Florida Senate - 2023                      CS for CS for SB 1158
       
       
        
       By the Appropriations Committee on Agriculture, Environment, and
       General Government; the Committee on Banking and Insurance; and
       Senator DiCeglie
       
       
       
       601-03769-23                                          20231158c2
    1                        A bill to be entitled                      
    2         An act relating to the Department of Financial
    3         Services; amending s. 20.121, F.S.; revising powers
    4         and duties of the department’s Division of
    5         Investigative and Forensic Services; deleting the
    6         department’s Strategic Markets Research and Assessment
    7         Unit; amending s. 112.215, F.S.; redefining the term
    8         “employee” as “government employee” and revising the
    9         definition of the term; revising eligibility for plans
   10         of deferred compensation established by the Chief
   11         Financial Officer; revising the membership of the
   12         Deferred Compensation Advisory Council; making
   13         technical changes; amending s. 215.55952, F.S.;
   14         revising the initial date and subsequent intervals in
   15         which the Chief Financial Officer must provide the
   16         Governor and the Legislature with a report on the
   17         economic impact of certain hurricanes; amending s.
   18         274.01, F.S.; revising the definition of the term
   19         “governmental unit” for purposes of ch. 274, F.S.;
   20         amending s. 440.13, F.S.; authorizing, rather than
   21         requiring, a judge of compensation claims to order an
   22         injured employee’s evaluation by an expert medical
   23         advisor under certain circumstances; revising the
   24         schedules of maximum reimbursement allowances
   25         determined by the three-member panel under the
   26         Workers’ Compensation Law; revising reimbursement
   27         requirements for certain providers; requiring the
   28         department to annually notify carriers and self
   29         insurers of certain schedules; requiring the
   30         publication of a schedule in a certain manner;
   31         providing construction; revising factors the panel
   32         must consider in establishing the uniform schedule of
   33         maximum reimbursement allowances; deleting certain
   34         standards for practice parameters; amending s.
   35         440.385, F.S.; revising eligibility requirements for
   36         the board of directors of the Florida Self-Insurers
   37         Guaranty Association, Incorporated; providing
   38         construction; authorizing the Chief Financial Officer
   39         to remove a director under certain circumstances;
   40         specifying requirements for, and restrictions on,
   41         directors; prohibiting directors and employees of the
   42         association from knowingly accepting certain gifts or
   43         expenditures; providing penalties; amending s.
   44         497.005, F.S.; adding and revising definitions for
   45         purposes of the Florida Funeral, Cemetery, and
   46         Consumer Services Act; amending s. 624.1265, F.S.;
   47         revising conditions for a nonprofit religious
   48         organization to be exempt from requirements of the
   49         Florida Insurance Code; amending s. 624.501, F.S.;
   50         deleting an application filing and license fee for
   51         reinsurance intermediaries; amending s. 626.015, F.S.;
   52         revising the definition of the term “association” for
   53         purposes of part I of ch. 626, F.S.; amending s.
   54         626.171, F.S.; deleting the authority of designated
   55         examination centers to take fingerprints of applicants
   56         for a license as an agent, customer representative,
   57         adjuster, service representative, or reinsurance
   58         intermediary; amending s. 626.173, F.S.; providing
   59         that a certain notice requirement for certain licensed
   60         insurance agencies ceasing the transacting of
   61         insurance does not apply to certain kinds of
   62         insurance; amending s. 626.207, F.S.; revising
   63         violations for which the department must adopt rules
   64         establishing specific penalties; amending s. 626.221,
   65         F.S.; adding a certification that exempts an applicant
   66         for license as an all-lines adjuster from an
   67         examination requirement; amending s. 626.2815, F.S.;
   68         revising continuing education requirements for certain
   69         insurance representatives; amending s. 626.321, F.S.;
   70         deleting certain requirements for, and restrictions
   71         on, licensees of specified limited licenses; adding a
   72         limited license for transacting preneed funeral
   73         agreement insurance; specifying conditions for issuing
   74         such license without an examination; amending s.
   75         626.611, F.S.; revising specified grounds for
   76         compulsory disciplinary actions taken by the
   77         department against insurance representatives; amending
   78         s. 626.621, F.S.; adding grounds for discretionary
   79         disciplinary actions taken by the department against
   80         insurance representatives; amending s. 626.7492, F.S.;
   81         revising definitions of the terms “producer” and
   82         “reinsurance intermediary manager”; revising licensure
   83         requirements for reinsurance intermediary brokers and
   84         reinsurance intermediary managers; deleting the
   85         authority of the department to refuse to issue a
   86         reinsurance intermediary license under certain
   87         circumstances; amending s. 626.752, F.S.; requiring
   88         the department to suspend the authority of an insurer
   89         or employer to appoint licensees under certain
   90         circumstances relating to the exchange of insurance
   91         business; amending s. 626.785, F.S.; authorizing
   92         certain persons to obtain a limited license to sell
   93         only policies of life insurance covering the expense
   94         of a prearrangement for funeral services or
   95         merchandise; amending ss. 626.793 and 626.837, F.S.;
   96         requiring the department to suspend the authority of
   97         an insurer or employer to appoint licensees under
   98         certain circumstances relating to the acceptance of
   99         excess or rejected insurance business; amending s.
  100         626.8411, F.S.; providing that certain notice
  101         requirements do not apply to title insurance agents or
  102         title insurance agencies; amending s. 626.8437, F.S.;
  103         adding grounds for compulsory disciplinary actions
  104         taken by the department against a title insurance
  105         agent or agency; amending s. 626.844, F.S.; adding
  106         grounds for discretionary disciplinary actions taken
  107         by the department against a title insurance agent or
  108         agency; amending s. 626.8473, F.S.; revising
  109         requirements for engaging in the business as an escrow
  110         agent in connection with real estate closing
  111         transactions; amending s. 626.854, F.S.; revising
  112         applicability of a prohibited act relating to public
  113         insurance adjusters; amending s. 626.874, F.S.;
  114         revising eligibility requirements for the department’s
  115         issuance of licenses to catastrophe or emergency
  116         adjusters; revising grounds on which the department
  117         may deny such license; amending s. 626.9892, F.S.;
  118         revising a condition and adding violations for which
  119         the department may pay rewards under the Anti-Fraud
  120         Reward Program; amending s. 626.9957, F.S.; providing
  121         for the expiration of a health coverage navigator’s
  122         registration under certain circumstances; specifying a
  123         restriction on expired registrations; amending s.
  124         627.351, F.S.; revising requirements for membership of
  125         the Florida Medical Malpractice Joint Underwriting
  126         Association; providing construction; specifying a
  127         requirement for filling vacancies; authorizing the
  128         Chief Financial Officer to remove board members under
  129         certain circumstances; providing requirements for, and
  130         restrictions on, board members; providing penalties;
  131         amending s. 627.4215, F.S.; revising the applicability
  132         of disclosure requirements for health insurers
  133         relating to behavioral health insurance coverage;
  134         amending s. 627.7015, F.S.; providing that a disputed
  135         property insurance claim is not eligible for mediation
  136         until certain conditions are met; providing that fees
  137         for a rescheduled mediation conference be assessed by
  138         the department rather than the administrator;
  139         authorizing the department to suspend an insurer’s
  140         authority to appoint licensees under certain
  141         circumstances; amending s. 627.7074, F.S.; authorizing
  142         the department to designate, by written contract or
  143         agreement, an entity or a person to administer the
  144         alternative dispute resolution process for sinkhole
  145         insurance claims; amending s. 627.745, F.S.; revising
  146         requirements and procedures for the mediation of
  147         personal injury claims under a motor vehicle insurance
  148         policy; requiring the department to adopt specified
  149         rules relating to a motor vehicle claims insurance
  150         mediation program; authorizing the department to
  151         designate a person or entity to serve as
  152         administrator; amending s. 631.141, F.S.; authorizing
  153         the department in receivership proceedings to take
  154         certain actions as a domiciliary receiver; amending s.
  155         631.252, F.S.; revising conditions under which
  156         policies and contracts of insolvent insurers are
  157         canceled; amending ss. 631.56, 631.716, 631.816, and
  158         631.912, F.S.; revising membership eligibility
  159         requirements for the Florida Insurance Guaranty
  160         Association, the Florida Life and Health Insurance
  161         Guaranty Association, the Florida Health Maintenance
  162         Organization Consumer Assistance Plan, and the Florida
  163         Workers’ Compensation Insurance Guaranty Association,
  164         Incorporated, respectively; providing construction;
  165         authorizing the Chief Financial Officer to remove a
  166         board member under certain circumstances; specifying
  167         requirements for, and restrictions on, board members;
  168         providing penalties; creating s. 633.1423, F.S.;
  169         defining the term “organization”; authorizing the
  170         Division of State Fire Marshal to establish a direct
  171         support organization; specifying the purpose of and
  172         requirements for the organization; specifying
  173         requirements for the organization’s written contract
  174         and board of directors; providing requirements for the
  175         use of property, annual budgets and reports, an annual
  176         audit, and the division’s receipt of proceeds;
  177         authorizing moneys received to be held in a depository
  178         account; providing for future repeal; amending s.
  179         634.181, F.S.; adding grounds for compulsory
  180         disciplinary actions by the department against motor
  181         vehicle service agreement salespersons; requiring the
  182         department to immediately temporarily suspend a
  183         license or appointment under certain circumstances;
  184         prohibiting a person from transacting insurance
  185         business after such suspension; authorizing the
  186         department to adopt rules; amending s. 634.191, F.S.;
  187         revising grounds for discretionary disciplinary
  188         actions by the department against motor vehicle
  189         service agreement salespersons; requiring salespersons
  190         to submit certain documents to the department;
  191         authorizing the department to adopt rules; amending s.
  192         634.320, F.S.; revising grounds for compulsory
  193         disciplinary actions by the department against home
  194         warranty association sales representatives; requiring
  195         the department to immediately temporarily suspend a
  196         license or appointment under certain circumstances;
  197         prohibiting a person from transacting insurance
  198         business after such suspension; authorizing the
  199         department to adopt rules; amending s. 634.321, F.S.;
  200         revising grounds for discretionary disciplinary
  201         actions by the department against home warranty
  202         association sales representatives; authorizing the
  203         department to adopt rules; amending s. 634.419, F.S.;
  204         providing that specified home solicitation sale
  205         requirements do not apply to certain persons relating
  206         to the solicitation of service warranty or related
  207         service or product sales; amending s. 634.422, F.S.;
  208         revising grounds for compulsory disciplinary actions
  209         by the department against service warranty association
  210         sales representatives; requiring the department to
  211         immediately temporarily suspend a license or
  212         appointment under certain circumstances; prohibiting a
  213         person from transacting insurance business after such
  214         suspension; authorizing the department to adopt rules;
  215         amending s. 634.423, F.S.; revising grounds for
  216         discretionary disciplinary actions by the department
  217         against service warranty association sales
  218         representatives; authorizing the department to adopt
  219         rules; reordering and amending s. 648.25, F.S.;
  220         defining and redefining terms; amending s. 648.26,
  221         F.S.; authorizing certain actions by the department or
  222         the Office of Insurance Regulation relating to certain
  223         confidential records relating to bail bond agents;
  224         amending s. 648.27, F.S.; deleting a provision
  225         relating to the continuance of a temporary bail bond
  226         agent license; amending s. 648.285, F.S.; revising
  227         requirements, conditions, and procedures for a bail
  228         bond agency license; providing applicability;
  229         conforming a provision to changes made by the act;
  230         amending s. 648.30, F.S.; revising requirements and
  231         conditions for the licensure and appointment as a bail
  232         bond agent or bail bond agency; conforming a provision
  233         to changes made by the act; amending s. 648.31, F.S.;
  234         specifying that there is no fee for the issuance of
  235         any appointment to a bail bond agency; conforming a
  236         provision to changes made by the act; amending s.
  237         648.34, F.S.; revising qualifications for a bail bond
  238         agent license; conforming a provision to changes made
  239         by the act; amending s. 648.355, F.S.; deleting
  240         provisions relating to temporary licenses as a limited
  241         surety agent or professional bail bond agent;
  242         specifying requirements for an individual licensed as
  243         a temporary bail bond agent to qualify for bail bond
  244         agent license; prohibiting the department from issuing
  245         a temporary bail bond agent license beginning on a
  246         specified date; providing construction relating to
  247         existing temporary licenses; amending s. 648.382,
  248         F.S.; revising requirements for the appointment of
  249         bail bond agents or bail bond agencies; conforming a
  250         provision to changes made by the act; amending s.
  251         648.386, F.S.; defining the term “classroom
  252         instruction”; revising requirements for approval and
  253         certification as an approved limited surety agent and
  254         professional bail bond agent continuing education
  255         school; amending s. 648.387, F.S.; renaming primary
  256         bail bond agents as bail bond agents in charge;
  257         revising the department’s disciplinary authority;
  258         revising prohibited actions and the applicability of
  259         such prohibitions; providing for the automatic
  260         expiration of a bail bond agency’s license under
  261         certain circumstances; creating s. 648.3875, F.S.;
  262         providing requirements for applying for designation as
  263         a bail bond agent in charge; amending s. 648.39, F.S.;
  264         revising applicability of provisions relating to
  265         termination of appointments of certain agents and
  266         agencies; repealing s. 648.41, F.S., relating to
  267         termination of appointment of temporary bail bond
  268         agents; amending s. 648.42, F.S.; conforming a
  269         provision to changes made by the act; making a
  270         technical change; amending s. 648.44, F.S.; revising
  271         applicability of prohibited acts; revising and
  272         specifying prohibited acts of bail bond agents and
  273         bail bond agencies; conforming provisions to changes
  274         made by the act; amending s. 648.441, F.S.; revising
  275         applicability of a prohibition against furnishing
  276         supplies to an unlicensed bail bond agent; amending s.
  277         648.46, F.S.; authorizing certain actions by the
  278         department or the office relating to certain
  279         confidential records relating to bail bond agents;
  280         amending s. 648.50, F.S.; revising applicability of
  281         provisions relating to disciplinary actions taken by
  282         the department; conforming provisions to changes made
  283         by the act; amending s. 717.135, F.S.; revising a
  284         requirement for, and a prohibition on, claimants’
  285         representatives relating to unclaimed property
  286         recovery agreements and purchase agreements; providing
  287         construction; amending s. 843.021, F.S.; revising a
  288         defense to an unlawful possession of a concealed
  289         handcuff key; amending ss. 631.152, 631.398, and
  290         903.09, F.S.; conforming cross-references; ratifying
  291         specified rules of the department; providing
  292         construction; providing effective dates.
  293          
  294  Be It Enacted by the Legislature of the State of Florida:
  295  
  296         Section 1. Paragraph (e) of subsection (2) and subsection
  297  (6) of section 20.121, Florida Statutes, are amended to read:
  298         20.121 Department of Financial Services.—There is created a
  299  Department of Financial Services.
  300         (2) DIVISIONS.—The Department of Financial Services shall
  301  consist of the following divisions and office:
  302         (e) The Division of Investigative and Forensic Services,
  303  which shall function as a criminal justice agency for purposes
  304  of ss. 943.045-943.08. The division may initiate and conduct
  305  investigations into any matter under the jurisdiction of the
  306  Chief Financial Officer and Fire Marshal within or outside of
  307  this state as it deems necessary. If, during an investigation,
  308  the division has reason to believe that any criminal law of this
  309  state or the United States has or may have been violated, it
  310  shall refer any records tending to show such violation to state
  311  or federal law enforcement and, if applicable, federal or
  312  prosecutorial agencies and shall provide investigative
  313  assistance to those agencies as appropriate required. The
  314  division shall include the following bureaus and office:
  315         1. The Bureau of Forensic Services;
  316         2. The Bureau of Fire, Arson, and Explosives
  317  Investigations;
  318         3. The Office of Fiscal Integrity, which shall have a
  319  separate budget;
  320         4. The Bureau of Insurance Fraud; and
  321         5. The Bureau of Workers’ Compensation Fraud.
  322         (6)STRATEGIC MARKETS RESEARCH AND ASSESSMENT UNIT.—The
  323  Strategic Markets Research and Assessment Unit is established
  324  within the Department of Financial Services. The Chief Financial
  325  Officer or his or her designee shall report on September 1,
  326  2008, and quarterly thereafter, to the Cabinet, the President of
  327  the Senate, and the Speaker of the House of Representatives on
  328  the status of the state’s financial services markets. At a
  329  minimum, the report must include a summary of issues, trends,
  330  and threats that broadly impact the condition of the financial
  331  services industries, along with the effect of such conditions on
  332  financial institutions, the securities industries, other
  333  financial entities, and the credit market. The Chief Financial
  334  Officer shall also provide findings and recommendations
  335  regarding regulatory and policy changes to the Cabinet, the
  336  President of the Senate, and the Speaker of the House of
  337  Representatives.
  338         Section 2. Subsections (2) and (4), paragraph (a) of
  339  subsection (8), and subsection (12) of section 112.215, Florida
  340  Statutes, are amended to read:
  341         112.215 Government employees; deferred compensation
  342  program.—
  343         (2) For the purposes of this section, the term “government
  344  employee” means any person employed, whether appointed, elected,
  345  or under contract, by providing services for the state or any
  346  governmental unit of the state, including, but not limited to,;
  347  any state agency; any or county, municipality, or other
  348  political subdivision of the state; any special district or
  349  water management district, as the terms are defined in s.
  350  189.012 municipality; any state university or Florida College
  351  System institution, as the terms are defined in s. 1000.21(6)
  352  and (3), respectively board of trustees; or any constitutional
  353  county officer under s. 1(d), Art. VIII of the State
  354  Constitution for which compensation or statutory fees are paid.
  355         (4)(a) The Chief Financial Officer, with the approval of
  356  the State Board of Administration, shall establish a state such
  357  plan or plans of deferred compensation for government state
  358  employees and may include persons employed by a state university
  359  as defined in s. 1000.21, a special district as defined in s.
  360  189.012, or a water management district as defined in s.
  361  189.012, including all such investment vehicles or products
  362  incident thereto, as may be available through, or offered by,
  363  qualified companies or persons, and may approve one or more such
  364  plans for implementation by and on behalf of the state and its
  365  agencies and employees.
  366         (b) If the Chief Financial Officer deems it advisable, he
  367  or she shall have the power, with the approval of the State
  368  Board of Administration, to create a trust or other special
  369  funds for the segregation of funds or assets resulting from
  370  compensation deferred at the request of government employees
  371  participating in of the state plan or its agencies and for the
  372  administration of such program.
  373         (c) The Chief Financial Officer, with the approval of the
  374  State Board of Administration, may delegate responsibility for
  375  administration of the state plan to a person the Chief Financial
  376  Officer determines to be qualified, compensate such person, and,
  377  directly or through such person or pursuant to a collective
  378  bargaining agreement, contract with a private corporation or
  379  institution to provide such services as may be part of any such
  380  plan or as may be deemed necessary or proper by the Chief
  381  Financial Officer or such person, including, but not limited to,
  382  providing consolidated billing, individual and collective
  383  recordkeeping and accountings, asset purchase, control, and
  384  safekeeping, and direct disbursement of funds to employees or
  385  other beneficiaries. The Chief Financial Officer may authorize a
  386  person, private corporation, or institution to make direct
  387  disbursement of funds under the state plan to an employee or
  388  other beneficiary.
  389         (d) In accordance with such approved plan, and upon
  390  contract or agreement with an eligible government employee,
  391  deferrals of compensation may be accomplished by payroll
  392  deductions made by the appropriate officer or officers of the
  393  state, with such funds being thereafter held and administered in
  394  accordance with the plan.
  395         (e) The administrative costs of the deferred compensation
  396  plan must be wholly or partially self-funded. Fees for such
  397  self-funding of the plan shall be paid by investment providers
  398  and may be recouped from their respective plan participants.
  399  Such fees shall be deposited in the Deferred Compensation Trust
  400  Fund.
  401         (8)(a) There is created a Deferred Compensation Advisory
  402  Council composed of eight seven members.
  403         1. One member shall be appointed by the Speaker of the
  404  House of Representatives and the President of the Senate jointly
  405  and shall be an employee of the legislative branch.
  406         2. One member shall be appointed by the Chief Justice of
  407  the Supreme Court and shall be an employee of the judicial
  408  branch.
  409         3. One member shall be appointed by the chair of the Public
  410  Employees Relations Commission and shall be a nonexempt public
  411  employee.
  412         4. The remaining five four members shall be employed by the
  413  executive branch and shall be appointed as follows:
  414         a. One member shall be appointed by the Chancellor of the
  415  State University System and shall be an employee of the
  416  university system.
  417         b. One member shall be appointed by the Chief Financial
  418  Officer and shall be an employee of the Chief Financial Officer.
  419         c. One member shall be appointed by the Governor and shall
  420  be an employee of the executive branch.
  421         d. One member shall be appointed by the Executive Director
  422  of the State Board of Administration and shall be an employee of
  423  the State Board of Administration.
  424         e.One member shall be appointed by the Chancellor of the
  425  Florida College System and shall be an employee of the Florida
  426  College System.
  427         (12) The Chief Financial Officer may adopt any rule
  428  necessary to administer and implement this act with respect to
  429  the state deferred compensation plan or plans for state
  430  employees and persons employed by a state university as defined
  431  in s. 1000.21, a special district as defined in s. 189.012, or a
  432  water management district as defined in s. 189.012.
