Florida Senate - 2011                                    SB 1468
       
       
       
       By Senator Altman
       
       
       
       
       24-00694-11                                           20111468__
    1                        A bill to be entitled                      
    2         An act relating to title insurance; amending s.
    3         20.121, F.S.; assigning the Division of Title
    4         Insurance to the Department of Financial Services;
    5         providing legislative findings and intent; deeming
    6         that references in the Florida Insurance Code
    7         pertaining to title insurance refer to the Division of
    8         Title Insurance; amending s. 626.2815, F.S.; requiring
    9         any person who holds a license as a title agent to
   10         complete a minimum of 10 hours of continuing education
   11         courses every 2 years in Florida-specific title
   12         insurance and escrow management courses approved by
   13         the Division of Title Insurance; authorizing the
   14         department to contract with private entities to
   15         administer, review, or approve the continuing
   16         education program for title insurance; amending s.
   17         626.841, F.S.; defining the term “agent in charge”;
   18         amending s. 626.8417, F.S.; revising provisions to
   19         conform to changes made by the act; amending s.
   20         626.8418, F.S.; removing obsolete provisions relating
   21         to applying for a title insurance license; amending s.
   22         626.8419, F.S.; requiring the title insurance agency
   23         to obtain a fidelity bond in an amount not less than
   24         $250,000, with a deductible not to exceed 1 percent of
   25         the bond amount; creating s. 626.8422, F.S.; requiring
   26         each title insurance agency to have a separate agent
   27         in charge at every agency location; requiring that an
   28         agent in charge be an attorney licensed by and in good
   29         standing with The Florida Bar or a Florida-licensed
   30         title agent; amending s. 626.8437, F.S.; adding
   31         additional grounds for which the department must deny,
   32         suspend, revoke, or refuse to renew or continue the
   33         license or appointment of any title insurance agent or
   34         agency; amending s. 626.8473, F.S.; requiring an
   35         attorney to deposit into a separate trust account all
   36         funds received in connection with transactions in
   37         which the attorney is serving as a title or real
   38         estate settlement agent; requiring that the trust
   39         account be maintained exclusively for funds received
   40         in connection with such transactions; providing an
   41         exception for an applicable rule of The Florida Bar;
   42         creating s. 627.7715, F.S.; creating the Division of
   43         Title Insurance within the Department of Financial
   44         Services; requiring that the division exercise all
   45         powers and duties with respect to title insurance
   46         regulation, including those exercised by the Office of
   47         Insurance Regulation and the Division of Insurance
   48         Agents and Agency Services; providing for the division
   49         director to be appointed by the Chief Financial
   50         Officer; providing for bureaus within the division;
   51         amending s. 627.777, F.S.; providing for the approval
   52         and revocation of title insurance forms; creating s.
   53         627.7815, F.S.; providing that trade secrets be
   54         preserved; providing for the filing of a trade secret
   55         notice with the department; providing a waiver of
   56         trade secret protection under certain circumstances;
   57         providing procedures to be followed to claim a trade
   58         secret; detailing the form and content of the notice
   59         for a trade secret; providing a presumption of trade
   60         secret protection under certain circumstances;
   61         creating s. 627.7985, F.S.; authorizing the Department
   62         of Financial Services to adopt rules relating to title
   63         insurance; amending s. 627.780, F.S.; revising
   64         provisions to conform to changes made by the act;
   65         amending s. 627.782, F.S.; requiring each title
   66         insurance agency licensed to do business in this state
   67         and each insurer doing direct, retail, or affiliated
   68         business to maintain and submit certain information to
   69         the department as the department determines to be
   70         necessary to assist in the analysis of title insurance
   71         premium rates, title search costs, and the condition
   72         of the title insurance industry in this state;
   73         creating s. 689.263, F.S.; prohibiting a title
   74         insurance agent or title insurance agency from
   75         disbursing funds pursuant to a completed purchase and
   76         sale transaction subject to the Real Estate Settlement
   77         Procedures Act without requiring a properly executed
