Senate Bill sb1530c1

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    Florida Senate - 2003                           CS for SB 1530

    By the Committee on Commerce, Economic Opportunities, and
    Consumer Services; and Senators Villalobos and Fasano




    310-2482-03

  1                      A bill to be entitled

  2         An act relating to fraud prevention; creating

  3         the Fraud Prevention Unit within the Office of

  4         the Attorney General to improve and coordinate

  5         the state's response to fraud and related

  6         crimes; requiring the Fraud Prevention Unit to

  7         establish a Statewide Complaint Receipt and

  8         Referral Center to collect, refer, and analyze

  9         information concerning fraud; specifying goals

10         of the center; specifying responsibilities of

11         the Fraud Prevention Unit; providing

12         requirements for projects supported by the

13         Fraud Prevention Unit; requiring the unit to

14         develop public information programs and

15         establish recommended training curricula;

16         authorizing the Attorney General to use

17         volunteers; providing that volunteers are

18         exempt from liability under the Florida

19         Volunteer Protection Act; requiring the Fraud

20         Prevention Unit to coordinate its

21         investigations with other law enforcement

22         agencies and victim assistance programs;

23         requiring the unit to use services of the

24         Federal Trade Commission; requiring that the

25         unit avoid duplicating services but communicate

26         the availability of those services; providing

27         for the use of donated funds and resources;

28         authorizing state agencies and local businesses

29         to assign employees to assist the unit;

30         authorizing the unit to assist victims in

31         correcting credit reports or other identifying

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    Florida Senate - 2003                           CS for SB 1530
    310-2482-03




 1         information; prohibiting the unit from

 2         providing legal representation to victims of

 3         fraud; providing an effective date.

 4  

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

 6  

 7         Section 1.  Fraud prevention.--

 8         (1)  There is created within the Office of the Attorney

 9  General the Fraud Prevention Unit. The mission of the unit is

10  to improve this state's response to fraud and crimes related

11  to fraud using cooperative efforts between state agencies,

12  businesses in the private sector, and private citizen

13  volunteers.

14         (2)(a)  The Fraud Prevention Unit shall establish a

15  Statewide Complaint Receipt and Referral Center to which

16  victims of fraud may immediately turn in order to obtain

17  information and general assistance in dealing with a crime.

18  The center shall serve as an easily accessed, single point of

19  contact for consumers who are, or suspect that they may be,

20  victims of fraud and shall bridge the gap between the public,

21  state agencies, consumer organizations, and private

22  businesses. The center shall establish an effective program

23  for collecting, referring, and analyzing information and data

24  concerning fraud. The center shall focus on the goals of:

25         1.  Prevention, which includes the education of

26  consumers, businesses, and law enforcement agencies.

27         2.  Reporting, which includes information regarding

28  victims of fraud and persons suspected of committing fraud.

29         3.  Restoration, which includes, if necessary,

30  returning the victim's credit and name to their original

31  status.

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    Florida Senate - 2003                           CS for SB 1530
    310-2482-03




 1         (b)  The center shall properly collect, track, analyze,

 2  and disseminate data concerning complaints in order to better

 3  address short-term enforcement concerns and long-term strategy

 4  requirements. The center shall:

 5         1.  Provide a statewide methodology to manage complaint

 6  information from consumers, regulatory and enforcement

 7  agencies, affected businesses in the private sector, and

 8  consumer support organizations.

 9         2.  Identify related complaints.

10         3.  Collect, analyze, and produce accurate data

11  concerning the scope of fraud.

12         4.  Develop and implement timely prevention and

13  education programs to reduce victimization by fraud, as well

14  as to provide important response strategies to those who have

15  discovered that they are victims of fraud.

16         5.  Share complaint information and fraud data among

17  persons involved in investigations in the public and private

18  sector in a timely manner.

19         (3)  In meeting its mission, the responsibilities of

20  the Fraud Prevention Unit shall include, but are not limited

21  to:

22         (a)  Creating an effective public and private

23  partnership to cooperatively address criminal fraud within the

24  state as it affects individual citizens and businesses. The

25  public and private partnership shall include professionals in

26  the fields of communications, financial services, insurance,

27  information management, law, marketing, technology, retail

28  sales, government, and law enforcement.

