Senate Bill sb1596
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Florida Senate - 2006 SB 1596
By Senator Alexander
17-917-06 See HB 561
1 A bill to be entitled
2 An act relating to offenses involving
3 insurance; amending s. 322.21, F.S.; providing
4 an additional fee for certain offenses relating
5 to insurance crimes; providing for deposit of
6 the fee into the Highway Safety Operating Trust
7 Fund; amending s. 322.26, F.S.; providing an
8 additional circumstance relating to insurance
9 crimes for mandatory revocation of a person's
10 driver's license; amending s. 400.9935, F.S.;
11 requiring health care clinics to display signs
12 containing certain information relating to
13 insurance fraud; authorizing compliance
14 inspections by the Division of Insurance Fraud;
15 requiring clinics to allow inspection access;
16 amending s. 440.105, F.S.; deleting the
17 provision that a violation of a stop-work order
18 is a misdemeanor of the first degree; amending
19 s. 456.054, F.S.; revising the definition of
20 the term "kickback" for criminal prosecution
21 purposes; amending s. 624.15, F.S.; specifying
22 violations of rules of the Department of
23 Financial Services, Office of Insurance
24 Regulation, or Financial Services Commission as
25 misdemeanors; specifying a violation of
26 emergency rules or orders as a felony of the
27 third degree; providing penalties; providing
28 for nonapplication to certain persons; amending
29 s. 626.112, F.S.; providing a criminal penalty
30 for knowingly transacting insurance without a
31 license; amending s. 626.938, F.S.; revising
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 provisions requiring a report and taxation of
2 independently procured coverages; specifying
3 nonauthorization of independent procurement of
4 workers' compensation, life, or health
5 insurance; amending s. 626.9891, F.S.;
6 expanding authorization to impose
7 administrative fines on insurers for failure to
8 comply with certain anti-fraud plan or
9 anti-fraud investigative unit description
10 requirements; creating s. 626.9893, F.S.;
11 authorizing the division to deposit certain
12 revenues into the Insurance Regulatory Trust
13 Fund; specifying accounting and uses of such
14 revenues; providing for appropriation and use
15 of such revenues; amending s. 627.736, F.S.;
16 requiring insurers to provide certain persons
17 with notice of the department's Anti-Fraud
18 Reward Program and the criminal violations that
19 may be reported in pursuit of a reward;
20 amending s. 817.234, F.S.; revising provisions
21 specifying material omission and insurance
22 fraud; prohibiting scheming to create
23 documentation of a motor vehicle crash that did
24 not occur; providing a criminal penalty;
25 amending s. 817.2361, F.S.; providing that
26 creating, marketing, or presenting fraudulent
27 proof of motor vehicle insurance is a felony of
28 the third degree; amending s. 817.50, F.S.;
29 specifying nonapplication of provisions
30 specifying evidence of intent to defraud to
31 certain investigative actions taken by law
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 enforcement officers; amending s. 817.505,
2 F.S.; providing an additional patient brokering
3 prohibition, to which penalties apply; revising
4 a definition; amending s. 843.08, F.S.;
5 providing a criminal penalty for falsely
6 assuming or pretending to be an officer of the
7 Department of Financial Services; amending s.
8 932.7055, F.S.; requiring certain proceeds
9 seized by the division under the Florida
10 Contraband Forfeiture Act to be deposited into
11 certain trust funds; providing severability;
12 providing an effective date.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Subsection (8) of section 322.21, Florida
17 Statutes, is amended to read:
18 322.21 License fees; procedure for handling and
19 collecting fees.--
20 (8) Any person who applies for reinstatement following
21 the suspension or revocation of the person's driver's license
22 shall pay a service fee of $35 following a suspension, and $60
23 following a revocation, which is in addition to the fee for a
24 license. Any person who applies for reinstatement of a
25 commercial driver's license following the disqualification of
26 the person's privilege to operate a commercial motor vehicle
27 shall pay a service fee of $60, which is in addition to the
28 fee for a license. The department shall collect all of these
29 fees at the time of reinstatement. The department shall issue
30 proper receipts for such fees and shall promptly transmit all
31 funds received by it as follows:
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 (a) Of the $35 fee received from a licensee for
2 reinstatement following a suspension, the department shall
3 deposit $15 in the General Revenue Fund and $20 in the Highway
4 Safety Operating Trust Fund.
5 (b) Of the $60 fee received from a licensee for
6 reinstatement following a revocation or disqualification, the
7 department shall deposit $35 in the General Revenue Fund and
8 $25 in the Highway Safety Operating Trust Fund.
