Meeting Packet - Commerce Committee (February 6, 2020)

Summary

A meeting packet of the Florida House of Representatives Commerce Committee for Thursday, February 6, 2020, 9:00 AM -11:00 AM, at Webster Hall, with Mike La Rosa as Chair. The meeting agenda lists CS/HB 459 Building Design, HB 717 Space Florida Financing, HB 773 Medically Essential Electric Utility Service, CS/HB 813 Protection of Vulnerable Investors and HB 6057 Sports Development Program, among others. A staff analysis of CS/HB 459 states that some local governments have implemented regulations requiring new single- and two-family dwellings to have specific building design elements. The packet ends with the text of HB 6057, whose Section 6 states that the act shall take effect July 1, 2020.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Meeting Packet - Commerce Committee (February 6, 2020).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-02-06-2994-commerce-committee-meeting-packets-fn-com-2-6-20-66591c7f20/, SHA-256 ac352562fb1d0e8b320f247fca92b1bcdc11bbfb10fb4b2ab8ea7bcb6c35f28a.

Full text

Commerce Committee

Thursday, February 6, 2020
9:00 AM -11:00 AM
Webster Hall (212 Knott)

Meeting Packet

Jose Oliva Mike La Rosa
Speaker Chair
The Florida House of Representatives
Commerce Committee

Jose Oliva Mike La Rosa
Speaker Chair
Meeting Agenda

Thursday, February 6, 2020
9:00 am -11:00 am
Webster Hall (212 Knott)

I. Call to Order

II. Roll Call

Ill. Welcome and Opening Remarks

IV. Consideration of the following bill(s):

CS/HB 459 Building Design by Business & Professions Subcommittee, Overdorf

HB 717 Space Florida Financing by Sirois

HB 773 Medically Essential Electric Utility Service by Maggard

CS/HB 813 Protection of Vulnerable Investors by Insurance & Banking
Subcommittee, McClure

HB 1155 Legislative Review of Proposed Regulation of Unregulated Functions by
Hage

HB 6057 Sports Development Program by Avila

V. Closing Remarks

VI. Adjournment

303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: CS/HB 459 Building Design
SPONSOR(S): Business & Professions Subcommittee, Overdorf
TIED BILLS: IDEN./SIM. BILLS: SB 954

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY
CHIEF

1) Business & Professions Subcommittee 13Y,ON,AsCS Brackett Anstead

2) Government Operations & Technology 9Y, 2 N Helpling Topp
Appropriations Subcommittee

3) Commerce Committee Hamon

SUMMARY ANALYSIS
Property development in Florida is governed in part by both the Community Planning Act and the Florida Building
Code. The Community Planning Act governs how local governments create and adopt local comprehensive plans,
implement land development regulations, and issue development orders and permits. Some local governments have
implemented regulations that require new single- and two- family dwellings in the community to have specific
building design elements such as exterior paint color, exterior building material, architectural style of windows and
doors, and location of windows and doors.

The Florida Building Commission (Commission), located within the Department of Business and Professional
Regulation, implements and adopts the Florida Building Code. The Building Code is the statewide building code for
all construction in the state. Every local government must enforce the Building Code and issue building permits.
Local governments may adopt amendments to the Building Code provided they follow the requirements in current
law. Local amendments to the Building Code expire when the newest edition of the Building Code takes effect.

The bill:
• Prohibits local governments from applying land development regulations that require specific building design
elements to single- and two- family dwellings, unless certain conditions are met.
• Provides that local governments may apply land development regulations requiring certain building design
elements to single- and two- family dwellings when:
o The dwelling is a historic property or a contributing property to a historic district;
o The regulations are adopted in order to implement the National Flood Insurance Program; or
o The regulations are adopted in accordance with and in compliance with the procedures for adopting
local amendments to the Florida Building Code.
• Defines the term "building design elements" to mean exterior color, type or style of exterior cladding, style or
material of roof structures or porches, exterior nonstructural architectural ornamentation, location or
architectural styling of windows or doors, and number, type, and layout of rooms.
• Provides that the term "building design elements" does not include a dwelling's height, bulk, orientation,
location on a zoning lot, or the use of buffering or screening to minimize potential adverse physical or visual
impacts or protect the privacy of neighbors.

The bill also allows a substantially affected person to submit a petition to the Commission for a non-binding advisory
opinion on whether a local government regulation is an amendment to the Building Code, and establishes a process
for such.

The Commission may see an increased workload related to establishing a process for accepting petitions from
affected persons and issuing non-binding advisory opinions. However, the workload should be able to be absorbed
within existing resources. There may be decreased costs related to construction for the private sector. See Fiscal
Analysis & Economic Impact Statement.

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

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0459d.COM.D0CX
DATE: 2/2/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation

The Community Planning Act

Adopted in 1985, the Local Government Comprehensive Planning and Land Development Regulation
Act, also known as Florida's Growth Management Act, was significantly revised in 2011, becoming the
Community Planning Act. 1 The Community Planning Act governs how local governments create and
adopt their local comprehensive plans.

