Insurance & Banking Subcommittee: Committee Meeting Notice, February 4, 2020
Summary
A meeting packet of the Insurance & Banking Subcommittee of the Florida House of Representatives Commerce Committee for February 4, 2020, 8:00 AM - 11:00 AM, with Byron Donalds as Chair. The committee meeting notice and agenda list PCS for HB 1391 Technology Innovation, HB 771 Motor Vehicle Insurance, HB 811 Transfers in Divorce, CS/HB 1039 Transportation Network Companies and further bills. A staff analysis of PCS for HB 1391 states that the bill abolishes the Division of State Technology and establishes the Florida Digital Service. It also states that the bill creates a Financial Technology Sandbox within the Office of Financial Regulation, with a sandbox period initially not longer than 24 months.
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Insurance & Banking
Subcommittee
Tuesday, February 4, 2020
8:00 am -11 :00 am
Sumner Hall (404 HOB)
Jose Oliva Byron Donalds
Speaker Chair
Committee Meeting Notice
HOUSE OF REPRESENTATIVES
Insurance & Banking Subcommittee
Start Date and Time: Tuesday, February 04, 2020 08:00 am
End Date and Time: Tuesday, February 04, 2020 11:00 am
Location: Sumner Hall (404 HOB)
Duration: 3.00 hrs
Consideration of the following bill(s) with proposed committee substitute(s):
PCS for HB 1391 -- Technology Innovation
Consideration of the following bill(s):
HB 771 Motor Vehicle Insurance by Grall
HB 811 Transfers in Divorce by Geller
CS/HB 1039 Transportation Network Companies by Transportation & Infrastructure Subcommittee, Rommel
HB 1205 Price Transparency in Health Care Services by Rodriguez, A.
HB 1357 Property Insurance by Trumbull
HB 1393 Pub. Rec./Financial Technology Sandbox by Grant, J.
HB 1395 Fees/Financial Technology Sandbox Applications by Sirois
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 Donalds, all Insurance & Banking 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 4:16PM by Harrell.Lindsey
Leagis ® Page 1 of 1
01/31/2020 4:16:23PM
The Florida House of Representatives
Commerce Committee
Insurance & Banking Subcommittee
Jose R. Oliva Byron Donalds
Speaker Chair
AGENDA
February 4, 2020
404 House Office Building
8:00 AM -11:00 AM
I. Call to Order & Roll Call
II. Consideration of the following bills:
A. PCS for HB 1391 Technology Innovation by Grant, J.
B. HB 771 Motor Vehicle Insurance by Grall
C. HB 811 Transfers in Divorce by Geller
D. CS/HB 1039 Transportation Network Companies by Rommel
E. HB 1205 Price Transparency in Health Care Services by Rodriquez, A.
F. HB 1357 Property Insurance by Trumbull
G. HB 1393 Pub. Rec./Financial Technology Sandbox by Grant, J.
H. HB 1395 Fees/Financial Technology Sandbox Applications by Sirois
Ill. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, Florida 32399-1300
(850) 717-4871 Fax: (850) 413-0419
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: PCS for HB 1391 Technology Innovation
SPONSOR(S): Insurance & Banking Subcommittee
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
Orig. Comm.: Insurance & Banking Subcommittee Hinshelwoo oope~
SUMMARY ANALYSIS
The Department of Management Services (DMS) oversees information technology governance and security for
the executive branch of state government. The Division of State Technology (DST), a subdivision of OMS
subject to its control and supervision, implements DMS's duties and policies in this area. The bill:
• Abolishes DST and establishes the Florida Digital Service (FDS) in its place.
• Places new duties and responsibilities under the newly-created FDS and expands the duties and
responsibilities currently assigned to OMS and DST.
• Tasks FDS with procuring a credential service provider for the purpose of creating digital driver licenses
or identification cards.
• Creates the Enterprise Architecture Advisory Council as a 13-member advisory council within OMS.
• Creates the Division of Telecommunications within OMS, removes DST as the head of the E911
system in Florida, and places the Division of Telecommunications as its new head.
The Office of Financial Regulation (OFR) regulates money services businesses, which include money
transmitters and payment instrument sellers. The bill creates the Financial Technology Sandbox within the
OFR to allow a person to make an innovative financial product or service available to consumers as a money
transmitter or payment instrument seller during a sandbox period that is initially not longer than 24 months but
which can be extended one time for up to 12 months. The sandbox provides regulatory flexibility by permitting
the OFR to waive specified statutes and corresponding rule requirements. The OFR may initially authorize a
sandbox participant to provide the product or service to a maximum of 15,000 consumers but may authorize up
to 25,000 consumers if the sandbox participant demonstrates adequate financial capitalization, risk
management process, and management oversight. In addition to other statutes that the OFR may waive, the
OFR may modify the net worth, corporate surety bond, and collateral deposit amounts required for money
transmitters and payment instrument sellers. The modified amounts must be in such lower amounts that the
OFR determines to be commensurate with specified considerations regarding the sandbox application and
commensurate with the maximum number of consumers authorized to receive the product or service under the
sandbox.
The bill has no fiscal impact on local governments and an indeterminate fiscal impact on state government and
the private sector.
The bill provides an effective date of January 1, 2021.
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
Department of Management Services (OMS)
Information Technology (IT) Management
DMS 1 oversees IT2 governance and security for the executive branch of state government. The Division
of State Technology (DST), a subdivision of OMS subject to its control and supervision, implements
DMS's duties and policies in this area. 3 The head of DST is appointed by the Secretary of
Management Services4 and serves as the state chief information officer (CI0). 5 The CIO must be a
proven effective administrator with at least 10 years of executive level experience in the public or
private sector. 6 DST "provides the State with guidance and strategic direction on a variety of
transformational technologies, such as cybersecurity and data analytics, while also providing the
following critical services: voice, data, software, and much more." 7 The duties and responsibilities of
OMS and DST include:
• Developing IT policy for the management of the state's IT resources;
• Establishing IT architecture standards and assisting state agencies 8 in complying with those
standards;
• Establishing project management and oversight standards with which state agencies must
comply when implementing IT projects. The standards must include:
o Performance measurements and metrics that reflect the status of an IT project based on
a defined and documented project scope, cost, and schedule;
o Methodologies for calculating acceptable variances in the projected versus actual scope,
schedule, or cost of an IT project; and
o Reporting requirements
• Performing project oversight of all state agency IT projects that have a total cost of $10 million
or more, as well as cabinet agency IT projects that have a total cost of $25 million or more, and
are funded in the General Appropriations Act or any other law;
• Recommending potential methods for standardizing data across state agencies which will
promote interoperability and reduce the collection of duplicative data;
• Recommending open data 9 technical standards and terminologies for use by state agencies;
• Establishing best practices for the procurement of IT products and cloud-computing services in
order to reduce costs, increase the quality of data center services, or improve government
services; and
1
Sees. 20.22, F.S.
2
The term "information technology" means equipment, hardware, software, firmware, programs, systems, networks, infrastructure,
media, and related material used to automatically, electronically, and wirelessly collect, receive, access, transmit, display, store, record,
retrieve, analyze, evaluate, process, classify, manipulate, manage, assimilate, control, communicate, exchange, convert, converge,
interface, switch, or disseminate information of any kind or form. S. 282.0041 (14), F.S.
3
S. 20.22(2)(a), F.S.
4
The Secretary of Management Services serves as the head of DMS and is appointed by the Governor, subject to confirmation by the
Senate. S. 20.22(1), F.S.
5
S. 20.22(2)(b), F.S.
6 /d.
7 State Technology, FLORIDA DEPARTMENT OF MANAGEMENT SERVICES ,
https://www.dms.myflorida.com/business_operations/state_technology (last visited Jan. 27, 2020).
8 Sees. 282.0041(27), F.S.
9
The term "open data" means data collected or created by a state agency and structured in a way that enables the data to be fully
discoverable and usable by the public. The term does not include data that are restricted from public distribution based on federal or
state privacy, confidentiality, and security laws and regulations or data for which a state agency is statutorily authorized to assess a fee
for its distribution. S. 282.0041 (18), F.S.
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• Establishing a policy for all IT-related state contracts, including state term contracts for IT
commodities, consultant services, and staff augmentation services. 10
State Data Center and the Cloud-First Policy
In 2008, the Legislature created the State Data Center (SOC) system, established two primary data
centers, 11 and required that agency data centers be consolidated into the primary data centers by
2019. 12 Data center consolidation was completed in FY 2013-14. In 2014, the two primary data centers
were merged in law to create the SOC within then-existing AST. 13 The SOC is established within OMS
and OMS is required to provide operational management and oversight of the SDC. 14
The SOC relies heavily on the use of state-owned equipment installed at the SOC facility located in the
state's Capital Circle Office Center in Tallahassee for the provision of data center services. The SOC is
led by the director of the SDC. 15 The SOC is required to do the following:
• Offer, develop, and support the services and applications defined in service-level agreements
executed with its customer entities; 16
• Maintain performance of the state data center by ensuring proper data backup, data backup
recovery, disaster recovery, and appropriate security, power, cooling, fire suppression, and
capacity;
• Develop and implement business continuity and disaster recovery plans, and annually conduct
a live exercise of each plan;
• Enter into a service-level agreement with each customer entity to provide the required type and
level of service or services;
• Assume administrative access rights to resources and equipment, including servers, network
components, and other devices, consolidated into the SOC;
• Show preference, in its procurement process, for cloud-computing solutions that minimize or do
not require the purchasing, financing, or leasing of SOC infrastructure, and that meet the needs
of customer agencies, reduce costs, and that meet or exceed the applicable state and federal
laws, regulations, and standards for IT security; and
• Assist customer entities in transitioning from state data center services to third-party cloud-
computing services procured by a customer entity.
A state agency is prohibited, unless exempted 17 elsewhere in law, from:
• Creating a new agency computing facility or data center;
• Expanding the capability to support additional computer equipment in an existing agency
computing facility or data center; or
• Terminating services with the SOC without giving written notice of intent to terminate 180 days
before termination. 18
Cloud computing is "a model for enabling ubiquitous, convenient, on-demand network access to a
shared pool of configurable computing resources (e.g. networks, servers, storage, applications, and
services) that can be rapidly provisioned and released with minimal management effort or service
10
S. 282.0051, F.S.
11
The Northwood Shared Resource Center and the Southwood Shared Resource Center. Ss. 282.204-282.205, F.S. (2008).
12
Ch. 2008-116, L.O.F.
13 Ch. 2014-221, L.O.F.
14
Sees. 282.201, F.S.
15 S. 282.201, F.S.
16
A "customer entity" means an entity that obtains services from OMS. S. 282.0041 (7), F.S.
17
The following entities are exempt from the use of the SOC: the Department of Law Enforcement, the Department of the Lottery's
Gaming Systems Design and Development in the Office of Policy and Budget, regional traffic management centers, the Office of Toll
Operations of the Department of Transportation, the State Board of Administration, state attorneys, public defenders, criminal conflict
and civil regional counsel, capital collateral regional counsel, and the Florida Housing Finance Corporation. S. 282.201(2), F.S.
18
S. 282.201(3), F.S.
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provider interaction." 19 In 2019, the Legislature mandated that each agency adopt a cloud-first policy
that first considers cloud computing solutions in its technology sourcing strategy for technology
initiatives or upgrades whenever possible or feasible. 20 Each agency must, just like the SOC, show a
preference for cloud-computing solutions in its procurement process and adopt formal procedures for
the evaluation of cloud-computing options for existing applications, technology initiatives, or
upgrades. 21
IT Security
The IT Security Act22 establishes requirements for the security of state data and IT resources. 23 OMS
must designate a state chief information security officer (CISO) to oversee state IT security. 24 The
CISO must have expertise in security and risk management for communications and IT resources. 25
OMS is tasked with the following duties regarding IT security:
• Establishing standards and processes consistent with generally accepted best practices for IT
security, including cybersecurity.
• Adopting rules that safeguard an agency's data, information, and IT resources to ensure
availability, confidentiality, and integrity and to mitigate risks.
• Developing, and annually updating, a statewide IT security strategic plan that includes security
goals and objectives for the strategic issues of IT security policy, risk management, training,
incident management, and disaster recovery planning including:
o Identifying protection procedures to manage the protection of an agency's information,
data, and IT resources;
o Detecting threats through proactive monitoring of events, continuous security monitoring,
and defined detection processes; and
o Recovering information and data in response to an IT security incident.
• Developing and publishing for use by state agencies an IT security framework.
• Reviewing the strategic and operational IT security plans of executive branch agencies
annually. 26
The IT Security Act requires the heads of state agencies to designate an information security manager
to administer the IT security program of the state agency. 27 In part, the heads of state agencies are
also required to annually submit to OMS the state agency's strategic and operational IT security plans;
conduct, and update every three years, a comprehensive risk assessment to determine the security
threats to the data, information, and IT resources of the state agency; develop, and periodically update,
written internal policies and procedures; and ensure that periodic internal audits and evaluations of the
agency's IT security program for the data, information, and IT resources of the state agency are
conducted. 28
19 Special Publication 800-145, National Institute of Standards and Technology,
https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-145.pdf (last visited Jan. 27, 2020). The term "cloud computing"
has the same meaning as provided in Special Publication 800-145 issued by the National Institute of Standards and Technology
(NIST). S. 282.0041(5), F.S.
20 S. 282.206(1), F.S.
21 S. 282.206(2) & (3), F.S.
22 S. 282.318, F.S., is cited as the "Information Technology Security Act."
23
S. 282.318, F.S.
24 S. 282.318(3), F.S.
25 Id.
2s S. 282.318(3), F.S.
27 S. 282.318(4)(a}, F.S.
28
S. 282.318(4), F.S.
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Enhanced 911 (E911) System
DST oversees the E911 system in Florida. 29 DST is required by law to develop, maintain, and
implement the statewide emergency communications E911 system plan. 30 The plan must provide for:
• The public agency emergency communications requirements for each entity of local
government31 in the state.
• A system to meet specific local government requirements, which must include law enforcement,
firefighting, and emergency medical services, and may include other emergency services such
as poison control, suicide prevention, and emergency management services.
• Identification of the mutual aid agreements necessary to obtain an effective E911 system.
• A funding provision that identifies the cost to implement the E911 system. 32
DST is responsible for implementing and coordinating the plan, and must adopt any necessary rules
and schedules related to public agencies 33 implementing and coordinating the plan. 34
The Secretary of Management Services, or his or her designee, is the director of the E911 system and
also serves as chair of the E911 Board. 35 The director of the E911 system is authorized to coordinate
the activities of the system with state, county, local, and private agencies. 36 The director must consult,
cooperate, and coordinate with local law enforcement agencies. 37 An "E911 Board," composed of
eleven members, is established in law to administer funds derived from fees imposed on each user of
voice communications service with a Florida billing address (place of primary use). 38 The Governor
appoints five members who are county 911 coordinators and five members from the
telecommunications industry. 39 The E911 Board makes disbursements from the Emergency
Communications Number E911 System Trust Fund to county governments and wireless providers. 40
Agency Procurements
Agency41 procurements of commodities or contractual services exceeding $35,000 are governed by
statute and rule and require use of one of the following three types of competitive solicitations, 42 unless
otherwise authorized by law: 43
• Invitation to bid (1TB): An agency must use an 1TB when the agency is capable of specifically
defining the scope of work for which a contractual service is required or when the agency is
capable of establishing precise specifications defining the actual commodity or group of
commodities required. 44
29 S. 365.171, F .S. Prior to 2019, the Division of Telecommunications, established in statute as the Technology Program within OMS,
was the entity with oversight over E911. See ch. 2019-118, L.O.F.
30 S. 365.171(4), F.S.
31 "Local government" means any city, county, or political subdivision of the state and its agencies. S. 365.171 (3)(b), F.S.
32 /d.
33 "Public agency" means the state and any city, county, city and county, municipal corporation, chartered organization, public district, or
public authority located in whole or in part within this state which provides, or has authority to provide, firefighting, law enforcement,
ambulance, medical, or other emergency services. S. 365.171 (3)(c), F .S.
34 S. 365.171 (4), F .S.
35 S. 365.172(5)(a), F.S.
36
S. 365.171 (5), F.S.
37 Id.
38
S. 365.172(5), F.S.
39 S. 365.172(5)(b), F.S.
40 S. 365.172(5) & (6), F.S.
41 Section 287.012(1), F.S., defines "agency" as any of the various state officers, departments, boards, commissions, divisions,
bureaus, and councils and any other unit of organization, however designated, of the executive branch of state government. "Agency"
does not include the university and college boards of trustees or the state universities and colleges.
42 Section 287.012(6), F.S., defines "competitive solicitation" as the process of requesting and receiving two or more sealed bids,
proposals, or replies submitted by responsive vendors in accordance with the terms of a competitive process, regardless of the method
of procurement.
43 Sees. 287.057, F.S.
44 S. 287.057(1)(a), F.S.
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• Request for proposals (RFP): An agency must use an RFP when the purposes and uses for
which the commodity, group of commodities, or contractual service being sought can be
specifically defined and the agency is capable of identifying necessary deliverables. 45
• Invitation to negotiate (ITN): An ITN is a solicitation used by an agency that is intended to
determine the best method for achieving a specific goal or solving a particular problem and
identifies one or more responsive vendors with which the agency may negotiate in order to
receive the best value. 46
OMS is responsible for procuring state term contracts for commodities and contractual services from
which state agencies must make purchases. 47
Digital Driver License
Current law provides for the establishment of a digital proof of driver license. Specifically, the
Department of Highway Safety and Motor Vehicles (DHSMV) is required to begin to review and prepare
for the development of a secure and uniform system for issuing an optional digital proof of driver
license. 48 The statute authorizes DHSMV to contract with one or more private entities to develop a
digital proof of driver license system. 49
The digital proof of driver license developed by DHSMV or by an entity contracted by DHSMV must be
in such a format as to allow law enforcement to verify the authenticity of the digital proof of driver
license. 50 DHSMV may adopt rules to ensure valid authentication of digital driver licenses by law
enforcement. 51 A person may not be issued a digital proof of driver license until he or she has satisfied
all of the statutory requirements relating to the issuance of a physical driver license. 52
Current law also establishes certain penalties for a person who manufacturers or possesses a false
digital proof of driver license. 53 Specifically, a person who:
• Manufactures a false digital proof of driver license commits a felony of the third degree,
punishable by up to five years in prison 54 and a fine not to exceed $5,000, 55 or punishable under
the habitual felony offender statute. 56
• Possesses a false digital proof of driver license commits a misdemeanor of the second degree,
punishable by up to 60 days in prison 57 and a fine not to exceed $500. 58
Regulation of Money Transmitters and Payment Instrument Sellers
State Regulation
The Office of Financial Regulation (OFR) regulates banks, credit unions, other financial institutions,
finance companies, and the securities industry. 59 The OFR's Division of Consumer Finance licenses
and regulates various aspects of the non-depository financial services industries, including money
45 S. 287.057(1)(b), F.S.
4s S. 287.057(1)(c), F.S.
47
Ss. 287.042(2)(a) and 287.056(1), F.S.
48 S. 322.032(1), F.S.
49 S. 322.032(2), F.S.
50 Id.
51 Id.
52
S. 322.032(3), F.S.
53 S. 322.032(4), F.S.
54 S. 775.082, F.S.
55 S. 775.083(1)(c), F.S.
56
S.775.084, F.S.
57
S. 775.082, F.S.
58 S. 775.083(1)(e), F.S.
59 S. 20.121 (3)(a)2., F .S.
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services businesses (MSBs) regulated under ch. 560, F.S. Money transmitters and payment instrument
sellers are two types of MSBs, and both are regulated under part II of ch. 560, F.S.
A money transmitter "receives currency, 60 monetary value, 61 or payment instruments62 for the purpose
of transmitting the same by any means, including transmission by wire, facsimile, electronic transfer,
courier, the Internet, or through bill payment services or other businesses that facilitate such transfer
within this country, or to or from this country." 63 A payment instrument seller sells, issues, provides, or
delivers a payment instrument. 64 State and federally chartered financial depository institutions, such as
banks and credit unions, are exempt from licensure as an MSB. 65
An applicant for licensure under ch. 560, F.S., must file an application together with an application fee
of $375. 66 The license must be renewed every two years by paying a renewal fee of $750. 67 Money
transmitters and payment instrument sellers may operate through authorized vendors by providing the
OFR specified information about the authorized vendor any by paying a fee of $38 per authorized
vendor location at the time of application and renewal. 68 A money transmitter or payment instrument
seller may also engage in the activities authorized for check cashers 69 and foreign currency
exchangers70 without paying additional licensing fees. 71
A money transmitter or payment instrument seller must at all times:
• Have a net worth of at least $100,000 and an additional net worth of $10,000 per location in this
state, up to a maximum of $2 million. 72
• Have a corporate surety bond in an amount between $50,000 and $2 million depending on the
financial condition, number of locations, and anticipated volume of the licensee. 73 In lieu of a
corporate surety bond, the licensee may deposit collateral such as cash or interest-bearing
stocks and bonds with a federally insured financial institution. 74
• Possess permissible investments, such as cash and certificates of deposit, with an aggregate
market value of at least the aggregate face amount of all outstanding money transmissions and
payment instruments issued or sold by the licensee or an authorized vendor in the United
States. 75 The OFR may waive the permissible investments requirement if the dollar value of a
licensee's outstanding payment instruments and money transmitted do not exceed the bond or
collateral deposit. 76
60
"Currency" means the coin and paper money of the United States or of any other country which is designated as legal tender and
which circulates and is customarily used and accepted as a medium of exchange in the country of issuance. Currency includes United
States silver certificates, United States notes, and Federal Reserve notes. Currency also includes official foreign bank notes that are
customarily used and accepted as a medium of exchange in a foreign country. S. 560.103(11), F.S.
61 "Monetary value" means a medium of exchange, whether or not redeemable in currency. S. 560.103(21), F.S.
62 "Payment instrument" means a check, draft, warrant, money order, travelers check, electronic instrument, or other instrument,
payment of money, or monetary value whether or not negotiable. The term does not include an instrument that is redeemable by the
issuer in merchandise or service, a credit card voucher, or a letter of credit. S. 560.103(29), F .S.
63 S. 560.103(23), F.S.
64 S. 560.103(30) & (34); supra note 62.
65
S. 560.104, F.S.
66 Ss. 560.141 & 560.143, F.S.
67 Id.; s. 560.142, F.S.
68 Id.; ss. 560.203, 560.205, & 560.208, F.S.
69 "Check casher" means a person who sells currency in exchange for payment instruments received, except travelers checks. S.
560.103(6), F.S.
70 "Foreign currency exchanger" means a person who exchanges, for compensation, currency of the United States or a foreign
government to currency of another government. S. 560.103(17), F.S.
71 S. 560.204(2), F.S.
72
S. 560.209, F.S.
73 Id.
74 Id.
75
S. 560.210, F.S.
76 Id.
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While MSBs are generally subject to federal anti-money laundering laws, 77 Florida law contains many
of the same anti-money laundering reporting requirements and recordkeeping requirements with the
added benefit of state enforcement. An MSB applicant must have an anti-money laundering program
which meets the requirements of federal law. 78 Pursuant to the Florida Control of Money Laundering in
Money Services Business Act, an MSB must maintain certain records of each transaction involving
currency or payments instruments in order to deter the use of a money services business to conceal
proceeds from criminal activity and to ensure the availability of such records for criminal, tax, or
regulatory investigations or proceedings. 79 An MSB must keep records of each transaction occurring in
this state which it knows to involve currency or other payment instruments having a greater value than
$10,000; to involve the proceeds of specified unlawful activity; or to be designed to evade the reporting
requirements of ch. 896, F.S., or the Florida Control of Money Laundering in Money Services Business
Act. 80 The OFR may take administrative action against an MSB for failure to maintain or produce
documents required by ch. 560, F.S., or federal anti-money laundering laws. 81 The OFR may also take
administrative action against an MSB for other violations of federal anti-money laundering laws such as
failure to file suspicious activity reports. 82
A money transmitter or payment instrument seller must maintain specified records for at least five
years, including the following: 83
• A daily record of payment instruments sold and money transmitted.
• A general ledger containing all asset, liability, capital, income, and expense accounts, which
shall be posted at least monthly.
• Daily settlement records received from authorized vendors.
• Monthly financial institution statements and reconciliation records.
• Records of outstanding payment instruments and money transmitted.
• Records of each payment instrument paid and money transmission delivered.
• A list of the names and addresses of all of the licensee's authorized vendors.
• Records that document the establishment, monitoring, and termination of relationships with
authorized vendors and foreign affiliates.
• Any additional records, as prescribed by rule, designed to detect and prevent money
laundering.
Federal Regulation
The Financial Crimes Enforcement Network of the U.S. Department of Treasury (FinCEN) serves as
the nation's financial intelligence unit and is charged with safeguarding the U.S. financial system from
the abuses of money laundering, terrorist financing, and other financial crimes. 84 The basic concept
underlying FinCEN's core activities is "follow the money" because criminals leave financial trails as they
try to launder the proceeds of crimes or attempt to spend their ill-gotten profits. 85 To that end, the
FinCEN administers the Bank Secrecy Act (BSA). 86 The BSA regulations require banks and other
financial institutions, including MSBs, to take a number of precautions against financial crime. 87 The
BSA regulations require financial institutions to establish an anti-money laundering program (such as
verifying customer identity), maintain certain records (such as transaction related data), and file reports
(such as suspicious activity reports and currency transaction reports) that have been determined to
77 31 C.F.R. pt. 1022
78 s. 560.1401, F.S.
79 s. 560.123, F.S.
80 Id.
81
s. 560.114, F.S.
82 Id.
83
Ss. 560.1105 & 560.211, F.S.
84
FinCEN, What We Do, https://www.fincen.gov/what-we-do (last visited Jan. 31, 2020).
85 Id.
86
Many of the federal provisions of the BSA have been codified in ch. 560, F.S., which has provided the OFR with additional
compliance and enforcement tools.
87 Id.
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have a high degree of usefulness in criminal, tax, and regulatory investigations, as well as in certain
intelligence and counter-terrorism matters. 88
Generally, an MSB is required to register with FinCEN, regardless of whether the MSB is licensed with
the state, if it conducts more than $1,000 in business with one person in one or more transactions on
the same day, in one or more of the following services: money orders, traveler's checks, check cashing,
currency dealing or exchange. 89 However, if a business provides money transfer services in any
amount, it is required to be registered. 90
FinCEN's BSA regulations define "money transmission services" as "the acceptance of currency, funds,
or other value that substitutes for currency from one person and the transmission of currency, funds, or
other value that substitutes for currency to another location or person by any means." 91 Depending on
the facts and circumstances surrounding a transaction, a person transmitting virtual currency may fall
under FinCEN's BSA regulations. 92
Federal law also criminalizes money transmission if the money transmitting business: 93
• Is operated without a license in a state where such unlicensed activity is subject to criminal
sanctions;
• Fails to register with FinCEN; or
• Otherwise involves the transportation or transmission of funds that are known to have been
derived from a criminal offense or are intended to be used to promote or support unlawful
activity.
Financial Technology
Financial technology, often referred to as "FinTech", encompasses a wide array of innovation in the
financial services space. FinTech is technology-enabled innovation in financial services that could
result in new business models, applications, processes or products with an associated material effect
on the provision of financial services. 94 Technological innovation holds great promise for the provision
of financial services, with the potential to increase market access, the range of product offerings, and
convenience while also lowering costs to clients. 95 Greater competition and diversity in lending,
payments, insurance, trading, and other areas of financial services can create a more efficient and
resilient financial system. 96 Drivers of FinTech innovations include technology, regulation, and evolving
consumer preferences, including customization. 97
Fin Tech innovation is often thought to be synonymous with disruption of the traditional financial
services market structure and its providers, such as banks. However, to date, the relationship between
incumbent financial institutions and FinTech firms appears to be largely complementary and
cooperative in nature. 98 FinTech firms have generally not had sufficient access to the low-cost funding
or the customer base necessary to pose a serious competitive threat to established financial institutions
in mature financial market segments. 99 Partnering allows FinTech firms to viably operate while still
BB Id.
89 31 C.F.R. § 1010.100 & 1022.380.
90 Id.
91
31 C.F.R. § 1010.100.
92 FinCEN Guidance, Application of FinCEN's Regulations to Certain Business Models Involving Convertible Virtual Currencies, FIN-
2019-G001 (May 9, 2019), https://www.fincen.gov/sites/defaulUfiles/2019-05/FinCEN%20Guidance%20CVC%20FINAL%20508.pdf
(last visited Jan. 31, 2020).
93 31 U.S.C. § 1960.
94 Financial Stability Board, Fin Tech and market structure in financial services: Market developments and potential financial stability
implications (Feb. 14, 2019), https://www.fsb.org/2019/02/fintech-and-market-structure-in-financial-services-market-developments-and-
potential-financial-stability-implications/ (last visited Jan. 31, 2020).
95 Id.
96 Id.
97 Id.
98 Id.
99 Id.
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being relatively small and, depending on the jurisdiction and the business model, unburdened by some
financial regulation while still benefitting from access to incumbents' client base. 100 At the same time,
incumbents benefit from access to innovative technologies that provide a competitive edge. 101 Yet there
are exceptions to this trend, as some FinTech firms have established inroads in credit provision and
payments. 102
EFFECT OF THE BILL
State Information Technology
The bill abolishes DST and establishes the Florida Digital Service (FDS) in its place. The FDS is a
subdivision of OMS the mission of which is to "create innovative solutions that securely modernize state
government and achieve value through digital transformation and interoperability." The bill places new
duties and responsibilities under the newly-created FDS as well as expanding the duties and
responsibilities currently assigned to OMS and DST. The bill provides that FDS is tasked with the
following new duties and responsibilities:
• Create and maintain a comprehensive indexed data catalog;
• Develop and publish a data dictionary for each agency;
• Develop solutions for authorized, mandated, or encouraged use cases in collaboration with the
enterprise; 103
• Review, confirm, and document use cases across the enterprise architecture (EA); 104
• Develop, publish, and manage an application programming interface to facilitate integration
throughout the enterprise;
• Facilitate collaborative analysis of enterprise architecture data to improve service delivery;
• Provide a testing environment in which any newly developed solution can be tested for
compliance with the enterprise architecture and for functionality assurance before deployment;
• Create the functionality necessary for a secure ecosystem of data interoperability that is
compliant with the enterprise architecture and allows for a qualified entity to access the stored
data; and
• Develop a process to receive written notice from the state agencies within the enterprise of any
planned or existing procurement of an IT project which is subject to governance by the EA; and
• Develop a process to intervene in any planned procurement so that it complies with the EA.
• Requires the state CIO appoint a chief data officer (COO). The COO reports to the CIO and
must be a proven and experienced executive and is included in the Senior Management Service
class of the Florida Retirement System;
• Requires the FDS to develop an enforceable and comprehensive enterprise architecture for the
enterprise which:
o Recognizes the unique needs of those within the enterprise and results in the publication
of standards and terminologies, procurement guidelines, and the facilitation of digital
interoperability;
o Establishes a comprehensive framework in support of the state's cloud-first policy that
accounts for the needs and responsibilities of agencies while defining how technology
benefits services the overall mission of the enterprise;
o Addresses how IT infrastructure may be modernized to achieve current and future cloud-
first objectives;
o Allows enterprise architecture to be enforced to ensure stewardship of tax dollars; and
o Makes available data and information relating to the enterprise architecture.
100 Id.
101 Id.
1021d.
103 The bill defines "enterprise" to mean the collection of state agencies as defined ins. 282.0041, F.S., except that the term includes
the Department of Legal Affairs, the Department of Agriculture and Consumer Services, the Department of Financial Services, and the
judicial branch of government.
104 The bill defines "enterprise architecture" to mean a comprehensive operational framework that contemplates the needs and assets
of the enterprise to support interoperability across state government.
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• Requires the FDS to architect and deploy applications or solutions to existing enterprise
obligations in a controlled and phased approach including:
o Digital licenses, including full identification management;
o Interoperability that enables supervisors of elections to authenticate voter eligibility in
real time at the point of service;
o Motor vehicle insurance cancellation integration between insurers and DHSMV;
o Interoperability solutions between agencies including, but not limited to, the Department
of Health, the Agency for Health Care Administration, the Agency for Persons with
Disabilities, the Department of Education, the Department of Elderly Affairs, and the
Department of Children and Families.
The bill makes the following changes to the duties and responsibilities of FDS currently in law:
• Expands the types of agency projects over which FDS has oversight from state agency IT
projects that have a total cost of $10 million or more and cabinet agency IT projects that have a
total cost of $25 million or more, to projects meeting those thresholds with any IT component.
However, the bill requires OMS to establish rules allowing state agencies and cabinet agencies
to apply for exemptions, which may only be granted by the Secretary of Management Services;
• Requires FDS to Identify opportunities for standardization and consolidation of IT services that
support interoperability and the state's cloud-first policy;
• Requires FDS to develop and implement other payment mechanisms to recover the cost of
SOC services through charges to the applicable customer entities;
• Eliminates the requirement that FDS conduct an annual market analysis to determine whether
the state's approach to SOC services is the most effective and cost-efficient manner by which
customer entities can acquire such services;
• Requires the Secretary of Management Services appoint a state CIO who will administer the
FDS but removes the requirement that the CIO have at least 10 years of executive-level
experience in the public or private sector;
In addition to the duties described above, FDS is also tasked with procuring a credential service
provider (CSP) for the purpose of creating digital driver licenses or identification cards. The CSP is a
provider that supplies secure identity management and verification services based on open standards
to qualified entities. OMS is required to enter into agreements with electronic credential providers (ECP)
that would have the technological capabilities necessary to integrate with the CSP as well as:
• Ensure secure validation and authentication of data;
• Meet usage criteria;
• Agree to terms and conditions, privacy policies, and uniform remittance terms relating to the
consumption of an digital driver license or identification; and
• Include clear, enforceable, and significant penalties for violating the agreements.
The bill provides that the agreements between OMS and the CSP, ESP, and other qualified entities 105
must be based on the per-data-call 106 or subscription charges to validate and authenticate a digital
license or identification card. The revenue generated must be collected by OMS and deposited in the
working capital trust fund for distribution pursuant to legislative appropriation. However, the revenue
may not derived from sources other than the per-data-call or subscription charges. Once a qualified
entity or an ECP signs the EA terms of service and privacy policy, the FDS must provide appropriate
access to the stored data to facilitation authorized integrations to collaboratively, less expensively, or at
no cost to the taxpayer, solve enterprise use cases.
105 The bill defines "qualified entity" to mean a public or private entity or individual that enters into a binding agreement with OMS, meets
usage criteria, agrees to terms and conditions, and is subsequently and prescriptively authorized by the department to access data
under the terms of that agreement.
106 The bill defines "data-call" to mean an electronic transaction with the CSP that verifies the authenticity of a digital identity by
querying enterprise data.
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The bill creates the Enterprise Architecture Advisory Council (Council) as an advisory council 107 within
OMS. The Council is composed 13 members appointed to staggered terms of four years. The Council
consists of:
• The Governor or his or her designee;
• Three persons appointed by the Governor;
• The Director of the Office of Policy and Budget in the EOG or his or her designee;
• The Secretary of Management Services or his or her designee;
• The State CIO or his or her designee;
• The Chief Justice of the Florida Supreme Court or his or her designee;
• The President of the Senate or his or her designee;
• The Speaker of the House of Representatives or his or her designee;
• The CIO of the Department of Financial Services;
• The CIO of the Department of Legal Affairs;
• The CIO of the Department of Agriculture and Consumer Affairs
The Council is required to meet semiannually beginning October 1, 2020, to discuss implementation,
management, and coordination of the EA; identify potential issues and threats with specific use cases;
and develop proactive solutions.
The bill creates the Division of Telecommunications within OMS, removes DST as the head of the E911
system in Florida, and places the division as its new head.
Financial Technology Sandbox
The bill creates the Financial Technology Sandbox within the OFR to allow financial technology
innovators to test new products and services in a supervised, flexible regulatory sandbox, using
waivers of specified general law and corresponding rule requirements under defined conditions. The
creation of a supervised, flexible regulatory sandbox provides a welcoming business environment for
technology innovators and may lead to significant business growth.
The Financial Technology Sandbox allows a person to make an innovative financial product or service
available to consumers as a money transmitter or payment instrument seller during a sandbox period
that is initially not longer than 24 months but which can be extended one time for up to 12 months. A
"financial product or service" is a product or service related to money transmitters and payment
instrument sellers, including mediums of exchange that are in electronic or digital form, which is subject
to general law or corresponding rule requirements in the enumerated statutes that may be waived by
the OFR. "Innovative" means new or emerging technology, or new uses of existing technology which
provides a product, service, business model, or delivery mechanism to the public.
The OFR is permitted to waive the following statutes and corresponding rule requirements for purposes
of the Financial Technology Sandbox:
• Section 560.1105, F.S., relating to records retention.
• Section 560.118, F.S., relating to reports.
• Section 560.125, F.S., relating to unlicensed activity; penalties. However, the OFR may not
waive the portion of the statute that permits only a money services business licensed as a
money transmitter or payment instrument seller to appoint an authorized vendor.
• Section 560.128, F.S., relating to customer contacts; license display.
• Section 560.1401, F.S., relating to licensing standards. However, the OFR may not waive the
portions of the statute that require an applicant to be legally authorized to do business in this
state, to be licensed with FinCEN (if applicable), and to have an anti-money laundering program
in place.
107
The term " council" or "advisory council" means an advisory body created by specific statutory enactment and appointed to function
on a continuing basis for the study of the problems arising in a specified functional or program area of state government and to provide
recommendations and policy alternatives. S. 20.03(7), F.S.
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• Section 560.141, F.S., relating to license application. However, the OFR may not waive the
portions of the statute that impose a licensing fee, require fingerprints and background checks,
and require the applicant to provide a copy of the applicant's anti-money laundering program.
• Section 560.142, F.S., relating to license renewal. However, the OFR may prorate, but may not
entirely waive, the license renewal fees for an extension granted under the sandbox.
• Section 560.143(2), F.S., relating to license renewal fees, to the extent necessary for proration
of the renewal fee.
• Section 560.205, F.S., relating to additional license application requirements. However, the
OFR may not waive portions of the statute requiring an applicant to provide a sample authorized
vendor contract (if applicable) and documents demonstrating that the net worth and bond
requirements have been fulfilled.
• Section 560.208, F.S., relating to conduct of business. However, the OFR may not waive
portions of the statute making a licensee responsible for the acts of its authorized vendors,
requiring a licensee to place customer assets in a segregated account in a federally insured
financial institution, and requiring a licensee to ensure that money transmitted is available to the
designated recipient within ten business days after receipt.
• Section 560.209, F.S., relating to net worth; corporate surety bond; collateral deposit in lieu of
bond. However, the OFR may modify, but may not entirely waive, the net worth, corporate
surety bond, and collateral deposit amounts. The modified amounts must be in such lower
amounts that the OFR determines to be commensurate with specified considerations regarding
the sandbox application and commensurate with the maximum number of consumers
authorized to receive the product or service under the sandbox.
The OFR may grant a waiver if the general law or corresponding rule currently prevents the innovative
financial product or service to be made available to consumers. No provision relating to the liability of
an incorporator, director, or officer of the applicant is eligible for a waiver. The waiver must not be
broader than necessary to accomplish the purposes and standards of the sandbox, as determined by
the OFR.
Before filing an application under this section, a substantially affected person may seek a declaratory
statement pursuant to s. 120.565, F.S., regarding the applicability of a statute, rule, or agency order to
the petitioner's particular set of circumstances.
Before a person applies on behalf of a business entity intending to make an innovative financial product
or service available to consumers, the person must obtain the consent of the business entity. A
business entity filing an application under this section must be a domestic corporation or other
organized domestic entity with a physical presence, other than that of a registered office or agent or
virtual mailbox, in this state.
In the sandbox application, the applicant must specify the general law or rule requirements for which a
waiver is sought, and the reasons why these requirements prevent the innovative financial product or
service from being made available to consumers. The application must also contain the following
information, which the OFR must consider in deciding whether to approve or deny an application:
• The nature of the innovative financial product or service proposed to be made available to
consumers in the Financial Technology Sandbox, including all relevant technical details.
• The potential risk to consumers and the methods that will be used to protect consumers and
resolve complaints during the sandbox period.
• The business plan proposed by the applicant, including a statement regarding the applicant's
current and proposed capitalization.
• Whether the applicant has the necessary personnel, adequate financial and technical expertise,
and a sufficient plan to test, monitor, and assess the innovative financial product or service.
• Whether any person substantially involved in the development, operation, or management of
the applicant's innovative financial product or service has pied no contest to, has been
convicted or found guilty of, or is currently under investigation for, fraud, a state or federal
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securities violation, any property-based offense, or any crime involving moral turpitude or
dishonest dealing. A plea of no contest, a conviction, or finding of guilt must be reported under
this subparagraph regardless of adjudication.
• A copy of specified disclosures that will be provided to consumers.
• The financial responsibility of any person substantially involved in the development, operation,
or management of the applicant's innovative financial product or service.
• Any other factor that the office determines to be relevant.
The OFR may not approve an application if:
• The applicant had a prior Financial Technology Sandbox application which was approved and
which related to a substantially similar financial product or service; or
• Any person substantially involved in the development, operation, or management of the
applicant's innovative financial product or service was substantially involved in such with
another Financial Technology Sandbox applicant whose application was approved and whose
application related to a substantially similar financial product or service.
The OFR must approve or deny in writing an application within 60 days after receiving the completed
application, though the OFR and the applicant may jointly agree to extend the time beyond 60 days.
The OFR may impose conditions on any approval, consistent with the sandbox. Upon approval of an
application, the OFR must specify the general law or rule requirements, or portions thereof, for which a
waiver is granted during the sandbox period and the length of the initial sandbox period, not to exceed
24 months.
A person whose Financial Technology Sandbox application is approved shall be deemed licensed
under part II of ch. 560, F.S., unless the person's authorization to make the product or service available
to consumers under the sandbox has been revoked or suspended.
The OFR must post on its website notice of the approval of the application, a summary of the
innovative financial product or service, and the contact information of the person making the financial
product or service available.
The OFR may, on a case-by-case basis, specify the maximum number of consumers authorized to
receive an innovative financial product or service, after consultation with the person who makes the
financial product or service available to consumers. The OFR may not authorize more than 15,000
consumers to receive the product or service until the sandbox participant has filed the first report
required under the sandbox. Thereafter, if the person demonstrates adequate financial capitalization,
risk management process, and management oversight, the OFR may authorize up to 25,000
consumers to receive the product or service.
The person making the financial product or service available must provide a written statement to the
consumer, which must contain an acknowledgement from the consumer, of all of the following
information:
• The name and contact information of the person making the financial product or service
available to consumers.
• That the financial product or service has been authorized to be made available to consumers for
a temporary period by the OFR, under the laws of Florida.
• That the state does not endorse the financial product or service.
• That the financial product or service is undergoing testing, may not function as intended, and
may entail financial risk.
• That the person making the product or service available to consumers is not immune from civil
liability for any losses or damages caused by the financial product or service.
• The expected end date of the sandbox period.
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• The contact information for the office, and notification that suspected legal violations,
complaints, or other comments related to the financial product or service may be submitted to
the office.
• Any other statements or disclosures required by rule of the commission which are necessary to
further the purposes of this section.
The OFR may enter into an agreement with a state, federal, or foreign regulatory agency to allow
persons who make an innovative financial product or service available in this state through the
Financial Technology Sandbox to make their products or services available in other jurisdictions.
A sandbox participant must maintain comprehensive records relating to the innovative financial product
or service and must keep these records for at least five years after the conclusion of the sandbox
period. The Financial Services Commission may specify by rule additional records requirements. The
OFR may examine these records at any time, with or without notice.
A sandbox participant may apply for an extension of the initial sandbox period for up to 12 additional
months. An application for an extension must cite one of the following reasons as the basis for the
application and must provide all relevant supporting information that:
• Amendments to general law or rules are necessary to offer the innovative financial product or
service in this state permanently.
• An application for a license that is required in order to offer the innovative financial product or
service in this state permanently has been filed with the OFR, and approval is pending.
A complete application for an extension must be filed at least 90 days before the conclusion of the
initial sandbox period. The OFR must approve or deny the application for extension in writing at least
35 days before the conclusion of the initial sandbox period. In deciding to approve or deny an
application for extension of the sandbox period, the OFR must, at a minimum, consider the current
status of the factors previously considered at the time of application for the initial sandbox period.
At least 30 days before the conclusion of the initial sandbox period or the extension, whichever is later,
the sandbox participant must provide written notification to consumers regarding the conclusion of the
initial sandbox period or the extension and may not make the financial product or service available to
any new consumers after the conclusion of the initial sandbox period or the extension, whichever is
later, until legal authority outside of the Financial Technology Sandbox exists to make the financial
product or service available to consumers. After the conclusion of the sandbox period or the extension,
whichever is later, the person may:
• Collect and receive money owed to the person or pay money owed by the person, based on
agreements with consumers made before the conclusion of the sandbox period or the
extension.
• Take necessary legal action.
• Take other actions authorized by rule of the commission which are not inconsistent with the
sandbox.
A sandbox participant must submit a report to the OFR twice a year as prescribed by rule. The report
must, at a minimum, include financial reports and the number of consumers who have received the
product or service.
A sandbox participant is not immune from civil damages and is subject to all criminal and consumer
protection laws.
The OFR may, by order, revoke or suspend authorization granted to a sandbox participant if:
• The sandbox participant has violated or refused to comply with the sandbox statute, a rule of
the Financial Services Commission, an order of the OFR, or a condition placed by the OFR on
the approval of the person's Financial Technology Sandbox application;
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• A fact or condition exists that, if it had existed or become known at the time that the Financial
Technology Sandbox application was pending, would have warranted denial of the application
or the imposition of material conditions;
• A material error, false statement, misrepresentation, or material omission was made in the
Financial Technology Sandbox application; or
• After consultation with the person, continued testing of the innovative financial product or
service would:
o Be likely to harm consumers; or
o No longer serve the purposes of the sandbox because of the financial or operational
failure of the financial product or service.
Written notice of a revocation or suspension order must be served using any means authorized by law.
If the notice relates to a suspension, the notice must include any condition or remedial action that the
person must complete before the OFR lifts the suspension. The OFR may refer any suspected violation
of law to an appropriate state or federal agency for investigation, prosecution, civil penalties, and other
appropriate enforcement actions. If service of process on a sandbox participant is not feasible, service
on the OFR is deemed service on such person.
The Financial Services Commission must adopt rules to administer the sandbox. The OFR may issue
all necessary orders to enforce the sandbox statute and may enforce these orders in accordance with
ch. 120, F.S., or in any court of competent jurisdiction. These orders include, but are not limited to,
orders for payment of restitution for harm suffered by consumers as a result of an innovative financial
product or service.
The bill will take effect on January 1, 2021.
B. SECTION DIRECTORY:
Section 1. Amends s. 20.22, F.S., relating to Department of Management Services.
Section 2. Amends s. 282.0051, F.S., relating to Florida Digital Service; powers, duties, and
functions.
Section 3. Amends s. 282.00515, F.S., relating to Enterprise Architecture Advisory Council.
Section 4. Amends s. 282.318, F.S., relating to security of data and information technology.
Section 5. Amends s. 287.0591, F.S., relating to information technology.
Section 6. Amends s. 365.171, F.S., relating to emergency communications number E911 state plan.
Section 7. Amends s. 365.172, F.S., relating to emergency communications number "E911."
Section 8. Amends s. 365.173, F.S., relating to Communications Number E911 System Fund.
Section 9. Amends s. 943.0415, F.S., relating to Cybercrime Office.
Section 10. Creates s. 560.214, F.S., relating to Financial Technology Sandbox.
Section 11. Provides an effective date of January 1, 2021.
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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill could result in a positive fiscal impact on state government revenues as it requires certain
entities which use the newly-created digital license functionality to pay a per-use fee or purchase a
subscription in order to verify the authenticity of a digital identity. The bill specifies that the revenue
generated must be collected by OMS and deposited in the working capital trust fund for distribution
pursuant to legislative appropriation. See also "Fiscal Comments" section below.
2. Expenditures:
The bill will have an indeterminate fiscal impact on state government expenditures as it expands the
current duties of OMS, and it subdivisions, relating to state IT management, places new
responsibilities on that department, and creates three new governmental entities: the Florida Digital
Service, the Enterprise Architecture Advisory Council, and the Division of Telecommunications. It is
unclear if the bill's requirements could be absorbed within DMS's current resources. See also
"Fiscal Comments" section below.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The impact of the Financial Technology Sandbox on the private sector is indeterminate, as it is
unknown how many businesses may participate, what types of products or services such businesses
would offer, and how many consumers in total would be offered the products or services.
D. FISCAL COMMENTS:
The fiscal impact to the OFR is indeterminate. Under the Financial Technology Sandbox, the fees will
be the same as under the existing license in part II of ch. 560, F.S., except that the renewal fee can be
prorated because the Financial Technology Sandbox can only be extended for up to one year, whereas
the renewed license under part II of ch. 560, F.S., is for a two-year period. Depending on the number of
participants and the complexity of oversight, it is possible that the OFR may need additional staff.
Additionally, the OFR may need to make changes to their information technology infrastructure in order
to administer the program.
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.
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B. RULE-MAKING AUTHORITY:
The bill would give FDS rulemaking authority overs. 282.0051, F.S., allowing FDS to further implement
the provisions of the bill through rulemaking.
The bill requires the Financial Services Commission 108 to adopt rules to administer the Financial
Technology Sandbox.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
108 The Financial Services Commission (commission) is composed of the Governor, Attorney General, Chief Financial Officer, and
Commissioner of Agriculture. S. 20.121 (3), F .S. The commission members are OFR's agency head for the purpose of rulemaking. S.
20.121 (3)(c), F .S.
