Post-Meeting Packet - Commerce and Tourism Committee (Florida Senate, January 28, 2020)
Summary
A post-meeting packet for the Florida Senate Committee on Commerce and Tourism meeting of 01/28/2020, 1:30 PM to 3:30 PM, 2020 Regular Session. The agenda order lists SB 1166 by Albritton on Broadband Internet Service, SB 1186 by Baxley on Drug-free Workplaces, SB 1356 by Bean on Employer Contributions for Reemployment Assistance and SB 1492 by Wright on Consumer Protection, among others. The bill analysis states that CS/SB 1166 transfers broadband policy implementation from the Department of Management Services to the Department of Economic Opportunity and creates the Florida Office of Broadband. A letter dated January 29, 2020 from Senator Linda Stewart to Chairman Gruters, headed Vote After Roll Call, records Yes votes on four of the listed bills.
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“Post-Meeting Packet - Commerce and Tourism Committee (Florida Senate, January 28, 2020).”
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01/28/2020 - Commerce Tourism (1:30 PM - 3:30 PM) 2020 Regular Session
Customized 01/31/2020 3:48 PM
Agenda Order
Tab 1 SB 1166 by Albritton; (Compare to H 00969) Broadband Internet Service
573474 A S RCS CM, Albritton Delete L.64 - 123: 01/28 02:57 PM
Tab 2 SB 1186 by Baxley; (Compare to H 01297) Drug-free Workplaces
Tab 3 SB 1356 by Bean; (Similar to H 01253) Employer Contributions for Reemployment Assistance
234232 A S RCS CM, Bean Delete L.73 - 216: 01/28 02:57 PM
Tab 4 SB 1492 by Wright; (Similar to CS/H 01137) Consumer Protection
Tab 5 SB 1140 by Gruters; (Identical to H 00867) Public Accountancy
Tab 6 SB 1240 by Gruters; Corporate Income Tax Credit
Page 1 of 1
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 1166
INTRODUCER: Commerce and Tourism Committee and Senator Albritton
SUBJECT: Broadband Internet Service
DATE: January 28, 2020 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Harmsen McKay CM Fav/CS
2. ATD
3. AP
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 1166 makes several updates to Florida’s broadband initiatives and transfers the locus of
broadband policy implementation from the Department of Management Services to the
Department of Economic Opportunity. Specifically, the bill:
Designates the Department of Economic Opportunity to replace the Department of
Management Services as the agency responsible for the expansion of broadband in Florida;
Creates the Florida Office of Broadband within the Department Of Economic Opportunity’s
Division of Community Development, to which it transfers specific duties regarding the
development, marketing, and promotion of broadband;
Permits the Department of Transportation to use up to $5 million annually from the State
Transportation Trust Fund’s allocation to the Multi-use Corridors of Regional Economic
Significance Program, for projects that assist in the development of broadband infrastructure
within or adjacent to a multiuse corridor; and
Repeals a provision of law that never took effect.
II. Present Situation:
Florida Agency Broadband Initiatives
Fixed and mobile broadband services provide Americans, especially those in rural and remote
areas of the country, access to numerous employment, education, entertainment, and health care
BILL: CS/SB 1166 Page 2
opportunities.1 Additionally, communities that lack broadband access can have difficulty
attracting new capital investment because broadband access is so critical to businesses.
“Corporate site selectors expect broadband. It is not a perk or special benefit.”2 Florida’s urban
areas are served at a fixed broadband coverage rate of 98 percent, but only 75.2 percent of its
rural areas have coverage.3 This disparity between urban and rural broadband access is caused by
the high construction costs required to build the broadband infrastructure across the larger swaths
of rural geographic areas, and lower overall demand.4 A 2016 study determined that 16 Florida
counties are underserved by fixed broadband services.5
Department of Management Services
In 2009, the Legislature authorized the Department of Management Services (DMS) to apply for
grants and lead broadband planning and deployment throughout Florida, especially in rural,
unserved, and underserved areas of Florida.6 Pursuant to s. 364.0135, F.S., DMS was directed to
collaborate with Enterprise Florida, Inc., other state agencies, local governments, private
businesses, and community organizations to:
Monitor broadband adoption across Florida;
Create a strategic plan to increase the use of broadband internet service in Florida;
Map Florida’s broadband transmission speeds and availability;
Build and facilitate local technology planning teams, especially with community members
from the areas of education, healthcare, business, tourism, agriculture, economic
development organization, and local government; and
Encourage public use of internet service through broadband grant programs.
The DMS could also accept federal and private funds to further these goals.7 These activities
were funded by an $8,887,028 grant from the U.S. Department of Commerce National
Telecommunications Information Administration’s (NTIA) State Broadband Initiative.8
However, Florida does not currently have a state broadband office, program, or funding source.9
1
U.S. Federal Communications Commission, 2018 Broadband Deployment Report at 1, Feb. 2, 2018, available at
https://www.fcc.gov/reports-research/reports/broadband-progress-reports/2018-broadband-deployment-report (last visited
Jan. 28, 2020).
2
M. McQuade, The Importance of Broadband to Economic Development (Sept. 2011), Site Selection Magazine, available at
https://siteselection.com/issues/2011/sep/sas-optical-infrastructure.cfm (last visited Jan. 28, 2020).
3
U.S. Federal Communications Commission, supra note 1, at 58-59. For purposes of this data, ‘fixed broadband services’ are
measured at 25 megabits per second downstream and 3 megabits per second upstream.
4
American Broadband Initiative, Milestones Report, 11 (Feb. 13, 2019), available at
https://broadbandusa.ntia.doc.gov/sites/default/files/resource-
files/american_broadband_initiative_milestones_report_feb_2019_0.pdf (last visited Jan. 28, 2020).
5
Dr. Ed H. Moore, Expanding Local Access to the Internet Infrastructure & Customized Distance Learning to Advance
Educational Attainment, Economic Development & County Growth, Independent Colleges & Universities of Florida,
https://www.floridahighereducation.org/_doc_meetings/20171030/Moore-10_30_17-Access-to-Internet-Distance-Learning-
for-Educational-Attainment-Economic-Development-County-Growth.pdf (last visited Jan. 28, 2020).
6
Chapter 2009-226, s. 2, Laws of Fla. (creating s. 364.0135, F.S., effective July 1, 2009).
7
Section 364.0135(3), F.S.
8
U.S. Department of Commerce, National Telecommunications and Information Administration, State Broadband Initiative,
https://www2.ntia.doc.gov/SBDD (last visited Jan. 28, 2020).
9
U.S. Department of Commerce, National Telecommunications and Information Administration, BroadbandUSA, State
Broadband Programs, Florida (Summer 2018), https://broadbandusa.ntia.doc.gov/ (last visited Jan. 28, 2020). The NTIA’s
State Broadband Initiative’s grant funds continued through November, 2014. Julie Gowen, Florida Department of
BILL: CS/SB 1166 Page 3
Department of Economic Opportunity
The Department of Economic Opportunity’s (DEO) Rural Infrastructure Fund (RIF) facilitates
the planning, preparation, and financing of infrastructure projects, including broadband facilities,
in rural communities that will encourage job creation, capital investment, and other economic
benefits.10 The RIF program attracts local and federal government, and private funding by
matching up to 40 percent of a project’s cost with state grant funds.11
Department of Transportation—Multi-use Corridors of Regional Economic Significance
The Florida Department of Transportation’s (FDOT) Multi-use Corridors of Regional Economic
Significance Program (M-CORES) is designed to advance construction of regional corridors that
will accommodate multiple modes of transportation and multiple types of infrastructure,
including those that promote broadband connectivity.12 The M-CORES program has a designated
appropriation of $35 million each year, beginning with the 2022-2023 fiscal year.13 The FDOT
must give preference to feeder roads, interchanges, and appurtenances that create or facilitate
multiuse corridor access and connectivity when using these funds.
Senate Bill 1242 (2012)
In the 2012 Legislative Session, the Legislature passed a bill that would have transferred the state
broadband programs from the DMS to the DEO. Although the enrolled bill was signed into law14
by the Governor on April 20, 2012, it never took effect and the transfer did not occur. The bill
made the agency transfer contingent on the approval by the U.S. Department of Commerce of the
transfer of the federal broadband grant to the DEO; the transfer of funds was never approved.15
Federal Broadband Initiatives
Federal funding for broadband comes from a range of sources,16 for example:
The Federal Communication Commission’s (FCC) Universal Service Fund subsidizes
telephone service (including broadband internet access) to low-income households, high-cost
areas, rural healthcare providers, and eligible schools and libraries;
Management Services, Division of Telecommunications, Broadband Mapping in Florida: Analyzing Coverage, Speed and
Demographics (Jan. 28, 2014) (on file with the Committee on Commerce and Tourism).
10
Section 288.0655(2)(b), F.S.
11
See s. 288.0655, F.S. See also, Florida Department of Economic Opportunity, Rural Infrastructure Fund,
http://floridajobs.org/community-planning-and-development/rural-community-programs/rural-infrastructure-fund (last visited
Jan. 28, 2020); Florida Department of Economic Opportunity, 2019 Incentives Report at 17-18, available at
http://www.floridajobs.org/docs/default-source/reports-and-legislation/2018-2019-annual-incentives-report---
final.pdf?sfvrsn=c2a340b0_2 (last visited Jan. 28, 2020).
12
Section 338.2278(1)(d), F.S. See also Florida Department of Transportation, M-CORES, https://floridamcores.com/ (last
visited Jan. 28, 2020).
13
Section 339.0801(2)(b), F.S.
14
Chapter 2012-131, Laws of Fla.
15
See note 1, s. 364.0135, F.S.
16
American Broadband Initiative, supra note 4, at 25-26.
BILL: CS/SB 1166 Page 4
The U.S. Department of Housing and Urban Development17 and Department of Education18
offer block grants to support broadband infrastructure; and
The U.S. Department of Agriculture (USDA) offers loans and grants to facilitate broadband
deployment in rural areas that don’t have sufficient access19 to broadband through the
ReConnect Program.20
The ReConnect Program is currently the most significant federal grant program that supports
broadband infrastructure, but of the $300,687,772 awarded in its first round of grants and loans,
no Florida recipient was included.21 Applicants that apply for a grant or loan/grant combination
under the ReConnect Program are required to submit a scoring sheet by which the USDA may
analyze nine separate evaluation criteria to score the applicant. One of the criteria is whether the
proposed project is in a state with a broadband plan that has been updated within the previous 5
years.22
Since 2000, the FCC has collected data regarding the deployment of advanced
telecommunications capability to Americans by requiring telecommunications services,
especially broadband internet, providers to report the availability of their services at a census
block level.23 The FCC uses this data to annually report on broadband availability, update service
policies and monitor whether the goal of nationwide service is achieved, and maintain coverage
maps24 to inform the industry and the public of the availability of broadband internet in their
areas.25 In 2019, the FCC adapted its reporting requirements to collect geospatial broadband
coverage information to allow the agency to better identify gaps in broadband coverage. 26
17
U.S. Department of Housing and Urban Development, State CDBG Program Broadband Infrastructure FAQs (Jan. 7,
2016), https://files.hudexchange.info/resources/documents/State-CDBG-Program-Broadband-Infrastructure-FAQs.pdf (last
visited Jan. 28, 2020).
18
U.S. Department of Education, Rural and Low-Income School Program,
https://www2.ed.gov/programs/reaprlisp/index.html (last visited Jan. 28, 2020). See also, Broadband USA, Funding Guide-
Department of Education- Rural and Low-Income School Program, https://broadbandusa.ntia.doc.gov/funding-program-
details-funding-guide/department-education-rural-low-income-school-program-0 (last visited Jan. 28, 2020).
19
Sufficient access is defined as 10 megabits per second downstream and 1 megabit per second upstream. Pub. Law No. 115-
334, 115th Cong. (Dec. 20, 2018) Agriculture Improvement Act of 2018. See also, Congressional Research Service, The
ReConnect Broadband Pilot Program (Jul. 3, 2019), available at https://www.usda.gov/reconnect/awardees (last visited Jan.
28, 2020).
20
U.S. Department of Agriculture, ReConnect Loan and Grant Program: About, https://www.usda.gov/reconnect/program-
overview (last visited Jan. 28, 2020).
21
U.S. Department of Agriculture, ReConnect Program Awardees, https://www.usda.gov/reconnect/awardees (last visited
Jan. 28, 2020).
22
U.S. Department of Agriculture, ReConnect Program Evaluation Criteria, https://www.usda.gov/reconnect/evaluation-
criteria (last visited Jan. 28, 2020).
23
See 47 U.S.C. §1302(b) (Section 706 of the Telecommunications Act of 1996 requires the FCC to determine and report
annually on “whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely
fashion.”) Federal Communications Commission, Report and Order and Second Further Notice of Proposed Rulemaking,
WC Docket Nos. 19-195, 11-10, at 3-4 (filed Aug. 6, 2019), available at https://www.fcc.gov/document/fcc-improves-
broadband-mapping-0 (last visited Jan. 28, 2020).
24
See FCC, Fixed Broadband Deployment, https://broadbandmap.fcc.gov/#/ (last visited Jan. 28, 2020).
25
Id. at 4.
26
FCC, FCC Establishes New Digital Opportunity Data Collection (Aug 1, 2019), available at
https://www.fcc.gov/document/fcc-improves-broadband-mapping (last visited Jan. 28, 2020).
BILL: CS/SB 1166 Page 5
III. Effect of Proposed Changes:
The bill consolidates broadband policy and state action within the DEO by transferring the duties
of developing, marketing, and promoting broadband to the newly created Florida Office of
Broadband (Office) within the DEO’s Division of Community Development.
Section 1 permits the FDOT to use up to $5 million per year of the $35 million annual allocation
made to the Florida Turnpike Enterprise for the administration of the M-CORES Program from
the State Transportation Trust Fund by s. 339.0801(2), F.S., to develop broadband infrastructure
within or adjacent to a multiuse corridor. This section also requires the FDOT to prioritize
broadband infrastructure projects that are located in a rural area of opportunity (RAO)27 that is
adjacent to a multiuse corridor. The currently designated RAOs are:28
The Northwest RAO, comprised of Calhoun, Franklin, Gadsden, Gulf, Holmes, Jackson,
Liberty, Wakulla, and Washington counties, and the part of Walton County north of the
Intracoastal Waterway, including the cities of DeFuniak Springs, Freeport, and Paxton;
The South Central RAO, comprised of DeSoto, Glades, Hardee, Hendry, Highlands, and
Okeechobee counties, the cities of Pahokee, Belle Glade, and South Bay in Palm Beach
County, and the city of Immokalee in Collier County; and
The North Central RAO, comprised of Baker, Bradford, Columbia, Dixie, Gilchrist,
Hamilton, Jefferson, Lafayette, Levy, Madison, Putnam, Suwannee, Taylor, and Union
Counties.
Section 2 transfers state broadband policy from the DMS to the DEO and creates the Florida
Office of Broadband (Office) within the DEO’s Division of Community Development. The
Office must develop, market, and promote broadband Internet services to Florida, and is directed
to:
Create a strategic plan that has goals and strategies for increasing broadband use in Florida;
Build and facilitate community-level, local technology planning teams, the membership of
which may include education, health care, private business, agriculture, economic
development organizations, local government, and tourism representatives;
Encourage broadband use through state grant programs that facilitate broadband deployment,
especially in Florida’s rural, unserved, or underserved communities; and
Monitor, participate in, and provide input on FCC proceedings that are related to the
geographic availability and deployment of broadband internet in Florida.
The bill defines “underserved” as a geographic area of Florida in which there is no broadband
internet service with a capacity for transmission at a consistent speed of at least 10 megabits per
second downstream and at least 1 megabit per second upstream. This conforms the definition to
that of “sufficient access” as provided in the Agriculture Improvement Act of 2018.
27
Section 288.0656, F.S., defines a rural area of opportunity (RAO) as a rural community or region composed of rural
communities, that have been adversely affected by extraordinary economic events or natural disasters. RAO’s are eligible for
assistance and other support through the Rural Economic Development Initiative, administered by the DEO.
28
Florida Department of Economic Opportunity, Rural Areas of Opportunity, http://www.floridajobs.org/community-
planning-and-development/rural-community-programs/rural-areas-of-opportunity (last visited Jan. 28, 2020).
BILL: CS/SB 1166 Page 6
This section also transfers the authority to apply for and accept federal funds, to enter into
contracts, and to establish committees or workgroups for the purposes of broadband expansion
and implementation to the DEO. Unlike the DMS’ funding authority, however, this bill does not
permit the DEO to accept private funds to coordinate and implement broadband in Florida.
Section 3 repeals ch. 2012-131, Laws of Florida, language that was enrolled by the House and
Senate in the 2012 Legislative Session and approved by the Governor on April 20, 2012, but that
never took effect as a result of the terms of the conditional effective date that were never met.
Section 4 provides an effective date of July 1, 2020.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The incentives to build broadband infrastructure in rural areas may drive a greater level
of broadband development to those areas. This may result in a positive impact to both
individuals and businesses in impacted areas.
C. Government Sector Impact:
The DEO may incur costs associated with the creation, staffing, and operation of the
Office.
BILL: CS/SB 1166 Page 7
The American Broadband Initiative cites coordination between state and federal
broadband programs as a challenge to further broadband development, and states that
“[f]ederal program officers would benefit from local insights provided by State
leaders.”29 The re-institution of a Florida Broadband Office may facilitate better
coordination, and create additional opportunities to receive federal funding for broadband
development.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends sections 339.0801 and 364.0135 of the Florida Statutes, and
repeals ch. 2012-131, Laws of Florida.
IX. Additional Information:
A. Committee Substitute – Statement of Substantial Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on January 27, 2020:
Defines the term “underserved,” to mean a geographic area in which there is no
broadband internet service at a consistent speed of at least 10 megabits per second
downstream and at least 1 megabits per second upstream; and
Extends the Office’s duties to include monitoring, participating in, and providing
input on FCC proceedings regarding geographic availability and deployment of
broadband internet service.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
29
American Broadband Initiative, supra note 4 at 27-28.
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1166
Ì573474<Î573474
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
01/28/2020 .
.
.
.
The Committee on Commerce and Tourism (Albritton) recommended
the following:
1 Senate Amendment
2
3 Delete lines 64 - 123
4 and insert:
5 (d) “Underserved” means a geographic area of this state in
6 which there is no provider of broadband Internet service that
7 offers a connection to the Internet with a capacity for
8 transmission at a consistent speed of at least 10 megabits per
9 second downstream and at least 1 megabit per second upstream.
10 (3)(2) STATE ENTITY.—The department is designated as the
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1166
Ì573474<Î573474
11 lead state entity to facilitate the expansion of broadband
12 Internet service in this state. The department shall of
13 Management Services is authorized to work collaboratively with
14 private businesses, and to receive staffing support and other
15 resources from, Enterprise Florida, Inc., state agencies, local
16 governments, private businesses, and community organizations.
17 (4) FLORIDA OFFICE OF BROADBAND.—The Florida Office of
18 Broadband is created within the Division of Community
19 Development within the department for the purpose of developing,
20 marketing, and promoting broadband Internet services to this
21 state. The office, in the performance of its duties, shall do
22 all of the following to:
23 (a) Monitor the adoption of broadband Internet service in
24 collaboration with communications service providers, including,
25 but not limited to, wireless and wireline Internet service
26 providers, to develop geographical information system maps at
27 the census tract level that will:
28 1. Identify geographic gaps in broadband services,
29 including areas unserved by any broadband provider and areas
30 served by a single broadband provider;
31 2. Identify the download and upload transmission speeds
32 made available to businesses and individuals in the state, at
33 the census tract level of detail, using data rate benchmarks for
34 broadband service used by the Federal Communications Commission
35 to reflect different speed tiers; and
36 3. Provide a baseline assessment of statewide broadband
37 deployment in terms of percentage of households with broadband
38 availability.
39 (b) Create a strategic plan that has goals and strategies
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1166
Ì573474<Î573474
40 for increasing the use of broadband Internet service in this the
41 state.
42 (b)(c) Build and facilitate local technology planning teams
43 or partnerships with members representing cross-sections of the
44 community, which may include, but are not limited to,
45 representatives from the following organizations and industries:
46 libraries, K-12 education, colleges and universities, local
47 health care providers, private businesses, community
48 organizations, economic development organizations, local
49 governments, tourism, parks and recreation, and agriculture.
50 (c)(d) Encourage the use of broadband Internet service,
51 especially in the rural, unserved, or and underserved
52 communities of this the state through grant programs having
53 effective strategies to facilitate the statewide deployment of
54 broadband Internet service. For any grants to be awarded,
55 priority must be given to projects that:
56 1. Provide access to broadband education, awareness,
57 training, access, equipment, and support to libraries, schools,
58 colleges and universities, health care providers, and community
59 support organizations.
60 2. Encourage the sustainable adoption of broadband in
61 primarily unserved and underserved areas by removing barriers to
62 entry.
63 3. Work toward encouraging investments in establishing
64 affordable and sustainable broadband Internet service in
65 unserved and underserved areas of this the state.
66 4. Facilitate the development of applications, programs,
67 and services, including, but not limited to, telework,
68 telemedicine, and e-learning to increase the usage of, and
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Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1166
Ì573474<Î573474
69 demand for, broadband Internet service in this the state.
70 (d) Monitor, participate in, and provide input on
71 proceedings of the Federal Communications Commission and other
72 federal agencies which are related to the geographic
73 availability and deployment of broadband Internet service in
74 this state as necessary to ensure that the information is
75 accurately presented and that rural, unserved, and underserved
76 areas of this state are best positioned to benefit from federal
77 and state broadband deployment programs.
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Florida Senate - 2020 SB 1166 Florida Senate - 2020 SB 1166
By Senator Albritton
26-00629D-20 20201166__ 26-00629D-20 20201166__
1 A bill to be entitled 30 must be used annually, first as set forth in subsection (1) and
2 An act relating to broadband Internet service; 31 then as set forth in subsections (2)-(5), notwithstanding any
3 amending s. 339.0801, F.S.; authorizing certain funds 32 other provision of law:
4 within the State Transportation Trust Fund to be used 33 (2)
5 for certain broadband infrastructure projects within 34 (b) Beginning with the 2022-2023 fiscal year and annually
6 or adjacent to multiuse corridors; requiring the 35 thereafter, $35 million shall be transferred to Florida’s
7 Department of Transportation to give priority to 36 Turnpike Enterprise, to be used in accordance with s. 338.2278,
8 certain projects; amending s. 364.0135, F.S.; defining 37 with preference to feeder roads, interchanges, and appurtenances
9 terms; designating the Department of Economic 38 that create or facilitate multiuse corridor access and
10 Opportunity, and not the Department of Management 39 connectivity. Of those funds, and to the maximum extent
11 Services, as the lead state entity to facilitate the 40 feasible, up to $5 million annually may be used for projects
12 expansion of broadband Internet service in this state; 41 that assist in the development of broadband infrastructure
13 requiring the department to work collaboratively with 42 within or adjacent to a multiuse corridor. The department shall
14 certain entities; creating the Florida Office of 43 give priority consideration to broadband infrastructure projects
15 Broadband within the Division of Community Development 44 located in an area designated as a rural area of opportunity
16 within the Department of Economic Opportunity; 45 under s. 288.0656 and adjacent to a multiuse corridor.
17 providing the purpose and duties of the office; making 46 Section 2. Section 364.0135, Florida Statutes, is amended
18 technical changes; repealing chapter 2012-131, Laws of 47 to read:
19 Florida, relating to broadband Internet service; 48 364.0135 Promotion of broadband adoption; Florida Office of
20 providing an effective date. 49 Broadband.—
21 50 (1) LEGISLATIVE FINDINGS.—The Legislature finds that the
22 Be It Enacted by the Legislature of the State of Florida: 51 sustainable adoption of broadband Internet service is critical
23 52 to the economic and business development of this the state and
24 Section 1. Paragraph (b) of subsection (2) of section 53 is beneficial for libraries, schools, colleges and universities,
25 339.0801, Florida Statutes, is amended to read: 54 health care providers, and community organizations.
26 339.0801 Allocation of increased revenues derived from 55 (2) DEFINITIONS.—As used in this section, the term:
27 amendments to s. 319.32(5)(a) by ch. 2012-128.—Funds that result 56 (a) “Department” means the Department of Economic
28 from increased revenues to the State Transportation Trust Fund 57 Opportunity.
29 derived from the amendments to s. 319.32(5)(a) made by this act 58 (b) “Office” means the Florida Office of Broadband.
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CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2020 SB 1166 Florida Senate - 2020 SB 1166
26-00629D-20 20201166__ 26-00629D-20 20201166__
59 (c) “Sustainable adoption” means the ability for 88 broadband service used by the Federal Communications Commission
60 communications service providers to offer broadband services in 89 to reflect different speed tiers; and
61 all areas of this the state by encouraging adoption and use 90 3. Provide a baseline assessment of statewide broadband
62 utilization levels that allow for these services to be offered 91 deployment in terms of percentage of households with broadband
63 in the free market absent the need for governmental subsidy. 92 availability.
64 (3)(2) STATE ENTITY.—The department is designated as the 93 (b) Create a strategic plan that has goals and strategies
65 lead state entity to facilitate the expansion of broadband 94 for increasing the use of broadband Internet service in this the
66 Internet service in this state. The department shall of 95 state.
67 Management Services is authorized to work collaboratively with 96 (b)(c) Build and facilitate local technology planning teams
68 private businesses, and to receive staffing support and other 97 or partnerships with members representing cross-sections of the
69 resources from, Enterprise Florida, Inc., state agencies, local 98 community, which may include, but are not limited to,
70 governments, private businesses, and community organizations. 99 representatives from the following organizations and industries:
71 (4) FLORIDA OFFICE OF BROADBAND.—The Florida Office of 100 libraries, K-12 education, colleges and universities, local
72 Broadband is created within the Division of Community 101 health care providers, private businesses, community
73 Development within the department for the purpose of developing, 102 organizations, economic development organizations, local
74 marketing, and promoting broadband Internet services to this 103 governments, tourism, parks and recreation, and agriculture.
75 state. The office, in the performance of its duties, shall do 104 (c)(d) Encourage the use of broadband Internet service,
76 all of the following to: 105 especially in the rural, unserved, or and underserved
77 (a) Monitor the adoption of broadband Internet service in 106 communities of this the state through grant programs having
78 collaboration with communications service providers, including, 107 effective strategies to facilitate the statewide deployment of
79 but not limited to, wireless and wireline Internet service 108 broadband Internet service. For any grants to be awarded,
80 providers, to develop geographical information system maps at 109 priority must be given to projects that:
81 the census tract level that will: 110 1. Provide access to broadband education, awareness,
82 1. Identify geographic gaps in broadband services, 111 training, access, equipment, and support to libraries, schools,
83 including areas unserved by any broadband provider and areas 112 colleges and universities, health care providers, and community
84 served by a single broadband provider; 113 support organizations.
85 2. Identify the download and upload transmission speeds 114 2. Encourage the sustainable adoption of broadband in
86 made available to businesses and individuals in the state, at 115 primarily underserved unserved areas by removing barriers to
87 the census tract level of detail, using data rate benchmarks for 116 entry.
Page 3 of 5 Page 4 of 5
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2020 SB 1166
26-00629D-20 20201166__
117 3. Work toward encouraging investments in establishing
118 affordable and sustainable broadband Internet service in
119 underserved unserved areas of this the state.
120 4. Facilitate the development of applications, programs,
121 and services, including, but not limited to, telework,
122 telemedicine, and e-learning to increase the usage of, and
123 demand for, broadband Internet service in this the state.
124 (5)(3) ADMINISTRATION.—The department may:
125 (a) Apply for and accept federal funds for purposes of this
126 section, as well as gifts and donations from individuals,
127 foundations, and private organizations.
128 (b)(4) The department may Enter into contracts necessary or
129 useful to carry out the purposes of this section.
130 (c)(5) The department may Establish any committee or
131 workgroup to administer and carry out the purposes of this
132 section.
133 Section 3. Chapter 2012-131, Laws of Florida, is repealed.
134 Section 4. This act shall take effect July 1, 2020.
Page 5 of 5
CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
Committee Agenda Request
To: Senator Joseph Gruters, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: January 2, 2020
I respectfully request that Senate Bill #1166, relating to Broadband Internet Service, be placed
on the:
committee agenda at your earliest possible convenience.
next committee agenda.
Senator Ben Albritton
Florida Senate, District 26
File signed original with committee office S-020 (03/2004)
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
1/28/20 1166
Meeting Date Bill Number (if applicable)
Topic Broadband Internet Service Amendment Barcode (if applicable)
Name Nicholas Alvarez
Job Title Legislative Affairs Director
Address 107 E. Madison St. Caldwell Building Phone 850-245-7370
Street
Tallahassee FL 32399 E ail Nicholas.Alvarez@deo.myflorida.com
City State Zip
Speaking: [ l For l [ Against l l Information Waive Speaking: 1 1 In Support 1 1 A ainst
(The Chair will read this information into the record.)
Representing Department of Economic Opportunity
Appearing at request of Chair: I I Yes No Lobbyist registered with Legislature: Yes No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
ThSc fr\ nrk to nari a AifftfiA a/ #* J?ia rv*aA4«nsv o nnn /h /H aia a\
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to t e Senator or Senate Professional Staff conducting the meeting)
Meeting Date Bill Number (if applicable)
Amendment Barcode (if applicable)
Phone ft
Street
City State zip
Speaking: EZl For I I A ainst I I Information Waive Speaking: Ir support dl Against
(The Chair will read this information into the record.)
Representing
Appearing at request of Chair: I I Yes I I No Lobbyist registered with Legislature: Yes No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
1/28/20 1166
Bill Number (if applicable)
Meeting Date
573474
T0pic Broadband Internet Service Amendment Barcode (if applicable)
Name Nicholas Alvarez
Job Title Legislative Affairs Director
Address 107 E. Madison St. Caldwell Building Phone 850-245-7370
Street
FL 32399 Email Nicholas.Alvarez@deo.myflorida.com
Tallahassee
State Zip
Speaking: | l For QAgainst | | Information Waive Speaking: [ J In Support I I A ainst
(The Chair will read this information into the record.)
Representing Department of Economic Opportunity
Appearing at request of Chair: |Yes 0 No Lobbyist registered with Legislature: 0Yes I I No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form ic nart nf the oublic record for this meeting.
S-001 (10/14/14)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1186
INTRODUCER: Senator Baxley
SUBJECT: Drug-free Workplaces
DATE: January 27, 2020 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. McMillan McKay CM Favorable
2. GO
3. RC
I. Summary:
SB 1186 makes changes to the drug-free workplace programs in Chapters 112 and 440, F.S.
The bill amends s. 112.0455, F.S., which applies to any agency within state government, to:
Require that prescreening and drug-screening tests meet specified standards;
Prohibit sending urine specimens for out of state testing unless the drug-testing facility meets
Florida standards; and
Require the Agency for Health Care Administration to adopt rules.
Currently, an employer subject to the Workers’ Compensation Law who implements a drug-free
workforce program pursuant to s. 440.102, F.S., is eligible for a workers’ compensation
insurance discount of up to 5 percent. If an employee in such a program tests positive for drugs
or alcohol, the employee may be terminated, and forfeits his or her eligibility for medical and
indemnity benefits. This bill:
Amends the definition of “drug” to include substances named in state and federal law;
Adds additional certification requirements for drug tests and specimens;
Removes a requirement that an employee be provided a form on which to note medications,
which must be taken into account in interpreting drug tests;
Replaces a list of professions qualified to collect specimens with a requirement that such
persons meet qualification standards set by specified federal agencies;
Requires specimens from positive tests to be preserved for one year after the confirmation
test was conducted, instead of 210 days after result was mailed;
Shortens from 180 to 60 days after notification of a positive result the period during which an
employee may have a specimen retested;
Requires that prescreening and drug-screening tests meet specified standards;
Prohibits sending urine specimens for out of state testing unless the drug-testing facility
meets Florida standards; and
BILL: SB 1186 Page 2
Requires the Agency for Health Care Administration to adopt rules.
The bill takes effect July 1, 2020.
II. Present Situation:
Drug-Free Workplace Act for State Agency Employers
The Drug-Free Workplace Act in s. 112.0455, F.S., exists to promote the goal of drug-free
workplaces within government through drug-testing, and to provide opportunities for assistance
to employees with alcohol or drug problems. The Act, which applies to agencies within state
government,1 specifies requirements for testing standards and procedures, notice, employee and
employer protections, and remedies.
Drug-Free Workplace Program for Workers’ Compensation Employers
The Workers’ Compensation Law in Chapter 440, F.S., provides legislative intent to promote
drug-free workplaces, and sets out the notice, educational, and procedural requirements that an
employer must follow to implement the employee and applicant drug testing that is a component
of such workplaces.2 An “employer” means a person or entity that employs a person and that is
covered by the Workers’ Compensation Law.3
If an employer implements a drug-free workplace program that conforms to applicable law and
rules, the employer is eligible for workers’ compensation and employer’s liability insurance
discounts4 of up to five percent,5 and the employer may require an employee to submit to a test
for the presence of drugs or alcohol. If an employee in a drug-free workplace program tests
positive for drugs or alcohol, the employee may be terminated, and forfeits his or her eligibility
for medical and indemnity benefits.6
Definitions
The following definitions apply to a drug-free workplace program implemented pursuant to law
or to rules adopted by the Agency for Health Care Administration (AHCA):
“Drug” means alcohol, including a distilled spirit, wine, a malt beverage, or an intoxicating
liquor; an amphetamine; a cannabinoid; cocaine; phencyclidine (PCP); a hallucinogen;
methaqualone; an opiate; a barbiturate; a benzodiazepine; a synthetic narcotic; a designer
drug; or a metabolite of any of the substances listed in this paragraph.