It is the intent of the Act that local governments manage growth through comprehensive land use plans
that preserve, promote, protect, and improve the public health, safety, comfort, good order,
appearance, convenience, law enforcement and fire prevention, and general welfare. 2

Local comprehensive plans must include principles, guidelines, standards, and strategies for the orderly
and balanced future land development of the area and reflect community commitments to implement
the plan. Plans also are required to identify procedures for monitoring, evaluating, and appraising
implementation of the plan. 3 Plans may include optional elements, 4 but must include the following nine
elements: 5
• Capital improvements;
• Future land use plan;
• Intergovernmental coordination;
• Conservation;
• Transportation;
• Sanitary sewer, solid waste, drainage, potable water, and aquifer recharge;
• Recreation and open space;
• Housing; and
• Coastal management (for coastal local governments).

The comprehensive plan is implemented via land development regulations. Land development
regulations are ordinances that regulate any aspect of development including any local government
zoning, rezoning, subdivision, building construction, sign regulations, or any regulation that controls the
development of land. 6

Each county and municipality must adopt and enforce land development regulations that are consistent
with and implement their adopted comprehensive plan. 7 All local government land development
regulations must be consistent with the local government's comprehensive plan. 8

1
Ch. 11-139, Laws of Fla.
2
S. 163.3161(4), F.S.
3
S. 163.3177(1), F.S.
4
Id.
5 Ss. 163.3177(3) & (6), F.S.
6
Ss. 163.3164(26) & 163.3202(1), F.S.
7 S. 163.3202(1), F.S.
8
S. 163.3194(l)(b), F.S.
STORAGE NAME: h0459d.C0M.D0CX PAGE: 2
DATE: 2/2/2020
Some local governments in Florida have adopted land development regulations that place restrictions
on the design of new single- and two- family buildings such as the:
• External paint color; 9
• Architectural style of: 10
o Windows;
o Doors, including garage doors;
o Front porches; and
o Roofs.
• Exterior building material; 11 and
• Location of windows and garage doors. 12

Some local governments may be adopting ordinances related to building design elements because the
local government is adopting the principles of "new urbanism." New urbanism is a land development
policy that attempts to solve issues created by urban sprawl, such as traffic jams, ugliness, and lifeless
downtowns, by establishing compact, mixed-use, and pedestrian friendly communities. The principles
of new urbanism can be achieved through creating mixed-use areas with residential areas located
within walking distance of commercial areas located in a town center, creating parks and civic spaces
located near the town center, and building narrow streets with sidewalks and trees to promote
walking. 13

New urbanism also includes creating communities and neighborhoods that have a certain style of
architecture and design and, thus, are more pleasant to live in and walk through. Local governments
can accomplish this by requiring buildings, including single- and two- family buildings, within their
jurisdictions to have specific building design elements. 14

Opponents of the adoption of the building design element ordinances argue that these types of building
design elements increase housing costs. 15 Local governments also argue that the building design
element ordinances prevent poorly designed buildings from lowering the value of surrounding
properties. Prohibiting such ordinances, they say, will prevent them from developing a plan for their own
community. 16

9
Osceola County Land Development Code, § Ch. 3, Article 3.2.2.; Code of the City of Orlando, § Ch. 58, Part 3, Section 58.517;
Orange County Code, § Chapter 38, Article VIII, Division 8.
10
Osceola County Land Development Code, § Ch. 3, Article 3.2.2.; Code of the City of Orlando, § Ch. 58, Part 3, Section 58.517;
City of Winter Park Code of Ordinances,§ Ch. 58, Art. 3, Section 58-67; Orange County Code, § Chapter 38, Article VIII, Division 8.
11
Orange County Code, § Chapter 38, Article VIII, Division 8; City of Winter Park Code of Ordinances, § Ch. 58, Art. 3, Section 58-
67
12
Code of the City of Orlando, § Ch. 58, Part 3, Section 58.517.
13
Doris S. Goldstein, New Urbanism: Recreating Florida by Rewriting the Rules, Florida Bar Journal, April 2006, at 63; Michigan
Land Institute, l O Principles of New Urbanism, http://www.mlui.org/mlui/news-views/articles-from-l 995-to-
20l2.html?archive_id=678#.Xhd62ehKiUk (last visited Jan. 9, 2020); Congress for the New Urbanism, What is New Urbanism?,
https://www.cnu.org/resources/what-new-urbanism (last visited Jan. 9, 2020).
14 Jd
15
Michael Bezruki, Governor Signs Arkansas Housing Affordability Bill Into Law, National Home Association of Home Builders,
March 15, 2019, http://nahbnow.com/2019/03/govemor-signs-arkansas-housing-affordability-bill-into-law/ (last visited Jan. 7, 2020);
Doug Thompson, Restrictions on home building barred in Arkansas, Northwest Arkansas Democrat Gazette, March 17, 2019,
https://www.nwaonline.com/news/20 l 9/mar/17 /restrictions-on-home-building-barred-in/ (last visited Jan. 7, 2020).
16
Daniel Herriges, Building Design Requirements Are Sometimes Bad for Cities. But Abolishing Them All Is Worse, Strong Towns,
April 11, 2019 https://www.strongtowns.org/joumal/2019/4/11/design-standards-are-an-important-tool-for-cities-dont-do-away-with-
them (last visited Jan. 7, 2020); Elaina Sauber, Housing design bill worries Franklin officials, Tennessean, April 18, 2017
https://www.tennessean.com/story/news/local/williamson/2017/04/18/housing-design-bill-worries-franklin-officials/l 00561994/ (last
visited Jan. 8, 2020).
STORAGE NAME: h0459d.C0M.D0CX PAGE: 3
DATE: 2/2/2020
States That Prohibit Local Government Regulations For Building Design Elements

