BEGIN:VCALENDAR VERSION:2.0 METHOD:PUBLISH PRODID:-//Telerik Inc.//Sitefinity CMS 15.4//EN BEGIN:VEVENT DESCRIPTION:NOTICE OF PROPOSED RULEDEPARTMENT OF FINANCIAL SERVICESDivision of Insurance Agent and Agency Services \; RULE NO.: \; \;&nbs p\; \; \; \; \; \; \; \; \; \; \;& nbsp\; \; \; RULE TITLE:69B-211.041 \; \; \; \;&nb sp\; \; \; \; \; \; \; \; \; \; Defini tions69B-211.042 \; \; \; \; \; \; \; \;&n bsp\; \; \; \; \; \; Effect of Law Enforcement Records on Applications for Licensure \; PURPOSE AND EFFECT: The proposed ame ndments will update the rules by incorporating statutory changes\, clarify ing current rule requirements\, and making other necessary changes. \; SUMMARY: Rule 69B-211.041\, F.A.C.\, is being repealed and the definition s contained therein are being moved to rule 69B-211.042\, F.A.C. The propo sed changes to rule 69B-211.042\, F.A.C.\, will: define the terms &ldquo\; applicant\,&rdquo\; &ldquo\;application\,&rdquo\; &ldquo\;charge\,&rdquo\; &ldquo\;felony\,&rdquo\; &ldquo\;financial services business\,&rdquo\; &l dquo\;law enforcement record\,&rdquo\; &ldquo\;misdemeanor\,&rdquo\; and & ldquo\;pre-trial intervention\;&rdquo\; specify the documents that applica nts with criminal backgrounds must submit\; clarify the treatment of seale d or expunged criminal records\; replace the $1\,500 administrative penalt y with a 90-day disqualifying period if the applicant fails to accurately answer questions about the applicant&rsquo\;s law enforcement record\; pro vide for permanent bars from licensure and disqualifying periods (ineligib ility for licensure) for applicants with certain crimes or multiple crimes \; provide criteria for evaluating an applicant&rsquo\;s fitness for licen sure due to a pardon or restoration of civil rights\; and make other neces sary changes. \;SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The agency has determined that this rule will n ot have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200\,000 in the aggregate withi n one year after the implementation of the rule. A SERC has not been prepa red by the agency. \; The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statemen t of estimated regulatory costs or if no SERC is required\, the informatio n expressly relied upon and described herein: The Department&rsquo\;s econ omic analysis of the potential impact of the proposed rule amendments and repeal determined that there will be no adverse economic impact or increas ed regulatory costs that would require legislative ratification. \; An y person who wishes to provide information regarding the statement of esti mated regulatory costs\, or to provide a proposal for a lower cost regulat ory alternative must do so in writing within 21 days of this notice. \ ; RULEMAKING AUTHORITY: 624.308\, 626.207\, 626.9954\, 626.9958\, 634.021\ , 634.302\, 634.402 FS. \; LAW IMPLEMENTED: 112.011\, 624.307(1)\, 626 .112\, 626.161\, 626.171\, 626.172\, 626.201\, 626.207\, 626.211\, 626.291 \, 626.601\, 626.611\, 626.621\, 626.631\, 626.641\, 626.9951\, 626.9953\, 626.9954\, 626.9957\, 634.171\, 634.318\, 634.420\, 642.036\, 943.0585(6) \, 943.059(6) FS. \; IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS N OTICE\, A HEARING WILL BE HELD AT THE DATE\, TIME AND PLACE SHOWN BELOW (I F NOT REQUESTED\, THIS HEARING WILL NOT BE HELD): \; DATE AND TIME: Ma y 8\, 2023 at 10:00 AM \; PLACE: Room 116\, Larson Building\, 200 E. G aines Street\, Tallahassee\, FL \; THE PERSON TO BE CONTACTED REGARDIN G THE PROPOSED RULE IS: David Jones\, Chief\, Bureau of Licensing\, 200 E. Gaines Street\, Tallahassee\, FL 32399-0318\; (850)413-5460 or David.Jone s@myfloridacfo.com. \; THE FULL TEXT OF THE PROPOSED RULE IS: \; 6 9B-211.041 Definitions. Rulemaking Authority 624.308\, 626.207 FS. Law Imp lemented 112.011\, 624.307(1)\, 626.161\, 626.171\, 626.201\, 626.207\, 62 6.211\, 626.291\, 626.601\, 626.611(7)\, (14)\, 626.621(8)\, 626.631\, 626 .641 FS. History&ndash\;New 10-17-02\, Formerly 4-211.041\, Amended 8-27-1 2\, Repealed __________.69B-211.042 Effect of Law Enforcement Records on A pplications for Licensure.(1) For the purposes of this Rule Chapter\, the following definitions will apply:(a) &ldquo\;Applicant&rdquo\; means an in dividual applying for licensure or relicensure under Chapters 626\, 634\, or 642\, F.S.\, and an officer\, director\, majority owner\, partner\, man ager\, or other person who manages or controls an entity applying for lice nsure or relicensure under Chapters 626\, 634\, or 642\, F.S.(b) &ldquo\;A pplication&rdquo\; or &ldquo\;application process&rdquo\; refers to an app lication for licensure procedurally processed under Chapters 626\, 634\, o r 642\, F.S.(c) &ldquo\;Charge&rdquo\; or &ldquo\;charges&rdquo\; refers t o the official allegations contained in the official document setting out the crimes that an applicant is alleged to have committed\, including an & ldquo\;information\,&rdquo\; &ldquo\;indictment\,&rdquo\; or other documen t that specifies the charges against an applicant.(d) &ldquo\;Felony&rdquo \; means and includes any crime of any type\, whether or not related to in surance\, which crime is designated as a &ldquo\;felony&rdquo\; by statute in the jurisdiction of prosecution\, or designated as a &ldquo\;felony&rd quo\; in the charges. If a crime is a felony in the jurisdiction of prosec ution\, it will be treated as a felony under this rule notwithstanding tha t the same activity is not a felony in Florida. The term &ldquo\;felony&rd quo\; includes felonies of all degrees.(e) &ldquo\;Financial services busi ness&rdquo\; means any financial activity regulated by the Department of F inancial Services\, the Office of Insurance Regulation\, or the Office of Financial Regulation.