Senate Bill sb1124

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    Florida Senate - 2006                                  SB 1124

    By Senator Posey





    24-546-06

  1                      A bill to be entitled

  2         An act relating to insurance fraud; amending s.

  3         322.21, F.S.; requiring an additional fee for

  4         reinstatement of a suspended or revoked

  5         driver's license when the revocation or

  6         suspension was for an offense relating to a

  7         fraudulent insurance claim; amending s. 322.26,

  8         F.S.; requiring mandatory driver's license

  9         revocation for a conviction of one of such

10         offense relating to a fraudulent insurance

11         claim; amending s. 456.072, F.S.; providing

12         that certain offenses involving fraudulent

13         insurance practices constitute grounds for

14         discipline of professional licensees; amending

15         s. 626.989, F.S.; authorizing rules for

16         reporting suspected fraudulent activity to the

17         Division of Insurance Fraud; authorizing

18         creation of a worldwide web page to identify

19         persons convicted of offenses relating to

20         fraudulent motor vehicle crashes and

21         documentation; amending s. 627.736, F.S.;

22         requiring personal injury protection insurers

23         to provide certain notice with respect to fraud

24         to insureds and persons for whom a claim has

25         been filed; amending s. 817.234, F.S.;

26         redefining the elements of the offense of

27         insurance fraud; prohibiting participation in a

28         scheme to create documentation of a nonexistent

29         motor vehicle crash; providing a penalty;

30         amending s. 817.2361, F.S.; prohibiting

31         creating, marketing, or presenting any false or

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    Florida Senate - 2006                                  SB 1124
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 1         fraudulent proof of motor vehicle insurance;

 2         providing a penalty; amending s. 817.50, F.S.;

 3         excepting investigative actions by law

 4         enforcement officers from the prohibition

 5         against giving false information with respect

 6         to a health maintenance contract or insurance

 7         contract; amending s. 817.505, F.S.; redefining

 8         the elements of the offense of patient

 9         brokering; providing penalties; amending s.

10         843.08, F.S.; prohibiting falsely personating

11         an officer of the Department of Financial

12         Services; providing a penalty; creating s.

13         626.9893, F.S., and amending s. 932.7055, F.S.;

14         providing for disposition of certain revenues

15         from criminal proceedings or forfeiture

16         proceedings by the Division of Insurance Fraud;

17         providing for severability; providing

18         appropriations and authorizing positions;

19         repealing s. 19, chapter 2003-411, Laws of

20         Florida, which repealed the Florida Motor

21         Vehicle No-Fault Law, unless reenacted by the

22         Legislature; providing an effective date.

23  

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

25  

26         Section 1.  This act may be cited as the "Personal

27  Injury Protection Anti-Fraud Act."

28         Section 2.  Subsection (8) of section 322.21, Florida

29  Statutes, is amended to read:

30         322.21  License fees; procedure for handling and

31  collecting fees.--

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    Florida Senate - 2006                                  SB 1124
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 1         (8)  Any person who applies for reinstatement following

 2  the suspension or revocation of the person's driver's license

 3  shall pay a service fee of $35 following a suspension, and $60

 4  following a revocation, which is in addition to the fee for a

 5  license. Any person who applies for reinstatement of a

 6  commercial driver's license following the disqualification of

 7  the person's privilege to operate a commercial motor vehicle

 8  shall pay a service fee of $60, which is in addition to the

 9  fee for a license. The department shall collect all of these

10  fees at the time of reinstatement. The department shall issue

11  proper receipts for such fees and shall promptly transmit all

12  funds received by it as follows:

13         (a)  Of the $35 fee received from a licensee for

14  reinstatement following a suspension, the department shall

15  deposit $15 in the General Revenue Fund and $20 in the Highway

16  Safety Operating Trust Fund.

17         (b)  Of the $60 fee received from a licensee for

18  reinstatement following a revocation or disqualification, the

19  department shall deposit $35 in the General Revenue Fund and

20  $25 in the Highway Safety Operating Trust Fund.

