Meeting Packet - Business & Professions Subcommittee (February 4, 2020)

Summary

A meeting packet of the Florida House of Representatives Commerce Committee Business & Professions Subcommittee for Tuesday, February 4, 2020, 12:00 PM - 3:00 PM, at Webster Hall, with Heather Fitzenhagen as Chair. The agenda lists CS/HB 279 Local Government Public Construction Works, HB 363 Lease Contracts for the Sale of Dogs and Cats, PCS for HB 537 Home-Based Businesses, HB 795 Pregnant Employees and further bills through HB 1353 Private Security Services. The packet includes a staff analysis of CS/HB 279, which states that the bill raises the competitive-bid threshold for a public building or structure to $400,000 and for electrical work to $100,000. It ends with a committee amendment to HB 1353.

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Business & Professions Subcommittee

Tuesday, February 4, 2020
12:00 PM - 3:00 PM
Webster Hall (212 Knott)

Meeting Packet

Jose Oliva Heather Fitzenhagen
Speaker Chair
The Florida House of Representatives
Commerce Committee
Business & Professions Subcommittee

Jose Oliva Heather Fitzenhagen
Speaker Chair

AGENDA

Tuesday, February 4, 2020
Webster Hall (212 Knott)
12:00 PM - 3:00 PM

I. Call to Order & Roll Call

II. Welcoming Remarks

III. Consideration of the following bills(s):

CS/HB 279 by Oversight, Transparency & Public Management Subcommittee, Rep.
Smith, D.
Local Government Public Construction Works

HB 363 by Rep. Killebrew
Lease Contracts for the Sale of Dogs and Cats

PCS for HB 537 by Rep. Donalds
Home-Based Businesses

HB 795 by Rep. Joseph
Pregnant Employees

PCS for HB 867 by Rep. Stevenson
Public Accountancy

HB 1153 by Rep. DiCeglie
Beverage Law

HB 1161 by Rep. Plakon
Local Licensing

303 House Office Building, 402 South Monroe Street, Tallahassee, Florida 32399-1300
(850) 717-4873 Fax: (850) 413-0419
HB 1169 by Rep. McClure
Specialty Contracting Services

HB 1353 by Rep. Polsky, Rep. Plakon
Private Security Services

IV. Adjournment
Committee Meeting Notice
HOUSE OF REPRESENTATIVES

Business & Professions Subcommittee

Start Date and Time: Tuesday, February 04, 2020 12:00 pm

End Date and Time: Tuesday, February 04, 2020 03:00 pm

Location: Webster Hall (212 Knott)
Duration: 3.00 hrs

Consideration of the following bill(s):

CS/HB 279 Local Government Public Construction Works by Oversight, Transparency & Public Management
Subcommittee, Smith, D.
HB 363 Lease Contracts for the Sale of Dogs and Cats by Killebrew
HB 795 Pregnant Employees by Joseph
HB 1153 Beverage Law by DiCeglie
HB 1161 Local Licensing by Plakon
HB 1169 Specialty Contracting Services by McClure
HB 1353 Private Security Services by Polsky, Plakon

Consideration of the following bill(s) with proposed committee substitute(s):

PCS for HB 537 -- Home-Based Businesses
PCS for HB 867 -- Public Accountants

Pursuant to rule 7.11, the deadline for amendments to bills on the agenda by non-appointed members shall
be 6:00 p.m., Monday, February 3, 2020.

By request of Chair Fitzenhagen, all Business & Professions Subcommittee members are asked to have
amendments to bills on the agenda submitted to staff by 6:00 p.m., Monday, February 3, 2020.

NOTICE FINALIZED on 01/31/2020 4:17PM by Rigas.Amanda

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 279 Local Government Public Construction Works
SPONSOR(S): Oversight, Transparency & Public Management Subcommittee, Smith, D. and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 504

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Oversight, Transparency & Public Management 11 Y, 3 N, As CS Toliver Smith
Subcommittee

2) Business & Professions Subcommittee

3) State Affairs Committee

SUMMARY ANALYSIS
Counties, municipalities, special districts, and other political subdivisions seeking to construct or improve a
public building or structure must competitively bid the project if the projected cost is in excess of $300,000. For
electrical work, local governments must competitively bid projects estimated to cost more than $75,000. An
exemption from the requirement to competitively award these projects exists when the governing board of a
local government determines that it is in the public's best interest to use the local government's own services,
employees, and equipment.

Current law also requires counties to competitively bid and award to the lowest bidder all projects for
construction and reconstruction of roads and bridges that utilize the proceeds of the BO-percent portion of the
surplus of the constitutional gas tax. An exception to this requirement allows a county to use its own forces for
these construction and reconstruction projects if the estimated cost of a project is less than specified
thresholds depending upon the type of project.

The bill raises the threshold above which a political subdivision seeking to construct or improve a public
building or structure must competitively bid the project to $400,000, as well as raising the same threshold for
electrical work to $100,000. The bill specifies the manner in which the estimated cost of a public building
construction project must be determined when a local government governing board is deciding whether it is in
the local government's best interest to perform the project using its own services, employees, and equipment.
Specifically, the bill requires the estimated cost of the project to be determined using generally accepted cost-
accounting principles that fully account for all costs associated with performing and completing the work,
including employee compensation and benefits, equipment costs and maintenance, insurance costs, and the
cost of materials.

The bill also applies this requirement to the estimated cost of construction and reconstruction projects of roads
and bridges performed utilizing proceeds from the constitutional gas tax.

The bill does not appear to have a fiscal impact on state government, but it may have an indeterminate positive
fiscal impact on local governments. See Fiscal Comments.

The effective date of the bill is July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A EFFECT OF PROPOSED CHANGES:
Background

Procurement of Construction Services
Chapter 255, F.S., specifies the procedures to be followed in the procurement of construction services
for public property and publicly owned buildings. The Department of Management Services is
responsible for establishing the following by rule:
• Procedures for determining the qualifications and responsibility of potential bidders prior to
advertisement for and receipt of bids for building construction contracts;
• Procedures for awarding each state agency construction project to the lowest qualified bidder;
• Procedures to govern negotiations for construction contracts and contract modifications when
such negotiations are determined to be in the best interest of the state; and
• Procedures for entering into performance-based contracts for the development of public
facilities when those contracts are determined to be in the best interest of the state. 1

Counties, municipalities, special districts, and other political subdivisions seeking to construct or
improve a public building, structure, or other public construction works must competitively award the
project if the projected cost is in excess of $300,000. 2 For electrical work, local governments must
competitively award 3 projects estimated to cost more than $75,000. 4

Exemption from Competitive Solicitation for Local Governments Performing Work
If the governing board of a local government seeking to construct or improve a public building or
structure conducts a public meeting and finds by majority vote that it is in the public's best interest to
perform the project using its own services, employees, and equipment, then the local government is
exempt from the requirement to competitively award the contract for the project. 5 The meeting of the
governing board must have been publicly noticed at least 21 days before the date of the public meeting
at which the governing board takes final action. 6 The notice must identify the project, the components
and scope of the project, and the estimated cost of the project using generally accepted cost-
accounting principles that fully account for all costs associated with performing and completing the
project, including employee compensation and benefits, equipment cost and maintenance, insurance
costs, and materials. 7 The notice must state that the purpose of the meeting is to consider whether it is
in the best interest of the public to perform the project using the local government's own services,
employees, and equipment. 8

At the public meeting, the governing board must allow any qualified contractor or vendor who could
have been awarded the project had the project been competitively bid to present evidence regarding
the project and the accuracy of the local government's estimated cost of the project. 9 In making a
determination, the governing board must consider the estimated cost of the project and the accuracy of
the estimated cost in light of any other information that may be presented at the public meeting. In

1
Section 255.29, F.S.
2
Section 255.20(1), F.S.
3
The term "competitively award" means to award contracts based on the submission of sealed bids, proposals submitted in response
to a request for proposal, proposals submitted in response to a request for qualifications, or proposals submitted for competitive
negotiation. Id.
4 Id.
5
Section 255.20(l)(c)9., F.S.
6 Id.

7 Id.
8 Id.
9 Id.
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addition, the board must consider whether the project requires an increase in the number of
government employees or an increase in capital expenditures for public facilities, equipment, or other
capital assets. 10 The governing body may further consider the impact on local economic development,
the impact on small and minority business owners, the impact on state and local tax revenues, whether
the private sector contractors provide health insurance and other benefits equivalent to those provided
by the local government, and any other factor relevant to what is in the public's best interest. 11

Construction and Maintenance of Roads and Bridges
Current law authorizes counties to employ labor and provide road equipment to construct and open
new roads or bridges and to repair and maintain any existing roads and bridges under certain
circumstances. 12 However, counties must competitively bid and award to the lowest bidder all projects
for construction and reconstruction of roads and bridges, including resurfacing, that utilize the proceeds
of the 80-percent portion of the surplus of the constitutional gas tax. 13 An exception to this requirement
allows a county to use its own forces for these construction and reconstruction projects under the
following circumstances:
• In emergencies;
• When a construction or reconstruction project has a total cumulative annual value not to
exceed five percent of its 80-percent portion of the constitutional gas tax or $400,000,
whichever is greater; or
• When constructing sidewalks, curbing, accessibility ramps, or appurtenances incidental to
roads and bridges if each project is estimated in accordance with generally accepted cost-
accounting principles to have total construction project costs of less than $400,000. 14

In addition, if, after proper advertising, the county receives no bids for a specific project, the county may
use its own forces to construct the project. 15 A county is not prohibited from performing routine
maintenance as authorized by law. 16

Effect of the Bill

The bill raises the threshold above which a political subdivision seeking to construct or improve a public
building or structure must competitively bid the project from $300,000 to $400,000, and raises the same
threshold for electrical work from $75,000 to $100,000.

The bill specifies the manner in which the estimated cost of a public building construction project must
be determined when a local government governing board is deciding whether it is in the local
government's best interest to perform the project using its own services, employees, and equipment.
Specifically, the bill requires the estimated cost of the project to be determined using generally
accepted cost-accounting principles that fully account for all costs associated with performing and
completing the work, including employee compensation and benefits, equipment costs and
maintenance, insurance costs, and the cost of materials.

The bill applies this requirement to the estimated cost of road and bridge construction and
reconstruction projects performed utilizing proceeds from the constitutional gas tax, for which a county
may use its own forces if the estimated cost is less than the thresholds described above for different
types of projects.

to Id.
II Jd.
12
Section 336.41, F.S.
13
Section 336.41(4), F.S.; see also Art. XII, s. 9(c)(4), FLA. CONST.
14 Id.
1s Id.
16 Id.
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The bill requires a local government that performs a public building construction project using its own
services, employees, and equipment to disclose the actual costs of the project after completion to the
Auditor General, who must review such disclosures as part of his or her routine audits of local
governments.

B. SECTION DIRECTORY:
Section 1 amends s. 255.20, F.S., relating to local bids and contracts for public construction works.

Section 2 amends s. 336.41, F.S., relating to counties; employing labor and providing road equipment;
accounting; when competitive bidding required.

Section 3 provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
See Fiscal Comments.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
See Fiscal Comments.

D. FISCAL COMMENTS:
The bill may have an indeterminate positive fiscal impact on local governments if the estimated cost for
a local government to complete a construction project causes governing boards to select private
contractors that can perform the projects at a lower cost. Any increase in projects awarded to private
contractors would result in a positive fiscal impact on the private sector.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditure of funds; reduce the authority that counties or municipalities have to
raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.

2. Other:

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None.

B. RULE-MAKING AUTHORITY:
The bill does not confer rulemaking authority nor require the promulgation of rules.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On January 29, 2020, the Oversight, Transparency & Public Management Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The amendment raised the threshold
above which a political subdivision seeking to construct or improve a public building or structure must
competitively bid the project from $300,000 to $400,000, as well as raising the same threshold for electrical
work from $75,000 to $100,000.

The analysis is drafted to the committee substitute as approved by the Oversight, Transparency & Public
Management Subcommittee.

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FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 279 2020

1 A bill to be entitled
2 An act relating to local government public
3 construction works; amending s. 255.20, F.S.; revising
4 the amount at which specified entities must
5 competitively award certain projects; requiring the
6 governing board of a local government to consider
7 estimated costs of certain projects using generally
8 accepted cost-accounting principles that account for
9 specified costs when making a specified determination;
10 requiring a local government that performs a project
11 using its own services, employees, and equipment to
12 disclose the actual costs of the project after
13 completion to the Auditor General; requiring the
14 Auditor General to review such disclosures as part of
15 his or her routine audits of local governments;
16 amending s. 336.41, F.S.; requiring estimated total
17 construction project costs for certain projects to
18 include specified costs; providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Subsection (1) of section 255.20, Florida
23 Statutes, is amended to read:
24 255.20 Local bids and contracts for public construction
25 works; specification of state-produced lumber.-

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26 (1) A county, municipality, special district as defined in
27 chapter 189, or other political subdivision of the state seeking
28 to construct or improve a public building, structure, or other
29 public construction works must competitively award to an
30 appropriately licensed contractor each project that is estimated
31 in accordance with generally accepted cost-accounting principles
32 to cost more than $400,000 $300,000. For electrical work, the
33 local government must competitively award to an appropriately
34 licensed contractor each project that is estimated in accordance
35 with generally accepted cost-accounting principles to cost more
36 than $100,000 $75,000. As used in this section, the term
37 "competitively award" means to award contracts based on the
38 submission of sealed bids, proposals submitted in response to a
39 request for proposal, proposals submitted in response to a
40 request for qualifications, or proposals submitted for
41 competitive negotiation. This subsection expressly allows
42 contracts for construction management services, design/build
43 contracts, continuation contracts based on unit prices, and any
44 other contract arrangement with a private sector contractor
45 permitted by any applicable municipal or county ordinance, by
46 district resolution, or by state law. For purposes of this
47 section, cost includes the cost of all labor, except inmate
48 labor, and the cost of equipment and materials to be used in the
49 construction of the project. Subject to the provisions of
50 subsection (3), the county, municipality, special district, or

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51 other political subdivision may establish, by municipal or
52 county ordinance or special district resolution, procedures for
53 conducting the bidding process.
54 (a) Notwithstanding any other law, a governmental entity
55 seeking to construct or improve bridges, roads, streets,
56 highways, or railroads, and services incidental thereto, at a
57 cost in excess of $250,000 may require that persons interested
58 in performing work under contract first be certified or
59 qualified to perform such work. A contractor may be considered
60 ineligible to bid if the contractor is behind by 10 percent or
61 more on completing an approved progress schedule for the
62 governmental entity at the time of advertising the work. A
63 prequalified contractor considered eligible by the Department of
64 Transportation to bid to perform the type of work described
65 under the contract is presumed to be qualified to perform the
66 work described. The governmental entity may provide an appeal
67 process to overcome that presumption with de novo review based
68 on the record below to the circuit court.
69 (b) For contractors who are not prequalified by the
70 Department of Transportation, the governmental entity shall
71 publish prequalification criteria and procedures prior to
72 advertisement or notice of solicitation. Such publications must
73 include notice of a public hearing for comment on such criteria
74 and procedures prior to adoption. The procedures must provide
75 for an appeal process within the authority for making objections

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76 to the prequalification process with de novo review based on the
77 record below to the circuit court within 30 days.
78 (c) The provisions of This subsection does €le not apply:
79 1. If the project is undertaken to replace, reconstruct,
80 or repair an existing public building, structure, or other
81 public construction works damaged or destroyed by a sudden
82 unexpected turn of events such as an act of God, riot, fire,
83 flood, accident, or other urgent circumstances, and such damage
84 or destruction creates:
85 a. An immediate danger to the public health or safety;
86 b. Other loss to public or private property which requires
87 emergency government action; or
88 c. An interruption of an essential governmental service.
89 2. If, after notice by publication in accordance with the
90 applicable ordinance or resolution, the governmental entity does
91 not receive any responsive bids or proposals.
92 3. To construction, remodeling, repair, or improvement to
93 a public electric or gas utility system if such work on the
94 public utility system is performed by personnel of the system.
95 4. To construction, remodeling, repair, or improvement by
96 a utility commission whose major contracts are to construct and
97 operate a public electric utility system.
98 5. If the project is undertaken as repair or maintenance
99 of an existing public facility. For the purposes of this
100 paragraph, the term "repair" means a corrective action to

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101 restore an existing public facility to a safe and functional
102 condition and the term "maintenance'' means a preventive or
103 corrective action to maintain an existing public facility in an
104 operational state or to preserve the facility from failure or
105 decline. Repair or maintenance includes activities that are
106 necessarily incidental to repairing or maintaining the facility.
107 Repair or maintenance does not include the construction of any
108 new building, structure, or other public construction works or
109 any substantial addition, extension, or upgrade to an existing
110 public facility. Such additions, extensions, or upgrades shall
111 be considered substantial if the estimated cost of the
112 additions, extensions, or upgrades included as part of the
113 repair or maintenance project exceeds the threshold amount in
114 subsection (1) and exceeds 20 percent of the estimated total
115 cost of the repair or maintenance project using generally
116 accepted cost-accounting principles that fully account for all
117 costs associated with performing and completing the work,
118 including employee compensation and benefits, equipment cost and
119 maintenance, insurance costs, and materials. An addition,
120 extension, or upgrade shall not be considered substantial if it
121 is undertaken pursuant to the conditions specified in
122 subparagraph 1. Repair and maintenance projects and any related
123 additions, extensions, or upgrades may not be divided into
124 multiple projects for the purpose of evading the requirements of
125 this subparagraph.

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126 6. If the project is undertaken exclusively as part of a
127 public educational program.
128 7. If the funding source of the project will be diminished
129 or lost because the time required to competitively award the
130 project after the funds become available exceeds the time within
131 which the funding source must be spent.
132 8. If the local government competitively awarded a project
133 to a private sector contractor and the contractor abandoned the
134 project before completion or the local government terminated the
135 contract.
136 9. If the governing board of the local government complies
137 with all of the requirements of this subparagraph, conducts a
138 public meeting under s. 286.011 after public notice, and finds
139 by majority vote of the governing board that it is in the
140 public's best interest to perform the project using its own
141 services, employees, and equipment. The public notice must be
142 published at least 21 days before the date of the public meeting
143 at which the governing board takes final action. The notice must
144 identify the project, the components and scope of the work, and
145 the estimated cost of the project using generally accepted cost-
146 accounting principles that fully account for all costs
147 associated with performing and completing the work, including
148 employee compensation and benefits, equipment cost and
149 maintenance, insurance costs, and materials. The notice must
150 specify that the purpose for the public meeting is to consider

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151 whether it is in the public's best interest to perform the
152 project using the local government's own services, employees,
153 and equipment. Upon publication of the public notice and for 21
154 days thereafter, the local government shall make available for
155 public inspection, during normal business hours and at a
156 location specified in the public notice, a detailed itemization
157 of each component of the estimated cost of the project and
158 documentation explaining the methodology used to arrive at the
159 estimated cost. At the public meeting, any qualified contractor
160 or vendor who could have been awarded the project had the
161 project been competitively bid shall be provided with a
162 reasonable opportunity to present evidence to the governing
163 board regarding the project and the accuracy of the local
164 government's estimated cost of the project. In deciding whether
165 it is in the public's best interest for the local government to
166 perform a project using its own services, employees, and
167 equipment, the governing board must consider the estimated cost
168 of the project using generally accepted cost-accounting
169 principles that fully account for all costs associated with
170 performing and completing the work, including employee
171 compensation and benefits, equipment costs and maintenance,
172 insurance costs, and the cost of materials, and the accuracy of
173 the estimated cost in light of any other information that may be
174 presented at the public meeting and whether the project requires
175 an increase in the number of government employees or an increase

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176 in capital expenditures for public facilities, equipment, or
177 other capital assets. The local government may further consider
178 the impact on local economic development, the impact on small
179 and minority business owners, the impact on state and local tax
180 revenues, whether the private sector contractors provide health
181 insurance and other benefits equivalent to those provided by the
182 local government, and any other factor relevant to what is in
183 the public's best interest. A local government that performs a
184 project using its own services, employees, and equipment must
185 disclose the actual costs of the project after completion to the
186 Auditor General. The Auditor General shall review such
187 disclosures as part of his or her routine audits of local
188 governments.
189 10. If the governing board of the local government
190 determines upon consideration of specific substantive criteria
191 that it is in the best interest of the local government to award
192 the project to an appropriately licensed private sector
193 contractor pursuant to administrative procedures established by
194 and expressly set forth in a charter, ordinance, or resolution
195 of the local government adopted before July 1, 1994. The
196 criteria and procedures must be set out in the charter,
197 ordinance, or resolution and must be applied uniformly by the
198 local government to avoid awarding a project in an arbitrary or
199 capricious manner. This exception applies only if all of the
200 following occur:

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201 a. The governing board of the local government, after
202 public notice, conducts a public meeting under s. 286.011 and
203 finds by a two-thirds vote of the governing board that it is in
204 the public's best interest to award the project according to the
205 criteria and procedures established by charter, ordinance, or
206 resolution. The public notice must be published at least 14 days
207 before the date of the public meeting at which the governing
208 board takes final action. The notice must identify the project,
209 the estimated cost of the project, and specify that the purpose
210 for the public meeting is to consider whether it is in the
211 public's best interest to award the project using the criteria
212 and procedures permitted by the preexisting charter, ordinance,
213 or resolution.
214 b. The project is to be awarded by any method other than a
215 competitive selection process, and the governing board finds
216 evidence that:
217 (I) There is one appropriately licensed contractor who is
218 uniquely qualified to undertake the project because that
219 contractor is currently under contract to perform work that is
220 affiliated with the project; or
221 (II) The time to competitively award the project will
222 jeopardize the funding for the project, materially increase the
223 cost of the project, or create an undue hardship on the public
224 health, safety, or welfare.
225 c. The project is to be awarded by any method other than a

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226 competitive selection process, and the published notice clearly
227 specifies the ordinance or resolution by which the private
228 sector contractor will be selected and the criteria to be
229 considered.
230 d. The project is to be awarded by a method other than a
231 competitive selection process, and the architect or engineer of
232 record has provided a written recommendation that the project be
233 awarded to the private sector contractor without competitive
234 selection, and the consideration by, and the justification of,
235 the government body are documented, in writing, in the project
236 file and are presented to the governing board prior to the
237 approval required in this paragraph.
238 11. To projects subject to chapter 336.
239 (d) If the project:
240 1. Is to be awarded based on price, the contract must be
241 awarded to the lowest qualified and responsive bidder in
242 accordance with the applicable county or municipal ordinance or
243 district resolution and in accordance with the applicable
244 contract documents. The county, municipality, or special
245 district may reserve the right to reject all bids and to rebid
246 the project, or elect not to proceed with the project. This
247 subsection is not intended to restrict the rights of any local
248 government to reject the low bid of a nonqualified or
249 nonresponsive bidder and to award the contract to any other
250 qualified and responsive bidder in accordance with the standards

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251 and procedures of any applicable county or municipal ordinance
252 or any resolution of a special district.
253 2. Uses a request for proposal or a request for
254 qualifications, the request must be publicly advertised and the
255 contract must be awarded in accordance with the applicable local
256 ordinances.
257 3. Is subject to competitive negotiations, the contract
258 must be awarded in accordance withs. 287.055.
259 (e) If a construction project greater than $300,000, or
260 $75,000 for electrical work, is started after October 1, 1999,
261 is to be performed by a local government using its own employees
262 in a county or municipality that issues registered contractor
263 licenses, and the project would require a contractor licensed
264 under chapter 489 if performed by a private sector contractor,
265 the local government must use a person appropriately registered
266 or certified under chapter 489 to supervise the work.
267 (f) If a construction project greater than $300,000, or
268 $75,000 for electrical work, is started after October 1, 1999,
269 is to be performed by a local government using its own employees
270 in a county that does not issue registered contractor licenses,
271 and the project would require a contractor licensed under
272 chapter 489 if performed by a private sector contractor, the
273 local government must use a person appropriately registered or
274 certified under chapter 489 or a person appropriately licensed
275 under chapter 471 to supervise the work.

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FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

CS/HB 279 2020

276 (g} Projects performed by a local government using its own
277 services and employees must be inspected in the same manner
278 required for work performed by private sector contractors.
279 (h} A construction project provided for in this subsection
280 may not be divided into more than one project for the purpose of
281 evading this subsection.
282 (i} This subsection does not preempt the requirements of
283 any small-business or disadvantaged-business enterprise program
284 or any local-preference ordinance.
285 (j) A county, municipality, special district as defined in
286 s. 189.012, or any other political subdivision of the state that
287 owns or operates a public-use airport as defined ins. 332.004
288 is exempt from this section when performing repairs or
289 maintenance on the airport's buildings, structures, or public
290 construction works using the local government's own services,
291 employees, and equipment.
292 (k) A local government that owns or operates a port
293 identified in s. 403. 021 ( 9) (b) is exempt from this section when
294 performing repairs or maintenance on the port's buildings,
295 structures, or public construction works using the local
296 government's own services, employees, and equipment.
297 (1) A local government that owns or operates a public
298 transit system as defined ins. 343.52, a public transportation
299 system as defined ins. 343.62, or a mass transit system
300 described in s. 349. 04 ( 1) (b) is exempt from this section when

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hb0279-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 279 2020

301 performing repairs or maintenance on the buildings, structures,
302 or public construction works of the public transit system,
303 public transportation system, or mass transit system using the
304 local government's own services, employees, and equipment.
305 (m) Any contractor may be considered ineligible to bid by
306 the governmental entity if the contractor has been found guilty
307 by a court of any violation of federal labor or employment tax
308 laws regarding subjects such as safety, tax withholding,
309 workers' compensation, reemployment assistance or unemployment
310 tax, social security and Medicare tax, wage or hour, or
311 prevailing rate laws within the past 5 years.
312 Section 2. Subsection (4) of section 336.41, Florida
313 Statutes, is amended to read:
314 336.41 Counties; employing labor and providing road
315 equipment; accounting; when competitive bidding required.-
316 (4) All construction and reconstruction of roads and
317 bridges, including resurfacing, full scale mineral seal coating,
318 and major bridge and bridge system repairs, to be performed
319 utilizing the proceeds of the SO-percent portion of the surplus
320 of the constitutional gas tax shall be let to contract to the
321 lowest responsible bidder by competitive bid, except for:
322 (a) Construction and maintenance in emergency situations~7
323
324 (b) In addition to emergency work, construction and
325 reconstruction, including resurfacing, mineral seal coating, and

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hb0279-01-c 1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 279 2020

326 bridge repairs, having a total cumulative annual value not to
327 exceed 5 percent of its BO-percent portion of the constitutional
328 gas tax or $400,000, whichever is greater~7 and
329 (c) Construction of sidewalks, curbing, accessibility
330 ramps, or appurtenances incidental to roads and bridges if each
331 project is estimated in accordance with generally accepted cost-
332 accounting principles to have total construction project costs
333 of less than $400,000 or as adjusted by the percentage change in
334 the Construction Cost Index from January 1, 2008,
335
336 for which the county may utilize its own forces. Estimated total
337 construction project costs shall include all costs associated
338 with performing and completing the work, including employee
339 compensation and benefits, equipment costs and maintenance,
340 insurance costs, and the cost of materials. However, if, after
341 proper advertising, no bids are received by a county for a
342 specific project, the county may use its own forces to construct
343 the project, notwithstanding the limitation of this subsection.
344 Nothing in this section shall prevent the county from performing
345 routine maintenance as authorized by law.
346 Section 3. This act shall take effect July 1, 2020.

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hb0279-01-c 1
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 363 Lease Contracts for the Sale of Dogs and Cats
SPONSOR(S): Killebrew
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee

2) Civil Justice Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
Consumers in the United States spent $2.01 billion on live animal purchases in 2018. Over 100 million
households nationwide own pets. Statistics at the state level regarding pet purchases are not readily available.
However, if national data are distributed evenly across all 50 states, around $38 million was spent on live
animal purchases statewide in 2018.

For consumers, pet leasing is an alternative financial mechanism to purchasing a pet with cash or credit.
According to the Federal Trade Commission, pet leasing is a relatively new industry that relies on a consumer
lease. Some financial services companies have partnered with pet sellers to offer such leases. The lease
terms vary. The federal Consumer Lease Act regulates consumer leases to ensure that meaningful and
accurate disclosure of lease terms are provided to consumers before entering into a contract.

Recently, there have been reports of retail pet stores that are using pet leases to lock consumers, who do not
qualify for credit, into contracts. In Florida, the Department of Agriculture and Consumer Services, Division of
Consumer Services (DACS) has received similar complaints. According to research, some of the complaints
allege that retailers are overly persuasive, and that appropriate lease disclosures have not been made when
the contract is signed. A sample of the complaints and other articles on this issue appears to show that certain
consumers in Florida are:
• Entering into financial agreements they cannot afford;
• Not aware of all of the costs involved at the point of sale;
• Not reading the details ("fine print") in the agreements at the point of sale;
• Purchasing sick puppies; or
• Being led into financial agreements with predatory payment plans.

Florida law does not appear to specifically address consumer pet leases.

The bill prohibits future contracts that:
• Transfer ownership of a dog or cat contingent on the buyer making payments after taking
possession of the animal;
• Provide for the lease of a dog or cat with the option to buy the animal at the end of
the lease term; or
• Repay a loan for the purchase of a dog or cat, where a security interest is granted in the dog or cat
purchased. Such provisions are void and unenforceable.

The bill deems consumers who take possession of a dog or cat under such contracts the owner, entitles the
consumer to a full refund, and does not prohibit buying a dog or cat through an unsecured loan.

The bill does not appear to have a fiscal impact on state or local government.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0363.BPS.DOCX
DATE: 1/31/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

Pet Ownership

Sixty-seven percent of households in the United States (U.S.}, or about 85 million families, own a pet.
Of these households, approximately 65 million own dogs and 42 million own cats. The total number of
dogs and cats owned in the U.S. is estimated to be approximately 183 million. 1

Consumers in the U.S. spent $2.01 billion on live animal purchases in 2018. Acquisition of dogs varies
by generation with more millennials turning to shelters and rescues, while baby boomers and Gen Xers
look more to breeders. However, it has been found that millennials purchase pets at independent pet
stores three times more often than Boomers or Gen Xers. 2

Statistics at the state level regarding pet ownership and purchases are not readily available. However,
if the national data are distributed evenly across all 50 states, the following annual statistics can be
extrapolated an applied to each state:
• 1.6 million families own a pet, and of these families:
o 1.2 million own dogs;
o 800,000 own cats;
• 3.5 million dogs and cats are owned; and
• $38 million is spent on live animal purchases.

Pet Lease Agreements

For consumers, pet leasing is an alternative financial mechanism to purchasing a pet with cash or
credit. It is unknown what portion of the total amount spent each year on pets is from pet leasing and
how many dogs and cats are purchased using a pet lease agreement.

