Chambers differ on oversight details

If the House and Senate can't agree on what falls to the chief financial officer, the courts might decide.

By ANITA KUMAR, Times Staff Writer
© St. Petersburg Times
published March 8, 2002

TALLAHASSEE -- The House and Senate tentatively passed bills Thursday to set out who will take on the huge task of regulating insurance, banking and securities in Florida.

But the two proposals are vastly different, which means the Legislature could end its regular session in two weeks without a decision.

That's a problem because legislators must come up with a plan by the time the first chief financial officer takes office in January.

"We are working toward a compromise solution," said Sen. Jack Latvala, R-Palm Harbor. The House version allows the people who regulate banking and insurance to be insulated from the elected chief financial officer.

The original Senate version had regulators under control of the elected official, though it has changed somewhat since the bill was drafted to make them more insulated from the political Cabinet position.

Sen. Steven Geller, D-Hallandale Beach, said the bill had changed too much to conform to the House. "I was willing to go along," Geller said. "(But) I just think we've compromised too far with the other chamber."

Both chambers will consider the bills one last time, perhaps as early as next week. If the Legislature doesn't come up with a single plan, as it failed to do in two previous years, the decision could wind up in court.

Insurance Commissioner Tom Gallagher, who plans to run for the new chief financial officer job, was on the Senate floor listening to debate. He may find himself in the race with a fellow Republican, Comptroller Bob Milligan.

The Cabinet-level position was created by voters in 1998 as part of a plan to reduce the size of the state Cabinet from six to three positions. The chief financial officer will handle the duties previously performed by the comptroller, treasurer and insurance commissioner.

Gallagher says voters intended to reduce the size of the state government when they approved the merger, not just create two new agencies. But Milligan says giving all the duties to one person would put too much power in one place.

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