HB 1695

CS

CHAMBER ACTION

1	The Committee on State Administration recommends the following:
2
3	Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to the Department of Financial Services;
7	transferring regulation of insurance adjusters from the
8	Office of Insurance Regulation to the Department of
9	Financial Services; amending s. 17.16, F.S.; providing for
10	the Chief Financial Officer to have an official seal for
11	certain purposes; amending s. 20.121, F.S.; providing for
12	the Chief Financial Officer to also be known as the
13	Treasurer; providing for the head of the Office of
14	Insurance Regulation to also be known as the Commissioner
15	of Insurance Regulation; providing for the head of the
16	Office of Financial Regulation to also be known as the
17	Commissioner of Financial Regulation; amending ss.
18	110.1227, 408.05, 516.35, 624.313, 624.317, 624.501,
19	626.016, 626.112, 626.161, 626.171, 626.181, 626.191,
20	626.211, 626.221, 626.231, 626.241, 626.251, 626.261,
21	626.266, 626.271, 626.281, 626.2817, 626.291, 626.301,
22	626.371, 626.381, 626.431, 626.461, 626.471, 626.521,
23	626.541, 626.551, 626.611, 626.621, 626.631, 626.641,
24	626.661, 626.681, 626.691, 626.692, 626.8582, 626.8584,
25	626.859, 626.863, 626.865, 626.866, 626.867, 626.869,
26	626.8695, 626.8696, 626.8697, 626.8698, 626.870, 626.871,
27	626.872, 626.873, 626.8732, 626.8734, 626.8736, 626.8738,
28	626.874, 626.878, 627.7012, 626.9543, 626.989, 627.0628,
29	627.285, and 627.6699, F.S.; reallocating duties and
30	responsibilities of the department, the office, and the
31	Financial Services Commission to conform; reallocating
32	duties and responsibilities of the director of the office
33	and the Chief Financial Officer to conform; specifying
34	that the transfer does not affect the regulation of
35	adjusters in administrative or judicial proceedings;
36	providing for substitution of appropriate parties in
37	interest in such proceedings; preserving certain licenses,
38	forms, and actions; specifying application of rules of the
39	office regulating adjusters as rules of the department;
40	amending s. 501.212, F.S.; reallocating duties and
41	responsibilities of the department, the office, and the
42	Financial Services Commission to conform; expanding
43	certain nonapplication provisions relating to certain real
44	estate practices to include persons or private parties
45	seeking certain relief for actions pertaining to
46	commercial real property under certain circumstances;
47	providing an exception; amending s. 215.31, F.S.;
48	requiring state agencies and other affiliated entities to
49	deposit any settlement proceeds resulting from a claim
50	brought on behalf of the state into the State Treasury;
51	providing exceptions; amending s. 215.95, F.S.; adding the
52	Commissioner of Agriculture to the Financial Management
53	Information Board; amending s. 215.96, F.S.; adding the
54	Commissioner of Agriculture to the Coordinating Council of
55	the Financial Management Information Board; delaying the
56	repeal date for provisions relating to the Enterprise
57	Resource Planning Integration Task Force; creating s.
58	17.0416, F.S.; authorizing the Chief Financial Officer to
59	provide certain services on a fee basis under certain
60	circumstances; authorizing the Department of Financial
61	Services to adopt rules; amending s. 17.57, F.S.;
62	expanding an authorization for the Chief Financial Officer
63	to invest certain funds to include reverse repurchase
64	agreements; amending s. 17.59, F.S.; requiring the Chief
65	Financial Officer to administer a collateral management
66	service for state agencies required to deposit or pledge
67	collateral; specifying eligible collateral arrangements;
68	authorizing the Chief Financial Officer to adopt rules to
69	manage and maintain the collateral management service;
70	requiring the Chief Financial Officer to collect certain
71	charges as specified in service level agreements; deleting
72	certain specified charges for copies and certificates;
73	amending s. 17.61, F.S.; expanding an authorization for
74	the Chief Financial Officer to invest certain funds of
75	certain boards, associations, or entities; amending s.
76	112.215, F.S.; requiring administrative costs of a
77	deferred compensation plan to be self-funded; requiring
78	self-funding fees to be paid by investment providers;
79	authorizing recoupment of such fees from plan
80	participants; requiring deposit of such fees into the
81	Deferred Compensation Trust Fund; authorizing certain
82	investment option providers to be exempt from certain
83	qualified public depository requirements; amending s.
84	287.064, F.S.; authorizing certain costs incurred pursuant
85	to guaranteed energy performance savings contracts to be
86	financed by a master equipment financing agreement;
87	providing an exception; providing time limitations on
88	certain repayments of funds; providing an effective date.
89
90	Be It Enacted by the Legislature of the State of Florida:
91
92	Section 1.  Section 17.16, Florida Statutes, is amended to
93	read:
94	17.16  Seal.--The seal of office of the Chief Financial
95	Officer shall have an official be the same as the seal by which
96	the proceedings of the office are authenticated heretofore used
97	for that purpose.
98	Section 2.  Subsection (1) and paragraph (a) of subsection
99	(3) of section 20.121, Florida Statutes, are amended to read:
100	20.121  Department of Financial Services.--There is created
101	a Department of Financial Services.
102	(1)  DEPARTMENT HEAD.--The head of the Department of
103	Financial Services is the Chief Financial Officer, who may also
104	be known as the Treasurer.
105	(3)  FINANCIAL SERVICES COMMISSION.--Effective January 7,
106	2003, there is created within the Department of Financial
107	Services the Financial Services Commission, composed of the
108	Governor, the Attorney General, the Chief Financial Officer, and
109	the Commissioner of Agriculture, which shall for purposes of
110	this section be referred to as the commission. Commission
111	members shall serve as agency head of the Financial Services
112	Commission. The commission shall be a separate budget entity and
113	shall be exempt from the provisions of s. 20.052. Commission
114	action shall be by majority vote consisting of at least three
115	affirmative votes. The commission shall not be subject to
116	control, supervision, or direction by the Department of
117	Financial Services in any manner, including purchasing,
118	transactions involving real or personal property, personnel, or
119	budgetary matters.
120	(a)  Structure.--The major structural unit of the
121	commission is the office. Each office shall be headed by a
122	director. The following offices are established:
123	1.  The Office of Insurance Regulation, which shall be
124	responsible for all activities concerning insurers and other
125	risk bearing entities, including licensing, rates, policy forms,
126	market conduct, claims, adjusters, issuance of certificates of
127	authority, solvency, viatical settlements, premium financing,
128	and administrative supervision, as provided under the insurance
129	code or chapter 636. The head of the Office of Insurance
130	Regulation is the Director of the Office of Insurance
131	Regulation, who may also be known as the Commissioner of
132	Insurance Regulation.
133	2.  The Office of Financial Regulation, which shall be
134	responsible for all activities of the Financial Services
135	Commission relating to the regulation of banks, credit unions,
136	other financial institutions, finance companies, and the
137	securities industry. The head of the office is the Director of
138	the Office of Financial Regulation, who may also be known as the
139	Commissioner of Financial Regulation. The Office of Financial
140	Regulation shall include a Bureau of Financial Investigations,
141	which shall function as a criminal justice agency for purposes
142	of ss. 943.045-943.08 and shall have a separate budget. The
143	bureau may conduct investigations within or outside this state
144	as the bureau deems necessary to aid in the enforcement of this
145	section. If, during an investigation, the office has reason to
146	believe that any criminal law of this state has or may have been
147	violated, the office shall refer any records tending to show
148	such violation to state or federal law enforcement or
149	prosecutorial agencies and shall provide investigative
150	assistance to those agencies as required.
151	Section 3.  Paragraph (b) of subsection (6) of section
152	110.1227, Florida Statutes, is amended to read:
153	110.1227  Florida Employee Long-Term-Care Plan Act.--
154	(6)  A Florida Employee Long-Term-Care Plan Board of
155	Directors is created, composed of nine members who shall serve
156	2-year terms, to be appointed after May 1, 1999, as follows:
157	(b)  The Director of the Office of Insurance Regulation
158	Chief Financial Officer shall appoint an actuary.
159	Section 4.  Paragraph (a) of subsection (8) of section
160	408.05, Florida Statutes, is amended to read:
161	408.05  State Center for Health Statistics.--
162	(8)  STATE COMPREHENSIVE HEALTH INFORMATION SYSTEM ADVISORY
163	COUNCIL.--
164	(a)  There is established in the agency the State
165	Comprehensive Health Information System Advisory Council to
166	assist the center in reviewing the comprehensive health
167	information system and to recommend improvements for such
168	system. The council shall consist of the following members:
169	1.  An employee of the Executive Office of the Governor, to
170	be appointed by the Governor.
171	2.  An employee of the Office of Insurance Regulation
172	Department of Financial Services, to be appointed by the
173	director of the office Chief Financial Officer.
174	3.  An employee of the Department of Education, to be
175	appointed by the Commissioner of Education.
176	4.  Ten persons, to be appointed by the Secretary of Health
177	Care Administration, representing other state and local
178	agencies, state universities, the Florida Association of
179	Business/Health Coalitions, local health councils, professional
180	health-care-related associations, consumers, and purchasers.
181	Section 5.  Subsection (4) of section 501.212, Florida
182	Statutes, is amended, and subsection (7) is added to said
183	section, to read:
184	501.212  Application.--This part does not apply to:
185	(4)  Any person or activity regulated under laws
186	administered by:
187	(a)  The Department of Financial Services or the Office of
188	Insurance Regulation of the Financial Services Commission; or
189	(b)  Banks and savings and loan associations regulated by
190	the Office of Financial Regulation of the Financial Services
191	Commission; or
192	(c)  Banks or savings and loan associations regulated by
193	federal agencies; or
194	(d)  Any person or activity regulated under the laws
195	administered by the former Department of Insurance that are now
196	administered by the Department of Financial Services.
197	(7)  Any person seeking relief for actions pertaining to
198	the commercial ownership, use, maintenance, development, or
199	possession of, or a lien of record upon, real property located
200	in this state if the parties to the action executed a written
201	contract or agreement that expressly provides for the process of
202	resolution of any dispute and the award of damages, attorney's
203	fees, and costs, if any, or if the action is one that concerns
204	maintenance of real property and there are provisions of law
205	that specifically require the owner of the property to comply
206	with applicable building, housing, and health codes and maintain
207	common areas in a good state of repair, appearance, safety, and
208	cleanliness and if the owner's failure to comply may result in
209	legal or equitable remedies, including the award of attorney's
210	fees. However, nothing in this subsection is intended to
211	prohibit the enforcing authority from retaining exclusive
212	jurisdiction to bring any cause of action authorized under s.
213	501.207 and to seek any civil penalty authorized under s.
214	501.2075 for actions pertaining to the ownership, use,
215	maintenance, development, or possession of, or a lien of record
216	upon, real property located in this state.
217	Section 6.  Subsection (1) of section 516.35, Florida
218	Statutes, is amended to read:
219	516.35  Credit insurance must comply with credit insurance
220	act.--
221	(1)  Tangible property offered as security may be
222	reasonably insured against loss for a reasonable term,
223	considering the circumstances of the loan. If such insurance is
224	sold at standard rates through a person duly licensed by the
225	Department Office of Insurance Regulation of the Financial
226	Services Commission and if the policy is payable to the borrower
227	or any member of her or his family, it shall not be deemed to be
228	a collateral sale, purchase, or agreement even though a
229	customary mortgagee clause is attached or the licensee is a
230	coassured.
231	Section 7.  Subsection (2) of section 624.313, Florida
232	Statutes, is amended to read:
233	624.313  Publications.--
234	(2)(a)  The department may prepare and have printed and
235	published in pamphlet or book form the following, as needed:
236	(a)1.  As needed, Questions and answers for the use of
237	persons applying for an examination for licensing as agents for
238	property, casualty, surety, health, and miscellaneous insurers.
239	(b)2.  As needed, Questions and answers for the use of
240	persons applying for an examination for licensing as agents for
241	life and health insurers.
242	(c)(b)  The office may prepare and have printed and
243	published in pamphlet or book form, As needed, Questions and
244	answers for the use of persons applying for an examination for
245	licensing as adjusters.
246	Section 8.  Section 624.317, Florida Statutes, is amended
247	to read:
248	624.317  Investigation of agents, adjusters,
249	administrators, service companies, and others.--If it has reason
250	to believe that any person has violated or is violating any
251	provision of this code, or upon the written complaint signed by
252	any interested person indicating that any such violation may
253	exist:
254	(1)  The department shall conduct such investigation as it
255	deems necessary of the accounts, records, documents, and
256	transactions pertaining to or affecting the insurance affairs of
257	any general agent, adjuster, surplus line agent, managing
258	general agent, insurance agent, customer representative, service
259	representative, or other person subject to its jurisdiction,
260	subject to the requirements of s. 626.601.
261	(2)  The office shall conduct such investigation as it
262	deems necessary of the accounts, records, documents, and
263	transactions pertaining to or affecting the insurance affairs of
264	any:
265	(a)  Adjuster, Administrator, service company, or other
266	person subject to its jurisdiction.
267	(b)  Person having a contract or power of attorney under
268	which she or he enjoys in fact the exclusive or dominant right
269	to manage or control an insurer.
270	(c)  Person engaged in or proposing to be engaged in the
271	promotion or formation of:
272	1.  A domestic insurer;
273	2.  An insurance holding corporation; or
274	3.  A corporation to finance a domestic insurer or in the
275	production of the domestic insurer's business.
276	Section 9.  Subsection (12) of section 624.501, Florida
277	Statutes, is amended to read:
278	624.501  Filing, license, appointment, and miscellaneous
279	fees.--The department, commission, or office, as appropriate,
280	shall collect in advance, and persons so served shall pay to it
281	in advance, fees, licenses, and miscellaneous charges as
282	follows:
283	(12)  Adjusters:
284	(a)  Adjuster's original appointment and biennial renewal
285	or continuation thereof, appointment fee..................$60.00
286	(b)  Nonresident adjuster's original appointment and
287	biennial renewal or continuation thereof, appointment
288	fee.......................................................$60.00
289	(c)  Emergency adjuster's license, appointment fee...$10.00
290	(d)  Fee to cover actual cost of credit report, when such
291	report must be secured by department office.
292	Section 10.  Subsections (1) and (2) of section 626.016,
293	Florida Statutes, are amended to read:
294	626.016  Powers and duties of department, commission, and
295	office.--
296	(1)  The powers and duties of the Chief Financial Officer
297	and the department specified in this part apply only with
298	respect to insurance agents, managing general agents, insurance
299	adjusters, reinsurance intermediaries, viatical settlement
300	brokers, customer representatives, service representatives, and
301	agencies.
