Florida Senate - 2015 CS for SB 1402
By the Committee on Banking and Insurance; and Senator Lee
597-02406-15 20151402c1
1 A bill to be entitled
2 An act relating to the organization of the Department
3 of Financial Services; amending s. 20.121, F.S.;
4 revising the divisions and functions of the
5 department; authorizing the Chief Financial Officer to
6 establish divisions, bureaus, or offices of the
7 department; amending s. 28.2401, F.S.; providing
8 funding from certain probate petition service charges
9 to the Florida Clerks of Court Operations Corporation
10 for clerk education provided by the corporation;
11 amending s. 28.241, F.S., relating to the deposit of
12 certain filing fees for trial and appellate
13 proceedings, to conform provisions to changes made by
14 the act; amending s. 28.35, F.S.; deleting a
15 requirement that the Florida Clerks of Court
16 Operations Corporation contract with the department
17 for certain audits; amending s. 110.205, F.S.;
18 exempting audit and accounting positions of the
19 department from career service requirements; amending
20 s. 624.26, F.S.; conforming provisions to changes made
21 by the act; amending s. 624.307, F.S.; providing
22 powers and duties of the department’s Division of
23 Consumer Services; authorizing the division to impose
24 certain penalties; authorizing the department to adopt
25 rules relating to the division; providing for
26 construction; amending s. 624.502, F.S.; requiring
27 that certain service of process fees be deposited into
28 the Administrative Trust Fund; amending ss. 16.59,
29 400.9935, 409.91212, 440.105, 440.1051, 440.12,
30 624.521, 626.016, 626.989, 626.9891, 626.9892,
31 626.9893, 626.9894, 626.9895, 626.99278, 627.351,
32 627.711, 627.736, 627.7401, 631.156, 641.30, and
33 932.7055, F.S.; conforming provisions to changes made
34 by act; making technical changes; providing an
35 effective date.
36
37 Be It Enacted by the Legislature of the State of Florida:
38
39 Section 1. Subsections (2) and (6) of section 20.121,
40 Florida Statutes, are amended to read:
41 20.121 Department of Financial Services.—There is created a
42 Department of Financial Services.
43 (2) DIVISIONS.—The Department of Financial Services shall
44 consist of the following divisions and offices:
45 (a) The Division of Accounting and Auditing, which shall
46 include the following bureau and office:
47 1. The Bureau of Unclaimed Property.
48 2. The Office of Fiscal Integrity which shall function as a
49 criminal justice agency for purposes of ss. 943.045-943.08 and
50 shall have a separate budget. The office may conduct
51 investigations within or outside this state as the bureau deems
52 necessary to aid in the enforcement of this section. If during
53 an investigation the office has reason to believe that any
54 criminal law of this state has or may have been violated, the
55 office shall refer any records tending to show such violation to
56 state or federal law enforcement or prosecutorial agencies and
57 shall provide investigative assistance to those agencies as
58 required.
59 (b) The Division of State Fire Marshal.
60 (c) The Division of Risk Management.
61 (d) The Division of Treasury, which shall include a Bureau
62 of Deferred Compensation responsible for administering the
63 Government Employees Deferred Compensation Plan established
64 under s. 112.215 for state employees.
65 (e) The Division of Criminal Investigations, which shall
66 function as a criminal justice agency for purposes of ss.
67 943.045-943.08 Insurance Fraud.
68 (f) The Division of Rehabilitation and Liquidation.
69 (g) The Division of Insurance Agent and Agency Services.
70 (h) The Division of Consumer Services.
71 1. The Division of Consumer Services shall perform the
72 following functions concerning products or services regulated by
73 the department or by the Office of Insurance Regulation:
74 a. Receive inquiries and complaints from consumers.
75 b. Prepare and disseminate such information as the
76 department deems appropriate to inform or assist consumers.
77 c. Provide direct assistance and advocacy for consumers who
78 request such assistance or advocacy.
79 d. With respect to apparent or potential violations of law
80 or applicable rules by a person or entity licensed by the
81 department or office, report apparent or potential violations to
82 the office or the appropriate division of the department, which
83 may take such further action as it deems appropriate.
84 e. Designate an employee of the division as primary contact
85 for consumers on issues relating to sinkholes.
86 2. Any person licensed or issued a certificate of authority
87 by the department or by the Office of Insurance Regulation shall
88 respond, in writing, to the Division of Consumer Services within
89 20 days after receipt of a written request for information from
90 the division concerning a consumer complaint. The response must
91 address the issues and allegations raised in the complaint. The
92 division may impose an administrative penalty for failure to
93 comply with this subparagraph of up to $2,500 per violation upon
94 any entity licensed by the department or the office and $250 for
95 the first violation, $500 for the second violation, and up to
96 $1,000 per violation thereafter upon any individual licensed by
97 the department or the office.
98 3. The department may adopt rules to administer this
99 paragraph.
100 4. The powers, duties, and responsibilities expressed or
101 granted in this paragraph do not limit the powers, duties, and
102 responsibilities of the Department of Financial Services, the
103 Financial Services Commission, the Office of Insurance
104 Regulation, or the Office of Financial Regulation set forth
105 elsewhere in the Florida Statutes.
106 (i) The Division of Workers’ Compensation.
107 (j) The Division of Administration.
108 (k) The Division of Legal Services.
109 (l) The Division of Information Systems.
110 (j)(m) The Office of Insurance Consumer Advocate.
111 (k)(n) The Division of Funeral, Cemetery, and Consumer
112 Services.
113 (l)(o) The Division of Public Assistance Fraud.
114
115 The Chief Financial Officer may establish any other division,
116 bureau, or office of the department that he or she deems
117 necessary to promote the efficient and effective operation of
118 the department pursuant to s. 20.04.