North Carolina and Arkansas prohibit local governments from adopting regulations that require specific
building design elements for single- and two- family dwellings unless certain conditions exist. 17
Tennessee and Georgia considered bills to enact laws similar to North Carolina and Arkansas;
however, the bills did not pass. 18

Passed in 2015, North Carolina's law prohibits cities and counties from adopting regulations that
require "building design elements" for single- and two- family dwellings. The North Carolina law also
prohibits such regulations from being applied to any zoning district, special use district, conditional use
district, or conditional district unless voluntarily consented to by the owners of all the properties subject
to the proposed regulation. 19

The North Carolina law defines "building design elements" to include the: 20
• Exterior building color;
• Type or style of exterior cladding 21 material;
• Style or materials of roof structures or porches;
• Exterior nonstructural architectural ornamentation;
• Location or architectural styling of windows and doors, including garage doors;
• Number and types of rooms; and
• Interior layout of rooms.

The phrase does not include: 22
• A single- and two- family dwelling's:
o Height;
o Bulk;
o Orientation; and
o Location of a structure on a zoning lot.
• The use of buffering or screening to minimize visual impacts or impact of light and noise; and
• Regulations governing permitted uses of land.

The North Carolina law allows cities and counties to adopt and enforce regulations that require "building
design elements" for single- and two- family dwellings if: 23
• The dwelling is located in an area designated as a local historic district;
• The dwelling is located in an area designated as a historic district on the National Register of
Historic Places; 24
• The dwelling is individually designated as a local, state, or national historic landmark;

17 N.C. Gen. Stat.§ 160A-381; Ark. Code Ann.§ 14-17-212 & 14-56-204.
18 Georgia General Assembly, 2019-2020 Regular Session - HB 302, http://www.legis.ga.gov/Legislation/en-

US/display/20192020/HB/302 (last visited Jan. 8, 2020); Tennessee General Assembly, 2017-2018 Session - HB 476
http://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?Bil1Number=HB0476&ga=l 10 (last visited Jan. 8, 2020).
19
N.C. Gen. Stat. § 160A-381; R. Erika Churchill, Staff Attorney for the North Carolina General Assembly, Analysis of S.L. 2015-86,
https://dashboard.ncleg.net/api/Services/BillSummary/2015/S25-SMST-147(sl) (last visited Jan. 3, 2020); General Assembly of North
Carolina, Session Law 2015-86 Senate Bill 25, June 9, 2015 https://www.ncleg.gov/Sessions/2015/Bills/Senate/PDF/S25v3.pdf(last
visited Jan. 3, 2020).
2oN.C. Gen. Stat.§ 160A-381.
21 The Florida Building Code and the North Carolina Building Code both define "cladding" as the material that covers the exterior

surface of a building, and is directly affected by wind load. S. 202 of the Florida Building Code (Residential), Seventh Edition; S. 202
of the 2018 North Carolina Building Code (Residential).
22 Id.
23 Id.
24
The National Register of Historic Places is the federal government's official list of historic places in the United States. The National
Historic Preservation Act of 1966 authorized the register, which is administered by the National Park Service. National Park Service,
What is the National Register of Historic Places, https://www.nps.gov/subjects/nationalregister/what-is-the-national-register.htm (last
visited Jan. 5, 2020).
STORAGE NAME: h0459d.COM.DOCX PAGE: 4
DATE: 2/2/2020
• The regulations are directly and substantially related to the requirements of North Carolina's
Building Code;
• The regulations are applied to manufactured housing in a manner consistent with state and
federal law; and
• The regulations are adopted as a condition for participation in the National Flood Insurance
Program. 25

The prohibition of local regulations that relate to building design elements does not affect the validity or
enforceability of private covenants or other contractual agreements relating to building design elements
between property owners. 26

In 2019, Arkansas passed a similar law that also prohibited cities and counties from adopting
regulations that require "building design elements" for single-family dwellings. The law defines "building
design elements" the same as North Carolina except Arkansas also includes minimum square footage
in its definition. 27