302	(2)  The powers and duties of the commission and office
303	specified in this part apply only with respect to insurance
304	adjusters, service companies, administrators, and viatical
305	settlement providers and contracts.
306	Section 11.  Paragraph (a) of subsection (1) of section
307	626.112, Florida Statutes, is amended to read:
308	626.112  License and appointment required; agents, customer
309	representatives, adjusters, insurance agencies, service
310	representatives, managing general agents.--
311	(1)(a)  No person may be, act as, or advertise or hold
312	himself or herself out to be an insurance agent, insurance
313	adjuster, or customer representative unless he or she is
314	currently licensed by the department and appointed by an
315	appropriate appointing entity or person one or more insurers. No
316	person may be, act as, or advertise or hold himself or herself
317	out to be an insurance adjuster unless he or she is currently
318	licensed by the office and appointed by one or more insurers.
319
320	However, an employee leasing company licensed pursuant to
321	chapter 468 which is seeking to enter into a contract with an
322	employer that identifies products and services offered to
323	employees may deliver proposals for the purchase of employee
324	leasing services to prospective clients of the employee leasing
325	company setting forth the terms and conditions of doing
326	business; classify employees as permitted by s. 468.529; collect
327	information from prospective clients and other sources as
328	necessary to perform due diligence on the prospective client and
329	to prepare a proposal for services; provide and receive
330	enrollment forms, plans, and other documents; and discuss or
331	explain in general terms the conditions, limitations, options,
332	or exclusions of insurance benefit plans available to the client
333	or employees of the employee leasing company were the client to
334	contract with the employee leasing company. Any advertising
335	materials or other documents describing specific insurance
336	coverages must identify and be from a licensed insurer or its
337	licensed agent or a licensed and appointed agent employed by the
338	employee leasing company. The employee leasing company may not
339	advise or inform the prospective business client or individual
340	employees of specific coverage provisions, exclusions, or
341	limitations of particular plans. As to clients for which the
342	employee leasing company is providing services pursuant to s.
343	468.525(4), the employee leasing company may engage in
344	activities permitted by ss. 626.7315, 626.7845, and 626.8305,
345	subject to the restrictions specified in those sections. If a
346	prospective client requests more specific information concerning
347	the insurance provided by the employee leasing company, the
348	employee leasing company must refer the prospective business
349	client to the insurer or its licensed agent or to a licensed and
350	appointed agent employed by the employee leasing company.
351	Section 12.  Section 626.161, Florida Statutes, is amended
352	to read:
353	626.161  Licensing forms.--The department shall prescribe
354	and furnish all printed forms required in connection with the
355	application for issuance of and termination of all licenses and
356	appointments, except that, with respect to adjusters, the
357	commission shall prescribe and the office shall furnish such
358	forms.
359	Section 13.  Subsection (1), paragraph (f) of subsection
360	(2), and subsection (5) of section 626.171, Florida Statutes,
361	are amended to read:
362	626.171  Application for license.--
363	(1)  The department or office shall not issue a license as
364	agent, customer representative, adjuster, insurance agency,
365	service representative, managing general agent, or reinsurance
366	intermediary to any person except upon written application
367	therefor filed with it, qualification therefor, and payment in
368	advance of all applicable fees. Any such application shall be
369	made under the oath of the applicant and be signed by the
370	applicant. Beginning November 1, 2002, the department shall
371	accept the uniform application for nonresident agent licensing.
372	The department may adopt revised versions of the uniform
373	application by rule.
374	(2)  In the application, the applicant shall set forth:
375	(f)  Such other or additional information as the department
376	or office may deem proper to enable it to determine the
377	character, experience, ability, and other qualifications of the
378	applicant to hold himself or herself out to the public as an
379	insurance representative.
380	(5)  An application for a license as an agent, customer
381	representative, adjuster, insurance agency, service
382	representative, managing general agent, or reinsurance
383	intermediary must be accompanied by a set of the individual
384	applicant's fingerprints, or, if the applicant is not an
385	individual, by a set of the fingerprints of the sole proprietor,
386	majority owner, partners, officers, and directors, on a form
387	adopted by rule of the department or commission and accompanied
388	by the fingerprint processing fee set forth in s. 624.501.
389	Fingerprints shall be used to investigate the applicant's
390	qualifications pursuant to s. 626.201. The fingerprints shall be
391	taken by a law enforcement agency or other department-approved
392	entity.
393	Section 14.  Section 626.181, Florida Statutes, is amended
394	to read:
395	626.181  Number of applications for licensure
396	required.--After a license as agent, customer representative, or
397	After a license as agent, customer representative, or adjuster
398	has been issued to an individual, the same individual shall not
399	be required to take another examination for a similar license,
400	regardless, in the case of an agent, of the number of insurers
401	to be represented by him or her as agent, unless:
402	(1)  Specifically ordered by the department or office to
403	complete a new application for license; or
404	(2)  During any period of 48 months since the filing of the
405	original license application, such individual was not appointed
406	as an agent, customer representative, or adjuster, unless the
407	failure to be so appointed was due to military service, in which
408	event the period within which a new application is not required
409	may, in the discretion of the department or office, be extended
410	to 12 months following the date of discharge from military
411	service if the military service does not exceed 3 years, but in
412	no event to extend under this clause for a period of more than 6
413	years from the date of filing of the original application for
414	license.
415	Section 15.  Section 626.191, Florida Statutes, is amended
416	to read:
417	626.191  Repeated applications.--The failure of an
418	applicant to secure a license upon an application shall not
419	preclude him or her from applying again as many times as
420	desired, but the department or office shall not give
421	consideration to or accept any further application by the same
422	individual for a similar license dated or filed within 30 days
423	subsequent to the date the department or office denied the last
424	application, except as provided in s. 626.281.
425	Section 16.  Section 626.211, Florida Statutes, is amended
426	to read:
427	626.211  Approval, disapproval of application.--
428	(1)  If upon the basis of a completed application for
429	license and such further inquiry or investigation as the
430	department or office may make concerning an applicant the
431	department or office is satisfied that, subject to any
432	examination required to be taken and passed by the applicant for
433	a license, the applicant is qualified for the license applied
434	for and that all pertinent fees have been paid, it shall approve
435	the application. The department or office shall not deny, delay,
436	or withhold approval of an application due to the fact that it
437	has not received a criminal history report based on the
438	applicant's fingerprints.
439	(2)  Upon approval of an applicant for license as agent,
440	customer representative, or adjuster who is subject to written
441	examination, the department or office shall notify the applicant
442	when and where he or she may take the required examination.
443	(3)  Upon approval of an applicant for license who is not
444	subject to examination, the department or office shall promptly
445	issue the license.
446	(4)  If upon the basis of the completed application and
447	such further inquiry or investigation the department or office
448	deems the applicant to be lacking in any one or more of the
449	required qualifications for the license applied for, the
450	department or office shall disapprove the application and notify
451	the applicant, stating the grounds of disapproval.
452	Section 17.  Subsection (1) and paragraphs (a), (c), (d),
453	(f), (g), and (l) of subsection (2) of section 626.221, Florida
454	Statutes, are amended to read:
455	626.221  Examination requirement; exemptions.--
456	(1)  The department or office shall not issue any license
457	as agent, customer representative, or adjuster to any individual
458	who has not qualified for, taken, and passed to the satisfaction
459	of the department or office a written examination of the scope
460	prescribed in s. 626.241.
461	(2)  However, no such examination shall be necessary in any
462	of the following cases:
463	(a)  An applicant for renewal of appointment as an agent,
464	customer representative, or adjuster, unless the department or
465	office determines that an examination is necessary to establish
466	the competence or trustworthiness of such applicant.
467	(c)  In the discretion of the department or office, an
468	applicant for reinstatement of license or appointment as an
469	agent, customer representative, or adjuster whose license has
470	been suspended within 2 years prior to the date of application
471	or written request for reinstatement.
472	(d)  An applicant who, within 2 years prior to application
473	for license and appointment as an agent, customer
474	representative, or adjuster, was a full-time salaried employee
475	of the department or office and had continuously been such an
476	employee with responsible insurance duties for not less than 2
477	years and who had been a licensee within 2 years prior to
478	employment by the department or office with the same class of
479	license as that being applied for.
480	(f)  A person who has been licensed and appointed as a
481	public adjuster or independent adjuster, or licensed and
482	appointed either as an agent or company adjuster as to all
483	property, casualty, and surety insurances, may be licensed and
484	appointed as a company adjuster as to any of such insurances, or
485	as an independent adjuster or public adjuster, without
486	additional written examination if an application for appointment
487	is filed with the department office within 48 months following
488	the date of cancellation or expiration of the prior appointment.
489	(g)  A person who has been licensed as an adjuster for
490	motor vehicle, property and casualty, workers' compensation, and
491	health insurance may be licensed as such an adjuster without
492	additional written examination if his or her application for
493	appointment is filed with the department office within 48 months
494	after cancellation or expiration of the prior license.
495	(l)  An applicant for license as an adjuster who has the
496	designation of Accredited Claims Adjuster (ACA) from a
497	regionally accredited postsecondary institution in this state,
498	or the designation of Professional Claims Adjuster (PCA) from
499	the Professional Career Institute, whose curriculum has been
500	approved by the department office and whose curriculum includes
501	comprehensive analysis of basic property and casualty lines of
502	insurance and testing at least equal to that of standard
503	department office testing for the all-lines adjuster license.
504	The department commission shall adopt rules establishing
505	standards for the approval of curriculum.
506	Section 18.  Section 626.231, Florida Statutes, is amended
507	to read:
508	626.231  Eligibility for examination.--No person shall be
509	permitted to take an examination for license until his or her
510	application for the license has been approved and the required
511	fees have been received by the department or office or a person
512	designated by the department or office to administer the
513	examination.
514	Section 19.  Subsection (1) of section 626.241, Florida
515	Statutes, is amended to read:
516	626.241  Scope of examination.--
517	(1)  Each examination for a license as agent, customer
518	representative, or adjuster shall be of such scope as is deemed
519	by the department or office to be reasonably necessary to test
520	the applicant's ability and competence and knowledge of the
521	kinds of insurance and transactions to be handled under the
522	license applied for, of the duties and responsibilities of such
523	a licensee, and of the pertinent provisions of the laws of this
524	state.
525	Section 20.  Section 626.251, Florida Statutes, is amended
526	to read:
527	626.251  Time and place of examination; notice.--
528	(1)  The department or office or a person designated by the
529	department or office shall mail written notice of the time and
530	place of the examination to each applicant for license required
531	to take an examination who will be eligible to take the
532	examination as of the examination date. The notice shall be so
533	mailed, postage prepaid, and addressed to the applicant at his
534	or her address shown on the application for license or at such
535	other address as requested by the applicant in writing filed
536	with the department or office prior to the mailing of the
537	notice. Notice shall be deemed given when so mailed.
538	(2)  The examination shall be held in an adequate and
539	designated examination center in this state.
540	(3)  The department or office shall make an examination
541	available to the applicant, to be taken as soon as reasonably
542	possible after the applicant is eligible therefor. Any
543	examination required under this part shall be available in this
544	state at a designated examination center.
545	Section 21.  Section 626.261, Florida Statutes, is amended
546	to read:
547	626.261  Conduct of examination.--
548	(1)  The applicant for license shall appear in person and
549	personally take the examination for license at the time and
550	place specified by the department or office or by a person
551	designated by the department or office.
552	(2)  The examination shall be conducted by an employee of
553	the department or office or a person designated by the
554	department or office for that purpose.
555	(3)  The questions propounded shall be as prepared by the
556	department or office, or by a person designated by the
557	department or office for that purpose, consistent with the
558	applicable provisions of this code.
559	(4)  All examinations shall be given and graded in a fair
560	and impartial manner and without unfair discrimination in favor
561	of or against any particular applicant.
562	Section 22.  Section 626.266, Florida Statutes, is amended
563	to read:
564	626.266  Printing of examinations or related materials to
565	preserve examination security.--A contract let for the
566	development, administration, or grading of examinations or
567	related materials by the department or office pursuant to the
568	various agent, customer representative, or adjuster licensing
569	and examination provisions of this code may include the printing
570	or furnishing of these examinations or related materials in
571	order to preserve security. Any such contract shall be let as a
572	contract for a contractual service pursuant to s. 287.057.
573	Section 23.  Subsection (1) of section 626.271, Florida
574	Statutes, is amended to read:
575	626.271  Examination fee; determination, refund.--
576	(1)  Prior to being permitted to take an examination, each
577	applicant who is subject to examination shall pay to the
578	department or office or a person designated by the department or
579	office an examination fee. A separate and additional examination
580	fee shall be payable for each separate class of license applied
581	for, notwithstanding that all such examinations are taken on the
582	same date and at the same place.
583	Section 24.  Section 626.281, Florida Statutes, is amended
584	to read:
585	626.281  Reexamination.--
586	(1)  Any applicant for license who has either:
587	(a)  Taken an examination and failed to make a passing
588	grade, or
589	(b)  Failed to appear for the examination or to take or
590	complete the examination at the time and place specified in the
591	notice of the department or office,
592
593	may take additional examinations, after filing with the
594	department or office an application for reexamination together
595	with applicable fees. The failure of an applicant to pass an
596	examination or the failure to appear for the examination or to
597	take or complete the examination does not preclude the applicant
598	from taking subsequent examinations.
599	(2)  The department or office may require any individual
600	whose license as an agent, customer representative, or adjuster
601	has expired or has been suspended to pass an examination prior
602	to reinstating or relicensing the individual as to any class of
603	license. The examination fee shall be paid as to each
604	examination.
605	Section 25.  Section 626.2817, Florida Statutes, is amended
606	to read:
607	626.2817  Regulation of course providers, instructors,
608	school officials, and monitor groups involved in prelicensure
609	education for insurance agents and other licensees.--
610	(1)  Any course provider, instructor, school official, or
611	monitor group must be approved by and registered with the
612	department or office before offering prelicensure education
613	courses for insurance agents and other licensees.
614	(2)  The department or commission shall adopt rules
615	establishing standards for the approval, registration,
616	discipline, or removal from registration of course providers,
617	instructors, school officials, and monitor groups. The standards
618	must be designed to ensure that such persons have the knowledge,
619	competence, and integrity to fulfill the educational objectives
620	of the prelicensure requirements of this chapter and chapter 648
621	and to ensure assure that insurance agents and licensees are
622	competent to engage in the activities authorized under the
623	license.
