| 1 | Representative Ambler offered the following: |
| 2 |
|
| 3 | Amendment (with title amendment) |
| 4 | Remove everything after the enacting clause and insert: |
| 5 | Section 1. (1) This act may be cited as the "Florida 2008 |
| 6 | Title Insurance Study Advisory Council Act." |
| 7 | (2) The purpose of this act is to create an advisory |
| 8 | council to undertake a comprehensive examination of the title |
| 9 | insurance delivery system of this state with the ultimate goal |
| 10 | of making recommendations for legislation to promote a sound and |
| 11 | stable system to promote the safety of real property transfers |
| 12 | in this state. |
| 13 | (3) The Florida 2008 Title Insurance Study Advisory |
| 14 | Council is created. The council shall consist of the following |
| 15 | 21 members: |
| 16 | (a) The Governor or the Governor's designee, who shall |
| 17 | serve as chair of the council. |
| 18 | (b) The Chief Financial Officer or the Chief Financial |
| 19 | Officer's designee, who shall serve as vice chair of the |
| 20 | council. |
| 21 | (c) One member of the Senate appointed by the President of |
| 22 | the Senate. |
| 23 | (d) One member of the House of Representatives appointed |
| 24 | by the Speaker of the House of Representatives. |
| 25 | (e) The Insurance Consumer Advocate appointed pursuant to |
| 26 | s. 627.0613, Florida Statutes. |
| 27 | (f) The Commissioner of Insurance Regulation or the |
| 28 | commissioner's designee. |
| 29 | (g) The Commissioner of the Office of Financial Regulation |
| 30 | or the commissioner's designee. |
| 31 | (h) Three representatives of title insurers doing business |
| 32 | in the state from three different title insurers, appointed by |
| 33 | the President of the Senate. No more than one representative may |
| 34 | be named from each affiliated group of corporations as defined |
| 35 | in s. 624.509(5)(a)2., Florida Statutes. Such appointments may |
| 36 | not overlap with those insurer appointments made under paragraph |
| 37 | (i). |
| 38 | (i) Four representatives of title insurers doing business |
| 39 | in the state from four different title insurers, appointed by |
| 40 | the Speaker of the House of Representatives. No more than one |
| 41 | representative may be named from each affiliated group of |
| 42 | corporations as defined in s. 624.509(5)(a)2., Florida Statutes. |
| 43 | Such appointments may not overlap with those insurer |
| 44 | appointments made under paragraph (h). |
| 45 | (j) Two independent licensed title insurance agents |
| 46 | appointed by the President of the Senate from a list of three |
| 47 | agents submitted by the Florida Land Title Association. |
| 48 | (k) One independent licensed title insurance agent |
| 49 | appointed by the Speaker of the House of Representatives from a |
| 50 | list of three agents submitted by the Florida Land Title |
| 51 | Association. |
| 52 | (l) Two members of the Real Property, Probate and Trust |
| 53 | Law Section of The Florida Bar who are practicing real estate |
| 54 | attorneys not employed by a title insurer. The designation of |
| 55 | such members shall be made by the Real Property, Probate and |
| 56 | Trust Law Section of The Florida Bar. |
| 57 | (m) One member of the banking industry from a bank |
| 58 | performing home and commercial mortgage lending, appointed by |
| 59 | the Commissioner of Financial Regulation. |
| 60 | (n) One member of the real estate industry, either an |
| 61 | independent realtor or one representing a company handling home |
| 62 | and commercial real estate transactions, including closings, |
| 63 | appointed by the Chief Financial Officer. |
| 64 | (4) The council shall be administratively supported by the |
| 65 | staff of the Executive Office of the Governor. The Department of |
| 66 | Financial Services, the Office of Insurance Regulation, and |
| 67 | other agencies of the state, as well as staff of the applicable |
| 68 | legislative committees, shall supply any information, |
| 69 | assistance, and facilities that are deemed necessary by the |
| 70 | council to carry out its duties. |
| 71 | (5) The council shall undertake a comprehensive |
| 72 | examination of the title insurance delivery system in this state |
| 73 | and shall include in its study consideration of: |
| 74 | (a) The historical development of the title insurance |
| 75 | industry in this state and its uniqueness among other lines of |
| 76 | insurance. |
| 77 | (b) The current regulatory structure under which oversight |
| 78 | responsibility is shared among different state agencies. |
| 79 | (c) The adequacy of funds and agency personnel to exercise |
| 80 | regulatory oversight. |
| 81 | (d) The adequacy of current mechanisms and expertise to |
| 82 | gather meaningful data to properly evaluate and adopt title |
| 83 | insurance rates. |