  433         Section 3. Section 215.55952, Florida Statutes, is amended
  434  to read:
  435         215.55952 Triennial Annual report on economic impact of a
  436  1-in-100-year hurricane.—The Chief Financial Officer shall
  437  provide a report on the economic impact on the state of a 1-in
  438  100-year hurricane to the Governor, the President of the Senate,
  439  and the Speaker of the House of Representatives by March 1,
  440  2025, and of each triennial year thereafter. The report shall
  441  include an estimate of the short-term and long-term fiscal
  442  impacts of such a storm on Citizens Property Insurance
  443  Corporation, the Florida Hurricane Catastrophe Fund, the private
  444  insurance and reinsurance markets, the state economy, and the
  445  state debt. The report shall also include an analysis of the
  446  average premium increase to fund a 1-in-100-year hurricane event
  447  and list the average cost, in both a percentage and dollar
  448  amount, impact to consumers on a county-level basis. The report
  449  may also include recommendations by the Chief Financial Officer
  450  for preparing for such a hurricane and reducing the economic
  451  impact of such a hurricane on the state. In preparing the
  452  analysis, the Chief Financial Officer shall coordinate with and
  453  obtain data from the Office of Insurance Regulation, Citizens
  454  Property Insurance Corporation, the Florida Hurricane
  455  Catastrophe Fund, the Florida Commission on Hurricane Loss
  456  Projection Methodology, the State Board of Administration, the
  457  Office of Economic and Demographic Research, and other state
  458  agencies.
  459         Section 4. Subsection (1) of section 274.01, Florida
  460  Statutes, is amended to read:
  461         274.01 Definitions.—The following words as used in this act
  462  have the meanings set forth in the below subsections, unless a
  463  different meaning is required by the context:
  464         (1) “Governmental unit” means the governing board,
  465  commission, or authority of a county, a county agency, a
  466  municipality, a special district as defined in s. 189.012 or
  467  taxing district of the state, or the sheriff of the county.
  468         Section 5. Paragraph (c) of subsection (9) and subsections
  469  (12) and (14) of section 440.13, Florida Statutes, are amended
  470  to read:
  471         440.13 Medical services and supplies; penalty for
  472  violations; limitations.—
  473         (9) EXPERT MEDICAL ADVISORS.—
  474         (c) If there is disagreement in the opinions of the health
  475  care providers, if two health care providers disagree on medical
  476  evidence supporting the employee’s complaints or the need for
  477  additional medical treatment, or if two health care providers
  478  disagree that the employee is able to return to work, the
  479  department may, and the judge of compensation claims may shall,
  480  upon his or her own motion or within 15 days after receipt of a
  481  written request by either the injured employee, the employer, or
  482  the carrier, order the injured employee to be evaluated by an
  483  expert medical advisor. The injured employee and the employer or
  484  carrier may agree on the health care provider to serve as an
  485  expert medical advisor. If the parties do not agree, the judge
  486  of compensation claims shall select an expert medical advisor
  487  from the department’s list of certified expert medical advisors.
  488  If a certified medical advisor within the relevant medical
  489  specialty is unavailable, the judge of compensation claims shall
  490  appoint any otherwise qualified health care provider to serve as
  491  an expert medical advisor without obtaining the department’s
  492  certification. The opinion of the expert medical advisor is
  493  presumed to be correct unless there is clear and convincing
  494  evidence to the contrary as determined by the judge of
  495  compensation claims. The expert medical advisor appointed to
  496  conduct the evaluation shall have free and complete access to
  497  the medical records of the employee. An employee who fails to
  498  report to and cooperate with such evaluation forfeits
  499  entitlement to compensation during the period of failure to
  500  report or cooperate.
  501         (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
  502  REIMBURSEMENT ALLOWANCES.—
  503         (a) A three-member panel is created, consisting of the
  504  Chief Financial Officer, or the Chief Financial Officer’s
  505  designee, and two members to be appointed by the Governor,
  506  subject to confirmation by the Senate, one member who, on
  507  account of present or previous vocation, employment, or
  508  affiliation, shall be classified as a representative of
  509  employers, the other member who, on account of previous
  510  vocation, employment, or affiliation, shall be classified as a
  511  representative of employees. The panel shall determine statewide
  512  schedules of maximum reimbursement allowances for medically
  513  necessary treatment, care, and attendance provided by
  514  physicians, hospitals and, ambulatory surgical centers, work
  515  hardening programs, pain programs, and durable medical
  516  equipment. The maximum reimbursement allowances for inpatient
  517  hospital care shall be based on a schedule of per diem rates, to
  518  be approved by the three-member panel no later than March 1,
  519  1994, to be used in conjunction with a precertification manual
  520  as determined by the department, including maximum hours in
  521  which an outpatient may remain in observation status, which
  522  shall not exceed 23 hours. All compensable charges for hospital
  523  outpatient care shall be reimbursed at 75 percent of usual and
  524  customary charges, except as otherwise provided by this
  525  subsection. Annually, the three-member panel shall adopt
  526  schedules of maximum reimbursement allowances for physicians,
  527  hospital inpatient care, hospital outpatient care, and
  528  ambulatory surgical centers, work-hardening programs, and pain
  529  programs. A An individual physician, hospital or an, ambulatory
  530  surgical center, pain program, or work-hardening program shall
  531  be reimbursed either the agreed-upon contract price or the
  532  maximum reimbursement allowance in the appropriate schedule.
  533         (b) It is the intent of the Legislature to increase the
  534  schedule of maximum reimbursement allowances for selected
  535  physicians effective January 1, 2004, and to pay for the
  536  increases through reductions in payments to hospitals. Revisions
  537  developed pursuant to this subsection are limited to the
  538  following:
  539         1. Payments for outpatient physical, occupational, and
  540  speech therapy provided by hospitals shall be reduced to the
  541  schedule of maximum reimbursement allowances for these services
  542  which applies to nonhospital providers.
  543         (c)2. Payments for scheduled outpatient nonemergency
  544  radiological and clinical laboratory services that are not
  545  provided in conjunction with a surgical procedure shall be
  546  reduced to the schedule of maximum reimbursement allowances for
  547  these services which applies to nonhospital providers.
  548         (d)3. Outpatient reimbursement for scheduled surgeries
  549  shall be reduced from 75 percent of charges to 60 percent of
  550  charges.
  551         (e)1.By July 1 of each year, the department shall notify
  552  carriers and self-insurers of the physician and nonhospital
  553  services schedule of maximum reimbursement allowances. The
  554  notice must include publication of this schedule of maximum
  555  reimbursement allowances on the division’s website. This
  556  schedule is not subject to approval by the three-member panel
  557  and does not include reimbursement for prescription medication.
  558         2.Subparagraph 1. shall take effect January 1, following
  559  the July 1, 2024, notice of the physician and nonhospital
  560  services schedule of maximum reimbursement allowances which the
  561  department provides to carriers and self-insurers.
  562         (f)4. Maximum reimbursement for a physician licensed under
  563  chapter 458 or chapter 459 shall be increased to 110 percent of
  564  the reimbursement allowed by Medicare, using appropriate codes
  565  and modifiers or the medical reimbursement level adopted by the
  566  three-member panel as of January 1, 2003, whichever is greater.
  567         (g)5. Maximum reimbursement for surgical procedures shall
  568  be increased to 140 percent of the reimbursement allowed by
  569  Medicare or the medical reimbursement level adopted by the
  570  three-member panel as of January 1, 2003, whichever is greater.
  571         (h)(c) As to reimbursement for a prescription medication,
  572  the reimbursement amount for a prescription shall be the average
  573  wholesale price plus $4.18 for the dispensing fee. For
  574  repackaged or relabeled prescription medications dispensed by a
  575  dispensing practitioner as provided in s. 465.0276, the fee
  576  schedule for reimbursement shall be 112.5 percent of the average
  577  wholesale price, plus $8.00 for the dispensing fee. For purposes
  578  of this subsection, the average wholesale price shall be
  579  calculated by multiplying the number of units dispensed times
  580  the per-unit average wholesale price set by the original
  581  manufacturer of the underlying drug dispensed by the
  582  practitioner, based upon the published manufacturer’s average
  583  wholesale price published in the Medi-Span Master Drug Database
  584  as of the date of dispensing. All pharmaceutical claims
  585  submitted for repackaged or relabeled prescription medications
  586  must include the National Drug Code of the original
  587  manufacturer. Fees for pharmaceuticals and pharmaceutical
  588  services shall be reimbursable at the applicable fee schedule
  589  amount except where the employer or carrier, or a service
  590  company, third party administrator, or any entity acting on
  591  behalf of the employer or carrier directly contracts with the
  592  provider seeking reimbursement for a lower amount.
  593         (i)(d) Reimbursement for all fees and other charges for
  594  such treatment, care, and attendance, including treatment, care,
  595  and attendance provided by any hospital or other health care
  596  provider, ambulatory surgical center, work-hardening program, or
  597  pain program, must not exceed the amounts provided by the
  598  uniform schedule of maximum reimbursement allowances as
  599  determined by the panel or as otherwise provided in this
  600  section. This subsection also applies to independent medical
  601  examinations performed by health care providers under this
  602  chapter. In determining the uniform schedule, the panel shall
  603  first approve the data which it finds representative of
  604  prevailing charges in the state for similar treatment, care, and
  605  attendance of injured persons. Each health care provider, health
  606  care facility, ambulatory surgical center, work-hardening
  607  program, or pain program receiving workers’ compensation
  608  payments shall maintain records verifying their usual charges.
  609  In establishing the uniform schedule of maximum reimbursement
  610  allowances, the panel must consider:
  611         1. The levels of reimbursement for similar treatment, care,
  612  and attendance made by other health care programs or third-party
  613  providers;
  614         2. The impact upon cost to employers for providing a level
  615  of reimbursement for treatment, care, and attendance which will
  616  ensure the availability of treatment, care, and attendance
  617  required by injured workers; and
  618         3. The financial impact of the reimbursement allowances
  619  upon health care providers and health care facilities, including
  620  trauma centers as defined in s. 395.4001, and its effect upon
  621  their ability to make available to injured workers such
  622  medically necessary remedial treatment, care, and attendance.
  623  The uniform schedule of maximum reimbursement allowances must be
  624  reasonable, must promote health care cost containment and
  625  efficiency with respect to the workers’ compensation health care
  626  delivery system, and must be sufficient to ensure availability
  627  of such medically necessary remedial treatment, care, and
  628  attendance to injured workers; and
  629         4.The most recent average maximum allowable rate of
  630  increase for hospitals determined by the Health Care Board under
  631  chapter 408.
  632         (j)(e) In addition to establishing the uniform schedule of
  633  maximum reimbursement allowances, the panel shall:
  634         1. Take testimony, receive records, and collect data to
  635  evaluate the adequacy of the workers’ compensation fee schedule,
  636  nationally recognized fee schedules and alternative methods of
  637  reimbursement to health care providers and health care
  638  facilities for inpatient and outpatient treatment and care.
  639         2. Survey health care providers and health care facilities
  640  to determine the availability and accessibility of workers’
  641  compensation health care delivery systems for injured workers.
  642         3. Survey carriers to determine the estimated impact on
  643  carrier costs and workers’ compensation premium rates by
  644  implementing changes to the carrier reimbursement schedule or
  645  implementing alternative reimbursement methods.
  646         4. Submit recommendations on or before January 15, 2017,
  647  and biennially thereafter, to the President of the Senate and
  648  the Speaker of the House of Representatives on methods to
  649  improve the workers’ compensation health care delivery system.
  650  
  651  The department, as requested, shall provide data to the panel,
  652  including, but not limited to, utilization trends in the
  653  workers’ compensation health care delivery system. The
  654  department shall provide the panel with an annual report
  655  regarding the resolution of medical reimbursement disputes and
  656  any actions pursuant to subsection (8). The department shall
  657  provide administrative support and service to the panel to the
  658  extent requested by the panel. For prescription medication
  659  purchased under the requirements of this subsection, a
  660  dispensing practitioner shall not possess such medication unless
  661  payment has been made by the practitioner, the practitioner’s
  662  professional practice, or the practitioner’s practice management
  663  company or employer to the supplying manufacturer, wholesaler,
  664  distributor, or drug repackager within 60 days of the dispensing
  665  practitioner taking possession of that medication.
  666         (14)PRACTICE PARAMETERS.—The practice parameters and
  667  protocols mandated under this chapter shall be the practice
  668  parameters and protocols adopted by the United States Agency for
  669  Healthcare Research and Quality in effect on January 1, 2003.
  670         Section 6. Effective January 1, 2024, subsection (2) of
  671  section 440.385, Florida Statutes, is amended to read:
  672         440.385 Florida Self-Insurers Guaranty Association,
  673  Incorporated.—
  674         (2) BOARD OF DIRECTORS.—The board of directors of the
  675  association shall consist of nine persons and shall be organized
  676  as established in the plan of operation. Each director must All
  677  board members shall be experienced in self-insurance in this
  678  state. Each director shall serve for a 4-year term and may be
  679  reappointed. Appointments after January 1, 2002, shall be made
  680  by the department upon recommendation of members of the
  681  association or other persons with experience in self-insurance
  682  as determined by the Chief Financial Officer. These appointments
  683  are deemed to be within the scope of the exemption provided in
  684  s. 112.313(7)(b). Any vacancy on the board shall be filled for
  685  the remaining period of the term in the same manner as
  686  appointments other than initial appointments are made. Each
  687  director shall be reimbursed for expenses incurred in carrying
  688  out the duties of the board on behalf of the association.
  689         (a)The Chief Financial Officer may remove a director from
  690  office for misconduct, malfeasance, misfeasance, or neglect of
  691  duty. Any vacancy so created shall be filled as provided in this
  692  subsection.
  693         (b)Directors are subject to the code of ethics under part
  694  III of chapter 112, including, but not limited to, the code of
  695  ethics and public disclosure and reporting of financial
  696  interests, pursuant to s. 112.3145. For purposes of applying
  697  part III of chapter 112 to activities of members of the board of
  698  directors, those persons are considered public officers and the
  699  association is considered their agency. Notwithstanding s.
  700  112.3143(2), a director may not vote on any measure that he or
  701  she knows would inure to his or her special private gain or
  702  loss; that he or she knows would inure to the special private
  703  gain or loss of any principal by which he or she is retained,
  704  other than an agency as defined in s. 112.312; or that he or she
  705  knows would inure to the special private gain or loss of a
  706  relative or business associate of the public officer. Before the
  707  vote is taken, such director shall publicly state to the board
  708  the nature of his or her interest in the matter from which he or
  709  she is abstaining from voting and, within 15 days after the vote
  710  occurs, disclose the nature of his or her interest as a public
  711  record in a memorandum filed with the person responsible for
  712  recording the minutes of the meeting, who shall incorporate the
  713  memorandum in the minutes.
  714         (c)Notwithstanding s. 112.3148, s. 112.3149, or any other
  715  law, an employee of the association or a director may not
  716  knowingly accept, directly or indirectly, any gift or
  717  expenditure from a person or an entity, or an employee or a
  718  representative of such person or entity, which has a contractual
  719  relationship with the association or which is under
  720  consideration for a contract.
  721         (d)A director who fails to comply with paragraph (b) or
  722  paragraph (c) is subject to the penalties provided under ss.
  723  112.317 and 112.3173.
  724         Section 7. Present subsections (62) through (77) and (78)
  725  of section 497.005, Florida Statutes, are redesignated as
  726  subsections (63) through (78) and (80), respectively, a new
  727  subsection (62) and subsection (79) are added to that section,
  728  and subsections (9) and (61) of that section are amended, to
  729  read:
  730         497.005 Definitions.—As used in this chapter, the term:
  731         (9) “Burial service” or “service” means any service offered
  732  or provided in connection with the final disposition,
  733  memorialization, interment, entombment, or inurnment of human
  734  remains or cremated remains which is required to be offered or
  735  provided by an individual or entity licensed under this chapter.
  736         (61) “Preneed contract” means any arrangement or method, of
  737  which the provider of funeral merchandise or services has actual
  738  knowledge, whereby any person agrees to furnish funeral
  739  merchandise or service in the future.
  740         (62) “Preneed contract” means any arrangement or method for
  741  which the provider of funeral merchandise or services receives
  742  any payment in advance for funeral or burial merchandise and
  743  services after the death of the contract beneficiary. The term
  744  excludes a transportation protection agreement and any payments
  745  received on a transportation protection agreement.
  746         (79)“Transportation protection agreement” means an
  747  agreement that exclusively provides or arranges for services
  748  related to the preparation for the purpose of transportation and
  749  subsequent transportation of human remains or cremated remains.
  750  The Florida Insurance Code, as defined in s. 624.01, does not
  751  apply to any transportation protection agreement sold by any
  752  licensee under this chapter.
  753         Section 8. Subsection (1) of section 624.1265, Florida
  754  Statutes, is amended to read:
  755         624.1265 Nonprofit religious organization exemption;
  756  authority; notice.—
  757         (1) A nonprofit religious organization is not subject to
  758  the requirements of the Florida Insurance Code if the nonprofit
  759  religious organization:
  760         (a) Qualifies under Title 26, s. 501 of the Internal
  761  Revenue Code of 1986, as amended;
  762         (b) Limits its participants to those members who share a
  763  common set of ethical or religious beliefs;
  764         (c) Acts as a facilitator among participants who have
  765  financial, physical, or medical needs to assist those with
  766  financial, physical, or medical needs in accordance with
  767  criteria established by the nonprofit religious organization;
  768         (d) Provides for the financial or medical needs of a
  769  participant through contributions from other participants, or
  770  through payments directly from one participant to another
  771  participant;
  772         (e) Provides amounts that participants may contribute, with
  773  no assumption of risk and no promise to pay:
  774         1. Among the participants; or
  775         2. By the nonprofit religious organization to the
  776  participants;
  777         (f) Provides a monthly accounting to the participants of
  778  the total dollar amount of qualified needs actually shared in
  779  the previous month in accordance with criteria established by
  780  the nonprofit religious organization; and
  781         (g) Conducts an annual audit that is performed by an
  782  independent certified public accounting firm in accordance with
  783  generally accepted accounting principles and that is made
  784  available to the public by providing a copy upon request or by
  785  posting on the nonprofit religious organization’s website; and
  786         (h)Does not market or sell health plans by agents licensed
  787  by the department under chapter 626.
  788         Section 9. Subsection (25) of section 624.501, Florida
  789  Statutes, is amended to read:
  790         624.501 Filing, license, appointment, and miscellaneous
  791  fees.—The department, commission, or office, as appropriate,
  792  shall collect in advance, and persons so served shall pay to it
  793  in advance, fees, licenses, and miscellaneous charges as
  794  follows:
  795         (25) Reinsurance intermediary:
  796         (a)Application filing and license fee	$50.00
  797         (b) Original appointment and biennial renewal or
  798  continuation thereof, appointment fee	$60.00
  799         Section 10. Subsection (5) of section 626.015, Florida
  800  Statutes, is amended to read:
  801         626.015 Definitions.—As used in this part:
  802         (5) “Association” includes the Florida Association of
  803  Insurance Agents (FAIA), the National Association of Insurance
  804  and Financial Advisors (NAIFA), the National Association of
  805  Benefits and Insurance Professionals Florida Chapter (NABIP
  806  Florida) Florida Association of Health Underwriters (FAHU), the
  807  Latin American Association of Insurance Agencies (LAAIA), the
  808  Florida Association of Public Insurance Adjusters (FAPIA), the
  809  Florida Bail Agents Association (FBAA), or the Professional Bail
  810  Agents of the United States (PBUS).
  811         Section 11. Subsection (4) of section 626.171, Florida
  812  Statutes, is amended to read:
  813         626.171 Application for license as an agent, customer
  814  representative, adjuster, service representative, or reinsurance
  815  intermediary.—
  816         (4) An applicant for a license issued by the department
  817  under this chapter must submit a set of the individual
  818  applicant’s fingerprints, or, if the applicant is not an
  819  individual, a set of the fingerprints of the sole proprietor,
  820  majority owner, partners, officers, and directors, to the
  821  department and must pay the fingerprint processing fee set forth
  822  in s. 624.501. Fingerprints must be processed in accordance with
  823  s. 624.34 and used to investigate the applicant’s qualifications
  824  pursuant to s. 626.201. The fingerprints must be taken by a law
  825  enforcement agency, designated examination center, or other
  826  department-approved entity. The department shall require all
  827  designated examination centers to have fingerprinting equipment
  828  and to take fingerprints from any applicant or prospective
  829  applicant who pays the applicable fee. The department may not
  830  approve an application for licensure as an agent, customer
  831  service representative, adjuster, service representative, or
  832  reinsurance intermediary if fingerprints have not been
  833  submitted.
  834         Section 12. Paragraph (c) of subsection (1) of section
  835  626.173, Florida Statutes, is amended to read:
  836         626.173 Insurance agency closure; cancellation of
  837  licenses.—
  838         (1) If a licensed insurance agency permanently ceases the
  839  transacting of insurance or ceases the transacting of insurance
  840  for more than 30 days, the agent in charge, the director of the
  841  agency, or other officer listed on the original application for
  842  licensure must, within 35 days after the agency first ceases the
  843  transacting of insurance, do all of the following:
  844         (c) Notify all policyholders currently insured by a policy
  845  written, produced, or serviced by the agency of the agency’s
  846  cessation of operations; the date on which operations ceased;
  847  and the identity of the agency or agent to which the agency’s
  848  current book of business has been transferred or, if no transfer
  849  has occurred, a statement directing the policyholder to contact
  850  the insurance company for assistance in locating a licensed
  851  agent to service the policy. This paragraph does not apply to
  852  title insurance, life insurance, or annuity contracts.