“Drug test” or “test” means any chemical, biological, or physical instrumental analysis
administered, by a laboratory certified by the U.S. Department of Health and Human
1
Section 112.0455(5)(h), F.S.
2
See ss. 440.101 and 440.102, F.S.
3
Section 440.102(1)(h), F.S.
4
Section 440.102(2), F.S. See s. 627.0915, F.S., providing that the Office of Insurance Regulation must approve rating plans
for workers’ compensation and employers’ liability insurance that give specific identifiable consideration in the setting of
rates to employers that implement a drug-free workplace program pursuant to s. 440.102 F.S., and attendant rules.
5
Fla. Admin Code R. 69L-5.220 (2019).
6
Section 440.101(2), F.S.
BILL: SB 1186 Page 3
Services or licensed by the AHCA, for the purpose of determining the presence or absence of
a drug or its metabolites.
“Specimen” means tissue, hair, or a product of the human body capable of revealing the
presence of drugs or their metabolites, as approved by the U.S. Food and Drug
Administration or the AHCA.7
Notice
One time only, prior to testing, an employer must give all employees and applicants for
employment a written policy statement that contains:
A general statement of the employer’s policy on employee drug use identifying the types of
drug testing an employee or applicant may be required to submit to, and the actions the
employer may take against an employee or applicant on the basis of a positive confirmed
drug test result;
A statement advising the employee or job applicant of the existence of s. 440.102, F.S.;
A general statement concerning confidentiality;
Procedures for employees and job applicants to confidentially report to a medical review
officer the use of prescription or nonprescription medications both before and after being
tested;
A list of the most common medications, by brand name or common name, as applicable, as
well as by chemical name, which may alter or affect a drug test;
The consequences of refusing to submit to a drug test;
A representative sampling of names, addresses, and telephone numbers of employee
assistance programs and local drug rehabilitation programs;
A statement that an employee or applicant who receives a positive confirmed test result may
contest or explain the result to the medical review officer within 5 working days after
receiving written notification of the test result; that if an employee’s or applicant’s
explanation or challenge is unsatisfactory to the medical review officer, the medical review
officer must report a positive test result back to the employer; and that a person may contest
the drug test result;
A statement informing the employee or job applicant of his or her responsibility to notify the
laboratory of any administrative or civil action brought pursuant to the drug-free workplace
law;
A list of all drugs for which the employer will test, described by brand name or common
name, as well as by chemical name;
A statement regarding any applicable collective bargaining agreement or contract and the
right to appeal to the Public Employees Relations Commission or applicable court; and
A statement notifying employees and job applicants of their right to consult with a medical
review officer for technical information regarding prescription or nonprescription
medication.8
An employer must include notice of drug testing on vacancy announcements for positions for
which drug testing is required.9
7
Section 440.102(1), F.S.
8
Section 440.102(3)(a), F.S.
9
Section 440.102(3)(c), F.S.
BILL: SB 1186 Page 4
Types of Testing
An employer is required to conduct job applicant, reasonable-suspicion, and routine fitness-for-
duty drug testing. If an employee in the course of employment enters an employee assistance
program for drug-related problems, or a drug rehabilitation program, the employer must require
the employee to submit to a drug test as a follow-up to such program, unless the employee
voluntarily entered the program. If follow-up testing is required, it must be conducted at least
once a year for a 2-year period after completion of the program.10
Procedures
All specimen collection and testing for drugs pursuant to s. 440.102, F.S., must be performed in
accordance with the following procedures:
Samples must be collected with due regard to privacy of the individual providing the sample,
and in a manner reasonably calculated to prevent substitution or contamination of the sample.
Specimen collection must be documented, and the documentation procedures must include:
o Labeling of specimen containers, and
o A form for the employee or job applicant to provide any information he or she considers
relevant to the test, including identification of currently or recently used prescription or
nonprescription medication or other relevant medical information. The form must provide
notice of the most common medications by brand name or common name, as applicable,
as well as by chemical name, which may alter or affect a drug test. The providing of
information must not preclude the administration of the drug test, but must be taken into
account in interpreting any positive confirmed test result;
Specimen collection, storage, and transportation to the testing site must be performed in a
manner that reasonably precludes contamination or adulteration of specimens;
Each confirmation test conducted must be conducted by a licensed or certified laboratory:
A specimen for a drug test may be taken or collected by any of the following persons:
o A physician, a physician assistant, a registered professional nurse, a licensed practical
nurse, or a nurse practitioner or a certified paramedic who is present at the scene of an
accident for the purpose of rendering emergency medical service or treatment; or
o A qualified person employed by a licensed or certified laboratory;
A person who collects or takes a specimen for a drug test must collect an amount sufficient
for two drug tests as determined by the AHCA.
Every specimen that produces a positive, confirmed test result must be preserved by the
licensed or certified laboratory that conducted the confirmation test for a period of at least
210 days after the result of the test was mailed or otherwise delivered to the medical review
officer. However, if an employee or job applicant undertakes an administrative or legal
challenge to the test result, the employee or job applicant must notify the laboratory and the
sample must be retained by the laboratory until the case or administrative appeal is settled.
During the 180-day period after written notification of a positive test result, the employee or
job applicant who has provided the specimen must be permitted by the employer to have a
portion of the specimen retested, at the employee’s or job applicant’s expense, at another
laboratory, licensed and approved by the AHCA, chosen by the employee or job applicant.
The second laboratory must test at equal or greater sensitivity for the drug in question as the
first laboratory;
10
Section 440.102(4), F.S.
BILL: SB 1186 Page 5
Within 5 working days after receipt of a positive confirmed test result from the medical
review officer, an employer must inform an employee or job applicant in writing of such
positive test result, the consequences of such results, and the options available to the
employee or job applicant. The employer must provide to the employee or job applicant,
upon request, a copy of the test results;
Within 5 working days after receiving notice of a positive confirmed test result, an employee
or job applicant may submit information to the employer explaining or contesting the test
result, and explaining why the result does not constitute a violation of the employer’s policy;
The employee’s or job applicant’s explanation or challenge of the positive test result is
unsatisfactory to the employer, a written explanation as to why the employee’s or job
applicant’s explanation is unsatisfactory, along with the report of positive result, must be
provided by the employer to the employee or job applicant; and all such documentation must
be kept confidential by the employer pursuant to subsection (8) and must be retained by the
employer for at least 1 year;
An employer may not discharge, discipline, refuse to hire, discriminate against, or request or
require rehabilitation of an employee or job applicant on the sole basis of a positive test result
that has not been verified by a confirmation test and by a medical review officer;
An employer that performs drug testing or specimen collection must use chain-of-custody
procedures established by the AHCA;
An employer must pay the cost of all drug tests, initial and confirmation, which the employer
requires of employees. An employee or job applicant must pay the costs of any additional
drug tests not required by the employer;
An employer must not discharge, discipline, or discriminate against an employee solely upon
the employee’s voluntarily seeking treatment, while under the employ of the employer, for a
drug-related problem if the employee has not previously tested positive for drug use, entered
an employee assistance program for drug-related problems, or entered a drug rehabilitation
program;
If drug testing is conducted based on reasonable suspicion, the employer must promptly
detail in writing the circumstances which formed the basis of the determination that
reasonable suspicion existed to warrant the testing; and
All authorized remedial treatment, care, and attendance provided by a health care provider to
an injured employee before medical and indemnity benefits are denied under s. 440.102, F.S.,
must be paid for by the carrier or self-insurer.
Confirmation Testing
If an initial drug test is negative, the employer may in its sole discretion seek a confirmation test,
which may be conducted only by licensed or certified laboratories. All positive initial tests must
be confirmed using gas chromatography/mass spectrometry or an equivalent or more accurate
scientifically accepted method approved by the AHCA or the U.S. Food and Drug
Administration as such technology becomes available in a cost-effective form. If an initial drug
test of an employee or job applicant is confirmed as positive, the employer’s medical review
officer must provide technical assistance to the employer and to the employee or job applicant
for the purpose of interpreting the test result to determine whether the result could have been
caused by prescription or nonprescription medication taken by the employee or job applicant.
BILL: SB 1186 Page 6
Employer Protection
An employee or job applicant whose drug test result is confirmed as positive in accordance with
s. 440.102, F.S., must not, by virtue of the result alone, be deemed to have a “handicap” or
“disability” as defined under federal, state, or local handicap and disability discrimination laws.
An employer who discharges or disciplines an employee or refuses to hire a job applicant in
compliance with this section is considered to have discharged, disciplined, or refused to hire for
cause.
III. Effect of Proposed Changes:
Drug-Free Workplace Program for Agencies within State Government
Section 1 makes changes to the Drug-Free Workplace Act in s. 112.0455, F.S., by requiring
sample prescreening validity tests that can detect drug testing subversion technologies in urine
specimens, and requiring screening tests that meet specified criteria as to creatinine, oxidants and
detection of adulterants. The bill prohibits sending urine specimens for out of state testing unless
the drug-testing facility meets Florida standards, and requires the AHCA to adopt rules for these
standards.
Drug-Free Workplace Program for Workers’ Compensation Employers
Section 2 makes numerous changes to the procedures relating to drug-free workplaces for
Workers’ Compensation Law employers in s. 440.102, F.S.
Definitions
The bill amends the definition of “drug” by specifying that alcohol means any substance
containing any form of alcohol, including ethanol, methanol, propanol, and isopropanol. A
controlled substance includes those identified under Schedules I, II, III, IV, or Schedule V of s.
893.03, F.S.;11 and any controlled substance identified under Schedules I, II, III, IV, or V of the
Controlled Substances Act, 21 U.S.C. s. 812(c).
A “drug test,” when testing for alcohol, must be conducted in accordance with the United States
Department of Transportation alcohol testing procedures authorized under 49 C.F.R. part 40,
subparts J through M.12
The U. S. Department of Health and Human Services (HHS) and U. S. Department of
Transportation (USDOT) are added to the list of governmental agencies that can approve what
“specimen” means.
11
Section 893.03, F.S., classifies controlled substances into five categories, known as schedules. These schedules regulate the
manufacture, distribution, preparation, and dispensing of the substances listed in the schedules. The most important factors in
determining the schedule classification of a substance are the “potential for abuse” of the substance and whether there is
a currently accepted medical use for the substance in the United States.
12
This rule describes required procedures for conducting workplace drug and alcohol testing for the federally regulated
transportation industry. See https://www.transportation.gov/odapc/part40 (last visited January 27, 2020).
BILL: SB 1186 Page 7
Notice
The bill changes the written policy statement that employers are required to give to all
employees and applicants prior to testing by removing from the procedures the requirement that
employees and job applicants could confidentially report to a medical review officer their use of
medications both before and after being tested. The bill also removes the requirement that the
policy contain the brand name of drugs being tested for.
Procedures
The bill deletes a labeling requirement for specimen containers for saliva or breath testing when
not being transported to a laboratory for analysis.
The bill deletes a requirement that a form must be provided upon which an employee may
provide information considered by the employee to be relevant to the test, including the use of
medication, and deletes the requirement that such information be taken into account in
interpreting positive confirmed test results.
The bill replaces a requirement that a drug test specimen may be collected by a physician,
physician assistant, registered professional nurse, licensed practical nurse, nurse practitioner,
certified paramedic at scene of accident, or qualified lab employee with a requirement that a
specimen may be collected by a person who meets the qualification standards for urine or oral
fluid specimen collection as specified by the HHS or the USDOT. For alcohol testing, a person
must meet the USDOT for a screening test technician or a breath alcohol technician. A hair
specimen may be collected and packaged by a person who has been trained and certified by a
drug testing laboratory. A person who directly supervises an employee subject to testing may not
serve as the specimen collector for that employee unless there is no other qualified specimen
collector available.
The bill clarifies that a specimen amount should be sufficient for two independent drug tests -
one to screen the specimen and one to confirm the screening results.
The bill extends from 210 days to one year the amount of time a specimen that produces a
positive, confirmed test must be preserved.
The bill shortens from 180 days to 60 days the period after a positive test during which an
employee or applicant may have the sample retested.
The bill provides that a second lab must test the specimen at the limit of detection for the drug or
analyte confirmed by the original, and if the drug or analyte is detected by the second laboratory,
the result must be reported as reconfirmed positive.
The bill deletes a requirement that an applicant or employee’s explanation or challenge of a
positive test must be provided to the applicant or employee.
BILL: SB 1186 Page 8
Current law provides that an employer may not discharge, discipline, refuse to hire, discriminate
against, or request or require rehabilitation of an employee or job applicant on the sole basis of a
positive test result that has not been verified by a confirmation test and by a medical review
officer. The bill removes the confirmation test as a condition, and creates an exception when a
confirmed positive breath alcohol test was conducted in accordance with U.S. Department of
Transportation alcohol testing procedures.
An employer that performs drug testing or specimen collection must use chain-of-custody
procedures established by the Agency for Health Care Administration, or, added by the bill,
procedures established by the HHS, or the USDOT.
Confirmation Testing
The bill removes a provision specifying that, if an initial drug test is negative, the employer may
in its sole discretion seek a confirmation test, and removes a provision that only licensed or
certified laboratories may conduct confirmation drug tests.
The bill provides that all laboratory positive initial tests on a urine, oral fluid, blood, or hair
specimen must be confirmed using gas chromatography/mass spectrometry or an equivalent or
more accurate scientifically accepted method approved by the HHS or the USDOT, and removes
a provision that the tests can be confirmed by methods approved by the AHCA or the U.S. Food
and Drug Administration.
The bill provides that for a breath alcohol test, an initial positive result must be confirmed by a
second breath specimen taken and tested using an evidential breath testing device listed on the
conforming products list issued by the National Highway Traffic Safety Administration and
conducted in accordance with USDOT alcohol testing procedures authorized under 49 C.F.R.
part 40, subparts J through M.
Employer Protection
The bill provides that an employee or job applicant whose drug test result is confirmed or
verified as positive must not, by virtue of the result alone, be deemed to have a “handicap” or
“disability” as defined under federal, state, or local handicap and disability discrimination laws.
Drug-Testing Standards
The bill creates a new subsection (9) in s. 440.102, F.S., requiring sample prescreening validity
tests that can detect drug testing subversion technologies in urine specimens, and requiring
screening tests that meet specified criteria as to creatinine, oxidants, and detection of adulterants.
The bill prohibits sending urine specimens for out of state testing unless the drug-testing facility
meets Florida standards, and requires the AHCA to adopt rules for these standards.
Drug-Testing Standards for Laboratories
The bill removes a requirement that lab reports of drug tests must include any correlation
between medication reported by the employee or applicant and the test result, consistent with
BILL: SB 1186 Page 9
lines 277-286 of the bill, which delete the requirement than an employee or applicant be
provided a form to list currently or recently used medication.
Cross Reference
Section 3 updates a cross reference in s. 443.101, F.S.
Effective date
Section 4 provides that the bill takes effect July 1, 2020.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Indeterminate. If the amended testing standards in the bill reduce the number of drug-
testing facilities that can comply, those drug-testing facilities that can comply should see
an increase in the number of tests they perform.
C. Government Sector Impact:
Indeterminate.
BILL: SB 1186 Page 10
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill amends sections 112.0455, 440.102, and 443.101 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2020 SB 1186 Florida Senate - 2020 SB 1186
By Senator Baxley
12-00779A-20 20201186__ 12-00779A-20 20201186__
1 A bill to be entitled 30 specimens to determine the specimens’ validity;
2 An act relating to drug-free workplaces; amending s. 31 specifying requirements for such tests; authorizing
3 112.0455, F.S.; requiring licensed drug-testing 32 such facilities to rely on such tests to determine if
4 facilities to perform prescreening tests on urine 33 confirmation testing is required; providing that urine
5 specimens to determine the specimens’ validity; 34 specimens may not be sent to an out-of-state facility
6 specifying requirements for such tests; authorizing 35 unless the facility complies with certain
7 such facilities to rely on such tests to determine if 36 requirements; authorizing the agency to adopt rules;
8 confirmation testing is required; providing that urine 37 conforming provisions to changes made by the act;
9 specimens may not be sent to an out-of-state facility 38 amending s. 443.101, F.S.; conforming a cross-
10 unless the facility complies with certain 39 reference; providing an effective date.
11 requirements; authorizing the Agency for Health Care 40
12 Administration to adopt rules; conforming cross- 41 WHEREAS, the State of Florida has a profound interest in
13 references; amending s. 440.102, F.S.; revising 42 the health and welfare of its citizens, and
14 definitions; revising information required in a 43 WHEREAS, new and emerging drug-testing subversion
15 written policy statement provided to employees and job 44 technologies represent a significant threat to the ability to
16 applicants before drug testing; revising procedures 45 properly identify those suffering from addiction and drug abuse,
17 for specimen collection, testing, and preservation; 46 and
18 revising qualifications for persons who may take or 47 WHEREAS, the Legislature, therefore, seeks to require urine
19 collect specimens for a drug test; revising 48 sample validity testing, such that those persons being tested
20 requirements and procedures for retesting specimens; 49 can be properly and promptly identified for referral to drug
21 deleting and revising confidentiality requirements for 50 treatment programs and other health care services, NOW,
22 employers relating to certain information; revising 51 THEREFORE,
23 circumstances under which an employer may take certain 52
24 actions as to an employee or a job applicant on the 53 Be It Enacted by the Legislature of the State of Florida:
25 sole basis of certain positive test results; revising 54
26 standards for chain-of-custody procedures; revising 55 Section 1. Present subsections (13) through (17) of section
27 requirements and authorized actions relating to 56 112.0455, Florida Statutes, are redesignated as subsections (14)
28 confirmation testing; requiring licensed drug-testing 57 through (18), respectively, a new subsection (13) is added to
29 facilities to perform prescreening tests on urine 58 that section, and paragraph (b) of subsection (6) and paragraph
Page 1 of 18 Page 2 of 18
CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2020 SB 1186 Florida Senate - 2020 SB 1186
12-00779A-20 20201186__ 12-00779A-20 20201186__
59 (a) of present subsection (15) are amended, to read: 88 7. A statement that an employee or job applicant who
60 112.0455 Drug-Free Workplace Act.— 89 receives a positive confirmed drug test result may contest or
61 (6) NOTICE TO EMPLOYEES.— 90 explain the result to the employer within 5 working days after
62 (b) Prior to testing, all employees and job applicants for 91 written notification of the positive test result. If an employee
63 employment shall be given a written policy statement from the 92 or job applicant’s explanation or challenge is unsatisfactory to
64 employer which contains: 93 the employer, the person may contest the drug test result as
65 1. A general statement of the employer’s policy on employee 94 provided by subsections (15) (14) and (16) (15).
66 drug use, which shall identify: 95 8. A statement informing the employee or job applicant of
67 a. The types of testing an employee or job applicant may be 96 his or her responsibility to notify the laboratory of any
68 required to submit to, including reasonable suspicion or other 97 administrative or civil actions brought pursuant to this
69 basis; and 98 section.
70 b. The actions the employer may take against an employee or 99 9. A list of all drugs for which the employer will test,
71 job applicant on the basis of a positive confirmed drug test 100 described by brand names or common names, as applicable, as well
72 result. 101 as by chemical names.
73 2. A statement advising the employee or job applicant of 102 10. A statement regarding any applicable collective
74 the existence of this section. 103 bargaining agreement or contract and the right to appeal to the
75 3. A general statement concerning confidentiality. 104 Public Employees Relations Commission.
76 4. Procedures for employees and job applicants to 105 11. A statement notifying employees and job applicants of
77 confidentially report the use of prescription or nonprescription 106 their right to consult the testing laboratory for technical
78 medications both before and after being tested. Additionally, 107 information regarding prescription and nonprescription
79 employees and job applicants shall receive notice of the most 108 medication.
80 common medications by brand name or common name, as applicable, 109 (13) DRUG-TESTING STANDARDS; SAMPLE VALIDITY PRESCREENING.—
81 as well as by chemical name, which may alter or affect a drug 110 Before a drug-testing facility licensed under part II of chapter
82 test. A list of such medications shall be developed by the 111 408 may perform any drug-screening test on a urine specimen
83 Agency for Health Care Administration. 112 collected in this state, prescreening tests must be performed to
84 5. The consequences of refusing to submit to a drug test. 113 determine the validity of the specimen. The prescreening tests
85 6. Names, addresses, and telephone numbers of employee 114 must be capable of detecting, or detecting and defeating, novel
86 assistance programs and local alcohol and drug rehabilitation 115 or emerging urine drug-testing subversion technologies as
87 programs. 116 described in this subsection.
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117 (a) The drug-testing facility shall use urine sample 146 conformance to the requirements of this subsection.
118 validity screening tests that meet all of the following 147 (c) A drug-testing facility may rely on urine sample
119 criteria: 148 validity screening tests to determine if confirmation testing is
120 1. A urine sample validity screening test for creatinine 149 required for any urine sample that has been deemed invalid for
121 must use a 20 mg/dL cutoff concentration and must have minimal 150 drug screening.
122 interferences from bilirubin and blood in the urine. The urine 151 (d) Urine specimens collected in this state may not be sent
123 sample validity screening test must be able to discriminate 152 for drug screening tests to a drug-testing facility located
124 between a creatinine level from an unadulterated urine sample 153 outside of this state unless such drug-testing facility complies
125 and a creatinine level arising from overhydration or creatine or 154 with all requirements of this subsection.
126 protein loading. 155 (e) The Agency for Health Care Administration shall adopt
127 2. A urine sample validity screening test for oxidants must 156 rules necessary for the implementation and enforcement of this
128 be able to detect the presence or effects of oxidant adulterants 157 subsection.
129 up to 6 days after sample collection, under the sample storage 158 (16)(15) NONDISCIPLINE REMEDIES.—
130 conditions outlined in the laboratory standards guideline 159 (a) Any person alleging a violation of the provisions of
131 adopted by rule by the Agency for Health Care Administration, 160 this section, that is not remediable by the commission or an
132 and after any sample transport that is routinely involved. 161 arbitrator pursuant to subsection (15) (14), must institute a
133 3. Urine sample validity screening tests must be able to 162 civil action for injunctive relief or damages, or both, in a
134 detect synthetic or freeze-dried urine substituted for the 163 court of competent jurisdiction within 180 days of the alleged
135 donor’s urine for drug testing. 164 violation, or be barred from obtaining the following relief.
136 4. Urine sample validity screening tests must be validated 165 Relief is limited to:
137 for the detection of all of the additional adulterant classes 166 1. An order restraining the continued violation of this
138 represented by glutaraldehyde, salt, heavy metals, cationic 167 section.
139 detergents, protease, strong alkaline buffers, and strong acidic 168 2. An award of the costs of litigation, expert witness
140 buffers. The detection limits of these classes must be at a 169 fees, reasonable attorney attorney’s fees, and noneconomic
141 sufficient level to detect a nonphysiologic sample or 170 damages provided that damages shall be limited to the recovery
142 interference with enzyme immunoassay drug screening tests. 171 of damages directly resulting from injury or loss caused by each
143 (b) The drug-testing facility may use only urine sample 172 violation of this section.
144 validity screening tests that have undergone validation studies 173 Section 2. Present subsections (9) through (15) of section
145 conducted by the manufacturer to document the product’s 174 440.102, Florida Statutes, are redesignated as subsections (10)
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175 through (16), respectively, a new subsection (9) is added to 204 Administration, for the purpose of determining the presence or
176 that section, and paragraphs (c), (e), and (q) of subsection 205 absence of a drug or its metabolites. In the case of testing for
177 (1), paragraph (a) of subsection (3), paragraphs (b) through 206 the presence of alcohol, the test must be conducted in
178 (h), (j), (k), and (l) of subsection (5), subsection (6), 207 accordance with the United States Department of Transportation
179 paragraph (a) of subsection (7), and paragraphs (b) and (c) of 208 alcohol testing procedures authorized under 49 C.F.R. part 40,
180 present subsection (9) of that section are amended, to read: 209 subparts J through M.
181 440.102 Drug-free workplace program requirements.—The 210 (q) “Specimen” means tissue, hair, or a product of the
182 following provisions apply to a drug-free workplace program 211 human body capable of revealing the presence of drugs or their
183 implemented pursuant to law or to rules adopted by the Agency 212 metabolites, as approved by the United States Food and Drug
184 for Health Care Administration: 213 Administration, or the Agency for Health Care Administration,
185 (1) DEFINITIONS.—Except where the context otherwise 214 the United States Department of Health and Human Services, or
186 requires, as used in this act: 215 the United States Department of Transportation.
187 (c) “Drug” means any form of alcohol, as defined in s. 216 (3) NOTICE TO EMPLOYEES AND JOB APPLICANTS.—
188 322.01(2), including a distilled spirit, wine, a malt beverage, 217 (a) One time only, before prior to testing, an employer
189 or an intoxicating preparation; any controlled substance 218 shall give all employees and job applicants for employment a
190 identified under Schedule I, Schedule II, Schedule III, Schedule 219 written policy statement that which contains:
191 IV, or Schedule V of s. 893.03; any controlled substance 220 1. A general statement of the employer’s policy on employee
192 identified under Schedule I, Schedule II, Schedule III, Schedule 221 drug use, which must identify:
193 IV, or Schedule V of the Controlled Substances Act, 21 U.S.C. s. 222 a. The types of drug testing an employee or job applicant
194 812(c) liquor; an amphetamine; a cannabinoid; cocaine; 223 may be required to submit to, including reasonable-suspicion
195 phencyclidine (PCP); a hallucinogen; methaqualone; an opiate; a 224 drug testing or drug testing conducted on any other basis.
196 barbiturate; a benzodiazepine; a synthetic narcotic; a designer 225 b. The actions the employer may take against an employee or
197 drug; or a metabolite of any of the substances listed in this 226 job applicant on the basis of a positive confirmed drug test
198 paragraph. An employer may test an individual for any or all of 227 result.
199 such drugs. 228 2. A statement advising the employee or job applicant of
200 (e) “Drug test” or “test” means any chemical, biological, 229 the existence of this section.
201 or physical instrumental analysis administered, by a laboratory 230 3. A general statement concerning confidentiality.
202 certified by the United States Department of Health and Human 231 4. Procedures for employees and job applicants to
203 Services or licensed by the Agency for Health Care 232 confidentially report to a medical review officer the use of
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233 prescription or nonprescription medications to a medical review 262 Public Employees Relations Commission or applicable court.
234 officer both before and after being tested. 263 12. A statement notifying employees and job applicants of
235 5. A list of the most common medications, by brand name or 264 their right to consult with a medical review officer for
236 common name, as applicable, as well as by chemical name, which 265 technical information regarding prescription or nonprescription
237 may alter or affect a drug test. A list of such medications as 266 medication.
238 developed by the Agency for Health Care Administration shall be 267 (5) PROCEDURES AND EMPLOYEE PROTECTION.—All specimen
239 available to employers through the department. 268 collection and testing for drugs under this section shall be
240 6. The consequences of refusing to submit to a drug test. 269 performed in accordance with the following procedures:
241 7. A representative sampling of names, addresses, and 270 (b) Specimen collection must be documented, and the
242 telephone numbers of employee assistance programs and local drug 271 documentation procedures shall include the:
243 rehabilitation programs. 272 1. labeling of specimen containers so as to reasonably
244 8. A statement that an employee or job applicant who 273 preclude the likelihood of erroneous identification of test
245 receives a positive confirmed test result may contest or explain 274 results. For saliva or breath alcohol testing, a specimen
246 the result to the medical review officer within 5 working days 275 container is not required if the specimen is not being
247 after receiving written notification of the test result; that if 276 transported to a laboratory for analysis
248 an employee’s or job applicant’s explanation or challenge is 277 2. A form for the employee or job applicant to provide any
249 unsatisfactory to the medical review officer, the medical review 278 information he or she considers relevant to the test, including
250 officer shall report a positive test result back to the 279 identification of currently or recently used prescription or
251 employer; and that a person may contest the drug test result 280 nonprescription medication or other relevant medical
252 pursuant to law or to rules adopted by the Agency for Health 281 information. The form must provide notice of the most common
253 Care Administration. 282 medications by brand name or common name, as applicable, as well
254 9. A statement informing the employee or job applicant of 283 as by chemical name, which may alter or affect a drug test. The
255 his or her responsibility to notify the laboratory of any 284 providing of information shall not preclude the administration
256 administrative or civil action brought pursuant to this section. 285 of the drug test, but shall be taken into account in
257 10. A list of all drugs for which the employer will test, 286 interpreting any positive confirmed test result.
258 described by brand name or common name, as applicable, as well 287 (c) Specimen collection, storage, and transportation to a
259 as by chemical name. 288 laboratory the testing site shall be performed in a manner that
260 11. A statement regarding any applicable collective 289 reasonably precludes contamination or adulteration of specimens.
261 bargaining agreement or contract and the right to appeal to the 290 (d) Each confirmation test conducted under this section,
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291 not including the taking or collecting of a specimen to be 320 result shall be preserved by the licensed or certified
292 tested, shall be conducted by a licensed or certified laboratory 321 laboratory that conducted the confirmation test for a period of
293 as described in subsection (10) (9). 322 at least 1 year after the confirmation test was conducted 210
294 (e) A specimen for a drug test may be taken or collected by 323 days after the result of the test was mailed or otherwise
295 any person who meets the qualification standards for urine or 324 delivered to the medical review officer. However, if an employee
296 oral fluid specimen collection as specified by the United States 325 or job applicant undertakes an administrative or legal challenge
297 Department of Health and Human Services or the United States 326 to the test result, the employee or job applicant shall notify
298 Department of Transportation. For alcohol testing, a person must 327 the laboratory and the sample shall be retained by the
299 meet the United States Department of Transportation standards 328 laboratory until the case or administrative appeal is settled.
300 for a screening test technician or a breath alcohol technician. 329 During the 60-day 180-day period after written notification of a
301 A hair specimen may be collected and packaged by a person who 330 positive test result, the employee or job applicant who has
302 has been trained and certified by a drug-testing laboratory. A 331 provided the specimen shall be permitted by the employer to have
303 person who directly supervises an employee subject to testing 332 a portion of the specimen retested, at the employee’s or job
304 may not serve as the specimen collector for that employee unless 333 applicant’s expense, at another laboratory, licensed and
305 there is no other qualified specimen collector available of the 334 approved by the Agency for Health Care Administration, chosen by
306 following persons: 335 the employee or job applicant. The second laboratory must test
307 1. A physician, a physician assistant, a registered 336 the specimen at the limit of detection for the drug or analyte
308 professional nurse, a licensed practical nurse, or a nurse 337 confirmed by the original at equal or greater sensitivity for
309 practitioner or a certified paramedic who is present at the 338 the drug in question as the first laboratory. If the drug or
310 scene of an accident for the purpose of rendering emergency 339 analyte is detected by the second laboratory, the result must be
311 medical service or treatment. 340 reported as reconfirmed positive. The first laboratory that
312 2. A qualified person employed by a licensed or certified 341 performed the test for the employer is responsible for the
313 laboratory as described in subsection (9). 342 transfer of the portion of the specimen to be retested, and for
314 (f) A person who collects or takes a specimen for a drug 343 the integrity of the chain of custody during such transfer.
315 test shall collect an amount sufficient for two independent drug 344 (h) Within 5 working days after receipt of a positive
316 tests, one to screen the specimen and one for confirmation of 345 verified confirmed test result from the medical review officer,
317 the screening test results, at a laboratory as determined by the 346 an employer shall inform an employee or job applicant in writing
318 Agency for Health Care Administration. 347 of such positive test result, the consequences of such result
319 (g) Every specimen that produces a positive, confirmed test 348 results, and the options available to the employee or job
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349 applicant. The employer shall provide to the employee or job 378 subsection (9) may conduct confirmation drug tests.
350 applicant, upon request, a copy of the test results. 379 (c) All laboratory positive initial tests on a urine, oral
351 (j) The employee’s or job applicant’s explanation or 380 fluid, blood, or hair specimen shall be confirmed using gas
352 challenge of the positive test result is unsatisfactory to the 381 chromatography/mass spectrometry (GC/MS) or an equivalent or
353 employer, a written explanation as to why the employee’s or job 382 more accurate scientifically accepted method approved by the
354 applicant’s explanation is unsatisfactory, along with the report 383 United States Department of Health and Human Services or the
355 of positive result, shall be provided by the employer to the 384 United States Department of Transportation Agency for Health
356 employee or job applicant; and All such documentation of a 385 Care Administration or the United States Food and Drug
357 positive test shall be kept confidential by the employer 386 Administration as such technology becomes available in a cost-
358 pursuant to subsection (8) and shall be retained by the employer 387 effective form.
359 for at least 1 year. 388 (b)(d) If a an initial drug test of an employee or job
360 (k) An employer may not discharge, discipline, refuse to 389 applicant is confirmed by the laboratory as positive, the
361 hire, discriminate against, or request or require rehabilitation 390 employer’s medical review officer shall provide technical
362 of an employee or job applicant on the sole basis of a positive 391 assistance to the employer and to the employee or job applicant
363 test result that has not been reviewed and verified by a 392 for the purpose of interpreting the test result to determine
364 confirmation test and by a medical review officer, except when a 393 whether the result could have been caused by prescription or
365 confirmed positive breath alcohol test was conducted in 394 nonprescription medication taken by the employee or job
366 accordance with United States Department of Transportation 395 applicant.