9
10 If the revocation or suspension of the driver's license was
11 for a violation of s. 316.193, or for refusal to submit to a
12 lawful breath, blood, or urine test, an additional fee of $115
13 must be charged. However, only one $115 fee may be collected
14 from one person convicted of violations arising out of the
15 same incident. The department shall collect the $115 fee and
16 deposit the fee into the Highway Safety Operating Trust Fund
17 at the time of reinstatement of the person's driver's license,
18 but the fee may not be collected if the suspension or
19 revocation is overturned. If the revocation or suspension of
20 the driver's license was for a conviction for a violation of
21 s. 817.234(8) or (9) or s. 817.505, an additional fee of $180
22 is imposed for each offense. The department shall collect and
23 deposit the additional fee into the Highway Safety Operating
24 Trust Fund at the time of reinstatement of the person's
25 driver's license.
26 Section 2. Subsection (9) is added to section 322.26,
27 Florida Statutes, to read:
28 322.26 Mandatory revocation of license by
29 department.--The department shall forthwith revoke the license
30 or driving privilege of any person upon receiving a record of
31 such person's conviction of any of the following offenses:
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 (9) Conviction in any court having jurisdiction over
2 offenses committed under s. 817.234(8) or (9) or s. 817.505.
3 Section 3. Subsection (13) is added to section
4 400.9935, Florida Statutes, to read:
5 400.9935 Clinic responsibilities.--
6 (13) The clinic shall display a sign in a conspicuous
7 location within the clinic readily visible to all patients
8 indicating that, pursuant to s. 626.9892, the Department of
9 Financial Services may pay rewards of up to $25,000 to persons
10 providing information leading to the arrest and conviction of
11 persons committing crimes investigated by the Division of
12 Insurance Fraud arising from violations of s. 440.105, s.
13 624.15, s. 626.9541, s. 626.989, or s. 817.234. An authorized
14 employee of the Division of Insurance Fraud may make
15 unannounced inspections of a clinic licensed under this part
16 as necessary to determine whether the clinic is in compliance
17 with this subsection. A licensed clinic shall allow full and
18 complete access to the premises to such authorized employee of
19 the division who makes an inspection to determine compliance
20 with this subsection.
21 Section 4. Paragraph (a) of subsection (2) of section
22 440.105, Florida Statutes, is amended to read:
23 440.105 Prohibited activities; reports; penalties;
24 limitations.--
25 (2) Whoever violates any provision of this subsection
26 commits a misdemeanor of the first degree, punishable as
27 provided in s. 775.082 or s. 775.083.
28 (a) It shall be unlawful for any employer to
29 knowingly:
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 1. Coerce or attempt to coerce, as a precondition to
2 employment or otherwise, an employee to obtain a certificate
3 of election of exemption pursuant to s. 440.05.
4 2. Discharge or refuse to hire an employee or job
5 applicant because the employee or applicant has filed a claim
6 for benefits under this chapter.
7 3. Discharge, discipline, or take any other adverse
8 personnel action against any employee for disclosing
9 information to the department or any law enforcement agency
10 relating to any violation or suspected violation of any of the
11 provisions of this chapter or rules promulgated hereunder.
12 4. Violate a stop-work order issued by the department
13 pursuant to s. 440.107.
14 Section 5. Subsection (1) of section 456.054, Florida
15 Statutes, is amended to read:
16 456.054 Kickbacks prohibited.--
17 (1) As used in this section, the term "kickback" means
18 a remuneration or payment back pursuant to an investment
19 interest, compensation arrangement, or otherwise, by or on
20 behalf of a provider of health care services or items, of a
21 portion of the charges for services rendered to any person a
22 referring health care provider as an incentive or inducement
23 to refer patients for past or future services or items, when
24 the payment is not tax deductible as an ordinary and necessary
25 expense.
26 Section 6. Section 624.15, Florida Statutes, is
27 amended to read:
28 624.15 General penalty.--
29 (1) Each willful violation of this code or rule of the
30 department, office, or commission as to which a greater
31 penalty is not provided by another provision of this code or
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 rule of the department, office, or commission or by other
2 applicable laws of this state is a misdemeanor of the second
3 degree and is, in addition to any prescribed applicable
4 denial, suspension, or revocation of certificate of authority,
5 license, or permit, punishable as provided in s. 775.082 or s.
6 775.083. Each instance of such violation shall be considered a
7 separate offense.