According to the Federal Trade Commission, pet leasing is a relatively new industry that relies on a
consumer lease. Consumer leases are commonly associated with cars, furniture, and heavy
equipment. As a result, most people considering buying a pet are not expecting to be handed a lease
and many pet sellers may not be prepared to explain a lease's terms. 3

Some financial services companies have partnered with pet sellers to offer leases. The lease terms
vary. In general, pet leases run for a set time, typically one to three years. During the lease period,
customers are required to make monthly payments that can total more than the list price of the pet,
sometimes much more. 4

When the lease is over, the customer does not own the pet. To purchase the pet, the customer usually
must pay an additional amount. If they can't buy the pet, they must surrender it, and if the customer
misses a monthly payment, the leasing company can repossess it. If the animal gets lost, stolen, or
dies, or if the customer can no longer keep the pet, the customer can still be required to make

1
American Pet Products Association, Press Releases: Americans Are Spending More on Pets Than Ever Before: $72 Billion,
https://www.americanpetproducts.org/press releasedetail.asp?id=l 91 (last visited Jan. 31, 2020).
2 Id
3
Federal Trade Commission, A lease on a leash? Pet stores are leasing pets, https://www.ftc.gov/news-events/blogs/business-
blog/2018/07/lease-leash-pet-stores-are-leasing-pets (last visited Jan. 31, 2020).
4 Id.
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DATE: 1/31/2020
payments through the end of the lease period or pay an early termination fee. Failure to make required
payments can show up on the customer's credit report and result in a collection action. 5

Pet Lease Disclosures

The federal Consumer Lease Act (Act) regulates personal property leases that exceed four months in
duration, do not exceed $50,000, and are made to consumers for personal, family, or household
purposes. The purpose of the Act is to ensure that meaningful and accurate disclosure of lease terms is
provided to consumers before entering into a contract. 6

Prior to signing a lease, the Act requires, among other things, that a consumer receive a written
statement that clearly and conspicuously includes the following information:
• A brief description or identification of the leased property;
• The amount of any payment by the lessee required at the inception of the lease;
• The amount paid or payable by the lessee for official fees, registration, certificate of title, or
license fees or taxes;
• The amount of other charges payable by the lessee not included in the periodic payments, a
description of the charges and that the lessee is liable for the difference, if any, between the
anticipated fair market value of the leased property and its appraised actual value at the
termination of the lease, if the lessee has such liability;
• A statement of the amount or method of determining the amount of any liabilities the lease
imposes upon the lessee at the end of the term and whether or not the lessee has the option to
purchase the leased property and at what price and time;
• A statement identifying all express warranties and guarantees made by the manufacturer or
lessor with respect to the leased property, and identifying the party responsible for maintaining
or servicing the leased property together with a description of the responsibility;
• A brief description of insurance provided or paid for by the lessor or required of the lessee,
including the types and amounts of the coverages and costs;
• A description of any security interest held or to be retained by the lessor in connection with the
lease and a clear identification of the property to which the security interest relates;
• The number, amount, and due dates or periods of payments under the lease and the total
amount of such periodic payments;
• Where the lease provides that the lessee shall be liable for the anticipated fair market value of
the property on expiration of the lease, the fair market value of the property at the inception of
the lease, the aggregate cost of the lease on expiration, and the differential between them; and
• A statement of the conditions under which the lessee or lessor may terminate the lease prior to
the end of the term and the amount or method of determining any penalty or other charge for
delinquency, default, late payments, or early termination. 7

If pet leases are advertised, the Act requires, among other things, disclosure that the deal is a lease,
the total amount due at lease signing, and the number, amount, and timing of payments. 8 Specifically, if
an advertisement for a consumer lease includes a statement of the amount of any payment or a
statement that any or no initial payment is required, the advertisement must clearly and conspicuously
state, as applicable:
• The transaction advertised is a lease;
• The total amount of any initial payments required on or before consummation of the lease or
delivery of the property, whichever is later;
• That a security deposit is required;
• The number, amount, and timing of scheduled payments; and

s Id.
6
15 U.S.C. §§ 1667-1667f.
7 Id.
8
Federal Trade Commission, supra note 3.
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DATE: 1/31/2020
• With respect to a lease in which the liability of the consumer at the end of the lease term is
based on the anticipated residual value of the property, that an extra charge may be imposed at
the end of the lease term. 9

A relatively small number of banks engage in consumer leasing. The trend seems to be for
leasing to be carried out through specialized bank subsidiaries, vehicle finance companies, other
finance companies, or directly by retailers. 10

Recent Reports

Recently, there have been reports of retail pet stores that are allegedly using pet lease agreements to
lock consumers into predatory contracts. The reports say that lessees are being charged two to four
times the actual sticker-price for a puppy. In response, animal rights groups have spent the last two
years filing lawsuits accusing leasing companies and pet stores of predatory practices. 11

In Florida, the Florida Department of Agriculture and Consumer Services, Division of Consumer
Services (DACS) has received related complaints. Some of the complaints allege that retailers are
overly persuasive, and that appropriate lease disclosures are not being made when the contract is
signed. A sample of the complaints 12 and news reports 13 regarding the issue appear to show that
consumers in Florida are:
• Entering into financial agreements that they cannot afford;
• Not aware of all of the costs involved at the point of sale;
• Not reading the details ("fine print") in the agreements at the point of sale;
• Purchasing sick puppies; or
• Being led into a predatory payment plan.

Other States

Six states have enacted prohibitions on pet leasing and others have considered doing so. 14 The states
include California, 15 lndiana, 16 Nevada, 17 New Jersey, 18 New York, 19 and Washington. 20

Current Law

Florida law does not appear to specifically address consumer pet leases.

9
15 U.S.C. §§ 1667-1667f.
°Federal Reserve, Regulation M Consumer Leasing Introduction, https://www.federalreserve.gov/boarddocs/caletters/2008/0805/08-
1

05 attachment2.pdf (last visited Jan. 31, 2020).
11
Sara DiNatale, They thought they were buying a family dog. Turns out they were leasing it., Tampa Bay Times, (Dec. 27, 2018)
https://www.tampabay.com/business/they-thought-they-were-buying-a-family-dog-tums-out-they-were-leasing-it-20181224/ (last
visited Jan. 31, 2020).
12
Florida Department of Agriculture and Consumer Services, Division of Consumer Services, Mediation & Enforcement office.
13
Jeff Weinsier, Local 10 Investigates, Financing fido: Pet store loans raise eyebrows in Florida
Fine print of some agreements has buyer leasing their pets (Nov. 12, 2018), https://www.locallO.com/news/2018/l l/13/financing-
fido-pet-store-loans-raise-eyebrows-in-florida/ (last visited Jan. 31, 2020).
14
Connecticut considered a ban on pet leasing during the 2018 legislative session. However, the House did not take up the amended
bill for consideration. Connecticut General Assembly, Research Report: State Laws Prohibiting Pet Leasing,
https://www.cga.ct.gov/20 l 8/rpt/pdf/20 l 8-R-0264.pdf (last visited Jan. 31, 2020).
15
Cal. Civil Code§ 1670.10 (2018).
16
Ind. Code § 24-4.5-2407 .5 (2019).
17
Nev. Rev. Stat. § 597. 997 (2017).
18
N.J. Stat. Ann.§ 56:8-211 (2019).
19
N.Y. General Business Law§ 753-e (2019).
20
Wash. Rev. Code§ 63.10.070 (2019).
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DATE: 1/31/2020
Proposed Changes

Effective July 1, 2020, the bill prohibits future or new contracts that:
• Transfer ownership of a dog or cat contingent on the buyer making payments after taking
possession of the animal;
• Provide for the lease of a dog or cat with the option to buy the animal at the end of
the lease term; or
• Repay a loan for the purchase of a dog or cat, where a security interest is granted in the dog or
cat purchased.

The bill makes any such provisions void and unenforceable.

The bill deems consumers who take possession of a dog or cat under such a contract the owner and
entitles the consumer to a refund of all moneys paid under the contract.

The bill does not prohibit buying a dog or cat through an unsecured loan.

8. SECTION DIRECTORY:
Section 1. Creates s. 725.09, F.S., prohibiting lease contracts for the sale of dogs and cats.

Section 2. Provides an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

8. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill prohibits certain financial agreements that are typically offered by retail pet stores to potential
customers as a mechanism for obtaining a dog or cat. As a result, the bill could create a negative fiscal
impact on these businesses. To the extent these agreements may be predatory, the bill could have a
positive fiscal impact on consumers.

D. FISCAL COMMENTS:
None.

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DATE: 1/31/2020
111. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill purports to apply to lease contracts involving a dog or cat. However, the bill confuses the nature
of a contract for the lease of property versus the nature of a contract for the sale of property. A lease
involves the possession of the property, whereas a sale involves the transfer of ownership of the
property.

For example:
• Line 14 contains a catchline for the proposed statute that begins with "lease contracts" and then
immediately follows with "for the sale of dogs and cats."
• Although the intent of the bill appears to relate to lease contracts, lines 23-24 speak of
prohibiting certain types of loans "for the purchase of a dog or cat," and lines 17-20 speak of the
transfer of ownership of a dog or cat.

The bill also creates a new section of law in chapter 725, F.S., which generally relates to fraudulent
contracts. However, chapter 828, F.S., specifically relates to sales of animals.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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DATE: 1/31/2020
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 363 2020

1 A bill to be entitled
2 An act relating to lease contracts for the sale of
3 dogs and cats; creating s. 725.09, F.S.; providing
4 that certain contract provisions entered into on or
5 after a specified date for the sale or lease of dogs
6 and cats are void and unenforceable; providing an
7 exception for contracts for the repayment of unsecured
8 loans; providing an effective date.
9

10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Section 725.09, Florida Statutes, is created to
13 read:
14 725.09 Lease contracts for the sale of dogs and cats.-
15 (1) A contract entered into on or after July 1, 2020, may
16 not:
17 (a} Transfer ownership of a dog or cat in which the
18 ownership is contingent upon the making of payments over a
19 period of time subsequent to the transfer of possession of the
20 dog or cat;
21 (b} Provide for or offer the option of transferring
22 ownershiJ2 of a dog or cat at the end of a lease term; or
23 (c} Repay a loan for the purchase of a dog or cat, where a
24 security interest is granted in the dog or cat purchased;
25

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hb0363-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 363 2020

26 and any such provision is void and unenforceable.
27 (2) In addition to any other remedies provided by law, the
28 person taking possession of a dog or cat transferred under a
29 contract described in subsection (1) is the owner of the dog or
30 cat and is entitled to the return of all moneys paid under such
31 contract.
32 (3) This section does not apply to contracts to repay an
33 unsecured loan for the purchase of a dog or cat.
34 Section 2. This act shall take effect July 1, 2020.

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hb0363-00
-u
()
(/)
o'
-,
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for HB 537 Home-Based Businesses
SPONSOR(S): Business & Professions Subcommittee
TIED BILLS: IDEN./SIM. BILLS: SB 778

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

Orig. Comm.: Business & Professions
Subcommittee
Wright {.Qb Anstead cf:_s,--
SUMMARY ANALYSIS
The Florida Constitution grants local governments broad home rule authority, and county and municipal
governments may exercise those powers of self-government that are provided by general or special law. As
such, general law and home rule authority determines whether local governments are able to regulate
businesses, and to what degree. For example, the local business tax allowed under general law and levied by
counties and municipalities represents the fees charged and the method by which a local government authority
grants the privilege of engaging in or managing any business, profession, or occupation within its jurisdiction.

In order to be considered a home-based businesses, the bill requires that:
• the business operates, in whole or in part, from a residential property.
• the employees of the home-based business must reside in the residence, except for up to two
employees that do not reside at the residence. However, employees of the home-based business that
do not primarily work at the residential dwelling are not required to reside in the dwelling.
• parking for the business activities of the home-based business complies with local zoning requirements.
• the use of the residential property is consistent with the uses of the residential areas that surround the
property, but incidental and short term business uses and activities are permitted.
• the activities of the home-based business are secondary to the property's use as a residential dwelling.

The bill provides that home-based businesses will only be subject to applicable business taxes in the county
and municipality where the home-based business is located.

The bill provides that local governments may not enact or enforce any ordinance, regulation, or policy, or take
any action to license or otherwise regulate a home-based business in a manner that is different from other
businesses in a local government's jurisdiction.

The bill allows a party to challenge any local government action regulating home-based businesses. The
prevailing party is entitled to recover reasonable attorney fees and costs.

The bill does not have a fiscal impact on state government and has an indeterminate fiscal impact on local
governments.

The bill has an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: pcs0537.BPS.DOCX
DATE: 1/30/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Present Situation

Local Government Authority

The Florida Constitution grants local governments broad home rule authority. Non-charter county
governments may exercise those powers of self-government that are provided by general or special
law. 1 Those counties operating under a county charter have all powers of self-government not
inconsistent with general law or special law approved by vote of the electors. 2

Likewise, municipalities 3 have those governmental, corporate, and proprietary powers that enable them
to conduct municipal government, perform functions, provide services, and exercise any power for
municipal purposes, except as otherwise provided by law. 4

A "special district" is a unit of local government created for a particular purpose, with jurisdiction to
operate within a limited geographic boundary. Special districts are created by general law, 5 special act, 6
local ordinance,7 or by rule of the Governor and Cabinet. 8 A special district has only those powers
expressly provided by, or reasonably implied from, the authority provided in the district's charter.
Special districts provide specific municipal services in addition to, or in place of, those provided by a
municipality or county. 9

A "dependent special district" is a special district where the membership of the governing body is
identical to the governing body of a single county or municipality, all members of the governing body
are appointed by the governing body of a single county or municipality, members of the district's
governing body are removable at will by the governing body of a single county or municipality, or the
district's budget is subject to the approval of the governing body of a single county or municipality. 10 An
"independent special district" is any district that is not a dependent special district. 11

Local Business Tax

The local business tax, authorized in ch. 205, F.S., represents the fees charged and the method by
which a local government authority grants the privilege of engaging in or managing any business,
profession, or occupation within its jurisdiction. 12 Counties and municipalities may levy a business tax. 13

1
Art. VIII, s. 1(f}, Fla. Const.
2
Art. VIII, s. 1(g), Fla. Const.
3
A municipality is a local government entity created to perform functions and provide services for the particular benefit of the population
within the municipality, in addition to those provided by the county. The term "municipality" may be used interchangeably with the terms
"town," "city," and "village."
4
Art. VIII, s. 2(b), Fla. Const. See also s. 166.021(1), F.S.
5
Section 189.031(3), F.S.
6 Id.
7 S. 189.02(1), F.S.
8
S. 190.005(1), F.S. See, generally, s. 189.012(6), F.S.
9
2018 - 2020 Local Gov't Fonnation Manual, p. 62,
https://myfloridahouse.gov/Sections/Documents/loaddoc.aspx?PublicationType=Committees&Committeeld=3025&Sessio
n=2019&DocumentType=General%20Publications&FileName=2018-
2020%20Local%20Government%20Formation%20Manual%20Final.pdf (last visited Dec 19, 2019).
10
S. 189.012(2), F.S.
11 S. 189.012(3), F.S.

12 S. 205.022(5), F.S.
13 Ss. 205.033 and 205.043, F.S.
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DATE: 1/30/2020
Revenue Sources Based on Home Rule Authority

Pursuant to home rule authority, local governments may impose proprietary fees, regulatory fees, and
special assessments to pay the cost of providing a facility or service or regulating an activity. A
regulatory fee should not exceed the regulated activity's cost and is generally required to be applied
solely to the regulated activity's cost for which the fee is imposed. 14

Businesses and Occupations

General law determines whether local governments are able to regulate occupations and businesses,
and to what degree. 15 If state law preempts regulation for an occupation, then, generally, local
governments may not regulate that occupation. 16 For example, Florida law currently preempts local
regulation with regard to the following:
• assessing local fees associated with providing proof of licensure as a contractor, or providing,
recording, or filing evidence of worker's compensation insurance coverage by a contractor; 17
• assessing local fees and rules regarding low-voltage alarm system projects; 18
• tobacco and nicotine products; 19
• firearms, weapons, and ammunition; 20
• employment benefits; 21
• polystyrene products; 22
• public lodging establishments and public food service establishments; 23 and
• disposable plastic bags. 24

Conversely, Florida law also specifically grants local jurisdictions the right to regulate businesses,
occupations and professions in certain circumstances. 25 For example, Florida law specifically
authorizes regulations relating to:
• zoning and land use; 26
• the levy of "reasonable business, professional, and occupational regulatory fees, commensurate
with the cost of the regulatory activity, including consumer protection, on such classes of
businesses, professions, and occupations, the regulation of which has not been preempted by
the state or a county pursuant to a county charter"; 27
• the levy of local business taxes; 28
• building code inspection fees; 29
• tattoo establishments; 30
• massage practices; 31
• child care facilities; 32
• taxis and other vehicles for hire; 33 and

14
EDR, supra note 12, at 9.
15 Art. VIII, s. 1(f), Fla. Const.; Art. VII, s. 9(a), Fla. Const.; Art. VIII, s. 2(b), Fla. Const.; s. 166.021(1), F.S.
16 /d.; Wolf and Bolinger, supra note 17.
17 S. 553.80(7)(d), F.S.
18
S. 489.503(14), F.S.
19
Ch. 569, F.S., ands. 386.209, F.S.
20
S. 790.33(1), F.S.
21
S. 218.077, F.S.
22 S. 500.90, F.S.
23
S. 509.032, F.S.
24
S. 403.7033, F.S.
25 Supra note 16.

2s S. 125.01(1)(h), F.S.
27
S. 166.221, F.S.
28 Ch. 205, F.S.
29
S. 166.222, F.S.
30 S. 381.00791, F.S.
31 S. 480.052, F.S.
32
S. 402.306, F.S
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• waste and sewage collection. 34

Home-based Business Regulations

Currently, some local governments have ordinances specific to regulating home-based businesses, or
businesses which operate out of a residence. Some local governments regulate the types of
businesses which may be carried on at a residence, and others regulate the space in which business
may occur. Examples include:
• In Volusia County, home-based businesses are required to occupy no more than 25 percent of
the habitable floor area of the residence, 35
• In Tampa, home-based businesses may not be conducted in any accessory building; 36
• In Naples, home-based businesses are not allowed to conduct retail, wholesale or warehousing
activities at the residence; 37 and
• In Gainesville, a home-based business may not have more than one automobile used for the
home-based business parked on the premises within view of surrounding properties. Such
automobile may not have more than two signs, not exceeding two square feet in area, each
mounted flat against or painted along the sides. 38

Effect of the Bill

In order to be considered a home-based businesses, the bill requires that:
• the business operates, in whole or in part, from a residential property.
• the employees of the home-based business must reside in the residence, except that up to two
employees that do not reside at the residence may work at the residence. However, other
employees of the home-based business that do not primarily work at the residence are not
required to reside in the residence.
• parking related to the business activities of the home-based business complies with local zoning
requirements.
• as viewed from the street, the use of the residential property is consistent with the uses of the
residential areas that surround the property, however incidental and short term business uses
may be conducted at the residence.
• the activities of the home-based business are secondary to the property's use as a residential
dwelling.

The bill allows home-based businesses that operate from residential property to operate in an area
zoned for residential use.

Home-based businesses will only be subject to applicable business taxes in the county and municipality
where the home-based business is located.

The bill provides that local governments may not:
• prohibit, restrict, regulate, or license home-based businesses in a manner that is different from
other businesses in a local government's jurisdiction; or
• enact or enforce any ordinance, regulation, or policy, or take any action to license or otherwise
regulate a home-based business outside of what is allowed in the bill.

33 S. 125.01(1)(n), F.S.
34 S. 125.01(1)(k), F.S.
35 Volusia County, FL., Ch. 72, art. II, div. 8, s. 72-283.
36 Tampa, FL., Ch. 27, art. VI, div. 2, s. 27-282.5.

37 Naples, FL., Ch. 56, art. Ill, s. 56-92.
38 Gainesville, FL., Ch. 30, art. V, div. 2, s. 30-5.37.
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The bill allows a party to challenge any local government action regulating home-based businesses.
The prevailing party is entitled to recover reasonable attorney fees and costs incurred in challenging or
defending the action, including reasonable appellate attorney fees and costs.

B. SECTION DIRECTORY:

Section 1 Creates s. 559.955, F.S., relating to requirements for home-based businesses.

Section 2 Provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
Indeterminate.

2. Expenditures:
Indeterminate.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may allow more home-based businesses to operate more freely an efficiently.

D. FISCAL COMMENTS:
None.
Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, s. 18 of the Florida Constitution may apply
because this bill prohibits local governments, except the county and municipality where the home-
based business is located, from collecting business taxes from home-based businesses. However,
an exemption may apply given that laws having an insignificant fiscal impact are exempt from the
requirements of Art. VII, s. 18 of the Florida Constitution.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
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None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIDA H O U S E 0 F REPRESENTATIVES

PCS for HB 537 ORIGINAL 2020

1 A bill to be entitled
2 An act relating to home-based businesses; creating s.
3 559.955, F.S.; specifying conditions under which a
4 business is considered a home-based business;
5 authorizing a home-based business to operate in a
6 residential zone under certain circumstances;
7 prohibiting a local government from certain actions
8 relating to the licensure and regulation of home-based
9 businesses; providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Section 559.955, Florida Statutes, is created
14 to read:
15 559.955 Home-based businesses; local government
16 restrictions.-
17 (1) For purposes of this section, a business is considered
18 a home-based business if it operates, in whole or in part, from
19 a residential property and meets the following criteria:
20 (a) The employees of the home-based business who work at
21 the residential dwelling also reside in the residential
22 dwelling, except that up to two employees who do not reside at
23 the residential dwelling may work at the residential dwelling.
24 However, other employees of the home-based business who do not
25 primarily work at the residential dwelling are not required to

Page 1 of 3

CODING: Words stFieken are deletions; words underlined are additions.
PCS for hb0537-00
FLORIDA H O U S E 0 F REPRESENTATIVES

PCS for HB 537 ORIGINAL 2020

26 reside in the dwelling.
27 (b) Parking related to the business activities of the
28 home-based business complies with local zoning requirements.
29 (c) As viewed from the street, the use of the residential
30 property is consistent with the uses of the residential areas
31 that surround the property. However, incidental and short-term
32 business uses and activities may be conducted at the residential
33 property.
34 (d) The activities of the home-based business are
35 secondary to the property's use as a residential dwelling.
36 (2) A home-based business that operates from a residential
37 property as provided in subsection (1):
38 (a) May operate in an area zoned for residential use.
39 (b) May not be prohibited, restricted, regulated, or
40 licensed in a manner that is different from other businesses in
41 a local government's jurisdiction.
42 (c) Shall only be subject to applicable business taxes
43 under chapter 205 in the county and municipality in which the
44 home-based business is located.
45 (3) Local governments may not enact or enforce any
46 ordinance, regulation, or policy, or take any action to license
47 or otherwise regulate a home-based business in violation of this
48 section.
49 (4) A party may challenge any local government action in
50 violation of this section. The prevailing party in a challenge

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CODING: Words striekeR are deletions; words underlined are additions.
PCS for hb0537-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

PCS for HB 537 ORIGINAL 2020

51 is entitled to recover reasonable attorney fees and costs
52 incurred in challenging or defending the action, including
53 reasonable appellate attorney fees and costs.
54 Section 2. This act shall take effect July 1, 2020.

Page 3 of 3

CODING: Words stFioken are deletions; words underlined are additions.
PCS for hb0537-00
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 795 Pregnant Employees
SPONSOR(S): Joseph
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee Wright Anstead ~
2) Appropriations Committee

3) Commerce Committee

SUMMARY ANALYSIS
The Florida Civil Rights Act of 1992 (FCRA), patterned after Title II and Title VII of the federal Civil Rights Act
of 1964, prohibits discrimination on the basis of race, color, religion, sex, pregnancy, national origin, age,
handicap, or marital status in employment. The FCRA applies to certain employers that employ 15 or more
employees.

Under federal and Florida law, employers are not specifically required to provide "reasonable
accommodations" for pregnancy, childbirth or other pregnancy-related medical needs for female employees.
Currently, employers only have to accommodate pregnant employees if the employer has already provided
accommodations to other workers temporarily disabled for reasons unrelated to pregnancy, and if the female
employee has a pregnancy related disability. General pregnancy issues, childbirth issues, and other
pregnancy-related medical needs are not covered.

The bill ensures that employers "reasonably accommodate" female employees with needs related
to pregnancy, childbirth, and related conditions, unless it would cause an "undue hardship" for the employer.

The bill defines "undue hardship" to mean "an accommodation requiring significant difficulty or expense when
considered in light of the following factors:
• The nature, cost, and duration of the accommodation.
• The overall financial resources of the employer.
• The overall size of the business of the employer with respect to the number of employees and the
number, type, and location of the employer's facilities.
• The effect on expenses and resources or any other impacts of such accommodation on the employer's
operation."

The bill defines "reasonable accommodation" as making reasonable changes in the workplace, including, but
not limited to, providing assistance with manual labor; temporary modification in work schedules, seating, or
equipment; temporary relief from lifting requirements; reasonable time off to recover from childbirth; and
reasonable private space for lactation.

The bill includes an action for a claim of unlawful employment practices under the FCRA for failure to provide
reasonable accommodations and for denying employment opportunities based on the employer's need to
make reasonable accommodations because of a medical need related to pregnancy. The bill also requires an
employer to provide written notice of the right to be free from discrimination in relation to pregnancy.

There is no fiscal impact on local governments and an indeterminate fiscal impact on state government.

The bill has an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

Title II and VII of the Civil Rights Act of 19641

Title II of the federal Civil Rights Act of 1964 (Title II) prohibits discrimination on the basis of race, color,
religion, or national origin in certain places of public accommodation, such as hotels, restaurants, and
places of entertainment. Title VII of the Civil Rights Act of 1964 (Title VII) prohibits discrimination in
employment on the basis of race, color, religion, national origin, or sex. Title VII applies to employers
with 15 or more employees 2 and outlines a number of unlawful employment practices. For example,
Title VII makes it unlawful for an employer to refuse to hire, discharge, or otherwise discriminate
against an individual with respect to compensation, terms, conditions, or privileges of employment
based on race, color, religion, national origin, or sex. 3

Pregnancy Discrimination Act4

In 1976, the United States Supreme Court ruled in General Electric Co. v. Gilbert5 that Title VII did not
include pregnancy discrimination as a form of sex discrimination under its prohibition against unlawful
employment practices. In response to the decision, Congress passed the Pregnancy Discrimination Act
(PDA) in 1978. The PDA amended Title VII to expressly define the terms "because of sex" and "on the
basis of sex," to prohibit discrimination against a woman due to pregnancy, childbirth, or a medical
condition related to pregnancy or childbirth. 6 Under the PDA, an employer cannot discriminate against
a woman on the basis of pregnancy in hiring, fringe benefits (such as health insurance), pregnancy and
maternity leave, harassment, or any other term or condition of employment.7

Americans with Disabilities Act 8

Employers with 15 or more employees are covered by the Americans with Disabilities Act (ADA). Under
the ADA, employees who suffer from pregnancy-related disabilities, such as preeclampsia or diabetes,
are entitled to reasonable accommodation from their employers. A disability is a mental or physical
impairment that substantially limits a major life activity, such as standing, lifting, walking, sleeping, or
breathing. Pregnancy itself is not considered a disability under the ADA. 9

Generally, "reasonable accommodation" means changes or modifications to the employee's schedule,
duties, or workspace to help an employee perform the essential functions of the job. Examples of
reasonable accommodations may include modification of work hours, restriction on lifting, leaves of
absence, and transfer to a less demanding position. An employer is not required to take measures that

1 42 U.S.C. § 2000a et seq.; 42 U.S.C. § 2000e et seq.
2 42 U.S.C. § 2000e(b).
3 42 U.S.C. § 2000e-2(a).
4
Pub. L. No. 95-555, 95th Cong. (Oct. 31, 1978), codified as 42 U.S.C. § 2000e(k).
5 429 U.S. 125, 145 (1976).
6 The PDA defines the terms "because of sex" or "on the basis of sex" to include pregnancy, childbirth, or related

conditions and women who are affected by pregnancy, childbirth, or related conditions. It further states that these
individuals must be treated the same for employment purposes, including the receipt of benefits, as any other person who
is not so affected but has similar ability or inability to work.
7 For more information, see U.S. Equal Employment Opportunity Commission, Facts about Pregnancy Discrimination,

http://www.eeoc.gov/facts/fs-preq.html (last visited May 6, 2015).
8
42 U.S.C. § 12101 et seq.
9 Deborah England, Your Right to Accommodation During Pregnancy, Nola.com, https://www.nolo.com/legal-

encyclopedia/your-right-accommodation-during-pregnancy.html (last visited Jan. 31, 2020).
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would create an "undue burden," or changes that are too costly or difficult to make when considering
the employer's size and resources. 10

Florida Civil Rights Act of 1992

Patterned after Title II and Title VII, but providing broader protections, the Florida Civil Rights Act of
1992 (FCRA) was enacted to "secure for all individuals within the state freedom from discrimination
because of race, color, religion, sex, national origin, age, handicap, or marital status ... "11 in
employment and public accommodations. 12

Similar to Title VII, the FCRA provides a number of actions that, if undertaken because of or on the
basis of an individual's race, color, religion, sex, pregnancy, 13 national origin, age, handicap, or marital
status, are considered unlawful employment practices, including: 14
• Failing to hire an individual, or otherwise discriminating against an individual with respect to
compensation, terms, conditions, or privileges of employment;
• Limiting, segregating, or classifying employees or applicants for employment in ways that would
deprive such individuals of employment opportunities or adversely affect an individual's status
as an employee;
• Failing or refusing to refer an individual for employment;
• Excluding or expelling an individual from membership in a labor organization or limiting,
segregating, or classifying the membership of a labor organization;
• Discriminating in admission to, or employment in, any program established to provide
apprenticeship or other training for a profession, occupation, or trade;
• Discriminating in licensing, certification, credentials, examinations, or an organizational
membership required to engage in a profession, occupation, or trade; and
• Printing or publishing ads related to membership in certain labor organizations or employment
that indicate a preference, limitation, specification, or discrimination. 15

An employer under the FCRA is any person employing 15 or more employees for each working day in
each of 20 or more calendar weeks in the current or preceding calendar year, and any agent of such a
person. 16

Accommodations for Pregnant Employees

Under federal and Florida law, employers are not specifically required to accommodate pregnant
employees, but they are required to treat pregnant employees the same as non-pregnant employees
who are temporarily disabled for other reasons. 17

The law is less clear when it comes to an employer that provides an accommodation to some, but not
all, employees who are temporarily disabled for other reasons. 18 In Young v. UPS, 19 a pregnant

10
Id.
11 s. 760.01, F.S.
12 "Public accommodations" means places of public accommodation, lodgings, facilities principally engaged in selling food

for consumption on the premises, gasoline stations, places of exhibition or entertainment, and other covered
establishments. s. 760.02(11 ), F.S.
13
"Pregnancy" was added in 2015 as a result of a discrepancy in case law as to whether it was already included in "sex."
Ch. 2015-68, L.O.F.
14 s. 760.10, F.S. Note that this section does not apply to a religious corporation, association, educational institution, or

society which conditions employment opportunities to members of that religious corporation, association, educational
institution, or society.
15 s. 760.10, F.S.
16 S. 760.02(7), F.S.
17 California Fed. Sav. & Loan Ass'n v. Guerra, 479 U.S. 272, 288 (1987); England, supra note 9.

1s England, supra note 9.
19 Young v. United Parcel Service, 575 U.S. 206 (2015).
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employee sued UPS after she was denied light-duty work. UPS provided light-duty work to some
employees, including those who were injured on the job. But it didn't provide light duty to other
employees, including pregnant employees and employees injured off the job. The Supreme Court held
that employers are not required to accommodate pregnant employees any time they accommodate a
subset of non-pregnant employees. However, employers must be able to show a legitimate,
nondiscriminatory reason for the different treatment. If the employer doesn't have a sufficiently strong
reason for treating pregnant employees differently, that may be evidence of pretext for discrimination. 20

Florida does not have a specific law requiring employers to accommodate pregnancy-related needs,
regardless of other accommodations made for other employees, but instead requires that pregnant
employees be treated the same as non-pregnant employees who are similar in their ability or inability to
work. 21

Twenty-eight states have a law requiring some sort of accommodation based on pregnancy status. 22

Claims and Remedies under Title VII and the FCRA

A Florida employee may file a charge of an unlawful employment practice against an employer,
including one based upon pregnancy discrimination, with either the federal Equal Employment
Opportunity Commission (EEOC) or the Florida Commission on Human Relations (FCHR).