367 alcohol testing procedures. 396 (c) For a breath alcohol test, an initial positive result
368 (l) An employer that performs drug testing or specimen 397 must be confirmed by a second breath specimen taken and tested
369 collection shall use chain-of-custody procedures established by 398 using an evidential breath testing device listed on the
370 the Agency for Health Care Administration, the United States 399 conforming products list issued by the National Highway Traffic
371 Department of Health and Human Services, or the United States 400 Safety Administration and conducted in accordance with United
372 Department of Transportation to ensure proper recordkeeping, 401 States Department of Transportation alcohol testing procedures
373 handling, labeling, and identification of all specimens tested. 402 authorized under 49 C.F.R. part 40, subparts J through M.
374 (6) CONFIRMATION TESTING.— 403 (7) EMPLOYER PROTECTION.—
375 (a) If an initial drug test is negative, the employer may 404 (a) An employee or job applicant whose drug test result is
376 in its sole discretion seek a confirmation test. 405 confirmed or verified as positive in accordance with this
377 (b) Only licensed or certified laboratories as described in 406 section shall not, by virtue of the result alone, be deemed to
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407 have a “handicap” or “disability” as defined under federal, 436 4. Urine sample validity screening tests must be validated
408 state, or local handicap and disability discrimination laws. 437 for the detection of all of the additional adulterant classes
409 (9) DRUG-TESTING STANDARDS; SAMPLE VALIDITY PRESCREENING.— 438 represented by glutaraldehyde, salt, heavy metals, cationic
410 Before a drug-testing facility licensed under part II of chapter 439 detergents, protease, strong alkaline buffers, and strong acidic
411 408 may perform any drug screening test on a urine specimen 440 buffers. The detection limits of these classes must be at a
412 collected in this state, prescreening tests must be performed to 441 sufficient level to detect a nonphysiologic sample or
413 determine the validity of the specimen. The prescreening tests 442 interference with enzyme immunoassay drug-screening tests.
414 must be capable of detecting, or detecting and defeating, novel 443 (b) The drug-testing facility may use only urine sample
415 or emerging urine drug-testing subversion technologies as 444 validity screening tests that have undergone validation studies
416 described in this subsection. 445 conducted by the manufacturer to document the product’s
417 (a) The drug-testing facility shall use urine sample 446 conformance to the requirements of this subsection.
418 validity screening tests that meet all of the following 447 (c) A drug-testing facility may rely on urine sample
419 criteria: 448 validity screening tests to determine if confirmation testing is
420 1. A urine sample validity screening test for creatinine 449 required for any urine sample that has been deemed invalid for
421 must use a 20 mg/dL cutoff concentration and must have minimal 450 drug screening.
422 interferences from bilirubin and blood in the urine. The urine 451 (d) Urine specimens collected in this state may not be sent
423 sample validity screening test must be able to discriminate 452 for drug-screening tests to a drug-testing facility located
424 between a creatinine level from an unadulterated urine sample 453 outside of this state unless such drug-testing facility complies
425 and a creatinine level arising from overhydration or creatine or 454 with all requirements of this subsection.
426 protein loading. 455 (e) The Agency for Health Care Administration shall adopt
427 2. A urine sample validity screening test for oxidants must 456 rules necessary for the implementation and enforcement of this
428 be able to detect the presence or effects of oxidant adulterants 457 subsection.
429 up to 6 days after sample collection, under the sample storage 458 (10)(9) DRUG-TESTING STANDARDS FOR LABORATORIES.—
430 conditions outlined in the laboratory standards guideline 459 (b) A laboratory may analyze initial or confirmation test
431 adopted by rule by the Agency for Health Care Administration, 460 specimens only if:
432 and after any sample transport that is routinely involved. 461 1. The laboratory obtains a license under part II of
433 3. Urine sample validity screening tests must be able to 462 chapter 408 and s. 112.0455(18) s. 112.0455(17). Each applicant
434 detect synthetic or freeze-dried urine substituted for the 463 for licensure and each licensee must comply with all
435 donor’s urine for drug testing. 464 requirements of this section, part II of chapter 408, and
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465 applicable rules. 494 employee or job applicant pursuant to subparagraph (5)(b)2. and
466 2. The laboratory has written procedures to ensure the 495 a positive confirmed drug test result.
467 chain of custody. 496
468 3. The laboratory follows proper quality control 497 A report must not disclose the presence or absence of any drug
469 procedures, including, but not limited to: 498 other than a specific drug and its metabolites listed pursuant
470 a. The use of internal quality controls, including the use 499 to this section.
471 of samples of known concentrations which are used to check the 500 Section 3. Paragraph (b) of subsection (11) of section
472 performance and calibration of testing equipment, and periodic 501 443.101, Florida Statutes, is amended to read:
473 use of blind samples for overall accuracy. 502 443.101 Disqualification for benefits.—An individual shall
474 b. An internal review and certification process for drug 503 be disqualified for benefits:
475 test results, conducted by a person qualified to perform that 504 (11) If an individual is discharged from employment for
476 function in the testing laboratory. 505 drug use as evidenced by a positive, confirmed drug test as
477 c. Security measures implemented by the testing laboratory 506 provided in paragraph (1)(d), or is rejected for offered
478 to preclude adulteration of specimens and drug test results. 507 employment because of a positive, confirmed drug test as
479 d. Other necessary and proper actions taken to ensure 508 provided in paragraph (2)(c), test results and chain of custody
480 reliable and accurate drug test results. 509 documentation provided to the employer by a licensed and
481 (c) A laboratory shall disclose to the medical review 510 approved drug-testing laboratory is self-authenticating and
482 officer a written positive confirmed test result report within 7 511 admissible in reemployment assistance hearings, and such
483 working days after receipt of the sample. All laboratory reports 512 evidence creates a rebuttable presumption that the individual
484 of a drug test result must, at a minimum, state: 513 used, or was using, controlled substances, subject to the
485 1. The name and address of the laboratory that performed 514 following conditions:
486 the test and the positive identification of the person tested. 515 (b) Only laboratories licensed and approved as provided in
487 2. Positive results on confirmation tests only, or negative 516 s. 440.102(10) s. 440.102(9), or as provided by equivalent or
488 results, as applicable. 517 more stringent licensing requirements established by federal law
489 3. A list of the drugs for which the drug analyses were 518 or regulation may perform the drug tests.
490 conducted. 519 Section 4. This act shall take effect July 1, 2020.
491 4. The type of tests conducted for both initial tests and
492 confirmation tests and the minimum cutoff levels of the tests.
493 5. Any correlation between medication reported by the
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The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
i / S
Bill Number (if applicable)
Topic Amendment Barcode (if applicable)
Name
Job Title l
Address / i 6 f Phone «sr- /f 33 -J r fe--S
Street
I Email f Q-T
State 2/p 7
Speaking: EZI For CZ] Against I I Information Waive Speaking: |3 ] In Support I I A ainst
(The Chair will read this information into the recor .)
Representing h J * t
Appearing at request of Chair: ZZ Yes [v] No Lobbyist registered with Legislature: Yes ZZ No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: CS/SB 1356
INTRODUCER: Commerce and Tourism Committee and Senator Bean
SUBJECT: Employer Contributions for Reemployment Assistance
DATE: January 29, 2020 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. McMillan McKay CM Fav/CS
2. FT
3. AP
I. Summary:
CS/SB 1356 reduces the initial reemployment tax rate of new employers from 2.7 percent to 1
percent for tax rates effective on or after January 1, 2021. However, the initial tax rate may not
be adjusted for any year that the balance of the Unemployment Compensation Trust Fund (UC
Trust Fund) becomes unstable and requires the computation of a positive adjustment factor.
The bill takes effect July 1, 2020.
II. Present Situation:
Reemployment Assistance Overview
The Federal Unemployment Insurance Program provides unemployment benefits to eligible workers
who are unemployed through no fault of their own and who meet the requirements of state law.1 The
program is administered as a partnership between the federal government and the states.2 The
individual states collect unemployment compensation payroll taxes on a quarterly basis, which
are used to pay benefits. Subject to the approval of the United States Department of Labor
(USDOL), each state also sets tax rates, benefit levels, and trust fund balances based on the
state’s needs.3
1
USDOL, Employment and Training Administration (ETA), State Unemployment Insurance Benefits, available at
http://workforcesecurity.doleta.gov/unemploy/uifactsheet.asp (last visited Jan. 28, 2020).
2
There are 53 state programs, including the 50 states, Puerto Rico, the Virgin Islands, and the District of Columbia.
3 USDOL, Employment and Training Administration (ETA), State Unemployment Insurance Benefits, available at
http://workforcesecurity.doleta.gov/unemploy/uifactsheet.asp (last visited Jan. 28, 2020).
BILL: CS/SB 1356 Page 2
The Internal Revenue Service collects an annual federal payroll tax under the Federal
Unemployment Tax Act (FUTA),4 which is used to provide grants to the states to fund costs
associated with program administration and job service programs.5
Florida’s unemployment insurance program was created by the Legislature in 1937.6 The
program was rebranded as the “reemployment assistance program” in 2012.7 The Department of
Economic Opportunity (DEO) is responsible for administering the program, and the DEO contracts
with the Florida Department of Revenue (DOR), as the tax collection service provider, for the
collection of unemployment taxes.8
Florida Reemployment Assistance Benefits
A qualified claimant may receive reemployment assistance (RA) benefits equal to 25 percent of
wages, not to exceed $6,325 in a benefit year.9 Benefits range from a minimum of $32 per week
to a maximum weekly benefit amount of $275 for up to 23 weeks, depending on the claimant’s
length of prior employment, wages earned, and the unemployment rate.10
To receive RA benefits, a claimant must meet certain monetary and non-monetary eligibility
requirements. Key eligibility requirements involve a claimant’s earnings during a certain period
of time, the manner in which the claimant became unemployed, and the claimant’s efforts to find
new employment.11
A claimant must meet certain requirements in order to be eligible for benefits for each week of
unemployment.12 For example, each week an individual is required to contact at least five
prospective employers (three prospective employers if the individual resides in a small county)
or report to a One-Stop Career Center for reemployment services.13
Financing Reemployment Assistance
In Florida, RA benefits are financed solely through contributions by employers – employers pay
taxes on the first $7,000 of each employee’s wages.14 Employers are required to pay state taxes into
4
26 U.S.C. 3301-3311.
5
FUTA also pays one-half of the cost of extended unemployment benefits (during periods of high unemployment) and
provides for a fund from which states may borrow, if necessary, to pay benefits. See USDOL, Employment and Training
Administration, Unemployment Insurance Tax Topic, available at
http://workforcesecurity.doleta.gov/unemploy/uitaxtopic.asp (last visited Jan. 28, 2020).
6
Chapter 18402, Laws of Fla.
7
Chapter 2012-30, Laws of Fla.
8
Section 443.1316, F.S.
9
Section 443.111(5), F.S. The maximum amount of benefits available is calculated by multiplying an individual’s weekly
benefit amount by the number of available benefit weeks.
10
Section 443.111(3), F.S. If the average unemployment rate for the 3 months in the most recent third calendar year quarter is
at or below 5 percent, then the maximum weeks of benefits available is 12; for each 0.5 percent that the unemployment rate is
above 5 percent, an additional week of benefits becomes available up to 23 weeks at an unemployment rate of 10.5 percent.
11
See s. 443.091, F.S.
12
Id.
13
Id. For the entire list of requirements and exceptions. A “small county” is defined in s. 120.52(19), F.S., as any county that
has an unincarcerated population of 75,000 or less according to the most recent decennial census.
14
Section 443.1217, F.S.
BILL: CS/SB 1356 Page 3
Florida’s RA program as a cost of doing business.15 Employers must file quarterly reports and pay
taxes within one month of the close of each quarter. New businesses are required to report initial
employment information in the month following the calendar quarter in which employment begins.16
The DOR reviews the reports and any additional required applications to make a determination of
whether the business is liable to pay RA taxes.17
Businesses are liable for state reemployment tax if they meet any of the following conditions:18
Paid more than $1,500 in quarterly wages in a calendar year;
Had at least one employee for any portion of a day during any 20 weeks in a calendar year; or
Is liable under the FUTA.19
Florida law also specifies separate liability requirements for agricultural and domestic employers,
nonprofit organizations, governmental agencies, and Indian tribes.20 Businesses that are otherwise
not subject to RA taxation may decide to voluntarily pay into the UC Trust Fund for coverage for
their employees.21
Reemployment Assistance Tax Rates
An employer’s contributions are equal to a percentage of its wages paid for employment. 22 The
standard rate of contributions payable is 5.4 percent,23 which is also the maximum allowable tax rate
under current law.24 New employers are liable to pay an initial contribution of 2.7 percent, which
remains in effect until the employer has made contributions for at least eight consecutive quarters. 25
One exception to the initial rate is when employers who would be liable by succession, choose to
accept the tax rate of the previous employer and the responsibility of paying any outstanding amounts
due.26
An employer with record of at least eight quarters of contributions may be eligible to receive a
variable tax rate.27 Variable tax rates are adjusted annually and are based on the employer’s benefit
experience,28 the balance of the UC Trust Fund,29 and other adjustment factors.30 The variable rates
15
DOR, Employer Guide to Reemployment Tax, available at http://floridarevenue.com/Forms_library/current/rt800002.pdf
(last visited Jan. 28, 2020).
16
Id.
17
Id.
18
Id.
19
Id.
20
See generally ch. 443, F.S.
21
If an employer voluntarily provides coverage, the employer must report wages and pay RA taxes for a minimum of one
calendar year. Section 443.121(3), F.S.
22
Employers are required to pay taxes on the first $7,000 of each employee’s wages. Section 443.1217(2), F.S.
23
Section 443.131(2)(c), F.S.
24
See s. 443.131(2)(e), F.S
25
Section 443.131(2)(a), F.S.
26
See s. 443.131(2)(b), F.S.
27
See s. 443.131(3)(d), F.S.
28
The purpose of using the experience rating to determine RA tax rates is to stabilize the UC Trust Fund at a percentage of
the taxable payrolls reported by all employers and to ensure employers are required to pay a fair share.
29
The UC Trust Fund is an account used to pay unemployment compensation benefits.
30
See s. 443.131(3)(e), F.S.
BILL: CS/SB 1356 Page 4
range from 5.4 percent to the minimum allowable tax rate, which varies annually but can never be
less than 0.1 percent.31
Employee Leasing Companies
Employee leasing is an arrangement where a leasing company assigns its employees to a client and
allocates the direction and control of the leased employees between the leasing company and client.32
When a client contracts with an employee leasing company (ELC) 33 to provide it with workers, those
workers are considered employees of the ELC.34 Employees of an ELC must be reported under the
ELC’s tax identification number and contribution rate for work performed for the ELC.35 However,
ELCs may choose to make a separate one-time election to report and pay contributions under the tax
identification number and contribution rate for each client of the ELC.36 A newly licensed ELC37 has
30 days from the date of licensure to make an election with the DOR to report and pay reemployment
tax using the tax rate for each client.38 This method is referred to as the “client method,” and the tax
rate used will be based upon the wage and benefit history the client has earned under the ELC. 39 If
the client does not have a wage and benefit history under the ELC, then the client will have the initial
rate of 2.7 percent.40
Unemployment Compensation Trust Fund
Economic conditions resulting in abnormally high unemployment accompanied by high benefit
charges can cause a severe drain on the UC Trust Fund. This effect triggers the positive fund balance
adjustment factor, which consequently increases tax rates for all employers. 41 Conversely, when
31
The final adjustment factor spreads costs not included in the variable adjustment factor to all employers whose rates are not
at the initial or maximum rate. The final adjustment factor determines the minimum tax rate for the year. See s. 443.131(3)(e),
F.S.
32
See s. 468.520(4), F.S. The term “client” means a party who has contracted with an employee leasing company to provide a
worker, or workers, to perform services for the client. See s. 443.036(18).
33
Employee leasing companies (ELCs) are also referred to as professional employer organizations (PEOs). See s. 468.520(4),
F.S. Leased employees include employees subsequently placed on the payroll of the employee leasing company on behalf of
the client. See s. 443.036(18).
34
See s. 443.1216(1)(a), F.S.
35
Id.
36
Id.
37
An Employee leasing company is responsible for providing quarterly reports concerning the clients of the employee leasing
company and the internal staff of the employee leasing company. See s. 443.036(18).
38
DOR, Reemployment Tax for Professional Employer Organizations, available at
https://floridarevenue.com/taxes/taxesfees/Pages/rt_elc.aspx (last visited Jan. 28, 2020).
39
Id.
40
If the client company’s employment record is chargeable with benefits for less than 8 calendar quarters while being a client
of the ELC, the client company must pay contributions at the initial rate. See s. 443.1216(1)(a), F.S.
41
If the balance of the UC Trust Fund is below 4 percent of the taxable payrolls for the year immediately preceding the
calendar year for which the contribution rate is being computed, then a positive adjustment factor is computed. The positive
adjustment factor remains in effect for subsequent years until the balance of the UC Trust Fund equals or exceeds 4 percent
of the taxable payrolls. However, if the balance of the UC Trust Fund is above 5 percent of the taxable payrolls for the year
immediately preceding the calendar year for which the contribution rate is being computed, then a negative adjustment factor
must be computed. The negative adjustment factor remains in effect for subsequent years until the balance of the UC Trust
Fund exceeds 4 percent but is less than 5 percent of the taxable payrolls of that year. See s. 443.131(3)(e).
BILL: CS/SB 1356 Page 5
unemployment and benefit charges are low, the negative fund balance adjustment factor is triggered,
and tax rates for employers are reduced accordingly.42
III. Effect of Proposed Changes:
The bill amends ss. 443.1216 and 443.131 of the Florida Statutes to reduce the initial
reemployment tax rate for new employers from 2.7 percent to 1 percent.
For tax rates effective on or after January 1, 2021, if an ELC chooses to report and pay the
reemployment tax using the tax rate for each client, and a client company’s record is chargeable
with benefits for less than 8 quarters, the client company’s initial tax rate is 1 percent. However,
the bill provides that the initial tax rate may not be adjusted for any year that the balance of the
UC Trust Fund requires the computation of a positive adjustment factor.
For tax rates effective on or after January 1, 2021, the initial reemployment tax rate for new
employers whose record is chargeable with benefits for less than 8 quarters is 1 percent.
However, the bill provides that the initial tax rate may not be adjusted for any year that the
balance of the UC Trust Fund requires the computation of a positive adjustment factor.43
The bill takes effect July 1, 2020.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
42
During the years of 2010-2014, the Legislature made efforts to temporarily increase the tax wage base from $7,000 to
$8,500, increased the trigger for the positive adjustment factor from 3.7 percent to 4 percent, and reduced the trigger for the
negative adjustment factor from 4.7 percent to 5 percent. The Legislature also reduced the tax wage base and the adjustment
factor triggers as the economy stabilized. See Ch. 2009-99, Laws of Fla., Ch. 2010-1, Laws of Fla., Ch. 2011-235, Laws of
Fla., and Ch. 2012-30, Laws of Fla.
43
See s. 443.131(3)(e).
BILL: CS/SB 1356 Page 6
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
The Revenue Estimating Conference has not yet determined the fiscal impact of the bill.
B. Private Sector Impact:
Unless the UC Trust Fund is unstable, new contributory employers will pay a reduced tax
rate from 2.7 percent down to 1 percent until their tax rate is adjusted based on their
employment record.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 443.1216 and
443.131.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Commerce and Tourism on January 28, 2020:
Clarifies that the initial tax rate may not be adjusted for any year that the balance of
the UC Trust Fund requires the computation of a positive adjustment factor, which
applies to ELCs and new employers whose record is chargeable with benefits for less
than 8 quarters; and
Clarifies that the initial tax rate of 1 percent will apply “for tax rates effective on or
after January 1, 2021.”
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2020 COMMITTEE AMENDMENT
Bill No. SB 1356
Ì234232sÎ234232
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
01/28/2020 .
.
.
.
The Committee on Commerce and Tourism (Bean) recommended the
following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 73 - 216
4 and insert:
5 contributions at the initial rate of 2.7 percent. For tax rates
6 effective on or after January 1, 2021, if the client company’s
7 employment record is chargeable with benefits for less than 8
8 calendar quarters while being a client of the employee leasing
9 company, the client company must pay contributions at the
10 initial rate of 1.0 percent. However, the tax collection service
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11 provider may not adjust the initial rate for any year in which
12 the balance in the Unemployment Compensation Trust Fund requires
13 the computation of a positive adjustment factor under s.
14 443.131(3)(e)2.a.(III); and
15 (D) The wage data and benefit charges for the prior 3 state
16 fiscal years that cannot be associated with a client company
17 must be reported and charged to the employee leasing company.
18 (III) Subsequent to choosing the client method, the
19 employee leasing company may not change its reporting method.
20 (IV) The employee leasing company shall file a Florida
21 Department of Revenue Employer’s Quarterly Report for each
22 client company by approved electronic means, and pay all
23 contributions by approved electronic means.
24 (V) For the purposes of calculating experience rates when
25 the client method is chosen, each client’s own benefit charges
26 and wage data experience while with the employee leasing company
27 determines each client’s tax rate where the client has been a
28 client of the employee leasing company for at least 8 calendar
29 quarters before the election. The client company shall continue
30 to report the nonleased employees under its tax rate.
31 (VI) The election is binding on each client of the employee
32 leasing company for as long as a written agreement is in effect
33 between the client and the employee leasing company pursuant to
34 s. 468.525(3)(a). If the relationship between the employee
35 leasing company and the client terminates, the client retains
36 the wage and benefit history experienced under the employee
37 leasing company.
38 (VII) Notwithstanding which election method the employee
39 leasing company chooses, the applicable client company is an
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40 employing unit for purposes of s. 443.071. The employee leasing
41 company or any of its officers or agents are liable for any
42 violation of s. 443.071 engaged in by such persons or entities.
43 The applicable client company or any of its officers or agents
44 are liable for any violation of s. 443.071 engaged in by such
45 persons or entities. The employee leasing company or its
46 applicable client company is not liable for any violation of s.
47 443.071 engaged in by the other party or by the other party’s
48 officers or agents.
49 (VIII) If an employee leasing company fails to select the
50 client method of reporting not later than July 1, 2012, the
51 entity is required to report under the employee leasing
52 company’s tax identification number and contribution rate.
53 (IX) After an employee leasing company is licensed pursuant
54 to part XI of chapter 468, each newly licensed entity has 30
55 days after the date the license is granted to notify the tax
56 collection service provider in writing of their selection of the
57 client method. A newly licensed employee leasing company that
58 fails to timely select reporting pursuant to the client method
59 of reporting must report under the employee leasing company’s
60 tax identification number and contribution rate.
61 (X) Irrespective of the election, each transfer of trade or
62 business, including workforce, or a portion thereof, between
63 employee leasing companies is subject to the provisions of s.
64 443.131(3)(g) if, at the time of the transfer, there is common
65 ownership, management, or control between the entities.
66 b. In addition to any other report required to be filed by
67 law, an employee leasing company shall submit a report to the
68 Labor Market Statistics Center within the Department of Economic
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69 Opportunity which includes each client establishment and each
70 establishment of the leasing company, or as otherwise directed
71 by the department. The report must include the following
72 information for each establishment:
73 (I) The trade or establishment name;
74 (II) The former reemployment assistance account number, if
75 available;
76 (III) The former federal employer’s identification number,
77 if available;
78 (IV) The industry code recognized and published by the
79 United States Office of Management and Budget, if available;
80 (V) A description of the client’s primary business activity
81 in order to verify or assign an industry code;
82 (VI) The address of the physical location;
83 (VII) The number of full-time and part-time employees who
84 worked during, or received pay that was subject to reemployment
85 assistance taxes for, the pay period including the 12th of the
86 month for each month of the quarter;
87 (VIII) The total wages subject to reemployment assistance
88 taxes paid during the calendar quarter;
89 (IX) An internal identification code to uniquely identify
90 each establishment of each client;
91 (X) The month and year that the client entered into the
92 contract for services; and
93 (XI) The month and year that the client terminated the
94 contract for services.
95 c. The report must be submitted electronically or in a
96 manner otherwise prescribed by the Department of Economic
97 Opportunity in the format specified by the Bureau of Labor
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98 Statistics of the United States Department of Labor for its
99 Multiple Worksite Report for Professional Employer
100 Organizations. The report must be provided quarterly to the
101 Labor Market Statistics Center within the department, or as
102 otherwise directed by the department, and must be filed by the
103 last day of the month immediately after the end of the calendar
104 quarter. The information required in sub-sub-subparagraphs b.(X)
105 and (XI) need be provided only in the quarter in which the
106 contract to which it relates was entered into or terminated. The
107 sum of the employment data and the sum of the wage data in this
108 report must match the employment and wages reported in the
109 reemployment assistance quarterly tax and wage report.
110 d. The department shall adopt rules as necessary to
111 administer this subparagraph, and may administer, collect,
112 enforce, and waive the penalty imposed by s. 443.141(1)(b) for
113 the report required by this subparagraph.
114 e. For the purposes of this subparagraph, the term
115 “establishment” means any location where business is conducted
116 or where services or industrial operations are performed.
117 3. An individual other than an individual who is an
118 employee under subparagraph 1. or subparagraph 2., who performs
119 services for remuneration for any person:
120 a. As an agent-driver or commission-driver engaged in
121 distributing meat products, vegetable products, fruit products,
122 bakery products, beverages other than milk, or laundry or
123 drycleaning services for his or her principal.
124 b. As a traveling or city salesperson engaged on a full-
125 time basis in the solicitation on behalf of, and the
126 transmission to, his or her principal of orders from
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127 wholesalers, retailers, contractors, or operators of hotels,
128 restaurants, or other similar establishments for merchandise for
129 resale or supplies for use in the business operations. This sub-
130 subparagraph does not apply to an agent-driver or a commission-
131 driver and does not apply to sideline sales activities performed
132 on behalf of a person other than the salesperson’s principal.
133 4. The services described in subparagraph 3. are employment
134 subject to this chapter only if:
135 a. The contract of service contemplates that substantially
136 all of the services are to be performed personally by the
137 individual;
138 b. The individual does not have a substantial investment in
139 facilities used in connection with the services, other than
140 facilities used for transportation; and
141 c. The services are not in the nature of a single
142 transaction that is not part of a continuing relationship with
143 the person for whom the services are performed.
144 Section 2. Paragraph (a) of subsection (2) of section
145 443.131, Florida Statutes, is amended to read:
146 443.131 Contributions.—
147 (2) CONTRIBUTION RATES.—Each employer must pay
148 contributions equal to the following percentages of wages paid
149 by him or her for employment:
150 (a) Initial rate.—Each employer whose employment record is
151 chargeable with benefits for less than 8 calendar quarters shall
152 pay contributions at the initial rate of 2.7 percent. For tax
153 rates effective on or after
154
155 ================= T I T L E A M E N D M E N T ================
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156 And the title is amended as follows:
157 Delete line 4
158 and insert:
159 revising the initial rate that certain client
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Florida Senate - 2020 SB 1356 Florida Senate - 2020 SB 1356
By Senator Bean
4-00632C-20 20201356__ 4-00632C-20 20201356__
1 A bill to be entitled 30 to the client, except as prohibited by regulations of the
2 An act relating to employer contributions for 31 Internal Revenue Service. Employees of an employee leasing
3 reemployment assistance; amending s. 443.1216, F.S.; 32 company must be reported under the employee leasing company’s
4 reducing the initial rate that certain client 33 tax identification number and contribution rate for work
5 companies of employee leasing companies must pay under 34 performed for the employee leasing company.
6 specified circumstances to tax collection service 35 a. However, except for the internal employees of an
7 providers; amending s. 443.131, F.S.; requiring the 36 employee leasing company, each employee leasing company may make
8 tax collection service provider to adjust the initial 37 a separate one-time election to report and pay contributions
9 employer contribution rate under certain 38 under the tax identification number and contribution rate for
10 circumstances; providing an effective date. 39 each client of the employee leasing company. Under the client
11 40 method, an employee leasing company choosing this option must
12 Be It Enacted by the Legislature of the State of Florida: 41 assign leased employees to the client company that is leasing
13 42 the employees. The client method is solely a method to report
14 Section 1. Paragraph (a) of subsection (1) of section 43 and pay unemployment contributions, and, whichever method is
15 443.1216, Florida Statutes, is amended to read: 44 chosen, such election may not impact any other aspect of state
16 443.1216 Employment.—Employment, as defined in s. 443.036, 45 law. An employee leasing company that elects the client method
17 is subject to this chapter under the following conditions: 46 must pay contributions at the rates assigned to each client
18 (1)(a) The employment subject to this chapter includes a 47 company.
19 service performed, including a service performed in interstate 48 (I) The election applies to all of the employee leasing
20 commerce, by: 49 company’s current and future clients.
21 1. An officer of a corporation. 50 (II) The employee leasing company must notify the
22 2. An individual who, under the usual common-law rules 51 Department of Revenue of its election by July 1, 2012, and such
23 applicable in determining the employer-employee relationship, is 52 election applies to reports and contributions for the first
24 an employee. However, whenever a client, as defined in s. 53 quarter of the following calendar year. The notification must
25 443.036(18), which would otherwise be designated as an employing 54 include:
26 unit has contracted with an employee leasing company to supply 55 (A) A list of each client company and the unemployment
27 it with workers, those workers are considered employees of the 56 account number or, if one has not yet been issued, the federal
28 employee leasing company. An employee leasing company may lease 57 employment identification number, as established by the employee
29 corporate officers of the client to the client and other workers 58 leasing company upon the election to file by client method;
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59 (B) A list of each client company’s current and previous 88 (V) For the purposes of calculating experience rates when
60 employees and their respective social security numbers for the 89 the client method is chosen, each client’s own benefit charges
61 prior 3 state fiscal years or, if the client company has not 90 and wage data experience while with the employee leasing company
62 been a client for the prior 3 state fiscal years, such portion 91 determines each client’s tax rate where the client has been a
63 of the prior 3 state fiscal years that the client company has 92 client of the employee leasing company for at least 8 calendar
64 been a client must be supplied; 93 quarters before the election. The client company shall continue
65 (C) The wage data and benefit charges associated with each 94 to report the nonleased employees under its tax rate.
66 client company for the prior 3 state fiscal years or, if the 95 (VI) The election is binding on each client of the employee
67 client company has not been a client for the prior 3 state 96 leasing company for as long as a written agreement is in effect
68 fiscal years, such portion of the prior 3 state fiscal years 97 between the client and the employee leasing company pursuant to
69 that the client company has been a client must be supplied. If 98 s. 468.525(3)(a). If the relationship between the employee
70 the client company’s employment record is chargeable with 99 leasing company and the client terminates, the client retains
71 benefits for less than 8 calendar quarters while being a client 100 the wage and benefit history experienced under the employee
72 of the employee leasing company, the client company must pay 101 leasing company.
73 contributions at the initial rate of 2.7 percent. Beginning 102 (VII) Notwithstanding which election method the employee
74 January 1, 2021, if the client company’s employment record is 103 leasing company chooses, the applicable client company is an
75 chargeable with benefits for less than 8 calendar quarters while 104 employing unit for purposes of s. 443.071. The employee leasing
76 being a client of the employee leasing company, the client 105 company or any of its officers or agents are liable for any
77 company must pay contributions at the initial rate of 1.0 106 violation of s. 443.071 engaged in by such persons or entities.
78 percent; and 107 The applicable client company or any of its officers or agents
79 (D) The wage data and benefit charges for the prior 3 state 108 are liable for any violation of s. 443.071 engaged in by such
80 fiscal years that cannot be associated with a client company 109 persons or entities. The employee leasing company or its
81 must be reported and charged to the employee leasing company. 110 applicable client company is not liable for any violation of s.
82 (III) Subsequent to choosing the client method, the 111 443.071 engaged in by the other party or by the other party’s
83 employee leasing company may not change its reporting method. 112 officers or agents.
84 (IV) The employee leasing company shall file a Florida 113 (VIII) If an employee leasing company fails to select the
85 Department of Revenue Employer’s Quarterly Report for each 114 client method of reporting not later than July 1, 2012, the
86 client company by approved electronic means, and pay all 115 entity is required to report under the employee leasing
87 contributions by approved electronic means. 116 company’s tax identification number and contribution rate.
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117 (IX) After an employee leasing company is licensed pursuant 146 (VI) The address of the physical location;
118 to part XI of chapter 468, each newly licensed entity has 30 147 (VII) The number of full-time and part-time employees who
119 days after the date the license is granted to notify the tax 148 worked during, or received pay that was subject to reemployment
120 collection service provider in writing of their selection of the 149 assistance taxes for, the pay period including the 12th of the
121 client method. A newly licensed employee leasing company that 150 month for each month of the quarter;
122 fails to timely select reporting pursuant to the client method 151 (VIII) The total wages subject to reemployment assistance
123 of reporting must report under the employee leasing company’s 152 taxes paid during the calendar quarter;
124 tax identification number and contribution rate. 153 (IX) An internal identification code to uniquely identify
125 (X) Irrespective of the election, each transfer of trade or 154 each establishment of each client;
126 business, including workforce, or a portion thereof, between 155 (X) The month and year that the client entered into the
127 employee leasing companies is subject to the provisions of s. 156 contract for services; and
128 443.131(3)(g) if, at the time of the transfer, there is common 157 (XI) The month and year that the client terminated the
129 ownership, management, or control between the entities. 158 contract for services.