STORAGE NAME: pcs1391.18S.DOCX PAGE: 18
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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 1391 2020
1 A bill to be entitled
2 An act relating to technology innovation; amending s.
3 20.22, F.S.; renaming the Division of State Technology
4 within the Department of Management Services; adding
5 the Florida Digital Service to the department;
6 amending s. 282.0051, F.S.; establishing the Florida
7 Digital Service within the department; providing
8 definitions; transferring specified powers, duties,
9 and functions of the department to the Florida Digital
10 Service and revising such powers, duties, and
11 functions; providing appointments and requirements of
12 the state chief information officer and chief data
13 officer of the Florida Digital Service; requiring the
14 Florida Digital Service to develop a comprehensive
15 enterprise architecture; providing requirements for
16 such enterprise architecture; providing duties and
17 authorities of the Florida Digital Service; providing
18 duties of the department; amending s. 282.00515, F.S.;
19 establishing the Enterprise Architecture Advisory
20 Council; requiring the council to comply with
21 specified requirements; providing membership and
22 meeting requirements and duties of the council;
23 amending ss. 282. 318, 287. 0591, 365 .171, 365 .172,
24 365.173, and 943.0415, F.S.; conforming provisions to
25 changes made by the act; creating s. 560.214, F.S.;
Page 1 of 37
CODING: Words striekeR are deletions; words underlined are additions.
PCS for HB 1391
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26 providing a short title; creating the Financial
27 Technology Sandbox; providing definitions; providing
28 certain waivers of requirements to specified persons
29 under certain circumstances; requiring an application
30 for the program for persons who want to make
31 innovative financial products or services available to
32 consumers; providing application requirements;
33 providing standards for application approval or
34 refusal; requiring the Office of Financial Regulation
35 to perform certain actions upon approval of an
36 application; providing operation of the sandbox;
37 providing limitations on the number of consumers of
38 innovative financial products or services; authorizing
39 the office to enter into agreement with certain
40 regulatory agencies for specified purposes; providing
41 extension and conclusion of the sandbox period;
42 requiring persons who make innovative financial
43 products or services available to consumers to submit
44 a report; providing construction; providing that such
45 persons are not immune from civil damages and are
46 subject to criminal and consumer protection laws;
47 providing penalties; providing service of process;
48 requiring the Financial Services Commission to adopt
49 rules; authorizing the office to issue certain orders
50 and to enforce them under ch. 120, F.S., or in court;
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51 authorizing the office to issue and enforce orders for
52 payment of restitution for a specified purpose;
53 providing an effective date.
54
55 Be It Enacted by the Legislature of the State of Florida:
56
57 Section 1. Subsection (2) of section 20.22, Florida
58 Statutes, is amended to read:
59 20.22 Department of Management Services.-There is created
60 a Department of Management Services.
61 (2) The following divisions and programs within the
62 Department of Management Services shall consist of the following
63 are established:
64 (a) The Facilities Program.
65 (b) The Division of Telecommunications State Technology,
66 the director of which is appointed by the secretary of the
67 departmen~ and shall serve as the state chief information
68 officer. The state chief information officer must be a proven,
69 effective administrator who must have at least 10 years of
70 eMecutive level e1cperience in the public or private sector,
71 preferably with eMperience in the development of information
72 technology strategic planning and the development and
73 implementation of fiscal and substantive information technology
74 policy and standards.
75 (c) The Workforce Program.
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76 (d)l. The Support Program.
77 2. The Federal Property Assistance Program.
--
78 (e) The Administration Program.
79 (f) The Division of Administrative Hearings.
80 (g) The Division of Retirement.
81 (h) The Division of State Group Insurance.
82 (i) The Florida Digital Service.
83 Section 2. Section 282.0051, Florida Statutes, is amended
84 to read:
85 282.0051 Florida Digital Service Departffient of Manageffient
86 Services; powers, duties, and functions.-There is established
87 the Florida Digital Service within the department to create
88 innovative solutions that securely modernize state government
89 and achieve value through digital transformation and
90 interoperability.
91 (1) As used in this section, the term:
92 (a) "Credential service provider" means a provider
93 competitively procured by the department to supply secure
94 identity management and verification services based on open
95 standards to qualified entities.
96 (b) "Data-call" means an electronic transaction with the
97 credential service provider that verifies the authenticity of a
98 digital identity by querying enterprise data.
99 (c) "Electronic" means technology having electrical,
100 digital, magnetic, wireless, optical, electromagnetic, or
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101 similar capabilities.
102 (d) "Electronic credential" means an electronic
103 representation of a physical driver license or identification
104 card that is viewable in an electronic format and is capable of
105 being verified and authenticated.
106 (e) "Electronic credential provider" means a qualified
107 entity contracted with the department to provide electronic
108 credentials to eligible driver license or identification card
109 holders.
110 (f) "Enterprise" means the collection of state agencies as
111 defined ins. 282.0041, except the term includes the Department
112 of Legal Affairs, the Department of Agriculture and Consumer
113 Services, the Department of Financial Services, and the judicial
114 branch.
115 (g) "Enterprise architecture" means a comprehensive
116 operational framework that contemplates the needs and assets of
117 the enterprise to support interoperability across state
118 government.
119 (h) "Interoperability" means the technical ability to
120 share and use data across and throughout the enterprise.
121 (i) "Qualified entity" means a public or private entity or
122 individual that enters into a binding agreement with the
123 department, meets usage criteria, agrees to terms and
124 conditions, and is subsequently and prescriptively authorized by
125 the department to access data under the terms of that agreement.
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12 6 J1.l The Florida Digital Service departffient shall have the
127 following powers, duties, and functions in full support of the
128 cloud-first policy as defined ins. 282.206:
129 ~-H:-+- Develop and publish information technology policy
130 for the management of the state's information technology
131 resources.
132 JE.l-R+ Establish and publish information technology
133 architecture standards to provide for the most efficient use of
134 the state's information technology resources and to ensure
135 compatibility and alignment with the needs of state agencies.
136 The Florida Digital Service departffient shall assist state
137 agencies in complying with the standards.
138 ___(___£l+3+ Establish project management and oversight
139 standards with which state agencies must comply when
140 implementing projects that have an information technology
141 component projects. The Florida Digital Service departffient shall
142 provide training opportunities to state agencies to assist in
143 the adoption of the project management and oversight standards.
144 To support data-driven decisionmaking, the standards must
145 include, but are not limited to:
146 l..:_-f-a-t Performance measurements and metrics that
147 objectively reflect the status of a project with an information
148 technology component project based on a defined and documented
149 project scope, cost, and schedule.
150 ~--fet Methodologies for calculating acceptable variances
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151 in the projected versus actual scope, schedule, or cost of a
152 project with an information technology component projeet.
153 l..:_+e+ Reporting requirements, including requirements
154 designed to alert all defined stakeholders that a project with
155 an information technology component projeet has exceeded
156 acceptable variances defined and documented in a project plan.
157 .!.:_-te-+- Content, format, and frequency of project updates.
158 J.s!.l-f-4+ Perform project oversight on all state agency
159 information technology projects that have an information
160 technology component with a total project cost costs of $10
161 million or more and that are funded in the General
162 Appropriations Act or any other law. The Florida Digital Service
163 department shall report at least quarterly to the Executive
164 Office of the Governor, the President of the Senate, and the
165 Speaker of the House of Representatives on any project with an
166 information technology component project that the Florida
167 Digital Service department identifies as high-risk due to the
168 project exceeding acceptable variance ranges defined and
169 documented in a project plan. The report must include a risk
170 assessment, including fiscal risks, associated with proceeding
171 to the next stage of the project, and a recommendation for
172 corrective actions required, including suspension or termination
173 of the project.
174 ~-f-§-t Identify opportunities for standardization and
175 consolidation of information technology services that support
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176 interoperability and the cloud-first policy as defined ins.
177 282.206, business functions and operations, including
178 administrative functions such as purchasing, accounting and
179 reporting, cash management, and personnel, and that are common
180 across state agencies. The Florida Digital Service department
181 shall biennially on April 1 provide recommendations for
182 standardization and consolidation to the Executive Office of the
183 Governor, the President of the Senate, and the Speaker of the
184 House of Representatives.
185 J..!l-f-6+ Establish best practices for the procurement of
186 information technology products and cloud-computing services in
187 order to reduce costs, increase the quality of data center
188 services, or improve government services.
189 J_gJ_-f-+t Develop standards for information technology
190 reports and updates, including, but not limited to, operational
191 work plans, project spend plans, and project status reports, for
192 use by state agencies.
193 l..bl+&+- Upon request, assist state agencies in the
194 development of information technology-related legislative budget
195 requests.
196 J.i.l-+-9+ Conduct annual assessments of state agencies to
197 determine compliance with all information technology standards
198 and guidelines developed and published by the Florida Digital
199 Service department and provide results of the assessments to the
200 Executive Office of the Governor, the President of the Senate,
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201 and the Speaker of the House of Representatives.
202 J.il+l-G-+- Provide operational management and oversight of
203 the state data center established pursuant to s. 282.201, which
204 includes:
205 l..:_+a-t Implementing industry standards and best practices
206 for the state data center's facilities, operations, maintenance,
207 planning, and management processes.
208 2.-fe+ Developing and implementing cost-recovery or other
209 payment mechanisms that recover the full direct and indirect
210 cost of services through charges to applicable customer
211 entities. Such cost-recovery or other payment mechanisms must
212 comply with applicable state and federal regulations concerning
213 distribution and use of funds and must ensure that, for any
214 fiscal year, no service or customer entity subsidizes another
215 service or customer entity.
216 3.+e+ Developing and implementing appropriate operating
217 guidelines and procedures necessary for the state data center to
218 perform its duties pursuant to s. 282.201. The guidelines and
219 procedures must comply with applicable state and federal laws,
220 regulations, and policies and conform to generally accepted
221 governmental accounting and auditing standards. The guidelines
222 and procedures must include, but need not be limited to:
223 a.-l-:- Implementing a consolidated administrative support
224 structure responsible for providing financial management,
225 procurement, transactions involving real or personal property,
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226 human resources, and operational support.
227 b.-&.- Implementing an annual reconciliation process to
228 ensure that each customer entity is paying for the full direct
229 and indirect cost of each service as determined by the customer
230 entity's use of each service.
231 c.-3.- Providing rebates that may be credited against future
232 billings to customer entities when revenues exceed costs.
233 d.4-. Requiring customer entities to validate that
234 sufficient funds exist in the appropriate data processing
235 appropriation category or will be transferred into the
236 appropriate data processing appropriation category before
237 implementation of a customer entity's request for a change in
238 the type or level of service provided, if such change results in
239 a net increase to the customer entity's cost for that fiscal
240 year.
241 e . .§-,- By November 15 of each year, providing to the Office
242 of Policy and Budget in the Executive Office of the Governor and
243 to the chairs of the legislative appropriations committees the
244 projected costs of providing data center services for the
245 following fiscal year.
246 f.-6-.- Providing a plan for consideration by the Legislative
247 Budget Commission if the cost of a service is increased for a
248 reason other than a customer entity's request made pursuant to
249 sub-subparagraph d. subparagraph 4. Such a plan is required only
250 if the service cost increase results in a net increase to a
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251 customer entity for that fiscal year.
252 .9:....:_+. Standardizing and consolidating procurement and
253 contracting practices .
254 .!.:_-fe-t In collaboration with the Department of Law
255 Enforcement, developing and implementing a process for
256 detecting, reporting, and responding to information technology
257 security incidents, breaches, and threats.
258 5.-f-e-t Adopting rules relating to the operation of the
259 state data center, including, but not limited to, budgeting and
260 accounting procedures, cost-recovery or other payment
261 methodologies, and operating procedures.
2 62 (f) Conducting an annual market analysis to determine
263 whether the state's approach to the provision of data center
264 services is the most effective and cost efficient manner by
265 which its customer entities can acquire such services, based on
266 federal, state, and local government trends; best practices in
267 service provision; and the acquisition of new and emerging
268 technologies. The results of the market analysis shall assist
269 the state data center in making adjustments to its data center
270 service offerings.
271 (k)-f-±-±+ Recommend other information technology services
272 that should be designed, delivered, and managed as enterprise
273 information technology services. Recommendations must include
274 the identification of existing information technology resources
275 associated with the services, if existing services must be
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276 transferred as a result of being delivered and managed as
277 enterprise information technology services.
278 J..ll-f-±-2-+- In consultation with state agencies, propose a
279 methodology and approach for identifying and collecting both
280 current and planned information technology expenditure data at
281 the state agency level.
282 (m) 1. (13) (a) Notwithstanding any other law, provide
283 project oversight on any project with an information technology
284 component project of the Department of Financial Services, the
285 Department of Legal Affairs, and the Department of Agriculture
286 and Consumer Services which has a total project cost of $25
287 million or more and which impacts one or more other agencies.
288 Such projects with an information technology projects component
289 must also comply with the applicable information technology
290 architecture, project management and oversight, and reporting
291 standards established by the Florida Digital Service departffient.
292 2.-fet- When performing the project oversight function
293 specified in subparagraph 1. paragraph (a), report at least
294 quarterly to the Executive Office of the Governor, the President
295 of the Senate, and the Speaker of the House of Representatives
296 on any project with an information technology component project
297 that the Florida Digital Service departffient identifies as high-
298 risk due to the project exceeding acceptable variance ranges
299 defined and documented in the project plan. The report shall
300 include a risk assessment, including fiscal risks, associated
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301 with proceeding to the next stage of the project and a
302 recommendation for corrective actions required, including
303 suspension or termination of the project.
304 J..Ql-H:-4+- If a project with an information technology
305 component project implemented by a state agency must be
306 connected to or otherwise accommodated by an information
307 technology system administered by the Department of Financial
308 Services, the Department of Legal Affairs, or the Department of
309 Agriculture and Consumer Services, consult with these
310 departments regarding the risks and other effects of such
311 projects on their information technology systems and work
312 cooperatively with these departments regarding the connections,
313 interfaces, timing, or accommodations required to implement such
314 projects.
315 ~-f+§.+- If adherence to standards or policies adopted by
316 or established pursuant to this section causes conflict with
317 federal regulations or requirements imposed on a state agency
318 and results in adverse action against the state agency or
319 federal funding, work with the state agency to provide
320 alternative standards, policies, or requirements that do not
321 conflict with the federal regulation or requirement. The Florida
322 Digital Service department shall annually report such
323 alternative standards to the Governor, the President of the
324 Senate, and the Speaker of the House of Representatives.
325 (p) 1. (16) (a) Establish an information technology policy
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32 6 for all information technology-related state contracts,
327 including state term contracts for information technology
328 commodities, consultant services, and staff augmentation
329 services. The information technology policy must include:
330 a. -l-. Identification of the information technology product
331 and service categories to be included in state term contracts.
332 b.~. Requirements to be included in solicitations for
333 state term contracts.
334 c.~. Evaluation criteria for the award of information
335 technology-related state term contracts.
336 d.4. The term of each information technology-related state
337 term contract.
338 e.~. The maximum number of vendors authorized on each
339 state term contract.
340 2.-fe+ Evaluate vendor responses for information
341 technology-related state term contract solicitations and
342 invitations to negotiate.
343 3.-te+ Answer vendor questions on information technology-
344 related state term contract solicitations.
345 .!.:_+a+ Ensure that the information technology policy
346 established pursuant to subparagraph 1. paragraph (a) is
347 included in all solicitations and contracts that are
348 administratively executed by the department.
349 J.31+±-++ Recommend potential methods for standardizing data
350 across state agencies which will promote interoperability and
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351 reduce the collection of duplicative data.
352 l.!:.l-H:-8-+- Recommend open data technical standards and
353 terminologies for use by state agencies.
354 (3) (a) The Secretary of Management Services shall appoint
355 a state chief information officer who will administer the
356 Florida Digital Service, and is included in the Senior
357 Management Service. The state chief information officer must be
358 a proven, effective administrator who must have at least 10
359 years of executive-level experience in the public or private
360 sector, preferably with experience in the development of
361 information technology strategic planning and the development
362 and implementation of fiscal and substantive information
363 technology policy and standards.
364 (b) The state chief information officer shall appoint a
365 chief data officer, who shall report to the state chief
366 information officer and is included in the Senior Management
367 Service. The chief data officer must be a proven executive who
368 must have at least 10 years of executive-level experience,
369 preferably with experience in data management, interoperability,
370 and information technology security.
371 (4) The Florida Digital Service shall develop a
372 comprehensive enterprise architecture which:
373 (a) Recognizes the unique needs of those included within
374 the enterprise and results in the publication of standards,
375 terminologies, and procurement guidelines to facilitate digital
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376 interoperability.
377 (b) Supports the cloud-first policy as defined ins.
378 282.206.
379 (c) Addresses how information technology infrastructure
380 may be modernized to achieve current and future cloud-first
381 objectives.
382 (5) The Florida Digital Service shall:
383 (a) Create and maintain a comprehensive indexed data
384 catalog that lists what data elements are housed within the
385 enterprise and in which legacy system or application these data
386 elements are located.
387 (b) Develop and publish, in collaboration with the
388 enterprise, a data dictionary for each agency that reflects the
389 nomenclature in the comprehensive indexed data catalog.
390 (c) Review and document use cases across the enterprise
391 architecture.
392 (d) Develop solutions for authorized or mandated use cases
393 in collaboration with the enterprise.
394 (e) Develop, publish, and manage an application
395 programming interface to facilitate integration throughout the
396 enterprise.
397 (f) Facilitate collaborative analysis of enterprise
398 architecture data to improve service delivery.
399 (g) Provide a testing environment in which any newly
400 developed solution can be tested for compliance within the
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401 enterprise architecture and for functionality assurance before
402 deployment.
403 (h) Create the functionality necessary for a secure
404 ecosystem of data interoperability that is compliant with the
405 enterprise architecture and allows for a qualified entity to
406 access the stored data under the terms of the agreement with the
407 department.
408 (i)l. Procure a credential service provider through a
409 competitive process pursuant to s. 287.057. The terms of the
410 contract developed from such procurement shall pay for the value
411 on a per-data-call or subscription basis and there shall be no
412 cost to the department or law enforcement for using the services
413 provided by the credential service provider.
414 a. The department shall enter into agreements with
415 electronic credential providers that have the technological
416 capabilities necessary to integrate with the credential service
417 provider; ensure secure validation and authentication of data;
418 meet usage criteria; agree to terms and conditions, privacy
419 policies, and uniform remittance terms relating to the
420 consumption of an electronic credential; and include clear,
421 enforceable, and significant penalties for violations of the
422 agreements.
423 b. Revenue generated shall be collected by the department
424 and deposited into the working capital trust fund for
425 distribution pursuant to a legislative appropriation and
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426 department agreements with the credential service provider, the
427 electronic credential providers, and the qualified entities. The
428 terms of the agreements between the department and the
429 credential service provider, the electronic credential
430 providers, and the qualified entities, shall be based on the
431 per-data-call or subscription charges to validate and
432 authenticate an electronic credential and allow the department
433 to recover any state costs for implementing and administering an
434 electronic credential solution. Provider revenues may not be
435 derived from any other transactions that generate revenue for
436 the department outside of the per-data-call or subscription
437 charges. Nothing herein shall be construed as a restriction on a
438 provider's ability to generate additional revenues from third
439 parties outside of the terms of the agreement.
440 2. Upon the signing of the enterprise architecture terms
441 of service and privacy policies, provide to qualified entities
442 and electronic credential providers appropriate access to the
443 stored data to facilitate authorized integrations to
444 collaboratively and less expensively or at no taxpayer cost,
445 solve enterprise use cases.
446 (j) Architect and deploy applications or solutions to
447 existing enterprise obligations in a controlled and phased
448 approach, including, but not limited to:
449 1. Digital licenses, including full identification
450 management.
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451 2. Interoperability that enables supervisors of elections
452 to authenticate voter eligibility in real time at the point of
453 service.
454 3. The criminal justice database.
455 4. Motor vehicle insurance cancellation integration
456 between insurers and the Department of Highway Safety and Motor
457 Vehicles.
458 5. Interoperability solutions between agencies, including,
459 but not limited to, the Department of Health, the Agency for
460 Health Care Administration, the Agency for Persons with
461 Disabilities, the Department of Education, the Department of
462 Elderly Affairs, and the Department of Children and Families.
463 ( 6) The Florida Digital Service may develop a process to:
464 (a) Receive written notice from the state agencies within
465 the enterprise of any planned or existing procurement of an
466 information technology project which is subject to governance by
467 the enterprise architecture.
468 (b) Intervene in any planned procurement so that it
469 complies with the enterprise architecture.
470 (7)-H:-9+ The Florida Digital Service may adopt rules to
471 administer this section.
472 Section 3. Section 282.00515 is amended to read:
473 282.00515 Enterprise Architecture Advisory Council Duties
474 of Cabinet Agencies. The Departfflent of Legal Affairs, the
475 Departfflent of Financial Services, and the Departffient of
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476 Agriculture and Consumer Services shall adopt the standards
477 established ins. 282.0051(2), (3), and (7) or adopt alternative
478 standards based on best practices and industry standards, and
479 may contract with the department to provide or perform any of
480 the services and functions described ins. 282.0051 for the
481 Department of Legal Affairs, the Department of Financial
482 Services, or the Department of Agriculture and Consumer
483 Services.
484 ( 1) (a) The Enterprise Architecture Advisory Council, an
485 advisory council as defined ins. 20.03, is established within
486 the Department of Management Services. The council shall comply
487 with the requirements of s. 20.052, except as otherwise provided
488 in this section.
489 (b) The council shall consist of:
490 1. The Governor or his or her designee.
491 2. Three additional designees of the Governor.
492 3. The Director of the Office of Policy and Budget in the
493 Executive Office of the Governor or his or her designee.
494 4. The Secretary of Management Services or his or her
495 designee.
496 5. The State Chief Information Officer or his or her
497 designee.
498 6. The Chief Justice or his or her designee.
499 7. The Senate President or his or her designee.
500 8. The Speaker of the House or his or her designee.
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501 9. The Chief Information Officer of the Department of
502 Financial Services or his or her designee.
503 10. The Chief Information Officer of the Department of
504 Legal Affairs or his or her designee.
505 11. The Chief Information Officer of the Department of
506 Agriculture and Consumer Services or his or her designee.
507 ( 2) (a) The members appointed herein shall be appointed to
508 terms of 4 years. However, for the purpose of providing
509 staggered terms:
510 (b) The appointments made by the Governor and the Director
511 of the Governor's Office of Policy and Budget are appointed to
512 initial two-year terms.
513 (c) The Secretary of Management Services, and the State
514 Chief Information Officer are appointed to initial four-year
515 terms.
516 (d) The appointment of the Chief Justice is to an initial
517 three-year term.
518 (e) The appointments of the Senate President and the
519 Speaker of the House are appointed to initial two-year terms.
520 (f) The appointments of the Chief Information Officers of
521 the Department of Agriculture and Consumer Services, the
522 Department of Financial Services, and the Department of Legal
523 Affairs are appointed to initial two-year terms.
524 (g) A vacancy on the council shall be filled in the same
525 manner as the original appointment for the unexpired term.
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526 (h) The council shall meet semiannually beginning October
527 1,2020, to discuss implementation, management, and coordination
528 of the enterprise architecture; identify potential issues and
529 threats with specific use cases; and develop proactive
530 solutions.
531 Section 4. Paragraph (a) of subsection (3) of section
532 282.318, Florida Statutes, is amended to read:
533 282.318 Security of data and information technology.-
534 (3) The department is responsible for establishing
535 standards and processes consistent with generally accepted best
536 practices for information technology security, to include
537 cybersecurity, and adopting rules that safeguard an agency's
538 data, information, and information technology resources to
539 ensure availability, confidentiality, and integrity and to
540 mitigate risks. The department shall also:
541 (a) Designate a state chief information security officer
542 who shall be appointed by and report to the state chief
543 information officer of the Florida Digital Service and is in the
544 Senior Management Service. The state chief information security
545 officer must have experience and expertise in security and risk
546 management for communications and information technology
547 resources.
548 Section 5. Subsection (4) of section 287.0591, Florida
549 Statutes, is amended to read:
550 287.0591 Information technology.-
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551 ( 4) If the department issues a competitive solicitation
552 for information technology commodities, consultant services, or
553 staff augmentation contractual services, the Florida Digital
554 Service Division of State Technology within the department shall
555 participate in such solicitations.
556 Section 6. Paragraph (a) of subsection (3) of section
557 365.171, Florida Statutes, is amended to read:
558 365.171 Emergency communications number E911 state plan.-
559 (3) DEFINITIONS.-As used in this section, the term:
560 (a) "Office" means the Division of Telecommunications
561 State Technology within the Department of Management Services,
562 as designated by the secretary of the department.
563 Section 7. Paragraph (s) of subsection (3) of section
564 365.172, Florida Statutes, is amended to read:
565 365.172 Emergency communications number "E911."-
566 (3) DEFINITIONS.-Only as used in this section and ss.
567 365.171, 365.173, 365.174, and 365.177, the term:
568 ( s) "Office" means the Di vision of Telecommunications
569 State Technology within the Department of Management Services,
570 as designated by the secretary of the department.
571 Section 8. Paragraph (a) of subsection (1) of section
572 365.173, Florida Statutes, is amended to read:
573 365.173 Communications Number E911 System Fund.-
574 (1) REVENUES.-
575 (a) Revenues derived from the fee levied on subscribers
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576 under s. 365.172(8) must be paid by the board into the State
577 Treasury on or before the 15th day of each month. Such moneys
578 must be accounted for in a special fund to be designated as the
579 Emergency Communications Number E911 System Fund, a fund created
580 in the Division of Telecommunications State Technology, or other
581 office as designated by the Secretary of Management Services.
582 Section 9. Subsection (5) of section 943.0415, Florida
583 Statutes, is amended to read:
584 943.0415 Cybercrime Office.-There is created within the
585 Department of Law Enforcement the Cybercrime Office. The office
586 may:
587 (5) Consult with the Florida Digital Service Division of
588 State Technology within the Department of Management Services in
589 the adoption of rules relating to the information technology
590 security provisions ins. 282.318.
591 Section 10. Section 560.214, Florida Statutes, is created
592 to read:
593 560.214 Financial Technology Sandbox.-
594 (1) SHORT TITLE.-This section may be cited as the
595 "Financial Technology Sandbox."
596 (2) CREATION OF THE FINANCIAL TECHNOLOGY SANDBOX.-There is
597 created the Financial Technology Sandbox within the Office of
598 Financial Regulation to allow financial technology innovators to
599 test new products and services in a supervised, flexible
600 regulatory sandbox, using waivers of specified general law and
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601 corresponding rule requirements under defined conditions. The
602 creation of a supervised, flexible regulatory sandbox provides a
603 welcoming business environment for technology innovators and may
604 lead to significant business growth.
605 (3) DEFINITIONS.-As used in this section, the term:
606 (a) "Consumer" means a person in this state, whether a
607 natural person or a business entity, who purchases, uses,
608 receives, or enters into an agreement to purchase, use, or
609 receive an innovative financial product or service made
610 available through the Financial Technology Sandbox.
611 (b) "Financial product or service" means a product or
612 service related to money transmitters and payment instrument
613 sellers, including mediums of exchange that are in electronic or
614 digital form, which is subject to general law or corresponding
615 rule requirements in the sections enumerated in paragraph (4) (a)
616 and which is under the jurisdiction of the office.
617 (c) "Financial Technology Sandbox" means the program
618 created in this section which allows a person to make an
619 innovative financial product or service available to consumers
620 as a money transmitter or payment instrument seller, as defined
621 ins. 560.103(23), during a sandbox period through a waiver of
622 general laws or rule requirements, or portions thereof, as
623 specified in this section.
624 (d) "Innovative" means new or emerging technology, or new
625 uses of existing technology which provides a product, service,
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62 6 business model, or delivery mechanism to the public.
627 (e) "Office" means, unless the context clearly indicates
628 otherwise, the Office of Financial Regulation.
629 (f) "Sandbox period" means the period, initially not
630 longer than 24 months, in which the office has:
631 1. Authorized an innovative financial product or service
632 to be made available to consumers.
633 2. Granted the person who makes the innovative financial
634 product or service available a waiver of general law or
635 corresponding rule requirements, as determined by the office, so
636 that the authorization under subparagraph 1. is possible.
637 (4) WAIVERS OF GENERAL LAW AND RULE REQUIREMENTS.-
638 (a) Upon approval of a Financial Technology Sandbox
639 application, the office may grant an applicant a waiver of a
640 requirement, or a portion thereof, which is imposed by a general
641 law or corresponding rule in any of the following sections, if
642 all of the conditions in this section are met:
643 1. Section 560.1105.
644 2. Section 560.118.
645 3. Section 560.125, except for s. 560.125(2).
64 6 4. Section 560.128.
647 5. Section 560.1401, except for s. 560.1401(2)-(4).
648 6. Section 560.141, except for s. 560.141(1) (b)-(d).
649 7. Section 560.142, except that the office may prorate,
650 but may not entirely waive, the license renewal fees provided ln
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651 s. 560.142 ands. 560.143 for an extension granted under
652 subsection (7).
653 8. Section 560.143(2) to the extent necessary for
654 proration of the renewal fee under subparagraph 7.
655 9. Section 560.205, except for s. 560.205(1) ands.
656 560.205(3).
657 10. Section 560.208, except for s. 560.208(3)-(6).
658 11. Section 560.209, except that the office may modify,
659 but may not entirely waive, the net worth, corporate surety
660 bond, and collateral deposit amounts required under s. 560.209.
661 The modified amounts must be in such lower amounts that the
662 office determines to be commensurate with the considerations
663 under paragraph (5) (e) and the maximum number of consumers
664 authorized to receive the product or service under this section.
665 (b) The office may grant, during a sandbox period, a
666 waiver of a requirement, or a portion thereof, imposed by a
667 general law or corresponding rule in any section enumerated in
668 paragraph (a), if all of the following conditions are met:
669 1. The general law or corresponding rule currently
670 prevents the innovative financial product or service to be made
671 available to consumers.
672 2. The waiver is not broader than necessary to accomplish
673 the purposes and standards specified in this section, as
674 determined by the office.
675 3. No provision relating to the liability of an
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676 incorporator, director, or officer of the applicant is eligible
677 for a waiver.
678 4. The other requirements of this section are met.
679 (5) FINANCIAL TECHNOLOGY SANDBOX APPLICATION; STANDARDS
680 FOR APPROVAL.-
681 (a) Before filing an application under this section, a
682 substantially affected person may seek a declaratory statement
683 pursuant to s. 120.565 regarding the applicability of a statute,
684 rule, or agency order to the petitioner's particular set of
685 circumstances.
686 (b) Before making an innovative financial product or
687 service available to consumers in the Financial Technology
688 Sandbox, a person must file an application with the office. The
689 commission shall, by rule, prescribe the form and manner of the
690 application.
691 1. In the application, the person must specify the general
692 law or rule requirements for which a waiver is sought, and the
693 reasons why these requirements prevent the innovative financial
694 product or service from being made available to consumers.
695 2. The application must also contain the information
696 specified in paragraph (e).
697 (c) A business entity filing an application under this
698 section must be a domestic corporation or other organized
699 domestic entity with a physical presence, other than that of a
700 registered office or agent or virtual mailbox, in this state.
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701 (d) Before a person applies on behalf of a business entity
702 intending to make an innovative financial product or service
703 available to consumers, the person must obtain the consent of
704 the business entity.
705 (e) The office shall approve or deny in writing a
706 Financial Technology Sandbox application within 60 days after
707 receiving the completed application. The office and the
708 applicant may jointly agree to extend the time beyond 60 days.
709 The office may impose conditions on any approval, consistent
710 with this section. In deciding to approve or deny an
711 application, the office must consider each of the following:
712 1. The nature of the innovative financial product or
713 service proposed to be made available to consumers in the
714 Financial Technology Sandbox, including all relevant technical
715 details.
716 2. The potential risk to consumers and the methods that
717 will be used to protect consumers and resolve complaints during
718 the sandbox period.
719 3. The business plan proposed by the applicant, including
720 a statement regarding the applicant's current and proposed
721 capitalization.
722 4. Whether the applicant has the necessary personnel,
723 adequate financial and technical expertise, and a sufficient
724 plan to test, monitor, and assess the innovative financial
725 product or service.
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726 5. Whether any person substantially involved in the
727 development, operation, or management of the applicant's
728 innovative financial product or service has pled no contest to,
729 has been convicted or found guilty of, or is currently under
730 investigation for, fraud, a state or federal securities
731 violation, any property-based offense, or any crime involving
732 moral turpitude or dishonest dealing. A plea of no contest, a
733 conviction, or finding of guilt must be reported under this
734 subparagraph regardless of adjudication.
735 6. A copy of the disclosures that will be provided to
736 consumers under paragraph (6) (c).
737 7. The financial responsibility of any person
738 substantially involved in the development, operation, or
739 management of the applicant's innovative financial product or
740 service.
741 8. Any other factor that the office determines to be
742 relevant.
743 (g) The office may not approve an application if:
744 1. The applicant had a prior Financial Technology Sandbox
745 application which was approved and which related to a
746 substantially similar financial product or service; or
747 2. Any person substantially involved in the development,
748 operation, or management of the applicant's innovative financial
749 product or service was substantially involved in such with
750 another Financial Technology Sandbox applicant whose application
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751 was approved and whose application related to a substantially
752 similar financial product or service.
753 (h) Upon approval of an application, the office shall
754 specify the general law or rule requirements, or portions
755 thereof, for which a waiver is granted during the sandbox period
756 and the length of the initial sandbox period, not to exceed 24
757 months. The office shall post on its website notice of the
758 approval of the application, a summary of the innovative
759 financial product or service, and the contact information of the
760 person making the financial product or service available.
761 (6) OPERATION OF THE FINANCIAL TECHNOLOGY SANDBOX.-
762 (a) A person whose Financial Technology Sandbox
7 63 application is approved may make an innovative financial product
7 64 or service available to consumers during the sandbox period.
7 65 (b) The office may, on a case-by-case basis, specify the
766 maximum number of consumers authorized to receive an innovative
767 financial product or service, after consultation with the person
768 who makes the financial product or service available to
769 consumers. The office may not authorize more than 15,000
770 consumers to receive the product or service until the person who
771 makes the financial product or service available to consumers
772 has filed the first report required under subsection (8).
773 Thereafter, if the person demonstrates adequate financial
774 capitalization, risk management process, and management
775 oversight, the office may authorize up to 25,000 consumers to
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776 receive the product or service.
777 (c)l. Before a consumer purchases, uses, receives, or
778 enters into an agreement to purchase, use, or receive an
779 innovative financial product or service through the Financial
780 Technology Sandbox, the person making the financial product or
781 service available must provide a written statement of all of the
782 following to the consumer:
783 a. The name and contact information of the person making
784 the financial product or service available to consumers.
785 b. That the financial product or service has been
786 authorized to be made available to consumers for a temporary
787 period by the office, under the laws of this state.
788 c. That the state does not endorse the financial product
789 or service.
790 d. That the financial product or service is undergoing
791 testing, may not function as intended, and may entail financial
792 risk.
793 e. That the person making the product or service available
794 to consumers is not immune from civil liability for any losses
795 or damages caused by the financial product or service.
796 f. The expected end date of the sandbox period.
797 g. The contact information for the office, and
798 notification that suspected legal violations, complaints, or
799 other comments related to the financial product or service may
800 be submitted to the office.
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801 h. Any other statements or disclosures required by rule of
802 the commission which are necessary to further the purposes of
803 this section.
804 2. The written statement must contain an acknowledgement
805 from the consumer, which must be retained for the duration of
806 the s~ndbox period by the person making the financial product or
807 service available.
808 (d) The office may enter into an agreement with a state,
809 federal, or foreign regulatory agency to allow persons who make
810 an innovative financial product or service available in this
811 state through the Financial Technology Sandbox to make their
812 products or services available in other jurisdictions.
813 (e)l. A person whose Financial Technology Sandbox
814 application is approved by the office shall maintain
815 comprehensive records relating to the innovative financial
816 product or service. The person shall keep these records for at
817 least 5 years after the conclusion of the sandbox period. The
818 commission may specify by rule additional records requirements.
819 2. The office may examine the records maintained under
820 subparagraph 1. at any time, with or without notice.
821 ( 7) EXTENSIONS AND CONCLUSION OF SANDBOX PERIOD.-
822 (a) A person who is authorized to make an innovative
823 financial product or service available to consumers may apply
824 for an extension of the initial sandbox period for up to 12
825 additional months for either purpose specified in paragraph (b).
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82 6 A complete application for an extension must be filed with the
827 office at least 90 days before the conclusion of the initial
828 sandbox period. The office shall approve or deny the application
829 for extension in writing at least 35 days before the conclusion
830 of the initial sandbox period. In deciding to approve or deny an
831 application for extension of the sandbox period, the office
832 must, at a minimum, consider the current status of the factors
833 previously considered under paragraph ( 5) ( e) .
834 (b) An application for an extension under paragraph (a)
835 must cite one of the following reasons as the basis for the
836 application and must provide all relevant supporting information
837 that:
838 1. Amendments to general law or rules are necessary to
839 offer the innovative financial product or service in this state
840 permanently.
841 2. An application for a license that is required in order
842 to offer the innovative financial product or service in this
843 state permanently has been filed with the office, and approval
844 is pending.
845 (c) At least 30 days before the conclusion of the initial
846 sandbox period or the extension, whichever is later, a person
847 who makes an innovative financial product or service available
848 shall provide written notification to consumers regarding the
849 conclusion of the initial sandbox period or the extension and
850 may not make the financial product or service available to any
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851 new consumers after the conclusion of the initial sandbox period
852 or the extension, whichever is later, until legal authority
853 outside of the Financial Technology Sandbox exists to make the
854 financial product or service available to consumers. After the
855 conclusion of the sandbox period or the extension, whichever is
856 later, the person may:
857 1. Collect and receive money owed to the person or pay
858 money owed by the person, based on agreements with consumers
859 made before the conclusion of the sandbox period or the
860 extension.
861 2. Take necessary legal action.
862 3. Take other actions authorized by rule of the commission
863 which are not inconsistent with this subsection.
864 ( 8) REPORT.-A person authorized to make an innovative
865 financial product or service available to consumers under this
866 section shall submit a report to the office twice a year as
867 prescribed by commission rule. The report must, at a minimum,
868 include financial reports and the number of consumers who have
869 received the product or service.
870 (9) CONSTRUCTION.-A person whose Financial Technology
871 Sandbox application is approved shall be deemed licensed under
872 part II of this chapter unless the person's authorization to
873 make the product or service available to consumers under this
874 section has been revoked or suspended.
875 (10) VIOLATIONS AND PENALTIES.-
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876 (a) A person who makes an innovative financial product or
877 service available to consumers in the Financial Technology
878 Sandbox is:
879 1. Not immune from civil damages for acts and omissions
880 relating to this section.
881 2. Subject to all criminal and consumer protection laws.
882 (b)l. The office may, by order, revoke or suspend
883 authorization granted to a person to make an innovative
884 financial product or service available to consumers if:
885 a. The person has violated or refused to comply with this
886 section, a rule of the commission, an order of the office, or a
887 condition placed by the office on the approval of the person's
888 Financial Technology Sandbox application;
889 b. A fact or condition exists that, if it had existed or
890 become known at the time that the Financial Technology Sandbox
891 application was pending, would have warranted denial of the
892 application or the imposition of material conditions;
893 c. A material error, false statement, misrepresentation,
894 or material omission was made in the Financial Technology
895 Sandbox application; or
896 d. After consultation with the person, continued testing
897 of the innovative financial product or service would:
898 (I) Be likely to harm consumers; or
899 (II) No longer serve the purposes of this section because
900 of the financial or operational failure of the financial product
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901 or service.
902 2. Written notice of a revocation or suspension order made
903 under subparagraph 1. shall be served using any means authorized
904 by law. If the notice relates to a suspension, the notice must
905 include any condition or remedial action that the person must
906 complete before the office lifts the suspension.
907 (c) The office may refer any suspected violation of law to
908 an appropriate state or federal agency for investigation,
909 prosecution, civil penalties, and other appropriate enforcement
910 actions.
911 (d) If service of process on a person making an innovative
912 financial product or service available to consumers in the
913 Financial Technology Sandbox is not feasible, service on the
914 office shall be deemed service on such person.
915 (11) RULES AND ORDERS.-
916 (a) The commission shall adopt rules to administer this
917 section.
918 (b) The office may issue all necessary orders to enforce
919 this section and may enforce these orders in accordance with
920 chapter 120 or in any court of competent jurisdiction. These
921 orders include, but are not limited to, orders for payment of
922 restitution for harm suffered by consumers as a result of an
923 innovative financial product or service.
924 Section 11. This act shall take effect January 1, 2021.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 771 Motor Vehicle Insurance
SPONSOR(S): Grall
TIED BILLS: IDEN./SIM. BILLS: SB 378
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Lloyd • Cooper
2) Government Operations & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The Florida Motor Vehicle No·Fault Law (also known as personal injury protection or PIP) requires owners and
operators to obtain and maintain PIP, which provides $10,000 in medical, disability, and funeral expenses,
without regard to fault, subject to a limit of $2,500 for non-emergency medical care. In exchange for providing
PIP coverage, vehicle owners and operators are immune from tort claims within the limits of the PIP law.
The owner is also required to obtain and maintain coverage of at least $10,000 for property damage (PD). In
response to an accident, they must also provide proof of bodily injury (Bl) coverage. Bl coverage requires the
ability to respond for at least $10,000 in damages due to the bodily injury or death of any one person and
$20,000 for bodily injury or death to two or more persons. An insurance policy or allowable form of self-
insurance is acceptable proof of Bl coverage.
The bill repeals PIP. By repealing PIP, the bill removes the limitation on tort liability provided under PIP. When
drivers are at fault in an accident, they are fully liable for any damages they cause. Due to this change, the bill
expands the scope of legal liabilities covered under an uninsured/underinsured motorist policy.
In place of PIP, Bl coverage is required at the time of registration of a motor vehicle. It increases the minimum
Bl coverage limits to $25,000 in damages due to the bodily injury or death of any one person and $50,000 for
bodily injury or death to two or more persons. The minimum PD coverage limit is not changed. The minimum
security limits for self-insurance of Bl and PD requirements are increased. The bill also increases minimum
coverage limits applicable to garage liability policies and commercial motor vehicle coverage.
The bill requires insurers to offer medical payments coverage prior to issuing the policy, which the prospective
insured may reject in writing. Coverage may be selected at $5,000, $10,000 or in amounts exceeding $5,000.
The insurer may offer deductibles from zero to $500.
Motor vehicle policies issued on or after January 1, 2021, may not include PIP coverage. The bill provides for
continued enforcement of suspensions, revocations, and anti-fraud measures for actions occurring under the
PIP law.
The bill provides for the transition of motor vehicle insurance policies issued prior to January 1, 2021, from PIP
requirements to Bl requirements. In addition, insurers are required to provide their policyholders a notice
describing the effect of the elimination of PIP and change to Bl, by September 1, 2020. The notice is subject to
approval by the Office of Insurance Regulation (OIR).
The bill provides that resident relatives must be included in coverage provided by motor vehicle liability
policies. It also allows insurers to exclude named individuals from coverage. It also allows exclusion of
coverage of motor vehicles that are not identified on the policy, if an individual insured by the policy has owned
the vehicle, or the temporary vehicle was furnished for regular use, for more than 30 consecutive days.
The bill has an indeterminate fiscal impact on state revenues and expenditures and no fiscal impact on local
government. The bill has indeterminate positive and negative impacts on the private sector. An appropriation of
$83,651 is provided to OIR to implement changes made by the bill.
The bill is effective January 1, 2020, except as otherwise expressly provided by the bill.
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:
Financial Responsibility Law
Florida's Financial Responsibility Law requires proof of ability to pay monetary damages for bodily
injury (Bl) and property damage (PD) liability arising out of a motor vehicle accident or serious traffic
violation. 1 The owner or operator of a motor vehicle is not required to provide proof of Bl coverage at
the time of vehicle registration. Motorcycle owners also are not required to provide proof of Bl coverage
at the time of registration. Proof of such coverage is only required after an accident. 2 At that time, a
driver proves financial responsibility by furnishing an active motor vehicle liability policy, a certificate
showing a qualifying security deposit with the Department of Highway Safety and Motor Vehicles
(DHSMV), or proof of qualifying self-insurance. 3
The required minimum amounts of Bl insurance coverages are $10,000, in the event of bodily injury to,
or death of, one person, and $20,000, in the event of bodily injury to, or death of, two or more persons.
The required minimum amount of PD insurance coverage is $10,000, in the event of damage to
property of others, or $30,000 combined for both Bl and PD coverage. 4 Some refer to these coverage
amounts in a summary manner, i.e., $10,000/$20,000/$10,000 or 10/20/10.
A driver's license and vehicle registration are subject to suspension for failure to comply with the PD
coverage requirement. 5 One may obtain driver's license and registration reinstatement by obtaining a
liability policy and by paying a fee to DHSMV. 6
Financial responsibility requirements are common. All states have financial responsibility laws that
require persons involved in auto accidents (or serious traffic infractions) to furnish proof of Bl and PD
liability insurance. The minimum coverage amounts vary among the states.
Florida Motor Vehicle No-Fault Law
Florida's Motor Vehicle No-Fault Law (No-Fault Law) 7 requires motorists to carry no-fault insurance
known as personal injury protection (PIP) coverage. The purpose of PIP coverage under the No-Fault
Law is to provide for medical, surgical, funeral, and disability insurance benefits without regard to who
is responsible for a motor vehicle accident. In return for assuring payment of these benefits, the No-
Fault Law provides limitations on the right to bring lawsuits arising from motor vehicle accidents. Florida
motorists are required to carry $10,000 of PIP coverage. 8 However, motorcycles are excluded from this
requirement.
1 Ch. 324, F.S.
2 Ss. 320.02 and 324.011, F.S.
3
Ss. 324.031, 324.061, 324.161, and 324.171, F.S. Businesses that choose to self-insure the financial responsibility requirements must
deposit $30,000 per vehicle, up to a maximum of $120,000, with the DHSMV and maintain excess insurance with limits of
$125,000/$250,000/$300,000. Individuals that choose to self-insure must deposit $30,000 with the DHSMV. Individuals and businesses
can also obtain a certificate of self-insurance to satisfy the financial responsibility requirements. Individuals must have an
unencumbered net worth of $40,000 and businesses must have either an unencumbered net worth of $40,000 for the first vehicle and
$20,000 for each additional vehicle or a sufficient net worth determined by the DHSMV by rule. Currently, the applicable rule provides
that $40,000 for the first vehicle and an amount less than $20,000 for each additional vehicle is sufficient if the applicant carries excess
insurance in the amounts of $25,000/$50,000/$100,000. The amount applicable to each additional vehicle is determined annually under
a "Manual of Financial Responsibility Rates" (Revised 05-89) adopted by rule by the Office of Insurance Regulation. Rule 15A-3.011,
F.A.C.
4
S. 324.022, F.S.
5
S. 324.0221 (2), F.S. Failure to maintain PIP coverage results in suspension of the driver's license and vehicle registration.
6 S. 324.0221(3), F.S.
7
Ss. 627.730-627.7405, F.S.
8
S. 627.7275, F.S. Under Florida's Financial Responsibility Law (ch. 324, F.S.}, motorists must also provide proof of ability to pay
monetary damages for Bodily Injury and Property Damage liability at the time of motor vehicle accidents or when serious traffic
violations occur. The Financial Responsibility Law requires $10,000, per person, and $20,000, per incident, of Bodily Injury coverage,
and $10,000 of Property Damage liability coverage.
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PIP General Provisions
Required Coverage All owners or registrants of motor vehicles with four or more wheels,
except school buses, limos, and taxicabs, are required to carry PIP. 9
Individuals Covered The named insured, relatives living in the same household, persons
operating the vehicle, passengers in the vehicle, and persons struck
and injured while not occupying the vehicle.
Tort Limitation Limited exemption from tort liability; injured persons may pursue
certain tort claims as specified by the PIP law.
Benefits $10,000 in emergency medical and disability benefits (limited to
$2,500 in medical benefits for non-emergency medical conditions) and
$5,000 in death benefits. Coverage of 60 percent of lost income due
to disability, not to exceed the $10,000 overall benefit limitation.
Timely Treatment Medical benefits are paid only if initial treatment is received within 14
days of the accident.
Timely Payment Payments are overdue if not paid within 30 days of insurer receipt of
written notice.
Medical Reimbursement 80 percent of reasonable medical expenses paid to eligible medical
providers. 10
Excluded Treatment Massage and acupuncture are not PIP medical benefits. Services,
supplies, or care that is not reimbursable under Medicare or workers'
compensation is not required to be reimbursed by the insurer.
Attorney Fees Prevailing insureds and beneficiaries may receive a reasonable
attorney fees award.
PIP in Other States
Over the last couple of decades, 24 jurisdictions have repealed their No-Fault laws or made them non-
compulsory.11 Only 17 jurisdictions have compulsory PIP laws. Of those with compulsory PIP laws, only
nine have No-Fault laws. Five jurisdictions, including some that do not have compulsory PIP laws, give
the insured the option to choose No-Fault protections.
Jurisdiction Compulsory PIP No-Fault
Arizona Yes No
Delaware Yes No
District of Columbia No Ootional
Florida Yes Yes
Hawaii Yes Yes
Kansas Yes Yes
Kentucky No Optional
Maryland Yes No
Massachusetts Yes Yes
Michiaan Yes Yes
Minnesota Yes Yes
9 This includes non-resident owners who keep a vehicle in Florida for more than 90 days during the previous 365 day. S. 627.733(2),
F.S.
10 Insurers may limit reimbursements to a fee schedule tied to the Medicare allowed amount. S. 627.736(5)(a)1., F.S. For many
services, 80 percent of 200 percent of the Medicare allowed amount is the standard reimbursement under this fee schedule.
11 National Association of Insurance Commissioners, Final Auto Study Group Report (Nov. 18, 2014) and Insurance Information
Institute, Compulsory Auto/Uninsured Motorists (Sept. 2017) http://www.iii.org/issue-update/compulsory-auto-uninsured-motorists (last
visited Feb. 1, 2020).
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New Jersey Yes Optional
New York Yes Yes
North Dakota Yes Yes
Oregon Yes No
Pennsylvania No Optional
Texas Yes Optional
Utah Yes Yes
Virgin Islands Yes No
Washington Yes No
Recent Legislative History
The Legislature revised the PIP law multiple times following a Statewide Grand Jury in 2000 that found
rampant fraud in the PIP system. The Legislature enacted PIP reform legislation in 2001 and 2003. The
2003 legislation included a sunset of the PIP law on October 1, 2007. A Governor's veto of a bill
extending the sunset of the law resulted in the law expiring in 2007. Following a 2007 Special Session,
the PIP law was revived effective January 1, 2008. The Legislature again revised the PIP law in 2012.