  853         Section 13. Subsection (8) of section 626.207, Florida
  854  Statutes, is amended to read:
  855         626.207 Disqualification of applicants and licensees;
  856  penalties against licensees; rulemaking authority.—
  857         (8) The department shall adopt rules establishing specific
  858  penalties against licensees in accordance with ss. 626.641 and
  859  626.651 for violations of s. 626.112(7) or (9), s. 626.611, s.
  860  626.6115, s. 626.621, s. 626.6215, s. 626.7451, s. 626.8437, s.
  861  626.844, s. 626.8695, s. 626.8697, s. 626.8698, s. 626.935, s.
  862  634.181, s. 634.191, s. 634.320, s. 634.321, s. 634.422, s.
  863  634.423, s. 642.041, or s. 642.043. The purpose of the
  864  revocation or suspension is to provide a sufficient penalty to
  865  deter future violations of the Florida Insurance Code. The
  866  imposition of a revocation or the length of suspension shall be
  867  based on the type of conduct and the probability that the
  868  propensity to commit further illegal conduct has been overcome
  869  at the time of eligibility for relicensure. The length of
  870  suspension may be adjusted based on aggravating or mitigating
  871  factors, established by rule and consistent with this purpose.
  872         Section 14. Paragraph (j) of subsection (2) of section
  873  626.221, Florida Statutes, is amended to read:
  874         626.221 Examination requirement; exemptions.—
  875         (2) However, an examination is not necessary for any of the
  876  following:
  877         (j) An applicant for license as an all-lines adjuster who
  878  has the designation of Accredited Claims Adjuster (ACA) from a
  879  regionally accredited postsecondary institution in this state;
  880  Certified All Lines Adjuster (CALA) from Kaplan Financial
  881  Education; Associate in Claims (AIC) from the Insurance
  882  Institute of America; Professional Claims Adjuster (PCA) from
  883  the Professional Career Institute; Professional Property
  884  Insurance Adjuster (PPIA) from the HurriClaim Training Academy;
  885  Certified Adjuster (CA) from ALL LINES Training; Certified
  886  Claims Adjuster (CCA) from AE21 Incorporated; Claims Adjuster
  887  Certified Professional (CACP) from WebCE, Inc.; Accredited
  888  Insurance Claims Specialist (AICS) from Encore Claim Services;
  889  Professional in Claims (PIC) from 2021 Training, LLC; or
  890  Universal Claims Certification (UCC) from Claims and Litigation
  891  Management Alliance (CLM) whose curriculum has been approved by
  892  the department and which includes comprehensive analysis of
  893  basic property and casualty lines of insurance and testing at
  894  least equal to that of standard department testing for the all
  895  lines adjuster license. The department shall adopt rules
  896  establishing standards for the approval of curriculum.
  897         Section 15. Paragraphs (c) and (f) of subsection (3) of
  898  section 626.2815, Florida Statutes, are amended to read:
  899         626.2815 Continuing education requirements.—
  900         (3) Each licensee except a title insurance agent must
  901  complete a 4-hour update course every 2 years which is specific
  902  to the license held by the licensee. The course must be
  903  developed and offered by providers and approved by the
  904  department. The content of the course must address all lines of
  905  insurance for which examination and licensure are required and
  906  include the following subject areas: insurance law updates,
  907  ethics for insurance professionals, disciplinary trends and case
  908  studies, industry trends, premium discounts, determining
  909  suitability of products and services, and other similar
  910  insurance-related topics the department determines are relevant
  911  to legally and ethically carrying out the responsibilities of
  912  the license granted. A licensee who holds multiple insurance
  913  licenses must complete an update course that is specific to at
  914  least one of the licenses held. Except as otherwise specified,
  915  any remaining required hours of continuing education are
  916  elective and may consist of any continuing education course
  917  approved by the department under this section.
  918         (c) A licensee who has been licensed for 25 years or more
  919  and is a CLU or a CPCU or has a Bachelor of Science degree or
  920  higher in risk management or insurance with evidence of 18 or
  921  more semester hours in insurance-related courses must also
  922  complete a minimum of 6 hours of elective continuing education
  923  courses every 2 years.
  924         (f) Elective continuing education courses for public
  925  adjusters may must be any course related to commercial and
  926  residential property coverages, claim adjusting practices, and
  927  any other adjuster elective courses specifically designed for
  928  public adjusters and approved by the department. Notwithstanding
  929  this subsection, public adjusters for workers’ compensation
  930  insurance or health insurance are not required to take
  931  continuing education courses pursuant to this section.
  932         Section 16. Paragraphs (a), (b), and (e) of subsection (1)
  933  of section 626.321, Florida Statutes, are amended, and paragraph
  934  (i) is added to that subsection, to read:
  935         626.321 Limited licenses and registration.—
  936         (1) The department shall issue to a qualified applicant a
  937  license as agent authorized to transact a limited class of
  938  business in any of the following categories of limited lines
  939  insurance:
  940         (a) Motor vehicle physical damage and mechanical breakdown
  941  insurance.—License covering insurance against only the loss of
  942  or damage to a motor vehicle that is designed for use upon a
  943  highway, including trailers and semitrailers designed for use
  944  with such vehicles. Such license also covers insurance against
  945  the failure of an original or replacement part to perform any
  946  function for which it was designed. A licensee under this
  947  paragraph may not hold a license as an agent for any other or
  948  additional kind or class of insurance coverage except a limited
  949  license for credit insurance as provided in paragraph (e).
  950  Effective October 1, 2012, all licensees holding such limited
  951  license and appointment may renew the license and appointment,
  952  but no new or additional licenses may be issued pursuant to this
  953  paragraph, and a licensee whose limited license under this
  954  paragraph has been terminated, suspended, or revoked may not
  955  have such license reinstated.
  956         (b) Industrial fire insurance or burglary insurance.
  957  License covering only industrial fire insurance or burglary
  958  insurance. A licensee under this paragraph may not hold a
  959  license as an agent for any other or additional kind or class of
  960  insurance coverage except for life insurance and health
  961  insurance. Effective July 1, 2019, all licensees holding such
  962  limited license and appointment may renew the license and
  963  appointment, but no new or additional licenses may be issued
  964  pursuant to this paragraph, and a licensee whose limited license
  965  under this paragraph has been terminated, suspended, or revoked
  966  may not have such license reinstated.
  967         (e) Credit insurance.—License covering credit life, credit
  968  disability, credit property, credit unemployment, involuntary
  969  unemployment, mortgage life, mortgage guaranty, mortgage
  970  disability, guaranteed automobile protection (GAP) insurance,
  971  and any other form of insurance offered in connection with an
  972  extension of credit which is limited to partially or wholly
  973  extinguishing a credit obligation that the department determines
  974  should be designated a form of limited line credit insurance.
  975  Effective October 1, 2012, all valid licenses held by persons
  976  for any of the lines of insurance listed in this paragraph shall
  977  be converted to a credit insurance license. Licensees who wish
  978  to obtain a new license reflecting such change must request a
  979  duplicate license and pay a $5 fee as specified in s.
  980  624.501(15). The license may be issued only to an individual
  981  employed by a life or health insurer as an officer or other
  982  salaried or commissioned representative, to an individual
  983  employed by or associated with a lending or financial
  984  institution or creditor, or to a lending or financial
  985  institution or creditor, and may authorize the sale of such
  986  insurance only with respect to borrowers or debtors of such
  987  lending or financing institution or creditor. However, only the
  988  individual or entity whose tax identification number is used in
  989  receiving or is credited with receiving the commission from the
  990  sale of such insurance shall be the licensed agent of the
  991  insurer. No individual while so licensed shall hold a license as
  992  an agent as to any other or additional kind or class of life or
  993  health insurance coverage.
  994         (i)Preneed funeral agreement insurance.Limited license
  995  for insurance covering only prearranged funeral, cremation, or
  996  cemetery agreements, or any combination thereof, funded by
  997  insurance and offered in connection with an establishment that
  998  holds a preneed license pursuant to s. 497.452. Such license may
  999  be issued without examination only to an individual who has
 1000  filed with the department an application for a license in a form
 1001  and manner prescribed by the department, who currently holds a
 1002  valid preneed sales agent license pursuant to s. 497.466, who
 1003  paid the applicable fees for a license as prescribed in s.
 1004  624.501, who has been appointed under s. 626.112, and who paid
 1005  the prescribed appointment fee under s. 624.501.
 1006         Section 17. Paragraph (n) of subsection (1) of section
 1007  626.611, Florida Statutes, is amended to read:
 1008         626.611 Grounds for compulsory refusal, suspension, or
 1009  revocation of agent’s, title agency’s, adjuster’s, customer
 1010  representative’s, service representative’s, or managing general
 1011  agent’s license or appointment.—
 1012         (1) The department shall deny an application for, suspend,
 1013  revoke, or refuse to renew or continue the license or
 1014  appointment of any applicant, agent, title agency, adjuster,
 1015  customer representative, service representative, or managing
 1016  general agent, and it shall suspend or revoke the eligibility to
 1017  hold a license or appointment of any such person, if it finds
 1018  that as to the applicant, licensee, or appointee any one or more
 1019  of the following applicable grounds exist:
 1020         (n) Having been found guilty of or having pleaded guilty or
 1021  nolo contendere to a misdemeanor directly related to the
 1022  financial services business, any felony, or any a crime
 1023  punishable by imprisonment of 1 year or more under the law of
 1024  the United States of America or of any state thereof or under
 1025  the law of any other country, without regard to whether a
 1026  judgment of conviction has been entered by the court having
 1027  jurisdiction of such cases.
 1028         Section 18. Subsection (18) is added to section 626.621,
 1029  Florida Statutes, to read:
 1030         626.621 Grounds for discretionary refusal, suspension, or
 1031  revocation of agent’s, adjuster’s, customer representative’s,
 1032  service representative’s, or managing general agent’s license or
 1033  appointment.—The department may, in its discretion, deny an
 1034  application for, suspend, revoke, or refuse to renew or continue
 1035  the license or appointment of any applicant, agent, adjuster,
 1036  customer representative, service representative, or managing
 1037  general agent, and it may suspend or revoke the eligibility to
 1038  hold a license or appointment of any such person, if it finds
 1039  that as to the applicant, licensee, or appointee any one or more
 1040  of the following applicable grounds exist under circumstances
 1041  for which such denial, suspension, revocation, or refusal is not
 1042  mandatory under s. 626.611:
 1043         (18)Cancellation of the applicant’s, licensee’s, or
 1044  appointee’s resident license in a state other than Florida.
 1045         Section 19. Paragraphs (d) and (g) of subsection (2) and
 1046  paragraphs (a), (b), and (e) through (j) of subsection (3) of
 1047  section 626.7492, Florida Statutes, are amended to read:
 1048         626.7492 Reinsurance intermediaries.—
 1049         (2) DEFINITIONS.—As used in this section:
 1050         (d) “Producer” means a licensed an agent, broker, or
 1051  insurance agency that is appointed as a reinsurance intermediary
 1052  licensed pursuant to the applicable provision of the Florida
 1053  Insurance Code.
 1054         (g) “Reinsurance intermediary manager” means any person who
 1055  has authority to bind, or manages all or part of, the assumed
 1056  reinsurance business of a reinsurer, including the management of
 1057  a separate division, department, or underwriting office, and
 1058  acts as a representative an agent for the reinsurer whether
 1059  known as a reinsurance intermediary manager, manager, or other
 1060  similar term. Notwithstanding the above, none of the following
 1061  persons is a reinsurance intermediary manager with respect to
 1062  the reinsurer for the purposes of this section:
 1063         1. An employee of the reinsurer.;
 1064         2. A manager of the United States branch of an alien
 1065  reinsurer.;
 1066         3. An underwriting manager which, pursuant to contract,
 1067  manages all the reinsurance operations of the reinsurer, is
 1068  under common control with the reinsurer, subject to the holding
 1069  company act, and whose compensation is not based on the volume
 1070  of premiums written.
 1071         4. The manager of a group, association, pool, or
 1072  organization of insurers which engage in joint underwriting or
 1073  joint reinsurance and who are subject to examination by the
 1074  insurance regulatory authority of the state in which the
 1075  manager’s principal business office is located.
 1076         (3) LICENSURE.—
 1077         (a) No person shall act as a reinsurance intermediary
 1078  broker in this state if the reinsurance intermediary broker
 1079  maintains an office either directly or as a member or employee
 1080  of a firm or association, or an officer, director, or employee
 1081  of a corporation:
 1082         1. In this state, unless the reinsurance intermediary
 1083  broker is a licensed producer in this state; or
 1084         2. In another state, unless the reinsurance intermediary
 1085  broker is a licensed producer in this state or in another state
 1086  having a law substantially similar to this section or the
 1087  reinsurance intermediary broker is licensed in this state as an
 1088  insurance agency and appointed as a nonresident reinsurance
 1089  intermediary.
 1090         (b) No person shall act as a reinsurance intermediary
 1091  manager:
 1092         1. For a reinsurer domiciled in this state, unless the
 1093  reinsurance intermediary manager is a licensed producer in this
 1094  state;
 1095         2. In this state, if the reinsurance intermediary manager
 1096  maintains an office either directly or as a member or employee
 1097  of a firm or association, or an officer, director, or employee
 1098  of a corporation in this state, unless the reinsurance
 1099  intermediary manager is a licensed producer in this state;
 1100         3. In another state for a nondomestic insurer, unless the
 1101  reinsurance intermediary manager is a licensed producer in this
 1102  state or another state having a law substantially similar to
 1103  this section, or the person is licensed in this state as a
 1104  producer nonresident reinsurance intermediary.
 1105         (e) If the applicant for a reinsurance intermediary
 1106  appointment license is a nonresident, the applicant, as a
 1107  condition precedent to receiving or holding an appointment a
 1108  license, must designate the Chief Financial Officer as agent for
 1109  service of process in the manner, and with the same legal
 1110  effect, provided for by this section for designation of service
 1111  of process upon unauthorized insurers. Such applicant shall also
 1112  furnish the department with the name and address of a resident
 1113  of this state upon whom notices or orders of the department or
 1114  process affecting the nonresident reinsurance intermediary may
 1115  be served. The licensee shall promptly notify the department in
 1116  writing of each change in its designated agent for service of
 1117  process, and the change shall not become effective until
 1118  acknowledged by the department.
 1119         (f) The department may refuse to issue a reinsurance
 1120  intermediary license if, in its judgment, the applicant, anyone
 1121  named on the application, or any member, principal, officer, or
 1122  director of the applicant, has demonstrated a lack of fitness
 1123  and trustworthiness, or that any controlling person of the
 1124  applicant is not fit or trustworthy to act as a reinsurance
 1125  intermediary, or that any of the foregoing has given cause for
 1126  revocation or suspension of the license, or has failed to comply
 1127  with any prerequisite for the issuance of the license.
 1128         (g) Reinsurance intermediaries shall be licensed,
 1129  appointed, renewed, continued, reinstated, or terminated as
 1130  prescribed in this chapter for insurance representatives in
 1131  general, except that they shall be exempt from the photo,
 1132  education, and examination provisions. License, Appointment, and
 1133  other fees shall be those prescribed in s. 624.501.
 1134         (g)(h) The grounds and procedures for refusal of an a
 1135  license or appointment or suspension or revocation of a license
 1136  or appointment issued to a reinsurance intermediary under this
 1137  section are as set forth in ss. 626.611-626.691 for insurance
 1138  representatives in general.
 1139         (h)(i) An attorney licensed in this state, when acting in a
 1140  professional capacity, is exempt from this subsection.
 1141         (i)(j) The department may develop necessary rules to carry
 1142  out this section.
 1143         Section 20. Subsection (5) of section 626.752, Florida
 1144  Statutes, is amended to read:
 1145         626.752 Exchange of business.—
 1146         (5) Within 15 days after the last day of each month, any
 1147  insurer accepting business under this section shall report to
 1148  the department the name, address, telephone number, and social
 1149  security number of each agent from which the insurer received
 1150  more than four personal lines risks during the calendar year,
 1151  except for risks being removed from the Citizens Property
 1152  Insurance Corporation and placed with that insurer by a
 1153  brokering agent. Once the insurer has reported pursuant to this
 1154  subsection an agent’s name to the department, additional reports
 1155  on the same agent shall not be required. However, the fee set
 1156  forth in s. 624.501 must be paid for the agent by the insurer
 1157  for each year until the insurer notifies the department that the
 1158  insurer is no longer accepting business from the agent pursuant
 1159  to this section. The insurer may require that the agent
 1160  reimburse the insurer for the fee. If the insurer or employer
 1161  does not pay the fees and taxes due pursuant to this subsection
 1162  within 21 days after notice by the department, the department
 1163  must suspend the insurer’s or employer’s authority to appoint
 1164  licensees until all outstanding fees and taxes have been paid.
 1165         Section 21. Subsection (3) of section 626.785, Florida
 1166  Statutes, is amended to read:
 1167         626.785 Qualifications for license.—
 1168         (3) Notwithstanding any other provisions of this chapter, a
 1169  funeral director, a direct disposer, or an employee of a funeral
 1170  establishment that holds a preneed license pursuant to s.
 1171  497.452 may obtain an agent’s license or a limited license to
 1172  sell only policies of life insurance covering the expense of a
 1173  prearrangement for funeral services or merchandise so as to
 1174  provide funds at the time the services and merchandise are
 1175  needed. The face amount of insurance covered by any such policy
 1176  shall not exceed $21,000, plus an annual percentage increase
 1177  based on the Annual Consumer Price Index compiled by the United
 1178  States Department of Labor, beginning with the Annual Consumer
 1179  Price Index announced by the United States Department of Labor
 1180  for 2016.
 1181         Section 22. Subsection (4) of section 626.793, Florida
 1182  Statutes, is amended to read:
 1183         626.793 Excess or rejected business.—
 1184         (4) Within 15 days after the last day of each month, any
 1185  insurer accepting business under this section shall report to
 1186  the department the name, address, telephone number, and social
 1187  security number of each agent from which the insurer received
 1188  more than four risks during the calendar year. Once the insurer
 1189  has reported an agent’s name to the department pursuant to this
 1190  subsection, additional reports on the same agent shall not be
 1191  required. However, the fee set forth in s. 624.501 must be paid
 1192  for the agent by the insurer for each year until the insurer
 1193  notifies the department that the insurer is no longer accepting
 1194  business from the agent pursuant to this section. The insurer
 1195  may require that the agent reimburse the insurer for the fee. If
 1196  the insurer or employer does not pay the fees and taxes due
 1197  pursuant to this subsection within 21 days after notice by the
 1198  department, the department must suspend the insurer’s or
 1199  employer’s authority to appoint licensees until all outstanding
 1200  fees and taxes have been paid.
 1201         Section 23. Subsection (5) of section 626.837, Florida
 1202  Statutes, is amended to read:
 1203         626.837 Excess or rejected business.—
 1204         (5) Within 15 days after the last day of each month, any
 1205  insurer accepting business under this section shall report to
 1206  the department the name, address, telephone number, and social
 1207  security number of each agent from which the insurer received
 1208  more than four risks during the calendar year. Once the insurer
 1209  has reported pursuant to this subsection an agent’s name to the
 1210  department, additional reports on the same agent shall not be
 1211  required. However, the fee set forth in s. 624.501 must be paid
 1212  for the agent by the insurer for each year until the insurer
 1213  notifies the department that the insurer is no longer accepting
 1214  business from the agent pursuant to this section. The insurer
 1215  may require that the agent reimburse the insurer for the fee. If
 1216  the insurer or employer does not pay the fees and taxes due
 1217  pursuant to this subsection within 21 days after notice by the
 1218  department, the department must suspend the insurer’s or
 1219  employer’s authority to appoint licensees until all outstanding
 1220  fees and taxes have been paid.
 1221         Section 24. Paragraph (e) is added to subsection (2) of
 1222  section 626.8411, Florida Statutes, to read:
 1223         626.8411 Application of Florida Insurance Code provisions
 1224  to title insurance agents or agencies.—
 1225         (2) The following provisions of part I do not apply to
 1226  title insurance agents or title insurance agencies:
 1227         (e)Section 626.173(1)(c), relating to notifying
 1228  policyholders of the agency closure.
 1229         Section 25. Present subsections (8) through (11) of section
 1230  626.8437, Florida Statutes, are redesignated as subsections (9)
 1231  through (12), respectively, and a new subsection (8) and
 1232  subsection (13) are added to that section, to read:
 1233         626.8437 Grounds for denial, suspension, revocation, or
 1234  refusal to renew license or appointment.—The department shall
 1235  deny, suspend, revoke, or refuse to renew or continue the
 1236  license or appointment of any title insurance agent or agency,
 1237  and it shall suspend or revoke the eligibility to hold a license
 1238  or appointment of such person, if it finds that as to the
 1239  applicant, licensee, appointee, or any principal thereof, any
 1240  one or more of the following grounds exist:
 1241         (8)Misappropriation, conversion, or improper withholding
 1242  of funds not legally entitled thereto and which are received in
 1243  a fiduciary capacity and held as part of an escrow agreement,
 1244  real estate sales contract, or as provided on a settlement
 1245  statement in a real estate transaction.
 1246         (13)Revocation or cancellation of a licensee’s resident
 1247  license in a jurisdiction other than this state.