   78         statement of settlement cost; providing that by a
   79         specified date the rules of the Financial Services
   80         Commission and the Office of Insurance Regulation with
   81         respect to the regulation of title insurance become
   82         the rules of the Department of Financial Services;
   83         providing that the statutory powers, duties, and
   84         functions for the administration of chs. 624, 626, and
   85         627, F.S., relating to title insurance, are
   86         transferred by a type two transfer, from the Financial
   87         Services Commission and the Office of Insurance
   88         Regulation to the Department of Financial Services;
   89         providing that the transfer of regulatory authority
   90         accomplished by this act shall not affect the validity
   91         of any pending judicial or administrative action
   92         relating to title insurance, to which action the
   93         Financial Services Commission or the Office of
   94         Insurance Regulation are parties; providing that all
   95         lawful orders issued by the Financial Services
   96         Commission or the Office of Insurance Regulation
   97         implementing or enforcing or otherwise relating to
   98         title insurance issued before the effective date of
   99         the act, remain in effect and are enforceable after
  100         the effective date of the act, unless thereafter
  101         modified in accordance with law; directing the
  102         Division of Statutory Revision to provide the relevant
  103         substantive committees of the Senate and the House of
  104         Representatives with assistance to enable the
  105         committees to prepare draft legislation to conform the
  106         Florida Statutes to the provisions of the act;
  107         directing the Division of Title Insurance to work with
  108         affected parties and to make recommendations to the
  109         Legislature relating to consolidation of all of title
  110         insurance governance into a single chapter of Florida
  111         Statutes, the possible implementation of other
  112         recommendations of the Title Insurance Study Advisory
  113         Council, and other suggestions for improvement of the
  114         statutory regulation of the title insurance industry;
  115         providing an effective date.
  116  
  117  Be It Enacted by the Legislature of the State of Florida:
  118  
  119         Section 1. Paragraph (p) is added to subsection (2) of
  120  section 20.121, Florida Statutes, to read:
  121         20.121 Department of Financial Services.—There is created a
  122  Department of Financial Services.
  123         (2) DIVISIONS.—The Department of Financial Services shall
  124  consist of the following divisions:
  125         (p) The Division of Title Insurance.
  126         Section 2. Legislative findings; purpose; intent.—
  127         (1) The Legislature finds that a stable real estate
  128  marketplace is central to the economic foundations of this state
  129  and that the certainties of real property ownership, transfer,
  130  and encumbrance must be preserved for the public welfare. These
  131  fundamental facts support the regulation of the title insurance
  132  industry.
  133         (2)The Legislature finds that a stable and efficient title
  134  insurance industry is necessary for the confidence required by
  135  all purchasers of real property, their lenders, and their
  136  investors in that it improves property valuations, lowers
  137  borrowing costs, and generally supports the flow of real estate
  138  based capital investment.
  139         (3)The Legislature further finds that it is sound public
  140  policy to encourage and support the delivery of title insurance
  141  products and services statewide. The Legislature recognizes that
  142  this can best be achieved by assuring a solvent industry that is
  143  responsive as well as responsible to all consumers and for the
  144  protection of the public land records. Central to this finding
  145  is the fact that the general public welfare is better served by
  146  delivering fiscally sound legal remedies founded in contract law
  147  rather than the mere possibility of relief in tort remedies.
  148         (4)The Legislature, in recognition of the fact that a
  149  title issuer may deliver primary title services directly to or
  150  through a licensed and appointed agent or agency, finds that a
  151  viable title insurance delivery system requires comprehensive
  152  state oversight and uniform regulation of title insurers,
  153  agents, and agencies. Accordingly, it is the intent of the
  154  Legislature to establish unitary regulation of the title
  155  insurance industry by transferring the agency from the Financial
  156  Services Commission and the Office of Insurance Regulation to
  157  the Department of Financial Services. The department has
  158  comprehensive authority to regulate title insurers, title
  159  agents, title agency solvency, education, licensing, and
  160  discipline and to establish title insurance premium rates and
  161  forms.