PIP Reform
The reforms enacted between 2001 and 2012 included:
• Establishing requirements for and limiting access to motor vehicle crash reports;
• Providing limitations on medical services, reimbursement, and eligible providers;
• Requiring provider licensing;
• Requiring pre-suit demand letters;
• Increasing criminal penalties;
• Defining certain activities by claims handlers as unfair and deceptive trade practices;
• Establishing limitations on benefits for emergency and non-emergency medical conditions; and
• Creating limitations on attorney's fees.
The 2012 reform required insurers to make rate filings by October 1, 2012, and January 1, 2014, that
provided a minimum 10 percent and 25 percent decrease in PIP premiums, respectively. However, this
reform permitted insurers to file and the Office of Insurance Regulation (OIR) to approve smaller
decreases or increases, if appropriately justified. This resulted in an estimated average statewide rate
decrease in PIP premiums of 13.2 percent, as of January 22, 2014. This legislation also required OIR
to issue a PIP data call and report the results. OIR reported the data call results on January 1, 2015
(see Recent Reports by OIR, below).
PIP Repeal Proposals
The PIP law has been the subject of multiple repeal proposals over the last several years. The House
considered bills in 2013, 2014, 2015, and 2017 that would have repealed PIP and required increased
Bl coverage under the Financial Responsibility Law. 12 A 2016 bill would have repealed PIP, effective
January 1, 2019, but would have maintained current Bl and PD requirements. Except for 2017, the
House bills died in the Insurance & Banking Subcommittee. CS/HB 1063 (2017) passed the House on
April 19, 2017, and died in the Senate Appropriations Subcommittee on Health and Human Services.
Recent Changes
As part of a pair of broader insurance related bills, the Legislature amended the PIP law in 2015 and
2016. HB 165 (2015) clarified the application of the PIP medical reimbursement fee schedule. HB 165
(2015) and HB 659 (2016) each created an additional exemption from a licensure requirement under
the PIP law that permits reimbursement of certain health care clinics for PIP related medical services.
12 Ch. 324, F.S.
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Recent Reports by OIR
PIP Data Call
The 2012 reform, HB 119, required OIR to perform a comprehensive data call regarding PIP. Thirty-five
insurers representing 83.5 percent of the market participated in the data call. This included the top 25
insurers, by market share. The report did not rely on information from several insurers due to data
quality issues. OIR published their analysis of the data call on January 1, 2015. The report provided
detailed information on seven of the eight required elements mentioned in the bill. The bill required the
report to address, at a minimum, the following points:
1. Quantity of personal injury protection claims.
2. Type or nature of claimants.
3. Amount and type of personal injury protection benefits paid and expenses incurred.
4. Type and quantity of, and charges for, medical benefits.
5. Attorney fees related to bringing and defending actions for benefits.
6. Direct earned premiums for personal injury protection coverage, pure loss ratios, pure premiums,
and other information related to premiums and losses.
7. Licensed drivers and accidents.
8. Fraud and enforcement.
The published report did not include detail or analysis regarding item 5. However, the report included
limited information about insurer costs related to defense of claims, which includes attorney fees. OIR
documented and analyzed all other items in detail.
While OIR did not provide a summary of their findings in the body of the report, they summarized their
findings in a press release dated January 5, 2015, 13 as follows:
The findings showed a general decrease in the per claim costs and the overall
number of claims (frequency and severity) for PIP since the implementation of
HB 119 on January 1, 2013. The regional analysis concludes that South Florida
and the Tampa/St. Petersburg regions experienced the most significant
decreases in Florida. However, the data also exposed that other coverages, such
as Bodily Injury (Bl) and Uninsured Motorists (UM}, experienced increases in
both frequency and severity when some benefits covered under PIP moved to
these coverages. These trends are expected to continue over the next year.
Prior to 2012 and the passage of this law, the pervasive nature of PIP fraud and
staged auto accidents created an unsustainable cost trajectory of PIP claims.
The Division of Insurance Fraud (DIF), within the Department of Financial
Services (DFS), is responsible for investigating this type of fraud. According to
the DIF, there has been a substantial decline in PIP fraud since the
implementation of HB 119 with a projected 16% decrease during Fiscal Year
2013 -2014 from Fiscal Year 2011 - 2012.
The Office also compiled a summary of the rate filings effective on or after
January 1, 2011 for the top 25 insurers representing 80.9% of the total personal
auto market in Florida. These filings were segregated into two sets of data: Pre-
HB 119 and Post-HS 119 (to include all filings submitted since, and including, the
first required HB 119 filing due on October 1, 2012). The average statewide
approved rate changes were:
13 FLORIDA OFFICE OF INSURANCE REGULATION, News Releases, Office Releases Personal Injury Protection (PIP) Insurance Data Call
Report, http://www.floir.com/PressReleases/viewmediarelease.aspx?id=2094 (last visited Feb. 1, 2020).
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Pre-HB 119 HB 119
PIP +46.3% -13.6%
Liability (incl. PIP) +20.9% -0.5%
Overall (incl. Comp. & Coll.) +12.9% -0.1%
The report noted many insurers had residual rate need due to deteriorating Pl P
experience prior to the implementation of the bill that were used to offset some of
the expected savings from HB 119. For an individual policyholder, the rate
changes may vary considerably from the statewide averages listed above, taking
into account other factors, such as differences by insurer, by territory, etc.
Overall, there was limited data available to determine the true impact of HB 119;
however, the data call analysis reveals the law has had a major impact on the
personal auto market and changed the trajectory of trends being seen prior to its
enactment.
The report also documented an increase in the frequency of automobile crashes in Florida during 2013
and 2014. Data from the DHSMV shows that this trend continued through 2015. OIR reported that
crash frequency per 100 licensed drivers in Florida had dropped by 13.7 percent from 2004 to 2011. In
2011, there were 1.48 crashes per 100 licensed drivers. For 2015, crash frequency increased over 61
percent to 2.40 crashes per 100 licensed drivers.
OIR Cost Projection on Certain PIP Reform Proposals
In June 2016, OIR contracted with Pinnacle Actuarial Resources (Pinnacle) for actuarial services to
produce a "Review of PIP Legislation." 14 The objective of the review was to "provide a draft and final
report documenting [a] comprehensive study on the effect of HB 119 and the potential impact to
Floridians if the personal injury protection coverage requirements were repealed and replaced with
varying levels of Bodily Injury coverage, or if the current requirements to purchase auto insurance were
completely repealed." Pinnacle is the same vendor that produced the 2012 rate impact analysis that
was required by HB 119 (2012). 15
Pinnacle issued their report on September 13, 2016. 16 They found that:
• The study of HB 119 evaluated sixteen provisions of the bill and concluded that the HB 119 reforms
produced an estimated aggregate savings since enactment in PIP claim costs of 17.5 percent and
an estimated statewide average savings in PIP premiums of 15.1 percent.
• If no-fault insurance were repealed in Florida, there could be an estimated overall reduction in
premiums of 9.6 percent on the liability coverage package or $81 per car annually for the average
driver. For all coverages combined, the estimated premium decrease is 6.7 percent.
• Finally, an analysis of premium impacts if the requirement to purchase auto insurance was repealed
in addition to the repeal of no-fault insurance found there could be an estimated additional reduction
in the PIP repeal savings of 0.2 percent to 0.4 percent.
Pinnacle also provided estimates that considered the outcome if the consumer purchased Medical
Payments (Med Pay) coverage, at either $2,500 or $5,000 coverage limits, and if the Bl limit was
increased by law to $25K/$50K. The following table illustrates the estimated savings in each scenario.
14
DFS OIR RFP 15/16-15, Actuarial Consulting Services for Review of PIP Legislation.
15
In 2012, Pinnacle Actuarial Resources, Inc., was retained by OIR to conduct an independent actuarial study to calculate the savings to
be expected because of HB 119 (2012). S. 15, HB 119 (2012). OIR published the report on August 21, 2012. FLORIDA OFFICE OF
INSURANCE REGULATION, Press Release, http://www.floir.com/PressReleases/viewmediarelease.aspx?id=1956 (last visited Feb. 1, 2020).
16
Pinnacle Actuarial Resources, Inc., Florida Office of Insurance Regulation: Review of Personal Injury Protection Legislation, Sept. 13,
2016, available at https://www.floir.com/siteOocuments/FLOIRReviewPIP20160913.pdf (last visited Feb. 1, 2020).
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Estimated Savings on Auto Insurance Premiums, by Scenario
Situation Coverage Type Require Bl at $10K/$20K Require Bl at $25K/$50K
Liabilities, only 17 9.6% 8.1%
PIP repeal
Overall 6.7% 5.6%
PIP repeal and Liabilities, only 4.9% 3.4%
$2,500 Med Pay Overall 3.4% 2.4%
PIP repeal and Liabilities, only 1.0% -0.5%
$5,000 Med Pay Overall 0.7% -0.3%
Overview of Colorado PIP Insurance Reform
Colorado had a no-fault auto insurance law from 1974 to 2003. In reaction to increasing costs of auto
insurance, including a 38 percent increase in auto premiums from 1992 to 2002, Colorado repealed
their no-fault law, effective July 2003. Colorado now handles crash liabilities through the tort system.
Under the tort system, the person at fault in an auto crash is responsible for paying the losses of the
victim and the victim enforces their rights in civil court.
Prior to the change, Colorado had the ninth highest premium per insured auto in the nation. For 2014
(the most current year available), Colorado had the 2P1 highest auto premium in the nation. According
to the Colorado Legislative Council Staff, auto premiums in the state as of January 2007 had
decreased ten to 14 percent following the elimination of the no-fault system. 18
In comparison, according to data from the National Association of Insurance Commissioners and
reported by the Insurance Information Institute, from 2006 through 2014, Florida has consistently
ranked fifth in the nation for highest average auto insurance cost per vehicle. Florida ranked as low as
sixth in 2009 and 2014 and as high as fourth in 2008 and 2012, with the remaining years being ranked
fifth. 19
Colorado Florida
Percent Percent
Average Auto National Average Auto National
Change over Change over
Premium Cost Rank Premium Cost Rank
2002 Cost 2003 Cost
2002 $921.00 9 n/a n/a
2003 $923.00 12 $1,018.00 5
2004 $850.00 18 -7.7% $1,062.00 5 4.3%
2005 $829.00 21 -10.0% $1,064.00 6 4.5%
2006 $785.00 23 -14.8% $1,069.00 5 5.0%
2007 $738.00 24 -19.9% $1,043.00 5 2.5%
2008 $728.67 26 -20.9% $1,054.89 5 3.6%
2009 $741.28 22 -19.5% $1,006.20 6 -1.2%
2010 $730.42 25 -20.7% $1,037.36 5 1.9%
2011 $723.61 27 -21.4% $1,090.58 5 7.1%
2012 $737.95 25 -19.9% $1,128.53 4 10.9%
2013 $777.95 23 -15.5% $1,143.73 5 12.4%
2014 $821.19 21 -10.8% $1,140.84 6 12.1%
17 "Liabilities, only" includes Bodily Injury, Personal Injury Protection, Uninsured Motorist, and Property Damage coverages.
18 Colorado Legislative Council, Issue Brief Number 07-01, Automobile Insurance in Colorado, Jan. 2007.
19 INSURANCE INFORMATION INSTITUTE, Auto Insurance, Costs and Expenditures, http://www.iii.org/table-archive/2124 7 (last visited Feb. 1,
2020).
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Private Passenger Auto Insurance Requirement Comparison
Colorado Florida
$10,000 medical, disability and funeral
No-fault/PIP None Non-emergency medical limited to $2,500
Mandatory for vehicle registration
$10,000 per person,
$25,000 per person, $20,000 per accident, or
Bodily Injury or
$50,000 per accident $30,000 single limit
Death
Mandatory for vehicle registration Mandatory, may be secured post-
reaistration
$15,000 $10,000
Property Damage
Mandatory for vehicle reaistration Mandatory for vehicle reaistration
Uninsured/Under- Mandatory offer at Bl/PD limits, written Mandatory coverage at Bl limits, if Bl
insured Motorist rejection required purchased; written rejection required
$5,000 mandatory offer, written rejection
Medical Payment Optional
required
Impacts of the Colorado Reform
In February 2008, the Office of the Governor of Colorado published a report that studied the impacts of
the repeal of the no-fault system on auto insurance, health insurance, the trauma system, Medicaid and
Colorado Indigent Care Program, and consumers. 20 The report's findings include the following:
AUTO INSURANCE
• For the eight largest auto insurers in Colorado by market share, average auto insurance premiums
declined 35 percent from July 2003 to December 2007.
• The average premium decrease attributable to the elimination of PIP was 22 percent immediately
following the repeal of no-fault. 21
• Colorado's national rank for average annual auto insurance premium per vehicle fell following the
repeal.
• Premiums for each of the non-PIP auto coverage types increased, except comprehensive coverage
(no baseline data was available for medical payment coverage, so the effect was unknown).
• Ninety-nine percent of Colorado auto insurers were offering medical payment coverage post-reform
and 31 percent of consumers were purchasing this coverage.
HEAL TH INSURANCE
• Based on the responses of health insurers (totaling 1.57 million policyholders) to a 2003 survey by
the Colorado Division of Insurance, health insurance premiums increased by an estimated 1.6
percent.
TRAUMA SYSTEM
Hospitals
• The report could not quantify the impact on acute care hospital reimbursements for emergency and
outpatient services.
• Comparing payments for 2002 to those for 2006 for inpatient care of auto accident patients at acute
care hospitals, the percentage of payments from private insurance, which includes both auto and
health insurance, decreased by about one third (75.4 percent for 2002 and 49.3 percent for 2006).
20 BBC Research & Consulting, Auto Insurance/Trauma System Study, 5, Feb. 2008.
21
Information in Issue Brief Number 07-01 and the Auto Insurance/Trauma System Study are seemingly at odds regarding the change
in auto premiums post-reform. The reason for the difference may be that Issue Brief Number 07-01 is referencing the change in
average premiums for Colorado overall at January 2007 and the Auto Insurance/Trauma System Study is only focused on the eight
largest auto insurers in Colorado at December 2007.
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The proportion of payment by all other payer types increased. The greatest increase was in self-
payment (13.4 percent in 2002 and 27.2 percent in 2006). Self-payment may also include self-filing
of insurance. Medicare showed the next highest increase (2.9 percent in 2002 and 7.7 percent in
2006).
o A similar pattern was seen in all inpatient cases; however, the amount of the decrease in the
proportion of private insurance payments was much less (51.1 percent for 2002 and 46.6
percent for 2006).
• The reimbursement rate (percent of charge reimbursed) for acute care hospital inpatient auto crash
patients fell from 60 percent to 36 percent for hospitals that responded to a survey. The report
asserted the cause of the reduction to be more patients without insurance and, for patients with
insurance, more payments based on negotiated rates (non-PIP insurers allegedly rely more on
negotiated rates).
Emergency Medical First Responders
• Based on a small sample of first responders, i.e., those that could provide detailed billing and
reimbursement information, non-reimbursed charges increased 37 percent for 2006 over 2002.
Governmental first responders indicated that they made up deficits related to lower patient
care/transfer reimbursements from non-user sources such as taxes and general fund transfers.
• The average number of days to collect first responder payment on auto crash related cases
increased from 74 days in 2002 to 144 days in 2006.
MEDICAID AND COLORADO INDIGENT CARE PROGRAM
• Medicaid - the Medicaid program's exposure to auto crash claims increased, but the report could
not quantify the cost.
• Colorado Indigent Care Program - while exposure was increased, caps on the federal and state
portions of the program's funding limited increases in expenditures. This increased unreimbursed
provider charges.
Effect of the Bill
Effective January 1, 2021, the bill repeals portions of the Florida Motor Vehicle No-Fault Law (PIP).
However, it provides for continued enforcement of suspensions, 22 revocations, and anti-fraud measures
for actions occurring under the No-Fault Law.
Changes to Financial Responsibility
Beginning January 1, 2021, proof of compliance with the Financial Responsibility Law (Bl coverage) is
required at the time of registration of a motor vehicle, 23 instead of post-registration or at the time of an
accident as is currently required. It increases the minimum Bl coverage limits from $10,000 per person
and $20,000 per incident to $25,000 per person and $50,000 per incident. The minimum PD coverage
limit is not changed. 24 This results in required 25/50/10 coverage in most instances.
The bill increases minimum security limits for self-insurance of financial responsibility requirements in
the following ways:
• Certificate of deposit for individuals and businesses: 25
o increased from $30,000 per vehicle (max. $120,000) to $60,000 per vehicle (max. $240,000). In
addition, such person must maintain motor vehicle liability policy in excess of the certificate of
22
The bill also expands DHSMV's authority to suspend the registrations and licenses of drivers who fail to maintain Bl when required
under ss. 324.023 (DUI conviction), 324.032 (for-hire transportation), 627.7415 (commercial motor vehicles), and 627.742, F.S. (non-
public sector buses), and who fail to carry proof of Bl when operating a motor vehicle.
23
Proof of compliance with the Financial Responsibility Law does not change for motorcycles.
24
The allowed combined coverage limit of $30,000 for property damage and bodily injury is increased to $60,000.
25 Proof of the certificate of deposit maintained in a financial institution insured by the Federal Deposit Insurance Corporation or the
National Credit Union Administration must be submitted annually to DHSMV.
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deposit providing bodily injury coverage of $125,000, per person, $250,000, per accident, and
$50,000 for property damage, or $300,000, combined property damage and bodily injury.
• Certificate of self-insurance - minimum unencumbered net worth increases from:
o For individuals - $40,000 to $100,000, and
o For businesses - $40,000 for the first vehicle and $20,000 for each additional vehicle to
$100,000 and $50,000, respectively. 26
Garage Liability Insurance - The bill increases minimum security limits for garage liability insurance
from $25,000 combined single limit for bodily injury and property damage to $60,000 combined.
For-Hire Passenger Transportation Vehicle - no change; current 125/250/50.
Commercial Motor Vehicles - minimum combined bodily injury and property damage coverage:
• For vehicles between 26,000 pounds and 35,000 pounds - increases from $50,000 per
occurrence to $60,000 per occurrence,
• For vehicles 35,000 pounds or more but less than 44,000 pounds - no change ($120,000 per
occurrence), and
• For vehicles between 44,000 pounds or more - no change ($300,000 per occurrence).
Non-public Sector Buses - no change; current 100/300/50 or combined 300.
Transportation Network Companies - no change; current 50/100/25 when logged on, but no rider, and
$1 million when connected to a rider.
Transition of Coverages
The bill provides for the transition of motor vehicle insurance policies into compliance with the changes
made by the bill if the policies were issued prior to January 1, 2021, but are in force on that date. Those
issued on or after January 1, 2021, are prohibited from including PIP coverage. In force policies that
were issued in compliance with law at the time of issuance are deemed to meet the new requirements
until renewed, nonrenewed, or canceled. Insurers are required to allow policyholders with PIP coverage
to obtain Bl coverage that complies with the changes made by the bill without charge other than
changes in premium due. Payment of the change in premium and refunds, if either result from the
change in coverage, depending upon the actual coverages on the policy, are required.
Notice Requirements
Insurers are required to provide a notice, by September 1, 2020, informing motor vehicle policyholders
that effective January 1, 2021:
• The Florida Motor Vehicle No-Fault Law (PIP) is repealed January 1, 2021,
• The policyholder is no longer required to carry PIP coverage,
• PIP is no longer available for purchase,
• New or renewal coverage will not include PIP,
• New Bl requirements begin on January 1, 2021, which are 25/50/10,
• That insurers must offer medical payments coverage with selectable limits of $5,000 and $10,000,
or at limits greater than $5,000; optional deductible of $500; death benefit of $5,000; and describe
the nature of medical payments coverage,
• A policyholder may obtain uninsured/underinsured motorist coverage to protect themselves and
their insureds from damages caused by an uninsured/underinsured driver,
• Policies that comply with the requirements of law at the time of issue are deemed to meet the new
requirements, until the policy is renewed, nonrenewed, or canceled,
26
In the alternative, businesses may qualify for self-insurance by maintaining a sufficient net worth determined annually by DHSMV by
rule. S. 324.171, F.S.
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• They may change their policy to comply with the new requirements, and
• They may contact the name and telephone number provided in the notice with questions.
The notice is also required to state that PIP provides medical payments coverage for the policyholder,
passengers, and resident relatives, 27 while Bl protects the insured against loss if they are at fault in an
accident and are legally responsible for bodily injuries or deaths of others. The notice is subject to
approval by OIR.
Optional Medical Payments Coverage
The bill requires motor vehicle insurers to offer medical payments coverage before issuing an initial
policy. Unless the insured rejects medical payments coverage in writing, medical payments coverage is
deemed included with $10,000 in coverage.
The insurer is required to offer:
• A $5,000 coverage limit,
• A $10,000 coverage limit, or
• Coverage limits exceeding $5,000.
The insurer is allowed to offer medical payments coverage deductibles from zero to $500. The insurer
must notify the policyholder annually of the availability of medical payments coverage.
The bill establishes insurer reserve requirements tied to medical payments coverage claims. Medical
payments coverage benefits are not a lien on personal recoveries associated with the claim event, nor
does the insurer have a right to sue a recipient of medical coverage payments unless the payments
were the result of fraud. The insurer may claim subrogation rights against persons that are not insured
on the policy, but the right is subordinate to the insured's own right against such person. The insurer
may recover from an insured who receives full payment for damages that impairs the insurer's
subrogation rights in specified circumstances. Death benefits may not be subrogated.
Named Driver Exclusion
The bill provides that resident relatives must be included in coverage provided by motor vehicle liability
policies, but authorizes insurers and policyholders to exclude named drivers, including a resident
relative, from a private passenger motor vehicle insurance policy. An individual is not covered for
damages that occur while operating a motor vehicle that is insured under a policy that excludes the
individual by name. The bill prohibits exclusion for periods when the excluded named driver is not
operating a motor vehicle covered under the policy (e.g., when they are a passenger in the vehicle), if
the exclusion is unfairly discriminatory by law, as determined by the OIR, or if the exclusion is
inconsistent with the underwriting guidelines filed by the insurer with OIR. The exclusion of a named
driver is contingent upon the written consent of a policyholder. The bill requires insurers to list excluded
named drivers on the policy's declarations page or on a policy endorsement. Individuals who are
named as excluded drivers on a particular policy may secure their insurance obligations under another
policy.
Newly Acquired and Temporary Substitute Motor Vehicles
The bill allows insurers to exclude coverage of motor vehicles not named on a policy if the vehicle does
not qualify as a "newly acquired vehicle" 28 or "temporary substitute" 29 vehicle and was owned by the
insured or given to them for their use for more than 30 days prior to the claim event.
27 A "resident relative" is defined as "a person related to a named insured by any degree by blood, marriage, or adoption, including a
ward or foster child, who usually makes her or his home in the same family unit as the named insured, whether or not he or she is
temporarily living elsewhere."
28 "Newly acquired vehicle" means a vehicle owned by a named insured or resident relative of the named insured which was acquired
within 30 days before an accident.
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Rate Filings
Initial insurer rate filings for motor vehicle liability submitted to OIR on or after January 1, 2021, are
required to be based on the new requirements and may only be approved through the file and use
approval process.
Tort Liability
By repealing PIP, the bill removes the limitation on tort liability provided under PIP. When drivers are at
fault in an accident, they are fully liable for any damages they cause. Due to this change, the bill
removes the conditional exclusion 30 of tort damages for pain, suffering, mental anguish, and
inconvenience. Beginning January 1, 2021, the bill makes uninsured motorist insurers subject to tort
damages for pain, suffering, disability or physical impairment, disfigurement, mental anguish,
inconvenience, and the loss of capacity for the enjoyment of life experienced in the past and to be
experienced in the future.
Appropriation
The bill appropriates $83,651 from the Insurance Regulatory Trust Fund to OIR to implement changes
made by the bill.
B. SECTION DIRECTORY:
Section 1: Repeals ss. 627.730, 627.731, 627.7311, 627.732, 627.733, 627.734, 627.736, 627.737,
627.739, 627.7401, 627.7403, and 627.7405, F.S., relating to Florida Motor Vehicle No-
Fault Law.
Section 2: Repeals s. 627.7407, F.S., relating to application of the Florida Motor Vehicle No-Fault
Law.
Section 3: Amends s. 316.646, F.S., relating to security required; proof of security and display
thereof.
Section 4: Amends s. 318.18, F.S., relating to amount of penalties.
Section 5: Amends s. 320.02, F.S., relating to registration required; application for registration; forms.
Section 6: Amends s. 320.0609, F.S., relating to transfer and exchange of registration license plates;
transfer fee.
Section 7: Amends s. 320.27, F.S., relating to motor vehicle dealers.
Section 8: Amends s. 320.771, F.S., relating to license required of recreational vehicle dealers.
Section 9: Amends s. 322.251, F.S., relating to notice of cancellation, suspension, revocation, or
disqualification of license.
Section 10: Amends s. 322.34, F.S., relating to driving while license suspended, revoked, canceled, or
disqualified.
Section 11: Amends s. 324.011, F.S., relating to purpose of chapter.
Section 12: Amends s. 324.021, F.S., relating to definitions; minimum insurance required.
Section 13: Amends s. 324.022, F.S., relating to financial responsibility for property damage.
Section 14: Amends s. 324.0221, F.S., relating to reports by insurers to the department; suspension of
driver license and vehicle registrations; reinstatement.
Section 15: Creates s. 324.0222, F.S., relating to application of suspensions for failure to maintain
security; reinstatement.
29
"Temporary substitute vehicle" means any motor vehicle as defined ins. 320.01 (1) which is not owned by the named insured and
which is temporarily used with the permission of the owner as a substitute for the owned motor vehicle designated on the policy when
the owned vehicle is withdrawn from normal use because of breakdown, repair, servicing, loss, or destruction.
30 An uninsured motorist coverage insurer is liable for tort damages for pain, suffering, mental anguish, and inconvenience if the
damages exceed the "verbal threshold" provided ins. 627.737(2)(a)-(d), F.S. The verbal threshold allows a plaintiff to recover such
damages if the injury or disease consists in whole or in part of:
• Significant and permanent loss of an important bodily function.
• Permanent injury within a reasonable degree of medical probability, other than scarring or disfigurement.
• Significant and permanent scarring or disfigurement.
• Death.
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Section 16: Amends s. 324.023, F.S., relating to financial responsibility for bodily injury or death.
Section 17: Amends s. 324.031, F.S., relating to manner of proving financial responsibility.
Section 18: Amends s. 324.032, F.S., relating to manner of proving financial responsibility; for-hire
passenger transportation vehicles.
Section 19: Amends s. 324.051, F.S., relating to reports of crashes; suspensions of licenses and
registrations.
Section 20: Amends s. 324.071, F.S., relating to reinstatement; renewal of license; reinstatement fee.
Section 21: Amends s. 324.091, F.S., relating to notice to department; notice to insurer.
Section 22: Amends s. 324.151, F.S., relating to motor vehicle liability policies; required provisions.
Section 23: Amends s. 324.161, F.S., relating to proof of financial responsibility; deposit.
Section 24: Amends s. 324.171, F.S., relating to self-insurer.
Section 25: Amends s. 324.251, F.S., relating to short title.
Section 26: Amends s. 400.9905, F.S., relating to definitions.
Section 27: Amends s. 400.991, F.S., relating to license requirements; background screenings;
prohibitions.
Section 28: Amends s. 400.9935, F.S., relating to clinic responsibilities.
Section 29: Amends s. 409.901, F.S., relating to definitions.
Section 30: Amends s. 409.910, F.S., relating to responsibility for payments on behalf of Medicaid-
eligible persons when other parties are liable.
Section 31: Amends s. 456.057, F.S., relating to ownership and control of patient records; report or
copies of records to be furnished; disclosure of information.
Section 32: Amends s. 456.072, F.S., grounds for discipline; penalties; enforcement.
Section 33: Amends s. 626.9541, F.S., relating to unfair methods of competition and unfair or
deceptive acts or practices defined.
Section 34: Amends s. 626.989, F.S., relating to investigation by department or Division of
Investigative and Forensic Services; compliance; immunity; confidential information;
reports to division; division investigator's power of arrest.
Section 35: Amends s. 627.06501, F.S., relating to insurance discounts for certain persons completing
driver improvement course.
Section 36: Amends s. 627.0651, F.S., relating to making and use of rates for motor vehicle insurance.
Section 37: Amends s. 627.0652, F.S., relating to insurance discounts for certain persons completing
safety course.
Section 38: Amends s. 627.0653, F.S., relating to insurance discounts for specified motor vehicle
equipment.
Section 39: Amends s. 627.4132, F.S., relating to stacking of coverages prohibited.
Section 40: Amends s. 627.7263, F.S., relating to rental and leasing driver's insurance to be primary;
exception.
Section 41: Creates s. 627.7265, F.S., relating to motor vehicle insurance; medical payments
coverage.
Section 42: Amends s. 627.727, F.S., relating to motor vehicle insurance; uninsured and underinsured
vehicle coverage; insolvent insurer protection.
Section 43: Amends s. 627.7275, F.S., relating to motor vehicle liability.
Section 44: Creates s. 627.7278, F.S., relating to applicability and construction; notice to
policyholders.
Section 45: Amends s. 627.728, F.S., relating to cancellations; nonrenewals.
Section 46: Amends s. 627.7295, F.S., relating to motor vehicle insurance contracts.
Section 47: Amends s. 627.7415, F.S., relating to commercial motor vehicles; additional liability
insurance coverage.
Section 48: Creates s. 627.747, F.S., relating to named driver exclusion.
Section 49: Effective upon becoming law, amends s. 627.748, F.S., relating to transportation network
companies.
Section 50: Amends s. 627.749, F.S., relating to autonomous vehicles; insurance requirements.
Section 51: Amends s. 627.8405, F.S., relating to prohibited acts; financing companies.
Section 52: Amends s. 627.915, F.S., relating to insurer experience reporting.
Section 53: Amends s. 628.909, F.S., relating to applicability of other laws.
Section 54: Amends s. 705.184, F.S., relating to derelict or abandoned motor vehicles on the premises
of public-use airports.
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Section 55: Amends s. 713.78, F.S., relating to liens for recovering, towing, or storing vehicles and
vessels.
Section 56: Amends s. 817.234, F.S., relating to false and fraudulent insurance claims.
Section 57: Makes an appropriation.
Section 58: Provides an effective date of January 1, 2021, except as otherwise expressly provided by
the bill.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
Indeterminate. Premium tax revenues may be affected to the extent that lost revenues associated
with PIP premiums are offset by changes in revenues associated with expected increases in Bl
premiums.
2. Expenditures:
Indeterminate. Hospitals may experience increased costs to the extent that medical
reimbursements previously funded through PIP are shifted to secondary coverages or are lost
through lack of secondary coverage. OIR is required to approve new forms and rates related to
medical payments coverage and will receive filings to implement the coverage changes made by
the bill. The bill appropriates $83.651 to OIR for this purpose.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
Indeterminate. Local governments are likely to achieve savings on motor vehicle insurance,
depending upon the amount of coverage secured. Local governments operating hospitals may
experience increased costs to the extent that medical reimbursements previously funded through
PIP are shifted to secondary coverages or are lost through lack of secondary coverage.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate. Motor vehicle insurers are required to file new forms and rates and adjust their practices
consistent with the changes made by the bill. Individuals and businesses must secure coverage that
complies with these changes, as well.
In a September 2016 report from OIR, Pinnacle Actuarial Resources estimated the premium impacts of
PIP repeal on consumers that carry a complete set of automobile insurance coverages. 31 Pinnacle also
provided estimates that considered the outcome if the Bl limit increased by law to 25/50. They
estimated that consumers might save 8.1 percent in liabilities only32 premiums and 5.6 percent in
overall motor vehicle premiums or $68.12 per car annually. Pinnacle also projected some negative
impact on health care providers and health care insurance premiums due to the elimination of PIP.
D. FISCAL COMMENTS:
None.
31
Supra note 16 at app. 3, p. 1 (p. 272).
32 "Liabilities, only" includes Bodily Injury, Personal Injury Protection, Uninsured Motorist, and Property Damage coverages.
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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 neither authorizes nor requires administrative rulemaking, but any rules that reference personal
injury protection or restate bodily injury coverage requirements that are changed by the bill may require
revision.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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F L O R D A H O U S E 0 F REPRESENTATIVES
HB 771 2020
1 A bill to be entitled
2 An act relating to motor vehicle insurance; repealing
3 ss. 627. 730, 627. 731, 627. 7311, 627. 732, 627. 733,
4 627.734, 627.736, 627.737, 627.739, 627.7401,
5 627.7403, and 627.7405, F.S., which comprise the
6 Florida Motor Vehicle No-Fault Law; repealing s.
7 627.7407, F.S., relating to application of the Florida
8 Motor Vehicle No-Fault Law; amending s. 316.646, F.S.;
9 revising a requirement for proof of security on a
10 motor vehicle and the applicability of the
11 requirement; amending s. 318.18, F.S.; conforming a
12 provision to changes made by the act; amending s.
13 320.02, F.S.; revising the motor vehicle insurance
14 coverages that an applicant must show to register
15 certain vehicles with the Department of Highway Safety
16 and Motor Vehicles; conforming a provision to changes
17 made by the act; revising construction; amending s.
18 320.0609, F.S.; conforming a provision to changes made
19 by the act; amending s. 320.27, F.S.; defining the
20 term "garage liability insurance"; revising garage
21 liability insurance requirements for motor vehicle
22 dealer applicants; conforming a provision to changes
23 made by the act; amending s. 320.771, F.S.; revising
24 garage liability insurance requirements for
25 recreational vehicle dealer license applicants;
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26 amending ss. 322.251 and 322.34, F.S.; conforming
27 provisions to changes made by the act; amending s.
28 324.011, F.S.; revising legislative intent; amending
29 s. 324.021, F.S.; revising definitions of the terms
30 "motor vehicle" and "proof of financial
31 responsibility"; revising minimum coverage
32 requirements for proof of financial responsibility for
33 specified motor vehicles; defining the term "for-hire
34 passenger transportation vehicle"; conforming
35 provisions to changes made by the act; amending s.
36 324.022, F.S.; revising minimum liability coverage
37 requirements for motor vehicle owners or operators;
38 revising authorized methods for meeting such
39 requirements; deleting a provision relating to an
40 insurer's duty to defend certain claims; revising the
41 vehicles that are excluded from the definition of the
42 term "motor vehicle"; providing security requirements
43 for certain excluded vehicles; conforming provisions
44 to changes made by the act; conforming cross-
45 references; amending s. 324.0221, F.S.; revising
46 coverages that subject a policy to certain insurer
47 reporting and notice requirements; conforming
48 provisions to changes made by the act; creating s.
49 324.0222, F.S.; providing that driver license or
50 registration suspensions for failure to maintain
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51 required security which were in effect before a
52 specified date remain in full force and effect;
53 providing that such suspended licenses or
54 registrations may be reinstated as provided in a
55 specified section; amending s. 324.023, F.S.;
56 conforming cross-references; amending s. 324.031,
57 F.S.; specifying a method of proving financial
58 responsibility; revising the amount of a certificate
59 of deposit required to elect a certain method of proof
60 of financial responsibility; revising excess liability
61 coverage requirements for a person electing to use
62 such method; amending s. 324.032, F.S.; revising
63 financial responsibility requirements for owners or
64 lessees of for-hire passenger transportation vehicles;
65 amending ss. 324.051, 324.071, and 324.091, F.S.;
66 making technical changes; amending s. 324.151, F.S.;
67 revising requirements for motor vehicle liability
68 insurance policies relating to coverage, and exclusion
69 from coverage, for certain drivers and vehicles;
70 defining terms; conforming provisions to changes made
71 by the act; making technical changes; amending s.
72 324.161, F.S.; revising requirements for a certificate
73 of deposit that is required if a person elects a
74 certain method of proving financial responsibility;
75 amending s. 324.171, F.S.; revising the minimum net
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76 worth requirements to qualify certain persons as self-
77 insurers; conforming provisions to changes made by the
78 act; amending s. 324.251, F.S.; revising the short
79 title and an effective date; amending s. 400.9905,
80 F. S.; revising the definition of the term "clinic";
81 amending ss. 400.991 and 400.9935, F.S.; conforming
82 provisions to changes made by the act; amending s.
83 409.901, F.S.; revising the definition of the term
84 "third-party benefit"; amending s. 409.910, F.S.;
85 revising the definition of the term "medical
86 coverage"; amending s. 456.057, F.S.; conforming a
87 cross-reference; amending s. 456.072, F.S.; revising
88 specified grounds for discipline for certain health
89 professions; amending s. 626.9541, F.S.; conforming a
90 provision to changes made by the act; revising the
91 type of insurance coverage applicable to a certain
92 prohibited act; amending s. 626.989, F.S.; revising
93 the definition of the term "fraudulent insurance act";
94 amending s. 627.06501, F.S.; revising coverages that
95 may provide for a reduction in motor vehicle insurance
96 policy premium charges under certain circumstances;
97 amending s. 627.0651, F.S.; specifying requirements
98 for initial rate filings for motor vehicle liability
99 policies submitted to the Office of Insurance
100 Regulation beginning on a specified date; amending s.
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101 627.0652, F.S.; revising coverages that must provide a
102 premium charge reduction under certain circumstances;
103 amending s. 627.0653, F.S.; revising coverages subject
104 to premium discounts for specified motor vehicle
105 equipment; amending s. 627.4132, F.S.; revising the
106 coverages of a motor vehicle policy which are subject
107 to a stacking prohibition; amending s. 627.7263, F.S.;
108 revising coverages that are deemed primary, except
109 under certain circumstances, for the lessor of a motor
110 vehicle for lease or rent; revising a notice that is
111 required if the lessee's coverage is to be primary;
112 creating s. 627.7265, F.S.; specifying persons whom
113 medical payments coverage must protect; specifying the
114 minimum medical expense and death benefit limits;
115 specifying coverage options an insurer must and may
116 offer; providing that motor vehicle liability
117 insurance policies are deemed to have medical payments
118 coverage at a certain limit and with no deductible
119 unless rejected or modified by the policyholder by
120 certain means; specifying requirements for certain
121 forms approved by the office; requiring insurers to
122 provide policyholders with a certain annual notice;
123 providing construction relating to limits on certain
124 other coverages; requiring insurers, upon receiving
125 certain notice of an accident, to hold a specified
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12 6 reserve for certain purposes for a certain timeframe;
127 providing that the reserve requirement does not
128 require insurers to establish a claim reserve for
129 accounting purposes; specifying that an insurer
130 providing medical payments coverage benefits may not
131 have a lien on a certain recovery and may not have a
132 ce~tain cause of action; authorizing insurers to
133 include policy provisions allowing for subrogation,
134 under certain circumstances, for medical payments
135 benefits paid; providing construction; specifying a
136 requirement for an insured for repayment of medical
137 payments benefits under certain circumstances;
138 prohibiting insurers from including policy provisions
139 allowing for subrogation for death benefits paid;
140 amending s. 627.727, F.S.; revising the legal
141 liability of an uninsured motorist coverage insurer;
142 conforming provisions to changes made by the act;
143 amending s. 627.7275, F.S.; revising required
144 coverages for a motor vehicle insurance policy;
145 conforming provisions to changes made by the act;
146 creating s. 627.7278, F.S.; defining the term "minimum
147 security requirements"; providing a prohibition,
148 requirements, applicability, and construction relating
149 to motor vehicle insurance policies as of a certain
150 date; requiring insurers to allow certain insureds to
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151 make certain coverage changes, subject to certain
152 conditions; requiring an insurer to provide, by a
153 specified date, a specified notice to policyholders
154 relating to requirements under the act; amending s.
155 627.728, F.S.; conforming a provision to changes made
156 by the act; amending s. 627.7295, F.S.; revising the
157 definitions of the terms "policy" and "binder";
158 revising the coverages of a motor vehicle insurance
159 policy for which a licensed general lines agent may
160 charge a specified fee; conforming a provision to
161 changes made by the act; amending s. 627.7415, F.S.;
162 revising additional liability insurance requirements
163 for commercial motor vehicles; creating s. 627.747,
164 F.S.; providing that private passenger motor vehicle
165 policies may exclude certain identified individuals
166 from specified coverages under certain circumstances;
167 providing that such policies may not exclude coverage
168 under certain circumstances; amending s. 627.748,
169 F.S.; revising insurance requirements for
170 transportation network company drivers; conforming
171 provisions to changes made by the act; amending s.
172 627.749, F.S.; conforming a provision to changes made
173 by the act; amending s. 627.8405, F.S.; revising
174 coverages in a policy sold in combination with an
175 accidental death and dismemberment policy which a
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17 6 premium finance company may not finance; revising
177 rulemaking authority of the Financial Services
178 Commission; amending ss. 627.915, 628.909, 705.184,
179 and 713.78, F.S.; conforming provisions to changes
180 made by the act; amending s. 817.234, F.S.; revising
181 coverages that are the basis of specified prohibited
182 false and fraudulent insurance claims; conforming
183 provisions to changes made by the act; providing an
184 appropriation; providing effective dates.
185
186 Be It Enacted by the Legislature of the State of Florida:
187
188 Section 1. Sections 627. 730, 627. 731, 627. 7311, 627. 732,
189 627. 733, 627. 734, 627. 736, 627. 737, 627. 739, 627. 7401, 627. 7403,
190 and 627.7405, Florida Statutes, are repealed.
191 Section 2. Section 627.7407, Florida Statutes, is
192 repealed.
193 Section 3. Subsection (1) of section 316.646, Florida
194 Statutes, is amended to read:
195 316.646 Security required; proof of security and display
196 thereof.-
197 (1) Any person required bys. 324.022 to maintain
198 liability security for property damageL liability security,
199 required bys. 324.023 to fflaintain liability security for bodily
200 injuryL or death, or required bys. 627.733 to fflaintain personal
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201 injury protection security on a motor vehicle shall have in his
202 or her immediate possession at all times while operating such
203 motor vehicle proper proof of maintenance of the required
204 security required under s. 324.021(7).
205 (a) Such proof must shall be in a uniform paper or
206 electronic format, as prescribed by the department, a valid
207 insurance policy, an insurance policy binder, a certificate of
208 insurance, or such other proof as may be prescribed by the
209 department.
210 (b)l. The act of presenting to a law enforcement officer
211 an electronic device displaying proof of insurance in an
212 electronic format does not constitute consent for the officer to
213 access any information on the device other than the displayed
214 proof of insurance.
215 2. The person who presents the device to the officer
216 assumes the liability for any resulting damage to the device.
217 Section 4. Paragraph (b) of subsection (2) of section
218 318.18, Florida Statutes, is amended to read:
219 318.18 Amount of penalties.-The penalties required for a
220 noncriminal disposition pursuant to s. 318.14 or a criminal
221 offense listed ins. 318.17 are as follows:
222 (2) Thirty dollars for all nonmoving traffic violations
223 and:
224 (b) For all violations of ss. 320.0605, 320.07(1),
225 322.065, and 322.15(1). A Afty- person who is cited for a
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226 violation of s. 320.07(1) shall be charged a delinquent fee
227 pursuant to s. 320.07(4).
228 1. If a person who is cited for a violation of s. 320.0605
229 ors. 320.07 can show proof of having a valid registration at
230 the time of arrest, the clerk of the court may dismiss the case
231 and may assess a dismissal fee of up to $10, from which the
232 clerk shall remit $2.50 to the Department of Revenue for deposit
233 into the General Revenue Fund. A person who finds it impossible
234 or impractical to obtain a valid registration certificate must
235 submit an affidavit detailing the reasons for the impossibility
236 or impracticality. The reasons may include, but are not limited
237 to, the fact that the vehicle was sold, stolen, or destroyed;
238 that the state in which the vehicle is registered does not issue
239 a certificate of registration; or that the vehicle is owned by
240 another person.
241 2. If a person who is cited for a violation of s. 322.03,
242 s. 322.065, ors. 322.15 can show a driver license issued to him
243 or her and valid at the time of arrest, the clerk of the court
244 may dismiss the case and may assess a dismissal fee of up to
245 $10, from which the clerk shall remit $2.50 to the Department of
246 Revenue for deposit into the General Revenue Fund.
247 3. If a person who is cited for a violation of s. 316.646
248 can show proof of security as required bys. 324.021(7) e-:-
249 627.733, issued to the person and valid at the time of arrest,
250 the clerk of the court may dismiss the case and may assess a
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251 dismissal fee of up to $10, from which the clerk shall remit
252 $2.50 to the Department of Revenue for deposit into the General
253 Revenue Fund. A person who finds it impossible or impractical to
254 obtain proof of security must submit an affidavit detailing the
255 reasons for the impracticality. The reasons may include, but are
256 not limited to, the fact that the vehicle has since been sold,
257 stolen, or destroyed; that the owner or registrant of the
258 vehicle is not required bys. 627.733 to fflaintain personal
259 injury protection insurance; or that the vehicle is owned by
260 another person.
261 Section 5. Paragraphs (a) and (d) of subsection (5) of
262 section 320.02, Florida Statutes, are amended to read:
263 320.02 Registration required; application for
264 registration; forms.-
265 (5) (a) Proof that bodily injury liability coverage and
266 property damage liability coverage personal injury protection
267 benefits have been purchased if required under s. 324.022, s.
268 324.032, ors. 627.742 s. 627.733, that property dafflage
269 liability coverage has been purchased as required under s.
270 324.022, that bodily injury liability or death coverage has been
271 purchased if required under s. 324.023, and that combined bodily
272 liability insurance and property damage liability insurance have
273 been purchased if required under s. 627.7415 must shall be
274 provided in the manner prescribed by law by the applicant at the
275 time of application for registration of any motor vehicle that
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276 is subject to such requirements. The issuing agent may not shall
277 refuse to issue registration if such proof of purchase is not
278 provided. Insurers shall furnish uniform proof-of-purchase cards
279 in a paper or electronic format in a form prescribed by the
280 department and include the name of the insured's insurance
281 company, the coverage identification number, and the make, year,
282 and vehicle identification number of the vehicle insured. The
283 card must contain a statement notifying the applicant of the
284 penalty specified under s. 316.646(4). The card or insurance
285 policy, insurance policy binder, or certificate of insurance or
286 a photocopy of any of these; an affidavit containing the name of
287 the insured's insurance company, the insured's policy number,
288 and the make and year of the vehicle insured; or such other
289 proof as may be prescribed by the department constitutes shall
290 constitute sufficient proof of purchase. If an affidavit is
291 provided as proof, it must be in substantially the following
292 form:
293
294 Under penalty of perjury, I ... (Name of insured) ... do hereby
295 certify that I have ... (bodily injury liability and Personal
296 Injury Protection, property damage liability, and, if required,
297 Bodily Injury Liability) ... insurance currently in effect with
298 ... (Name of insurance company) ... under ... (policy number) ...
299 covering (make, year, and vehicle identification number of
300 vehicle) . . . . . . . (Signature of Insured) .. .
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301
302 Such affidavit must include the following warning:
303
304 WARNING: GIVING FALSE INFORMATION IN ORDER TO OBTAIN A VEHICLE
305 REGISTRATION CERTIFICATE IS A CRIMINAL OFFENSE UNDER FLORIDA
306 LAW. ANYONE GIVING FALSE INFORMATION ON THIS AFFIDAVIT IS
307 SUBJECT TO PROSECUTION.
308
309 If an application is made through a licensed motor vehicle
310 dealer as required under s. 319.23, the original or a photocopy
311 photostatic copy of such card, insurance policy, insurance
312 policy binder, or certificate of insurance or the original
313 affidavit from the insured must shall be forwarded by the dealer
314 to the tax collector of the county or the Department of Highway
315 Safety and Motor Vehicles for processing. By executing the
316 aforesaid affidavit,~ fie licensed motor vehicle dealer is not
317 will be liable in damages for any inadequacy, insufficiency, or
318 falsification of any statement contained therein. A card must
319 also indicate the eJristence of any bodily injury liability
320 insurance voluntarily purchased.
321 (d) The verifying of proof of personal injury protection
322 insurance, proof of property damage liability insurance, proof
323 of combined bodily liability insurance and property damage
324 liability insurance, or proof of financial responsibility
325 insurance and the issuance or failure to issue the motor vehicle
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326 registration under the provisions of this chapter may not be
327 construed in any court as a warranty of the reliability or
328 accuracy of the evidence of such proof, or as meaning that the
329 provisions of any insurance policy furnished as proof of
330 financial responsibility comply with state law. Neither the
331 department nor any tax collector is liable in damages for any
332 inadequacy, insufficiency, falsification, or unauthorized
333 modification of any item of the proof of personal injury
334 protection insurance, proof of property dafflage liability
335 insurance, proof of cofflbined bodily liability insurance and
336 property dafflage liability insurance, or proof of financial
337 responsibility before insurance prior to, during, or subsequent
338 to the verification of the proof. The issuance of a motor
339 vehicle registration does not constitute prima facie evidence or
340 a presumption of insurance coverage.
341 Section 6. Paragraph (b) of subsection (1) of section
342 320.0609, Florida Statutes, is amended to read:
343 320.0609 Transfer and exchange of registration license
344 plates; transfer fee.-
345 ( 1)
346 (b) The transfer of a license plate from a vehicle
347 disposed of to a newly acquired vehicle does not constitute a
348 new registration. The application for transfer must shall be
349 accepted without requiring proof of personal injury protection
350 er liability insurance.
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351 Section 7. Paragraph (g) is added to subsection (1) of
352 section 320.27, Florida Statutes, and subsection (3) of that
353 section is amended, to read:
354 320.27 Motor vehicle dealers.-
355 (1) DEFINITIONS.-The following words, terms, and phrases
356 when used in this section have the meanings respectively
357 ascribed to them in this subsection, except where the context
358 clearly indicates a different meaning:
359 (g) "Garage liability insurance" means, beginning January
360 1, 2021, combined single-limit liability coverage, including
361 property damage and bodily injury liability coverage, in the
362 amount of at least $60,000.
363 (3) APPLICATION AND FEE.-The application for the license
364 application must shall be in such form as may be prescribed by
365 the department and is shall be subject to such rules w-i-t-h
366 respect thereto as may be so prescribed by the department ±-t-.