(f) &ldquo\;Law enforcement record&rdquo\; includes t he following:1. Any criminal charge filed against the applicant in the cou rts of any state or federal district or territory\, or other country\, for which the applicant pled guilty or no contest\, regardless of whether the re was an adjudication of guilt by the court\, or for which the applicant was found guilty\, and regardless of whether the matter is under appeal by the applicant\; and\,2. Criminal charges that were subsequently pardoned or for which civil rights have been restored. The phrase includes criminal charges which\, at the time of the application\, are under an order to se al by a court of competent jurisdiction\; and3. All criminal charges again st the applicant\, whether by information or other charging document\, eve n where no formal determination of disposition has been made.(g) &ldquo\;M isdemeanor&rdquo\; means and includes any crime of any type which is desig nated as a &ldquo\;misdemeanor&rdquo\; by statute in the jurisdiction of p rosecution\, or is so designated in the charges. If a crime is considered a misdemeanor in the jurisdiction of prosecution\, it will be treated as a misdemeanor under this rule chapter notwithstanding that the same activit y is not a misdemeanor in Florida. The term includes misdemeanors of all d egrees.(h) &ldquo\;Pre-trial intervention&rdquo\; refers to a program oper ated under section 948.08\, F.S.\, or a similar program in the state of Fl orida or any other jurisdiction.(1) renumbered as (2) No change. (a) No ch ange. (b) As provided by statute\, an applicant must provide the Departmen t with fingerprints and permit the Department to obtain the applicant&rsqu o\;s law enforcement record from the Florida Department of Law Enforcement and/or the Federal Bureau of Investigation. The Department will shall not process an application when fingerprints are required until the Departmen t receives readable and properly executed fingerprints. Applications are i ncomplete until fingerprints are received.(c) At the direction of the Depa rtment\, as a part of the application process\, and in addition to the app lication\, the following documentation is required to be submitted by the applicant:1. A true and complete copy of the police arrest affidavit or ar rest report or similar document for all arrests.2. A certified true and co mplete copy of the charging document\, such as an information\, indictment \, or ticket.3. A certified true and complete copy of the plea\, judgment\ , and sentence.4. A certified true and complete copy of the order of entry into pre-trial intervention\, where applicable\, and the order of termina tion of pre-trial intervention showing dismissal of the charges.5. A true and complete copy of any order of restoration of civil rights.6. A true an d complete copy of any order sealing court records.7. A true and complete copy of any order expunging court records.8. A true and complete copy of a ny pardon.(d) If during the application process the Department requests th at an applicant submit documentation related to the applicant&rsquo\;s law enforcement record but that documentation cannot be obtained because the document no longer exists\, the applicant must shall supply a certified or sworn statement\, signed by a representative of the agency that would hav e been the custodian of such documentation. \, The custodian must indicate indicating that documentation of such matter does not exist or that the r ecord was lost\, damaged or destroyed\, or otherwise indicate indicating w hy the documentation cannot be produced. All requested documentation must be legible.(e) All requested documentation must be legible.(e) renumbered as (f) No change. (3) (2) Effect of Failure to Truthfully Answer Applicati on Questions Regarding Applicant&rsquo\;s Law Enforcement Record.(a) No ch ange. (b)1. If an applicant fails to accurately and truthfully answer Depa rtment questions about the applicant&rsquo\;s law enforcement record relat ed to felonies\, or financial services business based misdemeanors\, the a pplication will shall be denied. and a A disqualifying period of 90 days w ill one year shall be imposed before the applicant may reapply for or be g ranted any license. As an alternative to a one-year disqualifying period\, the applicant may elect to pay an administrative penalty of $1\,500.00. T his includes answering any application question about the existence of law enforcement records in the negative when an affirmative answer was approp riate. The This one-year disqualifying period will shall begin the later o f: (1) the date the Department&rsquo\;s denial of the initial application becomes final\; or (2) the end of any disqualifying period based on the cr iminal history of the applicant. The mitigating factors in subsection (6) (7)\, below\, will shall not be used to reduce the amount of the disqualif ying period for failure to disclose. The Department will not consider any application by the same applicant for a similar license dated or filed wit hin 30 days of a denial issued pursuant to this subsection.2. If the Depar tment discovers that an applicant failed to accurately and truthfully answ er any question relating to law enforcement records after a license has be en granted\, the Department will shall suspend or revoke each license curr ently held by the licensee pursuant to sections 626.611 and 626.9957 626.9 953\, F.S.(4) (3) Classification of and Treatment of Certain Felony and Mi sdemeanor Crimes.(a) \; The seven-year disqualifying period applies to all felony cases involving the passing or uttering of a worthless bank ch eck\, or obtaining property in return for a worthless bank check\, or any other check-related felony where the check or property involved is worth $ 500 or less. Application for licensure shall not be denied or subjected to a disqualifying period based solely on the fact that an applicant was fou nd guilty of\, or pled guilty or nolo contendere to\, a misdemeanor\, unle ss the misdemeanor is directly related to the financial services business as defined in section 626.207(1)\, F.S.\, which shall also apply to the sa me term used in section 626.9954(3)(c)\, F.S.(b) A crime is directly relat ed to the financial services business as defined in sections section 626.2 07(1) or 626.9951\, F.S.\, or rule 69B-211.042(1)\, F.A.C.\, if a financia l services business\, a financial services business relationship\, a finan cial services business resource\, or a transaction relating to or involvin g a financial services business\, was used in the commission or furtheranc e of the crime.