  162         (5)The Legislature recognizes that the title insurance
  163  industry is founded upon a unique compensatory structure
  164  comprised of unregulated fees for the necessarily related escrow
  165  and closing services and the regulated premium promulgated for
  166  the performance of the primary title services. The delivery of
  167  these separate but related functions is predominated by title
  168  agents and agencies, thereby placing the title insurance agent
  169  at the cornerstone of the delivery system. Maintaining a
  170  sufficient base of title insurance agents promotes price
  171  competition in the marketplace for escrow and settlement
  172  services and the ready availability of these products and
  173  services to all residents.
  174         Section 3. References to commission, department, and
  175  office.—Whenever the Florida Insurance Code refers to title
  176  insurance or the regulation of title insurers, title agents, or
  177  title agencies, such reference is deemed to refer to the
  178  Division of Title Insurance of the Department of Financial
  179  Services.
  180         Section 4. Paragraph (d) of subsection (3) of section
  181  626.2815, Florida Statutes, is amended, paragraph (l) is added
  182  to that subsection, and subsection (8) is added to that section,
  183  to read:
  184         626.2815 Continuing education required; application;
  185  exceptions; requirements; penalties.—
  186         (3)
  187         (d) Any person who holds a license as a customer
  188  representative, limited customer representative, title agent,
  189  motor vehicle physical damage and mechanical breakdown insurance
  190  agent, crop or hail and multiple-peril crop insurance agent, or
  191  as an industrial fire insurance or burglary insurance agent and
  192  who is not a licensed life or health insurance agent, shall be
  193  required to complete 10 hours of continuing education courses
  194  every 2 years.
  195         (l) Any person who holds a license as a title agent must
  196  complete a minimum of 10 hours of continuing education courses
  197  every 2 years in Florida-specific title insurance and escrow
  198  management courses approved by the Division of Title Insurance.
  199  The continuing education courses shall include at least 3 hours
  200  of continuing education on the subject matter of ethics, rules,
  201  or state and federal regulatory compliance matters relating to
  202  title insurance and closing services.
  203         (8) The department may contract with a private entity for
  204  services relating to the administration, review, or approval of
  205  the continuing education program for title insurance. The
  206  contract shall be procured as a contract for a contractual
  207  service pursuant to s. 287.057.
  208         Section 5. Subsection (3) is added to section 626.841,
  209  Florida Statutes, to read:
  210         626.841 Definitions.—The term:
  211         (3) “Agent in charge” of a title insurance agency means an
  212  attorney or a licensed and appointed title insurance agent who
  213  is designated as agent in charge pursuant to s. 626.8422.
  214         Section 6. Paragraph (c) of subsection (4) of section
  215  626.8417, Florida Statutes, is amended to read:
  216         626.8417 Title insurance agent licensure; exemptions.—
  217         (4)
  218         (c) If one or more an attorney or attorneys own a
  219  corporation or other legal entity that which is doing business
  220  as a title insurance agency other than an entity engaged in the
  221  active practice of law, the agency must be licensed and
  222  appointed as a title insurance agency with an agent in charge
  223  designated for the agency agent.
  224         Section 7. Section 626.8418, Florida Statutes, is amended
  225  to read:
  226         626.8418 Application for title insurance agency license.
  227  Before Prior to doing business in this state as a title
  228  insurance agency, a title insurance agency must meet all of the
  229  criteria set forth in this section. following requirements:
  230         (1) The applicant must file with the department an
  231  application for a license as a title insurance agency, on
  232  printed forms furnished by the department, that includes all of
  233  the following:
  234         (1)(a) The name of each majority owner, partner, officer,
  235  and director of the agency.
  236         (2)(b) The residence address of each person required to be
  237  listed under subsection (1) paragraph (a).
  238         (3)(c) The name of the agency and its principal business
  239  address.
  240         (4)(d) The location of each agency office and the name
  241  under which each agency office conducts or will conduct
  242  business.