367 Such application must shall be verified by oath or affirmation
368 and must shall contain a full statement of the name and birth
369 date of the person or persons applying for the license therefor;
370 the name of the firm or copartnership, with the names and places
371 of residence of all members thereof, if such applicant is a firm
372 or copartnership; the names and places of residence of the
373 principal officers, if the applicant is a body corporate or
374 other artificial body; the name of the state under whose laws
375 the corporation is organized; the present and former place or
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376 places of residence of the applicant; and the prior business in
377 which the applicant has been engaged and its tfte location
378 thereof. The -8-tteft application must shall describe the exact
379 location of the place of business and must shall state whether
380 the place of business is owned by the applicant and when
381 acquired, or, if leased, a true copy of the lease must shall be
382 attached to the application. The applicant shall certify that
383 the location provides an adequately equipped office and is not a
384 residence; that the location affords sufficient unoccupied space
385 upon and within which adequately to store all motor vehicles
386 offered and displayed for sale; and that the location is a
387 suitable place where the applicant can in good faith carry on
388 such business and keep and maintain books, records, and files
389 necessary to conduct such business, which must shall be
390 available at all reasonable hours to inspection by the
391 department or any of its inspectors or other employees. The
392 applicant shall certify that the business of a motor vehicle
393 dealer is the principal business that will which shall be
394 conducted at that location. The application -
must
-
shall contain a
395 statement that the applicant is either franchised by a
396 manufacturer of motor vehicles, in which case the name of each
397 motor vehicle that the applicant is franchised to sell must
398 shall be included, or an independent (nonfranchised) motor
399 vehicle dealer. The application must shall contain other
400 relevant information as may be required by the department. The
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401 applicant shall furnish, including evidence, in a form approved
402 by the department, that the applicant is insured under a garage
403 liability insurance policy or a general liability insurance
404 policy coupled with a business automobile policy having the
405 coverages and limits of the garage liability insurance coverage
406 in accordance with paragraph ( 1) ( g) , which shall include, at a
407 ffliniffiuffi, $25,000 coffibined single lifflit liability coverage
408 including bodily injury and property daffiage protection and
409 $10,000 personal injury protection. However, a salvage motor
410 vehicle dealer as defined in subparagraph (1) (c)5. is exempt
411 from the requirements for garage liability insurance afi€i
412 personal injury protection insurance on those vehicles that
413 cannot be legally operated on roads, highways, or streets in
414 this state. Franchise dealers must submit a garage liability
415 insurance policy, and all other dealers must submit a garage
416 liability insurance policy or a general liability insurance
417 policy coupled with a business automobile policy. Such policy
418 must shall be for the license period, and evidence of a new or
419 continued policy must shall be delivered to the department at
420 the beginning of each license period. Upon making an initial
421 application, the applicant shall pay to the department a fee of
422 $300 in addition to any other fees required by law. Applicants
423 may choose to extend the licensure period for 1 additional year
424 for a total of 2 years. An initial applicant shall pay to the
425 department a fee of $300 for the first year and $75 for the
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426 second year, in addition to any other fees required by law. An
427 applicant for renewal shall pay to the department $75 for a 1-
428 year renewal or $150 for a 2-year renewal, in addition to any
42 9 other fees required by law. Upon making an application for a
430 change of location, the applicant person shall pay a fee of $50
431 in addition to any other fees now required by law. The
432 department shall, in the case of every application for initial
433 licensure, verify whether certain facts set forth in the
434 application are true. Each applicant, general partner in the
435 case of a partnership, or corporate officer and director in the
436 case of a corporate applicant shall, must file a set of
437 fingerprints with the department for the purpose of determining
438 any prior criminal record or any outstanding warrants. The
439 department shall submit the fingerprints to the Department of
440 Law Enforcement for state processing and forwarding to the
441 Federal Bureau of Investigation for federal processing. The
442 actual cost of state and federal processing must shall be borne
443 by the applicant and is in addition to the fee for licensure.
444 The department may issue a license to an applicant pending the
445 results of the fingerprint investigation, which license is fully
446 revocable if the department subsequently determines that any
447 facts set forth in the application are not true or correctly
448 represented.
449 Section 8. Paragraph (j) of subsection (3) of section
450 320.771, Florida Statutes, is amended to read:
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451 320.771 License required of recreational vehicle dealers.-
452 (3) APPLICATION.-The application for such license shall be
453 in the form prescribed by the department and subject to such
454 rules as may be prescribed by it. The application shall be
455 verified by oath or affirmation and shall contain:
456 (j) A statement that the applicant is insured under a
457 garage liability insurance policy in accordance withs.
458 320.27(1) (g), which shall include, at a FRiniffluffl, $25,000
459 cofflbined single liFRit liability coverage, including bodily
460 injury and property daFRage protection, and $10,000 personal
461 injury protection, if the applicant is to be licensed as a
462 dealer in, or intends to sell, recreational vehicles.
463
464 The department shall, if it deems necessary, cause an
465 investigation to be made to ascertain if the facts set forth in
466 the application are true and shall not issue a license to the
467 applicant until it is satisfied that the facts set forth in the
468 application are true.
469 Section 9. Subsections (1) and (2) of section 322.251,
470 Florida Statutes, are amended to read:
471 322.251 Notice of cancellation, suspension, revocation, or
472 disqualification of license.-
473 (1) All orders of cancellation, suspension, revocation, or
474 disqualification issued under the provisions of this chapter,
475 chapter 318, or chapter 324 must, or so. 627.732 627.734 shall
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476 be given either by personal delivery thereof to the licensee
477 whose license is being canceled, suspended, revoked, or
478 disqualified or by deposit in the United States mail in an
479 envelope, first class, postage prepaid, addressed to the
480 licensee at his or her last known mailing address furnished to
481 the department. Such mailing by the department constitutes
482 notification, and any failure by the person to receive the
483 mailed order will not affect or stay the effective date or term
484 of the cancellation, suspension, revocation, or disqualification
485 of the licensee's driving privilege.
486 (2) The giving of notice and an order of cancellation,
487 suspension, revocation, or disqualification by mail is complete
488 upon expiration of 20 days after deposit in the United States
489 mail for all notices except those issued under chapter 324 -e£-
490 ss. 627.732 627.734, which are complete 15 days after deposit in
491 the United States mail. Proof of the giving of notice and an
492 order of cancellation, suspension, revocation, or
493 disqualification in either manner must shall be made by entry in
494 the records of the department that such notice was given. The
495 entry is admissible in the courts of this state and constitutes
496 sufficient proof that such notice was given.
497 Section 10. Paragraph (a) of subsection (8) of section
498 322.34, Florida Statutes, is amended to read:
499 322.34 Driving while license suspended, revoked, canceled,
500 or disqualified.-
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501 ( 8) (a) Upon the arrest of a person for the offense of
502 driving while the person's driver license or driving privilege
503 is suspended or revoked, the arresting officer shall determine:
504 1. Whether the person's driver license is suspended or
505 revoked, or the person is under suspension or revocation
506 equivalent status.
507 2. Whether the person's driver license has remained
508 suspended or revoked, or the person has been under suspension or
509 revocation equivalent status, since a conviction for the offense
510 of driving with a suspended or revoked license.
511 3. Whether the suspension, revocation, or suspension or
512 revocation equivalent status was made under s. 316.646 ors.
513 627.733, relating to failure to maintain required security, or
514 under s. 322.264, relating to habitual traffic offenders.
515 4. Whether the driver is the registered owner or co-owner
516 of the vehicle.
517 Section 11. Section 324.011, Florida Statutes, is amended
518 to read:
519 324.011 Legislative intent and purpose of chapter.-It is
520 the Legislature's intent of this chapter to ensure that the
521 privilege of owning or operating a motor vehicle in this state
522 is exercised recognize the existing privilege to own or operate
523 a motor vehicle on the public streets and highways of this state
524 when ouch vehicles are used with due consideration for others'
525 safety others and their property, aflcl to promote safetyL and to
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526 provide financial security requirements for 5tl:efi owners and e-r-
527 operators whose responsibility it is to recompense others for
528 injury to person or property caused by the operation of a motor
529 vehicle. Therefore, this chapter requires that every owner or
530 operator of a motor vehicle required to be registered in this
531 state establish, maintain, and it is required herein that the
532 operator of a motor vehiele involved in a crash or convicted of
533 certain traffic offenses meeting the operative provisions of s.
534 324.051(2) shall respond for such damages and show proof of
535 financial ability to respond for damages arising out of the
536 ownership, maintenance, or use of a motor vehicle in future
537 accidents as a requisite to owning or operating a motor vehicle
538 in this state his or her future eHercise of such privileges.
539 Section 12. Subsections (1) and (7) and paragraph (c) of
540 subsection (9) of section 324.021, Florida Statutes, are
541 amended, and subsection (12) is added to that section, to read:
542 324.021 Definitions; minimum insurance required.-The
543 following words and phrases when used in this chapter shall, for
544 the purpose of this chapter, have the meanings respectively
545 ascribed to them in this section, except in those instances
546 where the context clearly indicates a different meaning:
547 (1) MOTOR VEHICLE.-Every self-propelled vehicle that is
548 designed and required to be licensed for use upon a highway,
549 including trailers and semitrailers designed for use with such
550 vehicles, except traction engines, road rollers, farm tractors,
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551 power shovels, and well drillers, and every vehicle that is
552 propelled by electric power obtained from overhead wires but not
553 operated upon rails, but not including any personal delivery
554 device or mobile carrier as defined ins. 316.003, bicycle, or
555 moped. However, the tenR "fflotor vehicle" does not include a
556 ffiotor vehicle as defined ins. 627.732(3) when the owner of such
557 vehicle has eoffiplied with the requireffients of ss. 627.730
558 627.7405, inclusive, unless the provisions of s. 324.051 apply;
559 and, in such ease, the applicable proof of insurance provisions
560 of s. 320.02 apply.
561 (7) PROOF OF FINANCIAL RESPONSIBILITY. That Proof of
562 ability to respond in damages for liability on account of
563 crashes arising out of the ownership, maintenance, or use of a
564 motor vehicle:
565 (a) Beginning January 1, 2021, with respect to a motor
566 vehicle that is not a commercial motor vehicle, nonpublic sector
567 bus, or for-hire passenger transportation vehicle, in the amount
568 of:
569 1. Twenty-five thousand dollars for $10,000 because of
570 bodily injury to, or the death of, one person in any one crash
571 and, -t-
572 -fb+- subject to such limits for one person, in the amount
573 of $50,000 for $20,000 because of bodily injury to, or the death
574 of, two or more persons in any one crash; and
575 .£:_-f-e+ Ten thousand dollars for damage In the affiount of
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576 $10,000 because of injury to, or destruction of, property of
577 others in any one crash.; and
578 J...el-fe+- With respect to commercial motor vehicles afi€i
579 nonpublic sector buses, in the amounts specified ins. 627.7415
580 ss. 627.7415 and 627.742, respectively.
581 (c) With respect to nonpublic sector buses, in the amounts
582 specified ins. 627.742.
583 (d) With respect to for-hire passenger transportation
584 vehicles, in the amounts specified ins. 324.032.
585 (9) OWNER; OWNER/LESSOR.-
586 (c) Application.-
587 1. The limits on liability in subparagraphs (b)2. and 3.
588 do not apply to an owner of motor vehicles that arc used for
589 commercial activity in the owner's ordinary course of business,
590 other than a rental company that rents or leases motor vehicles.
591 For purposes of this paragraph, the term "rental company"
592 includes only an entity that is engaged in the business of
593 renting or leasing motor vehicles to the general public and that
594 rents or leases a majority of its motor vehicles to persons with
595 no direct or indirect affiliation with the rental company. The
596 term also includes a motor vehicle dealer that provides
597 temporary replacement vehicles to its customers for up to 10
598 days. The term "rental company" also includes:
599 a. A related rental or leasing company that is a
600 subsidiary of the same parent company as that of the renting or
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601 leasing company that rented or leased the vehicle.
602 b. The holder of a motor vehicle title or an equity
603 interest in a motor vehicle title if the title or equity
604 interest is held pursuant to or to facilitate an asset-backed
605 securitization of a fleet of motor vehicles used solely in the
606 business of renting or leasing motor vehicles to the general
607 public and under the dominion and control of a rental company,
608 as described in this subparagraph, in the operation of such
609 rental company's business.
610 2. Furthermore, with respect to commercial motor vehicles
611 as defined ins. 207.002 ors. 320.01 s. 627.732, the limits on
612 liability in subparagraphs (b)2. and 3. do not apply if, at the
613 time of the incident, the commercial motor vehicle is being used
614 in the transportation of materials found to be hazardous for the
615 purposes of the Hazardous Materials Transportation Authorization
616 Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq., and that is
617 required pursuant to such act to carry placards warning others
618 of the hazardous cargo, unless at the time of lease or rental
619 either:
620 a. The lessee indicates in writing that the vehicle will
621 not be used to transport materials found to be hazardous for the
622 purposes of the Hazardous Materials Transportation Authorization
623 Act of 1994, as amended, 49 U.S.C. ss. 5101 et seq.; or
624 b. The lessee or other operator of the commercial motor
625 vehicle has in effect insurance with limits of at least $5
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62 6 million $5,000,000 combined property damage and bodily injury
627 liability.
628 (12) FOR-HIRE PASSENGER TRANSPORTATION VEHICLE.-Every for-
629 hire vehicle as defined ins. 320.01(15) which is offered or
630 used to provide transportation for persons, including taxicabs,
631 limousines, and jitneys.
632 Section 13. Section 324.022, Florida Statutes, is amended
633 to read:
634 324.022 Financial responsibility requirements for property
635 daFRage.-
636 (1) (a) Beginning January 1, 2021, every owner or operator
637 of a motor vehicle required to be registered in this state shall
638 establish and continuously maintain the ability to respond in
639 damages for liability on account of accidents arising out of the
640 use of the motor vehicle in the amount of:
641 1. Twenty-five thousand dollars for bodily injury to, or
642 the death of, one person in any one crash and, subject to such
643 limits for one person, in the amount of $50,000 for bodily
644 injury to, or the death of, two or more persons in any one
645 crash; and
646 2. Ten thousand dollars for $10,000 because of damage to,
647 or destruction of, property of others in any one crash.
648 J..!:2l The requirements of paragraph (a) this section may be
649 met by one of the methods established ins. 324.031; by self-
650 insuring as authorized bys. 768.28(16); or by maintaining a
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651 motor vehicle liability insurance policy that an insurance
652 policy providing coverage for property damage liability in the
653 amount of at least $10,000 because of damage to, or destruction
654 of, property of others in any one accident arising out of the
655 use of the motor vehicle. The requirements of this section may
656 also be met by having a policy which provides combined property
657 damage liability and bodily injury liability coverage for any
658 one crash arising out of the ownership, maintenance, or use of a
659 motor vehicle and that conforms to the requirements of s.
660 324.151 in the amount of at least $60,000 for every owner or
661 operator subject to the financial responsibility required in
662 paragraph (a) $30,000 for combined property damage liability and
663 bodily injury liability for any one crash arising out of the use
664 of the motor vehicle. The policy, with respect to coverage for
665 property damage liability, must meet the applicable requirements
666 of s. 324.1§1, subject to the usual policy exclusions that have
667 been approved in policy forms by the Office of Insurance
668 Regulation. No insurer shall have any duty to defend uncovered
669 claims irrespective of their joinder with covered claims.
670 (2) As used in this section, the term:
671 (a) "Motor vehicle" means any self-propelled vehicle that
672 has four or more wheels and that is of a type designed and
673 required to be licensed for use on the highways of this state,
674 and any trailer or semitrailer designed for use with such
675 vehicle. The term does not include the following:
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676 1. A mobile home as defined ins. 320.01.
677 2. A motor vehicle that is used in mass transit and
678 designed to transport more than five passengers, exclusive of
679 the operator of the motor vehicle, and that is owned by a
680 municipality, transit authority, or political subdivision of the
681 state.
682 3. A school bus as defined ins. 1006.25, which must
683 maintain security as required under s. 316.615.
684 4. A commercial motor vehicle as defined ins. 207.002 or
685 s. 320.01, which must maintain security as required under ss.
68 6 324.031 and 627.7415.
687 5. A nonpublic sector bus, which must maintain security as
688 required under ss. 324.031 and 627.742.
689 6.4-. A vehicle providing for-hire passenger transportation
690 vehicle, which must that is subject to the provisions of s.
691 324.031. A ta>cicab shall maintain security as required under s.
692 324.032 s. 324.032 (1).
693 7 . .§... A personal delivery device as defined ins. 316.003.
694 (b) "Owner" means the person who holds legal title to a
695 motor vehicle or the debtor or lessee who has the right to
696 possession of a motor vehicle that is the subject of a security
697 agreement or lease with an option to purchase.
698 (3) Each nonresident owner or registrant of a motor
699 vehicle that, whether operated or not, has been physically
700 present within this state for more than 90 days during the
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701 preceding 365 days shall maintain security as required by
702 subsection (1). The security must be that is in effect
703 continuously throughout the period the motor vehicle remains
704 within this state.
705 (4) A n ~ owner or registrant of a motor vehicle who is
706 exempt from the requirements of this section if she or he is a
707 member of the United States Armed Forces and is called to or on
708 active duty outside the United States in an emergency situation
709 is exempt from this section while he or she. The cncmption
710 provided by this subsection applies only as long as the member
711 of the Armed Forces is on such active duty. This exemption
712 outside the United States and applies only while the vehicle
713 covered by the security is not operated by any person. Upon
714 receipt of a written request by the insured to whom the
715 exemption provided in this subsection applies, the insurer shall
716 cancel the coverages and return any unearned premium or suspend
717 the security required by this section. Notwithstanding~
718 324.0221(2) s. 324.0221(3), the department may not suspend the
719 registration or operator's license of an ttfiY owner or registrant
720 of a motor vehicle during the time she or he qualifies for the
721 a-n- exemption under this subsection. An Arty owner or registrant
722 of a motor vehicle who qualifies for the a-n- exemption under this
723 subsection shall immediately notify the department before prior
724 t-e and at the end of the expiration of the exemption.
725 Section 14. Subsections (1) and (2) of section 324.0221,
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726 Florida Statutes, are amended to read:
727 324.0221 Reports by insurers to the department; suspension
728 of driver license and vehicle registrations; reinstatement.-
729 (1) (a) Each insurer that has issued a policy providing
730 personal injury proteetion eoverage or property daffiage liability
731 coverage shall report the cancellation or nonrenewal thereof to
732 the department within 10 days after the processing date or
733 effective date of each cancellation or nonrenewal. Upon the
734 issuance of a policy providing personal injury protection
735 eoverage or property daffiage liability coverage to a named
736 insured not previously insured by the insurer during that
737 calendar year, the insurer shall report the issuance of the new
738 policy to the department within 10 days. The report must shall
739 be in the form and forffiat and contain any information required
740 by the department and must be provided in a format that is
741 compatible with the data processing capabilities of the
742 department. Failure by an insurer to file proper reports with
743 the department as required by this subsection constitutes a
744 violation of the Florida Insurance Code. These records may shall
745 be used by the department only for enforcement and regulatory
746 purposes, including the generation by the department of data
747 regarding compliance by owners of motor vehicles with the
748 requirements for financial responsibility coverage.
749 (b) With respect to an insurance policy providing personal
750 injury protection coverage or property daffiage liability
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751 coverage, each insurer shall notify the named insured, or the
752 first-named insured in the case of a commercial fleet policy, in
753 writing that any cancellation or nonrenewal of the policy will
754 be reported by the insurer to the department. The notice must
755 also inform the named insured that failure to maintain bodily
756 injury liability personal injury protection coverage and
757 property damage liability coverage on a motor vehicle when
758 required by law may result in the loss of registration and
759 driving privileges in this state and inform the named insured of
760 the amount of the reinstatement fees required by this section.
761 This notice is for informational purposes only, and an insurer
762 is not civilly liable for failing to provide this notice.
763 (2) The department shall suspend, after due notice and an
7 64 opportunity to be heard, the registration and driver license of
7 65 any owner or registrant of a motor vehicle for with respect to
766 which security is required under s. 324.022, s. 324.032, s.
767 627.7415, ors. 627.742 so. 324.022 and 627.733 upon:
768 (a) The department's records showing that the owner or
769 registrant of such motor vehicle did not have the in full force
770 and effect when required security in full force and effect -t-fta-t-
771 complieo with the requirements of so. 324.022 and 627.733; or
772 (b) Notification by the insurer to the department, in a
773 form approved by the department, of cancellation or termination
774 of the required security.
775 Section 15. Section 324.0222, Florida Statutes, is created
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776 to read:
777 324.0222 Application of suspensions for failure to
778 maintain security; reinstatement.-All suspensions for failure to
779 maintain required security as required by law in effect before
780 January 1, 2021, remain in full force and effect on or after
781 January 1, 2021. A driver may reinstate a suspended driver
782 license or registration as provided under s. 324.0221.
783 Section 16. Section 324.023, Florida Statutes, is amended
784 to read:
785 324.023 Financial responsibility for bodily injury or
786 death.-In addition to any other financial responsibility
787 required by law, every owner or operator of a motor vehicle that
788 is required to be registered in this state, or that is located
789 within this state, and who, regardless of adjudication of guilt,
790 has been found guilty of or entered a plea of guilty or nolo
791 contendere to a charge of driving under the influence under s.
792 316.193 after October 1, 2007, shall, by one of the methods
793 established ins. 324.031(1)(a) or (b) o. 324.031(1) or (2),
794 establish and maintain the ability to respond in damages for
795 liability on account of accidents arising out of the use of a
796 motor vehicle in the amount of $100,000 because of bodily injury
797 to, or death of, one person in any one crash and, subject to
798 such limits for one person, in the amount of $300,000 because of
799 bodily injury to, or death of, two or more persons in any one
800 crash and in the amount of $50,000 because of property damage in
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801 any one crash. If the owner or operator chooses to establish and
802 maintain such ability by furnishing a certificate of deposit
803 pursuant to s. 324. 031 ( 1) (b) s. 32 4. 031 (2), such certificate of
804 deposit must be at least $350,000. Such higher limits must be
805 carried for a minimum period of 3 years. If the owner or
806 operator has not been convicted of driving under the influence
807 or a felony traffic offense for a period of 3 years from the
808 date of reinstatement of driving privileges for a violation of
809 s. 316.193, the owner or operator is shall be exempt from this
810 section.
811 Section 17. Section 324.031, Florida Statutes, is amended
812 to read:
813 324.031 Manner of proving financial responsibility.-
814 ill The owner or operator of a tauicab, limousine, jitney,
815 or any other for hire passenger transportation vehicle may prove
816 financial responsibility by providing satisfactory evidence of
817 holding a motor vehicle liability policy as defined ins.
818 324.021(8) ors. 324.151, which policy is issued by an insurance
819 carrier which is a member of the Florida Insurance Guaranty
820 Association. The operator or owner of a motor vehicle other than
821 a for-hire passenger transportation vehicle any other vehicle
822 may prove his or her financial responsibility by:
823 ~-f-1+ Furnishing satisfactory evidence of holding a motor
824 vehicle liability policy as defined in ss. 324.021(8) and
825 324.151 which provides liability coverage for the motor vehicle
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826 being operated;
827 JE.l-f±+- Furnishing a certificate of self-insurance showing
828 a deposit of cash in accordance withs. 324.161; or
829 J...S:l-f-3+ Furnishing a certificate of self-insurance issued
830 by the department in accordance withs. 324.171.
831 (2) (a) Beginning January 1, 2021, any person, including
832 any firm, partnership, association, corporation, or other
833 person, other than a natural person, electing to use the method
834 of proof specified in paragraph ( 1) (b) subsection ( 2) shall
835 furnish a certificate of deposit equal to the number of vehicles
836 owned times $60,000 $30,000, to a maximum of $240,000. $120,000;
837 JEl In addition, any such person, other than a natural
838 person, shall maintain insurance providing coverage conforming
839 to the requirements of s. 324.151 in excess of the amount of the
840 certificate of deposit, with limits of at least:
841 1. One hundred twenty-five thousand dollars for bodily
842 injury to, or the death of, one person in any one crash and,
843 subject to such limits for one person, in the amount of $250,000
844 for bodily injury to, or the death of, two or more persons in
845 any one crash, and $50,000 for damage to, or destruction of,
846 property of others in any one crash; or
847 2. Three hundred thousand dollars for combined bodily
848 injury liability and property damage liability for any one crash
849 $10,000/20,000/10,000 or $30,000 combined single limits, and
850 ouch eJweso insurance shall provide minimum limits of
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851 $125,000/250,000/50,000 or $300,000 combined single limits.
852 These increased limits shall not affect the requirements for
853 proving financial responsibility under s. 324.032(1).
854 Section 18. Section 324.032, Florida Statutes, is amended
855 to read:
856 324.032 Hanner of proving Financial responsibility for-t-
857 for-hire passenger transportation vehicles. Notwithstanding the
858 provisions of s. 324.031:
859 (1) An owner or lessee of a for-hire passenger
860 transportation vehicle that is required to be registered in this
861 state shall establish and continuously maintain the ability to
862 respond in damages for liability on account of accidents arising
863 out of the ownership, maintenance, or use of the for-hire
864 passenger transportation vehicle, in the amount of:
865 (a) One hundred twenty-five thousand dollars for bodily
866 injury to, or the death of, one person in any one crash and,
8 67 subject to such limits for one person, in the amount of $250,000
868 for bodily injury to, or the death of, two or more persons in
869 any one crash; and A person who is either the owner or a lessee
870 required to maintain insurance under s. 627.733(1) (b) and who
871 operates one or more taxicabs, limousines, jitneys, or any other
872 for hire passenger transportation vehicles may prove financial
873 responsibility by furnishing satisfactory evidence of holding a
874 motor vehicle liability policy, but with minimum limits of
875 $125,000/250,000/50,000.
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876 (b) Fifty thousand dollars for damage to, or destruction
877 of, property of others in any one crash A person who is either
878 the owner or a lessee required to maintain insurance under s.
879 324.021(9) (b) and who operates limousines, jitneys, or any other
880 for hire passenger vehicles, other than taxicabs, may prove
881 financial responsibility by furnishing satisfactory evidence of
882 holding a motor vehicle liability policy as defined ins.
883 324.031.
884 (2) Except as provided in subsection (3), the requirements
885 of this section must be met by the owner or lessee providing
886 satisfactory evidence of holding a motor vehicle liability
887 policy conforming to the requirements of s. 324.151 which is
888 issued by an insurance carrier that is a member of the Florida
889 Insurance Guaranty Association.
890 (3)+2+ An owner or a lessee who is required to maintain
891 insurance under s. 32 4. 021 ( 9) (bl and who operates at least 300
892 taxicabs, limousines, jitneys, or any other for-hire passenger
893 transportation vehicles may provide financial responsibility by
894 complying with the provisions of s. 324.171, which must 5-t±eft
895 compliance to be demonstrated by maintaining at its principal
896 place of business an audited financial statement, prepared in
897 accordance with generally accepted accounting principles, and
898 providing to the department a certification issued by a
899 certified public accountant that the applicant's net worth is at
900 least equal to the requirements of s. 324.171 as determined by
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901 the Office of Insurance Regulation of the Financial Services
902 Cormnission, including claims liabilities in an amount certified
903 as adequate by a Fellow of the Casualty Actuarial Society.
904
905 Upon request by the department, the applicant shall ffi:tffit provide
906 the department at the applicant's principal place of business in
907 this state access to the applicant's underlying financial
908 information and financial statements that provide the basis of
909 the certified public accountant's certification. The applicant
910 shall reimburse the requesting department for all reasonable
911 costs incurred by it in reviewing the supporting information.
912 The maximum amount of self-insurance permissible under this
913 subsection is $300,000 and must be stated on a per-occurrence
914 basis, and the applicant shall maintain adequate excess
915 insurance issued by an authorized or eligible insurer licensed
916 or approved by the Office of Insurance Regulation. All risks
917 self-insured shall remain with the owner or lessee providing it,
918 and the risks are not transferable to any other person, unless a
919 policy complying with subsections (1) and (2) subsection (1) is
920 obtained.
921 Section 19. Paragraph (b) of subsection (2) of section
922 324.051, Florida Statutes, is amended to read:
923 324.051 Reports of crashes; suspensions of licenses and
924 registrations.-
925 (2)
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92 6 (b) This subsection does shall not apply:
927 1. To such operator or owner if such operator or owner had
928 in effect at the time of such crash or traffic conviction a
929 motor vehicle an automobile liability policy with respect to all
930 of the registered motor vehicles owned by such operator or
931 owner.
932 2. To such operator, if not the owner of such motor
933 vehicle, if there was in effect at the time of such crash or
934 traffic conviction a motor vehicle an automobile liability
935 policy or bond with respect to his or her operation of motor
936 vehicles not owned by him or her.
937 3. To such operator or owner if the liability of such
938 operator or owner for damages resulting from such crash is, in
939 the judgment of the department, covered by any other form of
940 liability insurance or bond.
941 4. To any person who has obtained from the department a
942 certificate of self-insurance, in accordance withs. 324.171, or
943 to any person operating a motor vehicle for such self-insurer.
944
945 No such policy or bond shall be effective under this subsection
94 6 unless it contains limits of not less than those specified ins.
947 324.021(7).
948 Section 20. Section 324.071, Florida Statutes, is amended
949 to read:
950 324.071 Reinstatement; renewal of license; reinstatement
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951 fee.-An AFty operator or owner whose license or registration has
952 been suspended pursuant to s. 324.051(2), s. 324.072, s.
953 324.081, ors. 324.121 may effect its reinstatement upon
954 compliance with the provisions of s. 324.051(2) (a)3. or 4., or
955 s. 324.081(2) and (3), as the case may be, and with one of the
956 provisions of s. 324.031 and upon payment to the ,department of a
957 nonrefundable reinstatement fee of $15. Only one such fee may
958 shall be paid by any one person regardless irrespective of the
959 number of licenses and registrations to be then reinstated or
960 issued to such person. Al±- Such fees must shall be deposited to
961 a department trust fund. If Wfieft the reinstatement of any
962 license or registration is effected by compliance withs.
963 324.051(2) (a)3. or 4., the department may shall not renew the
964 license or registration within a period of 3 years a f t e r ~
965 such reinstatement, nor may shall any other license or
966 registration be issued in the name of such person, unless the
967 operator continues is continuing to comply with one of the
968 provisions of s. 324.031.
969 Section 21. Subsection (1) of section 324.091, Florida
970 Statutes, is amended to read:
971 324.091 Notice to department; notice to insurer.-
972 (1) Each owner and operator involved in a crash or
973 conviction case within the purview of this chapter shall furnish
974 evidence of autofflobile liability insurance or motor vehicle
975 liability insurance within 14 days after the date of the mailing
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97 6 of notice of crash by the department in the form and manner as
977 it may designate. Upon receipt of evidence that a an automobile
978 liability poliey or motor vehicle liability policy was in effect
979 at the time of the crash or conviction case, the department
980 shall forward to the insurer such information for verification
981 in a method as determined by the department. The insurer shall
982 respond to the department within 20 days after the notice as to
983 whether or not such information is valid. If the department
984 determines that a an automobile liability policy or motor
985 vehicle liability policy was not in effect and did not provide
986 coverage for both the owner and the operator, it must shall take
987 action as it is authorized to do under this chapter.
988 Section 22. Section 324.151, Florida Statutes, is amended
989 to read:
990 324.151 Motor vehicle liability policies; required
991 provisions.-
992 (1) A motor vehicle liability policy that serves as to be
993 proof of financial responsibility under s. 32 4. 031 ( 1) (a) must -s--,-
994 324. 031 ( 1), shall be issued to owners or operators of motor
995 vehicles under the following provisions:
996 (a) A motor vehicle An owner's liability insurance policy
997 issued to an owner of a motor vehicle required to be registered
998 in this state must shall designate by explicit description or by
999 appropriate reference all motor vehicles for with respect to
1000 which coverage is thereby granted. The policy must and shall
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1001 insure the person or persons owner named therein and, except for
1002 a named driver excluded pursuant to s. 627.747, must insure any
1003 resident relative of a named insured other person as operator
1004 using oueh motor vehiele or motor vehicles with the express or
1005 implied permission of ouch owner against loss from the liability
1006 imposed by law for damage arising out of the ownership,
1007 maintenance, or use of any -s-u-eh motor vehicle or motor vehicles
1008 within the United States or the Dominion of Canada, subject to
1009 limits, eJccluoive of interest and coots with respect to each
1010 ouch motor vehicle as is provided for under o. 324.021(7).
1011 Except for a named driver excluded pursuant to s. 627.747, the
1012 policy must also insure any person operating an insured motor
1013 vehicle with the express or implied permission of a named
1014 insured against loss from the liability imposed by law for
1015 damage arising out of the use of the insured vehicle. However,
1016 the insurer may include provisions in its policy excluding
1017 liability coverage for a motor vehicle not designated as an
1018 insured vehicle on the policy if such motor vehicle does not
1019 qualify as a newly acquired vehicle, does not qualify as a
1020 temporary substitute vehicle, and was owned by the insured or
1021 was furnished for an insured's regular use for more than 30
1022 consecutive days before the event giving rise to the claim.
1023 Insurers may make available, with respect to property damage
1024 liability coverage, a deductible amount not to exceed $500. In
1025 the event of a property damage loss covered by a policy
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1026 containing a property damage deductible provision, the insurer
1027 shall pay to the third-party claimant the amount of any property
1028 damage liability settlement or judgment, subject to policy
1029 limits, as if no deductible existed.
1030 (b) A motor vehicle liability insurance policy issued to a
1031 person who does not own a motor vehicle must An operator's motor
1032 vehicle liability policy of insurance shall insure the person or
1033 persons named therein against loss from the liability imposed
1034 upon him or her by law for damages arising out of the use by the
1035 person of any motor vehicle not owned by him or her, with the
1036 same territorial limits and subject to the same limits of
1037 liability as referred to above with respect to an owner's policy
1038 of liability insurance.
1039 (c) All such motor vehicle liability policies must provide
1040 liability coverage with limits, exclusive of interest and costs,
1041 as specified under s. 324.021(7) for accidents occurring within
1042 the United States or Canada. The policies must shall state the
1043 name and address of the named insured, the coverage afforded by
1044 the policy, the premium charged therefor, the policy period, and
1045 the limits of liability, and must shall contain an agreement or
1046 be endorsed that insurance is provided in accordance with the
1047 coverage defined in this chapter as respects bodily injury and
1048 death or property damage or both and is subject to a-±-1-
1049 provisions of this chapter. The &a-i-e: policies must shall also
1050 contain a provision that the satisfaction by an insured of a
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1051 judgment for such injury or damage may shall not be a condition
1052 precedent to the right or duty of the insurance carrier to make
1053 payment on account of such injury or damage, and must shall also
1054 contain a provision that bankruptcy or insolvency of the insured
1055 or of the insured's estate may shall not relieve the insurance
1056 carrier of any of its obligations under the -s-a-tti policy.
1057 (2) The provisions of This section is shall not ee-
1058 applicable to any motor vehicle autoffiobile liability policy
1059 unless and until it is furnished as proof of financial
1060 responsibility for the future pursuant to s. 324.031, and then
1061 applies only from and after the date the -s-a-tti policy is -s-e
1062 furnished.
1063 (3) As used in this section, the term:
1064 (a) "Newly acquired vehicle" means a vehicle owned by a
1065 named insured or resident relative of the named insured which
1066 was acquired within 30 days before an accident.
1067 (b) "Resident relative" means a person related to a named
1068 insured by any degree by blood, marriage, or adoption, including
1069 a ward or foster child, who usually makes his or her home in the
1070 same family unit or residence as the named insured, whether or
1071 not he or she temporarily lives elsewhere.
1072 (c) "Temporary substitute vehicle" means any motor vehicle
1073 as defined ins. 320.01(1) which is not owned by the named
1074 insured and which is temporarily used with the permission of the
1075 owner as a substitute for the owned motor vehicle designated on
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1076 the policy when the owned vehicle is withdrawn from normal use
1077 because of breakdown, repair, servicing, loss, or destruction.
1078 Section 23. Section 324.161, Florida Statutes, is amended
1079 to read:
1080 324.161 Proof of financial responsibility; deposit.-If a
1081 person elects to prove his or her financial responsibility under
1082 the method of proof specified in s. 324.031 (1) (b), he or she
1083 annually must obtain and submit to the department proof of a
1084 certificate of deposit in the amount required under s.
1085 324.031(2) from a financial institution insured by the Federal
1086 Deposit Insurance Corporation or the National Credit Union
1087 Administration Annually, before any certificate of insurance fflay
1088 be issued to a person, including any firffi, partnership,
1089 association, corporation, or other person, other than a natural
1090 person, proof of a certificate of deposit of $30,000 issued and
1091 held by a financial institution ffiUSt be subfflitted to the
1092 departffient. A power of attorney will be issued to and held by
1093 the department and may be executed upon a judgment issued
1094 against such person making the deposit, for damages for because
1095 -e-f. bodily injury to or death of any person or for damages for
1096 because of injury to or destruction of property resulting from
1097 the use or operation of any motor vehicle occurring after such
1098 deposit was made. Money so deposited is shall not b-e subject to
1099 attachment or execution unless such attachment or execution
1100 arises shall arise out of a lawsuit -s-u-i-t- for such damages a-a-
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1101 aforesaid.
1102 Section 24. Subsections (1) and (2) of section 324.171,
1103 Florida Statutes, are amended to read:
1104 324.171 Self-insurer.-
1105 (1) A AFty- person may qualify as a self-insurer by
1106 obtaining a certificate of self-insurance from the department~
1107 which fflay, in its discretion and Upon application of such a
1108 person, the department may issue a ~ certificate of self-
1109 insurance to an applicant who satisfies when such person has
1110 satisfied the requirements of this section. Effective January 1,
1111 2021 to qualify as a self insurer under this section:
1112 (a) A private individual with private passenger vehicles
1113 shall possess a net unencumbered worth of at least $100,000
1114 $40,000.
1115 (b) A person, including any firm, partnership,
1116 association, corporation, or other person, other than a natural
1117 person, shall:
1118 1. Possess a net unencumbered worth of at least $100,000
1119 $40,000 for the first motor vehicle and $50,000 $20,000 for each
1120 additional motor vehicle; or
1121 2. Maintain sufficient net worth, in an amount determined
1122 by the department, to be financially responsible for potential
1123 losses. The department annually shall determine the minimum net
1124 worth sufficient to satisfy this subparagraph as deterfflined
1125 annually by the departffient, pursuant to rules adopted
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1126 promulgated by the department, with the assistance of the Office
1127 of Insurance Regulation of the Financial Services Commission,------t-e
1128 be financially responsible for potential losses. The rules must
112 9 consider any shall take into consideration excess insurance
1130 carried by the applicant. The department's determination must
1131 shall be based upon reasonable actuarial principles considering
1132 the frequency, severity, and loss development of claims incurred
1133 by casualty insurers writing coverage on the type of motor
1134 vehicles for which a certificate of self-insurance is desired.
1135 (c) The owner of a commercial motor vehicle, as defined in
1136 s. 207.002 ors. 320.01, may qualify as a self-insurer subject
1137 to the standards provided cf.er in subparagraph (b)2.
1138 (2) The self-insurance certificate must shall provide
1139 limits of liability insurance in the amounts specified under s.
1140 324.021(7) ors. 627.741§ and shall provide personal injury
1141 protection coverage under s. 627. 733 (3) (b).
1142 Section 25. Section 324.251, Florida Statutes, is amended
1143 to read:
1144 324.251 Short title.-This chapter may be cited as the
1145 "Financial Responsibility Law of 2020 -l-9-§-5." and is shall become
1146 effective at 12:01 a.m., January 1, 2021 October 1, 19§§.
1147 Section 26. Subsection (4) of section 400.9905, Florida
1148 Statutes, is amended to read:
1149 400.9905 Definitions.-
1150 (4)M_ "Clinic" means an entity where health care services
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1151 are provided to individuals and which tenders charges for
1152 reimbursement for such services, including a mobile clinic and a
1153 portable equipment provider. As used in this part, the term does
1154 not include and the licensure requirements of this part do not
1155 apply to:
1156 1.-f-a+ Entities licensed or registered by the state under
1157 chapter 395; entities licensed or registered by the state and
1158 providing only health care services within the scope of services
1159 authorized under their respective licenses under ss. 383.30-
1160 383.332, chapter 390, chapter 394, chapter 397, this chapter
1161 except part X, chapter 429, chapter 463, chapter 465, chapter
1162 466, chapter 478, chapter 484, or chapter 651; end-stage renal
1163 disease providers authorized under 42 C.F.R. part 405, subpart
1164 U; providers certified under 42 C.F.R. part 485, subpart B or
1165 subpart H; providers certified by the Centers for Medicare and
1166 Medicaid Services under the federal Clinical Laboratory
1167 Improvement Amendments and the federal rules adopted thereunder;
1168 or any entity that provides neonatal or pediatric hospital-based
1169 health care services or other health care services by licensed
1170 practitioners solely within a hospital licensed under chapter
1171 395.
1172 ~-ta+ Entities that own, directly or indirectly, entities
1173 licensed or registered by the state pursuant to chapter 395;
1174 entities that own, directly or indirectly, entities licensed or
1175 registered by the state and providing only health care services
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1176 within the scope of services authorized pursuant to their
1177 respective licenses under ss. 383.30-383.332, chapter 390,
1178 chapter 394, chapter 397, this chapter except part X, chapter
1179 429, chapter 463, chapter 465, chapter 466, chapter 478, chapter
1180 484, or chapter 651; end-stage renal disease providers
1181 authorized under 42 C.F.R. part 405, subpart U; providers
1182 certified under 42 C.F.R. part 485, subpart B or subpart H;
1183 providers certified by the Centers for Medicare and Medicaid
1184 Services under the federal Clinical Laboratory Improvement
1185 Amendments and the federal rules adopted thereunder; or any
1186 entity that provides neonatal or pediatric hospital-based health
1187 care services by licensed practitioners solely within a hospital
1188 licensed under chapter 395.
1189 l..:_-te+- Entities that are owned, directly or indirectly, by
1190 an entity licensed or registered by the state pursuant to
1191 chapter 395; entities that are owned, directly or indirectly, by
1192 an entity licensed or registered by the state and providing only
1193 health care services within the scope of services authorized
1194 pursuant to their respective licenses under ss. 383.30-383.332,
1195 chapter 390, chapter 394, chapter 397, this chapter except part
1196 X, chapter 429, chapter 463, chapter 465, chapter 466, chapter
1197 478, chapter 484, or chapter 651; end-stage renal disease
1198 providers authorized under 42 C.F.R. part 405, subpart U;
1199 providers certified under 42 C.F.R. part 485, subpart B or
1200 subpart H; providers certified by the Centers for Medicare and
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1201 Medicaid Services under the federal Clinical Laboratory
1202 Improvement Amendments and the federal rules adopted thereunder;
1203 or any entity that provides neonatal or pediatric hospital-based
1204 health care services by licensed practitioners solely within a
1205 hospital under chapter 395.
1206 4.-fe+ Entities that are under common ownership, directly
1207 or indirectly, with an entity licensed or registered by the
1208 state pursuant to chapter 395; entities that are under common
1209 ownership, directly or indirectly, with an entity licensed or
1210 registered by the state and providing only health care services
1211 within the scope of services authorized pursuant to their
1212 respective licenses under ss. 383.30-383.332, chapter 390,
1213 chapter 394, chapter 397, this chapter except part X, chapter
1214 429, chapter 463, chapter 465, chapter 466, chapter 478, chapter
1215 484, or chapter 651; end-stage renal disease providers
1216 authorized under 42 C.F.R. part 405, subpart U; providers
1217 certified under 42 C.F.R. part 485, subpart B or subpart H;
1218 providers certified by the Centers for Medicare and Medicaid
1219 Services under the federal Clinical Laboratory Improvement
1220 Amendments and the federal rules adopted thereunder; or any
1221 entity that provides neonatal or pediatric hospital-based health
1222 care services by licensed practitioners solely within a hospital
1223 licensed under chapter 395.
1224 5.-te+ An entity that is exempt from federal taxation under
1225 26 U.S.C. s. 50l(c) (3) or (4), an employee stock ownership plan
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1226 under 26 U.S.C. s. 409 that has a board of trustees at least
1227 two-thirds of which are Florida-licensed health care
1228 practitioners and provides only physical therapy services under
1229 physician orders, any community college or university clinic,
1230 and any entity owned or operated by the federal or state
1231 government, including agencies, subdivisions, or municipalities
1232 thereof.
1233 ~-f-f-t A sole proprietorship, group practice, partnership,
1234 or corporation that provides health care services by physicians
1235 covered bys. 627.419, that is directly supervised by one or
1236 more of such physicians, and that is wholly owned by one or more
1237 of those physicians or by a physician and the spouse, parent,
1238 child, or sibling of that physician.
1239 2...:_+tt- A sole proprietorship, group practice, partnership,
1240 or corporation that provides health care services by licensed
1241 health care practitioners under chapter 457, chapter 458,
1242 chapter 459, chapter 460, chapter 461, chapter 462, chapter 463,
1243 chapter 466, chapter 467, chapter 480, chapter 484, chapter 486,
1244 chapter 490, chapter 491, or part I, part III, part X, part
1245 XIII, or part XIV of chapter 468, ors. 464.012, and that is
1246 wholly owned by one or more licensed health care practitioners,
1247 or the licensed health care practitioners set forth in this
1248 subparagraph paragraph and the spouse, parent, child, or sibling
1249 of a licensed health care practitioner if one of the owners who
1250 is a licensed health care practitioner is supervising the
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1251 business activities and is legally responsible for the entity's
1252 compliance with all federal and state laws. However, a health
1253 care practitioner may not supervise services beyond the scope of
1254 the practitioner's license, except that, for the purposes of
1255 this part, a clinic owned by a licensee in s. 456. 053 ( 3) (b)
1256 which provides only services authorized pursuant to s.
1257 45 6. 053 ( 3) (b) may be supervised by a licensee specified in s.
1258 456.053(3) (b)
1259 ~-f-l=i+- Clinical facilities affiliated with an accredited
12 60 medical school at which training is provided for medical
12 61 students, residents, or fellows.
1262 9.-ti+ Entities that provide only oncology or radiation
1263 therapy services by physicians licensed under chapter 458 or
1264 chapter 459 or entities that provide oncology or radiation
1265 therapy services by physicians licensed under chapter 458 or
1266 chapter 459 which are owned by a corporation whose shares are
12 67 publicly traded on a recognized stock exchange.
1268 10.-f1-+ Clinical facilities affiliated with a college of
1269 chiropractic accredited by the Council on Chiropractic Education
1270 at which training is provided for chiropractic students.
1271 11.-f*+ Entities that provide licensed practitioners to
1272 staff emergency departments or to deliver anesthesia services in
1273 facilities licensed under chapter 395 and that derive at least
1274 90 percent of their gross annual revenues from the provision of
1275 such services. Entities claiming an exemption from licensure
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1276 under this subparagraph paragraph must provide documentation
1277 demonstrating compliance.
1278 12.-f-±-t Orthotic, prosthetic, pediatric cardiology, or
1279 perinatology clinical facilities or anesthesia clinical
1280 facilities that are not otherwise exempt under subparagraph 1.
1281 or subparagraph 11. paragraph (a) or paragraph (le) and that are
1282 a publicly traded corporation or are wholly owned, directly or
1283 indirectly, by a publicly traded corporation. As used in this
1284 subparagraph paragraph, a publicly traded corporation is a
1285 corporation that issues securities traded on an exchange
1286 registered with the United States Securities and Exchange
1287 Commission as a national securities exchange.
1288 13.-fm+ Entities that are owned by a corporation that has
1289 $250 million or more in total annual sales of health care
1290 services provided by licensed health care practitioners where
1291 one or more of the persons responsible for the operations of the
1292 entity is a health care practitioner who is licensed in this
1293 state and who is responsible for supervising the business
1294 activities of the entity and is responsible for the entity's
1295 compliance with state law for purposes of this part.
1296 14.-tR+ Entities that employ 50 or more licensed health
1297 care practitioners licensed under chapter 458 or chapter 459
1298 where the billing for medical services is under a single tax
1299 identification number. The application for exemption under this
1300 subsection must include shall contain inferfflation that includes:
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1301 the name, residence, and business address and telephone phone
1302 number of the entity that owns the practice; a complete list of
1303 the names and contact information of all the officers and
1304 directors of the corporation; the name, residence address,
1305 business address, and medical license number of each licensed
1306 Florida health care practitioner employed by the entity; the
1307 corporate tax identification number of the entity seeking an
1308 exemption; a listing of health care services to be provided by
1309 the entity at the health care clinics owned or operated by the
1310 entity~ and a certified statement prepared by an independent
1311 certified public accountant which states that the entity and the
1312 health care clinics owned or operated by the entity have not
1313 received payment for health care services under medical payments
1314 personal injury protection insurance coverage for the preceding
1315 year. If the agency determines that an entity that which is
1316 exempt under this subsection has received payments for medical
1317 services under medical payments personal injury protection
1318 insurance coverage, the agency may deny or revoke the exemption
1319 from licensure under this subsection.
1320 (b) Notwithstanding paragraph (a) this subsection, an
1321 entity is shall be deemed a clinic and must be licensed under
1322 this part in order to receive medical payments coverage
1323 reimbursement under s. 627.7265 unless the entity is: -Hte
1324 Florida P4otor Vehicle No Fault Law, so. 627.730 627.7405, unless
1325 enempted under o. 627.736(5) (h).
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132 6 1. Wholly owned by a physician licensed under chapter 458
1327 or chapter 459, or by the physician and the spouse, parent,
1328 child, or sibling of the physician;
1329 2. Wholly owned by a dentist licensed under chapter 466,
1330 or by the dentist and the spouse, parent, child, or sibling of
1331 the dentist;
1332 3. Wholly owned by a chiropractic physician licensed under
1333 chapter 460, or by the chiropractic physician and the spouse,
1334 parent, child, or sibling of the chiropractic physician;
1335 4. A hospital or ambulatory surgical center licensed under
1336 chapter 395;
1337 5. An entity that wholly owns or is wholly owned, directly
1338 or indirectly, by a hospital or hospitals licensed under chapter
1339 395;
1340 6. A clinical facility affiliated with an accredited
1341 medical school at which training is provided for medical
1342 students, residents, or fellows;
1343 7. Certified under 42 C.F.R. part 485, subpart H; or
1344 8. Owned by a publicly traded corporation, either directly
1345 or indirectly through its subsidiaries, which has $250 million
1346 or more in total annual sales of health care services provided
1347 by licensed health care practitioners, if one or more of the
1348 persons responsible for the operations of the entity are health
1349 care practitioners who are licensed in this state and are
1350 responsible for supervising the business activities of the
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1351 entity and the entity's compliance with state law for purposes
1352 of this subsection.