In addition to the exceptions provided in the North Carolina law, Arkansas also allows cities and
counties to adopt and enforce building design elements regulations if:
• The dwelling is in a central business district, which can be created by a city to revitalize its
urban center;
• The dwelling existed and was subject to the local regulation prior to the prohibition being
enacted; or
• The regulations are directly related to an immediate public health or safety hazard and the
regulation is derived from the local government's police power. 28

Arkansas also provides that the prohibition of local regulations that relate to building design elements
does not affect the validity or enforceability of covenants or contracts between a property owner and a
city or county. 29

The Florida Building Code

In 1974, Florida adopted legislation requiring all local governments to adopt and enforce a minimum
building code that would ensure that Florida's minimum standards were met. Local governments could
choose from four separate model codes. The state's role was limited to adopting all or relevant parts of
new editions of the four model codes. Local governments could amend and enforce their local codes,
as they desired. 30

In 1992, Hurricane Andrew demonstrated that Florida's system of local codes did not work. Hurricane
Andrew easily destroyed those structures that were allegedly built according to the strongest code. A
study commission was appointed to review the system of local codes and make recommendations for
modernizing the system. The 1998 Legislature adopted the study commission's recommendations for a
single state building code and enhanced the oversight role of the state over local code enforcement.
The 2000 Legislature authorized implementation of the Florida Building Code (Building Code), and that
first edition replaced all local codes on March 1, 2002. 31 The Building Code is updated triannually. The

25
The National Flood Insurance Program is administered by FEMA. The goal of the program is to reduce the impact of flooding on
private and public structures by providing affordable insurance to property owners, and encouraging communities to adopt and enforce
floodplain management regulations. FEMA, The National Flood Insurance Program, https://www.fema.gov/national-flood-insurance-
program (last visited Jan. 6, 2020).
26 Id.
27
Ark. Code Ann. § 14-17-212 & 14-56-204; H.R. 170, 92nd Leg. Reg. Sess. (AR 2019).
28 Id.
29 Id.
30 The Florida Building Commission Report to the 2006 Legislature, Florida Department of Community Affairs, p. 4, available at

http://www.floridabuilding.org/fbc/publications/2006 Legislature Rpt rev2.pdf(last visited Nov. 11, 2019).
31 Id.
STORAGE NAME: h0459d.COM.D0CX PAGE: 5
DATE: 2/2/2020
current edition of the Building Code is the sixth edition, which is referred to as the 2017 Florida Building
Code. 32

Part IV of ch. 553, F.S., is known as the "Florida Building Codes Act" (Act}, which provides a
mechanism for the uniform adoption, updating, interpretation, and enforcement of a single, unified state
building code that must be applied, administered, and enforced uniformly and consistently from
jurisdiction to jurisdiction. 33 The Building Code is adopted, updated, and interpreted by the Florida
Building Commission, and is enforced by local governments. 34

The main purpose of the Building Code is to regulate new construction or proposed modifications to
existing structures in order to give the occupants the highest level of safety and the least amount of
defects. 35

The Florida Building Commission

The Florida Building Commission (Commission) implements the Building Code. The Commission
reviews several International Codes published by the International Code Council, the National Electric
Code, and other nationally adopted model codes to determine if the Building Code needs to be updated
and adopts an updated Building Code every three years. 36

The Commission, which is housed within the Department of Business and Professional Regulation
(DBPR}, is a 27-member technical body made up of design professionals, contractors, and government
experts in various disciplines covered by the Building Code. 37 The Commission is responsible for the
development, maintenance, and interpretation of the Building Code. Members are appointed by the
Governor and confirmed by the Senate. 38

The Commission has 11 Technical Advisory Committees (TAC) ranging from the building structural
TAC to the swimming pool TAC. 39 TACs are made up of commission members and other parties who
advise the commission on declaratory statements, proposed amendments, and any other areas of
interest of the commission. 40

Local Enforcement of the Florida Building Code

The Legislature has provided local governments with the power to inspect all buildings, structures, and
facilities within their jurisdiction to protect the public's health, safety, and welfare. 41

Every local government must enforce the Building Code and issue building permits. 42 It is unlawful for a
person, firm, or corporation to construct, erect, alter, repair, secure, or demolish any building without
first obtaining a permit from the local government enforcing agency or from such persons as may, by
resolution or regulation, be directed to issue such permit, upon the payment of reasonable fees as set
forth in a schedule of fees adopted by the enforcing agency. 43