119 (6) STRATEGIC MARKETS RESEARCH AND ASSESSMENT UNIT.—The
120 Strategic Markets Research and Assessment Unit is established
121 within the Department of Financial Services. The Chief Financial
122 Officer or his or her designee shall report on September 1,
123 2008, and quarterly thereafter, to the Cabinet, the President of
124 the Senate, and the Speaker of the House of Representatives on
125 the status of the state’s financial services markets. At a
126 minimum, the report must include a summary of issues, trends,
127 and threats that broadly impact the condition of the financial
128 services industries, along with the effect of such conditions on
129 financial institutions, the securities industries, other
130 financial entities, and the credit market. The Chief Financial
131 Officer shall also provide findings and recommendations
132 regarding regulatory and policy changes to the Cabinet, the
133 President of the Senate, and the Speaker of the House of
134 Representatives.
135 Section 2. Subsection (3) of section 28.2401, Florida
136 Statutes, is amended to read:
137 28.2401 Service charges and filing fees in probate
138 matters.—
139 (3) An additional service charge of $4 on petitions seeking
140 summary administration, formal administration, ancillary
141 administration, guardianship, curatorship, and conservatorship
142 shall be paid to the clerk. The clerk shall transfer $3.50 to
143 the Department of Revenue for deposit into the Court Education
144 Trust Fund and shall transfer 50 cents to the Department of
145 Revenue for deposit into the Department of Financial Services’
146 Administrative Trust Fund to fund clerk education provided by
147 the Florida Clerks of Court Operations Corporation. No
148 additional fees, charges, or costs shall be added to the service
149 charges or filing fees imposed under this section, except as
150 authorized by general law.
151 Section 3. Paragraph (a) of subsection (1) of section
152 28.241, Florida Statutes, is amended to read:
153 28.241 Filing fees for trial and appellate proceedings.—
154 (1) Filing fees are due at the time a party files a
155 pleading to initiate a proceeding or files a pleading for
156 relief. Reopen fees are due at the time a party files a pleading
157 to reopen a proceeding if at least 90 days have elapsed since
158 the filing of a final order or final judgment with the clerk. If
159 a fee is not paid upon the filing of the pleading as required
160 under this section, the clerk shall pursue collection of the fee
161 pursuant to s. 28.246.
162 (a)1.a. Except as provided in sub-subparagraph b. and
163 subparagraph 2., the party instituting any civil action, suit,
164 or proceeding in the circuit court shall pay to the clerk of
165 that court a filing fee of up to $395 in all cases in which
166 there are not more than five defendants and an additional filing
167 fee of up to $2.50 for each defendant in excess of five. Of the
168 first $199 $200 in filing fees, $195 must be remitted to the
169 Department of Revenue for deposit into the State Courts Revenue
170 Trust Fund and, $4 must be remitted to the Department of Revenue
171 for deposit into the Administrative Trust Fund within the
172 Department of Financial Services and used to fund the contract
173 with the Florida Clerks of Court Operations Corporation created
174 in s. 28.35, and $1 must be remitted to the Department of
175 Revenue for deposit into the Administrative Trust Fund within
176 the Department of Financial Services to fund audits of
177 individual clerks’ court-related expenditures conducted by the
178 Department of Financial Services. By the 10th of each month, the
179 clerk shall submit that portion of the filing fees collected in
180 the previous month which is in excess of one-twelfth of the
181 clerk’s total budget to the Department of Revenue for deposit
182 into the Clerks of the Court Trust Fund.
183 b. The party instituting any civil action, suit, or
184 proceeding in the circuit court under chapter 39, chapter 61,
185 chapter 741, chapter 742, chapter 747, chapter 752, or chapter
186 753 shall pay to the clerk of that court a filing fee of up to
187 $295 in all cases in which there are not more than five
188 defendants and an additional filing fee of up to $2.50 for each
189 defendant in excess of five. Of the first $99 $100 in filing
190 fees, $95 must be remitted to the Department of Revenue for
191 deposit into the State Courts Revenue Trust Fund and, $4 must be
192 remitted to the Department of Revenue for deposit into the
193 Administrative Trust Fund within the Department of Financial
194 Services and used to fund the contract with the Florida Clerks
195 of Court Operations Corporation created in s. 28.35, and $1 must
196 be remitted to the Department of Revenue for deposit into the
197 Administrative Trust Fund within the Department of Financial
198 Services to fund audits of individual clerks’ court-related
199 expenditures conducted by the Department of Financial Services.
200 c. An additional filing fee of $4 shall be paid to the
201 clerk. The clerk shall remit $3.50 to the Department of Revenue
202 for deposit into the Court Education Trust Fund and shall remit
203 50 cents to the Department of Revenue for deposit into the
204 Administrative Trust Fund within the Department of Financial
205 Services to fund clerk education provided by the Florida Clerks
206 of Court Operations Corporation. An additional filing fee of up
207 to $18 shall be paid by the party seeking each severance that is
208 granted. The clerk may impose an additional filing fee of up to
209 $85 for all proceedings of garnishment, attachment, replevin,
210 and distress. Postal charges incurred by the clerk of the
211 circuit court in making service by certified or registered mail
212 on defendants or other parties shall be paid by the party at
213 whose instance service is made. Additional fees, charges, or
214 costs may not be added to the filing fees imposed under this
215 section, except as authorized in this section or by general law.
216 2.a. Notwithstanding the fees prescribed in subparagraph
217 1., a party instituting a civil action in circuit court relating
218 to real property or mortgage foreclosure shall pay a graduated
219 filing fee based on the value of the claim.
220 b. A party shall estimate in writing the amount in
221 controversy of the claim upon filing the action. For purposes of
222 this subparagraph, the value of a mortgage foreclosure action is
223 based upon the principal due on the note secured by the
224 mortgage, plus interest owed on the note and any moneys advanced
225 by the lender for property taxes, insurance, and other advances
226 secured by the mortgage, at the time of filing the foreclosure.
227 The value shall also include the value of any tax certificates
228 related to the property. In stating the value of a mortgage
229 foreclosure claim, a party shall declare in writing the total
230 value of the claim, as well as the individual elements of the
231 value as prescribed in this sub-subparagraph.