1353 Section 27. Subsection (5) of section 400.991, Florida
1354 Statutes, is amended to read:
1355 400.991 License requirements; background screenings;
1356 prohibitions.-
1357 (5) All agency forms for licensure application or
1358 exemption from licensure under this part must contain the
1359 following statement:
1360
1361 INSURANCE FRAUD NOTICE.-A person commits a fraudulent
1362 insurance act, as defined ins. 626.989, Florida
1363 Statutes, if the person Wfte knowingly submits a false,
1364 misleading, or fraudulent application or other
1365 document when applying for licensure as a health care
1366 clinic, seeking an exemption from licensure as a
1367 health care clinic, or demonstrating compliance with
1368 part X of chapter 400, Florida Statutes, with the
1369 intent to use the license, exemption from licensure,
1370 or demonstration of compliance to provide services or
1371 seek reimbursement under a motor vehicle liability
1372 insurance policy's medical payments coverage tfte
1373 Florida Heter Vehicle ~l'o Fault Law, cofflfflits a
1374 fraudulent insurance act, as defined ins. 626.989,
1375 Florida Statutes. A person who presents a claim for
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1376 benefits under medical payments coverage, personal
1377 injury protection benefits knowing that the payee
1378 knowingly submitted such health care clinic
1379 application or document, commits insurance fraud, as
1380 defined ins. 817.234, Florida Statutes.
1381 Section 28. Paragraph (g) of subsection (1) of section
1382 400.9935, Florida Statutes, is amended to read:
1383 400.9935 Clinic responsibilities.-
1384 (1) Each clinic shall appoint a medical director or clinic
1385 director who shall agree in writing to accept legal
1386 responsibility for the following activities on behalf of the
1387 clinic. The medical director or the clinic director shall:
1388 (g) Conduct systematic reviews of clinic billings to
1389 ensure that the billings are not fraudulent or unlawful. Upon
1390 discovery of an unlawful charge, the medical director or clinic
1391 director shall take immediate corrective action. If the clinic
1392 performs only the technical component of magnetic resonance
1393 imaging, static radiographs, computed tomography, or positron
1394 emission tomography, and provides the professional
1395 interpretation of such services, in a fixed facility that is
1396 accredited by a national accrediting organization that is
1397 approved by the Centers for Medicare and Medicaid Services for
1398 magnetic resonance imaging and advanced diagnostic imaging
1399 services and if, in the preceding quarter, the percentage of
1400 scans performed by that clinic which was billed to motor vehicle
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1401 all personal injury protection insurance carriers under medical
1402 payments coverage was less than 15 percent, the chief financial
1403 officer of the clinic may, in a written acknowledgment provided
1404 to the agency, assume the responsibility for the conduct of the
1405 systematic reviews of clinic billings to ensure that the
1406 billings are not fraudulent or unlawful.
1407 Section 29. Subsection (28) of section 409.901, Florida
1408 Statutes, is amended to read:
1409 409.901 Definitions; ss. 409.901-409.920.-As used in ss.
1410 409.901-409.920, except as otherwise specifically provided, the
1411 term:
1412 (28) "Third-party benefit" means any benefit that is or
1413 may be available at any time through contract, court award,
1414 judgment, settlement, agreement, or any arrangement between a
1415 third party and any person or entity, including, without
1416 limitation, a Medicaid recipient, a provider, another third
1417 party, an insurer, or the agency, for any Medicaid-covered
1418 injury, illness, goods, or services, including costs of medical
1419 services related thereto, for bodily personal injury or for
1420 death of the recipient, but specifically excluding policies of
1421 life insurance policies on the recipient, unless available under
1422 terms of the policy to pay medical expenses before prior to
1423 death. The term includes, without limitation, collateral, as
1424 defined in this sectionL, health insuranceL, any benefit under a
1425 health maintenance organization, a preferred provider
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1426 arrangement, a prepaid health clinic, liability insurance,
1427 uninsured motorist insurance, or medical payments coverage; or
1428 personal injury protection coverage, medical benefits under
1429 workers' compensation, and any obligation under law or equity to
1430 provide medical support.
1431 Section 30. Paragraph (f) of subsection (11) of section
1432 409.910, Florida Statutes, is amended to read:
1433 409.910 Responsibility for payments on behalf of Medicaid-
1434 eligible persons when other parties are liable.-
1435 ( 11) The agency may, as a matter of right, in order to
1436 enforce its rights under this section, institute, intervene in,
1437 or join any legal or administrative proceeding in its own name
1438 in one or more of the following capacities: individually, as
1439 subrogee of the recipient, as assignee of the recipient, or as
1440 lienholder of the collateral.
1441 (f) Notwithstanding any provision in this section to the
1442 contrary, in the event of an action in tort against a third
1443 party in which the recipient or his or her legal representative
1444 is a party which results in a judgment, award, or settlement
1445 from a third party, the amount recovered shall be distributed as
1446 follows:
1447 1. After attorney attorney's fees and taxable costs as
1448 defined by the Florida Rules of Civil Procedure, one-half of the
1449 remaining recovery shall be paid to the agency up to the total
1450 amount of medical assistance provided by Medicaid.
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1451 2. The remaining amount of the recovery shall be paid to
1452 the recipient.
1453 3. For purposes of calculating the agency's recovery of
1454 medical assistance benefits paid, the fee for services of an
1455 attorney retained by the recipient or his or her legal
1456 representative shall be calculated at 25 percent of the
1457 judgment, award, or settlement.
1458 4. Notwithstanding any other provision of this section to
1459 the contrary, the agency shall be entitled to all medical
1460 coverage benefits up to the total amount of medical assistance
1461 provided by Medicaid. For purposes of this paragraph, the term
1462 "medical coverage" means any benefits under health insurance, a
1463 health maintenance organization, a preferred provider
1464 arrangement, or a prepaid health clinic, and the portion of
1465 benefits designated for medical payments under coverage for
1466 workers' compensation coverage, motor vehicle insurance
1467 coverage, personal injury protection, and casualty coverage.
1468 Section 31. Paragraph (k) of subsection (2) of section
1469 456.057, Florida Statutes, is amended to read:
1470 456.057 Ownership and control of patient records; report
1471 or copies of records to be furnished; disclosure of
1472 information.-
1473 (2) As used in this section, the terms "records owner,"
1474 "health care practitioner," and "health care practitioner's
1475 employer" do not include any of the following persons or
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1476 entities; furthermore, the following persons or entities are not
1477 authorized to acquire or own medical records, but are authorized
1478 under the confidentiality and disclosure requirements of this
1479 section to maintain those documents required by the part or
1480 chapter under which they are licensed or regulated:
1481 (k) Persons or entities practicing under s. 627.7265 -s--.--
1482 627.736(7).
1483 Section 32. Paragraphs (ee) and (ff) of subsection (1) of
1484 section 456.072, Florida Statutes, are amended to read:
1485 456.072 Grounds for discipline; penalties; enforcement.-
1486 (1) The following acts shall constitute grounds for which
1487 the disciplinary actions specified in subsection (2) may be
1488 taken:
1489 (ee) With respect to making a medical payments coverage
1490 perooRal iRjury proteetioR claim under s. 627.7265 as required
1491 by o. 627.736, intentionally submitting a claim, statement, or
1492 bill that has been upcoded. As used in this paragraph, the term
1493 "upcoded" means an action that submits a billing code that would
1494 result in a greater payment amount than would be paid using a
1495 billing code that accurately describes the services performed.
1496 The term does not include an otherwise lawful bill by a magnetic
1497 resonance imaging facility, which globally combines both
1498 technical and professional components, if the amount of the
1499 global bill is not more than the components if billed
1500 separately; however, payment of such a bill constitutes payment
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1501 in full for all components of such service "upcoded" as defined
1502 ins. 627.732.
1503 (ff) With respect to making a medical payments coverage
1504 personal injury protection claim as required under s. 627.7265
1505 bys. 627.736, intentionally submitting a claim, statement, or
1506 bill for payment of services that were not rendered.
1507 Section 33. Paragraphs (i) and (o) of subsection (1) of
1508 section 626.9541, Florida Statutes, are amended to read:
1509 626.9541 Unfair methods of competition and unfair or
1510 deceptive acts or practices defined.-
1511 ( 1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
1512 ACTS.-The following are defined as unfair methods of competition
1513 and unfair or deceptive acts or practices:
1514 (i) Unfair claim settlement practiccs.-
1515 l. Attempting to settle claims on the basis of an
1516 application, when serving as a binder or intended to become a
1517 part of the policy, or any other material document which was
1518 altered without notice to, or knowledge or consent of, the
1519 insured;
1520 2. A material misrepresentation made to an insured or any
1521 other person having an interest in the proceeds payable under
1522 such contract or policy, for the purpose and with the intent of
1523 effecting settlement of such claims, loss, or damage under such
1524 contract or policy on less favorable terms than those provided
1525 in, and contemplated by, such contract or policy; e-r-
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1526 3. Committing or performing with such frequency as to
1527 indicate a general business practice any of the following:
1528 a. Failing to adopt and implement standards for the proper
1529 investigation of claims;
1530 b. Misrepresenting pertinent facts or insurance policy
1531 provisions relating to coverages at issue;
1532 c. Failing to acknowledge and act promptly upon
1533 communications with respect to claims;
1534 d. Denying claims without conducting reasonable
1535 investigations based upon available information;
1536 e. Failing to affirm or deny full or partial coverage of
1537 claims, and, as to partial coverage, the dollar amount or extent
1538 of coverage, or failing to provide a written statement that the
1539 claim is being investigated, upon the written request of the
1540 insured within 30 days after proof-of-loss statements have been
1541 completed;
1542 f. Failing to promptly provide a reasonable explanation in
1543 writing to the insured of the basis in the insurance policy, in
1544 relation to the facts or applicable law, for denial of a claim
1545 or for the offer of a compromise settlement;
1546 g. Failing to promptly notify the insured of any
1547 additional information necessary for the processing of a claim;
1548 or
1549 h. Failing to clearly explain the nature of the requested
1550 information and the reasons why such information is necessary.
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1551 i. Failing to pay personal injury protection insurance
1552 claiffls within the tiffle periods required by s. 627. 73 6 ( 4) (b) . The
1553 office Fflay order the insurer to pay restitution to a
1554 policyholder, Ffledical provider, or other claifflant, including
1555 interest at a rate consistent with the afflount set forth ins.
1556 55.03(1), for the tiffle period within which an insurer fails to
1557 pay claiffls as required by law. Restitution is in addition to any
1558 other penalties allowed by law, including, but not lifflited to,
1559 the suspension of the insurer's certificate of authority.
1560 4. Failing to pay undisputed amounts of partial or full
1561 benefits owed under first-party property insurance policies
1562 within 90 days after an insurer receives notice of a residential
1563 property insurance claim, determines the amounts of partial or
1564 full benefits, and agrees to coverage, unless payment of the
1565 undisputed benefits is prevented by an act of God, prevented by
1566 the impossibility of performance, or due to actions by the
1567 insured or claimant that constitute fraud, lack of cooperation,
1568 or intentional misrepresentation regarding the claim for which
1569 benefits are owed.
1570 (o) Illegal dealings in premiums; excess or reduced
1571 charges for insurance.-
1572 l. Knowingly collecting any sum as a premium or charge for
1573 insurance, which is not then provided, or is not in due course
1574 to be provided, subject to acceptance of the risk by the
1575 insurer, by an insurance policy issued by an insurer as
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1576 permitted by this code.
1577 2. Knowingly collecting as a premium or charge for
1578 insurance any sum in excess of or less than the premium or
1579 charge applicable to such insurance, in accordance with the
1580 applicable classifications and rates as filed with and approved
1581 by the office, and as specified in the policy; or, in cases when
1582 classifications, premiums, or rates are not required by this
1583 code to be so filed and approved, premiums and charges collected
1584 from a Florida resident in excess of or less than those
1585 specified in the policy and as fixed by the insurer.
1586 Notwithstanding any other provision of law, this provision shall
1587 not be deemed to prohibit the charging and collection, by
1588 surplus lines agents licensed under part VIII of this chapter,
1589 of the amount of applicable state and federal taxes, or fees as
1590 authorized bys. 626.916(4), in addition to the premium required
1591 by the insurer or the charging and collection, by licensed
1592 agents, of the exact amount of any discount or other such fee
1593 charged by a credit card facility in connection with the use of
1594 a credit card, as authorized by subparagraph (q)3., in addition
1595 to the premium required by the insurer. This subparagraph shall
1596 not be construed to prohibit collection of a premium for a
1597 universal life or a variable or indeterminate value insurance
1598 policy made in accordance with the terms of the contract.
1599 3.a. Imposing or requesting an additional premium for
1600 bodily injury liability coverage, property damage liability
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1601 coverage a poliey of ffiotor vehicle liability, personal injury
1602 protection, medical payments coverage payffient, or collision
1603 coverage in a motor vehicle liability insurance policy insurance
1604 or any coffibination thereof or refusing to renew the policy
1605 solely because the insured was involved in a motor vehicle
1606 accident unless the insurer's file contains information from
1607 which the insurer in good faith determines that the insured was
1608 substantially at fault in the accident.
1609 b. An insurer which imposes and collects such a surcharge
1610 or which refuses to renew such policy shall, in conjunction with
1611 the notice of premium due or notice of nonrenewal, notify the
1612 named insured that he or she is entitled to reimbursement of
1613 such amount or renewal of the policy under the conditions listed
1614 below and will subsequently reimburse him or her or renew the
1615 policy, if the named insured demonstrates that the operator
1616 involved in the accident was:
1617 (I) Lawfully parked;
1618 (II) Reimbursed by, or on behalf of, a person responsible
1619 for the accident or has a judgment against such person;
1620 (III) Struck in the rear by another vehicle headed in the
1621 same direction and was not convicted of a moving traffic
1622 violation in connection with the accident;
1623 (IV) Hit by a "hit-and-run" driver, if the accident was
1624 reported to the proper authorities within 24 hours after
1625 discovering the accident;
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1626 (V) Not convicted of a moving traffic violation in
1627 connection with the accident, but the operator of the other
1628 automobile involved in such accident was convicted of a moving
1629 traffic violation;
1630 (VI) Finally adjudicated not to be liable by a court of
1631 competent jurisdiction;
1632 (VII) In receipt of a traffic citation which was dismissed
1633 or nolle prossed; or
1634 (VIII) Not at fault as evidenced by a written statement
1635 from the insured establishing facts demonstrating lack of fault
1636 which are not rebutted by information in the insurer's file from
1637 which the insurer in good faith determines that the insured was
1638 substantially at fault.
1639 c. In addition to the other provisions of this
1640 subparagraph, an insurer may not fail to renew a policy if the
1641 insured has had only one accident in which he or she was at
1642 fault within the current 3-year period. However, an insurer may
1643 nonrenew a policy for reasons other than accidents in accordance
1644 withs. 627.728. This subparagraph does not prohibit nonrenewal
1645 of a policy under which the insured has had three or more
1646 accidents, regardless of fault, during the most recent 3-year
1647 period.
1648 4. Imposing or requesting an additional premium for, or
1649 refusing to renew, a policy for motor vehicle insurance solely
1650 because the insured committed a noncriminal traffic infraction
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1651 as described ins. 318.14 unless the infraction is:
1652 a. A second infraction committed within an 18-month
1653 period, or a third or subsequent infraction committed within a
1654 36-month period.
1655 b. A violation of s. 316.183, when such violation is a
1656 result of exceeding the lawful speed limit by more than 15 miles
1657 per hour.
1658 5. Upon the request of the insured, the insurer and
1659 licensed agent shall supply to the insured the complete proof of
1660 fault or other criteria which justifies the additional charge or
1661 cancellation.
1662 6. No insurer shall impose or request an additional
1663 premium for motor vehicle insurance, cancel or refuse to issue a
1664 policy, or refuse to renew a policy because the insured or the
1665 applicant is a handicapped or physically disabled person, so
1666 long as such handicap or physical disability does not
1667 substantially impair such person's mechanically assisted driving
1668 ability.
1669 7. No insurer may cancel or otherwise terminate any
1670 insurance contract or coverage, or require execution of a
1671 consent to rate endorsement, during the stated policy term for
1672 the purpose of offering to issue, or issuing, a similar or
1673 identical contract or coverage to the same insured with the same
1674 exposure at a higher premium rate or continuing an existing
1675 contract or coverage with the same exposure at an increased
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1676 premium.
1677 8. No insurer may issue a nonrenewal notice on any
1678 insurance contract or coverage, or require execution of a
1679 consent to rate endorsement, for the purpose of offering to
1680 issue, or issuing, a similar or identical contract or coverage
1681 to the same insured at a higher premium rate or continuing an
1682 existing contract or coverage at an increased premium without
1683 meeting any applicable notice requirements.
1684 9. No insurer shall, with respect to premiums charged for
1685 motor vehicle insurance, unfairly discriminate solely on the
1686 basis of age, sex, marital status, or scholastic achievement.
1687 10. Imposing or requesting an additional premium for motor
1688 vehicle comprehensive or uninsured motorist coverage solely
1689 because the insured was involved in a motor vehicle accident or
1690 was convicted of a moving traffic violation.
1691 11. No insurer shall cancel or issue a nonrenewal notice
1692 on any insurance policy or contract without complying with any
1693 applicable cancellation or nonrenewal provision required under
1694 the Florida Insurance Code.
1695 12. No insurer shall impose or request an additional
1696 premium, cancel a policy, or issue a nonrenewal notice on any
1697 insurance policy or contract because of any traffic infraction
1698 when adjudication has been withheld and no points have been
1699 assessed pursuant to s. 318.14(9) and (10). However, this
1700 subparagraph does not apply to traffic infractions involving
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1701 accidents in which the insurer has incurred a loss due to the
1702 fault of the insured.
1703 Section 34. Paragraph (a) of subsection (1) of section
1704 626.989, Florida Statutes, is amended to read:
1705 626.989 Investigation by department or Division of
1706 Investigative and Forensic Services; compliance; immunity;
1707 confidential information; reports to division; division
1708 investigator's power of arrest.-
1709 (1) For the purposes of this section:
1710 (a) A person commits a "fraudulent insurance act" if the
1711 person:
1712 1. Knowingly and with intent to defraud presents, causes
1713 to be presented, or prepares with knowledge or belief that it
1714 will be presented, to or by an insurer, self-insurer, self-
1715 insurance fund, servicing corporation, purported insurer,
1716 broker, or any agent thereof, any written statement as part of,
1717 or in support of, an application for the issuance of, or the
1718 rating of, any insurance policy, or a claim for payment or other
1719 benefit pursuant to any insurance policy, which the person knows
1720 to contain materially false information concerning any fact
1721 material thereto or if the person conceals, for the purpose of
1722 misleading another, information concerning any fact material
1723 thereto.
1724 2. Knowingly submits:
1725 a. A false, misleading, or fraudulent application or other
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1726 document when applying for licensure as a health care clinic,
1727 seeking an exemption from licensure as a health care clinic, or
1728 demonstrating compliance with part X of chapter 400 with an
1729 intent to use the license, exemption from licensure, or
1730 demonstration of compliance to provide services or seek
1731 reimbursement under a motor vehicle liability insurance policy's
1732 medical payments coverage the Florida Heter Vehicle No Fault
1733 fra-w.
1734 b. A claim for payment or other benefit under medical
1735 payments coverage pursuant to a personal injury protection
1736 insurance policy under the Florida P1otor Vehicle No Fault Law if
1737 the person knows that the payee knowingly submitted a false,
1738 misleading, or fraudulent application or other document when
1739 applying for licensure as a health care clinic, seeking an
1740 exemption from licensure as a health care clinic, or
1741 demonstrating compliance with part X of chapter 400.
1742 Section 35. Subsection (1) of section 627.06501, Florida
1743 Statutes, is amended to read:
1744 627.06501 Insurance discounts for certain persons
1745 completing driver improvement course.-
1746 (1) Any rate, rating schedule, or rating manual for the
1747 liability, medical payments personal injury protection, and
1748 collision coverages of a motor vehicle insurance policy filed
1749 with the office may provide for an appropriate reduction in
1750 premium charges as to such coverages if Wfieft the principal
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1751 operator on the covered vehicle has successfully completed a
1752 driver improvement course approved and certified by the
1753 Department of Highway Safety and Motor Vehicles which is
1754 effective in reducing crash or violation rates, or both, as
1755 determined pursuant to s. 318.1451(5). Any discount, not to
1756 exceed 10 percent, used by an insurer is presumed to be
1757 appropriate unless credible data demonstrates otherwise.
1758 Section 36. Subsection (15) is added to section 627.0651,
1759 Florida Statutes, to read:
17 60 627.0651 Making and use of rates for motor vehicle
1761 insurance.-
1762 ( 15) Initial rate filings for motor vehicle liability
1763 policies which are submitted to the office on or after January
17 64 1, 2021, must reflect the financial responsibility requirements
1765 ins. 324.022, as amended, and may be approved only through the
1766 file and use process under s. 627.0651(1) (a).
1767 Section 37. Subsection (1) of section 627.0652, Florida
1768 Statutes, is amended to read:
1769 627.0652 Insurance discounts for certain persons
1770 completing safety course.-
1771 (1) Any rates, rating schedules, or rating manuals for the
1772 liability, medical payments persoRal iRjury protectioR, and
1773 collision coverages of a motor vehicle insurance policy filed
1774 with the office must shall provide for an appropriate reduction
1775 in premium charges as to such coverages if Wfleft the principal
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1776 operator on the covered vehicle is an insured 55 years of age or
1777 older who has successfully completed a motor vehicle accident
1778 prevention course approved by the Department of Highway Safety
1779 and Motor Vehicles. Any discount used by an insurer is presumed
1780 to be appropriate unless credible data demonstrates otherwise.
1781 Section 3 8. Subsections ( 1) , ( 3) , and ( 6) of section
1782 627.0653, Florida Statutes, are amended to read:
1783 627.0653 Insurance discounts for specified motor vehicle
1784 equipment.-
1785 (1) Any rates, rating schedules, or rating manuals for the
1786 liability, medical payments personal injury protection, and
1787 collision coverages of a motor vehicle insurance policy filed
1788 with the office must shall provide a premium discount if the
1789 insured vehicle is equipped with factory-installed, four-wheel
1790 antilock brakes.
1791 (3) Any rates, rating schedules, or rating manuals for
1792 personal injury protection coverage and medical payments
1793 coverage, if offered, of a motor vehicle insurance policy filed
1794 with the office must shall provide a premium discount if the
1795 insured vehicle is equipped with one or more air bags that which
1796 are factory installed.
1797 (6) The Office of Insurance Regulation may approve a
1798 premium discount to any rates, rating schedules, or rating
1799 manuals for the liability, medical payments personal injury
1800 protection, and collision coverages of a motor vehicle insurance
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1801 policy filed with the office if the insured vehicle is equipped
1802 with an automated driving system or electronic vehicle collision
1803 avoidance technology that is factory installed or a retrofitted
1804 system and that complies with National Highway Traffic Safety
1805 Administration standards.
1806 Section 39. Section 627.4132, Florida Statutes, is amended
1807 to read:
1808 627.4132 Stacking of coverages prohibited.-If an insured
1809 or named insured is protected by any type of motor vehicle
1810 insurance policy for bodily injury and property damage
1811 liability, personal injury proteetion, or other coverage, the
1812 policy must shall provide that the insured or named insured is
1813 protected only to the extent of the coverage she or he has on
1814 the vehicle involved in the accident. However, if none of the
1815 insured's or named insured's vehicles are -:i:-s- involved in the
1816 accident, coverage is available only to the extent of coverage
1817 on any one of the vehicles with applicable coverage. Coverage on
1818 any other vehicles may shall not be added to or stacked upon
1819 that coverage. This section does not apply:
1820 (1) To uninsured motorist coverage that which is
1821 separately governed bys. 627.727.
1822 (2) To reduce the coverage available by reason of
1823 insurance policies insuring different named insureds.
1824 Section 40. Section 627.7263, Florida Statutes, is amended
1825 to read:
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1826 627.7263 Rental and leasing driver's insurance to be
1827 primary; exception.-
1828 (1) The valid and collectible liability insurance and
1829 medical payments coverage or personal injury protection
1830 insurance providing coverage for the lessor of a motor vehicle
1831 for rent or lease is primary unless otherwise stated in at least
1832 10-point type on the face of the rental or lease agreement. Such
1833 insurance is primary for the limits of liability and personal
1834 injury protection coverage as required bys. 324.021(7) and the
1835 medical payments coverage limit specified under s. 627.7265 -5-5--;-
1836 324.021(7) and 627.736.
1837 (2) If the lessee's coverage is to be primary, the rental
1838 or lease agreement must contain the following language, in at
1839 least 10-point type:
1840
1841 "The valid and collectible liability insurance and
1842 medical payments coverage personal injury protection
1843 insurance of an a,ny authorized rental or leasing
1844 driver is primary for the limits of liability a-n-a-
1845 personal injury protection coverage required under
1846 section 324.021(7), Florida Statutes, and the medical
1847 payments coverage limit specified under section
1848 627.7265 by so. 324.021(7) and 627.736, Florida
1849 Statutes."
1850 Section 41. Section 627.7265, Florida Statutes, is created
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1851 to read:
1852 627.7265 Motor vehicle insurance; medical payments
1853 coverage.-
1854 (1) Medical payments coverage must protect the named
1855 insured, resident relatives, persons operating the insured motor
1856 vehicle, passengers in the insured motor vehicle, and persons
1857 who are struck by the insured motor vehicle and suffer bodily
1858 injury while not an occupant of a self-propelled motor vehicle
1859 at a limit of at least $5,000 for medical expense incurred due
1860 to bodily injury, sickness, or disease arising out of the
1861 ownership, maintenance, or use of a motor vehicle. The coverage
1862 must provide an additional death benefit of at least $5,000.
1863 (a) Before issuing a motor vehicle liability insurance
1864 policy that is furnished as proof of financial responsibility
1865 under s. 324.031, the insurer must offer medical payments
1866 coverage at limits of $5,000 and $10,000. The insurer may also
1867 offer medical payments coverage at any limit greater than
1868 $5,000.
1869 (b) The medical payments coverage must be offered with an
1870 option with no deductible. The insurer may also offer medical
1871 payments coverage with a deductible not to exceed $500.
1872 (c) Each motor vehicle liability insurance policy that is
1873 furnished as proof of financial responsibility under s. 324.031
1874 is deemed to have:
1875 1. Medical payments coverage to a limit of $10,000, unless
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1876 the insurer obtains the policyholder's written refusal of
1877 medical payments coverage or written selection of medical
1878 payments coverage at a limit other than $10,000. The rejection
1879 or selection of coverage at a limit other than $10,000 must be
1880 made on a form approved by the office.
1881 2. No medical payments coverage deductible, unless the
1882 insurer obtains the policyholder's written selection of a
1883 deductible of up to $500. The selection of a deductible must be
1884 made on a form approved by the office.
1885 (d)l. The forms in subparagraphs (c)l. and 2. must fully
1886 advise the applicant of the nature of the coverage being
1887 rejected or the policy limit or deductible being selected. If
1888 the form is signed by a named insured, it is conclusively
1889 presumed that there was an informed, knowing rejection of the
1890 coverage or election of the policy limit or deductible selected.
1891 2. Unless the policyholder requests in writing the
1892 coverage specified in this section, it need not be provided in
1893 or supplemental to any other policy that renews, insures,
1894 extends, changes, supersedes, or replaces an existing policy if
1895 the policyholder has rejected the coverage specified in this
1896 section or has selected an alternative coverage limit or
1897 deductible. At least annually, the insurer shall provide the
1898 policyholder with a notice of the availability of such coverage
1899 in a form approved by the office. The notice must be part of,
1900 and attached to, the notice of premium and must provide for a
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1901 means to allow the insured to request medical payments coverage
1902 at the limits and deductibles required to be offered under this
1903 section. The notice must be given in a manner approved by the
1904 office. Receipt of this notice does not constitute an
1905 affirmative waiver of the insured's right to medical payments
1906 coverage if the insured has not signed a selection or rejection
1907 form.
1908 (e) This section may not be construed to limit any other
1909 coverage made available by an insurer.
1910 (2) Upon receiving notice of an accident that is
1911 potentially covered by medical payments coverage benefits, the
1912 insurer must reserve $5,000 of medical payments coverage
1913 benefits for payment to physicians licensed under chapter 458 or
1914 chapter 459 or dentists licensed under chapter 466 who provide
1915 emergency services and care, as defined ins. 395.002, or who
1916 provide hospital inpatient care. The amount required to be held
1917 in reserve may be used only to pay claims from such physicians
1918 or dentists until 30 days after the date the insurer receives
1919 notice of the accident. After the 30-day period, any amount of
1920 the reserve for which the insurer has not received notice of
1921 such claims may be used by the insurer to pay other claims. This
1922 subsection does not require an insurer to establish a claim
1923 reserve for insurance accounting purposes.
1924 (3) An insurer providing medical payments coverage
1925 benefits may not have a:
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1926 (a) Lien on any recovery in tort by judgment, settlement,
1927 or otherwise for medical payments coverage benefits, whether
1928 suit has been filed or settlement has been reached without suit;
1929 or
1930 (b) Cause of action against a person to whom or for whom
1931 medical payments coverage benefits were paid, except when
1932 medical payments coverage benefits are paid by reason of fraud
1933 the person commits.
1934 (4) An insurer providing medical payments coverage may
1935 include provisions in its policy allowing for subrogation for
1936 medical payments benefits paid if the expenses giving rise to
1937 the payments were caused by the wrongful act or omission of
1938 another who is not also an insured under the policy paying the
1939 medical payments benefits. However, this subrogation right is
1940 inferior to the rights of the injured insured and is available
1941 only after all the insured's damages are recovered and the
1942 insured is made whole. An insured who obtains a recovery from a
1943 third party of the full amount of the damages sustained and
1944 delivers a release or satisfaction that impairs a medical
1945 payments insurer's subrogation right is liable to the insurer
1946 for repayment of medical payments benefits less any expenses of
1947 acquiring the recovery, including a prorated share of attorney
1948 fees and costs, and shall hold that net recovery in trust to be
1949 delivered to the medical payments insurer. The insurer may not
1950 include any provision in its policy allowing for subrogation for
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1951 any death benefit paid.
1952 Section 42. Subsections (1) and (7) of section 627.727,
1953 Florida Statutes, are amended to read:
1954 627.727 Motor vehicle insurance; uninsured and
1955 underinsured vehicle coverage; insolvent insurer protection.-
1956 (1) A Ne motor vehicle liability insurance policy that
1957 whieh provides bodily injury liability coverage may not shall be
1958 delivered or issued for delivery in this state with respect to
1959 any specifically insured or identified motor vehicle registered
1960 or principally garaged in this state~ unless uninsured motor
1961 vehicle coverage is provided therein or supplemental thereto for
1962 the protection of persons insured thereunder who are legally
1963 entitled to recover damages from owners or operators of
1964 uninsured motor vehicles because of bodily injury, sickness, or
1965 disease, including death, resulting therefrom. However, the
1966 coverage required under this section is not applicable if Wfie-fr,
1967 or to the extent that, an insured named in the policy makes a
1968 written rejection of the coverage on behalf of all insureds
1969 under the policy. If Wfi.eft a motor vehicle is leased for a period
1970 e-£- 1 year or longer and the lessor of such vehicle, by the terms
1971 of the lease contract, provides liability coverage on the leased
1972 vehicle, the lessee of such vehicle has shall have the sole
1973 privilege to reject uninsured motorist coverage or to select
1974 lower limits than the bodily injury liability limits, regardless
1975 of whether the lessor is qualified as a self-insurer pursuant to
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1976 s. 324.171. Unless an insured, or~ lessee having the privilege
1977 of rejecting uninsured motorist coverage, requests such coverage
1978 or requests higher uninsured motorist limits in writing, the
1979 coverage or such higher uninsured motorist limits need not be
1980 provided in or supplemental to any other policy that which
1981 renews, extends, changes, supersedes, or replaces an existing
1982 policy with the same bodily injury liability limits when an
1983 insured or lessee had rejected the coverage. When an insured or
1984 lessee has initially selected limits of uninsured motorist
1985 coverage lower than her or his bodily injury liability limits,
1986 higher limits of uninsured motorist coverage need not be
1987 provided in or supplemental to any other policy that which
1988 renews, extends, changes, supersedes, or replaces an existing
1989 policy with the same bodily injury liability limits unless an
1990 insured requests higher uninsured motorist coverage in writing.
1991 The rejection or selection of lower limits must shall be made on
1992 a form approved by the office. The form must shall fully advise
1993 the applicant of the nature of the coverage and must shall state
1994 that the coverage is equal to bodily injury liability limits
1995 unless lower limits are requested or the coverage is rejected.
1996 The heading of the form must shall be in 12-point bold type and
1997 must shall state: "You are electing not to purchase certain
1998 valuable coverage that which protects you and your family or you
1999 are purchasing uninsured motorist limits less than your bodily
2000 injury liability limits when you sign this form. Please read
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2001 carefully." If this form is signed by a named insured, it will
2002 be conclusively presumed that there was an informed, knowing
2003 rejection of coverage or election of lower limits on behalf of
2004 all insureds. The insurer shall notify the named insured at
2005 least annually of her or his options as to the coverage required
2006 by this section. Such notice must shall be part of, and attached
2007 to, the notice of premium, must shall provide for a means to
2008 allow the insured to request such coverage, and must shall be
2009 given in a manner approved by the office. Receipt of this notice
2010 does not constitute an affirmative waiver of the insured's right
2011 to uninsured motorist coverage if where the insured has not
2012 signed a selection or rejection form. The coverage described
2013 under this section must shall be over and above, but may shall
2014 not duplicate, the benefits available to an insured under any
2015 workers' compensation law, personal injury protection benefits,
2016 disability benefits law, or similar law; under any automobile
2017 medical payments CJfpense coverage; under any motor vehicle
2018 liability insurance coverage; or from the owner or operator of
2019 the uninsured motor vehicle or any other person or organization
2020 jointly or severally liable together with such owner or operator
2021 for the accident~T and such coverage must shall cover the
2022 difference, if any, between the sum of such benefits and the
2023 damages sustained, up to the maximum amount of such coverage
2024 provided under this section. The amount of coverage available
2025 under this section may shall not be reduced by a setoff against
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2026 any coverage, including liability insurance. Such coverage does
2027 shall not inure directly or indirectly to the benefit of any
2028 workers' compensation or disability benefits carrier or any
2029 person or organization qualifying as a self-insurer under any
2030 workers' compensation or disability benefits law or similar law.
2031 (7) The legal liability of an uninsured motorist coverage
2032 insurer includes does not include damages in tort for pain,
2033 suffering, disability or physical impairment, disfigurement,
2034 mental anguish, aftEi inconvenience, and the loss of capacity for
2035 the enjoyment of life experienced in the past and to be
2036 experienced in the future unless the injury or disease is
2037 described in one or more of paragraphs (a) (d) of s. 627.737(2)
2038 Section 43. Subsection (1) and paragraphs (a) and (b) of
2039 subsection (2) of section 627.7275, Florida Statutes, are
2040 amended to read:
2041 627.7275 Motor vehicle liability.-
2042 (1) A motor vehicle insurance policy providing personal
2043 injury protection as set forth ins. 627.736 may not be
2044 delivered or issued for delivery in this state for a w-i-Ht
2045 respect to any specifically insured or identified motor vehicle
2046 registered or principally garaged in this state must provide
2047 bodily injury liability coverage and unless the policy also
2048 provides coverage for property damage liability coverage as
2049 required under bys. 324.022.
2050 (2) (a) Insurers writing motor vehicle insurance in this
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2051 state shall make available, subject to the insurers' usual
2052 underwriting restrictions:
2053 1. Coverage under policies as described in subsection (1)
2054 to an applicant for private passenger motor vehicle insurance
2055 coverage who is seeking the coverage in order to reinstate the
2056 applicant's driving privileges in this state if the driving
2057 privileges were revoked or suspended pursuant to s. 316.646 or
2058 s. 324.0221 due to the failure of the applicant to maintain
2059 required security.
2060 2. Coverage under policies as described in subsection (1),
2061 which includes bodily injury also provides liability coverage
2062 and property damage liability coverage, for bodily injury,
2063 death, and property damage arising out of the ownership,
2064 maintenance, or use of the motor vehicle in an amount not less
2065 than the minimum limits required under described ins.
2066 324.021(7) ors. 324.023 and which conforms to the requirements
2067 of s. 324.151, to an applicant for private passenger motor
2068 vehicle insurance coverage who is seeking the coverage in order
2069 to reinstate the applicant's driving privileges in this state
2070 after such privileges were revoked or suspended under s. 316.193
2071 ors. 322.26(2) for driving under the influence.
2072 (b) The policies described in paragraph (a) must shall be
2073 issued for at least 6 months and, as to the minimum coverages
2074 required under this section, may not be canceled by the insured
2075 for any reason or by the insurer after 60 days, during which
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2076 period the insurer is completing the underwriting of the policy.
2077 After the insurer has completed underwriting the policy, the
2078 insurer shall notify the Department of Highway Safety and Motor
2079 Vehicles that the policy is in full force and effect and is not
2080 cancelable for the remainder of the policy period. A premium
2081 must shall be collected and the coverage is in effect for the
2082 60-day period during which the insurer is completing the
2083 underwriting of the policy~ whether or not the person's driver
2084 license, motor vehicle tag, and motor vehicle registration are
2085 in effect. Once the noncancelable provisions of the policy
2086 become effective, the bodily injury liability and property
2087 damage liability coverages for bodily injury, property damage,
2088 and personal injury protection may not be reduced below the
2089 minimum limits required under s. 324.021 ors. 324.023 during
2090 the policy period.
2091 Section 44. Effective upon this act becoming a law,
2092 section 627.7278, Florida Statutes, is created to read:
2093 627.7278 Applicability and construction; notice to
2094 policyholders.-
2095 (1) As used in this section, the term "minimum security
2096 requirements" means security that enables a person to respond in
2097 damages for liability on account of crashes arising out of the
2098 ownership, maintenance, or use of a motor vehicle, in the
2099 amounts required bys. 324.021(7).
2100 (2) Effective January 1, 2021:
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2101 (a) Motor vehicle insurance policies issued or renewed on
2102 or after that date may not include personal injury protection.
2103 (b) All persons subject to s. 324.022, s. 324.032, s.
2104 627.7415, ors. 627.742 must maintain at least minimum security
2105 requirements.
2106 (c) Any new or renewal motor vehicle insurance policy
2107 delivered or issued for delivery in this state must provide
2108 coverage that complies with minimum security requirements.
2109 (d) An existing motor vehicle insurance policy issued
2110 before January 1, 2021, that provides personal injury protection
2111 and property damage liability coverage which meets the
2112 requirements of s. 324.022 on December 31, 2020, but which does
2113 not meet minimum security requirements on or after January 1,
2114 2021, is deemed to meet the security requirements of s. 324.022
2115 until such policy is renewed, nonrenewed, or canceled on or
2116 after January 1, 2021. Sections 400.9905, 400.991, 456.057,
2117 456.072, 626.9541(1)(i), 627.7263, 627.727, 627.730-627.7405,
2118 627.748, and 817.234, Florida Statutes 2019, remain in full
2119 force and effect for motor vehicle accidents covered under a
2120 policy issued under the Florida Motor Vehicle No-Fault Law
2121 before January 1, 2021, until the policy is renewed, nonrenewed,
2122 or canceled on or after January 1, 2021.
2123 (3) Each insurer shall allow each insured who has a new or
2124 renewal policy providing personal injury protection which
2125 becomes effective before January 1, 2021, and whose policy does
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2126 not meet minimum security requirements on or after January 1,
2127 2021, to change coverages so as to eliminate personal injury
2128 protection and obtain coverage providing minimum security
2129 requirements, which shall be effective on or after January 1,
2130 2021. The insurer is not required to provide coverage complying
2131 with minimum security requirements in such policies if the
2132 insured does not pay the required premium, if any, by January 1,
2133 2021, or such later date as the insurer may allow. The insurer
2134 must also offer each insured medical payments coverage pursuant
2135 to s. 627.7265. Any reduction in the premium must be refunded by
2136 the insurer. The insurer may not impose on the insured an
2137 additional fee or charge that applies solely to a change in
2138 coverage; however, the insurer may charge an additional required
2139 premium that is actuarially indicated.
2140 ( 4) By September 1, 2020, each motor vehicle insurer shall
2141 provide notice of this section to each motor vehicle
2142 policyholder who is subject to this section. The notice is
2143 subject to approval by the office and must clearly inform the
2144 policyholder that:
2145 (a) The Florida Motor Vehicle No-Fault Law is repealed
2146 effective January 1, 2021, and that on or after that date, the
2147 insured is no longer required to maintain personal injury
2148 protection insurance coverage, that personal injury protection
2149 coverage is no longer available for purchase in this state, and
2150 that all new or renewal policies issued on or after that date
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2151 will not contain that coverage.
2152 (b) Effective January 1, 2021, a person subject to the
2153 financial responsibility requirements of s. 324.022 must
2154 maintain minimum security requirements that enable the person to
2155 respond to damages for liability on account of accidents arising
2156 out of the use of a motor vehicle in the following amounts:
2157 1. Twenty-five thousand dollars for bodily injury to, or
2158 the death of, one person in any one crash and, subject to such
2159 limits for one person, in the amount of $50,000 for bodily
2160 injury to, or the death of, two or more persons in any one
2161 crash; and
2162 2. Ten thousand dollars for damage to, or destruction of,
2163 the property of others in any one crash.
2164 (c) Bodily injury liability coverage protects the insured,
2165 up to the coverage limits, against loss if the insured is
2166 legally responsible for the death of or bodily injury to others
2167 in a motor vehicle accident.
2168 (d) Effective January 1, 2021, each policyholder of motor
2169 vehicle liability insurance purchased as proof of financial
2170 responsibility must be offered medical payments coverage
2171 benefits that comply withs. 627.7265. The insurer must offer
2172 medical payments coverage at limits of $5,000 and $10,000
2173 without a deductible. The insurer may also offer medical
2174 payments coverage at other limits greater than $5,000, and may
2175 offer coverage with a deductible of up to $500. Medical payments
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2176 coverage pays covered medical expenses incurred due to bodily
2177 injury, sickness, or disease arising out of the ownership,
2178 maintenance, or use of the motor vehicle, up to the limits of
2179 such coverage, for injuries sustained in a motor vehicle crash
2180 by the named insured, resident relatives, persons operating the
2181 insured motor vehicle, passengers in the insured motor vehicle,
2182 and persons who are struck by the insured motor vehicle and
2183 suffer bodily injury while not an occupant of a self-propelled
2184 motor vehicle as provided ins. 627.7265. Medical payments
2185 coverage also provides a death benefit of at least $5,000.
2186 (e) The policyholder may obtain uninsured and underinsured
2187 motorist coverage, which provides benefits, up to the limits of
2188 such coverage, to a policyholder or other insured entitled to
2189 recover damages for bodily injury, sickness, disease, or death
2190 resulting from a motor vehicle accident with an uninsured or
2191 underinsured owner or operator of a motor vehicle.
2192 (f) If the policyholder's new or renewal motor vehicle
2193 insurance policy is effective before January 1, 2021, and
2194 contains personal injury protection and property damage
2195 liability coverage as required by state law before January 1,
2196 2021, but does not meet minimum security requirements on or
2197 after January 1, 2021, the policy is deemed to meet minimum
2198 security requirements until it is renewed, nonrenewed, or
2199 canceled on or after January 1, 2021.
2200 (g) A policyholder whose new or renewal policy becomes
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2201 effective before January 1, 2021, but does not meet minimum
2202 security requirements on or after January 1, 2021, may change
2203 coverages under the policy so as to eliminate personal injury
2204 protection and to obtain coverage providing minimum security
2205 requirements, including bodily injury liability coverage, which
2206 are effective on or after January 1, 2021.
2207 (h) If the policyholder has any questions, he or she
2208 should contact the person named at the telephone number provided
2209 in the notice.
2210 Section 45. Paragraph (a) of subsection (1) of section
2211 627.728, Florida Statutes, is amended to read:
2212 627.728 Cancellations; nonrenewals.-
2213 (1) As used in this section, the term:
2214 (a) "Policy" means the bodily injury and property damage
2215 liability, personal injury protection, medical payments,
2216 comprehensive, collision, and uninsured motorist coverage
2217 portions of a policy of motor vehicle insurance delivered or
2218 issued for delivery in this state:
2219 1. Insuring a natural person as named insured or one or
2220 more related individuals who are residents resident of the same
2221 household; and
2222 2. Insuring only a motor vehicle of the private passenger
2223 type or station wagon type which is not used as a public or
2224 livery conveyance for passengers or rented to others; or
2225 insuring any other four-wheel motor vehicle having a load
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2226 capacity of 1,500 pounds or less which is not used in the
2227 occupation, profession, or business of the insured other than
2228 farming; other than any policy issued under an automobile
2229 insurance assigned risk plan or covering garage, automobile
2230 sales agency, repair shop, service station, or public parking
2231 place operation hazards.
2232
2233 The term "policy" does not include a binder as defined ins.
2234 627.420 unless the duration of the binder period exceeds 60
2235 days.
2236 Section 46. Subsection (1), paragraph (a) of subsection
2237 (5), and subsections (6) and (7) of section 627.7295, Florida
2238 Statutes, are amended to read:
2239 627.7295 Motor vehicle insurance contracts.-
2240 (1) As used in this section, the term:
2241 (a) "Policy" means a motor vehicle insurance policy that
2242 provides bodily injury liability personal injury protection
2243 coverage and 7 property damage liability coverage, or both.
2244 (b) "Binder" means a binder that provides motor vehicle
2245 bodily injury liability coverage personal injury protection and
2246 property damage liability coverage.
2247 ( 5) (a) A licensed general lines agent may charge a per-
2248 policy fee of up to not to exceed $10 to cover the
2249 administrative costs of the agent associated with selling the
2250 motor vehicle insurance policy if the policy covers only bodily
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2251 injury liability coverage personal injury proteetion coverage as
2252 provided bys. 627.736 and property damage liability coverage as
2253 provided bys. 627.7275 and if no other insurance is sold or
2254 issued in conjunction with or collateral to the policy. The fee
2255 is not considered part of the premium.
2256 (6) If a motor vehicle owner's driver license, license
2257 plate, and registration have previously been suspended pursuant
2258 to s. 316.646 ors. 627.733, an insurer may cancel a new policy
2259 only as provided ins. 627.7275.
2260 (7) A policy of private passenger motor vehicle insurance
2261 or a binder for such a policy may be initially issued in this
2262 state only if, before the effective date of such binder or
2263 policy, the insurer or agent has collected from the insured an
2264 amount equal to at least 1 month's premium. An insurer, agent,
2265 or premium finance company may not, directly or indirectly, take
2266 any action that results resulting in the insured paying having
2267 ~ from the insured's own funds an amount less than the 1
2268 month's premium required by this subsection. This subsection
2269 applies without regard to whether the premium is financed by a
2270 premium finance company or is paid pursuant to a periodic
2271 payment plan of an insurer or an insurance agent.
2272 (a) This subsection does not apply~
2273 1. If an insured or member of the insured's family is
2274 renewing or replacing a policy or a binder for such policy
2275 written by the same insurer or a member of the same insurer
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2276 group. This subsection does not apply
2277 2. To an insurer that issues private passenger motor
2278 vehicle coverage primarily to active duty or former military
2279 personnel or their dependents. This subsection does not apply
2280 3. If all policy payments are paid pursuant to a payroll
2281 deduction plan, an automatic electronic funds transfer payment
2282 plan from the policyholder, or a recurring credit card or debit
2283 card agreement with the insurer.
2284 J.Ql_ This subsection and subsection (4) do not apply if~
2285 1. All policy payments to an insurer are paid pursuant to
2286 an automatic electronic funds transfer payment plan from an
2287 agent, a managing general agent, or a premium finance company
2288 and if the policy includes, at a minimum, bodily injury
2289 liability coverage and personal injury protection pursuant to
2290 ss. 627.730 627.7405; ffiotor vehicle property damage liability
2291 coverage pursuant to s. 627.7275; or and bodily injury liability
2292 in at least the affiount of $10,000 because of bodily injury to,
2293 or death of, one person in any one accident and in the affiount of
2294 $20,000 because of bodily injury to, or death of, two or ffiore
2295 persons in any one accident. This subsection and subsection (4)
2296 do not apply if
2297 2. An insured has had a policy in effect for at least 6
2298 months, the insured's agent is terminated by the insurer that
2299 issued the policy, and the insured obtains coverage on the
2300 policy's renewal date with a new company through the terminated
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2301 agent.
2302 Section 47. Section 627.7415, Florida Statutes, is amended
2303 to read:
2304 627.7415 Commercial motor vehicles; additional liability
2305 insurance coverage.-Beginning January 1, 2021, commercial motor
2306 vehicles, as defined ins. 207.002 ors. 320.01, operated upon
2307 the roads and highways of this state must shall be insured with
2308 the following minimum levels of combined bodily liability
2309 insurance and property damage liability insurance in addition to
2310 any other insurance requirements:
2311 (1) Sixty Fifty thousand dollars per occurrence for a
2312 commercial motor vehicle with a gross vehicle weight of 26,000
2313 pounds or more, but less than 35,000 pounds.
2314 (2) One hundred twenty thousand dollars per occurrence for
2315 a commercial motor vehicle with a gross vehicle weight of 35,000
2316 pounds or more, but less than 44,000 pounds.
2317 (3) Three hundred thousand dollars per occurrence for a
2318 commercial motor vehicle with a gross vehicle weight of 44,000
2319 pounds or more.
2320 (4) All commercial motor vehicles subject to regulations
2321 of the United States Department of Transportation, 49 C.F.R.
2322 part 387, subpart A, and as may be hereinafter amended, shall be
2323 insured in an amount equivalent to the minimum levels of
2324 financial responsibility as set forth in such regulations.
2325
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2326 A violation of this section is a noncriminal traffic infraction,
2327 punishable as a nonmoving violation as provided in chapter 318.
2328 Section 48. Section 627.747, Florida Statutes, is created
2329 to read:
2330 627.747 Named driver exclusion.-
2331 (1) A private passenger motor vehicle policy may exclude
2332 an identified individual from the following coverages while the
2333 identified individual is operating a motor vehicle, provided
2334 that the identified individual is specifically excluded by name
2335 on the declarations page or by endorsement, and the policyholder
2336 consents in writing to the exclusion:
2337 (a) Property damage liability coverage.