(c) For the purposes of this rule\, the seven year disquali fying period in sections 626.207(3)(b) and 626.9954(3)(b)\, F.S.\, applies to all felony cases involving the passing or uttering of a worthless bank check\, or obtaining property in return for a worthless bank check or any other check-related felony where the check or property involved is worth $500.00 or less.(5) (4) Applicants With Multiple Crimes.(a) Where an appli cant has committed multiple crimes\, a base period of disqualification and an additional period of disqualification will be calculated as follows mo re than one crime subject to a disqualifying period\, an additional disqua lifying period for each of those additional crimes shall be added to the d isqualifying period. For each additional crime that is subject to a disqua lifying period the Department shall add:1. The base period is the disquali fying period which is\, or was\, the last to expire.2. 1. Five years will be added to the base disqualifying period for each additional felony invol ving moral turpitude but not subject to the permanent bar in section 626.2 07(2) or 626.9954(2)\, F.S.\;3. 2. Two years will be added to the base dis qualifying period for each additional felony not involving moral turpitude and not subject to the permanent bar in section 626.207(2) or 626.9954(2) \, F.S.\; and\,4. 3. Two years will be added to the base disqualifying per iod for each additional misdemeanor directly related to a financial servic es business.(b) The additional disqualifying period shall be added to the disqualifying period for the most serious crime\, and the combined total d isqualifying period will begin upon then run from the date of the applican t&rsquo\;s final release from supervision or completion of the sentence fo r the most recent crime upon which the base period is established that wou ld be subject to a disqualifying period under section 626.207(3) or 626.99 54(3)\, F.S.(c) Multiple crimes arising out of the same act\, or related a cts\, performed over a relatively short period of time and in a concerted course of conduct\, and crimes committed in one transaction\, episode\, or course of conduct are treated by the Department as one crime for applicat ion of this rule. The most serious crime will be used as the basis for the disqualifying period. For the crimes to be considered a single crime\, th e applicant must have pled to or been convicted of such crimes on the same date and the judgment and sentence for those crimes must have been impose d concurrently. In such cases\, the crime with the longest associated disq ualifying period will be used for the base period calculation.(6) (5) Miti gating Factors.(a) If applicable\, the mitigating factors listed below wil l may be used to shorten the total disqualifying period only when the 15- fifteen year disqualifying period established in sections section 626.207( 3)(a) or 626.9954(3)(a)\, F.S.\, is applicable. Where more than one mitiga ting factor is present\, the applicant is entitled to add all applicable y ears of mitigation together and deduct that number from the total disquali fying period only when the 15- fifteen year disqualifying period is applic able\; however\, the 15- fifteen year disqualifying period may not be redu ced to less than seven years. Mitigating factors cannot be used to reduce the seven year disqualifying periods established by sections 626.207(3)(b) or (c) or 626.9954(3)(b) and (c)\, F.S. Mitigating factors may not be use d to reduce the amount of the disqualifying period for failure to answer q uestions accurately and truthfully established in subparagraph (3)(b)1. (2 )(b)1.\, above. The following mitigating factors may apply:1. One year is deducted if the applicant was age 21 twenty-one or younger when the felony crime which is the basis for the disqualifying period was committed and i f there are no felony crimes on the applicant&rsquo\;s law enforcement rec ord after reaching the age of 22 twenty-two.2. One year is deducted if the applicant furnishes proof that the applicant was addicted to drugs\, suff ering from active alcoholism\, or suffering from a psychiatric disorder\, at the time of the crime which is the basis for the disqualifying period a nd the applicant furnishes a letter from a medical doctor\, psychologist\, or therapist\, who is licensed by a duly constituted state licensing body \, that states that the licensed person has examined or treated the applic ant and that in his or her professional opinion the condition is currently in remission and has been in remission for at least the previous 12 month s.3. through 6. No change. 7. One year is deducted if the applicant has be en employed at least 40 hours per week for a continuous two-year period wi thin the five years immediately preceding the application as evidenced by a letter from the employer(s)\, tax forms\, or pay stubs. 8. One year is d educted if the applicant has served at least one year in the United States Armed Forces\, active or reserves\, subsequent to the commission of the c rime which is the basis for the disqualifying period and provided the any discharge was without an other than honorable discharge designation.(b) Th e burden is on the applicant to establish these mitigating factors. Any of the mitigating factors above that involve a state or governmental agency\ , a university or school\, or a court must be established by providing a c ertified true and complete copy of the document proving that mitigating fa ctor.(7) (6) Aggravating Factors.(a) The following aggravating factors app ly:1. No change. 2. One year is added to the disqualifying period if the a pplicant was found by the court to have violated probation for the crime o r crimes used to establish the disqualifying period and the violation was not a technical violation\;3. through 6. No change. (b) No change. (7) ren umbered as (8) No change.(8) renumbered as (9) No change. (9) Pre-Trial In tervention. The Department will not grant licensure to any person who at t he time of the application is participating in a pre-trial intervention pr ogram for any crime that could be used as the basis of denial pursuant to section 626.207\, F.S.