232 c. In its order providing for the final disposition of the
233 matter, the court shall identify the actual value of the claim.
234 The clerk shall adjust the filing fee if there is a difference
235 between the estimated amount in controversy and the actual value
236 of the claim and collect any additional filing fee owed or
237 provide a refund of excess filing fee paid.
238 d. The party shall pay a filing fee of:
239 (I) Three hundred and ninety-five dollars in all cases in
240 which the value of the claim is $50,000 or less and in which
241 there are not more than five defendants. The party shall pay an
242 additional filing fee of up to $2.50 for each defendant in
243 excess of five. Of the first $199 $200 in filing fees, $195 must
244 be remitted by the clerk to the Department of Revenue for
245 deposit into the General Revenue Fund and, $4 must be remitted
246 to the Department of Revenue for deposit into the Administrative
247 Trust Fund within the Department of Financial Services and used
248 to fund the contract with the Florida Clerks of Court Operations
249 Corporation created in s. 28.35, and $1 must be remitted to the
250 Department of Revenue for deposit into the Administrative Trust
251 Fund within the Department of Financial Services to fund audits
252 of individual clerks’ court-related expenditures conducted by
253 the Department of Financial Services;
254 (II) Nine hundred dollars in all cases in which the value
255 of the claim is more than $50,000 but less than $250,000 and in
256 which there are not more than five defendants. The party shall
257 pay an additional filing fee of up to $2.50 for each defendant
258 in excess of five. Of the first $704 $705 in filing fees, $700
259 must be remitted by the clerk to the Department of Revenue for
260 deposit into the General Revenue Fund and, $4 must be remitted
261 to the Department of Revenue for deposit into the Administrative
262 Trust Fund within the Department of Financial Services and used
263 to fund the contract with the Florida Clerks of Court Operations
264 Corporation created in s. 28.35, and $1 must be remitted to the
265 Department of Revenue for deposit into the Administrative Trust
266 Fund within the Department of Financial Services to fund audits
267 of individual clerks’ court-related expenditures conducted by
268 the Department of Financial Services; or
269 (III) One thousand nine hundred dollars in all cases in
270 which the value of the claim is $250,000 or more and in which
271 there are not more than five defendants. The party shall pay an
272 additional filing fee of up to $2.50 for each defendant in
273 excess of five. Of the first $1,704 $1,705 in filing fees, $930
274 must be remitted by the clerk to the Department of Revenue for
275 deposit into the General Revenue Fund, $770 must be remitted to
276 the Department of Revenue for deposit into the State Courts
277 Revenue Trust Fund and, $4 must be remitted to the Department of
278 Revenue for deposit into the Administrative Trust Fund within
279 the Department of Financial Services to fund the contract with
280 the Florida Clerks of Court Operations Corporation created in s.
281 28.35, and $1 must be remitted to the Department of Revenue for
282 deposit into the Administrative Trust Fund within the Department
283 of Financial Services to fund audits of individual clerks’
284 court-related expenditures conducted by the Department of
285 Financial Services.
286 e. An additional filing fee of $4 shall be paid to the
287 clerk. The clerk shall remit $3.50 to the Department of Revenue
288 for deposit into the Court Education Trust Fund and shall remit
289 50 cents to the Department of Revenue for deposit into the
290 Administrative Trust Fund within the Department of Financial
291 Services to fund clerk education provided by the Florida Clerks
292 of Court Operations Corporation. An additional filing fee of up
293 to $18 shall be paid by the party seeking each severance that is
294 granted. The clerk may impose an additional filing fee of up to
295 $85 for all proceedings of garnishment, attachment, replevin,
296 and distress. Postal charges incurred by the clerk of the
297 circuit court in making service by certified or registered mail
298 on defendants or other parties shall be paid by the party at
299 whose instance service is made. Additional fees, charges, or
300 costs may not be added to the filing fees imposed under this
301 section, except as authorized in this section or by general law.
302 Section 4. Paragraphs (e) through (h) of subsection (2) of
303 section 28.35, Florida Statutes, are amended to read:
304 28.35 Florida Clerks of Court Operations Corporation.—
305 (2) The duties of the corporation shall include the
306 following:
307 (e) Entering into a contract with the Department of
308 Financial Services for the department to audit the court-related
309 expenditures of individual clerks pursuant to s. 17.03.
310 (e)(f) Reviewing, certifying, and recommending proposed
311 budgets submitted by clerks of the court pursuant to s. 28.36.
312 As part of this process, the corporation shall:
313 1. Calculate the minimum amount of revenue necessary for
314 each clerk of the court to efficiently perform the list of
315 court-related functions specified in paragraph (3)(a). The
316 corporation shall apply the workload measures appropriate for
317 determining the individual level of review required to fund the
318 clerk’s budget.
319 2. Prepare a cost comparison of similarly situated clerks
320 of the court, based on county population and numbers of filings,
321 using the standard list of court-related functions specified in
322 paragraph (3)(a).
323 3. Conduct an annual base budget review and an annual
324 budget exercise examining the total budget of each clerk of the
325 court. The review shall examine revenues from all sources,
326 expenses of court-related functions, and expenses of noncourt
327 related functions as necessary to determine that court-related
328 revenues are not being used for noncourt-related purposes. The
329 review and exercise shall identify potential targeted budget
330 reductions in the percentage amount provided in Schedule VIII-B
331 of the state’s previous year’s legislative budget instructions,
332 as referenced in s. 216.023(3), or an equivalent schedule or
333 instruction as may be adopted by the Legislature.
334 4. Identify those proposed budgets containing funding for
335 items not included on the standard list of court-related
336 functions specified in paragraph (3)(a).
337 5. Identify those clerks projected to have court-related
338 revenues insufficient to fund their anticipated court-related
339 expenditures.
340 6. Use revenue estimates based on the official estimate for
341 funds accruing to the clerks of the court made by the Revenue
342 Estimating Conference.
343 7. Identify and report pay and benefit increases in any
344 proposed clerk budget, including, but not limited to, cost of
345 living increases, merit increases, and bonuses.
