HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #. CS/CS/CS/HB 989 Financial Services
SPONSOR(S). Commerce Committee, State Administration & Technology Appropriations Subcommittee and
Insurance & Banking Subcommittee, LaMarca
TIED BILLS. HB 991 IDEN./SIM. BILLS. CS/CS/SB 1098
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 11 Y, 5 N, As CS Herrera Lloyd
2) State Administration & Technology 13 Y, 0 N, As CS Perez Topp
Appropriations Subcommittee
3) Commerce Committee 17 Y, 0 N, As CS Herrera Hamon
SUMMARY ANALYSIS
The bill makes changes to various laws related to financial services, including the Department of Financial Services
(DFS), that include:
Renaming the Division of Investigative and Forensic Services to the Division of Criminal Investigations.
Establishing a tax liaison appointed by the Chief Financial Officer to assist Florida's taxpayers with federal tax issues.
Allowing complaints to be filed with the Office of Financial Regulation for certain account access restrictions, and
providing for investigation of financial institutions who acted in bad faith , including penalties and prosecution.
Allows suspension or disqualification for Qualified Public Depositories in certain circumstances.
Providing a Workers' Compensation reimbursement methodology for emergency services and care when a
maximum reimbursement allowance is unavailable.
Mandating DFS approval of certain contracts by select governmental or quasi-governmental entities.
Making select changes related to the Board of Funeral, Cemetery, and Consumer Services; granting DFS
authority to disclose certain confidential and exempt public record information; enhancing DFS oversight and
administrative authority over Board licensees; and establishing disbursement protocols upon fulfillment of
preneed contracts.
Amending service of process related provisions; adjusting certain notice requirements for administrative
complaints and citations.
Requiring timely responses from surplus lines insurers to the Division of Consumer Services.
Allowing voluntary submission of information allowing two-factor authentication in agent licensing.
Establishing certain exemptions from the agent licensing examination requirements.
Allowing disclosure of confidential investigative information in certain circumstances.
Requiring licensed adjusters to identify themselves in advertisements based o n their adjuster appointment type.
Allowing general lines agents with a surplus lines license to appoint licenses with a single surplus license agent
appointment.
Revising certain State Fire Marshal-related provisions on fireworks usage, the Florida Fire Prevention Code, and
safety standards for mobile food dispensing vehicles and energy storage systems.
Modifying certain financial requirements for warranty associations and motor vehicle service agreement
companies.
Exempting municipal or county government employees from certain licensing and appointment requirements.
Clarifying that bail bond agents are not exclusively required to be employed with a bail bond agency.
Substantially revising the Florida Disposition of Unclaimed Property Act.
Clarifies a benefit type for firefighters undergoing cancer treatment.
Creating reporting requirements for the Florida Birth-Related Neurological Injury Compensation Association
(NICA) and modifying the calculation of reserve estimates related to limitations on ongoing enrollment.
See Fiscal Analysis & Economic Impact Statement for fiscal impacts of the bill.
Except as specified in the bill, it is effective upon becoming law.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE. 2/26/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
ORGANIZATION OF THE DEPARTMENT OF FINANCIAL SERVICES
The Chief Financial Officer (CFO) is an elected member of the Cabinet, serves as the state’s chief
fiscal officer,1 and is designated as the State Fire Marshal. The CFO is the head of the Department of
Financial Services (DFS). Effective January 2003, the Department of Insurance, Treasury, State Fire
Marshal, and the Department of Banking and Finance merged to form DFS. DFS consists of 13
divisions and several specialized offices.2 DFS is composed of the following divisions and independent
offices:
Accounting and Auditing;
Consumer Services;
Funeral, Cemetery, and Consumer Services;
Insurance Agent and Agency Services;
Investigative and Forensic Services;3
Public Assistance Fraud;
Rehabilitation and Liquidation;
Risk Management;
State Fire Marshal;
Treasury;
Unclaimed Property;
Workers’ Compensation;
Administration; and the
Office of Insurance Consumer Advocate.
Division of Investigative and Forensic Services
The Division of Investigative and Forensic Services consolidates all law enforcement and forensic units
housed within DFS.4 Endowed with a comprehensive mandate, the division probes a diverse array of
fraudulent and criminal activities, such as investigations into insurance fraud, Workers' Compensation
fraud, fire, arson, explosives, theft or misuse of state funds, and the analysis of fire and explosives
samples.5
Effect of the Bill
The bill:
Renames the Division of Investigative and Forensic Services to the Division of Criminal
Investigations (DCI).
Designates DCI as a criminal justice agency with the authority to initiate and conduct
investigations into matters falling under the jurisdiction of the CFO and Fire Marshal.