624	(3)  The department or commission shall adopt rules to
625	establish a process for determining compliance with the
626	prelicensure requirements of this chapter and chapter 648. The
627	department or commission shall adopt rules prescribing the forms
628	necessary to administer the prelicensure requirements.
629	Section 26.  Section 626.291, Florida Statutes, is amended
630	to read:
631	626.291  Denial, issuance of license.--
632	(1)  Within 30 days after the applicant has completed any
633	examination required under s. 626.221, the department or office
634	or its designee shall provide a score report; and, if it finds
635	that the applicant has received a passing grade, the department
636	or office shall within such period notify the applicant and
637	issue and transmit the license to which such examination
638	related. If it finds that the applicant did not make a passing
639	grade on the examination for a particular license, the
640	department or office or its designee shall within this period
641	provide notice to the applicant to that effect and of its denial
642	of the license.
643	(2)  As to an applicant for a license for which no
644	examination is required, the department or office shall promptly
645	issue the license applied for as soon as it has approved the
646	application.
647	(3)  The department or office shall not deny, delay, or
648	withhold issuance of a license due to the fact that it has not
649	received a criminal history report based on the applicant's
650	fingerprints.
651	Section 27.  Section 626.301, Florida Statutes, is amended
652	to read:
653	626.301  Form and contents of licenses, in general.--Each
654	license issued by the department or office shall be in such form
655	as the department or commission may designate and contain the
656	licensee's name, lines of authority the licensee is authorized
657	to transact, the licensee's personal identification number, the
658	date of issuance, and any other information the department or
659	commission deems necessary to fully identify the licensee and
660	the authority being granted. The department or commission may by
661	rule require photographs of applicants as a part of the
662	licensing process.
663	Section 28.  Section 626.371, Florida Statutes, is amended
664	to read:
665	626.371  Payment of fees, taxes for appointment period
666	without appointment.--
667	(1)  All initial appointments shall be submitted to the
668	department on a monthly basis no later than 45 days after the
669	date of appointment and become effective on the date requested
670	on the appointment form.
671	(2)  If, upon application and qualification for an initial
672	or renewal appointment and such investigation as the department
673	or office may make, it appears to the department or office that
674	an individual who was formerly licensed or is currently licensed
675	but not properly appointed to represent an insurer or employer
676	and who has been actively engaged or is currently actively
677	engaged as such an appointee, but without being appointed as
678	required, the department or office may, if it finds that such
679	failure to be appointed was an inadvertent error on the part of
680	the insurer or employer so represented, nevertheless issue or
681	authorize the issuance of the appointment as applied for but
682	subject to the condition that, before the appointment is issued,
683	all fees and taxes which would have been due had the applicant
684	been so appointed during such current and prior periods, with
685	applicable fees pursuant to s. 624.501 for such current and
686	prior periods of appointment, shall be paid to the department or
687	office.
688	(3)(a)  Failure to notify the department within the
689	required time period shall result in the appointing entity being
690	assessed a delinquent fee of $250 per appointee. Delinquent fees
691	shall be paid by the appointing entity and may not be charged to
692	the appointee.
693	(b)  Failure to timely renew an appointment by an
694	appointing entity prior to the expiration date of the
695	appointment shall result in the appointing entity being assessed
696	late filing, continuation, and reinstatement fees as prescribed
697	in s. 624.501. Such fees must be paid by the appointing entity
698	and cannot be charged back to the appointee.
699	Section 29.  Subsections (2), (3), and (4) of section
700	626.381, Florida Statutes, are amended to read:
701	626.381  Renewal, continuation, reinstatement, or
702	termination of appointment.--
703	(2)  Each appointing entity shall file with the department
704	or office the lists, statements, and information as to
705	appointees whose appointments are being renewed or terminated,
706	accompanied by payment of the applicable renewal fees and taxes
707	as prescribed in s. 624.501, by a date set forth by the
708	department or office following the month during which the
709	appointments will expire.
710	(3)  Renewal of an appointment which is received by the
711	department or office or person designated by the department to
712	administer the appointment process prior to the expiration of an
713	appointment in the licensee's birth month or license issue date,
714	whichever applies, may be renewed by the department or office
715	without penalty and shall be effective as of the first day of
716	the month succeeding the month in which the appointment would
717	have expired.
718	(4)  Renewal of an appointment which is received by the
719	department or office or person designated by the department to
720	administer the appointment process after the renewal date may be
721	accepted and effectuated by the department or office in its
722	discretion if the appointment, late filing, continuation, and
723	reinstatement fee accompanies the renewal request pursuant to s.
724	624.501. Late filing fees shall be paid by the appointing entity
725	and may not be charged to the appointee.
726	Section 30.  Subsection (2) of section 626.431, Florida
727	Statutes, is amended to read:
728	626.431  Effect of expiration of license and appointment.--
729	(2)  When a licensee's last appointment for a particular
730	class of insurance has been terminated or not renewed, the
731	department or office must notify the licensee that his or her
732	eligibility for appointment as such an appointee will expire
733	unless he or she is appointed prior to expiration of the 48-
734	month period referred to in subsection (3).
735	Section 31.  Section 626.461, Florida Statutes, is amended
736	to read:
737	626.461  Continuation of appointment of agent or other
738	representative.--Subject to renewal or continuation by the
739	appointing entity, the appointment of the agent, adjuster,
740	service representative, customer representative, or managing
741	general agent shall continue in effect until the person's
742	license is revoked or otherwise terminated, unless written
743	notice of earlier termination of the appointment is filed with
744	the department or office or person designated by the department
745	to administer the appointment process by either the appointing
746	entity or the appointee.
747	Section 32.  Subsections (2), (3), (4), and (5) of section
748	626.471, Florida Statutes, are amended to read:
749	626.471  Termination of appointment.--
750	(2)  As soon as possible and at all events within 30 days
751	after terminating the appointment of an appointee, other than as
752	to an appointment terminated by the appointing entity's failure
753	to continue or renew it, the appointing entity shall file
754	written notice thereof with the department or office, together
755	with a statement that it has given the appointee notice thereof
756	as provided in subsection (1) and shall file with the department
757	or office the reasons and facts involved in such termination as
758	required under s. 626.511.
759	(3)  Upon termination of the appointment of an appointee,
760	whether by failure to renew or continue the appointment, the
761	appointing entity shall:
762	(a)  File with the department or office the information
763	required under s. 626.511.
764	(b)  Subject to the exceptions provided under subsection
765	(1), continue the outstanding contracts transacted by an agent
766	until the expiration date or anniversary date when the policy is
767	a continuous policy with no expiration date. This paragraph
768	shall not be construed to prohibit the cancellation of such
769	contracts when not otherwise prohibited by law.
770	(4)  An appointee may terminate the appointment at any time
771	by giving written or electronic notice thereof to the appointing
772	entity, department or office, or person designated by the
773	department to administer the appointment process. The department
774	shall immediately terminate the appointment and notify the
775	appointing entity of such termination. Such termination shall be
776	subject to the appointee's contract rights, if any.
777	(5)  Upon receiving notice of termination, the department
778	or office or person designated by the department to administer
779	the appointment process shall terminate the appointment.
780	Section 33.  Subsections (2), (3), and (5) of section
781	626.521, Florida Statutes, are amended to read:
782	626.521  Character, credit reports.--
783	(2)  If requested by the department or office, the insurer,
784	manager, general agent, general lines agent, or employer, as the
785	case may be, shall furnish to the department or office on a form
786	adopted by the department or commission and furnished by the
787	department or office, such information as it may reasonably
788	require relative to such individual and investigation.
789	(3)  As to an applicant for an adjuster's or reinsurance
790	intermediary's license who is to be self-employed, the
791	department or office may secure, at the cost of the applicant, a
792	full detailed credit and character report made by an established
793	and reputable independent reporting service relative to the
794	applicant.
795	(5)  Information contained in credit or character reports
796	furnished to or secured by the department or office under this
797	section is confidential and exempt from the provisions of s.
798	119.07(1).
799	Section 34.  Subsections (1) and (2) of section 626.541,
800	Florida Statutes, are amended to read:
801	626.541  Firm, corporate, and business names; officers;
802	associates; notice of changes.--
803	(1)  Any licensed agent or adjuster doing business under a
804	firm or corporate name or under any business name other than his
805	or her own individual name shall, within 30 days after the
806	initial transaction of insurance under such business name, file
807	with the department or office, on forms adopted by the
808	department or commission and furnished by the department or
809	office, a written statement of the firm, corporate, or business
810	name being so used, the address of any office or offices or
811	places of business making use of such name, and the name and
812	social security number of each officer and director of the
813	corporation and of each individual associated in such firm or
814	corporation as to the insurance transactions thereof or in the
815	use of such business name.
816	(2)  In the event of any change of such name, or of any of
817	the officers and directors, or of any of such addresses, or in
818	the personnel so associated, written notice of such change must
819	be filed with the department or office within 30 days by or on
820	behalf of those licensees terminating any such firm, corporate,
821	or business name or continuing to operate thereunder.
822	Section 35.  Section 626.551, Florida Statutes, is amended
823	to read:
824	626.551  Notice of change of address, name.--Every licensee
825	shall notify the department or office in writing within 60 days
826	after a change of name, residence address, principal business
827	street address, or mailing address. Any licensed agent who has
828	moved his or her residence from this state shall have his or her
829	license and all appointments immediately terminated by the
830	department or office. Failure to notify the department or office
831	within the required time period shall result in a fine not to
832	exceed $250 for the first offense and, for subsequent offenses,
833	a fine of not less than $500 or suspension or revocation of the
834	license pursuant to s. 626.611 or s. 626.621.
835	Section 36.  Section 626.611, Florida Statutes, is amended
836	to read:
837	626.611  Grounds for compulsory refusal, suspension, or
838	revocation of agent's, title agency's, adjuster's, customer
839	representative's, service representative's, or managing general
840	agent's license or appointment.--The department or office shall
841	deny an application for, suspend, revoke, or refuse to renew or
842	continue the license or appointment of any applicant, agent,
843	title agency, adjuster, customer representative, service
844	representative, or managing general agent, and it shall suspend
845	or revoke the eligibility to hold a license or appointment of
846	any such person, if it finds that as to the applicant, licensee,
847	or appointee any one or more of the following applicable grounds
848	exist:
849	(1)  Lack of one or more of the qualifications for the
850	license or appointment as specified in this code.
851	(2)  Material misstatement, misrepresentation, or fraud in
852	obtaining the license or appointment or in attempting to obtain
853	the license or appointment.
854	(3)  Failure to pass to the satisfaction of the department
855	or office any examination required under this code.
856	(4)  If the license or appointment is willfully used, or to
857	be used, to circumvent any of the requirements or prohibitions
858	of this code.
859	(5)  Willful misrepresentation of any insurance policy or
860	annuity contract or willful deception with regard to any such
861	policy or contract, done either in person or by any form of
862	dissemination of information or advertising.
863	(6)  If, as an adjuster, or agent licensed and appointed to
864	adjust claims under this code, he or she has materially
865	misrepresented to an insured or other interested party the terms
866	and coverage of an insurance contract with intent and for the
867	purpose of effecting settlement of claim for loss or damage or
868	benefit under such contract on less favorable terms than those
869	provided in and contemplated by the contract.
870	(7)  Demonstrated lack of fitness or trustworthiness to
871	engage in the business of insurance.
872	(8)  Demonstrated lack of reasonably adequate knowledge and
873	technical competence to engage in the transactions authorized by
874	the license or appointment.
875	(9)  Fraudulent or dishonest practices in the conduct of
876	business under the license or appointment.
877	(10)  Misappropriation, conversion, or unlawful withholding
878	of moneys belonging to insurers or insureds or beneficiaries or
879	to others and received in conduct of business under the license
880	or appointment.
881	(11)  Unlawfully rebating, attempting to unlawfully rebate,
882	or unlawfully dividing or offering to divide his or her
883	commission with another.
884	(12)  Having obtained or attempted to obtain, or having
885	used or using, a license or appointment as agent or customer
886	representative for the purpose of soliciting or handling
887	"controlled business" as defined in s. 626.730 with respect to
888	general lines agents, s. 626.784 with respect to life agents,
889	and s. 626.830 with respect to health agents.
890	(13)  Willful failure to comply with, or willful violation
891	of, any proper order or rule of the department, commission, or
892	office or willful violation of any provision of this code.
893	(14)  Having been found guilty of or having pleaded guilty
894	or nolo contendere to a felony or a crime punishable by
895	imprisonment of 1 year or more under the law of the United
896	States of America or of any state thereof or under the law of
897	any other country which involves moral turpitude, without regard
898	to whether a judgment of conviction has been entered by the
899	court having jurisdiction of such cases.
900	(15)  Fraudulent or dishonest practice in submitting or
901	aiding or abetting any person in the submission of an
902	application for workers' compensation coverage under chapter 440
903	containing false or misleading information as to employee
904	payroll or classification for the purpose of avoiding or
905	reducing the amount of premium due for such coverage.
906	(16)  Sale of an unregistered security that was required to
907	be registered, pursuant to chapter 517.
908	Section 37.  Section 626.621, Florida Statutes, is amended
909	to read:
910	626.621  Grounds for discretionary refusal, suspension, or
911	revocation of agent's, adjuster's, customer representative's,
912	service representative's, or managing general agent's license or
913	appointment.--The department or office may, in its discretion,
914	deny an application for, suspend, revoke, or refuse to renew or
915	continue the license or appointment of any applicant, agent,
916	adjuster, customer representative, service representative, or
917	managing general agent, and it may suspend or revoke the
918	eligibility to hold a license or appointment of any such person,
919	if it finds that as to the applicant, licensee, or appointee any
920	one or more of the following applicable grounds exist under
921	circumstances for which such denial, suspension, revocation, or
922	refusal is not mandatory under s. 626.611:
923	(1)  Any cause for which issuance of the license or
924	appointment could have been refused had it then existed and been
925	known to the department or office.
926	(2)  Violation of any provision of this code or of any
927	other law applicable to the business of insurance in the course
928	of dealing under the license or appointment.
929	(3)  Violation of any lawful order or rule of the
930	department, commission, or office.
931	(4)  Failure or refusal, upon demand, to pay over to any
932	insurer he or she represents or has represented any money coming
933	into his or her hands belonging to the insurer.
934	(5)  Violation of the provision against twisting, as
935	defined in s. 626.9541(1)(l).
936	(6)  In the conduct of business under the license or
937	appointment, engaging in unfair methods of competition or in
938	unfair or deceptive acts or practices, as prohibited under part
939	IX of this chapter, or having otherwise shown himself or herself
940	to be a source of injury or loss to the public or detrimental to
941	the public interest.