32
S. 553.73(7), F.S.; Florida Building Commission Homepage https://floridabuilding.org/c/default.aspx (last visited Nov. 11, 2019).
33
Sees. 553.72(1), F.S.
34
Ss. 553.72, & 553.73, F.S.
35 Florida Building Commission, Advanced Florida Building Code Principals,

http://www.floridabuilding.org/Upload/Courses trp/421-2-MA TERIAL-Adv°/o20FL%20Bldg%20Code%20-
%20Course%20PDF%20version%207 .0.pdf (last visited Jan. 9, 2020).
36
S. 553.73, F.S.
37
S. 553.74, F.S.
38
Ss. 553.73, & 553.74, F.S.
39
DBPR, Florida Building Code Online, https://www.floridabuilding.org/c/c commission.aspx (last visited Dec. 27, 2019).
40 S. 553.73(3), F.S.; Rule 61020-2.001, F.A.C.
41
S. 553.72, F.S.
42
Ss. 125.0l(l)(bb), 125.56(1), & 553.80(1), F.S.
43
See Ss. 125.56(4)(a) & 553.79(1), F.S.
STORAGE NAME: h0459d.COM.DOCX PAGE: 6
DATE: 2/2/2020
A building permit is an official document or certificate issued by the local building official that authorizes
performance of a specific activity. 44 A building official is a local government employee or a person
contracted by a local government who supervises Building Code activities, including plan review,
enforcement, and inspection to ensure work complies with the Building Code. 45

Amendments to the Building Code

The Commission and local governments may adopt technical and administrative amendments to the
Building Code. A technical amendment to the Building Code is an alteration to the prescriptive
requirements or reference standards for construction. An administrative amendment is an addition or
alteration of the code enforcement requirements of the Building Code. 46

Local governments may adopt amendments to the Building Code that are more stringent than the
Building Code that are limited to the local government's jurisdiction. Amendments by local governments
expire upon the adoption of the newest edition of the Building Code, and, thus, the local government
would need to go through the amendment process every three years in order to maintain a local
amendment to the Building Code. 47

Current law allows local governments to adopt technical amendments to the Building Code every six
months if: 48
• The local government's governing body holds a public hearing to discuss the amendment,
which has been advertised in a newspaper of general circulation at least 1O days before the
meeting;
• Following the hearing, the governing body determines that an amendment is needed to address
a local need that is not addressed by the Building Code;
• The amendment is no more stringent than necessary to address the local need;
• The local amendment is not discriminatory against materials, products, or construction
techniques of demonstrated capabilities;
• The local amendment does not introduce a new subject that is not addressed by the Building
Code;
• The local amendment includes a fiscal impact statement, which documents the costs and
benefits of the amendment including the impact to local government, property and building
owners, industry, and the cost of compliance; and
• The local government sends the amendment to the Commission.

A technical amendment adopted by a local government takes effect 30 days after the Commission
receives the amendment and publishes the amendment on its website. 49

The Commission may review local amendments and issue nonbinding recommendations to local
governments about whether the local government complied with the requirements to adopt an
amendment. If the Commission decides to review a local amendment it must send the amendment to
the applicable TAC for review. 50

The TAC must make a recommendation to the Commission about whether the local amendment
complies with the requirements of current law. The Commission must provide the nonbinding
recommendation to the local government within 30 days of adopting the recommendation. 51

44
S. 202 of the Building Code (Building), Sixth Edition.
45
S. 468.603(2), F.S.
46 S. 553.73, F.S.; Rule 61G20-2.002, F.A.C.
47
S. 553.73(4), F.S.
48 Id.
49
553.73(4), F.S.; Rule-61G20-2.003, F.A.C.
5o Id.
51 Id.
STORAGE NAME: h0459d.COM.DOCX PAGE: 7
DATE: 2/2/2020
Each county and municipality that adopts technical amendments to the Building Code must establish a
countywide compliance review board by interlocal agreement. The compliance review board reviews
any amendment adopted by a local government in its county that is challenged by a substantially
affected party in order to determine if the amendment has been adopted in accordance with the
requirements of current law. 52

A local government or the substantially affected party may appeal the compliance review board's
decision to the Commission within 14 days of the board's decision. The Commission must refer the
appeal to the Division of Administrative Hearings for a hearing by an administrative law judge. The
administrative law judge must hold a hearing within 30 days of being assigned the appeal, and must
enter a recommended order within 30 days of the conclusion of the hearing. 53

The Commission must enter a final order within 30 days after the administrative law judge issues a
recommended order. In proceedings before a compliance review board or the Commission, the local
government has the burden to prove an amendment has been adopted in accordance with the
requirements of current law. 54

Interpretations of the Building Code

The Commission may issue declaratory statements regarding interpretations of the Florida Building
Code, review local building officials' interpretation of the Building Code, and give binding interpretations
of the Building Code. 55

A substantially affected person, state agency, or a local government may petition the Commission in
writing for a declaratory statement relating to interpretations of the Building Code, or the enforcement or
administration of the Building Code by local governments. The Commission must issue a declaratory
statement or deny a petition within 90 days of receiving the petition. Declaratory statements are binding
upon all jurisdictions and are subject to judicial review by a district court of appeal. 56

A substantially affected person may also petition the Commission to review a local building official's
interpretation of the Building Code. A substantially affected person includes an owner or builder subject
to a decision of the local building official or an association of owners or builders having members who
are subject to a decision of the local building official. 57

A substantially affected person may petition the Commission to review a local building official's
interpretation of the Building Code if: 58
• The substantially affected person has appealed the building official's interpretation to the local
board of appeals, if such board exists;
• The substantially affected person files a written petition to the Commission on a form adopted
by the Commission which contains:
o The name and address of the local government and the local building official;
o The name, address, and phone number of the substantially affected person, and
explanation of how they are substantially affected by the building official's interpretation;
o A statement of the provisions of the Building Code that are being interpreted, the
building official's interpretation of those sections, and the substantially affected person's
interpretation of those sections; and
o The local building official's response.

