Proposed Committee Substitute by the Committee on Governmental

Operations

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A bill to be entitled

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An act relating to title insurance; creating the Florida

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2008 Title Insurance Study Advisory Council; providing for

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membership; providing for administrative support for the

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council; providing responsibilities of the council;

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authorizing the council to invite independent actuaries to

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provide certain information; requiring the Office of

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Program Policy Analysis and Government Accountability to

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conduct a review and report to the council; providing

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council meeting requirements; requiring the council to

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file a report with the Governor and the Legislature;

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providing for termination of the council; providing an

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effective date.

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     WHEREAS, the Legislature finds that a stable and efficient

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title insurance delivery system is necessary to promote the

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economic well-being of the residents of Florida, and

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     WHEREAS, Florida consumers have a right to effective and

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affordable title insurance, and

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     WHEREAS, title insurance is essential to ensure homeowners

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and landowners of the safety of real estate transfers in Florida,

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and

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     WHEREAS, investors and lienholders require the security

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accorded their business interests by a financially stable and

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regulated title insurance industry, and

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     WHEREAS, a viable title insurance delivery system requires

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efficient and comprehensive state oversight to regulate insurer

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and agent solvency, education, licensing, and discipline and the

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establishment of nondiscriminatory title insurance rates and

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forms, and

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     WHEREAS, it is the express intent of the Legislature to

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conduct a comprehensive review of the title insurance industry,

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the current regulatory scheme, and the rules affecting the

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conduct of the industry, NOW, THEREFORE,

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

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     Section 1. (1) This act may be cited as the "Florida 2008

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Title Insurance Study Advisory Council Act."

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     (2) The purpose of this act is to create an advisory

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council to undertake a comprehensive examination of the title

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insurance delivery system of this state with the ultimate goal of

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making recommendations for legislation to promote a sound and

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stable system to promote the safety of real property transfers in

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this state.

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     (3) The Florida 2008 Title Insurance Study Advisory Council

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is created. The council shall consist of the following 19

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members:

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     (a) The Governor or the Governor's designee, who shall

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serve as chair of the council.

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     (b) The Chief Financial Officer or the Chief Financial

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Officer's designee, who shall serve as vice chair of the council.

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     (c) One member of the Senate appointed by the President of

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the Senate.

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     (d) One member of the House of Representatives appointed by

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the Speaker of the House of Representatives.

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     (e) The Insurance Consumer Advocate appointed pursuant to

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s. 627.0613, Florida Statutes.

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     (f) The Commissioner of Insurance Regulation or the

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commissioner's designee.

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     (g) The Secretary of Business and Professional Regulation

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or the secretary's designee.

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     (h) Three representatives of title insurers doing business

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in the state from four different title insurers, appointed by the

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President of the Senate. No more than one representative may be

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named from each affiliated group of corporations as defined in s.

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624.509(5)(a)2., Florida Statutes. Such appointments may not

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overlap with those insurer appointments made under paragraph (i).

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     (i) Four representatives of title insurers doing business

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in the state from four different title insurers, appointed by the

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Speaker of the House of Representatives. No more than one

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representative may be named from each affiliated group of

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corporations as defined in s. 624.509(5)(a)2., Florida Statutes.

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Such appointments may not overlap with those insurer appointments

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made under paragraph (h).

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     (j) Two independent licensed title insurance agents

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appointed by the President of the Senate from a list of three

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agents submitted by the Florida Land Title Association.

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     (k) One independent licensed title insurance agent

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appointed by the Speaker of the House of Representatives from a

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list of three agents submitted by the Florida Land Title

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Association.

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     (l) Two members of the Real Property, Probate and Trust Law

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Section of The Florida Bar who are practicing real estate

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attorneys not employed by a title insurer. The designation of

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such members shall be made by the Real Property, Probate and

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Trust Law Section of The Florida Bar.

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     (4) The council shall be administratively supported by the

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staff of the Executive Office of the Governor. The Department of

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Financial Services, the Office of Insurance Regulation, and other

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agencies of the state, as well as staff of the applicable

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legislative committees, shall supply any information, assistance,

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and facilities that are deemed necessary by the council to carry

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out its duties.

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     (5) The council shall undertake a comprehensive examination

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of the title insurance delivery system in this state and shall

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include in its study consideration of:

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     (a) The historical development of the title insurance

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industry in this state and its uniqueness among other lines of

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insurance.

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     (b) The current regulatory structure under which oversight

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responsibility is shared among different state agencies.

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     (c) The adequacy of funds and agency personnel to exercise

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regulatory oversight.

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     (d) The adequacy of current mechanisms and expertise to

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gather meaningful data to properly evaluate and adopt title

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insurance rates.

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     (e) Such other topics as the council deems necessary to

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conduct a thorough examination of the title insurance industry.

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     (6) The council, at the direction of the chair, may invite

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independent actuaries who have expertise in title insurance to

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provide information and appear before the council to aid in

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performing its duties. In order to assist the council, the Office

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of Program Policy Analysis and Government Accountability shall

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conduct an independent review of the historical development of

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the title insurance industry in this state and the current

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fragmented regulatory framework and shall report its findings to

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the council.

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     (7) The council shall hold its initial meeting no later

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than August 1, 2008, in Tallahassee. Staff for the council chair

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shall schedule and organize the initial meeting. Subsequent

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meetings of the council must be held in Tallahassee according to

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a schedule developed by the chair.

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     (8) The council shall submit a final report, setting forth

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findings and specific legislative recommendations, to the

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Governor, the President of the Senate, and the Speaker of the

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House of Representatives on or before December 31, 2009. The

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council shall terminate after submitting its final report but not

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later than December 31, 2009.

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     Section 2.  This act shall take effect July 1, 2008.