Federal Tax Liaison
Florida Department of Revenue
1 Art. IV, s. 4, Fla. Const.
2 S. 20.121, F.S.
3 This division includes the Bureau of Forensic Services; Bureau of Fire, Arson, and Explosives Investigations; Office of Fisca l Integrity;
Bureau of Insurance Fraud; and Bureau of Workers’ Compensation Fraud.
4 Department of Financial Services, Investigative and Forensic Services, Ab out the Division, https://myfloridacfo.com/Division/DIFS/
(last visited January 22, 2024).
5 Id.
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The Florida Department of Revenue (DOR) manages programs such as the Child Support Program,
General Tax Administration, and Property Tax Oversight. 6 DOR's primary responsibility lies in
administering Florida's state tax law.7 To encourage tax compliance, DOR offers taxpayer education
through online resources and webinars.8 Furthermore, DOR monitors taxpayer compliance and initiates
enforcement actions, including audits and collections, while prioritizing the protection of taxpayer
rights.9
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.10 The TRA's role is to address taxpayer concerns and ensure adherence to taxpayer
rights as defined by constitutional and statutory provisions. 11
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.12 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.13
TRA facilitates the resolution of taxpayer complaints and problems not resolved through regular
administrative channels within DOR.14 This includes issuing stay actions on behalf of taxpayers facing
irreparable loss due to DOR actions.15 Additionally, TRA’s are required to safeguard taxpayer rights
during tax determination and collection processes. 16
While the TRA advocates for taxpayer rights, they do not administer DOR’s general tax processes. 17
TRA cannot represent taxpayers but works to ensure fair treatment and resolution of taxpayer issues. 18
TRA does not handle inquiries regarding local property tax matters, instead referring them to DOR’s
Property Tax Oversight Program.19
Effect of the Bill
The bill establishes a Federal Tax Liaison position within DFS, tasked with aiding federal taxpayers in
this state. The CFO appoints the liaison, who reports directly to the CFO but operates independently of
DFS’s authority. The liaison's responsibilities include assisting taxpayers with inquiries, directing them
to the appropriate Internal Revenue Service (IRS) divisions and offices for issue resolution, making
recommendations to the IRS to address taxpayer problems, providing information on IRS policies and
procedures for tax law compliance, and requesting IRS records with taxpayer consent to assist
inquiries.
6 DOR, Quick Facts ab out the Florida DOR, https://floridarevenue.com/opengovt/Pages/quick_facts.aspx (last visited Jan. 25, 2024).
7 Florida DOR. Florida’s Taxpayers’ Rights Advocate Annual Report July 1, 2020 -June 30,2021, p.7 4- TRA Annual Report (FY 20-
21).pdf (floridarevenue.com) (last visited Jan. 25, 2024).
8
Id.
9 Id.
10 Id. at 1.
11 Id.
12 Art. I, s. 25, Fla. Const.
13 Florida DOR. Florida’s Taxpayers’ Rights Advocate Annual Report July 1, 2020 -June 30,2021, p.1 4- TRA Annual Report (FY 20-
21).pdf (floridarevenue.com) (last visited Jan. 25, 2024). See also S. 20.21(3), F.S.
14 Id.
15 Id.
16 Id.
17 Id. at 2.
18 Id.
19 Id.
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Division of Risk Management
The Division of Risk Management strives to support Florida's state agencies and universities by
assisting them in managing various risks and ensuring quality coverage for Workers' Compensation,
liability, federal civil rights, automobile liability, and property insurance at reasonable rates.20 This is
achieved through self-insurance, the purchase of insurance, and effective claims administration. 21 The
Division of Risk Management consists of three bureaus: Risk Financing and Loss Prevention, State
Employee Workers’ Compensation Claims, and State Liability and Property Claims. 22
Effect of the Bill
The bill eliminates the requirement for the Division of Risk Management to produce quarterly reports
detailing the total salary indemnification benefits paid and reimbursements from each agency to the State
Risk Management Trust Fund for initial salary indemnity costs.