  243         (5)(e) The name of each agent to be in full-time charge of
  244  an agency office and specification of which office.
  245         (6)(f) Such additional information as the department
  246  requires by rule to ascertain the trustworthiness and competence
  247  of persons required to be listed on the application and to
  248  ascertain that such persons meet the requirements of this code.
  249         (2) The applicant must have deposited with the department
  250  securities of the type eligible for deposit under s. 625.52 and
  251  having at all times a market value of not less than $35,000. In
  252  place of such deposit, the title insurance agency may post a
  253  surety bond of like amount payable to the department for the
  254  benefit of any appointing insurer damaged by a violation by the
  255  title insurance agency of its contract with the appointing
  256  insurer. If a properly documented claim is timely filed with the
  257  department by a damaged title insurer, the department may remit
  258  an appropriate amount of the deposit or the proceeds that are
  259  received from the surety in payment of the claim. The required
  260  deposit or bond must be made by the title insurance agency, and
  261  a title insurer may not provide the deposit or bond directly or
  262  indirectly on behalf of the title insurance agency. The deposit
  263  or bond must secure the performance by the title insurance
  264  agency of its duties and responsibilities under the issuing
  265  agency contracts with each title insurer for which it is
  266  appointed. The agency may exchange or substitute other
  267  securities of like quality and value for securities on deposit,
  268  may receive the interest and other income accruing on such
  269  securities, and may inspect the deposit at all reasonable times.
  270  Such deposit or bond must remain unimpaired as long as the title
  271  insurance agency continues in business in this state and until 1
  272  year after termination of all title insurance agency
  273  appointments held by the title insurance agency. The title
  274  insurance agency is entitled to the return of the deposit or
  275  bond together with accrued interest after such year has passed,
  276  if no claim has been made against the deposit or bond. If a
  277  surety bond is unavailable generally, the department may adopt
  278  rules for alternative methods to comply with this subsection.
  279  With respect to such alternative methods for compliance, the
  280  department must be guided by the past business performance and
  281  good reputation and character of the proposed title insurance
  282  agency. A surety bond is deemed to be unavailable generally if
  283  the prevailing annual premium exceeds 25 percent of the
  284  principal amount of the bond.
  285         Section 8. Paragraph (a) of subsection (1) of section
  286  626.8419, Florida Statutes, is amended to read:
  287         626.8419 Appointment of title insurance agency.—
  288         (1) The title insurer engaging or employing the title
  289  insurance agency must file with the department, on printed forms
  290  furnished by the department, an application certifying that the
  291  proposed title insurance agency meets all of the following
  292  requirements:
  293         (a) The agency must have obtained a fidelity bond in an
  294  amount, not less than $250,000 $50,000, with a deductible not to
  295  exceed 1 percent of the bond amount, acceptable to the insurer
  296  appointing the agency. If a fidelity bond is unavailable
  297  generally, the department must adopt rules for alternative
  298  methods to comply with this paragraph.
  299         Section 9. Section 626.8422, Florida Statutes, is created
  300  to read:
  301         626.8422Agent in charge.-
  302         (1)Each location of a title insurance agency or branch
  303  office of a title insurance agency that is within the state and
  304  that is regularly open to the public for closing services as
  305  defined in s. 627.7711, and at which disbursement of escrow
  306  funds or policy issuance services are performed must have a
  307  separate agent in charge. A title insurance agency that fails to
  308  designate an agent in charge on a form prescribed by the
  309  department, within 10 working days after the agency opens for
  310  business or changes the agent in charge, violates this chapter,
  311  and is punishable as provided in s. 626.844.
  312         (2) A title insurance agency shall designate an attorney
  313  duly authorized to practice law in this state and in good
  314  standing with The Florida Bar or a Florida-licensed title agent
  315  as agent in charge for each location described in subsection
  316  (1).
  317         (3)The agent in charge shall perform his or her duties as
  318  set forth in subsection (1) at the location for which he or she
  319  is named as agent in charge.