130 b. In addition to any other report required to be filed by 159 c. The report must be submitted electronically or in a
131 law, an employee leasing company shall submit a report to the 160 manner otherwise prescribed by the Department of Economic
132 Labor Market Statistics Center within the Department of Economic 161 Opportunity in the format specified by the Bureau of Labor
133 Opportunity which includes each client establishment and each 162 Statistics of the United States Department of Labor for its
134 establishment of the leasing company, or as otherwise directed 163 Multiple Worksite Report for Professional Employer
135 by the department. The report must include the following 164 Organizations. The report must be provided quarterly to the
136 information for each establishment: 165 Labor Market Statistics Center within the department, or as
137 (I) The trade or establishment name; 166 otherwise directed by the department, and must be filed by the
138 (II) The former reemployment assistance account number, if 167 last day of the month immediately after the end of the calendar
139 available; 168 quarter. The information required in sub-sub-subparagraphs b.(X)
140 (III) The former federal employer’s identification number, 169 and (XI) need be provided only in the quarter in which the
141 if available; 170 contract to which it relates was entered into or terminated. The
142 (IV) The industry code recognized and published by the 171 sum of the employment data and the sum of the wage data in this
143 United States Office of Management and Budget, if available; 172 report must match the employment and wages reported in the
144 (V) A description of the client’s primary business activity 173 reemployment assistance quarterly tax and wage report.
145 in order to verify or assign an industry code; 174 d. The department shall adopt rules as necessary to
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175 administer this subparagraph, and may administer, collect, 204 facilities used for transportation; and
176 enforce, and waive the penalty imposed by s. 443.141(1)(b) for 205 c. The services are not in the nature of a single
177 the report required by this subparagraph. 206 transaction that is not part of a continuing relationship with
178 e. For the purposes of this subparagraph, the term 207 the person for whom the services are performed.
179 “establishment” means any location where business is conducted 208 Section 2. Paragraph (a) of subsection (2) of section
180 or where services or industrial operations are performed. 209 443.131, Florida Statutes, is amended to read:
181 3. An individual other than an individual who is an 210 443.131 Contributions.—
182 employee under subparagraph 1. or subparagraph 2., who performs 211 (2) CONTRIBUTION RATES.—Each employer must pay
183 services for remuneration for any person: 212 contributions equal to the following percentages of wages paid
184 a. As an agent-driver or commission-driver engaged in 213 by him or her for employment:
185 distributing meat products, vegetable products, fruit products, 214 (a) Initial rate.—Each employer whose employment record is
186 bakery products, beverages other than milk, or laundry or 215 chargeable with benefits for less than 8 calendar quarters shall
187 drycleaning services for his or her principal. 216 pay contributions at the initial rate of 2.7 percent. Beginning
188 b. As a traveling or city salesperson engaged on a full- 217 January 1, 2021, the tax collection service provider shall
189 time basis in the solicitation on behalf of, and the 218 adjust the initial rate for each employer whose employment
190 transmission to, his or her principal of orders from 219 record is chargeable with benefits for less than 8 calendar
191 wholesalers, retailers, contractors, or operators of hotels, 220 quarters to 1.0 percent. However, the tax collection service
192 restaurants, or other similar establishments for merchandise for 221 provider may not adjust the initial rate for any year in which
193 resale or supplies for use in the business operations. This sub- 222 the balance in the Unemployment Compensation Trust Fund requires
194 subparagraph does not apply to an agent-driver or a commission- 223 the computation of a positive adjustment factor under sub-sub-
195 driver and does not apply to sideline sales activities performed 224 subparagraph (3)(e)2.a.(III).
196 on behalf of a person other than the salesperson’s principal. 225 Section 3. This act shall take effect July 1, 2020.
197 4. The services described in subparagraph 3. are employment
198 subject to this chapter only if:
199 a. The contract of service contemplates that substantially
200 all of the services are to be performed personally by the
201 individual;
202 b. The individual does not have a substantial investment in
203 facilities used in connection with the services, other than
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CODING: Words stricken are deletions; words underlined are additions. CODING: Words stricken are deletions; words underlined are additions.
The Florida Senate
Committee Agenda Request
To: Senator Joseph Gruters, Chair
Committee on Commerce and Tourism
Subject: Committee Agenda Request
Date: January 13, 2020
I respectfully request that Senate Bill # 1356, relating to Employer Contributions for
Reemployment Assistance, be placed on the:
committee agenda at your earliest possible convenience.
next committee agenda.
Senator Aaron Bean
Florida Senate, District 4
File signed original with committee office S-020 (03/2004)
The Florida Senate
APPEARANCE RECORD
112.8/2.0 (Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting) 356
Meeting Date Bill Number (if applicable)
234232
Topic Employer Contributions for Reemployment Assistance Amendment Barcode (if applicable)
Name Nicholas Alvarez
Job Title Legislative Affairs Director
Address 7 E. Madison St. Caldwell Building phone 850-245-7370
Street
Tallahassee FL 32399 Email Nicholas.Alvarez@deo.myflorida.com
City State
Speaking: For [ Against 1 |Information Waive Speaking: In Support 1 I A ainst
(The Chair will read this information into the record.)
Representing Department of Economic Opportunity
Appearing at request of Chair: I Ives f 1 No Lobbyist registered with Legislature: 0Ves n No
While it is a Senate tradition to encourage ublic testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the ublic record for this meeting. S-001 (10/14/14)
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
1/28/20 1356
Meeting Date Bill Number (if applicable)
jopjc Employer Contributions for Reemployment Assistance Amendment Barcode (if applicable)
Name Nicholas Alvarez
Job Title Legislative Affairs Director
Address 7 E. Madison St. Caldwell Building Phone 850-245-7370
Street
Tallahassee FL 32399 Email Nicho|asA|varez@deomyfloridacom
City State Zip
Speaking: | | For | | Against | | Information Waive Speaking: [ 1 In Sup ort 1 I A ainst
(The Chair will read this information into the record.)
Representing Department of Economic Opportunity
Appearing at request of Chair: C Yes 0 No Lobbyist registered with Legislature: Yes No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the ublic record for this meeting. S-001 (10/14/14)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1492
INTRODUCER: Senator Wright
SUBJECT: Consumer Protection
DATE: January 27, 2020 REVISED: 1/31/2020
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Harmsen McKay CM Favorable
2. BI
3. RC
I. Summary:
SB 1492 modifies provisions in several areas that are regulated by the Department of Financial
Services (DFS), including:
Removing a fee for the replacement of PINs for credit freezes implemented under the
Keeping I.D. Safe Act;
Strengthening authority for the DFS to request documents from licensed entities;
Establishing a required licensure scheme for adjusting firms;
Classifying the aiding and abetting of unlicensed activity by certain licensees as a third-
degree felony;
Prohibiting the use of “Medicaid” or “Medicare” in new insurance agency names;
Requiring licensees regulated under ch. 626, F.S., to maintain the privacy of consumers’
personal financial or medical information;
Extending telemarketing solicitation protections to Florida’s insurance consumers by
prohibiting phone solicitation by an insurance licensee after 9 p.m., or before 8 a.m.;
Ending the sale of industrial life insurance products;
Increasing the possible suspension period for title insurance agent licensees from a 1-year
period to a 2-year suspension period, thereby conforming to the permissible suspension
period applicable to other insurance licensees;
Extending the cooling-off period during which a consumer who entered into a contract with a
property adjuster may cancel the contract without cause;
Requiring that a specific disclosure is signed by any consumer whose policy will be exported
into the surplus lines market;
Expanding the definition of an unfair or deceptive trade practice to include the acts of
initiating an insurance policy without a consumer’s consent and effectuating an insurance
policy by sending an invoice to a mortgagee or escrow agent without a consumer’s consent;
BILL: SB 1492 Page 2
Amending the disclosure required by insurers who will use a consumer’s credit score to
calculate a premium to include references to the DFS resources for financial literacy and
consumer assistance;
Creating a hurricane season notice, which requires insurance companies to deliver a copy of
the Homeowner Claims Bill of Rights and a summary of the consumer’s hurricane coverages
and deductibles to their consumers in advance of each hurricane season;
Requiring insurers to provide additional information to their consumers during the claims
handling process, e.g., the contact information of any adjuster assigned to the claim and the
adjuster’s report;
Instituting a requirement that information communicated to the insurance consumer during
the claims handling process also be sent to the consumer’s agent of record;
Updating the Homeowner Claims Bill of Rights to reflect additional duties imposed on
insurers during the claims handling process;
Prohibiting insurance policies sold in Florida after July 1, 2020, from including a forum
selection clause that requires the consumer to pursue litigation, arbitration, or mediation
outside of Florida;
Removing the statutory requirement that an insured pay a $100 deductible to receive
payment on their claim through the Florida Insurance Guaranty Association;
Consolidating the forms used by the DFS’ Division of Unclaimed Property; and
Conforming cross-references.
II. Present Situation:
The Department of Financial Services (DFS or Department) has broad duties, including licensure
and regulation of those who transact insurance; insurance consumer assistance and protection;
and holding and attempting to return unclaimed property to its rightful owner.1
The present situation for each relevant provision of the bill is discussed in the Effect of Proposed
Changes section of this bill analysis, below.
III. Effect of Proposed Changes:
Credit Reports
A credit report is a record of a consumer’s credit history and other information about the
consumer, including his or her name, address, social security number, employment information,
date of birth, and court judgments.2 Three major credit bureaus—Equifax, Experian, and
TransUnion—compile and sell consumer credit reports. Lenders, insurers, utility and cell phone
companies, employers, and others may obtain a consumer’s credit report for their use in
1
See, e.g., Department of Financial Services, What DFS Can Do For You,
https://www.myfloridacfo.com/division/CFO/DFS.htm (last visited Jan. 27, 2020).
2
15 U.S. Code §1681 defines a “credit report” as any written, oral, or other communication of any information by a
consumer reporting agency bearing on a consumer’s credit worthiness, … general reputation, [or] personal characteristics…
which is used…for the purpose of…establishing the consumer’s eligibility for credit or employment purposes…. The Florida
KIDS Act adopts this definition of a “credit report” in s. 501.0051(1)(a), F.S.
BILL: SB 1492 Page 3
determining, e.g., whether to extend credit, set insurance rates, or employ the consumer.3 A
consumer may also review his or her credit report at no charge once every 12 months from each
of the credit bureaus.
Security Freezes and the Keeping I.D. Safe (KIDS) Act
The Keeping I.D. Safe (KIDS) Act4 allows a third party, such as a parent or guardian, to place a
security freeze on a minor child’s credit report, or credit score to prevent the information from
being released without express authorization to a third party, such as an insurer. After its receipt
of a security freeze request, a credit reporting agency must provide a unique personal
identification number (PIN) to the minor child’s representative; this PIN is required to remove
the security freeze. While credit reporting agencies are prohibited from charging any fee to place
or remove a security freeze, they may charge up to $10 to reissue a PIN.5
Section 1 amends s. 501.0051, F.S., to prohibit a credit reporting agency from charging any fee
to reissue a PIN or provide a new unique PIN to a consumer.
Insurer’s Use of Credit Score
Section 626.9741, F.S., regulates and limits insurer’s use of credit reports and scores for
underwriting and rating personal lines motor vehicle insurance and personal lines residential
insurance policies for Florida consumers. Specifically, an insurer must inform a consumer that it
will access his or her credit report when the consumer submits an application for coverage. If the
insurer denies the consumer’s application based on the consumer’s credit report, it must also give
the consumer a copy of the credit report it relied on with an explanation of the reasons it denied
coverage.
The DFS currently offers financial literacy courses to help consumers make informed financial
and insurance-related decisions.6
Section 13 amends s. 626.9741, F.S., to require an insurer to include the following language in
its notice that a consumer’s credit report or score is being requested:
The Department of Financial Services offers free financial literacy
programs to assist you in understanding how credit scores are calculated,
what factors are considered, and how credit works. The Department’s toll-
free Insurance Consumer Helpline is available to assist you with
insurance-related questions and inquiries. To learn more about the free
financial literacy programs or for help with insurance, call 1-877-693-
5236 or visit www.MyFloridaCFO.com.
3
Board of Governors of the Federal Reserve System, Credit Reports and Credit Scores: Consumer’s Guide, available at
https://www.federalreserve.gov/creditreports/pdf/credit_reports_scores_2.pdf (last visited Jan. 27, 2020).
4
Section 501.0051, F.S.
5
Section 501.0051(9), F.S.
6
Florida Department of Financial Services, Financial Literacy-Empowering You to Make Informed Financial Decisions,
https://www.myfloridacfo.com/Division/Consumers/FinancialLiteracy.htm (last visited Jan. 27, 2020).
BILL: SB 1492 Page 4
Division of Consumer Services
The Division of Consumer Services (Division) provides education, information, and assistance to
consumers for all products or services regulated by the DFS or the Financial Services
Commission.7 The Division of Consumer Services’ duties specifically include:
Receiving consumer questions and complaints;
Educating the public about insurance-related topics;
Providing mediation to resolve disputes between a consumer and insurance company; and
Serving as a conduit for referrals for further legal action by the DFS.8
Section 624.307(10)(b), F.S., permits the Division to impose an administrative penalty on a
person who holds a license or certificate of authority from the Department if he or she fails to
respond to the Division’s request for information within 20 days. This has been limited by the
Fifth Amendment privilege against self-incrimination. A licensed individual must produce those
records that are required to be kept by law, but is not required to produce those not within the
purview of statutes.9 Conversely, a corporation has no privilege against self-incrimination, nor
does a custodian of corporate records, even if the contents tend to incriminate him or her.10
Section 2 amends s. 624.307(10)(b), F.S., to remove the penalty on individuals for the failure to
respond to a Department inquiry, and to create a duty for an entity that is licensed or issued a
certificate of authority by the DFS to respond to its written requests for information. This section
also updates the duty by requiring the entity to provide any requested documents to the DFS.
Communications between a Consumer and Insurer
Section 627.71031, F.S., provides base requirements for communications between an insurer and
consumer who has notified the insurer of a possible claim. Generally, the residential property
insurance company must respond to the consumer within 14 days to acknowledge the claim and
provide necessary claim forms, instructions, and telephone contact information. The insurer is
then required to commence an investigation within 10 days after it received proof of loss
statements from the consumer. Lastly, the insurer is required to pay or deny a claim within 90
days after notice of the claim was made; if the insurer fails to make such a payment until after 90
days have passed, the payment bears interest due to the consumer. These duties generally
constitute the consumer rights outlined in the Homeowner Claims Bill of Rights.11
Section 18 amends s. 627.70131, F.S., to expand residential property insurer’s and surplus lines
insurer’s duties to a consumer after he or she notifies the insurer of a possible claim. This section
clarifies that a consumer’s initial communication with an insurance company representative, not
7
Department of Financial Services, Department of Financial Services Long Range Program Plan: Fiscal Years 2020-21
through 2024-25, 15 (Sept. 30, 2019), available at
http://floridafiscalportal.state.fl.us/Document.aspx?ID=19566&DocType=PDF (last visited Jan. 27, 2020). See also,
Department of Financial Services, Consumer Guides,
https://www.myfloridacfo.com/Division/Consumers/understandingCoverage/Guides/Default.htm (last visited Jan. 27, 2020).
8
Section 624.307(10)(a), F.S.
9
Saviak v. Gunter, 379 So. 2d 450 (Fla. Dist. Ct. App. 3d Dist. 1980).
10
Eller Media Co. v. Serrano, 761 So. 2d 464 (Fla Dist. Ct. App. 3d Dist. 2000); State v. Wellington Precious Metals, Inc.,
487 So. 2d 326 (Fla. Dist. Ct. App. 3d Dist. 1986).
11
See further discussion of the Homeowner Claims Bill of Rights, infra.
BILL: SB 1492 Page 5
just an agent, regarding his or her claim initiates the duties outlined in this section of law. This
section also expands the application of these duties to surplus lines insurers and surplus lines
insurance authorized under ss. 626.913-626.937, F.S.
The additional duties implemented by the bill include the insurer’s communication (via
electronic communication or mailing) to a claimant of:
An adjuster’s name, license number, and contact information, if the insurer’s claim
investigation involves a physical inspection of the claimant’s property;
The name, license number, and contact information of any subsequent adjusters assigned to
the consumer’s claim, which must be provided within 7 days after the change;
An unedited copy of any adjuster’s report that the insurer received, which must be provided
within 7 days after the insurer received the report; and
Specific notices when an insurer provides a preliminary or partial estimate or payment on a
claim that the estimate may be revised, or the payment may be supplemented, based on
ongoing evaluations.
Additionally, an insurer must establish processes to provide a consumer’s agent of record with
access to the above information communicated to the consumer (specifically regarding the
adjuster’s report and adjuster’s contact information).
Lastly, this section clarifies several timeframes applied to the insurer’s communications by
updating terms to either “calendar days” or “business days.”
The Homeowner Claims Bill of Rights
The Homeowner Claims Bill of Rights (Bill of Rights) outlines consumers’ rights and
responsibilities as a homeowner’s insurance policyholder during the insurance claims process. 12
An insurance company must provide a consumer with a copy of the Bill of Rights within 14 days
of receiving any communication about a claim.13 Florida law provides form language that the
insurer must include in the Bill of Rights, which gives notice of the consumer’s right to:14
Receive written confirmation of a claim’s coverage, denial, or continued investigation within
30 days of specific communication;
Obtain full settlement payment, or partial payment on the undisputed portion of a claim,
within 90 days;
Enter mediation of a disputed claim or neutral evaluation of a claim relating to sinkhole
damage; and
Contact the Department of Financial Services for assistance.
The Bill of Rights also includes consumer advice for best practices after a loss has been incurred.
12
Florida Department of Financial Services, Know Your Rights- Homeowner Claims Bill of Rights (Dec. 2018), available at
https://www.myfloridacfo.com/Division/Consumers/understandingCoverage/Guides/documents/HOABillRights.pdf (last
visited Jan. 27, 2020).
13
Section 627.70131, F.S.
14
Section 627.7142, F.S. These consumer rights are partially based on the insurer’s duties as outlined in 627.70131, F.S.
BILL: SB 1492 Page 6
Section 20 updates the Bill of Rights to better reflect the insurer’s duties outlined in s.
627.70131, F.S. The Bill of Rights must now include notice that the consumer has the right to:
Be notified of the name and contact information of any subsequent company adjuster
assigned to his or her claim;15 and
Receive interest payments, which begin accruing when a consumer files a claim, at the time
of payment of the full settlement amount or undisputed claim portion. A consumer is also due
interest payments if the insurer fails to deny the claim within 90 calendar days after a claim is
made.16
This section also clarifies that references to days are calendar days.
Section 15 amends s. 627.421, F.S., to require insurers to deliver a copy of the Bill of Rights to
all of their homeowners’ insurance policyholders by either mail or e-mail between March 3 and
April 2 of each year. This notice must also include a statement of the policyholder’s hurricane
coverage, including the applicable hurricane deductible, the coverages, and any exclusions.
Insurance Adjusters
A public adjuster is hired and paid by the policyholder to act on his or her behalf in a claim the
files against an insurance company. Public adjusters can represent a policyholder in any type of
insurance claim, not just property insurance claims.17
Adjusting Firms
Current law authorizes, but does not require, licensure of adjusting firms.18 According to a
representative of the DFS, there are currently no licensed adjusting firms. An adjusting firm
license must be renewed every three years and requires a $60 application fee.19 An adjusting firm
license application must include:20
The name and address of each of the firm’s majority owners, partners, officers, and directors;
The firm’s name and principal business address; and
Any branch office locations and the names under which they will operate.
Each adjusting firm location must have a designated primary adjuster who acts as a supervising
manager and is accountable for misconduct that occurs at the firm location.21
Chapter 626 provides grounds for mandatory and discretionary denial, suspension, or revocation
of an adjusting firm license.22
Section 3 amends s. 626.112, F.S., to require all adjusting firms to obtain a license from the DFS
to transact adjusting in the state. However, an individual who owns and operates an adjusting
15
This duty is created by section 18 of this bill, which amends s. 627.70131, F.S. Section 18 of this bill also requires the
initial adjuster to give the consumer his or her name, license number, and contact information.
16
See s. 627.70131(5)(a), F.S.
17
Section 626.854(1), F.S.
18
Section 626.8696, F.S.
19
Section 624.501(20), F.S.
20
Section 626.8696, F.S.
21
Section 626.8695, F.S.
22
Section 626.8697, F.S.
BILL: SB 1492 Page 7
firm, has a Florida adjuster license, and does not employ, appoint, or otherwise use the services
of any other licensee, is not required to obtain an adjusting firm license. The adjusting firm
licensure requirements instituted by this section are consistent with the requirements applicable
to insurance agencies.
This section further specifies that a branch location is not required to be licensed provided that it:
Operates under the same name and federal tax identification number of the licensed firm;
Has a licensed primary adjuster who has been designated with the DFS; and
Submits its address and telephone number to the DFS within 30 days after beginning to
transact insurance.
This section also imposes a $10,000 administrative penalty on adjusting firms that fail to be
licensed as required by this section.
Public Adjuster Contracts
Current law and administrative rules provide numerous restrictions and parameters on activities
of public adjusters, especially relating to solicitation of contracts and inducement to contract.23, 24
As an additional consumer protection, Florida law grants a policyholder a short timeframe during
which he or she may cancel a contract with an adjuster without cause, penalty, or obligation.
This cooling-off period permits the policy holder to cancel the contract within 3 business days of
execution of the contract with an adjuster, or when the insured or claimant notifies the insurer of
the claim, whichever is later. However, the cooling-off period is extended to 5 business days
from the date the contract was executed, if it was entered into during a state of emergency or
during the 1-year period after the date of loss.
The adjuster must disclose in all of his or her contracts the consumer’s right to cancel the
contract, and the methods by which the consumer may send a cancellation.
Section 10 amends s. 626.854, F.S., to increase the duration of the cooling-off period during
which a consumer may cancel his or her contract with an adjuster. Generally, the bill increases
the cooling-off period from 3 business days to 7 calendar days. However, for contracts signed
during a state of emergency or during the 1-year period after the date of loss, the bill increases
the cooling-off period to 30 calendar days.
Misleading Insurance Agency Names
The DFS may withhold permission to operate under an agency name if the name is too similar to
another already in use by a different agency; the name may mislead the public; or the name states
or implies that the agency is an entity other than an insurance agency, such as an insurer, state or
federal agency, or charitable organization.25
23
Section 626.854, F.S. Laws enacted in 2008 (ch. 2008-220, Laws of Fla.), in 2009 (ch. 2009-87, Laws of Fla.), 2011 (ch.
2011-39, Laws of Fla.), and 2017 (ch. 2017-147, Laws of Fla.), provided significant changes relating to public adjusters.
24
Rule 69B-220.201(4) and (5), F.A.C.
25
Section 626.602(1)-(3), F.S.
BILL: SB 1492 Page 8
The Social Security Act prohibits any person from using the terms “Medicare” or “Medicaid” in
an advertisement or other communication in a manner which the person knows, or should know,
would convey the false impression that the communication is approved by the Centers for
Medicare & Medicaid Services.26
There are currently 85 insurance agencies licensed in Florida whose agency names contain the
words “Medicare,” or “Medicaid.”27
Section 4 amends s. 626.602, F.S., to permit the DFS to disapprove an insurance agency’s
proposed use of a name that includes the words “Medicare” or “Medicaid.” Insurance agencies
that currently operate under such a name may continue to use the names, but if the license
expires or is suspended or revoked, the agency may not be relicensed under that name.28
Administrative Penalties and Grounds to Refuse a License
The Health Insurance Portability and Accountability Act of 1996 (HIPPA) is a federal law that
protects individual’s health information from certain disclosures when it is held by health care
providers and health insurance companies.29 Additionally, s. 456.057, F.S., provides that patient
records, when held by a healthcare professional, must not be disclosed without the consent of the
patient or his or her legal representative. Neither HIPPA nor the state provision apply to
insurance licensees.
The Florida Telemarketer Act, ss. 501.601-501.626, F.S., prohibits commercial telephone
solicitations before 8 a.m. or after 9 p.m. However, insurers and their subsidiaries and affiliates
are exempt from this law.30 Similarly, the Federal Trade Commission’s Telemarketing Sales
Rule prohibits telemarketing calls before 8 a.m., or after 9 p.m.31
Currently, Florida law prohibits public adjusters from soliciting an insured before 8 a.m. and
after 8 p.m. on Monday through Saturday, and completely prohibits any solicitations on
Sunday.32
Section 5 amends s. 626.621, F.S., to add two bases for which the DFS may suspend or revoke
the license of an insurance agent, adjuster, customer representative, service representative, or
managing general agent, or refuse to issue a license to an applicant:
Making a consumer’s or customer’s personal financial or medical information available or
accessible to the public; and
26
42 U.S. Code §1320b-10(a)(1). Upheld by United Seniors Ass’n Inc. v. SSA, 423 F. 3d 397, 399 (4th Cir. 2005).
27
Department of Financial Services, Licensee Search, https://licenseesearch.fldfs.com/ (enter “Medicare” or “Medicaid” in
“Agency/Firm Name field, then click “search”) (last visited Jan. 27, 2020).
28
Insurance agency licenses are indefinite. Section 626.382, F.S.
29
U.S. Department of Health and Human Services, Your Health Information Privacy Rights, available at
https://www.hhs.gov/sites/default/files/ocr/privacy/hipaa/understanding/consumers/consumer_rights.pdf (last visited Jan. 27,
2020).
30
Section 501.604(7), F.S.
31
Federal Trade Commission, The Telemarketing Sales Rule, https://www.consumer.ftc.gov/articles/0198-telemarketing-
sales-rule (last visited Jan. 27, 2020).
32
Section 626.854(5), F.S.
BILL: SB 1492 Page 9
Initiating in-person or telephone solicitation with a prospective customer after 9 p.m. or
before 8 a.m., unless the customer requests otherwise.
License Suspension for Title Agents and Title Agencies
Section 9 amends s. 626.8443, F.S., to increase a title agent or title agency’s permitted
suspension period from 1 year to 2 years. This conforms the suspension period to those
applicable to insurance agents,33 and bail bond agents.34
A suspended licensee may not engage in the transaction of business that requires a license. After
the duration of the suspension, an individual or entity with a suspended license may request to
have the license reinstated by the Department, rather than undergo the licensing process in the
same manner as a first-time applicant, as is required after a license revocation.35
Unfair Insurance Trade Practices
The Unfair Insurance Trade Practices Act36 prohibits unfair methods of competition and unfair or
deceptive acts in the business of insurance,37 including:
Misrepresenting the benefits, advantages, or terms of any insurance policy;
Inducing the lapse or exchange of any insurance policy, generally so the agent can earn a
commission on a replacement policy; and
Providing more insurance coverage than a consumer requests or consents to, while also
failing to inform the consumer that the additional coverage was optional (“sliding”).38
A person who commits acts prohibited by the Unfair Insurance Trade Practices Act is generally
subject to a fine of up to $20,000 for nonwillful violations, and up to $200,000 total for willful
violations.39 However, specific violations are subject to greater administrative penalties and are
also punishable as criminal misdemeanors.40
Additionally, a person who willfully submits fraudulent signatures on an application or policy-
related document commits a third-degree felony, which is also punishable by the assessment of
administrative fines of no more than $75,000 per violation.41
Section 12 amends s. 626.9541, F.S., to expand the definition of sliding, a practice that violates
the Unfair Insurance Trade Practices, to include:
Initiating, effectuating, binding, or otherwise issuing an insurance policy without the prior
informed consent of the person who owns the property that will be insured; and
33
Section 626.641, F.S. See also, Rule 69B-231, Laws of Fla.
34
Section 648.45, F.S. See also, Rule 69B-241, Laws of Fla.
35
Section 626.641(2), F.S.
36
Chapter 626, F.S., part IX, ss. 626.951-626.99, F.S.
37
Section 626.9541, F.S.
38
Section 626.9541(1)(z), F.S. See also, Beckett v. Department of Financial Services, 982 So. 2d 94 (Fla. 1st DCA).
39
Each count of a nonwillful violation is limited to a fine of no more than $5,000, and each count of a willful violation is
limited to a fine of no more than $20,000. Section 626.9521(2), F.S.
40
See, e.g., Section 626.9521(3)(a), F.S., which makes the offenses of twisting and churning, which must involve fraudulent
conduct, punishable as a first degree misdemeanor.
41
Section 626.9521(3)(b), F.S.
BILL: SB 1492 Page 10
Mailing, transmitting, or otherwise submitting an invoice for premium payment to a
mortgagee or escrow agent in order to institute an insurance policy without the prior
informed consent of the owner of the property that will be insured.
These new violations will be punishable as administrative violations under the general provisions
of the Unfair Insurance Trade Practices Act. However, the underlying acts that give rise to those
administrative violations may also give rise to charges under s. 626.9541(1)(ee), F.S., which
prohibits the willful submission of fraudulent signatures on an application or policy-related
document, and is punishable as a third-degree felony pursuant to s. 626.9521, F.S.
Criminal Penalties for Aiding and Abetting Unlicensed Insurance Activity
Section 3 adds a criminal penalty, applicable to any person who helps an unlicensed person
transact insurance or engage in insurance activities in Florida. These violations are punishable as
third-degree felonies.42
Section 22 amends s. 648.30, F.S., to extend the third-degree felony penalty for unlicensed bail
bond activity to those who are licensed under ch. 648, F.S., and who knowingly aid and abet an
unlicensed person commit unlicensed bail bond activity,43 in violation of s. 648.30, F.S.
Industrial Life Insurance
Industrial life insurance is a form of life insurance in which the premiums are payable on a
monthly or weekly basis. These policies usually have a face amount of less than $5,000.44 Only
38 of the 398 active life insurers maintain existing industrial life insurance policies, and no new
industrial life insurance policies have been written in the last year.45
Sections 6-8 and 17 end the sale of industrial life insurance in Florida by prohibiting life
insurers from writing a new policy of industrial life insurance beginning July 1, 2020, and
otherwise removing language that allows insurance companies to transact industrial life
insurance policies. However, these sections do permit the continued collection of premiums on,
and servicing of such policies that were written before July 1, 2020.
Surplus Lines Export Eligibility
Surplus lines insurance refers to a category of insurance for which the admitted market is unable
or unwilling to provide coverage.46 There are three basic categories of surplus lines risks:
42
A third degree felony is punishable by up to five years imprisonment and a $5,000 fine. Sections 775.082 and 775.083, F.S.
43
Unlicensed bail bond activity violative of s. 648.30, F.S., generally consists of representing oneself as a Florida bail bond
agent or attempting to detain or arrest an individual on a bond, without proper licensure.
44
Section 627.502, F.S. See also, Department of Financial Services, Life Insurance Overview: Types of Policies,
https://www.myfloridacfo.com/Division/Consumers/UnderstandingCoverage/LifeInsuranceOverview.htm (last visited Jan.
27, 2020).
45
Florida Department of Financial Services, SB 1492 Agency Analysis, 3 (Jan. 15, 2020), (on file with the Senate Committee
on Commerce and Tourism).
46
The admitted market is comprised of insurance companies licensed to transact insurance in Florida. The administration of
surplus lines insurance business is managed by the Florida Surplus Lines Service Office. Section 626.921, F.S. See also,
BILL: SB 1492 Page 11
Specialty risks that have unusual underwriting characteristics or underwriting characteristics
that admitted insurers view as undesirable;
Niche risks for which admitted carriers do not have a filed policy form or rate; and
Capacity risks that are risks where an insured needs higher coverage limits than those that are
available in the admitted market.
Surplus lines insurers are not “authorized” insurers as defined in the Florida Insurance Code,47
which means they do not obtain a certificate of authority from the Office of Insurance Regulation
(OIR) to transact insurance in Florida.48 Rather, surplus lines insurers are “unauthorized”
insurers,49 but may transact surplus lines insurance if they are made eligible by the OIR.
An insurance agent50 may “export,” or place a policy with an unauthorized insurer under the
Surplus Lines Law, with the consent of the insurance applicant. Before an insurance agent can
place insurance in the surplus lines market, the insurance agent must make a diligent effort to
procure the desired coverage from admitted insurers.51 A “diligent effort” requires a search for
coverage that is ultimately denied by at least three authorized insurers in the admitted market.
Additionally, the insurance agent must document the following before exporting the policy to the
surplus lines market:52
The premium rate for policies written by a surplus lines insurer cannot be less than the
premium rate used by a majority of authorized insurers for the same coverage on similar
risks;
The policy exported cannot provide coverage or rates that are more favorable than those that
are used by the majority of authorized insurers actually writing similar coverages on similar
risks;
The deductibles must be the same as those used by one or more authorized insurers, unless
the coverage is for fire or windstorm; and
For personal residential property risks, 53 the policyholder must be advised in writing that
coverage may be available and less expensive from Citizens Property Insurance Corporation
(Citizens).
Certain types of insurance, deemed “commercial risks,” including medical malpractice, travel,
general liability, errors and omissions, and excess or umbrella insurance coverage, are exempt
from the above diligent effort requirement. An insured for these commercial risks must sign a
disclosure that provides, in substantially the following form:
Florida Surplus Lines Service Office, What is Surplus Lines Insurance?, https://www.fslso.com/AboutGroup/about/surplus-
lines-insurance (last visited Jan. 27, 2020).
47
Section 626.914(2), F.S.
48
Section 624.09(1), F.S.
49
Section 624.09(2), F.S.