21  

22  If the revocation or suspension of the driver's license was

23  for a violation of s. 316.193, or for refusal to submit to a

24  lawful breath, blood, or urine test, an additional fee of $115

25  must be charged. However, only one $115 fee may be collected

26  from one person convicted of violations arising out of the

27  same incident. The department shall collect the $115 fee and

28  deposit the fee into the Highway Safety Operating Trust Fund

29  at the time of reinstatement of the person's driver's license,

30  but the fee may not be collected if the suspension or

31  revocation is overturned. If the revocation or suspension of

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 1  the driver's license was for a conviction for violating s.

 2  817.234(8)(b) or (c) or (9) or s. 817.505(1)(c) or (d), an

 3  additional fee of $180 must be charged for each offense. The

 4  department shall collect the $180 fee and deposit it into the

 5  Highway Safety Operating Trust Fund at the time of reinstating

 6  the person's driver's license.

 7         Section 3.  Subsection (9) is added to section 322.26,

 8  Florida Statutes, to read:

 9         322.26  Mandatory revocation of license by

10  department.--The department shall forthwith revoke the license

11  or driving privilege of any person upon receiving a record of

12  such person's conviction of any of the following offenses:

13         (9)  A violation of s. 817.234(8)(b) or (c) or (9) or

14  s. 817.505(1)(c) or (d).

15         Section 4.  Paragraphs (hh) and (ii) are added to

16  subsection (1) of section 456.072, Florida Statutes, to read:

17         456.072  Grounds for discipline; penalties;

18  enforcement.--

19         (1)  The following acts shall constitute grounds for

20  which the disciplinary actions specified in subsection (2) may

21  be taken:

22         (hh)  Paying or receiving any commission, bonus,

23  kickback, or rebate, or engaging in any split-fee arrangement

24  in any form whatsoever with a physician, organization, agency,

25  or person, directly or indirectly, for patients referred to a

26  provider of health care goods and services, including, but not

27  limited to, a hospital, nursing home, clinical laboratory,

28  ambulatory surgical center, or pharmacy. This paragraph may

29  not be construed to prevent a health care provider from

30  receiving a fee for professional consultation services.

31  

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 1         (ii)  Submitting a claim for payment of diagnostic or

 2  treatment services of a person injured in a motor vehicle

 3  crash when the licensee knows that the crash was staged or did

 4  not occur.

 5         Section 5.  Subsection (6) of section 626.989, Florida

 6  Statutes, is amended, and subsection (10) is added to that

 7  section, to read:

 8         626.989  Investigation by department or Division of

 9  Insurance Fraud; compliance; immunity; confidential

10  information; reports to division; division investigator's

11  power of arrest.--

12         (6)  Any person, other than an insurer, agent, or other

13  person licensed under the code, or an employee thereof, having

14  knowledge or who believes that a fraudulent insurance act or

15  any other act or practice which, upon conviction, constitutes

16  a felony or a misdemeanor under the code, or under s. 817.234,

17  is being or has been committed may send to the Division of

18  Insurance Fraud a report or information pertinent to such

19  knowledge or belief and such additional information relative

20  thereto as the department may request. Any professional

21  practitioner licensed or regulated by the Department of

22  Business and Professional Regulation, except as otherwise

23  provided by law, any medical review committee as defined in s.

24  766.101, any private medical review committee, and any

25  insurer, agent, or other person licensed under the code, or an

26  employee thereof, having knowledge or who believes that a

27  fraudulent insurance act or any other act or practice which,

28  upon conviction, constitutes a felony or a misdemeanor under

29  the code, or under s. 817.234, is being or has been committed

30  shall send to the Division of Insurance Fraud a report or

31  information pertinent to such knowledge or belief and such

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 1  additional information relative thereto as the department may

 2  require. The Division of Insurance Fraud shall review such

 3  information or reports and select such information or reports

 4  as, in its judgment, may require further investigation. It

 5  shall then cause an independent examination of the facts

 6  surrounding such information or report to be made to determine

 7  the extent, if any, to which a fraudulent insurance act or any

 8  other act or practice which, upon conviction, constitutes a

 9  felony or a misdemeanor under the code, or under s. 817.234,

10  is being committed. The Division of Insurance Fraud shall

11  report any alleged violations of law which its investigations

12  disclose to the appropriate licensing agency and state

13  attorney or other prosecuting agency having jurisdiction with

14  respect to any such violation, as provided in s. 624.310. If

15  prosecution by the state attorney or other prosecuting agency

16  having jurisdiction with respect to such violation is not

17  begun within 60 days of the division's report, the state

18  attorney or other prosecuting agency having jurisdiction with

19  respect to such violation shall inform the division of the

20  reasons for the lack of prosecution. The division may adopt

21  rules that set forth requirements for the manner in which

22  suspected fraudulent activity is reported to the division

23  through the use of a standard referral form.