  320         (4)If a title insurance agency operates multiple
  321  locations, the agency shall designate a separate agent in charge
  322  for each location.
  323         Section 10. Subsections (11) and (12) are added to section
  324  626.8437, Florida Statutes, to read:
  325         626.8437 Grounds for denial, suspension, revocation, or
  326  refusal to renew license or appointment.—The department shall
  327  deny, suspend, revoke, or refuse to renew or continue the
  328  license or appointment of any title insurance agent or agency,
  329  and it shall suspend or revoke the eligibility to hold a license
  330  or appointment of such person, if it finds that as to the
  331  applicant, licensee, appointee, or any principal thereof, any
  332  one or more of the following grounds exist:
  333         (11) Failure to timely submit information as required by
  334  the department.
  335         (12)A licensee has been charged with an insurance-related
  336  or financial-related felony, a crime involving moral turpitude,
  337  or a crime punishable by imprisonment of 1 year or more under
  338  the law of any state, territory, or country.
  339         Section 11. Present subsection (7) of section 626.8473,
  340  Florida Statutes, is renumbered as subsection (8), and a new
  341  subsection (7) is added to that section, to read:
  342         626.8473 Escrow; trust fund.—
  343         (7) An attorney shall deposit into a separate trust account
  344  all funds received in connection with transactions in which the
  345  attorney is serving as a title or real estate settlement agent.
  346  The trust account must be maintained exclusively for funds
  347  received in connection with such transactions. The attorney
  348  shall permit the account to be audited by its title insurers.
  349  Funds need not be maintained in a separate account for a
  350  particular client if maintaining a separate account would
  351  violate applicable rules of The Florida Bar.
  352         Section 12. 627.7715, Florida Statutes is created to read:
  353         627.7715 Division of Title Insurance.—
  354         (1) The Division of Title Insurance is created within the
  355  Department of Financial Services. The division shall exercise
  356  all powers and duties with respect to title insurance
  357  regulation, including those exercised by the Office of Insurance
  358  Regulation and the Division of Insurance Agents and Agency
  359  Services of the Department of Financial Services before October
  360  15, 2011. The division director shall be appointed by the Chief
  361  Financial Officer and shall have experience, education, and
  362  expertise in the field of title insurance in this state. The
  363  director may also be known as the Florida Title Insurance
  364  Commissioner.
  365         (2) The Division of Title Insurance shall consist of:
  366         (a) The Bureau of Title Insurance Premium Rates and Forms.
  367         (b) The Bureau of Title Insurance Licensing and Education.
  368         Section 13. Section 627.777, Florida Statutes, is amended
  369  to read:
  370         627.777 Approval of forms.—
  371         (1) A title insurer may not issue or agree to issue any
  372  form of title insurance commitment, title insurance policy,
  373  other contract of title insurance, or related form until it is
  374  filed with and approved by the office. The office may not
  375  disapprove a title guarantee or policy form on the ground that
  376  it has on it a blank form for an attorney’s opinion on the
  377  title.
  378         (2)If a form filed for approval is a form certified and
  379  adopted by the American Land Title Association at the time of
  380  the filing, the department shall approve or disapprove the form
  381  within 180 days. If a form filed for approval is a form not
  382  certified by the American Land Title Association at the time of
  383  the filing, the department shall approve or disapprove the form
  384  within 1 year.
  385         (3)At the time of the approval of any form, the department
  386  shall determine if a rate in effect at that time applies or if
  387  the coverages require adoption of a rule pursuant to s. 627.782.
  388         (4)The department may revoke approval of any form upon 180
  389  days’ notice. A basis for revocation is the decertification by
  390  the American Land Title Association of a previously approved
  391  form.
  392         (5)An insurer may not achieve any competitive advantage
  393  over any other insurer, agency, or agent as to rates or forms.
  394  If a form or rate is approved for an insurer, the department
  395  shall expedite approval for a form containing the identical
  396  coverage, rate, or deviation approved under s. 627.783 for other
  397  insurers upon application.