50
Typically, the applicant’s usual insurance agent works with the surplus lines agent to arrange the placement, rather than the
applicant working directly with the surplus lines agent. A surplus lines agent requires separate licensure than a traditional
insurance agent, and is permitted to secure insurance coverages with unauthorized insurers whereas traditional insurance
agents are not. See s. 626.914(1), F.S.
51
Section 626.916(1)(a), F.S.
52
Section 626.916(1), F.S.
53
Personal residential policies include homeowners, mobile homeowners, dwelling fire, tenants, condominium unit owners,
and similar policies.
BILL: SB 1492 Page 12
You are agreeing to place coverage in the surplus lines market. Superior
coverage may be available in the admitted market and at a lesser cost.
Persons insured by surplus lines carriers are not protected under the
Florida Insurance Guaranty Act with respect to any right of recovery for
the obligation of an insolvent unlicensed insurer.54
Section 11 amends s. 626.916, F.S., to extend the disclosure requirement found in s.
626.916(3)(b)3., F.S., to all insurance policies that are exported into the surplus lines market,
rather than just commercial risks.
Additionally, the bill clarifies that the insureds who seek to export the commercial risks listed in
s. 626.916(3)(b), F.S., must have signed the disclosure prior to the policy’s export.
Forum Selection Clauses Prohibition
A forum selection clause is a contractual provision in which the parties agree upon the venue for
possible future litigation between them.55 Generally, ch. 47, F.S., provides that civil actions must
be brought in the Florida county where the defendant resides, where the cause accrued, or where
the property in question is located.56 If the defendant is an out-of-state (foreign) corporation,
venue resides where the corporation has a representative, the action accrued, or where the
property is located.57 However, “a mandatory forum selection clause must be enforced unless it
is shown to be unreasonable or unjust.”58 In 2014, the Legislature codified case law on the
matter, holding that a court could refuse to enforce a forum selection clause if it contravenes
public policy, or is unjust and unreasonable.59
Several states, including Florida, have attempted to limit forum selection clauses in specific
instances. Florida voids as contrary to public policy any contracts that require litigation against
Florida contractors and related professions to be filed in non-Florida jurisdictions.60
Section 19 creates s. 627.7031, F.S., which prohibits property insurers from including any clause
in their property insurance policies sold to Florida consumers after July 1, 2020, that requires an
insured to pursue litigation, arbitration, or mediation outside of Florida. This prohibition also
applies to surplus lines insurers and any policies exported to a surplus lines insurer pursuant to
ss. 626.913-937, F.S.
Florida Insurance Guaranty Association
The Florida Insurance Guaranty Association (FIGA) is a not-for-profit corporation created by
statute that steps into the shoes of insolvent insurers to timely pay certain property and casualty
54
Section 626.916(3)(b), F.S.
55
Black’s Law Dictionary (11th ed. 2019).
56
Section 47.011, F.S.
57
Section 47.051, F.S.
58
Illinois Union Ins. Co. v. Co-Free, Inc., 128 So.3d 820, 821 (Fla. 1st DCA 2014) (citing Land O’Sun Mgmt. Corp. v.
Commerce and Indus. Ins. Co., 961 So. 2d 1078, 1080 (Fla 1st DCA 2007). Internal citations omitted.
59
Section 61.0401, F.S. See also, Manrique v. Fabbri, 493 So. 2d 437 (Fla. 1986) and Atl. Marine Const. Co. v. U.S. Dist.
Court for W. Dist. Of Texas, 571 U.S. 49, 134 S. Ct. 568 (2013).
60
Section 47.025, F.S.
BILL: SB 1492 Page 13
claims61 that would otherwise be left unpaid.62 FIGA does not offer a replacement policy, and
coverage offered by FIGA is generally limited to a $300,000 payment. A consumer may receive
additional FIGA coverage of up to $200,000 for damages to their home’s structure or the
contents thereof.63 Condominium and homeowner’s association claims have a coverage cap of
$100,000 multiplied by the number of units in the association.64 All claims filed with FIGA are
subject to a $100 deductible in addition to any deductible identified in the consumer’s policy. 65
Section 21 amends s. 631.57, F.S., to remove the consumer’s obligation to pay a $100 deductible
to FIGA in order to receive payment on their claim through FIGA. The consumer will still be
obligated to pay their original insurer’s deductible, however.
Division of Unclaimed Property
The DFS administers the Florida Disposition of Unclaimed Property Act. Unclaimed property is
a financial asset that is unclaimed or abandoned by its owner.66 Unclaimed property may include
savings and checking accounts, securities, insurance policy payments, refunds, security and
utility deposits, and contents of safe deposit boxes.67 The DFS Division of Unclaimed Property is
responsible for receiving property, attempting to locate its rightful owners, returning the property
or proceeds to them, and managing the Unclaimed Property Trust Fund.68 There is no statute of
limitations and individuals may claim their property at any time and at no cost.69
Florida law allows Florida-licensed private investigators, certified public accountants, and
attorneys to serve as claimant’s representatives who solicit unclaimed property owners or their
heirs to help them recover their property for a fee.70 There are currently over 350 claimant’s
representatives registered with the Department.71 The claimant’s representatives may not charge
a fee in excess of 20 percent of the account’s value, up to $1,000 maximum per account, unless
the claimant’s representative discloses that the property is held by the Division of Unclaimed
61
A “covered claim” is an unpaid claim, including one of unearned premiums, which arises out of, and is within the
coverage, and not in excess of, the applicable limits of an insurance policy.” Section 631.54, F.S.
62
See generally, Part II, ch. 631, F.S., “Florida Insurance Guaranty Association Act.” See also, Florida Insurance Guaranty
Association, Home, https://figafacts.com/ (last visited Jan. 27, 2020).
63
Section 631.57(2), F.S.
64
Section 631.57(3), F.S.
65
Section 631.57(2), F.S., see also, Florida Insurance Guaranty Association, Frequently Asked Questions: Are There Limits
on the Amount that FIGA Will Pay?, https://figafacts.com/frequently-asked-questions/ (last visited Jan. 27, 2020).
66
Florida Department of Financial Services, Florida Treasure Hunt: Why Should I Search for Unclaimed Property?,
https://www.fltreasurehunt.gov/UP-Web/sitePages/About.jsp (last visited Jan. 27, 2020).
67
Sections 717.104-717.116, F.S. See also, Department of Financial Services, Florida Unclaimed Property,
https://www.myfloridacfo.com/Division/UnclaimedProperty/ (last visited Jan. 27, 2020).
68
Department of Financial Services, Department of Financial Services Long Range Program Plan: Fiscal Years 2020-21
through 2024-25, 14 (Sept. 30, 2019), available at
http://floridafiscalportal.state.fl.us/Document.aspx?ID=19566&DocType=PDF (last visited Jan. 27, 2020).
69
Section 717.124, F.S., provides the methods by which a person may claim his or her interest from the Division of
Unclaimed Property. See also, Florida Department of Financial Services, Florida Treasure Hunt: Search for and Claim
Unclaimed Property, https://www.fltreasurehunt.gov/UP-Web/sitePages/FAQs.jsp (last visited Jan. 27, 2020).
70
Florida Department of Financial Services, Florida Treasure Hunt: Have You Been Contacted About Unclaimed Property?,
https://fltreasurehunt.gov/Contacted-by-Unclaimed-Property.jsp (last visited Jan. 27, 2020).
71
Florida Department of Financial Services, SB 1492 Agency Analysis at 4 (Jan. 21, 2020) (on file with the Committee on
Commerce and Tourism).
BILL: SB 1492 Page 14
Property, and gives the Division’s contact information, along with other pertinent information
about the property.72
Alternatively, a Florida-licensed private investigator, certified public accountant, or attorney may
offer to purchase the unclaimed property and pay the seller an agreed upon amount upfront.73 In
this case, the purchaser must pay the agreed upon percentage or amount within 30 days of the
contract’s execution by the seller, and must provide proof of that payment to the DFS with the
claim.74 The disclosure and contract requirements are substantially similar to the claimant’s
representative process, except that the seller’s identity must be verified by submission of a copy
of a valid driver’s license, photo I.D., or notarized sworn statement which affirms the seller’s
identity, full name, and address. Submission of a social security number or taxpayer
identification number are only required if that information is available.
Before a claimant’s representative or unclaimed property purchaser may execute a power of
attorney or purchase agreement, he or she must disclose the following in a separate document to
the property owner, and obtain the owner’s signed acknowledgement thereof:
That the property is held by the Division of Unclaimed Property (and the mailing and internet
address of the Division);
Who remitted the property to the Division, and when that last point of contact occurred; and
The category the property falls under (e.g., cash account, life insurance or annuity contract
asset, utility deposit, wages, or contents of safe-deposit boxes).
The power of attorney or purchase agreement must include the:
Value of the unclaimed property (or approximate value);
Unclaimed property account number;
Percentage value of the unclaimed property to be paid to the claimant, if applicable;
Percentage value of the compensation to be made to the claimant’s representative;
Number of shares of stock, if applicable;
Claimant’s taxpayer identification number or social security number, address, and telephone
number;
Name and address to whom payment shall be made, if different than the claimant’s name and
address; and
Claimant’s representative’s contact information, including his or her:
o Professional license number,
o Firm or employer’s name, address, and telephone number; and
o Name, address, and telephone number.
Additionally, the power of attorney or purchase agreement must be a separate document from the
disclosure.
Section 27 substantially amends s. 717.315, F.S., to replace the power of attorney and
acquisition of unclaimed property forms used by claimant’s representatives with the “Florida
Uniform Unclaimed Property Recovery Agreement” (uniform recovery agreement) and the
72
Section 717.135(2), F.S.
73
Section 717.1351, F.S.
74
Section 717.1351(4), F.S.
BILL: SB 1492 Page 15
“Florida Uniform Property Purchase Agreement” (uniform purchase agreement), respectively
(uniform agreements, jointly). The bill prohibits a claimant’s representative from engaging with
a claimant or seller to file a claim with the DFS by any means other than the uniform agreement
forms and declares any agreement not authorized by s. 717.135, F.S., null and void.
The uniform agreements require substantially the same information as the power of attorney and
disclosure or purchase agreement and disclosure, but combines the forms, and otherwise add the
following information requirements:
A statement of the total dollar amount that will be paid to the claimant’s representative, based
on the fee or deduction percentage quoted;
The total dollar amount the claimant will receive, after the above fees or deductions have
been subtracted; and
The claimant’s representative’s e-mail address.
The bill explicitly states that the uniform agreements may not contain language that either makes
the contract irrevocable, or creates an assignment of unclaimed property held by the DFS. As an
additional consumer protection, the bill clarifies that fees and costs may only be owed or paid
pursuant to the uniform agreements and upon approval of the claim filed thereby (thus limiting
the overall fees to 20 percent).
The bill allows the DFS to pay out the value of any account that was not claimed at the time that
it approved another of the consumer’s claim, if no subsequent claim was filed.
Lastly, the bill directs the DFS to adopt rules to amend its forms to reflect the uniform
agreements required disclosures.
Section 28 repeals s. 717.1351, F.S., regarding acquisition of unclaimed property. This process is
replaced by the newly created Florida Uniform Property Purchase Agreement, which is created
by section 27 of this bill.
Sections 23-26 make conforming changes to ss. 717.124, 717.12404, 717.1315, and 717.1322,
F.S., respectively, to reflect the adoption of the uniform agreements.
Miscellaneous
Section 3 deletes unnecessary language from s. 626.112(7), F.S.
Sections 14 and 15 update cross-references in ss. 626.9957 and 627.062, F.S., respectively.
Section 29 provides that the bill takes effect upon becoming law.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
BILL: SB 1492 Page 16
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
The bill requires adjusting firms to become licensed, which subjects them to a $60
application fee. To the extent the bill imposes a fee on adjusting firms while addressing
other subjects, the bill may be unconstitutional as a violation the single-subject
requirement for the imposition, authorization, or raising of a state tax or fee under Article
VII, section 19 of the Florida Constitution. Under that section, a “state tax or fee
imposed, authorized, or raised under this section must be contained in a separate bill that
contains no other subject.” A “fee” is defined by the Florida Constitution to mean “any
charge or payment required by law, including any fee for service, fee or cost for licenses,
and charge for service.”75
E. Other Constitutional Issues:
Section 5 may benefit from further definition of its terms. Agencies generally have wide
discretion in interpreting statutes they administer, but “this discretion is somewhat more
limited where the statute being interpreted authorizes sanctions or penalties against a
person’s professional license.”76 Statutes that provide for the revocation or suspension of
a license to practice are deemed penal in nature and must be strictly construed, with any
ambiguity interpreted in favor of the licensee.77 However, if it is found that the law fails
to give a person of ordinary intelligence fair notice of what constitutes forbidden conduct,
it may be determined to be void for vagueness.78
The DFS’ restriction on engagement with a claimant or seller of unclaimed property may
implicate an issue regarding restrictions of commercial speech. The Constitution accords
a lesser protection to commercial speech than to other constitutionally protected
expression.79 In fact, the government may ban forms of commercial communication that
are more likely to deceive the public than to inform it, but if commercial communication
is not misleading or related to unlawful activity, the government’s power to restrict such
communication must be supported by a substantial interest, and the limit must be in
proportion to that interest.80 This is generally expressed as a two-part test asking: (1) does
75
FLA. CONST. art. VII, s. 19(d)(1)
76
Beckett v. Department of Financial Services, 982 So.2d 94, 100 (Fla. 1st DCA 2008) (quoting Elmariah v. Department of
Professional Regulation, Board of Medicine, 574 So.2d 164, 165 (Fla. 1st DCA 1990).
77
Tuberville v. Department of Financial Services, 248 So.3d 194, 196 (Fla 1st DCA 2018).
78
Accelerated Benefits Corp v. Department of Insurance, 813 So.2d 117 (Fla 1st DCA 2002) (internal citations omitted).
79
U.S. CONST., amends. I, XIV. Central Hudson Gas & Electric Corp. v. Public Service Commission of New York, 447 U.S.
557, 564 (1980).
80
Id.
BILL: SB 1492 Page 17
the restriction directly advance the state interest involved, and (2) could the governmental
interest be served as well by a more limited restriction?
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Credit Bureaus will no longer be permitted to charge a fee to re-issue a PIN to
consumers.
Consumers who seek to have their claims covered by FIGA will no longer be required to
pay the $100 deductible to FIGA.
Certain property adjusting businesses will be required to become licensed by the DFS and
pay related application fees; those who fail to submit an application for licensure will be
subject to administrative penalties.
Consumers may benefit from the extended cooling-off period, which allows them to void
a contract for public adjusting services without penalty.
Certain licensees may be subject to administrative or criminal penalties as a result of the
additional penalties created by this bill.
Insurers will be prohibited from selling industrial life insurance policies, although this
should have a de minimis impact, as few currently offer this type of policy.
Insurers and certain agents may be required to update forms or mailers to reflect the new
surplus lines export disclosure, the hurricane disclosure, the updated homeowner claims
bill of rights, and the prohibition of forum selection clauses.
The inclusion of all required information in one uniform agreement may equip an
unclaimed property claimant with more information prior to entering into an agreement.
This may protect the consumer from entering into predatory or unfair contracts to retrieve
their unclaimed property.
C. Government Sector Impact:
The DFS will be required to update certain forms and brochures to reflect the amended
version of the Homeowner Claims Bill of Rights.
The DFS will likely see an increase in adjusting firm applications as a result of this bill;
this will result in an increased licensing workload.
BILL: SB 1492 Page 18
Section 27 requires the DFS to promulgate rules that adopt the uniform agreements
relating to unclaimed property.
VI. Technical Deficiencies:
Line 120 uses the term “consumer,” however, this is not a defined term in s. 501.0051, F.S. The
KIDS Act defines the terms “protected consumer” to mean a person younger than 16 years of
age, and the term “representative” to mean the parent or legal guardian of a protected consumer.
An amendment to s. 501.005(13)(b), F.S., would be required to effect a prohibition on fees
charged by credit bureaus for the replacement of a consumer’s PIN, which is required to remove
a credit freeze.
Several cross-references may need to be updated to reflect the newly required adjusting agency
license, e.g., ss. 626.015 and 626.022, F.S.
Section 3 of the bill, at line 154, requires entities to comply with s. 626.8696, F.S., to act as an
adjusting firm. Section 626.8696, F.S., outlines the requirements for submitting an application
for an adjusting firm license, but does not give licensing requirements. This may be interpreted
as requiring adjusting firms only to submit an application (not wait for approval, or even meet
approval from the DFS) to comply with s. 626.112, F.S., as amended by the bill. Similarly, line
174 within section 3 of the bill merely requires an adjusting firm to file an application for
licensure to avoid a penalty assessed by the DFS.
As written, the bill appears to allow all consumers who have a contract with a public adjuster to
cancel the contract during a state of emergency declared by the governor. See lines 264-271.
Consideration of an amendment to paragraph proposed s. 626.8443(6), F.S., may be needed to
clarify what contracts are voidable by the consumer.
Section 18 and section 20 both generally update references of “days” to “calendar days” or
“business days;” however, both sections also leave at least one reference to only “days.” This
inconsistency may cause confusion about whether a “day” is a calendar or business day.
Lines 614-621 of the bill add a consumer notice within the Homeowner Claims Bill of Rights
that the consumer may be eligible to receive interest payments if the insurance company does not
timely remit his or her claim settlement. Generally, the consumer rights reflected in the
Homeowner Claims Bill of Rights are the inverse of the duties imposed on insurers by s.
627.70131, F.S. However, lines 614-621 do not accurately reflect s. 627.70131(5)(a), F.S.
Line 959, within section 27 of the bill, requires a claimant’s representative to report the “total
percentage of all authorized fees and costs to be paid to the claimant’s representative…” This
language may be interpreted as permitting a claimant’s representative to be paid only a portion of
the total authorized fees and costs, rather than a percentage of the value of the unclaimed
property in question.
VII. Related Issues:
None.
BILL: SB 1492 Page 19
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 501.0051, 624.307,
626.112, 626.602, 626.621, 626.782, 626.783, 626.8443, 626.854, 626.916, 626.9541, 626.9741,
626.9957, 627.062, 627.421, 627.502, 627.70131, 627.7142, 631.57, 648.30, 717.124,
717.12404, 717.1315, 717.1322, and 717.135.
This bill creates section 627.7031, F.S.
This bill repeals ss. 626.796 and 717.1351, F.S.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2020 SB 1492 Florida Senate - 2020 SB 1492
By Senator Wright
14-00928B-20 20201492__ 14-00928B-20 20201492__
1 A bill to be entitled 30 combination class insurer,” respectively, to conform
2 An act relating to consumer protection; amending s. 31 to changes made by the act; repealing s. 626.796,
3 501.0051, F.S.; prohibiting consumer reporting 32 F.S., relating to the representation of multiple
4 agencies from charging to reissue or provide a new 33 insurers in the same industrial debit territory;
5 unique personal identifier to a consumer for the 34 amending s. 626.8443, F.S.; increasing the maximum
6 removal of a security freeze; amending s. 624.307, 35 period of suspension of a title insurance agent’s or
7 F.S.; revising a requirement for entities licensed or 36 agency’s license; amending s. 626.854, F.S.; revising
8 authorized by the Department of Financial Services or 37 the timeframes in which an insured or claimant may
9 the Office of Insurance Regulation to respond to the 38 cancel a public adjuster’s contract to adjust a claim
10 department’s Division of Consumer Services regarding 39 without penalty or obligation; amending s. 626.916,
11 consumer complaints; revising administrative penalties 40 F.S.; revising the classes of insurance subject to a
12 the division may impose for failure to comply; 41 disclosure requirement before being eligible for
13 amending s. 626.112, F.S.; prohibiting unlicensed 42 export under the Surplus Lines Law; amending s.
14 activity by an adjusting firm; providing an exemption; 43 626.9541, F.S.; adding certain acts or practices to
15 providing an exemption from licensure for branch firms 44 the definition of sliding; amending s. 626.9741, F.S.;
16 that meet certain criteria; providing an 45 requiring an insurer to include certain additional
17 administrative penalty for failing to apply for 46 information when providing an applicant or insured
18 certain licensure; providing a criminal penalty for 47 with certain credit report or score information;
19 aiding or abetting unlicensed activity; deleting an 48 amending ss. 626.9957 and 627.062, F.S.; conforming
20 obsolete provision; amending s. 626.602, F.S.; 49 cross-references; amending s. 627.421, F.S.; requiring
21 authorizing the department to disapprove the use of 50 personal lines residential property insurers to
22 insurance agency names containing the words “Medicare” 51 annually deliver a certain notification to
23 or “Medicaid”; providing an exception for certain 52 policyholders within a specified timeframe; amending
24 insurance agencies; amending s. 626.621, F.S.; adding 53 s. 627.502, F.S.; prohibiting life insurers from
25 grounds on which the department may take certain 54 writing new policies of industrial life insurance
26 actions against a license, appointment, or application 55 beginning on a certain date; amending s. 627.70131,
27 of certain insurance representatives; amending ss. 56 F.S.; providing that communication made to or by an
28 626.782 and 626.783, F.S.; revising the definitions of 57 insurer’s representative, rather than to or by an
29 the terms “industrial class insurer” and “ordinary- 58 insurer’s agent, constitutes communication to or by
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59 the insurer; requiring an insurer-assigned licensed 88 amending s. 717.135, F.S.; replacing provisions
60 adjuster to provide the policyholder with certain 89 relating to powers of attorney to recover unclaimed
61 information in certain investigations; requiring that 90 property with provisions relating to uniform forms for
62 certain adjuster reports be provided to policyholders 91 unclaimed property recovery agreements and purchase
63 within a certain timeframe; specifying requirements 92 agreements; requiring the department to adopt the
64 for insurers in notifying policyholders for certain 93 uniform forms by rule; specifying required information
65 changes in assigned adjusters; requiring an insurer to 94 and disclosures in the forms; requiring that, for the
66 establish a process to provide the agent of record 95 purchase agreement form, proof the seller received
67 access to claim status information for a certain 96 payment be filed with the department along with the
68 purpose; defining the term “agent of record”; 97 claim; requiring registered claimant’s representatives
69 requiring insurers to include specified notices when 98 to use the forms as the exclusive means of engaging
70 providing preliminary or partial damage estimates or 99 with a claimant or seller to file claims and
71 claim payments; specifying the timeframe in which an 100 prohibiting them from using or distributing other
72 insurer must pay or deny property insurance claims 101 agreements; specifying a limitation on fees and costs
73 under certain circumstances; providing applicability; 102 owed or paid; prohibiting certain language in the
74 conforming provisions to changes made by the act; 103 forms; authorizing the department to pay additional
75 creating s. 627.7031, F.S.; prohibiting foreign venue 104 accounts owned by the claimant under certain
76 clauses in property insurance policies; providing 105 circumstances; providing construction; repealing s.
77 applicability; amending s. 627.7142, F.S.; revising 106 717.1351, F.S., relating to the acquisition of
78 information contained in the Homeowner Claims Bill of 107 unclaimed property; providing an effective date.
79 Rights; conforming provisions to changes made by the 108
80 act; amending s. 631.57, F.S.; deleting a deductible 109 Be It Enacted by the Legislature of the State of Florida:
81 on the Florida Insurance Guaranty Association, 110
82 Incorporated’s obligation as to certain covered 111 Section 1. Paragraph (b) of subsection (9) of section
83 claims; amending s. 648.30, F.S.; prohibiting the 112 501.0051, Florida Statutes, is amended to read:
84 aiding or abetting of unlicensed activity of a bail 113 501.0051 Protected consumer report security freeze.—
85 bond agent or temporary bail bond agent; amending ss. 114 (9)
86 717.124, 717.12404, 717.1315, and 717.1322, F.S.; 115 (b) A consumer reporting agency may not charge to a
87 conforming provisions to changes made by the act; 116 reasonable fee, not to exceed $10, if the representative fails
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117 to retain the original unique personal identifier provided by 146 firms.—
118 the consumer reporting agency and the agency must reissue the 147 (7)
119 unique personal identifier or provide a new unique personal 148 (d) Effective October 1, 2015, the department must
120 identifier to the consumer representative. 149 automatically convert the registration of an approved registered
121 Section 2. Paragraph (b) of subsection (10) of section 150 insurance agency to an insurance agency license.
122 624.307, Florida Statutes, is amended to read: 151 (9)(a) An individual, firm, partnership, corporation,
123 624.307 General powers; duties.— 152 association, or other entity may not act in its own name or
124 (10) 153 under a trade name, directly or indirectly, as an adjusting firm
125 (b) Any entity person licensed or issued a certificate of 154 unless it complies with s. 626.8696 with respect to possessing
126 authority by the department or the office shall respond, in 155 an adjusting firm license for each place of business at which it
127 writing, to the division within 20 days after receipt of a 156 engages in an activity that may be performed only by a licensed
128 written request for documents and information from the division 157 insurance adjuster. However, an adjusting firm that is owned and
129 concerning a consumer complaint. The response must address the 158 operated by a single licensed adjuster conducting business in
130 issues and allegations raised in the complaint and include any 159 his or her individual name and not employing or otherwise using
131 requested documents. The division may impose an administrative 160 the services of or appointing other licensees is exempt from the
132 penalty for failure to comply with this paragraph of up to 161 adjusting firm licensing requirements of this subsection.
133 $2,500 per violation upon any entity licensed by the department 162 (b) A branch place of business that is established by a
134 or the office and $250 for the first violation, $500 for the 163 licensed adjusting firm is considered a branch firm and is not
135 second violation, and up to $1,000 for the third or subsequent 164 required to be licensed if:
136 violation upon any individual licensed by the department or the 165 1. It transacts business under the same name and federal
137 office. 166 tax identification number as the licensed adjusting firm;
138 Section 3. Present subsection (9) of section 626.112, 167 2. It has designated with the department a primary adjuster
139 Florida Statutes, is redesignated as subsection (10), a new 168 operating the location as required by s. 626.8695; and
140 subsection (9) is added to that section, and paragraph (d) of 169 3. The address and telephone number of the branch location
141 subsection (7) and present subsection (9) of that section are 170 have been submitted to the department for inclusion in the
142 amended, to read: 171 licensing record of the licensed adjusting firm within 30 days
143 626.112 License and appointment required; agents, customer 172 after insurance transactions begin at the branch location.
144 representatives, adjusters, insurance agencies, service 173 (c) If an adjusting firm is required to be licensed, but
145 representatives, managing general agents, insurance adjusting 174 fails to file an application for licensure in accordance with
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175 this section, the department shall impose on the firm an 204 customer representative, service representative, or managing
176 administrative penalty of up to $10,000. 205 general agent, and it may suspend or revoke the eligibility to
177 (10)(9) Any person who knowingly transacts insurance or 206 hold a license or appointment of any such person, if it finds
178 otherwise engages in insurance activities in this state without 207 that as to the applicant, licensee, or appointee any one or more
179 a license in violation of this section or who knowingly aids or 208 of the following applicable grounds exist under circumstances
180 abets an unlicensed person in transacting insurance or otherwise 209 for which such denial, suspension, revocation, or refusal is not
181 engaging in insurance activities in this state without a license 210 mandatory under s. 626.611:
182 commits a felony of the third degree, punishable as provided in 211 (16) Allowing the personal financial or medical information
183 s. 775.082, s. 775.083, or s. 775.084. 212 of a consumer or customer to be made available or accessible to
184 Section 4. Subsection (4) is added to section 626.602, 213 the general public, regardless of the format in which the record
185 Florida Statutes, to read: 214 is stored.
186 626.602 Insurance agency names; disapproval.—The department 215 (17) Initiating in-person or telephone solicitation after 9
187 may disapprove the use of any true or fictitious name, other 216 p.m. or before 8 a.m. local time of the prospective customer
188 than the bona fide natural name of an individual, by any 217 unless requested by the prospective customer.
189 insurance agency on any of the following grounds: 218 Section 6. Section 626.782, Florida Statutes, is amended to
190 (4) The name contains the word “Medicare” or “Medicaid.” An 219 read:
191 insurance agency whose name contains the word “Medicare” or 220 626.782 “Industrial class insurer” defined.—An “industrial
192 “Medicaid” but which is licensed as of July 1, 2020, may 221 class insurer” is an insurer collecting premiums on policies of
193 continue to use that name as long as the agency’s license is 222 writing industrial life insurance, as defined in s. 627.502,
194 valid. If the agency’s license expires or is suspended or 223 written before July 1, 2020, and as to such insurance, operates
195 revoked, the agency may not be relicensed using that name. 224 under a system of collecting a debit by its agent.
196 Section 5. Subsections (16) and (17) are added to section 225 Section 7. Section 626.783, Florida Statutes, is amended to
197 626.621, Florida Statutes, to read: 226 read:
198 626.621 Grounds for discretionary refusal, suspension, or 227 626.783 “Ordinary-combination class insurer” defined.—An
199 revocation of agent’s, adjuster’s, customer representative’s, 228 “ordinary-combination class insurer” is an insurer writing both
200 service representative’s, or managing general agent’s license or 229 ordinary class insurance and collecting premiums on existing
201 appointment.—The department may, in its discretion, deny an 230 industrial life class insurance under s. 626.782.
202 application for, suspend, revoke, or refuse to renew or continue 231 Section 8. Section 626.796, Florida Statutes, is repealed.
203 the license or appointment of any applicant, agent, adjuster, 232 Section 9. Subsection (1) of section 626.8443, Florida
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233 Statutes, is amended to read: 262 is executed or within 7 calendar 3 business days after the date
234 626.8443 Duration of suspension or revocation.— 263 on which the insured or claimant has notified the insurer of the
235 (1) The department shall, in its order suspending a title 264 claim, whichever is later. During a state of emergency declared
236 insurance agent’s or agency’s license or appointment or in its 265 by the Governor or during the 1-year period after the date of
237 order suspending the eligibility of a person to hold or apply 266 loss, an insured or claimant may cancel a public adjuster’s
238 for such license or appointment, specify the period during which 267 contract to adjust a claim without penalty or obligation within
239 the suspension is to be in effect, but such period shall not 268 30 calendar days after the date on which the contract is
240 exceed 2 years 1 year. The license, or appointment, or 269 executed or within 30 calendar days after the date on which the
241 eligibility shall remain suspended during the period so 270 insured or claimant has notified the insurer of the claim,
242 specified, subject, however, to any rescission or modification 271 whichever is later. The public adjuster’s contract must disclose
243 of the order by the department, or modification or reversal 272 to the insured or claimant his or her right to cancel the
244 thereof by the court, prior to expiration of the suspension 273 contract and advise the insured or claimant that notice of
245 period. A license, appointment, or eligibility that which has 274 cancellation must be submitted in writing and sent by certified
246 been suspended may not be reinstated except upon request for 275 mail, return receipt requested, or other form of mailing that
247 such reinstatement, but the department shall not grant such 276 provides proof thereof, to the public adjuster at the address
248 reinstatement if it finds that the circumstance or circumstances 277 specified in the contract; provided, during any state of
249 for which the license, appointment, and eligibility was 278 emergency as declared by the Governor and for 1 year after the
250 suspended still exist or are likely to recur. 279 date of loss, the insured or claimant has 5 business days after
251 Section 10. Subsection (6) of section 626.854, Florida 280 the date on which the contract is executed to cancel a public
252 Statutes, is amended to read: 281 adjuster’s contract.
253 626.854 “Public adjuster” defined; prohibitions.—The 282 Section 11. Subsection (3) of section 626.916, Florida
254 Legislature finds that it is necessary for the protection of the 283 Statutes, is amended, and paragraph (f) is added to subsection
255 public to regulate public insurance adjusters and to prevent the 284 (1) of that section, to read:
256 unauthorized practice of law. 285 626.916 Eligibility for export.—
257 (6) Except during a state of emergency declared by the 286 (1) No insurance coverage shall be eligible for export
258 Governor and except during the 1-year period after the date of 287 unless it meets all of the following conditions:
259 loss, an insured or claimant may cancel a public adjuster’s 288 (f) The insured has signed a disclosure in substantially
260 contract to adjust a claim without penalty or obligation within 289 the following form: “You are agreeing to place coverage in the
261 7 calendar 3 business days after the date on which the contract 290 surplus lines market. Superior coverage may be available in the
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291 admitted market and at a lesser cost. Persons insured by surplus 320 deceptive acts or practices defined.—
292 lines carriers are not protected under the Florida Insurance 321 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
293 Guaranty Act with respect to any right of recovery for the 322 ACTS.—The following are defined as unfair methods of competition
294 obligation of an insolvent unlicensed insurer.” 323 and unfair or deceptive acts or practices:
295 (3)(a) Subsection (1) does not apply to wet marine and 324 (z) Sliding.—Sliding is the act or practice of any of the
296 transportation or aviation risks that which are subject to s. 325 following:
297 626.917. 326 1. Representing to the applicant that a specific ancillary
298 (b) Paragraphs (1)(a)-(d) do not apply to classes of 327 coverage or product is required by law in conjunction with the
299 insurance which are subject to s. 627.062(3)(d)1. These classes 328 purchase of insurance when such coverage or product is not
300 may be exportable under the following conditions: 329 required.;
301 1. The insurance must be placed only by or through a 330 2. Representing to the applicant that a specific ancillary
302 surplus lines agent licensed in this state; 331 coverage or product is included in the policy applied for
303 2. The insurer must be made eligible under s. 626.918; and 332 without an additional charge when such charge is required.; or
304 3. The insured has signed must sign a disclosure as 333 3. Charging an applicant for a specific ancillary coverage
305 required under paragraph (1)(f) that substantially provides the 334 or product, in addition to the cost of the insurance coverage
306 following: “You are agreeing to place coverage in the surplus 335 applied for, without the informed consent of the applicant.