| 84 | (e) Such other topics as the chair, in consultation with |
| 85 | the council, deems necessary to conduct a thorough examination |
| 86 | of the title insurance industry. |
| 87 | (6) The council, at the direction of the chair, may invite |
| 88 | independent actuaries who have expertise in title insurance to |
| 89 | provide information and appear before the council to aid in |
| 90 | performing its duties. In order to assist the council, the |
| 91 | Office of Program Policy Analysis and Government Accountability |
| 92 | shall conduct an independent review of the historical |
| 93 | development of the title insurance industry in this state and |
| 94 | the current fragmented regulatory framework and shall report its |
| 95 | findings to the council. Such report shall be submitted to the |
| 96 | council by September 30, 2008. |
| 97 | (7) The council shall hold its initial meeting no later |
| 98 | than August 1, 2008, in Tallahassee. Staff for the council chair |
| 99 | shall schedule and organize the initial meeting. Subsequent |
| 100 | meetings of the council must be held in Tallahassee according to |
| 101 | a schedule developed by the chair. |
| 102 | (8) The council shall submit a final report, setting forth |
| 103 | findings and specific legislative recommendations, to the |
| 104 | Governor, the President of the Senate, and the Speaker of the |
| 105 | House of Representatives on or before December 31, 2009. The |
| 106 | council's final report shall be approved by at least two-thirds |
| 107 | of the council's membership and the chair must be in the |
| 108 | prevailing majority. The council shall terminate after |
| 109 | submitting its final report but not later than December 31, |
| 110 | 2009. |
| 111 | Section 2. The sum of $242,003 in nonrecurring funds is |
| 112 | appropriated from the Insurance Regulatory Trust Fund in the |
| 113 | Department of Financial Services for transfer to the Executive |
| 114 | Office of the Governor for the 2008-2009 fiscal year for the |
| 115 | purpose of implementing the Florida 2008 Title Insurance Study |
| 116 | Advisory Council. |
| 117 | Section 3. The sum of $242,003 is appropriated from the |
| 118 | Grants and Donations Trust Fund in the Executive Office of the |
| 119 | Governor for the 2008-2009 fiscal year, and two full-time |
| 120 | equivalent positions are authorized for the duration of the |
| 121 | Florida 2008 Title Insurance Study Advisory Council. |
| 122 | Section 4. This act shall take effect upon becoming a law. |
| 123 |
|
| 124 | ----------------------------------------------------- |
| 125 | T I T L E A M E N D M E N T |
| 126 | Remove the entire title and insert: |
| 127 | A bill to be entitled |
| 128 | An act relating to title insurance; creating the Florida |
| 129 | 2008 Title Insurance Study Advisory Council; providing for |
| 130 | membership; providing for administrative support for the |
| 131 | council; providing responsibilities of the council; |
| 132 | authorizing the council to invite independent actuaries to |
| 133 | provide certain information; requiring the Office of |
| 134 | Program Policy Analysis and Government Accountability to |
| 135 | conduct a review and report to the council; requiring that |
| 136 | the report be submitted to the council by a certain date; |
| 137 | providing council meeting requirements; requiring the |
| 138 | council to file a report with the Governor and the |
| 139 | Legislature; providing for termination of the council; |
| 140 | providing appropriations and authorizing additional |
| 141 | positions; providing an effective date. |
| 142 |
|
| 143 | WHEREAS, the Legislature finds that a stable and efficient |
| 144 | title insurance delivery system is necessary to promote the |
| 145 | economic well-being of the residents of Florida, and |
| 146 | WHEREAS, Florida consumers have a right to effective and |
| 147 | affordable title insurance, and |
| 148 | WHEREAS, title insurance is essential to ensure homeowners |
| 149 | and landowners of the safety of real estate transfers in |
| 150 | Florida, and |
| 151 | WHEREAS, investors and lienholders require the security |
| 152 | accorded their business interests by a financially stable and |
| 153 | regulated title insurance industry, and |
| 154 | WHEREAS, a viable title insurance delivery system requires |
| 155 | efficient and comprehensive state oversight to regulate insurer |
| 156 | and agent solvency, education, licensing, and discipline and the |
| 157 | establishment of nondiscriminatory title insurance rates and |
| 158 | forms, and |
| 159 | WHEREAS, it is the express intent of the Legislature to |
| 160 | conduct a comprehensive review of the title insurance industry, |
| 161 | the current regulatory scheme, and the rules affecting the |
| 162 | conduct of the industry, NOW, THEREFORE, |