A person who wishes to file a complaint with the EEOC must do so within 300 days of a violation in a
jurisdiction with a fair employment practices agency (such as Florida, which has the FCHR}. 23 The
EEOC must investigate and make a reasonable cause determination within 120 days after the date of
the filing. 24 If the EEOC finds an absence of reasonable cause, the EEOC will dismiss the charge. If the
EEOC finds reasonable cause, the EEOC must engage in informal conferencing, conciliation, and
persuasion to remedy the unlawful employment practice. 25 After the EEOC concludes its investigation
and issues a "right-to-sue" letter to the plaintiff, the plaintiff must file a claim in federal court under Title
VII within 90 days of receipt of the letter. 26

A person who wishes to file a complaint with the FCHR must do so within 365 days of a violation. 27 The
FCHR must make a reasonable cause determination within 180 days after the filing of the complaint. 28
If the FCHR finds reasonable cause, the plaintiff may bring either a civil action or request an
administrative hearing. 29 A plaintiff is required to bring a civil action under the FCRA within one year of
the determination of reasonable cause by the FCHR. 30

An employee may demonstrate her case through direct evidence of discrimination, but if she instead
relies on circumstantial evidence, courts must utilize the McDonnell Ooug/as31 burden-shifting
framework. 32 Such framework requires that the party bringing the claim must first show that "(1) she is a
member of a protected class; (2) she was subjected to adverse employment action; (3) her employer

2o Id.; England, supra note 9.
21 California Fed. Sav. & Loan Ass'n v. Guerra, 479 U.S. 272, 288 (1987).
22 A Better Balance, State Pregnant Workers Fairness Laws, https://www.abetterbalance.org/resources/pregnant-worker-

fairness-legislative-successes/ (last visited Jan. 31, 2020).
23 42 U.S.C. § 2000e-5(e)(1). The enforcement procedures referenced in this paper do not apply to individuals affected by

federal agencies, who have a separate process. 29 C.F.R. part 1614.
24 42 U.S.C. §. 2000e-5(b).
2s Id.
26 42 U.S.C. § 2000e-5(f)(1 ).
21 S. 760.11 (1 ), F.S.
2a S. 760.11 (3), F.S.
29 S. 760.11(4), F.S.
30 S. 760.11 (5), F.S.
31 McDonnell Douglas Corp. v. Green, 411 U.S. 792 (1973).
32 Diaz v. Florida, 219 F.Supp.3d 1215 (S.D. Florida 2016)(citing Young v. United Parcel Service, 575 U.S. 206 (2015)).
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treated similarly situated employees [not belonging to the class] more favorably; and (4) she was
qualified to do the job." 33 Once she establishes her case, the burden shifts to the employer who then
must articulate a legitimate, non-discriminatory reason for the employment action. 34 If the employer is
able to satisfy this burden of production, the presumption of discrimination is refuted, and the burden
then falls on the employee to demonstrate that the alleged reason is actually a cause for
discrimination. 35

Remedies available to persons who bring claims based upon pregnancy discrimination differ depending
upon whether the claim is brought under Title VII or under the FCRA. If a plaintiff prevails under Title
VII or the FCRA, the plaintiff might be entitled to an order prohibiting the discriminatory practice, as well
as reinstatement or hiring, with or without back pay. 36 Depending upon the number of persons
employed by the defendant employer, a Title VII claimant may also recover from $50,000 to $300,000
in aggregated compensatory and punitive damages. 37

In contrast, there is no limit on compensatory damages under the FCRA, which include "damages for
mental anguish, loss of dignity, and any other intangible injuries. "38 Punitive damages under the FCRA
may not exceed $100,000. 39 However, the total recovery, including back pay, for a claimant who brings
a discrimination claim against the state or its subdivisions is limited under the FCRA to $300,000. 40

FCHR is required to make a notice which outlines information on the rights under the FCRA. Each
employer, employment agency, and labor organization must keep such notice posted in conspicuous
places upon its premises. 41

Effect of the Bill

The bill provides additional requirements of employers related to preventing pregnancy-related
discrimination in employment.

The bill defines the following terms for the FCRA:
• "Pregnancy" means pregnancy, childbirth, or related conditions, including, but not limited to,
lactation or the expression of breast milk.
• "Reasonable accommodation" means making reasonable changes in the workplace,
including, but not limited to, providing more frequent or longer breaks; assistance with manual
labor; temporary job restructuring; temporary modification in work schedules, seating, or
equipment; temporary relief from lifting requirements; temporary transfer to less strenuous or
less hazardous work; reasonable time off to recover from childbirth; and reasonable private,
nonrestroom space for lactation or the expression of breast milk.
• "Undue hardship" means an accommodation requiring significant difficulty or expense when
considered in light of the following factors:
o The nature, cost, and duration of the accommodation;
o The overall financial resources of the employer;
o The overall size of the business of the employer with respect to the number of
employees and the number, type, and location of the employer's facilities; and

33 Young v. United Parcel Service, 575 U.S. 206; Diaz v. Florida, 219 F.Supp.3d 1215 (citing Mccann v. Tilman, 526 F.3d
at 1373 (11th Cir. 2008)(citing EEOC v. Joe's Stone Crab, Inc., 220 F.3d 1263, 1286 (11th Cir. 2000))).
34 Diaz v. Florida, 219 F.Supp.3d 1215 (citing Burke-Fowler v. Orange Cty., Fla., 447 F.3d 1319, 1323 (11th Cir. 2006)).
35 Diaz v. Florida, 219 F.Supp.3d 1215 (citing Wilson v. 8/E Aerospace, Inc, 376 F.3d 1079 (11th Cir, 2004)).

36 Id.; 42 U.S.C. § 2000e-5(g).
37 42 U.S.C. §1981a(b)(3)
38 S. 760.11(5), F.S.
39 Id.
40 S. 760.11(5), F.S., referring to the limited waiver of sovereign immunity ins. 768.28, F.S. Unlike the FCRA, there

apparently is no limitation on total recovery, including back pay, for a claimant who brings suit against the state or its
subdivisions under Title VII, though the caps on compensatory and punitive damages would apply.
41 S. 760.10(10), F.S.
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o The effect on expenses and resources or any other impacts of such accommodation on
the employer's operation.

The bill provides additional actions which constitute a claim of unlawful employment practices under the
FCRA for:
• failure to make reasonable accommodations, upon request, for an employee with a medical
need related to pregnancy, unless the employer can demonstrate that the accommodation
would impose an undue hardship on the operation of the employer's business. If an employer's
policy requires similar accommodations to be made, or if similar accommodations have been
made in the past or are currently being made for other employees for any reason, there is a
rebuttable presumption that the accommodation does not impose an undue hardship on the
employer.
• denying employment opportunities to an otherwise qualified job applicant or employee, if such
denial is based on the employer's need to make reasonable accommodations for the applicant
or employee because of a medical need related to pregnancy.
• requiring an employee to take leave if another reasonable accommodation can be provided.
• taking adverse action against an employee in the terms, conditions, or privileges of employment
for requesting or using a reasonable accommodation. For purposes of this subparagraph, the
term "adverse action" includes, but is not limited to, failing to reinstate an employee to her
original position, or an equivalent position, with equivalent pay, seniority, and benefits after the
need for such accommodation ceases or counting an employee's absences from work due to a
medical need related to pregnancy against the employee under the employer's no-fault
attendance policy.

An employer will not be required to create additional employment opportunities that the employer would
not otherwise have created or to discharge an employee, transfer an employee who has more seniority,
or promote an employee who is not qualified for the position unless the employer has a policy for doing
so for other classes of employees who have a right to accommodations.

An employer must provide written notice of the right to be free from discrimination in relation to
pregnancy, including the right to reasonable accommodations, to:
• New employees at the commencement of employment.
• Existing employees beginning on July 1, 2020, but no later than November 1, 2020.
• Any employee who notifies an employer of her pregnancy no later than 10 days after such
notification.

An employer must post a written notice in conspicuous places on its premises of the right to be free
from discrimination in relation to a medical need related to pregnancy, including the right to reasonable
accommodations.

FCHR must develop education and outreach programs as necessary to inform employers, employees,
and job applicants about their rights and responsibilities under the bill.

The bill may not be construed to preempt, limit, diminish, or otherwise affect any employer policy or
provision or other provision of law relating to sex or pregnancy discrimination or in any way diminish the
coverage for pregnancy under the FCRA or any other provision of ch. 760, F.S.

The effective date of the bill is July 1, 2020.

B. SECTION DIRECTORY:

Section 1 Amends s. 760.02, F.S., providing definitions for "reasonable accommodation" and
"undue hardship."

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Section 2 Amends s. 760.10, F.S., providing requirements for certain employers to take certain
actions related to an employee's needs related to pregnancy.

Section 3 Provides an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
There may be indeterminate expenditures due to additional signage required and determining
appropriate spaces for breastfeeding mothers. In addition, the Commission on Human Relations is
required to provide education and outreach for the acts within this legislation with no additional
appropriation. 42

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may provide more job stability for employees with pregnancy-related job needs. The bill may be
more costly for businesses who need to provide more job accommodations than currently required.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
FCHR will need to adopt rules related to developing programs and outreach materials related to
pregnancy discriminations. There is sufficient rulemaking authority.

42 Florida Department of Management Services, Agency Analysis of 2020 House Bill 795, p. 4 (Jan. 14, 2020).
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C. DRAFTING ISSUES OR OTHER COMMENTS:

None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 795 2020

1 A bill to be entitled
2 An act relating to pregnant employees; amending s.
3 760.02, F.S.; providing definitions; amending s.
4 760.10, F.S.; prohibiting certain unlawful employment
5 practices against specified employees and job
6 applicants; requiring an employer to provide a written
7 notice of certain rights to employees and post such
8 notice in conspicuous places on its premises;
9 requiring the Florida Commission on Human Relations to
10 develop certain education and outreach programs;
11 providing construction; providing an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Subsections (12), (13), and (14) are added to
16 section 760.02, Florida Statutes, to read:
17 760.02 Definitions.-For the purposes of ss. 760.01-760.11
18 and 509.092, the term:
19 ( 12) "Pregnancy" means pregnancy, childbirth, or related
20 conditions, including, but not limited to, lactation or the
21 expression of breast milk.
22 (13) "Reasonable accommodation" means making reasonable
23 changes in the workplace, including, but not limited to,
24 providing more frequent or longer breaks; assistance with manual
25 labor; temporary job restructuring; temporary modification in

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 795 2020

26 work schedules, seating, or equipment; temporary relief from
27 lifting requirements; temporary transfer to less strenuous or
28 less hazardous work; reasonable time off to recover from
29 childbirth; and reasonable private, nonrestroom space for
30 lactation or the expression of breast milk.
31 ( 14) "Undue hardship" means an accommodation requiring
32 significant difficulty or expense when considered in light of
33 the following factors:
34 (a) The nature, cost, and duration of the accommodation.
35 (b) The overall financial resources of the employer.
36 (c) The overall size of the business of the employer with
37 respect to the number of employees and the number, type, and
38 location of the employer's facilities.
39 (d) The effect on expenses and resources or any other
40 impacts of such accommodation on the employer's operation.
41 Section 2. Paragraph (c) is added to subsection (1) of
42 section 760.10, Florida Statutes, and subsections (11), (12),
43 and (13) are added to that section, to read:
44 760.10 Unlawful employment practices.-
45 (1) It is an unlawful employment practice for an employer:
46 (c)l. To fail to make reasonable accommodations, upon
47 request, for an employee with a medical need related to
48 pregnancy, unless the employer can demonstrate that the
49 accommodation would impose an undue hardship on the operation of
50 the employer's business. If an employer's policy requires

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HB 795 2020

51 similar accommodations to be made, or if similar accommodations
52 have been made in the past or are currently being made for other
53 employees for any reason, there is a rebuttable presumption that
54 the accommodation does not impose an undue hardship on the
55 employer.
56 2. To deny employment opportunities to an otherwise
57 qualified job applicant or employee, if such denial is based on
58 the employer's need to make reasonable accommodations for the
59 applicant or employee because of a medical need related to
60 pregnancy.
61 3. To require an employee to take leave if another
62 reasonable accommodation can be provided.
63 4. To take adverse action against an employee in the
64 terms, conditions, or privileges of employment for requesting or
65 using a reasonable accommodation. For purposes of this
66 subparagraph, the term "adverse action'' includes, but is not
67 limited to, failing to reinstate an employee to her original
68 position, or an equivalent position, with equivalent pay,
69 seniority, and benefits after the need for such accommodation
70 ceases or counting an employee's absences from work due to a
71 medical need related to pregnancy against the employee under the
72 employer's no-fault attendance policy.
73
74 This paragraph does not require an employer to create additional
75 employment opportunities that the employer would not otherwise

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HB 795 2020

76 have created or to discharge an employee, transfer an employee
77 who has more seniority, or promote an employee who is not
78 qualified for the position unless the employer has a policy for
79 doing so for other classes of employees who have a right to
80 accommodations.
81 (11) (a) An employer shall provide written notice of the
82 right to be free from discrimination in relation to pregnancy,
83 including the right to reasonable accommodations, to:
84 1. New employees at the commencement of employment.
85 2. Existing employees beginning on July 1, 2020, but no
86 later than November 1, 2020.
87 3. Any employee who notifies an employer of her pregnancy
88 no later than 10 days after such notification.
89 (b} An employer shall post a written notice in conspicuous
90 places on its premises of the right to be free from
91 discrimination in relation to a medical need related to
92 pregnancy, including the right to reasonable accommodations.
93 (12) The commission shall develop education and outreach
94 programs as necessary to inform employers, employees, and job
95 applicants about their rights and responsibilities under
96 paragraph (1) (c).
97 (13) This section may not be construed to preempt, limit,
98 diminish, or otherwise affect any employer policy or provision
99 or other provision of law relating to sex or pregnancy
100 discrimination or in any way diminish the coverage for pregnancy

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 795 2020

101 under any other provision of this chapter.
102 Section 3. This act shall take effect July 1, 2020.

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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: PCS for HB 867 Public Accountancy
SPONSOR(S): Business & Professions Subcommittee
TIED BILLS: IDEN./SIM. BILLS: SB 1140

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

Orig. Comm.: Business & Professions Wright Anstead f:o-
Subcommittee

SUMMARY ANALYSIS
In Florida, public accountancy is regulated by the Board of Accountancy under the Department of Business
and Professional Regulation. The practice of public accountancy 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. In order to practice public accountancy, a person
must be licensed as a certified public accountant (CPA).

Every biennium, CPAs must complete 80 hours of continuing professional education (CPE), by board rule. At
least 5 percent of the total hours required by the board must be in the subject of ethics as applicable to the
practice of public accounting.

Applicants for CPA licensure by endorsement must be of good moral character; complete certain CPE
requirements; and either not be licensed but have passed an equivalent examination in another state or
territory, or hold a license from another state or territory if the criteria issuance is equivalent to that of Florida.

Inactive status for CPA licenses can be initiated voluntarily by the licensee, or for failure to meet the CPE
license renewal requirements. The board is authorized to adopt rules establishing the minimum requirements
for placing a license on inactive status, renewing an inactive license, and reactivating the inactive license.
Currently, a retired status for CPA licensure does not exist.

Current law allows counties and school districts, through a referendum or a county commission vote, to levy a
discretionary sales surtax. For all discretionary sales surtax referendum held on or after March 23, 2018, a
performance audit of the program associated with the proposed surtax must be conducted by an independent
CPA, who is selected and paid by the Office of Program Policy Analysis and Government Accountability.

The bill:
• Clarifies the licensure by endorsement provision for applicants that have passed an examination but do
not hold a license in "another'' state or territory, to instead not require a license in "any" state or territory;
• Allows nonresidents seeking CPA license renewal to satisfy the CPE requirements (except for the
ethics component), with applicable CPE requirements in the state in which his or her office is located,
or Florida CPE requirements, if the other state has no CPE license renewal requirements;
• Specifies that a "majority" of the total CPE hours required for ethics training must include a review of
the provisions of ch. 455, F.S., and ch. 473, F.S., and the related administrative rules; and
• Creates a "retired status" for active or inactive CPA licensees over 55 years old, including provisions
governing application, good standing, volunteer work, competency, reactivation, reentry into active
status, reimbursements, and the use of a title.
• Removes the requirement that performance audits for discretionary sales surtaxes must be performed
by a CPA

The bill does not have a fiscal impact on state or local governments.

The bill has an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: pcs0867.BPS.DOCX
DATE: 1/30/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Practice of Public Accountancy

Background

The Florida Board of Accounting (board) in the Department of Business and Professional Regulation
(DBPR) is the agency responsible for regulating and licensing more than 35,000 active and inactive
certified public accountants (CPA) and more than 5,400 accounting firms in Florida. The Division of
Certified Public Accounting provides administrative support to the 9-member board, which consists of 7
CPAs and 2 laypersons. 1

To engage in the practice of public accounting, an individual or firm must be licensed and business
entities must meet certain formation requirements. 2

The "practice of public accountancy" 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. 3

A person may be charged with a first-degree misdemeanor if they are not a licensed CPA and they
perform: 4
• Services involving the expression of an opinion on financial statements,
• The attestation as an expert in accountancy to the reliability or fairness of presentation of
finar:,cial information,
• The utilization of any form of opinion or financial statements that provide a level of assurance,
• The utilization of any form of disclaimer of opinion which conveys an assurance of reliability as
to matters not specifically disclaimed, or
• The expression of an opinion on the reliability of an assertion by one party for the use by a third
party.

License by Endorsement

An applicant is eligible for licensure by endorsement if the applicant: 5
• is of good moral character;
• has completed 80 hours of continuing professional education (CPE) if it has been at least 2
years since passing the licensing examination; 6 and either:
o is not licensed, but has otherwise met the licensing requirements and has passed a
licensing examination that is substantially equivalent to the Florida examination; or
o holds a valid license to practice public accounting issued by another state or territory of
the United States, if the criteria for issuance of such license are substantially equivalent
to a Florida license or is otherwise permitted.

1
S. 473.303, F.S.
2
S. 473.302, F.S.
3
S. 473.302(8), F.S.
4
S. 473.322(l)(c), F.S.
5 S. 468.8414(3), (4), F.S.
6
R. 61Hl-29.003, F.A.C.
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Continuing Education

CPAs are required to complete 80 hours7 of CPE in public accounting subjects every 2 years to renew
their license. The board has the authority to prescribe by rule additional CPE 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. 8

At least 25 percent of the total hours required by the board must be in accounting-related and auditing-
related subjects, as distinguished from other subjects that include federal and local taxation matters
and management services. 9

Five percent of the total hours required by the board must be in ethics applicable to the practice of
public accounting. This requirement must be administered by providers approved by the board and
include a review of the provisions of ch. 455, F.S., ch. 473, F.S., and the related administrative rules. 10

Inactive Licenses

CPAs are authorized to request their license be placed on inactive status, or the licensee may be
placed on inactive status for failing to meet the CPE requirements for license renewal. The board is
authorized to adopt rules establishing the minimum requirements for placing a license on inactive
status, renewing an inactive license, and reactivating the inactive license. 11

The maximum CPE requirements for reactivating an inactive or delinquent license are 120 hours,
including:
• At least 30 hours in accounting-related and auditing-related subjects;
• Not more than 30 hours in behavioral subjects; and
• A minimum of 8 hours in ethics subjects approved by the board.

Retired Status

The American Institute of CPAs (AICPA) estimates that approximately 75 percent of its members will be
eligible to retire by the year 2020. According to AICPA, "many of these retirees are well respected
business leaders in their communities who would like to find ways to continue to be of service, without
necessarily remaining an active CPA in practice." 12

The AICPA provides a uniform retired CPA status in their model rules that states may adopt allowing
retired CPAs to offer a limited array of volunteer, uncompensated services to the public. Inactive CPAs,
of at least 55 years of age are allowed to refer to themselves as "Retired-CPAs" and register as such
with their state board of accountancy. They are able to participate in activities such as volunteer tax
preparation services, government-sponsored business mentoring programs, and on boards of nonprofit
organizations. 13

Effect of the Bill

The bill revises the CPA license by endorsement provision for applicants that have passed an
examination but do not hold a license in "another" state or territory. The bill simply changes "another''

7
S. 473.312(l)(a), F.S. allows the board to require between 48 and 80 hours ofCPE every 2 years. The board requires 80 hours in r.
6IH1-33.003, F.A.C.
8
S. 473.312(1 )(a), F.S.
9 Id.
10
S. 473.312(l)(b),(c), F.S.
11
S. 473.313, F.S.
12
American Institute of Certified Public Accountants, https://www.aicpa.org/advocacy/state/retiredcpastatusexposuredraft.html (last
visited Jan. 10, 2020).
13 Id.
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state or territory to "any" state or territory.

The bill allows nonresident CPA licensees who are seeking renewal of a license in this state to satisfy
the CPE requirements (except for the ethics component), if the nonresident licensee has complied with
applicable CPE requirements in the state in which his or her office is located. If the state in which the
nonresident licensee's office is located has no CPE license renewal requirements, the nonresident
licensee must comply with Florida CPE requirements.

The bill specifies that a "majority" of the total CPE hours required for ethics training must include a
review of the provisions of ch. 455, F.S., ch. 473, F.S., and the related administrative rules. Currently,
no amount is specified.

The bill creates a "retired status" for CPA licensees. The bill defines a "retired licensee" as a licensee
whose license has been placed in retired status by the department.

Retired status license applicants are required to:
• Be at least 55 years old;
• Hold a current active or inactive CPA license;
• Apply for the status to DBPR; and
• Be in good standing and not the subject of any sanction or disciplinary action.

Applications must be prescribed by the board and the applicant must attest that they have no
association with accounting or any of the services described ins. 473.302(8)(a), (c), or (d), F.S.

Licensees granted retired status who reenter the workforce in a position that has an association with
accounting or any of the services described ins. 473.302(8)(a), (c), or (d), F.S., automatically lose the
retired status except for the uncompensated volunteer services that retirees are allowed to participate
in.

Licensees granted retired status are allowed 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 such as the Internal
Revenue Service's Volunteer Income Tax Assistance program or the Small Business
Administration's SCORE program; and
• Participate in an advisory role for a similar charitable, civic, or other nonprofit organization.

The board must require retired licensees to affirm in writing their understanding of the limited types of
activities allowed while in retired status and their professional duty to ensure competency to participate
in the activities.

Retired licensees are authorized to:
• Accept routine reimbursement for actual costs of travel and meals associated with volunteer
services or de minimis per diem amounts paid to the licensee to cover such expenses as
allowed by law;
• Use the title of "retired CPA" on business cards, letterhead or other printed or electronic
documents as long as it is used in a manner that is not confusing to the public; and
• Reactivate the license in a conditional manner determined by the board. The conditions of
reactivation must require the payment of fees and the completion of any CPE requirements.

Retired licensees are not required to:
• Have a certificate issued with the word "retired" on the certificate; or
• Maintain the CPE requirements under s. 473.312, F.S.

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Retired licensees are prohibited from offering or rendering professional services that require:
• The licensee's signature; and
• Use of the CPA title, regardless of whether the word "retired" is attached to such title.

Performance Audits for Discretionary Sales Surtaxes

The Florida Constitution preempts all forms of taxation, except ad valorem taxes on real and tangible
personal property, to the state unless otherwise provided by general law. 14 Current law provides
counties and school districts with limited authority to levy a discretionary sales surtax for specific
purposes on transactions subject to state sales tax. 15 These purposes include:
• Operating a transportation system in a charter county; 16
• Financing local government infrastructure projects; 17
• Providing additional revenue for counties having less than 50,000 residents as of April 1,
1992; 18
• Providing medical care for indigent persons; 19
• Funding trauma centers; 20
• Operating, maintaining, and administering a county public general hospital; 21
• Constructing and renovating schools; 22
• Providing emergency fire rescue services and facilities; and 23
• Funding pension liability shortfalls. 24

Most local discretionary sales surtaxes may only be approved by referendum, while some may be
approved by an extraordinary vote of the county commission. 25

A "performance audit" means an examination of the program conducted according to applicable
government auditing standards or auditing and evaluation standards of other appropriate authoritative
bodies, including the effectiveness of the program, the structure and design of the program, alternative
methods of achieving the goals of the program, performance measures that may be used to track
program accomplishments, the accuracy and adequacy of public documents, and reports related to the
program, and compliance of the program with applicable policies, rules, and laws. 26

For all discretionary sales surtax referendum held on or after March 23, 2018, a performance audit of
the government program associated with the proposed surtax must be conducted by an independent,
licensed CPA. 27 The Office of Program Policy Analysis and Government Accountability (OPPAGA) is
responsible for both selecting the CPA and paying for the CPA's services. OPPAGA must procure the
CPA to conduct the performance audit within 60 days of receiving the final resolution or ordinance. 28
The results of the performance audit, including any findings, recommendations, or other accompanying

14 Art. VII, s. 1(a), Fla. Const.
15 Ss. 212.054 and 212.055, F.S.
16
S. 212.055(1), F.S.
17 S. 212.055(2), F.S.
18 S. 212.055(3), F.S.; Note that the small county surtax may be levied by extraordinary vote of the county governing board if the

proceeds are to be expended only for operating purposes.
19 S. 212.055(4)(a), F.S. (for counties with more than 800,000 residents); s. 212.055(7), F.S. (for counties with less than 800,000

residents).
20 S. 212.055(4)(b), F.S.
21 S. 212.055(5), F.S.

22 S. 212.055(6), F.S.
23 S. 212.055(8), F.S.
24 S. 212.055(9), F.S.
25 See generally s. 212.055, F.S.; but sees. 212.055(3), F.S. (small county surtax may be approved by extraordinary vote of the county

commission as long as surtax revenues are not used for servicing bond indebtedness), s. 212.055(4), F.S. (indigent care and trauma
center surtax may be approved by extraordinary vote of the county commission), ands. 212.055(5), F.S. (county public hospital surtax
may be approved by extraordinary vote of the county commission).
2s S. 212.055(10)(c), F.S.
2 7 S. 212.055(10)(a), F.S.
28 S. 212.055(11)(b)3., F.S.
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documents, must be made available on the website of the county or school district at least 60 days prior
to the referendum and must be maintained on the website for at least 2 years. 29

Effect of the Bill

The bill removes the requirement that performance audits for discretionary sales surtaxes must be
performed by an independent CPA. Instead, such performance audits must be performed by a vendor
experienced in performance audits and reviews.

B. SECTION DIRECTORY:
Section 1 Amends s. 212.055, F.S., removing the requirement that performance audits for
discretionary sales surtaxes be performed by a CPA.

Section 2 Amends s. 473.308, F.S., revising a requirement for obtaining a license by endorsement.

Section 3 Amends s. 473.311, F.S., providing license renewal requirements for nonresident
licensees.

Section 4 Amends s. 473.312, F.S., providing requirements for continuing education content.

Section 5 Amends s. 473.313, F.S., providing requirements for retired status licenses.

Section 6 Provides an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill will allow retired CPAs to serve their community in certain areas of public accountancy without
maintaining a license with DBPR. Some out-of-state CPAs may need to complete less CPE in order to
maintain a Florida CPA license.

D. FISCAL COMMENTS:
None.

29 S. 212.055(10)(b), F.S.
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Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The board will need to update rules regarding CPE and generate rules for retired status licenses. There
is sufficient rulemaking authority to do so.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

PCS for HB 867 2020

1 A bill to be entitled
2 An act relating to public accountancy; amending s.
3 212.055, F.S.; removing the requirement that the
4 surtax performance audit be performed by a certified
5 public account licensed pursuant to ch. 473, F.S.;
6 amending s. 473.308, F.S.; requiring certain
7 applicants to not be licensed in any state or
8 territory in order to be licensed by endorsement;
9 amending s. 473.311, F.S.; providing license renewal
10 requirements for nonresident licensees; amending s.
11 473.312, F.S.; requiring that a majority of the hours
12 required for continuing education include specific
13 content; amending s. 473.313, F.S.; authorizing
14 certain Florida certified public accountants to apply
15 to the Department of Business and Professional
16 Regulation to have their license placed in a retired
17 status; providing requirements for such conversion;
18 providing requirements and prohibitions for retired
19 licensees; authorizing retired licensees to use a
20 specified title under certain circumstances; providing
21 that retired licensees are not required to maintain
22 continuing education requirements; authorizing retired
23 licensees to reactivate their licenses if certain
24 conditions are met; defining the term "retired
25 licensee"; providing an effective date.

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FLORIDA H O U S E 0 F REPRESENTATIVES

PCS for HB 867 2020

26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Subsections (1) and (11) of section 212.055,
30 Florida Statutes, are amended to read:
31 212.055 Discretionary sales surtaxes; legislative intent;
32 authorization and use of proceeds.-It is the legislative intent
33 that any authorization for imposition of a discretionary sales
34 surtax shall be published in the Florida Statutes as a
35 subsection of this section, irrespective of the duration of the
36 levy. Each enactment shall specify the types of counties
37 authorized to levy; the rate or rates which may be imposed; the
38 maximum length of time the surtax may be imposed, if any; the
39 procedure which must be followed to secure voter approval, if
40 required; the purpose for which the proceeds may be expended;
41 and such other requirements as the Legislature may provide.
42 Taxable transactions and administrative procedures shall be as
43 provided ins. 212.054.
44 (1) CHARTER COUNTY AND REGIONAL TRANSPORTATION SYSTEM
45 SURTAX.-
46 (c)l. The proposal to adopt a discretionary sales surtax
47 as provided in this subsection and to create a trust fund within
48 the county accounts shall be placed on the ballot in accordance
49 with law and must be approved in a referendum held at a general
50 election in accordance with subsection (10).

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FLORIDA H O U S E 0 F REPRESENTATIVES

PCS for HB 867 2020

51 2. If the proposal to adopt a surtax is by initiative, the
52 petition sponsor must, at least 180 days before the proposed
53 referendum, comply with all of the following:
54 a. Provide a copy of the final resolution or ordinance to
55 the Office of Program Policy Analysis and Government
56 Accountability. The Office of Program Policy Analysis and
57 Government Accountability shall procure a vendor experienced in
58 performance audits and reviews certified public accountant in
59 accordance with subsection (11) for the performance audit.
60 b. File the initiative petition and its required valid
61 signatures with the supervisor of elections. The supervisor of
62 elections shall verify signatures and retain signature forms in
63 the same manner as required for initiatives under s.
64 100.371 (11).
65 3. The failure of an initiative sponsor to comply with the
66 requirements of subparagraph 2. renders any referendum held
67 void.
68 (11) PERFORMANCE AUDIT.-
69 (a) To adopt a discretionary sales surtax under this
70 section, an independent certified public accountant licensed
71 pursuant to chapter 473 shall conduct a performance audit of the
72 program associated with the proposed surtax shall be conducted.
73 (b)l. At least 180 days before the referendum is held, the
74 county or school district shall provide a copy of the final
75 resolution or ordinance to the Office of Program Policy Analysis

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PCS for HB 867 2020

76 and Government Accountability.
77 2. Within 60 days after receiving the final resolution or
78 ordinance, the Office of Program Policy Analysis and Government
79 Accountability shall procure the performance audit certified
80 public accountant and may use carryforward funds to pay for the
81 performance audit services of the certified public accountant.
82 3. At least 60 days before the referendum is held, the
83 performance audit must be completed and the audit report,
84 including any findings, recommendations, or other accompanying
85 documents, must be made available on the official website of the
86 county or school district.
87 4. The county or school district shall keep the
88 information on its website for 2 years from the date it was
89 posted.
90 5. The failure to comply with the requirements under
91 subparagraph 1. or subparagraph 3. renders any referendum held
92 to adopt a discretionary sales surtax void.
93 (c) For purposes of this subsection, the term "performance
94 audit" means an examination of the program conducted according
95 to applicable government auditing standards or auditing and
96 evaluation standards of other appropriate authoritative bodies.
97 At a minimum, a performance audit must include an examination of
98 issues related to the following:
99 1. The economy, efficiency, or effectiveness of the
100 program.

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101 2. The structure or design of the program to accomplish
102 its goals and objectives.
103 3. Alternative methods of providing program services or
104 products.
105 4. Goals, objectives, and performance measures used by the
106 program to monitor and report program accomplishments.
107 5. The accuracy or adequacy of public documents, reports,
108 and requests prepared by the county or school district which
109 relate to the program.
110 6. Compliance of the program with appropriate policies,
111 rules, and laws.
112 (d) This subsection does not apply to a referendum held to
113 adopt the same discretionary surtax that was in place during the
114 month of December immediately before the date of the referendum.
115 Section 2. Subsection (7) of section 473.308, Florida
116 Statutes, is amended to read:
117 473.308 Licensure.-
118 (7) The board shall certify as qualified for a license by
119 endorsement an applicant who:
120 (a)l. Is not licensed and has not been licensed in any
121 another state or territory and who has met the requirements of
122 this section for education, work experience, and good moral
123 character and has passed a national, regional, state, or
124 territorial licensing examination that is substantially
125 equivalent to the examination required bys. 473.306; and

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126 2. Has completed such continuing education courses as the
127 board deems appropriate, within the limits for each applicable
128 2-year period as set forth ins. 473.312, but at least such
129 courses as are equivalent to the continuing education
130 requirements for a Florida certified public accountant licensed
131 in this state during the 2 years immediately preceding her or
132 his application for licensure by endorsement; or
133 (b}l.a. Holds a valid license to practice public
134 accounting issued by another state or territory of the United
135 States, if the criteria for issuance of such license were
136 substantially equivalent to the licensure criteria that existed
137 in this state at the time the license was issued;
138 b. Holds a valid license to practice public accounting
139 issued by another state or territory of the United States but
140 the criteria for issuance of such license did not meet the
141 requirements of sub-subparagraph a.; has met the requirements of
142 this section for education, work experience, and good moral
143 character; and has passed a national, regional, state, or
144 territorial licensing examination that is substantially
145 equivalent to the examination required bys. 473.306; or
146 c. Holds a valid license to practice public accounting
147 issued by another state or territory of the United States for at
148 least 10 years before the date of application; has passed a
149 national, regional, state, or territorial licensing examination
150 that is substantially equivalent to the examination required by

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151 s. 473.306; and has met the requirements of this section for
152 good moral character; and
153 2. Has completed continuing education courses that are
154 equivalent to the continuing education requirements for a
155 Florida certified public accountant licensed in this state
156 during the 2 years immediately preceding her or his application
157 for licensure by endorsement.
158 Section 3. Subsection (1) of section 473.311, Florida
159 Statutes, is amended to read:
160 473.311 Renewal of license.-
161 (l)J...§1 The department shall renew a license issued under
162 s. 473.308 upon receipt of the renewal application and fee and
163 upon certification by the board that the Florida certified
164 public accountant has satisfactorily completed the continuing
165 education requirements of s. 473.312.
166 (b) A nonresident licensee seeking renewal of a license in
167 this state shall be determined to have met the continuing
168 education requirements ins. 473.312, except for the
169 requirements ins. 473.312(1) (c), if the licensee has complied
170 with the continuing education requirements applicable in the
171 state in which his or her office is located. If the state in
172 which the nonresident licensee's office is located has no
173 continuing education requirements for license renewals, the
174 nonresident licensee must comply with the continuing education
175 requirements ins. 473.312.

