CS/HB 937

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

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