Proposed Committee Substitute by the Committee on General

Government Appropriations

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A bill to be entitled

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An act relating to financial services; creating s.

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17.0315, F.S.; establishing a task force to develop a

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successor financial and cash management system; requiring

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the Chief Financial Officer to appoint members to and head

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such task force; requiring that the directors of the

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Agency for Enterprise Information Technology and the

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Office of Policy and Budget in the Executive Office of the

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Governor participate as members of the task force;

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providing a purpose; requiring members to consult with the

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administrative services directors, finance and accounting

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offices, and budget directors of all branches of state

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government; requiring the task force to submit a report

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and draft legislation to the Governor and the Legislature

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by a certain date; requiring that certain information be

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included in such report; amending s. 20.121, F.S.;

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establishing the Strategic Markets Research and Assessment

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Unit within the Office of Financial Regulation; requiring

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that the unit periodically report to the Financial

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Services Commission and the Legislature; specifying the

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information be included in such report; amending s.

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517.315, F.S.; requiring the Office of Financial

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Regulation of the Financial Services Commission to

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transfer the entire registration assessment fee paid by

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associated persons and a certain percentage of the

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assessment fee paid by dealers and investment advisors to

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the Regulatory Trust Fund; amending ss. 626.932 and

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626.938, F.S.; revising the required percentages of funds

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collected pursuant to certain taxes on surplus lines

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premiums and related interest that must be deposited into

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the Insurance Regulatory Trust Fund and the General

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Revenue Fund; providing an effective date.

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

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     Section 1.  Section 17.0315, Florida Statutes, is created to

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read:

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     17.0315 Financial and cash management system; task force.--

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     (1) The Chief Financial Officer shall be the head of and

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appoint members to a task force that shall include the executive

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director of the Agency for Enterprise Information Technology and

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the director of the Office of Policy and Budget in the Executive

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Office of the Governor. The task force is established to develop

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a successor financial and cash management system that:

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     (a) Promotes transparency in the accounting of public

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funds;

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     (b) Provides timely and accurate transactional processes by

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agencies and their professional staffs;

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     (c) Interfaces with other systems providing human

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resources, procurement of goods and services, and other

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enterprise functions;

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     (d) Interfaces with the existing legislative

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appropriations, planning, and budgeting systems;

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     (e) Permits proper disbursement and auditing controls

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consistent with the respective constitutional duties of the Chief

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Financial Officer and the Legislature;

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     (f) Supports executive reporting and data analysis

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requirements; and

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     (g) Follows the information technology strategy developed

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by the Agency for Enterprise Information Technology.

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     (2) Members appointed to the task force, or their designee,

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shall consult with state agency administrative services

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directors, finance and accounting offices, and budget directors

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of all branches of Florida government. The task force shall

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submit to the Governor, the President of the Senate, and the

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Speaker of the House of Representatives a report that:

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     (a) Identifies problems and opportunities posed by current

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law and the current administration with existing state accounting

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systems;

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     (b) Provides developmental solutions to known failures

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identified by external review and audit reports;

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     (c) Recommends business processes and requirements to

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support a standardized statewide accounting system;

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     (d) Identifies revised rulemaking procedures needed to

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ensure the operational and security integrity of any successor

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system;

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     (e) Evaluates different funding approaches to equitably

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distribute common accounting infrastructure costs across all

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participating users; and

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     (f) Provides an executable, enterprise-wide work product

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that can be used as the basis for a revised competitive

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procurement for the implementation of a successor system.

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The Chief Financial Officer shall submit the initial report,

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along with draft legislation recommended to implement a

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standardized statewide financial and cash management system, by

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January 1, 2009.

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     Section 2.  Paragraph (a) of subsection (3) of section

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20.121, Florida Statutes, is amended to read:

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     20.121  Department of Financial Services.--There is created

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a Department of Financial Services.

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     (3)  FINANCIAL SERVICES COMMISSION.--Effective January 7,

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2003, there is created within the Department of Financial

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Services the Financial Services Commission, composed of the

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

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the Commissioner of Agriculture, which shall for purposes of this

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section be referred to as the commission. Commission members

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shall serve as agency head of the Financial Services Commission.