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176 Section 4. Paragraph (c) of subsection (1) of section
177 473.312, Florida Statutes, is amended to read:
178 473.312 Continuing education.-
179 ( 1)
180 (c) Not less than 5 percent of the total hours required by
181 the board shall be in ethics applicable to the practice of
182 public accounting. This requirement shall be administered by
183 providers approved by the board and a majority of the hours
184 shall include a review of the provisions of chapter 455 and this
185 chapter and the related administrative rules.
186 Section 5. Section 473.313, Florida Statutes, is amended
187 to read:
188 473.313 Inactive status and retired status.-
189 (1) A Florida certified public accountant may request that
190 her or his license be placed in an inactive status by making
191 application to the department. The board may prescribe by rule
192 fees for placing a license on inactive status, renewal of
193 inactive status, and reactivation of an inactive license.
194 ~+2+ A license that has become inactive under this
195 subsection+±-+- or for failure to complete the requirements ins.
196 473.312 may be reactivated under s. 473.311 upon application to
197 the department. The board may prescribe by rule continuing
198 education requirements as a condition of reactivating a license.
199 The maximum continuing education requirements for reactivating a
200 license are 120 hours, including at least 30 hours in

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201 accounting-related and auditing-related subjects, not more than
202 30 hours in behavioral subjects, and a minimum of 8 hours in
203 ethics subjects approved by the board, for the reactivation of a
204 license that is inactive or delinquent.
205 J..!21+3+ A license that is delinquent for failure to report
206 completion of the requirements ins. 473.312 may be reactivated
207 under s. 473.311 upon application to the department.
208 Reactivation requires the payment of an application fee as
209 determined by the board and certification by the Florida
210 certified public accountant that the applicant satisfactorily
211 completed the continuing education requirements set forth under
212 s. 473.311. If the license is delinquent on January 1 because of
213 failure to report completed continuing education requirements,
214 the applicant must submit a complete application to the board by
215 March 15 immediately after the delinquent period.
216 J.£1+4+- Any Florida certified public accountant holding an
217 inactive license may be permitted to reactivate such license in
218 a conditional manner. The conditions of reactivation shall
219 require the payment of fees and the completion of required
220 continuing education.
221 ~+§+ Notwithstanding the provisions of s. 455.271, the
222 board may, at its discretion, reinstate the license of an
223 individual whose license has become null and void if the
224 individual has made a good faith effort to comply with this
225 section but has failed to comply because of illness or unusual

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226 hardship. The individual shall apply to the board for
227 reinstatement in a manner prescribed by rules of the board and
228 shall pay an application fee in an amount determined by rule of
229 the board. The board shall require that the individual meet all
230 continuing education requirements as provided in subsection (2),
231 pay appropriate licensing fees, and otherwise be eligible for
232 renewal of licensure under this chapter.
233 (2) A Florida certified public accountant who is at least
234 55 years of age and currently holds an active or inactive
235 license under this chapter may apply to the department for her
236 or his license to be placed in a retired status. The application
237 must be prescribed by the board and must state that the
238 applicant has no association with accounting or any of the
239 services described ins. 473.302(8)(a), (c), or (d). Ifa
240 licensee who has been granted retired status reenters the
241 workforce in a position that has an association with accounting
242 or any of the services described in s. 473.302 (8) (a), (c), or
243 (d), the licensee automatically loses her or his retired status
244 except as provided in paragraph (a).
245 (a) A retired licensee who serves without compensation on
246 a board of directors or board of trustees, provides volunteer
247 tax preparation services, participates in a government-sponsored
248 business mentoring program such as the Internal Revenue
249 Service's Volunteer Income Tax Assistance program or the Small
250 Business Administration's SCORE program, or participates in an

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251 advisory role for a similar charitable, civic, or other
252 nonprofit organization shall continue to be eligible for retired
253 status.
254 (b} The board shall require a retired licensee to affirm
255 in writing her or his understanding of the limited types of
256 activities in which she or he may engage while in retired status
257 and that she or he has a professional duty to ensure that she or
258 he holds the professional competencies necessary to participate
259 in such activities.
260 (c} Licensees may convert their license to retired status
261 only if they hold a license in good standing and are not the
262 subject of any sanction or disciplinary action.
263 (d} A retired licensee may accept routine reimbursement
264 for actual costs of travel and meals associated with volunteer
265 services or de minimis per diem amounts paid to the licensee to
266 cover such expenses as allowed by law.
267 (e} A retired licensee may use the title of "retired CPA"
268 on any business card or letterhead or any other printed or
269 electronic document. However, such title must not be applied in
270 such a manner that could confuse the public as to the current
271 status of the licensee. The licensee is not required to have a
272 certificate issued with the word ''retired" on the certificate.
273 (f} A retired licensee is not required to maintain the
274 continuing education requirements under s. 473.312.
275 (g} A retired licensee may not offer or render

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276 professional services that require her or his signature and use
277 of the CPA title, regardless of whether the word "retired" is
278 attached to such title.
279 (h) A retired licensee may reactivate her or his license
280 in a conditional manner determined by the board. The conditions
281 of reactivation must require the payment of fees and the
282 completion of any required continuing education.
283
284 For the purposes of this subsection, the term ''retired licensee"
285 means a licensee whose license has been placed in retired status
286 by the department.
287 Section 6. This act shall take effect July 1, 2020.

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HB 867 by Rep. Stevenson
PUBLIC ACCOUNTANCY

AMENDMENT SUMMARY
February 4, 2020

Amendment 1 by Rep. Stevenson (Line 57):
The amendment clarifies:
• the definition of "performance audit," and
• who may perform a performance audit related to a proposed local surtax for the Office of
Program Policy Analysis and Government Accountability.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 867 (2020)
Amendment No. 1

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Business & Professions
2 Subcommittee
3 Representative Stevenson offered the following:
4
5 Amendment
6 Remove lines 57-111 and insert:
7 Government Accountability shall procure a vendor to complete a
8 performance audit as defined in certified public accountant in
9 accordance with subsection (11) for the performance audit.
10 b. File the initiative petition and its required valid
11 signatures with the supervisor of elections. The supervisor of
12 elections shall verify signatures and retain signature forms in
13 the same manner as required for initiatives under s.
14 100.371(11).

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 867 (2020)
Amendment No. 1

15 3. The failure of an initiative sponsor to comply with the
16 requirements of subparagraph 2. renders any referendum held
17 void.
18 (11) PERFORMANCE AUDIT.-
19 (a) To adopt a discretionary sales surtax under this
20 section, an independent certified public accountant licensed
21 pursuant to chapter 473 shall conduct a performance audit of the
22 program associated with the proposed surtax shall be conducted.
23 (b)l. At least 180 days before the referendum is held, the
24 county or school district shall provide a copy of the final
25 resolution or ordinance to the Office of Program Policy Analysis
26 and Government Accountability.
27 2. Within 60 days after receiving the final resolution or
28 ordinance, the Office of Program Policy Analysis and Government
29 Accountability shall procure -t-fie a vendor to complete the
30 performance audit certified public accountant and may use
31 carryforward funds to pay for the performance audit services of
32 the certified public accountant.
33 3. At least 60 days before the referendum is held, the
34 performance audit must be completed and the audit report,
35 including any findings, recommendations, or other accompanying
36 documents, must be made available on the official website of the
37 county or school district.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 867 (2020)
Amendment No. 1

38 4. The county or school district shall keep the
39 information on its website for 2 years from the date it was
40 posted.
41 5. The failure to comply with the requirements under
42 subparagraph 1. or subparagraph 3. renders any referendum held
43 to adopt a discretionary sales surtax void.
44 ( c) For purposes of this subsection, the term "performance
45 audit" has the same meaning as ins. 11.45(1) (j)means an
46 examination of the program conducted according to applicable
47 government auditing standards or auditing and evaluation
48 standards of other appropriate authoritative bodies. At a
49 minimum, a performance audit must include an examination of
50 issues related to the following:
51 1. The economy, efficiency, or effectiveness of the
52 program.
53 2. The structure or design of the program to accomplish
54 its goals and objectives.
55 3. Alternative methods of providing program services or
56 products.
57 4. Goals, objectives, and performance measures used by the
58 program to monitor and report program accomplishments.
59 5. The accuracy or adequacy of public documents, reports,
60 and requests prepared by the county or school district which
61 relate to the program.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for HB 867 (2020)
Amendment No. 1

62 6. Compliance of the program with appropriate policies,
63 rules, and laws.

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I
OJ
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C,,.)
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1153 Beverage Law
SPONSOR(S): DiCeglie
TIED BILLS: IDEN./SIM. BILLS: SB 1584

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee Willson M'fJ Anstead~
2) Government Operations & Technology
Appropriations Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
In Florida, the Beverage Law regulates the manufacture, distribution, and sale of wine, beer, and liquor by
manufacturers, distributors, and vendors, as well as the business relations between beer distributors and
manufacturers. Generally, only licensed vendors are permitted to sell alcoholic beverages directly to
consumers at retail, and manufacturers, distributors, and exporters are generally prohibited from holding a
vendor's license. There are limited exceptions, subject to certain conditions, including the ability for a craft
brewery to hold a vendor's license, a restaurant to hold a manufacturer's license (brew pub), and a winery to
hold up to three vendor's licenses.

Florida's "Tied House Evil Law," s. 561.42, F.S., prohibits a manufacturer or distributor of alcoholic beverages
from having a financial interest, directly or indirectly, in the establishment or business of a licensed vendor, and
prohibits a manufacturer or distributor from giving gifts, loans, property, or rebates to retail vendors. The bill
amends the Tied House Evil Law.

The bill allows a brewer whose total production volume is less than 60,000 barrels (1,860,000 gallons) per year
to sell, transport, and deliver (distribute) its own beer from its licensed premises to vendors in a standard keg
or similar container, if the brewer does not have an existing franchise agreement with a distributor.

The bill provides for limited exemptions to the current regulations regarding agreements between beer
distributors and manufacturers, as follows:
• Exempts breweries that produce 60,000 barrels or less of malt beverages per year from the requirements
imposed under the Franchise Law.
• Allows any brewer to provide 120 days written notice and terminate their distributor franchise agreement,
but only if the beer manufacturer accounts for 5% or less of the distributors total sales.

The bill reduces certain minimum inventory, warehouse, and sales requirements that a distributor must
maintain for licensure.

The bill may have an insignificant, indeterminate fiscal impact on the Department of Business and Professional
Regulation. See the Fiscal Analysis section of this analysis for more information.

The bill provides an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1153.BPS
DATE: 1/24/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Beverage Law

In Florida, the Beverage Law 1 regulates the manufacture, distribution, and sale of wine, beer, and liquor
by manufacturers, distributors, and vendors. The Division of Alcoholic Beverages and Tobacco
(Division) within the Department of Business and Professional Regulation (DBPR) administers and
enforces the Beverage Law. 2

"Alcoholic beverages" are defined ins. 561.01, F.S., as "distilled spirits and all beverages containing
one-half of 1 percent or more alcohol by volume." "Malt beverages" are brewed alcoholic beverages
containing malt. 3 As a unit of measurement, a "barrel" means 31 gallons and a "keg" is equal to one-
half of a barrel, or 15.5 gallons. 4

Section 561.14, F.S., specifies license and registration classifications used in the Beverage Law:
• "Manufacturers" are those "licensed to manufacture alcoholic beverages and distribute the same
at wholesale to licensed distributors and to no one else within the state, unless authorized by
statute."
• "Distributors" are those "licensed to sell and distribute alcoholic beverages at wholesale to
persons who are licensed to sell alcoholic beverages."
• "Importers" are those licensed to sell, or to cause to be sold, shipped, and invoiced, alcoholic
beverages to licensed manufacturers or licensed distributors, and to no one else in this state. 5
• "Vendors" are those "licensed to sell alcoholic beverages at retail only" and may not "purchase
or acquire in any manner for the purpose of resale any alcoholic beverages from any person not
licensed as a vendor, manufacturer, bottler, or distributor under the Beverage Law."

Three-Tier System and Tied House Evil

Since the repeal of Prohibition in 1933, regulation of alcohol in the United States has traditionally been
based upon what is termed the "three-tier system." The system requires separation of the manufacture,
distribution, and sale of alcoholic beverages. The manufacturer creates the beverages, and the
distributor obtains the beverages from the manufacturer to deliver to the vendor. The vendor makes the
ultimate sale to the consumer. 6

Generally, only licensed vendors are permitted to sell alcoholic beverages directly to consumers at
retail, and manufacturers, distributors, and exporters7 are generally prohibited from holding a vendor's
license. 8 Manufacturers, distributors, and vendors are generally prohibited from being licensed or
having an interest in more than one tier. Limited exceptions exist, subject to certain conditions, such as
the ability for a craft brewery to hold a vendor's license, a restaurant to hold a manufacturer's license
(brew pub), and a winery to hold up to three vendor's licenses. 9

1
Section 561.0 l (6), F.S., provides that the "The Beverage Law" means chs. 561, 562, 563, 564, 565, 567, and 568, F.S.
2
S. 561.02, F.S.
3
S. 563.01, F.S.
4
See U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau, Conversion Tables,
https://www.ttb.gov/distilled-spirits/conversion-tables (last visited Jan. 21, 2020).
5
S. 561.01(5), F.S.
6
S. 561.14, F.S.
7
S. 561.01(16), F.S. "Exporter'' means any person that sells alcoholic beverages to persons for use outside the state and includes a
ship's chandler and a duty-free shop
8
S. 561.22(1), F.S.; s. 561.14(3), F.S. However, see the exceptions provided in ss. 561.221 and 565.03, F.S.
9
See ss. 561.22, F.S.; 561.24, F.S.; 561.14(1), F.S.; and 563.022(14), F.S.
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The three-tier system is deeply rooted in the perceived evils of the "tied house" in which a bar is owned
or operated by a manufacturer or the manufacturer exercises undue influence over the retail vendor. 10

Florida's "Tied House Evil Law," s. 561.42, F.S., prohibits a manufacturer or distributor of alcoholic
beverages from having a financial interest, directly or indirectly, in the establishment or business of a
licensed vendor, and prohibits a manufacturer or distributor from giving gifts, loans, property, or rebates
to retail vendors.

Florida's Tied House Evil Law prohibits a licensed manufacturer or distributor from:
• having any direct or indirect financial interest in any vendor;
• assisting any vendor using gifts, loans, money or property of any description (except for bottles,
barrels or other containers necessary for the transportation of beverages);
• giving any rebates of any kind whatsoever;
• engaging in cooperative advertising with a vendor;
• naming a vendor in any advertisement for a malt beverage tasting; and
• paying for particular placement, signage, or other brand promotion within a vendor premises for
malt beverages produced by the manufacturer. 11

However, the Tied House Evil Law authorizes a manufacturer or distributor of malt beverage to:
• Sell, at not less than cost, branded expendable retailer advertising specialties to a vendor
(trays, coasters, mats, menu cards, napkins, cups, glassware, thermometers, etc.).
• Lend without charge, rent, or sell durable retailer advertising specialties which bear
advertising matter to a vendor (clocks, pool table lights, etc.).
• Sell, at not less than cost, consumer advertising specialties to a vendor (ashtrays, T-shirts,
bottle openers, shopping bags, etc.). 12

Additionally, a distributor of malt beverages is allowed to:
• sell, at not less than cost, draft equipment and tapping accessories to a vendor;
• exchange, or provide without charge, any parts that are not compatible with a competitor's
system and are necessary to dispense the distributor's brands;
• provide, without charge, replacement parts of nominal intrinsic value (washers, gaskets, tail
pieces, hoses, hose connections, clamps, plungers, and tap markers, etc.); and
• provide, without charge, up to ten cases of glassware to a vendor licensed to sell malt
beverages for on-premises consumption, subject to certain conditions. 13

A vendor is prohibited from displaying any sign advertising any brand of alcoholic beverages outside of
or on the outside of their establishment, and a manufacturer or distributor may not directly or indirectly
give, lend, rent, sell or furnish a vendor with any outside sign. However, a vendor is allowed to display

10
See Andrew Tamayo, What's Brewing in the Old North State: An Analysis of the Beer Distribution Laws Regulating North
Carolina's Craft Breweries, 88 N.C. L. REV. 2198(2010), http://scholarship.law.unc.edu/nclr/vol88/iss6/6.
11
S. 561.42, F.S.
12
S. 561.42(14), F.S.
13
Id. Specifically, a distributor that receives glassware at no charge on a no-charge invoice from a malt beverage manufacturer or
importer may give such glassware to a vendor licensed to sell malt beverages for on-premises consumption. Each piece of glassware
given to a vendor by a distributor must bear a permanent brand name intended to prominently advertise the brand. A distributor may
not give a vendor more than 10 cases of glassware per calendar year per licensed premises. A vendor that receives a gift of glassware
from a distributor may not sell the glassware or return it to a distributor for cash, credit, or replacement. A manufacturer or importer
who sells or gives glassware to a distributor, a distributor who sells or gives glassware to a vendor, and such vendor, must maintain
records of such sale or gift of glassware.
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signs and other advertising materials for brands that are sold by the vendor on the interior of their
licensed premises. 14

The Division is authorized to adopt rules and require reports in order to enforce the limitations
established under the Tied House Evil Law relating to credits, coupons, and other forms of
assistance. 15

Craft Breweries

Section 561.221 (2), F.S., allows a brewery to receive up to eight vendor's licenses for the sale of
alcoholic beverages on property consisting of a single complex that includes a brewery, which may be
divided by no more than one public street or highway. These vendor's licenses are an exception to the
three-tier system described in ss. 561.14 and 561.22, F.S., and to the tied house evil restrictions ins.
561.42, F.S.

A craft brewery with multiple manufacturing licenses may transfer malt beverages that it produces
between its breweries, up to 100 percent of the yearly production of the receiving brewery. Alcoholic
beverages that the craft brewery does not make must be obtained through a distributor, an importer,
sales agent, or broker.

Distributor Qualifications

Section 561.411, F.S., requires that a distributor meet and maintain certain minimum qualifications with
respect to warehouse inventory and sales. A distributor's warehouse must be owned or leased by the
distributor or in public warehouse space dedicated to the distributor's use.

A distributor is required to maintain warehouse space sufficient to store an inventory of alcoholic
beverages:
• equal to at least 10% of the distributor's annual case sales, or
• for which the cost of acquisition is not less than $100,000.

A distributor is required to own and maintain an inventory of alcoholic beverages:
• equal to at least 5% of the distributor's annual sales, or
• for which the cost of acquisition is not less than $100,000.

Current law requires distributors to sell alcoholic beverages to licensed vendors generally rather than a
selected few licensed vendors. A distributor is considered to be selling to licensed vendors generally, if:
• the distributor sells to at least 25% of the licensed vendors in either the county where the
distributor's warehouse is located or in the distributor's exclusive sales territory; or
• the distributor's total volume of sales to licensed vendors within the state or within the malt
beverage distributor's exclusive sales territory during any 12-month period consists of at least
50% of individual sales which are in quantities of 10 cases or less.

Come-to-Rest Requirement

Section 561.5101, F.S., requires, for purposes of inspection and tax-revenue control, all malt
beverages to come to rest at the licensed premises of an alcoholic beverage wholesaler in this state
before being sold to a vendor by the wholesaler. The come-to-rest requirement does not apply to malt
beverages that a craft brewery manufacturers and sells to consumers as a vendor, or to malt
beverages manufactured and sold by a brew pub. It is a felony of the third degree 16 for any person in

14
S. 561.42(10)-(12), F.S. However, only one neon, electric, or similar sign per manufacturer may be displayed in a window.
15
S. 561.42(8), F.S.
16
Punishable as provided in ss. 775.082, 775.083, or 775.084, F.S.
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the business of selling alcoholic beverages to knowingly and intentionally sell malt beverages in a
manner inconsistent with the come-to-rest requirement.

Alcoholic Beverage Deliveries

Vendors, but not manufacturers or distributors, are allowed to make deliveries away from their place of
business for sales actually made at their licensed place of business. Telephone, electronic, and mail
orders received at a vendor's licensed place of business are construed as a sale actually made at the
vendor's licensed place of business. Deliveries may be made in vehicles that are owned or leased by
the vendor, or in a third-party vehicle pursuant to a contract with a third party with whom the vendor has
contracted to make deliveries, including, but not limited to, common carriers. 17

Manufacturers and distributors are allowed to make deliveries in vehicles that they own or lease.

For compliance purposes, all licensees' vehicles are subject to search and inspection without a search
warrant by authorized employees of the Division, sheriffs, deputy sheriffs, and police officers during
business hours or other times the vehicle is being used to transport or deliver alcoholic beverages. 18

Craft breweries that also hold a vendor's licenses are specifically prohibited from making deliveries
under this law. 19

Business Relations between Beer Distributors and Manufacturers (Franchise Law)

Section 563.022, F.S., governs the relationship between manufacturers of malt beverages and their
distributors. This relationship is highly regulated, and apart from the limited exceptions mentioned
previously, Florida brewers are required 20 to enter into a "beer distribution agreement" or "franchise
agreement" with a distributor to sell their product in this state. The agreement must be in writing, filed
with the state, and conform to statutory requirements. 21

The Franchise Law specifies that distributors, but not brewers, are prohibited from waiving any of the
rights granted to them under the Franchise Law. 22 Section 563.021, F.S., requires an exclusive sales
territory agreement for each brand that the distributor sells for a brewer, which must be filed with the
Division. A brewer may not enter into more than one distribution agreement for a given brand in a given
territory.

Under the Franchise Law, brewers:
• May provide good faith, written notice that the distributor is in default of any agreement. 23
• May terminate, cancel or refuse to renew the distribution agreement for "good cause."
• May not terminate, cancel, or fail to renew a distribution agreement without "good cause,"
regardless of the time period specified in the franchise agreement. 24
o "Good cause" exists if:
• The distributor fails to comply with a reasonable and material provision of the
agreement;
• The brewery provided written notice to the distributor within 18 months of the
failure;

17
S. 561.57(1 }-(2), F.S.
1s Id.
19
Ss. 561.221 (2)(d), F.S.; 565.57(1), F.S.
20
S. 563.022(15), F.S. The Franchise Law applies to all written or oral agreements between a manufacturer and beer distributor in
existence on June 4, 1987, as well as agreements entered into or renewed after June 4, 1987.
21
See Brewer's Law, Florida Distribution Agreement Guide, http://brewerslaw.com/wp-content/uploads/2014/06/Florida-Beer-
Distribution-Guide.pdf (last visited Jan. 21, 2020).
22
S. 563.022(13), F.S.
23
S. 563.022(5)(b)3., F.S.
24
S. 563.022(5)(b)4., F.S.
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• The distributor was given a reasonable opportunity to make a good faith effort to
comply with the agreement; and
• The distributor was given 30 days to submit a corrective action plan, and an
additional 90 days to cure in accordance with the plan. 25

A brewer may terminate for cause, upon 15 days' notice, if the distributor:
• Files for bankruptcy, is insolvent, or is otherwise unable to remain in business.
• Has their state or federal license revoked for more than 60 days.
• Is convicted of a felony, but only if it has an adverse effect on the good will or interest of the
distributor or brewer.
• Commits fraudulent conduct on a matter material to the brewer.
• Intentionally sells the brewer's products outside of their exclusive sales territory.
• Fails to pay for products 15 business days after receiving a demand for immediate payment.
• Sells, transfers, or assigns their interest in the distributorship without the written consent of the
brewer. 26

The burden is on the brewery to show that it has acted in good faith, that the notice requirements have
been complied with, and that there was good cause for the termination, cancellation, nonrenewal, or
discontinuance. 27

A brewer is required to pay reasonable compensation for the diminished value of the distributor's
business if the brewer cancels, terminates or fails to renew their agreement, or refuses to consent to
the sale of a distributor's interest in the distributorship, without good cause. 28

If a brewer sells or transfers their interest in the brewery, their successor is also bound by the terms
and conditions of the distribution agreement. 29 The Franchise Law allows a brewer to get out of a
distribution agreement if they go out of business or stop making the products covered by the
agreement, upon not less than 30 days' prior written notice. 30

In the event of a dispute arising under the Franchise Law, the prevailing party is entitled to recover
costs and attorney fees. 31

Violations and Penalties

Section 562.45(1), F.S., provides that the false entry of any record required under the Beverage Law or
violation of the excise tax provisions, when done intentionally, is a felony of the third degree,
punishable as provided in ss. 775.082, 775.083, or 775.084, F.S. For violations of the Beverage Law
where no penalty is provided, first-time offenses are punishable as a misdemeanor of the second
degree and a felony of the third degree for any subsequent offenses thereafter.

Section 561.29, F.S., authorizes the Division to issue civil penalties for violations of the Beverage Law
and rules issued thereto. Such penalties may not exceed $1,000 per transaction. The Division is also
authorized to suspend the license of a licensee that fails to pay a civil penalty.

Effect of the Bill

Limited Self-Distribution for Certain Brewers

25
S. 563.022(7), F.S.
26
S. 563.022(10), F.S.
27
S. 563.022(8), F.S.
28
S. 563.022(17), F.S.
29
S. 563.022(16), F.S.
30
S. 563.022(11), F.S.
31
S. 563.022(18)(c), F.S.
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The bill:
• Defines the term "barrel" as 31 gallons. (A term not previously defined in the Beverage Law)
• Allows a brewery whose annual total production volume is less than 60,000 barrels (1,860,000
gallons) per year to sell, transport, and deliver (distribute) its own beer from its licensed
premises to vendors in one of the standard keg sizes or similar containers.
o However, a brewery with an existing franchise agreement with a distributor to distribute
its product anywhere in the state is not eligible for this exemption.
• Requires that the brewer comply with certain distribution-specific laws when acting as a
distributor, and exempts the craft brewer from the "come-to-rest requirement."

Distributor Qualifications

The bill:
• Reduces the inventory and warehouse space minimums that a distributor must maintain for
licensure, from not less than 10% of annual case sales and a cost of acquisition of not less than
$100,000 respectively, to not less than 5% and not less than $50,000.
• Reduces the percentage of licensed vendors to which a distributor must sell in order to be
considered "selling to licensed vendors generally", from 25% to 10%.

Franchise Law- Termination Exemption for Small Accounts

The bill allows any brewery to terminate a franchise agreement with their distributor, after 120 days
written notice, but only if the brewer accounts for 5% or less of the distributor's total sales. This
provision is available to any brewer, regardless of size or annual production volume.

Franchise Law - Brewery Exemption

The bill exempts breweries that produce 60,000 barrels or less of malt beverages a year from the
requirements imposed under the Franchise Law.

Sale or Purchase of Merchandise

The bill amends s. 561.42, F.S., to specify that a manufacturer, distributor, importer, primary American
source of supply, or brand owner or registrant, or any broker, sales agent, or sales person thereof, may
not "directly or indirectly" assist any vendor by "furnishing, supplying, selling, renting, lending, buying
for, or giving to any vendor any vehicles, equipment, furniture, fixtures, signs, supplies, credit, fees,
slotting fees of any kind, advertising or cooperative advertising, or services" unless the manufacturer,
distributor, etc., "regularly sells merchandise to vendors" and the sale or purchase is:
• equal to or greater than the fair market value of the merchandise;
• not combined with any sale or purchase of alcoholic beverages;
• separately itemized from the sale or purchase of alcoholic beverages; and
• both the seller and purchaser maintain records.

The bill defines the term "merchandise" as commodities, supplies, fixtures, furniture, or equipment. The
term does not include alcoholic beverages or a motor vehicle or trailer requiring registration under ch.
320, F.S.

Written Agreements for Brand-Naming Rights and Associated Cooperative Advertising

The bill provides that, notwithstanding any other provision of the Tied House Evil Law, a manufacturer
or importer of malt beverages and a vendor may enter into a written agreement for brand-naming rights
and associated cooperative advertising if:
• The agreement is negotiated at arm's length for no more than fair market value;

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DATE: 1/24/2020
• The vendor operates places of business where consumption on the premises is permitted,
which premises are located within a theme park complex comprised of at least 25 contiguous
acres owned and controlled by the same business entity and which contains permanent
exhibitions and a variety of recreational activities and has a minimum of 1 million visitors
annually through a controlled entrance to and exit;
• The agreement does not involve the sale or distribution of malt beverages;
• The vendor does not give preferential treatment to the alcoholic beverage brand(s) of the
manufacturer or importer;
• The agreement does not limit, directly or indirectly, the sale of alcoholic beverages of another
manufacturer, importer or distributor; and
• Within 10 days after execution of the agreement, the vendor files with the division a description
of the written agreement for brand naming rights which includes the location, dates, and the
name of the manufacturer or importer that entered into the agreement.

The bill prohibits a manufacturer or importer from soliciting or receiving, and prohibits a distributor from
paying, any portion of the brand-naming rights or cooperative advertising agreement. The bill also
specifies that such an agreement may not in any way obligate or place responsibility, financial or
otherwise, on a distributor.

The bill defines "negotiated at arm's length" as the negotiation of a business transaction by
independent parties acting in each party's own individual self-interest and conducted as if the parties
were strangers, so that no conflict of interest may arise.

The bill provides that a manufacturer, importer or vendor that violates the written agreement for brand-
naming rights and associated cooperative advertising provisions is subject to:
• First violation: A civil penalty up to $25,000 or the financial value of the brand-naming rights
agreement, whichever is greater.
• Second violation: A civil penalty up to $100,000 or the financial value of the brand-naming rights
agreement, whichever is greater.
• At the discretion of the division, in lieu of or in addition to the second civil penalty, suspension or
revocation of the alcoholic beverage license for a third or subsequent violation occurring within
36 months after the date of the first violation.

The bill provides that a violation occurring more than 36 months after a first violation is deemed a first
violation.

The bill provides an effective date of July 1, 2020.

8. SECTION DIRECTORY:
Section 1 Amends s. 561.221, F.S., authorizing a manufacturer who possesses a vendor's license
to sell, transport, and deliver to vendors under certain circumstances; providing
applicability; and revising requirements for a vendor to be licensed as a manufacturer.

Section 2 Amends s. 561.411, F.S., revising alcoholic beverage inventory requirements for
warehouse space owned or leased by certain distributors; and revising the percentage of
licensed vendors a distributor must sell to in certain locations to be presumed to be
selling to licensed vendors generally.

Section 3 Amends s. 561.42, F.S., revising terms; creating exemptions and penalties relating to
the Tied House Evil Law.

Section 4 Amends s. 561.5101, F.S., revising construction related to come-to-rest requirements.

STORAGE NAME: h1153.BPS PAGE: 8
DATE: 1/24/2020
Section 5 Amends s. 561.57, F.S., authorizing certain manufacturers to transport malt beverages
in vehicles owned or leased by certain persons other than the manufacturer.

Section 6 Amends s. 563.022, F.S., revising the definition of the term "manufacturer"; revising
construction; authorizing a manufacturer to terminate a contract with a distributor under
certain circumstances.

