

20  banking, insurance, finance or small loan companies, real

21  estate, mortgage brokers, or other related or similar

22  industries.

23         (e)  The certified capital company shall file a copy of

24  its certification with the office by January 31, 1999.

25         (e)(f)  Any offering material involving the sale of

26  securities of the certified capital company shall include the

27  following statement:  "By authorizing the formation of a

28  certified capital company, the State of Florida does not

29  endorse the quality of management or the potential for

30  earnings of such company and is not liable for damages or

31  losses to a certified investor in the company.  Use of the


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                                           HB 3-E, First Engrossed



 1  word 'certified' in an offering does not constitute a

 2  recommendation or endorsement of the investment by the State

 3  of Florida.  Investments in a certified capital company prior

 4  to the time such company is certified are not eligible for

 5  premium tax credits.  If applicable provisions of law are

 6  violated, the state may require forfeiture of unused premium

 7  tax credits and repayment of used premium tax credits by the

 8  certified investor."

 9         (f)1.(g)  No insurance company or any affiliate of an

10  insurance company shall, directly or indirectly, own, whether

11  through rights, options, convertible interests, or otherwise,

12  15 percent or more of the voting equity interests of or manage

13  or control the direction of investments of a certified capital

14  company.  This prohibition does not preclude a certified

15  investor, insurance company, or any other party from

16  exercising its legal rights and remedies, which may include

17  interim management of a certified capital company, if a

18  certified capital company is in default of its obligations

19  under law or its contractual obligations to such certified

20  investor, insurance company, or other party. Nothing in this

21  subparagraph shall limit an insurance company's ownership of

22  nonvoting equity interests in a certified capital company.

23         2.  A certified capital company may obtain a guaranty,

24  indemnity, bond, insurance policy or other payment undertaking

25  in favor of all of the certified investors of the certified

26  capital company and its affiliates; provided that the entity

27  from which such guaranty, indemnity, bond, insurance policy or

28  other payment undertaking is obtained may not be a certified

29  investor of, or be affiliated with more than one certified

30  investor of, the certified capital company.

31  


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                                           HB 3-E, First Engrossed



 1         (g)(h)  On or before December 31 of each year, each

 2  certified capital company shall pay to the department an

 3  annual, nonrefundable renewal certification fee of $5,000. If

 4  a certified capital company fails to pay its renewal fee by

 5  the specified deadline, the company must pay a late fee of

 6  $5,000 in addition to the renewal fee on or by January 31 of

 7  each year in order to continue its certification in the

 8  program. On or before April 30 of each year, each certified

 9  capital company shall file audited financial statements with

10  the department.  No renewal fees shall be required within 6

11  months after the date of initial certification.

12         (h)(i)  The department shall administer and provide for

13  the enforcement of certification requirements for certified

14  capital companies as provided in this act.  The department may

15  adopt any rules necessary to carry out its duties,

16  obligations, and powers related to certification, renewal of

17  certification, or decertification of certified capital

18  companies and may perform any other acts necessary for the

19  proper administration and enforcement of such duties,

20  obligations, and powers.

21         (i)(j)  Decertification of a certified capital company

22  under this subsection does not affect the ability of certified

23  investors in such certified capital company from claiming

24  future premium tax credits earned as a result of an investment

25  in the certified capital company during the period in which it

26  was duly certified.

27         (5)  INVESTMENTS BY CERTIFIED CAPITAL COMPANIES.--

28         (b)  All capital not invested in qualified investments

29  by the certified capital company:

30  

31  


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                                           HB 3-E, First Engrossed



 1         1.  Must be held in a financial institution as defined

 2  by s. 655.005(1)(h) or held by a broker-dealer registered

 3  under s. 517.12, except as set forth in sub-subparagraph 3.g.

 4         2.  Must not be invested in a certified investor of the

 5  certified capital company or any affiliate of the certified

 6  investor of the certified capital company, except for an

 7  investment permitted by sub-subparagraph 3.g., provided

 8  repayment terms do not permit the obligor to directly or

 9  indirectly manage or control the investment decisions of the

10  certified capital company.

11         3.  Must be invested only in:

12         a.  Any United States Treasury obligations;

13         b.  Certificates of deposit or other obligations,

14  maturing within 3 years after acquisition of such certificates

15  or obligations, issued by any financial institution or trust

16  company incorporated under the laws of the United States;

17         c.  Marketable obligations, maturing within 10 5 years

18  or less after the acquisition of such obligations, which are

19  rated "A" or better by any nationally recognized credit rating

20  agency;

21         d.  Mortgage-backed securities, with an average life of

22  5 years or less, after the acquisition of such securities,

23  which are rated "A" or better by any nationally recognized

24  credit rating agency;

25         e.  Collateralized mortgage obligations and real estate

26  mortgage investment conduits that are direct obligations of an

27  agency of the United States Government; are not private-label

28  issues; are in book-entry form; and do not include the classes

29  of interest only, principal only, residual, or zero; or

30  

31  


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                                           HB 3-E, First Engrossed



 1         f.  Interests in money market funds, the portfolio of

 2  which is limited to cash and obligations described in

 3  sub-subparagraphs a.-d.; or

 4         g.  Obligations that are issued by an insurance company

 5  that is not a certified investor of the certified capital

 6  company making the investment, that has provided a guarantee

 7  indemnity bond, insurance policy, or other payment undertaking

 8  in favor of the certified capital company's certified

 9  investors as permitted by subparagraph (3)(m)1. or an

10  affiliate of such insurance company as defined by subparagraph

11  (3)(a)3. that is not a certified investor of the certified

12  capital company making the investment, provided that such

13  obligations are:

14         (I)  Issued or guaranteed as to principal by an entity

15  whose senior debt is rated "AA" or better by Standard & Poor's

16  Ratings Group or such other nationally recognized credit

17  rating agency as the department may by rule determine.

18         (II)  Not subordinated to other unsecured indebtedness

19  of the issuer or the guarantor.

20         (III)  Invested by such issuing entity in accordance

21  with sub-subparagraphs 3.a.-f.

22         (IV)  Readily convertible into cash within 5 business

23  days for the purpose of making a qualified investment unless

24  such obligations are held to provide a guarantee, indemnity

25  bond, insurance policy, or other payment undertaking in favor

26  of the certified capital company's certified investors as

27  permitted by subparagraph (3)(m)1.

28         (6)  PREMIUM TAX CREDIT; AMOUNT; LIMITATIONS.--

29         (a)  Any certified investor who makes an investment of

30  certified capital shall earn a vested credit against premium

31  tax liability equal to 100 percent of the certified capital


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                                           HB 3-E, First Engrossed



 1  invested by the certified investor. Certified investors shall

 2  be entitled to use no more than 10 percentage points of the

 3  vested premium tax credit earned under a particular program,

 4  including any carryforward credits from such program under

 5  this act, per year beginning with premium tax filings for

 6  calendar year 2000 for credits earned under Program One. Any

 7  premium tax credits not used by certified investors in any

 8  single year may be carried forward and applied against the

 9  premium tax liabilities of such investors for subsequent

10  calendar years.  The carryforward credit may be applied

11  against subsequent premium tax filings through calendar year

12  2017.

13         (7)  ANNUAL TAX CREDIT; MAXIMUM AMOUNT; ALLOCATION

14  PROCESS.--

15         (a)  The total amount of tax credits which may be

16  allocated by the office shall not exceed $150 million with

17  respect to Program One and $150 million with respect to

18  Program Two. The total amount of tax credits which may be used

19  by certified investors under this act shall not exceed $15

20  million annually with respect to credits earned under Program

21  One and $15 million annually with respect to credits earned

22  under Program Two.

23         (c)  Each certified capital company must apply to the

24  office for an allocation of premium tax credits for potential

25  certified investors by March 15, 1999, on a form developed by

26  the office with the cooperation of the Department of Revenue.

