The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Fiscal Policy
BILL: CS/CS/CS/SB 1098
INTRODUCER: Fiscal Policy Committee; Appropriations Committee on Agriculture, Environment, and
General Government; Banking and Insurance Committee; and Senator DiCeglie
SUBJECT: Department of Financial Services
DATE: February 26, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Thomas Knudson BI Fav/CS
2. Sanders Betta AEG Fav/CS
3. Thomas Yeatman FP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/CS/SB 1098 revises provisions of multiple programs within the Department of Financial
Services (DFS) to:
 Create the position of Federal Tax Liaison within DFS;
 Rename the Division of Investigative and Forensic Services to the Florida Division of
Investigations and repeal the Division of Public Assistance Fraud, moving its responsibilities
to the renamed division;
 Clarify that under certain conditions, a firefighter diagnosed with cancer, as an alternative to
workers' compensation, is eligible for certain leave time and job retention benefits;
 Revise the special risk provision to refer to employees of the DFS rather than the State Fire
Marshal;
 Eliminate quarterly reports of the total amount of salary indemnification benefits paid and the
total amount of reimbursements from each agency to the State Risk Management Trust Fund;
 Provide for workers’ compensation reimbursement for emergency services and care provided
when a maximum reimbursement allowance is not available. Provides this provision expires
June 30, 2026. Requires the DFS to engage an actuarial services firm to begin development
of maximum reimbursement allowances for emergency services and care;
 Require purchases and contracts of $100,000 or more entered into by the Florida Self-
Insurers Guaranty Association, the Florida Medical Malpractice Joint Underwriting
Association, the Florida Insurance Guaranty Association, the Florida Life and Health
Guaranty Association, the Florida Health Maintenance Organization Consumer Assistance
BILL: CS/CS/CS/SB 1098 Page 2
Plan, and the Florida Workers’ Compensation Guaranty Association, entered into after
July 1, 2024, must first be approved by the DFS and that all such contracts must be
competitively procured and be awarded to the most responsible and responsive vendor;
 Revise appointment authority and requirements for the Board of Funeral, Cemetery, and
Consumer Services (Board); provides that Board members are subject to the code of ethics
under part III of ch. 112, F.S.;
 Amend service requirements for disciplinary and citation procedures to provide for service
by e-mail if service by certified mail cannot be made at the last provided address;
 Provide the DFS with the authority, in emergency situations, to access and secure any facility
licensed under ch. 497, F.S., and to determine if a facility is abandoned and if there is an
emergency situation;
 Provide criminal penalties for violations of s. 497.386, F.S.;
 Provide restrictions on when a preneed licensee may withdraw funds from the amount
deposited in trust;
 Amend provisions regarding investigations and prosecutions within the regulatory authority
of the DFS;
 Require surplus lines insurers to respond to the DFS’ Division of Consumer Services
(Division) within 14 days after receipt of a written request from the Division for documents
and information concerning a consumer complaint;
 Provide for applicants to submit cellular telephone numbers as part of the application process
on a voluntary basis for purposes of two-factor authentication of login credentials;
 Add “Registered Claims Adjuster (RCA) from American Insurance College” to the list of
individuals exempted from the examination requirement to become an agent or adjuster;
 Allow the DFS to disclose confidential investigative information to the subject or the
subject’s representative in order to review the details of the investigation;
 Add the designation of “Chartered Customer Service Representative (CCSR) from American
Insurance College” to the list of criteria to qualify as a customer representative;
 Require a licensed adjuster to identify themselves in any advertisements, solicitations or
written documents based on the adjuster appointment type held;
 Provide that a general lines agent while licensed as a surplus lines agent may appoint licenses
with a single surplus license agent appointment;
 Revise provisions under the State Fire Marshal relating to standards on the use of fireworks,
the Florida Fire Prevention Code, and uniform fire safety standards for mobile food
dispensing vehicles and energy storage systems;
 Allow motor vehicle service agreement companies to utilize multiple contractual liability
insurance policies when backing their financial obligations;
 Revise financial requirements for warranty associations and exempt employees and agents of
a municipality, county government, or special district from the licensing and appointment
requirements;
 Revise provisions relating to bail bond agents and agencies; provide that bail bond agents are
not required to be employed with a bail bond agency;
 Revise provisions of the Florida Disposition of Unclaimed Property Act;
 Remove the exclusion of 20 percent of the asset value from the calculation of assets and
liabilities provisions related for Florida Birth-Related Neurological Injury Compensation
Association (NICA) claims;
BILL: CS/CS/CS/SB 1098 Page 3
 Require NICA by September 1, 2024, to provide a report of recommendations to address
actuarial soundness to the Governor, the Chief Financial Officer, the President of the Senate,
and the Speaker of the House of Representatives for ensuring a revenue level to maintain
actuarial soundness;
 Direct the Division of Law Revision to prepare a reviser’s bill to implement certain changes
within this bill; and
 Authorize the DFS to adopt rules to implement provisions contained within the bill.