2338 (b) Bodily injury liability coverage.
2339 (c) Uninsured motorist coverage for any damages sustained
2340 by the identified excluded individual, if the policyholder has
2341 purchased such coverage.
2342 (d) Any coverage the policyholder is not required by law
2343 to purchase.
2344 (2) A private passenger motor vehicle policy may not
2345 exclude coverage when:
2346 (a) The identified excluded individual is injured while
2347 not operating a motor vehicle;
2348 (b) The exclusion is unfairly discriminatory under the
2349 Florida Insurance Code, as determined by the office; or
2350 (c) The exclusion is inconsistent with the underwriting
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2351 rules filed by the insurer pursuant to s. 62 7. 0 651 ( 13) (a) .
2352 Section 4 9. Paragraphs (b) , ( c) , and ( g) of subsection ( 7)
2353 and paragraphs (a) and (b) of subsection (8) of section 627.748,
2354 Florida Statutes, are amended to read:
2355 627.748 Transportation network companies.-
2356 (7) TRANSPORTATION NETWORK COMPANY AND TNC DRIVER
2357 INSURANCE REQUIREMENTS.-
2358 (b) The following automobile insurance requirements apply
2359 while a participating TNC driver is logged on to the digital
2360 network but is not engaged in a prearranged ride:
2361 1. Automobile insurance that provides:
2362 a. A primary automobile liability coverage of at least
2363 $50,000 for death and bodily injury per person, $100,000 for
2364 death and bodily injury per incident, and $25,000 for property
2365 damage; and
2366 b. Personal injury protection benefits that meet the
2367 minimum coverage amounts required under so. 627.730 627.7405;
2368 -aftEi
2369 e. Uninsured and underinsured vehicle coverage as required
2370 bys. 627.727.
2371 2. The coverage requirements of this paragraph may be
2372 satisfied by any of the following:
2373 a. Automobile insurance maintained by the TNC driver;
2374 b. Automobile insurance maintained by the TNC; or
2375 c. A combination of sub-subparagraphs a. and b.
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2376 (c) The following automobile insurance requirements apply
2377 while a TNC driver is engaged in a prearranged ride:
2378 1. Automobile insurance that provides:
2379 a. A primary automobile liability coverage of at least $1
2380 million for death, bodily injury, and property damage; and
2381 b. Personal injury protection benefits that meet the
2382 minimum coverage amounts required of a limousine under so.
2383 627.730 627.7405; and
2384 e. Uninsured and underinsured vehicle coverage as required
2385 bys. 627.727.
2386 2. The coverage requirements of this paragraph may be
2387 satisfied by any of the following:
2388 a. Automobile insurance maintained by the TNC driver;
2389 b. Automobile insurance maintained by the TNC; or
2390 c. A combination of sub-subparagraphs a. and b.
2391 (g) Insurance satisfying the requirements under this
2392 subsection is deemed to satisfy the financial responsibility
2393 requirement for a motor vehicle under chapter 324 and the
2394 security required under o. 627.733 for any period when the TNC
2395 driver is logged onto the digital network or engaged in a
2396 prearranged ride.
2397 (8) TRANSPORTATION NETWORK COMPANY AND INSURER;
2398 DISCLOSURE; EXCLUSIONS.-
2399 (a) Before a TNC driver is allowed to accept a request for
2400 a prearranged ride on the digital network, the TNC must disclose
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2401 in writing to the TNC driver:
2402 1. The insurance coverage, including the types of coverage
2403 and the limits for each coverage, which the TNC provides while
2404 the TNC driver uses a TNC vehicle in connection with the TNC's
2405 digital network.
2406 2. That the TNC driver's own automobile insurance policy
2407 might not provide any coverage while the TNC driver is logged on
2408 to the digital network or is engaged in a prearranged ride,
2409 depending on the terms of the TNC driver's own automobile
2410 insurance policy.
2411 3. That the provision of rides for compensation which are
2412 not prearranged rides subjects the driver to the coverage
2413 requirements imposed under s. 324.032(1) and (2) and that
2414 failure to meet such coverage requirements subjects the TNC
2415 driver to penalties provided ins. 324.221, up to and including
2416 a misdemeanor of the second degree.
2417 (b)l. An insurer that provides an automobile liability
2418 insurance policy under this part may exclude any and all
2419 coverage afforded under the policy issued to an owner or
2420 operator of a TNC vehicle while driving that vehicle for any
2421 loss or injury that occurs while a TNC driver is logged on to a
2422 digital network or while a TNC driver provides a prearranged
2423 ride. Exclusions imposed under this subsection are limited to
2424 coverage while a TNC driver is logged on to a digital network or
2425 while a TNC driver provides a prearranged ride. This right to
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2426 exclude all coverage may apply to any coverage included in an
2427 automobile insurance policy, including, but not limited to:
2428 a. Liability coverage for bodily injury and property
2429 damage;
2430 b. Uninsured and underinsured motorist coverage;
2431 c. Medical payments coverage;
2432 d. Comprehensive physical damage coverage; and
2433 e. Collision physical damage coverage; and
2434 f. Personal injury protection.
2435 2. The exclusions described in subparagraph 1. apply
2436 notwithstanding any requirement under chapter 324. These
2437 exclusions do not affect or diminish coverage otherwise
2438 available for permissive drivers or resident relatives under the
2439 personal automobile insurance policy of the TNC driver or owner
2440 of the TNC vehicle who are not occupying the TNC vehicle at the
2441 time of loss. This section does not require that a personal
2442 automobile insurance policy provide coverage while the TNC
2443 driver is logged on to a digital network, while the TNC driver
2444 is engaged in a prearranged ride, or while the TNC driver
2445 otherwise uses a vehicle to transport riders for compensation.
2446 3. This section must not be construed to require an
2447 insurer to use any particular policy language or reference to
2448 this section in order to exclude any and all coverage for any
2449 loss or injury that occurs while a TNC driver is logged on to a
2450 digital network or while a TNC driver provides a prearranged
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2451 ride.
2452 4. This section does not preclude an insurer from
2453 providing primary or excess coverage for the TNC driver's
2454 vehicle by contract or endorsement.
2455 Section 50. Paragraph (a) of subsection (2) of section
2456 627.749, Florida Statutes, is amended to read:
2457 627.749 Autonomous vehicles; insurance requirements.-
2458 (2) INSURANCE REQUIREMENTS.-
2459 (a) A fully autonomous vehicle with the automated driving
2460 system engaged while logged on to an on-demand autonomous
2461 vehicle network or engaged in a prearranged ride must be covered
2462 by a policy of automobile insurance which provides:
2463 1. Primary liability coverage of at least $1 million for
2464 death, bodily injury, and property damage.
2465 2. Personal injury protection benefits that meet the
2466 minimum coverage amounts required under so. 627.730 627.740§.
2467 -3-.-- Uninsured and underinsured vehicle coverage as required
2468 bys. 627.727.
2469 Section 51. Section 627.8405, Florida Statutes, is amended
2470 to read:
2471 627.8405 Prohibited acts; financing companies.-~ Ne
2472 premium finance company shall, in a premium finance agreement or
2473 other agreement, may not finance the cost of or otherwise
2474 provide for the collection or remittance of dues, assessments,
2475 fees, or other periodic payments of money for the cost of:
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2476 (1) A membership in an automobile club. The term
2477 "automobile club" means a legal entity that whieh, in
2478 consideration of dues, assessments, or periodic payments of
2479 money, promises its members or subscribers to assist them in
2480 matters relating to the ownership, operation, use, or
2481 maintenance of a motor vehicle; however, the t e r m ~
2482 definition of "autofflobile club" does not include persons,
2483 associations, or corporations which are organized and operated
2484 solely for the purpose of conducting, sponsoring, or sanctioning
2485 motor vehicle races, exhibitions, or contests upon racetracks,
2486 or upon racecourses established and marked as such for the
2487 duration of such particular events. The term words "motor
2488 vehicle" used herein has fi-a-¥e the same meaning as defined in
2489 chapter 320.
2490 (2) An accidental death and dismemberment policy sold in
2491 combination with a policy providing only bodily injury liability
2492 coverage personal injury protection and property damage
2493 liability coverage only policy.
2494 (3) Any product not regulated under the provisions of this
2495 insurance code.
2496
2497 This section also applies to premium financing by any insurance
2498 agent or insurance company under part XVI. The commission shall
2499 adopt rules to assure disclosure, at the time of sale, of
2500 coverages financed with personal injury protection and shall
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2501 prescribe the form of such disclosure.
2502 Section 52. Subsection (1) of section 627.915, Florida
2503 Statutes, is amended to read:
2504 627.915 Insurer experience reporting.-
2505 (1) Each insurer transacting private passenger automobile
2506 insurance in this state shall report certain information
2507 annually to the office. The information will be due on or before
2508 July 1 of each year. The information must shall be divided into
2509 the following categories: bodily injury liability; property
2510 damage liability; uninsured motorist; personal injury protection
2511 benefits; medical payments; and comprehensive and collision. The
2512 information given must shall be on direct insurance writings in
2513 the state alone and shall represent total limits data. The
2514 information set forth in paragraphs (a)-(f) is applicable to
2515 voluntary private passenger and Joint Underwriting Association
2516 private passenger writings and must shall be reported for each
2517 of the latest 3 calendar-accident years, with an evaluation date
2518 of March 31 of the current year. The information set forth in
2519 paragraphs (g)-(j) is applicable to voluntary private passenger
2520 writings and must shall be reported on a calendar-accident year
2521 basis ultimately seven times at seven different stages of
2522 development.
2523 (a) Premiums earned for the latest 3 calendar-accident
2524 years.
2525 (b) Loss development factors and the historic development
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2526 of those factors.
2527 (c) Policyholder dividends incurred.
2528 (d) Expenses for other acquisition and general expense.
2529 (e) Expenses for agents' commissions and taxes, licenses,
2530 and fees.
2531 (f) Profit and contingency factors as utilized in the
2532 insurer's automobile rate filings for the applicable years.
2533 (g) Losses paid.
2534 (h) Losses unpaid.
2535 (i) Loss adjustment expenses paid.
2536 (j) Loss adjustment expenses unpaid.
2537 Section 53. Subsections (2) and (3) of section 628.909,
2538 Florida Statutes, are amended to read:
2539 628.909 Applicability of other laws.-
2540 (2) The following provisions of the Florida Insurance Code
2541 apply to captive insurance companies that Wfre are not industrial
2542 insured captive insurance companies to the extent that such
2543 provisions are not inconsistent with this part:
2544 (a) Chapter 624, except for ss. 624.407, 624.408,
2545 624. 4085, 624. 40851, 624. 4095, 624. 411, 624. 425, and 624. 426.
2546 (b) Chapter 625, part II.
2547 (c) Chapter 626, part IX.
2548 (d) Sections 627.730 627.7405, when no fault coverage is
2549 provided.
2550 -te-t Chapter 628.
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2551 (3) The following provisions of the Florida Insurance Code
2552 shall apply to industrial insured captive insurance companies to
2553 the extent that such provisions are not inconsistent with this
2554 part:
2555 (a) Chapter 624, except for ss. 624.407, 624.408,
2556 624. 4085, 624. 40851, 624. 4095, 624. 411, 624. 425, 624. 426, and
2557 624.609(1).
2558 (b) Chapter 625, part II, if the industrial insured
2559 captive insurance company is incorporated in this state.
2560 (c) Chapter 626, part IX.
2561 (d) SectioRs 627.730 627.740§ wheR Ro fault coverage is
2562 provided.
2563 -tet Chapter 628, except for ss. 628.341, 628.351, and
2564 628.6018.
2565 Section 54. Subsections ( 2) , ( 6) , and ( 7) of section
2566 705.184, Florida Statutes, are amended to read:
2567 705.184 Derelict or abandoned motor vehicles on the
2568 premises of public-use airports.-
2569 (2) The airport director or the director's designee shall
2570 contact the Department of Highway Safety and Motor Vehicles to
2571 notify that department that the airport has possession of the
2572 abandoned or derelict motor vehicle and to determine the name
2573 and address of the owner of the motor vehicle, the insurance
2574 company insuring the motor vehicle, RotwithstaRdiRg the
2575 provisioRs of s. 627.736, and any person who has filed a lien on
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2576 the motor vehicle. Within 7 business days after receipt of the
2577 information, the director or the director's designee shall send
2578 notice by certified mail, return receipt requested, to the owner
2579 of the motor vehicle, the insurance company insuring the motor
2580 vehicle, notwithstanding the provisions of s. 627.736, and all
2581 persons of record claiming a lien against the motor vehicle. The
2582 notice must shall state the fact of possession of the motor
2583 vehicle, that charges for reasonable towing, storage, and
2584 parking fees, if any, have accrued and the amount thereof, that
2585 a lien as provided in subsection (6) will be claimed, that the
2586 lien is subject to enforcement pursuant to law, that the owner
2587 or lienholder, if any, has the right to a hearing as set forth
2588 in subsection (4), and that any motor vehicle which, at the end
2589 of 30 calendar days after receipt of the notice, has not been
2590 removed from the airport upon payment in full of all accrued
2591 charges for reasonable towing, storage, and parking fees, if
2592 any, may be disposed of as provided ins. 705.182(2) (a), (b),
2593 (d), or (e), including, but not limited to, the motor vehicle
2594 being sold free of all prior liens after 35 calendar days after
2595 the time the motor vehicle is stored if any prior liens on the
2596 motor vehicle are more than 5 years of age or after 50 calendar
2597 days after the time the motor vehicle is stored if any prior
2598 liens on the motor vehicle are 5 years of age or less.
2599 (6) The airport pursuant to this section or, if used, a
2600 licensed independent wrecker company pursuant to s. 713.78 shall
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2601 have a lien on an abandoned or derelict motor vehicle for all
2602 reasonable towing, storage, and accrued parking fees, if any,
2603 except that no storage fee may shall be charged if the motor
2604 vehicle is stored less than 6 hours. As a prerequisite to
2605 perfecting a lien under this section, the airport director or
2606 the director's designee must serve a notice in accordance with
2607 subsection (2) on the owner of the motor vehicle, the insurance
2608 company insuring the motor vehicle, notwithstanding the
2609 provisions of s. 627.736, and all persons of record claiming a
2610 lien against the motor vehicle. If attempts to notify the owner,
2611 the insurance company insuring the motor vehicle,
2612 notwithstanding the provisions of s. 627.736, or lienholders are
2613 not successful, the requirement of notice by mail shall be
2614 considered met. Serving of the notice does not dispense with
2615 recording the claim of lien.
2616 (7) (a) For the purpose of perfecting its lien under this
2617 section, the airport shall record a claim of lien which states
2618 shall state:
2619 1. The name and address of the airport.
2620 2. The name of the owner of the motor vehicle, the
2621 insurance company insuring the motor vehicle, notwithstanding
2622 the provisions of s. 627.736, and all persons of record claiming
2623 a lien against the motor vehicle.
2624 3. The costs incurred from reasonable towing, storage, and
2625 parking fees, if any.
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2626 4. A description of the motor vehicle sufficient for
2627 identification.
2628 (b) The claim of lien must shall be signed and sworn to or
2629 affirmed by the airport director or the director's designee.
2630 (c) The claim of lien is shall be sufficient if it is in
2631 substantially the following form:
2 632
2633 CLAIM OF LIEN
2634 State of ....... .
2635 County of ....... .
2636 Before me, the undersigned notary public, personally appeared
2637 ........ , who was duly sworn and says that he/she is the
2638 ........ of . . . . . . . . . . . . , whose address is ........ ; and that the
2639 following described motor vehicle:
2640 ... (Description of motor vehicle) ...
2641 owned by ........ , whose address is ........ , has accrued
2642 $ •••••••• in fees for a reasonable tow, for storage, and for
2643 parking, if applicable; that the lienor served its notice to the
2644 owner, the insurance company insuring the motor vehicle
2645 notwithstanding the provisions of s. 627.736, Florida Statutes,
2646 and all persons of record claiming a lien against the motor
2647 vehicle on .... , (year) ... , by ........ .
2648 ... (Signature) .. .
2649 Sworn to (or affirmed) and subscribed before me this .... day of
2650 .... , (year) ... , by (name of person making statement) ....
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2651 ... (Signature of Notary Public) ...... (Print, Type, or Stamp
2652 Commissioned name of Notary Public) .. .
2653 Personally Known .... OR Produced .... as identification.
2654
2655 However, the negligent inclusion or omission of any information
2656 in this claim of lien which does not prejudice the owner does
2657 not constitute a default that operates to defeat an otherwise
2658 valid lien.
2659 (d) The claim of lien must shall be served on the owner of
2660 the motor vehicle, the insurance company insuring the motor
2661 vehicle, notwithstanding the provisions of s. 627.736, and all
2662 persons of record claiming a lien against the motor vehicle. If
2663 attempts to notify the owner, the insurance company insuring the
2664 motor vehicle notwithstanding the provisions of s. 627.736, or
2665 lienholders are not successful, the requirement of notice by
2666 mail shall be considered met. The claim of lien must shall be so
2667 served before recordation.
2668 (e) The claim of lien must shall be recorded with the
2669 clerk of court in the county where the airport is located. The
2670 recording of the claim of lien shall be constructive notice to
2671 all persons of the contents and effect of such claim. The lien
2 672 attaches shall attach at the time of recordation and takes shall
2673 -t-a-Jt.e priority as of that time.
2674 Section 55. Subsection (4) of section 713.78, Florida
2675 Statutes, is amended to read:
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2676 713.78 Liens for recovering, towing, or storing vehicles
2 677 and vessels.-
2678 (4) (a) A person regularly engaged in the business of
2679 recovering, towing, or storing vehicles or vessels who comes
2680 into possession of a vehicle or vessel pursuant to subsection
2681 (2), and who claims a lien for recovery, towing, or storage
2682 services, shall give notice, by certified mail, to the
2683 registered owner, the insurance company insuring the vehicle
2684 notwithstanding s. 627.736, and all persons claiming a lien
2685 thereon, as disclosed by the records in the Department of
2686 Highway Safety and Motor Vehicles or as disclosed by the records
2687 of any corresponding agency in any other state in which the
2688 vehicle is identified through a records check of the National
2689 Motor Vehicle Title Information System or an equivalent
2690 commercially available system as being titled or registered.
2691 (b) Whenever a law enforcement agency authorizes the
2692 removal of a vehicle or vessel or whenever a towing service,
2693 garage, repair shop, or automotive service, storage, or parking
2694 place notifies the law enforcement agency of possession of a
2695 vehicle or vessel pursuant to s. 715. 07 ( 2) (a) 2., the law
2696 enforcement agency of the jurisdiction where the vehicle or
2697 vessel is stored shall contact the Department of Highway Safety
2698 and Motor Vehicles, or the appropriate agency of the state of
2699 registration, if known, within 24 hours through the medium of
2700 electronic communications, giving the full description of the
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2701 vehicle or vessel. Upon receipt of the full description of the
2702 vehicle or vessel, the department shall search its files to
2703 determine the owner's name, the insurance company insuring the
2704 vehicle or vessel, and whether any person has filed a lien upon
2705 the vehicle or vessel as provided ins. 319.27(2) and (3) and
2706 notify the applicable law enforcement agency within 72 hours.
2707 The person in charge of the towing service, garage, repair shop,
2708 or automotive service, storage, or parking place shall obtain
2709 such information from the applicable law enforcement agency
2710 within 5 days after the date of storage and shall give notice
2711 pursuant to paragraph (a). The department may release the
2712 insurance company information to the requestor notwithstanding
2713 5. 627.736.
2714 (c) The notice of lien must be sent by certified mail to
2715 the registered owner, the insurance company insuring the vehicle
2716 notwithstanding s. 627.736, and all other persons claiming a
2717 lien thereon within 7 business days, excluding Saturday and
2718 Sunday, after the date of storage of the vehicle or vessel.
2719 However, in no event shall the notice of lien be sent less than
2720 30 days before the sale of the vehicle or vessel. The notice
2721 must state:
2722 1. If the claim of lien is for a vehicle, the last 8
2723 digits of the vehicle identification number of the vehicle
2724 subject to the lien, or, if the claim of lien is for a vessel,
2725 the hull identification number of the vessel subject to the
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2726 lien, clearly printed in the delivery address box and on the
2727 outside of the envelope sent to the registered owner and all
2728 other persons claiming an interest therein or lien thereon.
2729 2. The name, physical address, and telephone number of the
2730 lienor, and the entity name, as registered with the Division of
2731 Corporations, of the business where the towing and storage
2732 occurred, which must also appear on the outside of the envelope
2733 sent to the registered owner and all other persons claiming an
2734 interest in or lien on the vehicle or vessel.
2735 3. The fact of possession of the vehicle or vessel.
2736 4. The name of the person or entity that authorized the
2737 lienor to take possession of the vehicle or vessel.
2738 5. That a lien as provided in subsection (2) is claimed.
2739 6. That charges have accrued and include an itemized
2740 statement of the amount thereof.
2741 7. That the lien is subject to enforcement under law and
2742 that the owner or lienholder, if any, has the right to a hearing
2743 as set forth in subsection (5).
2744 8. That any vehicle or vessel that remains unclaimed, or
2745 for which the charges for recovery, towing, or storage services
2746 remain unpaid, may be sold free of all prior liens 35 days after
2747 the vehicle or vessel is stored by the lienor if the vehicle or
2748 vessel is more than 3 years of age or 50 days after the vehicle
2749 or vessel is stored by the lienor if the vehicle or vessel is 3
2750 years of age or less.
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2751 9. The address at which the vehicle or vessel is
2752 physically located.
2753 (d) The notice of lien may not be sent to the registered
2754 owner, the insurance company insuring the vehicle or vessel, and
2755 all other persons claiming a lien thereon less than 30 days
2756 before the sale of the vehicle or vessel.
2757 (e) If attempts to locate the name and address of the
2758 owner or lienholder prove unsuccessful, the towing-storage
2759 operator shall, after 7 business days, excluding Saturday and
2760 Sunday, after the initial tow or storage, notify the public
2761 agency of jurisdiction where the vehicle or vessel is stored in
2762 writing by certified mail or acknowledged hand delivery that the
2763 towing-storage company has been unable to locate the name and
2764 address of the owner or lienholder and a physical search of the
2765 vehicle or vessel has disclosed no ownership information and a
2766 good faith effort has been made, including records checks of the
2767 Department of Highway Safety and Motor Vehicles database and the
2768 National Motor Vehicle Title Information System or an equivalent
2769 commercially available system. For purposes of this paragraph
2770 and subsection (9), the term "good faith effort" means that the
2771 following checks have been performed by the company to establish
2772 the prior state of registration and for title:
2773 1. A check of the department's database for the owner and
2774 any lienholder.
2775 2. A check of the electronic National Motor Vehicle Title
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2776 Information System or an equivalent commercially available
2777 system to determine the state of registration when there is not
2778 a current registration record for the vehicle or vessel on file
2779 with the department.
2780 3. A check of the vehicle or vessel for any type of tag,
2781 tag record, temporary tag, or regular tag.
2782 4. A check of the law enforcement report for a tag number
2783 or other information identifying the vehicle or vessel, if the
2784 vehicle or vessel was towed at the request of a law enforcement
2785 officer.
2786 5. A check of the trip sheet or tow ticket of the tow
2787 truck operator to determine whether a tag was on the vehicle or
2788 vessel at the beginning of the tow, if a private tow.
2789 6. If there is no address of the owner on the impound
2790 report, a check of the law enforcement report to determine
2791 whether an out-of-state address is indicated from driver license
2792 information.
2793 7. A check of the vehicle or vessel for an inspection
2794 sticker or other stickers and decals that may indicate a state
2795 of possible registration.
2796 8. A check of the interior of the vehicle or vessel for
2797 any papers that may be in the glove box, trunk, or other areas
2798 for a state of registration.
2799 9. A check of the vehicle for a vehicle identification
2800 number.
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2801 10. A check of the vessel for a vessel registration
2802 number.
2803 11. A check of the vessel hull for a hull identification
2804 number which should be carved, burned, stamped, embossed, or
2805 otherwise permanently affixed to the outboard side of the
2806 transom or, if there is no transom, to the outmost seaboard side
2807 at the end of the hull that bears the rudder or other steering
2808 mechanism.
2809 Section 56. Paragraph (a) of subsection (1), paragraph (c)
2810 of subsection ( 7), paragraphs (a), (b) , and ( c) of subsection
2811 (8), and subsections (9) and (10) of section 817.234, Florida
2812 Statutes, are amended to read:
2813 817.234 False and fraudulent insurance claims.-
2814 ( 1) (a) A person commits insurance fraud punishable as
2815 provided in subsection (11) if that person, with the intent to
2816 injure, defraud, or deceive any insurer:
2817 1. Presents or causes to be presented any written or oral
2818 statement as part of, or in support of, a claim for payment or
2819 other benefit pursuant to an insurance policy or a health
2820 maintenance organization subscriber or provider contract,
2821 knowing that such statement contains aftY false, incomplete, or
2822 misleading information concerning any fact or thing material to
2823 such claim;
2824 2. Prepares or makes any written or oral statement that is
2825 intended to be presented to an aftY insurer in connection with,
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2826 or in support of, any claim for payment or other benefit
2827 pursuant to an insurance policy or a health maintenance
2828 organization subscriber or provider contract, knowing that such
2829 statement contains a-RY false, incomplete, or misleading
2830 information concerning any fact or thing material to such claim;
2831 3.a. Knowingly presents, causes to be presented, or
2832 prepares or makes with knowledge or belief that it will be
2833 presented to an a-RY insurer, purported insurer, servicing
2834 corporation, insurance broker, or insurance agent, or any
2835 employee or agent thereof, a-RY false, incomplete, or misleading
2836 information or~ written or oral statement as part of, or in
2837 support of, an application for the issuance of, or the rating
2838 of, any insurance policy, or a health maintenance organization
2839 subscriber or provider contract; or
2840 b. Knowingly conceals information concerning any fact
2841 material to such application; or
2842 4. Knowingly presents, causes to be presented, or prepares
2843 or makes with knowledge or belief that it will be presented to
2844 any insurer a claim for payment or other benefit under medical
2845 payments coverage in a motor vehicle a personal injury
2846 protection insurance policy if the person knows that the payee
2847 knowingly submitted a false, misleading, or fraudulent
2848 application or other document when applying for licensure as a
2849 health care clinic, seeking an exemption from licensure as a
2850 health care clinic, or demonstrating compliance with part X of
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2851 chapter 400.
2852 (7)
2853 (c) An insurer, or any person acting at the direction of
2854 or on behalf of an insurer, may not change an opinion in a
2855 mental or physical report prepared under s. 627.736(7) or direct
2856 the physician preparing the report to change such opinion;
2857 however, this provision does not preclude the insurer from
2858 calling to the attention of the physician errors of fact in the
2859 report based upon information in the claim file. Any person who
2860 violates this paragraph commits a felony of the third degree,
2861 punishable as provided ins. 775.082, s. 775.083, ors. 775.084.
2862 (8) (a) It is unlawful for any person intending to defraud
2863 any other person to solicit or cause to be solicited any
2864 business from a person involved in a motor vehicle accident for
2865 the purpose of making, adjusting, or settling motor vehicle tort
2866 claims or claims for benefits under medical payments coverage in
2867 a motor vehicle insurance policy personal injury protection
2868 benefits required bys. 627.736. Any person who violates -t-fie
2869 provisions of this paragraph commits a felony of the second
2870 degree, punishable as provided ins. 775.082, s. 775.083, ors.
2871 775.084. A person who is convicted of a violation of this
2872 subsection shall be sentenced to a minimum term of imprisonment
2873 of 2 years.
2874 (b) A person may not solicit or cause to be solicited any
2875 business from a person involved in a motor vehicle accident by
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2876 any means of communication other than advertising directed to
2877 the public for the purpose of making motor vehicle tort claims
2878 or claims for benefits under medical payments coverage in a
2879 motor vehicle insurance policy personal injury protection
2880 benefits required bys. 627.736, within 60 days after the
2881 occurrence of the motor vehicle accident. Any person who
2882 violates this paragraph commits a felony of the third degree,
2883 punishable as provided ins. 775.082, s. 775.083, ors. 775.084.
2884 (c) A lawyer, health care practitioner as defined ins.
2885 456.001, or owner or medical director of a clinic required to be
2886 licensed pursuant to s. 400.9905 may not, at any time after 60
2887 days have elapsed from the occurrence of a motor vehicle
2888 accident, solicit or cause to be solicited any business from a
2889 person involved in a motor vehicle accident by means of in
2890 person or telephone contact at the person's residence, for the
2891 purpose of making motor vehicle tort claims or claims for
2892 benefits under medical payments coverage in a motor vehicle
2893 insurance policy personal injury protection benefits required by
2894 s. 627.736. Any person who violates this paragraph commits a
2895 felony of the third degree, punishable as provided ins.
2896 775.082, s. 775.083, ors. 775.084.
2897 (9) A person may not organize, plan, or knowingly
2898 participate in an intentional motor vehicle crash or a scheme to
2899 create documentation of a motor vehicle crash that did not occur
2900 for the purpose of making motor vehicle tort claims or claims
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2901 for benefits under medical payments coverage in a motor vehicle
2902 insurance policy personal injury protection benefits as required
2903 bys. 627.736. Any person who violates this subsection commits a
2904 felony of the second degree, punishable as provided ins.
2905 775.082, s. 775.083, ors. 775.084. A person who is convicted of
2906 a violation of this subsection shall be sentenced to a minimum
2907 term of imprisonment of 2 years.
2908 (10) A licensed health care practitioner who is found
2909 guilty of insurance fraud under this section for an act relating
2910 to a motor vehicle personal injury protection insurance policy
2911 loses his or her license to practice for 5 years and may not
2912 receive reimbursement under medical payments coverage in a motor
2913 vehicle insurance policy for personal injury protection benefits
2914 for 10 years.
2915 Section 57. For the 2020-2021 fiscal year, the sum of
2916 $83,651 in nonrecurring funds is appropriated from the Insurance
2917 Regulatory Trust Fund to the Office of Insurance Regulation for
2918 the purpose of implementing this act.
2919 Section 58. Except as otherwise expressly provided in this
2920 act and except for this section, which shall take effect upon
2921 this act becoming a law, this act shall take effect January 1,
2922 2021.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 811 Transfers in Divorce
SPONSOR(S): Geller
TIED BILLS: IDEN./SIM. BILLS: SB 1306
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice Subcommittee 14 Y, 0 N Frost Luczynski
2) Insurance & Banking Subcommittee Hinshelwoo
3) Judiciary Committee
SUMMARY ANALYSIS
An Individual Retirement Account (IRA) is a retirement savings account that provides the account owner with
certain tax benefits which are not available for a traditional savings account. An IRA may be a traditional IRA or
a Roth IRA. While a traditional IRA allows an account owner to make tax deductible contributions into the
account and defer being taxed on the income until making withdrawals after retirement, a Roth IRA allows an
account owner to make non-tax-deductible contributions into the account and make tax free withdrawals after
retirement.
An IRA is intended to be the property of its owner and may only be transferred to another person upon the
owner's death or in a dissolution of marriage (divorce). When an IRA account owner dies, the account may be
transferred to a named beneficiary, and if the beneficiary is not the account owner's spouse, the IRA is
considered an inherited IRA. If an IRA is transferred to a spouse or ex-spouse incident to a divorce, the spouse
receiving the IRA becomes the new owner of the assets in the other spouse's IRA on the effective date of the
transfer. The assets in an IRA may be transferred in a divorce by:
• Name change: The transfer is executed by changing the name of the IRA owner from that of one
spouse or former spouse to that of the other; or
• Direct transfer: The assets in one spouse's IRA are directly transferred to a new or existing IRA of the
other spouse.
Under the U.S. Bankruptcy Code (Code), a state may specify assets which are exempt from creditors' claims in
a bankruptcy proceeding, and Florida has done so. Florida law provides a number of exemptions for various
retirement related assets, such as IRAs. Florida provides a bankruptcy exemption for IRA accounts that are
exempt from taxation under s. 408 of the Internal Revenue Code (IRC), and the IRC tax exemption for an IRA
account awarded incident to a divorce provides tax-exempt status for a former spouse's interest in such an
account at the time the transfer is made, and thereafter. Although there is no current controversy in Florida
regarding the exemption for an IRA account awarded incident to a divorce, recent bankruptcy court decisions
from other jurisdictions may indicate the need to clarify Florida's exemption.
HB 811 clarifies that any interest in an IRA received during a transfer incident to divorce remains exempt from
creditor claims after the transfer is complete. Because the bill does not change existing law or practice, the bill
intends to clarify existing law, is remedial in nature, and applies retroactively to all transfers made incident to
divorce.
The bill does not appear to have a financial impact on state or local government.
The bill provides an effective date of upon becoming law.
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
Individual Retirement Accounts
An Individual Retirement Account (IRA) is " ... a trust created or organized in the United States for the
exclusive benefit of an individual or his beneficiaries." 1 An IRA is created by a written document which
must show that the account meets all of the following criteria: 2
• The account's trustee or custodian must be a bank, federally insured credit union, savings and
loan association, or other entity approved by the internal revenue service (IRS) to act as such.
• The trustee or custodian generally may not accept contributions in an amount more than the
account's deductible amount for the year, but rollover contributions and employer contributions
to a simplified employee pension (SEP) 3 can be more than this amount.
• Contributions, except for rollover contributions, must be in cash.
• The account owner must have a non-forfeitable right to the amount in the account at all times.
• Money in the account cannot be used to buy a life insurance policy.
• Assets in the account cannot be combined with other property, except in a common trust fund or
common investment fund.
• The account owner must begin receiving distributions from the account in April of the year after
he or she reaches age 70 1/2.
An IRA may be a traditional IRA or a Roth IRA. While a traditional IRA allows an account owner to
make tax deductible contributions into the account and defer being taxed on the income until making
withdrawals after retirement, 4 a Roth IRA allows an account owner to make non-tax-deductible
contributions into the account and make tax free withdrawals after retirement. 5
IRA Transfer
An IRA is intended to be the property of its owner and may only be transferred to another person upon
the owner's death or in a dissolution of marriage (divorce). When an IRA account owner dies, the
account may be transferred to a named beneficiary.
If the beneficiary is not the account owner's spouse, the IRA is considered an inherited IRA. 6 The
beneficiary of an inherited IRA:
• May not make contributions to the account;
• Must make withdrawals regardless of his or her age; and
• Is not subject to a penalty for early withdrawals from the account.
If the beneficiary is the account owner's spouse, the beneficiary may do one of the following: 7
• Treat the IRA as his or her own IRA by designating himself or herself as the account owner;
1
26 U.S.C. § 408(a).
2
IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), (Dec. 21, 2018), https://www.irs.gov/pub/irs-
pdf/p590a.pdf (last visited Jan. 23, 2020).
3
An SEP is a written arrangement that allows your employer to make deductible contributions to a traditional IRA (an SEP IRA) set up
for the account owner to receive such contributions. Id.
4
Id. at 5.
5
Id. at 39.
6 26 U.S.C. §401 (a)(9).
7
IRS, supra note 2, at 20.
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• Treat the IRA as his or her own by rolling it over into his or her own IRA, or to the extent it is
taxable, into a:
o Qualified employer plan;
o Qualified employee annuity plan (section 403(a) plan);
o Tax-sheltered annuity plan (section 403(b) plan); or
o State or local government Deferred compensation plan (section 457 plan).
• Treat himself or herself as the beneficiary of the IRA.
When an IRA is transferred to a spouse or ex-spouse incident to a divorce, the spouse receiving the
IRA becomes the new owner of the assets in the other spouse's IRA on the effective date of the
transfer. There is no legal authority for an IRA to be split or transferred until the divorce is finalized, and
a court order is entered directing how the account must be split. The parties must give the IRA
custodian a copy of the court's order, and the custodian may then split the account or transfer the
account accordingly, in a tax-free transfer. The assets in an IRA may be transferred by:
• Changing the name of the IRA owner from that of one spouse or former spouse to that of the
other; or
• Making a direct transfer of the IRA assets or a portion of the assets from one spouse's IRA
directly into the other spouse's new or existing IRA.
IRA Asset Protection
Although established under the federal tax code, a state's laws may affect an IRA in a case involving a
trust, real estate, or most commonly a bankruptcy exemption that protects the IRA from the claims of
creditors. A person may file bankruptcy to assist in discharging debt or making a plan to repay debts.
All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code
(Code). 8 In general, filing bankruptcy serves two purposes: to convert the estate of the debtor into cash
and distribute it among creditors; and to give the debtor a fresh start by providing certain exemptions
and rights to assets that bankruptcy does not reach. 9 A person may file one of two primary forms of
bankruptcy. 10 In a proceeding under Chapter 7 of the Code, a debtor must surrender his or her assets
to a trustee who then liquidates the assets and distributes all proceeds to the debtor's creditors. 11 A
Chapter 13 bankruptcy petition allows a debtor to stay creditor actions and propose a plan to pay all
creditors, thus rehabilitating the debtor financially. 12
In either a Chapter 7 or Chapter 13 bankruptcy, a debtor may claim certain property as exempt from
creditors in the bankruptcy proceedings. 13 The Code provides many exemptions to protect certain
assets from creditors' claims, but under the Code, a state may choose to opt-out of these exemptions. 14
If a state chooses to opt-out, the federal Code exemptions are not available to debtors within that state,
unless the state specifically opts-in to a Code exemption within state law. A state may also provide
greater asset protections than what the Code provides.
Florida is an-opt out state, meaning that when a Florida resident files for bankruptcy or is otherwise
subject to a creditor's judgment, Florida law, rather than the federal Code, provides the exemptions
available to the debtor. 15 Florida law provides a number of exemptions for various retirement related
assets, such as IRAs and other pension, profit sharing, and retirement benefits. 16 Florida also exempts
all inherited IRA accounts from creditors' claims, while the Code does not. 17
8 11 U.S.C. § 101, et seq.
9
9 Am. Jur. 2d Bankruptcy s. 5.
10
An individual may also file a petition under Chapter 11, but such petitions are rare.
11
11 U.S.C. §§ 704 & 726.
12 9 Am Jur 2d Bankruptcy s. 72.
13
11.U.S.C. § 522.
14
11.U.S.C. §§ 522(b)(3)(A) & (d).
15 S. 222.20, F.S.
16 S. 222.21(2), F.S.
17 S. 222.21(c), F.S.
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Transfers Incident to Divorce
Florida provides a bankruptcy exemption for IRA accounts that are exempt from taxation under s. 408
of the Internal Revenue Code (IRC), 18 and the IRC tax exemption for an IRA account awarded incident
to a divorce provides tax-exempt status for a former spouse's interest in such an account at the time
the transfer is made, and thereafter. 19 Although there is no current controversy in Florida regarding the
exemption for an IRA account awarded incident to a divorce, recent bankruptcy court decisions from
other jurisdictions may indicate the need to clarify Florida's exemption.
In a 2018 opinion, the U.S. Bankruptcy Appellate Court for the Eighth Circuit held that a debtor's funds
must satisfy two requirements in order to be considered exempt retirement funds under the bankruptcy
exemption in 11 U.S.C. § 522(d)(12):
• The amount must be retirement funds; and
• The retirement funds must be in an account that is exempt from taxation under one of the
provisions of the IRC. 20
The Court found that the funds in an IRA account awarded to Mr. Lerbakken incident to his divorce
years before he filed for chapter 7 bankruptcy, but which he never transferred from his former wife's
IRA account or designated himself as the owner of, were not retirement funds for purposes of a
bankruptcy exemption. 21 As such, these funds were subject to creditors' claims.
Effect of Proposed Changes
HB 811 clarifies that any interest in an IRA received during a transfer incident to divorce remains
exempt from creditor claims after the transfer is complete. Because the bill does not change existing
law or practice, the bill applies retroactively to all transfers made incident to divorce.
The bill provides an effective date of upon becoming law.
B. SECTION DIRECTORY:
Section 1: Amends s. 222.21, F.S., relating to exemption of pension money and certain tax-exempt
funds or accounts from legal processes.
Section 2: Provides an effective date of upon becoming a law.
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.
18 S. 222.21(2), F.S.
19
28 U.S.C. § 408(d)(6).
20
In re Lerbakken, 590 B.R. 895 (2018). See also Clark v. Rameker, 573 U.S. 122 (2014).
21
Lerbakken at 897, 898.
STORAGE NAME: h0811 b.lBS.DOCX PAGE: 4
DATE: 1/29/2020
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
The bill amends s. 222.21 (2)(c}, F.S., leaving intact an existing provision stating that the paragraph
"is intended to clarify existing law, is remedial in nature, and shall have retroactive application."
Retroactive application of legislation may implicate the due process provisions of the U.S.
Constitution. 22 However, as a general matter, statutes that do not alter vested rights but relate only to
remedies or procedure may be applied retroactively. 23
Although there is no apparent controversy over the meaning of s. 222.21, F.S., the Florida Supreme
Court has ruled that statutes enacted soon after a controversy over the meaning of legislation may
be considered a legislative interpretation of the original law and not substantive change:
When, as occurred here, an amendment to a statute is enacted soon after controversies
as to the interpretation of the original act arise, a court may consider that amendment as
a legislative interpretation of the original law and not as a substantive change thereof.
This Court has recognized the propriety of considering subsequent legislation in arriving
at the proper interpretation of the prior statute. 24
B. RULE-MAKING AUTHORITY:
Not applicable.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Line 24-27: The bill's language should be amended to clarify its intended effect.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
22 See State Department of Transportation v. Knowles, 402 So. 2d 1155 (Fla. 1981 ).
23 See Metropolitan Dade County v. Chase Federal Housing Corporation, 737 So. 2d. 494 (Fla. 1999). See also City of Orlando v.
Desjardins, 493 So. 2d 1027, 1028 (Fla. 1986).
24 Lowry v. Parole and Probation Commission, 473 So. 2d 1248, 1250 (Fla. 1985).
STORAGE NAME: h0811b.lBS.D0CX PAGE: 5
DATE: 1/29/2020
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 811 2020
1 A bill to be entitled
2 An act relating to transfers in divorce; amending s.
3 222.21, F.S.; specifying that certain interests
4 received by a transferee after a divorce remain exempt
5 from claims of creditors; provides retroactive
6 application; providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Paragraph (c) of subsection (2) of section
11 222.21, Florida Statutes, is amended to read:
12 222.21 Exemption of pension money and certain tax-exempt
13 funds or accounts from legal processes.-
14 (2)
15 (c) Any money or other assets or any interest in any fund
16 or account that is exempt from claims of creditors of the owner,
17 beneficiary, or participant under paragraph (a) does not cease
18 to be exempt after the owner's death by reason of a direct
19 transfer or eligible rollover that is excluded from gross income
20 under the Internal Revenue Code of 1986, including, but not
21 limited to, a direct transfer or eligible rollover to an
22 inherited individual retirement account as defined ins.
23 408(d) (3) of the Internal Revenue Code of 1986, as amended. An
24 interest in any fund or account received in a transfer incident
25 to divorce described ins. 408(d) (6) of the Internal Revenue
Page 1 of 2
CODING: Words stFiskeA are deletions; words underlined are additions.
hb0811-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 811 2020
26 Code of 1986, as amended, continues to be exempt after the
27 transfer. This paragraph is intended to clarify existing law, is
28 remedial in nature, and shall have retroactive application to
29 all inherited individual retirement accounts and to each
30 transfer incident to divorce without regard to the date an
31 account was created or the transfer was made.
32 Section 2. This act shall take effect upon becoming a law.
Page 2 of 2
CODING: Words strisken are deletions; words underlined are additions.
hb0811-00
INSURANCE & BANKING SUBCOMMITTEE
HB 811 by Geller
Transfers in Divorce
AMENDMENT SUMMARY
February 4, 2020
Amendment 1 by Rep. Geller (line 24): The amendment clarifies that an individual retirement
account awarded or received in a divorce proceeding is exempt from creditors' claims upon
being awarded or received and continues to be exempt thereafter.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 811 (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: Insurance & Banking
2 Subcommittee
3 Representative Geller offered the following:
4
5 Amendment (with title amendment)
6 Remove lines 24-27 and insert:
7 interest in any fund or account awarded or received in a
8 transfer incident to divorce described in s. 408 (d) ( 6) of the
9 Internal Revenue Code of 1986, as amended, is exempt upon being
10 awarded or received and continues to be exempt thereafter. This
11 paragraph is intended to clarify existing law, is
12
13 -----------------------------------------------------
14 T I T L E A ME N D ME N T
15 Remove lines 4-5 and insert:
882211 - h0811-line 24.docx
Published On: 2/3/2020 6:03:18 PM
Page 1 of 2
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 811 (2020)
Amendment No. 1
16 received by a transferee after a divorce are exempt
17 from claims of creditors upon being awarded or
18 received and remain exempt; provides retroactive
882211 - h0811-line 24.docx
Published On: 2/3/2020 6:03:18 PM
Page 2 of 2
n
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1039 Transportation Network Companies
SPONSOR(S): Transportation & Infrastructure Subcommittee; Rommel
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Transportation & Infrastructure Subcommittee 12 Y, 0 N, As CS Roth Vickers
2) Insurance & Banking Subcommittee Lloyd , •, Cooper
3) State Affairs Committee
SUMMARY ANALYSIS
A transportation network company (TNC) is an entity that uses a digital network to connect a rider to a TNC
driver, who provides prearranged rides. With certain exceptions, a "for-hire vehicle" means any motor vehicle
used for transporting persons or goods for compensation, or let or rented to another for consideration. There
are different regulatory and insurance requirements in place for TNCs and for-hire vehicles.
The bill defines "luxury ground transportation network company" to mean a company that uses its digital
network to connect riders exclusively to drivers who operate for-hire vehicles, including limousines and luxury
sedans. The bill requires luxury ground TNCs to comply with all of the requirements applicable to a TNC, and
requires maintenance of specific insurance coverage at all times.
The bill defines "transportation network company digital advertising device" to mean a device no larger than 20
inches tall and 54 inches long that is fixed to the roof of a TNC vehicle and that displays advertisements on a
digital screen only while the TNC vehicle is turned on. The bill provides additional requirements for the use and
display of a TNC digital advertising device.
The bill provides that a luxury ground TNC is not considered a for-hire vehicle and that the regulation of luxury
ground TNCs, luxury ground TNC drivers, and luxury ground TNC vehicles is preempted to the state.
The bill may have a fiscal impact on the Department of Financial Services. To the extent that local
governments currently collect revenue from regulation of digital advertising on vehicles, or fees from regulation
of limousines and luxury sedans, that revenue will be negatively impacted. See Fiscal Analysis section for
details.
The bill is effective upon becoming law.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1039b.lBS.D0CX
DATE: 1/31/2020
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Transportation Network Companies
In 2017, the Legislature established a regulatory framework for transportation network companies
(TNCs). 1 The law defines a "TNC" as an entity operating in this state that uses a digital network to
connect a rider2 to a TNC driver, who provides prearranged rides. A TNC is not deemed to own,
control, operate, direct, or manage the TNC vehicles or TNC drivers that connect to its digital network,
except where agreed to by written contract, and is not a taxicab association or for-hire vehicle owner.
The term does not include entities arranging nonemergency medical transportation for individuals who
qualify for Medicaid or Medicare pursuant to a contract with the state or a managed care organization.
A "TNC vehicle" is defined as a vehicle that is used by a TNC driver to offer or provide a prearranged
ride and that is owned, leased, or otherwise authorized to be used by the TNC driver. A vehicle that is
let or rented to another for consideration may be used as a TNC vehicle. The law specifies that a
taxicab, jitney, limousine, or for-hire vehicle is not a TNC vehicle.
A "prearranged ride" is defined as the provision of transportation by a TNC driver to a rider, beginning
when a TNC driver accepts a ride requested by a rider through a digital network3 controlled by a TNC,
continuing while the TNC driver transports the requesting rider, and ending when the last requesting
rider departs from the TNC vehicle. The term does not include a taxicab, for-hire vehicle, or street hail 4
service and does not include ridesharing, 5 carpool, 6 or any other type of service in which the driver
receives a fee that does not exceed the driver's cost to provide the ride. TNC drivers are prohibited
from soliciting or accepting street hails.
A "TNC driver" is defined as an individual who receives connections to potential riders and related
services from a TNC and in return for compensation, uses a TNC vehicle to offer or provide a
prearranged ride to a rider upon connection through a digital network. The law specifies that a TNC or
TNC driver is not a common carrier, contract carrier, or motor carrier and does not provide taxicab or
for-hire vehicle service. The law provides that a TNC driver is not required to register a TNC vehicle as
a commercial motor vehicle or a for-hire vehicle. It requires the TNC's digital network to display the
TNC driver's photograph and the TNC vehicle's license plate number before the rider enters the TNC
vehicle.
If a fare is collected from a rider, the law requires the TNC to disclose the fare or fare calculation
method on its website or within the online-enabled technology application service before beginning the
1
Section 627.748, F.S.
2
"Rider" means an individual who uses a digital network to connect with a TNC driver in order to obtain a prearranged ride in the TNC driver's
TNC vehicle between points chosen by the rider.
3
The term "digital network" means any online-enabled technology application service, website, or system offered or used by a TNC that enables the
prearrangement ofriders with TNC drivers.
4
The term "street hail" means an immediate arrangement on a street with a driver by a person using any method other than a digital network to seek
immediate transportation.
5 Section 341.031 (9)(a), F.S., defines "ridesharing" as an "arrangement between persons with a common destination, or destinations, within the same
proximity, to share the use of a motor vehicle on a recurring basis for round-trip transportation to and from their place of employment or other
common destination. For purposes ofridesharing, employment shall be deemed to commence when an employee arrives at the employer's place of
employment to report for work and shall be deemed to terminate when the employee leaves the employer's place of employment, excluding areas not
under the control of the employer. However, an employee shall be deemed to be within the course of employment when the employee is engaged in
the performance of duties assigned or directed by the employer, or acting in the furtherance of the business of the employer, irrespective of location."
6
Section 450.28(3), F.S., defines "carpool" as "an arrangement made by the workers using one worker's own vehicle for transportation to and from
work and for which the driver or owner of the vehicle is not paid by any third person other than the members of the carpool."
STORAGE NAME: h1039b.lBS.DOCX PAGE: 2
DATE: 1/31/2020
prearranged ride. If the fare is not disclosed, the rider must have the option to receive an estimated fare
before beginning the prearranged ride. In addition, a TNC is required to transmit to the rider an
electronic receipt within a reasonable period of time after the completion of a ride. The receipt must list
the origin and destination of the ride, total time and distance of the ride, and total fare paid.