942	(7)  Willful overinsurance of any property or health
943	insurance risk.
944	(8)  Having been found guilty of or having pleaded guilty
945	or nolo contendere to a felony or a crime punishable by
946	imprisonment of 1 year or more under the law of the United
947	States of America or of any state thereof or under the law of
948	any other country, without regard to whether a judgment of
949	conviction has been entered by the court having jurisdiction of
950	such cases.
951	(9)  If a life agent, violation of the code of ethics.
952	(10)  Cheating on an examination required for licensure or
953	violating test center or examination procedures published
954	orally, in writing, or electronically at the test site by
955	authorized representatives of the examination program
956	administrator. Communication of test center and examination
957	procedures must be clearly established and documented.
958	(11)  Failure to inform the department or office in writing
959	within 30 days after pleading guilty or nolo contendere to, or
960	being convicted or found guilty of, any felony or a crime
961	punishable by imprisonment of 1 year or more under the law of
962	the United States or of any state thereof, or under the law of
963	any other country without regard to whether a judgment of
964	conviction has been entered by the court having jurisdiction of
965	the case.
966	(12)  Knowingly aiding, assisting, procuring, advising, or
967	abetting any person in the violation of or to violate a
968	provision of the insurance code or any order or rule of the
969	department, commission, or office.
970	Section 38.  Section 626.631, Florida Statutes, is amended
971	to read:
972	626.631  Procedure for refusal, suspension, or revocation
973	of license.--
974	(1)  If any licensee is convicted by a court of a violation
975	of this code or a felony, the licenses and appointments of such
976	person shall be immediately revoked by the department or office.
977	The licensee may subsequently request a hearing pursuant to ss.
978	120.569 and 120.57, and the department or office shall expedite
979	any such requested hearing. The sole issue at such hearing shall
980	be whether the revocation should be rescinded because such
981	person was not in fact convicted of a violation of this code or
982	a felony.
983	(2)  The papers, documents, reports, or evidence of the
984	department or office relative to a hearing for revocation or
985	suspension of a license or appointment pursuant to the
986	provisions of this chapter and chapter 120 are confidential and
987	exempt from the provisions of s. 119.07(1) until after the same
988	have been published at the hearing. However, such papers,
989	documents, reports, or items of evidence are subject to
990	discovery in a hearing for revocation or suspension of a license
991	or appointment.
992	Section 39.  Subsections (1) and (2) of section 626.641,
993	Florida Statutes, are amended to read:
994	626.641  Duration of suspension or revocation.--
995	(1)  The department or office shall, in its order
996	suspending a license or appointment or in its order suspending
997	the eligibility of a person to hold or apply for such license or
998	appointment, specify the period during which the suspension is
999	to be in effect; but such period shall not exceed 2 years. The
1000	license, appointment, or eligibility shall remain suspended
1001	during the period so specified, subject, however, to any
1002	rescission or modification of the order by the department or
1003	office, or modification or reversal thereof by the court, prior
1004	to expiration of the suspension period. A license, appointment,
1005	or eligibility which has been suspended shall not be reinstated
1006	except upon request for such reinstatement; but the department
1007	or office shall not grant such reinstatement if it finds that
1008	the circumstance or circumstances for which the license,
1009	appointment, or eligibility was suspended still exist or are
1010	likely to recur.
1011	(2)  No person or appointee under any license or
1012	appointment revoked by the department or office, nor any person
1013	whose eligibility to hold same has been revoked by the
1014	department or office, shall have the right to apply for another
1015	license or appointment under this code within 2 years from the
1016	effective date of such revocation or, if judicial review of such
1017	revocation is sought, within 2 years from the date of final
1018	court order or decree affirming the revocation. The department
1019	or office shall not, however, grant a new license or appointment
1020	or reinstate eligibility to hold such license or appointment if
1021	it finds that the circumstance or circumstances for which the
1022	eligibility was revoked or for which the previous license or
1023	appointment was revoked still exist or are likely to recur; if
1024	an individual's license as agent or customer representative or
1025	eligibility to hold same has been revoked upon the ground
1026	specified in s. 626.611(12), the department or office shall
1027	refuse to grant or issue any new license or appointment so
1028	applied for.
1029	Section 40.  Subsection (2) of section 626.661, Florida
1030	Statutes, is amended to read:
1031	626.661  Surrender of license.--
1032	(2)  This section shall not be deemed to require the
1033	surrender to the department or office of any license unless such
1034	surrender has been requested by the department or office.
1035	Section 41.  Subsections (1) and (3) of section 626.681,
1036	Florida Statutes, are amended to read:
1037	626.681  Administrative fine in lieu of or in addition to
1038	suspension, revocation, or refusal of license, appointment, or
1039	disapproval.--
1040	(1)  Except as to insurance agencies, if the department or
1041	office finds that one or more grounds exist for the suspension,
1042	revocation, or refusal to issue, renew, or continue any license
1043	or appointment issued under this chapter, or disapproval of a
1044	continuing education course provider, instructor, school
1045	official, or monitor groups, the department or office may, in
1046	its discretion, in lieu of or in addition to such suspension or
1047	revocation, or in lieu of such refusal, or disapproval, and
1048	except on a second offense or when such suspension, revocation,
1049	or refusal is mandatory, impose upon the licensee, appointee,
1050	course provider, instructor, school official, or monitor group
1051	an administrative penalty in an amount up to $500 or, if the
1052	department or office has found willful misconduct or willful
1053	violation on the part of the licensee, appointee, course
1054	provider, instructor, school official, or monitor group up to
1055	$3,500. The administrative penalty may, in the discretion of the
1056	department or office, be augmented by an amount equal to any
1057	commissions received by or accruing to the credit of the
1058	licensee or appointee in connection with any transaction as to
1059	which the grounds for suspension, revocation, or refusal
1060	related.
1061	(3)  The department or office may allow the licensee,
1062	appointee, or continuing education course provider, instructor,
1063	school official, or monitor group a reasonable period, not to
1064	exceed 30 days, within which to pay to the department or office
1065	the amount of the penalty so imposed. If the licensee,
1066	appointee, course provider, instructor, school official, or
1067	monitor group fails to pay the penalty in its entirety to the
1068	department or office within the period so allowed, the license,
1069	appointments, approval, or status of that person shall stand
1070	suspended or revoked or issuance, renewal, or continuation shall
1071	be refused, as the case may be, upon expiration of such period.
1072	Section 42.  Section 626.691, Florida Statutes, is amended
1073	to read:
1074	626.691  Probation.--
1075	(1)  If the department or office finds that one or more
1076	grounds exist for the suspension, revocation, or refusal to
1077	renew or continue any license or appointment issued under this
1078	part, the department or office may, in its discretion, except
1079	when an administrative fine is not permissible under s. 626.681
1080	or when such suspension, revocation, or refusal is mandatory, in
1081	lieu of or in addition to such suspension or revocation, or in
1082	lieu of such refusal, or in connection with any administrative
1083	monetary penalty imposed under s. 626.681, place the offending
1084	licensee or appointee on probation for a period, not to exceed 2
1085	years, as specified by the department or office in its order.
1086	(2)  As a condition to such probation or in connection
1087	therewith, the department or office may specify in its order
1088	reasonable terms and conditions to be fulfilled by the
1089	probationer during the probation period. If during the probation
1090	period the department or office has good cause to believe that
1091	the probationer has violated a term or condition, it shall
1092	suspend, revoke, or refuse to issue, renew, or continue the
1093	license or appointment of the probationer, as upon the original
1094	grounds referred to in subsection (1).
1095	Section 43.  Section 626.692, Florida Statutes, is amended
1096	to read:
1097	626.692  Restitution.--If any ground exists for the
1098	suspension, revocation, or refusal of a license or appointment,
1099	the department or office may, in addition to any other penalty
1100	authorized under this chapter, order the licensee to pay
1101	restitution to any person who has been deprived of money by the
1102	licensee's misappropriation, conversion, or unlawful withholding
1103	of moneys belonging to insurers, insureds, beneficiaries, or
1104	others. In no instance shall the amount of restitution required
1105	to be paid under this section exceed the amount of money
1106	misappropriated, converted, or unlawfully withheld. Nothing in
1107	this section limits or restricts a person's right to seek other
1108	remedies as provided for by law.
1109	Section 44.  Subsection (2) of section 626.8582, Florida
1110	Statutes, is amended to read:
1111	626.8582  "Nonresident public adjuster" defined.--A
1112	"nonresident public adjuster" is a person who:
1113	(2)  Is a currently licensed public adjuster in his or her
1114	state of residence for the type or kinds of insurance for which
1115	the licensee intends to adjust claims in this state or, if a
1116	resident of a state that does not license public adjusters, has
1117	passed the department's office's adjuster examination as
1118	prescribed in s. 626.8732(1)(b); and
1119	Section 45.  Subsection (2) of section 626.8584, Florida
1120	Statutes, is amended to read:
1121	626.8584  "Nonresident independent adjuster" defined.--A
1122	"nonresident independent adjuster" is a person who:
1123	(2)  Is a currently licensed independent adjuster in his or
1124	her state of residence for the type or kinds of insurance for
1125	which the licensee intends to adjust claims in this state or, if
1126	a resident of a state that does not license independent
1127	adjusters, has passed the department's office's adjuster
1128	examination as prescribed in s. 626.8734(1)(b); and
1129	Section 46.  Section 626.859, Florida Statutes, is amended
1130	to read:
1131	626.859  "Catastrophe" or "emergency" adjuster defined.--A
1132	"catastrophe" or "emergency" adjuster is a person who is not a
1133	licensed adjuster under this part, but who has been designated
1134	and certified to the department office by insurers as qualified
1135	to adjust claims, losses, or damages under policies or contracts
1136	of insurance issued by such insurer, and whom the department
1137	office may license, in the event of a catastrophe or emergency,
1138	for the purposes and under the conditions which the department
1139	office shall fix and for the period of the emergency as the
1140	department office shall determine, to adjust claims, losses, or
1141	damages under the policies of insurance issued by the insurers.
1142	Section 47.  Subsection (2) of section 626.863, Florida
1143	Statutes, is amended to read:
1144	626.863  Licensed independent adjusters required; insurers'
1145	responsibility.--
1146	(2)  Before referring any claim or loss, the insurer shall
1147	ascertain from the department office whether the proposed
1148	independent adjuster is currently licensed and appointed as
1149	such. Having once ascertained that a particular person is so
1150	licensed and appointed, the insurer may assume that he or she
1151	will continue to be so licensed and appointed until the insurer
1152	has knowledge, or receives information from the department
1153	office, to the contrary.
1154	Section 48.  Section 626.865, Florida Statutes, is amended
1155	to read:
1156	626.865  Public adjuster's qualifications, bond.--
1157	(1)  The department office shall issue a license to an
1158	applicant for a public adjuster's license upon determining that
1159	the applicant has paid the applicable fees specified in s.
1160	624.501 and possesses the following qualifications:
1161	(a)  Is a natural person at least 18 years of age.
1162	(b)  Is a United States citizen or legal alien who
1163	possesses work authorization from the United States Immigration
1164	and Naturalization Service and a bona fide resident of this
1165	state.
1166	(c)  Is trustworthy and has such business reputation as
1167	would reasonably assure that the applicant will conduct his or
1168	her business as insurance adjuster fairly and in good faith and
1169	without detriment to the public.
1170	(d)  Has had sufficient experience, training, or
1171	instruction concerning the adjusting of damages or losses under
1172	insurance contracts, other than life and annuity contracts, is
1173	sufficiently informed as to the terms and effects of the
1174	provisions of those types of insurance contracts, and possesses
1175	adequate knowledge of the laws of this state relating to such
1176	contracts as to enable and qualify him or her to engage in the
1177	business of insurance adjuster fairly and without injury to the
1178	public or any member thereof with whom the applicant may have
1179	business as a public adjuster.
1180	(e)  Has passed any required written examination.
1181	(2)  At the time of application for license as a public
1182	adjuster, the applicant shall file with the department office a
1183	bond executed and issued by a surety insurer authorized to
1184	transact such business in this state, in the amount of $50,000,
1185	conditioned for the faithful performance of his or her duties as
1186	a public adjuster under the license applied for. The bond shall
1187	be in favor of the department office and shall specifically
1188	authorize recovery by the department office of the damages
1189	sustained in case the licensee is guilty of fraud or unfair
1190	practices in connection with his or her business as public
1191	adjuster. The aggregate liability of the surety for all such
1192	damages shall in no event exceed the amount of the bond. Such
1193	bond shall not be terminated unless at least 30 days' written
1194	notice is given to the licensee and filed with the department
1195	office.
1196	Section 49.  Section 626.866, Florida Statutes, is amended
1197	to read:
1198	626.866  Independent adjuster's qualifications.--The
1199	department office shall issue a license to an applicant for an
1200	independent adjuster's license upon determining that the
1201	applicable license fee specified in s. 624.501 has been paid and
1202	that the applicant possesses the following qualifications:
1203	(1)  Is a natural person at least 18 years of age.
1204	(2)  Is a United States citizen or legal alien who
1205	possesses work authorization from the United States Immigration
1206	and Naturalization Service and a bona fide resident of this
1207	state.
1208	(3)  Is trustworthy and has such business reputation as
1209	would reasonably assure that the applicant will conduct his or
1210	her business as insurance adjuster fairly and in good faith and
1211	without detriment to the public.
1212	(4)  Has had sufficient experience, training, or
1213	instruction concerning the adjusting of damage or loss under
1214	insurance contracts, other than life and annuity contracts, is
1215	sufficiently informed as to the terms and the effects of the
1216	provisions of such types of contracts, and possesses adequate
1217	knowledge of the insurance laws of this state relating to such
1218	contracts as to enable and qualify him or her to engage in the
1219	business of insurance adjuster fairly and without injury to the
1220	public or any member thereof with whom he or she may have
1221	relations as an insurance adjuster and to adjust all claims in
1222	accordance with the policy or contract and the insurance laws of
1223	this state.
1224	(5)  Has passed any required written examination.
1225	Section 50.  Section 626.867, Florida Statutes, is amended
1226	to read:
1227	626.867  Company employee adjuster's qualifications.--The
1228	department office shall issue a license to an applicant for a
1229	company employee adjuster's license upon determining that the
1230	applicable license fee specified in s. 624.501 has been paid and
1231	that the applicant possesses the following qualifications:
1232	(1)  Is a natural person at least 18 years of age.