346 8. Provide detailed explanation for increases in
347 anticipated expenditures in any clerk budget that exceeds the
348 current year budget by more than 3 percent.
349 9. Identify and report the budget of any clerk which
350 exceeds the average budget of similarly situated clerks by more
351 than 10 percent.
352 (f)(g) Developing and conducting clerk education programs.
353 (g)(h) Before Beginning August 1, 2014, and each August 1
354 of each year thereafter, submitting to the Legislative Budget
355 Commission, as provided in s. 11.90, its proposed budget and the
356 information described in paragraph (e) (f), as well as the
357 proposed budgets for each clerk of the court. Before October 1
358 of each year beginning in 2014, the Legislative Budget
359 Commission shall consider the submitted budgets and shall
360 approve, disapprove, or amend and approve the corporation’s
361 budget and shall approve, disapprove, or amend and approve the
362 total of the clerks’ combined budgets or any individual clerk’s
363 budget. If the Legislative Budget Commission fails to approve or
364 amend and approve the corporation’s budget or the clerks’
365 combined budgets before October 1, the clerk shall continue to
366 perform the court-related functions based upon the clerk’s
367 budget for the previous county fiscal year.
368 Section 5. Paragraph (y) is added to subsection (2) of
369 section 110.205, Florida Statutes, to read:
370 110.205 Career service; exemptions.—
371 (2) EXEMPT POSITIONS.—The exempt positions that are not
372 covered by this part include the following:
373 (y) All audit and accounting positions of the Division of
374 Accounting and Auditing of the Department of Financial Services.
375 Section 6. Subsection (4) of section 624.26, Florida
376 Statutes, is amended to read:
377 624.26 Collaborative arrangement with the Department of
378 Health and Human Services.—
379 (4) The department’s Division of Consumer Services may
380 respond to complaints by consumers relating to a requirement of
381 PPACA as authorized under s. 20.121(2)(h), and report apparent
382 or potential violations to the office and to the federal
383 Department of Health and Human Services.
384 Section 7. Subsection (10) is added to section 624.307,
385 Florida Statutes, to read:
386 624.307 General powers; duties.—
387 (10)(a) The department’s Division of Consumer Services
388 shall perform the following functions concerning products or
389 services regulated by the department or office:
390 1. Receive inquiries and complaints from consumers.
391 2. Prepare and disseminate such information as the
392 department deems appropriate to inform or assist consumers.
393 3. Provide direct assistance and advocacy for consumers who
394 request such assistance or advocacy.
395 4. With respect to apparent or potential violations of law
396 or applicable rules by a person or entity licensed by the
397 department or office, report apparent or potential violations to
398 the office or the appropriate division of the department, which
399 may take such further action as it deems appropriate.
400 5. Designate an employee of the division as primary contact
401 for consumers on issues relating to sinkholes.
402 (b) Any person licensed or issued a certificate of
403 authority by the department or the office shall respond, in
404 writing, to the division within 20 days after receipt of a
405 written request for information from the division concerning a
406 consumer complaint. The response must address the issues and
407 allegations raised in the complaint. The division may impose an
408 administrative penalty for failure to comply with this paragraph
409 of up to $2,500 per violation upon any entity licensed by the
410 department or the office and $250 for the first violation, $500
411 for the second violation, and up to $1,000 per violation
412 thereafter upon any individual licensed by the department or the
413 office.
414 (c) The department may adopt rules to administer this
415 subsection.
416 (d) The powers, duties, and responsibilities expressed or
417 granted in this subsection do not limit the powers, duties, and
418 responsibilities of the Department of Financial Services, the
419 Financial Services Commission, the Office of Insurance
420 Regulation, or the Office of Financial Regulation as otherwise
421 provided by law.
422 Section 8. Section 624.502, Florida Statutes, as amended by
423 chapter 2014-53, Laws of Florida, is amended to read:
424 624.502 Service of process fee.—In all instances as
425 provided in any section of the insurance code and s. 48.151(3)
426 in which service of process is authorized to be made upon the
427 Chief Financial Officer or the director of the office, the
428 plaintiff shall pay to the department or office a fee of $15 for
429 such service of process, which fee shall be deposited into the
430 Administrative Trust Fund Insurance Regulatory Trust Fund.
431 Section 9. Section 16.59, Florida Statutes, is amended to
432 read:
433 16.59 Medicaid fraud control.—The Medicaid Fraud Control
434 Unit is created in the Department of Legal Affairs to
435 investigate all violations of s. 409.920 and any criminal
436 violations discovered during the course of those investigations.
437 The Medicaid Fraud Control Unit may refer any criminal violation
438 so uncovered to the appropriate prosecuting authority. The
439 offices of the Medicaid Fraud Control Unit, the Agency for
440 Health Care Administration Medicaid program integrity program,
441 and the Divisions of Criminal Investigations Insurance Fraud and
442 Public Assistance Fraud within the Department of Financial
443 Services shall, to the extent possible, be collocated; however,
444 positions dedicated to Medicaid managed care fraud within the
445 Medicaid Fraud Control Unit shall be collocated with the
446 Division of Criminal Investigations Insurance Fraud. The Agency
447 for Health Care Administration, the Department of Legal Affairs,
448 and the Divisions of Criminal Investigations Insurance Fraud and
449 Public Assistance Fraud within the Department of Financial
450 Services shall conduct joint training and other joint activities
451 designed to increase communication and coordination in
452 recovering overpayments.