8 (2) Each willful violation of an emergency rule or
9 order of the department, office, or commission by a person who
10 is not licensed, authorized, or eligible to engage in business
11 in accordance with the Florida Insurance Code is a felony of
12 the third degree, punishable as provided in s. 775.082, s.
13 775.083, or s. 775.084. Each instance of such violation is a
14 separate offense. This subsection does not apply to licensees
15 or affiliated parties of licensees.
16 Section 7. Subsection (9) is added to section 626.112,
17 Florida Statutes, to read:
18 626.112 License and appointment required; agents,
19 customer representatives, adjusters, insurance agencies,
20 service representatives, managing general agents.--
21 (9) Any person who knowingly transacts insurance or
22 otherwise engages in insurance activities in this state
23 without a license in violation of this section 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 8. Subsections (1), (2), and (9) of section
27 626.938, Florida Statutes, are amended to read:
28 626.938 Report and tax of independently procured
29 coverages.--
30 (1) Every insured who in this state procures or causes
31 to be procured or continues or renews insurance from another
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 state or country with an unauthorized foreign or alien insurer
2 legitimately licensed in that jurisdiction, or any
3 self-insurer who in this state so procures or continues excess
4 loss, catastrophe, or other insurance, upon a subject of
5 insurance resident, located, or to be performed within this
6 state, other than insurance procured through a surplus lines
7 agent pursuant to the Surplus Lines Law of this state or
8 exempted from tax under s. 626.932(4), shall, within 30 days
9 after the date such insurance was so procured, continued, or
10 renewed, file a report of the same with the Florida Surplus
11 Lines Service Office in writing and upon forms designated by
12 the Florida Surplus Lines Service Office and furnished to such
13 an insured upon request, or in a computer readable format as
14 determined by the Florida Surplus Lines Service Office. The
15 report shall show the name and address of the insured or
16 insureds, the name and address of the insurer, the subject of
17 the insurance, a general description of the coverage, the
18 amount of premium currently charged therefor, and such
19 additional pertinent information as is reasonably requested by
20 the Florida Surplus Lines Service Office.
21 (2) Any insurance on a risk located in this state in
22 an unauthorized insurer legitimately licensed in another state
23 or country procured through solicitations, negotiations, or an
24 application, in whole or in part occurring or made outside
25 within or from within this state, or for which premiums in
26 whole or in part are remitted directly or indirectly from
27 within this state, shall be deemed to be insurance procured,
28 continued, or renewed in this state within the intent of
29 subsection (1).
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 (9) This section does not authorize independent
2 procurement of workers' compensation insurance, apply as to
3 life insurance, or health insurance.
4 Section 9. Subsection (7) of section 626.9891, Florida
5 Statutes, is amended to read:
6 626.9891 Insurer anti-fraud investigative units;
7 reporting requirements; penalties for noncompliance.--
8 (7) If an insurer fails to timely submit a final
9 acceptable anti-fraud plan or anti-fraud investigative unit
10 description otherwise fails to submit a plan, fails to
11 implement the provisions of a plan or an anti-fraud
12 investigative unit description, or otherwise refuses to comply
13 with the provisions of this section, the department, office,
14 or commission may:
15 (a) Impose an administrative fine of not more than
16 $2,000 per day for such failure by an insurer to submit an
17 acceptable anti-fraud plan or anti-fraud investigative unit
18 description, until the department, office, or commission deems
19 the insurer to be in compliance;
20 (b) Impose an administrative fine for failure by an
21 upon the insurer to implement or follow the provisions of an
22 anti-fraud plan or anti-fraud investigative unit description a
23 fraud detection and prevention plan that is deemed to be
24 appropriate by the department and that must be implemented by
25 the insurer; or
26 (c) Impose the provisions of both paragraphs (a) and
27 (b).
28 Section 10. 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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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 (1) The Division of Insurance Fraud of the Department
2 of Financial Services may deposit revenues received as a
3 result of criminal proceedings or forfeiture proceedings,
4 other than revenues deposited into the Department of Financial
5 Services' Federal Equitable Sharing Trust Fund under s. 17.43,
6 into the Insurance Regulatory Trust Fund. Moneys deposited
7 pursuant to this section shall be separately accounted for and
8 shall be used solely for the division to carry out its duties
9 and responsibilities.
10 (2) Moneys deposited into the Insurance Regulatory
11 Trust Fund pursuant to this section shall be appropriated by
12 the Legislature, pursuant to the provisions of chapter 216,
13 for the sole purpose of enabling the division to carry out its
14 duties and responsibilities.