The bill has a negative impact on state revenues and expenditures. See Section V. Fiscal Impact.
Except as otherwise provided, the bill takes effect upon becoming a law.
II. Present Situation:
Internal Revenue Service (IRS)
The IRS is a bureau of the United States Department of Treasury (Treasury) and is organized to
carry out the responsibilities of the secretary of the Treasury under s. 7801 of the Internal
Revenue Code.1 The mission of the IRS is to provide the United States of America’s taxpayers
with top quality service by helping them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.2 The IRS processes federal tax returns,
payments, refunds and correspondence; levies federal tax liens; provides enforcement and
compliance operations; enforces collection programs; resolves tax disputes through the IRS
Independent Office of Appeals; and litigates tax cases within the U.S. Tax Court.3
The IRS offers many tools to assist taxpayers with tax questions and concerns, including online
(self-service options), in person or by phone.4 Taxpayer Assistance Center Offices (IRS Offices)
are located throughout the United States and the IRS also provides IRS-certified volunteers and
Taxpayer Advocate Services for taxpayers who meet certain criteria.5 The IRS provides specific
toll-free phone numbers and help lines for: individuals and businesses tax filers, overseas callers
and callers who are hearing impaired; and persons who have questions regarding non-profit
taxes, estate and gift taxes and excise taxes.6 The IRS provides multiple toll free, 24-hour a day,
pre-recorded messages covering more than 100 tax topics for tax payers seeking assistance.7
As of February 6, 2024, there are 18 IRS Offices in Florida. The IRS has offices in Clearwater,
Daytona Beach, Ft. Myers, Gainesville, Jacksonville, Lakeland, Melbourne, Miami, Ocala,
Orlando, Panama City, Pensacola, Plantation/Ft. Lauderdale, Port St. Lucie, Sarasota,
1
Internal Revenue Service (IRS), The Agency, its Mission and Statutory Authority, https://www.irs.gov/about-irs/the-agency-
its-mission-and-statutory-authority (last visited Feb. 6, 2024). See 26 U.S.C. s. 7801 – U.S. Code (Jan. 1, 2018), Internal
Revenue Code, Authority of Department of Treasury, available at https://codes.findlaw.com/us/title-26-internal-revenue-
code/26-usc-sect-7801/ (last visited Feb. 6, 2024).
2
Id.
3
IRS, IRS operations: Status of mission-critical functions, https://www.irs.gov/newsroom/irs-operations-status-of-mission-
critical-functions (last visited Feb. 6, 2024).
4
IRS, Let Us Help You, https://www.irs.gov/help/let-us-help-you (last visited Feb. 6, 2024).
5
Id.
6
Id.
7
IRS, IRS Tax Tip 2001-39, Toll-Free Telephone Service, available at https://www.irs.gov/pub/irs-news/at-01-39.pdf (last
visited Feb. 6, 2024).
BILL: CS/CS/CS/SB 1098 Page 4
Tallahassee, Tampa, and West Palm Beach.8 Each Florida location is open from 8:30 a.m. to
4:30 p.m., Monday through Friday. Some of the Florida IRS Offices offer extended hours on set
days. Each Florida IRS Office offer online and local services.9
Florida Department of Revenue
The Florida Department of Revenue (DOR) administers three main programs: Child Support
Program, General Tax Administration, and Property Tax Oversight.10 The DOR's primary
responsibility lies in administering Florida's state tax law.11 To encourage tax compliance,
the DOR offers taxpayer education through online resources and webinars.12 In addition,
the DOR monitors taxpayer compliance and initiates enforcement actions, including audits and
collections, while prioritizing the protection of taxpayer rights.13
Taxpayer Rights Advocate
The Taxpayer Rights Advocate (TRA) is a position established by statute, appointed by, and
accountable to the DOR Chief Inspector General, with removal from office authorized only by
the Chief Inspector General.14 The TRA's role is to address taxpayer concerns and ensure
adherence to taxpayer rights as defined by Florida constitutional and statutory provisions.15
Article I, Section 25 of the Florida Constitution provides for the enactment of a Taxpayers’ Bill
of Rights by the legislature, outlining taxpayers’ rights and responsibilities and the government’s
obligations to treat taxpayers fairly.16 The 1992 Florida Legislature created the Taxpayer’s Bill
of Rights, specified in s. 213.015, F.S., which grants taxpayers the right to request assistance
from a DOR Taxpayer Rights Advocate.17 The TRA facilitates the resolution of taxpayer
complaints and problems not resolved through regular administrative channels within the DOR.18
This includes issuing stay actions on behalf of taxpayers facing irreparable loss due to the DOR
actions and issuing an annual report.19 Additionally, the TRA’s are required to safeguard and
protect taxpayer rights during tax determination and collection processes.20 While the TRA
advocates for taxpayer rights, they do not administer the DOR’s general tax processes.21 The
TRA cannot represent taxpayers but works to ensure fair treatment and resolution of taxpayer
8
IRS, Taxpayer Assistance Center Office Locator, https://apps.irs.gov/app/office-locator/ (last visited Feb. 6, 2024).