1233	(2)  Is a United States citizen or legal alien who
1234	possesses work authorization from the United States Immigration
1235	and Naturalization Service and a bona fide resident of this
1236	state.
1237	(3)  Is trustworthy and has such business reputation as
1238	would reasonably assure that the applicant will conduct his or
1239	her business as insurance adjuster fairly and in good faith and
1240	without detriment to the public.
1241	(4)  Has had sufficient experience, training, or
1242	instruction concerning the adjusting of damage or loss of risks
1243	described in his or her application, is sufficiently informed as
1244	to the terms and the effects of the provisions of insurance
1245	contracts covering such risks, and possesses adequate knowledge
1246	of the insurance laws of this state relating to such insurance
1247	contracts as to enable and qualify him or her to engage in such
1248	business as insurance adjuster fairly and without injury to the
1249	public or any member thereof with whom he or she may have
1250	relations as an insurance adjuster and to adjust all claims in
1251	accordance with the policy or contract and the insurance laws of
1252	this state.
1253	(5)  Has passed any required written examination.
1254	Section 51.  Paragraph (c) of subsection (4) of section
1255	626.869, Florida Statutes, is amended to read:
1256	626.869  License, adjusters.--
1257	(4)
1258	(c)  The department Financial Services Commission shall
1259	adopt rules necessary to implement and administer the continuing
1260	education requirements of this subsection.
1261	Section 52.  Subsections (1), (3), (5), (6), and (7) of
1262	section 626.8695, Florida Statutes, are amended to read:
1263	626.8695  Primary adjuster.--
1264	(1)  Each person operating an adjusting firm and each
1265	location of a multiple location adjusting firm must designate a
1266	primary adjuster for each such firm or location and must file
1267	with the department office the name of such primary adjuster and
1268	the address of the firm or location where he or she is the
1269	primary adjuster, on a form approved by the department
1270	commission. The designation of the primary adjuster may be
1271	changed at the option of the adjusting firm. Any such change is
1272	effective upon notification to the department office. Notice of
1273	change must be sent to the department office within 30 days
1274	after such change.
1275	(3)  The department office may suspend or revoke the
1276	license of the primary adjuster if the adjusting firm employs
1277	any person who has had a license denied or any person whose
1278	license is currently suspended or revoked. However, if a person
1279	has been denied a license for failure to pass a required
1280	examination, he or she may be employed to perform clerical or
1281	administrative functions for which licensure is not required.
1282	(5)  The department office may suspend or revoke the
1283	license of any adjuster who is employed by a person whose
1284	license is currently suspended or revoked.
1285	(6)  An adjusting firm location may not conduct the
1286	business of insurance unless a primary adjuster is designated.
1287	Failure of the person operating the adjusting firm to designate
1288	a primary adjuster for the firm, or for each location, as
1289	applicable, on a form prescribed by the department commission
1290	within 30 days after inception of the firm or change of primary
1291	adjuster designation, constitutes grounds for requiring the
1292	adjusting firm to obtain an adjusting firm license pursuant to
1293	s. 626.8696.
1294	(7)  Any adjusting firm may request, on a form prescribed
1295	by the department commission, verification from the department
1296	office of any person's current licensure status. If a request is
1297	mailed to the department office within 5 working days after the
1298	date an adjuster is hired, and the department office
1299	subsequently notifies the adjusting firm that an employee's
1300	license is currently suspended, revoked, or has been denied, the
1301	license of the primary adjuster shall not be revoked or
1302	suspended if the unlicensed person is immediately dismissed from
1303	employment as an adjuster with the firm.
1304	Section 53.  Paragraph (e) of subsection (1) and subsection
1305	(5) of section 626.8696, Florida Statutes, are amended to read:
1306	626.8696  Application for adjusting firm license.--
1307	(1)  The application for an adjusting firm license must
1308	include:
1309	(e)  Any additional information which the department
1310	commission may require.
1311	(5)  An adjusting firm required to be licensed pursuant to
1312	s. 626.8695 must remain so licensed for a period of 3 years from
1313	the date of licensure, unless the license is suspended or
1314	revoked. The department office may suspend or revoke the
1315	adjusting firm's authority to do business for activities
1316	occurring during the time the firm is licensed, regardless of
1317	whether the licensing period has terminated.
1318	Section 54.  Section 626.8697, Florida Statutes, is amended
1319	to read:
1320	626.8697  Grounds for refusal, suspension, or revocation of
1321	adjusting firm license.--
1322	(1)  The department office shall deny, suspend, revoke, or
1323	refuse to continue the license of any adjusting firm if it
1324	finds, as to any adjusting firm or as to any majority owner,
1325	partner, manager, director, officer, or other person who manages
1326	or controls the firm, that any of the following grounds exist:
1327	(a)  Lack by the firm of one or more of the qualifications
1328	for the license as specified in this code.
1329	(b)  Material misstatement, misrepresentation, or fraud in
1330	obtaining the license or in attempting to obtain the license.
1331	(2)  The department office may, in its discretion, deny,
1332	suspend, revoke, or refuse to continue the license of any
1333	adjusting firm if it finds that any of the following applicable
1334	grounds exist with respect to the firm or any owner, partner,
1335	manager, director, officer, or other person who is otherwise
1336	involved in the operation of the firm:
1337	(a)  Any cause for which issuance of the license could have
1338	been refused had it then existed and been known to the
1339	department office.
1340	(b)  Violation of any provision of this code or of any
1341	other law applicable to the business of insurance.
1342	(c)  Violation of any order or rule of the department,
1343	office, or commission.
1344	(d)  An owner, partner, manager, director, officer, or
1345	other person who manages or controls the firm having been found
1346	guilty of or having pleaded guilty or nolo contendere to a
1347	felony or a crime punishable by imprisonment of 1 year or more
1348	under the laws of the United States or of any state or under the
1349	laws of any other country, without regard to whether
1350	adjudication was made or withheld by the court.
1351	(e)  Failure to inform the department office in writing
1352	within 30 days after a pleading by an owner, partner, manager,
1353	director, officer, or other person managing or controlling the
1354	firm of guilty or nolo contendere to, or being convicted or
1355	found guilty of, any felony or a crime punishable by
1356	imprisonment of 1 year or more under the laws of the United
1357	States or of any state, or under the laws of any other country,
1358	without regard to whether adjudication was made or withheld by
1359	the court.
1360	(f)  Knowingly aiding, assisting, procuring, advising, or
1361	abetting any person in the violation of or to violate a
1362	provision of the insurance code or any order or rule of the
1363	department, office, or commission.
1364	(g)  Knowingly employing any individual in a managerial
1365	capacity or in a capacity dealing with the public who is under
1366	an order of revocation or suspension issued by the department
1367	office.
1368	(h)  Committing any of the following acts with such a
1369	frequency as to have made the operation of the adjusting firm
1370	hazardous to the insurance-buying public or other persons:
1371	1.  Misappropriation, conversion, or unlawful or
1372	unreasonable withholding of moneys belonging to insurers or
1373	insureds or beneficiaries or claimants or to others and received
1374	in the conduct of business under the license.
1375	2.  Misrepresentation or deception with regard to the
1376	business of insurance, dissemination of information, or
1377	advertising.
1378	3.  Demonstrated lack of fitness or trustworthiness to
1379	engage in the business of insurance adjusting arising out of
1380	activities related to insurance adjusting or the adjusting firm.
1381	(i)  Failure to appoint a primary adjuster.
1382	(3)  In lieu of discretionary refusal, suspension, or
1383	revocation of an adjusting firm's license, the department office
1384	may impose an administrative penalty of up to $1,000 for each
1385	violation or ground provided under this section, not to exceed
1386	an aggregate amount of $10,000 for all violations or grounds.
1387	(4)  If any adjusting firm, having been licensed,
1388	thereafter has such license revoked or suspended, the firm shall
1389	terminate all adjusting activities while the license is revoked
1390	or suspended.
1391	Section 55.  Section 626.8698, Florida Statutes, is amended
1392	to read:
1393	626.8698  Disciplinary guidelines for public
1394	adjusters.--The department office may deny, suspend, or revoke
1395	The department office may deny, suspend, or revoke the license
1396	of a public adjuster, and administer a fine not to exceed $5,000
1397	per act, for any of the following:
1398	(1)  Violating any provision of this chapter or a rule or
1399	order of the office or commission;
1400	(2)  Receiving payment or anything of value as a result of
1401	an unfair or deceptive practice;
1402	(3)  Receiving or accepting any fee, kickback, or other
1403	thing of value pursuant to any agreement or understanding, oral
1404	or otherwise; entering into a split-fee arrangement with another
1405	person who is not a public adjuster; or being otherwise paid or
1406	accepting payment for services that have not been performed;
1407	(4)  Violating s. 316.066 or s. 817.234;
1408	(5)  Soliciting or otherwise taking advantage of a person
1409	who is vulnerable, emotional, or otherwise upset as the result
1410	of a trauma, accident, or other similar occurrence; or
1411	(6)  Violating any ethical rule of the department
1412	commission.
1413	Section 56.  Section 626.870, Florida Statutes, is amended
1414	to read:
1415	626.870  Application for license.--
1416	(1)  Application for a license under this part shall be
1417	made as provided in s. 626.171 and related sections of this
1418	code.
1419	(2)  The department commission shall so prepare the form of
1420	the application as to elicit and require from the applicant the
1421	information necessary to enable the department office to
1422	determine whether the applicant possesses the qualifications
1423	prerequisite to issuance of the license to the applicant.
1424	(3)  The department commission may, in its discretion,
1425	require that the application be supplemented by the certificate
1426	or affidavit of such person or persons as it deems necessary for
1427	its determination of the applicant's residence, business
1428	reputation, and reputation for trustworthiness. The department
1429	commission shall prescribe and the department office may furnish
1430	the forms for such certificates and affidavits.
1431	Section 57.  Section 626.871, Florida Statutes, is amended
1432	to read:
1433	626.871  Reappointment after military service.--The
1434	department office may, without requiring a further written
1435	examination, issue an appointment as an adjuster to a formerly
1436	licensed and appointed adjuster of this state who held a current
1437	adjuster's appointment at the time of entering service in the
1438	Armed Forces of the United States, subject to the following
1439	conditions:
1440	(1)  The period of military service must not have been in
1441	excess of 3 years;
1442	(2)  The application for the appointment must be filed with
1443	the department office and the applicable fee paid, within 12
1444	months following the date of honorable discharge of the
1445	applicant from the military service; and
1446	(3)  The new appointment will be of the same type and class
1447	as that currently effective at the time the applicant entered
1448	military service; but, if such type and class of appointment is
1449	not being currently issued under this code, the new appointment
1450	shall be of that type and class or classes most closely
1451	resembling those of the former appointment.
1452	Section 58.  Subsections (1) and (5) of section 626.872,
1453	Florida Statutes, are amended to read:
1454	626.872  Temporary license.--
1455	(1)  The department office may, in its discretion, issue a
1456	temporary license as an independent adjuster or as a company
1457	employee adjuster, subject to the following conditions:
1458	(a)  The applicant must be an employee of an adjuster
1459	currently licensed by the department office, an employee of an
1460	authorized insurer, or an employee of an established adjusting
1461	firm or corporation which is supervised by a currently licensed
1462	independent adjuster.
1463	(b)  The application must be accompanied by a certificate
1464	of employment and a report as to the applicant's integrity and
1465	moral character on a form prescribed by the department
1466	commission and executed by the employer.
1467	(c)  The applicant must be a natural person of at least 18
1468	years of age, must be a bona fide resident of this state, must
1469	be trustworthy, and must have such business reputation as would
1470	reasonably assure that the applicant will conduct his or her
1471	business as an adjuster fairly and in good faith and without
1472	detriment to the public.
1473	(d)  The applicant's employer is responsible for the
1474	adjustment acts of any licensee under this section.
1475	(e)  The applicable license fee specified must be paid
1476	before issuance of the temporary license.
1477	(f)  The temporary license shall be effective for a period
1478	of 1 year, but subject to earlier termination at the request of
1479	the employer, or if the licensee fails to take an examination as
1480	an independent adjuster or company employee adjuster within 6
1481	months after issuance of the temporary license, or if suspended
1482	or revoked by the department office.
1483	(5)  The department office shall not issue a temporary
1484	license as an independent adjuster or as a company employee
1485	adjuster to any individual who has ever held such a license in
1486	this state.
1487	Section 59.  Subsection (1) of section 626.873, Florida
1488	Statutes, is amended to read:
1489	626.873  Nonresident company employee adjusters.--
1490	(1)  The department office shall, upon application
1491	therefor, issue a license to an applicant for a nonresident
1492	adjuster's license upon determining that the applicant has paid
1493	the applicable license fees required under s. 624.501 and:
1494	(a)  Is a currently licensed insurance adjuster in his or
1495	her home state, if such state requires a license.
1496	(b)  Is an employee of an insurer, or a wholly owned
1497	subsidiary of an insurer, admitted to do business in this state.
1498	(c)  Has filed a certificate or letter of authorization
1499	from the insurance department of his or her home state, if such
1500	state requires an adjuster to be licensed, stating that he or
1501	she holds a current license or authorization to adjust insurance
1502	losses. Such certificate or authorization must be signed by the
1503	insurance commissioner, or his or her deputy, of the adjuster's
1504	home state and must reflect whether or not the adjuster has ever
1505	had his or her license or authorization in the adjuster's home
1506	state suspended or revoked and, if such is the case, the reason
1507	for such action.
1508	Section 60.  Section 626.8732, Florida Statutes, is amended
1509	to read:
1510	626.8732  Nonresident public adjuster's qualifications,
1511	bond.--
1512	(1)  The department office shall, upon application
1513	therefor, issue a license to an applicant for a nonresident
1514	public adjuster's license upon determining that the applicant
1515	has paid the applicable license fees required under s. 624.501
1516	and:
1517	(a)  Is a natural person at least 18 years of age.
1518	(b)  Has passed to the satisfaction of the department
1519	office a written Florida public adjuster's examination of the
1520	scope prescribed in s. 626.241(6); however, the requirement for
1521	such an examination does not apply to any of the following:
1522	1.  An applicant who is licensed as a resident public
1523	adjuster in his or her state of residence, when that state
1524	requires the passing of a written examination in order to obtain
1525	the license and a reciprocal agreement with the appropriate
1526	official of that state has been entered into by the department
1527	office; or
1528	2.  An applicant who is licensed as a nonresident public
1529	adjuster in a state other than his or her state of residence
1530	when the state of licensure requires the passing of a written
1531	examination in order to obtain the license and a reciprocal
1532	agreement with the appropriate official of the state of
1533	licensure has been entered into by the department office.