52
S. 553.73(4), F.S.
53 Id.
54 Id.
55
S. 553.775, F.S.
56 Ss. 553.775(3), 120.565, &120.68, F.S.
57
S. 553.775(3), F.S.
5s Id.
STORAGE NAME: h0459d.COM.D0CX PAGE: 8
DATE: 2/2/2020
• The substantially affected person has given the petition to the local building official and at least
five days for the building official to respond.

Upon receiving a written petition to review a local building official's interpretation of the Building Code,
the Commission must provide copies to a panel, and publish the petition and the local building official's
response on the Commission's website and allow for comments to be posted by interested parties. The
panel must have seven members made up of five building officials, an architect, and an engineer. The
Commission must coordinate with the Building Officials Association of Florida 59 to designate the
panel. 60

The panel must conduct proceedings necessary to issue a determination, and consider the written
petition, the local building official's response, and any comments posted on the Commission's website.
The panel must issue a determination within 21 days of the petition being filed with the Commission.
The determination is binding upon all parties and all jurisdictions in Florida. 61 The determination must
be published on the Commission's website and the Florida Administrative Register. 62

A party may appeal the panel's determination by filing an appeal with the Commission within 30 days of
the panel's determination. The Commission must conduct a hearing in accordance with the
Administrative Procedure Act. The burden of proof in the hearing is on the party appealing the panel's
determination. The Commission's ruling is subject to judicial review by a district court of appeal. 63

Effect of the Bill

Community Planning Act - Effect of the Bill

The bill prohibits local governments from applying land development regulations that relate to building
design elements to single- or two- family dwellings.

The bill defines the term "building design elements" to mean:
• Exterior building color;
• Type or style of exterior cladding material;
• Style or material of roof structures or porches;
• Exterior nonstructural architectural ornamentation;
• Location or architectural styling of windows or doors, including garage doors;
• Number and type of rooms; and
• Interior layout of rooms.

The term does not include:
• A single- and two- family dwelling's:
o Height;
o Bulk;
o Orientation;
o Location on a zoning lot; or

59
The Building Officials Association of Florida is the largest community of building officials, building inspectors, plans examiners,
and building code compliance professionals in the state. Its goal is to ensure the health, safety, and welfare of the public through safe
building practices by equipping building professions through education, advocacy, leadership, and code development. Building
Officials Association of Florida, About BOAF, https://boaf.net/page/About (last visited Jan. 8, 2020).
60 Id
61 fd
62
Id; The Florida Administrative Register is a daily publication which gives the public current information about the status of
proposed rules, notice of agency public meetings, workshops and hearings, and anything else required by law. Florida Administrative
Code & Florida Administrative Register, FL Rules FAQ, https://www.flrules.org/Help/newHelp.asp#FA W (last visited Jan. 15, 2020).
63
Ss. 553.775(3), & 120.68, F.S.
STORAGE NAME: h0459d.C0M.D0CX PAGE: 9
DATE: 2/2/2020
• The use of buffering or screening to minimize potential adverse physical or visual impacts or
protect the privacy of neighbors.

The bill allows local governments to apply regulations that require "building design elements" to single-
and two- family dwellings if:
• The dwelling is listed in the National Register of Historic Places;
• The dwelling is a contributing property to a historic district in the National Register of Historic
Places;
• The dwelling is listed as a historic property or a contributing property to a historic district by a
local preservation ordinance;
• The regulations are adopted in order to implement the National Flood Insurance Program; or
• The regulations are adopted in accordance and compliance with adopting local amendments to
the Florida Building Code.

The bill also provides that the prohibition of zoning and development regulations that relate to building
design elements does not affect the validity or enforceability of private covenants or other contractual
agreements relating to building design elements.

Florida Building Commission - Effect of the Bill

The bill provides that a substantially affected person may petition the Commission for a non-binding
advisory opinion for any local government regulation, law, ordinance, policy, amendment, or land use or
zoning provision (regulation) that the person believes is a technical amendment to the Building Code
and was not adopted in accordance with the process for adopting local amendments to the Building
Code.

A "local government" means a county, municipality, special district, or political subdivision of the state.

A "substantially affected person" includes an owner or builder subject to the local government's
regulation or an association of owners or builders who have members who are subject to the
regulation.