29         (b)  Providing timely and effective information to the

30  public and to businesses in this state regarding the types of

31  fraud that may be perpetrated upon them and the efforts that

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    Florida Senate - 2003                           CS for SB 1530
    310-2482-03




 1  may be taken to lessen the possibility of becoming a victim of

 2  such fraud.

 3         (c)  Providing information to the public and businesses

 4  and encouraging the use of new and innovative refinements for

 5  fraud prevention in this state, including the use of Internet

 6  resources to facilitate access to government and private

 7  sector programs designed to assist fraud victims.

 8         (d)  Furthering the goal of a statewide fraud

 9  prevention network by supporting the initiation or expansion

10  of statewide and local efforts with regard to crime

11  prevention, awareness, and education.

12         (e)  Supporting the development of a coordinated

13  service network, including the exchange of information and

14  referral of cases between programs such as local victim and

15  witness assistance programs, state and local programs

16  providing services to the elderly, or any other established

17  and recognizable local program devoted to decreasing the crime

18  of fraud and reducing its impact upon victims.

19         (f)  Promoting a greater awareness of fraud and

20  encouraging a cooperative response to fraud by state and local

21  law enforcement officers and prosecutors, private security

22  officers, and business representatives.

23         (g)  Strengthening and expanding options for

24  communication to victims of fraud in order to assist them in

25  determining the extent of the fraud perpetrated against them,

26  assist them during the investigation and prosecution of the

27  criminal fraud, and assist them in recouping losses from fraud

28  and managing the consequences of such fraud.

29         (h)  Providing general support and assistance for fraud

30  victims while they are involved with the criminal justice

31  

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    Florida Senate - 2003                           CS for SB 1530
    310-2482-03




 1  system during the investigation of fraud as a crime and the

 2  prosecution of those who perpetrated the fraud.

 3         (i)  Providing information or sources of information of

 4  value to victims as they cope with the ramifications of

 5  criminal fraud, including, but not limited to, reestablishing

 6  credit ratings and credit damaged or destroyed by reason of

 7  identity theft or other fraud and theft.

 8         (j)  Assisting in the identification and effective

 9  delivery of training and awareness programs related to fraud

10  detection, investigation, prevention, and consequence

11  management.

12         (4)  With respect to the initiation or expansion of

13  local crime prevention efforts, projects supported by the

14  Fraud Prevention Unit shall, consistent with available

15  resources:

16         (a)  Use suitable and effective outreach and

17  educational techniques in order to raise the awareness of the

18  public with regard to potential fraud, efforts that can be

19  made to avoid becoming a victim of fraud, and ways to respond

20  when fraudulent activity is believed to have occurred.

21         (b)  Develop and deliver crime prevention information

22  to the elderly regarding fraud, theft, grand theft, and

23  burglary.

24         (c)  Develop programs to provide literature on

25  training, information, and prevention to law enforcement

26  officers, caregivers for the elderly, health care

27  practitioners, and social service providers regarding fraud

28  perpetrated upon the elderly as well as other segments of the

29  state's population.

30         (d)  In cooperation with the Criminal Justice Standards

31  and Training Commission, establish recommended curricula for

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    Florida Senate - 2003                           CS for SB 1530
    310-2482-03




 1  training law enforcement officers in detecting, investigating,

 2  and preventing fraud and provide recommendations for the role

 3  of law enforcement officers in assisting victims of fraud to

 4  recover stolen property, address identity theft, reestablish

 5  credit ratings damaged or destroyed by reason of fraud, and

 6  otherwise respond to the impact of fraud.

 7         (e)  Review educational and intervention programs

 8  designed to prevent fraud in order to determine a program's

 9  potential application and value in addressing various types of

10  fraud perpetrated upon the public and maximize the

11  availability of effective programs to law enforcement agencies

12  and persons dealing with fraud and its impact.

13         (f)  Establish programs devoted to fraud prevention

14  through establishing partnership initiatives using volunteers

15  and the support of private businesses.