Section 7 Provides for an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
The bill provides for an indeterminate positive fiscal impact through the creation of new civil
penalties as listed above.

2. Expenditures:
The bill will require DBPR to modify information technology systems to manage the new
agreements and possible violations. These modifications can be made with existing resources.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Manufacturers and importers of malt beverages and qualified vendors will no longer be prohibited from
entering into agreements for brand naming rights under certain circumstances. This relaxation of the
Tied House Evil Law may allow certain licensees to benefit financially while negatively impacting other
licensees.

D. FISCAL COMMENTS:
The bill may have a positive economic impact on new or small breweries by providing relief from certain
regulatory constraints, which will allow them to operate more freely and develop during their early
growth stages.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
None.

2. Other:

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DATE: 1/24/2020
The bill amends the Franchise Law to allow any brewery to terminate a franchise agreement with
their distributor, after 120 days written notice, but only if the brewer accounts for 5% or less of the
distributor's total sales.

Additionally, the bill exempts breweries whose production volume does not exceed 60,000 barrels of
malt beverages a year from the requirements imposed under the Franchise Law.

Article I, section 10 of the Florida Constitution prohibits the passage of any law which impairs the
obligation of contracts. Cases interpreting Florida law have held that the application of the Franchise
Law, and similar statutes, to contracts existing prior to the enactment of the statutes to be
unconstitutional. 32

However, the Florida Supreme Court has held that, relating to the interpretation of substantive
changes to statutory law, the general rule is that in the absence of clear legislative intent to the
contrary, a law affecting substantive rights, liabilities and duties is presumed to apply prospectively
but not retroactively. 33 Florida courts have also held that "Even where the Legislature has expressly
stated that a statute will have retroactive application, this Court will reject such an application if the
statute impairs a vested right, creates a new obligation, or imposes a new penalty." 34

Thus, the provisions in the bill affecting the Franchise Law may be interpreted to apply only
prospectively.

B. RULE-MAKING AUTHORITY:
DBPR has sufficient rule-making authority to modify current rules to reflect the modifications provided
for in the bill.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

32
Gulfside Distributors, Inc. v. Becca, ltd., 985 F.2d 513,515 (11th Cir. 1993).
33
Smiley v. State, 966 So. 2d 330, 336 (Fla. 2007). See also Eric Glazer and Louis Goetz, Florida Community Association Law:
Contracts Clause Application In An Ever-Changing Legislative Landscape, Florida Bar Journal, Vol. 89, No. 8 (Sept./Oct. 2015). "In
Florida, all laws are presumed to apply prospectively, unless they are remedial in nature, or designed to clarify law already in effect,
and the legislature clearly expresses its intention that the law is to apply retroactively."
34
Menendez v. Progressive Exp. Ins. Co., Inc., 35 So.3d 873 (Fla. 20 I 0).
STORAGE NAME: h1153.BPS PAGE: 10
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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1153 2020

1 A bill to be entitled
2 An act relating to the Beverage Law; amending s.
3 561.221, F.S.; authorizing a manufacturer who
4 possesses a vendor's license to sell, transport, and
5 deliver malt beverages to vendors under certain
6 circumstances; providing applicability; revising
7 requirements for a vendor to be licensed as a
8 manufacturer; amending s. 561.411, F.S.; revising
9 alcoholic beverage inventory requirements for
10 warehouse space owned or leased by certain
11 distributors; revising the percentage of licensed
12 vendors a distributor must sell to in certain
13 locations to be presumed to be selling to licensed
14 vendors generally; amending s. 561.42, F.S.;
15 prohibiting certain entities and persons from directly
16 or indirectly assisting or providing specified items,
17 monies, or services to a licensed vendor; prohibiting
18 a licensed vendor from accepting specified items,
19 monies, or services from certain entities or persons;
20 authorizing the Division of Alcoholic Beverages and
21 Tobacco adopt rules and require reports to enforce,
22 and to impose administrative sanctions for a violation
23 of limitations established under the Beverage Law on
24 specified items, monies, or services; prohibiting a
25 vendor from displaying certain signs in the window or

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26 windows of his or her licensed premises; authorizing
27 certain entities and persons to furnish, supply, sell,
28 rent, lend, or give certain advertising material to
29 certain vendors; defining the term "decalcomania";
30 providing exemptions relating to tied house evil for
31 certain sales and purchases of merchandise; providing
32 conditions for the exemptions; defining the term
33 "merchandise"; prohibiting the sale of certain
34 advertising specialties at a price higher than the
35 actual cost to the industry member; authorizing a
36 manufacturer or importer of malt beverages and a
37 vendor to enter into a written agreement for certain
38 purposes; providing requirements for such agreement;
39 defining the term "negotiated at arm's length";
40 specifying that a brand-naming rights agreement does
41 not obligate or place responsibility upon a
42 distributor; providing civil penalties; prohibiting
43 the division from imposing certain civil penalties;
44 amending s. 561.5101, F.S.; revising construction;
45 amending s. 561.57, F.S.; authorizing certain
46 manufacturers to transport malt beverages in vehicles
47 owned or leased by certain persons other than the
48 manufacturer; amending s. 563.022, F.S.; revising the
49 definition of the term "manufacturer"; revising
50 construction; authorizing a manufacturer to terminate

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51 a contract with a distributor under certain
52 circumstances; providing an effective date.
53
54 Be It Enacted by the Legislature of the State of Florida:
55
56 Section 1. Paragraph (d) of subsection (2) and paragraph
57 (a) of subsection (3) of section 561.221, Florida Statutes, are
58 amended, and paragraph (f) is added to subsection (2) of that
59 section, to read:
60 561.221 Licensing of manufacturers and distributors as
61 vendors and of vendors as manufacturers; conditions and
62 limitations.-
63 (2)

64 (d) A manufacturer possessing a vendor's license under
65 this subsection is not permitted to make deliveries under s.
66 561.57(1), except as provided in paragraph (f).
67 (f) Notwithstanding other provisions of the Beverage Law,
68 any manufacturer possessing a vendor's license under this
69 subsection may sell, transport, and deliver to vendors, from the
70 manufacturer's licensed premises, malt beverages that have been
71 manufactured on its licensed premises if the manufacturer
72 complies with applicable requirements of ss. 561.42 and 561.423
73 to the same extent as if the manufacturer were a distributor.
74 1. The sale, transport, and delivery of malt beverages is
75 limited to kegs or similar containers that hold 5.16 gallons,

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76 7.75 gallons, or 15.5 gallons.
77 2. A delivery by a manufacturer to a vendor under this
78 paragraph is subject to s. 561.57(2).
79 3. This paragraph does not apply to a manufacturer who:
80 a. Has a franchise agreement with a distributor pursuant
81 to s. 563.022; or
82 b. Has a total production volume of more than 60,000
83 barrels of malt beverages per year.
84 (3) (a) Notwithstanding other provisions of the Beverage
85 Law, any vendor licensed in this state may be licensed as a
86 manufacturer of malt beverages upon a finding by the division
87 that:
88 1. The vendor will be engaged in brewing malt beverages at
89 a single location and in an amount which will not exceed 5,000
90 barrels of malt beverages 10,000 kegs per year. For purposes of
91 this section subsection, the term "barrel" "keg" means 31 -1-§......§.
92 gallons.
93 2. The malt beverages so brewed will be sold to consumers
94 for consumption on the vendor's licensed premises or on
95 contiguous licensed premises owned by the vendor.
96 Section 2. Section 561.411, Florida Statutes, is amended
97 to read:
98 561.411 Qualifications for distributors.-A Ne
99 distributor's license may not shall be issued to or held by any
100 person or business that which does not meet and maintain the

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101 following qualifications with respect to its warehouse inventory
102 and sales:-.
103 (1) The distributor must maintain warehouse space which is
104 either owned or leased by the distributor, or dedicated to the
105 distributor's use in a public warehouse, which is sufficient to
106 store at one time:
107 (a) An inventory of alcoholic beverages which is equal to
108 at least 2 ±8- percent of the distributor's annual case sales to
109 licensed vendors within this state or to licensed vendors within
110 the malt beverage distributor's exclusive sales territory; or
111 (b) An inventory for which the cost of acquisition is not
112 less than $50,000 $100,000.
113 (2) The distributor must maintain at all times, in a
114 warehouse which is either owned or leased by the distributor or
115 in public warehouse space dedicated to the distributor's use, an
116 inventory of alcoholic beverages:
117 (a) Which consists of not less than 5 percent of the
118 distributor's annual sales to licensed vendors within this state
119 or within the malt beverage distributor's exclusive sales
120 territory; or
121 (b) For which the cost of acquisition is not less than
122 $50,000 $100,000. Such .!ffl.e inventory must required herein shall
123 be owned by the distributor, not held on consignment, and not
124 acquired pursuant to a prior agreement to sell it to a specific
125 licensee or licensees.

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126 (c) For purposes of calculating inventory or percentage of
127 annual sales as required by paragraphs (a) and (b), the
128 calculation shall not include private label inventory whose
129 label is owned by a vendor.
130 (3) The distributor must sell alcoholic beverages to
131 licensed vendors generally rather than a selected few licensed
132 vendors. For purposes of this section, a distributor shall be
133 conclusively presumed to be selling to licensed vendors
134 generally, if:
135 (a) The distributor sells to at least lQ -2-.§. percent of the
136 licensed vendors in the county wherein the distributor's
137 warehouse is located or sells to at least 10 -2-.§. percent of the
138 licensed vendors in the malt beverage distributor's exclusive
139 sales territory; or
140 (b) The distributor's total volume of sales to licensed
141 vendors within the state or within the malt beverage
142 distributor's exclusive sales territory during any ongoing 12-
143 month period consists of at least 50 percent of individual sales
144 which are in quantities of 10 cases or less.
145 Section 3. Subsections (13) and (14) of section 561.42,
146 Florida Statutes, are renumbered as subsections (14) and (15),
147 respectively, subsections (1), (8), (11), and (12) and paragraph
148 (b) of present subsection (14) are amended, and new subsections
149 (13) and (16) are added to that section, to read:
150 561.42 Tied house evil; financial aid and assistance to

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151 vendor by manufacturer, distributor, importer, primary American
152 source of supply, brand owner or registrant, or any broker,
153 sales agent, or sales person thereof, prohibited; procedure for
154 enforcement; exception.-
155 (1) ~ Ne manufacturer, distributor, importer, primary
156 American source of supply, or brand owner or registrant of any
157 of the beverages herein referred to, whether licensed or
158 operating in this state or out-of-state, or fief any broker,
159 sales agent, or sales person thereof, may not shall have any
160 financial interest, directly or indirectly, in the establishment
161 or business of any vendor licensed under the Beverage Law; nor
162 may shall such manufacturer, distributor, importer, primary
163 American source of supply, brand owner or brand registrant, or
164 any broker, sales agent, or sales person thereof, directly or
165 indirectly, assist any vendor by furnishing, supplying, selling,
166 renting, lending, buying for, or giving to any vendor any
167 vehicles, equipment, furniture, fixtures, signs, supplies,
168 credit, fees, slotting fees of any kind, advertising or
169 cooperative advertising, services, -aft}f gifts or loans of money
170 or property of any descriptionL or by the giving of any rebates
171 of any kind whatsoever. A Ne licensed vendor may not shall
172 accept, directly or indirectly, any vehicles, equipment,
173 furniture, fixtures, signs, supplies, credit, fees, slotting
174 fees of any kind, advertising or cooperative advertising,
175 services, gifts any gift or loans ±e-a-R- of money or property of

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176 any description~ or aft}" rebates of any kind whatsoever from any
177 such manufacturer, distributor, importer, primary American
178 source of supply, brand owner or brand registrant, or any
179 broker, sales agent, or sales person thereof; provided, however,
180 that this does not apply to any bottles, barrels, or other
181 containers necessary for the legitimate transportation of such
182 beverages or to advertising materials and does not apply to the
183 extension of credit, for liquors sold, made strictly in
184 compliance with the provisions of this section. A brand owner is
185 a person who is not a manufacturer, distributor, importer,
186 primary American source of supply, brand registrant, or broker,
187 sales agent, or sales person thereof, but who directly or
188 indirectly owns or controls any brand, brand name, or label of
189 alcoholic beverage. Hothing in This section does not shall
190 prohibit the ownership by vendors of any brand, brand name, or
191 label of alcoholic beverage.
192 (8) The division may adopt rules and require reports to
193 enforce, and may impose administrative sanctions for any
194 violation of, the limitations established under the Beverage Law
195 on any vehicles, equipment, furniture, fixtures, signs,
196 supplies, credit, fees, slotting fees of any kind, advertising
197 or cooperative advertising, services, gifts or loans of money or
198 property of any description, rebates of any kind whatsoever ,i-n.
199 this section on credits, coupons, and other forms of assistance.
200 (11) A vendor may display in the interior of his or her

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201 licensed premises, including the window or windows thereof,
202 neon, electric, or other signs that require a power source; 7
203 including window painting and decalcomanias applied to the
204 surface of the interior or exterior of such windows~7 and
205 posters, placards, and other advertising material advertising
206 the brand or brands of alcoholic beverages sold by him or her,
207 whether visible or not from the outside of the licensed
208 premises. However, a, but no vendor may not shall display in the
209 window or windows of his or her licensed premises more than one
210 neon, electric, or similar sign that requires a power source 7
211 advertising the product of any one brand of alcoholic beverage
212 Fflanufacturer.
213 (12) Any manufacturer, distributor, importer, primary
214 American source of supply, or brand owner or registrant, or any
215 broker, sales agent, or sales person thereof, may give, lend,
216 furnish, or sell to a vendor who sells the products of such
217 manufacturer, distributor, importer, primary American source of
218 supply, or brand owner or registrant any of the following: neonL
219 er electric, or other signs requiring a power source; signs,
220 window painting and decalcomanias applied to the surface of the
221 interior or exterior of windows; and7 posters, placards, and
222 other advertising material herein authorized to be used or
223 displayed by the vendor in the interior of his or her licensed
224 premises. As used in this section, the term "decalcomania" means
225 a picture, design, print, engraving, or label made to be

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226 transferred onto a glass surface.
227 (13) Any manufacturer, distributor, importer, primary
228 American source of supply, or brand owner or registrant, or any
229 broker, sales agent, or sales person thereof, who regularly
230 sells merchandise to vendors, or any vendor who purchases
231 merchandise from such manufacturer, distributor, importer,
232 primary American source of supply, or brand owner or registrant,
233 or any broker, sales agent, or sales person thereof, does not
234 violate subsection (1) if:
235 (a) Such sale or purchase is equal to or greater than the
236 fair market value of the merchandise; not combined with any sale
237 or purchase of alcoholic beverages; separately itemized from the
238 sale or purchase of alcoholic beverages; and
239 (b) Both the seller and purchaser maintain records of any
240 such sale or purchase, including the price and any conditions
241 associated with such sale or purchase of the merchandise.
242
243 For purposes of this subsection, the term "merchandise" means
244 commodities, supplies, fixtures, furniture, or equipment. The
245 term does not include alcoholic beverages or a motor vehicle or
246 trailer requiring registration under chapter 320.
247 ~-8-4+- The division shall adopt reasonable rules
248 governing promotional displays and advertising. Such rules may
249 not conflict with or be more stringent than the federal
250 regulations pertaining to such promotional displays and

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251 advertising furnished to vendors by distributors, manufacturers,
252 importers, primary American sources of supply, or brand owners
253 or registrants, or any broker, sales agentL or sales person
254 thereof; however:
255 (b) Without limitation in total dollar value of such items
256 provided to a vendor, a manufacturer, distributor, importer,
257 primary American sources of supply, or brand owner7 or brand
258 registrant of malt beverage, or any broker, sales agentL or
259 sales person thereof, may rent, loan without charge for an
260 indefinite duration, or sell durable retailer advertising
261 specialties such as clocks, pool table lights, and the like,
262 which bear advertising matter. If sold, such items may not be
263 sold at a price less than the actual cost to the industry member
264 who initially purchased the items.
265 ( 16) (a) Notwithstanding other provisions of this section,
266 a manufacturer or importer of malt beverages and a vendor may
267 enter into a written agreement for brand-naming rights and
268 associated cooperative advertising, negotiated at arm's length,
269 for no more than fair market value if all of the following
270 conditions are met:
271 1. The vendor operates places of business where
272 consumption on the premises is permitted and the premises:
273 a. Are located within a theme park complex consisting of
274 at least 25 contiguous acres owned and controlled by the same
275 business entity;

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276 b. Contain permanent exhibitions and a variety of
277 recreational activities; and
278 c. Has a minimum of 1 million visitors annually with a
279 controlled entrance to, and exit from, the enclosed area.
280 2. Such agreement does not involve, either in whole or in
281 part, the sale or distribution of malt beverages between the
282 manufacturer or importer, or the manufacturer's or importer's
283 distributor, and a vendor.
284 3. The vendor, as a result of such agreement, does not
285 give preferential treatment to the alcoholic beverage brand or
286 brands of the manufacturer or importer with whom the vendor has
287 entered into such agreement.
288 4. Such agreement does not directly or indirectly limit
289 the sale of alcoholic beverages of another manufacturer or
290 importer, or distributor.
291 5. Within 10 days after execution of such agreement, the
292 vendor files with the division a description of the agreement
293 which includes the location, dates, and the name of the
294 manufacturer or importer that entered into the agreement.
295
296 As used in this paragraph, the term "negotiated at arm's length"
297 means the negotiation of a business transaction by independent
298 parties acting in each party's own individual self-interest and
299 conducted as if the parties were strangers, so that no conflict
300 of interest may arise.

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301 (b) A manufacturer or importer of malt beverages who is a
302 party to a brand-naming rights agreement may not, directly or
303 indirectly, solicit or receive from any of its distributors any
304 portion of the payment due from the manufacturer or importer of
305 malt beverages to the vendor pursuant to such agreement. Such
306 agreement exists solely between the manufacturer and the vendor
307 and does not, directly or indirectly, in any way obligate or
308 place responsibility, financial or otherwise, upon a
309 distributor.
310 (c) Notwithstanding s. 561.29(3) and (4), a manufacturer
311 of malt beverages, an importer of malt beverages, or a vendor
312 who violates this subsection is subject to:
313 1. A civil penalty of not more than $25,000, for a first
314 violation.
315 2. A civil penalty of not more than $100,000 for a second
316 violation occurring within 36 months after the date of the first
317 violation.
318 3. At the discretion of the division, in lieu of or in
319 addition to the penalty imposed under subparagraph 2.,
320 suspension or revocation of the alcoholic beverage license for a
321 third or subsequent violation occurring within 36 months after
322 the date of the first violation.
323
324 A violation occurring more than 36 months after a first
325 violation is deemed a first violation under this paragraph. When

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326 imposing a civil penalty within the ranges provided in
327 subparagraphs 1. and 2., the division may not impose a civil
328 penalty in an amount greater than the financial value of the
329 brand-naming rights agreement.
330 Section 4. Subsection (1) of section 561.5101, Florida
331 Statutes, is amended to read:
332 561.5101 Come-to-rest requirement; exceptions; penalties.-
333 (1) For purposes of inspection and tax-revenue control,
334 all malt beverages, except those manufactured and sold by the
335 same licensee, pursuant to s. 561.221(2) or (3), must come to
336 rest at the licensed premises of an alcoholic beverage
337 wholesaler in this state before being sold to a vendor by the
338 wholesaler. The prohibition contained in this subsection does
339 not apply to the shipment of malt beverages commonly known as
340 private labels. The prohibition contained in this subsection
341 shall not prevent a manufacturer from shipping malt beverages
342 for storage at a bonded warehouse facility, provided that such
343 malt beverages are distributed as provided in this subsection or
344 to an out-of-state entity. This subsection does not prohibit a
345 manufacturer from delivering alcoholic beverages to a licensed
346 vendor as provided ins. 561.221(2) (f).
347 Section 5. Subsection (2) of section 561.57, Florida
348 Statutes, is amended to read:
349 561.57 Deliveries by licensees.-
350 (2) Deliveries made by a manufacturer or distributor away

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351 from his or her place of business may be made only in vehicles
352 that are owned or leased by the licensee. However, a
353 manufacturer authorized to make deliveries under s.
354 561.221(2) (f) to the licensed premises of a vendor may transport
355 malt beverages in a vehicle owned or leased by the manufacturer
356 or any person who has been disclosed on a license application
357 filed by the manufacturer and approved by the division. By
358 acceptance of an alcoholic beverage license and the use of such
359 vehicles, the licensee agrees that such vehicle shall always be
360 subject to be inspected and searched without a search warrant,
361 for the purpose of ascertaining that all provisions of the
362 alcoholic beverage laws are complied with, by authorized
363 employees of the division and also by sheriffs, deputy sheriffs,
364 and police officers during business hours or other times the
365 vehicle is being used to transport or deliver alcoholic
366 beverages.
367 Section 6. Paragraph (h) of subsection (2) and paragraph
368 (d) of subsection (14) of section 563.022, Florida Statutes, are
369 amended, and subsection (22) is added to that section, to read:
370 563.022 Relations between beer distributors and
371 manufacturers.-
372 (2) DEFINITIONS.-In construing this section, unless the
373 context otherwise requires, the word, phrase, or term:
374 (h) "Manufacturer" means any person who manufactures more
375 than 60,000 barrels of malt beverage a year or imports beer for

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376 distribution to distributors licensed in Florida.
377 (14) MANUFACTURER; PROHIBITED INTERESTS.-
378 (d) Nothing in The Beverage Law does not shall be
379 construed to prohibit a manufacturer from shipping products to
380 or between its breweries, or between its breweries and the
381 licensed premises of a vendor as provided in s. 561. 221 (2) ( f),
382 without a distributor's license.
383 (22) TERMINATION OF CONTRACTS.-Notwithstanding this
384 section, a manufacturer may terminate a contract with a
385 distributor after at least 120 days' written notice if the sale
386 of products to the distributor by the manufacturer does not
387 exceed 5 percent of the distributor's total alcoholic beverage
388 sales in the prior calendar year.
389 Section 7. This act shall take effect July 1, 2020.

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BUSINESS AND PROFESSIONS SUBCOMMITTEE

HB 1153 by Rep. DiCeglie
Beverage Law

AMENDMENT SUMMARY
February 4, 2020

Amendment 1 by Rep. DiCeglie (Line 75):

The amendment makes a technical, conforming change to the bill relating to the use of
the term "keg" ins. 561.221, F.S.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1153 (2020)
Amendment No. 1

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Business & Professions
2 Subcommittee
3 Representative DiCeglie offered the following:
4
5 Amendment
6 Remove line 75 and insert:
7 limited to containers that hold 5.16 gallons,

156533 - hll53-line75.docx
Published On: 2/3/2020 5:46:26 PM
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1161 Local Licensing
SPONSOR(S): Plakon
TIED BILLS: IDEN./SIM. BILLS: SB 890

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee Brackett j}(J Anstead~

2) Government Operations & Technology
Appropriations Subcommittee

3) State Affairs Committee

SUMMARY ANALYSIS
General law directs a number of state agencies and licensing boards to regulate many professions and
occupations. General law can also authorize or preempt local regulation of professions and occupations, which
is typically done specifically and individually by subject matter, business type, or occupation. General law
determines whether local governments are able to regulate occupations and businesses, and to what degree.
If state law preempts regulation for an occupation, then, generally, local governments may not regulate that
occupation. If an occupation is not regulated by the state, local governments are able to regulate such
occupations and impose licensing requirements.

Construction contractors and specialty contractors are licensed and regulated by the state. However, the state
gives local governments the specific authority to license and regulate certain contractors and gives contractors
the choice: become certified with the state and practice statewide or become registered in a local jurisdiction
and only practice in that jurisdiction. Jobs that fall outside the definition or job scope of contractors and
specialty contractors are able to be regulated and licensed by local jurisdictions. If licensed by a local
jurisdiction, that licensee is only allowed to perform that job in the jurisdiction in which the license is held.

The bill allows an individual with a local noncontractor license - for occupations that are not currently
regulated by the state but are only required by specific local governments - to work on real property, to
work within the scope of the license throughout the state with no geographic limitation, and without obtaining
an additional local license, taking an examination, or paying additional fees. The bill allows local governments
to have disciplinary authority over licensees who are licensed in another jurisdiction. However, the bill does not
expand the authorization for registered local contractors or specialty contractors to work anywhere in Florida.

The bill would allow local licensees, such as, cabinet makers, drywall, fence and deck installers, and rain
gutter, interior remodeling, masonry, painting, paving, stuccoing, vinyl siding, and decorative tile and granite
workers, to be licensed in one jurisdiction but work anywhere in the state.

The bill requires DBPR to maintain a local licensing website to allow the public to review the licensing status of
local licensees. The bill also requires a local government to transmit specified local licensing information to
DBPR or to maintain its own website that DBPR may link too.

Local licensees working outside the jurisdiction in which they were issued a local license must provide
consumers seeking services from the licensee sufficient information to access local licensing information and
to verify the licensee's status in the original licensing jurisdiction.

The bill has a fiscal impact on state government. The bill has an indeterminate, but likely insignificant, fiscal
impact on local governments. See Fiscal Comments.

The bill provides an effective date of October 1, 2020.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation
Local Government Authority

Revenue Sources Authorized in the Florida Constitution 5

The Florida Constitution limits the ability of local governments to raise revenue for their operations. The
Florida Constitution provides:

No tax shall be levied except in pursuance of law. No state ad valorem taxes 6
shall be levied upon real estate or tangible personal property. All other forms of
taxation shall be preempted to the state except as provided by general law. 7

Counties, school districts, and municipalities shall, and special districts may, be
authorized by law to levy ad valorem taxes and may be authorized by general
law to levy other taxes, for their respective purposes, except ad valorem taxes on
intangible personal property and taxes prohibited by this constitution. 8

However, not all local government revenue sources are taxes requiring general law authorization.
When a county or municipal revenue source is imposed by ordinance, the question is whether the
charge is a valid assessment or fee. As long as the charge is not deemed a tax, the imposition of the
assessment or fee by ordinance is within the constitutional and statutory home rule powers of county
and municipal governments. If the charge is not a valid assessment or fee, it is deemed a revenue
source requiring general law authorization.

Revenue Sources Based on Home Rule Authority

1
Art. VIII, s. 1(f), Fla. Const.
2
Art. VIII, s. 1(g), Fla. Const.
3
A municipality is a local government entity created to perform functions and provide services for the particular benefit of the
population within the municipality, in addition to those provided by the county. The term "municipality" may be used interchangeably
with the terms "town," "city," and "village."
4
Art. VIII, s. 2(b), Fla. Const. See also s. 166.021(1), F.S.
5
The Florida Legislature, Office of Economic and Demographic Research, 2019 Local Government Financial Information Handbook,
p. 1, http://edr.state.fl.us/Content/local-government/reports/lgfih 19.pdf (Jan. 8, 2020).
6
"Ad valorem tax" means a tax based upon the assessed value of property." Section 192.001(1), F.S.
7
Art. VII, s. l(a), Fla. Const.
8
Art. VII, s. 9(a), Fla. Const.
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regulatory fee should not exceed the regulated activity's cost and is generally required to be applied
solely to the regulated activity's cost for which the fee is imposed. 9

Preemption

State preemption precludes a local government from exercising authority in a particular area, and
requires consistency with the state constitution or state statute. 10 A local government enactment may
be found inconsistent with state law if (1) the Legislature has preempted a particular subject area to the
state or (2) the local regulation conflicts with a state statute. 11

Florida law recognizes two types of preemption: express and implied. Express preemption requires a
specific legislative statement; it cannot be implied or inferred. 12 Express preemption of a field by the
Legislature must be accomplished by clear language stating that intent. 13 When local ordinances have
been enacted in the face of state preemption, the effect has been to find such ordinances null and
void. 14

Implied preemption is a legal doctrine created to address those situations in which the courts may have
been concerned by the legislature's failure to expressly preempt areas which, for all intents and
purposes, seemed dominated by the state. Findings of implied preemption are for a very narrow class
of areas in which the state has legislated pervasively. 15

Professions and Occupations

General law directs a number of state agencies and licensing boards to regulate certain professions
and occupations. For example, the Department of Business and Professional Regulation (DBPR)
currently regulates approximately 25 professions and occupations. 16

General law determines whether local governments are able to regulate occupations and businesses,
and to what degree. 17 If state law preempts regulation for an occupation, then, generally, local
governments may not regulate that occupation. 18 For example, Florida law currently preempts local
regulation with regard to the following:
• assessing local fees associated with providing proof of licensure as a contractor, , or providing,
recording, or filing evidence of worker's compensation insurance coverage by a contractor; 19
• assessing local fees and rules regarding low-voltage alarm system projects; 20
• tobacco and nicotine products; 21
• firearms, weapons, and ammunition; 22
• employment benefits;23

9
EDR, supra note 5.
10
James R. Wolf and Sarah Harley Bolinder, The Effectiveness of Home Rule: A Preemption and Coriflict Analysis, 83 Fla. B.J. 92
(June 2009 ), available at https ://www.floridabar.org/the-florida-bar-j oumal/the-effecti veness-of-home-rule-a-preemption-and-confl ict-
analysis/ (last visited Jan 8, 2020).
11 Id
12
See City of Hollywoodv. Mulligan, 934 So. 2d 1238, 1243 (Fla. 2006); Phantom of Clearwater, Inc. v. Pinellas County, 894 So. 2d
1011, 1018 (Fla. 2d DCA 2005), approved in Phantom of Brevard, Inc. v. Brevard County, 3 So. 3d 309 (Fla. 2008).
13
Mulligan, 934 So. 2d at 1243.
14
See, e.g., Nat 'l Rifle Ass 'n ofAm., Inc. v. City of S. Miami, 812 So.2d 504 (Fla. 3d DCA 2002).
15
Wolf and Bolinder, supra note 17.
16
S. 20.165, F.S.
17
Art. VIII, s. l(t), Fla. Const.; Art. VII, s. 9(a), Fla. Const.; Art. VIII, s. 2(b), Fla. Const.; s. 166.021(1), F.S.
18
Id.; Wolf and Bolinger, supra note 17.
19
S. 553.80(7)(d), F.S.
20
S. 489.503(14), F.S.
21
Ch. 569, F.S., ands. 386.209, F.S.
22
S. 790.33(1), F.S.
23
S. 218.077, F.S.
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• polystyrene products; 24
• public lodging establishments and public food service establishments; 25 and
• disposable plastic bags. 26

Conversely, Florida law also specifically grants local jurisdictions the right to regulate businesses,
occupations and professions in certain circumstances. 27 For example, Florida law specifically
authorizes regulations relating to:
• zoning and land use;
• the levy of "reasonable business, professional, and occupational regulatory fees, commensurate
with the cost of the regulatory activity, including consumer protection, on such classes of
businesses, professions, and occupations, the regulation of which has not been preempted by
the state or a county pursuant to a county charter''; 28
• the levy of local business taxes; 29
• building code inspection fees; 30
• tattoo establishments; 31
• massage practices; 32
• child care facilities; 33
• taxis and other vehicles for hire; 34 and
• waste and sewage collection. 35

If an occupation is not regulated or preempted by the state, local governments are generally able to
regulate such occupations and impose licensing requirements. Some counties and municipalities
choose to require certain local licenses, while others do not.

There are vast differences from jurisdiction to jurisdiction as to what work requires a license and what
does not. 36 For example, only seven counties require a cabinetry specialty license; and nineteen
counties require a painting license. There are also vast differences from jurisdiction to jurisdiction on
what is required to obtain such licenses. For example, Hillsborough County requires an applicant to
have a year of experience and pay a $280 licensing fee to obtain a painting license. Other counties do
not require any experience. Broward County requires a license for residential interior remodeling that
requires three years of experience, and an exam and a fee. Such licenses are not required by the state
for interior remodeling, painting or cabinetry.