  398         Section 14. Section 627.7815, Florida Statutes, is created
  399  to read:
  400         627.7815 Trade secret documents.If any person who is
  401  required to submit a document or other information to the
  402  department pursuant to this chapter or by rule or order of the
  403  department claims that such document, rule, or order contains a
  404  trade secret, such person may file a notice of trade secret with
  405  the department. Failure to do so constitutes a waiver of any
  406  claim by the person that the requested document or information
  407  is a trade secret.
  408         (1)Each page of the document or specific portion of the
  409  document claimed to be a trade secret must be clearly marked
  410  “trade secret.”
  411         (2)All material marked as a trade secret must be separate
  412  from all nontrade secret material and be submitted in a separate
  413  envelope clearly marked “trade secret.”
  414         (3)When submitting a notice of trade secret to the
  415  department, the submitting party must include an affidavit
  416  certifying under oath to the truth of the following statements
  417  concerning all documents or information that are claimed to be
  418  trade secrets:
  419         (a)[I consider/My company considers] this information a
  420  trade secret that has value and provides an advantage or an
  421  opportunity to obtain an advantage over those who do not know or
  422  use it.
  423         (b)[I have/My company has] taken measures to prevent the
  424  disclosure of the information to anyone other than those who
  425  have been selected to have access for limited purposes, and [I
  426  intend/my company intends] to continue to take such measures.
  427         (c)The information is not, and has not been, reasonably
  428  obtainable without [my/our] consent by other persons by use of
  429  legitimate means.
  430         (d)The information is not publicly available elsewhere.
  431         (4)Any data submitted by a title insurance agent or title
  432  insurer pursuant to s. 627.782 are presumed to be a trade secret
  433  under this section whether or not so designated.
  434         Section 15. Section 627.7985, Florida Statutes, is created
  435  to read:
  436         627.7985Rules relating to title insurance.—
  437         (1)In addition to rules authorized elsewhere in the
  438  Florida Insurance Code, the department may adopt rules relating
  439  to title insurance pursuant to ss. 120.536(1) and 120.54 to
  440  administer provisions relating to title insurance. The rules
  441  may:
  442         (a)Define the license and appointment requirements for
  443  title insurance agents and agencies.
  444         (b)Establish penalty guidelines for enforcing the
  445  requirements of the Florida Insurance Code.
  446         (c)Describe the fiduciary responsibilities of title
  447  insurers, title insurance agents, and agencies, including, but
  448  not limited to, duties related to escrow accounts.
  449         (d)Identify the responsibilities, duties, and designations
  450  of the agent in charge of a title insurance agency.
  451         (e)Enable the collection and analysis of information from
  452  title insurers, title insurance agents, and agencies relating to
  453  title insurance business.
  454         (f)Set reasonable requirements for the timely recording of
  455  documents and the delivery of final title insurance policies.
  456         (g) Set reasonable requirements for the timely disbursement
  457  of funds, unless a longer holding period is specified in a
  458  written escrow agreement.
  459         (h)Establish rules for the protection, calculation, and
  460  timely remittance of premiums that are owed to a title insurer.
  461         (i)Prohibit the markup of the cost of any third-party
  462  goods and services without having added value.
  463         (2)In addition to any other penalty provided, willful
  464  violation of any rule shall subject the violator to the
  465  suspension or revocation of the violator’s certificate of
  466  authority or license as may be applicable under the Florida
  467  Insurance Code.
  468         Section 16. Subsection (1) of section 627.780, Florida
  469  Statutes, is amended to read:
  470         627.780 Illegal dealings in premium.—
  471         (1) A person may not knowingly quote, charge, accept,
  472  collect, or receive a premium for title insurance other than the
  473  premium adopted by the department commission, except as provided
  474  in s. 626.9541(1)(h)3.b.