453 Section 10. Subsection (9) of section 400.9935, Florida
454 Statutes, is amended to read:
455 400.9935 Clinic responsibilities.—
456 (9) In addition to the requirements of part II of chapter
457 408, the clinic shall display a sign in a conspicuous location
458 within the clinic readily visible to all patients indicating
459 that, pursuant to s. 626.9892, the Department of Financial
460 Services may pay rewards of up to $25,000 to persons providing
461 information leading to the arrest and conviction of persons
462 committing crimes investigated by the Division of Criminal
463 Investigations Insurance Fraud arising from violations of s.
464 440.105, s. 624.15, s. 626.9541, s. 626.989, or s. 817.234. An
465 authorized employee of the Division of Criminal Investigations
466 Insurance Fraud may make unannounced inspections of a clinic
467 licensed under this part as necessary to determine whether the
468 clinic is in compliance with this subsection. A licensed clinic
469 shall allow full and complete access to the premises to such
470 authorized employee of the division who makes an inspection to
471 determine compliance with this subsection.
472 Section 11. Subsection (6) of section 409.91212, Florida
473 Statutes, is amended to read:
474 409.91212 Medicaid managed care fraud.—
475 (6) Each managed care plan shall report all suspected or
476 confirmed instances of provider or recipient fraud or abuse
477 within 15 calendar days after detection to the Office of
478 Medicaid Program Integrity within the agency. At a minimum the
479 report must contain the name of the provider or recipient, the
480 Medicaid billing number or tax identification number, and a
481 description of the fraudulent or abusive act. The Office of
482 Medicaid Program Integrity in the agency shall forward the
483 report of suspected overpayment, abuse, or fraud to the
484 appropriate investigative unit, including, but not limited to,
485 the Bureau of Medicaid program integrity, the Medicaid fraud
486 control unit, the Division of Public Assistance Fraud, the
487 Division of Criminal Investigations Insurance Fraud, or the
488 Department of Law Enforcement.
489 (a) Failure to timely report shall result in an
490 administrative fine of $1,000 per calendar day after the 15th
491 day of detection.
492 (b) Failure to timely report may result in additional
493 administrative, civil, or criminal penalties.
494 Section 12. Paragraph (a) of subsection (1) of section
495 440.105, Florida Statutes, is amended to read:
496 440.105 Prohibited activities; reports; penalties;
497 limitations.—
498 (1)(a) Any insurance carrier, any individual self-insured,
499 any commercial or group self-insurance fund, any professional
500 practitioner licensed or regulated by the Department of Health,
501 except as otherwise provided by law, any medical review
502 committee as defined in s. 766.101, any private medical review
503 committee, and any insurer, agent, or other person licensed
504 under the insurance code, or any employee thereof, having
505 knowledge or who believes that a fraudulent act or any other act
506 or practice which, upon conviction, constitutes a felony or
507 misdemeanor under this chapter is being or has been committed
508 shall send to the Division of Criminal Investigations Insurance
509 Fraud, Bureau of Workers’ Compensation Fraud, a report or
510 information pertinent to such knowledge or belief and such
511 additional information relative thereto as the bureau may
512 require. The bureau shall review such information or reports and
513 select such information or reports as, in its judgment, may
514 require further investigation. It shall then cause an
515 independent examination of the facts surrounding such
516 information or report to be made to determine the extent, if
517 any, to which a fraudulent act or any other act or practice
518 which, upon conviction, constitutes a felony or a misdemeanor
519 under this chapter is being committed. The bureau shall report
520 any alleged violations of law which its investigations disclose
521 to the appropriate licensing agency and state attorney or other
522 prosecuting agency having jurisdiction with respect to any such
523 violations of this chapter. If prosecution by the state attorney
524 or other prosecuting agency having jurisdiction with respect to
525 such violation is not begun within 60 days of the bureau’s
526 report, the state attorney or other prosecuting agency having
527 jurisdiction with respect to such violation shall inform the
528 bureau of the reasons for the lack of prosecution.
529 Section 13. Subsections (1) and (2) of section 440.1051,
530 Florida Statutes, are amended to read
531 440.1051 Fraud reports; civil immunity; criminal
532 penalties.—
533 (1) The Bureau of Workers’ Compensation Insurance Fraud of
534 the Division of Criminal Investigations Insurance Fraud of the
535 department shall establish a toll-free telephone number to
536 receive reports of workers’ compensation fraud committed by an
537 employee, employer, insurance provider, physician, attorney, or
538 other person.
539 (2) Any person who reports workers’ compensation fraud to
540 the Division of Criminal Investigations Insurance Fraud under
541 subsection (1) is immune from civil liability for doing so, and
542 the person or entity alleged to have committed the fraud may not
543 retaliate against him or her for providing such report, unless
544 the person making the report knows it to be false.
545 Section 14. Paragraph (c) of subsection (1) of section
546 440.12, Florida Statutes, is amended to read:
547 440.12 Time for commencement and limits on weekly rate of
548 compensation.—
549 (1) Compensation is not allowed for the first 7 days of
550 the disability, except for benefits provided under s. 440.13.
551 However, if the injury results in more than 21 days of
552 disability, compensation is allowed from the commencement of the
553 disability.
554 (c) Each carrier shall keep a record of all payments made
555 under this subsection, including the time and manner of such
556 payments, and shall furnish these records or a report based on
557 these records to the Division of Criminal Investigations
558 Insurance Fraud and the Division of Workers’ Compensation, upon
559 request.
560 Section 15. Subsection (1) of section 624.521, Florida
561 Statutes, is amended to read:
562 624.521 Deposit of certain tax receipts; refund of improper
563 payments.—
564 (1) The department of Financial Services shall promptly
565 deposit in the State Treasury to the credit of the Insurance
566 Regulatory Trust Fund all “state tax” portions of agents’
567 licenses collected under s. 624.501 necessary to fund the
568 Division of Criminal Investigations Insurance Fraud. The balance
569 of the tax shall be credited to the General Fund. All moneys
570 received by the department of Financial Services or the office
571 not in accordance with the provisions of this code or not in the
572 exact amount as specified by the applicable provisions of this
573 code shall be returned to the remitter. The records of the
574 department or office shall show the date and reason for such
575 return.