Construction Industry Licensing Board

The Construction Industry Licensing Board (CILB) within the Department of Business and Professional
Regulation (DBPR) is responsible for licensing and regulating the construction industry in this state
under part I of ch. 489, F.S. 37

24
S. 500.90, F.S.
25
S. 509.032, F.S.
26
S. 403.7033, F.S.
27
Supra note 25.
28
S. 166.221, F.S.
29
Ch. 205, F.S.
30
S. 166.222, F.S.
31
S. 381.00791, F.S.
32
S. 480.052, F.S.
33
S. 402.306, F.S
34
S. 125.0l(l)(n), F.S.
35
S. 125.0l(l)(k), F.S.
36
Information obtained by the Business and Professions Subcommittee in December 2018 after review of county websites and
obtaining certain information from each county in response to information requests by committee staff
37
Sees. 489.107, F.S.
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Construction contractors are either certified or registered by the CILB. The CILB consists of 18
members who are appointed by the Governor and confirmed by the Senate. The CILB meets to
approve or deny applications for licensure, review disciplinary cases, and conduct informal hearings
relating to discipline. 38

"Certified contractors" are individuals who have met competency requirements for a particular trade
category and holds a geographically unlimited certificate of competency from the DBPR that allows
them to contract in any jurisdiction in the state. 39

"Certified specialty contractors" are contractors whose scope of work is limited to a particular phase of
construction, such as drywall or demolition. Certified specialty contractor licenses are created by the
CILB through rulemaking. Certified specialty contractors are permitted to practice in any jurisdiction in
the state.

"Registered contractors" are individuals that have taken and passed a local competency examination
and can practice the specific category of contracting for which he or she is approved, only in the local
jurisdiction for which the license is issued. Registered contractors must register their license with the
CILB after obtaining a local license. 40

The CILB also creates certified specialty contractor's license through rulemaking. Certified specialty
contractors are contractors whose scope of work is limited to a particular phase of construction that is a
subset of a certified contractor's scope of work, such as a solar water heating specialty contractor4 1 or
a building demolition specialty contractor. 42 Certified specialty contractors are permitted to practice in
any jurisdiction in the state. 43

The CILB licenses the following types of contractors: 44

:StatutQtJ
• Air Conditioning- Classes A, B, and C • Drywall
• Building • Demolition
• General • Gas Line
• Internal Pollutant Storage Tank Lining • Glass and Glazing
Applicator • Industrial Facilities
• Mechanical • Irrigation
• Plumbing • Marine
• Pollutant Storage Systems • Residential Pool/Spa Servicing
• Pool/Spa- Classes A, B, and C • Solar Water Heating
• Precision Tank Tester • Structure
• Residential • Swimming Pool Decking
• Roofing • Swimming Pool Excavation
• Sheet Metal • Swimming Pool Finishes
• Solar • Swimming Pool Layout
• Underground Excavation • Swimming Pool Piping
• Swimming Pool Structural
• Swimmin Pool Trim

38
S. 489.107, F.S.
39
Ss. 489.105(8) and 489.113(1), F.S.
40
Ss. 489.105, & 489.117, F.S.
41
Rule 61G4-15.012, F.A.C.
42
Rule 61G4-15.038, F.A.C.
43
S. 489.105(3)(q), F.S.
44
S. 489.105(a)-(q), F.S.; Rr. 61G4-15.015-040, F.A.C.
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Fee for Certification and Registration
As provided in s. 489.109, F.S., an applicant for certification as a contractor is required to pay an initial
application fee not to exceed $150, and, if an examination cost is included in the application fee, the
combined amount may not exceed $350. For an applicant for registration as a contractor, the initial
application fee may not exceed $100, and the initial registration fee and the renewal fee may not
exceed $200. 45 The initial application fee and the renewal fee is $50 for an application to certify or
register a business. 46

Fees must be adequate to ensure the continued operation of the CILB, and must be based on
estimates of DBPR of the revenue required to implement part I of ch. 489, F.S., and statutory provisions
regulating the construction industry. 47

All certified and registered contractors must pay a fee of $4 to DBPR at the time of application or
renewal, to fund projects relating to the building construction industry or continuing education programs
offered to building construction industry workers in Florida, to be selected by the Florida Building
Commission. 48

Local Regulation of Construction Trades

Current law provides that local jurisdictions may approve or deny applications for licensure as a
registered contractor, review disciplinary cases, and conduct informal hearings relating to discipline of
registered contractors licensed in their jurisdiction. 49 Local jurisdictions are not barred from issuing and
requiring construction licenses that are outside the scope of practice for a certified contractor or
certified specialty contractor, such as painting and fence erection licenses. Local governments may
only collect licensing fees that cover the cost of regulation. 50

Locally registered contractors that are required to hold a contracting license to practice their profession
in accordance with state law must register with DBPR after obtaining a local license. However, persons
holding a local construction license whose job scope does not substantially correspond to the job scope
of a certified contractor or a certified specialty contractor are not required to register with DBPR. 51

According to DBPR: 52
Other than the [Division I and Division II] state-certified or state-registered
professions, other professional trades of construction are not subject to
regulation at the state level. However, under local government authority, counties
and municipalities have created additional local categories for regulation within
the construction industry (i.e., painting, flooring, cabinetry, masonry, plastering,
and other construction-related trades). Under this local regulation patchwork,
varying regulations and fees often create burdens and limitations on a
professional's ability to operate freely and competitively between jurisdictions.

45
S. 489.109, F.S. Any applicant who seeks certification as a contractor under part I of ch. 489, F.S., by taking a practical examination
must pay as an examination fee the actual cost incurred by DBPR in developing, preparing, administering, scoring, score reporting,
and evaluating the examination, if the examination is conducted by DBPR.
46 Id.
47 Id.
48
S. 489.109(3), F.S.
49
Ss.489.117,489.131 F.S.
50
EDR supra, note 5 at 1.
51
Ss. 489.105, & 489.117(4), F.S.
52
Department of Business and Professional Regulation, Agency Analysis of 2020 House Bill 1161, p. 3 (Oct. 1, 2020).
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Effect of Proposed Changes

The bill allows an individual with a valid local license for a noncontractor job issued by a local
government in Florida, to work within the scope of that local license throughout the state with no
geographic limitation, and without obtaining an additional local license, taking an examination, or paying
additional fees.

The expanded authorization for local licensees to work in any jurisdiction in the state does not include
performance of construction contracting work that requires certification or registration from the CILB,
such as roofing or plumbing.

The bill defines:
• "Local government" to mean a county or municipality in within the state.
• "Local license" to mean a license, registration, or similar permit issued and required by a local
government for a noncontractor job scope.

The bill also defines "noncontractor job scope" to mean any category of work that is done to real
property, which does not require certification or registration by the CILB. The term includes, but is not
limited to, the performance or installation of:
• Awnings;
• Cabinetry;
• Carpentry;
• Caulking;
• Debris removal;
• Driveways;
• Drywall;
• Fence and decks;
• Flooring;
• Garage doors;
• Glass and glazing;
• Gunite;
• Gutters and downspouts;
• Hurricane shutters;
• Insulation;
• Interior remodeling;
• Irrigation;
• Landscaping;
• Lightning protection systems;
• Masonry;
• Nonelectrical signs;
• Painting;
• Paving;
• Plastering;
• Stuccoing;
• Tennis courts;
• Vinyl siding; and
• Ornamental or decorative iron, stone, tile, marble, granite, or terrazzo.

The bill provides that local governments have disciplinary authority over noncontractor licensees who
are licensed by another local government but work in that jurisdiction. The bill provides that such
disciplinary authority includes, but is not limited to, suspension and revocation of a licensee's ability to
operate within the local government's jurisdiction.

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Local governments must forward disciplinary orders to a licensee's original licensing jurisdiction. The
original licensing jurisdiction may take action against a licensee for being disciplined by another local
licensing jurisdiction or for violating the scope of practice for the noncontractor license.

The bill requires DBPR to create and maintain an online local licensing information system (website) to
allow the public to review the licensing status of local licensees. The bill also requires a local
government that issues local noncontractor licenses to transmit specified local licensing information to
DBPR. The information must be transmitted by a local government at least monthly and include, at a
minimum, the name, business name, address, license number, and licensing status of the local
licensee. Alternatively, a local government may maintain a website that allows DBPR to link to it.

Local licensees working outside the jurisdiction in which they are licensed must provide consumers
seeking services from the licensee sufficient information to allow access to local licensing information
and to verify the licensee's status in the licensee's original licensing jurisdiction.

The bill does not affect the ability of local governments to collect business taxes.

The bill provides an effective date of October 1, 2020.

B. SECTION DIRECTORY:
Section 1 Creates s. 489.1175, F.S.,

Section 2 Provides an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
See Fiscal Comments.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
Indeterminate.

2. Expenditures:
Indeterminate. The bill requires local governments to transmit specified local licensing information
to DBPR or maintain a website that allows DBPR to link to it. However, any such expenditures are
likely to be insignificant.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have a positive impact on people with noncontractor local licenses because they will be
able to practice throughout the state without having to pay additional fees or take additional exams.

D. FISCAL COMMENTS:
According to DBPR, "The bill requires the Department of Business and Professional Regulation to
create and maintain a local licensing information system available through the internet whereby the

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DATE: 1/31/2020
public may review the licensing status of individuals holding a local license. Recurring cost of hosting
the portal in a cloud-based internet environment is estimated at $25,000-$50,000 annually." 53

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
The county/municipality mandates provision of Art. VII, s. 18 of the Florida Constitution may apply
because the bill requires a local government that issues local licenses to transmit specified local
licensing information to DBPR, or instead maintain a website that allows DBPR to link to it. It also
takes away a local jurisdictions ability to require a license and a licensing fee if the worker is licensed ·
in another jurisdiction but maintains the ability of that jurisdiction to discipline such licensees.
However, an exemption may apply given that laws having an insignificant fiscal impact are exempt
from the requirements of Art. VII, s. 18 of the Florida Constitution.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill provides that noncontractor licenses only apply to job scopes that do not require certification or
registration by the CILB. However, the term "noncontractor job scope" includes work that requires a
certification or registration as contractor in certain circumstances. For example, certain drywall and
glass & glazing work requires licensure as a contractor. Additionally, there is a certified specialty glass
& glazing license54 and a certified specialty gypsum drywall license. 55 This could result in confusion
about what jobs fall under the scope of a noncontractor.

The bill does not provide a remedy or a cause of action if a local government decides to enforce a
licensure fee or exam against a noncontractor licensee who has obtained a license from another local
government in the state. It is not clear how a local licensee will be able to obtain relief in such
situations.

The bill also does not provide a remedy to DBPR if a local government does not update DBPR about
the status of its noncontractor licensees. It is not clear what happens if a local government revokes or
suspends a noncontractor license, but fails to notify DBPR or update its website.

The bill defines a "local license" as a license, registration, or similar permit issued by a local
government. However, the term "permit" is generally used in part I of ch. 489, F.S., to mean a building
permit. This could lead to confusion about what a permit is for purposes of determining what a
noncontractor license includes and whether local jurisdictions can still require a permit.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

53
Department of Business and Professional Regulation, Agency Analysis of2020 House Bill 1161, p. 5 (Oct. 1, 2020).
54
Rule 6104-15.018, F.A.C.
55
Rule 6104-15.017, F.A.C.
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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1161 2020

1 A bill to be entitled
2 An act relating to local licensing; creating s.
3 489.1175, F.S.; defining terms; providing that
4 individuals who hold valid, active local licenses may
5 work within the scope of such licenses in any local
6 government jurisdiction without needing to meet
7 certain additional licensing requirements; requiring
8 licensees to provide consumers with certain
9 information; providing that local governments have
10 disciplinary jurisdiction over such licensees;
11 requiring local governments to forward any
12 disciplinary orders to a licensee's original licensing
13 jurisdiction for further action; requiring the
14 Department of Business and Professional Regulation to
15 create and maintain a local licensing information
16 system; requiring local governments to provide the
17 department with specified information; providing an
18 effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Section 489.1175, Florida Statutes, is created
23 to read:
24 489.1175 Local licensing; portability.-
25 (1) As used in this section, the term:

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HB 1161 2020

26 (a) "Noncontractor job scope" means any category of work
27 that is done to real property and that does not substantially
28 correspond to the job scope of one of the contractor categories
29 defined ins. 489.105(3) (a)-(o). The term includes, but is not
30 limited to, the performance or installation of awnings,
31 cabinetry, carpentry, caulking, debris removal, driveways,
32 drywall, fence and decks, flooring, garage doors, glass and
33 glazing, gunite, gutters and downspouts, hurricane shutters,
34 insulation, interior remodeling, irrigation, landscaping,
35 lightning protection systems, masonry, nonelectrical signs,
36 painting, paving, plastering, stuccoing, tennis courts, vinyl
37 siding and ornamental or decorative iron, stone, tile, marble,
38 granite, or terrazzo.
39 (b) "Local government" means a county or municipality
40 within this state.
41 ( c) "Local license" means a license, registration, or
42 similar permit issued and required by a local government for a
43 noncontractor job scope.
44 (2) (a) An individual who holds a valid, active local
45 license may work within the scope of such license in any local
46 government jurisdiction in addition to the original licensing
47 jurisdiction without having to obtain an additional local
48 license, take an additional local license examination, or pay an
49 additional local license fee. This section does not affect the
50 ability of any local government to collect business taxes,

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HB1161 2020

51 subject to s. 205.065.
52 (b) A licensee who works in the jurisdiction of a local
53 government under the portability protections of this section
54 shall provide a consumer who seeks his or her services
55 information sufficient for the consumer to access the
56 department's local licensing information under subsection (4),
57 so that the consumer may verify his or her license status in the
58 relevant licensing jurisdiction.
59 (3) A local government has the same disciplinary
60 jurisdiction over an individual operating outside his or her
61 original licensing jurisdiction pursuant to this section as it
62 has over its own local licensees, including, but not limited to,
63 the authority to suspend or revoke an individual licensee's
64 ability to operate within its jurisdiction. A local government
65 shall forward any disciplinary orders to an individual's
66 original licensing jurisdiction for further action, as
67 appropriate. The original licensing jurisdiction may take action
68 against a licensee for being disciplined by another local
69 licensing jurisdiction or for violating the original licensing
70 jurisdiction's noncontractor job scope in another jurisdiction.
71 (4) (a) The department shall create and maintain an online
72 local licensing information system whereby the public may review
73 the licensing status of individuals holding a local license.
74 (b) A local government that issues a local license must
75 provide information to the department which is necessary to

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB1161 2020

76 maintain the local licensing information system with respect to
77 the jurisdiction of such local government. Information provided
78 must include at least the name, business name, address, license
79 number, and licensing status of the local licensee. A local
80 government may fulfill this obligation by maintaining its own
81 website that the department may link to, or by providing the
82 information at least monthly to the department.
83 Section 2. This act shall take effect October 1, 2020.

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:r:
OJ
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1169 Specialty Contracting Services
SPONSOR(S): McClure
TIED BILLS: IDEN./SIM. BILLS: SB 1102

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee Brackett {} 8 Anstead

2) Health Quality Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
Construction Contractors, including pool/spa contractors, are certified by or registered with the Construction
Industry Licensing Board (CILB) housed within the Department of Business and Professional Regulation.
Certified contractors can practice statewide and are licensed and regulated by the CILB. Registered
contractors are licensed and regulated by a local jurisdiction and may practice within that locality. Registered
contractors are required to register their license with the CILB.

Specialty contractors are contractors whose scope of work is limited to a particular phase of construction that is
a subset of a certified contractor's scope of work, such as drywall or demolition. Specialty contractor licenses
are created by the CILB through rulemaking. Specialty contractors certified by the CILB are permitted to
practice in any jurisdiction in the state. The CILB has created eight types of pool/spa specialty contractors.

In order to perform contracting in the state, a person must be certified or registered (licensed) as a contractor,
be an employee of a licensed contractor, or fall under an exemption provided in current law.

One exemption allows an unlicensed person to perform contracting if the person is under the supervision of
licensed general, building, or residential contractor, and the work does not require licensure as a subcontractor
such as roofing or plumbing. The work must be within the scope of the supervising contractor's license, the
supervising contractor must be responsible for the work, and the unlicensed person must have a direct contract
with the contractor. However, this is an exemption from state licensure requirements and it does not affect the
ability of local governments to impose licensing requirements on unlicensed persons.

Another exemption allows unlicensed persons to perform contracting for the construction, remodeling, repair,
or improvement of single-family residences and townhouses without obtaining a local license. The unlicensed
person must be under the supervision of licensed general, building, or residential contractor, and the work
cannot require licensure as a subcontractor. The supervision does not require a direct contract between the
general, building, or residential contractor and the unlicensed person performing the contracting.

The bill creates an exemption to licensure requirements by allowing unlicensed persons to perform specialty
contracting for the construction, remodeling, repair, or improvement of commercial or residential swimming
pools, hot tubs, spas, and interactive water features without obtaining a specialty contractor license or local
license. The person must be under the supervision of a licensed pool/spa contractor, the work must be within
the scope of the supervising pool/spa contractor's license, and the work cannot require licensure as a
subcontractor. The supervision does not require a direct contract between the supervising pool/spa contractor
and the unlicensed person.

The bill does not have a fiscal impact on state and local governments.

The bill provides for an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1169.BPS.D0CX
DATE: 1/31/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation

Contractors are regulated by ch. 489, F.S., which outlines the law pertaining to contractors in the state
of Florida. Part I of ch. 489, F.S., covers contracting regulated by the Construction Industry Licensing
Board (CILB) and pt. II of ch. 489, F.S., covers contracting regulated by the Electrical Contractors'
Licensing Board. Both boards are housed in the Department of Business and Professional Regulation
(DBPR).

Contractors are either certified or registered by the CILB. The CILB consists of 18 members who are
appointed by the Governor and confirmed by the Senate. The CILB meets to approve or deny
applications for licensure, review disciplinary cases, and conduct informal hearings relating to
discipline. 1

"Certified contractors" are individuals who pass the state competency examination and obtain a
certificate of competency issued by DBPR. Certified contractors are able to obtain a certificate of
competency for a specific license category and are permitted to practice in that category in any
jurisdiction in the state. 2

In order to perform construction contracting in the state, a person must be certified or registered as a
contractor, be an employee 4 of a certified or registered contractor, or fall under an exemption provided
in current law. 5

Swimming Pool/Spa Contractors

"Commercial pool/spa contractors" are individuals who are certified or registered to construct, repair,
and service any public or private swimming pool, hot tub, or spa including: 6
• Installing, repairing, or replacing existing equipment;
• Cleaning or equipment sanitizing that requires at least a partial disassembling, excluding filter
changes;
• Installing new pool/spa equipment, interior finishes, package pool heaters, and perimeter piping
and filter piping;
• Constructing equipment rooms or housing for pool/spa equipment; and
• The scope of work of a swimming pool/spa servicing contractor.

1 S. 489.107, F.S.
2 S. 489.105, F.S.
3
Ss. 489.105, & 489.117, F.S.
4
"Employee" means a person who receives compensation from and is under the supervision and control of an employer
who regularly deducts the F.I.C.A. and withholding tax and provides workers' compensation, all as prescribed by law. S.
489.103(2)(b), F.S.
5 Ss. 489.103(2), & 489.113, F.S.
6 S. 489.105(3)U), F.S.
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"Residential pool/spa contractors" are individuals who are certified or registered to construct repair, and
service any residential swimming pool, hot tub, or spa. The scope of work is identical to the scope of
work for commercial pool/spa contractors; however, residential pool/spa contractors may only work on
residential swimming pools, hot tubs, and spas. 7

"Swimming pool/spa servicing contractors" are individuals who are certified or registered to repair and
service any public or private swimming pool, hot tub, or spa including: 8
• Repairing or replacing existing equipment;
• Cleaning or equipment sanitizing that requires at least a partial disassembling, excluding filter
changes;
• Installing new pool/spa equipment and interior refinishing;
• Reinstalling or adding pool heaters;
• Repairing or replacing perimeter piping and filter piping;
• Repairing equipment rooms or housing for pool/spa equipment; and
• Substantially or completing draining a swimming pool, or hot tub or spa, for the purpose of
repair or renovation.

The scope of work for all three types of swimming pool/spa contractors does not include direct
connections to a sanitary sewer system or to potable water lines. 9

Water treatment or cleaning a pool or spa does not require a license unless the structural integrity of
the pool or spa is affected, or equipment attached to the pool or spa must be substantially or completely
disassembled or replaced in order to treat the water or clean the pool. Installing an aboveground pool
also does not require a license. 10

A contractor, including pool/spa contractors, must subcontract all electrical, mechanical, plumbing,
roofing, sheet metal, and air-conditioning work, to a contractor certified or registered in the respective
category, unless the pool/spa contractor also holds a state certificate or registration in the respective
category. 11

In order to obtain certification as one of the swimming pool/spa contractors, a person must: 12
• Apply to DBPR in writing;
• Be 18 years of age;
• Be of good moral character;
• Pass the examination for the certification sought; and
• Have one of the following:
o A bachelor degree from a four year college in the appropriate field of engineering,
architecture, or building construction, and one year of proven experience;
o Four years of experience as a foreman or a skilled worker with at least one year as a
foreman;
o A combination of college and experience as a foreman or skilled worker that equals four
years with at least one of the years as a foreman; or
o One year of experience and 60 hours of instruction courses approved by the CILB;
however, this only applies to swimming pool/spa servicing contractors.

7
S. 489.105(3)(k}, F.S.
8
S. 489.105(3)(1), F .S.
9 S. 489.105, F.S.
10
Ss. 489.103(6), & 489.105, F.S.; DBPR, Trust but Verify,
http://www.myfloridalicense.com/dbpr/reg/documents/trustbutverify OOO.pdf?x40199 (last visited Jan. 29, 2020).
11 S. 489.113(3), F .S.
12 Ss. 489.111, & 489.113, F.S.
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Pool/Spa Specialty Contractors

"Certified specialty contractors" are contractors whose scope of work is limited to a particular phase of
construction that is a subset of a certified contractor's scope of work, such as a drywall specialty
license or a demolition specialty license. Certified specialty contractor licenses are created by the CILB
through rulemaking. Certified specialty contractors are permitted to practice in any jurisdiction in the
state. 13

The CILB has created eight types of pool/spa specialty contractor certifications. Pool/spa specialty
contractors, except residential swimming pool/spa servicing specialty contractors, must work under
contract with and under the supervision of a licensed swimming pool/spa contractor. However, they are
not required to be employees of a licensed pool/spa contractor. 14

The CILB has created the following eight types of pool/spa specialty contractors: 15
• Swimming Pool Layout Specialty Contractor-
o The scope of work is limited to the layout, shaping, steel installation, and rough piping of
pools, spas, and hot tub shells.
• Swimming Pool Structural Specialty Contractor-
o The scope of work is limited to the shaping and shooting of gunite, shotcrete, concrete,
or similar product mix used in the construction of swimming pools and spas, and the
installation of fiberglass shells and vinyl liners.
• Swimming Pool Excavation Specialty Contractors -
o The scope of work is limited to the excavation and earthmoving for the installation of
pools, spas, and hot tub shells;
• Swimming Pool Trim Specialty Contractor -
o The scope of work is limited to the installation of tile and coping for pools, spas, hot tub
shells, and decorative or interactive water displays;
• Swimming Pool Decking Specialty Contractor-
o The scope of work is limited to the construction and installation of concrete flatwork,
pavers and bricks, retaining walls, and footings associated with the construction of
pools, spas, and hot tub shells.
• Swimming Pool Piping Specialty Contractor-
o The scope of work is limited to the installation of piping or the installation of circulating,
filtering, disinfecting, controlling, or monitoring equipment and devices used in the
construction of pools, spas, hot tubs, and decorative or interactive water displays or
areas.
• Swimming Pool Finishes Specialty Contractor-
o The scope of work is limited to the coating or plastering of the interior surfaces of pools,
spas, or hot tub shells.
• Residential swimming pool/spa servicing specialty contractor-
o The scope of work is identical to the scope of work for swimming pool/spa servicing
contractors; however, they may only work on residential swimming pools, hot tubs, and
spas.

In order to obtain one of the certified specialty pool/spa contractor a person must: 16
• Submit a written application to the CILB;
• Be at least 18 years of age;
• Be of good moral character;
• Pass a written examination for the specialty pool/spa contractor category sought; and

13 S. 489.105(3)(q), F.S.
14 Rule 61G4-15.032, F.A.C.; Rule 61G4-15.040, F.A.C.
15 /d.
16 Rule 61G4-15.032, F.A.C.
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• Demonstrate four years of experience in the specialty pool/spa contractor category sought, or
one year of experience and 60 hours of instruction courses approved by the GILB; however,
the one year of experience only applies to residential swimming pool/spa servicing contractors.

Exemptions

A current exemption allows an unlicensed person to perform contracting if the person is under the
supervision of licensed general, building, or residential contractor, and the work may not be work that
requires licensure as a roofing, sheet metal, air-conditioning, mechanical, pool/spa, plumbing, solar, or
underground utility and excavation contractor. The work must be within the scope of the supervising
contractor's license, and the supervising contractor must also be responsible for the work. The
unlicensed person must have a direct contract with the contractor. However, this is an exemption from
state licensure requirements and it does not affect the ability of local governments to impose licensing
requirements on unlicensed persons. 17

In 1993, the Legislature passed the "Jim Walter'' exemption that allows unlicensed persons to perform
contracting for the construction, remodeling, repair, or improvement of single-family residences and
townhouses 18 without obtaining a local license. The person must be under the supervision of licensed
general, building, or residential contractor, and the work may not be work that requires licensure as a
roofing, sheet metal, air-conditioning, mechanical, pool/spa, plumbing, solar, or underground utility and
excavation contractor. 19

Such supervision does not require a direct contract between the licensed general, building, or
residential contractor and the unlicensed person performing the contracting. 20 A legal challenge to the
applicability of this exemption to local license requirements in St. Johns County was not successful. 21

Effect of the Bill

The bill provides that unlicensed persons may perform specialty contracting for the construction,
remodeling, repair, or improvement of commercial or residential swimming pools, hot tubs, spas, and
interactive water features 22 without obtaining a specialty contractor license or local license. The person
must be under the supervision of licensed commercial or residential pool/spa contractor or swimming
pool/spa servicing contractor, the work must be within the scope of the supervising contractor's license,
and the work may not be work that requires licensure as a roofing, sheet metal, air-conditioning,
mechanical, plumbing, solar, or underground utility and excavation contractor.

Such supervision does not require a direct contract between the commercial or residential pool/spa
contractor or swimming pool/spa servicing contractor and the unlicensed person performing the
specialty contracting services.

B. SECTION DIRECTORY:
Section 1. Amends s. 489.117, F.S., creating an exemption.

Section 2. Provides an effective date of July 1, 2020.

17 S. 489.113(2), F.S.; Florida Home Builders Association v. St. Johns County, 914 So. 2d 1035 (Fla. 5th DCA 2005).
18 "Townhouses" was added to the exemption in 2003. Ch. 03-257, Laws of Fla.
19 Ch. 93-154, Laws of Fla.; S. 489.117, F.S.; Florida Home Builders Association 914 So. 2d at 1037.
20 Id.
21 Florida Home Builders Association 914 So. 2d at 1035.
22 The Florida Building Code defines "interactive water features" as a structure designed to allow for recreational activities

with recirculated, filtered, and treated water; but having minimal standing water. Water from the interactive fountain type
features is collected by gravity below grade in a collector tank or sump. The water is filtered, disinfected and then pumped
to the feature spray discharge heads. The collector tank and water filtration features required make this structure a type of
public swimming pool. S. 454 of the Sixth edition of the Florida Building Code (Building).
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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have a positive impact on the private sector by allowing persons, who are under the
supervision of licensed pool/spa contractors, to perform work on pools, spas, hot tubs, and interactive
water features without having to obtain a license.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
The term "interactive water feature" is not used in ch. 489, F.S. This could lead to confusion about what
an interactive water feature is, especially if the term is amended or removed from a future edition of the
Florida Building Code.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1169 2020

1 A bill to be entitled
2 An act relating to specialty contracting services;
3 amending s. 489.117, F.S.; authorizing the performance
4 of certain specialty contracting services for
5 commercial or residential swimming pools, hot tubs or
6 spas, or interactive water features by certain persons
7 under the supervision of specified licensed
8 contractors; providing that such supervision does not
9 require a direct contract between specified persons;
10 providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Paragraph (e) is added to subsection (4) of
15 section 489.117, Florida Statutes, to read:
16 489.117 Registration; specialty contractors.-
17 ( 4)

18 (e) Any person who is not required to be certified or
19 registered under s. 489.105(3) (d)-(i) ors. 489.105(3) (m)-(o)
20 may perform specialty contracting services for the construction,
21 remodeling, repair, or improvement of commercial or residential
22 swimming pools, hot tubs or spas, or interactive water features,
23 as defined in the Florida Building Code, without obtaining a
24 local contractor license or specialty license if such person is
25 under the supervision of a person who is certified or registered

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1169 2020

26 under s. 489.105(3) (j)-(1), provided that the work is within the
27 scope of the supervising contractor's license. Such supervision
28 does not require a direct contract between a person certified or
29 registered under s. 489.105(3) (j)-(1) and the person performing
30 specialty contracting services.
31 Section 2. This act shall take effect July 1, 2020.

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BUSINESS & PROFESSIONS SUBCOMMITTEE

HB 1169 by Rep. McClure
Specialty Contracting Services

AMENDMENT SUMMARY
February 4, 2020

Amendment 1 by Rep. McClure (Strike-all amendment):
The strike-all amendment:
• Provides that the supervising pool/spa contractor must be responsible for the work
performed by the unlicensed person;
• Clarifies that the unlicensed person may not be performing any work that requires an
electrical contractor's license;
• Clarifies that the unlicensed person does not have to be an employee of the supervising
pool/spa contractor;
• Clarifies that the bill does not limit any other exemptions to construction contractor
licensure requirements in current law such as the handyman exemption; and
• Removes the term "interactive water feature" since this term is not used anywhere in the
construction contractor practice act.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1169 (2020)
Amendment No. 1.

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER

1 Committee/Subcommittee hearing bill: Business & Professions
2 Subcommittee
3 Representative McClure offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Paragraph (e) is added to subsection (4) of
8 section 489.117, Florida Statutes, to read:
9 489.117 Registration; specialty contractors.-
10 ( 4)

11 (e) A person who is not certified or registered may
12 perform the work of a specialty contractor, whose limited scope
13 of work falls under s. 4 8 9. 105 ( 3) ( j) - ( 1), for the construction,
14 remodeling, repair, or improvement of commercial and residential
15 swimming pools, hot tubs, and spas, without obtaining a local
16 license or certification as a specialty contractor, provided the
300001 - hll69-strike.docx
Published On: 2/3/2020 4:13:30 PM
Page 1 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1169 (2020)
Amendment No. 1.

17 person is supervised by a contractor certified or registered
18 under s. 489.105(3) (j)-(1), the work is within the scope of the
19 supervising contractor's license, the supervising contractor is
20 responsible for the work, and the work does not require
21 certification or registration under s. 489 .105 (3) (d) - (i), (m) -
22 (o), ors. 489.505. Such supervision does not require a direct
23 contract between the contractor certified or registered under s.
24 489.105(3) (j)-(1) and the person performing the work, or for the
25 person performing the work to be an employee of the contractor
26 certified or registered under s. 489.105(3) (j)-(1). This
27 subsection does not limit the exemptions provided ins. 489.103.
28 Section 2. This act shall take effect July 1, 2020.
29
30
31
32 T I T L E A ME N D ME N T
33 Remove everything before the enacting clause and insert:
34 An act relating to specialty contracting; amending s.
35 489.117, F.S.; authorizing the performance of certain
36 specialty contracting for commercial or residential
37 swimming pools, hot tubs, and spas by certain persons
38 under the supervision of specified licensed
39 contractors; providing that such supervision does not
40 require a direct contract between specified persons or

300001 - h1169-strike.docx
Published On: 2/3/2020 4:13:30 PM
Page 2 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1169 ( 2020)
Amendment No. 1.

41 for a person to be an employee of specified licensed
42 contractors; providing an effective date

300001 - h1169-strike.docx
Published On: 2/3/2020 4:13:30 PM
Page 3 of 3
I
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1353 Private Security Services
SPONSOR(S): Polsky
TIED BILLS: IDEN./SIM. BILLS: SB 1834

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee

2) Agriculture & Natural Resources Appropriations
Subcommittee

3) Commerce Committee

SUMMARY ANALYSIS
The Division of Licensing within the Department of Agriculture and Consumer Services (DACS) oversees
Florida's private investigative, private security and recovery services industries. This includes licensing,
enforcing compliance standards, and ensuring public protection from unethical and unlicensed activity.
Currently, DACS offers 22 different types of private investigative, private security and recovery services
licenses, and has issued a total of 183,415 licenses to qualified applicants.