  475         Section 17. Subsection (8) of section 627.782, Florida
  476  Statutes, is amended to read:
  477         627.782 Adoption of rates.—
  478         (8) Each title insurance agency licensed to do business in
  479  this state and each insurer doing direct, retail, or affiliated
  480  business in this state shall maintain and submit information,
  481  including revenue, loss, and expense data, as the department
  482  determines to be necessary to assist in the analysis of title
  483  insurance premium rates, title search costs, and the condition
  484  of the title insurance industry in this state. This information
  485  must be transmitted to the department no later than March 31 of
  486  each year following the reporting year. The department shall
  487  adopt rules to assist in the collection and analysis of the data
  488  from the title insurance industry. The commission may, by rule,
  489  require licensees under this part to annually submit statistical
  490  information, including loss and expense data, as the department
  491  determines to be necessary to analyze premium rates, retention
  492  rates, and the condition of the title insurance industry.
  493         Section 18. Section 689.263, Florida Statutes, is created
  494  to read:
  495         689.263Sale of residential property; settlement statement
  496  requirements.—A title insurance agent or title insurance agency
  497  may not disburse funds pursuant to a completed purchase and sale
  498  transaction subject to the Real Estate Settlement Procedures Act
  499  of 1974, 12 U.S.C. ss. 2601 et seq., (RESPA) as amended, without
  500  requiring a statement of settlement costs meeting the following
  501  requirements:
  502         (1) The settlement statement must be executed by the buyer,
  503  borrower, seller, if any, and settlement agent as defined by
  504  RESPA.
  505         (2) If a title insurance premium is to be disbursed, the
  506  title insurer and the title insurance agent or title insurance
  507  agency, if any, must be disclosed.
  508         Section 19. (1) Effective October 15, 2011, the rules of
  509  the Financial Services Commission and the Office of Insurance
  510  Regulation with respect to the regulation of title insurance
  511  shall become the rules of the Department of Financial Services
  512  and shall remain in effect until specifically amended or
  513  repealed in the manner provided by law.
  514         (2) All of the statutory powers, duties and functions,
  515  records, personnel, property, unexpended balances of
  516  appropriations, allocations, or other funds for the
  517  administration of chapters 624, 626, and 627, Florida Statutes,
  518  related to title insurance, shall be transferred by a type two
  519  transfer, as defined in s. 20.06(2), Florida Statutes, from the
  520  Financial Services Commission and the Office of Insurance
  521  Regulation to the Department of Financial Services.
  522         (3) The transfer of regulatory authority under chapters
  523  624, 626, and 627, Florida Statutes, provided by this act shall
  524  not affect the validity of any judicial or administrative action
  525  relating to title insurance pending as of 11:59 p.m. on the day
  526  before the effective date of this act, to which action the
  527  Financial Services Commission or the Office of Insurance
  528  Regulation are at that time parties, and the Department of
  529  Financial Services shall be substituted as a party in interest
  530  in any such action.
  531         (4) All lawful orders issued by the Financial Services
  532  Commission or the Office of Insurance Regulation implementing or
  533  enforcing or otherwise in regard to any provision of chapter
  534  624, chapter 626, or chapter 627, Florida Statutes, relating to
  535  title insurance, issued prior to the effective date of this act,
  536  shall remain in effect and be enforceable after the effective
  537  date of this act, unless thereafter modified in accordance with
  538  law.
  539         (5) The Legislature recognizes that there is a need to
  540  conform the Florida Statutes to the policy decisions reflected
  541  in the provisions of this act. The Division of Statutory
  542  Revision is directed to provide the relevant substantive
  543  committees of the Senate and the House of Representatives with
  544  assistance, upon request, to enable the committees to prepare
  545  draft legislation to conform the Florida Statutes to the
  546  provisions of this act.
  547         (6) The Division of Title Insurance is directed to work
  548  with affected parties and to make recommendations to the
  549  Legislature for the consolidation of all of title insurance
  550  governance into a single chapter of Florida Statutes, the
  551  possible implementation of other recommendations of the Title
  552  Insurance Study Advisory Council, and other suggestions for
  553  improvement of the statutory regulation of the title insurance
  554  industry.
  555         Section 20. This act shall take effect July 1, 2011.