24         (10)  The Division of Insurance Fraud may develop and

25  maintain a page on the worldwide web for the purpose of

26  posting the identities and photographs of persons convicted of

27  violating s. 817.234(9).

28         Section 6.  Subsection (14) is added to section

29  627.736, Florida Statutes, to read:

30         627.736  Required personal injury protection benefits;

31  exclusions; priority; claims.--

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 1         (14)  NOTICE WITH RESPECT TO FRAUD.--Upon receiving

 2  notice of a claim under this section, an insurer shall provide

 3  to the insured or to a person for whom a claim for

 4  reimbursement for diagnosis or treatment of injuries has been

 5  filed a notice, which shall advise that:

 6         (a)  Pursuant to s. 626.9892, the Department of

 7  Financial Services may pay rewards up to $25,000 to persons

 8  providing information leading to the arrest and conviction of

 9  persons committing crimes investigated by the Division of

10  Insurance Fraud which arise from violations of s. 440.105, s.

11  624.15, s. 626.9541, s. 626.989, or s. 817.234, and

12         (b)  Solicitation of a person injured in a motor

13  vehicle crash to be treated by a particular health care

14  provider or represented by a particular attorney could be a

15  violation of s. 817.234 or s. 817.505 or the rules regulating

16  The Florida Bar and should be immediately reported to the

17  department if unlawful or unethical conduct is suspected.

18         Section 7.  Paragraph (a) of subsection (7) and

19  subsection (9) of section 817.234, Florida Statutes, are

20  amended to read:

21         817.234  False and fraudulent insurance claims.--

22         (7)(a)  It constitutes shall constitute a material

23  omission and insurance fraud punishable as provided in

24  subsection (11) for any service physician or other provider,

25  other than a hospital, to engage in a general business

26  practice of billing amounts as its usual and customary charge,

27  if such provider has agreed with the insured patient or

28  intends to waive deductibles or copayments, or does not for

29  any other reason intend to collect the total amount of such

30  charge. With respect to a determination as to whether a

31  service physician or other provider has engaged in such

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 1  general business practice, consideration shall be given to

 2  evidence of whether the service physician or other provider

 3  made a good faith attempt to collect such deductible or

 4  copayment. This paragraph does not apply to service physicians

 5  or other providers who waive deductibles or copayments or

 6  reduce their bills as part of a bodily injury settlement or

 7  verdict.

 8         (9)  A person may not organize, plan, or knowingly

 9  participate in an intentional motor vehicle crash or a scheme

10  to create documentation of a motor vehicle crash that did not

11  occur for the purpose of making motor vehicle tort claims or

12  claims for personal injury protection benefits as required by

13  s. 627.736. Any person who violates this subsection commits a

14  felony of the second degree, punishable as provided in s.

15  775.082, s. 775.083, or s. 775.084. A person who is convicted

16  of a violation of this subsection shall be sentenced to a

17  minimum term of imprisonment of 2 years.

18         Section 8.  Section 817.2361, Florida Statutes, is

19  amended to read:

20         817.2361  False or fraudulent proof of motor vehicle

21  insurance card.--Any person who, with intent to deceive any

22  other person, creates, markets, or presents a false or

23  fraudulent proof of motor vehicle insurance card commits a

24  felony of the third degree, punishable as provided in s.

25  775.082, s. 775.083, or s. 775.084.

26         Section 9.  Subsection (2) of section 817.50, Florida

27  Statutes, is amended to read:

28         817.50  Fraudulently obtaining goods, services, etc.,

29  from a health care provider.--

30         (2)  If any person gives to any health care provider in

31  this state a false or fictitious name or a false or fictitious

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 1  address or assigns to any health care provider the proceeds of

 2  any health maintenance contract or insurance contract, then

 3  knowing that such contract is no longer in force, is invalid,

 4  or is void for any reason, such action shall be prima facie

 5  evidence of the intent of such person to defraud the health

 6  care provider. However, this subsection does not apply to

 7  investigative actions taken by law enforcement officers for

 8  law enforcement purposes in the course of their official

 9  duties.