1534	(c)  Is self-employed as a public adjuster or associated
1535	with or employed by a public adjusting firm or other public
1536	adjuster. Applicants licensed as nonresident public adjusters
1537	under this section must be appointed as such in accordance with
1538	the provisions of ss. 626.112 and 626.451. Appointment fees in
1539	the amount specified in s. 624.501 must be paid to the
1540	department office in advance. The appointment of a nonresident
1541	public adjuster shall continue in force until suspended,
1542	revoked, or otherwise terminated, but subject to biennial
1543	renewal or continuation by the licensee in accordance with
1544	procedures prescribed in s. 626.381 for licensees in general.
1545	(d)  Is trustworthy and has such business reputation as
1546	would reasonably assure that he or she will conduct his or her
1547	business as a nonresident public adjuster fairly and in good
1548	faith and without detriment to the public.
1549	(e)  Has had sufficient experience, training, or
1550	instruction concerning the adjusting of damages or losses under
1551	insurance contracts, other than life and annuity contracts; is
1552	sufficiently informed as to the terms and effects of the
1553	provisions of those types of insurance contracts; and possesses
1554	adequate knowledge of the laws of this state relating to such
1555	contracts as to enable and qualify him or her to engage in the
1556	business of insurance adjuster fairly and without injury to the
1557	public or any member thereof with whom he or she may have
1558	business as a public adjuster.
1559	(2)  The applicant shall furnish the following with his or
1560	her application:
1561	(a)  A complete set of his or her fingerprints. The
1562	applicant's fingerprints must be certified by an authorized law
1563	enforcement officer. The department office may not authorize an
1564	applicant to take the required examination or issue a
1565	nonresident public adjuster's license to the applicant until the
1566	department office has received a report from the Florida
1567	Department of Law Enforcement and the Federal Bureau of
1568	Investigation relative to the existence or nonexistence of a
1569	criminal history report based on the applicant's fingerprints.
1570	(b)  If currently licensed as a resident public adjuster in
1571	the applicant's state of residence, a certificate or letter of
1572	authorization from the licensing authority of the applicant's
1573	state of residence, stating that the applicant holds a current
1574	or comparable license to act as a public adjuster. The
1575	certificate or letter of authorization must be signed by the
1576	insurance commissioner or his or her deputy or the appropriate
1577	licensing official and must disclose whether the adjuster has
1578	ever had any license or eligibility to hold any license
1579	declined, denied, suspended, revoked, or placed on probation or
1580	whether an administrative fine or penalty has been levied
1581	against the adjuster and, if so, the reason for the action.
1582	(c)  If the applicant's state of residence does not require
1583	licensure as a public adjuster and the applicant has been
1584	licensed as a resident insurance adjuster, agent, broker, or
1585	other insurance representative in his or her state of residence
1586	or any other state within the past 3 years, a certificate or
1587	letter of authorization from the licensing authority stating
1588	that the applicant holds or has held a license to act as such an
1589	insurance adjuster, agent, or other insurance representative.
1590	The certificate or letter of authorization must be signed by the
1591	insurance commissioner or his or her deputy or the appropriate
1592	licensing official and must disclose whether or not the
1593	adjuster, agent, or other insurance representative has ever had
1594	any license or eligibility to hold any license declined, denied,
1595	suspended, revoked, or placed on probation or whether an
1596	administrative fine or penalty has been levied against the
1597	adjuster and, if so, the reason for the action.
1598	(3)  At the time of application for license as a
1599	nonresident public adjuster, the applicant shall file with the
1600	department office a bond executed and issued by a surety insurer
1601	authorized to transact surety business in this state, in the
1602	amount of $50,000, conditioned for the faithful performance of
1603	his or her duties as a nonresident public adjuster under the
1604	license applied for. The bond must be in favor of the department
1605	office and must specifically authorize recovery by the
1606	department office of the damages sustained if the licensee
1607	commits fraud or unfair practices in connection with his or her
1608	business as nonresident public adjuster. The aggregate liability
1609	of the surety for all the damages may not exceed the amount of
1610	the bond. The bond may not be terminated unless at least 30
1611	days' written notice is given to the licensee and filed with the
1612	department office.
1613	(4)  The usual and customary records pertaining to
1614	transactions under the license of a nonresident public adjuster
1615	must be retained for at least 3 years after completion of the
1616	adjustment and must be made available in this state to the
1617	department office upon request. The failure of a nonresident
1618	public adjuster to properly maintain records and make them
1619	available to the department office upon request constitutes
1620	grounds for the immediate suspension of the license issued under
1621	this section.
1622	(5)  After licensure as a nonresident public adjuster, as a
1623	condition of doing business in this state, the licensee must
1624	annually on or before January 1, on a form prescribed by the
1625	department commission, submit an affidavit certifying that the
1626	licensee is familiar with and understands the insurance code and
1627	rules adopted thereunder and the provisions of the contracts
1628	negotiated or to be negotiated. Compliance with this filing
1629	requirement is a condition precedent to the issuance,
1630	continuation, reinstatement, or renewal of a nonresident public
1631	adjuster's appointment.
1632	Section 61.  Subsections (1), (3), and (4) of section
1633	626.8734, Florida Statutes, are amended to read:
1634	626.8734  Nonresident independent adjuster's
1635	qualifications.--
1636	(1)  The department office shall, upon application
1637	therefor, issue a license to an applicant for a nonresident
1638	independent adjuster's license upon determining that the
1639	applicant has paid the applicable license fees required under s.
1640	624.501 and:
1641	(a)  Is a natural person at least 18 years of age.
1642	(b)  Has passed to the satisfaction of the department
1643	office a written Florida independent adjuster's examination of
1644	the scope prescribed in s. 626.241(6); however, the requirement
1645	for the examination does not apply to any of the following:
1646	1.  An applicant who is licensed as a resident independent
1647	adjuster in his or her state of residence when that state
1648	requires the passing of a written examination in order to obtain
1649	the license and a reciprocal agreement with the appropriate
1650	official of that state has been entered into by the department
1651	office; or
1652	2.  An applicant who is licensed as a nonresident
1653	independent adjuster in a state other than his or her state of
1654	residence when the state of licensure requires the passing of a
1655	written examination in order to obtain the license and a
1656	reciprocal agreement with the appropriate official of the state
1657	of licensure has been entered into by the department office.
1658	(c)  Is self-employed or associated with or employed by an
1659	independent adjusting firm or other independent adjuster.
1660	Applicants licensed as nonresident independent adjusters under
1661	this section must be appointed as such in accordance with the
1662	provisions of ss. 626.112 and 626.451. Appointment fees in the
1663	amount specified in s. 624.501 must be paid to the department
1664	office in advance. The appointment of a nonresident independent
1665	adjuster shall continue in force until suspended, revoked, or
1666	otherwise terminated, but subject to biennial renewal or
1667	continuation by the licensee in accordance with procedures
1668	prescribed in s. 626.381 for licensees in general.
1669	(d)  Is trustworthy and has such business reputation as
1670	would reasonably assure that he or she will conduct his or her
1671	business as a nonresident independent adjuster fairly and in
1672	good faith and without detriment to the public.
1673	(e)  Has had sufficient experience, training, or
1674	instruction concerning the adjusting of damages or losses under
1675	insurance contracts, other than life and annuity contracts; is
1676	sufficiently informed as to the terms and effects of the
1677	provisions of those types of insurance contracts; and possesses
1678	adequate knowledge of the laws of this state relating to such
1679	contracts as to enable and qualify him or her to engage in the
1680	business of insurance adjuster fairly and without injury to the
1681	public or any member thereof with whom he or she may have
1682	business as an independent adjuster.
1683	(3)  The usual and customary records pertaining to
1684	transactions under the license of a nonresident independent
1685	adjuster must be retained for at least 3 years after completion
1686	of the adjustment and must be made available in this state to
1687	the department office upon request. The failure of a nonresident
1688	independent adjuster to properly maintain records and make them
1689	available to the department office upon request constitutes
1690	grounds for the immediate suspension of the license issued under
1691	this section.
1692	(4)  After licensure as a nonresident independent adjuster,
1693	as a condition of doing business in this state, the licensee
1694	must annually on or before January 1, on a form prescribed by
1695	the department commission, submit an affidavit certifying that
1696	the licensee is familiar with and understands the insurance laws
1697	and administrative rules of this state and the provisions of the
1698	contracts negotiated or to be negotiated. Compliance with this
1699	filing requirement is a condition precedent to the issuance,
1700	continuation, reinstatement, or renewal of a nonresident
1701	independent adjuster's appointment.
1702	Section 62.  Subsection (4) of section 626.8736, Florida
1703	Statutes, is amended to read:
1704	626.8736  Nonresident independent or public adjusters;
1705	service of process.--
1706	(4)  Upon receiving the service, the Chief Financial
1707	Officer shall forthwith send one of the copies of the process,
1708	by registered mail with return receipt requested, to the
1709	defendant nonresident independent or public adjuster at his or
1710	her last address of record with the department office.
1711	Section 63.  Section 626.8738, Florida Statutes, is amended
1712	to read:
1713	626.8738  Penalty for violation.--In addition to any other
1714	remedy imposed pursuant to this code, any person who acts as a
1715	resident or nonresident public adjuster or holds himself or
1716	herself out to be a public adjuster to adjust claims in this
1717	state, without being licensed by the department office as a
1718	public adjuster and appointed as a public adjuster, commits a
1719	felony of the third degree, punishable as provided in s.
1720	775.082, s. 775.083, or s. 775.084. Each act in violation of
1721	this section constitutes a separate offense.
1722	Section 64.  Section 626.874, Florida Statutes, is amended
1723	to read:
1724	626.874  Catastrophe or emergency adjusters.--
1725	(1)  In the event of a catastrophe or emergency, the
1726	department office may issue a license, for the purposes and
1727	under the conditions which it shall fix and for the period of
1728	emergency as it shall determine, to persons who are residents or
1729	nonresidents of this state, who are at least 18 years of age,
1730	who are United States citizens or legal aliens who possess work
1731	authorization from the United States Immigration and
1732	Naturalization Service, and who are not licensed adjusters under
1733	this part but who have been designated and certified to it as
1734	qualified to act as adjusters by independent resident adjusters
1735	or by an authorized insurer or by a licensed general lines agent
1736	to adjust claims, losses, or damages under policies or contracts
1737	of insurance issued by such insurers. The fee for the license
1738	shall be as provided in s. 624.501(12)(c).
1739	(2)  If any person not a licensed adjuster who has been
1740	permitted to adjust such losses, claims, or damages under the
1741	conditions and circumstances set forth in subsection (1),
1742	engages in any of the misconduct described in or contemplated by
1743	ss. 626.611 and 626.621, the department office, without notice
1744	and hearing, shall be authorized to issue its order denying such
1745	person the privileges granted under this section; and thereafter
1746	it shall be unlawful for any such person to adjust any such
1747	losses, claims, or damages in this state.
1748	Section 65.  Section 626.878, Florida Statutes, is amended
1749	to read:
1750	626.878  Rules; code of ethics.--An adjuster shall
1751	subscribe to the code of ethics specified in the rules of the
1752	department commission. The rules shall implement the provisions
1753	of this part and specify the terms and conditions of contracts,
1754	including a right to cancel, and require practices necessary to
1755	ensure fair dealing, prohibit conflicts of interest, and ensure
1756	preservation of the rights of the claimant to participate in the
1757	adjustment of claims.
1758	Section 66.  Section 627.7012, Florida Statutes, is
1759	transferred and renumbered as section 626.879, Florida Statutes,
1760	and amended to read:
1761	626.879 627.7012  Pools of insurance adjusters.--The
1762	department commission may, by rule, establish a pool of
1763	qualified insurance adjusters. The rules must provide that, if a
1764	hurricane occurs or an emergency is declared, the department
1765	office may assign members of the pool to the affected area and
1766	that an insurer may request that a member of the pool adjust
1767	claims in the assigned area. The rules may not require that an
1768	insurer use those adjusters assigned by the department office.
1769	Section 67.  Subsection (3) of section 626.9543, Florida
1770	Statutes, is amended to read:
1771	626.9543  Holocaust victims.--
1772	(3)  DEFINITIONS.--For the purpose of this section:
1773	(a)  "Department" means the Department of Insurance.
1774	(a)(b)  "Holocaust victim" means any person who lost his or
1775	her life or property as a result of discriminatory laws,
1776	policies, or actions targeted against discrete groups of persons
1777	between 1920 and 1945, inclusive, in Nazi Germany, areas
1778	occupied by Nazi Germany, or countries allied with Nazi Germany.
1779	(b)(c)  "Insurance policy" means, but is not limited to,
1780	life insurance, property insurance, or education policies.
1781	(c)(d)  "Legal relationship" means any parent, subsidiary,
1782	or affiliated company with an insurer doing business in this
1783	state.
1784	(d)(e)  "Proceeds" means the face or other payout value of
1785	policies and annuities plus reasonable interest to date of
1786	payments without diminution for wartime or immediate postwar
1787	currency devaluation.
1788	Section 68.  Subsection (9) of section 626.989, Florida
1789	Statutes, is amended to read:
1790	626.989  Investigation by department or Division of
1791	Insurance Fraud; compliance; immunity; confidential information;
1792	reports to division; division investigator's power of arrest.--
1793	(9)  In recognition of the complementary roles of
1794	investigating instances of workers' compensation fraud and
1795	enforcing compliance with the workers' compensation coverage
1796	requirements under chapter 440, the Department of Financial
1797	Services shall prepare and submit a joint performance report to
1798	the President of the Senate and the Speaker of the House of
1799	Representatives by November 1, 2003, and then by January 1 of
1800	each year. The annual report must include, but need not be
1801	limited to:
1802	(a)  The total number of initial referrals received, cases
1803	opened, cases presented for prosecution, cases closed, and
1804	convictions resulting from cases presented for prosecution by
1805	the Bureau of Workers' Compensation Insurance Fraud by type of
1806	workers' compensation fraud and circuit.
1807	(b)  The number of referrals received from insurers and the
1808	Division of Workers' Compensation and the outcome of those
1809	referrals.
1810	(c)  The number of investigations undertaken by the bureau
1811	office which were not the result of a referral from an insurer
1812	or the Division of Workers' Compensation.
1813	(d)  The number of investigations that resulted in a
1814	referral to a regulatory agency and the disposition of those
1815	referrals.
1816	(e)  The number and reasons provided by local prosecutors
1817	or the statewide prosecutor for declining prosecution of a case
1818	presented by the bureau office by circuit.