27  The form shall be accompanied by an affidavit from each

28  potential certified investor confirming that the potential

29  certified investor has agreed to make an investment of

30  certified capital in a certified capital company up to a

31  specified amount, subject only to the receipt of a premium tax


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                                           HB 3-E, First Engrossed



 1  credit allocation pursuant to this subsection. No certified

 2  capital company shall submit premium tax allocation claims on

 3  behalf of certified investors that in the aggregate would

 4  exceed the total dollar amount appropriated by the Legislature

 5  for the specific program. No allocation shall be made to the

 6  potential investors of a certified capital company under

 7  Program Two unless such certified capital company has filed

 8  premium tax allocation claims that would result in an

 9  allocation to the potential investors in such certified

10  capital company of not less than $15 million in the aggregate.

11         (d)  On or before April 1, 1999, The office shall

12  inform each certified capital company of its share of total

13  premium tax credits available for allocation to each of its

14  potential investors.

15         (e)  If a certified capital company does not receive

16  certified capital equaling the amount of premium tax credits

17  allocated to a potential certified investor for which the

18  investor filed a premium tax allocation claim within 10

19  business days after the investor received a notice of

20  allocation, the certified capital company shall notify the

21  office by overnight common carrier delivery service of the

22  company's failure to receive the capital.  That portion of the

23  premium tax credits allocated to the certified capital company

24  shall be forfeited. If the office must make a pro rata

25  allocation under paragraph (f), the office shall reallocate

26  such available credits among the other certified capital

27  companies on the same pro rata basis as the initial

28  allocation.

29         (f)  If the total amount of capital committed by all

30  certified investors to certified capital companies in premium

31  tax allocation claims under Program Two exceeds the aggregate


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                                           HB 3-E, First Engrossed



 1  cap on the amount of credits that may be awarded under Program

 2  Two, the premium tax credits that may be allowed to any one

 3  certified investor under Program Two shall be allocated using

 4  the following ratio:

 5  

 6                      A/B = X/>$150,000,000

 7  

 8  where the letter "A" represents the total amount of certified

 9  capital certified investors have agreed to invest in any one

10  certified capital company under Program Two, the letter "B"

11  represents the aggregate amount of certified capital that all

12  certified investors have agreed to invest in all certified

13  capital companies under Program Two, the letter "X" is the

14  numerator and represents the total amount of premium tax

15  credits and certified capital that may be allocated to a

16  certified capital company on a date determined by rule adopted

17  by the department pursuant to subsection (17) in calendar year

18  1999, and $150 million is the denominator and represents the

19  total amount of premium tax credits and certified capital that

20  may be allocated to all certified investors under Program Two

21  in calendar year 1999. Any such premium tax credits are not

22  first available for utilization until annual filings are made

23  in 2001 for calendar year 2000 in the case of Program One, and

24  the tax credits may be used at a rate not to exceed 10 percent

25  annually per program.

26         (g)  The maximum amount of certified capital for which

27  premium tax allocation claims may be filed on behalf of any

28  certified investor and its affiliates by one or more certified

29  capital companies may not exceed $15 million for Program One

30  and $22.5 million for Program Two.

31  


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                                           HB 3-E, First Engrossed



 1         (h)  To the extent that less than $150 million in

 2  certified capital is raised in connection with the procedure

 3  set forth in paragraphs (c)-(g), the department may adopt

 4  rules to allow a subsequent allocation of the remaining

 5  premium tax credits authorized under this section.

 6         (i)  The office shall issue a certification letter for

 7  each certified investor, showing the amount invested in the

 8  certified capital company under each program.  The applicable

 9  certified capital company shall attest to the validity of the

10  certification letter.

11         (8)  ANNUAL TAX CREDIT; CLAIM PROCESS.--

12         (a)  On an annual basis, on or before January December

13  31, each certified capital company shall file with the

14  department and the office, in consultation with the

15  department, on a form prescribed by the office, for each

16  calendar year:

17         1.  The total dollar amount the certified capital

18  company received from certified investors, the identity of the

19  certified investors, and the amount received from each

20  certified investor during the immediately preceding calendar

21  year.

22         2.  The total dollar amount the certified capital

23  company invested and the amount invested in qualified

24  businesses, together with the identity and location of those

25  businesses and the amount invested in each qualified business

26  during the immediately preceding calendar year.

27         3.  For informational purposes only, the total number

28  of permanent, full-time jobs either created or retained by the

29  qualified business during the immediately preceding calendar

30  year, the average wage of the jobs created or retained, the

31  industry sectors in which the qualified businesses operate,


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                                           HB 3-E, First Engrossed



 1  and any additional capital invested in qualified businesses

 2  from sources other than certified capital companies.

 3         (9)  REQUIREMENT FOR 100 PERCENT INVESTMENT; STATE

 4  PARTICIPATION.--

 5         (a)  A certified capital company may make qualified

 6  distributions at any time. In order to make a distribution to

 7  its equity holders, other than a qualified distribution from

 8  funds related to a particular program, a certified capital

 9  company must have invested an amount cumulatively equal to 100

10  percent of its certified capital raised under such program in

11  qualified investments. Payments to debt holders of a certified

12  capital company, however, may be made without restriction with

13  respect to repayments of principal and interest on

14  indebtedness owed to them by a certified capital company,

15  including indebtedness of the certified capital company on

16  which certified investors earned premium tax credits. A debt

17  holder that is also a certified investor or equity holder of a

18  certified capital company may receive payments with respect to

19  such debt without restrictions.

20         (b)  Cumulative distributions from a certified capital

21  company from funds related to a particular program to its

22  certified investors and equity holders under such program,

23  other than qualified distributions, in excess of the certified

24  capital company's original certified capital raised under such

25  program and any additional capital contributions to the

26  certified capital company with respect to such program may be

27  audited by a nationally recognized certified public accounting

28  firm acceptable to the department, at the expense of the

29  certified capital company, if the department directs such

30  audit be conducted. The audit shall determine whether

31  aggregate cumulative distributions from the funds related to a


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                                           HB 3-E, First Engrossed



 1  particular program made by the certified capital company to

 2  all certified investors and equity holders under such program,

 3  other than qualified distributions, have equaled the sum of

 4  the certified capital company's original certified capital

 5  raised under such program and any additional capital

 6  contributions to the certified capital company with respect to

 7  such program.  If at the time of any such distribution made by

 8  the certified capital company, such distribution taken

 9  together with all other such distributions from the funds

10  related to such program made by the certified capital company,

11  other than qualified distributions, exceeds in the aggregate

12  the sum of the certified capital company's original certified

13  capital raised under such program and any additional capital

14  contributions to the certified capital company with respect to

15  such program, as determined by the audit, the certified

16  capital company shall pay to the Department of Revenue 10

17  percent of the portion of such distribution in excess of such

18  amount. Payments to the Department of Revenue by a certified

19  capital company pursuant to this paragraph shall not exceed

20  the aggregate amount of tax credits used by all certified

21  investors in such certified capital company for such program.

22         (10)  DECERTIFICATION.--

23         (f)  Decertification of a certified capital company for

24  failure to meet all requirements for continued certification

25  under paragraph (5)(a) with respect to the certified capital

26  raised under a particular program may cause the recapture of

27  premium tax credits previously claimed by such company under

28  such program and the forfeiture of future premium tax credits

29  to be claimed by certified investors under such program with

30  respect to such certified capital company, as follows:

31  


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                                           HB 3-E, First Engrossed



 1         1.  Decertification of a certified capital company

 2  within 3 years after its certification date with respect to a

 3  particular program shall cause the recapture of all premium

 4  tax credits earned under such program and previously claimed

 5  by such company and the forfeiture of all future premium tax

 6  credits earned under such program which are to be claimed by

 7  certified investors with respect to such company.