The bill:
• Allows certain military firearm experience to replace Class "K" Firearms Instructor training;
• Requires the Florida Department of Law Enforcement (FDLE) to share results from the National Instant
Criminal Background Check System (NICS) and Index with DACS to determine eligibility for a Class "G"
Statewide Firearm license or a Class "K" Firearms Instructor license;
• Removes the requirement that DACS provide arrest information to industry businesses;
• During a state of emergency, allows DACS to waive certain experience requirements;
• Authorizes the issuance of certain license cards in digital format;
• Allows DACS to waive the firearms training option for Class "G" Statewide Firearm recertification if the
licensee holds a valid Class "K" Firearms Instructor license;
• Gives DACS more flexibility when charging late fees for renewal applications;
• Allows issuance of a temporary Class "G" Statewide Firearm license if the applicant currently holds an
individual or business private investigative or security officer license;
• Authorizes DACS to publish the industry newsletter and pamphlet on line in lieu of paper format;
• Removes the requirement that applicants complete the full training and examination in order to
reinstate their license after a license is invalid for more than one year;
• Authorizes training for initial Class "D" Security Officer licensure to be conducted online;
• Authorizes electronic verification, instead of verification under oath, for certain applications for
licensure.

The bill will have an indeterminate fiscal impact on state government and the private sector. The bill is not
expected to have a fiscal impact on local governments. See Fiscal Analysis.

The effective date of the bill is July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1353.BPS.D0CX
DATE: 1/31/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Private Investigative, Private Security and Recovery Services

The Division of Licensing (Division) within the Department of Agriculture and Consumer Services
(DACS) oversees Florida's private investigative, private security and recovery services industries. The
regulatory oversight of the private investigative, private security and recovery services industries
includes licensing, enforcing compliance standards, and ensuring public protection from unethical
business practices and unlicensed activity. 1

Currently, the Division offers 22 different types of private investigative, private security and recovery
services licenses. As of December 31, 2019, the Division had issued a total of 183,415 licenses to
qualified applicants. The following chart provides a breakdown of the total number of each license
type. 2

Licease~Tioir.:.;: · •
,, ,,, ",,,, '' ""'"' ,, ' '"''I, ,tt'/, :~
License1\Title . .. .. ..:. ·.. Total ·.
C Private lnvestioators 7,195
cc Private lnvestiqator Interns 1,369
A Private Investigative Agencies 2,790
AA Private Investigative Agency 23
Branch Offices
MA Private Investigative Agency 80
Managers
M Private Investigative/Security 475
Agency Managers
D Securitv Officers 140,166
B Securitv Aoencies 1,770
BB Security Agency Branch Offices 193
MB Securitv Manaoers 1,414
AB Security Agency/Private 20
Investigative Agency Branch
Offices
DS Securitv Officer Schools 377
DI Securitv Officer Instructors 1,678
G Statewide Firearm Licenses 23,701
K Firearms Instructors 638
E Recovery Agents 799
EE Recoverv Aoent Interns 351
R Recovery Agencies 320
RR Recoverv Aaencv Branch Offices 40
MR Recoverv Aoencv Manaoers 2
RS Recoverv Aqent Schools 5
RI Recoverv Aaent Instructors 9
:,:rdta1. 11Number of Ucen·ses. ... ..
" ' ' ' ' '
).)
....• .
) .... ..•.
········•····•·•
... ···\::...:
•.
·. . .) .s1u·,1s.: .. · ..:.···· .
... ..; .:..; ) ... .. .. ···. .; . ...

1
The Florida Department of Agriculture and Consumer Services, Division ofLicensing, https://www.fdacs.gov/Divisions-
Offices/Licensing (last visited Jan. 26, 2020).
2
The Florida Department of Agriculture and Consumer Services, Division of Licensing Statistical Reports,
https://www.fdacs.gov/Divisions-Offices/Licensing/Statistical-Reports (last visited Jan. 27, 2020).
STORAGE NAME: h1353.BPS.DOCX PAGE: 2
DATE: 1/31/2020
Initial Application for Licensure for Private Investigative, Private Security and Recovery
Services

Current Situation

Each individual, partner, or principal officer in a corporation, is required to file with DACS a complete
application signed and verified by the individual "under oath" as provided ins. 92.525, F.S., which
authorizes documents to be verified in the following three ways:
• Under oath or affirmation taken or administered before a judge, clerks or deputy clerk of court,
or any notary public;
• Under oath or affirmation taken or administered by law enforcement officer, correctional officer,
or traffic officer under electronic means or in the physical presence of the affiant; or
• Signing a written declaration. 3

However, since the law specifies that applications must be verified "under oath," the law does not allow
for electronic verification of applications.

An applicant for a Class "G" Statewide Firearm license is required to submit an application, a
background history check, a full set of fingerprints, and satisfy minimum training criteria for firearms
established by DACS rule, including, but not limited to, 28 hours of range and classroom training taught
and administered by a Class "K" Firearms Instructor, with no more than 8 hours consisting of range
training. 4

To become licensed as a Class "K" Firearms Instructor, an applicant is required to submit an
application, a background history check, a full set of fingerprints, and provide one of the following
certificates, which indicate a proficiency with firearms instruction:
• The Florida Criminal Justice Standards and Training Commission Instructor Certificate and
written confirmation by the commission that the applicant possesses an active firearms
certification;
• A valid National Rifle Association Private Security Firearm Instructor Certificate issued not more
than three years before the submission of the applicant's Class "K" application; or
• A valid firearms instructor certificate issued by a federal law enforcement agency issued not
more than three years before the submission of the applicant's Class "K" application. 5

Proposed Changes

The bill authorizes former military firearms instructors to use their experience in the military as a
training requirement when applying for a Class "K" Firearms Instructor license. Specifically, the bill
allows applicants for a Class "K" Firearms Instructor license to submit a valid DD Form 214 issued by
the United States Department of Defense not more than three years before the submission of the
applicant's Class "K" application, indicating that the applicant has been honorably discharged and
served at least three years in the military as a firearms instructor.

The bill clarifies that in order to obtain a Class "G" Statewide Firearms license, an individual must
receive training from a licensed Class "K" Firearms Instructor.

The bill also revises the reference to the "individual" who is required to sign and verify an application by
instead referencing the "applicant."

3
S. 493.6105, F.S.
4 Id.
5 Id.
STORAGE NAME: h1353.BPS.D0CX PAGE: 3
DATE: 1/31/2020
Criminal Background Checks

Current Situation

Individual applicants for private investigative, private security and recovery services licensure must be
of good moral character, not have a disqualifying criminal history or disqualifying history of mental
illness, drug or alcohol abuse, and must be authorized to work in this country. Each applicant must
disclose contact and background information, and submit to a federal background check. Individuals
applying for a Class "G" Statewide Firearm or a Class "K" Firearms Instructor license, must not be
prohibited from purchasing or possessing a firearm by state or federal law. 6

The National Instant Criminal Background Check System (NICS) is a national system that checks
available records on persons who may be disqualified from receiving firearms, and includes active
records in the NICS Indices by state. The FBI developed the system through a cooperative effort with
the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and local and state law enforcement
agencies. The NICS is designed to respond instantly on most background check inquiries. 7

Current law does not authorize the Florida Department of Law Enforcement (FDLE) to share
information from the NICS and Indices with DACS for purposes of determining eligibility of Class "G"
Statewide Firearm or a Class "K" Firearms Instructor license applicants.

Proposed Changes

The bill authorizes FDLE to provide results from the "NICS and Index" to DACS to determine eligibility
for a Class "G" Statewide Firearm license or a Class "K" Firearms Instructor license to the extent
allowed under federal law.

Notice of Arrest

Current Situation

Private investigative, private security and recovery services licensees are required to notify their
employer within three calendar days if they are arrested. If DACS receives information about an arrest
within the state of a licensee for a crime that could potentially disqualify the person from holding such a
license, DACS is required to provide the arrest information to the agency that employs the licensee. 8

Proposed Changes

The bill removes the requirement that DACS provide arrest information to an agency related to their
employees. However, licensees will still be required to notify their employer within three calendar days
of an arrest.

Reciprocity

Current Situation

DACS is authorized to adopt rules for:

6
S. 493.6106, F.S.
7
The Federal Bureau of Investigation, National Instant Criminal Background Check System (NICS),
https://www.fbi.gov/services/cjis/nics (last visited Jan. 26, 2020).
8
S. 493.6108, F.S.
STORAGE NAME: h1353.BPS.DOCX PAGE: 4
DATE: 1/31/2020
• Entering into reciprocal agreements with other states or territories of the United States for the
purpose of licensing persons who are currently licensed to perform similar services in the other
states or territories; or
• Allowing a person who is licensed in another state or territory to perform similar services in this
state, on a temporary and limited basis, without the need for licensure. 9

The requirements in the other state or territory must be substantially similar to, or greater than, those
established in Florida. The applicant is required to have "engaged in licensed activities for at least 1
year'' in the other state or territory with no disciplinary action. The Commissioner of Agriculture or other
appropriate authority of the other state or territory must agree to accept service of process for those
licensees who are operating in this state on a temporary basis. 10

Proposed Changes

The bill authorizes DACS to waive the requirement for out-of-state applicants to have "engaged in
licensed activities for at least one year" in the other state or territory, during a declared state of
emergency. This will make it easier to provide temporary private investigative, private security and
recovery services during a state of emergency.

Identification Cards

Current Law

Currently, DACS provides all private investigative, private security and recovery services licensees with
license identification (ID) cards. The ID cards are required to:
• Be on a form prescribed by DACS; and
• Include the licensee's name, license number, expiration date of the license, and any other
information DACS deems necessary. 11

The following licensees must be in the possession of the related ID card while on duty:
• Class "C" Private Investigators;
• Class "CC" Private Investigator Interns;
• Class "D" Security Officers;
• Class "E" Recovery Agents;
• Class "EE" Recovery Agent Interns;
• Class "M" Private Investigative/Security Agent Managers;
• Class "MA" Private Investigative Managers;
• Class "MB" Security Managers;
• Class "MR" Recovery Agency Managers; and
• Class "G" Statewide Firearms Licenses. 12

Proposed Changes

The bill authorizes DACS to issue a single license card indicating that the licensee holds multiple
classes of licenses, or an electronic license in a digital format containing a quick-response barcode
identifying the individual licensure class or classes.

The bill also authorizes licensees to carry a digital image of the license card on his or her person in lieu
of a physical card.

9
S. 493.6109, F.S.
to Id.
11
S. 493.6111(1), F.S.
12 Id.
STORAGE NAME: h1353.BPS.D0CX PAGE: 5
DA TE: 1/31/2020
Change of Partners

Current Situation

Each private investigative, private security and recovery services agency is required to, upon the
employment or termination of employment of a licensee, report such within 15 calendar days to DACS.
For terminations, the reason for termination must be reported. The report must be submitted
electronically in a manner prescribed by DACS. 13

Proposed Changes

The bill revises the requirement that private investigative, private security and recovery services
agencies notify DACS of a change in employment or termination of a licensed employee. Instead, the
bill requires notification only in the case of termination for a violation of the law governing the private
investigative, private security and recovery services industry.

Renewal Application for Licensure

Current Situation

Currently, an applicant for renewal of a Class "G" Statewide Firearm license is required to "submit proof
that he or she has received" during each year of the license period:
• A minimum of four hours of firearms recertification training taught by a Class "K" Firearms
Instructor licensee; and
• Has complied with such other health and training requirements that DACS must adopt by rule. 14

Proof of completion of firearms recertification training must be submitted to DACS by the applicant
upon completion of the training. 15

DACS is authorized to waive the firearms training requirement if:
• The applicant provides proof of current certification as a law enforcement officer or correctional
officer under the Criminal Justice Standards and Training Commission and has completed law
enforcement firearms requalification training annually during the previous two years of the
licensure period;
• The applicant provides proof of current certification as a federal law enforcement officer and has
received law enforcement firearms training administered by a federal law enforcement agency
annually during the previous two years of the licensure period; or
• The applicant submits a valid firearm certificate among those specified for Class "K" Firearms
Instructor licenses ins. 493.6105(6)(a}, F.S., and provides proof of having completed
requalification training during the previous two years of the licensure period. 16

Additionally, each Class "K" Firearm Instructor licensee is required to submit one of the firearm
certificates specified under s. 493.6105(6), F.S., as proof that he or she remains certified to provide
firearms instruction. 17

Failure of a private investigative, private security and recovery services licensee to renew a license on
or before its expiration requires the licensee to:
• Renew his or her license by fulfilling the applicable renewal requirements; and

13
S. 493.6112(2), F.S.
14
S. 493.6113(3)(b), F.S.
1s Id.
16 Id.
17
S. 493.6113(3)(d), F.S.
STORAGE NAME: h1353.BPS.DOCX PAGE: 6
DATE: 1/31/2020
• Pay a late fee equal to the amount of the license fee. 18

Proposed Changes

The bill:
• Requires Class "G" Statewide Firearm license renewal applicants to "submit proof' of
compliance with other rules regarding health and training requirements; and
• Requires the Class "K" Firearms Instructors to submit proof of each student's completion of
firearm requalification training to DACS electronically in a manner prescribed by DACS, instead
of requiring the applicant to submit such proof.

The bill allows DACS to waive the firearms training requirement for Class "G" Statewide Firearm license
renewal applicants who provide proof that they hold a valid Class "K" Firearms Instructor license. It also
removes DACS' ability to waive such training for those that complete training in the previous two years.

The bill includes an additional option that allows DACS to waive the firearms training requirement for
Class "G" Statewide Firearm license renewal applicant who provide proof of completion of annual
firearms training in accordance with the requirements of the federal Law Enforcement Officers' Safety
Act, 18 U.S.C. ss. 9268 and 926C.

The bill includes an additional option that allows DACS to waive the firearms training requirement for
Class "K" Firearms Instructor license renewal applicants who submit proof of having taught at least six
28-hour firearms instruction courses to Class "G" Statewide Firearm license applicants during the
previous three-year licensure period.

The bill makes the automatic late fee for late filed private investigative, security, or recovery services
license renewal applications discretionary, instead of mandatory.

Temporary Class "G" Statewide Firearm License

Current Situation

Currently, DACS is authorized to issue a temporary 19 Class "G" Statewide Firearm license, on a case-
by-case basis, if:
• The agency or employer has certified that the applicant has been determined to be mentally and
emotionally stable by either:
o A validated written psychological test taken within the previous 12-month period;
o An evaluation by a psychiatrist or psychologist licensed in this state or by the Federal
Government made within the previous 12-month period; or
o Presentation of a DD form 214, issued within the previous 12-month period, which
establishes the absence of emotional or mental instability at the time of discharge from
military service;
• DACS has reviewed the mental health and substance abuse data provided by FDLE, as
authorized ins. 493.6108(3), F.S., and has determined the applicant is not prohibited from
licensure based upon this data;
• The applicant has submitted a complete application for a Class "G" Statewide Firearm license,
with a notation that she or he is seeking the license;
• The applicant has completed all Class "G" Statewide Firearm license minimum training
requirements; and

1s Id.
19
S. 493.6115(15), F.S., provides that the temporary Class "G" license is valid until the Class "G" license is issued or denied. If the
department denies the Class "G" license, any temporary Class "G" license issued to that individual is void, and the individual shall be
removed from armed duties immediately.
STORAGE NAME: h1353.BPS.D0CX PAGE: 7
DATE: 1/31/2020
• The applicant has received approval from DACS subsequent to its conduct of a criminal history
record check as authorized ins. 493.6108(1), F.S. 20

Proposed Changes

The bill allows issuance of a temporary Class "G" Statewide Firearm license if the applicant currently
holds one of the following licenses:
• Class "C" Private Investigators;
• Class "CC" Private Investigator Interns;
• Class "D" Security Officers;
• Class "M" Private Investigative/Security Agent Managers;
• Class "MA" Private Investigative Managers; and
• Class "MB" Security Managers

Industry Newsletter

Current Situation

Currently, DACS is authorized to periodically publish a newsletter to advise private investigative, private
security and recovery services licensees of information that DACS or the Private Investigation,
Recovery and Security Advisory Council 21 determines is of interest to the industry. The newsletter
must:
• Contain the name and locality of any licensed or unlicensed person or agency against which
DACS has filed a final order relative to an administrative complaint, and the final disposition;
• Be published not less than two, or more than four, times annually; and
• Notice intervening changes to the regulatory situation. 22

In addition, DACS is required to develop and make available to each Class "C" Private Investigator,
Class "D" Security Officer, and Class "E" Recovery Agent licensee, and all interns, a pamphlet detailing
in plain language the legal authority, rights, and obligations of each class of licensure. The pamphlet
should present situations that the licensee may be expected to commonly encounter, and provide
information on legal options, authority, limits to authority, and obligations. 23

DACS is also required to supplement the pamphlet with citations to statutes and legal decisions, as well
as a selected bibliography that would direct the licensee to certain materials, the study of which would
enhance his or her professionalism. DACS must provide a single copy of the appropriate pamphlet,
without charge, to each individual to whom a license is issued, but may charge for additional copies to
recover publication costs. The pamphlet must be updated every two years as necessary to reflect rule
or statutory changes, or court decisions. 24

Proposed Changes

The bill authorizes DACS, at its discretion, to publish all information related to the newsletter and
pamphlet online in lieu of paper format.

20
S. 493.6115(12), F.S.
21
In accordance withs. 493.6104, F.S., DACS has established an advisory council known as the Private Investigation, Recovery and
Security Advisory Council.
22
S. 493.6123, F.S.
23 Id.
24 Id.
STORAGE NAME: h1353.BPS.D0CX PAGE: 8
DATE: 1/31/2020
Private Investigative Intern License Requirements

Current Situation

Before submission of an application to DACS, the applicant for a Class "CC" Private Investigative Intern
license must:
• Complete a minimum of 40 hours of professional training pertaining to general investigative
techniques and the law governing private investigative, private security and recovery services,
which course is offered by a state university or by a school, community college, college, or
university under the purview of the Department of Education; and
• Pass an examination. 25

The certificate evidencing satisfactory completion of the 40 hours of professional training must be
submitted by the applicant with the application, and may be provided by face-to-face presentation,
online technology, or a home study course in accordance with rules and procedures of the Department
of Education. The administrator of the examination must verify the identity of each applicant taking the
examination. 26

Upon successful completion of the training, and passage of an examination, the school, community
college, college, or university is required to issue a certificate of completion to the applicant on a form
established by DACS rule. 27

DACS is also required to establish by rule the general content of the professional training and the
examination criteria. 28

If the license of an applicant for relicensure is invalid for more than one year, the applicant must
complete the full training and examination in order to reinstate their license. 29

An individual licensed on or before August 31, 2008, is not required to complete additional training
hours in order to renew an active license beyond the total required hours. In addition, the timeframe for
completion in effect at the time the licensee was licensed applies. 30

Proposed Changes

The bill requires applicants for a Class "CC" Private Investigative Intern license to complete the
required training within three years after receipt of the application.

The bill requires the school, community college, college, or university, instead of the applicant, to
submit proof of successful completion of the required training to DACS.

The bill removes the requirement that applicants complete the full training and examination in order to
reinstate their license after a license is invalid for more than one year.

The bill also removes the exemption from having to complete additional training hours for private
investigative intern renewal applicants with active licenses, who were licensed on or before August 31,
2008.

25
S. 493.6203(6)(b), F.S.
26 Id.
21 Id.
2s Id.
29 Id.
30
S. 493.6203(6)(c), F.S.
STORAGE NAME: h1353.BPS.DOCX PAGE: 9
DATE: 1/31/2020
Private Security Services

Current Situation

An initial applicant for a Class "D" Security Officer license is required to submit proof of successful
completion of a minimum of 40 hours of professional training at a school or training facility licensed by
DACS. DACS must establish by rule the general content and number of hours of each subject area to
be taught. Upon reapplication for a license, an individual whose license has been expired for one year
or more is considered an initial applicant and must comply with the initial applicant training
requirements. 31

Proposed Changes

The bill requires Class "D" Security Officer license applicants to "successfully complete" instead of
"submit proof of successful completion" of the required training within three years after date of receipt of
the application. The bill also requires that, upon successful completion of the training, the schools or
training facilities must submit results directly to DACS electronically in a manner prescribed by DACS
rule, and provide a copy to the trainee.

The bill also authorizes the training of applicants for initial Class "D" Security Officer licensure to be
conducted in-person or online, as provided by DACS rule. All approved online training must be
conducted through a secure website of the school or training facility, provided that the applicant's
identity, attendance, and successful completion of such training are verified.

The bill requires DACS to adopt by rule what portion of the 40 hours of training may be conducted
online, the method of delivery and security protocols for online training, and any other rules necessary
for the regulation of schools providing in-person or online training.

The bill also removes the requirement that applicants complete the full training and examination in
order to reinstate their license after a license is invalid for more than one year.

Security Officer School or Training Facility

Current Situation

An application for a Class "D" Security Officer license must be signed and verified by the applicant
under oath as provided ins. 92.525, F.S., which authorizes verification of documents in the following
three ways:
• Under oath or affirmation taken or administered before a judge, clerks or deputy clerk of court,
or any notary public;
• Under oath or affirmation taken or administered by law enforcement officer, correctional officer,
or traffic officer under electronic means or in the physical presence of the affiant; or
• Signing a written declaration. 32

However, since the law specifies that applications must be verified "under oath," this does not allow for
electronic verification of applications.

The application for a Class "D" Security Officer license must contain, at a minimum, the following
information:
• The name and address of the school or training facility and, if the applicant is an individual, her
or his name, address, and social security or alien registration number;

31
S. 493.6303(4), F.S.
32
S. 493.6304, F.S.
STORAGE NAME: h1353.BPS.D0CX PAGE: 10
DATE: 1/31/2020
• The street address of the place at which the training is to be conducted; and
• A copy of the training curriculum and final examination to be administered. 33

Proposed Changes

The bill:
• Requires security officer school, training facility, or instructor license applicants to provide a
website in their application, if applicable; and
• Removes the restriction that such applicants verify their application "under oath" as provided in
s. 92.525, F.S., and simply requires verification "by the applicant as provided ins. 92.525, F.S.,"
which would allow for electronic verification of the application.

Recovery Agent and Recovery Agent Interns

Current Situation

Currently, an applicant for a Class "E" Recovery agent or a Class "EE" Recovery Agent Intern license is
required to submit proof of successful completion of 40 hours of professional training at a school or
training facility licensed by DACS. DACS is required to establish by rule the general content for the
training. 34

Proposed Changes

The bill requires initial license applicants for Class "E" Recovery Agent or Class "EE" Recovery Agent
Intern licenses to "successfully complete" instead of "submit proof of successful completion" of the
required training within three years after date of receipt of the application. In addition, the bill requires
that upon completion of the training, the schools or training facilities must submit the results directly to
DACS electronically in a manner prescribed by rule, and provide a copy to the trainee.

Recovery Agent School or Training Facility

Current Situation

An application to license a school, training facility, or instructor that offers the training for Class "E"
Recovery Agent or Class "EE" Recovery Agent Intern applicants must be signed and verified by the
applicant under oath as provided ins. 92.525, F.S., which authorizes verification of documents in the
following three ways:
• Under oath or affirmation taken or administered before a judge, clerks or deputy clerk of court,
or any notary public;
• Under oath or affirmation taken or administered by law enforcement officer, correctional officer,
or traffic officer under electronic means or in the physical presence of the affiant; or
• Signing a written declaration. 35

However, since the law specifies that the applications must be verified "under oath," the law does not
allow for electronic verification of applications.

Proposed Changes

The bill removes the restriction that the school, training facility, or instructor, that offers the training for
Class "E" Recovery Agent or Class "EE" Recovery Agent Intern applicants, verify their application

33 Id.
34
S. 493.6402(2), F.S.
35
S. 493.6406, F.S.
STORAGE NAME: h1353.BPS.D0CX PAGE: 11
DATE: 1/31/2020
"under oath" as provided ins. 92.525, F.S., and simply requires verification "by the applicant as
provided ins. 92.525, F.S." This will allow for electronic verification of the application.

8. SECTION DIRECTORY:
Section 1 Amends s. 493.6105, F.S., relating to initial application for license.

Section 2 Amends s. 493.6106, F.S., relating to license requirements; posting.

Section 3 Amends s. 493.6108, F.S., relating to investigation of applicants by DACS.

Section 4 Amends s. 493.6109, F.S., relating to reciprocity.

Section 5 Amends s. 493.6111, F.S., relating to license; contents; identification card.

Section 6 Amends s. 493.6112, F.S., relating to notification of change in employment or
termination.

Section 7 Amends s. 493.6113, F.S., relating to renewal application for licensure.

Section 8 Amends s. 493.6115, F.S., relating to weapons and firearms.

Section 9 Amends s. 493.6123, F.S., relating to the industry newsletter and pamphlets.

Section 10 Amends s. 493.6203, F.S., relating to license requirements.

Section 11 Amends s. 493.6303, F.S., relating to license requirements.

Section 12 Amends s. 493.6304, F.S., relating to security officer school or training facility.

Section 13 Amends s. 493.6403, F.S., relating to license requirements.

Section 14 Amends s. 493.6406, F.S., relating to recovery agent school or training facility.

Section 15 Provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
Allowing relevant military background to count towards firearm training requirements of Class "K"
firearms instructor license applicants may increase the application rate and related license fees
received by DACS. It is unknown how many applicants will qualify. The fiscal impact is
indeterminate.

2. Expenditures:
Removing the requirement that DACS provide arrest information to industry businesses, and
authorizing DACS to publish the industry newsletter and pamphlet online instead of in paper format,
may reduce the cost to DACS for providing such materials. The fiscal impact is indeterminate.

Authorizing DACS to issue license cards in digital format for private investigative, security, or
recovery services licenses may reduce the cost to DACS for creating physical license cards. It is

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unknown how many licensed employees will choose to use a digital license. The fiscal impact is
indeterminate. There are currently 183,415 licensed individuals and businesses in the industry.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Removing the requirement for private investigative, security, or recovery service businesses to notify
DACS of a termination of employment will reduce related costs to these businesses. It is unknown how
many changes in employment may occur. The fiscal impact is indeterminate.

Increasing eligibility for the firearms training waiver for Class "G" Statewide Firearm license renewal
applicants will streamline the license renewal process, and likely have a positive fiscal impact on these
individuals. It is unknown how many applicants will qualify. The fiscal impact is indeterminate.

Allowing Class "K" Firearms Instructor license renewals to submit proof of having taught at least six 28-
hour firearms instruction courses to Class "G" Statewide Firearm applicants during the previous three-
year licensure period will streamline the license renewal process and likely have a positive fiscal impact
on these individuals. It is unknown how many applicants will qualify. The fiscal impact is indeterminate.

Allowing DACS to use discretion when determining the late fee for private investigative, security, or
recovery services license renewal applications will have a positive fiscal impact on the private sector.
The fiscal impact is indeterminate.

Requiring the training entities to submit proof of the trainees' successful completion of the training to
DACS will increase expenditures to the training entities. The bill applies this change to the following
entities:
• Class "K" Firearms Instructors;
• Schools, community colleges, colleges, or universities; and
• Training facilities.

Allowing Class "D" Security Officer training to be conducted online will likely reduce expenditures to
these individuals since they are currently required to provide training in person, and increase revenue
to the businesses that provide online training. It is unknown how many applicants will choose to
participate in online training. The fiscal impact is indeterminate.

Removing the requirement that out-of-state applicants for private investigative, private security and
recovery services licensure must have "engaged in licensed activities for at least one year'' in the other
state or territory, during a declared state of emergency, will streamline the application process and
make it easier to provide temporary private investigative, private security and recovery services during
a state of emergency, thereby increasing related revenues to these businesses. The fiscal impact is
indeterminate.

D. FISCAL COMMENTS:
None.

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Ill. COMMENTS

A CONSTITUTIONAL ISSUES:

1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill requires DACS to adopt by rule the following:
• The portion of the Class "D" Security Officer training that may be conducted online;
• The manner in which Class "G" Statewide Firearm license applicants must complete their
training, and the manner in which the Class "K" Firearms Instructor must submit the training
results to DACS;
• The manner in which Class "CC" Private Investigative Intern license applicants must complete
their training, and the manner in which the school, community college, college, or university
must submit the training results to DACS;
• The manner in which Class "D" Security Officer license applicants must complete their training,
and the manner in which the school, or training facility must submit the training results to DACS;
and
• The manner in which Class "E" Recovery Agent or Class "EE" Recovery Agent Intern license
applicants must complete their training, and the manner in which the school, or training facility
must submit the training results to DACS.