1819	(f)  The total number of employees assigned to the bureau
1820	office and the Division of Workers' Compliance unit delineated
1821	by location of staff assigned and the number and location of
1822	employees assigned to the bureau office who were assigned to
1823	work other types of fraud cases.
1824	(g)  The average caseload and turnaround time by type of
1825	case for each investigator and division compliance employee.
1826	(h)  The training provided during the year to workers'
1827	compensation fraud investigators and the division's compliance
1828	employees.
1829	Section 69.  Paragraphs (b) and (c) of subsection (2) of
1830	section 627.0628, Florida Statutes, are amended to read:
1831	627.0628  Florida Commission on Hurricane Loss Projection
1832	Methodology.--
1833	(2)  COMMISSION CREATED.--
1834	(b)  The commission shall consist of the following 11
1835	members:
1836	1.  The insurance consumer advocate.
1837	2.  The senior employee of the State Board of
1838	Administration responsible for operations of the Florida
1839	Hurricane Catastrophe Fund.
1840	3.  The Executive Director of the Citizens Property
1841	Insurance Corporation.
1842	4.  The Director of the Division of Emergency Management of
1843	the Department of Community Affairs.
1844	5.  The actuary member of the Florida Hurricane Catastrophe
1845	Fund Advisory Council.
1846	6.  An employee of the office who is an actuary responsible
1847	for property insurance rate filings and who is appointed by the
1848	Director of the Office of Insurance Regulation.
1849	7.6.  Five Six members appointed by the Chief Financial
1850	Officer, as follows:
1851	a.  An employee of the office who is an actuary responsible
1852	for property insurance rate filings.
1853	a.b.  An actuary who is employed full time by a property
1854	and casualty insurer which was responsible for at least 1
1855	percent of the aggregate statewide direct written premium for
1856	homeowner's insurance in the calendar year preceding the
1857	member's appointment to the commission.
1858	b.c.  An expert in insurance finance who is a full time
1859	member of the faculty of the State University System and who has
1860	a background in actuarial science.
1861	c.d.  An expert in statistics who is a full time member of
1862	the faculty of the State University System and who has a
1863	background in insurance.
1864	d.e.  An expert in computer system design who is a full
1865	time member of the faculty of the State University System.
1866	e.f.  An expert in meteorology who is a full time member of
1867	the faculty of the State University System and who specializes
1868	in hurricanes.
1869	(c)  Members designated under subparagraphs (b)1.-5. shall
1870	serve on the commission as long as they maintain the respective
1871	offices designated in subparagraphs (b)1.-5. Members appointed
1872	by the Chief Financial Officer under subparagraph (b)7.6. shall
1873	serve on the commission until the end of the term of office of
1874	the Chief Financial Officer who appointed them, unless earlier
1875	removed by the Chief Financial Officer for cause. Vacancies on
1876	the commission shall be filled in the same manner as the
1877	original appointment.
1878	Section 70.  Section 627.285, Florida Statutes, is amended
1879	to read:
1880	627.285  Independent actuarial peer review of workers'
1881	compensation rating organization.--The office Financial Services
1882	Commission shall at least once every other year contract for an
1883	independent actuarial peer review and analysis of the ratemaking
1884	processes of any licensed rating organization that makes rate
1885	filings for workers' compensation insurance, and the rating
1886	organization shall fully cooperate in the peer review. The
1887	contract shall require submission of a final report to the
1888	commission, the President of the Senate, and the Speaker of the
1889	House of Representatives by February 1. The first report shall
1890	be submitted by February 1, 2004. The costs of the independent
1891	actuarial peer review shall be paid from the Workers'
1892	Compensation Administration Trust Fund.
1893	Section 71.  Paragraph (b) of subsection (11) of section
1894	627.6699, Florida Statutes, is amended to read:
1895	627.6699  Employee Health Care Access Act.--
1896	(11)  SMALL EMPLOYER HEALTH REINSURANCE PROGRAM.--
1897	(b)1.  The program shall operate subject to the supervision
1898	and control of the board.
1899	2.  Effective upon this act becoming a law, the board shall
1900	consist of the Director of the Office of Insurance Regulation
1901	Chief Financial Officer or his or her designee, who shall serve
1902	as the chairperson, and 13 additional members who are
1903	representatives of carriers and insurance agents and are
1904	appointed by the Director of the Office of Insurance Regulation
1905	Chief Financial Officer and serve as follows:
1906	a.  The Director of the Office of Insurance Regulation
1907	Chief Financial Officer shall include representatives of small
1908	employer carriers subject to assessment under this subsection.
1909	If two or more carriers elect to be risk-assuming carriers, the
1910	membership must include at least two representatives of risk-
1911	assuming carriers; if one carrier is risk-assuming, one member
1912	must be a representative of such carrier. At least one member
1913	must be a carrier who is subject to the assessments, but is not
1914	a small employer carrier. Subject to such restrictions, at least
1915	five members shall be selected from individuals recommended by
1916	small employer carriers pursuant to procedures provided by rule
1917	of the commission. Three members shall be selected from a list
1918	of health insurance carriers that issue individual health
1919	insurance policies. At least two of the three members selected
1920	must be reinsuring carriers. Two members shall be selected from
1921	a list of insurance agents who are actively engaged in the sale
1922	of health insurance.
1923	b.  A member appointed under this subparagraph shall serve
1924	a term of 4 years and shall continue in office until the
1925	member's successor takes office, except that, in order to
1926	provide for staggered terms, the Director of the Office of
1927	Insurance Regulation Chief Financial Officer shall designate two
1928	of the initial appointees under this subparagraph to serve terms
1929	of 2 years and shall designate three of the initial appointees
1930	under this subparagraph to serve terms of 3 years.
1931	3.  The Director of the Office of Insurance Regulation
1932	Chief Financial Officer may remove a member for cause.
1933	4.  Vacancies on the board shall be filled in the same
1934	manner as the original appointment for the unexpired portion of
1935	the term.
1936	5.  The Director of the Office of Insurance Regulation
1937	Chief Financial Officer may require an entity that recommends
1938	persons for appointment to submit additional lists of
1939	recommended appointees.
1940	Section 72.  The transfer of the regulation of adjusters
1941	from the Office of Insurance Regulation to the Department of
1942	Financial Services by this act shall not affect the regulation
1943	of adjusters in any administrative or judicial action of the
1944	Office of Insurance Regulation arising out of or involving the
1945	Office of Insurance Regulation prior to or pending on the
1946	effective date of this act, and the Department of Financial
1947	Services shall be substituted as a party in interest on any such
1948	pending action.
1949	Section 73.  Any license, form, or action that was approved
1950	or authorized by the Financial Services Commission or the Office
1951	of Insurance Regulation that was otherwise lawfully in use prior
1952	to the effective date of this act may continue to be used, or be
1953	effective as originally authorized or permitted, until the
1954	Department of Financial Services otherwise prescribes.
1955	Section 74.  Upon the effective date of this act, the rules
1956	or portions thereof of the Financial Services Commission that
1957	govern the regulation of insurance adjusters shall become rules
1958	or portions thereof of the Department of Financial Services as
1959	is appropriate to the corresponding regulatory or constitutional
1960	function and shall remain in effect until specifically amended
1961	or repealed in the manner provided by law.
1962	Section 75.  Section 215.31, Florida Statutes, is amended
1963	to read:
1964	215.31  State funds; deposit in State Treasury.--
1965	(1)  Revenue, including licenses, fees, imposts, or
1966	exactions collected or received under the authority of the laws
1967	of the state by each and every state official, office, employee,
1968	bureau, division, board, commission, institution, agency, or
1969	undertaking of the state or the judicial branch shall be
1970	promptly deposited in the State Treasury, and immediately
1971	credited to the appropriate fund as herein provided, properly
1972	accounted for by the Department of Financial Services as to
1973	source and no money shall be paid from the State Treasury except
1974	as appropriated and provided by the annual General
1975	Appropriations Act, or as otherwise provided by law.
1976	(2)  Every state official, office, employee, bureau,
1977	division, board, commission, institution, agency, or undertaking
1978	of the state or the judicial branch that enters into a
1979	settlement of an action or a claim brought on behalf of the
1980	state against any person shall ensure that all funds received or
1981	paid pursuant to the settlement are promptly deposited into the
1982	State Treasury; however, funds designated in the settlement for
1983	purposes of restitution to affected individuals shall be
1984	promptly transmitted to the intended beneficiaries thereof. No
1985	funds due and owing to the state under a settlement may be
1986	maintained outside the State Treasury unless otherwise
1987	specifically authorized by law.
1988	Section 76.  Subsection (1) of section 215.95, Florida
1989	Statutes, is amended to read:
1990	215.95  Financial Management Information Board.--
1991	(1)  There is created, as part of the Administration
1992	Commission, the Financial Management Information Board. The
1993	board shall be composed of the Governor, the Chief Financial
1994	Officer, the Commissioner of Agriculture, and the Attorney
1995	General. The Governor shall be chair of the board. The Governor
1996	or the Chief Financial Officer may call a meeting of the board
1997	at any time the need arises.
1998	Section 77.  Subsections (2) and (4) of section 215.96,
1999	Florida Statutes, are amended to read:
2000	215.96  Coordinating council and design and coordination
2001	staff.--
2002	(2)  The coordinating council shall consist of the Chief
2003	Financial Officer; the Commissioner of Agriculture; the
2004	secretary of the Department of Management Services; the Attorney
2005	General; and the Director of Planning and Budgeting, Executive
2006	Office of the Governor, or their designees. The Chief Financial
2007	Officer, or his or her designee, shall be chair of the
2008	coordinating council, and the design and coordination staff
2009	shall provide administrative and clerical support to the council
2010	and the board. The design and coordination staff shall maintain
2011	the minutes of each meeting and shall make such minutes
2012	available to any interested person. The Auditor General, the
2013	State Courts Administrator, an executive officer of the Florida
2014	Association of State Agency Administrative Services Directors,
2015	and an executive officer of the Florida Association of State
2016	Budget Officers, or their designees, shall serve without voting
2017	rights as ex officio members on the coordinating council. The
2018	chair may call meetings of the coordinating council as often as
2019	necessary to transact business; however, the coordinating
2020	council shall meet at least once a year. Action of the
2021	coordinating council shall be by motion, duly made, seconded and
2022	passed by a majority of the coordinating council voting in the
2023	affirmative for approval of items that are to be recommended for
2024	approval to the Financial Management Information Board.
2025	(4)  The Financial Management Information Board, through
2026	the coordinating council, shall provide the necessary planning,
2027	implementation, and integration policies, coordination
2028	procedures, and reporting processes to facilitate the successful
2029	and efficient integration of the central administrative and
2030	financial management information systems, including the Florida
2031	Accounting Information Resource system (FLAIR), Cash Management
2032	System (CMS), and FLAIR/CMS replacement project, the payroll
2033	system in the Department of Financial Services, the Legislative
2034	Appropriations System/Planning and Budgeting Subsystem
2035	(LAS/PBS), the State Purchasing System (SPURS) and MyFlorida
2036	Marketplace project, the Cooperative Personnel Employment
2037	Subsystem (COPES) and the PeopleFirst Outsourcing project, and
2038	the State Unified Tax system (SUNTAX).
2039	(a)  To fulfill this role, the coordinating council shall
2040	establish an Enterprise Resource Planning Integration Task
2041	Force, which shall consist of the coordinating council members
2042	plus the Chief Information Officer in the State Technology
2043	Office and the Executive Director or designee in the Department
2044	of Revenue, who shall serve with voting rights on the task
2045	force. The nonvoting ex officio members of the coordinating
2046	council shall be nonvoting members of the task force.
2047	(b)  The task force shall be established by August 1, 2003,
2048	and shall remain in existence until the integration goals have
2049	been achieved among the FLAIR/CMS Replacement project, SPURS and
2050	MyFlorida Marketplace project, COPES and PeopleFirst project,
2051	payroll system, LAS/PBS, and SUNTAX system, or until June 30,
2052	2005, whichever is later. The task force shall hold its initial
2053	meeting no later than September 1, 2003, and shall meet at the
2054	call of the chair or at least once every 60 days. In its initial
2055	meeting, task force members shall:
2056	1.  Adopt a task force charter that identifies major
2057	objectives, activities, milestones and deliverables, significant
2058	assumptions, and constraints on the task force functions and
2059	major stakeholder groups interested in the outcome of the task
2060	force.
2061	2.  Consider and adopt processes by which information will
2062	be collected and business process and technical integration
2063	issues will be raised for analysis and recommendation by the
2064	task force.
2065	3.  Elect a member to serve as vice chair. Any vacancy in
2066	the vice chair position shall be filled by similar election
2067	within 30 days after the date the vacancy is effective.
2068	(c)  The coordinating council shall provide administrative
2069	and technical support to the task force as is reasonably
2070	necessary for the task force to effectively and timely carry out
2071	its duties and responsibilities. The cost of providing such
2072	support may be paid from funds appropriated for the operation of
2073	the council or the FLAIR/CMS Replacement project. The task force
2074	also may contract for services to obtain specific expertise to
2075	analyze, facilitate, and formulate recommendations to address
2076	process and technical integration problems that need to be
2077	resolved.
2078	(d)  Using information and input from project teams and
2079	stakeholders responsible for the FLAIR/CMS Replacement project,
2080	SPURS and MyFlorida Marketplace project, COPES and PeopleFirst
2081	project, payroll system, LAS/PBS, and SUNTAX system, the
2082	responsibilities of the task force shall include, but not be
2083	limited to:
2084	1.  Identifying and documenting central administrative and
2085	financial management policies, procedures, and processes that
2086	need to be integrated and recommending steps for implementation.
2087	2.  Collecting information from the subsystem owners and
2088	project teams and developing and publishing a consolidated list
2089	of enterprise resource planning functional and technical
2090	integration requirements.
2091	3.  Publishing integration plans and timelines based on
2092	information collected from task force members.
2093	4.  Forming committees, workgroups, and teams as provided
2094	in subsection (3).
2095	5.  Developing recommendations for the Financial Management
2096	Information Board which clearly describe any business or
2097	technical problems that need to be addressed, the options for
2098	resolving the problem, and the recommended actions.
2099	6.  Developing and implementing plans for reporting status
2100	of integration efforts.
2101	(e)  The task force shall provide recommendations to the
2102	Financial Management Information Board for review and approval
2103	regarding the technical, procedural, policy, and process
2104	requirements and changes that are needed to successfully
2105	integrate, implement, and realize the benefits of the enterprise
2106	resource planning initiatives associated with the FLAIR/CMS
2107	Replacement project, SPURS and MyFlorida Marketplace project,
2108	COPES and PeopleFirst project, payroll system, LAS/PBS, and
2109	SUNTAX system. The first of these reports should be provided no
2110	later than October 3, 2003.