 8         2.  When a certified capital company meets all

 9  requirements for continued certification under subparagraph

10  (5)(a)1. with respect to certified capital raised under a

11  particular program and subsequently fails to meet the

12  requirements for continued certification under the provisions

13  of subparagraph (5)(a)2. with respect to certified capital

14  raised under such program, those premium tax credits earned

15  under such program which have been or will be taken by

16  certified investors within 3 years after the certification

17  date of the certified capital company with respect to such

18  program shall not be subject to recapture or forfeiture;

19  however, all premium tax credits earned under such program

20  that have been or will be taken by certified investors after

21  the third anniversary of the certification date of the

22  certified capital company for such program shall be subject to

23  recapture or forfeiture.

24         3.  When a certified capital company meets all

25  requirements for continued certification under subparagraphs

26  (5)(a)1. and 2. with respect to a particular program and

27  subsequently fails to meet the requirements for continued

28  certification under the subparagraph (5)(a)3. with respect to

29  such program, those premium tax credits earned under such

30  program which have been or will be taken by certified

31  investors within 4 years after the certification date of the


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                                           HB 3-E, First Engrossed



 1  certified capital company with respect to such program shall

 2  not be subject to recapture or forfeiture; however, all

 3  premium tax credits earned under such program that have been

 4  or will be taken by certified investors after the fourth

 5  anniversary of the certification date of the certified capital

 6  company with respect to such program shall be subject to

 7  recapture and forfeiture.

 8         4.  If a certified capital company has met all

 9  requirements for continued certification under paragraph

10  (5)(a) with respect to certified capital raised under a

11  particular program, but such company is subsequently

12  decertified, those premium tax credits earned under such

13  program which have been or will be taken by certified

14  investors within 5 years after the certification date of such

15  company with respect to such program shall not be subject to

16  recapture or forfeiture. Those premium tax credits earned

17  under such program to be taken subsequent to the 5th year of

18  certification with respect to such program shall be subject to

19  forfeiture only if the certified capital company is

20  decertified within 5 years after its certification date with

21  respect to such program.

22         5.  If a certified capital company has invested an

23  amount cumulatively equal to 100 percent of its certified

24  capital raised under a particular program in qualified

25  investments, all premium tax credits claimed or to be claimed

26  by its certified investors under such program shall not be

27  subject to recapture or forfeiture.

28         (11)  TRANSFERABILITY.--The premium tax credit

29  established pursuant to this act may be transferred or sold.

30  The Department of Revenue shall adopt rules to facilitate the

31  transfer or sale of such premium tax credits.  A transfer or


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                                           HB 3-E, First Engrossed



 1  sale shall not affect the time schedule for taking the premium

 2  tax credit as provided in this act.  Any premium tax credits

 3  recaptured shall be the liability of the taxpayer who actually

 4  claimed the premium tax credits.  The claim of a transferee of

 5  a certified investor's unused premium tax credit shall be

 6  permitted in the same manner and subject to the same

 7  provisions and limitations of this act as the original

 8  certified investor.  The term "transferee" means any person

 9  who:

10         (a)  Through the voluntary sale, assignment, or other

11  transfer of the business or control of the business of the

12  certified investor, including the sale or other transfer of

13  stock or assets by merger, consolidation, or dissolution,

14  succeeds to all or substantially all of the business and

15  property of the certified investor;

16         (b)  Becomes by operation of law or otherwise the

17  parent company of the certified investor;

18         (c)  Directly or indirectly owns, whether through

19  rights, options, convertible interests, or otherwise,

20  controls, or holds power to vote 10 percent or more of the

21  outstanding voting securities or other ownership interest of

22  the certified investor;

23         (d)  Is a subsidiary of the certified investor or 10

24  percent or more of whose outstanding voting securities or

25  other ownership interest are directly or indirectly owned,

26  whether through rights, options, convertible interests, or

27  otherwise, by the certified investor; or

28         (e)  Directly or indirectly controls, is controlled by,

29  or is under the common control with the certified investor.

30         Section 11.  Except as otherwise specifically provided

31  in this act, the provisions of this act shall apply only to


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                                           HB 3-E, First Engrossed



 1  "Program Two" as defined in s. 288.99(3), Florida Statutes, as

 2  amended by this act.

 3         (17)  Notwithstanding the limitations set forth in

 4  paragraph (7)(a), in the first fiscal year in which the total

 5  insurance premium tax collections as determined by the Revenue

 6  Estimating Conference exceed collections for fiscal year

 7  2000-2001 by more than the total amount of tax credits issued

 8  pursuant to this section which were used by certified

 9  investors in that year, the office may allocate to certified

10  investors in accordance with paragraph (7)(a) tax credits for

11  Program Two. The department shall establish, by rule, a date

12  and procedures by which certified capital companies must file

13  applications for allocations of such additional premium tax

14  credits, which date shall be no later than 180 days from the

15  date of determination by the Revenue Estimating Conference.

16  With respect to new certified capital invested and premium tax

17  credits earned pursuant to this subsection, the schedule

18  specified in subparagraphs (5)(a)1.-4. is satisfied by

19  investments by December 31 of the 2nd, 3rd, 4th, and 5th

20  calendar year, respectively, after the date established by the

21  department for applications of additional premium tax credits.

22  The department shall adopt rules by which an entity not

23  already certified as a certified capital company may apply for

24  certification as a certified capital company for participation

25  in this additional allocation. The insurance premium tax

26  credit authorized by Program Two may not be used by certified

27  investors until the annual return due March 1, 2004, and may

28  be used on all subsequent returns and estimated payments;

29  however, notwithstanding the provisions of s. 624.5092(2)(b),

30  the installments of taxes due and payable on April 15, 2004,

31  and June 15, 2004, shall be based on the net tax due in 2003


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                                           HB 3-E, First Engrossed



 1  not taking into account credits granted pursuant to this

 2  section for Program Two.

 3         Section 12.  Subsection (20) is added to section

 4  517.12, Florida Statutes, to read:

 5         517.12  Registration of dealers, associated persons,

 6  investment advisers, and branch offices.--

 7         (20)  Subject to approval of the Chief Financial

 8  Officer, the registration requirements of this section do not

 9  apply to individuals licensed under s. 626.041 or its

10  successor statute, or s. 626.051 or its successor statute, for

11  the sale of a security as defined in s. 517.021(19)(g), if the

12  individual is directly authorized by the issuer to offer or

13  sell the security on behalf of the issuer and the issuer is a

14  federally chartered savings bank subject to regulation by the

15  Federal Deposit Insurance Corporation.

16         Section 13.  Subsection (21) of section 570.07, Florida

17  Statutes, is amended to read:

18         570.07  Department of Agriculture and Consumer

19  Services; functions, powers, and duties.--The department shall

20  have and exercise the following functions, powers, and duties:

21         (21)  To declare an emergency when one exists in any

22  matter pertaining to agriculture; to make, adopt, and

23  promulgate rules and issue orders which will be effective

24  during the term of the emergency; and to issue or require to

25  be issued food safety information, pertaining to the

26  emergency, that is based on reliable scientific facts and

27  reliable scientific data. When the Commissioner of Agriculture

28  has declared an agricultural emergency, no county or municipal

29  ordinance relating to any action intended to end the emergency

30  shall be enforced within a county or municipality with respect

31  


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                                           HB 3-E, First Engrossed



 1  to such action taken by the Department of Agriculture and

 2  Consumer Services during the agricultural emergency.

 3         Section 14.  Paragraph (b) of subsection (4), paragraph

 4  (a) of subsection (5), and paragraphs (a) and (c) of

 5  subsection (6) of section 624.91, Florida Statutes, as amended

 6  by section 20 of chapter 2001-377, Laws of Florida, are

 7  amended to read:

 8         624.91  The Florida Healthy Kids Corporation Act.--

 9         (4)  CORPORATION AUTHORIZATION, DUTIES, POWERS.--

10         (b)  The Florida Healthy Kids Corporation shall phase

11  in a program to:

12         1.  Organize school children groups to facilitate the

13  provision of comprehensive health insurance coverage to

14  children;

15         2.  Arrange for the collection of any family, local

16  contributions, or employer payment or premium, in an amount to

17  be determined by the board of directors, to provide for

18  payment of premiums for comprehensive insurance coverage and

19  for the actual or estimated administrative expenses;

20         3.  Establish the administrative and accounting

21  procedures for the operation of the corporation;

22         4.  Establish, with consultation from appropriate

23  professional organizations, standards for preventive health

24  services and providers and comprehensive insurance benefits

25  appropriate to children; provided that such standards for

26  rural areas shall not limit primary care providers to

27  board-certified pediatricians;

28         5.  Establish eligibility criteria which children must

29  meet in order to participate in the program;

30         6.  Establish procedures under which applicants to and

31  participants in the program may have grievances reviewed by an


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                                           HB 3-E, First Engrossed



 1  impartial body and reported to the board of directors of the

 2  corporation;

 3         7.  Establish participation criteria and, if

 4  appropriate, contract with an authorized insurer, health

 5  maintenance organization, or insurance administrator to

 6  provide administrative services to the corporation;

 7         8.  Establish enrollment criteria which shall include

 8  penalties or waiting periods of not fewer than 60 days for

 9  reinstatement of coverage upon voluntary cancellation for

10  nonpayment of family premiums;

11         9.  If a space is available, establish a special open

12  enrollment period of 30 days' duration for any child who is

13  enrolled in Medicaid or Medikids if such child loses Medicaid

14  or Medikids eligibility and becomes eligible for the Florida

15  Healthy Kids program;

16         10.  Contract with authorized insurers or any provider

17  of health care services, meeting standards established by the

18  corporation, for the provision of comprehensive insurance

19  coverage to participants.  Such standards shall include

20  criteria under which the corporation may contract with more

21  than one provider of health care services in program sites.

22  Health plans shall be selected through a competitive bid

23  process. The selection of health plans shall be based

24  primarily on quality criteria established by the board. The

25  health plan selection criteria and scoring system, and the

26  scoring results, shall be available upon request for

27  inspection after the bids have been awarded;

28         11.  Develop and implement a plan to publicize the

29  Florida Healthy Kids Corporation, the eligibility requirements

30  of the program, and the procedures for enrollment in the

31  


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                                           HB 3-E, First Engrossed



 1  program and to maintain public awareness of the corporation

 2  and the program;

 3         12.  Secure staff necessary to properly administer the

 4  corporation. Staff costs shall be funded from state and local

 5  matching funds and such other private or public funds as

 6  become available. The board of directors shall determine the

 7  number of staff members necessary to administer the

 8  corporation;

 9         13.  As appropriate, enter into contracts with local

10  school boards or other agencies to provide onsite information,

11  enrollment, and other services necessary to the operation of

12  the corporation;

13         14.  Provide a report annually on an annual basis to

14  the Governor, Chief Financial Officer Insurance Commissioner,

15  Commissioner of Education, Senate President, Speaker of the

16  House of Representatives, and Minority Leaders of the Senate

17  and the House of Representatives;

18         15.  Each fiscal year, establish a maximum number of

19  participants by county, on a statewide basis, who may enroll

20  in the program without the benefit of local matching funds.

21  Thereafter, the corporation may establish local matching

22  requirements for supplemental participation in the program.

23  The corporation may vary local matching requirements and

24  enrollment by county depending on factors which may influence

25  the generation of local match, including, but not limited to,

26  population density, per capita income, existing local tax

27  effort, and other factors. The corporation also may accept

28  in-kind match in lieu of cash for the local match requirement

29  to the extent allowed by Title XXI of the Social Security Act;

30  and

31  


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                                           HB 3-E, First Engrossed



 1         16.  Establish eligibility criteria, premium and

 2  cost-sharing requirements, and benefit packages which conform

 3  to the provisions of the Florida Kidcare program, as created

 4  in ss. 409.810-409.820; and

 5         17.  Notwithstanding the requirements of subparagraph

 6  15. to the contrary, establish a local matching requirement of

 7  $0.00 for the Title XXI program in each county of the state

 8  for the 2001-2002 fiscal year. This subparagraph shall take

 9  effect upon becoming a law and shall operate retroactively to

10  July 1, 2001. This subparagraph expires July 1, 2002.

11         (5)  BOARD OF DIRECTORS.--

12         (a)  The Florida Healthy Kids Corporation shall operate

13  subject to the supervision and approval of a board of

14  directors chaired by the Chief Financial Officer Insurance

15  Commissioner or her or his designee, and composed of 14 12

16  other members selected for 3-year terms of office as follows:

17         1.  One member appointed by the Commissioner of

18  Education from among three persons nominated by the Florida

19  Association of School Administrators;

20         2.  One member appointed by the Commissioner of

21  Education from among three persons nominated by the Florida

22  Association of School Boards;

23         3.  One member appointed by the Commissioner of

24  Education from the Office of School Health Programs of the

25  Florida Department of Education;

26         4.  One member appointed by the Governor from among

27  three members nominated by the Florida Pediatric Society;

28         5.  One member, appointed by the Governor, who

29  represents the Children's Medical Services Program;

30  

31  


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                                           HB 3-E, First Engrossed



 1         6.  One member appointed by the Chief Financial Officer

 2  Insurance Commissioner from among three members nominated by

 3  the Florida Hospital Association;

 4         7.  Two members, appointed by the Chief Financial

 5  Officer Insurance Commissioner, who are representatives of

 6  authorized health care insurers or health maintenance

 7  organizations;

 8         8.  One member, appointed by the Chief Financial

 9  Officer Insurance Commissioner, who represents the Institute

10  for Child Health Policy;

11         9.  One member, appointed by the Governor, from among

12  three members nominated by the Florida Academy of Family

13  Physicians;

14         10.  One member, appointed by the Governor, who

15  represents the Agency for Health Care Administration; and

16         11.  One member, appointed by the Chief Financial

17  Officer, from among three members nominated by the Florida

18  Association of Counties, representing rural counties;

19         12.  One member, appointed by the Governor, from among

20  three members nominated by the Florida Association of

21  Counties, representing urban counties; and

22         13.11.  The State Health Officer or her or his

23  designee.

24         (6)  LICENSING NOT REQUIRED; FISCAL OPERATION.--

25         (a)  The corporation shall not be deemed an insurer.

26  The officers, directors, and employees of the corporation

27  shall not be deemed to be agents of an insurer. Neither the

28  corporation nor any officer, director, or employee of the

29  corporation is subject to the licensing requirements of the

30  insurance code or the rules of the Department of Financial

31  Services Insurance. However, any marketing representative


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                                           HB 3-E, First Engrossed



 1  utilized and compensated by the corporation must be appointed

 2  as a representative of the insurers or health services

 3  providers with which the corporation contracts.

 4         (c)  The Department of Financial Services Insurance

 5  shall supervise any liquidation or dissolution of the

 6  corporation and shall have, with respect to such liquidation

 7  or dissolution, all power granted to it pursuant to the

 8  insurance code.

 9         Section 15.  Sections 633.801, 633.802, 633.803,

10  633.804, 633.805, 633.806, 633.807, 633.808, 633.809, 633.810,

11  633.811, 633.812, 633.813, 633.814, 633.815, 633.816, 633.817,

12  633.818, 633.819, 633.820, and 633.821, Florida Statutes, are

13  created to read:

14         633.801  Short title.--Sections 633.801-633.821 may be

15  cited as the "Florida Firefighters Occupational Safety and

16  Health Act."

17         633.802  Definitions.--Unless the context clearly

18  requires otherwise, the following definitions shall apply to

19  ss. 633.801-633.821:

20         (1)  "Department" means the Department of Insurance.