 1248         Section 26. Subsections (7) and (8) are added to section
 1249  626.844, Florida Statutes, to read:
 1250         626.844 Grounds for discretionary refusal, suspension, or
 1251  revocation of license or appointment.—The department may, in its
 1252  discretion, deny, suspend, revoke, or refuse to renew or
 1253  continue the license or appointment of any title insurance agent
 1254  or agency, and it may suspend or revoke the eligibility to hold
 1255  a license or appointment of any such title insurance agent or
 1256  agency if it finds that as to the applicant or licensee or
 1257  appointee, or any principal thereof, any one or more of the
 1258  following grounds exist under circumstances for which such
 1259  denial, suspension, revocation, or refusal is not mandatory
 1260  under s. 626.8437:
 1261         (7)Having been the subject of, or having had a license,
 1262  permit, appointment, registration, or other authority to conduct
 1263  business subject to, any decision, finding, injunction,
 1264  suspension, prohibition, revocation, denial, judgment, final
 1265  agency action, or administrative order by any court of competent
 1266  jurisdiction, administrative law proceeding, state agency,
 1267  federal agency, national securities, commodities, or option
 1268  exchange, or national securities, commodities, or option
 1269  association involving a violation of any federal or state
 1270  securities or commodities law or any rule or regulation adopted
 1271  thereunder, or a violation of any rule or regulation of any
 1272  national securities, commodities, or options exchange or
 1273  national securities, commodities, or options association.
 1274         (8)Revocation or cancellation of a licensee’s resident
 1275  license in a jurisdiction other than this state.
 1276         Section 27. Section 626.8473, Florida Statutes, is amended
 1277  to read:
 1278         626.8473 Escrow; trust fund.—
 1279         (1) A title insurance agency agent may engage in business
 1280  as an escrow agent as to funds received from others to be
 1281  subsequently disbursed by the title insurance agent in
 1282  connection with real estate closing transactions involving the
 1283  issuance of title insurance binders, commitments, policies of
 1284  title insurance, or guarantees of title, provided that a
 1285  licensed and appointed title insurance agency agent complies
 1286  with the requirements of s. 626.8419 s. 626.8417, including such
 1287  requirements added after the initial licensure of the agency
 1288  agent.
 1289         (2) All funds received by a title insurance agency agent as
 1290  described in subsection (1) shall be trust funds received in a
 1291  fiduciary capacity by the title insurance agency agent and shall
 1292  be the property of the person or persons entitled thereto.
 1293         (3) All funds received by a title insurance agency agent to
 1294  be held in trust shall be immediately placed in a financial
 1295  institution that is located within this state and is a member of
 1296  the Federal Deposit Insurance Corporation or the National Credit
 1297  Union Share Insurance Fund. These funds shall be invested in an
 1298  escrow account in accordance with the investment requirements
 1299  and standards established for deposits and investments of state
 1300  funds in s. 17.57, where the funds shall be kept until
 1301  disbursement thereof is properly authorized.
 1302         (4) Funds required to be maintained in escrow trust
 1303  accounts pursuant to this section shall not be subject to any
 1304  debts of the title insurance agency agent and shall be used only
 1305  in accordance with the terms of the individual, escrow,
 1306  settlement, or closing instructions under which the funds were
 1307  accepted.
 1308         (5) The title insurance agency agents shall maintain
 1309  separate records of all receipts and disbursements of escrow,
 1310  settlement, or closing funds.
 1311         (6) In the event that the department promulgates rules
 1312  necessary to implement the requirements of this section pursuant
 1313  to s. 624.308, the department shall consider reasonable
 1314  standards necessary for the protection of funds held in trust,
 1315  including, but not limited to, standards for accounting of
 1316  funds, standards for receipt and disbursement of funds, and
 1317  protection for the person or persons to whom the funds are to be
 1318  disbursed.
 1319         (7) A title insurance agency agent, or any officer,
 1320  director, or employee thereof, or any person associated
 1321  therewith as an independent contractor for bookkeeping or
 1322  similar purposes, who converts or misappropriates funds received
 1323  or held in escrow or in trust by such title insurance agency
 1324  agent, or any person who knowingly receives or conspires to
 1325  receive such funds, commits:
 1326         (a) If the funds converted or misappropriated are $300 or
 1327  less, a misdemeanor of the first degree, punishable as provided
 1328  in s. 775.082 or s. 775.083.
 1329         (b) If the funds converted or misappropriated are more than
 1330  $300, but less than $20,000, a felony of the third degree,
 1331  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
 1332         (c) If the funds converted or misappropriated are $20,000
 1333  or more, but less than $100,000, a felony of the second degree,
 1334  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
 1335         (d) If the funds converted or misappropriated are $100,000
 1336  or more, a felony of the first degree, punishable as provided in
 1337  s. 775.082, s. 775.083, or s. 775.084.
 1338         (8) An attorney shall deposit and maintain all funds
 1339  received in connection with transactions in which the attorney
 1340  is serving as a title or real estate settlement agent into a
 1341  separate trust account that is maintained exclusively for funds
 1342  received in connection with such transactions and permit the
 1343  account to be audited by its title insurers, unless maintaining
 1344  funds in the separate account for a particular client would
 1345  violate applicable rules of The Florida Bar.
 1346         Section 28. Subsection (19) of section 626.854, Florida
 1347  Statutes, is amended to read:
 1348         626.854 “Public adjuster” defined; prohibitions.—The
 1349  Legislature finds that it is necessary for the protection of the
 1350  public to regulate public insurance adjusters and to prevent the
 1351  unauthorized practice of law.
 1352         (19) Except as otherwise provided in this chapter, no
 1353  person, except an attorney at law or a licensed and appointed
 1354  public adjuster, may for money, commission, or any other thing
 1355  of value, directly or indirectly:
 1356         (a) Prepare, complete, or file an insurance claim for an
 1357  insured or a third-party claimant;
 1358         (b) Act on behalf of or aid an insured or a third-party
 1359  claimant in negotiating for or effecting the settlement of a
 1360  claim for loss or damage covered by an insurance contract;
 1361         (c) Offer to initiate or negotiate a claim on behalf of an
 1362  insured;
 1363         (d) Advertise services that require a license as a public
 1364  adjuster; or
 1365         (e) Solicit, investigate, or adjust a claim on behalf of a
 1366  public adjuster, an insured, or a third-party claimant.
 1367         Section 29. Section 626.874, Florida Statutes, is amended
 1368  to read:
 1369         626.874 Catastrophe or emergency adjusters.—
 1370         (1) In the event of a catastrophe or emergency, the
 1371  department may issue a license, for the purposes and under the
 1372  conditions and for the period of emergency as it shall
 1373  determine, to persons who are residents or nonresidents of this
 1374  state, who are at least 18 years of age, who are United States
 1375  citizens or legal aliens who possess work authorization from the
 1376  United States Bureau of Citizenship and Immigration Services,
 1377  and who are not licensed adjusters under this part but who have
 1378  been designated and certified to it as qualified to act as
 1379  adjusters by an authorized insurer to adjust claims, losses, or
 1380  damages under policies or contracts of insurance issued by such
 1381  insurers, or by a licensed the primary adjuster of an
 1382  independent adjusting firm contracted with an authorized insurer
 1383  to adjust claims on behalf of the insurer. The fee for the
 1384  license is as provided in s. 624.501(12)(c).
 1385         (2) If any person not a licensed adjuster who has been
 1386  permitted to adjust such losses, claims, or damages under the
 1387  conditions and circumstances set forth in subsection (1),
 1388  engages in any of the misconduct described in or contemplated by
 1389  chapter 626 ss. 626.611 and 626.621, the department, without
 1390  notice and hearing, shall be authorized to issue its order
 1391  denying such person the privileges granted under this section;
 1392  and thereafter it shall be unlawful for any such person to
 1393  adjust any such losses, claims, or damages in this state.
 1394         Section 30. Subsection (2) of section 626.9892, Florida
 1395  Statutes, is amended to read:
 1396         626.9892 Anti-Fraud Reward Program; reporting of insurance
 1397  fraud.—
 1398         (2) The department may pay rewards of up to $25,000 to
 1399  persons providing information leading to the arrest and
 1400  conviction of persons committing crimes investigated by the
 1401  department arising from violations of s. 400.9935, s. 440.105,
 1402  s. 624.15, s. 626.112, s. 626.8473, s. 626.8738, s. 626.9541, s.
 1403  626.989, s. 790.164, s. 790.165, s. 790.166, s. 806.01, s.
 1404  806.031, s. 806.10, s. 806.111, s. 812.014, s. 817.034, s.
 1405  817.233, or s. 817.234, s. 817.236, s. 817.2361, s. 817.505, s.
 1406  817.568, s. 831.01, s. 895.03, s. 895.04, or s. 896.101.
 1407         Section 31. Present subsections (7) through (12) of section
 1408  626.9957, Florida Statutes, are redesignated as subsections (8)
 1409  through (13), respectively, and a new subsection (7) is added to
 1410  that section, to read:
 1411         626.9957 Conduct prohibited; denial, revocation,
 1412  termination, expiration, or suspension of registration.—
 1413         (7)If a navigator registered under this part fails to
 1414  maintain an active, valid navigator’s registration status with
 1415  the Federal Government or an exchange, the navigator’s
 1416  registration issued under this part shall expire by operation of
 1417  law. A navigator with an expired registration may not be granted
 1418  subsequent registration until the navigator qualifies as a
 1419  first-time applicant.
 1420         Section 32. Paragraph (c) of subsection (4) of section
 1421  627.351, Florida Statutes, is amended to read:
 1422         627.351 Insurance risk apportionment plans.—
 1423         (4) MEDICAL MALPRACTICE RISK APPORTIONMENT.—
 1424         (c) The Joint Underwriting Association shall operate
 1425  subject to the supervision and approval of a board of governors
 1426  consisting of representatives of five of the insurers
 1427  participating in the Joint Underwriting Association, an attorney
 1428  named by The Florida Bar, a physician named by the Florida
 1429  Medical Association, a dentist named by the Florida Dental
 1430  Association, and a hospital representative named by the Florida
 1431  Hospital Association. The Chief Financial Officer shall select
 1432  the representatives of the five insurers or other persons with
 1433  experience in medical malpractice insurance as determined by the
 1434  Chief Financial Officer. These appointments are deemed to be
 1435  within the scope of the exemption provided in s. 112.313(7)(b).
 1436  One insurer representative shall be selected from
 1437  recommendations of the American Insurance Association. One
 1438  insurer representative shall be selected from recommendations of
 1439  the Property Casualty Insurers Association of America. One
 1440  insurer representative shall be selected from recommendations of
 1441  the Florida Insurance Council. Two insurer representatives shall
 1442  be selected to represent insurers that are not affiliated with
 1443  these associations. Vacancies on the board shall be filled for
 1444  the remaining period of the term in the same manner as the
 1445  initial appointments. During the first meeting of the board
 1446  after June 30 of each year, the board shall choose one of its
 1447  members to serve as chair of the board and another member to
 1448  serve as vice chair of the board. There is no liability on the
 1449  part of, and no cause of action shall arise against, any member
 1450  insurer, self-insurer, or its agents or employees, the Joint
 1451  Underwriting Association or its agents or employees, members of
 1452  the board of governors, or the office or its representatives for
 1453  any action taken by them in the performance of their powers and
 1454  duties under this subsection.
 1455         1.The Chief Financial Officer may remove a board member
 1456  from office for misconduct, malfeasance, misfeasance, or neglect
 1457  of duty. Any vacancy so created shall be filled as provided in
 1458  this paragraph.
 1459         2.Board members are subject to the code of ethics under
 1460  part III of chapter 112, including, but not limited to, the code
 1461  of ethics and public disclosure and reporting of financial
 1462  interests, pursuant to s. 112.3145. For purposes of applying
 1463  part III of chapter 112 to activities of members of the board of
 1464  governors, those persons are considered public officers and the
 1465  Joint Underwriting Association is considered their agency.
 1466  Notwithstanding s. 112.3143(2), a board member may not vote on
 1467  any measure that he or she knows would inure to his or her
 1468  special private gain or loss; that he or she knows would inure
 1469  to the special private gain or loss of any principal by which he
 1470  or she is retained, other than an agency as defined in s.
 1471  112.312; or that he or she knows would inure to the special
 1472  private gain or loss of a relative or business associate of the
 1473  public officer. Before the vote is taken, such board member
 1474  shall publicly state to the board the nature of his or her
 1475  interest in the matter from which he or she is abstaining from
 1476  voting and, within 15 days after the vote occurs, disclose the
 1477  nature of his or her interest as a public record in a memorandum
 1478  filed with the person responsible for recording the minutes of
 1479  the meeting, who shall incorporate the memorandum in the
 1480  minutes.
 1481         3.Notwithstanding s. 112.3148, s. 112.3149, or any other
 1482  law, a board member may not knowingly accept, directly or
 1483  indirectly, any gift or expenditure from a person or entity, or
 1484  an employee or representative of such person or entity, which
 1485  has a contractual relationship with the Joint Underwriting
 1486  Association or which is under consideration for a contract.
 1487         4.A board member who fails to comply with subparagraph 2.
 1488  or subparagraph 3. is subject to the penalties provided under
 1489  ss. 112.317 and 112.3173.
 1490         Section 33. Section 627.4215, Florida Statutes, is amended
 1491  to read:
 1492         627.4215 Disclosures to policyholders; coverage of
 1493  behavioral health care services.—
 1494         (1) A health insurer that offers behavioral health
 1495  insurance coverages required by federal or state law shall make
 1496  all of the following information available on its website:
 1497         (a) The federal and state requirements for coverage of
 1498  behavioral health care services.
 1499         (b) Contact information for the Division of Consumer
 1500  Services of the department, including a hyperlink, for consumers
 1501  to submit inquiries or complaints relating to health insurer
 1502  products or services regulated by the department or the office.
 1503         (2) On an annual basis, a health insurer that offers
 1504  behavioral health insurance coverage required by federal or
 1505  state law shall provide a direct notice to insureds with
 1506  behavioral health insurance coverages required by federal or
 1507  state law which must include a description of the federal and
 1508  state requirements for coverage of behavioral health care
 1509  services. Such notice must also include the website address and
 1510  statewide toll-free telephone number of the Division of Consumer
 1511  Services of the department for receiving and logging complaints.
 1512         Section 34. Subsections (2) and (3) of section 627.7015,
 1513  Florida Statutes, are amended to read:
 1514         627.7015 Alternative procedure for resolution of disputed
 1515  property insurance claims.—
 1516         (2) At the time of issuance and renewal of a policy or at
 1517  the time a first-party claim within the scope of this section is
 1518  filed by the policyholder, the insurer shall notify the
 1519  policyholder of its right to participate in the mediation
 1520  program under this section. A claim is not eligible for
 1521  mediation until an insurer has made a claim determination or
 1522  elected to repair pursuant to s. 627.70131. The department shall
 1523  prepare a consumer information pamphlet for distribution to
 1524  persons participating in mediation.
 1525         (3) The costs of mediation must be reasonable, and the
 1526  insurer must bear all of the cost of conducting mediation
 1527  conferences, except as otherwise provided in this section. If a
 1528  policyholder fails to appear at the conference, the conference
 1529  must be rescheduled upon the policyholder’s payment of the costs
 1530  of a rescheduled conference. If the insurer fails to appear at
 1531  the conference, the insurer must pay the policyholder’s actual
 1532  cash expenses incurred in attending the conference if the
 1533  insurer’s failure to attend was not due to a good cause
 1534  acceptable to the department. An insurer will be deemed to have
 1535  failed to appear if the insurer’s representative lacks authority
 1536  to settle the full value of the claim. The insurer shall incur
 1537  an additional fee for a rescheduled conference necessitated by
 1538  the insurer’s failure to appear at a scheduled conference. The
 1539  fees assessed by the department administrator must include a
 1540  charge necessary to defray the expenses of the department
 1541  related to its duties under this section and must be deposited
 1542  in the Insurance Regulatory Trust Fund. The department may
 1543  suspend the insurer’s authority to appoint licensees if the
 1544  insurer does not timely pay the required fees.
 1545         Section 35. Subsection (18) is added to section 627.7074,
 1546  Florida Statutes, to read:
 1547         627.7074 Alternative procedure for resolution of disputed
 1548  sinkhole insurance claims.—
 1549         (18) The department may designate, by means of a written
 1550  contract or agreement, an entity or a person to serve as
 1551  administrator to carry out any of the provisions of this
 1552  section.
 1553         Section 36. Section 627.745, Florida Statutes, is amended
 1554  to read:
 1555         627.745 Mediation of claims.—
 1556         (1)(a) In any claim filed with an insurer for personal
 1557  injury in an amount of $10,000 or less or any claim for property
 1558  damage in any amount, arising out of the ownership, operation,
 1559  use, or maintenance of a motor vehicle, either party may demand
 1560  mediation of the claim prior to the institution of litigation.
 1561         (b)The costs of mediation must be reasonable, and the
 1562  insurer must bear all of the cost of conducting mediation
 1563  conferences, except as otherwise provided in this section. If a
 1564  policyholder fails to appear at the conference, the conference
 1565  must be rescheduled upon the policyholder’s payment of the costs
 1566  of a rescheduled conference. If the insurer fails to appear at
 1567  the conference, the insurer must pay the policyholder’s actual
 1568  cash expenses incurred in attending the conference if the
 1569  insurer’s failure to attend was not due to a good cause
 1570  acceptable to the department. An insurer is deemed to have
 1571  failed to appear if the insurer’s representative lacks authority
 1572  to settle the full value of the claim. The insurer shall incur
 1573  an additional fee, paid to the mediator, for a rescheduled
 1574  conference necessitated by the insurer’s failure to appear at a
 1575  scheduled conference. The fees assessed by the department or
 1576  administrator must include a charge necessary to defray the
 1577  expenses of the department related to its duties under this
 1578  section and must be deposited in the Insurance Regulatory Trust
 1579  Fund. The department or administrator may request that the
 1580  department suspend the insurer’s authority to appoint licensees
 1581  if the insurer does not timely pay the per-mediation-event
 1582  administrative fee. Mediation under this section is also
 1583  available to litigants referred to the department by a county
 1584  court or circuit court.
 1585         (b)A request for mediation shall be filed with the
 1586  department on a form approved by the department. The request for
 1587  mediation shall state the reason for the request for mediation
 1588  and the issues in dispute which are to be mediated. The filing
 1589  of a request for mediation tolls the applicable time
 1590  requirements for filing suit for a period of 60 days following
 1591  the conclusion of the mediation process or the time prescribed
 1592  in s. 95.11, whichever is later.
 1593         (c) The insurance policy must specify in detail the terms
 1594  and conditions for mediation of a first-party claim.
 1595         (d)The mediation shall be conducted as an informal process
 1596  in which formal rules of evidence and procedure need not be
 1597  observed. Any party participating in a mediation must have the
 1598  authority to make a binding decision. All parties must mediate
 1599  in good faith.
 1600         (e)The department shall randomly select mediators. Each
 1601  party may once reject the mediator selected, either originally
 1602  or after the opposing side has exercised its option to reject a
 1603  mediator.
 1604         (f)Costs of mediation shall be borne equally by both
 1605  parties unless the mediator determines that one party has not
 1606  mediated in good faith.
 1607         (g) Only one mediation may be requested for each claim,
 1608  unless all parties agree to further mediation.
 1609         (2)Upon receipt of a request for mediation, the department
 1610  shall refer the request to a mediator. The mediator shall notify
 1611  the applicant and all interested parties, as identified by the
 1612  applicant, and any other parties the mediator believes may have
 1613  an interest in the mediation, of the date, time, and place of
 1614  the mediation conference. The conference may be held by
 1615  telephone, if feasible. The mediation conference shall be held
 1616  within 45 days after the request for mediation.
 1617         (2)(a)(3)(a) The department shall approve mediators to
 1618  conduct mediations pursuant to this section. All mediators must
 1619  file an application under oath for approval as a mediator.
 1620         (b) To qualify for approval as a mediator, an individual
 1621  must meet one of the following qualifications:
 1622         1. Possess an active certification as a Florida Supreme
 1623  Court certified circuit court mediator. A Florida Supreme Court
 1624  certified circuit court mediator in a lapsed, suspended,
 1625  sanctioned, or decertified status is not eligible to participate
 1626  in the mediation program.
 1627         2. Be an approved department mediator as of July 1, 2014,
 1628  and have conducted at least one mediation on behalf of the
 1629  department within 4 years immediately preceding that date.
 1630         (3)(4) The department shall deny an application, or suspend
 1631  or revoke its approval, of a mediator to serve in such capacity
 1632  if the department finds that one or more of the following
 1633  grounds exist:
 1634         (a) Lack of one or more of the qualifications specified in
 1635  this section for approval.
 1636         (b) Material misstatement, misrepresentation, or fraud in
 1637  obtaining or attempting to obtain the approval.
 1638         (c) Demonstrated lack of fitness or trustworthiness to act
 1639  as a mediator.
 1640         (d) Fraudulent or dishonest practices in the conduct of
 1641  mediation or in the conduct of business in the financial
 1642  services industry.
 1643         (e) Violation of any provision of this code or of a lawful
 1644  order or rule of the department, violation of the Florida Rules
 1645  for Certified and Court-Appointed Mediators, or aiding,
 1646  instructing, or encouraging another party in committing such a
 1647  violation.
 1648  
 1649  The department may adopt rules to administer this subsection.
 1650         (4)The department shall adopt by rule a motor vehicle
 1651  claims insurance mediation program to be administered by the
 1652  department or its designee. The department may also adopt
 1653  special rules that are applicable in cases of an emergency
 1654  within the state. The rules shall be modeled after practices and
 1655  procedures set forth in mediation rules of procedure adopted by
 1656  the Supreme Court. The rules must include:
 1657         (a)Reasonable requirements for processing and scheduling
 1658  of requests for mediation.