16         (5)  Any initiative or program funded under this

17  section must demonstrate ongoing effectiveness in assisting

18  the Office of the Attorney General in implementing the mission

19  defined in this section.

20         (6)  The Attorney General may employ personnel as

21  necessary and to the extent funding is available in order to

22  ensure that the Fraud Prevention Unit meets the mission

23  defined by this section. The Attorney General may use

24  volunteers to assist the unit and these volunteers are covered

25  by the provisions of section 768.1355, Florida Statutes.

26         (7)  In meeting its mission, the Fraud Prevention Unit

27  shall design its efforts to focus primarily on organized,

28  multijurisdictional fraud; violations of section 775.0844,

29  Florida Statutes, the White Collar Crime Victim Protection

30  Act; or other types of fraud that involve large numbers of

31  real or potential victims. The Fraud Prevention Unit shall, to

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    Florida Senate - 2003                           CS for SB 1530
    310-2482-03




 1  the greatest extent possible, coordinate its efforts related

 2  to investigations with the Department of Law Enforcement and

 3  coordinate its efforts related to prosecutions of

 4  multijurisdictional fraud with the Office of Statewide

 5  Prosecution. However, this section does not prohibit the

 6  referral of any cases developed by, through, or with the

 7  assistance of the unit to any appropriate investigative or

 8  prosecutorial entity. The unit shall, to the greatest extent

 9  possible, coordinate its efforts related to assisting fraud

10  victims with the victim assistance programs and units

11  presently established within or coordinated by the Office of

12  the Attorney General, other state agencies, the various victim

13  advocates within the state attorneys' offices, and victim

14  support entities within the Federal Government and the private

15  sector.

16         (8)  The Fraud Prevention Unit shall use and promote

17  the services of the Federal Trade Commission, including, but

18  not limited to, the commission's toll-free telephone services

19  and capabilities for Internet access, when such services are

20  relevant to addressing the perpetration of fraud against the

21  public and businesses in this state. The unit shall avoid

22  duplicating services that are provided by other entities, but

23  shall ensure that the availability of such services is clearly

24  communicated to those seeking the unit's assistance.

25         (9)  The Fraud Prevention Unit shall be developed and

26  operated using funds and resources donated to the Office of

27  the Attorney General by businesses and others that are

28  specifically designated for use by the unit. Funds received by

29  the unit shall be deposited into the Fraud Prevention Unit

30  Trust Fund and may be expended upon authorization by the

31  Legislature or the Legislative Budget Commission. Any state or

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    Florida Senate - 2003                           CS for SB 1530
    310-2482-03




 1  local agency may temporarily assign an employee to the unit to

 2  assist in its staffing or operations. A private business may

 3  temporarily assign its employees to work with the unit;

 4  however, any employee so assigned remains at all times an

 5  employee of the private business. The Attorney General may use

 6  volunteers to assist in the operations of the unit.

 7         (10)  Upon a request by a victim of fraud or a similar

 8  crime that is within the scope of the mission of the Fraud

 9  Prevention Unit, the unit may assist the victim in obtaining

10  information necessary to correct inaccuracies or errors in the

11  victim's credit report or other identifying information.

12  However, the unit may not provide legal representation to a

13  victim of fraud.

14         Section 2.  This act shall take effect July 1, 2004.

15  

16          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
17                         Senate Bill 1530

18                                 

19  The committee substitute differs from the original bill by:

20  1)   removing the Attorney General's discretion to choose
         where to locate the Statewide Complaint Receipt and
21       Referral Center;

22  2)   removing the requirement that existing resources of the
         Office of the Attorney General be used to operate the
23       Fraud Prevention Unit (FPU);

24  3)   removing the prohibition against using funds received by
         the FPU to fund positions for investigators, law
25       enforcement officers, or prosecutors;

26  4)   designating a Fraud Prevention Unit Trust Fund, which has
         not yet been created, to receive donated funds to the
27       unit; and

28  5)   changing the effective date of the act from 2003 to 2004.

29  

30  

31  

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