307 lines market. Superior coverage may be available in the admitted 336 4. Initiating, effectuating, binding, or otherwise issuing
308 market and at a lesser cost. Persons insured by surplus lines 337 a policy of insurance without the prior informed consent of the
309 carriers are not protected under the Florida Insurance Guaranty 338 owner of the property to be insured.
310 Act with respect to any right of recovery for the obligation of 339 5. Mailing, transmitting, or otherwise submitting by any
311 an insolvent unlicensed insurer.” If the disclosure notice is 340 means an invoice for premium payment to a mortgagee or escrow
312 signed by the insured, the insured is presumed to have been 341 agent, for the purpose of effectuating an insurance policy,
313 informed and to know that other coverage may be available, and, 342 without the prior informed consent of the owner of the property
314 with respect to the diligent-effort requirement under subsection 343 to be insured.
315 (1), there is no liability on the part of, and no cause of 344 Section 13. Subsection (3) of section 626.9741, Florida
316 action arises against, the retail agent presenting the form. 345 Statutes, is amended to read:
317 Section 12. Paragraph (z) of subsection (1) of section 346 626.9741 Use of credit reports and credit scores by
318 626.9541, Florida Statutes, is amended to read: 347 insurers.—
319 626.9541 Unfair methods of competition and unfair or 348 (3) An insurer must inform an applicant or insured, in the
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349 same medium as the application is taken, that a credit report or 378 subsection. It shall not be deemed an adverse decision if, due
350 score is being requested for underwriting or rating purposes. 379 to the insured’s credit report or credit score, the insured
351 The notification to the consumer must include the following 380 continues to receive a less favorable rate or placement in a
352 language: “The Department of Financial Services offers free 381 less favorable tier or company at the time of renewal except for
353 financial literacy programs to assist you in understanding how 382 renewals or reunderwriting required by this section.
354 credit scores are calculated, what factors are considered, and 383 Section 14. Subsection (1) of section 626.9957, Florida
355 how credit works. The Department’s toll-free Insurance Consumer 384 Statutes, is amended to read:
356 Helpline is available to assist you with insurance-related 385 626.9957 Conduct prohibited; denial, revocation, or
357 questions and inquiries. To learn more about the free financial 386 suspension of registration.—
358 literacy programs or for help with insurance, call 1-877-693- 387 (1) As provided in s. 626.112, only a person licensed as an
359 5236 or visit www.MyFloridaCFO.com.” An insurer that makes an 388 insurance agent or customer representative may engage in the
360 adverse decision based, in whole or in part, upon a credit 389 solicitation of insurance. A person who engages in the
361 report must provide at no charge, a copy of the credit report to 390 solicitation of insurance as described in s. 626.112(1) without
362 the applicant or insured or provide the applicant or insured 391 such license is subject to the penalties provided under s.
363 with the name, address, and telephone number of the consumer 392 626.112(10) s. 626.112(9).
364 reporting agency from which the insured or applicant may obtain 393 Section 15. Subsection (10) of section 627.062, Florida
365 the credit report. The insurer must provide notification to the 394 Statutes, is amended to read:
366 consumer explaining the reasons for the adverse decision. The 395 627.062 Rate standards.—
367 reasons must be provided in sufficiently clear and specific 396 (10) Any interest paid pursuant to s. 627.70131(7) s.
368 language so that a person can identify the basis for the 397 627.70131(5) may not be included in the insurer’s rate base and
369 insurer’s adverse decision. Such notification shall include a 398 may not be used to justify a rate or rate change.
370 description of the four primary reasons, or such fewer number as 399 Section 16. Subsection (6) is added to section 627.421,
371 existed, which were the primary influences of the adverse 400 Florida Statutes, to read:
372 decision. The use of generalized terms such as “poor credit 401 627.421 Delivery of policy.—
373 history,” “poor credit rating,” or “poor insurance score” does 402 (6) For personal lines residential property insurance
374 not meet the explanation requirements of this subsection. A 403 policies, the insurer shall, between March 3 and April 2 of each
375 credit score may not be used in underwriting or rating insurance 404 year, inclusive, deliver a notification to all policyholders via
376 unless the scoring process produces information in sufficient 405 mail or e-mail which includes the Homeowner Claims Bill of
377 detail to permit compliance with the requirements of this 406 Rights and outlines the hurricane coverage included in the
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407 policy, including the hurricane deductible and the coverages and 436 insurer which reasonably prevent such acknowledgment. If the
408 exclusions. 437 acknowledgment is not in writing, a notification indicating
409 Section 17. Section 627.502, Florida Statutes, is amended 438 acknowledgment shall be made in the insurer’s claim file and
410 to read: 439 dated. A communication made to or by a representative an agent
411 627.502 “Industrial life insurance” defined; reporting; 440 of an insurer with respect to a claim shall constitute
412 prohibition on new policies after a certain date.— 441 communication to or by the insurer.
413 (1) For the purposes of this code, “industrial life 442 (b) As used in this subsection, the term “representative”
414 insurance” is that form of life insurance written under policies 443 “agent” means any person to whom an insurer has granted
415 under which premiums are payable monthly or more often, bearing 444 authority or responsibility to receive or make such
416 the words “industrial policy” or “weekly premium policy” or 445 communications with respect to claims on behalf of the insurer.
417 words of similar import imprinted upon the policies as part of 446 (c) This subsection shall not apply to claimants
418 the descriptive matter, and issued by an insurer that which, as 447 represented by counsel beyond those communications necessary to
419 to such industrial life insurance, is operating under a system 448 provide forms and instructions.
420 of collecting a debit by its agent. 449 (2) Such acknowledgment shall be responsive to the
421 (2) Every life insurer servicing existing transacting 450 communication. If the communication constitutes a notification
422 industrial life insurance shall report to the office all annual 451 of a claim, unless the acknowledgment reasonably advises the
423 statement data regarding the exhibit of life insurance, 452 claimant that the claim appears not to be covered by the
424 including relevant information for industrial life insurance. 453 insurer, the acknowledgment shall provide necessary claim forms,
425 (3) Beginning July 1, 2020, a life insurer may not write a 454 and instructions, including an appropriate telephone number.
426 new policy of industrial life insurance. 455 (3)(a) Unless otherwise provided by the policy of insurance
427 Section 18. Section 627.70131, Florida Statutes, is amended 456 or by law, within 10 business working days after an insurer
428 to read: 457 receives proof of loss statements, the insurer shall begin such
429 627.70131 Insurer’s duty to acknowledge communications 458 investigation as is reasonably necessary unless the failure to
430 regarding claims; investigation.— 459 begin such investigation is caused by factors beyond the control
431 (1)(a) Upon an insurer’s receiving a communication with 460 of the insurer which reasonably prevent the commencement of such
432 respect to a claim, the insurer shall, within 14 calendar days, 461 investigation.
433 review and acknowledge receipt of such communication unless 462 (b) If such investigation involves a physical inspection of
434 payment is made within that period of time or unless the failure 463 the property, the licensed adjuster assigned by the insurer must
435 to acknowledge is caused by factors beyond the control of the 464 provide the policyholder with his or her name, license number,
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465 and contact information. 494 bold, uppercase type: THIS ESTIMATE REPRESENTS OUR CURRENT
466 (c) An unedited copy of any report received by the insurer, 495 EVALUATION OF THE LOSS TO YOUR INSURED PROPERTY AND MAY BE
467 which was produced by the licensed adjuster based upon the 496 REVISED AS WE CONTINUE TO EVALUATE YOUR CLAIM. IF YOU HAVE
468 physical inspection of the property, must be provided to the 497 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
469 policyholder electronically or as a physical copy within 7 days 498 CLAIM, WE ENCOURAGE YOU TO CONTACT US.
470 after receipt by the insurer. 499 (b) When providing a preliminary or partial payment on a
471 (d) If an insurer assigns the claim to a different licensed 500 claim, an insurer shall include with the payment the following
472 adjuster after receipt of a report from the adjuster who 501 statement printed in at least 12-point bold, uppercase type: WE
473 performed the physical inspection, the insurer must, within 7 502 ARE CONTINUING TO EVALUATE YOUR CLAIM INVOLVING YOUR INSURED
474 days after changing the licensed insurance adjuster assigned to 503 PROPERTY AND MAY ISSUE ADDITIONAL PAYMENTS. IF YOU HAVE
475 a claim, provide the name, license number, and contact 504 QUESTIONS, CONCERNS, OR ADDITIONAL INFORMATION REGARDING YOUR
476 information of the new adjuster to the policyholder. The 505 CLAIM, WE ENCOURAGE YOU TO CONTACT US.
477 notification may be sent electronically or via mail. If the 506 (7)(5)(a) Within 90 calendar days after an insurer receives
478 notification is a physical letter, it must be postmarked within 507 notice of an initial, reopened, or supplemental property
479 7 days after the change in adjuster. Any subsequent change to 508 insurance claim from a policyholder, the insurer shall pay or
480 the assigned adjuster must be handled in accordance with this 509 deny such claim or a portion of the claim unless the failure to
481 paragraph. 510 pay is caused by factors beyond the control of the insurer which
482 (4) An insurer shall establish a process by which the agent 511 reasonably prevent such payment. Any payment of an initial or
483 of record for an insurance policy is provided access to 512 supplemental claim or portion of such claim made 90 calendar
484 information provided to the policyholder under subsection (3) in 513 days after the insurer receives notice of the claim, or made
485 order to assist the agent of record in answering the 514 more than 15 days after there are no longer factors beyond the
486 policyholder’s questions regarding claims. As used in this 515 control of the insurer which reasonably prevented such payment,
487 subsection, the term “agent of record” means the agent named on 516 whichever is later, bears interest at the rate set forth in s.
488 the declarations page of the insurance policy. 517 55.03. Interest begins to accrue from the date the insurer
489 (5) For purposes of this section, the term “insurer” means 518 receives notice of the claim. The provisions of this subsection
490 any residential property insurer. 519 may not be waived, voided, or nullified by the terms of the
491 (6)(a) When providing a preliminary or partial estimate of 520 insurance policy. If there is a right to prejudgment interest,
492 damage regarding a claim, an insurer shall include with the 521 the insured shall select whether to receive prejudgment interest
493 estimate the following statement printed in at least 12-point 522 or interest under this subsection. Interest is payable when the
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523 claim or portion of the claim is paid. Failure to comply with 552 issuing a personal lines residential property insurance policy
524 this subsection constitutes a violation of this code. However, 553 in this state must provide a Homeowner Claims Bill of Rights to
525 failure to comply with this subsection does not form the sole 554 a policyholder within 14 days after receiving an initial
526 basis for a private cause of action. 555 communication with respect to a claim, unless the claim follows
527 (b) Notwithstanding subsection (5) (4), for purposes of 556 an event that is the subject of a declaration of a state of
528 this subsection, the term “claim” means any of the following: 557 emergency by the Governor. The purpose of the bill of rights is
529 1. A claim under an insurance policy providing residential 558 to summarize, in simple, nontechnical terms, existing Florida
530 coverage as defined in s. 627.4025(1); 559 law regarding the rights of a personal lines residential
531 2. A claim for structural or contents coverage under a 560 property insurance policyholder who files a claim of loss. The
532 commercial property insurance policy if the insured structure is 561 Homeowner Claims Bill of Rights is specific to the claims
533 10,000 square feet or less; or 562 process and does not represent all of a policyholder’s rights
534 3. A claim for contents coverage under a commercial tenant 563 under Florida law regarding the insurance policy. The Homeowner
535 policy if the insured premises is 10,000 square feet or less. 564 Claims Bill of Rights does not create a civil cause of action by
536 (c) This subsection shall not apply to claims under an 565 any individual policyholder or class of policyholders against an
537 insurance policy covering nonresidential commercial structures 566 insurer or insurers. The failure of an insurer to properly
538 or contents in more than one state. 567 deliver the Homeowner Claims Bill of Rights is subject to
539 (8) This section applies to surplus lines insurers and 568 administrative enforcement by the office but is not admissible
540 surplus lines insurance authorized under ss. 626.913-626.937. 569 as evidence in a civil action against an insurer. The Homeowner
541 Section 19. Section 627.7031, Florida Statutes, is created 570 Claims Bill of Rights does not enlarge, modify, or contravene
542 to read: 571 statutory requirements, including, but not limited to, ss.
543 627.7031 Foreign venue clauses prohibited.—A property 572 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, and does
544 insurance policy sold in this state after July 1, 2020, may not 573 not prohibit an insurer from exercising its right to repair
545 require an insured to pursue dispute resolution through 574 damaged property in compliance with the terms of an applicable
546 litigation, arbitration, or mediation outside this state. This 575 policy or ss. 627.7011(5)(e) and 627.702(7). The Homeowner
547 section applies to surplus lines insurers and surplus lines 576 Claims Bill of Rights must state:
548 insurance authorized under ss. 626.913-626.937. 577
549 Section 20. Section 627.7142, Florida Statutes, is amended 578 HOMEOWNER CLAIMS
550 to read: 579 BILL OF RIGHTS
551 627.7142 Homeowner Claims Bill of Rights.—An insurer 580 This Bill of Rights is specific to the claims process
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581 and does not represent all of your rights under 610 interest noted in the policy, receive full settlement
582 Florida law regarding your policy. There are also 611 payment for your claim or payment of the undisputed
583 exceptions to the stated timelines when conditions are 612 portion of your claim, or your insurance company’s
584 beyond your insurance company’s control. This document 613 denial of your claim.
585 does not create a civil cause of action by an 614 5. Receive payment of interest from your
586 individual policyholder, or a class of policyholders, 615 insurance company, which begins accruing from the date
587 against an insurer or insurers and does not prohibit 616 your claim is filed if your insurance company does not
588 an insurer from exercising its right to repair damaged 617 pay full settlement of your claim or the undisputed
589 property in compliance with the terms of an applicable 618 portion of your claim or does not deny your claim
590 policy. 619 within 90 calendar days after your claim is filed. The
591 620 interest must be paid when your claim or undisputed
592 YOU HAVE THE RIGHT TO: 621 portion of your claim is paid.
593 1. Receive from your insurance company an 622 6.4. Free mediation of your disputed claim by the
594 acknowledgment of your reported claim within 14 623 Florida Department of Financial Services, Division of
595 calendar days after the time you communicated the 624 Consumer Services, under most circumstances and
596 claim. 625 subject to certain restrictions.
597 2. Upon written request, receive from your 626 7.5. Neutral evaluation of your disputed claim,
598 insurance company within 30 days after you have 627 if your claim is for damage caused by a sinkhole and
599 submitted a complete proof-of-loss statement to your 628 is covered by your policy.
600 insurance company, confirmation that your claim is 629 8.6. Contact the Florida Department of Financial
601 covered in full, partially covered, or denied, or 630 Services, Division of Consumer Services’ toll-free
602 receive a written statement that your claim is being 631 helpline for assistance with any insurance claim or
603 investigated. 632 questions pertaining to the handling of your claim.
604 3. Within 7 calendar days, receive notification 633 You can reach the Helpline by phone at...(toll-free
605 from your insurance company if there has been a change 634 phone number)..., or you can seek assistance online at
606 in the company adjuster who is assigned to your claim. 635 the Florida Department of Financial Services, Division
607 The notification must include the assigned adjuster’s 636 of Consumer Services’ website at...(website
608 contact information. 637 address)....
609 4. Within 90 calendar days, subject to any dual 638
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639 YOU ARE ADVISED TO: 668 (6) of section 631.57, Florida Statutes, are amended to read:
640 1. Contact your insurance company before entering 669 631.57 Powers and duties of the association.—
641 into any contract for repairs to confirm any managed 670 (1) The association shall:
642 repair policy provisions or optional preferred 671 (a)1. Be obligated to the extent of the covered claims
643 vendors. 672 existing:
644 2. Make and document emergency repairs that are 673 a. Prior to adjudication of insolvency and arising within
645 necessary to prevent further damage. Keep the damaged 674 30 days after the determination of insolvency;
646 property, if feasible, keep all receipts, and take 675 b. Before the policy expiration date if less than 30 days
647 photographs or video of damage before and after any 676 after the determination; or
648 repairs. 677 c. Before the insured replaces the policy or causes its
649 3. Carefully read any contract that requires you 678 cancellation, if she or he does so within 30 days of the
650 to pay out-of-pocket expenses or a fee that is based 679 determination.
651 on a percentage of the insurance proceeds that you 680 2. The obligation under subparagraph 1. includes only the
652 will receive for repairing or replacing your property. 681 amount of each covered claim which is in excess of $100 and is
653 4. Confirm that the contractor you choose is 682 less than $300,000, except that policies providing coverage for
654 licensed to do business in Florida. You can verify a 683 homeowner’s insurance shall provide for an additional $200,000
655 contractor’s license and check to see if there are any 684 for the portion of a covered claim which relates only to the
656 complaints against him or her by calling the Florida 685 damage to the structure and contents.
657 Department of Business and Professional Regulation. 686 3.a. Notwithstanding subparagraph 2., the obligation under
658 You should also ask the contractor for references from 687 subparagraph 1. for policies covering condominium associations
659 previous work. 688 or homeowners’ associations, which associations have a
660 5. Require all contractors to provide proof of 689 responsibility to provide insurance coverage on residential
661 insurance before beginning repairs. 690 units within the association, shall include that amount of each
662 6. Take precautions if the damage requires you to 691 covered property insurance claim which is less than $100,000
663 leave your home, including securing your property and 692 multiplied by the number of condominium units or other
664 turning off your gas, water, and electricity, and 693 residential units; however, as to homeowners’ associations, this
665 contacting your insurance company and provide a phone 694 sub-subparagraph applies only to claims for damage or loss to
666 number where you can be reached. 695 residential units and structures attached to residential units.
667 Section 21. Paragraph (a) of subsection (1) and subsection 696 b. Notwithstanding sub-subparagraph a., the association has
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697 no obligation to pay covered claims that are to be paid from the 726 (2) A person may not represent himself or herself to be a
698 proceeds of bonds issued under s. 631.695. However, the 727 bail enforcement agent, bounty hunter, or other similar title in
699 association shall assign and pledge the first available moneys 728 this state.
700 from all or part of the assessments to be made under paragraph 729 (3) A person, other than a certified law enforcement
701 (3)(a) to or on behalf of the issuer of such bonds for the 730 officer, may not apprehend, detain, or arrest a principal on a
702 benefit of the holders of such bonds. The association shall 731 bond, wherever issued, unless that person is qualified,
703 administer any such covered claims and present valid covered 732 licensed, and appointed as provided in this chapter or licensed
704 claims for payment in accordance with the provisions of the 733 as a bail bond agent or bail bond enforcement agent, or holds an
705 assistance program in connection with which such bonds have been 734 equivalent license by the state where the bond was written.
706 issued. 735 (4) Any person who violates this section commits a felony
707 4. In no event shall the association be obligated to a 736 of the third degree, punishable as provided in s. 775.082, s.
708 policyholder or claimant in an amount in excess of the 737 775.083, or s. 775.084.
709 obligation of the insolvent insurer under the policy from which 738 (5) Any licensee under this chapter who knowingly aids or
710 the claim arises. 739 abets an unlicensed person in violating this section commits a
711 (6) The association may extend the time limits specified in 740 felony of the third degree, punishable as provided in s.
712 paragraph (1)(a) by up to an additional 60 days or waive the 741 775.082, s. 775.083, or s. 775.084.
713 applicability of the $100 deductible specified in paragraph 742 Section 23. Paragraphs (b) and (c) of subsection (4) and
714 (1)(a) if the board determines that either or both such actions 743 subsections (1) and (10) of section 717.124, Florida Statutes,
715 are necessary to facilitate the bulk assumption of obligations. 744 are amended to read:
716 Section 22. Section 648.30, Florida Statutes, is amended to 745 717.124 Unclaimed property claims.—
717 read: 746 (1) Any person, excluding another state, claiming an
718 648.30 Licensure and appointment required; prohibited acts; 747 interest in any property paid or delivered to the department
719 penalties.— 748 under this chapter may file with the department a claim on a
720 (1) A person may not act in the capacity of a bail bond 749 form prescribed by the department and verified by the claimant
721 agent or temporary bail bond agent or perform any of the 750 or the claimant’s representative. The claimant’s representative
722 functions, duties, or powers prescribed for bail bond agents or 751 must be an attorney licensed to practice law in this state, a
723 temporary bail bond agents under this chapter unless that person 752 licensed Florida-certified public accountant, or a private
724 is qualified, licensed, and appointed as provided in this 753 investigator licensed under chapter 493. The claimant’s
725 chapter. 754 representative must be registered with the department under this
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755 chapter. The claimant, or the claimant’s representative, shall 784 provide additional information. The department shall retain a
756 provide the department with a legible copy of a valid driver 785 copy or electronic image of the claim.
757 license of the claimant at the time the original claim form is 786 (b) A claimant or the claimant’s representative shall be
758 filed. If the claimant has not been issued a valid driver 787 deemed to have withdrawn a claim if no response to the
759 license at the time the original claim form is filed, the 788 department’s request for additional information is received by
760 department shall be provided with a legible copy of a 789 the department within 60 days after the notification of any
761 photographic identification of the claimant issued by the United 790 apparent errors or omissions.
762 States, a state or territory of the United States, a foreign 791 (c) Within 90 days after receipt of the claim, or the
763 nation, or a political subdivision or agency thereof or other 792 response of the claimant or the claimant’s representative to the
764 evidence deemed acceptable by the department by rule. In lieu of 793 department’s request for additional information, whichever is
765 photographic identification, a notarized sworn statement by the 794 later, the department shall determine each claim. Such
766 claimant may be provided which affirms the claimant’s identity 795 determination shall contain a notice of rights provided by ss.
767 and states the claimant’s full name and address. The claimant 796 120.569 and 120.57. The 90-day period shall be extended by 60
768 must produce to the notary photographic identification of the 797 days if the department has good cause to need additional time or
769 claimant issued by the United States, a state or territory of 798 if the unclaimed property:
770 the United States, a foreign nation, or a political subdivision 799 1. Is owned by a person who has been a debtor in
771 or agency thereof or other evidence deemed acceptable by the 800 bankruptcy;
772 department by rule. The notary shall indicate the notary’s full 801 2. Was reported with an address outside of the United
773 address on the notarized sworn statement. Any claim filed 802 States;
774 without the required identification or the sworn statement with 803 3. Is being claimed by a person outside of the United
775 the original claim form and the original Florida Uniform 804 States; or
776 Unclaimed Property Recovery Agreement or Florida Uniform 805 4. Contains documents filed in support of the claim that
777 Property Purchase Agreement power of attorney or purchase 806 are not in the English language and have not been accompanied by
778 agreement, if applicable, is void. 807 an English language translation.
779 (a) Within 90 days after receipt of a claim, the department 808 (d) The department shall deny any claim under which the
780 may return any claim that provides for the receipt of fees and 809 claimant’s representative has refused to authorize the
781 costs greater than that permitted under this chapter or that 810 department to reduce the fees and costs to the maximum permitted
782 contains any apparent errors or omissions. The department may 811 under this chapter.
783 also request that the claimant or the claimant’s representative 812 (4)
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813 (b) If an owner authorizes an attorney licensed to practice 842 Payment made to an attorney licensed in this state, a Florida-
814 law in this state, Florida-certified public accountant, or 843 certified public accountant, or a private investigator licensed
815 private investigator licensed under chapter 493, and registered 844 under chapter 493, operating individually or as a sole
816 with the department under this chapter, to claim the unclaimed 845 practitioner, shall be to the attorney, certified public
817 property on the owner’s behalf, the department is authorized to 846 accountant, or private investigator.
818 make distribution of the property or money in accordance with 847 (10) Notwithstanding any other provision of this chapter,
819 the Florida Uniform Unclaimed Property Recovery Agreement or 848 the department may develop a process by which a registered
820 Florida Uniform Property Purchase Agreement under s. 717.135 849 claimant’s representative or a buyer of unclaimed property may
821 such power of attorney. The original Florida Uniform Unclaimed 850 electronically submit to the department an electronic image of a
822 Property Recovery Agreement or Florida Uniform Property Purchase 851 completed claim and claims-related documents pursuant to this
823 Agreement power of attorney must be executed by the claimant or 852 chapter, including a Florida Uniform Unclaimed Property Recovery
824 seller owner and must be filed with the department. 853 Agreement or Florida Uniform Property Purchase Agreement a
825 (c)1. Payments of approved claims for unclaimed cash 854 limited power of attorney or purchase agreement that has been
826 accounts shall be made to the owner after deducting any fees and 855 manually signed and dated by a claimant or seller pursuant to s.
827 costs authorized pursuant to a Florida Uniform Unclaimed 856 717.135 or s. 717.1351, after the claimant’s representative or
828 Property Recovery Agreement written power of attorney. The 857 the buyer of unclaimed property receives the original documents
829 contents of a safe-deposit box shall be delivered directly to 858 provided by the claimant or the seller for any claim. Each claim
830 the claimant notwithstanding any power of attorney or agreement 859 filed by a registered claimant’s representative or a buyer of
831 to the contrary. 860 unclaimed property must include a statement by the claimant’s
832 2. Payments of fees and costs authorized pursuant to a 861 representative or the buyer of unclaimed property attesting that
833 Florida Uniform Unclaimed Property Recovery Agreement written 862 all documents are true copies of the original documents and that
834 power of attorney for approved claims must shall be made or 863 all original documents are physically in the possession of the
835 issued to the law firm of the designated attorney licensed to 864 claimant’s representative or the buyer of unclaimed property.
836 practice law in this state, the public accountancy firm of the 865 All original documents must be kept in the original form, by
837 licensed Florida-certified public accountant, or the designated 866 claim number, under the secure control of the claimant’s
838 employing private investigative agency licensed by this state. 867 representative or the buyer of unclaimed property and must be
839 Such payments shall be made by electronic funds transfer and may 868 available for inspection by the department in accordance with s.
840 be made on such periodic schedule as the department may define 869 717.1315. The department may adopt rules to implement this
841 by rule, provided the payment intervals do not exceed 31 days. 870 subsection.
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871 Section 24. Subsection (2) of section 717.12404, Florida 900 (1) Every claimant’s representative and buyer of unclaimed
872 Statutes, is amended to read: 901 property shall keep and use in his or her business such books,
873 717.12404 Claims on behalf of a business entity or trust.— 902 accounts, and records of the business conducted under this
874 (2) Claims on behalf of a dissolved corporation, a business 903 chapter to enable the department to determine whether such
875 entity other than an active corporation, or a trust must include 904 person is complying with this chapter and the rules adopted by
876 a legible copy of a valid driver license of the person acting on 905 the department under this chapter. Every claimant’s
877 behalf of the dissolved corporation, business entity other than 906 representative and buyer of unclaimed property shall preserve
878 an active corporation, or trust. If the person has not been 907 such books, accounts, and records, including every Florida
879 issued a valid driver license, the department shall be provided 908 Uniform Unclaimed Property Recovery Agreement or Florida Uniform
880 with a legible copy of a photographic identification of the 909 Property Purchase Agreement power of attorney or agreement
881 person issued by the United States, a foreign nation, or a 910 between the owner and such claimant’s representative or buyer,
882 political subdivision or agency thereof. In lieu of photographic 911 for at least 3 years after the date of the initial power of
883 identification, a notarized sworn statement by the person may be 912 attorney or agreement.
884 provided which affirms the person’s identity and states the 913 Section 26. Paragraph (j) of subsection (1) of section
885 person’s full name and address. The person must produce his or 914 717.1322, Florida Statutes, is amended to read:
886 her photographic identification issued by the United States, a 915 717.1322 Administrative and civil enforcement.—
887 state or territory of the United States, a foreign nation, or a 916 (1) The following acts are violations of this chapter and
888 political subdivision or agency thereof or other evidence deemed 917 constitute grounds for an administrative enforcement action by
889 acceptable by the department by rule. The notary shall indicate 918 the department in accordance with the requirements of chapter
890 the notary’s full address on the notarized sworn statement. Any 919 120 and for civil enforcement by the department in a court of
891 claim filed without the required identification or the sworn 920 competent jurisdiction:
892 statement with the original claim form and the original Florida 921 (j) Requesting or receiving compensation for notifying a
893 Uniform Unclaimed Property Recovery Agreement or Florida Uniform 922 person of his or her unclaimed property or assisting another
894 Property Purchase Agreement power of attorney, if applicable, is 923 person in filing a claim for unclaimed property, unless the
895 void. 924 person is an attorney licensed to practice law in this state, a
896 Section 25. Subsection (1) of section 717.1315, Florida 925 Florida-certified public accountant, or a private investigator
897 Statutes, is amended to read: 926 licensed under chapter 493, or entering into, or making a
898 717.1315 Retention of records by claimant’s representatives 927 solicitation to enter into, an agreement a power of attorney to
899 and buyers of unclaimed property.— 928 file a claim for unclaimed property owned by another, or a
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929 contract or agreement to purchase unclaimed property, unless 958 claimed or sold.
930 such person is registered with the department pursuant to this 959 (b) Either the total percentage of all authorized fees and
931 chapter and an attorney licensed to practice law in this state 960 costs to be paid to the claimant’s representative or the
932 in the regular practice of her or his profession, a Florida- 961 percentage of the value of the property to be paid as net gain
933 certified public accountant who is acting within the scope of 962 to the purchasing registered claimant’s representative.
934 the practice of public accounting as defined in chapter 473, or 963 (c) Either the total dollar amount to be deducted and
935 a private investigator licensed under chapter 493. This 964 received from the claimant as fees and costs by the claimant’s
936 subsection does not apply to a person who has been granted a 965 representative or the total net dollar amount to be received by
937 durable power of attorney to convey and receive all of the real 966 the purchasing registered claimant’s representative.
938 and personal property of the owner, is the court-appointed 967 (d) The net dollar amount to be received by the claimant or
939 guardian of the owner, has been employed as an attorney or 968 seller.
940 qualified representative to contest the department’s denial of a 969 (e) For each account claimed, the unclaimed property
941 claim, or has been employed as an attorney to probate the estate 970 account number and name of the apparent owner, as listed on the
942 of the owner or an heir or legatee of the owner. 971 department’s database.
943 Section 27. Section 717.135, Florida Statutes, is amended 972 (f) For the Florida Uniform Property Purchase Agreement, a
944 to read: 973 statement that the purchase price will be remitted to the seller
945 (Substantial rewording of section. See 974 within 30 days after the execution of the form by the seller.
946 s. 717.135, F.S., for present text.) 975 (g) The name, address, e-mail address, phone number, and
947 717.135 Recovery agreements and purchase agreements for 976 license number of the registered claimant’s representative.
948 claims filed by claimant’s representative; fees and costs.— 977 (h) The manual signature of the claimant or seller and the
949 (1) In order to protect the interests of owners of 978 date signed.
950 unclaimed property, the department shall adopt by rule a form 979 (i) The social security number or taxpayer identification
951 entitled “Florida Uniform Unclaimed Property Recovery Agreement” 980 number of the claimant or seller, if available. A number is
952 and a form entitled “Florida Uniform Property Purchase 981 available if one has been issued to the claimant or seller.
953 Agreement.” 982 (j) A limit of total fees and costs, or the total discount
954 (2) The Florida Uniform Unclaimed Property Recovery 983 amount in the case of a purchase agreement, to no more than 20
955 Agreement form and the Florida Uniform Property Purchase 984 percent of the claimed amount.
956 Agreement form must include and disclose: 985 (3) For a Florida Uniform Property Purchase Agreement form,
957 (a) The total dollar amount of unclaimed property accounts 986 proof that the seller has received payment must be filed with
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987 the department along with the claim. If proof of payment is not 1016 repealed.
988 provided, the claim is void. 1017 Section 29. This act shall take effect upon becoming a law.
989 (4) A registered claimant’s representative shall use the
990 Florida Uniform Unclaimed Property Recovery Agreement form or
991 the Florida Uniform Property Purchase Agreement form as the
992 exclusive means of engaging with a claimant or seller to file a
993 claim with the department.
994 (5) Fees and costs may be owed or paid to a registered
995 claimant’s representative only pursuant to the forms authorized
996 by this section and upon approval of the claim filed thereby.
997 (6) A claimant’s representative may not use or distribute
998 any other agreement of any type with respect to the claimant or
999 seller which relates to unclaimed property accounts held by the
1000 department or the Chief Financial Officer other than the
1001 agreements authorized by this section. Any agreement that is not
1002 authorized by this section is null and void.
1003 (7) The forms under subsection (1):
1004 (a) May not contain language that makes the agreement
1005 irrevocable; and
1006 (b) May not contain language that creates an assignment of
1007 any unclaimed property held by the department.
1008 (8) This section does not supersede the conflicting claims
1009 provisions of s. 717.1241.
1010 (9) At the time a claim is approved, the department may pay
1011 any additional account that is owned by the claimant but has not
1012 been claimed at the time of approval, provided that no
1013 subsequent claim has been filed and is pending for the claimant
1014 at the time of approval.
1015 Section 28. Section 717.1351, Florida Statutes, is
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THE FLORIDA SENATE
COMMITTEES:
Tallahassee, Florida 32399-1100 Military and Veterans Affairs and Space, Chair
Children, Families, and Elder Affairs
Commerce and Tourism
Environment and Natural Resources
JOINT COMMITTEE:
Joint Administrative Procedures Committee
SENATOR TOM A. WRIGHT
14th District
January 14, 2020
The Honorable Joe Gruters
324, Senate Office Building
404 S. Monroe Street
Tallahassee, FL 32399
Re: Senate Bill 1492 – Consumer Protection
Dear Chair Gruters:
Senate Bill 1492, relating to Consumer Protection has been referred to the Committee on
Commerce and Tourism. I am requesting your consideration on placing SB 1492 on your next
agenda. Should you need any additional information please do not hesitate to contact my office.