2111	(f)  The task force shall monitor, review, and evaluate the
2112	progress of the FLAIR/CMS Replacement project, SPURS and
2113	MyFlorida Marketplace project, COPES and PeopleFirst project,
2114	payroll system, LAS/PBS, and SUNTAX system, in implementing the
2115	process and technical integration requirements and changes
2116	approved by the Financial Management Information Board and in
2117	achieving the necessary integration among the central
2118	administrative and financial management information systems
2119	represented on the task force. The task force shall prepare and
2120	submit quarterly reports to the Executive Office of the
2121	Governor, the chairs of the Senate Appropriations Committee and
2122	the House Appropriations Committee, and the Financial Management
2123	Information Board. Each quarterly report shall identify and
2124	describe the technical, procedural, policy, and process
2125	requirements and changes proposed and adopted by the board and
2126	shall describe the status of the implementation of these
2127	integration efforts, identify any problems, issues, or risks
2128	that require executive-level action, and report actual costs
2129	related to the Enterprise Resource Planning Integration Task
2130	Force.
2131	(g)  By January 15, 2004, and annually thereafter, until it
2132	is disbanded, the Enterprise Resource Planning Integration Task
2133	Force shall report to the Financial Management Information
2134	Board, the Speaker of the House of Representatives, and the
2135	President of the Senate the results of the task force's
2136	monitoring, review, and evaluation of enterprise resource
2137	planning integration activities and requirements, and any
2138	recommendations for statutory changes to be considered by the
2139	Legislature.
2140	(h)  This subsection expires July 1, 2008 2004.
2141	Section 78.  Section 17.0416, Florida Statutes, is created
2142	to read:
2143	17.0416  Authority to provide services on a fee basis.--
2144	(1)  The Chief Financial Officer, through the Department of
2145	Financial Services, may provide accounting and payroll services
2146	on a fee basis under contractual agreement with eligible
2147	entities, including, but not limited to, state universities,
2148	community colleges, units of local government, constitutional
2149	officers, and any other person or entity having received any
2150	property, funds, or moneys of the state.
2151	(2)  The Department of Financial Services may adopt any
2152	rules necessary to implement this section.
2153	Section 79.  Subsection (2) of section 17.57, Florida
2154	Statutes, is amended to read:
2155	17.57  Deposits and investments of state money.--
2156	(2)  The Chief Financial Officer shall make funds available
2157	to meet the disbursement needs of the state. Funds which are not
2158	needed for this purpose shall be placed in qualified public
2159	depositories that will pay rates established by the Chief
2160	Financial Officer at levels not less than the prevailing rate
2161	for United States Treasury securities with a corresponding
2162	maturity. In the event money is available for interest-bearing
2163	time deposits or savings accounts as provided herein and
2164	qualified public depositories are unwilling to accept such money
2165	and pay thereon the rates established above, then such money
2166	which qualified public depositories are unwilling to accept
2167	shall be invested in:
2168	(a)  Direct United States Treasury obligations.
2169	(b)  Obligations of the Federal Farm Credit Banks.
2170	(c)  Obligations of the Federal Home Loan Bank and its
2171	district banks.
2172	(d)  Obligations of the Federal Home Loan Mortgage
2173	Corporation, including participation certificates.
2174	(e)  Obligations guaranteed by the Government National
2175	Mortgage Association.
2176	(f)  Obligations of the Federal National Mortgage
2177	Association.
2178	(g)  Commercial paper of prime quality of the highest
2179	letter and numerical rating as provided for by at least one
2180	nationally recognized rating service.
2181	(h)  Time drafts or bills of exchange drawn on and accepted
2182	by a commercial bank, otherwise known as "bankers acceptances,"
2183	which are accepted by a member bank of the Federal Reserve
2184	System having total deposits of not less than $400 million or
2185	which are accepted by a commercial bank which is not a member of
2186	the Federal Reserve System with deposits of not less than $400
2187	million and which is licensed by a state government or the
2188	Federal Government, and whose senior debt issues are rated in
2189	one of the two highest rating categories by a nationally
2190	recognized rating service and which are held in custody by a
2191	domestic bank which is a member of the Federal Reserve System.
2192	(i)  Corporate obligations or corporate master notes of any
2193	corporation within the United States, if the long-term
2194	obligations of such corporation are rated by at least two
2195	nationally recognized rating services in any one of the four
2196	highest classifications. However, if such obligations are rated
2197	by only one nationally recognized rating service, then the
2198	obligations shall be rated in any one of the two highest
2199	classifications.
2200	(j)  Obligations of the Student Loan Marketing Association.
2201	(k)  Obligations of the Resolution Funding Corporation.
2202	(l)  Asset-backed or mortgage-backed securities of the
2203	highest credit quality.
2204	(m)  Any obligations not previously listed which are
2205	guaranteed as to principal and interest by the full faith and
2206	credit of the United States Government or are obligations of
2207	United States agencies or instrumentalities which are rated in
2208	the highest category by a nationally recognized rating service.
2209	(n)  Commingled no-load investment funds or no-load mutual
2210	funds in which all securities held by the funds are authorized
2211	in this subsection.
2212	(o)  Money market mutual funds as defined and regulated by
2213	the Securities and Exchange Commission.
2214	(p)  Obligations of state and local governments rated in
2215	any of the four highest classifications by at least two
2216	nationally recognized rating services. However, if such
2217	obligations are rated by only one nationally recognized rating
2218	service, then the obligations shall be rated in any one of the
2219	two highest classifications.
2220	(q)  Derivatives of investment instruments authorized in
2221	paragraphs (a)-(m).
2222	(r)  Covered put and call options on investment instruments
2223	authorized in this subsection for the purpose of hedging
2224	transactions by investment managers to mitigate risk or to
2225	facilitate portfolio management.
2226	(s)  Negotiable certificates of deposit issued by financial
2227	institutions whose long-term debt is rated in one of the three
2228	highest categories by at least two nationally recognized rating
2229	services, the investment in which shall not be prohibited by any
2230	provision of chapter 280.
2231	(t)  Foreign bonds denominated in United States dollars and
2232	registered with the Securities and Exchange Commission for sale
2233	in the United States, if the long-term obligations of such
2234	issuers are rated by at least two nationally recognized rating
2235	services in any one of the four highest classifications.
2236	However, if such obligations are rated by only one nationally
2237	recognized rating service, the obligations shall be rated in any
2238	one of the two highest classifications.
2239	(u)  Convertible debt obligations of any corporation
2240	domiciled within the United States, if the convertible debt
2241	issue is rated by at least two nationally recognized rating
2242	services in any one of the four highest classifications.
2243	However, if such obligations are rated by only one nationally
2244	recognized rating service, then the obligations shall be rated
2245	in any one of the two highest classifications.
2246	(v)  Securities not otherwise described in this subsection.
2247	However, not more than 3 percent of the funds under the control
2248	of the Chief Financial Officer shall be invested in securities
2249	described in this paragraph.
2250
2251	These investments may be in varying maturities and may be in
2252	book-entry form. Investments made pursuant to this subsection
2253	may be under repurchase agreement or reverse repurchase
2254	agreement. The Chief Financial Officer may hire registered
2255	investment advisers and other consultants to assist in
2256	investment management and to pay fees directly from investment
2257	earnings. Investment securities, proprietary investment services
2258	related to contracts, performance evaluation services,
2259	investment-related equipment or software used directly to assist
2260	investment trading or investment accounting operations including
2261	bond calculators, telerates, Bloombergs, special program
2262	calculators, intercom systems, and software used in accounting,
2263	communications, and trading, and advisory and consulting
2264	contracts made under this section are exempt from the provisions
2265	of chapter 287.
2266	Section 80.  Section 17.59, Florida Statutes, is amended to
2267	read:
2268	17.59  Collateral management Safekeeping services.--
2269	(1)  The Chief Financial Officer shall administer a
2270	collateral management service for all may accept for safekeeping
2271	purposes, deposits of cash, securities, and other documents or
2272	articles of value from any state agencies agency as defined in
2273	s. 216.011, or any county, city, or political subdivision
2274	thereof, or other public authority that require by law, rule, or
2275	contract the deposit or pledge of collateral.
2276	(2)  Eligible collateral listed in s. 17.57 may be
2277	deposited or pledged using the following collateral arrangements
2278	as approved by the Chief Financial Officer:
2279	(a)  Collateral deposited and held by a custodian of the
2280	Chief Financial Officer.
2281	(b)  Collateral pledged to the Chief Financial Officer.
2282	(c)  Securities and articles of value deposited and held by
2283	the Chief Financial Officer.
2284	(d)  Cash deposited in the Treasury Cash Deposit Trust Fund
2285	and the Public Deposits Trust Fund.
2286	(e)  Cash deposited with the Chief Financial Officer as
2287	escrow agent.
2288	(3)  The Chief Financial Officer may adopt any rules
2289	necessary for the proper management and maintenance of the
2290	collateral management service.
2291	(4)(2)  The Chief Financial Officer may, in his or her
2292	discretion, establish a fee for processing, servicing, and
2293	safekeeping deposits and other documents or articles of value
2294	maintained by held in the Chief Financial Officer Officer's
2295	vaults as requested by the various entities according to a
2296	service level agreement or as provided for by law. Such fee
2297	shall be equivalent to the fee charged by financial institutions
2298	for processing, servicing, and safekeeping the same types of
2299	deposits and other documents or articles of value.
2300	(5)(3)  The Chief Financial Officer shall collect in
2301	advance, and persons so served shall pay to the Chief Financial
2302	Officer in advance, the miscellaneous charges as described in a
2303	service level agreement follows:
2304	(a)  For copies of documents or records on file with the
2305	Chief Financial Officer, per page.........................$.50.
2306	(b)  For each certificate of the Chief Financial Officer,
2307	certified or under the Chief Financial Officer's seal,
2308	authenticating any document or other instrument...........$5.00.
2309	(6)(4)  All fees collected for the services described in
2310	this section shall be deposited in the Treasury Administrative
2311	and Investment Trust Fund.
2312	Section 81.  Subsection (1) of section 17.61, Florida
2313	Statutes, is amended to read:
2314	17.61  Chief Financial Officer; powers and duties in the
2315	investment of certain funds.--
2316	(1)  The Chief Financial Officer shall invest all general
2317	revenue funds and all the trust funds and all agency funds of
2318	each state agency, and of the judicial branch, as defined in s.
2319	216.011, and may, upon request, invest funds of any statutorily
2320	created board, association, or entity created by the State
2321	Constitution or by law, except for the funds required to be
2322	invested pursuant to ss. 215.44-215.53, by the procedure and in
2323	the authorized securities prescribed in s. 17.57; for this
2324	purpose, the Chief Financial Officer may open and maintain one
2325	or more demand and safekeeping accounts in any bank or savings
2326	association for the investment and reinvestment and the
2327	purchase, sale, and exchange of funds and securities in the
2328	accounts. Funds in such accounts used solely for investments and
2329	reinvestments shall be considered investment funds and not funds
2330	on deposit, and such funds shall be exempt from the provisions
2331	of chapter 280. In addition, the securities or investments
2332	purchased or held under the provisions of this section and s.
2333	17.57 may be loaned to securities dealers and banks and may be
2334	registered by the Chief Financial Officer in the name of a
2335	third-party nominee in order to facilitate such loans, provided
2336	the loan is collateralized by cash or United States government
2337	securities having a market value of at least 100 percent of the
2338	market value of the securities loaned. The Chief Financial
2339	Officer shall keep a separate account, designated by name and
2340	number, of each fund. Individual transactions and totals of all
2341	investments, or the share belonging to each fund, shall be
2342	recorded in the accounts.
2343	Section 82.  Paragraph (e) is added to subsection (4) of
2344	section 112.215, Florida Statutes, and subsection (11) of said
2345	section is amended, to read:
2346	112.215  Government employees; deferred compensation
2347	program.--
2348	(4)
2349	(e)  The administrative costs of the deferred compensation
2350	plan shall be wholly or partially self-funded. Fees for such
2351	self-funding of the plan shall be paid by investment providers
2352	and may be recouped from their respective plan participants.
2353	Such fees shall be deposited in the Deferred Compensation Trust
2354	Fund.
2355	(11)  With respect to any funds held pursuant to a deferred
2356	compensation plan, any investment option plan provider which is
2357	a bank or savings association and which provides time deposit
2358	accounts and certificates of deposit as an investment product to
2359	the plan participants may, with the approval of the State Board
2360	of Administration for providers in the state plan, or with the
2361	approval of the appropriate official or body designated under
2362	subsection (5) for a plan of a county, municipality, other
2363	political subdivision, or constitutional county officer, be
2364	exempt from the provisions of chapter 280 requiring it to be a
2365	qualified public depository, provided:
2366	(a)  The bank or savings association shall, to the extent
2367	that the time deposit accounts or certificates of deposit are
2368	not insured by the Federal Deposit Insurance Corporation,
2369	deposit or issue collateral with the Chief Financial Officer for
2370	all state funds held by it under a deferred compensation plan,
2371	or with such other appropriate official for all public funds
2372	held by it under a deferred compensation plan of a county,
2373	municipality, other political subdivision, or constitutional
2374	county officer, in an amount which equals at least 150 percent
2375	of all uninsured deferred compensation funds then held.
2376	(b)  Said collateral shall be of the kind permitted by s.
2377	280.13 and shall be pledged in the manner provided for by the
2378	applicable provisions of chapter 280.
2379
2380	The Chief Financial Officer shall have all the applicable powers
2381	provided in ss. 280.04, 280.05, and 280.08 relating to the sale
2382	or other disposition of the pledged collateral.
2383	Section 83.  Subsection (10) is added to section 287.064,
2384	Florida Statutes, to read:
2385	287.064  Consolidated financing of deferred-payment
2386	purchases.--
2387	(10)  Costs incurred pursuant to a guaranteed energy
2388	performance savings contract, including the cost of energy
2389	conservation measures, each as defined in s. 489.145, may be
2390	financed pursuant to a master equipment financing agreement
2391	entered into pursuant to this section, provided the costs of
2392	training, operation, and maintenance shall not be financed.
2393	Repayment of the funds drawn pursuant to the master equipment
2394	financing agreement pursuant to this subsection may exceed 5
2395	years but shall not exceed 10 years.
2396	Section 84.  This act shall take effect upon becoming a
2397	law.

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