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The commission shall be a separate budget entity and shall be

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exempt from the provisions of s. 20.052. Commission action shall

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be by majority vote consisting of at least three affirmative

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votes. The commission shall not be subject to control,

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supervision, or direction by the Department of Financial Services

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in any manner, including purchasing, transactions involving real

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or personal property, personnel, or budgetary matters.

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     (a)  Structure.--The major structural unit of the commission

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is the office. Each office shall be headed by a director. The

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following offices are established:

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     1.  The Office of Insurance Regulation, which shall be

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responsible for all activities concerning insurers and other risk

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bearing entities, including licensing, rates, policy forms,

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market conduct, claims, issuance of certificates of authority,

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solvency, viatical settlements, premium financing, and

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administrative supervision, as provided under the insurance code

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or chapter 636. The head of the Office of Insurance Regulation is

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the Director of the Office of Insurance Regulation, who may also

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be known as the Commissioner of Insurance Regulation.

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     2.a. The Office of Financial Regulation, which shall be

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responsible for all activities of the Financial Services

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Commission relating to the regulation of banks, credit unions,

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other financial institutions, finance companies, and the

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securities industry. The head of the office is the Director of

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the Office of Financial Regulation, who may also be known as the

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Commissioner of Financial Regulation. The Office of Financial

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Regulation shall include a Bureau of Financial Investigations,

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which shall function as a criminal justice agency for purposes of

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ss. 943.045-943.08 and shall have a separate budget. The bureau

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may conduct investigations within or outside this state as the

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bureau deems necessary to aid in the enforcement of this section.

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If, during an investigation, the office has reason to believe

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that any criminal law of this state has or may have been

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violated, the office shall refer any records tending to show such

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violation to state or federal law enforcement or prosecutorial

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agencies and shall provide investigative assistance to those

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agencies as required.

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     b. The Strategic Markets Research and Assessment Unit is

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established within the Office of Financial Regulation. The unit

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shall report on September 1, 2008, and quarterly thereafter, to

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the Financial Services Commission, the President of the Senate,

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and the Speaker of the House of Representatives on the status of

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Florida's financial services markets. At a minimum, the report

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must include a summary of key national and international economic

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issues, trends, and threats that broadly impact the condition of

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the financial services industries, along with the effect of such

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conditions on financial institutions, the securities industries,

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other financial entities, the credit market, and the economic

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status of the residents and businesses of Florida. In order to

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ensure adequate protection for the economic well-being of the

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residents and businesses of Florida, the unit shall also submit

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to the commission, the President of the Senate, and the Speaker

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of the House of Representatives its findings and recommendations

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regarding regulatory and policy changes.

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     Section 3.  Section 517.315, Florida Statutes, is amended to

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read:

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     517.315  Fees.--All fees of any nature collected by the

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office pursuant to this chapter shall be disbursed as follows:

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     (1)  The office shall transfer the amount of fees required

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to be deposited into the Securities Guaranty Fund pursuant to s.

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517.131;

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     (2)  After the transfer required in subsection (1), the

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office shall transfer $20 of the $50 assessment fee collected

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from each associated person under s. 517.12(10) and (11) and

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30.44 percent of the $100 assessment fee paid by dealers and

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investment advisors for each office in the state under s.

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517.12(10) and (11) to the Regulatory Trust Fund; and

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     (3)  All remaining fees shall be deposited into the General

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Revenue Fund.

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     Section 4.  Subsection (5) of section 626.932, Florida

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Statutes, is amended to read:

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     626.932  Surplus lines tax.--

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     (5) The department shall deposit 19.02 24.3 percent of all

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taxes collected under this section to the credit of the Insurance

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Regulatory Trust Fund. Eighty and ninety-eight hundredths

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Seventy-five and seven-tenths percent of all taxes collected

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under this section shall be deposited into the General Revenue

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Fund.

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     Section 5.  Subsection (7) of section 626.938, Florida

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Statutes, is amended to read:

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     626.938  Report and tax of independently procured

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coverages.--

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     (7) The department shall deposit 19.02 24.3 percent of all

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taxes and interest collected under this section to the credit of

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the Insurance Regulatory Trust Fund. Eighty and ninety-eight

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hundredths Seventy-five and seven-tenths percent of all taxes and

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interest collected under this section shall be deposited into the

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General Revenue Fund.

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     Section 6.  This act shall take effect July 1, 2008.