A TNC is required to designate and maintain an agent for service of process in this state. 7
A TNC or TNC driver is not a common carrier, contract carrier, or motor carrier and does not provide
taxicab or for-hire vehicle service. As a result, a TNC driver is not required to register the TNC vehicle
as a commercial motor vehicle or a for-hire vehicle. 8
While a TNC driver is logged on to the digital network but is not engaged in a prearranged ride, the
TNC or TNC driver must have automobile insurance that provides: 9
• Primary automobile liability coverage of at least $50,000 for death and bodily injury per person,
$100,000 for death and bodily injury per incident, and $25,000 for property damage; and
• Personal injury protection benefits that meet the minimum coverage amounts required under the
Florida Motor Vehicle No-Fault Law. 10
When a TNC driver is engaged in a prearranged ride, the automobile insurance must provide: 11
• Primary automobile liability coverage of at least $1 million for death, bodily injury, and property
damage; and
• Personal injury protection benefits that meet the minimum coverage amounts required of a
limousine under the Florida Motor Vehicle No-Fault Law.
The coverage requirements may be satisfied by automobile insurance maintained by the TNC driver, an
automobile insurance policy maintained by the TNC, or a combination of automobile insurance policies
maintained by the TNC driver and the TNC. 12
The law preempts to the state the regulation of TNCs and specifies that a county, municipality, special
district, airport authority, port authority, or other local governmental entity or subdivision may not:
• Impose a tax on or require a license for a TNC, TNC driver, or TNC vehicle if such tax or license
relates to providing prearranged rides;
• Subject a TNC, TNC driver, or TNC vehicle to any rate, entry, operation, or other requirement of
the county, municipality, special district, airport authority, port authority, or other local
governmental entity or subdivision; or
• Require a TNC or TNC driver to obtain a business license or any other type of similar
authorization to operate within the local governmental entity's jurisdiction. 13
However, an airport or seaport is not prohibited from charging reasonable pickup fees consistent with
any pickup fees charged to taxicab companies at that airport or seaport for their use of the airport's or
seaport's facilities or from designating locations for staging, pickup, and other similar operations at the
airport or seaport. 14
For-Hire Vehicles
With certain exceptions, offering for lease or rent any motor vehicle in the State of Florida qualifies the
vehicle as a "for-hire vehicle." A "for-hire vehicle" is a motor vehicle used for transporting persons or
7
Section 48.091, F.S., requires any corporation doing business in the state to have a registered agent and registered office in the state.
8
Section 627.748(2), F.S.
9
Section 627.748(7)(b), F.S.
10
Sections 627.730-627.7405, F.S. The amount of insurance required is $10,000 for emergency medical disability, $2,500 non-emergency medical,
and $5,000 for death.
11
Section 627.748(7)(c), F.S.
12
Section 627.748(7)(b) & (c), F.S.
13
Section 627.748(15)(a), F.S.
14
Section 627.748(15)(b), F.S.
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DATE: 1/31/2020
goods for compensation. When goods or passengers are transported for compensation in a motor
vehicle outside a municipal corporation of this state, or when goods are transported in a motor vehicle
not owned by the person owning the goods, such transportation is considered "for hire". The carriage of
goods and other personal property in a motor vehicle by a corporation or association for its
stockholders, shareholders, and members, cooperative or otherwise, is transportation "for hire". 15
Florida law establishes specific financial responsibility requirements applicable to for-hire vehicles. For-
hire vehicles, such as taxis and limousines must maintain a motor vehicle liability policy with minimum
limits of $125,000 per person for bodily injury, $250,000 per incident for bodily injury, and $50,000 for
property damage. 16 The owner or operator of a for-hire vehicle may also prove financial responsibility
by providing satisfactory evidence of holding a motor vehicle liability policy issued by an insurance
carrier, which is a member of the Florida Insurance Guaranty Association, or by providing a certificate
of self-insurance. 17
For counties, to the extent not inconsistent with general or special law, the legislative and governing
body of a county has the power to carry on county government, including, but not restricted to, the
power to license and regulate taxis, jitneys, and limousines for hire, rental cars, and other passenger
vehicles for hire that operate in the unincorporated areas of the county. 18
Digital Advertising Device
Certain companies allow taxi and TNC drivers to generate revenue through digital advertising via a
digital smart screen on top of the taxi or TNC vehicle. The digital screen allows advertisers to run
targeted, geofenced campaigns. 19 There are currently digital advertising screens in use on vehicles in
New York, Los Angeles, San Francisco, Chicago, and Dallas. 20
Digital advertising screens are installed on the roofs of motor vehicles owned or operated by individuals
who commit to drive a minimum number of hours per week in certain urban markets. Drivers with digital
advertising screens report earning an average of $300 a month, depending on how many hours are
driven. 21
Prohibition Against Certain Lights
A person may not drive any vehicle or equipment upon any highway in this state with any lamp or
device thereon showing or displaying a red, red and white, or blue light visible from directly in front of
the vehicle, except for certain exceptions, such as fire department vehicles and road maintenance
equipment. 22 The law expressly prohibits any vehicle or equipment, except police vehicles, from
showing or displaying blue lights, except for Department of Corrections vehicles or county correctional
agency vehicles when responding to emergencies. Flashing lights are prohibited on vehicles except:
• As a means of indicating a right or left turn, to change lanes, or to indicate that the vehicle is
lawfully stopped or disabled upon the highway;
• When a motorist intermittently flashes his or her vehicle's headlamps at an oncoming vehicle
notwithstanding the motorist's intent for doing so; and
• Flashing lamps authorized for bicycle riders and deceleration lighting systems on buses.
15 Section 320.01(15)(a), F.S.
16
Section 324.032(1 ), F.S.
17
Section 324.031, F.S.
18
Section 125.01(1)(n), F.S.
19
Anthony Ha, Rideshare Advertising Startup Firefly Launches with $2 l.5M in Funding, Techcrunch.com (December 6, 2018), available at
https://techcrunch.com/2018/12/06/firefly-launch/ (last visited January 22, 2020).
20
See Firefly.com, available at https://fireflyon.com/ (last visited January 22, 2020).
21
Sarah Holder, Car-Mounted Ads Take a New Direction: Data Collection, Citylab.com (November 20, 2019), available at
https://www .citylab.com/transportation/2019/11 /firefly-digital-advertising-driver-pay-uber-lvft-cars-data/602077/ (last visited January 22, 2020).
22
Section 316.2397, F.S.
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DATE: 1/31/2020
Florida Deceptive and Unfair Trade Practices Act
The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) became law in 1973. 23 The purpose24
of FDUTPA is to:
1) Simplify, clarify, and modernize the law governing consumer protection, unfair methods of
competition, and unconscionable, deceptive, and unfair trade practices.
2) Protect the consuming public and legitimate business enterprises from those who engage in
unfair methods of competition, or unconscionable, deceptive, or unfair acts or practices in the
conduct of any trade or commerce.
3) Make state consumer protection and enforcement consistent with established policies of federal
law relating to consumer protection.
FDUTPA prohibits "[u]nfair methods of competition, unconscionable acts or practices, and unfair or
deceptive acts or practices in the conduct of any trade or commerce." 25 The term "trade or commerce"
is defined as "advertising, soliciting, providing, offering, or distributing, whether by sale, rental, or
otherwise, of any good or service, or any property, whether tangible or intangible, or any other article,
commodity, or thing of value, wherever situated", and the term includes "the conduct of any trade or
commerce, however denominated, including any nonprofit or not-for-profit person or activity." 26
Effect of Proposed Changes
LUXURY GROUND TRANSPORTATION NETWORK COMPANIES
The bill defines a "luxury ground transportation network company" or "luxury ground TNC", to mean a
company that uses a digital network to connect riders exclusively to drivers who operate for-hire
vehicles as defined ins. 320.01 (15), F.S., including limousines and luxury sedans and excluding
taxicabs. The entity may elect, upon written notification to the Department of Financial Services (DFS},
to be regulated as a luxury ground TNC. A luxury ground TNC must comply with all of the requirements
of s. 627.748, F.S., that are applicable to a TNC, including the preemption requirements, but is not
required to comply with any requirements that prohibit the company from connecting riders to drivers
who operate for-hire vehicles.
At all times, a luxury ground TNC must maintain insurance coverage at the levels at least equal to the
greater of those required ins. 627.748, F.S., and those required of for-hire vehicles, regardless of
whether the driver is operating as a for-hire vehicle driver or luxury ground TNC driver. The bill changes
the minimum insurance requirements applicable to a vehicle that is sometimes operated as a limousine
or for-hire vehicle compared to periods when the vehicle is operated as a luxury ground TNC. The
insurance differences are:
Insurance Limousine or Luxury Ground TNC
Result
Coverage For-hire Vehicle Logged on/No rider Connected to Rider
Personal Injury
Not required Not required Not required No change
Protection
Bodily Injury or $125,000 per person $50,000 per person $1,000,000 Decrease when
Death $250,000 per incident $100,000 per incident combined for bodily logged on/no rider
injury, death, or Increase when
Property Damage $50,000 $25,000
property damage connected to rider
A prospective luxury ground TNC that satisfies minimum financial responsibility requirements at the
time of written notification to DFS by using self-insurance may continue to use self-insurance to satisfy
the insurance requirements for a luxury ground TNC.
23
Chapter 73-124, Laws ofFla.; codified at part II ofch. 501, F.S.
24
Section 501.202, F.S.
25
Section 501.204(1), F.S.
26
Section 501.203(8), F.S.
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DATE: 1/31/2020
The bill adds TNC owners to the list of insureds whose coverage can be used to satisfy the insurance
requirements of s. 627.748(7), F.S. The required coverage may be provided by the TNC, TNC driver,
TNC owner, or any combination of the three. This allows the insurance maintained by the owner of a
luxury ground TNC, who is not necessarily the driver, to satisfy the insurance requirements.
A luxury ground TNC is not considered a for-hire vehicle for purposes of ch. 627, F.S. In order for the
bill's definition of "luxury ground transportation network company" to be compatible with current law, the
bill makes conforming changes to the definitions of "prearranged ride", "transportation network
company', and "transportation network company vehicle", by removing references to "for-hire vehicle",
"for-hire vehicle owner'', and "limousine". Additionally, the reference to "for-hire vehicle" is removed
from the provision of law that states that a TNC or TNC driver is not considered a common carrier and
does not have to register a TNC vehicle as a commercial motor vehicle or vehicle for-hire.
The bill preempts the regulation of luxury ground TNCs, luxury ground TNC drivers, and luxury ground
TNC vehicles to the state.
DIGITAL ADVERTISING DEVICES
The bill defines a "transportation network company digital advertising device" or "TNC digital advertising
device" to mean a device no larger than 20 inches tall and 54 inches long that is fixed to the roof of a
TNC vehicle and that displays advertisements on a digital screen only while the TNC vehicle is turned
on.
The bill provides the following requirements for a TNC digital advertising device:
• A TNC driver may contract with an individual or company to install a TNC digital advertising
device on a TNC vehicle.
• A TNC digital advertising device may be enabled with wireless Internet access and equipped
with GPS.
• A TNC digital advertising device may display advertisements only when the TNC vehicle is
turned on.
• A TNC digital advertising device must follow the lighting requirements of s. 316.2397, F.S.
• No portion of the TNC digital advertising device may extend beyond the front or rear windshield
of the vehicle, nor may it impact the TNC driver's vision.
• A TNC digital advertising device must display advertisements only on the sides of the device
and not to the front or rear of the vehicle. Identification of the provider does not constitute
advertising.
• A TNC digital advertising device must, at a minimum, meet the requirements of the MIL-STD-
810G standard, 27 or other reasonable environmental and safety industry standard, as
determined through independent safety and durability testing under the review of a licensed
professional engineer, before being installed on a TNC vehicle.
• A TNC digital advertising device may not display advertisements for illegal products or services
or advertisements that include nudity or violent images. All advertisements displayed on a TNC
digital advertising device are subject to the FDUTPA.
• A TNC driver is immune from liability for the display of an advertisement that violates s. 627.748,
F.S., or the FDUTPA unless the TNC driver is the advertiser.
• The owner or operator of a TNC digital advertising device that displays an advertisement that is
in violation of s. 627.748, F.S., or the FDUTPA is immune from liability under s. 627.748, F.S.,
and the FDUTPA for the violation if the advertisement was displayed in good faith and without
actual knowledge of the violation, unless the advertiser is the same person as the owner or
operator.
• For the purposes of chapter 627, F.S., a TNC advertising device shall be deemed part of a TNC
vehicle.
27 MIL-STD-8 IOG is a U.S. military specification that guarantees a level of durability for a piece of technology. Specifically, it means the equipment
has gone through a series of 29 tests, including shock tests, vibration tests, and more.
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DATE: 1/31/2020
As a result of the inclusion of a TNC digital advertising device as part of a TNC vehicle, the regulation
of a TNC digital advertising device is preempted to the state.
B. SECTION DIRECTORY:
Section 1: Amends s. 627.748, F.S., relating to transportation network companies.
Section 2: Provides that the act will take effect upon becoming a law.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill will likely have no impact on state government revenues.
2. Expenditures:
The bill may have a fiscal impact on DFS, but the impact is unknown at this time.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
The bill preempts the regulation of luxury ground TNCs, luxury ground TNC drivers, luxury ground
TNC vehicles, and TNC digital advertising devices to the state. To the extent municipalities,
counties, and other governmental entities are imposing fees on luxury ground TNCs, luxury ground
TNC drivers, luxury ground TNC vehicles, and TNC digital advertising devices, they will experience
an indeterminate negative fiscal impact.
2. Expenditures:
The bill will likely have no impact on local government expenditures.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill authorizes:
• The use of TNC digital advertising devices, thus enabling TNC drivers to install the devices and
earn additional monthly revenue.
• Certain limousine and for-hire vehicle owners and drivers to begin operating as or with luxury
ground TNCs, thus increasing competition within the TNC market and allowing them access to
TNC customers.
D. FISCAL COMMENTS:
None.
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DATE: 1/31/2020
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 reduces the ability of a county or municipality to raise revenue; however, an
exception may apply since the bill is expected to have an insignificant fiscal impact.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not provide a grant of rulemaking authority, nor does it require rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill permits a TNC driver, or a designee, to contract for the installation of a TNC digital advertising
device on the TNC vehicle. The TNC driver may not own the TNC vehicle. If the intent of the bill is to
authorize TNC owners to control the placement of the devices on the vehicle, then an amendment
could clarify whether the TNC driver is limited by the rights of the TNC owner, in this respect.
The bill defines TNC digital advertising device as a certain object fixed to the roof of the TNC vehicle
that cannot extend beyond the front or rear glass or display advertising to the front or rear of the
vehicle, along with other conditions and limitations applicable to the device and its advertising.
However, it does not address the use of advertising or advertising devices on the sides of the vehicle
below the roof. If it is the intent of the bill to limit digital advertising on TNC vehicles to only a TNC
digital advertising device or only such devices that are placed on the roof of the vehicle, then an
amendment may be needed to further limit the devices and advertising placed on TNC vehicles.
The bill provides that a TNC digital advertising device may only display advertising while the vehicle is
"turned on." It does not define "turned on." It is unclear if this term is apply to any or all of the following
conditions:
• The engine of a conventional vehicle is:
o Running.
o Not running, but the vehicle electronics are active in accessories mode.
• A plug-in electric vehicle is:
o In motion.
o In stand-by mode with electronic environment monitoring operating.
o Plugged in for charging with its electronic control unit active.
• An autonomous vehicle's:
o Automated driving system is:
• Active, but not executing a programmed drive.
• Executing a programmed drive.
If the intent of the bill is to only allow the display of advertising while the TNC driver is in the vehicle and
engaged in TNC activity, then an amendment may be needed to change to focus of the limitation from
the status of the vehicle to the status of its use and presence of the TNC driver.
The bill provides that "Identification of the provider does not constitute advertising under this
paragraph." It is unclear to whom the term "provider'' refers; the term is not used in the remainder of the
bill. Context indicates that it is either the TNC or an entity connected to the TNC digital advertising
device, or both. If the term "provider'' is intended to mean a specific entity, then an amendment could
resolve this ambiguity.
STORAGE NAME: h1039b.lBS.D0CX PAGE: 8
DATE: 1/31/2020
The bill provides that a TNC driver and the owner or operator of a TNC digital advertising device is
immune from liability for violations of s. 627.748, F.S., and the FDUTPA for certain advertisement
related violations. In those circumstances where the TNC vehicle owner is not also the owner or
operator of the device, the TNC vehicle owner is not provided the same immunity given to the others. If
the intent of the bill is to grant the TNC vehicle owner the same immunity as the others, then an
amendment may be needed to establish the immunity.
On lines 162-163, the bill makes the TNC digital advertising device a part of the TNC vehicle for the
purposes of ch. 627, F.S. This chapter regulates insurance rates and contracts; however, s. 627.748,
F.S., regulates TNCs providing general requirements, insurance requirements, and providing
preemption of local governmental regulation. If the intent of the bill is to only apply the various aspects
of s. 627.748, F.S., to the TNC digital advertising device as part of the TNC vehicle, i.e., preempt local
regulation of TNC digital advertising devices, then an amendment could provide greater specificity
regarding the purpose of this statement governing construction of the bill.
The bill adds luxury ground TNCs, luxury ground TNC drivers, and luxury ground TNC vehicles to the
list of preemptions limiting local governmental regulation of TNC activity. Luxury ground TNC vehicle
owners are not among those benefiting from a preemption. If the intent of the bill is to relieve luxury
ground TNC vehicle owners from the possibility of local taxes or business licensing for TNC activity,
then an amendment may be needed to grant such a preemption.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On January 28, 2020, the Transportation & Infrastructure Subcommittee adopted an amendment and
reported the bill favorably as a committee substitute. The amendment:
• Authorized TNC vehicle owners, rather than just TNC drivers, to maintain insurance that satisfies
the insurance requirements required for TNCs.
• Specified that a TNC digital advertising device may be enabled with cellular or Wi-Fi-enabled data
transmission and equipped with GPS.
• Required that a TNC digital advertising device may only display advertisements when the vehicle is
turned on.
• Removed the requirement that a TNC digital advertising device must allocate 10 percent of all
advertisement inventory for government, not-for-profit, or charitable organizations at no cost.
• Provided that TNC digital advertising devices are subject to the FDUTPA.
• Provided the TNC driver protection from liability for the display of an advertisement that violates s.
627.748, F.S., or the FDUTPA, unless the driver is the advertiser.
• Provided the owner or operator of a TNC digital advertising device immunity from liability when a
displayed advertisement is in violation of s. 627. 748, F.S., or the FDUTPA, if the advertisement
was displayed in good faith and without knowledge, unless the owner or operator is the advertiser.
This analysis is written to the committee substitute as reported favorably by the Transportation &
Infrastructure Subcommittee.
STORAGE NAME: h1039b.lBS.DOCX PAGE: 9
DATE: 1/31/2020
FLORIDA H O U S E 0 F REPRESENTATIVES
CS/HB 1039 2020
1 A bill to be entitled
2 An act relating to transportation network companies;
3 amending s. 627.748, F.S.; revising and providing
4 definitions; deleting for-hire vehicles from the list
5 of vehicles that are not considered TNC carriers or
6 are not exempt from certain registration; revising
7 automobile insurance coverage requirements for TNCs
8 and TNC drivers; authorizing TNC drivers to contract
9 for installment of TNC digital advertising devices;
10 providing requirements for such devices; providing
11 that TNC drivers and owners and operators of TNC
12 digital advertising devices are immune from specified
13 liabilities under certain circumstances; providing
14 construction; authorizing entities to be regulated as
15 luxury ground TNCs; providing requirements for luxury
16 ground TNCs; providing that luxury ground TNCs, luxury
17 ground TNC drivers, and luxury ground TNC vehicles are
18 governed by state law; providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Paragraphs (f) and (g) of subsection (1),
23 subsections (11) through (14), and subsection (15) of section
24 627.748, Florida Statutes, are redesignated as paragraphs (g)
25 and (h) of subsection (1), subsections (12) through (15), and
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26 subsection (17), respectively, paragraphs (b) and (e) and
27 present paragraph (g) of subsection (1), subsection (2),
28 paragraphs (b) and (c) of subsection (7), and paragraph (a) of
29 present subsection (15) are amended, a new paragraph (f) is
30 added to subsection (1), and a new subsection (11) and
31 subsection (16) are added to that section, to read:
32 627.748 Transportation network companies.-
33 (1) DEFINITIONS.-As used in this section, the term:
34 (b) "Prearranged ride" means the provision of
35 transportation by a TNC driver to a rider, beginning when a TNC
36 driver accepts a ride requested by a rider through a digital
37 network controlled by a transportation network company,
38 continuing while the TNC driver transports the rider, and ending
39 when the last rider exits from and is no longer occupying the
40 TNC vehicle. The term does not include a taxicab, for hire
41 vehicle, or street hail service and does not include ridesharing
42 as defined ins. 341.031, carpool as defined ins. 450.28, or
43 any other type of service in which the driver receives a fee
44 that does not exceed the driver's cost to provide the ride.
45 ( e) "Transportation network company" or "TNC" means an
46 entity operating in this state pursuant to this section using a
47 digital network to connect a rider to a TNC driver, who provides
48 prearranged rides. A TNC is not deemed to own, control, operate,
49 direct, or manage the TNC vehicles or TNC drivers that connect
50 to its digital network, except where agreed to by written
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51 contract, and is not a taxicab association or for hire vehicle
52 owner. An individual, corporation, partnership, sole
53 proprietorship, or other entity that arranges medical
54 transportation for individuals qualifying for Medicaid or
55 Medicare pursuant to a contract with the state or a managed care
56 organization is not a TNC. This section does not prohibit a TNC
57 from providing prearranged rides to individuals who qualify for
58 Medicaid or Medicare if it meets the requirements of this
59 section.
60 (f) "Transportation network company digital advertising
61 device" or "TNC digital advertising device" means a device no
62 larger than 20 inches tall and 54 inches long that is fixed to
63 the roof of a TNC vehicle and that displays advertisements on a
64 digital screen only when the TNC vehicle is turned on.
65 J.bl~ "Transportation network company vehicle" or "TNC
66 vehicle" means a vehicle that is not a taxicab or7 jitney7
67 limousine, or for hire vehicle as defined ins. 320.01(15) and
68 that is:
69 1. Used by a TNC driver to offer or provide a prearranged
70 ride; and
71 2. Owned, leased, or otherwise authorized to be used by
72 the TNC driver.
73
74 Notwithstanding any other provision of law, a vehicle that is
75 let or rented to another for consideration may be used as a TNC
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76 vehicle.
77 (2) NOT OTHER CARRIERS.-A TNC or TNC driver is not a
78 common carrier, contract carrier, or motor carrier and does not
79 provide taxicab or for hire vehiele service. In addition, a TNC
80 driver is not required to register the vehicle that the TNC
81 driver uses to provide prearranged rides as a commercial motor
82 vehicle or a for hire vehiele.
83 (7) TRANSPORTATION NETWORK COMPANY AND TNC DRIVER
84 INSURANCE REQUIREMENTS.-
85 (b) The following automobile insurance requirements apply
86 while a participating TNC driver is logged on to the digital
87 network but is not engaged in a prearranged ride:
88 1. Automobile insurance that provides:
89 a. A primary automobile liability coverage of at least
90 $50,000 for death and bodily injury per person, $100,000 for
91 death and bodily injury per incident, and $25,000 for property
92 damage;
93 b. Personal injury protection benefits that meet the
94 minimum coverage amounts required under ss. 627.730-627.7405;
95 and
96 c. Uninsured and underinsured vehicle coverage as required
97 bys. 627.727.
98 2. The coverage requirements of this paragraph may be
99 satisfied by any of the following:
100 a. Automobile insurance maintained by the TNC driver or
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CS/HB 1039 2020
101 the TNC vehicle owner;
102 b. Automobile insurance maintained by the TNC; or
103 c. A combination of sub-subparagraphs a. and b.
104 (c) The following automobile insurance requirements apply
105 while a TNC driver is engaged in a prearranged ride:
106 1. Automobile insurance that provides:
107 a. A primary automobile liability coverage of at least $1
108 million for death, bodily injury, and property damage;
109 b. Personal injury protection benefits that meet the
110 minimum coverage amounts required of a limousine under ss.
111 627.730-627.7405; and
112 c. Uninsured and underinsured vehicle coverage as required
113 bys. 627.727.
114 2. The coverage requirements of this paragraph may be
115 satisfied by any of the following:
116 a. Automobile insurance maintained by the TNC driver or
117 the TNC vehicle owner;
118 b. Automobile insurance maintained by the TNC; or
119 c. A combination of sub-subparagraphs a. and b.
120 (11) TRANSPORTATION NETWORK COMPANY DIGITAL ADVERTISING
121 DEVICE.-
122 (a) A TNC driver or his or her designee may contract with
123 a company to install a TNC digital advertising device on a TNC
124 vehicle.
125 (b) A TNC digital advertising device may be enabled with
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126 cellular or WiFi-enabled data transmission and equipped with
127 GPS.
128 (c) A TNC digital advertising device may display
129 advertisements only when the TNC vehicle is turned on.
130 (d) A TNC digital advertising device must follow the
131 lighting requirements of s. 316.2397.
132 (e) No portion of the TNC digital advertising device may
133 extend beyond the front or rear windshield of the vehicle, nor
134 may it impact the TNC driver's vision.
135 (f) A TNC digital advertising device must display
136 advertisements only to the sides of the vehicle and not to the
137 front or rear of the vehicle. Identification of the provider
138 does not constitute advertising under this paragraph.
139 (g) A TNC digital advertising device must, at a minimum,
140 meet the requirements of the MIL-STD-810G standard or other
141 reasonable environmental and safety industry standard, as
142 determined through independent safety and durability testing
143 under the review of a licensed professional engineer, before
144 being installed on a TNC vehicle.
145 (h) A TNC digital advertising device may not display
146 advertisements for illegal products or services or
147 advertisements that include nudity or violent images. All
148 advertisements displayed on a TNC digital advertising device are
149 subject to the Florida Deceptive and Unfair Trade Practices Act.
150 (i)l. A TNC driver is immune from liability for the
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CS/HB 1039 2020
151 display of an advertisement that violates this section or the
152 Florida Deceptive and Unfair Trade Practices Act unless the TNC
153 driver is the advertiser.
154 2. The owner or operator of a TNC digital advertising
155 device that displays an advertisement that is in violation of
156 this section or the Florida Deceptive and Unfair Trade Practices
157 Act is immune from liability under this section and the Florida
158 Deceptive and Unfair Trade Practices Act for the violation if
159 the advertisement was displayed in good faith and without actual
160 knowledge of the violation, unless the advertiser is the same
161 person as the owner or operator.
162 (j) For the purposes of this chapter, a TNC advertising
163 device shall be deemed part of a TNC vehicle.
164 (16) LUXURY GROUND TRANSPORTATION NETWORK COMPANIES.-
165 (a) As used in this subsection, the term "luxury ground
166 transportation network company" or "luxury ground TNC" means a
167 company that:
168 1. Meets the requirements of paragraph (b).
169 2. Notwithstanding other provisions of this section, uses
170 a digital network to connect riders exclusively to drivers who
171 operate for-hire vehicles as defined ins. 320.01(15), including
172 limousines and luxury sedans and excluding taxicabs.
173 (b) An entity may elect, upon written notification to the
174 department, to be regulated as a luxury ground TNC. A luxury
175 ground TNC must:
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176 1. Comply with all of the requirements of this section
177 applicable to a TNC, including subsection (17), that do not
178 conflict with subparagraph 2. or that do not prohibit the
179 company from connecting riders to drivers who operate for-hire
180 vehicles as defined in 320.01(15), including limousines and
181 luxury sedans and excluding taxicabs.
182 2. Maintain insurance coverage required in this section
183 when the luxury ground TNC driver is logged on to a digital
184 network or while the luxury ground TNC driver is engaged in a
185 prearranged ride. However, a prospective luxury ground TNC that
186 satisfies minimum financial responsibility at the time of
187 written notification to the department through compliance with
188 s. 324.032(2) by using self-insurance may continue to use self-
189 insurance to satisfy the requirements of this subparagraph.
190 J..l.21-f-±-§-+- PREEMPTION.-
191 (a) It is the intent of the Legislature to provide for
192 uniformity of laws governing TNCs, TNC drivers, ttHe TNC
193 vehicles, luxury ground TNCs, luxury ground TNC drivers, and
194 luxury ground TNC vehicles throughout the state. TNCs, TNC
195 drivers, ttHe TNC vehicles, luxury ground TNCs, luxury ground TNC
196 drivers, and luxury ground TNC vehicles are governed exclusively
197 by state law, including in any locality or other jurisdiction
198 that enacted a law or created rules governing TNCs, TNC drivers,
199 -e-r TNC vehicles, luxury ground TNCs, luxury ground TNC drivers,
200 or luxury ground TNC vehicles before July 1, 2017. A county,
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201 municipality, special district, airport authority, port
202 authority, or other local governmental entity or subdivision may
203 not:
204 1. Impose a tax on, or require a license for, a TNC, a TNC
205 driver, BT a TNC vehicle, a luxury ground TNC, a luxury ground
206 TNC driver, or a luxury ground TNC vehicle if such tax or
207 license relates to providing prearranged rides;
208 2. Subject a TNC, a TNC driver, BT a TNC vehicle, a luxury
209 ground TNC, a luxury ground TNC driver, or a luxury ground TNC
210 vehicle to any rate, entry, operation, or other requirement of
211 the county, municipality, special district, airport authority,
212 port authority, or other local governmental entity or
213 subdivision; or
214 3. Require a TNCL BT a TNC driver, a luxury ground TNC, or
215 a luxury ground TNC driver to obtain a business license or any
216 other type of similar authorization to operate within the local
217 governmental entity's jurisdiction.
218 Section 2. This act shall take effect upon becoming a law.
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hb1039-01-c1
:c
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1205 Price Transparency in Health Care Services
SPONSOR(S): Rodriguez, A.
TIED BILLS: IDEN./SIM. BILLS: SB 1626
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Health Market Reform Subcommittee 14 Y, 0 N Grabowski Calamas
2) Insurance & Banking Subcommittee Fortenber
3) Health & Human Services Committee
SUMMARY ANALYSIS
The United States is experiencing significant changes in health care payment and delivery. Consumers bear a
greater share of health care costs, and more participate in high deductible health plans. Clear, accurate
information about the cost and quality of health care is necessary for consumers to select value-based health
care.
HB 1205 prohibits a health insurer from limiting a health care provider's ability to disclose whether a patient's
cost-sharing obligation under his or her health insurance exceeds the cash price for a covered service. In
addition, insurers must not prevent providers from communicating the availability of more affordable services to
insured patients.
The bill also prohibits an insurer from requiring an insured patient to make a payment for a health care service
that exceeds the cash price of that service in the absence of health insurance.
The bill has no fiscal impact on state or local government.
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: h1205b.lBS.D0CX
DATE: 1/31/2020
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Health Care Price Transparency
The United States is experiencing significant changes in health care payment and delivery. Consumers
bear a greater share of health care costs, and more participate in high deductible health plans. Clear,
factual information about the cost and quality of health care is necessary for consumers to select value-
driven health care options and for consumers and providers to be involved in and accountable for
decisions about health and health care services. To promote consumer involvement, health care pricing
and other data needs to be free, timely, reliable, and reflect individual health care needs and insurance
coverage.
Price transparency can refer to the availability of provider-specific information on the price for a specific
health care service or set of services to consumers and other interested parties. 1 Price can be defined
as an estimate of a consumer's complete cost on a health care service or services that reflects any
negotiated discounts; is inclusive of all costs to the consumer associated with a service or services,
including hospital, physician, and lab fees; and identifies a consumer's out-of-pocket cost. 2 Further,
price transparency can be considered "readily available information on the price of health care services
that, together with other information, helps define the value of those services and enables patients and
other care purchasers to identify, compare, and choose providers that offer the desired level of value." 3
Indeed, the definition or the price or cost of health care has different meanings depending on who is
incurring the cost. 4
As health care costs continue to rise, most health insurance buyers are asking their consumers to take
on a greater share of their costs, increasing both premiums and out-of-pocket expenses. According to
the Kaiser Family Foundation, more than one in five Americans with private insurance is enrolled in a
high deductible health plan (HDHP). Most covered workers face additional out-of-pocket costs when
they use health care services, such as co-payments or coinsurance for physician visits and
hospitalizations. Eighty-one percent of covered workers have a general annual deductible for single
coverage that must be met before most services are paid for by the plan. 5
Among covered workers with a general annual deductible, the average deductible amount for single
coverage is $1,573. 6 Deductibles differ by firm size; for workers in plans with a deductible, the average
deductible for single coverage is $2,132 in small firms, compared to $1,355 for workers in large firms.7
Sixty-eight percent of covered workers in small firms are in a plan with a deductible of at least $1,000
for single coverage compared to 54% in large firms; a similar pattern exists for those in plans with a
deductible of at least $2,000 (42% for small firms vs. 20% for large firms). The chart below shows the
percent of workers enrolled in employer-sponsored insurance with an annual deductible of $1,000 or
more for single coverage by employer size for 2009 through 2018. 8
1 Government Accounting Office, Meaningful Price Information is Difficult for Consumers to Obtain Prior to Receiving Care, September 2011, page
2, available at http://www.gao.gov/products/GA0-11-791 (last accessed December 16, 2019).
2
Id.
3
Healthcare Financial Management Association, Price Transparency in Health Care: Report from the HFMA Price Transparency Task Force, page
2, 2014, available at https://www.hfma.org/Content.aspx?id=22305 (last accessed December 16, 2019).
4
Id.
5 The Henry J. Kaiser Family Foundation, 2018 Employer Health Benefits Survey, October 3, 2018, available at http://files.kff.org/attachment/Report-
Employer-Health-Benefits-Annual-Survey-2018 (last accessed December 16, 2019).
6
Id.
7
Id.
8
Id, figure 7.13.
STORAGE NAME: h1205b.lBS.D0CX PAGE: 2
DATE: 1/31/2020
Percentage of Covered Workers Enrolled In a Plan with a General Annual Deductible of
$1,000 or More for Single Coverage, by Firm Size, 2009-2018
.... Al Small Flrms - All Large Flrms ... AU. FIRMS
1001,;,
S(Y\;,
f!C",,
~
a,
~ 68%·
~
10"'1
a: Wlb M'll.•
81'!4
i
0
u 50:~.
'3 48'!(,
f 4()%
~ 31%
~ 30''1)
a,
Q. 28%
26%
i~
!CAI; 13'1.
O'!,,
2009 2010 2011 2012 :ZOU 2014 2015 2016 2017 2018
• Estimate Is statlstkalty different from estimate for the pc-eYious year 5hown (p < .OS!.
NOTE: Small Fin'ns ha,... 3· 199 worlt.n and uirg. Fmm " - 200 or more wo,fwn. Thew fl!im.'lfti indud• woo:11- fflroll.d in HDHP/SO,- and other plan
types. AYerage general annual deductl~ are for 1n-networlt p,rovide,5.
SOURCE: Kff Empic,yff Hfflfh s.ntfits SUM!)', 2018; K.lsi!'r/HRET Surwy of Emplo.,.,·Spon~~ HNlfh 8"'Mfits. 2009-2017
Looking at the increase in deductible amounts over time does not capture the full impact for workers
because the share of covered workers in plans with a general annual deductible also has increased
significantly, from 59% in 2008 to 78% in 2013 to 85% in 2018. If we look at the change in deductible
amounts for all covered workers (assigning a zero value to workers in plans with no deductible), we can
look at the impact of both trends together. Using this approach, the average deductible for all covered
workers in 2018 is $1,350, up 53% from $883 in 2013 and 212% from $433 in 2008.
From 2013 to 2018, the average premium for covered workers with family coverage increased 20%,
while wages have only increased 12%. 9 The dramatic increases in the costs of healthcare in recent
years have focused significant attention on the need for greater communication and transparency to
inform individual health care choices.
National Price Transparency Studies
To explore how expanding price transparency efforts could produce significant cost savings for the
healthcare system, the Gary and Mary West Health Policy Center funded an analysis, "Healthcare
Price Transparency: Policy Approaches and Estimated Impacts on Spending." This report, conducted in
collaboration with researchers from the Center for Studying Health System Change and RAND, found
that implementation of three policy changes could save $100 billion over ten years.
• Provide personalized out-of-pocket expense information to patients and families before
receiving care.
• Provide prices to physicians through electronic health record systems when ordering treatments
and tests.
9
Id.
STORAGE NAME: h1205b.l8S.DOCX PAGE: 3
DATE: 1/31/2020
• Expand state-based all-payer health claims databases (APCDs), which could save up to $55
billion by collecting and providing data and analytics tools that supply quality, efficiency and cost
information to policy makers, employers, providers, and patients. 10
The report specifically found that requiring all private health insurance plans to provide personalized
out-of-pocket price data to enrollees would reduce total health spending by an estimated $18 billion
over the 10-year period from 2014 to 2023. 11
As Americans take on more of their health care costs, research suggests that they are looking for more
and better price information. 12
Many Americans want help managing their health care spending.
Figure 16: Percent who say the following resources would help them a lot or some
with their health care spending:
A website that would show how 69%
much different doctors charge.
A phone number at their Insurance company
to caO beforv a doctor's visit to get an 65%
estimate of how much the visit would cost.•
Beforv they leave the doctor's office,
an estimate from the rec~onlst 64%
of how much their blO would be.
Discounts on their Insurance premium
or cash back from their Insurance com~ 60%
If they choose a less expensive doctor.
Nottflc:atlons from their Insurance compa~
about less expensive doctors.
B-=AD~N-7.1110.
•a-:uaminily hlMlhuldl ......._ n-1.136.
10 White, C., Ginsburg, P., et al., Gary and Mary West Health Policy Center, Healthcare Price Transparency: Policy Approaches and
Estimated Impacts on Spending, May 2014, available at http://www.westhealth.org/wp-content/uploads/2015/05/Price-Transparency-
Policy-Analysis-FINAL-5-2-14.pdf (last accessed December 16, 2019).
11 Id., pg. 1.
12 Public Agenda and Robert Wood Johnson Foundation, How Much Will It Cost? How Americans Use Prices in Health Care, March
2015, pg. 34, available at https://www.publicagenda.org/files/HowMuchWillltCost PublicAgenda 2015.pdf (last accessed December 16,
2019).
STORAGE NAME: h1205b.1BS.DOCX PAGE: 4
DATE: 1/31/2020
One study in 2014, which conducted a nationally representative survey of more than 2,000 adults,
found that 56 percent of Americans actively searched for price information before obtaining health care,
including 21 percent who compared the price of health care services across multiple providers. 13 The
chart below illustrates the finding that, as a consumer's health plan deductible increases, the consumer
is more likely to seek out price information. 14
People with deductibles over $500 are more likely to seek price information.
Figure 2: Percent who say they have tried to find price information before getting care,
by deductible amount:
67%t
53%*
48%*
No deductible Less than $500 $500 to $1,000 $1,001 to $3,000 More than $3,000
Base: Currently have health insurance~ n-1.716.
Estimates fOf' groups indicated by • are not st.atistically different from each other. and groups indicated by t are not statisticaUy different from each ether;
g,oups indicated by • are statistically differl!flt from groups in<fjcated by t at the p<:.05 level
The individuals who compared prices stated that such research affected their health care choices and
saved them money. 15 In addition, the study found that most Americans do not equate price with quality
of care. Seventy one percent do not believe higher prices impart a higher level care quality and 63
percent do not believe that lower price is indicative of lower level care quality. 16 Consumers enrolled in
high-deductible and consumer-directed health plans are more price-sensitive than consumers with
plans that have much lower cost-sharing obligations. Accordingly, these consumers find an estimate of
their individual out-of-pocket costs more useful than any other kind of health care price transparency
tool. 17 Another study found that when they have access to well-designed reports on price and quality,
80 percent of health care consumers will select the highest value health care provider. 18
13 Id., pg. 3.
14 Id., pg. 13.
15 Id., pg. 4.
16
Supra note 12.
17
American Institute for Research, Consumer Beliefs and Use of lnfonnation About Health Care Cost, Resource Use, and Value,
Robert Wood Johnson Foundation, October 2012, pg. 4, available at
https://www.rwjf.org/contenUdam/farm/reports/issue briefs/2012/rwjf402126 (last accessed December 16, 2019).
18
Hibbard, JH, et al., An Experiment Shows That a Well-Designed Report on Costs and Quality Can Help Consumers Choose High-
Value Health Care, Health Affairs 2012; 31 (3): 560-568.
STORAGE NAME: h1205b.1BS.DOCX PAGE: 5
DATE: 1/31/2020
Price Transparency in Florida Law
Patient's Bill of Rights and Responsibilities
In 1991, the Legislature enacted the Florida Patient's Bill of Rights and Responsibilities (Patient's Bill of
Rights). 19 The statute established the right of patients to expect medical providers to observe standards
of care in providing medical treatment and communicating with their patients. 20
Under s. 381.026(4)(c), F.S., a patient has the right to request certain financial information from health
care providers and facilities. 21 Specifically, upon request, a health care provider or health care facility
must provide a person with a reasonable estimate of the cost of medical treatment prior to the provision
of treatment. 22 Estimates must be written in language "comprehensible to an ordinary layperson" .23
The reasonable estimate does not preclude the health care provider or health care facility from
exceeding the estimate or making additional charges as the patient's needs or medical condition
warrant. 24 A patient has the right to receive a copy of an itemized bill upon request and to receive an
explanation of charges upon request. 25
The Patient's Bill of Rights also authorizes, but does not require, primary care providers26 to publish a
schedule of charges for the medical services offered to patients. 27 The schedule must include certain
price information for at least the 50 services most frequently provided by the primary care provider. 28
The law also requires the posting of the schedule in a conspicuous place in the reception area of the
provider's office and at least 15 square feet in size. 29 A primary care provider who publishes and
maintains a schedule of charges is exempt from licensure fees for a single renewal of a professional
license and from the continuing education requirements for a single 2-year period. 30 The law also
requires urgent care centers to publish a schedule of charges for the medical services offered to
patients. 31
In addition, current licensure law requires all practitioners regulated by the Department of Health or its
boards to provide an estimate for nonemergency services provided in a hospital or ambulatory surgical
center, if the patient requests it. This provision is an enforceable licensure standard, and failure to
provide the estimate is subject to a daily fine of $500 until the estimate is provided. 32
19 S. 1, ch. 91-127, Laws of Fla. (1991); s. 381.026, F.S.; The Florida Patient's Bill of Rights and Responsibilities is intended to promote
better communication and eliminate misunderstandings between the patient and health care provider or health care facility. The rights
of patients include standards related to individual dignity; information about the provider, facility, diagnosis, treatments, risks, etc.;
financial information and disclosure; access to health care; experimental research; and patient's knowledge of rights and
responsibilities. Patient responsibilities include giving the provider accurate and complete information regarding the patient's health,
comprehending the course of treatment and following the treatment plan, keeping appointments, fulfilling financial obligations, and
following the facility's rules and regulations affecting patient care and conduct.
20 S. 381.026(3), F.S.
21 S. 381.026(4)(c), F.S.
22 S. 381.026(4)(c)3., F.S.
23 Id.
24 Id.
25 S. 381.026(4)(c)5., F.S.
26 S. 381.026(2)(d), F.S., defines primary care providers to include allopathic physicians, osteopathic physicians, and nurses who
provide medical services that are commonly provided without referral from another health care provider, including family and general
practice, general pediatrics, and general internal medicine.
27 S. 381.026(4)(c)3., F.S.
2a Id.
29 Id.
30
S. 381.026(4)(c)4., F.S.
3 1 S. 395.107(1), F.S.
32 S. 456.0575(2), F.S.
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DATE: 1/31/2020
Health Care Facilities
Under s. 395.301 (1)(b)1., F.S., a health care facility 33 must provide, within 7 days of a request, a good
faith estimate of reasonably anticipated charges for the facility to treat the patient's or prospective
patient's condition. The facility is not required to adjust the estimate for any potential insurance
coverage. 34 The facility must inform the patient or prospective patient of the option to contact his or
her insurer or HMO to obtain additional information regarding cost-sharing. 35 Upon request, the
facility must also notify the patient or prospective patient of any revision to the estimate. 36 Failure to
timely provide the estimate as requested will result in a daily fine of $1,000 until the estimate is
provided, with a total fine not to exceed $10,000. 37
Pursuant to s. 395.301 (1)(d)1., F.S., upon request and at discharges or release from a facility, the
facility must provide a patient or the patient's survivor or legal guardian, an itemized bill or statement
detailing the charges or expensed incurred by the patient.
Prescription Drug Prices
In 2018, the Legislature approved statutory changes to ensure that pharmacists can freely
communicate pricing information to patients. 38 Those changes were aimed at pharmacy benefit
managers (PBMs), which are entities that provide services related to the acquisition and distribution of
prescription drugs. PBMs enter into contracts with both health plans and pharmacies. PBMs negotiate
with drug manufacturers, on behalf of health plans, in an effort to purchase drugs at reduced prices or
with the promise of additional rebates. This negotiation process often involves the development of drug
formularies, which are tiered drug lists that incentivize the use of some drugs over others. 39 PBMs
simultaneously negotiate with pharmacies to establish reimbursements for dispensing prescription
drugs to patients.
Current Florida law requires contracts between pharmacy benefit managers (PBMs) and insurers or
HMOs to include a prohibition on PBM practices that may limit the ability of a pharmacy or pharmacist
to communicate with patients. Each contract must prohibit a PBM from restricting the ability of a
pharmacy or pharmacist to disclose to a patient whether his or her cost sharing obligation under an
insurance benefit exceeds the retail price of a drug, and whether a more affordable alternative drug
may be available. 40
Congress also passed two complementary laws in 2018 aimed at improving drug price transparency for
insured patients. 41 The laws prohibit all private health insurers and all Medicare plans covering
prescription drugs from limiting the ability of pharmacies and pharmacists to provide patients with
relevant price information on the drugs they purchase. Under the laws, no PBM or insurer may prevent
a pharmacist from informing a patient about any difference in the cost of a drug under that patient's
insurance versus the cash price of the drug.
33 The term "health care facilities" refers to hospital, ambulatory surgical centers, and mobile surgical centers, all of which are licensed
underch.395,partl, F.S.
34 S. 395.301 (1 )(b)1., F.S.
3s Id.
36 Id.
37 Id.
38 Ch. 2018-91, Laws of Fla.
39 Academy of Managed Care Pharmacy (AMCP). Fonnulary Management. Available at https://www.amcp.org/abouUmanaged-care-
pharmacy-101 /concepts-managed-care-pharmacy/formulary-manaqement (last accessed January 2, 2020). See also Pharmaceutical
Care Management Association (PCMA). Phannacy Contracting & Reimbursement. Available at https://www.pcmanet.org/policy-
issues/pharmacy-contractinq-reimbursemenU (last accessed January 2, 2020).
40 Ss. 627. 64741, 627.6572, and 641.314, F.S.
41 Public Laws 115-162 and 115-263.
STORAGE NAME: h1205b.lBS.D0CX PAGE: 7
DATE: 1/31/2020
Both the federal laws and Florida law apply only to price information shared in the context of
prescription drug coverage. Current law does not otherwise prohibit any limits on price transparency
that may exist in contracts between health plans and service providers, such as physicians and clinics.
Effect of Proposed Changes
HB 1205 prohibits a health insurer from limiting a health care provider's ability to disclose whether a
patient's cost-sharing obligation under his or her health insurance exceeds the cash price for a covered
service. 42 The bill expands existing law protecting the communication rights of pharmacies and
pharmacists to include all providers of health care services. In addition, an insurer may not prevent a
provider from communicating the availability of more affordable services to an insured patient.
The bill also prohibits an insurer from requiring an insured patient to make a payment for a health care
service that exceeds the cash price of that service in the absence of health insurance.
The bill provides an effective date of July 1, 2020.
8. SECTION DIRECTORY:
Section 1: Creates s. 627.4303, F.S.; relating to price transparency in contracts between health
insurers and health care providers.
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.
8. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
42 While cash price is not a defined term, in the healthcare context it generally refers to the price that a health care provider would
charge a patient who does not have health insurance.
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DATE: 1/31/2020
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
8. RULE-MAKING AUTHORITY:
The bill neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h1205b.lBS.D0CX PAGE: 9
DATE: 1/31/2020
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1205 2020
1 A bill to be entitled
2 An act relating to price transparency in health care
3 services; creating s. 627.4303, F.S.; defining the
4 term "health insurer"; prohibiting limitations on
5 price transparency with patients in contracts between
6 health insurers and health care providers; prohibiting
7 a health insurer from requiring an insured to make a
8 payment in a certain amount for a covered service;
9 providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Section 627.4303, Florida Statutes, is created
14 to read:
15 627.4303 Price transparency in health care services.-
16 (1) As used in this section, the term "health insurer"
17 means a health insurer issuing major medical coverage through an
18 individual or group policy or a health maintenance organization
19 issuing major medical coverage through an individual or group
20 contract.
21 (2) In its contract with a health care provider, a health
22 insurer may not limit the health care provider's ability to
23 disclose whether a patient's cost-sharing obligation exceeds the
24 cash price for a covered service in the absence of health
25 insurance coverage or the availability of a more affordable
Page 1 of 2
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hb1205-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1205 2020
26 service.
27 (3) A health insurer may not require an insured to make a
28 payment for a covered service in an amount that exceeds the cash
29 price of the service in the absence of health insurance
30 coverage.
31 Section 2. This act shall take effect July 1, 2020.
Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb1205-00
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1357 Property Insurance
SPONSOR(S): Trumbull
TIED BILLS: IDEN./SIM. BILLS: SB 1760
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Fortenber
2) Civil Justice Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
Residential and commercial property insurance policies issued in Florida may be issued on either the admitted
or surplus lines insurance markets. When insurance is not available to Florida consumers from admitted
insurers, it generally becomes necessary and legally permissible to obtain policies on the surplus lines market.
However, much of the Florida Insurance Code that places requirements on insurers does not apply to surplus
lines insurers. Neither the Florida Insurance Code, which is generally inapplicable to surplus lines insurers, nor
the Surplus Lines Law, presently contain requirements or restrictions on the venue or jurisdiction provisions
contained within property insurance policies issued in Florida on property located within Florida.