9
Id.
10
Florida Department of Revenue (DOR), Quick Facts About the Florida DOR,
https://floridarevenue.com/opengovt/Pages/quick_facts.aspx (last visited Feb. 6, 2024).
11
Florida DOR. Florida’s Taxpayers’ Rights Advocate Annual Report July 1, 2020 – June 30, 2021, p.7
https://floridarevenue.com/Documents/taxpayerrights/4-%20TRA%20Annual%20Report%20%20%28FY%2020-21%29.pdf
(last visited Feb. 6, 2024).
12
Id.
13
Id.
14
Id at 1.
15
Id.
16
FLA. CONST., Art. I, s. 25
17
Florida DOR. Florida’s Taxpayers’ Rights Advocate Annual Report July 1, 2020 – June 30,2021, p.7
https://floridarevenue.com/Documents/taxpayerrights/4-%20TRA%20Annual%20Report%20%20%28FY%2020-21%29.pdf
(last visited Feb. 6, 2024).
18
Id.
19
Id.
20
Id.
21
Id at 2.
BILL: CS/CS/CS/SB 1098 Page 5
issues.22 The TRA does not handle inquiries regarding local property tax matters, instead
referring them to the DOR’s Property Tax Oversight Program.23
Powers and Duties of the Department of Financial Services
The organizational structure of the Department of Financial Services (DFS) is set forth in
s. 20.121, F.S. The DFS is statutorily responsible for:
 Carrying out the state’s accounting and auditing functions, including preparing the state’s
Comprehensive Annual Financial Report; monitoring state contracts; and making payment
for state expenditures.
 Implementing state fire prevention and control measures, including the investigation of arson
and other suspicious fires; training and certification of firefighter candidates; and regulation
of explosive storage and use.
 Operating the state’s risk management program and securing insurance and reinsurance for
covered state liabilities.
 Managing the state Treasury and directing safekeeping and the investment of all state funds.
 Managing the deferred compensation program for state employees.
 Investigating fraud, including insurance fraud, public assistance fraud, and false claims
against the state.
 Regulating cemeteries and funeral homes.
 Licensing and oversight of insurance agents and agencies.
 Ensuring that Florida employers provide workers’ compensation coverage for their
employees in a cost effective manner.
 Assisting consumers in the resolution of issues pertaining to insurance and funeral services.
 Collecting and returning unclaimed property belonging to Florida residents.24
The DFS is composed of the following thirteen divisions:
 Accounting and Auditing;
 Administration;
 Consumer Services;
 Funeral, Cemetery, and Consumer Services;
 Insurance Agent and Agency Services;
 Investigative and Forensic Services;
 Public Assistance Fraud;
 Rehabilitation and Liquidation;
 Risk Management;
 State Fire Marshal;
 Treasury;
 Unclaimed Property; and
22
Id.
23
Id.
24
Florida Department of Financial Services, Statement of Agency Organization and Operation, Organization of the
Department of Financial Services, https://www.myfloridacfo.com/required/agency-org (last visited Feb. 6, 2024).
BILL: CS/CS/CS/SB 1098 Page 6
 Workers’ Compensation.25
Division of Investigative and Forensic Services
The Division of Investigative and Forensic Services (DIFS) functions as a criminal justice
agency for purposes of ss. 943.045-943.08, F.S., and is authorized to conduct investigations
within or outside of Florida, as necessary. The DIFS includes the following office and bureaus:
 The Bureau of Forensic Services;
 The Bureau of Fire, Arson, and Explosives Investigations;
 The Office of Fiscal Integrity;
 The Bureau of Insurance Fraud; and
 The Bureau of Workers’ Compensation Fraud.
The DIFS encompasses all enforcement and forensic components within the DFS, investigating a
wide range of fraudulent and criminal acts including:
 Insurance fraud investigations;
 Workers’ compensation fraud investigations;
 Fire, arson, and explosives investigations;
 Theft/misuse of state funds; and
 Fire and explosives sample analysis.26
The DIFS investigates various types of insurance fraud including Personal Injury Protection
fraud, workers' compensation fraud, vehicle fraud, application fraud, licensee fraud,
homeowner's insurance fraud, and healthcare fraud.27 The DIFS is directed by statute to