Financial Institutions Codes
Florida’s Financial Institutions Codes are codified under Title XXXVIII of the Florida Statutes. 23 The
Financial Institutions Codes apply to all state-authorized and state-chartered financial institutions and to
the enforcement of all laws relating to state-authorized and state-chartered financial institutions.24 The
Financial Institutions Codes define the term “financial institution” as a state or federal savings or thrift
association, bank, savings bank, trust company, international bank agency, international banking
corporation, international branch, international representative office, international administrative office,
international trust entity, international trust company representative office, qualified limited service
affiliate, credit union, or an agreement corporation operating pursuant to s. 25 of the Federal Reserve
Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized pursuant to s. 25(a) of the Federal
Reserve Act, 12 U.S.C. ss. 611 et seq.25
A primary purpose of the Financial Institutions Codes is to provide for and promote the safe and sound
conduct of the financial services industry in Florida. 26 The specific chapters under the Financial
Institutions Codes are:
Ch. 655, F.S. – Financial Institutions Generally
Ch. 657, F.S. – Credit Unions
Ch. 658, F.S. – Banks and Trust Companies
Ch. 660, F.S. – Trust Business
Ch. 662, F.S. – Family Trust Companies
Ch. 663, F.S. – International Banking
Ch. 665, F.S. – Associations
Ch. 667, F.S. – Savings Banks
Office of Financial Regulation
The Office of Financial Regulation (OFR) is the regulatory authority for Florida’s financial services
industry.27 OFR reports to the Financial Services Commission (Commission) which is made up of the
Governor and the members of the Florida Cabinet: the Chief Financial Officer (CFO), Attorney General
(AG), and Agriculture Commissioner.28 OFR enforces and administers the Financial Institutions Codes;
20
DFS, Division of Risk Management, Fiscal Year 2021 Annual Report, https://www.myfloridacfo.com/docs-sf/risk-management-
libraries/risk-documents/annual-reports/risk-mgmt-annual-report-2021.pdf?sfvrsn=720e7fcb_4 (last visited Jan. 17, 2024).
21 Id.
22 Id.
23 S. 655.005(1)(k), F.S.
24 S. 655.001(1), F.S.
25 S. 655.005(i), F.S.
26 S. 655.001(2), F.S.
27 Florida Office of Financial Regulation, Ab out Our Agency, https://flofr.gov/sitePages/AboutOFR.htm (last visited Dec. 4, 2023).
28 Id.
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is responsible for supervising banks, credit unions, savings associations, and international bank
agencies; and licenses and regulates non-depository finance companies and the securities industry. 29
Bank Secrecy Act
The federal Bank Secrecy Act (BSA)30 establishes reporting, recordkeeping, and related requirements
for federal and state-chartered31 financial institutions to help detect and prevent money laundering. 32
Specifically, the BSA and other anti-money laundering regulations (BSA/AML) require financial
institutions to, among other things, keep records of cash purchases of negotiable instruments and file
reports of cash transactions exceeding $10,000 (daily aggregate amount). 33
Under the BSA/AML laws, financial institutions must also:
establish effective BSA compliance programs;
establish effective customer due diligence systems and monitoring programs;
screen against Office of Foreign Assets Control lists and other government lists;
establish an effective suspicious activity monitoring and reporting process; and
develop risk-based anti-money laundering programs.34
The U.S. Office of the Comptroller of Currency regularly conducts examinations of national banks,
federal branches, federal savings associations, and agencies of foreign banks in the U.S. to determine
compliance with BSA/AML laws.35
Suspicious Activity Reports
In addition to the other requirements under the BSA/AML laws, financial institutions are also required to
report suspicious activity that might signify money laundering, tax evasion, or other criminal activities. 36
These types of reports are known as “suspicious activity reports” (SAR) and are filed with the Financial
Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, using
FinCEN’s BSA E-filing system.37
Under this requirement, a financial institution is required to file an SAR no later than 30 calendar days
after the date of initial detection of facts that may constitute a basis for filing an SAR. 38 For instances
where no suspect was identified on the date of the incident requiring the filing, a financial institution
may delay filing an SAR for an additional 30 calendar days to identify a suspect. 39 However, in no case
shall reporting be delayed more than 60 calendar days after the date of initial detection of a reportable
transaction.40
29
Florida Department of Financial Services, Financial Services Commission, https://www.myfloridacfo.com/about/about-dfs/commission
(last visited Dec. 4, 2023). See also, s. 655.012, F.S.
30 31 U.S.C. § 5311 et seq.
31 See, 12 C.F.R. § 326.8 (sets forth requirements for state-chartered banks to establish and maintain procedures to ensure and
monitor their compliance with the BSA). See also, 12 C.F.R. § 353 (establishes requirements for state-chartered banks to file a
suspicious activity report under certain circumstances).
32 U.S. Treasury Financial Crimes Enforcement Network, FinCEN’s Legal Authorities, https://www.fincen.gov/resources/fincens-legal-
authorities (last visited Dec. 6, 2023).
33 Id.
34 U.S. Office of the Comptroller of the Currency, Bank Secrecy Act, https://www.occ.treas.gov/topics/supervision-and-
examination/bsa/index-bsa.html (last visited Dec. 5, 2023).
35 Id.
36 U.S. Treasury Finan