 1659         (b)Provisions governing who may attend mediation
 1660  conferences.
 1661         (c)Selection of mediators.
 1662         (d)Criteria for the conduct of mediation conferences.
 1663         (e)Right to legal counsel.
 1664         (5)The department must adopt rules of procedure for claims
 1665  mediation, taking into consideration a system which:
 1666         (a)Is fair.
 1667         (b)Promotes settlement.
 1668         (c)Avoids delay.
 1669         (d)Is nonadversarial.
 1670         (e)Uses a framework for modern mediating technique.
 1671         (f) Controls of costs and expenses of mediation.
 1672         (5)The department may designate an entity or person to
 1673  serve as an administrator to carry out any of the provisions of
 1674  this section and may take this action by means of a written
 1675  contract or agreement.
 1676         (6) Disclosures and information divulged in the mediation
 1677  process are not admissible in any subsequent action or
 1678  proceeding relating to the claim or to the cause of action
 1679  giving rise to the claim. A person demanding mediation under
 1680  this section may not demand or request mediation after a suit is
 1681  filed relating to the same facts already mediated.
 1682         Section 37. Present subsections (7) through (12) of section
 1683  631.141, Florida Statutes, are redesignated as subsections (8)
 1684  through (13), respectively, and a new subsection (7) is added to
 1685  that section, to read:
 1686         631.141 Conduct of delinquency proceeding; domestic and
 1687  alien insurers.—
 1688         (7)In order to preserve as much as possible the right and
 1689  interest of the policyholders whose insurance policies or
 1690  similar contracts are affected by the receivership proceedings,
 1691  the department as a domiciliary receiver may:
 1692         (a)Use the property of the estate of the insurer to
 1693  transfer the insurer’s book of business, policies, or similar
 1694  contracts of coverage, in whole or in part, to a solvent
 1695  assuming insurer or insurers.
 1696         (b)Notwithstanding s. 631.195, share records of the
 1697  insurer with the prospective solvent assuming insurer or
 1698  insurers, but only to the extent necessary to undertake due
 1699  diligence for a transfer contemplated under this section.
 1700         Section 38. Subsections (1) and (3) of section 631.252,
 1701  Florida Statutes, are amended to read:
 1702         631.252 Continuation of coverage.—
 1703         (1) Unless another insurer, with approval of the
 1704  receivership court, assumes or otherwise provides coverage for
 1705  the policies of the insolvent insurer, all insurance policies or
 1706  similar contracts of coverage, other than coverages defined in
 1707  s. 631.713 or health maintenance organization coverage under
 1708  part IV, issued by the insurer shall be canceled upon the
 1709  earlier earliest to occur of the following:
 1710         (a) The date of entry of the liquidation or, if the court
 1711  so provides in its order, the expiration of 30 days from the
 1712  date of entry of the liquidation order;
 1713         (b) The normal expiration of the policy or contract
 1714  coverage;
 1715         (c) The replacement of the coverage by the insured, or the
 1716  replacement of the policy or contract of coverage, with a policy
 1717  or contract acceptable to the insured by the receiver with
 1718  another insurer; or
 1719         (d)The date proposed by the receiver and approved by the
 1720  receivership court to cancel coverage; or
 1721         (e)(d) The termination of the coverage by the insured.
 1722         (3) The 30-day coverage continuation period provided in
 1723  paragraph (1)(a) and s. 631.57(1)(a)1. may not be extended
 1724  unless the Chief Financial Officer office determines, based on a
 1725  reasonable belief, that market conditions are such that policies
 1726  of residential property insurance coverage cannot be placed with
 1727  an authorized insurer within 30 days and that an additional 15
 1728  days is needed to place such coverage.; and Failure of actual
 1729  notice to the policyholder of the insolvency of the insurer, of
 1730  commencement of a delinquency proceeding, or of expiration of
 1731  the extension period does not affect such expiration.
 1732         Section 39. Subsection (1) of section 631.56, Florida
 1733  Statutes, is amended, and subsections (5) through (8) are added
 1734  to that section, to read:
 1735         631.56 Board of directors.—
 1736         (1) The board of directors of the association shall consist
 1737  of not less than five or more than nine persons serving terms as
 1738  established in the plan of operation. Three members of the board
 1739  must be representatives from domestic insurers and appointed by
 1740  the Chief Financial Officer. The department shall approve and
 1741  appoint to the board persons recommended by the member insurers
 1742  or other persons with experience in property and casualty
 1743  insurance or motor vehicle insurance as determined by the Chief
 1744  Financial Officer. These appointments are deemed to be within
 1745  the scope of the exemption provided in s. 112.313(7)(b). In the
 1746  event the department finds that any recommended person does not
 1747  meet the qualifications for service on the board, the department
 1748  shall request the member insurers to recommend another person.
 1749  Each member shall serve for a 4-year term and may be
 1750  reappointed. Vacancies on the board shall be filled for the
 1751  remaining period of the term in the same manner as initial
 1752  appointments.
 1753         (5)The Chief Financial Officer may remove a board member
 1754  from office for misconduct, malfeasance, misfeasance, or neglect
 1755  of duty. Any vacancy so created shall be filled as provided in
 1756  subsection (1).
 1757         (6)Board members are subject to the code of ethics under
 1758  part III of chapter 112, including, but not limited to, the code
 1759  of ethics and public disclosure and reporting of financial
 1760  interests, pursuant to s. 112.3145. For purposes of applying
 1761  part III of chapter 112 to activities of members of the board of
 1762  directors, those persons are considered public officers and the
 1763  association is considered their agency. Notwithstanding s.
 1764  112.3143(2), a board member may not vote on any measure that he
 1765  or she knows would inure to his or her special private gain or
 1766  loss; that he or she knows would inure to the special private
 1767  gain or loss of any principal by which he or she is retained,
 1768  other than an agency as defined in s. 112.312; or that he or she
 1769  knows would inure to the special private gain or loss of a
 1770  relative or business associate of the public officer. Before the
 1771  vote is taken, such member shall publicly state to the board the
 1772  nature of his or her interest in the matter from which he or she
 1773  is abstaining from voting and, within 15 days after the vote
 1774  occurs, disclose the nature of his or her interest as a public
 1775  record in a memorandum filed with the person responsible for
 1776  recording the minutes of the meeting, who shall incorporate the
 1777  memorandum in the minutes.
 1778         (7)Notwithstanding s. 112.3148, s. 112.3149, or any other
 1779  law, a board member may not knowingly accept, directly or
 1780  indirectly, any gift or expenditure from a person or entity, or
 1781  an employee or representative of such person or entity, which
 1782  has a contractual relationship with the association or which is
 1783  under consideration for a contract.
 1784         (8)A board member who fails to comply with subsection (6)
 1785  or subsection (7) is subject to the penalties provided under ss.
 1786  112.317 and 112.3173.
 1787         Section 40. Paragraph (a) of subsection (1) of section
 1788  631.716, Florida Statutes, is amended, and subsections (4)
 1789  through (7) are added to that section, to read:
 1790         631.716 Board of directors.—
 1791         (1)(a) The board of directors of the association shall have
 1792  at least 9, but no more than 11, members. The members shall
 1793  consist be comprised of member insurers serving terms as
 1794  established in the plan of operation and 1 Florida Health
 1795  Maintenance Organization Consumer Assistance Plan director
 1796  confirmed pursuant to paragraph (b), or other persons with
 1797  experience in life and annuity or accident and health insurance
 1798  as determined by the Chief Financial Officer. These appointments
 1799  are deemed to be within the scope of the exemption provided in
 1800  s. 112.313(7)(b). At all times, at least 1 member of the board
 1801  member must be a domestic insurer as defined in s. 624.06(1).
 1802  The members of the board members who are member insurers shall
 1803  be elected by member insurers, subject to the approval of the
 1804  department. Each board member shall serve for a 4-year term and
 1805  may be reappointed.
 1806         (4)The Chief Financial Officer may remove a board member
 1807  from office for misconduct, malfeasance, misfeasance, or neglect
 1808  of duty. Any vacancy so created shall be filled as provided in
 1809  subsection (1).
 1810         (5)Board members are subject to the code of ethics under
 1811  part III of chapter 112, including, but not limited to, the code
 1812  of ethics and public disclosure and reporting of financial
 1813  interests, pursuant to s. 112.3145. For purposes of applying
 1814  part III of chapter 112 to activities of members of the board of
 1815  directors, those persons are considered public officers and the
 1816  association is considered their agency. Notwithstanding s.
 1817  112.3143(2), a board member may not vote on any measure that he
 1818  or she knows would inure to his or her special private gain or
 1819  loss; that he or she knows would inure to the special private
 1820  gain or loss of any principal by which he or she is retained,
 1821  other than an agency as defined in s. 112.312; or that he or she
 1822  knows would inure to the special private gain or loss of a
 1823  relative or business associate of the public officer. Before the
 1824  vote is taken, such member shall publicly state to the board the
 1825  nature of his or her interest in the matter from which he or she
 1826  is abstaining from voting and, within 15 days after the vote
 1827  occurs, disclose the nature of his or her interest as a public
 1828  record in a memorandum filed with the person responsible for
 1829  recording the minutes of the meeting, who shall incorporate the
 1830  memorandum in the minutes.
 1831         (6)Notwithstanding s. 112.3148, s. 112.3149, or any other
 1832  law, a board member may not knowingly accept, directly or
 1833  indirectly, any gift or expenditure from a person or entity, or
 1834  an employee or representative of such person or entity, which
 1835  has a contractual relationship with the association or which is
 1836  under consideration for a contract.
 1837         (7)A board member who fails to comply with subsection (5)
 1838  or subsection (6) is subject to the penalties provided under ss.
 1839  112.317 and 112.3173.
 1840         Section 41. Subsection (1) of section 631.816, Florida
 1841  Statutes, is amended, and subsections (8) through (11) are added
 1842  to that section, to read:
 1843         631.816 Board of directors.—
 1844         (1) The board of directors of the plan shall consist of not
 1845  less than five or more than nine persons serving terms as
 1846  established in the plan of operation. The department shall
 1847  approve and appoint to the board persons recommended by the
 1848  member HMOs or other persons with experience in health insurance
 1849  as determined by the Chief Financial Officer. These appointments
 1850  are deemed to be within the scope of the exemption provided in
 1851  s. 112.313(7)(b). In the event the department finds that any
 1852  recommended person does not meet the qualifications for service
 1853  on the board, the department shall request the member HMOs to
 1854  recommend another person. Each member shall serve for a 4-year
 1855  term and may be reappointed, except that terms may be staggered
 1856  as defined in the plan of operation. Vacancies on the board
 1857  shall be filled for the remaining period of the term in the same
 1858  manner as initial appointments. In determining voting rights,
 1859  each HMO is entitled to vote on the basis of cumulative weighted
 1860  voting based on the net written premium for non-Medicare and
 1861  non-Medicaid policies.
 1862         (8)The Chief Financial Officer may remove a board member
 1863  from office for misconduct, malfeasance, misfeasance, or neglect
 1864  of duty. Any vacancy so created shall be filled as provided in
 1865  subsection (1).
 1866         (9)Board members are subject to the code of ethics under
 1867  part III of chapter 112, including, but not limited to, the code
 1868  of ethics and public disclosure and reporting of financial
 1869  interests, pursuant to s. 112.3145. For purposes of applying
 1870  part III of chapter 112 to activities of members of the board of
 1871  directors, those persons are considered public officers and the
 1872  plan is considered their agency. Notwithstanding s. 112.3143(2),
 1873  a board member may not vote on any measure that he or she knows
 1874  would inure to his or her special private gain or loss; that he
 1875  or she knows would inure to the special private gain or loss of
 1876  any principal by which he or she is retained, other than an
 1877  agency as defined in s. 112.312; or that he or she knows would
 1878  inure to the special private gain or loss of a relative or
 1879  business associate of the public officer. Before the vote is
 1880  taken, such member shall publicly state to the board the nature
 1881  of his or her interest in the matter from which he or she is
 1882  abstaining from voting and, within 15 days after the vote
 1883  occurs, disclose the nature of his or her interest as a public
 1884  record in a memorandum filed with the person responsible for
 1885  recording the minutes of the meeting, who shall incorporate the
 1886  memorandum in the minutes.
 1887         (10)Notwithstanding s. 112.3148, s. 112.3149, or any other
 1888  law, a board member may not knowingly accept, directly or
 1889  indirectly, any gift or expenditure from a person or entity, or
 1890  an employee or representative of such person or entity, which
 1891  has a contractual relationship with the plan or which is under
 1892  consideration for a contract.
 1893         (11)A board member who fails to comply with subsection (9)
 1894  or subsection (10) is subject to the penalties provided under
 1895  ss. 112.317 and 112.3173.
 1896         Section 42. Subsection (1) of section 631.912, Florida
 1897  Statutes, is amended, and subsections (4), (5), and (6) are
 1898  added to that section, to read:
 1899         631.912 Board of directors.—
 1900         (1) The board of directors of the corporation shall consist
 1901  of 11 persons, 1 of whom is the insurance consumer advocate
 1902  appointed under s. 627.0613 or designee and 1 of whom is
 1903  designated by the Chief Financial Officer. The department shall
 1904  appoint to the board 6 persons selected by private carriers from
 1905  among the 20 workers’ compensation insurers with the largest
 1906  amount of direct written premium as determined by the
 1907  department, and 2 persons selected by the self-insurance funds
 1908  or other persons with experience in workers’ compensation
 1909  insurance as determined by the Chief Financial Officer. These
 1910  appointments are deemed to be within the scope of the exemption
 1911  provided in s. 112.313(7)(b). The Governor shall appoint one
 1912  person who has commercial insurance experience. At least two of
 1913  the private carriers shall be foreign carriers authorized to do
 1914  business in this state. The board shall elect a chairperson from
 1915  among its members. The Chief Financial Officer may remove any
 1916  board member for cause. Each board member shall be appointed to
 1917  serve a 4-year term and may be reappointed. A vacancy on the
 1918  board shall be filled for the remaining period of the term in
 1919  the same manner by which the original appointment was made.
 1920         (4)Board members are subject to the code of ethics under
 1921  part III of chapter 112, including, but not limited to, the code
 1922  of ethics and public disclosure and reporting of financial
 1923  interests, pursuant to s. 112.3145. For purposes of applying
 1924  part III of chapter 112 to activities of members of the board of
 1925  directors, those persons are considered public officers and the
 1926  corporation is considered their agency. Notwithstanding s.
 1927  112.3143(2), a board member may not vote on any measure that he
 1928  or she knows would inure to his or her special private gain or
 1929  loss; that he or she knows would inure to the special private
 1930  gain or loss of any principal by which he or she is retained,
 1931  other than an agency as defined in s. 112.312; or that he or she
 1932  knows would inure to the special private gain or loss of a
 1933  relative or business associate of the public officer. Before the
 1934  vote is taken, such member shall publicly state to the board the
 1935  nature of his or her interest in the matter from which he or she
 1936  is abstaining from voting and, within 15 days after the vote
 1937  occurs, disclose the nature of his or her interest as a public
 1938  record in a memorandum filed with the person responsible for
 1939  recording the minutes of the meeting, who shall incorporate the
 1940  memorandum in the minutes.
 1941         (5)Notwithstanding s. 112.3148, s. 112.3149, or any other
 1942  law, a board member may not knowingly accept, directly or
 1943  indirectly, any gift or expenditure from a person or entity, or
 1944  an employee or representative of such person or entity, which
 1945  has a contractual relationship with the corporation or which is
 1946  under consideration for a contract.
 1947         (6)A board member who fails to comply with subsection (4)
 1948  or subsection (5) is subject to the penalties provided under ss.
 1949  112.317 and 112.3173.
 1950         Section 43. Section 633.1423, Florida Statutes, is created
 1951  to read:
 1952         633.1423State Fire Marshal direct-support organization.—
 1953         (1)DEFINITION.—As used in this section, the term
 1954  “organization” means the direct-support organization established
 1955  under this section.
 1956         (2)ORGANIZATION ESTABLISHED.—The division may establish a
 1957  direct-support organization, to be known as the “State Fire
 1958  Marshal Safety and Training Force,” whose sole purpose is to
 1959  support the safety and training of firefighters and to recognize
 1960  exemplary service. The organization must:
 1961         (a)Be a not-for-profit corporation incorporated under
 1962  chapter 617 and approved by the Department of State.
 1963         (b)Be organized and operated to raise funds; request and
 1964  receive grants, gifts, and bequests of money; conduct programs
 1965  and activities; acquire, receive, hold, invest, and administer,
 1966  in its own name, securities, funds, or property; and make grants
 1967  and expenditures to or for the direct or indirect benefit of the
 1968  division. Grants and expenditures may include the cost of
 1969  education or training of firefighters, or the recognition of
 1970  exemplary service of firefighters.
 1971         (c)Be determined by the division to operate in a manner
 1972  that is:
 1973         1.Consistent with the goals of the division and laws
 1974  relating to the safety and training of firefighters.
 1975         2.In the best interest of the state.
 1976         3.In accordance with the adopted goals and mission of the
 1977  division.
 1978         (d)Use all of its grants and expenditures solely for the
 1979  purpose of educating, training, and recognizing firefighters,
 1980  and not for advertising using the likeness or name of any
 1981  elected official nor for the purpose of lobbying as defined in
 1982  s. 11.045(1).
 1983         (e)Be subject to an annual financial audit in accordance
 1984  with s. 215.981.
 1985         (3)CONTRACT.—The organization shall operate under written
 1986  contract with the division. The contract must provide for:
 1987         (a)Certification by the division that the organization is
 1988  complying with the terms of the contract and in a manner
 1989  consistent with the goals and purposes of the department and in
 1990  the best interest of the state. Such certification must be made
 1991  annually and reported in the official minutes of a meeting of
 1992  the organization.
 1993         (b)The reversion of moneys and property held by the
 1994  organization for firefighter safety, training, and recognition
 1995  to the division if the organization is no longer approved to
 1996  operate by the division or if the organization ceases to exist,
 1997  or to the state if the division ceases to exist.
 1998         (4)BOARD OF DIRECTORS.—The organization shall be governed
 1999  by a board of directors. The State Fire Marshal, or his or her
 2000  designee, shall appoint a president of the board. The board of
 2001  directors shall be appointed by the president of the board.
 2002         (5)USE OF PROPERTY.—The division may authorize, without
 2003  charge, appropriate use of fixed property and facilities of the
 2004  division by the organization, subject to this subsection.
 2005         (a)The department may prescribe any condition with which
 2006  the organization must comply in order to use the division’s
 2007  property or facilities.
 2008         (b)The department may not authorize the use of the
 2009  division’s property or facilities if the organization does not
 2010  provide equal membership and employment opportunities to all
 2011  persons regardless of race, religion, sex, age, or national
 2012  origin.
 2013         (c)The department shall adopt rules prescribing the
 2014  procedures by which the organization is governed and any
 2015  conditions with which the organization must comply to use the
 2016  division’s property or facilities.
 2017         (6)DEPOSITORY ACCOUNT.—Any moneys received by the
 2018  organization may be held in a separate depository account in the
 2019  name of the organization and subject to the contract with the
 2020  division.
 2021         (7)ANNUAL BUDGETS AND REPORTS.—The organization shall
 2022  submit to the division its annual budget and financial reports,
 2023  its federal Internal Revenue Service Application for Recognition
 2024  of Exemption Form 1023, and its federal Internal Revenue Service
 2025  Return of Organization Exempt from Income Tax Form 990.
 2026         (8)ANNUAL AUDIT.—The organization shall provide for an
 2027  annual financial audit in accordance with s. 215.981.
 2028         (9)DIVISION’S RECEIPT OF PROCEEDS.—Proceeds received by
 2029  the division from the organization shall be deposited into the
 2030  Insurance Regulatory Trust Fund.
 2031         (10)REPEAL.—This section is repealed October 1, 2028,
 2032  unless reviewed and saved from repeal by the Legislature.
 2033         Section 44. Section 634.181, Florida Statutes, is amended
 2034  to read:
 2035         634.181 Grounds for compulsory refusal, suspension, or
 2036  revocation of license or appointment of salespersons.—
 2037         (1) The department shall deny, suspend, revoke, or refuse
 2038  to renew or continue the license or appointment of any such
 2039  salesperson if it finds that as to the salesperson any one or
 2040  more of the following applicable grounds exist:
 2041         (a)(1) Material misstatement, misrepresentation, or fraud
 2042  in obtaining or attempting to obtain the license or appointment.
 2043         (b)(2) If the license or appointment is willfully used, or
 2044  to be used, to circumvent any of the requirements or
 2045  prohibitions of this part, any applicable provision of the
 2046  Florida Insurance Code, or rule of the department or commission.
 2047         (c)(3) Willful misrepresentation of any service agreement
 2048  or willful deception with regard to any agreement, done either
 2049  in person or by any form of dissemination of information or
 2050  advertising.
 2051         (d)(4) If in the adjustment of claims arising out of
 2052  service agreements, she or he has materially misrepresented to a
 2053  service agreement holder or other interested party the terms and
 2054  coverage of a service agreement with intent and for the purpose
 2055  of effecting settlement of the claim on less favorable terms
 2056  than those provided in and contemplated by the service
 2057  agreement.
 2058         (e)(5) For demonstrated lack of fitness or trustworthiness
 2059  to engage in the service agreement business.