(10) Sealed or Expunged Effect of an Order Sealing o r Expunging Criminal Records.(a) Pursuant to sections 943.0585(6) and 943. 059(6)\, F.S.\, an applicant is not required to disclose or acknowledge\, and is not permitted to affirmatively deny\, any arrest or criminal procee ding when the record of such has been legally and properly expunged or sea led by order of a court of competent jurisdiction or by operation of law i n the jurisdiction in which the arrest or criminal proceeding took place p rior to the time of application.(b) The denial or failure to disclose such arrest or criminal proceeding is not grounds for adverse action by the De partment\, even if the information had been previously revealed to the Dep artment in another or previous application.(c) renumbered as (b) No change . (c) An expunged crime will not be considered by the Department as a basi s for denial or disqualification of an applicant.(11) Disclosure and Effec t of a Pardon or Restoration of Civil Rights.(a) Pardoned crimes must be r eported on the application as part of the law enforcement record. The appl icant shall clearly indicate that a pardon has been granted for the crime\ , and provide supporting documentation. The burden of proof shall be on th e applicant to prove the pardon by certified true copy of the pardon and r elated documents.(a) (b) A pardoned crime for which an applicant has been granted a pardon or has had his or her civil rights restored under chapter 940\, F.S.\, and section 8\, Article IV\, Florida Constitution\, generall y will not be subject to the disqualifying periods in sections 626.207(2) and (3)\, F.S.\, or sections 626.9954(2) and (3)\, F.S.\, unless such clem ency specifically excludes licensure in the financial services business co nsidered against the applicant by the Department. The applicant&rsquo\;s f itness and trustworthiness after a pardon or restoration will be evaluated as provided in section 626.207\, F.S.\, according the following factors:( c) However\, this general policy is subject to the following exceptions\, in which case the pardoned crime will not be ignored by the Department:1. The facts and circumstances of the criminal offense for which the pardon w as granted or the applicant&rsquo\;s civil rights were restored.2. 1. The applicant&rsquo\;s criminal history\, if any\, subsequent to the pardon or restoration of rights. applicant has subsequently been found guilty\, or pled guilty or nolo contendere\, to any felony or misdemeanor regardless o f adjudication\; or3. 2. Whether the applicant has completed any supervisi on or sanction associated with any crime. The pardoned crime directly invo lved the business of insurance.(d) If a pardoned crime falls within either of the two exceptions contained in subparagraph (11)(c)1. or 2.\, above\, the Department shall apply the disqualifying periods set out in sections 626.207 and 626.9954(3)\, F.S.(b) (e) The Department will not withhold or stay denial of a license application pending action on requests for a pard on or restoration of civil rights.(12) Effect of Varying Terminology.(a) F or purposes of this rule\, if the applicant&rsquo\;s crime is not defined or categorized as a felony or misdemeanor crime jurisdiction in which the applicant was prosecuted does not define or categorize felony crimes as th ey are defined or categorized in Florida as capital\, first degree\, secon d degree\, or third degree felonies\, the Department will shall analogize the crime to the most similar crime under Florida laws by using the elemen ts of that crime as defined in the statute of the jurisdiction in which th e applicant was prosecuted and matching those elements to the most similar Florida Statute.(b) through (c) No change. (13) Supervised Imprisoned Per sons. Notwithstanding any provision to the contrary in this rule\, The the Department will shall not license any applicant under chapter 626\, F.S.\ , while the applicant is imprisoned\, in custody\, under supervision\, on probation\, or serving a sentence\, or in a pre-trial intervention\, diver sion\, or other similar program\, for any felony or misdemeanor directly r elated to the financial services business crime.(14) Effect of Disqualifyi ng Periods. The disqualifying periods applied pursuant to sections 626.207 or and 626.9954(3)\, F.S.\, or established in this rule do not give an ap plicant a right to licensure after any set period of time. After the disqu alifying period\, an applicant may re-apply for licensure and the law in e ffect at the time will apply to that application.(15) Foreign Law Enforcem ent Records. In the event that a law enforcement record includes convictio ns\, charges\, or arrests outside the United States\, the Department will shall consider the following factors to reduce\, eliminate\, or apply a di squalifying period or to determine if the permanent bar under sections 626 .207(2) or and 626.9954(2)\, F.S.\, is applicable:(a) through (b) No chang e. Rulemaking Authority 624.308\, 626.207\, 626.9954\, 626.9958\, 634.021\ , 634.302\, 634.402 FS. Law Implemented 112.011\, 624.307(1)\, 626.112\, 6 26.161\, 626.171\, 626.172\, 626.201\, 626.207\, 626.211\, 626.291\, 626.6 01\, 626.611\, 626.621\, 626.631\, 626.641\, 626.9951\, 626.9953\, 626.995 4\, 626.9957\, 634.171\, 634.318\, 634.420\, 642.036\, 943.0585(6)\, 943.0 59(6) FS. History&ndash\;New 10-17-02\, Formerly 4-211.042\, Amended 7-21- 04\, 8-27-12\, 11-26-14\, __________. \;NAME OF PERSON ORIGINATING PRO POSED RULE: David Jones\, Chief\, Bureau of Licensing \; NAME OF AGENC Y HEAD WHO APPROVED THE PROPOSED RULE: \; Jimmy Patronis\, Chief Finan cial Officer \; DATE PROPOSED RULE APPROVED BY AGENCY HEAD: March 30\, 2023 \; DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: Au gust 1\, 2022Attorney: Margaret Karniewicz DTEND;VALUE=DATE:20230510 DTSTAMP:20260415T073015Z DTSTART;VALUE=DATE:20230508 LOCATION: SEQUENCE:0 SUMMARY:69B-211.041\, Definitions and                             69B-211.0 42\, Effect of Law Enforcement Records on Applications for Licensure UID:RFCALITEM639118206152942627 X-ALT-DESC;FMTTYPE=text/html:

NOTICE OF PROPOSED RULE

DEPARTMENT OF FINANCIAL SERVICES

Division of Insurance Agent and Agency Services \;

RULE NO.: \; \;  \; \; \; \; \; \; \; \; \; \;&nbs p\; \; \; \; RULE TITLE:

69B-211.041 \; \; \ ; \; \; \; \; \; \; \; \; \; \;&nb sp\; Definitions

69B-211.042 \; \; \; \; \;  \; \; \; \; \; \; \; \; \; Effect of Law E nforcement Records on Applications for Licensure \;

PURPOSE AND EFFECT: The proposed amendments will update the rules by incorporating st atutory changes\, clarifying current rule requirements\, and making other necessary changes. \;

SUMMARY: Rule 69B-211.041\, F.A.C.\, is b eing repealed and the definitions contained therein are being moved to rul e 69B-211.042\, F.A.C. The proposed changes to rule 69B-211.042\, F.A.C.\, will: define the terms &ldquo\;applicant\,&rdquo\; &ldquo\;application\,& rdquo\; &ldquo\;charge\,&rdquo\; &ldquo\;felony\,&rdquo\; &ldquo\;financia l services business\,&rdquo\; &ldquo\;law enforcement record\,&rdquo\; &ld quo\;misdemeanor\,&rdquo\; and &ldquo\;pre-trial intervention\;&rdquo\; sp ecify the documents that applicants with criminal backgrounds must submit\ ; clarify the treatment of sealed or expunged criminal records\; replace t he $1\,500 administrative penalty with a 90-day disqualifying period if th e applicant fails to accurately answer questions about the applicant&rsquo \;s law enforcement record\; provide for permanent bars from licensure and disqualifying periods (ineligibility for licensure) for applicants with c ertain crimes or multiple crimes\; provide criteria for evaluating an appl icant&rsquo\;s fitness for licensure due to a pardon or restoration of civ il rights\; and make other necessary changes. \;

SUMMARY OF STATEMENT OF ES TIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The agency has dete rmined that this rule will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200 \,000 in the aggregate within one year after the implementation of the rul e. A SERC has not been prepared by the agency. \;

The Agency ha s determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if n o SERC is required\, the information expressly relied upon and described h erein: The Department&rsquo\;s economic analysis of the potential impact o f the proposed rule amendments and repeal determined that there will be no adverse economic impact or increased regulatory costs that would require legislative ratification. \;

Any person who wishes to provide i nformation regarding the statement of estimated regulatory costs\, or to p rovide a proposal for a lower cost regulatory alternative must do so in wr iting within 21 days of this notice. \;

RULEMAKING AUTHORITY: 6 24.308\, 626.207\, 626.9954\, 626.9958\, 634.021\, 634.302\, 634.402 FS.&n bsp\;

LAW IMPLEMENTED: 112.011\, 624.307(1)\, 626.112\, 626.161\, 6 26.171\, 626.172\, 626.201\, 626.207\, 626.211\, 626.291\, 626.601\, 626.6 11\, 626.621\, 626.631\, 626.641\, 626.9951\, 626.9953\, 626.9954\, 626.99 57\, 634.171\, 634.318\, 634.420\, 642.036\, 943.0585(6)\, 943.059(6) FS.& nbsp\;

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE\, A H EARING WILL BE HELD AT THE DATE\, TIME AND PLACE SHOWN BELOW (IF NOT REQUE STED\, THIS HEARING WILL NOT BE HELD): \;

DATE AND TIME: May 8\ , 2023 at 10:00 AM \;

PLACE: Room 116\, Larson Building\, 200 E . Gaines Street\, Tallahassee\, FL \;

THE PERSON TO BE CONTACTE D REGARDING THE PROPOSED RULE IS: David Jones\, Chief\, Bureau of Licensin g\, 200 E. Gaines Street\, Tallahassee\, FL 32399-0318\; (850)413-5460 or David.Jones@myfloridacfo.com. \;

THE FULL TEXT OF THE PROPOSED RULE IS: \;

69B-211.041 Definitions. < /strong>

Rulemaking Authority 624.308\, 626.207 FS. Law Implemen ted 112.011\, 624.307(1)\, 626.161\, 626.171\, 626.201\, 626.207\, 626.211 \, 626.291\, 626.601\, 626.611(7)\, (14)\, 626.621(8)\, 626.631\, 626.641 FS. History&ndash\;New 10-17-02\, Formerly 4-211.041\, Amended 8-27-12\, Repealed __________.< /p>

69B-211.042 Effect of Law Enforcement Records on Application s for Licensure.

(1) For the purposes of this Rule Chapter\, the following definitions will apply:

(a) &ldquo\ ;Applicant&rdquo\; means an individual applying for licensure or relicensu re under Chapters 626\, 634\, or 642\, F.S.\, and an officer\, director\, majority owner\, partner\, manager\, or other person who manages or contro ls an entity applying for licensure or relicensure under Chapters 626\, 63 4\, or 642\, F.S.

( b) &ldquo\;Application&rdquo\; or &ldquo\;application process&rdquo\; refe rs to an application for licensure procedurally processed under Chapters 6 26\, 634\, or 642\, F.S.

(c) &ldquo\;Charge&rdquo\; or &ldquo\;charges&rdquo\; refers to the official allegations contained in the official document setting out the cr imes that an applicant is alleged to have committed\, including an &ldquo\ ;information\,&rdquo\; &ldquo\;indictment\,&rdquo\; or other document that specifies the charges against an applicant.