576 Section 16. Subsection (4) of section 626.016, Florida
577 Statutes, is amended to read:
578 626.016 Powers and duties of department, commission, and
579 office.—
580 (4) Nothing in this section is intended to limit the
581 authority of the department and the Division of Criminal
582 Investigations Insurance Fraud, as specified in s. 626.989.
583 Section 17. Subsections (2) and (6) of section 626.989,
584 Florida Statutes, are amended to read:
585 626.989 Investigation by department or Division of Criminal
586 Investigations Insurance Fraud; compliance; immunity;
587 confidential information; reports to division; division
588 investigator’s power of arrest.—
589 (2) If, by its own inquiries or as a result of complaints,
590 the department or its Division of Criminal Investigations
591 Insurance Fraud has reason to believe that a person has engaged
592 in, or is engaging in, a fraudulent insurance act, an act or
593 practice that violates s. 626.9541 or s. 817.234, or an act or
594 practice punishable under s. 624.15, it may administer oaths and
595 affirmations, request the attendance of witnesses or proffering
596 of matter, and collect evidence. The department shall not compel
597 the attendance of any person or matter in any such investigation
598 except pursuant to subsection (4).
599 (6) Any person, other than an insurer, agent, or other
600 person licensed under the code, or an employee thereof, having
601 knowledge or who believes that a fraudulent insurance act or any
602 other act or practice which, upon conviction, constitutes a
603 felony or a misdemeanor under the code, or under s. 817.234, is
604 being or has been committed may send to the Division of Criminal
605 Investigations Insurance Fraud a report or information pertinent
606 to such knowledge or belief and such additional information
607 relative thereto as the department may request. Any professional
608 practitioner licensed or regulated by the Department of Business
609 and Professional Regulation, except as otherwise provided by
610 law, any medical review committee as defined in s. 766.101, any
611 private medical review committee, and any insurer, agent, or
612 other person licensed under the code, or an employee thereof,
613 having knowledge or who believes that a fraudulent insurance act
614 or any other act or practice which, upon conviction, constitutes
615 a felony or a misdemeanor under the code, or under s. 817.234,
616 is being or has been committed shall send to the Division of
617 Criminal Investigations Insurance Fraud a report or information
618 pertinent to such knowledge or belief and such additional
619 information relative thereto as the department may require. The
620 Division of Criminal Investigations Insurance Fraud shall review
621 such information or reports and select such information or
622 reports as, in its judgment, may require further investigation.
623 It shall then cause an independent examination of the facts
624 surrounding such information or report to be made to determine
625 the extent, if any, to which a fraudulent insurance act or any
626 other act or practice which, upon conviction, constitutes a
627 felony or a misdemeanor under the code, or under s. 817.234, is
628 being committed. The Division of Criminal Investigations
629 Insurance Fraud shall report any alleged violations of law which
630 its investigations disclose to the appropriate licensing agency
631 and state attorney or other prosecuting agency having
632 jurisdiction with respect to any such violation, as provided in
633 s. 624.310. If prosecution by the state attorney or other
634 prosecuting agency having jurisdiction with respect to such
635 violation is not begun within 60 days of the division’s report,
636 the state attorney or other prosecuting agency having
637 jurisdiction with respect to such violation shall inform the
638 division of the reasons for the lack of prosecution.
639 Section 18. Subsections (1), (2), and (3) of section
640 626.9891, Florida Statutes, are amended to read:
641 626.9891 Insurer anti-fraud investigative units; reporting
642 requirements; penalties for noncompliance.—
643 (1) Each Every insurer admitted to do business in this
644 state who in the previous calendar year, at any time during that
645 year, had $10 million or more in direct premiums written shall:
646 (a) Establish and maintain a unit or division within the
647 company to investigate possible fraudulent claims by insureds or
648 by persons making claims for services or repairs against
649 policies held by insureds; or
650 (b) Contract with others to investigate possible fraudulent
651 claims for services or repairs against policies held by
652 insureds.
653
654 An insurer subject to this subsection shall file with the
655 Division of Criminal Investigations Insurance Fraud of the
656 department on or before July 1, 1996, a detailed description of
657 the unit or division established pursuant to paragraph (a) or a
658 copy of the contract and related documents required by paragraph
659 (b).
660 (2) Every insurer admitted to do business in this state,
661 which in the previous calendar year had less than $10 million in
662 direct premiums written, must adopt an anti-fraud plan and file
663 it with the Division of Criminal Investigations Insurance Fraud
664 of the department on or before July 1, 1996. An insurer may, in
665 lieu of adopting and filing an anti-fraud plan, comply with the
666 provisions of subsection (1).
667 (3) Each insurer’s insurers anti-fraud plan must plans
668 shall include all of the following:
669 (a) A description of the insurer’s procedures for detecting
670 and investigating possible fraudulent insurance acts.;
671 (b) A description of the insurer’s procedures for the
672 mandatory reporting of possible fraudulent insurance acts to the
673 Division of Criminal Investigations Insurance Fraud of the
674 department.;
675 (c) A description of the insurer’s plan for anti-fraud
676 education and training of its claims adjusters or other
677 personnel.; and
678 (d) A written description or chart outlining the
679 organizational arrangement of the insurer’s anti-fraud personnel
680 who are responsible for the investigation and reporting of
681 possible fraudulent insurance acts.
682 Section 19. Subsection (2) of section 626.9892, Florida
683 Statutes, is amended to read:
684 626.9892 Anti-Fraud Reward Program; reporting of insurance
685 fraud.—
686 (2) The department may pay rewards of up to $25,000 to
687 persons providing information leading to the arrest and
688 conviction of persons committing crimes investigated by the
689 Division of Criminal Investigations Insurance Fraud arising from
690 violations of s. 440.105, s. 624.15, s. 626.9541, s. 626.989, or
691 s. 817.234.
692 Section 20. Subsection (1) of section 626.9893, Florida
693 Statutes, is amended to read:
694 626.9893 Disposition of revenues; criminal or forfeiture
695 proceedings.—
696 (1) The Division of Criminal Investigations Insurance Fraud
697 of the Department of Financial Services may deposit revenues
698 received as a result of criminal proceedings or forfeiture
699 proceedings, other than revenues deposited into the Department
700 of Financial Services’ Federal Law Enforcement Trust Fund under
701 s. 17.43, into the Insurance Regulatory Trust Fund. Moneys
702 deposited pursuant to this section shall be separately accounted
703 for and shall be used solely for the division to carry out its
704 duties and responsibilities.