15 (3) Notwithstanding the provisions of s. 216.301 and
16 pursuant to s. 216.351, any balance of moneys deposited into
17 the Insurance Regulatory Trust Fund pursuant to this section
18 remaining at the end of any fiscal year shall remain in the
19 trust fund at the end of that year and shall be available for
20 carrying out the duties and responsibilities of the division.
21 Section 11. Subsection (14) is added to section
22 627.736, Florida Statutes, to read:
23 627.736 Required personal injury protection benefits;
24 exclusions; priority; claims.--
25 (14) FRAUD ADVISORY NOTICE.--Upon receiving notice of
26 a claim under this section, an insurer shall provide a notice
27 to the insured or to a person for whom a claim for
28 reimbursement for diagnosis or treatment of injuries has been
29 filed, advising that:
30 (a) Pursuant to s. 626.9892, the Department of
31 Financial Services may pay rewards of up to $25,000 to persons
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 providing information leading to the arrest and conviction of
2 persons committing crimes investigated by the Division of
3 Insurance Fraud arising from violations of s. 440.105, s.
4 624.15, s. 626.9541, s. 626.989, or s. 817.234.
5 (b) Solicitation of a person injured in a motor
6 vehicle crash for purposes of filing personal injury
7 protection or tort claims could be a violation of s. 817.234,
8 s. 817.505, or the rules regulating The Florida Bar and should
9 be immediately reported to the Division of Insurance Fraud if
10 such conduct has taken place.
11 Section 12. Paragraph (a) of subsection (7) and
12 subsection (9) of section 817.234, Florida Statutes, are
13 amended to read:
14 817.234 False and fraudulent insurance claims.--
15 (7)(a) It shall constitute a material omission and
16 insurance fraud, punishable as provided in subsection (11),
17 for any service physician or other provider, other than a
18 hospital, to engage in a general business practice of billing
19 amounts as its usual and customary charge, if such provider
20 has agreed with the insured patient or intends to waive
21 deductibles or copayments, or does not for any other reason
22 intend to collect the total amount of such charge. With
23 respect to a determination as to whether a service physician
24 or other provider has engaged in such general business
25 practice, consideration shall be given to evidence of whether
26 the physician or other provider made a good faith attempt to
27 collect such deductible or copayment. This paragraph does not
28 apply to physicians or other providers who waive deductibles
29 or copayments or reduce their bills as part of a bodily injury
30 settlement or verdict.
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 (9) A person may not organize, plan, or knowingly
2 participate in an intentional motor vehicle crash or a scheme
3 to create documentation of a motor vehicle crash that did not
4 occur for the purpose of making motor vehicle tort claims or
5 claims for personal injury protection benefits as required by
6 s. 627.736. Any person who violates this subsection commits a
7 felony of the second degree, punishable as provided in s.
8 775.082, s. 775.083, or s. 775.084. A person who is convicted
9 of a violation of this subsection shall be sentenced to a
10 minimum term of imprisonment of 2 years.
11 Section 13. Section 817.2361, Florida Statutes, is
12 amended to read:
13 817.2361 False or fraudulent proof of motor vehicle
14 insurance card.--Any person who, with intent to deceive any
15 other person, creates, markets, or presents a false or
16 fraudulent proof of motor vehicle insurance card commits a
17 felony of the third degree, punishable as provided in s.
18 775.082, s. 775.083, or s. 775.084.
19 Section 14. Subsection (2) of section 817.50, Florida
20 Statutes, is amended to read:
21 817.50 Fraudulently obtaining goods, services, etc.,
22 from a health care provider.--
23 (2) If any person gives to any health care provider in
24 this state a false or fictitious name or a false or fictitious
25 address or assigns to any health care provider the proceeds of
26 any health maintenance contract or insurance contract, then
27 knowing that such contract is no longer in force, is invalid,
28 or is void for any reason, such action shall be prima facie
29 evidence of the intent of such person to defraud the health
30 care provider. However, this subsection does not apply to
31 investigative actions taken by law enforcement officers for
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 law enforcement purposes in the course of their official
2 duties.