Thank you for your consideration.
Sincerely,
Tom A. Wright, District 14
cc: Todd McKay, Staff Director of the Committee on Commerce and Tourism
Brittany Argote, Administrative Assistant of the Committee on Commerce and Tourism
REPLY TO:
4606 Clyde Morris Blvd., Suite 2-J, Port Orange, Florida 32129 (386) 304-7630
312 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5014
Senate’s Website: www.flsenate.gov
BILL GALVANO DAVID SIMMONS
President of the Senate President Pro Tempore
Department of Financial Services (DFS)
2020 Legislative Bill Analysis
BILL INFORMATION
Bill Number: SB 1492
Bill Title: Consumer Protection
Bill Sponsor: Wright
Effective Date: Upon becoming law
ANALYSIS INFORMATION
Agency Contact: Meredith Stanfield, Legislative Affairs Director, (850) 413-2890
Division Director: Greg Thomas, Walter Graham
Program Analyst: Scott MacCallum, Philip Carlton, Austin Stowers
Analysis Date: January 21, 2020
POLICY ANALYSIS
I. SUMMARY ANALYSIS
SB 1492 is the Department of Financial Services’ (DFS or the Department) consumer protection package,
championed by Chief Financial Officer (CFO) Jimmy Patronis, which addresses the current fraud epidemic in the
State of Florida. The bill will remove punitive fees from statute, address communication between the insurance
industry and consumers/policy holders, ensure consumer protections, and strengthen best practices in the
industry. This legislation is a unified proposal from Florida’s insurance regulators to improve claims handling
practices on behalf of all Florida consumers.
The bill specifically addresses the licensing of insurance adjusting and public adjusting firms, the protection of
personal financial and medical information by insurance agencies, increases the period during which a
policyholder may cancel a public adjusting contract, and prohibits the practice of initiating property policies
without the consent of the property owner. The bill also expands the content of the Homeowners Claims Bill of
Rights and requires that it be sent to policyholders annually, requires that property insurance companies provide
the contact information of the individual handling their claim, and prohibits the issuance of industrial life
insurance policies.
While the bill predominantly focuses on consumer protection measures associated with insurance, it also
addresses procedures associated with unclaimed property in the state by creating standard forms to streamline
the collection, dispersal, purchase and sale of unclaimed property.
II. PRESENT SITUATION
In the wake of Hurricane Michael, the Division of Consumer Services (Consumer Services) received hundreds of
complaints from policyholders regarding non-responsiveness from insurance company adjusters, multiple changes
in the adjuster handling their claim, and claim settlement payment delays. Similarly, Consumer Services received a
significant number of policyholder complaints indicating that the public adjuster or public adjusting firm they hired
to assist them with the claim was unresponsive and took months to provide the insurance company with the
documentation necessary to move the claim forward. Policyholders who were insured through surplus lines
insurers encountered additional issues because many of the laws designed to provide a degree of protection to
2020 DFS Bill Analysis
the insurance consumer do not apply to non-admitted carriers. The issues and complaints Consumer Services
receives are not solely from policyholders impacted by Hurricane Michael, but they have illuminated inefficiencies
of current insurance industry practices.
Consumers have also reported incidences of their personal financial or health information being handled
carelessly by their insurance agent’s office staff, cases of agents providing policyholder information to insurance
companies for the purpose of providing a quote, followed by that insurer then issuing an insurance policy that the
policyholder never authorized nor requested. Finally, while individual adjusters and public adjusters are required
to be licensed and appointed, adjusting and public adjusting firms are not. The absence of such licensure hampers
the Division’s ability to track potential issues and/or trends within certain firms. Currently, Consumer Services is
unable to associate individual adjusters with specific firms, therefore similar concerning actions among the
adjusters employed by a particular firm are not able to be attributed to that firm. As we have seen with certain
insurance agencies, if the leadership of the agency is encouraging or condoning unlawful or unethical behavior, its
employees typically follow suit.
Section 1:
CFO Jimmy Patronis championed 2019 legislation to remove the $10 fee charged by credit reporting agencies to
place a security freeze on a consumer’s credit report. The removal of the fee made it more accessible and simpler
for consumers to protect their identities and reduce the risk of identity theft. However, there is still a loophole in
the law that allows a credit reporting agency to charge up to $10 to reissue the unique Personal Identification
Number (PIN). Credit reports are free for consumers, but they can be charged the $10 fee if they misplace or
forget their PIN.
Section 2:
Current law does not allow the specificity as to what a regulated entity must provide to Consumer Services in
response to its written request. There are current fines for individuals who fail to comply with requests from
Consumer Services that are not enforced.
Sections 3, 14 and 22:
Within the Florida Insurance Code, it is a felony for an unlicensed person to transact insurance, but it does not
address those licensees who aid and abet such unlicensed behavior. There are administrative penalties for such
actively, but not criminal.
Section 4:
The Florida Insurance Code does not specifically prohibit the use of the names “Medicare” or “Medicaid” in the
names of insurance agencies. Insurance agencies routinely attempt to create business names which could confuse
vulnerable consumers as to the true nature of the entity.
Section 5:
The Florida Insurance Code does not clearly require licensed agents, adjusters, agencies, etc., to maintain the
privacy of a consumer’s financial and medical information. Often when agencies close they toss their old files into
a dumpster for anyone to find.
Current Florida law also does not provide for administrative action when a person violates Federal Trade
Communication laws regarding solicitation. Initiating telephone solicitations after 9:00 p.m. or before 8:00 a.m. is
a violation of the Federal Trade Communication laws, but this does not exist in Florida Statute, and is therefore
not enforceable under the Florida Insurance Code.
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2020 DFS Bill Analysis
Section 6, 7, 8, and 17:
No new industrial life insurance has been written in the past year and only 38 of the 398 active life insurers
maintain existing policies of this type.
Section 9:
Most insurance agent license types allow for an up to 2-year suspension for violations of the Florida Insurance
Code, but the title insurance agent license only allows for a 1-year suspension. Protecting consumers from bad
actors is an important reason that the 2-year suspension is in place for other license types. This also puts the
licensee in a difficult situation, disallowing sufficient time to renew the suspended license.
Section 10:
Following disasters like Hurricane Michael, electrical power, cellular communication, and access to the internet
can be affected for days, in some cases longer, exacerbating homeowners’ feelings of helplessness. After these
disasters, Pubic Adjusters (PA) will often solicit the affected area, promising homeowners expedited, and larger
claim settlements. In addition, PA’s will attempt to place as many policyholders as possible under contract, as
quickly as possible, before competing PA’s can do so. This practice often results in a PA, or PA firm contracting
with more policyholders than he/she/it has the capacity to service. This results in delayed resolutions for claims,
which also occur when the PA’s damage repair estimate is exaggerated, or includes damage not related to the
actual claim. Similarly, homeowners’ insurance claims may be delayed when the PA unilaterally engages the
services of an attorney and litigation is initiated. While the attorney and PA’s priorities may involve the
maximization of a settlement, regardless of the length of time required, the homeowner remains displaced, and
may be unable to return to his/her home for months, or perhaps years.
Currently, once a homeowner enters into a contract with a PA, they have 5 days to cancel a public adjuster’s
contract without penalty. This time is insufficient and has resulted in numerous consumer complaints to Consumer
Services. During the period June 1, 2017 to July 19, 2019, Consumer Services received 526 consumer complaints
involving Public Adjusters. Of those complaints, 216 justified the initiation of regulatory inquiries, resulting in the
referral of 80 Notice of Issues (NOI) to the Division of Insurance Agent & Agency Investigations. Those NOIs
represented cases where an alleged violation of statute or administrative code occurred. Many of the remaining
complaints involved issues related to the subjects of this legislation, however in the absence of applicable statute,
this Division was unable to provide definitive assistance to the consumer.
Section 11:
Current Florida law requires a notice to consumers that their insurance policy is being offered by a surplus lines
insurer on commercial risks, but the notice is not required for personal risks. Currently, the first time a personal
lines insured might learn their insurance has been exported is after the export has already occurred.
Section 12:
Some property insurance companies have engaged in a practice where they effectuate policies without the
knowledge, or authorization of the insured. Assuming the policyholder becomes aware of the replacement policy
in a timely manner, he/she must invest a significant amount of time and effort to terminate the unwanted policy,
and renew the policy provided by their current insurer. If the policyholder does not discover that a replacement
policy has been effectuated, they may be unable to reinstate the policy with their former, preferred insurer.
Section 13:
DFS currently offers free financial literacy programs and maintains a toll-free Insurance Consumer Helpline
telephone number and website to assist consumers with insurance questions, concerns, and complaints.
Section 15 and 18:
There is current confusion existing with the terms “agent” to “representative” in the terminology.
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2020 DFS Bill Analysis
Currently, insurers are not required to grant the agent-of-record access to claims information, harming the agents
ability to answer basic status questions from their customers about claims.
Section 16:
Currently, a policy holder purchases a policy to protect their home and renews the policy every year by paying the
established premium. Typically, a policy holder will not review or make changes to the policy and there is nothing
that triggers the policy holder to question the coverage purchased. After Hurricane Irma, while assisting Florida
residents, it was discovered that many policy holders did not have knowledge of their coverage or the steps to
take if a Hurricane damaged their home.
Section 19:
Currently, surplus lines insurers based outside this state can require policy holders of property insurance to travel
outside of the State of Florida to settle litigation, arbitration, or mediation.
Section 20:
There is currently no requirement for insurance companies to notify policyholders if/when there is a change in
company adjusters. Policyholders are oftentimes subjected to delays in the claim handling process due to the
change, which is beyond their control. Policyholders who are involved in the insurance claims process are
oftentimes assigned several company adjusters without notice from the insurance company. The change in
adjusters typically causes a delay in the claims process, resulting in the consumer having to restart the process
with the new adjuster, and potentially resubmit documentation, etc.
Section 21:
Within the Florida Insurance Guaranty Association statute, there is a punitive deductible requirement of $100 that
homeowners are required to pay upon receivership of their insurer.
Section 23-28:
More than 350 licensed claimant’s representatives are registered with the Department to gain access to the
Department’s unclaimed property database, and to seek authorizations from claimants to file claims on their
behalf for unclaimed property held by the Department. Each registrant who files claims utilizes a unique, different
“limited power of attorney” (LPOA) through which claimants provide authorization to the registrant. No two
LPOA’s are identical. While all are different, the majority contain language similar to the following:
“I hereby authorize ZYZ Associates to file a claim on my behalf for the unclaimed property accounts listed and to
receive the fee I authorize.” Many also include logos and credential references. The Department’s claims analysts
are required to accurately read, understand and process all documents for each claim, including all LPOA.
In addition to the example above, some registrants present to claimant’s a LPOA that utilizes a high volume of
words and legal-type phrases, and subtitles such as “representation agreement, assignment, assignment of
interest, recovery agreement.” “Contract” is prominently used. These documents include irrevocable clauses and
stipulations such as “assignment of interest and rights; irrevocable assignments; exclusivity provisions;
requirements for the claimant to act upon all requests of the registrant; venue and attorney fee provisions; and
some that provide that if the claimant fails to act, the registrant can claim their ‘assigned property’ separate from
the claimant.” In some cases, electronic contracts have been sent to claimants for electronic signatures, followed
by a document to be physically signed by the claimant and returned to the registrant, which is then filed with the
claim. In either case, if a claimant subsequently chooses to utilize another registrant’s services, for a lower fee for
example, they may be threatened with legal action.
All fees are capped at 20%, up to $1,000 per account, unless the “Full Disclosure Statement” is provided to the
claimant. The full disclosure states that the property is held by the Department and includes the Department’s
4
2020 DFS Bill Analysis
website address and physical address. If the Full Disclosure Statement is provided, fees are unlimited.
III. EFFECT OF PROPOSED CHANGES
Section 1:
This section would remove a credit reporting agency’s current ability to charge a fee, not to exceed $10.00, to
reissue a unique PIN or provide a new unique PIN to the consumer, stipulating that no charge may be required for
such actions. This will increase the accessibility and feasibility for consumers to place a credit freeze and protect
their identity.
Section 2:
The bill will provide increased specificity as to what a regulated entity must provide to Consumer Services in
response to its written request. Fines for individuals who fail to comply with requests from Consumer Services will
be removed.
Sections 3, 14, and 22:
Changes in these sections will direct that an individual, firm, partnership, corporation, association, or other entity
may not act as an adjusting firm unless it complies with section 626.8696, F.S., with respect to possessing an
adjusting firm license for each place of business in which it engages in activity that may only be performed by a
licensed adjuster. A licensed adjuster conducting business in his/her own name and not employing or appointing
other licensees is exempt from the adjusting firm licensing requirements. As to branch locations, if the branch
complies with the specific provisions of the section, which are similar to those of a branch insurance agency, the
branch need not be individually licensed. If an adjusting firm is required to be licensed, but fails to file an
application for licensure, the Department must impose an administrative penalty of up to $10,000.00. Finally, the
bill deletes obsolete language regarding the conversion of agency registrations to agency licenses on October 1,
2015 and criminalizes the act of aiding or abetting an unlicensed individual in transacting insurance or otherwise
engaging in insurance activities. The bill will also criminalize the aiding or abetting of an unlicensed person who
engages in activities which require licensure as a bail bond agent or temporary bail bond agent.
Section 4:
Under section 626.602, F.S., insurance agency names may not include the words “Medicare” or “Medicaid”. The
bill does permit insurance agencies that are licensed on July 1, 2020, which have names incorporating either of
those words to continue to use that name until the agency license expires or is suspended or revoked.
Section 5:
This section will amend section 626.621, F.S., to expand those acts which constitute grounds for licensure
sanctions to include permitting the personal financial or medical information of a consumer to be made available
or accessible to the general public, regardless of the format in which the records are stored, or initiating in-person
or telephone solicitation after 9:00 p.m. or before 8:00 a.m., unless requested by the prospective customer.
Sections 6, 7, 8, and 17:
The changes in sections 626.782, 626.783, F.S., and the repeal of section 626.796, F.S., will prohibit the sale of
industrial life insurance after the effective date of July 1, 2020. Current policies will remain in force according to
policy terms, but no new policies may be written. This law change codifies existing practice of insurers as no such
insurance has been written in the past year and only 38 insurers maintain existing policies of this type. This change
will prevent this outdated product from being re-introduced in the future. The bill will also specify that such an
insurer is one that is writing ordinary class insurance and collecting premiums on existing, previously written
industrial life policies, as defined in section 626.782, F.S.
5
2020 DFS Bill Analysis
Section 9:
The change to amend section 626.8443, F.S., increases the maximum duration of suspension of a title agent’s or
agency’s license from 1 year to 2 years. This change is consistent with other license types, ensures consumer
protection, and allows more time for the licensee to renew their suspended license. Further, the change will bring
better consistency to the insurance code and department enforcement actions.
Section 10:
The bill will amend section 626.854, F.S., increasing the period during which an insured or claimant may cancel a
public adjuster’s contract without penalty or obligation from 3 business days, to 7 calendar days after the date
upon which the contract was signed or the date the insured notified the insurer of the claim, whichever is later.
The period during which an insured or claimant may cancel a public adjuster’s contract without penalty or
obligation during a state of emergency declared by the Governor and throughout the 1-year period following the
date of loss is increased from 5 business days, to 30 calendar days after the date upon which the contract was
signed or the date the insured notified the insurer of the claim, whichever is later.
Section 11:
As commercial risk notice are already provided, this section would require personal risk notice to consumers that
their insurance policy is being offered by a surplus lines insurer. Section 626.916, F.S., will now include an
additional condition that must be met to export a policy, specifically the signing of a disclosure which states, “You
are agreeing to place coverage in the surplus lines market. Superior coverage may be available in the admitted
market and at a lesser cost. Persons insured by surplus lines carriers are not protected under the Florida Insurance
Guaranty Act with respect to any right of recovery for the obligation of an insolvent unlicensed insurer.”
Section 12:
This section will amend section 626.9541, F.S., prohibiting the practice of initiating an insurance policy without the
knowledge and consent of the policyholder. The changes will expand the definition of “Sliding” to include
“Initiating, effectuating, binding, or otherwise issuing a policy of insurance without the prior informed consent of
the owner of the property to be insured”, or “Mailing, transmitting, or otherwise submitting by any means an
invoice for premium payment to a mortgagee or escrow agent, for the purpose of effecting an insurance policy,
without the prior informed consent of the owner of the property to be insured.”
Section 13:
This section will now require companies informing an applicant or insured that a credit report or score is being
requested for underwriting or rating purposes, a specific notification must be provided to the consumer stating
that the DFS offers free financial literacy programs, and that provides the Department’s toll-free Insurance
Consumer Helpline telephone number and website.
Sections 15 and 18:
The bill stipulates that a licensed adjuster conducting a physical inspection of a property on behalf of an insurer
must provide the policyholder with his/her name, license number and contact information; that an unedited copy
of any report received by the insurer, which was produced by the licensed adjuster based upon the physical
inspection of the property, must be provided to the policyholder within 7 days after receipt; that if the insurer
assigns the claim to a different adjuster after receipt of the report produced by the adjuster that completed the
physical inspection of the property, the insurer must provide the policyholder with the name, license number, and
contact information of the new adjuster within 7 days of the change. Any subsequent change of handling adjuster
must be handled in the same manner.
The legislation dictates that an insurer must establish a process by which the agent of record for an insurance
policy has access to the information provided to the policyholder, in order to assist the agent in answering the
policyholder’s claim-related questions, and that any partial or preliminary estimate of damage or claim settlement
6
2020 DFS Bill Analysis
payment issued by the insurer be accompanied by a statement which indicates that the damage estimate is the
insurer’s current evaluation of the loss, and may be revised as its evaluation continues, or in the case of a partial
payment, that the insurer is continuing its evaluation of the claim, and additional payments may follow.
Statements in either event must conclude with a request that the policyholder contact the insurer if the insured
has any questions, concerns, or additional information to provide. Finally, the act provides that the entire section
applies to surplus lines insurers and insurance.
The bill also amends section 627.062, F.S., correcting the referenced subsection in 627.70131, F.S.
Section 16:
The changes to section 627.421, F.S., will require that personal lines residential property insurers deliver a
notification to all policyholders during the period March 3-April 2 each year via mail or email which includes the
Homeowner Claims Bill of Rights and outlines the hurricane coverage provided by the policy, including the
hurricane deductible and coverage exclusions.
Section 19:
The bill will create section 627.7031, F.S., stating that any property insurance policy sold in the state after July 1,
2020 may not require that an insured pursue dispute resolution outside of the state, specifically through litigation,
arbitration, or mediation. The section applies to surplus lines insurers and insurance.
Section 20:
The Homeowner Claims Bill of Rights is amended (section 627.7142, F.S.), adding the foregoing amendment to
section 627.70131, F.S., specifically stating that the policyholder is entitled to receive notification within 7 days
when there is a change of the assigned company adjuster, including the adjuster’s contact information. The bill
also incorporates an explanation of when interest is due on a claim, based on an insurer’s failure to comply with
the provisions of section 627.70131(5), F.S.
Section 21:
This section amends section 631.57, F.S., so that policy holders would no longer be required to pay the $100.00
deductible from claims paid by the Florida Insurance Guaranty Association.
Sections 23-29:
These sections will amend statutes of the Division of Unclaimed Property within the Department. Sections
717.124, F.S., 717.12404, F.S., 717.1315, F.S., 717.1322, F.S., and 717.135, F.S., will be amended, and 717.1351,
F.S., shall be repealed.
The changes will result in a uniform “recovery agreement” which will continue to be the “claimant’s authorization”
to act on his or her behalf to file a claim and receive a fee. The unified form will be simplified, though significantly
similar to the various LPOA currently utilized by registrants to file more than 90% of the claims filed by registered
claimant’s representatives. Such a form will be far more claimant friendly, and will protect consumers.
Additionally, the changes will create a more level playing field among registered claimant’s representatives.
The uniform form is a key element in the Department’s ongoing efficiency efforts. Varying fee caps and exceptions
thereof will be replaced with a flat maximum that will be more consumer friendly and more easy and efficient for
analysts to review and apply. The bill sets forth the required content of the forms and directs that only the
foregoing forms may be utilized in the collection, sale, or purchase of unclaimed property.
References to certain power of attorney and similar documents will be removed and replaced with references to
the Florida Uniform Unclaimed Property Recovery Agreement and/or the Florida Uniform Property Purchase
Agreement.
7
2020 DFS Bill Analysis
Section 29:
The act will take effect upon becoming law.
IV. DOES THE BILL DIRECT OR ALLOW THE DEPARTMENT TO DEVELOP, ADOPT, OR ELIMINATE RULES,
REGULATIONS, POLICIES, OR PROCEDURES? Y☒ N☐
If yes, explain: The Division of Unclaimed Property appears to be required to promulgate two
new forms for use in the collection, purchase and sale of unclaimed property.
Is the change consistent
with the agency’s core Y☒ N☐
mission?
Rule(s) impacted (provide
references to F.A.C.):
V. DOES THE BILL REQUIRE REPORTS OR STUDIES? Y☐ N☒
If yes, provide a
description:
Date Due:
Bill Section Number(s):
VI. DOES THE BILL REQUIRE APPOINTMENTS OR MODIFY EXISTING BOARDS, TASK FORCES, COUNCILS,
COMMISSIONS, ETC.? Y☐ N☒
Board:
Board Purpose:
Who Appoints:
Changes:
Bill Section Number(s):
FISCAL ANALYSIS
I. DOES THE BILL HAVE A FISCAL IMPACT TO LOCAL GOVERNMENT? Y☐ N☒
Revenues:
Expenditures:
8
2020 DFS Bill Analysis
II. DOES THE BILL HAVE A FISCAL IMPACT TO STATE GOVERNMENT? Y☐ N☒
Revenues:
Expenditures:
Does the legislation contain
a State Government
appropriation?
If yes, was this
appropriated last year?
III. DOES THE BILL HAVE A FISCAL IMPACT TO THE PRIVATE SECTOR? Y☒ N☐
Revenues: Consumer reporting agencies will not be permitted to charge a nominal fee
for providing certain services.
Expenditures: Property insurers will be required to issue the Homeowner Claims Bill of
Rights to all policyholders annually either by mail or email.
Other: The bill will result in some individual Florida residents and businesses
receiving more of their unclaimed property. The bill will result in some
registered claimant’s representatives receiving a lower fee from some of their
individual claims.
IV. DOES THE BILL INCREASE OR DECREASE TAXES, FEES, OR FINES? Y☒ N☐
If yes, explain impact. Administrative fines could potentially increase for violations of section
624.307, F.S., and section 626.112, F.S.
Bill Section Number:
TECHNOLOGY IMPACT
I. DOES THE BILL IMPACT THE DEPARTMENT’S TECHNOLOGY SYSTEMS (I.E., IT SUPPORT, LICENSING SOFTWARE,
DATA STORAGE, ETC.)? Y☐ N☒
If yes, describe the
anticipated impact to the
agency including any fiscal
impact.
FEDERAL IMPACT
I. DOES THE BILL HAVE A FEDERAL IMPACT (I.E., FEDERAL COMPLIANCE, FEDERAL FUNDING, FEDERAL AGENCY
INVOLVEMENT, ETC.)? Y☐ N☒
If yes, describe the
anticipated impact
including any fiscal impact.
9
2020 DFS Bill Analysis
ADDITIONAL COMMENTS
LEGAL - GENERAL COUNSEL’S OFFICE REVIEW
Issues/concerns/comments: Rules:
Section 27 of the proposed legislation requires the Department to promulgate
a new rule(s) adopting two new forms related to claims filed by a claimant’s
representative for unclaimed property. Other than section 27, the proposed
legislation does not require the Department to promulgate a new rule, amend
an existing rule, or eliminate an existing rule.
10
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
1-2 2-®Z
Meeting Date
|?,
Bill Number (if applicable)
Topic _ ex CoTC cnorf Amendment Barcode (if applicable)
Name 1 ve G si - r P iPlft
Job Title rs <3> rT T
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Address ; VO UO -g- TL(e Phone 3 *>2 [ %
Street
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I L 5 01 Email Ti c @ l (LOfC
City ~ i State Zip
Speaking: For [ZlAgainst I I Information Waive Speaking: PI In Support | Against
(The Chair will read this information into the record.)
dV
Representing T>I ( ecu uci/f f- 9o jlpiwre g'
Appearing at request of Chair: [jYes[i|No Lobbyist registered with Legislature: I lYesF No
l/l//7//e it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
S
Meeting Date Bill Number (if applicable)
Topic >? - /svJcxJ-?t Amendment Barcode (if applicable)
Name //FSl&L
Job Title
Address 2 Phone ¦ / T J
Street
SZJff Email
City ** State Zip
Speaking: For 1 1 A ainst 1 1 Information Waive Speaking: P fln Support 1 1 A ainst
(The Chair will read this information into the record.)
Representing
Appearing at request of Chair: Q Yes Q No Lobbyist registered with Legislature: OYes Q No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
APPEARANCE RECORD
i& (Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
s
Meeting Date Bill Number (if applicable)
c r LcJr\ \ Amendment Barcode (if applicable)
Name J iw\wsij ?d vfYMS, J .
f
Job Title CWi'eT f" I yi 121 BJB\ c t-y
Address iJ, (B -B& Phone Bf?/ B/3 - o
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(d (} d hd6 L B 2.3 1 Email B h ¦* @
City State Zip i l CfQ , c c
Speaking: _>£_ For dl Against I I Information Waive Speaking: In Support I I A ainst
(The Chair will read this information into the record.)
Representing \YDif\ i ;
Appearing at request of Chair: Yes No Lobbyist registered with Legislature: I Ives x No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
APPEARANCE RECORD
/- % 2C>
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
mi
Meeting Date Bill Number (if applicable)
Topic Amendment Barcode (if applicable)
Name
Job Title
Address ( 7 Phone
Street
t Email
City State Zip
Speaking: O For Q Against [ nformation Waive Speaking: Q In Support | | Against
(The Chair will read this information into the record.)
Representing
Appearing at request of Chair: Q Yes Ty©
Lobbyist registered with Legislature: | i Yes No
White it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1140
INTRODUCER: Senator Gruters
SUBJECT: Public Accountancy
DATE: January 27, 2020 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Oxamendi Imhof IT Favorable
2. Reeve McKay CM Pre-meeting
3. RC
I. Summary:
SB 1140 permits a nonresident Florida-licensed certified public accountant (CPA) to renew his
or her license if the CPA has complied with the continuing education requirements in the state in
which his or her office is located. However, a nonresident CPA must satisfy Florida’s ethics-
related continuing education requirements. If the state in which the nonresident CPA’s office is
located does not have continuing education requirements as a condition for license renewal, the
nonresident CPA must comply with the continuing education requirements in Florida.
The bill permits a CPA to place his or her license in a retired status. If a licensee on retired status
reenters the workforce in a position that has an association with accounting or any of the CPA
services, the licensee automatically loses her or his retired status. A retired CPA may continue to
be engaged in specific activities but may not offer professional services that require the use of
the CPA title. A retired CPA may reactivate her or his license in a conditional manner
determined by the Florida Board of Accountancy, which must require the payment of fees and
the completion of any required continuing education.
The bill takes effect July 1, 2020.
II. Present Situation:
Certified Public Accountants
The Florida Board of Accountancy (board) within the Department of Business and Professional
Regulation (DBPR) is responsible for regulating and licensing the more than 38,000 active and
2,700 inactive CPAs and more than 5,700 accounting firms in Florida.1 The Division of Certified
1
Florida Department of Business and Professional Regulation, Fiscal Year 2018-2019 Annual Report, 12, available at
http://www.myfloridalicense.com/DBPR/os/documents/DivisionAnnualReport_FY1819.pdf (last visited Jan. 27, 2020).
BILL: SB 1140 Page 2
Public Accounting provides administrative support to the nine-member board, which consists of
seven CPAs and two laypersons.2
A certified public accountant is an individual who holds a license to practice public accounting
in this state under ch. 473, F.S., or an individual who is practicing public accounting in this state
pursuant to the practice privilege granted in s. 473.3141, F.S.3
The practice of public accounting includes offering to the public the performance of services
involving audits, reviews, compilations, tax preparation, management advisory or consulting
services, or preparation of financial statements.4 To engage in the practice of public accounting,5
an individual or firm must be licensed pursuant to ss. 473.308 or 473.3101, F.S., and business
entities must meet the requirements of s. 473.309, F.S.
CPA Licensing
Section 473.308, F.S., provides licensing requirements for CPAs. To be licensed as a certified
public accountant, a person must be of good moral character, pass the licensure exam, and have
at least 150 semester hours of education with a focus on accounting and business.6 CPA licenses
must be renewed on a biennial basis through procedures adopted by the DBPR.7
License by Endorsement
Individuals who are licensed as a CPA in another state or territory, as well as individuals who are
not licensed in another state or territory but have met certain requirements, may apply to the
board for licensure by endorsement.8 If the applicant is not licensed and has never been licensed
in another state or territory, the applicant must:9
Meet the education, work experience, and good moral character requirements;
Have passed a national, regional, state, or territorial licensing examination that is
substantially equivalent to the examination required by s. 473.306, F.S.; and
Have completed continuing professional education courses that are at least equivalent to the
continuing professional education requirements for a Florida CPA during the 2 years
immediately preceding the application for licensure by endorsement.
If the applicant is licensed in another state or territory, the applicant must:10
Have satisfied licensing criteria that were substantially equivalent to the licensure criteria in
Florida at the time the license was issued; or
2
Section 473.303, F.S.
3
See s. 473.302(4), F.S. Section 473.3141, F.S., permits a person who does not have an office in Florida to practice public
accountancy in this state without obtaining a license under ch. 473, F.S., notifying or registering with the board, or paying a
fee if the person meets the required criteria.
4
Section 473.302(8), F.S.
5
Section 473.302(8), F.S., defines the terms “practice of,” practicing public accountancy,” and “public accounting”
6
Sections 473.308(2)-(5), F.S.
7
Section 473.311(2), F.S.
8
Section 473.308(7), F.S.
9
Section 473.308(7)(a), F.S.
10
Section 473.308(7)(b), F.S.
BILL: SB 1140 Page 3
Have passed a national, regional, state or territorial licensing examination with examination
criteria that were substantially equivalent to the examination criteria required in this state and
meet the education, work experience, and good moral character requirements, if the criteria
for issuance of such a license were not substantially equivalent to Florida’s criteria; or
Have held a valid license in another state or territory for at least 10 years before applying for
a license in Florida, have passed a national, regional, state or territorial licensing examination
with examination criteria that were substantially equivalent to the examination criteria
required in this state, and meet the education, work experience, and good moral character
requirements; and
Have completed continuing professional education courses that are at least equivalent to the
continuing professional education requirements for a Florida CPA during the 2 years
immediately preceding the application for licensure by endorsement.
Continuing Education
CPAs, as part of the license renewal procedure, are required to submit proof satisfactory to the
board that, during the 2 years prior to the application for renewal, they have successfully
completed not less than 48 or more than 80 hours of continuing professional education programs
in public accounting subjects approved by the board. The board has the authority to prescribe by
rule additional continuing professional education hours, not to exceed 25 percent of the total
hours required, for failure to complete the hours required for renewal by the end of the
reestablishment period.11
Not less than 10 percent of the total continuing education hours required by the board shall be in
accounting-related and auditing-related subjects, as distinguished from federal and local taxation
matters and management services.12
Not less than five percent of the continuing education shall be in ethics applicable to the practice
of public accounting, including a review of the provisions of ch. 455, F.S., relating to the
regulations of businesses and professions, ch. 473, F.S., and the related administrative rules. This
requirement must be administered by providers approved by the board.
Inactive Licenses
Section 473.313(1), F.S., permits Florida-licensed CPAs to request that their license be placed on
inactive status. Licenses can also be placed on inactive status for failing to complete, or failure to
report completion of, the continuing education requirements. Section 473.313(2), F.S., authorizes
the board to adopt rules establishing fees for placing a license on inactive status, renewal of
inactive status, and reactivation of an inactive license.13
A CPA may reactivate an inactive license by paying the DPBR a $250 application fee14 and
receiving certification that the CPA has completed the education requirements.15
11
Section 473.312(1)(a), F.S.
12
Section 473.312(1)(b), F.S.
13
See Fla. Admin. Code R. 61H1-33.006 (2019).
14
Fla Admin. Code R. 61H1-31.006 (2019).
15
Section 473.313(2), F.S.
BILL: SB 1140 Page 4
If a license that was placed on inactive status for failure to report completed continuing
education requirements is inactive on January 1, the applicant must submit a complete
application to the board by March 15 immediately after the delinquent period.16
III. Effect of Proposed Changes:
Licensure by Endorsement
The bill amends s. 473.308(7)(a)1., F.S., referring to applicants for licensure by endorsement
who are not licensed in another state, to change the term “another” state to “any” state. The bill
does not make the same change throughout s. 473.308, F.S., where the term “another” state is
used in several instances.
As amended by the bill, s. 473.308(7)(a)1., F.S., appears to refer to persons who have not been
licensed as a CPA in any state, including Florida, instead of persons who have not been licensed
in any state aside from Florida. This change in language would prevent a previously-licensed
Florida CPA from using the licensure by endorsement process to regain a license.