 2060         (f)(6) For demonstrated lack of adequate knowledge and
 2061  technical competence to engage in the transactions authorized by
 2062  the license or appointment.
 2063         (g)(7) Fraudulent or dishonest practices in the conduct of
 2064  business under the license or appointment.
 2065         (h)(8) Misappropriation, conversion, or unlawful
 2066  withholding of moneys belonging to a service agreement company,
 2067  insurer, or service agreement holder or to others and received
 2068  in the conduct of business under the license or appointment.
 2069         (i)(9) For unlawfully rebating, or attempt thereat, or for
 2070  unlawfully dividing or offering to divide her or his commission
 2071  with another.
 2072         (j)(10) Willful failure to comply with, or willful
 2073  violation of any proper order of the department or office, or
 2074  willful violation of any provision of this part, or of any
 2075  applicable provision of the insurance code, or applicable rule
 2076  of the department or commission.
 2077         (k)(11) Having been found guilty of, or having pleaded
 2078  guilty or nolo contendere to, a felony or a crime punishable by
 2079  imprisonment of 1 year or more under the law of the United
 2080  States of America or any state thereof or under the law of any
 2081  other country which involves moral turpitude, without regard to
 2082  whether a judgment of conviction has been entered by the court
 2083  having jurisdiction of the cases.
 2084         (l)(12) Failure to refund unearned pro rata commission to
 2085  the agreement holder or the service agreement company, if the
 2086  service agreement company is making a full unearned pro rata
 2087  refund to the agreement holder.
 2088         (m)Having been the subject of, or having had a license,
 2089  permit, appointment, registration, or other authority to conduct
 2090  business subject to, any decision, finding, injunction,
 2091  suspension, prohibition, revocation, denial, judgment, final
 2092  agency action, or administrative order by any court of competent
 2093  jurisdiction, administrative law proceeding, state agency,
 2094  federal agency, national securities, commodities, or options
 2095  exchange, or national securities, commodities, or options
 2096  association involving a violation of any federal or state
 2097  securities or commodities law or any rule or regulation adopted
 2098  thereunder, or a violation of any rule or regulation of any
 2099  national securities, commodities, or options exchange or
 2100  national securities, commodities, or options association.
 2101         (2)When a licensee is charged with a felony enumerated in
 2102  s. 626.207(2), the department shall, immediately upon receipt of
 2103  information on or indictment for the felony, temporarily suspend
 2104  a license or appointment issued under this chapter. Such
 2105  suspension shall continue if the licensee is found guilty of, or
 2106  pleads guilty or nolo contendere to, the crime, regardless of
 2107  whether a judgment or conviction is entered, during a pending
 2108  appeal. A person may not transact insurance business after
 2109  suspension of his or her license or appointment.
 2110         (3)The department may adopt rules to administer this
 2111  section.
 2112         Section 45. Section 634.191, Florida Statutes, is amended
 2113  to read:
 2114         634.191 Grounds for discretionary refusal, suspension, or
 2115  revocation of license or appointment of salespersons.—
 2116         (1) The department may, in its discretion, deny, suspend,
 2117  revoke, or refuse to renew or continue the license or
 2118  appointment of any salesperson if it finds that as to the
 2119  salesperson any one or more of the following applicable grounds
 2120  exist under circumstances for which such denial, suspension,
 2121  revocation, or refusal is not mandatory under s. 634.181:
 2122         (a)(1) For any cause for which granting of the license or
 2123  appointment could have been refused had it then existed and been
 2124  known to the department.
 2125         (b)(2) Violation of any provision of this part or of any
 2126  other law applicable to the business of service agreements in
 2127  the course of dealings under the license or appointment.
 2128         (c)(3)Violation of Has violated any lawful order or rule
 2129  of the department or commission.
 2130         (d)(4) Failure or refusal, upon demand, to pay over to any
 2131  company or insurer the salesperson represents or has represented
 2132  any money coming into her or his hands belonging to the company
 2133  or insurer.
 2134         (e)(5) If, in the conduct of business under the license or
 2135  appointment, the salesperson has engaged in unfair methods of
 2136  competition or in unfair or deceptive acts or practices, as such
 2137  methods, acts, or practices are or may be defined under this
 2138  part, or has otherwise shown herself or himself to be a source
 2139  of injury or loss to the public or detrimental to the public
 2140  interest.
 2141         (f)(6)Failure to report to the department within 30 days
 2142  the final disposition of an administrative action taken against
 2143  a salesperson by a governmental agency or other regulatory
 2144  agency in this state or any other state or jurisdiction relating
 2145  to the business of insurance, the sale of securities, or an
 2146  activity involving fraud, dishonesty, trustworthiness, or breach
 2147  of a fiduciary duty. The salesperson must submit a copy of the
 2148  order, consent to order, or other relevant legal documents to
 2149  the department Having been found guilty of, or having pleaded
 2150  guilty or nolo contendere to, a felony or a crime punishable by
 2151  imprisonment of 1 year or more under the law of the United
 2152  States of America or any state thereof or under the law of any
 2153  other country, without regard to whether a judgment of
 2154  conviction has been entered by the court having jurisdiction of
 2155  the cases.
 2156         (2)The department may adopt rules to administer this
 2157  section.
 2158         Section 46. Section 634.320, Florida Statutes, is amended
 2159  to read:
 2160         634.320 Grounds for compulsory refusal, suspension, or
 2161  revocation of license or appointment of sales representatives.—
 2162         (1) The department shall deny, suspend, revoke, or refuse
 2163  to renew or continue the license or appointment of any sales
 2164  representative if it is found that any one or more of the
 2165  following grounds applicable to the sales representative exist:
 2166         (a)(1) Material misstatement, misrepresentation, or fraud
 2167  in obtaining or attempting to obtain a license or appointment.
 2168         (b)(2) The license or appointment is willfully used, or to
 2169  be used, to circumvent any of the requirements or prohibitions
 2170  of this part.
 2171         (c)(3) Willful misrepresentation of any warranty contract
 2172  or willful deception with regard to any such contract, done
 2173  either in person or by any form of dissemination of information
 2174  or advertising.
 2175         (d)(4) In the adjustment of claims arising out of
 2176  warranties, material misrepresentation to a warranty holder or
 2177  other interested party of the terms and coverage of a contract,
 2178  with the intent and for the purpose of effecting settlement of
 2179  such claim on less favorable terms than those provided in and
 2180  contemplated by the contract.
 2181         (e)(5) Demonstrated lack of fitness or trustworthiness to
 2182  engage in the business of home warranty.
 2183         (f)(6) Demonstrated lack of adequate knowledge and
 2184  technical competence to engage in the transactions authorized by
 2185  the license or appointment.
 2186         (g)(7) Fraudulent or dishonest practices in the conduct of
 2187  business under the license or appointment.
 2188         (h)(8) Misappropriation, conversion, or unlawful
 2189  withholding of moneys belonging to an association, insurer, or
 2190  warranty holder, or to others, and received in the conduct of
 2191  business under the license or appointment.
 2192         (i)(9) Unlawfully rebating, or attempting to unlawfully
 2193  rebate, or unlawfully dividing, or offering to divide, her or
 2194  his commission with another.
 2195         (j)(10) Willful failure to comply with, or willful
 2196  violation of, any proper order or rule of the department or
 2197  commission or willful violation of any provision of this part.
 2198         (k)(11) Being found guilty of or pleading guilty or nolo
 2199  contendere to a felony or a crime punishable by imprisonment of
 2200  1 year or more under the law of the United States of America or
 2201  any state thereof or under the law of any other country
 2202  involving moral turpitude, without regard to whether judgment of
 2203  conviction has been entered by the court.
 2204         (l)Having been the subject of, or having had a license,
 2205  permit, appointment, registration, or other authority to conduct
 2206  business subject to, any decision, finding, injunction,
 2207  suspension, prohibition, revocation, denial, judgment, final
 2208  agency action, or administrative order by any court of competent
 2209  jurisdiction, administrative law proceeding, state agency,
 2210  federal agency, national securities, commodities, or options
 2211  exchange, or national securities, commodities, or options
 2212  association involving a violation of any federal or state
 2213  securities or commodities law or any rule or regulation adopted
 2214  thereunder, or a violation of any rule or regulation of any
 2215  national securities, commodities, or options exchange or
 2216  national securities, commodities, or options association.
 2217         (2)When a licensee is charged with a felony enumerated in
 2218  s. 626.207(2), the department shall, immediately upon receipt of
 2219  information on or indictment for the felony, temporarily suspend
 2220  a license or appointment issued under this chapter. Such
 2221  suspension shall continue if the licensee is found guilty of, or
 2222  pleads guilty or nolo contendere to, the crime, regardless of
 2223  whether a judgment or conviction is entered, during a pending
 2224  appeal. A person may not transact insurance business after
 2225  suspension of his or her license or appointment.
 2226         (3)The department may adopt rules to administer this
 2227  section.
 2228         Section 47. Section 634.321, Florida Statutes, is amended
 2229  to read:
 2230         634.321 Grounds for discretionary refusal, suspension, or
 2231  revocation of license or appointment of sales representatives.—
 2232         (1) The department may, in its discretion, deny, suspend,
 2233  revoke, or refuse to renew or continue the license or
 2234  appointment of any sales representative if it is found that any
 2235  one or more of the following grounds applicable to the sales
 2236  representative exist under circumstances for which such denial,
 2237  suspension, revocation, or refusal is not mandatory under s.
 2238  634.320:
 2239         (a)(1) Any cause for which granting of the license or
 2240  appointment could have been refused had it then existed and been
 2241  known to the department.
 2242         (b)(2) Violation of any provision of this part, or of any
 2243  other law applicable to the business of warranties, in the
 2244  course of dealings under the license or appointment.
 2245         (c)(3) Violation of any lawful order or rule of the
 2246  department or commission.
 2247         (d)(4) Failure or refusal to pay over, upon demand, to any
 2248  home warranty association or insurer the sales representative
 2249  represents or has represented any money coming into her or his
 2250  hands which belongs to the association or insurer.
 2251         (e)(5) In the conduct of business under the license or
 2252  appointment, engaging in unfair methods of competition or in
 2253  unfair or deceptive acts or practices, as such methods, acts, or
 2254  practices are or may be defined under this part, or otherwise
 2255  showing herself or himself to be a source of injury or loss to
 2256  the public or detriment to the public interest.
 2257         (f)(6)Failure to report to the department within 30 days
 2258  the final disposition of an administrative action taken against
 2259  a sales representative by a governmental agency or other
 2260  regulatory agency in this state or any other state or
 2261  jurisdiction relating to the business of insurance, the sale of
 2262  securities, or an activity involving fraud, dishonesty,
 2263  trustworthiness, or breach of a fiduciary duty. The sales
 2264  representative must submit a copy of the order, consent to
 2265  order, or other relevant legal documents to the department Being
 2266  found guilty of or pleading guilty or nolo contendere to a
 2267  felony or a crime punishable by imprisonment of 1 year or more
 2268  under the law of the United States of America or any state
 2269  thereof or under the law of any other country, without regard to
 2270  whether a judgment of conviction has been entered by the court.
 2271         (2)The department may adopt rules to administer this
 2272  section.
 2273         Section 48. Section 634.419, Florida Statutes, is amended
 2274  to read:
 2275         634.419 License and appointment required.—No person or
 2276  entity shall solicit, negotiate, advertise, or effectuate
 2277  service warranty contracts in this state unless such person or
 2278  entity is licensed and appointed as a sales representative.
 2279  Sales representatives shall be responsible for the actions of
 2280  persons under their supervision. However, a service warranty
 2281  association licensed as such under this part shall not be
 2282  required to be licensed and appointed as a sales representative
 2283  to solicit, negotiate, advertise, or effectuate its products.
 2284  Sections 501.021-501.055 do not apply to persons or entities
 2285  licensed and appointed under this section, or their affiliates,
 2286  which solicit the sale of a service warranty or related service
 2287  or product in connection with a prearranged appointment at the
 2288  request of the consumer.
 2289         Section 49. Section 634.422, Florida Statutes, is amended
 2290  to read:
 2291         634.422 Grounds for compulsory refusal, suspension, or
 2292  revocation of license or appointment of sales representatives.—
 2293         (1) The department shall deny, suspend, revoke, or refuse
 2294  to renew or continue the license or appointment of any sales
 2295  representative if it is found that any one or more of the
 2296  following grounds applicable to the sales representative exist:
 2297         (a)(1) Material misstatement, misrepresentation, or fraud
 2298  in obtaining or attempting to obtain a license or appointment.
 2299         (b)(2) The license or appointment is willfully used, or to
 2300  be used, to circumvent any of the requirements or prohibitions
 2301  of this part.
 2302         (c)(3) Willful misrepresentation of any service warranty
 2303  contract or willful deception with regard to any such contract,
 2304  done either in person or by any form of dissemination of
 2305  information or advertising.
 2306         (d)(4) In the adjustment of claims arising out of
 2307  warranties, material misrepresentation to a service warranty
 2308  holder or other interested party of the terms and coverage of a
 2309  contract with the intent and for the purpose of effecting
 2310  settlement of the claim on less favorable terms than those
 2311  provided in and contemplated by the contract.
 2312         (e)(5) Demonstrated lack of fitness or trustworthiness to
 2313  engage in the business of service warranty.
 2314         (f)(6) Demonstrated lack of adequate knowledge and
 2315  technical competence to engage in the transactions authorized by
 2316  the license or appointment.
 2317         (g)(7) Fraudulent or dishonest practices in the conduct of
 2318  business under the license or appointment.
 2319         (h)(8) Misappropriation, conversion, or unlawful
 2320  withholding of moneys belonging to an association, insurer, or
 2321  warranty holder, or to others, and received in the conduct of
 2322  business under the license or appointment.
 2323         (i)(9) Unlawfully rebating, or attempting to unlawfully
 2324  rebate, or unlawfully dividing, or offering to divide, her or
 2325  his commission with another.
 2326         (j)(10) Willful failure to comply with, or willful
 2327  violation of, any proper order or rule of the department or
 2328  commission, or willful violation of any provision of this part.
 2329         (k)(11) Being found guilty of or pleading nolo contendere
 2330  to a felony or a crime punishable by imprisonment of 1 year or
 2331  more under the law of the United States of America or any state
 2332  thereof or under the law of any other country involving moral
 2333  turpitude, without regard to whether judgment of conviction has
 2334  been entered by the court having jurisdiction of the case.
 2335         (l)Having been the subject of, or having had a license,
 2336  permit, appointment, registration, or other authority to conduct
 2337  business subject to, any decision, finding, injunction,
 2338  suspension, prohibition, revocation, denial, judgment, final
 2339  agency action, or administrative order by any court of competent
 2340  jurisdiction, administrative law proceeding, state agency,
 2341  federal agency, national securities, commodities, or options
 2342  exchange, or national securities, commodities, or options
 2343  association involving a violation of any federal or state
 2344  securities or commodities law or any rule or regulation adopted
 2345  thereunder, or a violation of any rule or regulation of any
 2346  national securities, commodities, or options exchange or
 2347  national securities, commodities, or options association.
 2348         (2)When a licensee is charged with a felony enumerated in
 2349  s. 626.207(2), the department shall, immediately upon receipt of
 2350  information on or indictment for the felony, temporarily suspend
 2351  a license or appointment issued under this chapter. Such
 2352  suspension shall continue if the licensee is found guilty of, or
 2353  pleads guilty or nolo contendere to, the crime, regardless of
 2354  whether a judgment or conviction is entered, during a pending
 2355  appeal. A person may not transact insurance business after
 2356  suspension of his or her license or appointment.
 2357         (3)The department may adopt rules to administer this
 2358  section.
 2359         Section 50. Section 634.423, Florida Statutes, is amended
 2360  to read:
 2361         634.423 Grounds for discretionary refusal, suspension, or
 2362  revocation of license or appointment of sales representatives.—
 2363         (1) The department may deny, suspend, revoke, or refuse to
 2364  renew or continue the license or appointment of any sales
 2365  representative if it is found that any one or more of the
 2366  following grounds applicable to the sales representative exist
 2367  under circumstances for which such denial, suspension,
 2368  revocation, or refusal is not mandatory under s. 634.422:
 2369         (a)(1) Any cause for which granting of the license or
 2370  appointment could have been refused had it then existed and been
 2371  known to the department.
 2372         (b)(2) Violation of any provision of this part, or of any
 2373  other law applicable to the business of service warranties, in
 2374  the course of dealings under the license or appointment.
 2375         (c)(3) Violation of any lawful order or rule of the
 2376  department or commission.
 2377         (d)(4) Failure or refusal to pay over, upon demand, to any
 2378  service warranty association or insurer the sales representative
 2379  represents or has represented any money coming into her or his
 2380  hands which belongs to the association or insurer.
 2381         (e)(5) In the conduct of business under the license or
 2382  appointment, engaging in unfair methods of competition or in
 2383  unfair or deceptive acts or practices, as such methods, acts, or
 2384  practices are or may be defined under this part, or otherwise
 2385  showing herself or himself to be a source of injury or loss to
 2386  the public or detriment to the public interest.
 2387         (f)(6)Failure to report to the department within 30 days
 2388  the final disposition of an administrative action taken against
 2389  a sales representative by a governmental agency or other
 2390  regulatory agency in this state or any other state or
 2391  jurisdiction relating to the business of insurance, the sale of
 2392  securities, or an activity involving fraud, dishonesty,
 2393  trustworthiness, or breach of a fiduciary duty. The sales
 2394  representative must submit a copy of the order, consent to
 2395  order, or other relevant legal documents to the department Being
 2396  found guilty of or pleading guilty or nolo contendere to a
 2397  felony or a crime punishable by imprisonment of 1 year or more
 2398  under the law of the United States of America or any state
 2399  thereof or under the law of any other country, without regard to
 2400  whether judgment of conviction has been entered by the court
 2401  having jurisdiction of such case.
 2402         (2)The department may adopt rules to administer this
 2403  section.
 2404         Section 51. Section 648.25, Florida Statutes, is reordered
 2405  and amended to read:
 2406         648.25 Definitions.—As used in this chapter, the term:
 2407         (1)“Appointment” means the authority given by an insurer
 2408  or the managing general agent of an insurer through the
 2409  department to a licensee to transact insurance or adjust claims
 2410  on behalf of the insurer or managing general agent.
 2411         (2)(1) “Bail bond agency” means:
 2412         (a) The building where a licensee maintains an office and
 2413  where all records required by ss. 648.34 and 648.36 are
 2414  maintained; or
 2415         (b) An entity that:
 2416         1. Charges a fee or premium to release an accused defendant
 2417  or detainee from jail; or
 2418         2. Engages in or employs others to engage in any activity
 2419  that may be performed only by a licensed and appointed bail bond
 2420  agent.
 2421         (3)(2) “Bail bond agent” means a limited surety agent or a
 2422  professional bail bond agent as hereafter defined.
 2423         (7)(3) “Managing general agent” means any individual,
 2424  partnership, association, or corporation appointed or employed
 2425  by an insurer to supervise or manage the bail bond business
 2426  written in this state by limited surety agents appointed by the
 2427  insurer.
 2428         (5)(4) “Insurer” means any domestic, foreign, or alien
 2429  surety company which has been authorized to transact surety
 2430  business in this state.
 2431         (6)(5) “Limited surety agent” means any individual
 2432  appointed by an insurer by power of attorney to execute or
 2433  countersign bail bonds in connection with judicial proceedings
 2434  who receives or is promised money or other things of value
 2435  therefor.
 2436         (4)(6) “Primary Bail bond agent in charge” means a licensed
 2437  bail bond agent who is responsible for the overall operation and
 2438  management of a bail bond agency location and whose
 2439  responsibilities include hiring and supervising all individuals
 2440  within that location. A bail bond agent may be designated as the
 2441  primary bail bond agent in charge for only one bail bond agency
 2442  location.
 2443         (8)(7) “Professional bail bond agent” means any person who
 2444  pledges United States currency, United States postal money
 2445  orders, or cashier’s checks as security for a bail bond in
 2446  connection with a judicial proceeding and receives or is
 2447  promised therefor money or other things of value.
 2448         (9)(8) “Temporary bail bond agent” means a person licensed
 2449  before January 1, 2024, who is employed by a bail bond agent or
 2450  agency, insurer, or managing general agent, and such licensee
 2451  has the same authority as a licensed bail bond agent, including
 2452  presenting defendants in court; apprehending, arresting, and
 2453  surrendering defendants to the proper authorities, while
 2454  accompanied by a supervising bail bond agent or an agent from
 2455  the same agency; and keeping defendants under necessary
 2456  surveillance. However, a temporary licensee may not execute or
 2457  sign bonds, handle collateral receipts, or deliver bonds to
 2458  appropriate authorities. A temporary licensee may not operate an
 2459  agency or branch agency separate from the location of the
 2460  supervising bail bond agent, managing general agent, or insurer
 2461  by whom the licensee is employed. This does not affect the right
 2462  of a bail bond agent or insurer to hire counsel or to obtain the
 2463  assistance of law enforcement officers. A temporary bail bond
 2464  agent license expires 18 months after issuance and is no longer
 2465  valid on or after June 30, 2025.
 2466         Section 52. Subsection (3) of section 648.26, Florida
 2467  Statutes, is amended to read:
 2468         648.26 Department of Financial Services; administration.—
 2469         (3) The papers, documents, reports, or any other
 2470  investigatory records of the department are confidential and
 2471  exempt from the provisions of s. 119.07(1) until such
 2472  investigation is completed or ceases to be active. For the
 2473  purpose of this section, an investigation is considered active
 2474  “active” while the investigation is being conducted by the
 2475  department with a reasonable, good faith belief that it may lead
 2476  to the filing of administrative, civil, or criminal proceedings.