21         (2)  "Division" means the Division of State Fire

22  Marshal of the department.

23         (3)  "Firefighter employee" means any person engaged in

24  any employment, public or private, as a firefighter under any

25  appointment or contract of hire or apprenticeship, express or

26  implied, oral or written, whether lawfully or unlawfully

27  employed, responding to or assisting with fire or medical

28  emergencies, whether or not the firefighter is on duty, except

29  those appointed under s. 590.02(1)(d).

30         (4)  "Firefighter employer" means the state and all

31  political subdivisions of this state, all public and


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                                           HB 3-E, First Engrossed



 1  quasi-public corporations in this state, and every person

 2  carrying on any employment for this state, political

 3  subdivisions of this state, and public and quasi-public

 4  corporations in this state which employs firefighters, except

 5  those appointed under s. 590.02(1)(d).

 6         (5)  "Firefighter employment" or "employment" means any

 7  service performed by a firefighter employee for the

 8  firefighter employer.

 9         (6)  "Firefighter place of employment" or "place of

10  employment" means the physical location at which the

11  firefighter is employed.

12         633.803  Legislative intent.--It is the intent of the

13  Legislature to enhance firefighter occupational safety and

14  health in the state through the implementation and maintenance

15  of policies, procedures, practices, rules, and standards that

16  reduce the incidence of firefighter employee accidents,

17  firefighter employee occupational diseases, and firefighter

18  employee fatalities compensable under chapter 440 or

19  otherwise.  The Legislature further intends that the division

20  develop a means by which the division can identify individual

21  firefighter employers with a high frequency or severity of

22  work-related injuries, conduct safety inspections of those

23  firefighter employers, and assist those firefighter employers

24  in the development and implementation of firefighter employee

25  safety and health programs.  In addition, it is the intent of

26  the Legislature that the division administer the provisions of

27  ss. 633.801-633.821; provide assistance to firefighter

28  employers, firefighter employees, and insurers; and enforce

29  the policies, rules, and standards set forth in ss.

30  633.801-633.821.

31  


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                                           HB 3-E, First Engrossed



 1         633.804  Safety inspections and consultations;

 2  rules.--The division shall adopt rules governing the manner,

 3  means, and frequency of firefighter employer and firefighter

 4  employee safety inspections and consultations by all insurers

 5  and self-insurers.

 6         633.805  Division to make study of firefighter employee

 7  occupational diseases.--The division shall make a continuous

 8  study of firefighter employee occupational diseases and the

 9  ways and means for their control and prevention and shall

10  adopt rules necessary for such control and prevention.  For

11  this purpose, the division is authorized to cooperate with

12  firefighter employers, firefighter employees, and insurers and

13  with the Department of Health.

14         633.806  Investigations by the division; refusal to

15  admit; penalty.--

16         (1)  The division shall make studies and investigations

17  with respect to safety provisions and the causes of

18  firefighter employee injuries in firefighter employee places

19  of employment and shall make such recommendations to the

20  Legislature and firefighter employers and insurers as the

21  division considers proper as to the best means of preventing

22  firefighter injuries.  In making such studies and

23  investigations, the division may cooperate with any agency of

24  the United States charged with the duty of enforcing any law

25  securing safety against injury in any place of firefighter

26  employment covered by ss. 633.801-633.821 or any agency or

27  department of the state engaged in enforcing any law to ensure

28  safety for firefighter employees.

29         (2)  The division by rule may adopt procedures for

30  conducting investigations of firefighter employers under ss.

31  633.801-633.821.


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                                           HB 3-E, First Engrossed



 1         633.807  Safety; firefighter employer

 2  responsibilities.--Every firefighter employer shall furnish

 3  and use safety devices and safeguards, adopt and use methods

 4  and processes reasonably adequate to render such an employment

 5  and place of employment safe, and do every other thing

 6  reasonably necessary to protect the lives, health, and safety

 7  of such firefighter employees.  As used in this section, the

 8  terms "safe" and "safety," as applied to any employment or

 9  place of firefighter employment, mean such freedom from danger

10  as is reasonably necessary for the protection of the lives,

11  health, and safety of firefighter employees, including

12  conditions and methods of sanitation and hygiene. Safety

13  devices and safeguards required to be furnished by the

14  firefighter employer by this section or by the division under

15  authority of this section shall not include personal apparel

16  and protective devices that replace personal apparel normally

17  worn by firefighter employees during regular working hours.

18         633.808  Division authority.--The division shall:

19         (1)  Investigate and prescribe by rule what safety

20  devices, safeguards, or other means of protection must be

21  adopted for the prevention of accidents in every firefighter

22  employee place of employment or at any fire scene; determine

23  what suitable devices, safeguards, or other means of

24  protection for the prevention of occupational diseases must be

25  adopted or followed in any or all such firefighter places of

26  employment or at any fire scene; and adopt reasonable rules

27  for the prevention of accidents, the safety, protection, and

28  security of firefighter employees engaged in interior

29  firefighting, and the prevention of occupational diseases.

30         (2)  Ascertain, fix, and order such reasonable

31  standards and rules for the construction, repair, and


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                                           HB 3-E, First Engrossed



 1  maintenance of firefighter employee places of employment as

 2  shall render them safe.  Such rules and standards shall be

 3  adopted in accordance with chapter 120.

 4         (3)  Assist firefighter employers in the development

 5  and implementation of firefighter employee safety training

 6  programs by contracting with professional safety

 7  organizations.

 8         (4)  Adopt rules prescribing recordkeeping

 9  responsibilities for firefighter employers, which may include

10  maintaining a log and summary of occupational injuries,

11  diseases, and illnesses, for producing on request a notice of

12  injury and firefighter employee accident investigation

13  records, and prescribing a retention schedule for such

14  records.

15         633.809  Firefighter employers whose firefighter

16  employees have a high frequency of work-related injuries.--The

17  division shall develop a means by which the division may

18  identify individual firefighter employers whose firefighter

19  employees have a high frequency or severity of work-related

20  injuries.  The division shall carry out safety inspections of

21  the facilities and operations of those firefighter employers

22  in order to assist them in reducing the frequency and severity

23  of work-related injuries.  The division shall develop safety

24  and health programs for those firefighter employers.  Insurers

25  shall distribute such safety and health programs to the

26  firefighter employers so identified by the division.  Those

27  firefighter employers identified by the division as having a

28  high frequency or severity of work-related injuries shall

29  implement a safety and health program developed by the

30  division.  The division shall carry out safety inspections of

31  those firefighter employers so identified to ensure compliance


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                                           HB 3-E, First Engrossed



 1  with the safety and health program and to assist such

 2  firefighter employers in reducing the number of work-related

 3  injuries.  The division may not assess penalties as a result

 4  of such inspections, except as provided by s. 633.813.  Copies

 5  of any report made as the result of such an inspection shall

 6  be provided to the firefighter employer and its insurer.

 7  Firefighter employers may submit their own safety and health

 8  programs to the division for approval in lieu of using the

 9  safety and health program developed by the division.  The

10  division shall promptly review the program submitted and

11  approve or disapprove the program within 60 days or such

12  program shall be deemed approved.  Upon approval by the

13  division, the program shall be implemented by the firefighter

14  employer.  If the program is not approved or if a program is

15  not submitted, the firefighter employer shall implement the

16  program developed by the division.  The division shall adopt

17  rules setting forth the criteria for safety and health

18  programs, as such rules relate to this section.

19         633.810  Workplace safety committees and safety

20  coordinators.--

21         (1)  In order to promote health and safety in

22  firefighter employee places of employment in this state:

23         (a)  Each firefighter employer of 20 or more

24  firefighter employees shall establish and administer a

25  workplace safety committee in accordance with rules adopted

26  under this section.