(d) &ldquo\;Felony&rdquo\; means and includes an y crime of any type\, whether or not related to insurance\, which crime is designated as a &ldquo\;felony&rdquo\; by statute in the jurisdiction of prosecution\, or designated as a &ldquo\;felony&rdquo\; in the charges. If a crime is a felony in the jurisdiction of prosecution\, it will be treat ed as a felony under this rule notwithstanding that the same activity is n ot a felony in Florida. The term &ldquo\;felony&rdquo\; includes felonies of all degrees.

(e) &ldquo\;Financial services business&rdquo\; means any financial activity regulated by the Department of Financial Services\, the Office of Insuranc e Regulation\, or the Office of Financial Regulation.

(f) &ldquo\;Law enforcement record&rdqu o\; includes the following:

1. Any criminal charge filed against the applicant in the courts of any state or federal district or territory\, or other country\, for whi ch the applicant pled guilty or no contest\, regardless of whether there w as an adjudication of guilt by the court\, or for which the applicant was found guilty\, and regardless of whether the matter is under appeal by the applicant\; and\,

2. Criminal charges that were subsequently pardoned or for which civil rig hts have been restored. The phrase includes criminal charges which\, at th e time of the application\, are under an order to seal by a court of compe tent jurisdiction\; and

3. All criminal charges against the applicant\, whether by informatio n or other charging document\, even where no formal determination of dispo sition has been made.

(g) &ldquo\;Misdemeanor&rdquo\; means and includes any crime of any typ e which is designated as a &ldquo\;misdemeanor&rdquo\; by statute in the j urisdiction of prosecution\, or is so designated in the charges. If a crim e is considered a misdemeanor in the jurisdiction of prosecution\, it will be treated as a misdemeanor under this rule chapter notwithstanding that the same activity is not a misdemeanor in Florida. The term includes misde meanors of all degrees.

(h) &ldquo\;Pre-trial intervention&rdquo\; refers to a program operat ed under section 948.08\, F.S.\, or a similar program in the state of Flor ida or any other jurisdiction.

(1) renumbered as (2) No chang e.

(a) No change.

(b) As provided by statute\, an applicant must provide the Department with fingerprints and permit the Department to obtain the applicant&rsquo\;s law enforcement record from the Florida Dep artment of Law Enforcement and/or the Federal Bureau of Investigati on. The Department will < s>shall not process an application when fingerprints are required unti l the Department receives readable and properly executed fingerprints. App lications are incomplete until fingerprints are received.

(c) At the direction of the Department\, as a part of the application process\, and in addition to the application\, the following documentation is required t o be submitted by the applicant:

1. A true and complete copy of the police arrest affidavit o r arrest report or similar document for all arrests.

2. A certifi ed true and complete copy of the charging document\, such as an information\, indictment\, or t icket.

3. A certified true and complete copy of the plea\, judgment\, and sentence.

4. A certified true a nd complete copy of the order of entry into pre-trial intervention\ , where applicable\, and the order of termination of pre-trial interventio n showing dismissal of the charges.

5. A true and complete copy of any order of restoration of civil rights.

6. A true and complete copy of any order sealing court records.

7. A true and complete copy of any orde r expunging court records.

8. A true and complete copy of any pardon.

(d) If dur ing the application process the Department requests that an applicant subm it documentation related to the applicant&rsquo\;s law enforcement record but that documentation cannot be obtained because the document no longer e xists\, the applicant must shall supply a certified or sworn statement\, signed by a represe ntative of the agency that would have been the custodian of such documenta tion. \, The custodian must indicate ind icating that documentation of such matter does not exist or that the r ecord was lost\, damaged or destroyed\, or otherwise indicate indicating why the documentati on cannot be produced. All requested documentation must be legible.

(e) All requested documen tation must be legible.

(e) renumbered as (f) No change.

(3) (2) Effect of Failure to Truthfully Answer Application Questions Regarding Applicant& rsquo\;s Law Enforcement Record.

(a) No change.

(b)1. If an applicant fails to accurately and truthfully answer Department quest ions about the applicant&rsquo\;s law enforcement record related to felonies\, or financial services busin ess based misdemeanors\, the application will shall be denied. and a A disqualifying period of 90 days will one year shall be imposed before the a pplicant may reapply for or be granted any license. As an alternative t o a one-year disqualifying period\, the applicant may elect to pay an admi nistrative penalty of $1\,500.00. This includes answering any applicat ion question about the existence of law enforcement records in the negativ e when an affirmative answer was appropriate. The This one-year disqualifying period will shall begin the late r of: (1) the date the Departmen t&rsquo\;s denial of the initial application becomes final\; or (2) the end of any di squalifying period based on the criminal history of the applicant. The mit igating factors in subsection (6 ) (7)\, below\, wi ll shall not be used to reduce the amount of the disqualifyi ng period for failure to disclose. The Department will not consider any application by the same applicant for a similar license dated or filed within 30 days of a denial issued pur suant to this subsection.

2. If the Department discovers that an applicant failed to accurately and truthfully answer any question rela ting to law enforcement records after a license has been granted\, the Dep artment will shall suspend or revoke each license currently held by the licensee pursuant to sections 626.611 and 626.9957 626.9953\, F.S.

(4) (3) Classification of and Treatment of Certain Felony and Misdemeanor Crimes.

(a) \; The seven-year disqualifying period applies to all felony cases involving the passing or uttering of a worthless bank check\ , or obtaining property in return for a worthless bank check\, or any othe r check-related felony where the check or property involved is worth $500 or less. Application for licensure shall not be denied or subjec ted to a disqualifying period based solely on the fact that an applicant w as found guilty of\, or pled guilty or nolo contendere to\, a misdemeanor\ , unless the misdemeanor is directly related to the financial services bus iness as defined in section 626.207(1)\, F.S.\, which shall also apply to the same term used in section 626.9954(3)(c)\, F.S.