10         Section 10.  Subsection (1) and paragraph (a) of

11  subsection (2) of section 817.505, Florida Statutes, are

12  amended to read:

13         817.505  Patient brokering prohibited; exceptions;

14  penalties.--

15         (1)  It is unlawful for any person, including any

16  health care provider or health care facility, to:

17         (a)  Offer or pay any commission, bonus, rebate,

18  kickback, or bribe, directly or indirectly, in cash or in

19  kind, or engage in any split-fee arrangement, in any form

20  whatsoever, to induce the referral of patients or patronage

21  from a health care provider or health care facility;

22         (b)  Solicit or receive any commission, bonus, rebate,

23  kickback, or bribe, directly or indirectly, in cash or in

24  kind, or engage in any split-fee arrangement, in any form

25  whatsoever, in return for referring patients or patronage to a

26  health care provider or health care facility; or

27         (c)  Solicit or receive any commission, bonus, rebate,

28  kickback, or bribe, directly or indirectly, in cash or in

29  kind, or engage in any split-fee arrangement, in any form

30  whatsoever, in return for signing a disclosure and

31  acknowledgement form or a patient log required by subsection

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 1  627.736(5) when medical treatment described in that subsection

 2  is intentionally not provided; or

 3         (d)(c)  Aid, abet, advise, or otherwise participate in

 4  the conduct prohibited under paragraph (a) or paragraph (b).

 5         (2)  For the purposes of this section, the term:

 6         (a)  "Health care provider or health care facility"

 7  means any person required to be licensed, certified, or

 8  registered under part I, part II, part III, or part IV of

 9  chapter 395, part XIII of chapter 400, chapter 457, chapter

10  458, chapter 459, chapter 460, chapter 461, chapter 462,

11  chapter 463, chapter 464, chapter 465, chapter 466, chapter

12  467, part I, part II, part III, part IV, part X, part XIII, or

13  part XIV of chapter 468, chapter 480, chapter 484, chapter

14  486, chapter 490, or chapter 491 or entity licensed,

15  certified, or registered, required to be licensed, certified,

16  or registered, or lawfully exempt from licensure,

17  certification, or registration with the Agency for Health Care

18  Administration; any person or entity that has contracted with

19  the Agency for Health Care Administration to provide goods or

20  services to Medicaid recipients as provided under s. 409.907;

21  a county health department established under part I of chapter

22  154; any community service provider contracting with the

23  Department of Children and Family Services to furnish alcohol,

24  drug abuse, or mental health services under part IV of chapter

25  394; any substance abuse service provider licensed under

26  chapter 397; or any federally supported primary care program

27  such as a migrant or community health center authorized under

28  ss. 329 and 330 of the United States Public Health Services

29  Act.

30         Section 11.  Section 843.08, Florida Statutes, is

31  amended to read:

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 1         843.08  Falsely personating officer, etc.--A person who

 2  falsely assumes or pretends to be a sheriff, officer of the

 3  Florida Highway Patrol, officer of the Fish and Wildlife

 4  Conservation Commission, officer of the Department of

 5  Environmental Protection, officer of the Department of

 6  Transportation, officer of the Department of Corrections,

 7  officer of the Department of Financial Services, correctional

 8  probation officer, deputy sheriff, state attorney or assistant

 9  state attorney, statewide prosecutor or assistant statewide

10  prosecutor, state attorney investigator, coroner, police

11  officer, lottery special agent or lottery investigator,

12  beverage enforcement agent, or watchman, or any member of the

13  Parole Commission and any administrative aide or supervisor

14  employed by the commission, or any personnel or representative

15  of the Department of Law Enforcement, and takes upon himself

16  or herself to act as such, or to require any other person to

17  aid or assist him or her in a matter pertaining to the duty of

18  any such officer, commits a felony of the third degree,

19  punishable as provided in s. 775.082, s. 775.083, or s.

20  775.084; however, a person who falsely personates any such

21  officer during the course of the commission of a felony

22  commits a felony of the second degree, punishable as provided

23  in s. 775.082, s. 775.083, or s. 775.084; except that if the

24  commission of the felony results in the death or personal

25  injury of another human being, the person commits a felony of

26  the first degree, punishable as provided in s. 775.082, s.