27         (b)  Each firefighter employer of fewer than 20

28  firefighter employees identified by the division as having

29  high frequency or high severity of work-related injuries shall

30  establish and administer a workplace safety committee or

31  designate a workplace safety coordinator who shall establish


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                                           HB 3-E, First Engrossed



 1  and administer workplace safety activities in accordance with

 2  rules adopted under this section.

 3         (2)  The division shall adopt rules:

 4         (a)  Prescribing the membership of the workplace safety

 5  committees so as to ensure an equal number of firefighter

 6  employee representatives who are volunteers or are elected by

 7  their peers and firefighter employer representatives, and

 8  specifying the frequency of meetings.

 9         (b)  Requiring firefighter employers to make adequate

10  records of each meeting and to file and to maintain the

11  records subject to inspection by the division.

12         (c)  Prescribing the duties and functions of the

13  workplace safety committee and workplace safety coordinator,

14  which include, but are not limited to:

15         1.  Establishing procedures for workplace safety

16  inspections by the committee.

17         2.  Establishing procedures for investigating all

18  workplace accidents, safety-related incidents, illnesses, and

19  deaths.

20         3.  Evaluating accident prevention and illness

21  prevention programs.

22         4.  Prescribing guidelines for the training of safety

23  committee members.

24         (3)  The composition, selection, and function of

25  workplace safety committees shall be a mandatory topic of

26  negotiations with any certified collective bargaining agent

27  for firefighter employers that operate under a collective

28  bargaining agreement.  Firefighter employers that operate

29  under a collective bargaining agreement that contains

30  provisions regulating the formation and operation of workplace

31  safety committees that meet or exceed the minimum requirements


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                                           HB 3-E, First Engrossed



 1  contained in this section, or firefighter employers who

 2  otherwise have existing workplace safety committees that meet

 3  or exceed the minimum requirements established by this

 4  section, are in compliance with this section.

 5         (4)  Firefighter employees shall be compensated their

 6  regular hourly wage while engaged in workplace safety

 7  committee or workplace safety coordinator training, meetings,

 8  or other duties prescribed under this section.

 9         633.811  Firefighter employer penalties.--If any

10  firefighter employer violates or fails or refuses to comply

11  with ss. 633.801-633.821, or with any rule adopted by the

12  division under such sections in accordance with chapter 120

13  for the prevention of injuries, accidents, or occupational

14  diseases or with any lawful order of the division in

15  connection with ss. 633.801-633.821, or fails or refuses to

16  furnish or adopt any safety device, safeguard, or other means

17  of protection prescribed by division rule under ss.

18  633.801-633.821 for the prevention of accidents or

19  occupational diseases, the division may assess against the

20  firefighter employer a civil penalty of not less than $100 nor

21  more than $5,000 for each day the violation, omission,

22  failure, or refusal continues after the firefighter employer

23  has been given written notice of such violation, omission,

24  failure, or refusal.  The total penalty for each violation

25  shall not exceed $50,000.  The division shall adopt rules

26  requiring penalties commensurate with the frequency or

27  severity of safety violations.  A hearing shall be held in the

28  county in which the violation, omission, failure, or refusal

29  is alleged to have occurred, unless otherwise agreed to by the

30  firefighter employer and authorized by the division.  All

31  penalties assessed and collected under this section shall be


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                                           HB 3-E, First Engrossed



 1  deposited in the Insurance Commissioner's Regulatory Trust

 2  Fund.

 3         633.812  Division cooperation with Federal Government;

 4  exemption from requirements for private firefighter

 5  employers.--

 6         (1)  The division shall cooperate with the Federal

 7  Government so that duplicate inspections will be avoided while

 8  at the same time ensuring safe firefighter employee places of

 9  employment for the citizens of this state.

10         (2)  Except as provided in this section, a private

11  firefighter employer is not subject to the requirements of the

12  division if:

13         (a)  The private firefighter employer is subject to the

14  federal regulations in 29 C.F.R. ss. 1910 and 1926.

15         (b)  The private firefighter employer has adopted and

16  implemented a written safety program that conforms to the

17  requirements of 29 C.F.R. ss. 1910 and 1926.

18         (c)  A private firefighter employer with 20 or more

19  full-time firefighter employees shall include provisions for a

20  safety committee in the safety program.  The safety committee

21  shall include firefighter employee representation and shall

22  meet at least once each calendar quarter.  The private

23  firefighter employer shall make adequate records of each

24  meeting and maintain the records subject to inspections under

25  subsection (3).  The safety committee shall, if appropriate,

26  make recommendations regarding improvements to the safety

27  program and corrections of hazards affecting workplace safety.

28         (d)  The private firefighter employer provides the

29  division with a written statement that certifies compliance

30  with this subsection.

31  


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                                           HB 3-E, First Engrossed



 1         (3)  The division may enter at any reasonable time any

 2  place of private firefighter employment for the purpose of

 3  verifying the accuracy of the written certification.  If the

 4  division determines that the private firefighter employer has

 5  not complied with the requirements of subsection (2), the

 6  private firefighter employer shall be subject to the rules of

 7  the division until the private firefighter employer complies

 8  with subsection (2) and recertifies that fact to the division.

 9         (4)  This section shall not restrict the division's

10  performance of any duties pursuant to a written contract

11  between the division and the federal Occupational Safety and

12  Health Administration.

13         633.813  Failure to implement a safety and health

14  program; cancellations.--If a firefighter employer that is

15  found by the division to have a high frequency or severity of

16  work-related injuries fails to implement a safety and health

17  program, the insurer or self-insurer's fund that is providing

18  coverage for the firefighter employer may cancel the contract

19  for insurance with the firefighter employer.  In the

20  alternative, the insurer or fund may terminate any discount or

21  deviation granted to the firefighter employer for the

22  remainder of the term of the policy.  If the contract is

23  canceled or the discount or deviation is terminated, the

24  insurer shall make such reports as are required by law.

25         633.814  Expenses of administration.--The amounts that

26  are needed to administer ss. 633.801-633.821 shall be

27  disbursed from the Insurance Commissioner's Regulatory Trust

28  Fund.

29         633.815  Refusal to admit; penalty.--The division and

30  authorized representatives of the division may enter and

31  inspect any firefighter place of employment at any reasonable


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                                           HB 3-E, First Engrossed



 1  time for the purpose of investigating compliance with ss.

 2  633.801-633.821 and conducting inspections for the proper

 3  enforcement of ss. 633.801-633.821.  A firefighter employer

 4  who refuses to admit any member of the division or authorized

 5  representative of the division to any place of employment or

 6  to allow investigation and inspection pursuant to this section

 7  commits a misdemeanor of the second degree, punishable as

 8  provided in s. 775.082 or s. 775.083.

 9         633.816  Firefighter employee rights and

10  responsibilities.--

11         (1)  Each firefighter employee of a firefighter

12  employer covered under ss. 633.801-633.821 shall comply with

13  rules adopted by the division and with reasonable workplace

14  safety and health standards, rules, policies, procedures, and

15  work practices established by the firefighter employer and the

16  workplace safety committee.  A firefighter employee who

17  knowingly fails to comply with this subsection may be

18  disciplined or discharged by the firefighter employer.

19         (2)  A firefighter employer may not discharge, threaten

20  to discharge, cause to be discharged, intimidate, coerce,

21  otherwise discipline, or in any manner discriminate against a

22  firefighter employee for any of the following reasons:

23         (a)  The firefighter employee has testified or is about

24  to testify, on her or his own behalf or on behalf of others,

25  in any proceeding instituted under ss. 633.801-633.821;

26         (b)  The firefighter employee has exercised any other

27  right afforded under ss. 633.801-633.821; or

28         (c)  The firefighter employee is engaged in activities

29  relating to the workplace safety committee.