705 Section 21. Subsection (2) of section 626.9894, Florida
706 Statutes, is amended to read:
707 626.9894 Gifts and grants.—
708 (2) All rights to, interest in, and title to such donated
709 or granted property shall immediately vest in the Division of
710 Criminal Investigations Insurance Fraud upon donation. The
711 division may hold such property in coownership, sell its
712 interest in the property, liquidate its interest in the
713 property, or dispose of its interest in the property in any
714 other reasonable manner.
715 Section 22. Paragraph (a) of subsection (1) of section
716 626.9895, Florida Statutes, is amended to read:
717 626.9895 Motor vehicle insurance fraud direct-support
718 organization.—
719 (1) DEFINITIONS.—As used in this section, the term:
720 (a) “Division” means the Division of Criminal
721 Investigations Insurance Fraud of the Department of Financial
722 Services.
723 Section 23. Section 626.99278, Florida Statutes, is amended
724 to read:
725 626.99278 Viatical provider anti-fraud plan.—Every licensed
726 viatical settlement provider and registered life expectancy
727 provider must adopt an anti-fraud plan and file it with the
728 Division of Criminal Investigations Insurance Fraud of the
729 department. Each anti-fraud plan shall include:
730 (1) A description of the procedures for detecting and
731 investigating possible fraudulent acts and procedures for
732 resolving material inconsistencies between medical records and
733 insurance applications.
734 (2) A description of the procedures for the mandatory
735 reporting of possible fraudulent insurance acts and prohibited
736 practices set forth in s. 626.99275 to the Division of Criminal
737 Investigations Insurance Fraud of the department.
738 (3) A description of the plan for anti-fraud education and
739 training of its underwriters or other personnel.
740 (4) A written description or chart outlining the
741 organizational arrangement of the anti-fraud personnel who are
742 responsible for the investigation and reporting of possible
743 fraudulent insurance acts and for the investigation of
744 unresolved material inconsistencies between medical records and
745 insurance applications.
746 (5) For viatical settlement providers, a description of the
747 procedures used to perform initial and continuing review of the
748 accuracy of life expectancies used in connection with a viatical
749 settlement contract or viatical settlement investment.
750 Section 24. Paragraph (k) of subsection (6) of section
751 627.351, Florida Statutes, is amended to read:
752 627.351 Insurance risk apportionment plans.—
753 (6) CITIZENS PROPERTY INSURANCE CORPORATION.—
754 (k)1. The corporation shall establish and maintain a unit
755 or division to investigate possible fraudulent claims by
756 insureds or by persons making claims for services or repairs
757 against policies held by insureds; or it may contract with
758 others to investigate possible fraudulent claims for services or
759 repairs against policies held by the corporation pursuant to s.
760 626.9891. The corporation must comply with reporting
761 requirements of s. 626.9891. An employee of the corporation
762 shall notify the corporation’s Office of the Inspector General
763 and the Division of Criminal Investigations Insurance Fraud
764 within 48 hours after having information that would lead a
765 reasonable person to suspect that fraud may have been committed
766 by any employee of the corporation.
767 2. The corporation shall establish a unit or division
768 responsible for receiving and responding to consumer complaints,
769 which unit or division is the sole responsibility of a senior
770 manager of the corporation.
771 Section 25. Subsections (4) and (7) of section 627.711,
772 Florida Statutes, are amended to read:
773 627.711 Notice of premium discounts for hurricane loss
774 mitigation; uniform mitigation verification inspection form.—
775 (4) An authorized mitigation inspector that signs a uniform
776 mitigation form, and a direct employee authorized to conduct
777 mitigation verification inspections under subsection paragraph
778 (3), may not commit misconduct in performing hurricane
779 mitigation inspections or in completing a uniform mitigation
780 form that causes financial harm to a customer or their insurer;
781 or that jeopardizes a customer’s health and safety. Misconduct
782 occurs when an authorized mitigation inspector signs a uniform
783 mitigation verification form that:
784 (a) Falsely indicates that he or she personally inspected
785 the structures referenced by the form;
786 (b) Falsely indicates the existence of a feature which
787 entitles an insured to a mitigation discount which the inspector
788 knows does not exist or did not personally inspect;
789 (c) Contains erroneous information due to the gross
790 negligence of the inspector; or
791 (d) Contains a pattern of demonstrably false information
792 regarding the existence of mitigation features that could give
793 an insured a false evaluation of the ability of the structure to
794 withstand major damage from a hurricane endangering the safety
795 of the insured’s life and property.
796 (7) An insurer, person, or other entity that obtains
797 evidence of fraud or evidence that an authorized mitigation
798 inspector or an employee authorized to conduct mitigation
799 verification inspections under subsection paragraph (3) has made
800 false statements in the completion of a mitigation inspection
801 form shall file a report with the Division of Criminal
802 Investigations Insurance Fraud, along with all of the evidence
803 in its possession that supports the allegation of fraud or
804 falsity. An insurer, person, or other entity making the report
805 shall be immune from liability, in accordance with s.
806 626.989(4), for any statements made in the report, during the
807 investigation, or in connection with the report. The Division of
808 Criminal Investigations Insurance Fraud shall issue an
809 investigative report if it finds that probable cause exists to
810 believe that the authorized mitigation inspector, or an employee
811 authorized to conduct mitigation verification inspections under
812 subsection paragraph (3), made intentionally false or fraudulent
813 statements in the inspection form. Upon conclusion of the
814 investigation and a finding of probable cause that a violation
815 has occurred, the Division of Criminal Investigations Insurance
816 Fraud shall send a copy of the investigative report to the
817 office and a copy to the agency responsible for the professional
818 licensure of the authorized mitigation inspector, whether or not
819 a prosecutor takes action based upon the report.