27  775.083, or s. 775.084.

28         Section 12.  Section 626.9893, Florida Statutes, is

29  created to read:

30         626.9893  Disposition of revenues; criminal or

31  forfeiture proceedings.--

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 1         (1)  The Division of Insurance Fraud of the department

 2  may deposit revenues received as a result of criminal

 3  proceedings or forfeiture proceedings, other than revenues

 4  deposited into the department's Federal Equitable Sharing

 5  Trust Fund under s. 17.43, into the Insurance Regulatory Trust

 6  Fund. Moneys deposited under this subsection shall be

 7  separately accounted for and used solely for the division to

 8  carry out its duties and responsibilities.

 9         (2)  Moneys deposited into the Insurance Regulatory

10  Trust Fund under this section shall be appropriated by the

11  Legislature, pursuant to chapter 216, for the sole purpose of

12  enabling the division to carry out its duties and

13  responsibilities.

14         (3)  Notwithstanding s. 216.301 and pursuant to s.

15  216.351, any balance of moneys deposited into the Insurance

16  Regulatory Trust Fund under this section remaining at the end

17  of any fiscal year shall remain in the trust fund and be

18  available for carrying out the duties and responsibilities of

19  the division.

20         Section 13.  Paragraph (n) is added to subsection (6)

21  of section 932.7055, Florida Statutes, to read:

22         932.7055  Disposition of liens and forfeited

23  property.--

24         (6)  If the seizing agency is a state agency, all

25  remaining proceeds shall be deposited into the General Revenue

26  Fund.  However, if the seizing agency is:

27         (n)  The Division of Insurance Fraud of the Department

28  of Financial Services, the proceeds accrued pursuant to the

29  Florida Contraband Forfeiture Act shall be deposited into the

30  Insurance Regulatory Trust Fund as provided in s. 626.9893 or

31  

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 1  into the Department of Financial Services' Federal Equitable

 2  Sharing Trust Fund as provided in s. 17.43, as applicable.

 3         Section 14.  If any provision of this act or its

 4  application to any person or circumstance is held invalid, the

 5  invalidity does not affect other provisions or applications of

 6  the act which can be given effect without the invalid

 7  provision or application, and to this end the provisions of

 8  this act are declared severable.

 9         Section 15.  For the 2006-2007 fiscal year, the sum of

10  $1,670,000 in recurring funds is appropriated from the

11  Insurance Regulatory Trust Fund to the Division of Insurance

12  Fraud within the Department of Financial Services, and nine

13  new positions are authorized. This appropriation is for the

14  purposes provided in s. 626.989, Florida Statutes, a new fraud

15  unit, and to provide a salary increase of approximately

16  $10,000 each for 122 existing sworn fraud law enforcement

17  officers within the division to achieve relative parity with

18  investigators who have similar responsibilities at other state

19  law enforcement agencies. The Legislature recognizes and finds

20  that, without such an increase, the division will continue to

21  have difficulty recruiting, training, and retaining qualified

22  and experienced fraud investigators.

23         Section 16.  For the 2006-2007 fiscal year, the sum of

24  $750,000 in recurring funds is appropriated from the Insurance

25  Regulatory Trust Fund in equal amounts to the State Attorneys

26  for the 4th, 6th, 9th, 13th, 15th, and 17th Circuits to

27  establish and fund an additional assistant state attorney

28  position in each circuit for the purpose of prosecuting cases

29  of insurance fraud.

30         Section 17.  Effective upon this act becoming a law,

31  section 19 of chapter 2003-411, Laws of Florida, is repealed.

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 1         Section 18.  This act shall take effect July 1, 2006.

 2  

 3            *****************************************

 4                          SENATE SUMMARY

 5    Creates the Personal Injury Protection Anti-Fraud Act,
      which prohibits specified actions with respect to
 6    fraudulently claiming injury and attempting to obtain
      unjustified insurance benefits. Provides that such
 7    offenses can result in revocation or suspension of a
      driver's license or disciplinary action against a
 8    professional licensee. Revives the Florida Motor Vehicle
      No-Fault Law, scheduled for repeal October 1, 2007. (See
 9    bill for details.)

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