 2477  An investigation does not cease to be active if the department
 2478  is proceeding with reasonable dispatch and there is good faith
 2479  belief that action may be initiated by the department or other
 2480  administrative or law enforcement agency. This subsection does
 2481  not prevent the department or office from disclosing the content
 2482  of a complaint or such information as it deems necessary to
 2483  conduct the investigation, to update the complainant as to the
 2484  status and outcome of the complaint, or to share such
 2485  information with any law enforcement agency or other regulatory
 2486  body.
 2487         Section 53. Subsection (5) of section 648.27, Florida
 2488  Statutes, is amended to read:
 2489         648.27 Licenses and appointments; general.—
 2490         (5)(a) The license of a bail bond agent shall continue in
 2491  force, without further examination unless deemed necessary by
 2492  the department, until suspended, revoked, or otherwise
 2493  terminated.
 2494         (b)The license of a temporary bail bond agent shall
 2495  continue in force until suspended, revoked, or otherwise
 2496  terminated.
 2497         Section 54. Section 648.285, Florida Statutes, is amended
 2498  to read:
 2499         648.285 Bond agency; ownership requirements; applications
 2500  for bail bond agency licenses.—
 2501         (1) A person may not own, control, manage, or otherwise
 2502  have a pecuniary interest in a bail bond agency unless such
 2503  individual is a licensed pursuant to s. 648.27, and appointed
 2504  through the department, and actively engaged as a bail bond
 2505  agent for at least the preceding 24 months. Any agency that is
 2506  not in compliance with this subsection is shall be subject to
 2507  the issuance of an immediate final order of suspension of its
 2508  license and all operations until the agency achieves compliance.
 2509         (2)Effective January 1, 2024, the department may issue a
 2510  bail bond agency license to any person only after such person
 2511  files a written application with the department and qualifies
 2512  for such license.
 2513         (3)An application for a bail bond agency license must be
 2514  signed by an individual required to be listed in the application
 2515  under paragraph (a). A bail bond agency license may permit a
 2516  third party to complete, submit, and sign an application on the
 2517  bail bond agency’s behalf; however, the bail bond agency is
 2518  responsible for ensuring that the information on the application
 2519  is true and correct, and the bail bond agency is accountable for
 2520  any misstatements or misrepresentations. The application for a
 2521  bail bond agency license must include:
 2522         (a)The name and license number of each owner, partner,
 2523  officer, director, president, senior vice president, secretary,
 2524  treasurer, and limited liability company member who directs or
 2525  participates in the management or control of the bail bond
 2526  agency, whether through ownership of voting securities, by
 2527  contract, by ownership of any agency bank account, or otherwise.
 2528         (b)The residence address of each person required to be
 2529  listed in the application under paragraph (a).
 2530         (c)The name, principal business street address, and valid
 2531  e-mail address of the bail bond agency and the name, address,
 2532  and e-mail address of the agency’s registered agent or person or
 2533  company authorized to accept service on behalf of the bail bond
 2534  agency.
 2535         (d)The physical address of each branch bail bond agency,
 2536  including its name, e-mail address, and telephone number, and
 2537  the date that the branch location began transacting bail bond
 2538  business.
 2539         (e)The name of the full-time bail bond agent in charge of
 2540  the agency office, including branch locations, and his or her
 2541  corresponding location.
 2542         (f)Such additional information as the department requires
 2543  by rule to ascertain the trustworthiness and competence of
 2544  persons required to be listed on the application and to
 2545  ascertain that such persons meet the requirements of this code.
 2546  However, the department may not require that credit or character
 2547  reports be submitted for persons required to be listed on the
 2548  application.
 2549         (4)The department must issue a license to each agency upon
 2550  approval of the application, and each agency location must
 2551  display the license prominently in a manner that makes it
 2552  clearly visible to any customer or potential customer who enters
 2553  the agency location.
 2554         (5)A bail bond agency that holds a current and valid
 2555  registration number with the department shall have its
 2556  registration automatically converted to a license on July 1,
 2557  2024.
 2558         (6)Section 112.011 does not apply to bail bond agencies or
 2559  to applicants for licensure as owners of bail bond agencies.
 2560         (7)(2) If the owner of a bail bond agency dies or becomes
 2561  mentally incapacitated, a personal representative or legal
 2562  guardian may be issued a temporary permit to manage the affairs
 2563  of the bail bond agency. Such person must appoint or maintain
 2564  the appointment of a primary bail bond agent in charge, as
 2565  provided in s. 648.387, and may not engage in any activities as
 2566  a licensed bail bond agent but must comply with s. 648.387
 2567  during the administration of the estate or guardianship. A
 2568  temporary permit is valid for a maximum of 24 months.
 2569         (8)(3) Application for a temporary permit must be made by
 2570  the personal representative or legal guardian upon statements
 2571  and affidavits filed with the department on forms prescribed and
 2572  furnished by it. The applicant must meet the qualifications for
 2573  licensure as a bail bond agent, except for the residency,
 2574  examination, education, and experience requirements.
 2575         Section 55. Subsection (1) of section 648.30, Florida
 2576  Statutes, is amended to read:
 2577         648.30 Licensure and appointment required; prohibited acts;
 2578  penalties.—
 2579         (1)(a) A person or entity may not act in the capacity of a
 2580  bail bond agent or temporary bail bond agency agent or perform
 2581  any of the functions, duties, or powers prescribed for bail bond
 2582  agents or temporary bail bond agencies agents under this chapter
 2583  unless that person or entity is qualified, licensed, and
 2584  appointed as provided in this chapter and employed by a bail
 2585  bond agency.
 2586         (b)A bail bond agent may not sell a bail bond issued by an
 2587  insurer for which the agent and the agent’s bail bond agency do
 2588  not hold a current appointment.
 2589         (c)Except as otherwise provided in this part, a person or
 2590  entity, other than a bail bond agency or an employee of a bail
 2591  bond agency, may not perform any of the functions of a bail bond
 2592  agency without a bail bond agency license.
 2593         Section 56. Section 648.31, Florida Statutes, is amended to
 2594  read:
 2595         648.31 Appointment taxes and fees.—The department shall
 2596  collect in advance all appointment taxes and fees for the
 2597  issuance of any appointment to a bail bond agent or temporary
 2598  bail bond agent, as provided in s. 624.501. There is no fee for
 2599  the issuance of any appointment to a bail bond agency.
 2600         Section 57. Subsection (2) of section 648.34, Florida
 2601  Statutes, is amended to read:
 2602         648.34 Bail bond agents; qualifications.—
 2603         (2) To qualify as a bail bond agent, it must affirmatively
 2604  appear at the time of application and throughout the period of
 2605  licensure that the applicant has complied with the provisions of
 2606  s. 648.355 and has obtained a temporary license pursuant to such
 2607  section and:
 2608         (a) The applicant Is a natural person who has reached the
 2609  age of 18 years and holds a high school diploma or its
 2610  equivalent.
 2611         (b) The applicant Is a United States citizen or legal alien
 2612  who possesses work authorization from the United States Bureau
 2613  of Citizenship and Immigration Services and is a resident of
 2614  this state. An individual who is a resident of this state shall
 2615  be deemed to meet the residence requirement of this paragraph,
 2616  notwithstanding the existence, at the time of application for
 2617  license, of a license in the applicant’s name on the records of
 2618  another state as a resident licensee of such other state, if the
 2619  applicant furnishes a letter of clearance satisfactory to the
 2620  department that his or her resident licenses have been canceled
 2621  or changed to a nonresident basis and that he or she is in good
 2622  standing.
 2623         (c) Will maintain his or her The place of business of the
 2624  applicant will be located in this state and in the county where
 2625  the applicant will maintain his or her records and be actively
 2626  engaged in the bail bond business and work with a licensed
 2627  maintain an agency accessible to the public which is open for
 2628  reasonable business hours.
 2629         (d) The applicant Is vouched for and recommended upon sworn
 2630  statements filed with the department by at least three reputable
 2631  citizens who are residents of the same counties in which the
 2632  applicant proposes to engage in the bail bond business.
 2633         (e) The applicant Is a person of high character and
 2634  approved integrity and has not been convicted of or pleaded
 2635  guilty or no contest to a felony, a crime involving moral
 2636  turpitude, or a crime punishable by imprisonment of 1 year or
 2637  more under the law of any state, territory, or country, whether
 2638  or not a judgment or conviction has been entered.
 2639         (f)Within 2 years immediately before applying for the
 2640  license, has successfully completed a basic certification course
 2641  in the criminal justice system which consists of at least 120
 2642  hours of classroom instruction with a passing grade of 80
 2643  percent or higher and has successfully completed a
 2644  correspondence course for bail bond agents approved by the
 2645  department.
 2646         (g)(f)The applicant Has passed any required examination.
 2647         Section 58. Section 648.355, Florida Statutes, is amended
 2648  to read:
 2649         648.355 Temporary limited license as Limited surety agents
 2650  and agent or professional bail bond agents agent; qualifications
 2651  pending examination.—
 2652         (1) The department may, in its discretion, issue a
 2653  temporary license as a limited surety agent or professional bail
 2654  bond agent, subject to the following conditions:
 2655         (a)The applicant is a natural person at least 18 years of
 2656  age and holds a high school diploma or its equivalent.
 2657         (b)The applicant is a United States citizen or legal alien
 2658  who possesses work authorization from the United States Bureau
 2659  of Citizenship and Immigration Services and is a resident of
 2660  this state. An individual who is a resident of this state shall
 2661  be deemed to meet the residence requirement of this paragraph,
 2662  notwithstanding the existence, at the time of application for
 2663  temporary license, of a license in the individual’s name on the
 2664  records of another state as a resident licensee of such other
 2665  state, if the applicant furnishes a letter of clearance
 2666  satisfactory to the department that the individual’s resident
 2667  licenses have been canceled or changed to a nonresident basis
 2668  and that the individual is in good standing.
 2669         (c)The applicant is a person of high character and
 2670  approved integrity and has never been convicted of or pleaded
 2671  guilty or no contest to a felony, a crime involving moral
 2672  turpitude, or a crime punishable by imprisonment of 1 year or
 2673  more under the law of any state, territory, or country, whether
 2674  or not a judgment or conviction is entered.
 2675         (d)Within 4 years prior to the date of application for a
 2676  temporary license, the applicant has successfully completed a
 2677  basic certification course in the criminal justice system,
 2678  consisting of not less than 120 hours of classroom instruction
 2679  with a passing grade of 80 percent or higher and has
 2680  successfully completed a correspondence course for bail bond
 2681  agents approved by the department.
 2682         (e)The applicant must be employed full time at the time of
 2683  licensure, and at all times throughout the existence of the
 2684  temporary license, by only one licensed and appointed
 2685  supervising bail bond agent, who supervises the work of the
 2686  applicant and is responsible for the licensee’s conduct in the
 2687  bail bond business. The applicant must be appointed by the same
 2688  insurers as the supervising bail bond agent. The supervising
 2689  bail bond agent shall certify monthly to the department under
 2690  oath, on a form prescribed by the department, the names and
 2691  hours worked each week of all temporary bail bond agents. Filing
 2692  a false certification is grounds for the immediate suspension of
 2693  the license and imposition of a $5,000 administrative fine. The
 2694  department may adopt rules that establish standards for the
 2695  employment requirements.
 2696         (f)The application must be accompanied by an affidavit
 2697  verifying proposed employment and a report as to the applicant’s
 2698  integrity and moral character on a form prescribed by the
 2699  department and executed by the proposed employer.
 2700         (g)The applicant must file with the department statements
 2701  by at least three reputable citizens who are residents of the
 2702  same counties in which the applicant proposes to engage as a
 2703  temporary licensee.
 2704         (h)The applicant’s employer is responsible for the bail
 2705  bonding acts of any licensee under this section.
 2706         (2)All applicable license fees, as prescribed in s.
 2707  624.501, must be paid before issuance of the temporary license.
 2708         (3)The temporary license shall be effective for 18 months,
 2709  subject to earlier termination at the request of the employer or
 2710  if suspended or revoked by the department.
 2711         (4) The applicant shall furnish, with the application for
 2712  temporary license, a complete set of the applicant’s
 2713  fingerprints in accordance with s. 626.171(4) and a recent
 2714  credential-sized, fullface photograph of the applicant. The
 2715  department may shall not issue a temporary license under this
 2716  section until the department has received a report from the
 2717  Department of Law Enforcement and the Federal Bureau of
 2718  Investigation relative to the existence or nonexistence of a
 2719  criminal history report based on the applicant’s fingerprints.
 2720         (2)(5) The department may collect a fee necessary to cover
 2721  the cost of a character and credit report made by an established
 2722  and reputable independent reporting service. The fee shall be
 2723  deposited to the credit of the Insurance Regulatory Trust Fund.
 2724         (3)(6)Effective July 1, 2023, any individual licensed by
 2725  the department as a temporary bail bond agent may take the
 2726  required bail bond agent’s licensure examination, may file an
 2727  application for a bail bond agent’s license if otherwise
 2728  qualified for licensure, and may take the required bail bond
 2729  agent’s licensure examination After licensure as a temporary
 2730  licensee for at least 12 months, such licensee may file an
 2731  application for and become eligible for a regular bail bond
 2732  agent’s license based on the licensee’s experience in the bail
 2733  bond business and education pursuant to paragraph (1)(d) and, if
 2734  otherwise qualified, take the required bail bond agent’s
 2735  licensure examination. The applicant and supervising bail bond
 2736  agent must each file an affidavit under oath, on a form
 2737  prescribed by the department, verifying the required employment
 2738  of the temporary agent before issuance of the license.
 2739         (7)In no event shall a temporary licensee licensed under
 2740  this section perform any of the functions for which a bail bond
 2741  agent’s license is required after expiration of the temporary
 2742  license without having passed the written examination as for a
 2743  regular bail bond agent’s license.
 2744         (8)(a)A temporary licensee has the same authority as a
 2745  licensed bail bond agent, including presenting defendants in
 2746  court; apprehending, arresting, and surrendering defendants to
 2747  the proper authorities; and keeping defendants under necessary
 2748  surveillance. However, a temporary licensee must be accompanied
 2749  by a supervising bail bond agent or an agent from the same
 2750  agency when apprehending, arresting, or surrendering defendants
 2751  to authorities.
 2752         (b)A temporary licensee may not execute or sign bonds,
 2753  handle collateral receipts, deliver bonds to appropriate
 2754  authorities, or operate an agency or branch agency separate from
 2755  the location of the supervising bail bond agent, managing
 2756  general agent, or insurer by whom the licensee is employed.
 2757         (4)(9)Effective July 1, 2023, the department may not issue
 2758  a temporary bail bond agent’s license. An individual currently
 2759  licensed as a temporary bail bond agent may continue to be
 2760  licensed in accordance with this chapter. A temporary bail bond
 2761  agent’s license may not be reinstated if the license expires or
 2762  is terminated, suspended, or revoked The department shall not
 2763  issue a temporary bail bond agent’s license to any individual
 2764  who has held such a temporary license in this state within 2
 2765  years after the expiration of such temporary bail bond agent’s
 2766  license.
 2767         Section 59. Subsections (1) through (4) of section 648.382,
 2768  Florida Statutes, are amended to read:
 2769         648.382 Appointment of bail bond agents and bail bond
 2770  agencies temporary bail bond agents; effective date of
 2771  appointment.—
 2772         (1)(a) Each insurer or appointing a bail bond agent and
 2773  each insurer, managing general agent, or bail bond agent
 2774  appointing a temporary bail bond agent or bail bond agency in
 2775  this state must file the appointment with the department and, at
 2776  the same time, pay the applicable appointment fees and taxes. A
 2777  person appointed under this section must hold a valid bail bond
 2778  agent’s or temporary bail bond agency’s agent’s license. There
 2779  is no fee for the issuance of any appointment of a bail bond
 2780  agency.
 2781         (b)Effective July 1, 2025, each insurer or managing
 2782  general agent appointing a bail bond agency in this state must
 2783  file the appointment with the department. An entity appointed
 2784  under this section must hold a valid bail bond agency’s license.
 2785         (2) Before Prior to any appointment, an appropriate officer
 2786  or official of the appointing insurer in the case of a bail bond
 2787  agent or an insurer, managing general agent, or bail bond agent
 2788  in the case of a temporary bail bond agent must submit:
 2789         (a) A certified statement or affidavit to the department
 2790  stating what investigation has been made concerning the proposed
 2791  appointee and the proposed appointee’s background and the
 2792  appointing person’s opinion to the best of his or her knowledge
 2793  and belief as to the moral character and reputation of the
 2794  proposed appointee. In lieu of such certified statement or
 2795  affidavit, by authorizing the effectuation of an appointment for
 2796  a licensee, the appointing entity certifies to the department
 2797  that such investigation has been made and that the results of
 2798  the investigation and the appointing person’s opinion is that
 2799  the proposed appointee is a person of good moral character and
 2800  reputation and is fit to engage in the bail bond business;
 2801         (b) An affidavit under oath on a form prescribed by the
 2802  department, signed by the proposed appointee, stating that
 2803  premiums are not owed to any insurer and that the appointee will
 2804  discharge all outstanding forfeitures and judgments on bonds
 2805  previously written. If the appointee does not satisfy or
 2806  discharge such forfeitures or judgments, the former insurer
 2807  shall file a notice, with supporting documents, with the
 2808  appointing insurer, the former agent or agency, and the
 2809  department, stating under oath that the licensee has failed to
 2810  timely satisfy forfeitures and judgments on bonds written and
 2811  that the insurer has satisfied the forfeiture or judgment from
 2812  its own funds. Upon receipt of such notification and supporting
 2813  documents, the appointing insurer shall immediately cancel the
 2814  licensee’s appointment. The licensee may be reappointed only
 2815  upon certification by the former insurer that all forfeitures
 2816  and judgments on bonds written by the licensee have been
 2817  discharged. The appointing insurer or former agent or agency
 2818  may, within 10 days, file a petition with the department seeking
 2819  relief from this paragraph. Filing of the petition stays the
 2820  duty of the appointing insurer to cancel the appointment until
 2821  the department grants or denies the petition; and
 2822         (c) Any other information that the department reasonably
 2823  requires concerning the proposed appointee; and
 2824         (d)Effective January 1, 2025, a certification that the
 2825  appointing entity obtained from each appointee the following
 2826  sworn statement:
 2827  
 2828         Pursuant to section 648.382(2)(b), Florida Statutes, I
 2829         do solemnly swear that I owe no premium to any insurer
 2830         or agency and that I will discharge all outstanding
 2831         forfeitures and judgments on bonds that have been
 2832         previously written. I acknowledge that failure to do
 2833         this will result in my active appointments being
 2834         canceled.
 2835  
 2836  An appointed bail bond agency must have the attestation under
 2837  this paragraph signed by its owner.
 2838         (3) By authorizing the effectuation of an appointment for a
 2839  licensee, the appointing insurer certifies to the department
 2840  that the insurer will be bound by the acts of the bail bond
 2841  agent or bail bond agency acting within the scope of the agent’s
 2842  or agency’s his or her appointment, and, in the case of a
 2843  temporary bail bond agent, the appointing insurer, managing
 2844  general agent, or bail bond agent, as the case may be, must
 2845  certify to the department that he or she will supervise the
 2846  temporary bail bond agent’s activities.
 2847         (4) Each appointing insurer or, managing general agent, or
 2848  bail bond agent must advise the department in writing within 5
 2849  days after receiving notice or learning that an appointee has
 2850  been arrested for, pled guilty or nolo contendere to, or been
 2851  found guilty of, a felony or other offense punishable by
 2852  imprisonment of 1 year or more under the law of any
 2853  jurisdiction, whether judgment was entered or withheld by the
 2854  court.
 2855         Section 60. Present subsections (1) through (4) of section
 2856  648.386, Florida Statutes, are redesignated as subsections (2)
 2857  through (5), respectively, a new subsection (1) is added to that
 2858  section, and present subsection (2) of that section is amended,
 2859  to read:
 2860         648.386 Qualifications for prelicensing and continuing
 2861  education schools and instructors.—
 2862         (1)DEFINITION OF “CLASSROOM INSTRUCTION”.—As used in this
 2863  section, the term “classroom instruction” means a course
 2864  designed to be presented to a group of students by a live
 2865  instructor using lecture, video, webcast, or virtual or other
 2866  audio-video presentation.
 2867         (3)(2) SCHOOLS AND CURRICULUM FOR CONTINUING EDUCATION
 2868  SCHOOLS.—In order to be considered for approval and
 2869  certification as an approved limited surety agent and
 2870  professional bail bond agent continuing education school, such
 2871  entity must:
 2872         (a) Provide a minimum of three classroom-instruction
 2873  continuing education classes per calendar year.
 2874         (b) Submit a course curriculum to the department for
 2875  approval.
 2876         (c) Offer continuing education classes that comprise which
 2877  are comprised of a minimum of 2 hours of approved classroom
 2878  instruction coursework and are taught by an approved supervising
 2879  instructor or guest lecturer approved by the entity or the
 2880  supervising instructor.