There appears to be sufficient rulemaking authority in the bill and current law.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

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FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1353 2020

1 A bill to be entitled
2 An act relating to private security services; amending
3 s. 493.6105, F.S.; requiring an applicant for a Class
4 "K" firearms instructor license to submit a certain
5 United States Department of Defense form issued within
6 a specified time period before submission of the
7 application; amending s. 493.6106, F.S.; authorizing
8 the Department of Law Enforcement to provide criminal
9 background check results to the Department of
10 Agriculture and Consumer Services to determine
11 eligibility for a Class "G" license or a Class "K"
12 license; amending s. 493.6108, F.S.; deleting a
13 provision requiring the department to provide certain
14 information to an agency that employs a licensee;
15 amending s. 493.6109, F.S.; providing an exception to
16 a certain experience requirement for an applicant
17 during a declared state of emergency; amending s.
18 493.6111, F.S.; authorizing the department to issue a
19 single license card authorizing multiple classes of
20 licensure and to issue such license card or an
21 electronic license in a digital format; authorizing a
22 licensee to carry a digital image of his or her
23 license card in lieu of a physical card; amending s.
24 493.6112, F.S.; requiring each agency to report a
25 termination of employment for certain violations;

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HB 1353 2020

26 amending s. 493.6113, F.S.; revising renewal
27 application requirements for Class "G" and Class "K"
28 licensees; requiring the department to establish by
29 rule the amount of a renewal application late fee;
30 amending s. 493.6115, F.S.; authorizing the department
31 to issue a temporary Class "G" license if the
32 applicant has been issued and currently holds
33 specified licenses; amending s. 493.6123, F.S.;
34 authorizing the department to publish certain
35 information online; amending ss. 493.6203 and
36 493.6303, F.S.; revising and providing training
37 requirements for an applicant for a Class "CC" or an
38 initial Class "D" license; deleting provisions
39 relating to renewal requirements; amending s.
40 493.6304, F.S.; revising application requirements for
41 any school, training facility, or instructor who
42 offers training for a Class "D" license; amending s.
43 493.6403, F.S.; revising training requirements for an
44 applicant for an initial Class "E" or a Class "EE"
45 license; amending s. 493.6406, F.S.; deleting the
46 requirement that the licensure application be signed
47 under oath for any school, training facility, or
48 instructor who offers training for Class "E" or Class
49 "EE" applicants; providing an effective date.
50

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51 Be It Enacted by the Legislature of the State of Florida:
52
53 Section 1. Subsections (2) and (5) and paragraph (a) of
54 subsection (6) of section 493.6105, Florida Statutes, are
55 amended to read:
56 493.6105 Initial application for license.-
57 (2) Each application s h a l l ~ be signed and verified by
58 the applicant individual under oath as provided ins. 92.525.
59 (5) In addition to the requirements outlined in subsection
60 (3), an applicant for a Class "G" license must satisfy minimum
61 training criteria for firearms established by rule of the
62 department, which training criteria includes, but is not limited
63 to, 28 hours of range and classroom training taught and
64 administered by a licensed Class "K" firearms instructor
65 licensee; however, no more than 8 hours of such training shall
66 consist of range training. The department may waive the
67 foregoing firearms training requirement if:
68 (a) The applicant provides proof that he or she is
69 currently certified as a law enforcement officer or correctional
70 officer pursuant to the requirements of the Criminal Justice
71 Standards and Training Commission or has successfully completed
72 the training required for certification within the last 12
73 months.
74 (b) The applicant provides proof that he or she is
75 currently certified as a federal law enforcement officer and has

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76 received law enforcement firearms training administered by a
77 federal law enforcement agency.
78 (c) The applicant submits a valid firearm certificate
79 among those specified in paragraph (6) (a).
80 (6) In addition to the requirements under subsection (3),
81 an applicant for a Class "K" license must:
82 (a) Submit one of the following:
83 1. The Florida Criminal Justice Standards and Training
84 Commission Instructor Certificate and written confirmation by
85 the commission that the applicant possesses an active firearms
86 certification.
87 2. A valid National Rifle Association Private Security
88 Firearm Instructor Certificate issued not more than 3 years
89 before the submission of the applicant's Class "K" application.
90 3. A valid firearms instructor certificate issued by a
91 federal law enforcement agency issued not more than 3 years
92 before the submission of the applicant's Class "K" application.
93 4. A valid DD Form 214 as issued by the United States
94 Department of Defense not more than 3 years before the
95 submission of the applicant's Class "K'' application, indicating
96 that the applicant has been honorably discharged and served at
97 least 3 years in the military as a firearms instructor.
98 Section 2. Paragraph (g) of subsection (1) of section
99 493.6106, Florida Statutes, is amended to read:
100 493.6106 License requirements; posting.-

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101 (1) Each individual licensed by the department must:
102 (g} Not be prohibited from purchasing or possessing a
103 firearm by state or federal law if the individual is applying
104 for a Class "G" license or a Class "K" license. The Department
105 of Law Enforcement is authorized to provide results from the
106 National Instant Criminal Background Check System and Index to
107 the department to determine eligibility for a Class "G" license
108 or a Class "K" license to the extent allowed under federal law.
109 Section 3. Subsection (5) of section 493.6108, Florida
110 Statutes, is amended to read:
111 493.6108 Investigation of applicants by Department of
112 Agriculture and Consumer Services.-
113 (5) A person licensed under this chapter must notify his
114 or her employer within 3 calendar days if he or she is arrested
115 for any offense. If the department receives information about an
116 arrest within the state of a person who holds a valid license
117 issued under this chapter for a crime that could potentially
118 disqualify the person from holding such a license, the
119 department must provide the arrest information to the agency
12 0 that employs the licensee.
121 Section 4. Paragraph (b) of subsection (2) of section
122 493.6109, Florida Statutes, is amended to read:
123 493.6109 Reciprocity.-
124 (2) The rules authorized in subsection (1) may be
125 promulgated only if:

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126 (b) The applicant has engaged in licensed activities for
127 at least 1 year in the other state or territory with no
128 disciplinary action against him or her; however, during a
129 declared state of emergency, the requirement that an applicant
130 be licensed for at least 1 year may be waived.
131 Section 5. Subsection (1) of section 493.6111, Florida
132 Statutes, is amended to read:
133 493.6111 License; contents; identification card.-
134 (1) All licenses issued pursuant to this chapter shall be
135 on a form prescribed by the department and shall include the
136 licensee's name, license number, expiration date of the license,
137 and any other information the department deems necessary. The
138 department may issue a single license card authorizing multiple
139 classes of licensure and may issue such license card or an
140 electronic license in a digital format containing a quick-
141 response barcode identifying the individual licensure class.
142 Class "C," Class "CC," Class "D," Class "E," Class "EE," Class
143 "M," Class "MA," Class "MB," Class "MR," and Class "G" licenses
144 shall be in the possession of individual licensees while on
145 duty. A licensee may carry a digital image of his or her license
146 card on his or her person in lieu of a physical card.
147 Section 6. Subsection (2) of section 493.6112, Florida
148 Statutes, is amended to read:
149 493.6112 Notification to Department of Agriculture and
150 Consumer Services of changes of partner or officer or

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151 employees.-
152 (2) Each agency shall, upon the efflployffient or termination
153 of employment of a licensee for a violation of this chapter,
154 report such efflployment or termination within 15 calendar days to
155 the department and, in the case of a terfflination, report the
156 reason or reasons therefor. The report shall be submitted
157 electronically in a manner prescribed by the department.
158 Section 7. Paragraphs (b) and (d) of subsection (3) and
159 subsection (4) of section 493.6113, Florida Statutes, are
160 amended to read:
161 493.6113 Renewal application for licensure.-
162 (3) Each licensee is responsible for renewing his or her
163 license on or before its expiration by filing with the
164 department an application for renewal accompanied by payment of
165 the renewal fee and the fingerprint retention fee to cover the
166 cost of ongoing retention in the statewide automated biometric
167 identification system established in s. 943. 05 (2) (b) . Upon the
168 first renewal of a license issued under this chapter before
169 January 1, 2017, the licensee shall submit a full set of
170 fingerprints and fingerprint processing fees to cover the cost
171 of entering the fingerprints into the statewide automated
172 biometric identification system pursuant to s. 493.6108(4) (a)
173 and the cost of enrollment in the Federal Bureau of
174 Investigation's national retained print arrest notification
175 program. Subsequent renewals may be completed without submission

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176 of a new set of fingerprints.
177 (b) Each Class "G" licensee shall additionally complete
178 submit proof that he or she has reeeived during each year of the
179 license period a minimum of 4 hours of firearms requalification
180 training taught by a Class "K" licensee and submit proof that he
181 or she has complied with such other health and training
182 requirements that the department shall adopt by rule. Proof of
183 completion of firearms requalification training by each student
184 shall be submitted electronically to the department by the Class
185 "K" firearms instructor upon completion of the training in a
186 manner prescribed by rule of the department. A Class "G"
187 licensee must successfully complete this requalification
188 training for each type and caliber of firearm carried in the
189 course of performing his or her regulated duties. If the
190 licensee fails to complete the required 4 hours of annual
191 training during the first year of the 2-year term of the
192 license, the license shall be automatically suspended. The
193 licensee must complete the minimum number of hours of range and
194 classroom training required at the time of initial licensure and
195 submit proof of completion of such training to the department
196 before the license may be reinstated. If the licensee fails to
197 complete the required 4 hours of annual training during the
198 second year of the 2-year term of the license, the licensee must
199 complete the minimum number of hours of range and classroom
200 training required at the time of initial licensure and submit

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201 proof of completion of such training to the department before
202 the license may be renewed. The department may waive the
203 firearms training requirement if:
204 1. The applicant provides proof that he or she is
205 currently certified as a law enforcement officer or correctional
206 officer under the Criminal Justice Standards and Training
207 Commission and has completed law enforcement firearms
208 requalification training annually during the previous 2 years of
209 the licensure period;
210 2. The applicant provides proof that he or she is
211 currently certified as a federal law enforcement officer and has
212 received law enforcement firearms training administered by a
213 federal law enforcement agency annually during the previous 2
214 years of the licensure period; e-r
215 3. The applicant holds a valid Class "K" license and
216 submits a valid firearm certificate among those specified ins.
217 4 93. 6105 ( 6) (a) ; or and provides proof of having coFA.pleted
218 requalification training during the previous 2 years of the
219 licensure period
220 4. The applicant provides proof that he or she has
221 completed annual firearms training in accordance with the
222 requirements of the federal Law Enforcement Officers' Safety
223 Act, 18 U.S.C. ss. 926B and 926C.
224 (d) Each Class "K" licensee shall additionally submit_:_
225 1. One of the certificates specified under s. 493.6105(6)

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226 as proof that he or she remains certified to provide firearms
227 instruction; or
228 2. Proof of having taught at least six 28-hour firearms
229 instruction courses to Class ''G" applicants during the previous
230 3-year licensure period.
231 (4) A licensee who fails to file a renewal application on

232 or before its expiration must renew his or her license by
233 fulfilling the applicable requirements of subsection (3) and may
234 be required to pay by paying a late fee which shall not exceed
235 equal to the amount of the license fee. The department shall
236 establish by rule the amount of the late fee.
237 Section 8. Paragraph (f) is added to subsection (12) of
238 section 493.6115, Florida Statutes, to read:
239 493.6115 Weapons and firearms.-
240 (12) The department may issue a temporary Class "G"
241 license, on a case-by-case basis, if:
242 (f) The applicant has been issued and currently holds a
243 valid Class "C," Class "CC," Class "D," Class "M," Class "MA,"
244 or Class "MB" license.
245 Section 9. Subsection (3) is added to section 493.6123,
246 Florida Statutes, to read:
247 493.6123 Publication to industry.-
248 (3) The department, at its discretion, may publish all
249 information required by this section online in lieu of paper
250 format.

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251 Section 10. Paragraphs (b) and (c) of subsection (6) of
252 section 493.6203, Florida Statutes, is amended to read:
253 493.6203 License requirements.-In addition to the license
254 requirements set forth elsewhere in this chapter, each
255 individual or agency shall comply with the following additional
256 requirements:
257 ( 6)

258 (b) Before submission of an application to the department,
259 the applicant for a Class "CC" license must have completed a
260 minimum of 40 hours of professional training pertaining to
261 general investigative techniques and this chapter, which course
262 is offered by a state university or by a school, community
263 college, college, or university under the purview of the
264 Department of Education, and the applicant must pass an
265 examination. Training must have been completed within 3 years
266 after the date of receipt of the application. The certificate
267 evidencing satisfactory completion of the 40 hours of
268 professional training must be submitted to the department by the
269 school, community college, college, or university with the
270 application for a Class "CC" license. The training specified in
271 this paragraph may be provided by face-to-face presentation,
272 online technology, or a home study course in accordance with
273 rules and procedures of the Department of Education. The
274 administrator of the examination must verify the identity of
275 each applicant taking the examination.

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276 1. Upon an applicant's successful completion of each part
277 of the approved training and passage of any required
278 examination, the school, community college, college, or
279 university shall issue a certificate of completion to the
280 applicant. The certificates must be on a form established by
281 rule of the department.
282 2. The department shall establish by rule the general
283 content of the professional training and the examination
284 criteria.
285 3. If the license of an applicant for relicensure is
286 invalid for more than 1 year, the applicant must complete the
287 required training and pass any required e1wmination.
288 (c) An individual licensed on or before August 31, 2008,
289 is not required to complete additional training hours in order
290 to rene\1 an active license beyond the total required hours, and
291 the timeframe for completion in effect at the time he or she was
292 licensed applies.
293 Section 11. Subsection (4) of section 493.6303, Florida
294 Statutes, is amended to read:
295 493.6303 License requirements.-In addition to the license
296 requirements set forth elsewhere in this chapter, each
297 individual or agency must comply with the following additional
298 requirements:
299 (4) (a) An applicant for an initial -a- Class "D" license
300 must successfully complete submit proof of successful completion

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301 e-f. a minimum of 40 hours of professional training at a school or

302 training facility licensed by the department within 3 years
303 after the date of receipt of the application. The department
304 shall by rule establish the general content and number of hours
305 of each subject area to be taught. Upon completion of such
306 training, the school or training facility shall submit the
307 results directly to the department electronically in a manner
308 prescribed by rule of the department. The school or training
309 facility shall also provide a copy of the training results to
310 the trainee.
311 (b) The training required in paragraph (a) may be
312 conducted by in-person or online instruction, or a combination
313 thereof, as provided by the department in rule. All approved
314 online training shall be conducted through a secure website of
315 the school or training facility, provided that the applicant's
316 identity, attendance, and successful completion of such training
317 are verified. The department shall adopt by rule what portion of
318 the 40 hours of training may be conducted online, any method of
319 delivery and security protocols for online training, and any
320 other rules necessary for the regulation of schools providing
321 in-person or online training Upon reapplication for a license,
322 an individual whose license has been mcpired for 1 year or more
323 is considered an initial applicant and must submit proof of
324 successful completion of 40 hours of professional training at a
325 school or training facility licensed by the department as

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326 provided in paragraph (a) before a license is issued.
327 Section 12. Subsection (2) of section 493.6304, Florida
328 Statutes, is amended to read:
329 493.6304 Security officer school or training facility.-
330 (2) The application shall be signed and verified by the
331 applicant under oath as provided ins. 92.525 and must contain,
332 at a minimum, the following information:
333 (a) The name and address of the school or training
334 facility and, if the applicant is an individual, her or his
335 name, address, and social security or alien registration number.
336 (b) The street address and, if applicable, the website
337 address of the place at which the training is to be conducted.
338 (c) A copy of the training curriculum and final
339 examination to be administered.
340 Section 13. Subsection (2) of section 493.6403, Florida
341 Statutes, is amended to read:
342 493.6403 License requirements.-
343 (2) An applicant for an initial a Class "E" or a Class
344 "EE" license must successfully complete submit proof of
345 successful completion of 40 hours of professional training at a
346 school or training facility licensed by the department within 3
347 years after the date of receipt of the application. The
348 department shall by rule establish the general content for the
349 training. Upon completion of such training, the school or
350 training facility shall submit the results directly to the

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351 department electronically in a manner prescribed by rule of the
352 department. The school or training facility shall also provide a
353 copy of the training results to the trainee.
354 Section 14. Subsection (2) of section 493.6406, Florida
355 Statutes, is amended to read:
356 493.6406 Recovery agent school or training facility.-
357 (2) The application must be signed and verified by the
358 applicant under oath as provided ins. 92.525 and shall contain,
359 at a minimum, the following information:
360 (a) The name and address of the school or training
361 facility and, if the applicant is an individual, his or her
362 name, address, and social security or alien registration number.
363 (b) The street address of the place at which the training
364 is to be conducted or the street address of the Class "RS"
365 school offering Internet-based or correspondence training.
366 (c) A copy of the training curriculum and final
367 examination to be administered.
368 Section 15. This act shall take effect July 1, 2020.

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HB 1353 by Rep. Polsky
Private Security Services

AMENDMENT SUMMARY
February 4, 2020

Amendment 1 by Rep. Polsky (strike-all): The strike-all leaves the bill largely intact and does
the following:
• Applies provisions uniformly to all license types in the chapter related to applications and
submitting proof of training requirements;
• Clarifies provisions and makes conforming, grammatical and technical changes; and
• Authorizes armed Class "D" Security Officer licensees to be employed by a church,
ecclesiastical or denominational organization, or church cemetery without the need to be
employed by a security agency.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1353 (2020)
Amendment No. 1

COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/0 OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)

OTHER

1 Committee/Subcommittee hearing bill: Business & Professions
2 Subcommittee
3 Representative Polsky offered the following:
4
5 Amendment (with title amendment)
6 Remove everything after the enacting clause and insert:
7 Section 1. Subsections (2) and (5) and paragraph (a) of
8 subsection (6) of section 493.6105, Florida Statutes, are
9 amended to read:
10 493.6105 Initial application for license.-
11 (2) Each application s h a l l ~ be signed and verified by
12 the applicant individual under oath as provided ins. 92.525.
13 (5) In addition to the requirements outlined in subsection
14 (3), an applicant for a Class "G" license must satisfy minimum
15 training criteria for firearms established by rule of the
16 department, which training criteria includes, but is not limited
006913 - h1353-strike.docx
Published On: 2/3/2020 5:30:28 PM
Page 1 of 18
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1353 (2020)
Amendment No. 1

17 to, 28 hours of range and classroom training taught and
18 administered by a licensed Class "K" firearms instructor
19 licensee; however, no more than 8 hours of such training shall
20 consist of range training. Upon completion of such training, the
21 licensed Class "K'' firearms instructor must submit proof of
22 completion of training for each applicant to the department
23 electronically in a manner prescribed by the department. The
24 instructor must also provide a copy of the training results to
25 the applicant who completed the training. The department may
26 waive the foregoing firearms training requirement if:
27 (a) The applicant provides proof that he or she is
28 currently certified as a law enforcement officer or correctional
29 officer pursuant to the requirements of the Criminal Justice
30 Standards and Training Commission or has successfully completed
31 the training required for certification within the last 12
32 months.
33 (b) The applicant provides proof that he or she is
34 currently certified as a federal law enforcement officer and has
35 received law enforcement firearms training administered by a
36 federal law enforcement agency.
37 (c) The applicant holds a valid Class "K" license and
38 submits a valid firearm certificate among those specified in
39 paragraph (6) (a).
40 (d) The applicant provides proof that he or she has
41 completed annual firearms training in accordance with the

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42 requirements of the federal Law Enforcement Officers Safety Act,
43 18 U.S.C. ss. 926B and 926C.
44 (6) In addition to the requirements under subsection (3),
45 an applicant for a Class "K" license must:
46 (a) Submit one of the following:
47 1. The Florida Criminal Justice Standards and Training
48 Commission Instructor Certificate and written confirmation by
49 the commission that the applicant possesses an active firearms
50 certification.
51 2. A valid National Rifle Association Private Security
52 Firearm Instructor Certificate issued not more than 3 years
53 before the submission of the applicant's Class "K" application.
54 3. A valid firearms instructor certificate issued by a
55 federal law enforcement agency issued not more than 3 years
56 before the submission of the applicant's Class "K" application.
57 4. A valid DD Form 214 as issued by the United States
58 Department of Defense not more than 3 years before the
59 submission of the applicant's Class "K" application, indicating
60 that the applicant has been honorably discharged and served in
61 the military as a firearms instructor.
62 Section 2. Paragraph (g) of subsection (1) of section
63 493.6106, Florida Statutes, is amended to read:
64 493.6106 License requirements; posting.-
65 (1) Each individual licensed by the department must:

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66 (g) Not be prohibited from purchasing or possessing a
67 firearm by state or federal law if the individual is applying
68 for a Class "G" license or a Class "K" license. The Department
69 of Law Enforcement is authorized to provide results from the
70 National Instant Criminal Background Check System and Index to
71 the department to determine eligibility for Class ''G" licenses
72 or Class "K" licenses to the extent allowed under federal law.
73 Section 3. Subsection (5) of section 493.6108, Florida
74 Statutes, is amended to read:
75 493.6108 Investigation of applicants by Department of
76 Agriculture and Consumer Services.-
77 (5) A person licensed under this chapter must notify his
78 or her employer within 3 calendar days if he or she is arrested
79 for any offense. If the departffient receives inforffiation about an
80 arrest within the state of a person who holds a valid license
81 issued under this chapter for a crime that could potentially
82 disqualify the person from holding such a license, the
83 department must provide the arrest information to the agency
84 that employs the licensee.
85 Section 4. Paragraph (b) of subsection (2) of section
86 493.6109, Florida Statutes, is amended to read:
87 493.6109 Reciprocity.-
88 (2) The rules authorized in subsection (1) may be
89 promulgated only if:

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90 (b) The applicant has engaged in licensed activities for
91 at least 1 year in the other state or territory with no
92 disciplinary action against him or her; however, during a
93 declared state of emergency, the requirement that an applicant
94 be licensed for at least 1 year may be waived.
95 Section 5. Subsection (1) of section 493.6111, Florida
96 Statutes, is amended to read:
97 493.6111 License; contents; identification card.-
98 (1) All licenses issued pursuant to this chapter shall be
99 on a form prescribed by the department and shall include the
100 licensee's name, license number, expiration date of the license,
101 and any other information the department deems necessary. The
102 department may issue a single license card that includes each
103 license obtained by the holder of the card. Such license card
104 may be issued as an electronic license in digital format that
105 contains a quick-response barcode identifying each individual
106 licensure class or may be issued as a physical license card.
107 Class "C," Class "CC," Class "D," Class "E," Class "EE," Class
108 "M," Class "MA," Class "MB," Class "MR," and Class "G" licenses
109 shall be in the possession of individual licensees while on
110 duty. A licensee may carry a digital image of his or her license
111 card on his or her person in lieu of a physical card.
112 Section 6. Subsection (2) of section 493.6112, Florida
113 Statutes, is amended to read:

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114 493.6112 Notification to Department of Agriculture and
115 Consumer Services of changes of partner or officer or
116 employees.-
117 (2) Each agency shall, upon the employment or termination
118 of employment of a licensee for a violation of this chapter,
119 report such employment or termination within 15 calendar days to
120 the department and, in the case of a termination, report the
121 reason or reasons therefor. The report shall be submitted
122 electronically in a manner prescribed by the department.
123 Section 7. Paragraphs (b) and (d) of subsection (3) and
124 subsection (4) of section 493.6113, Florida Statutes, are
125 amended to read:
126 493.6113 Renewal application for licensure.-
127 (3) Each licensee is responsible for renewing his or her
128 license on or before its expiration by filing with the
129 department an application for renewal accompanied by payment of
130 the renewal fee and the fingerprint retention fee to cover the
131 cost of ongoing retention in the statewide automated biometric
132 identification system established ins. 943.05(2) (b). Upon the
133 first renewal of a license issued under this chapter before
134 January 1, 2017, the licensee shall submit a full set of
135 fingerprints and fingerprint processing fees to cover the cost
136 of entering the fingerprints into the statewide automated
137 biometric identification system pursuant to s. 493.6108(4) (a)
138 and the cost of enrollment in the Federal Bureau of
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139 Investigation's national retained print arrest notification
140 program. Subsequent renewals may be completed without submission
141 of a new set of fingerprints.
142 (b) Each Class "G" licensee shall additionally complete
143 submit proof that he or she has received during each year of the
144 license period a minimum of 4 hours of firearms requalification
145 training taught by a Class "K" licensee and submit proof that he
146 or she has complied with such other health and training
147 requirements that the department shall adopt by rule. Proof of
148 completion of firearms requalification training by each student
14 9 shall be submitted electronically to the department by the Class
150 "K" firearms instructor upon completion of the training in a
151 manner prescribed by rule of the department. A Class "G"
152 licensee must successfully complete this requalification
153 training for each type and caliber of firearm carried in the
154 course of performing his or her regulated duties. If the
155 licensee fails to complete the required 4 hours of annual
156 training during the first year of the 2-year term of the
157 license, the license shall be automatically suspended. The
158 licensee must complete the minimum number of hours of range and
159 classroom training required at the time of initial licensure and
160 submit proof of completion of such training to the department
161 before the license may be reinstated. If the licensee fails to
162 complete the required 4 hours of annual training during the
163 second year of the 2-year term of the license, the licensee must

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164 complete the minimum number of hours of range and classroom
165 training required at the time of initial licensure and submit
166 proof of completion of such training to the department before
167 the license may be renewed. The department may waive the
168 firearms training requirement if:
169 1. The applicant provides proof that he or she is
170 currently certified as a law enforcement officer or correctional
171 officer under the Criminal Justice Standards and Training
172 Commission and has completed law enforcement firearms
173 requalification training annually during the previous 2 years of
174 the licensure period;
175 2. The applicant provides proof that he or she is
176 currently certified as a federal law enforcement officer and has
177 received law enforcement firearms training administered by a
178 federal law enforcement agency annually during the previous 2
179 years of the licensure period; e-r
180 3. The applicant holds a valid Class "K" license and
181 submits a valid firearm certificate among those specified ins.
182 493. 6105 (6) (a); or and provides proof of having completed
183 requalification training during the previous 2 years of the
184 licensure period
185 4. The applicant provides proof that he or she has
186 completed annual firearms training in accordance with the
187 requirements of the federal Law Enforcement Officers Safety Act,
188 18 U.S.C. ss. 926B and 926C.

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189 (d) Each Class "K" licensee shall additionally submit~
190 1. One of the certificates specified under s. 493.6105(6)
191 as proof that he or she remains certified to provide firearms
192 instruction; or
193 2. Proof of having taught at least six 28-hour firearms
194 instruction courses to Class ''G" applicants during the previous
195 3-year licensure period.
196 (4) A licensee who fails to file a renewal application on
197 or before its expiration must renew his or her license by
198 fulfilling the applicable requirements of subsection (3) and may
199 be required to pay by paying a late fee which shall not exceed
200 equal to the amount of the license fee. The department shall
201 establish by rule the amount of the late fee.
202 Section 8. Paragraph (f) is added to subsection (12) of
203 section 493.6115, Florida Statutes, to read:
204 493.6115 Weapons and firearms.-
205 (12) The department may issue a temporary Class "G"
206 license, on a case-by-case basis, if:
207 (f) The applicant has been issued and currently holds a
208 valid Class "C," Class "CC," Class "D," Class "M," Class "MA,"
209 or Class "MB" license.
210 Section 9. Subsection (3) is added to section 493.6123,
211 Florida Statutes, to read:
212 493.6123 Publication to industry.-

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Amendment No. 1

213 (3) The department, at its discretion, may publish all
214 information required by this section online in lieu of paper
215 format.
216 Section 10. Paragraphs (b) and (c) of subsection (6) of
217 section 493.6203, Florida Statutes, is amended to read:
218 493.6203 License requirements.-In addition to the license
219 requirements set forth elsewhere in this chapter, each
220 individual or agency shall comply with the following additional
221 requirements:
222 (6)

223 (b) Before submission of an application to the department,
224 the applicant for a Class "CC" license must have completed a
225 minimum of 40 hours of professional training pertaining to
226 general investigative techniques and this chapter, which course
227 is offered by a state university or by a school, community
228 college, college, or university under the purview of the
229 Department of Education, and the applicant must pass an
230 examination. Training must have been completed within 3 years
231 before the date of receipt of the application. The certificate
232 evidencing satisfactory completion of the 40 hours of
233 professional training must be submitted to the department by the
234 school, community college, college, or university with the
235 application for a Glass "CG" license. The training specified in
236 this paragraph may be provided by face-to-face presentation,
237 online technology, or a home study course in accordance with
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Amendment No. 1

238 rules and procedures of the Department of Education. The
239 administrator of the examination must verify the identity of
240 each applicant taking the examination.
241 1. Upon an applicant's successful completion of each part
242 of the approved training and passage of any required
243 examination, the school, community college, college, or
244 university shall issue a certificate of completion to the
245 applicant. The certificates must be on a form established by
246 rule of the department.
247 2. The department shall establish by rule the general
248 content of the professional training and the examination
249 criteria.
250 3. If the license of an applicant for relicensure is
251 invalid for more than 1 year, the applicant must complete the
252 required training and pass any required examination.
253 (c) An individual licensed on or before August 31, 2008,
254 is not required to complete additional training hours in order
255 to renew an active license beyond the total required hours, and
256 the timeframe for completion in effect at the time he or she was
257 licensed applies.
258 Section 11. Subsection (4) of section 493.6301, Florida
259 Statutes, is amended to read:
260 493.6301 Classes of licenses.-

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261 (4) A Class "D" licensee must shall own or be an employee
262 of a Class "B" security agency or branch office. However, this
263 subsection does not apply to include those individuals who~
264 ~ Are exempt under s. 493.6102(4) but Wfie- possess a
265 Class "D" license solely for the purpose of holding a Class "G"
266 license; or
267 (b) Carry a firearm in the course of their duties as a
268 security officer employed by a church or by an ecclesiastical or
269 a denominational organization that has an established physical
270 place of worship in this state at which nonprofit religious
271 services and activities are regularly conducted or by a church
272 cemetery to provide security on the property of the church,
273 organization, or cemetery.
274 Section 12. Subsection (4) of section 493.6303, Florida
275 Statutes, is amended to read:
276 493.6303 License requirements.-In addition to the license
277 requirements set forth elsewhere in this chapter, each
278 individual or agency must comply with the following additional
279 requirements:
280 ( 4) (a) An applicant for an initial -a Class "D" license
281 must successfully complete submit proof of successful completion
282 e.f. a minimum of 40 hours of professional training at a school or

283 training facility licensed by the department within 3 years
284 before the date of receipt of the application. The department
285 shall by rule establish the general content and number of hours
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286 of each subject area to be taught. Upon completion of such
287 training, the school or training facility shall submit the
288 results directly to the department electronically in a manner
289 prescribed by rule of the department. The school or training
290 facility shall also provide a copy of the training results to
291 the trainee.
292 (b) The training required in paragraph (a) may be
293 conducted by in-person or online instruction, or a combination
294 thereof, as provided by the department in rule. All approved
295 online training shall be conducted through a secure website of
296 the school or training facility, provided that the applicant's
297 identity, attendance, and successful completion of such training
298 are verified. The department shall adopt by rule what portion of
299 the 40 hours of training may be conducted online, any method of
300 delivery and security protocols for online training, and any
301 other rules necessary for the regulation of schools providing
302 in-person or online training Upon reapplication for a license,
303 an individual whose license has been expired for 1 year or ffiore
304 is considered an initial applicant and ffiust subffiit proof of
305 successful coffipletion of 40 hours of professional training at a
306 school or training facility licensed by the departffient as
307 provided in paragraph (a) before a license is issued.
308 Section 13. Subsection (2) of section 493.6304, Florida
309 Statutes, is amended to read:
310 493.6304 Security officer school or training facility.-
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311 (2) The application shall be signed and verified by the
312 applicant under oath as provided ins. 92.525 and must contain,
313 at a minimum, the following information:
314 (a) The name and address of the school or training
315 facility and, if the applicant is an individual, her or his
316 name, address, and social security or alien registration number.
317 (b) The street address and, if applicable, the website
318 address of the place at which the training is to be conducted.
319 (c) A copy of the training curriculum and final
320 examination to be administered.
321 Section 14. Subsection (2) of section 493.6403, Florida
322 Statutes, is amended to read:
323 493.6403 License requirements.-
324 (2) An applicant for an initial a Class "E" or a Class
325 "EE" license must successfully complete submit proof of
326 successful completion of 40 hours of professional training at a
327 school or training facility licensed by the department within 3
328 years before the date of receipt of the application. The
329 department shall by rule establish the general content for the
330 training. Upon completion of such training, the school or
331 training facility shall submit the results directly to the
332 department electronically in a manner prescribed by rule of the
333 department. The school or training facility shall also provide a
334 copy of the training results to the trainee.

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335 Section 15. Subsection (2) of section 493.6406, Florida
336 Statutes, is amended to read:
337 493.6406 Recovery agent school or training facility.-
338 (2) The application must be signed and verified by the
339 applicant under oath as provided ins. 92.525 and shall contain,
340 at a minimum, the following information:
341 (a) The name and address of the school or training
342 facility and, if the applicant is an individual, his or her
343 name, address, and social security or alien registration number.
344 (b) The street address of the place at which the training
345 is to be conducted or the street address of the Class "RS"
346 school offering Internet-based or correspondence training.
347 (c) A copy of the training curriculum and final
348 examination to be administered.
349 Section 16. This act shall take effect July 1, 2020.
350
351
352 T I T L E A ME N D ME N T
353 Remove everything before the enacting clause and insert:
354 A bill to be entitled
355 An act relating to private security services; amending
356 s. 493.6105, F.s~; requiring a licensed Class "K"
357 firearms instructor to submit proof of completion of
358 specified training for certain applicants to the
359 Department of Agriculture and Consumer Services and
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360 provide a copy of the training results to the
361 applicant; authorizing the department to waive
362 specified firearms training under certain
363 circumstances; requiring an applicant for a Class "K"
364 firearms instructor license to submit a certain United
365 States Department of Defense form issued within a
366 specified time period before submission of the
367 application; amending s. 493.6106, F.S.; authorizing
368 the Department of Law Enforcement to provide criminal
369 background check results to the Department of
370 Agriculture and Consumer Services to determine
371 eligibility for a Class "G" license or a Class "K"
372 license; amending s. 493.6108, F.S.; deleting a
373 provision requiring the department to provide certain
374 information to an agency that employs a licensee;
375 amending s. 493.6109, F.S.; providing an exception to
376 a certain experience requirement for an applicant
377 during a declared state of emergency; amending s.
378 493.6111, F.S.; authorizing the department to issue a
379 single license card authorizing multiple classes of
380 licensure and to issue such license card or an
381 electronic license in a digital format; authorizing a
382 licensee to carry a digital image of his or her
383 license card in lieu of a physical card; amending s.
384 493.6112, F.S.; requiring each agency to report a
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Amendment No. 1

385 termination of employment for certain violations;
386 amending s. 493.6113, F.S.; revising renewal
387 application requirements for Class "G" and Class "K"
388 licensees; requiring the department to establish by
389 rule the amount of a renewal application late fee;
390 amending s. 493.6115, F.S.; authorizing the department
391 to issue a temporary Class "G" license if the
392 applicant has been issued and currently holds
393 specified licenses; amending s. 493.6123, F.S.;
394 authorizing the department to publish certain
395 information online; amending ss. 493.6203 and
396 493.6303, F.S.; revising and providing training
397 requirements for an applicant for a Class "CC" or an
398 initial Class ''D" license; deleting provisions
399 relating to renewal requirements; amending s.
400 493.6301, F.S.; specifying that certain ownership and
401 employment requirements do not apply to certain Class
402 "D" licensees; amending s. 493.6304, F.S.; revising
403 application requirements for any school, training
404 facility, or instructor who offers training for a
405 Class "D" license; amending s. 493.6403, F.S.;
406 revising training requirements for an applicant for an
407 initial Class "E" or a Class "EE" license; amending s.
408 493.6406, F.S.; deleting the requirement that the
409 licensure application be signed under oath for any
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410 school, training facility, or instructor who offers
411 training for Class "E" or Class "EE" applicants;
412 providing an effective date.

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