30  

31  


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                                           HB 3-E, First Engrossed



 1         (3)  No pay, position, seniority, or other benefit may

 2  be lost for exercising any right under, or for seeking

 3  compliance with any requirement of, ss. 633.801-633.821.

 4         633.817  Compliance.--Failure of a firefighter employer

 5  or an insurer to comply with ss. 633.801-633.821, or with any

 6  rules adopted under ss. 633.801-633.821, constitutes grounds

 7  for the division to seek remedies, including injunctive

 8  relief, by making appropriate filings with the circuit court.

 9         633.818  False statements to insurers.--A firefighter

10  employer who knowingly and willfully falsifies or conceals a

11  material fact, who makes a false, fictitious, or fraudulent

12  statement or representation, or who makes or uses any false

13  document knowing the document to contain any false,

14  fictitious, or fraudulent entry or statement to an insurer of

15  workers' compensation insurance under ss. 633.801-633.821

16  commits a misdemeanor of the second degree, punishable as

17  provided in s. 775.082 or s. 775.083.

18         633.819  Matters within jurisdiction of the division;

19  false, fictitious, or fraudulent acts, statements, and

20  representations prohibited; penalty; statute of

21  limitations.--A person may not, in any matter within the

22  jurisdiction of the division, knowingly and willfully falsify

23  or conceal a material fact; make any false, fictitious, or

24  fraudulent statement or representation; or make or use any

25  false document, knowing the same to contain any false,

26  fictitious, or fraudulent statement or entry.  A person who

27  violates this section commits a misdemeanor of the second

28  degree, punishable as provided in s. 775.082 or s. 775.083.

29  The statute of limitations for prosecution of an act committed

30  in violation of this section is 5 years after the date the act

31  was committed or, if not discovered within 30 days after the


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                                           HB 3-E, First Engrossed



 1  act was committed, 5 years after the date the act was

 2  discovered.

 3         633.820  Volunteer firefighters.--Sections

 4  633.803-633.821 apply to volunteer firefighters and volunteer

 5  fire departments.

 6         633.821  Workplace safety.--

 7         (1)  The division shall assist in making the

 8  firefighter employee place of employment a safer place to work

 9  and decreasing the frequency and severity of on-the-job

10  injuries in such workplace.

11         (2)  The division shall have the authority to adopt

12  rules for the purpose of ensuring safe working conditions for

13  all firefighter employees by authorizing the enforcement of

14  effective standards, by assisting and encouraging firefighter

15  employers to maintain safe working conditions, and by

16  providing for education and training in the field of safety.

17  Specifically, the division may by rule adopt all or any part

18  of subparts C through T and subpart Z of 29 C.F.R. s. 1910, as

19  revised April 8, 1998; the National Fire Protection

20  Association, Inc., Standard 1500, paragraph 5-7 (Personal

21  Alert Safety System) (1992 edition); and ANSI A 10.4-1990.

22         (3)  With respect to 29 C.F.R. s. 1910.134(g)(4), the

23  two individuals located outside the immediately dangerous to

24  life and health atmosphere may be assigned to an additional

25  role, such as incident commander, pumper operator, engineer,

26  or driver, so long as such individual is able to immediately

27  perform assistance or rescue activities without jeopardizing

28  the safety or health of any firefighter working at an

29  incident.  Also with respect to 29 C.F.R. s. 1910.134(g)(4):

30  

31  


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                                           HB 3-E, First Engrossed



 1         (a)  Each county, municipality, and special district

 2  shall implement such provision by April 1, 2002, except as

 3  provided in paragraphs (b) and (c).

 4         (b)  If any county, municipality, or special district

 5  is unable to implement such provision by April 1, 2002,

 6  without adding additional personnel to its firefighting staff

 7  or expending significant additional funds, such county,

 8  municipality, or special district shall have an additional 6

 9  months within which to implement such provision. Such county,

10  municipality, or special district shall notify the division

11  that the 6-month extension to implement such provision is in

12  effect in such county, municipality, or special district

13  within 30 days after its decision to extend the time for the

14  additional 6 months. The decision to extend the time for

15  implementation shall be made prior to April 1, 2002.

16         (c)  If, after the extension granted in paragraph (b),

17  the county, municipality, or special district, after having

18  worked with and cooperated fully with the division and the

19  Firefighters Employment, Standards, and Training Council, is

20  still unable to implement such provisions without adding

21  additional personnel to its firefighting staff or expending

22  significant additional funds, such municipality, county, or

23  special district shall be exempt from the requirements of 29

24  C.F.R. s. 1910.134(g)(4).  However, each year thereafter the

25  division shall review each such county, municipality, or

26  special district to determine if such county, municipality, or

27  special district has the ability to implement such provision

28  without adding additional personnel to its firefighting staff

29  or expending significant additional funds.  If the division

30  determines that any county, municipality, or special district

31  has the ability to implement such provision without adding


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                                           HB 3-E, First Engrossed



 1  additional personnel to its firefighting staff or expending

 2  significant additional funds, the division shall require such

 3  county, municipality, or special district to implement such

 4  provision.  Such requirement by the division under this

 5  paragraph constitutes final agency action subject to chapter

 6  120.

 7         (4)  The provisions of chapter 440 that pertain to

 8  workplace safety apply to the division.

 9         (5)  The division may adopt any rule necessary to

10  implement, interpret, and make specific the provisions of this

11  section, provided the division may not adopt by rule any other

12  standard or standards of the Occupational Safety and Health

13  Administration or the National Fire Protection Association

14  relating solely to ss. 633.801-633.821 and firefighter

15  employment safety without specific legislative authority.

16         Section 16.  Section 633.31, Florida Statutes, is

17  amended to read:

18         633.31  Firefighters Employment, Standards, and

19  Training Council.--

20         (1)  There is created within the Department of

21  Insurance a Firefighters Employment, Standards, and Training

22  Council of 13 nine members appointed by the State Fire

23  Marshal.  Two members shall be fire chiefs appointed by the

24  Florida Fire Chiefs Association, two members shall be

25  firefighters who are not officers, appointed by the Florida

26  Professional Firefighters Association, two members shall be

27  firefighter officers who are not fire chiefs, appointed by the

28  State Fire Marshal, one member appointed by the Florida League

29  of Cities, one member appointed by the Florida Association of

30  Counties, one member appointed by the Florida Association of

31  Special Districts, one member appointed by the Florida Fire


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                                           HB 3-E, First Engrossed



 1  Marshal's Association, and one member appointed by the State

 2  Fire Marshal, and one member shall be a director or instructor

 3  of a state-certified firefighting training facility appointed

 4  by the State Fire Marshal. To be eligible for appointment as a

 5  fire chief member, firefighter officer member, firefighter

 6  member, or a director or instructor of a state-certified

 7  firefighting facility, a person shall have had at least 4

 8  years' experience in the firefighting profession. The

 9  remaining member, who shall be appointed by the State Fire

10  Marshal, two members shall not be a member or representative

11  members of the firefighting profession or of any local

12  government. Members shall serve only as long as they continue

13  to meet the criteria under which they were appointed, or

14  unless a member has failed to appear at three consecutive and

15  properly noticed meetings unless excused by the chair.

16         (2)  Initially, the State Fire Marshal shall appoint

17  three members for terms of 4 years, two members for terms of 3

18  years, two members for terms of 2 years, and two members for

19  terms of 1 year.  Thereafter, Members shall be appointed for

20  4-year terms and in no event shall a member serve more than

21  two consecutive terms.  Any vacancy shall be filled in the

22  manner of the original appointment for the remaining time of

23  the term.

24         (3)  The State Fire Marshal, in making her or his

25  appointments, shall take into consideration representation by

26  geography, population, and other relevant factors, in order

27  that the membership on the council will be apportioned to give

28  representation to the state at large rather than to a

29  particular area.