(b) A crime is directly related to th e financial services business as defined in sections section 626.207(1) or 626.9951\, F.S.\, or rule 69B-211.042(1)\, F.A.C.\, if a financial services business\, a financial services business relationship\, a financi al services business resource\, or a transaction relating to or involving a financial services business\, was used in the commission or furtherance of the crime.

< p>(c) For the purposes of this rule\, the seven year disqualifying peri od in sections 626.207(3)(b) and 626.9954(3)(b)\, F.S.\, applies to all fe lony cases involving the passing or uttering of a worthless bank check\, o r obtaining property in return for a worthless bank check or any other che ck-related felony where the check or property involved is worth $500.00 or less.

(5) ( 4) Applicants With Multiple Crimes.

(a) Where an applicant has < span style="text-decoration:underline\;">committed multiple crimes\, a bas e period of disqualification and an additional period of disqualification will be calculated as follows more than one crime subject to a d isqualifying period\, an additional disqualifying period for each of those additional crimes shall be added to the disqualifying period. For each ad ditional crime that is subject to a disqualifying period the Department sh all add:

1. The base p eriod is the disqualifying period which is\, or was\, the last to expire.< /span>

2. 1. Five years will be added to the base disqualif ying period for each additional felony involving moral turpitude but n ot subject to the permanent bar in section 626.207(2) or 626.9954(2)\, F.S .\;

3. 2. Tw o years will be added to the base disqualifying period for each additional felony not involving moral turpitude and n ot subject to the permanent bar in section 626.207(2) or 626.9954(2)\, F.S .\; and\,

4. 3.< /s> Two years will be added to the base disqual ifying period for each additional misdemeanor directly related to a fi nancial services business.

(b) The additional disqualifying perio d shall be added to the disqualifying period for the most serious crime\, and the combined total disqualifying period will begin upon then run from the date of th e applicant&rsquo\;s final release from supervision or completion of the sentence for the most r ecent crime upon which the b ase period is established that would be subject to a disqualifyi ng period under section 626.207(3) or 626.9954(3)\, F.S.

(c) Mul tiple crimes arising out of the same act\, or related acts\, performed ove r a relatively short period of time and in a concerted course of conduct\, and crimes committed in one transaction\, episode\, or course of conduct are treated by the Department as one crime for application of this rule. < s>The most serious crime will be used as the basis for the disqualifying p eriod. For the crimes to be considered a single crime\, the applicant must have pled to or been convicted of such crimes on the same date and th e judgment and sentence for those crimes must have been imposed concurrent ly. In such cases\, the crime wi th the longest associated disqualifying period will be used for the base p eriod calculation.

(6) (5) Mitigating Factors.

(a) If applicable\, the mi tigating factors listed below wi ll may be used to shorten the total disqualifying period onl y when the 15- fifteen year disqualifying period established in sections section 626.207(3)(a) or 626.9954(3)(a)\, F.S.\, is applicable. Where more than one mit igating factor is present\, the applicant is entitled to add all applicable years of mitigation tog ether and deduct that number from the total disqualifying period only when the 15- fifteen y ear disqualifying period is applicable\; however\, the 15- fifteen year disqualifying period may not be reduced to less than seven years. Mitigating factors cannot be used to reduce the seven year disqualifying periods established by sec tions 626.207(3)(b) or (c) or 626.9954(3)(b) and (c)\, F.S. Mitigating factors may not be used to reduce the amount of the disqualifying period for failure to answer questions accurately and truthfully established in s ubparagraph (3)(b)1. ( 2)(b)1.\, above. The following mitigating factors may apply:

1. One year is deduct ed if the applicant was age 21 twenty-one or younger when the felony crime which is the basis for the disqualifying period was committed and if there are no felony crimes on the applicant&rsq uo\;s law enforcement record after reaching the age of 22 twenty-two.

2. One ye ar is deducted if the applicant furnishes proof that the applicant was add icted to drugs\, suffering from active alcoholism\, or suffering from a ps ychiatric disorder\, at the time of the crime which is the basis for the disqualifying period and t he applicant furnishes a letter from a medical doctor\, psychologist\, or therapist\, who is licensed by a duly constituted state licensing body\, t hat states that the licensed person has examined or treated the applicant and that in his or her professional opinion the condition is currently in remission and has been in remission for at least the previous 12 months.

3. through 6. No change.

7. One year is deducted if the applicant has been employed at least 40 hours per week for a continuous t wo-year period within the five years immediately preceding the application as evidenced by a letter from the employer(s)\, tax form s\, or pay stubs.

8. One year is deducted if the applicant h as served at least one year in the United States Armed Forces\, active or reserves\, subsequent to the commission of the crime which is the basis fo r the disqualifying period and provided the any discharge was without an other than h onorable discharge designation.

(b) The burden is on the appl icant to establish these mitigating factors. Any of the mitigating factors above that involve a state or governmental agency\, a university or sc hool\, or a court must be established by providing a certified true and complete copy of the document proving that mitigating factor.

(7) (6) Aggravating Factors.

(a) T he following aggravating factors apply:

1. No change.

2. One year is added to the disqualifying period if the applicant was found by th e court to have violated probation for the crime or crimes used to establi sh the disqualifying period and the violation was not a technical viola tion\;

3. through 6. No change.

(b) No change.

(7) renumbered as (8) No change.

(8) renumbered as (9) No change.