820 Section 26. Paragraph (i) of subsection (4) and subsection
821 (14) of section 627.736, Florida Statutes, are amended to read:
822 627.736 Required personal injury protection benefits;
823 exclusions; priority; claims.—
824 (4) PAYMENT OF BENEFITS.—Benefits due from an insurer under
825 ss. 627.730-627.7405 are primary, except that benefits received
826 under any workers’ compensation law must be credited against the
827 benefits provided by subsection (1) and are due and payable as
828 loss accrues upon receipt of reasonable proof of such loss and
829 the amount of expenses and loss incurred which are covered by
830 the policy issued under ss. 627.730-627.7405. If the Agency for
831 Health Care Administration provides, pays, or becomes liable for
832 medical assistance under the Medicaid program related to injury,
833 sickness, disease, or death arising out of the ownership,
834 maintenance, or use of a motor vehicle, the benefits under ss.
835 627.730-627.7405 are subject to the Medicaid program. However,
836 within 30 days after receiving notice that the Medicaid program
837 paid such benefits, the insurer shall repay the full amount of
838 the benefits to the Medicaid program.
839 (i) If an insurer has a reasonable belief that a fraudulent
840 insurance act, for the purposes of s. 626.989 or s. 817.234, has
841 been committed, the insurer shall notify the claimant, in
842 writing, within 30 days after submission of the claim that the
843 claim is being investigated for suspected fraud. Beginning at
844 the end of the initial 30-day period, the insurer has an
845 additional 60 days to conduct its fraud investigation.
846 Notwithstanding subsection (10), no later than 90 days after the
847 submission of the claim, the insurer must deny the claim or pay
848 the claim with simple interest as provided in paragraph (d).
849 Interest shall be assessed from the day the claim was submitted
850 until the day the claim is paid. All claims denied for suspected
851 fraudulent insurance acts shall be reported to the Division of
852 Criminal Investigations Insurance Fraud.
853 (14) FRAUD ADVISORY NOTICE.—Upon receiving notice of a
854 claim under this section, an insurer shall provide a notice to
855 the insured or to a person for whom a claim for reimbursement
856 for diagnosis or treatment of injuries has been filed, advising
857 that:
858 (a) Pursuant to s. 626.9892, the Department of Financial
859 Services may pay rewards of up to $25,000 to persons providing
860 information leading to the arrest and conviction of persons
861 committing crimes investigated by the Division of Criminal
862 Investigations Insurance Fraud arising from violations of s.
863 440.105, s. 624.15, s. 626.9541, s. 626.989, or s. 817.234.
864 (b) Solicitation of a person injured in a motor vehicle
865 crash for purposes of filing personal injury protection or tort
866 claims could be a violation of s. 817.234, s. 817.505, or the
867 rules regulating The Florida Bar and should be immediately
868 reported to the Division of Criminal Investigations Insurance
869 Fraud if such conduct has taken place.
870 Section 27. Paragraphs (b) and (c) of subsection (1) of
871 section 627.7401, Florida Statutes, are amended to read:
872 627.7401 Notification of insured’s rights.—
873 (1) The commission, by rule, shall adopt a form for the
874 notification of insureds of their right to receive personal
875 injury protection benefits under the Florida Motor Vehicle No
876 Fault Law. Such notice shall include:
877 (b) An advisory informing insureds that:
878 1. Pursuant to s. 626.9892, the Department of Financial
879 Services may pay rewards of up to $25,000 to persons providing
880 information leading to the arrest and conviction of persons
881 committing crimes investigated by the Division of Criminal
882 Investigations Insurance Fraud arising from violations of s.
883 440.105, s. 624.15, s. 626.9541, s. 626.989, or s. 817.234.
884 2. Pursuant to s. 627.736(5)(e)1., if the insured notifies
885 the insurer of a billing error, the insured may be entitled to a
886 certain percentage of a reduction in the amount paid by the
887 insured’s motor vehicle insurer.
888 (c) A notice that solicitation of a person injured in a
889 motor vehicle crash for purposes of filing personal injury
890 protection or tort claims could be a violation of s. 817.234, s
891 817.505, or the rules regulating The Florida Bar and should be
892 immediately reported to the Division of Criminal Investigations
893 Insurance Fraud if such conduct has taken place.
894 Section 28. Subsection (2) of section 631.156, Florida
895 Statutes, is amended to read:
896 631.156 Investigation by the department; scope of
897 authority; sharing of materials.—
898 (2) The department may provide documents, books, and
899 records; other investigative products, work product, and
900 analysis; and copies of any or all of such materials to the
901 Division of Criminal Investigations Insurance Fraud or any other
902 appropriate government agency. The sharing of these materials
903 shall not waive any work product or other privilege otherwise
904 applicable under law.
905 Section 29. Subsection (4) of section 641.30, Florida
906 Statutes, is amended to read:
907 641.30 Construction and relationship to other laws.—
908 (4) The Division of Criminal Investigations Insurance Fraud
909 of the department is vested with all powers granted to it under
910 the Florida Insurance Code with respect to the investigation of
911 any violation of this part.
912 Section 30. Paragraph (l) of subsection (6) of section
913 932.7055, Florida Statutes, is amended to read:
914 932.7055 Disposition of liens and forfeited property.—
915 (6) If the seizing agency is a state agency, all remaining
916 proceeds shall be deposited into the General Revenue Fund.
917 However, if the seizing agency is:
918 (l) The Division of Criminal Investigations Insurance Fraud
919 of the Department of Financial Services, the proceeds accrued
920 pursuant to the provisions of the Florida Contraband Forfeiture
921 Act shall be deposited into the Insurance Regulatory Trust Fund
922 as provided in s. 626.9893 or into the Department of Financial
923 Services’ Federal Law Enforcement Trust Fund as provided in s.
924 17.43, as applicable.
925 Section 31. This act shall take effect July 1, 2015.