Senate Bill sb0264c2

    Florida Senate - 2007                     CS for CS for SB 264

    By the Committees on Governmental Operations; Banking and
    Insurance; and Senator Geller




    585-2419-07

  1                      A bill to be entitled

  2         An act relating to the Department of Financial

  3         Services; amending s. 20.121, F.S.; revising

  4         procedures for appointing and removing

  5         directors to the Office of Insurance Regulation

  6         and the Office of Financial Regulation within

  7         the Financial Services Commission; providing an

  8         effective date.

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

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12         Section 1.  Paragraph (d) of subsection (3) of section

13  20.121, Florida Statutes, is amended to read:

14         20.121  Department of Financial Services.--There is

15  created a Department of Financial Services.

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

17  7, 2003, there is created within the Department of Financial

18  Services the Financial Services Commission, composed of the

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

20  and the Commissioner of Agriculture, which shall for purposes

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

22  members shall serve as agency head of the Financial Services

23  Commission. The commission shall be a separate budget entity

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

25  Commission action shall be by majority vote consisting of at

26  least three affirmative votes. The commission shall not be

27  subject to control, supervision, or direction by the

28  Department of Financial Services in any manner, including

29  purchasing, transactions involving real or personal property,

30  personnel, or budgetary matters.

31         (d)  Appointment and qualifications of directors.--

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






    Florida Senate - 2007                     CS for CS for SB 264
    585-2419-07




 1         1.  The directors of the Office of Insurance Regulation

 2  and the Office of Financial Regulation must be nominated by

 3  the Chief Financial Officer, who shall forward the nominations

 4  to the other members of the commission. The commission shall

 5  act on each nomination by majority vote; however, in the event

 6  of a tie vote of the commission, the side on which the Chief

 7  Financial Officer voted prevails. The commission shall appoint

 8  or remove each director by a majority vote consisting of at

 9  least three affirmative votes, with both the Governor and the

10  Chief Financial Officer on the prevailing side. The minimum

11  qualifications of the directors are as follows:

12         a.1.  Prior to appointment as director, the Director of

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

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

15  sector experience working full time in areas within the scope

16  of the subject matter jurisdiction of the Office of Insurance

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

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

19  having regulatory responsibility over insurers or insurance

20  agencies.

21         b.2.  Prior to appointment as director, the Director of

22  the Office of Financial Regulation must have had, within the

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

24  sector experience working full time in areas within the

25  subject matter jurisdiction of the Office of Financial

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

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

28  having regulatory responsibility over financial institutions,

29  finance companies, or securities companies.

30         2.  The following governs removal of the director of

31  the Office of Insurance Regulation or of the Office of

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    Florida Senate - 2007                     CS for CS for SB 264
    585-2419-07




 1  Financial Regulation from office. The Governor or the Chief

 2  Financial Officer shall petition the commission for removal of

 3  the director. The commission shall act on the petition by

 4  majority vote; however, in the event of a tie vote of the

 5  commission, the side on which the Chief Financial Officer

 6  voted prevails.

 7         Section 2.  The act shall take effect July 1, 2007.

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 9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                            CS/SB 264

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12  Eliminates the transfer of powers delegated to the Office of
    Insurance Regulation to the Department of Financial Services.
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    Modifies the appointment process for the director of the
14  Office of Insurance Regulation. Requires the director to be
    nominated by the Chief Financial Officer and voted upon by the
15  members of the Financial Services Commission. Requires a
    majority vote of the commission to appoint the director. In
16  the event of a tie vote, provides that the side on which the
    Chief Financial Officer votes prevails.
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CODING: Words stricken are deletions; words underlined are additions.