< p>(9) Pre-Trial Intervention. The Department will not grant licensure t o any person who at the time of the application is participating in a pre- trial intervention program for any crime that could be used as the basis o f denial pursuant to section 626.207\, F.S.

(10) Sealed or Expunged Effect of an Order Sealing or Expunging Criminal Records.

(a) Pursuant to sections 943.0585(6) and 943.059(6)\, F. S.\, an applicant is not required to disclose or acknowledge \, and is not permitted t o affirmatively deny\, any arrest or criminal proceeding when the record o f such has been legally and properly expunged or sealed by order of a court of competent jurisdiction or by operation of law in the jurisdict ion in which the arrest or criminal proceeding took place prior to the tim e of application.

(b) The denial or failure to disclose such arre st or criminal proceeding is not grounds for adverse action by the Departm ent\, even if the information had been previously revealed to the Departme nt in another or previous application.

(c) renumbered as (b) No change.

(c) An expunged c rime will not be considered by the Department as a basis for denial or dis qualification of an applicant.

(11) Disclosure and Eff ect of a Pardon or Restoration o f Civil Rights.

(a) Pardoned crimes must be reported on th e application as part of the law enforcement record. The applicant shall c learly indicate that a pardon has been granted for the crime\, and provide supporting documentation. The burden of proof shall be on the applicant t o prove the pardon by certified true copy of the pardon and related docume nts.

(a) (b) A pardoned crime for which an applicant has been granted a pardon or has had his or her civil rights restored under chapter 940\, F.S.\, and section 8\, Article IV\, Fl orida Constitution\, generally will not be subject to the disqualifying periods in sections 626.207(2) and (3)\, F.S.\, or sections 626.9954(2) and (3)\, F.S.\, unles s such clemency specifically excludes licensure in the financial services business considered against the applicant by the Department. The applicant&rsquo\;s fitness and trustworthiness after a pardon or restoration will be evaluated as pro vided in section 626.207\, F.S.\, according the following factors:< /p>

(c) However\, this general policy is subject to the following exc eptions\, in which case the pardoned crime will not be ignored by the Depa rtment:

1. The facts a nd circumstances of the criminal offense for which the pardon was granted or the applicant&rsquo\;s civil rights were restored.

2. 1. The applicant&rsquo\;s criminal history\, if any\, subsequent to the pardon or restoration of rights. applicant has subsequently been found guilty\, or pled guilty or nolo contendere\, to a ny felony or misdemeanor regardless of adjudication\; or

3. 2. Whether the applicant has completed any supervision or sanction associated with any crime. The pardoned crime direc tly involved the business of insurance.

(d) If a pardoned cri me falls within either of the two exceptions contained in subparagraph (11 )(c)1. or 2.\, above\, the Department shall apply the disqualifying period s set out in sections 626.207 and 626.9954(3)\, F.S.

(b) (e) The Department will n ot withhold or stay denial of a license application pending action on requ ests for a pardon or restoration of civil rights.

(12) Effect of Varying Terminology.

( a) For purposes of this rule\, if the applicant&rsquo\;s crime is not defined or categorized as a felony o r misdemeanor crime jurisdiction in which the applicant was pros ecuted does not define or categorize felony crimes as they are defined or categorized in Florida as capital\, first degree\, second degree\, or thir d degree felonies\, the Department will shall analogize the crime to the most similar cr ime under Florida laws by using the elements of that crime as defined in t he statute of the jurisdiction in which the applicant was prosecuted and m atching those elements to the most similar Florida Statute.

(b) thro ugh (c) No change.

(13) S upervised Imprisoned Persons. Notwithstanding any provisi on to the contrary in this rule\, The the Department will shall not license any applicant under chapter 626\, F.S.\, while the applicant is imprisoned\, in custody\, under s upervision\, on probation\, or serving a sentence\, or in a pre-trial intervention\, diversion\, or other similar program\,< /span> for any felony or misdeme anor directly related to the financial services business crime.

(14) Effect of Disqualifying Periods. The disqualifying p eriods applied pursuant to sections 626.207 or and 626.9954(3)\, F.S.\, or establishe d in this rule do not give an applicant a right to licensure after any set period of time. After the disqualifying period\, an applicant may re-appl y for licensure and the law in effect at the time will apply to that appli cation.

(15) Foreign Law Enforcement Records. In the event that a la w enforcement record includes convictions\, charges\, or arrests outside t he United States\, the Department will shall consider the following factors to reduce\, elim inate\, or apply a disqualifying period or to determine if the permanent b ar under sections 626.207(2) or< /span> and 626.9954(2)\, F.S.\, is applicable:

(a) through (b ) No change.

Rulemaking Authority 624.3 08\, 626.207\, 626.9954\, 626.9958\, 634.021\, 634.302\, 634.402 FS. Law Implemented 112.011\, 6 24.307(1)\, 626.112\, 626 .161\, 626.171\, 626.172\, 626.201\, 626.207\, 626.211\, 626.291\, 626.601\, 626.611\, 626.621\, 62 6.631\, 626.641\, 626.9951\, 626.9953\, 626.9954\, 626.9957\, 634.171\, 634.318\, 634.420\, 642.036\, 943.0585(6)\, 943.059(6) FS. History&nda sh\;New 10-17-02\, Formerly 4-211.042\, Amended 7-21-04\, 8-27-12\, 11-26- 14\, __________.

 \;

NAME OF PERSON ORIGINATING PROPOSED RULE: David Jones\, C hief\, Bureau of Licensing \;

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: \; Jimmy Patronis\, Chief Financial Officer \;< /p>

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: March 30\, 2023 \;< /p> DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: August 1\, 2022

Attorney: Margaret Karniewicz

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