To align the rules with section 31 of chapter 2023-144, Laws of Florida. The rulemaking further improves the rules by updating, simplifying, and clarifying the uniform procedure and criteria for the Anti-Fraud Reward Program.....

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Investigative and Forensic Services

RULE NOS.:RULE TITLES:

69D-1.001Purpose and Scope

69D-1.002Application Process

69D-1.003Review Process and Reward Criteria

69D-1.004Reward Disbursement

PURPOSE AND EFFECT: To align the rules with section 31 of chapter 2023-144, Laws of Florida. The rulemaking further improves the rules by updating, simplifying, and clarifying the uniform procedure and criteria for the Anti-Fraud Reward Program.

SUMMARY: Chapter 69D-1, Florida Administrative Code, sets forth the uniform procedure and criteria for an individual to receive a reward under the Department of Financial Services’ Anti-Fraud Reward Program, established by section 626.9892, Florida Statutes.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this 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 rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department’s economic review for this rulemaking.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 624.308, 626.9892, FS.

LAW IMPLEMENTED: 119.07, 624.307, 626.989, 626.9892, FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Chris Welch, Bureau Chief, Division of Investigative and Forensic Services, 200 E. Gaines Street, Tallahassee, FL 32399, [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

The following rule is being repealed.

69D-1.001 Purpose and Scope.

Rulemaking Authority 624.308, 626.9892 FS. Law Implemented 624.307, 626.9892 FS. History–New 6-6-05, Repealed ______.

 

Substantial rewording of Rule 69D-1.002 follows. See Florida Administrative Code for present text.

69D-1.002 Application and Reward Process.

(1) For the purposes of this chapter, the term:

(a) “Applicant” means a reporting individual whose information has led to the arrest of a person or persons arising from violations enumerated in section 626.9892, Florida Statutes (F.S.). An applicant cannot be a Department employee nor any individual or entity required to report suspected insurance fraud to the Division of Investigative and Forensic Services pursuant to section 626.989, F.S.

(b) “Application” means the information provided by an applicant and all information available to the Department of a qualifying arrest.

(c) “Qualifying arrest” means an arrest based on a violation enumerated in section 626.9892, F.S.

(d) “Department” means the Department of Financial Services.

(e) “Reporting individual” means a person who:

1. provides information to the Department regarding a person or persons who has allegedly committed or been involved in a crime or crimes investigated by the Department arising from violations enumerated in section 626.9892, F.S.; and

2. indicates to the Department that he or she is seeking a reward from the Anti-Fraud Reward Program.

(2) Once a qualifying arrest is made based on the information provided by a reporting individual, the Department will:

(a) consider the reporting individual an applicant of the Anti-Fraud Reward Program;

(b) consider the application for a reward under the Anti-Fraud Reward Program;

(c) make a determination to grant or deny a reward under the Anti-Fraud Reward Program based on the application and criteria found in Rule 69D-1.003, Florida Administrative Code;

(d) issue a notice to the applicant of the determination from paragraph (c); and

(e) if the determination is to grant a reward, issue out the reward payment to the applicant.

Rulemaking Authority 624.308, 626.9892 FS. Law Implemented 119.07, 624.307, 626.989, 626.9892 FS. History–New 6-6-05, Amended ______.

 

Substantial rewording of Rule 69D-1.003 follows. See Florida Administrative Code for present text.

69D-1.003 Review Process and Reward Criteria.

(1) A reward and reward criteria under the Anti-Fraud Reward Program shall be:

(a) $25,000 for a qualifying arrest of a case involving alleged fraud valued at $5,000,000 or more;

(b) $10,000 for a qualifying arrest of a case involving alleged fraud valued at $1,000,000 or more but less than $5,000,000;

(c) $5,000 for a qualifying arrest of a case involving alleged fraud valued at $500,000 or more but less than $1,000,000;

(d) $2,500 for a qualifying arrest of a case involving alleged fraud valued at $100,000 or more but less than $500,000;

(e) $1,000 for a qualifying arrest of a case involving alleged fraud valued at $25,000 or more but less than $100,000;

(f) $500 for a qualifying arrest of a case involving alleged fraud valued at $25,000 or less but more than $5,000; or

(g) $250 for a qualifying arrest of a case involving alleged fraud valued at $5,000 or less.

(2) Actual monetary loss in a case is not required for an applicant to receive a reward.

(3) A reward under the Anti-Fraud Reward Program will be limited:

(a) to the extent of appropriation; and

(b) as provided in section 626.9892, F.S.

Rulemaking Authority 624.308, 626.9892 FS. Law Implemented 624.307, 626.9892 FS. History–New 6-6-05, Amended 11-13-08, 3-27-17, _____.

 

The following rule is being repealed.

69D-1.004 Reward Disbursement.

Rulemaking Authority 624.308, 626.9892 FS. Law Implemented 624.307, 626.9892 FS. History–New 6-6-05, Repealed _____.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Simon Blank, Director of Division of Investigative and Forensic Services

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jimmy Patronis, Chief Financial Officer

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: April 08, 2024

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: October 25, 2023