30         (4)  Membership on the council shall not disqualify a

31  member from holding any other public office or being employed


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                                           HB 3-E, First Engrossed



 1  by a public entity, except that no member of the Legislature

 2  shall serve on the council.

 3         Section 17.  Subsections (4) and (5) of section 633.33,

 4  Florida Statutes, are amended to read:

 5         633.33  Special powers; firefighter training.--The

 6  council shall have special powers in connection with the

 7  employment and training of firefighters to:

 8         (4)  Consult and cooperate with any employing agency,

 9  university, college, community college, the Florida State Fire

10  College, or other educational institution concerning the

11  employment and safety of firefighters, including, but not

12  limited to, the safety of firefighters while at the scene of a

13  fire or the scene of an incident related to the provision of

14  emergency services to which a firefighter responds, and the

15  development of firefighter training schools and programs of

16  courses of instruction, including, but not limited to,

17  education and training in the areas of firefighter employment,

18  fire science, fire technology, fire administration, and all

19  allied and supporting fields.

20         (5)  Make or support studies on any aspect of

21  firefighting employment, education, and training or

22  recruitment.

23         Section 18.  Paragraph (c) of subsection (3) of section

24  383.3362, Florida Statutes, is amended to read:

25         383.3362  Sudden Infant Death Syndrome.--

26         (3)  TRAINING.--

27         (c)  The Department of Health, in consultation with the

28  Emergency Medical Services Advisory Council, the Firefighters

29  Employment, Standards, and Training Council, and the Criminal

30  Justice Standards and Training Commission, shall develop and

31  adopt, by rule, curriculum that, at a minimum, includes


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                                           HB 3-E, First Engrossed



 1  training in the nature of SIDS, standard procedures to be

 2  followed by law enforcement agencies in investigating cases

 3  involving sudden deaths of infants, and training in responding

 4  appropriately to the parents or caretakers who have requested

 5  assistance.

 6         Section 19.  Subsection (4) of section 633.30, Florida

 7  Statutes, is amended to read:

 8         633.30  Standards for firefighting; definitions.--As

 9  used in this chapter:

10         (4)  "Council" means the Firefighters Employment,

11  Standards, and Training Council.

12         Section 20.  Subsection (4) of section 633.32, Florida

13  Statutes, is amended to read:

14         633.32  Organization; meetings; quorum; compensation;

15  seal.--

16         (4)  The council may adopt a seal for its use

17  containing the words "Firefighters Employment, Standards, and

18  Training Council."

19         Section 21.  The Legislature determines and declares

20  that this act fulfills an important state interest.

21         Section 22.  Effective June 30, 2002, paragraphs (a)

22  and (c) of subsection (1) and subsections (4), (5), (6), (7),

23  (8), and (9) of section 163.05, Florida Statutes, are amended

24  to read:

25         163.05  Small County Technical Assistance Program.--

26         (1)  Among small counties, the Legislature finds that:

27         (a)  The percentage of the population of small counties

28  residing in the unincorporated areas is relatively high based

29  on the United States Decennial Census of 2000 and increased

30  substantially between 1980 and 1990.

31  


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                                           HB 3-E, First Engrossed



 1         (c)  Fiscal shortfalls persist even though 12 13 of the

 2  small counties levied the maximum ad valorem millage

 3  authorized in their jurisdictions in 2001 1990 and an

 4  additional 15 13 small counties levied between 8 and 10 mills.

 5         (4)  The Commissioner of Agriculture Comptroller shall

 6  enter into contracts with program providers who shall:

 7         (a)  Be a foundation that meets the requirements for

 8  nonprofit status under s. 501(c)(3) of the Internal Revenue

 9  Code with a governing board which includes in its membership

10  county commissioners and professional staff of the county

11  public agency or private, nonprofit corporation, association,

12  or entity.

13         (b)  Have substantial and documented experience working

14  closely with county governments in providing both educational

15  and technical assistance.

16         (c)(b)  Use existing resources, services, and

17  information that are available from state or local agencies,

18  universities, or the private sector.

19         (d)(c)  Seek and accept funding from any public or

20  private source.

21         (d)  Annually submit information to assist the

22  Legislative Committee on Intergovernmental Relations in

23  preparing a performance review that will include an analysis

24  of the effectiveness of the program.

25         (e)  Assist small counties in developing alternative

26  revenue sources.

27         (f)  Provide assistance to small counties in the areas

28  such as of financial management, accounting, investing,

29  purchasing, planning and budgeting, debt issuance, public

30  management, management systems, computers and information

31  


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                                           HB 3-E, First Engrossed



 1  technology, economic and community development, and public

 2  safety management.

 3         (g)  Provide for an annual independent financial audit

 4  of the program.

 5         (h)  In each county served, conduct a needs assessment

 6  upon which the assistance provided for that county will be

 7  designed.

 8         (5)(a)  The Commissioner of Agriculture Comptroller

 9  shall issue a request for proposals to provide assistance to

10  small counties. The request for proposals shall be required no

11  more frequently than every third year beginning with fiscal

12  year 2004-2005. All contracts in existence on the effective

13  date of this act between the Comptroller and any other party

14  with respect to the Small County Technical Assistance Program

15  may be accepted by the Commissioner of Agriculture as the

16  party in interest and said contracts shall remain in full

17  force and effect according to their terms. At the request of

18  the Comptroller, the Legislative Committee on

19  Intergovernmental Relations shall assist in the preparation of

20  the request for proposals.

21         (b)  The Commissioner of Agriculture Comptroller shall

22  review each contract proposal submitted.

23         (c)  The Legislative Committee on Intergovernmental

24  Relations shall review each contract proposal and submit to

25  the Comptroller, in writing, advisory comments and

26  recommendations, citing with specificity the reasons for its

27  recommendations.

28         (c)(d)  The Commissioner of Agriculture Comptroller and

29  the council shall consider the following factors in reviewing

30  contract proposals:

31  


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                                           HB 3-E, First Engrossed



 1         1.  The demonstrated capacity of the provider to

 2  conduct needs assessments and implement the program as

 3  proposed.

 4         2.  The number of small counties to be served under the

 5  proposal.

 6         3.  The cost of the program as specified in a proposed

 7  budget.

 8         4.  The short-term and long-term benefits of the

 9  assistance to small counties.

10         5.  The form and extent to which existing resources,

11  services, and information that are available from state and

12  local agencies, universities, and the private sector will be

13  used by the provider under the contract.

14         (6)  A decision of the Commissioner of Agriculture

15  Comptroller to award a contract under this section is final

16  and shall be in writing with a copy provided to the

17  Legislative Committee on Intergovernmental Relations.

18         (7)  The Comptroller may enter into contracts and

19  agreements with other state and local agencies and with any

20  person, association, corporation, or entity other than the

21  program providers, for the purpose of administering this

22  section.

23         (7)(8)  The Commissioner of Agriculture Comptroller

24  shall provide fiscal oversight to ensure that funds expended

25  for the program are used in accordance with the contracts

26  entered into pursuant to subsection (4) and shall conduct a

27  performance review of the program as may be necessary to

28  ensure that the goals and objectives of the program are being

29  met.

30         (9)  The Legislative Committee on Intergovernmental

31  Relations shall annually conduct a performance review of the


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                                           HB 3-E, First Engrossed



 1  program. The findings of the review shall be presented in a

 2  report submitted to the Governor, the President of the Senate,

 3  the Speaker of the House of Representatives, and the

 4  Comptroller by January 15 of each year.

 5         Section 23.  Effective June 30, 2002, Specific

 6  Appropriation 2252 in the 2002-2003 General Appropriations Act

 7  is hereby repealed and an identical amount is hereby

 8  appropriated to the Department of Agriculture and Consumer

 9  Services from the General Revenue Fund for the purposes of

10  this act.

11         Section 24.  Except as otherwise provided herein, this

12  act shall take effect upon becoming a law.

13  

14  

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19  

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