 2881         Section 61. Section 648.387, Florida Statutes, is amended
 2882  to read:
 2883         648.387 Primary Bail bond agent in charge agents; duties.—
 2884         (1) The owner or operator of a bail bond agency shall
 2885  designate a primary bail bond agent in charge for each location,
 2886  and shall file with the department the name and license number
 2887  of the person and the address of the location on a form approved
 2888  by the department. The designation of the primary bail bond
 2889  agent in charge may be changed if the department is notified
 2890  immediately. Failure to notify the department within 10 working
 2891  days after such change is grounds for disciplinary action
 2892  pursuant to s. 648.45.
 2893         (2) The primary bail bond agent in charge is responsible
 2894  for the overall operation and management of a bail bond agency
 2895  location, whose responsibilities may include, without
 2896  limitations, hiring and supervising of all individuals within
 2897  the location, whether they deal with the public in the
 2898  solicitation or negotiation of bail bond contracts or in the
 2899  collection or accounting of moneys. A person may be designated
 2900  as the primary bail bond agent in charge for only one agency and
 2901  location.
 2902         (3) The department may suspend or revoke the license of the
 2903  owner, bail bond agent in charge operator, and primary bail bond
 2904  agency agent if the a bail bond agency employs, contracts with,
 2905  or uses the services of a person who has had a license denied or
 2906  whose license is currently suspended or revoked. However, a
 2907  person who has been denied a license for failure to pass a
 2908  required examination may be employed to perform clerical or
 2909  administrative functions for which licensure is not required.
 2910         (4) An owner, a bail bond agent in charge operator, or a
 2911  bail bond agency primary agent may not employ, contract with, or
 2912  use the services of any person in a bail bond agency who has
 2913  been charged with, found guilty of, or pled guilty or nolo
 2914  contendere to a felony or a crime punishable by imprisonment of
 2915  1 year or more under the law of any jurisdiction, without regard
 2916  to whether judgment was entered or withheld by the court.
 2917         (5) A bail bond agency location may not conduct surety
 2918  business unless a primary bail bond agent in charge is
 2919  designated by, and provides services to, the bail bond agency at
 2920  all times. If the bail bond agent in charge designated with the
 2921  department ends his or her affiliation with the bail bond agency
 2922  for any reason, and the bail bond agency fails to designate
 2923  another bail bond agent in charge within the 10-day period under
 2924  subsection (1) and such failure continues for 90 days, the bail
 2925  bond agency license automatically expires on the 91st day after
 2926  the date the designated bail bond agent in charge ended his or
 2927  her affiliation with the agency The failure to designate a
 2928  primary agent on a form prescribed by the department, within 10
 2929  working days after an agency’s inception or a change of primary
 2930  agent, is a violation of this chapter, punishable as provided in
 2931  s. 648.45.
 2932         Section 62. Section 648.3875, Florida Statutes, is created
 2933  to read:
 2934         648.3875Bail bond agent in charge; qualifications.—
 2935         (1)An application for designation as a bail bond agent in
 2936  charge must be submitted on forms prescribed by the department.
 2937  The application must include the applicant’s full name and the
 2938  applicant’s license number issued pursuant to s. 648.27.
 2939         (2)To qualify as a bail bond agent in charge, it must
 2940  affirmatively appear that, at the time of application and
 2941  throughout the period of licensure, the applicant has complied
 2942  with s. 648.285 and that the applicant has been licensed as a
 2943  bail bond agent for the 24 months immediately preceding the
 2944  appointment as the bail bond agent in charge.
 2945         Section 63. Section 648.39, Florida Statutes, is amended to
 2946  read:
 2947         648.39 Termination of appointment of managing general
 2948  agents, bail bond agents, and temporary bail bond agencies
 2949  agents.—
 2950         (1) An insurer that who terminates the appointment of a
 2951  managing general agent, bail bond agent, or temporary bail bond
 2952  agency agent shall, within 10 days after such termination, file
 2953  written notice thereof with the department together with a
 2954  statement that it has given or mailed notice to the terminated
 2955  agent or agency. Such notice filed with the department must
 2956  state the reasons, if any, for such termination. Information so
 2957  furnished to the department is confidential and exempt from the
 2958  provisions of s. 119.07(1).
 2959         (2) Each insurer shall, within 5 days after terminating the
 2960  appointment of any managing general agent, bail bond agent, or
 2961  temporary bail bond agency agent, give written notice thereof to
 2962  each clerk of the circuit court and sheriff with whom such
 2963  person is registered.
 2964         (3) An insurer that terminates the appointment of a
 2965  managing general agent or, bail bond agent, or temporary bail
 2966  bond agent may authorize such person to continue to attempt the
 2967  arrest and surrender of a defendant for whom a surety bond had
 2968  been written by the bail bond agent before prior to termination
 2969  and to seek discharge of forfeitures and judgments as provided
 2970  in chapter 903.
 2971         Section 64. Section 648.41, Florida Statutes, is repealed.
 2972         Section 65. Section 648.42, Florida Statutes, is amended to
 2973  read:
 2974         648.42 Registration of bail bond agents.—A bail bond agent
 2975  may not become a surety on an undertaking unless he or she has
 2976  registered in the office of the sheriff and with the clerk of
 2977  the circuit court in the county in which the bail bond agent
 2978  resides. The bail bond agent may register in a like manner in
 2979  any other county, and any bail bond agent shall file a certified
 2980  copy of his or her appointment by power of attorney from each
 2981  insurer which he or she represents as a bail bond agent with
 2982  each of such officers. Registration and filing of a certified
 2983  copy of renewed power of attorney shall be performed by April 1
 2984  of each odd-numbered year. The clerk of the circuit court and
 2985  the sheriff may shall not permit the registration of a bail bond
 2986  agent unless such bail bond agent is currently licensed by the
 2987  department and appointed by an insurer the department. Nothing
 2988  in this section shall prevent the registration of a temporary
 2989  licensee at the jail for the purposes of enabling the licensee
 2990  to perform the duties under such license as set forth in this
 2991  chapter.
 2992         Section 66. Subsections (1) and (2) and paragraphs (c) and
 2993  (d) of subsection (8) of section 648.44, Florida Statutes, are
 2994  amended to read:
 2995         648.44 Prohibitions; penalty.—
 2996         (1) A bail bond agent or temporary bail bond agency agent
 2997  may not:
 2998         (a) Suggest or advise the employment of, or name for
 2999  employment, any particular attorney or attorneys to represent
 3000  his or her principal.
 3001         (b) Directly or indirectly solicit business in or on the
 3002  property or grounds of a jail, prison, or other place where
 3003  prisoners are confined or in or on the property or grounds of
 3004  any court. The term “solicitation” includes the distribution of
 3005  business cards, print advertising, or other written or oral
 3006  information directed to prisoners or potential indemnitors,
 3007  unless a request is initiated by the prisoner or a potential
 3008  indemnitor. Permissible print advertising in the jail is
 3009  strictly limited to a listing in a telephone directory and the
 3010  posting of the bail bond agent’s or agency’s name, address, e
 3011  mail address, web address, and telephone number in a designated
 3012  location within the jail.
 3013         (c) Initiate in-person or telephone solicitation after 9:00
 3014  p.m. or before 8:00 a.m., in the case of domestic violence
 3015  cases, at the residence of the detainee or the detainee’s
 3016  family. Any solicitation not prohibited by this chapter must
 3017  comply with the telephone solicitation requirements in ss.
 3018  501.059(2) and (4), 501.613, and 501.616(6).
 3019         (d) Wear or display any identification other than the
 3020  department issued or approved license or approved department
 3021  identification, which includes a citation of the licensee’s
 3022  arrest powers, in or on the property or grounds of a jail,
 3023  prison, or other place where prisoners are confined or in or on
 3024  the property or grounds of any court.
 3025         (e) Pay a fee or rebate or give or promise anything of
 3026  value to a jailer, police officer, peace officer, or committing
 3027  trial court judge or any other person who has power to arrest or
 3028  to hold in custody or to any public official or public employee
 3029  in order to secure a settlement, compromise, remission, or
 3030  reduction of the amount of any bail bond or estreatment thereof.
 3031         (f) Pay a fee or rebate or give anything of value to an
 3032  attorney in a bail bond matter, except in defense of any action
 3033  on a bond.
 3034         (g) Pay a fee or rebate or give or promise anything of
 3035  value to the principal or anyone in his or her behalf.
 3036         (h) Participate in the capacity of an attorney at a trial
 3037  or hearing of one on whose bond he or she is surety.
 3038         (i) Loiter in or about a jail, courthouse, or where
 3039  prisoners are confined.
 3040         (j) Accept anything of value from a principal for providing
 3041  a bail bond except the premium and transfer fee authorized by
 3042  the office, except that the bail bond agent or bail bond agency
 3043  may accept collateral security or other indemnity from the
 3044  principal or another person in accordance with the provisions of
 3045  s. 648.442, together with documentary stamp taxes, if
 3046  applicable. No fees, expenses, or charges of any kind shall be
 3047  permitted to be deducted from the collateral held or any return
 3048  premium due, except as authorized by this chapter or rule of the
 3049  department or commission. A bail bond agent or bail bond agency
 3050  may, upon written agreement with another party, receive a fee or
 3051  compensation for returning to custody an individual who has fled
 3052  the jurisdiction of the court or caused the forfeiture of a
 3053  bond.
 3054         (k) Write more than one power of attorney per charge on a
 3055  bond, except in the case of a cosurety, unless the power of
 3056  attorney prohibits a cosurety.
 3057         (l) Execute a bond in this state on his or her own behalf.
 3058         (m) Execute a bond in this state if a judgment has been
 3059  entered on a bond executed by the bail bond agent or the bail
 3060  bond agency is a named party on the judgment, which has remained
 3061  unpaid for 35 days, unless the full amount of the judgment is
 3062  deposited with the clerk in accordance with s. 903.27(5).
 3063         (n) Make a statement or representation to a court, unless
 3064  such statement or representation is under oath. Such statement
 3065  or representation may not be false, misleading, or deceptive.
 3066         (o) Attempt to collect, through threat or coercion, amounts
 3067  due for the payment of any indebtedness related to the issuance
 3068  of a bail bond in violation of s. 559.72.
 3069         (p) Conduct bail bond business with any person, other than
 3070  the defendant, on the grounds of the jail or courthouse for the
 3071  purpose of executing a bond.
 3072         (2) The following persons or classes may shall not be bail
 3073  bond agents, temporary bail bond agents, or employees of a bail
 3074  bond agent or a bail bond agency business and may shall not
 3075  directly or indirectly receive any benefits from the execution
 3076  of any bail bond:
 3077         (a) Jailers or persons employed in any jail.
 3078         (b) Police officers or employees of any police department
 3079  or law enforcement agency.
 3080         (c) Committing trial court judges, employees of a court, or
 3081  employees of the clerk of any court.
 3082         (d) Sheriffs and deputy sheriffs or employees of any
 3083  sheriff’s department.
 3084         (e) Attorneys.
 3085         (f) Persons having the power to arrest or persons who have
 3086  authority over or control of federal, state, county, or
 3087  municipal prisoners.
 3088         (8)
 3089         (c) Any law enforcement agency, state attorney’s office,
 3090  court clerk, or insurer that is aware that a bail bond agent or
 3091  temporary bail bond agent has been convicted of or who has
 3092  pleaded guilty or no contest to a crime as described in
 3093  paragraph (a) shall notify the department of this fact.
 3094         (d) Upon the filing of an information or indictment against
 3095  a bail bond agent or temporary bail bond agent, the state
 3096  attorney or clerk of the circuit court shall immediately furnish
 3097  the department a certified copy of the information or
 3098  indictment.
 3099         Section 67. Subsection (1) of section 648.441, Florida
 3100  Statutes, is amended to read:
 3101         648.441 Furnishing supplies to unlicensed bail bond agent
 3102  prohibited; civil liability and penalty.—
 3103         (1) An insurer, managing general agent, bail bond agent, or
 3104  temporary bail bond agency agent appointed under this chapter
 3105  may not furnish to any person any blank forms, applications,
 3106  stationery, business card, or other supplies to be used in
 3107  soliciting, negotiating, or effecting bail bonds until such
 3108  person has received from the department a license to act as a
 3109  bail bond agent and is appointed by the insurer. This section
 3110  does not prohibit an unlicensed employee, under the direct
 3111  supervision and control of a licensed and appointed bail bond
 3112  agent, from possessing or executing in the bail bond agency, any
 3113  forms, except for powers of attorney, bond forms, and collateral
 3114  receipts, while acting within the scope of his or her
 3115  employment.
 3116         Section 68. Subsection (3) of section 648.46, Florida
 3117  Statutes, is amended to read:
 3118         648.46 Procedure for disciplinary action against
 3119  licensees.—
 3120         (3) The complaint and all information obtained pursuant to
 3121  the investigation of the department are confidential and exempt
 3122  from the provisions of s. 119.07(1) until such investigation is
 3123  completed or ceases to be active. For the purpose of this
 3124  section, an investigation is considered “active” while the
 3125  investigation is being conducted by the department with a
 3126  reasonable, good faith belief that it may lead to the filing of
 3127  administrative, civil, or criminal proceedings. An investigation
 3128  does not cease to be active if the department is proceeding with
 3129  reasonable dispatch and there is good faith belief that action
 3130  may be initiated by the department or other administrative or
 3131  law enforcement agency. This subsection does not prevent the
 3132  department or office from disclosing the complaint or such
 3133  information as it deems necessary to conduct the investigation,
 3134  to update the complainant as to the status and outcome of the
 3135  complaint, or to share such information with any law enforcement
 3136  agency or other regulatory body.
 3137         Section 69. Section 648.50, Florida Statutes, is amended to
 3138  read:
 3139         648.50 Effect of suspension, revocation upon associated
 3140  licenses and licensees.—
 3141         (1) Upon the suspension, revocation, or refusal to renew or
 3142  continue any license or appointment or the eligibility to hold a
 3143  license or appointment of a bail bond agent or temporary bail
 3144  bond agency agent, the department shall at the same time
 3145  likewise suspend or revoke all other licenses or appointments
 3146  and the eligibility to hold any other such licenses or
 3147  appointments which may be held by the licensee under the Florida
 3148  Insurance Code.
 3149         (2) In case of the suspension or revocation of the license
 3150  or appointment, or the eligibility to hold a license or
 3151  appointment, of any bail bond agent, the license, appointment,
 3152  or eligibility of any and all bail bond agents who are members
 3153  of a bail bond agency, whether incorporated or unincorporated,
 3154  and any and all temporary bail bond agents employed by such bail
 3155  bond agency, who knowingly are parties to the act which formed
 3156  the ground for the suspension or revocation may likewise be
 3157  suspended or revoked.
 3158         (3) A No person whose license as a bail bond agent or
 3159  temporary bail bond agent has been revoked or suspended may not
 3160  shall be employed by any bail bond agent, have any ownership
 3161  interest in any business involving bail bonds, or have any
 3162  financial interest of any type in any bail bond business during
 3163  the period of revocation or suspension.
 3164         Section 70. Subsections (4) and (6) of section 717.135,
 3165  Florida Statutes, are amended to read:
 3166         717.135 Recovery agreements and purchase agreements for
 3167  claims filed by a claimant’s representative; fees and costs.—
 3168         (4) A claimant’s representative must use the Unclaimed
 3169  Property Recovery Agreement or the Unclaimed Property Purchase
 3170  Agreement as the exclusive means of entering into an agreement
 3171  or a contract engaging with a claimant or seller to file a claim
 3172  with the department.
 3173         (6) A claimant’s representative may not use or distribute
 3174  any other agreement of any type, conveyed by any method, form,
 3175  or other media with respect to the claimant or seller which
 3176  relates, directly or indirectly, to unclaimed property accounts
 3177  held by the department or the Chief Financial Officer other than
 3178  the agreements authorized by this section. Any engagement,
 3179  authorization, recovery, or fee agreement that is not authorized
 3180  by this section is void. A claimant’s representative is subject
 3181  to administrative and civil enforcement under s. 717.1322 if he
 3182  or she uses an agreement that is not authorized by this section.
 3183  This subsection does not prohibit lawful nonagreement,
 3184  noncontractual, or advertising communications between or among
 3185  the parties.
 3186         Section 71. Paragraph (a) of subsection (4) of section
 3187  843.021, Florida Statutes, is amended to read:
 3188         843.021 Unlawful possession of a concealed handcuff key.—
 3189         (4)(a) It is a defense to a charge of violating this
 3190  section that the person in custody and in possession of a
 3191  concealed handcuff key is:
 3192         1. A federal, state, or local law enforcement officer,
 3193  including a reserve or auxiliary officer, a licensed security
 3194  officer, or a private investigator as defined in s. 493.6101; or
 3195         2. A professional bail bond agent, temporary bail bond
 3196  agent, runner, or limited surety agent as defined in s. 648.25.
 3197         Section 72. Subsection (4) of section 631.152, Florida
 3198  Statutes, is amended to read:
 3199         631.152 Conduct of delinquency proceeding; foreign
 3200  insurers.—
 3201         (4) Section 631.141(10)(b) 631.141(9)(b) applies to
 3202  ancillary delinquency proceedings opened for the purpose of
 3203  obtaining records necessary to adjudicate the covered claims of
 3204  Florida policyholders.
 3205         Section 73. Paragraph (b) of subsection (3) of section
 3206  631.398, Florida Statutes, is amended to read:
 3207         631.398 Prevention of insolvencies.—To aid in the detection
 3208  and prevention of insurer insolvencies or impairments:
 3209         (3)
 3210         (b) For an insolvency involving a domestic property
 3211  insurer, the department shall:
 3212         1. Begin an analysis of the history and causes of the
 3213  insolvency once the department is appointed by the court as
 3214  receiver.
 3215         2. Submit an initial report analyzing the history and
 3216  causes of the insolvency to the Governor, the President of the
 3217  Senate, the Speaker of the House of Representatives, and the
 3218  office. The initial report must be submitted no later than 4
 3219  months after the department is appointed as receiver. The
 3220  initial report shall be updated at least annually until the
 3221  submission of the final report. The report may not be used as
 3222  evidence in any proceeding brought by the department or others
 3223  to recover assets on behalf of the receivership estate as part
 3224  of its duties under s. 631.141(9) s. 631.141(8). The submission
 3225  of a report under this subparagraph shall not be considered a
 3226  waiver of any evidentiary privilege the department may assert
 3227  under state or federal law.
 3228         3. Provide a special report to the Governor, the President
 3229  of the Senate, the Speaker of the House of Representatives, and
 3230  the office, within 10 days upon identifying any condition or
 3231  practice that may lead to insolvency in the property insurance
 3232  marketplace.
 3233         4. Submit a final report analyzing the history and causes
 3234  of the insolvency and the review of the Office of Insurance
 3235  Regulation’s regulatory oversight of the insurer to the
 3236  Governor, the President of the Senate, the Speaker of the House
 3237  of Representatives, and the office within 30 days of the
 3238  conclusion of the insolvency proceeding.
 3239         5. Review the Office of Insurance Regulation’s regulatory
 3240  oversight of the insurer.
 3241         Section 74. Subsection (2) of section 903.09, Florida
 3242  Statutes, is amended to read:
 3243         903.09 Justification of sureties.—
 3244         (2) A bond agent, as defined in s. 648.25 s. 648.25(2),
 3245  shall justify her or his suretyship by attaching a copy of the
 3246  power of attorney issued by the company to the bond or by
 3247  attaching to the bond United States currency, a United States
 3248  postal money order, or a cashier’s check in the amount of the
 3249  bond; but the United States currency, United States postal money
 3250  order, or cashier’s check cannot be used to secure more than one
 3251  bond. Nothing herein shall prohibit two or more qualified
 3252  sureties from each posting any portion of a bond amount, and
 3253  being liable for only that amount, so long as the total posted
 3254  by all cosureties is equal to the amount of bond required.
 3255         Section 75. (1)The following rules are ratified for the
 3256  sole and exclusive purpose of satisfying any condition on the
 3257  effectiveness imposed under s. 120.541(3), Florida Statutes:
 3258  Rule 69L-7.020, Florida Administrative Code, titled “Florida
 3259  Workers’ Compensation Health Care Provider Reimbursement Manual”
 3260  as filed for adoption with the Department of State pursuant to
 3261  the certification package dated October 22, 2021; Rule 69L
 3262  7.730, Florida Administrative Code, titled “Health Care Provider
 3263  Medical Billing and Reporting Responsibilities” as filed for
 3264  adoption with the Department of State pursuant to the
 3265  certification package dated April 6, 2023; and Rule 7.740,
 3266  Florida Administrative Code, titled “Insurer Authorization and
 3267  Medical Bill Review Responsibilities” as filed for adoption with
 3268  the Department of State pursuant to the certification package
 3269  dated April 6, 2023.
 3270         (2)This section serves no other purpose and may not be
 3271  codified in the Florida Statutes. After this section becomes
 3272  law, its enactment and effective dates shall be noted in the
 3273  Florida Administrative Code, the Florida Administrative
 3274  Register, or both, as appropriate. This section does not alter
 3275  rulemaking additions delegated by prior law, does not constitute
 3276  legislative preemption of or exception to any provision of law
 3277  governing adoption or enforcement of the rule cited, and is
 3278  intended to preserve the status of any cited rule as a rule
 3279  under chapter 120, Florida Statutes. This section does not cure
 3280  any rulemaking defect or preempt any challenge based on a lack
 3281  of authority or a violation of the legal requirements governing
 3282  the adoption of any rule cited.
 3283         (3)This section takes effect July 1, 2023.
 3284         Section 76. Except as otherwise expressly provided in this
 3285  act, this act shall take effect upon becoming a law.