Continuing Education
The bill creates s. 473.311(1)(b), F.S., permitting a nonresident licensee seeking a renewal of his
or her Florida license to comply with the continuing education requirements of the state in which
his or her office is located. Under the bill, a licensee must still complete no less than 5 percent of
the total continuing education hours required in ethics applicable to public accounting as
administered by providers approved by the board.
The nonresident licensee must comply with all of Florida’s continuing education requirements if
the state in which the nonresident licensee’s office is located does not have continuing education
requirements as a condition for license renewal.
The bill also amends s. 473.312(1)(c), F.S., to require that a majority of the continuing education
hours in ethics include a review of the provisions of the provisions of ch. 455, F.S., relating to
the regulations of businesses and professions, ch. 473, F.S., and the related administrative rules.
Retired Status
Under current law, a CPA licensed in Florida is not permitted to place his or license in a retired
status. The bill amends s. 473.313, F.S., to permit a Florida-licensed CPA to submit an
application to the DBPR to place his or her license in a retired status if the licensee:
Is at least 55 years of age;
Holds a current active or inactive license; and
Is in good standing and not the subject of any sanction or disciplinary action.
Under the bill, a licensee in retired status that reenters the workforce in a position associated with
accounting, or any related services defined in ss. 473.302(8)(a), (c), and (d), F.S., automatically
loses his or her retired status. A CPA on retired status may continue to provide services utilizing
16
Section 473.313(3), F.S.
BILL: SB 1140 Page 5
accounting skills, as well as tax, management advisory, or consulting services, as defined in s.
473.302(8)(b), F.S., but may not provide certain accounting services that involve expressing an
opinion on or preparing financial statements, as defined in ss. 473.302(8)(a), (c), and (d), F.S.
Retired licensees are permitted to use the title of “retired CPA” but may not offer or render
professional services that require her or his signature and use of the CPA title, regardless of
whether the word “retired” is attached to such title.
The bill authorizes a retired licensee to serve without compensation on a board of directors or
board of trustees, provide volunteer tax preparation services, participate in a government-
sponsored business mentoring program, and participate in an advisory role for a similar
charitable, civic, or nonprofit organizations. A retired licensee may accept routine reimbursement
for actual costs of travel and meals associated with volunteer services or de minimis per diem
amounts paid to the retired licensee to cover such expenses as allowed by law.
Retired licensees are not required to maintain the continuing education requirements set forth in
ch. 473, F.S.
A retired licensee must affirm in writing his or her understanding of the limited types of
activities in which he or she may engage while in retired status and that he or she has a
professional duty to ensure that he or she holds the professional competencies necessary to
participate in such activities.
A retired licensee may reactivate his or her license in a conditional manner determined by the
board, which must require the payment of fees and the completion of any required continuing
education.
Effective Date
The bill takes effect July 1, 2020.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
BILL: SB 1140 Page 6
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
Section 19(a), Article VII of the State Constitution limits the authority of the legislature
to enact legislation that imposes a new state tax or fee by requiring such legislation to be
approved by a 2/3 vote in each chamber of the legislature. Section 19(e), Article VII of
the Florida Constitution provides that a state tax or fee imposed, authorized, or raised
must be contained in a separate bill that contains no other subject.
SB 1140 permits a licensed CPA in retired status to reactivate his or her license in a
conditional manner determined by the Florida Board of Accountancy. The bill requires
that the conditions for the reactivation of a license in retired status must include the
payment of fees. The board currently has the authority to impose a fee for the reactivation
of an inactive license. Because the bill requires the board to impose a fee of an unknown
amount for the reactivation of a license in retired status, it is unclear if the voting and
separate bill requirements found in the State Constitution apply to the bill.
B. Private Sector Impact:
Retired CPAs wishing to reactivate their licenses will be subject to reactivation fees in an
amount determined by the board.
C. Government Sector Impact:
The DBPR has stated that the technological modifications required to administer the bill
can be made with existing resources. Other potential expenditures required by the DBPR
are indeterminate but expected to be accommodated with existing resources.
The Revenue Estimating Conference has not yet met regarding the bill.
VI. Technical Deficiencies:
None.
VII. Related Issues:
The bill creates s. 473.311(1)(b), F.S., permitting a nonresident licensee seeking a renewal of his
or her Florida license to comply with the continuing education requirements of the state in which
his or her office is located. It is unclear if these new provisions are intended to apply to territories
as well as states. Existing provisions governing the renewal of CPA licenses in ch. 473, F.S.,
refer to other states and territories.
BILL: SB 1140 Page 7
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 473.308, 473.311,
473.312, and 473.313.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2020 SB 1140 Florida Senate - 2020 SB 1140
By Senator Gruters
23-01202A-20 20201140__ 23-01202A-20 20201140__
1 A bill to be entitled 30 endorsement an applicant who:
2 An act relating to public accountancy; amending s. 31 (a)1. Is not licensed and has not been licensed in any
3 473.308, F.S.; requiring certain applicants to not be 32 another state or territory and who has met the requirements of
4 licensed in any state or territory in order to be 33 this section for education, work experience, and good moral
5 licensed by endorsement; amending s. 473.311, F.S.; 34 character and has passed a national, regional, state, or
6 providing license renewal requirements for nonresident 35 territorial licensing examination that is substantially
7 licensees; amending s. 473.312, F.S.; requiring that a 36 equivalent to the examination required by s. 473.306; and
8 majority of the hours required for continuing 37 2. Has completed such continuing education courses as the
9 education include specific content; amending s. 38 board deems appropriate, within the limits for each applicable
10 473.313, F.S.; authorizing certain Florida certified 39 2-year period as set forth in s. 473.312, but at least such
11 public accountants to apply to the Department of 40 courses as are equivalent to the continuing education
12 Business and Professional Regulation to have their 41 requirements for a Florida certified public accountant licensed
13 license placed in a retired status; providing 42 in this state during the 2 years immediately preceding her or
14 requirements for such conversion; providing 43 his application for licensure by endorsement; or
15 requirements and prohibitions for retired licensees; 44 (b)1.a. Holds a valid license to practice public accounting
16 authorizing retired licensees to use a specified title 45 issued by another state or territory of the United States, if
17 under certain circumstances; providing that retired 46 the criteria for issuance of such license were substantially
18 licensees are not required to maintain continuing 47 equivalent to the licensure criteria that existed in this state
19 education requirements; authorizing retired licensees 48 at the time the license was issued;
20 to reactivate their licenses if certain conditions are 49 b. Holds a valid license to practice public accounting
21 met; defining the term “retired licensee”; providing 50 issued by another state or territory of the United States but
22 an effective date. 51 the criteria for issuance of such license did not meet the
23 52 requirements of sub-subparagraph a.; has met the requirements of
24 Be It Enacted by the Legislature of the State of Florida: 53 this section for education, work experience, and good moral
25 54 character; and has passed a national, regional, state, or
26 Section 1. Subsection (7) of section 473.308, Florida 55 territorial licensing examination that is substantially
27 Statutes, is amended to read: 56 equivalent to the examination required by s. 473.306; or
28 473.308 Licensure.— 57 c. Holds a valid license to practice public accounting
29 (7) The board shall certify as qualified for a license by 58 issued by another state or territory of the United States for at
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Florida Senate - 2020 SB 1140 Florida Senate - 2020 SB 1140
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59 least 10 years before the date of application; has passed a 88 473.312, Florida Statutes, is amended to read:
60 national, regional, state, or territorial licensing examination 89 473.312 Continuing education.—
61 that is substantially equivalent to the examination required by 90 (1)
62 s. 473.306; and has met the requirements of this section for 91 (c) Not less than 5 percent of the total hours required by
63 good moral character; and 92 the board shall be in ethics applicable to the practice of
64 2. Has completed continuing education courses that are 93 public accounting. This requirement shall be administered by
65 equivalent to the continuing education requirements for a 94 providers approved by the board and a majority of the hours
66 Florida certified public accountant licensed in this state 95 shall include a review of the provisions of chapter 455 and this
67 during the 2 years immediately preceding her or his application 96 chapter and the related administrative rules.
68 for licensure by endorsement. 97 Section 4. Section 473.313, Florida Statutes, is amended to
69 Section 2. Subsection (1) of section 473.311, Florida 98 read:
70 Statutes, is amended to read: 99 473.313 Inactive status and retired status.—
71 473.311 Renewal of license.— 100 (1) A Florida certified public accountant may request that
72 (1)(a) The department shall renew a license issued under s. 101 her or his license be placed in an inactive status by making
73 473.308 upon receipt of the renewal application and fee and upon 102 application to the department. The board may prescribe by rule
74 certification by the board that the Florida certified public 103 fees for placing a license on inactive status, renewal of
75 accountant has satisfactorily completed the continuing education 104 inactive status, and reactivation of an inactive license.
76 requirements of s. 473.312. 105 (a)(2) A license that has become inactive under this
77 (b) A nonresident licensee seeking renewal of a license in 106 subsection (1) or for failure to complete the requirements in s.
78 this state shall be determined to have met the continuing 107 473.312 may be reactivated under s. 473.311 upon application to
79 education requirements in s. 473.312, except for the 108 the department. The board may prescribe by rule continuing
80 requirements in s. 473.312(1)(c), if the licensee has complied 109 education requirements as a condition of reactivating a license.
81 with the continuing education requirements applicable in the 110 The maximum continuing education requirements for reactivating a
82 state in which his or her office is located. If the state in 111 license are 120 hours, including at least 30 hours in
83 which the nonresident licensee’s office is located has no 112 accounting-related and auditing-related subjects, not more than
84 continuing education requirements for license renewals, the 113 30 hours in behavioral subjects, and a minimum of 8 hours in
85 nonresident licensee must comply with the continuing education 114 ethics subjects approved by the board, for the reactivation of a
86 requirements in s. 473.312. 115 license that is inactive or delinquent.
87 Section 3. Paragraph (c) of subsection (1) of section 116 (b)(3) A license that is delinquent for failure to report
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117 completion of the requirements in s. 473.312 may be reactivated 146 license under this chapter may apply to the department for her
118 under s. 473.311 upon application to the department. 147 or his license to be placed in a retired status. The application
119 Reactivation requires the payment of an application fee as 148 must be prescribed by the board and must state that the
120 determined by the board and certification by the Florida 149 applicant has no association with accounting or any of the
121 certified public accountant that the applicant satisfactorily 150 services described in s. 473.302(8)(a), (c), or (d). If a
122 completed the continuing education requirements set forth under 151 licensee who has been granted retired status reenters the
123 s. 473.311. If the license is delinquent on January 1 because of 152 workforce in a position that has an association with accounting
124 failure to report completed continuing education requirements, 153 or any of the services described in s. 473.302(8)(a), (c), or
125 the applicant must submit a complete application to the board by 154 (d), the licensee automatically loses her or his retired status
126 March 15 immediately after the delinquent period. 155 except as provided in paragraph (a).
127 (c)(4) Any Florida certified public accountant holding an 156 (a) A retired licensee who serves without compensation on a
128 inactive license may be permitted to reactivate such license in 157 board of directors or board of trustees, provides volunteer tax
129 a conditional manner. The conditions of reactivation shall 158 preparation services, participates in a government-sponsored
130 require the payment of fees and the completion of required 159 business mentoring program such as the Internal Revenue
131 continuing education. 160 Service’s Volunteer Income Tax Assistance program or the Small
132 (d)(5) Notwithstanding the provisions of s. 455.271, the 161 Business Administration’s SCORE program, or participates in an
133 board may, at its discretion, reinstate the license of an 162 advisory role for a similar charitable, civic, or other
134 individual whose license has become null and void if the 163 nonprofit organization shall continue to be eligible for retired
135 individual has made a good faith effort to comply with this 164 status.
136 section but has failed to comply because of illness or unusual 165 (b) The board shall require a retired licensee to affirm in
137 hardship. The individual shall apply to the board for 166 writing her or his understanding of the limited types of
138 reinstatement in a manner prescribed by rules of the board and 167 activities in which she or he may engage while in retired status
139 shall pay an application fee in an amount determined by rule of 168 and that she or he has a professional duty to ensure that she or
140 the board. The board shall require that the individual meet all 169 he holds the professional competencies necessary to participate
141 continuing education requirements as provided in subsection (2), 170 in such activities.
142 pay appropriate licensing fees, and otherwise be eligible for 171 (c) Licensees may convert their license to retired status
143 renewal of licensure under this chapter. 172 only if they hold a license in good standing and are not the
144 (2) A Florida certified public accountant who is at least 173 subject of any sanction or disciplinary action.
145 55 years of age and currently holds an active or inactive 174 (d) A retired licensee may accept routine reimbursement for
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Florida Senate - 2020 SB 1140
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175 actual costs of travel and meals associated with volunteer
176 services or de minimis per diem amounts paid to the licensee to
177 cover such expenses as allowed by law.
178 (e) A retired licensee may use the title of “retired CPA”
179 on any business card or letterhead or any other printed or
180 electronic document. However, such title must not be applied in
181 such a manner that could confuse the public as to the current
182 status of the licensee. The licensee is not required to have a
183 certificate issued with the word “retired” on the certificate.
184 (f) A retired licensee is not required to maintain the
185 continuing education requirements under s. 473.312.
186 (g) A retired licensee may not offer or render professional
187 services that require her or his signature and use of the CPA
188 title, regardless of whether the word “retired” is attached to
189 such title.
190 (h) A retired licensee may reactivate her or his license in
191 a conditional manner determined by the board. The conditions of
192 reactivation must require the payment of fees and the completion
193 of any required continuing education.
194
195 For the purposes of this subsection, the term “retired licensee”
196 means a licensee whose license has been placed in retired status
197 by the department.
198 Section 5. This act shall take effect July 1, 2020.
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The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1240
INTRODUCER: Senator Gruters
SUBJECT: Corporate Income Tax Credit
DATE: January 27, 2020 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Harmsen McKay CM Pre-meeting
2. FT
3. AP
I. Summary:
SB 1240 grants eligible car rental, leasing, or financing companies a $10 million tax credit
against their Florida corporate taxes paid for the 2018 taxable year. To be eligible for the tax
credit, these companies must have deferred gains on the sale of personal property for corporate
federal income tax purposes under s. 1031 of the Internal Revenue Code during the August 1,
2016-August 1, 2017 taxable year, and incurred a specific rise in tax liability in the August 1,
2017-August 1, 2018 taxable year.
II. Present Situation:
Annual Adoption of the Internal Revenue Code
Florida imposes a 5.5 percent tax on the taxable income of corporations and financial institutions
doing business in Florida.1 A corporation calculates its taxable income for Florida tax purposes
by starting with its taxable income determined for federal tax purposes.2 This means that a
corporation paying taxes in Florida receives the same treatment in Florida as is allowed in
determining its federal taxable income.
Bonus Depreciation
The Internal Revenue Code (IRC, or the Code) allows a taxpayer to deduct the cost of long-term
business assets by deducting a portion of the cost over the useful life of the property
(depreciation).3 Since taxpayers deduct for depreciation in calculating their federal taxable
income, the deduction is already included when the taxpayer begins calculating its Florida
taxable income.
1
Sections 220.11(2) and 220.63(2), F.S.
2
See generally s. 220.13(2), F.S.
3
See generally ss. 167 and 168, IRC.
BILL: SB 1240 Page 2
For the past decade, federal legislation has granted an additional, first-year depreciation
deduction (bonus depreciation).4 The legislation has generally authorized 50 or 100 percent of
the cost of qualifying property to be deducted in the first year of depreciation. Currently, some
level of bonus depreciation is authorized through 2026.
Generally, the entire cost of an asset is depreciable over time. Therefore, bonus depreciation
deductions do not increase the total amount that can be deducted as depreciation; bonus
depreciation merely accelerates the depreciation deduction. That being said, the immediate fiscal
impact of bonus depreciation can substantially reduce corporate income tax receipts in the near
term. As an example, the Revenue Estimating Conference determined that bonus depreciation
granted by the Tax Increase Prevention Act of 2014 would reduce Fiscal Year 2015-2016
General Revenue receipts by $180 million.5
Due to the near term fiscal impact that bonus depreciation deductions would have on Florida, the
Legislature has chosen to “decouple” from these deductions by requiring taxpayers to add back
the amount of bonus depreciation to their taxable income for Florida purposes and then subtract
1/7th of that amount over seven years.6 This treatment has the effect of giving the taxpayer the
benefit of bonus depreciation, but requiring the taxpayer to “spread” that benefit over a 7-year
period.
The following chart provides a list of recent federal acts that have granted bonus depreciation
and the Florida law that “decoupled” from the bonus depreciation provisions.7
Applies to Taxable
Bonus Depreciation Florida Law that
Federal Act Years beginning on or
Amount “Decoupled”
after January 1 of:
The Economic Stimulus Chapter 2008-206,
2008 50 percent
Act of 2008 L.O.F.
The American Recovery
Chapter 2009-192,
and Reinvestment Act of 2009 50 percent
L.O.F.
2009
The Small Business Jobs
2010 100 percent
Act of 2010 Chapter 2011-229,
The Tax Relief, 50 percent L.O.F.
2011
Unemployment Insurance
4
See the Economic Stimulus Act of 2008, Pub. L. No. 110-185; the American Recovery and Reinvestment Act of 2009, Pub.
L. No. 111-5; the Small Business Jobs Act of 2010, Pub. L. No. 111-240; the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010, Pub. L. No. 111-312; the American Taxpayer Relief Act of 2012, Pub. L. No.
112-240; the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295; the Consolidated Appropriations Act, 2016, Pub. L.
No. 114-113; and the Tax Cuts and Jobs Act of 2017, Pub. L. No. 115-97.
5
Revenue Impact Conference Impact Statement, Proposed Language, January 26, 2015, available at:
http://edr.state.fl.us/Content/conferences/revenueimpact/archives/2015/_pdf/page17-18.pdf (last visited Jan. 27, 2020).
6
See chs. 2008-206, 2009-192, 2011-229, 2013-46, 2015-35, 2016-220, and 2018-119, L.O.F.
7
In some instances, the Florida law also decoupled from increased first-year expensing provisions included in the federal act;
however, first-year expensing is not directly relevant to the issue in the bill being analyzed.
BILL: SB 1240 Page 3
Reauthorization, and Job
2012 50 percent
Creation Act of 2010
The American Taxpayer Chapter 2013-46,
2013 50 percent
Relief Act of 2012 L.O.F
The Tax Increase Chapter 2015-35,
2014 50 percent
Prevention Act of 2014 L.O.F.
The Consolidated 2015 50 percent
Chapter 2016-220,
Appropriations Act, 2016 50 percent
L.O.F.
20168 2017 50 percent
2018 100 percent
2019 100 percent
2020 100 percent
2021 100 percent
Tax Cuts and Jobs Act of 2022 100 percent Chapter 2018-119,
2017 2023 80 percent L.O.F.
2024 60 percent
2025 40 percent
2026 20 percent
2027 0 percent
The Tax Cuts and Jobs Act of 2017
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act of 2017
(TCJA).9 The TCJA made significant changes to federal income tax provisions related to
individuals, corporations, and the treatment of foreign income. As shown in the chart above, the
TCJA extended bonus depreciation through taxable years beginning before January 1, 2027.10
Section 1031 Exchanges
Generally, when a taxpayer sells an asset, the Code requires the taxpayer to recognize as income
any gain on the sale.11 One exception to this general recognition rule is provided by section 1031
of the Code, for transactions commonly known as “like-kind exchanges” or “1031 exchanges.”
Prior to the TCJA, s. 1031 of the Code provided that a taxpayer shall not recognize gain or loss
when business property was exchanged for business property of a like kind.12 Thus, a business
that was regularly exchanging old business equipment for new business equipment might avoid
having to recognize any relevant income at the federal level by exchanging the old equipment for
new equipment, rather than selling the old equipment and buying new equipment in separate
transactions. For example, this type of transaction could be used by a rental car company that
8
The Consolidated Appropriations Act, 2016, also provided bonus depreciation amounts for 2018 and 2019 of 40 percent and
30 percent, respectively; however, the Tax Cuts and Jobs Act increased those percentages to 100 percent for both years.
9
Pub. Law No. 115-97 (December 22, 2017)
10
For simplicity, the chart above shows the TCJA’s bonus depreciation provisions as applying to taxable years beginning
January 1, 2018; however, the TCJA also applied its bonus depreciation provisions to qualifying property acquired after
September 27, 2017. See Tax Cuts and Jobs Act of 2017, s. 13201, Pub. L. No. 115-97.
11
See s. 62(a)(3), IRC
12
See s. 1031(a)(1), IRC (2016)
BILL: SB 1240 Page 4
regularly updates its rental fleet.13 So, companies that were using s. 1031 of the Code to avoid
recognizing income when business equipment was exchanged, would not be required to
recognize income at the federal level. When the income was not recognized at the federal level,
that income would likewise not be recognized for Florida tax purposes.
Importantly, the TCJA amended s. 1031 of the Code to limit use of the provision to exchanges of
realty. Therefore, corporations must report any gain or loss as part of their income moving
forward. The effect of losing the ability to use s. 1031 of the Code may be mitigated at the
federal level because the TCJA provides 100 percent bonus depreciation deduction on the new
equipment purchase. For Florida tax purposes, companies are now required to report their
income earned on like-kind exchanges and then “spread” the bonus depreciation amount over
seven years.
III. Effect of Proposed Changes:
The bill creates s. 220.197, F.S., which provides a $10 million credit against the 2018 state
corporate income tax of certain motor vehicle rental, motor vehicle leasing, and motor vehicle
financing companies. A corporation is eligible for a $10 million credit if it deferred gains on the
sale of its personal property assets under s. 1031 of the Internal Revenue Code for the purposes
of federal income tax during its taxable year that began on or after August 1, 2016, but before
August 1, 2017, and it is:
A car rental or leasing company that is classified under NAICS14 industry group code 53211,
that had a final tax liability of more than $15 million for its taxable year beginning on or after
August 1, 2017, and before August 1, 2018. This tax liability must also be at least 700
percent greater than its final tax liability from its prior tax year; or
A car sales financing establishment or car leasing company, classified under NAICS industry
group code 522220 and 532112, respectively, that had a final tax liability of more than $15
million for its taxable year beginning on or after August 1, 2017, and before August 1, 2018.
This tax liability must also be at least $15 million greater than its final tax liability from the
prior tax year.
The bill fixes the NAICS references used in s. 220.197, F.S., to the version published in 2007 by
the Office of Management and Budget, Executive Office of the President.
The bill operates retroactively to January 1, 2018, and takes effect upon becoming law.
13
Gerald Auten, David Joulfaian, and Romen Mookerjee, Recent Trends in Like-kind Exchanges, 1 (August 1, 2017),
available at https://ssrn.com/abstract=3049029 or http://dx.doi.org/10.2139/ssrn.3049029. “Indeed, the most common like-
kind exchanges are now those involving the ‘trade-in’ of vehicles and replacement vehicles and vehicle fleets, e.g., by rental
car companies, farmers, and businesses.”
14
The NAICS is the North American Industry Classification System developed by the Office of Management and Budget for
use by Federal statistical agencies to classify business establishments for the collection, analysis, and publication of statistical
data related to the U.S. business economy. U.S. Census Bureau, Introduction to NAICS,
https://www.census.gov/eos/www/naics/ (last visited Jan. 27, 2020).
BILL: SB 1240 Page 5
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
The Revenue Estimating Conference has not yet determined the fiscal impact of the bill.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Some motor vehicle rental, leasing, or financing companies may qualify for a $10 million
credit against their Florida taxes for the 2018 taxable year.
C. Government Sector Impact:
The Department of Revenue will incur expenses related to creating and issuing a
Taxpayer Information Publication (TIP) to alert eligible taxpayers about the 1031
exchange tax credit.15
VI. Technical Deficiencies:
Section 220.02(8), F.S., provides the order in which credits may be applied against a
corporation’s income tax to reduce its overall tax burden; the bill does not provide guidance
regarding the order in which the 1031 exchange tax credit should be applied.
15
Florida Department of Revenue, SB 1240 Agency Analysis at 4 (Dec. 29, 2019), on file with the Committee on Commerce
and Tourism.
BILL: SB 1240 Page 6
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill creates section 220.197 of the Florida Statutes:
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Florida Senate - 2020 SB 1240 Florida Senate - 2020 SB 1240
By Senator Gruters
23-01181B-20 20201240__ 23-01181B-20 20201240__
1 A bill to be entitled 30 before application of the credit authorized by this section, is
2 An act relating to a corporate income tax credit; 31 greater than $15 million and is at least 700 percent greater
3 creating s. 220.197, F.S.; defining the term “NAICS”; 32 than its final tax liability for its taxable year beginning on
4 providing a credit against the corporate income tax, 33 or after August 1, 2016, and before August 1, 2017; or
5 for a specified amount and for a specified taxable 34 (b)1. The taxpayer is classified under NAICS industry group
6 year, for taxpayers classified in the sales financing 35 code 522220 or 532112;
7 or passenger car rental or leasing industries which 36 2. The taxpayer deferred gains on the sale of personal
8 meet certain criteria; providing for retroactive 37 property assets for federal income purposes under s. 1031 of the
9 operation; providing an effective date. 38 Internal Revenue Code during its taxable year beginning on or
10 39 after August 1, 2016, and before August 1, 2017; and
11 Be It Enacted by the Legislature of the State of Florida: 40 3. The taxpayer’s final tax liability for its taxable year
12 41 beginning on or after August 1, 2017, and before August 1, 2018,
13 Section 1. Section 220.197, Florida Statutes, is created to 42 before application of the credit authorized by this section, is
14 read: 43 greater than $15 million and is at least $15 million greater
15 220.197 1031 exchange tax credit.— 44 than its final tax liability for its taxable year beginning on
16 (1) As used in this section, the term “NAICS” means those 45 or after August 1, 2016, and before August 1, 2017.
17 classifications contained in the North American Industry 46 (3) This section operates retroactively to January 1, 2018.
18 Classification System, as published in 2007 by the Office of 47 Section 2. This act shall take effect upon becoming a law.
19 Management and Budget, Executive Office of the President.
20 (2) A taxpayer is eligible for a $10 million credit against
21 the tax imposed by this chapter for its 2018 taxable year if:
22 (a)1. The taxpayer is classified under NAICS industry group
23 code 53211;
24 2. The taxpayer deferred gains on the sale of personal
25 property assets for federal income purposes under s. 1031 of the
26 Internal Revenue Code during its taxable year beginning on or
27 after August 1, 2016, and before August 1, 2017; and
28 3. The taxpayer’s final tax liability for its taxable year
29 beginning on or after August 1, 2017, and before August 1, 2018,
Page 1 of 2 Page 2 of 2
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The Florida Senate
. APPEARANCE RECORD
g 12 p O (Deliver B0TH copies of this form t0 the Senator or Senate Professional Staff conducting the meeting)
(Meeting ( ate
/
Bill Number (if applicable)
Topic Q \fC-c f i I i e J Amendment Barcode (if applicable)
Name C C \ odL-- £L [
Job Title kvfcg- T) - r
Address / , a (( §4 c
Street
Phone h ) 0 L) jJ8b
L ! [cL / g y, 32 3 I Email < £>
City g- State Zip
Speaking: EZ] For [2] Against | | Information Waive Speaking: ~] In Support | | Against
(The Chair will read this information into the record.)
Representing Z 1 t> Fi a / f ny/ i L c (po j t <l
i | x
Appearing at request of Chair: Q Yes [ ] No Lobbyist registered with Legislature: [7] Yes Q No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
1-28-20 1240
Meeting Date Bill Number (if applicable)
Topic Corporate Income Taxes Amendment Barcode (if applicable)
Name KurtWenner
Job Tit|e Vice President
Address 106 N. Bronough Phone 850-222-5052
Street
Tallahassee FL 32301 Email kwenner@floridataxwatch.org
_ ¦
city State
Speaking: _>/_ For | [Against l l Information Waive Spea ing: In Support I I A ainst
(The Chair will read this information into the record.)
Representing Florida TaxWatch
Appearing at request of Chair: I I Yes 0 No Lobbyist registered with Legislature: 0Yes 0 No
While it is a Senate tradition to encourage public testimony, time may not permit all persons wishing to speak to be heard at this
meeting. Those who do speak may be asked to limit their remarks so that as many persons as possible can be heard.
This form is part of the public record for this meeting. S-001 (10/14/14)
The Florida Senate
APPEARANCE RECORD
(Deliver BOTH copies of this form to the Senator or Senate Professional Staff conducting the meeting)
j/T
* Meeting Date Bill Number (if applicable)
\ v 1 i Amendment Barcode (if applicable)
Name r- \T ev '\ 5
Job Title
Address S 6? . Phone
Phone
Street
City State
P Zip
Email
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Computers Understanding the World
Perception Comprehension
3
“We are pursuing AI to empower every person
and every institution .. so that they can go on to
solve the most pressing problems of our society
and our economy.” – Satya Nadella
Promise
real people?
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Room: EL 110 Case No.: Type:
Caption: Senate Commerce Committee Judge:
Started: 1/28/2020 1:30:20 PM
Ends: 1/28/2020 2:06:33 PM Length: 00:36:14
1:30:19 PM Brittany called roll
1:30:41 PM Quorum is present
1:31:12 PM SB 1140 and SB 1240 will not be heard today.
1:31:30 PM Tab 4, SB 1492, Sen. Wright
1:32:31 PM Gary Rutledge, speaker
1:34:46 PM CFO, Jimmy Petronis, speaker
1:36:58 PM Tasha Carter, waive in support
1:37:08 PM Tim Cornett, FAPIA, speaker
1:38:09 PM Chair Torres comments on bill.
1:38:48 PM Sen. Wright closes on bill
1:39:02 PM Roll call on SB 1492
1:39:19 PM Bill reported favorably
1:39:27 PM Tab 2, Sen. Baxley, SB 1186
1:40:50 PM Sen. Torres, question
1:41:11 PM Response of sponsor
1:41:21 PM Follow up...
1:41:39 PM And response
1:42:07 PM RJ Meyers, waive in support
1:42:26 PM Brittany call roll on SB 1186
1:42:39 PM Bill reported favorably
1:42:57 PM Tab 3, SB 1356, Sen. Bean, presented by Sen. Hutson
1:44:11 PM 234232, tech amendment
1:44:54 PM Amendment adopted
1:45:45 PM Nicholoas Alvarez waive in support
1:45:55 PM Roll call on bill
1:46:05 PM SB 1356 reported favorably
1:46:18 PM Tab 7, Presentation
2:00:33 PM Sen. Wright comment
2:00:58 PM Chair Torres comment
2:01:30 PM Tab 1, SB 1166, Sen. Albritton
2:03:46 PM Amendment 573474
2:04:38 PM DEO waive in support
2:04:51 PM Amendment adopted
2:05:12 PM Nicholas Alvarez, waive in support
2:05:19 PM Chris Doolin waive in support
2:05:34 PM Roll call on SB 1166
2:05:47 PM Bill reported favorably
2:06:11 PM Sen. Wright moves adjournment -- adopted
THE FLORIDA SENATE
COMMITTEES:
Tallahassee, Florida 32399-1100 Commerce and Tourism, Chair
Finance and Tax, Vice Chair
Appropriations Subcommittee on Criminal
and Civil Justice
Banking and Insurance
JOINT COMMITTEE:
Joint Committee on Public Counsel Oversight
SENATOR JOE GRUTERS
23rd District
January 28, 2020
The Honorable Victor Torres, Vice-Chair
Committee on Commerce and Tourism
310 Knott Building
404 South Monroe Street
Tallahassee, FL 32399-1100
Dear Vice-Chair Torres:
Please excuse my absence as I am traveling today during the Commerce and Tourism meeting.
Please let me know if you have any questions. Thank you in advance.
Sincerely,
Joe Gruters
REPLY TO:
381 Interstate Boulevard, Sarasota, Florida 34240 (941) 378-6309
324 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5023
Senate’s Website: www.flsenate.gov
BILL GALVANO DAVID SIMMONS
President of the Senate President Pro Tempore
THE FLORIDA SENATE
COMMITTEES:
Tallahassee, Florida 32399-1100 Appropriations
Appropriations Subcommittee on Agriculture,
Environment, and General Government
Commerce and Tourism
Infrastructure and Security
JOINT COMMITTEE:
Joint Administrative Procedures Committee,
Alternating Chair
SENATOR LINDA STEWART
13th District
January 29, 2020
The Honorable Joe Gruters
Committee on Commerce & Tourism
310 Knott Building
404 S. Monroe Street
Tallahassee, FL 32399
RE: Vote After Roll Call
Dear Chairman Gruters:
When I was presenting my bill in another committee I missed some votes today’s during
committee. I would like to record my vote for the record:
Yes - SB 1492: Consumer Protection by Senator Wright
Yes - SB 1186: Drug Free Workplaces by Senator Baxley
Yes - SB 1356: Employee Contributions for Reemployment Assistance by Senator Bean
Yes - SB 1166: Broadband Internet Service by Senator Albritton
Thank you for receiving my votes for the record.
Sincerely,
Linda Stewart
REPLY TO:
1726 South Bumby Avenue, Orlando, Florida 32806 (407) 893-2422 FAX: (888) 263-3680
205 Senate Building, 404 South Monroe Street, Tallahassee, Florida 32399-1100 (850) 487-5013
Senate’s Website: www.flsenate.gov
BILL GALVANO DAVID SIMMONS
President of the Senate President Pro Tempore
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