The bill changes the surplus lines law to prohibit a surplus lines agent from delivering or issuing, in Florida, a
property insurance policy requiring dispute resolution outside Florida or applying the laws of another state.
Additionally, it amends the Insurance Code to address venue and jurisdiction for all property insurers,
regardless of whether they write residential or commercial policies on the admitted or surplus lines markets. It
provides that any action or dispute resolution involving a property insurance policy issued by a Florida insurer
or a claim against an insurer issuing property insurance policies in Florida must be conducted in Florida and
governed by Florida law.
The bill amends the statute governing the payment of residential property insurance claims so that its
requirements apply to commercial insurance policies written on the admitted market and to residential and
commercial property insurance policies issued on the surplus lines market. The bill provides that any property
insurer's failure to comply with the prompt payment requirements of the Florida Insurance Code provides a
basis for a private cause of action.
The bill further amends Florida's Valued Policy Law, which is a law designed to protect property insurance
policyholders whose property has incurred a total loss by ensuring that the policyholders receive the face
amount of the policy. The changes include its application to surplus lines insurers, a codified definition of total
loss, and a requirement that that an insurer's liability under the applicable property insurance policy includes
liability for ordinance, rule, and law coverage.
The bill has no impact on state or local government revenues or expenditures. The bill may have a positive
economic benefit to consumers.
The bill provides an effective date of July 1, 2020, except as otherwise provided therein.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1357.IBS.D0CX
DATE: 2/1/2020
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
General Background Regarding Admitted and Surplus Lines Property Insurers
Residential and commercial property insurance policies issued in Florida may be issued on either the
admitted 1 or surplus lines insurance markets. When insurance is not available to Florida consumers
from admitted insurers, it generally becomes necessary and legally permissible to obtain policies on the
surplus lines market. 2 The export of insurance policies, including property insurance policies, to the
surplus lines market is regulated by the Florida Office of Insurance Regulation (OIR) under the Florida
Surplus Lines Law. 3 Section 626.913, F.S., of the Surplus Lines Law establishes that, unless otherwise
specifically stated, the provisions of ch. 627, F.S., do not apply to surplus lines policies issued pursuant
to the Surplus Lines Law. Because ch. 627, F.S., contains many of the requirements placed upon
Florida property insurers, including duties regarding claims handling, many of the requirements
currently placed on admitted insurers do not apply to surplus lines insurers.
Because coastal and other properties in Florida often fall into categories of risk that admitted insurers
are unable or unwilling to write, property owners in those geographic areas often find themselves
obtaining policies issued by surplus lines market. 4 These policyholders may not understand exactly
what benefits and rights their policies provide. Following significant hurricanes in Florida, policyholders
with policies from admitted and surplus lines insurers have also complained about claims handling by
their insurers.
Venue and Jurisdiction for Insurance Disputes
Venue is defined as the proper, or possible, geographic location for the handling of a case because the
location has some connection to the events giving rise to the case. 5 Jurisdiction is a court's power to
decide a case or issue a decree. 6 Neither the Florida Insurance Code, which is generally inapplicable
to surplus lines insurers, nor the Surplus Lines Law, presently contain requirements or restrictions on
the venue or jurisdiction provisions contained within property insurance policies issued in Florida on
property located within Florida. As such, property insurers can require that Florida policyholders
engage in dispute resolution or litigation outside Florida even when the dispute concerns property
located in Florida. Additionally, such insurers could restrict, or attempt to restrict, courts from exercising
applicable jurisdiction over those insurers by placing restrictive language within property insurance
policies issued to Florida policyholders.
Effect of the Bill on Venue and Jurisdiction
Changes Applicable to Surplus Lines Insurers Only
The bill establishes that the Surplus Lines law does not authorize litigation or alternative dispute
resolution for any residential or commercial property insurance claim involving real property located in
Florida to occur outside Florida or to apply the laws of another state. The bill also creates a new
1
Admitted or authorized insurers are those who have received a certificate of authority from the OIR to transact insurance business
within the state.
2
Sees. 626.913, F.S.
3
Ss. 626.913--626.937, F.S., constitute the Florida Surplus Lines Law.
4
Florida Surplus Lines Service Office, What is Surplus Lines Insurance?, https://www.fslso.com/AboutGroup/about/surplus-lines-
insurance (last visited February 1, 2020).
5
Black's Law Dictionary 745 (2nd Pocket Edition 2001).
6
Id. at 383.
STORAGE NAME: h1357.IBS.D0CX PAGE: 2
DATE: 2/1/2020
statutory section in the Surplus Lines Law that prohibits a surplus lines agent from delivering or issuing,
in Florida, a property insurance policy containing a provision requiring dispute resolution outside Florida
or a provision applying the laws of another state.
Changes Applicable to Admitted Insurers and Surplus Lines Insurers
The bill creates a new statutory section within the Insurance Code to address venue and jurisdiction for
all property insurers. This section defines insurer in this section to include both admitted and eligible
surplus lines carriers. It states that the section applies only to residential and commercial property
insurance policies covering real property located in Florida. The section provides that any action or
dispute resolution involving a property insurance policy issued by a Florida insurer or a claim against an
insurer issuing property insurance policies in Florida must be conducted in Florida and governed by
Florida law. This section mandates that no property insurance policy covering real property located in
Florida may contain terms depriving Florida courts of jurisdiction for actions against the insurer issuing
the policy. It also specifies that any provision of a property insurance policy, including a surplus lines
policy that violates any provision of the created statutory section is void, but that such voiding does not
affect the validity of other provisions of the insurance policy.
Insurers' Duty to Acknowledge Communications Regarding Claims, Including Claims Payment
Requirements
Section 627. 70131, F.S., contains various requirements for insurers' handling of property insurance
claims in Florida. As currently written, however, this statute does not apply to commercial property
insurance claims 7 written by admitted insurers or to residential or commercial policies written by surplus
lines insurers. One of the most significant requirements of this statute is the 90-day payment
framework set out ins. 627.70131(5)(a), F.S., 8 which generally requires a residential property insurer to
pay or deny a claim or portion of a claim within 90 days after receiving notice an initial, reopened, or
supplemental claim, unless the failure to pay is cause by factors beyond the control of the insurer.
However, this subsection specifically states that an insurers' failure to comply with the subsection
cannot be the sole reason for a private cause of action. 9
Effect of the Bill on Insurers' Duty
The bill changes the definition of insurer used ins. 627.70131, F.S., so that it includes all residential
and commercial property insurers, regardless of whether they issue policies on the admitted or surplus
lines markets. This amendment to the existing law makes all of the provisions of this statutory section
applicable to admitted insurers writing commercial property insurance policies and to surplus lines
insurers writing residential and commercial property insurance policies, in addition to admitted insurers
writing residential property insurance policies. The bill provides that any property insurer's failure to
comply with the prompt payment requirements of s. 627.70131 (S)(a) provides a basis for a private
cause of action.
7
S. 627.7013 l(l)(b), F.S., creates exceptions to make certain portions of the statute applicable to claims under commercial lines
residential coverage (designed to cover commercial properties used as residences), to claims for structural or contents coverage under
commercial insurance policies if the insured structures are 10,000 square feet or less, and to claims for contents coverage under
commercial tenant policies if the insured premises are 10,000 square feet or less.
8
This requirement is sometimes colloquially referred to as the "prompt pay" requirement for residential property insurers.
9
A private cause of action is a factual situation that entitles a private party to sue another private party. See Black's Law Dictionary
89 (2nd pocket edition 200 I).
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DATE: 2/1/2020
Valued Policy Law; Law and Ordinance Coverage
Valued Policy Law
Approximately 20 states, including Florida, have a Valued Policy Law. 10 The goal of valued policy laws
is to protect property insurance policyholders whose property has incurred a total loss by ensuring that
the policyholders receive the face amount of the policy. 11 These laws prevent policyholders from
having to prove their property's actual cash value or replacement cost at the time of a loss. 12 They also
prevent property insurers from collecting premiums to insure buildings at their full value but then paying
less than that amount after a loss has taken place. 13
Florida's Valued Policy Law currently applies to the total loss of buildings, structures, mobile homes, or
manufactured buildings located in Florida and insured as to a covered peril. 14 Under this law, if a total
loss is caused by a covered peril, an insurer's liability under a property insurance policy equals the total
coverage limit for which a premium was paid. While Florida's Valued Policy Law does not differentiate
between residential and commercial property, it does not cover policies issued by surplus lines
insurers.
Law and Ordinance Coverage
Prior to issuing a homeowner's insurance policy, an insurer must offer a policy or an endorsement
providing that any loss repaired or replaced will be adjusted on the basis of replacement costs to the
dwelling, and also including costs necessary to meet applicable laws and ordinances regulating the
construction, use, or repair of any property, or requiring the tearing down of any property, including the
costs of removing debris. 15 Additionally, this statute requires insurers who issue homeowners'
insurance policies to provide the following statement with policy documents at initial issuance and at
every renewal: "Law and Ordinance: Law and ordinance is an important coverage that you may wish to
purchase. Please discuss with your insurance agent."
Effect of the Bill on Valued Policy Law. and Law and Ordinance Coverage
The bill defines insurer in the Valued Policy Law so that it includes both admitted insurers and surplus
lines insurers. It also codifies the definition of total loss as a loss in which damaged property is damage
to the extent that applicable ordinances, rules or laws prevent repairing the property or for which the
cost to repair the property exceeds the applicable coverage limit of the insurance policy covering the
property. The bill adds a provision to the Valued Policy Law requiring that an insurer's liability under
the applicable property insurance policy includes liability for ordinance, rule, and law coverage. 16
Effective Date Provisions of the Bill
The bill provides that the amendments it makes relating to the Surplus Lines Law, claims handling, and
the Valued Policy Law, and the new statutory sections of law that it creates, apply only to property
insurance policies issued or renewed on or after January 1, 2021, and do not apply to any claim,
ongoing dispute resolution, or legal action pending as of July 1, 2020.
10
The Balance Small Business, What are Valued Policy Laws?, https://www.thebalancesmb.com/what-are-valued-policy-laws-
4584774 (last visited February 1, 2020).
11 Id
12 Id
13
Id
14
S. 627.702, F.S. A covered peril is a risk or cause of loss.
15
S. 627.7011, F.S. Homeowner's insurance policy is an industry term often used to describe a residential property insurance policy
issued to an individual homeowner.
16
See drafting comments for discussion of possible concerns between the effect of the bill and existing law and ordinance coverage
requirements under s. 627.7011, F.S.
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DATE: 2/1/2020
B. SECTION DIRECTORY:
Section 1. Amends s. 626.913, F.S., relating to surplus lines law; short title; purposes.
Section 2. Creates s. 626.9285, F.S., relating to contracts with alternative dispute resolutions or
application of laws of another state prohibited.
Section 3. Amends s. 627.70131, F.S., relating to insurer's duty to acknowledge communications
regarding claims; investigation.
Section 4. Amends s. 627.702, F.S., relating to valued policy law.
Section 5. Creates s. 627.7035, F.S., relating to proceeding venues and jurisdiction of courts for real
property coverage.
Section 6. 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:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have positive economic impacts for consumers, particularly those who have residential
insurance policies written by surplus lines insurers. This bill provides that no property insurance
policyholders whose real property is located within Florida will have to engage in dispute resolutions or
legal actions outside Florida or applying law other than Florida law. This will eliminate the
inconvenience and cost associated with attending mediation or arbitration or going to court outside
Florida. It will also bring more certainty to policyholders about the law that will be applied to their claims
and the resolution of those claims. Because it applies existing claims payment deadlines to surplus
lines insurers, the bill will also streamline the claims payment process for policyholders who have
surplus lines policies. It further assists consumers by strengthening the Valued Policy Law to ensure
that policyholders are paid for a total loss where appropriate.
D. FISCAL COMMENTS:
None.
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DATE: 2/1/2020
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 neither authorizes nor requires administrative rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Lines 31-51 and 177-207: Lines 31-51 create a new statutory subsection within the Surplus Lines
Law (s. 626.9285, F.S.) and Lines 177-207 create a new statutory section within the Insurance Code
(s. 627.7035, F.S.), which provides that it applies to surplus lines insurers. There is subject matter
overlap between these two sections that may not be consistent and may result in confusion or conflict.
It is recommended that the potentially conflicting part of the statute be removed from s. 626.9285, F.S.,
and, if necessary, a cross-reference to s. 627.7035, F.S., can be placed ins. 626.9285, F.S., instead.
Lines 33-34, 49-50, 183-187, and 203-213: All of these lines of the bill have some reference to forms
of dispute resolution and judicial proceedings. However, the references are inconsistent and some use
phrases not commonly used to describe alternative dispute resolution methods (e.g. "dispute resolution
proceedings"). It is recommends that concise and consistent phrasing be used throughout the bill to
describe the methods by which property insurance claim disputes may be resolved.
Lines 36-37 and 45: Because surplus lines policies are often issued by alien insurers, who are located
in another country as opposed to another state, the phrase "another state" in these lines may be too
narrow to cover all possible laws that might be applied to claims arising in Florida. Therefore, it may be
advisable to rewrite these portions of the bill such that they prohibit the applicability of all laws other
than the law of Florida.
Lines 47-51 and 203-213: OIR has pointed out that it is unclear why the effective dates in the bill
apply the changes to policies issued January 1, 2021, or later, but specifically do not apply to claims
pending on July 1, 2020. 17 The bill contains no language addressing claims arising or policies issued in
the intervening six months. Additionally, the newly created statutory requirements regarding claims
handling could not apply to policies first issued on or after January 1, 2021, because it is impossible for
claims to exist on such policies as of July 1, 2020.
Lines 128-175: OIR has also pointed out that the language in these lines appears to require that
ordinance or law coverage be included and be considered when determining whether a total loss has
occurred. 18 If this is not the intent of the bill, then the language may need to be clarified as to whether
Lines 154-160 is intended to require that an insurer provide ordinance, rule, or law coverage as
supplemental coverage above policy limits or how it is to be calculated within policy limits. 19
Furthermore, if these lines are meant to be read in conjunction with law and ordinance coverage as set
17
Florida Office of Insurance Regulation, Agency Analysis of2020 House Bill 1357, p. 6 (Jan. 10, 2020).
18
Id. at p. 5.
19 [d.
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DATE: 2/1/2020
forth ins. 627.7011, F.S., the phrasing "ordinance, rule, or law" should be changed to "law and
ordinance" to be consistent with that statute.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h1357.18S.DOCX PAGE: 7
DATE: 2/1/2020
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1357 2020
1 A bill to be entitled
2 An act relating to property insurance; amending s.
3 626.913, F.S.; providing construction of the Surplus
4 Lines Law relating to certain dispute resolution
5 proceedings; creating s. 626.9285, F.S.; prohibiting
6 surplus lines agents from delivering or issuing for
7 delivery property insurance contracts with specified
8 provisions; amending s. 627.70131, F.S.; revising the
9 definition of the term "insurer" to include eligible
10 surplus lines insurers and provision of commercial
11 property insurance; revising the basis for private
12 causes of action; revising the definition of the term
13 "claim" to include any claims under a commercial
14 property insurance; revising applicability; amending
15 s. 627.702, F.S.; defining the terms "insurer" and
16 "total loss"; requiring property insurers' liability
17 to include certain coverages; providing circumstances
18 under which such coverages are payable; creating s.
19 627. 7035, F. S.; defining the term "insurer"; providing
20 requirements for proceeding venues and jurisdiction of
21 courts for specified property insurance policies and
22 contracts; prohibiting such insurance policies and
23 contracts from containing specified conditions,
24 stipulations, and agreements; providing construction;
25 providing applicability; providing an effective date.
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1357 2020
26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Subsection (5) is added to section 626.913,
30 Florida Statutes, to read:
31 626.913 Surplus Lines Law; short title; purposes.-
32 (5) The Surplus Lines Law does not authorize litigation,
33 arbitration, or mediation or any other dispute resolution
34 proceeding for residential or commercial property insurance
35 claim involving real property located in this state to be
36 conducted outside this state or to apply the laws of another
37 state.
38 Section 2. Section 626.9285, Florida Statutes, is created
39 to read:
40 626.9285 Contracts with alternative dispute resolutions or
41 application of laws of another state prohibited.-
42 (1) A surplus lines agent may not deliver or issue for
43 delivery in this state any property insurance contract
44 containing a provision on an arbitration, mediation, or other
45 alternative dispute resolution that occurs outside this state or
46 a provision that applies the laws of another state.
47 (2) This section applies to property insurance contracts
48 issued or renewed on or after January 1, 2021, and does not
49 apply to any claim existing or any action, dispute resolution
50 proceeding, judicial proceeding, or administrative proceeding
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51 pending as of July 1, 2020.
52 Section 3. Section 627.70131, Florida Statutes, is amended
53 to read:
54 627.70131 Insurer's duty to acknowledge communications
55 regarding claims; investigation.-
56 Jl.l-+4+ As used in For purposes of this section, the term
57 "insurer" means an insurer authorized to transact insurance in
58 this state or an eligible surplus lines insurer, as defined in
59 s. 626.914, that provides ttfiY residential or commercial property
60 insurance in this state insurer.
61 (2) (a) (1) (a) Upon an insurer's receiving a communication
62 with respect to a claim, the insurer shall, within 14 calendar
63 days, review and acknowledge receipt of such communication
64 unless payment is made within that period of time or unless the
65 failure to acknowledge is caused by factors beyond the control
66 of the insurer which reasonably prevent such acknowledgment. If
67 the acknowledgment is not in writing, a notification indicating
68 acknowledgment shall be made in the insurer's claim file and
69 dated. A communication made to or by an agent of an insurer with
70 respect to a claim shall constitute communication to or by the
71 insurer.
72 (b) As used in this subsection, the term "agent" means any
73 person to whom an insurer has granted authority or
74 responsibility to receive or make such communications with
75 respect to claims on behalf of the insurer.
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76 (c) This subsection does shall not apply to claimants
77 represented by counsel beyond those communications necessary to
78 provide forms and instructions.
79 Jll~ Such acknowledgment shall be responsive to the
80 communication. If the communication constitutes a notification
81 of a claim, unless the acknowledgment reasonably advises the
82 claimant that the claim appears not to be covered by the
83 insurer, the acknowledgment shall provide necessary claim forms,
84 and instructions, including an appropriate telephone number.
85 J.il-f-3+ Unless otherwise provided by the policy of
86 insurance or by law, within 10 working days after an insurer
87 receives proof of loss statements, the insurer shall begin such
88 investigation as is reasonably necessary unless the failure to
89 begin such investigation is caused by factors beyond the control
90 of the insurer which reasonably prevent the commencement of such
91 investigation.
92 (5) (a) Within 90 days after an insurer receives notice of
93 an initial, reopened, or supplemental property insurance claim
94 from a policyholder, the insurer shall pay or deny such claim or
95 a portion of the claim unless the failure to pay is caused by
96 factors beyond the control of the insurer which reasonably
97 prevent such payment. Any payment of an initial or supplemental
98 claim or portion of such claim made 90 days after the insurer
99 receives notice of the claim, or made more than 15 days after
100 there are no longer factors beyond the control of the insurer
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101 which reasonably prevented such payment, which~ver is later,
102 bears interest at the rate set forth ins. 55.03. Interest
103 begins to accrue from the date the insurer receives notice of
104 the claim. The provisions of this subsection may not be waived,
105 voided, or nullified by the terms of the insurance policy. If
106 there is a right to prejudgment interest, the insured shall
107 select whether to receive prejudgment interest or interest under
108 this subsection. Interest is payable when the claim or portion
109 of the claim is paid. Failure to comply with this subsection
110 constitutes a violation of this code and provides a. Hovvever,
111 failure to coffiply with this subsection does not forffi the sole
112 basis for a private cause of action.
113 (b) Hotvvithstanding subsection (4), For purposes of this
114 subsection, the term "claim" means any of the following:
115 1. A claim under an insurance policy providing residential
116 coverage as defined ins. 627.4025(1);
117 2. A claim for structural or contents coverage under a
118 commercial property insurance policy if the insured structure is
119 10,000 square feet or less; or
120 3. A claim for contents coverage under a commercial tenant
121 policy if the insured premises is 10,000 square feet or less.
122 (c) This subsection does shall not apply to claims under
123 an insurance policy covering nonresidential coffiffiercial
124 structures or contents in more than one state.
125 Section 4. Subsection (1) of section 627.702, Florida
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126 Statutes, is amended to read:
127 627.702 Valued policy law.-
128 (1) (a)-te+ It is the intent of the Legislature that the
129 amendment to this section shall not be applied retroactively and
130 shall apply only to claims filed after the effective date of
131 such amendment.
132 (b) As used in this section, the term:
133 1. "Insurer" means an insurer authorized to transact
134 insurance in this state or an eligible surplus lines insurer, as
135 defined ins. 626.914.
136 2. "Total loss" means a loss in which the damaged property
137 is damaged to the extent that the applicable ordinances, rules,
138 or laws in effect would prohibit or prevent the repair of the
139 property, or for which the cost and expense to repair the
140 damages would exceed the applicable coverage limit of the
141 property insurance policy.
142 J..s:..L (1) (a) In the event of the total loss of any building,
143 structure, mobile home as defined ins. 320.01(2), or
144 manufactured building as defined ins. 553.36(13), located in
145 this state and insured by any insurer as to a covered peril, in
146 the absence of any change increasing the risk without the
147 insurer's consent and in the absence of fraudulent or criminal
148 fault on the part of the insured or one acting in her or his
149 behalf, the insurer's liability under the policy for such total
150 loss, if caused by a covered peril, must shall be in the amount
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151 of money for which such property was so insured as specified in
152 the policy and for which a premium has been charged and paid.
153 (d) The insurer's liability under the policy must include
154 liability for ordinance, rule, and law coverage. The obligation
155 to tender ordinance, rule, or law coverage payments shall be
156 triggered by a showing of the ordinance, rule, or law
157 requirements, and expenses for ordinance, rule, or law
158 requirements need not be incurred to be payable under this
159 paragraph.
160 ~-fa+ The intent of this subsection is not to deprive an
161 insurer of any proper defense under the policy, to create new or
162 additional coverage under the policy, or to require an insurer
163 to pay for a loss caused by a peril other than the covered
164 peril. In furtherance of such legislative intent, when a loss
165 was caused in part by a covered peril and in part by a
166 noncovered peril, paragraph l£L +a+ does not apply. In such
167 circumstances, the insurer's liability under this section shall
168 be limited to the amount of the loss caused by the covered
169 peril. However, if the covered perils alone would have caused
170 the total loss, paragraph (c) applies (a) shall apply. The
171 insurer is never liable for more than the amount necessary to
172 repair, rebuild, or replace the structure following the total
173 loss, after considering all other benefits actually paid for the
174 total loss.
175 Section 5. Section 627.7035, Florida Statutes, is created
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176 to read:
177 627.7035 Proceeding venues and jurisdiction of courts for
178 real property coverage.-
179 (1) As used in this section, the term "insurer" means an
180 insurer authorized to transact insurance in this state or an
181 eligible surplus lines insurer, as defined ins. 626.914.
182 (2) Any litigation, arbitration, or mediation or any other
183 dispute resolution proceeding involving a residential or
184 commercial property insurance policy or contract issued by, or a
185 claim against, an insurer covering real property in this state
186 must be conducted in this state and governed by the laws of this
187 state.
188 (3) A residential or commercial property insurance policy
189 or contract covering real property that is located in this state
190 may not contain any condition, stipulation, or agreement
191 depriving the courts of this state of the jurisdiction of action
192 against the insurer.
193 (4) Any provision of a residential or commercial property
194 insurance policy or contract, including a policy or contract
195 authorized under the Surplus Lines Law, ss. 626.913-626.937,
196 that violates any provision of this section is void. However,
197 such voiding does not affect the validity of other provisions of
198 the policy or contract.
199 (5) This section applies:
200 (a) Only to residential or commercial property insurance
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HB 1357 2020
201 policies or contracts covering real property located in this
202 state.
203 (b) To residential or commercial property insurance
204 policies and contracts issued or renewed on or after January 1,
205 2021, and does not apply to any claim existing or any action,
206 dispute resolution proceeding, judicial proceeding, or
207 administrative proceeding pending as of July 1, 2020.
208 Section 6. The amendments toss. 626.913, 627.70131, and
209 627.702, Florida Statutes, by this act apply to property
210 insurance policies or contracts issued or renewed on or after
211 January 1, 2021, and do not apply to any claim existing or any
212 action, dispute resolution proceeding, judicial proceeding, or
213 administrative proceeding pending as of July 1, 2020.
214 Section 7. This act shall take effect July 1, 2020.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1393 Pub. Rec./Financial Technology Sandbox
SPONSOR(S): Grant, J.
TIED BILLS: HB 1391 IDEN./SIM. BILLS: SB 1872
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Hinshelwoo ooper~
2) Oversight, Transparency & Public Management
Subcommittee
3) State Affairs Committee
SUMMARY ANALYSIS
The Florida Constitution provides every person the right to inspect or copy any public record made or received
in connection with the official business of the legislative, executive, or judicial branches of government.
However, the Legislature may provide by general law for the exemption of records from the constitutional
requirements.
House Bill 1391 (2020), which this bill is linked to, creates the Financial Technology Sandbox within the Office
of Financial Regulation (OFR). The Financial Technology Sandbox is intended to allow financial technology
innovators to test innovative financial products or services in a supervised, flexible regulatory sandbox, using
waivers of specified general law and corresponding rule requirements under defined conditions.
The bill creates public record exemptions for certain records related to the Financial Technology Sandbox.
Specifically, the bill creates public record exemptions for:
• The general law or rule requirements for which a waiver is sought, and the reasons why these
requirements prohibit the innovative financial product or service from being made available to
consumers;
• Specified information that the OFR must consider in deciding whether to approve or deny an application
for the Financial Technology Sandbox;
• Comprehensive records that a sandbox participant must keep relating to the innovative financial
product or service; and
• Any information related to the consultation between the OFR and a sandbox participant regarding the
maximum number of consumers authorized to receive the innovative financial product or service.
The bill provides that this information may be released to appropriate state and federal agencies for the
purposes of investigation.
The bill provides for repeal of the exemptions on October 2, 2025, unless reviewed and saved from repeal
through reenactment by the Legislature. The bill provides a public necessity statement as required by the State
Constitution.
The bill has no fiscal impact on local governments or the private sectors and likely has no fiscal impact on state
government.
This bill will take effect on the same date that HB 1391 or similar legislation takes effect, if such legislation is
adopted in the same legislative session or an extension thereof and becomes a law.
Article I, section 24(c) of the Florida Constitution requires a two-thirds vote of the members present
and voting for final passage of a newly created or expanded public record exemption. The bill creates
new public record exemptions; thus, it requires a two-thirds vote for final passage.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1393.1BS.DOCX
DATE: 1/31/2020
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Public Records
Article I, section 24(a) of the Florida Constitution sets forth the state's public policy regarding access to
government records. This section guarantees every person a right to inspect or copy any public record
of the legislative, executive, and judicial branches of government. The Legislature, however, may
provide by general law for the exemption of records from the requirements of Article I, section 24(a). 1
The general law must state with specificity the public necessity justifying the exemption 2 and must be
no more broad than necessary to accomplish its purpose. 3
Open Government Sunset Review
The Open Government Sunset Review Act4 provides that a public record exemption may be created or
maintained only if it serves an identifiable public purpose. In addition, it may be no more broad than
necessary to meet one of the following purposes:
• Allow the state or its political subdivisions to effectively and efficiently administer a
governmental program, which administration would be significantly impaired without the
exemption.
• Protect sensitive personal information that, if released, would be defamatory or would
jeopardize an individual's safety; however, only the identity of an individual may be exempted
under this provision.
• Protect trade or business secrets. 5
The Act requires the automatic repeal of a public record exemption on October 2nd of the fifth year
after its creation or substantial amendment, unless the Legislature reenacts the exemption. 6
Effect of Proposed Changes
House Bill 1391 (2020), which this bill is linked to, creates the Financial Technology Sandbox within the
Office of Financial Regulation (OFR). The Financial Technology Sandbox is intended to allow financial
technology innovators to test innovative financial products or services in a supervised, flexible
regulatory sandbox, using waivers of specified general law and corresponding rule requirements under
defined conditions.
1
FLA. CONST. art. I, s. 24(c).
2
This portion of a public record exemption is commonly referred to as a "public necessity statement."
3
FLA. CONST. art. I, s. 24(c).
4
S. 119.15, F.S.
5 S. 119.15(6)(b), F.S.
s S. 119.15(3), F.S.
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The bill creates public record exemptions for certain records related to the Financial Technology
Sandbox. Specifically, the bill provides the following records are confidential and exempt7 from public
record requirements:
• The general law or rule requirements for which a waiver is sought, and the reasons why these
requirements prohibit the innovative financial product or service from being made available to
consumers;
• Specified information that the OFR must consider in deciding whether to approve or deny an
application for the Financial Technology Sandbox;
• Comprehensive records that a sandbox participant must keep relating to the innovative financial
product or service; and
• Any information related to the consultation between the OFR and a sandbox participant
regarding the maximum number of consumers authorized to receive the innovative financial
product or service.
The bill provides that this information may be released to appropriate state and federal agencies for the
purposes of investigation.
The bill provides a statement of public necessity as required by the Florida Constitution. It includes the
following legislative findings:
• The disclosure of the proprietary business information relating to the innovative financial
technology products and services could adversely affect the business interests of the financial
technology sandbox applicants.
• Those entities and individuals who would otherwise disclose proprietary business information in
their applications to the Commissioner of Financial Regulation to start a business in this state or
who would maintain records relating to their innovative financial products or services were they
already established here would hesitate to cooperate with the Office of Financial Regulation,
and this lack of cooperation would impair the effective and efficient administration of
governmental functions.
• Disclosure of such information would impair competition in the financial technology industry
because competitors could use the information to impede full and fair competition in the
financial technology industry to the disadvantage of consumers.
• Without the exemption from public records requirements that would protect their proprietary
business information, financial technology innovators might elect to establish their business in
another state with a more secure business environment.
• Any proprietary business information in the Financial Technology Regulatory Sandbox
applications, any records maintained by financial technology innovators relating to their financial
products or services, and any discussions with the commissioner on their financial products or
services must be held confidential and exempt from disclosure.
The public record exemptions are subject to the Open Government Sunset Review Act and will be
repealed on October 2, 2025, unless reviewed and saved from repeal through reenactment by the
Legislature.
B. SECTION DIRECTORY:
Section 1. Amends s. 559.952, F.S., as created in HB 1391, relating to Financial Technology
Sandbox Act.
7
There is a difference between records the Legislature designates exempt from public record requirements and those the Legislature
deems confidential and exempt. A record classified as exempt from public disclosure may be disclosed under certain circumstances.
See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So. 2d 48, 53 (Fla. 5th DCA 2004), review denied 892 So.2d 1015 (Fla. 2004); City of
Riviera Beach v. Barfield, 642 So.2d 1135 (Fla. 4th DCA 1994); Williams v. City of Minneola, 575 So.2d 683,687 (Fla. 5th DCA 1991).
If the Legislature designates a record as confidential and exempt from public disclosure, such record may not be released, by the
custodian of public records, to anyone other than the persons or entities specifically designated in statute. See Op. Att'y Gen. Fla. 85-
62 (1985).
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Section 2. Provides a public necessity statement as required by the Florida Constitution.
Section 3. Provides that the bill will take effect on the same date that HB 1391 or similar legislation
takes effect, if such legislation is adopted in the same legislative session or an extension
thereof and becomes a law.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
The bill could have a minimal fiscal impact on the OFR in handling records that qualify for the
exemptions created by the bill. Staff responsible for complying with public record requirements may
require training related to implementation of the exemptions. The costs, however, could likely be
absorbed, as they are part of the day-to-day responsibilities of an agency.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
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:
Vote Requirement
Article I, section 24(c) of the Florida Constitution requires a two-thirds vote of the members present
and voting for final passage of a newly created public record exemption. The bill creates a new
public record exemption; thus, it requires a two-thirds vote for final passage.
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Public Necessity Statement
Article I, section 24(c) of the Florida Constitution requires a public necessity statement for a newly
created or expanded public record exemption. The bill creates a new public record exemption and
includes a statement supporting the public necessity for these exemptions.
Breadth of Exemption
Article I, section 24(c) of the Florida Constitution requires a newly created public record exemption to
be no broader than necessary to accomplish the stated purpose of the law. The bill creates a public
record exemption for certain records related to the Financial Technology Sandbox. The bill identifies
specific entities to whom the exempt information may be disclosed as necessary. The exemption
should be narrowed to remove the following types of records covered by the exemption: the general
law or rule requirements for which a waiver is sought under the Financial Technology Sandbox.
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill needs to be amended to conform to the proposed committee substitute for HB 1391 and to
narrow the breadth of the exemption, as noted above.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1393 2020
1 A bill to be entitled
2 An act relating to public records; amending s.
3 559.952, F.S.; providing exemptions from public
4 records requirements for certain information made
5 available to the Commissioner of Financial Regulation
6 in Financial Technology Sandbox applications, certain
7 records maintained by specified providers of
8 innovative financial products or services, and
9 information relating to specified discussions;
10 providing for future legislative review and repeal of
11 the exemptions; providing a statement of public
12 necessity; providing a contingent effective date.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Paragraph (h) is added to subsection (5) of
17 section 559.952, Florida Statutes, as created by HB 1391, 2020
18 Regular Session, and paragraph (f) is added to subsection (6) of
19 that section, to read:
20 559.952 Financial Technology Sandbox Act.-
21 (5) FINANCIAL TECHNOLOGY SANDBOX APPLICATION; STANDARDS
22 FOR APPROVAL; CONSUMER PROTECTION BOND.-
23 (h)l. The following information made available to the
24 commissioner in a Financial Technology Sandbox application under
25 this subsection is confidential and exempt from s. 119.07(1) and
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HB 1393 2020
26 s. 24(a), Art. I of the State Constitution:
27 a. The general law or rule requirements for which a waiver
28 is sought, and the reasons why these requirements prohibit the
29 innovative financial product or service from being made
30 available to consumers.
31 b. The information specified in subparagraphs (e)l.-7.
32
33 However, the information in sub-subparagraphs a. and b. may be
34 released to appropriate state and federal agencies for the
35 purposes of investigation.
36 2. This paragraph is subject to the Open Government Sunset
37 Review Act in accordance withs. 119.15 and shall stand repealed
38 on October 2, 2025, unless reviewed and saved from repeal
39 through reenactment by the Legislature.
40 (6) OPERATION OF THE FINANCIAL TECHNOLOGY SANDBOX.-
41 (f)l. The comprehensive records relating to the innovative
42 financial product or service maintained under paragraph (e) and
43 any information relating to the consultation described in
44 paragraph (b) are confidential and exempt from s. 119.07(1) and
45 s. 24(a), Art. I of the State Constitution. However, such
46 records and information may be released to appropriate state and
47 federal agencies for the purposes of investigation.
48 2. This paragraph is subject to the Open Government Sunset
49 Review Act in accordance withs. 119.15 and shall stand repealed
50 on October 2, 2025, unless reviewed and saved from repeal
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HB 1393 2020
51 through reenactment by the Legislature
52 Section 2. The Legislature finds that it is a public
53 necessity that proprietary business information in innovative
54 financial technology sandbox be expressly made confidential and
55 exempt from public records requirements. The disclosure of the
56 proprietary business information relating to the innovative
57 financial technology products and services could adversely
58 affect the business interests of the financial technology
59 sandbox applicants. Those entities and individuals who would
60 otherwise disclose proprietary business information in their
61 applications to the Commissioner of Financial Regulation to
62 start a business in this state or who would maintain records
63 relating to their innovative financial products or services were
64 they already established here would hesitate to cooperate with
65 the Office of Financial Regulation, and this lack of cooperation
66 would impair the effective and efficient administration of
67 governmental functions. Further, disclosure of such information
68 would impair competition in the financial technology industry
69 because competitors could use the information to impede full and
70 fair competition in the financial technology industry to the
71 disadvantage of consumers. Without the exemption from public
72 records requirements that would protect their proprietary
73 business information, financial technology innovators might
74 elect to establish their business in another state with a more
75 secure business environment. Therefore, the Legislature finds
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HB 1393 2020
76 that any proprietary business information in the Financial
77 Technology Regulatory Sandbox applications, any records
78 maintained by financial technology innovators relating to their
79 financial products or services, and any discussions with the
80 commissioner on their financial products or services must be
81 held confidential and exempt from disclosure under s. 119.07(1),
82 Florida Statutes, ands. 24(a), Article I of the State
83 Constitution.
84 Section 3. This act shall take effect on the same date
85 that HB 1391 or similar legislation takes effect, if such
86 legislation is adopted in the same legislative session or an
87 extension thereof and becomes a law.
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INSURANCE & BANKING SUBCOMMITTEE
HB 1393 by Grant
Public Records/Financial Technology Sandbox
AMENDMENT SUMMARY
February 4, 2020
Amendment 1 by Rep. Grant (line 16): The amendment removes the following types of
records covered by the exemption: the statutes or rules waived under the Financial Technology
Sandbox. Such information would, therefore, be subject to disclosure to the public. The
amendment also makes other technical changes to conform to the proposed committee
substitute for HB 1391.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1393 (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: Insurance & Banking
2 Subcommittee
3 Representative Grant, J. offered the following:
4
5 .Amendment (with title amendment)
6 Remove lines 16-80 and insert:
7 Section 1. Paragraph (i) is added to subsection (5) of
8 section 560.214, Florida Statutes, as created by HB 1391, 2020
9 Regular Session, and paragraph (f) is added to subsection (6) of
10 that section, to read:
11 560.214 Financial Technology Sandbox.-
12 (5) FINANCIAL TECHNOLOGY SANDBOX APPLICATION; STANDARDS
13 FOR AP PR OVAL . -
14 (i)l. The following information made available to the
15 office in a Financial Technology Sandbox application under this
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1393 (2020)
Amendment No. 1
16 subsection is confidential and exempt from s. 119.07(1) ands.
17 24(a), Art. I of the State Constitution:
18 a. The reasons why the general law or rule requirements
19 for which a waiver is sought prevent the innovative financial
20 product or service from being made available to consumers.
21 b. The information specified in paragraph (e).
22
23 However, the information in sub-subparagraphs a. and b. may be
24 released to appropriate state and federal agencies for the
25 purposes of investigation.
26 2. This paragraph is subject to the Open Government Sunset
27 Review Act in accordance withs. 119.15 and shall stand repealed
28 on October 2, 2025, unless reviewed and saved from repeal
29 through reenactment by the Legislature.
30 (6) OPERATION OF THE FINANCIAL TECHNOLOGY SANDBOX.-
31 (f)l. The comprehensive records relating to the innovative
32 financial product or service maintained under paragraph (e) and
33 any information relating to the consultation described in
34 paragraph (b) are confidential and exempt from s. 119.07(1) and
35 s. 24(a), Art. I of the State Constitution. However, such
36 records and information may be released to appropriate state and
37 federal agencies for the purposes of investigation.
38 2. This paragraph is subject to the Open Government Sunset
39 Review Act in accordance withs. 119.15 and shall stand repealed
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1393 (2020)
Amendment No. 1
40 on October 2, 2025, unless reviewed and saved from repeal
41 through reenactment by the Legislature
42 Section 2. The Legislature finds that it is a public
43 necessity that proprietary business information in innovative
44 financial technology sandbox be expressly made confidential and
45 exempt from public records requirements. The disclosure of the
46 proprietary business information relating to the innovative
47 financial technology products and services could adversely
48 affect the business interests of the financial technology
49 sandbox applicants. Those entities and individuals who would
50 otherwise disclose proprietary business information in their
51 applications to the Office of Financial Regulation to start a
52 business in this state or who would maintain records relating to
53 their innovative financial products or services were they
54 already established here would hesitate to cooperate with the
55 Office of Financial Regulation, and this lack of cooperation
56 would impair the effective and efficient administration of
57 governmental functions. Further, disclosure of such information
58 would impair competition in the financial technology industry
59 because competitors could use the information to impede full and
60 fair competition in the financial technology industry to the
61 disadvantage of consumers. Without the exemption from public
62 records requirements that would protect their proprietary
63 business information, financial technology innovators might
64 elect to establish their business in another state with a more
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1393 (2020)
Amendment No. 1
65 secure business environment. Therefore, the Legislature finds
66 that any proprietary business information in the Financial
67 Technology Regulatory Sandbox applications, any records
68 maintained by financial technology innovators relating to their
69 financial products or services, and specified discussions with
70 the office on their financial products or services must be
71
72
73 T I T L E A ME N D ME N T
74 Remove lines 3-5 and insert:
75 560.214, F.S.; providing exemptions from public
76 records requirements for certain information made
77 available to the Office of Financial Regulation
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1395 Fees/Financial Technology Sandbox Applications
SPONSOR(S): Sirois
TIED BILLS: HB 1391 IDEN./SIM. BILLS: SB 1874
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee Hinshelwoo
2) Government Operations & Technology
Appropriations Subcommittee
3) State Affairs Committee
SUMMARY ANALYSIS
House Bill 1391 (2020), which this bill is linked to, creates the Financial Technology Sandbox within the Office
of Financial Regulation. The Financial Technology Sandbox is intended to allow financial technology
innovators to test innovative financial products or services in a supervised, flexible regulatory sandbox, using
waivers of specified general law and corresponding rule requirements under defined conditions.
The bill requires payment of an application fee as provided in the license provision being waived for purposes
of the Financial Technology Sandbox. The bill also requires that specified individuals who are involved with the
innovative financial product or service submit live-scan fingerprints in order for the Florida Department of Law
Enforcement to conduct a background check. The costs of fingerprint processing, including the cost of
retaining the fingerprints, will be borne by the person subject to the background check.
This bill has no fiscal impact on state government or local governments and has an indeterminate negative
fiscal impact on the private sector.
This bill will take effect on the same date that HB 1391 or similar legislation takes effect, if such legislation is
adopted in the same legislative session or an extension thereof and becomes a law.
This bill authorizes a new state fee, requiring a two-thirds vote of the membership of the House. See
Section 111.A.2. of the analysis.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1395.IBS.D0CX
DATE: 1/31/2020
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
The Florida Constitution provides that no state tax or fee may be imposed, authorized, or raised by the
Legislature except through legislation approved by two-thirds of the membership of each house of the
Legislature. 1 For purposes of this requirement, a "fee" is any charge or payment required by law,
including any fee or charge for services and fees or costs for licenses and to "raise" a fee or tax means
to: 2
• Increase or authorize an increase in the rate of a state tax or fee imposed on a percentage or
per mill basis;
• Increase or authorize an increase in the amount of a state tax or fee imposed on a flat or fixed
amount basis; or
• Decrease or eliminate a state tax or fee exemption or credit.
A bill that imposes, authorizes, or raises any state fee or tax may only contain the fee or tax
provision(s) and may not contain any other subject. 3
The constitutional provision does not authorize any state tax or fee to be imposed if it is otherwise
prohibited by the constitution and does not apply to any tax or fee authorized or imposed by a county,
municipality, school board, or special district. 4
House Bill 1391 (2020), which this bill is linked to, creates the Financial Technology Sandbox within the
Office of Financial Regulation. The Financial Technology Sandbox is intended to allow financial
technology innovators to test innovative financial products or services in a supervised, flexible
regulatory sandbox, using waivers of specified general law and corresponding rule requirements under
defined conditions.
Effect of Proposed Changes
The bill requires payment of an application fee as provided in the license provision being waived for
purposes of the Financial Technology Sandbox. The bill also requires that specified individuals who are
involved with the innovative financial product or service submit live-scan fingerprints in order for the
Florida Department of Law Enforcement to conduct a background check. The costs of fingerprint
processing, including the cost of retaining the fingerprints, will be borne by the person subject to the
background check.
B. SECTION DIRECTORY:
Section 1: Amends s. 559.952, F.S., as created in HB 1391, relating to Financial Technology
Sandbox Act.
Section 2: Provides that the bill will take effect on the same date that HB 1391 or similar legislation
takes effect, if such legislation is adopted in the same legislative session or an extension
thereof and becomes a law.
1
Fla. Const. art. VII, s. 19(a)-(b). The amendment appeared on the 2018 ballot as Amendment 5.
2
Fla. Const. art. VII, s. 19(d).
3
Fla. Const. art. VII, s. 19(e).
4
Fla. Const. art. VII s. 19(c).
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II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
The bill will have no impact on application fees received by the state because the bill requires an
application fee in the amount that a person would otherwise pay in the course of applying for a
license under the provision being waived for purposes of the Financial Technology Sandbox.
2. Expenditures:
The bill will have no impact on the state for fingerprints and background checks associated with the
Financial Technology Sandbox because the costs of fingerprint processing, including the cost of
retaining the fingerprints, will be borne by the person subject to the background check.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill will have no impact on application fees paid by the private sector because the bill requires an
application fee in the amount that a person would otherwise pay in the course of applying for a license
under the provision being waived for purposes of the Financial Technology Sandbox.
The bill will increase costs on the private sector to the extent that the Financial Technology Sandbox
requires fingerprints and background checks for individuals who otherwise would not be subject to such
under the provision being waived for purposes of the Financial Technology Sandbox.
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:
Article VII, s. 19 of the Florida Constitution requires the imposition, authorization, or raising of a state
tax or fee be contained in a separate bill that contains no other subject and be approved by two-
thirds of the membership of each house of the Legislature. As such, the bill appears to implicate Art.
VII, s. 19 of the Florida Constitution because the bill requires that the costs of fingerprinting be borne
by the person subject to the background check.
B. RULE-MAKING AUTHORITY:
None.
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DATE: 1/31/2020
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill needs to be amended to conform to the proposed committee substitute for HB 1391.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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DATE: 1/31/2020
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1395 2020
1 A bill to be entitled
2 An act relating to fees; amending s. 559.952, F.S.;
3 requiring the Financial Technology Sandbox
4 applications with the Office of Financial Regulation
5 to be accompanied by a fee; requiring the office to
6 deposit such fees into a trust fund; requiring
7 applicants and specified individuals to bear the costs
8 of fingerprint processing for the applications;
9 providing a contingent effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Paragraphs (a) and (d) of section 559.952,
14 Florida Statutes, as created in HB 1391, are amended to read:
15 559.952 Financial Technology Sandbox Act.-
16 (5) FINANCIAL TECHNOLOGY SANDBOX APPLICATION; STANDARDS
17 FOR APPROVAL; CONSUMER PROTECTION BOND.-
18 (a) Before making an innovative financial product or
19 service available to consumers in the Financial Technology
20 Sandbox, a person must file an application with the
21 commissioner. The commissioner shall, by rule, prescribe the
22 form and manner of the application.
23 1. In the application, the person must specify the general
24 law or rule requirements for which a waiver is sought, and the
25 reasons why these requirements prohibit the innovative financial
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hb1395-00
FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1395 2020
26 product or service from being made available to consumers.
27 2. The application must also contain the information
28 specified in subparagraphs (e)l.-7. and must be accompanied by a
29 fee that is equivalent to the statutory fee required in the
30 applicable license provision being waived. The fee shall be
31 deposited into the appropriate trust fund of the office.
32 (d) The applicant must submit fingerprints for each
33 individual filing an application under this section and each
34 individual who is substantially involved in the development,
35 operation, or management of the innovative financial product or
36 service for live-scan processing in accordance with rules
37 adopted by the office.
38 1. The fingerprints may be submitted through a third-party
39 vendor authorized by the Department of Law Enforcement to
40 provide live-scan fingerprinting.
41 2. The Department of Law Enforcement must conduct the
42 state criminal history background check, and a federal criminal
43 history background check must be conducted through the Federal
44 Bureau of Investigation.
45 3. All fingerprints submitted to the Department of Law
46 Enforcement must be submitted electronically and entered into
47 the statewide automated fingerprint identification system
48 established ins. 943.05(2) (b) and available for use in
49 accordance withs. 943.05(2) (g) and (h). The office shall pay an
50 annual fee to the Department of Law Enforcement to participate
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1395 2020
51 in the system and shall inform the Department of Law Enforcement
52 of any person whose fingerprints no longer must be retained.
53 4. The costs of fingerprint processing, including the cost
54 of retaining the fingerprints, shall be borne by the person
55 subject to the background check.
56 5.4.- The office shall review the results of the state and
57 federal criminal history background checks and determine whether
58 the applicant meets the office's requirements.
59 6 . .§.. For purposes of this paragraph, fingerprints are not
60 required to be submitted if the applicant is a publicly traded
61 corporation or is exempted under s. 560.104(1). The term
62 "publicly traded" means a stock is currently traded on a
63 national securities exchange registered with the Securities and
64 Exchange Commission or traded on an exchange in a country other
65 than the United States which is regulated by a regulator
66 equivalent to the Securities and Exchange Commission and the
67 disclosure and reporting requirements of such regulator are
68 substantially similar to those of the Securities and Exchange
69 Commission.
70 Section 2. This act shall take effect on the same date
71 that HB 1391 or similar legislation takes effect, if such
72 legislation is adopted in the same legislative session or an
73 extension thereof and becomes a law.
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hb1395-00
INSURANCE & BANKING SUBCOMMITTEE
HB 1395 by Sirois
Fees/Financial Technology Sandbox Applications
AMENDMENT SUMMARY
February 4, 2020
Amendment 1 by Rep. Grant (line 13): The amendment removes the application fee for the
Financial Technology Sandbox and the fees associated with fingerprinting. Such fees are
already provided for in ch. 560, F.S., related to money services businesses. The companion bill,
HB 1391, permits waiving or modifying certain fees in existing statutes. The amendment states
that the Office of Financial Regulation may not waive or modify fees provided by ch. 560, F.S.,
except as permitted under the Financial Technology Sandbox created by HB 1391.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1395 (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: Insurance & Banking
2 Subcommittee
3 Representative Grant, J. offered the following:
4
5 Amendment (with tit1e amendment)
6 Remove lines 13-69 and insert:
7 Section 1. Subsection (12) of section 560.214, Florida
8 Statutes, as created in HB 1391, is created to read:
9 560.214 Financial Technology Sandbox.-
10 (12) FEES.-The office may not waive or modify fees
11 provided by this chapter except as permitted under this section.
12
13
14 T I T L E A ME N D ME N T
15 Remove lines 2-8 and insert:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 1395 (2020)
Amendment No. 1
16 An act relating to fees; amending s. 560.214, F.S.;
17 prohibiting the Office of Financial Regulation from
18 waiving or modifying fees for the Financial Technology
19 Sandbox except as specified;
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