Florida Department of Financial Services v. Capital Collateral Regional Counsel-Middle Region

The Department of Financial Services (hereinafter “Department”) challenges an order of the ALJ finding that the Department applied an agency rule without first initiating the proper rulemaking procedures. Because the ALJ erred in finding that the Department had a “rule” placing the offices of the Capital Collateral Regional Counsel in the executive branch, the order finding an invalid, unpromulgated rule is reversed.

I. Background

This case arose as the direct result of an investigation conducted by the Office of *529Fiscal Integrity (“OFI”) of the Division of Accounting and Auditing of the…