3 Section 15. Subsection (1) and paragraph (a) of
4 subsection (2) of section 817.505, Florida Statutes, are
5 amended to read:
6 817.505 Patient brokering prohibited; exceptions;
7 penalties.--
8 (1) It is unlawful for any person, including any
9 health care provider or health care facility, to:
10 (a) Offer or pay any commission, bonus, rebate,
11 kickback, or bribe, directly or indirectly, in cash or in
12 kind, or engage in any split-fee arrangement, in any form
13 whatsoever, to induce the referral of patients or patronage to
14 or from a health care provider or health care facility;
15 (b) Solicit or receive any commission, bonus, rebate,
16 kickback, or bribe, directly or indirectly, in cash or in
17 kind, or engage in any split-fee arrangement, in any form
18 whatsoever, in return for referring patients or patronage to
19 or from a health care provider or health care facility; or
20 (c) Solicit or receive any commission, bonus, rebate,
21 kickback, or bribe, directly or indirectly, in cash or in
22 kind, or engage in any split-fee arrangement, in any form
23 whatsoever, in return for the acceptance or acknowledgement of
24 treatment from a health care provider or health care facility;
25 or
26 (d)(c) Aid, abet, advise, or otherwise participate in
27 the conduct prohibited under paragraph (a), or paragraph (b),
28 or paragraph (c).
29 (2) For the purposes of this section, the term:
30 (a) "Health care provider or health care facility"
31 means any person or entity licensed, certified, or registered;
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 required to be licensed, certified, or registered; or lawfully
2 exempt from being required to be licensed, certified, or
3 registered with the Agency for Health Care Administration or
4 the Department of Health; any person or entity that has
5 contracted with the Agency for Health Care Administration to
6 provide goods or services to Medicaid recipients as provided
7 under s. 409.907; a county health department established under
8 part I of chapter 154; any community service provider
9 contracting with the Department of Children and Family
10 Services to furnish alcohol, drug abuse, or mental health
11 services under part IV of chapter 394; any substance abuse
12 service provider licensed under chapter 397; or any federally
13 supported primary care program such as a migrant or community
14 health center authorized under ss. 329 and 330 of the United
15 States Public Health Services Act.
16 Section 16. Section 843.08, Florida Statutes, is
17 amended to read:
18 843.08 Falsely personating officer, etc.--A person who
19 falsely assumes or pretends to be a sheriff, officer of the
20 Florida Highway Patrol, officer of the Fish and Wildlife
21 Conservation Commission, officer of the Department of
22 Environmental Protection, officer of the Department of
23 Transportation, officer of the Department of Financial
24 Services, officer of the Department of Corrections,
25 correctional probation officer, deputy sheriff, state attorney
26 or assistant state attorney, statewide prosecutor or assistant
27 statewide prosecutor, state attorney investigator, coroner,
28 police officer, lottery special agent or lottery investigator,
29 beverage enforcement agent, or watchman, or any member of the
30 Parole Commission and any administrative aide or supervisor
31 employed by the commission, or any personnel or representative
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Florida Senate - 2006 SB 1596
17-917-06 See HB 561
1 of the Department of Law Enforcement, and takes upon himself
2 or herself to act as such, or to require any other person to
3 aid or assist him or her in a matter pertaining to the duty of
4 any such officer, commits a felony of the third degree,
5 punishable as provided in s. 775.082, s. 775.083, or s.
6 775.084; however, a person who falsely personates any such
7 officer during the course of the commission of a felony
8 commits a felony of the second degree, punishable as provided
9 in s. 775.082, s. 775.083, or s. 775.084; except that if the
10 commission of the felony results in the death or personal
11 injury of another human being, the person commits a felony of
12 the first degree, punishable as provided in s. 775.082, s.
13 775.083, or s. 775.084.
14 Section 17. Paragraph (n) is added to subsection (6)
15 of section 932.7055, Florida Statutes, to read:
16 932.7055 Disposition of liens and forfeited
17 property.--
18 (6) If the seizing agency is a state agency, all
19 remaining proceeds shall be deposited into the General Revenue
20 Fund. However, if the seizing agency is:
21 (n) The Division of Insurance Fraud of the Department
22 of Financial Services, the proceeds accrued pursuant to the
23 provisions of the Florida Contraband Forfeiture Act shall be
24 deposited into the Insurance Regulatory Trust Fund as provided
25 in s. 626.9893 or into the Department of Financial Services'
26 Federal Equitable Sharing Trust Fund as provided in s. 17.43,
27 as applicable.
28 Section 18. If any provision of this act or the
29 application thereof to any person or circumstance is held
30 invalid, the invalidity does not affect other provisions or
31 applications of the act which can be given effect without the
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Florida Senate - 2006 SB 1596
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1 invalid provision or application, and, to this end, the
2 provisions of this act are declared severable.
3 Section 19. This act shall take effect July 1, 2006.
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