The Commission must issue a non-binding advisory opinion stating whether a local government
regulation is a technical amendment to the Building Code if:
• A substantially affected person files a petition with the Commission, in accordance with the
Commission's directions for filing the petition, and on a form adopted by the Commission which
contains at a minimum:
o The name of the local government that enacted the regulation;
o The name and address of the local government's general counsel;
o The name, address, and phone number of the substantially affected person;
o An explanation of how the person is substantially affected by the local government's
regulation; and
o A statement of why the regulation is a technical amendment to the Building Code, and
which provisions of the Building Code are amended by the regulation, if any.
• The substantially affected person has given the petition to the local government's general
counsel or administrator by certified mail, return receipt requested. The local government may
respond within 14 days by certified mail, return receipt requested.

Upon receiving a petition to review a local government's regulation, the Commission must publish the
petition and the local government's response on the Commission's website and allow for comments to
be posted by interested parties. The Commission may provide the petition, the local government's
response, and any comments posted by interested parties to a TAC for review and a recommendation.

STORAGE NAME: h0459d.C0M.D0CX PAGE: 10
DATE: 2/2/2020
The Commission must consider the petition, the local government's response, any comments posted
on the Commission's website, and any recommendation provided by a TAC. The Commission must
issue a non-binding advisory opinion stating whether the local government's regulation is a technical
amendment to the Building Code within 30 days of receiving the petition. The Commission must also
publish the non-binding advisory opinion on its website and the Florida Administrative Register.

B. SECTION DIRECTORY:
Section 1. Amending s. 163.3202, F.S., prohibiting local governments from enacting certain
regulations for certain residential buildings.

Section 2. Amending s. 553.73, F.S., allowing the Florida Building Commission to review local
government regulations and issue advisory opinions in certain situations.

Section 3. Amending s. 125.01, F.S., amending cross-references.

Section 4. Amending s. 125.56, F.S., amending cross-references.

Section 5. Providing an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
The Commission may see an increased workload related to establishing a process for accepting
petitions from affected persons and issuing non-binding advisory opinions. However, the workload
should be able to be absorbed within existing resources.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
Indeterminate. Local governments may have additional expenditures because of an increase in
legal challenges to zoning and other regulations.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate. However, prohibiting certain building design elements ordinances and other regulations
may lead to a decrease in the cost of construction.

D. FISCAL COMMENTS:
None.

STORAGE NAME: h0459d.COM.DOCX PAGE: 11
DATE: 2/2/2020
Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

B. RULE-MAKING AUTHORITY:
The bill requires the Commission to adopt the form for the petition to request a non-binding advisory
opinion, and the directions for filing the form. It appears that sufficient rulemaking authority exists in s.
553.76(4), F.S.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On January 15, 2020, the Business & Professions Subcommittee adopted a strike-all amendment and
reported the bill favorably as a committee substitute. The committee substitute:
• Clarifies the exception that allows local governments to apply building design element regulations to
single- and two-family residences when the regulations are adopted in accordance with and in
compliance with the process for adopting local amendments to the Florida Building Code.
• Removes the provision that grants the Florida Building Commission the ability to void a local
government regulation if the Commission determines the regulation is an amendment to the
Building Code.
• Provides that a substantially affected person may submit a request to the Florida Building
Commission for a non-binding advisory opinion on whether a local regulation is an amendment to
the Building Code, and establishes a process for such.
• Defines "substantially affected person."

The staff analysis is drafted to the committee substitute as passed by the Business & Professions
Subcommittee.

STORAGE NAME: h0459d.C0M.D0CX PAGE: 12
DATE: 2/2/2020
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

CS/HB 459 2020

1 A bill to be entitled
2 An act relating to building design; amending s.
3 163.3202, F.S.; providing that certain regulations
4 relating to building design elements may not be
5 applied to certain structures; providing exceptions;
6 defining the term "building design elements";
7 providing applicability; amending s. 553.73, F.S.;
8 authorizing a substantially affected person to file a
9 petition with the Florida Building Commission to
10 review certain local government regulations, laws,
11 ordinances, policies, amendments, or land use or
12 zoning provisions; defining the term "local
13 government"; providing requirements for the petition
14 and commission; requiring the commission to issue a
15 nonbinding advisory opinion within a specified
16 timeframe; making technical changes; amending ss.
17 125.01 and 125.56, F.S.; conforming cross-references
18 to changes made by the act; making technical changes;
19 providing an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Subsection (5) of section 163.3202, Florida
24 Statutes, is renumbered as subsection (6), and a new subsection
25 (5) is added to that section to read:

Page 1 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 459 2020

26 163.3202 Land development regulations.-
27 (5) (a) Land development regulations relating to building
28 design elements may not be applied to a single- or two-family
29 dwelling unless:
30 1. The dwelling is listed in the National Register of
31 Historic Places, as defined ins. 267.021; or is a contributing
32 property to a National Register Historic District; or is
33 designated as a historic property or a contributing property to
34 a historic district, under the terms of a local preservation
35 ordinance.
36 2. The regulations are adopted in order to implement the
37 National Flood Insurance Program.
38 3. The regulations are adopted pursuant to and in
39 compliance with chapter 553.
40 (b) For purposes of this subsection, the term "building
41 design elements" means the external building color; type or
42 style of exterior cladding material; style or material of roof
43 structures or porches; exterior nonstructural architectural
44 ornamentation; location or architectural styling of windows or
45 doors, including garage doors; number and type of rooms; and
46 interior layout of rooms. The term does not include the height,
47 bulk, orientation, or location of a structure on a zoning lot;
48 or the use of buffering or screening to minimize potential
49 adverse physical or visual impacts or protect the privacy of
50 neighbors.

Page 2 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 459 2020

51 (c) This subsection does not affect the validity or
52 enforceability of private covenants or other contractual
53 agreements relating to building design elements.
54 Section 2. Subsection (4) of section 553.73, Florida
55 Statutes, is amended to read:
56 553.73 Florida Building Code.-
57 (4) (a) All entities authorized to enforce the Florida
58 Building Code under pursuant to s. 553.80 shall comply with
59 applicable standards for issuance of mandatory certificates of
60 occupancy, minimum types of inspections, and procedures for
61 plans review and inspections as established by the commission by
62 rule. Local governments may adopt amendments to the
63 administrative provisions of the Florida Building Code, subject
64 to the limitations in 6--:f this subsection paragraph. Local
65 amendments must shall be more stringent than the minimum
66 standards described in this section herein and must shall be
67 transmitted to the commission within 30 days after enactment.
68 The local government shall make such amendments available to the
69 general public in a usable format. The State Fire Marshal is
70 responsible for establishing the standards and procedures
71 required in this subsection paragraph for governmental entities
72 with respect to applying the Florida Fire Prevention Code and
73 the Life Safety Code.
74 (b) Local governments may, subject to the limitations in
75 6--:f this section and not more than once every 6 months, adopt

Page 3 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

CS/HB 459 2020

76 amendments to the technical provisions of the Florida Building
77 Code that which apply solely within the jurisdiction of such
78 government and that which provide for more stringent
79 requirements than those specified in the Florida Building Code 7
80 not more than once every 6 months. A local government may adopt
81 technical amendments that address local needs if:
82 1. The local governing body determines, following a public
83 hearing which has been advertised in a newspaper of general
84 circulation at least 10 days before the hearing, that there is a
85 need to strengthen the requirements of the Florida Building
86 Code. The determination must be based upon a review of local
87 conditions by the local governing body, which review
88 demonstrates by evidence or data that the geographical
89 jurisdiction governed by the local governing body exhibits a
90 local need to strengthen the Florida Building Code beyond the
91 needs or regional variation addressed by the Florida Building
92 Code, that the local need is addressed by the proposed local
93 amendment, and that the amendment is no more stringent than
94 necessary to address the local need.
95 2. Such additional requirements are not discriminatory
96 against materials, products, or construction techniques of
97 demonstrated capabilities.
98 3. Such additional requirements do may not introduce a new
99 subject not addressed in the Florida Building Code.
100 ~4-:- The enforcing agency shall make readily available,

Page 4 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 459 2020

101 in a usable format, all amendments adopted under pursuant to
102 this section.
103 J.s!L.§-. Any amendment to the Florida Building Code shall be
104 transmitted within 30 days after adoption by the adopting local
105 government to the commission. The commission shall maintain
106 copies of all such amendments in a format that is usable and
107 obtainable by the public. Local technical amendments are shall
108 not become effective until 30 days after the amendment has been
109 received and published by the commission.
110 ~-6-. An Any- amendment to the Florida Building Code
111 adopted by a local government under pursuant to this subsection
112 is paragraph shall be effective only until the adoption by the
113 commission of the new edition of the Florida Building Code by
114 the commission every third year. At such time, the commission
115 shall review such amendment for consistency with the criteria in
116 paragraph (9) (a) and adopt such amendment as part of the Florida
117 Building Code or rescind the amendment. The commission shall
118 immediately notify the respective local government of the
119 rescission of any amendment. After receiving such notice, the
120 respective local government may readopt the rescinded amendment
121 under pursuant to the provisions of this subsection paragraph.
122 jJJ__+-. Each county and municipality desiring to make local
123 technical amendments to the Florida Building Code shall a-y
124 interlocal agreement establish by interlocal agreement a
125 countywide compliance review board to review any amendment to

Page 5 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 459 2020

126 the Florida Building Code that is 7 adopted by a local government
127 within the county under pursuant to this subsection and
128 paragraph, that is challenged by~ ttfiY substantially affected
129 party for purposes of determining the amendment's compliance
130 with this subsection paragraph. If challenged, the local
131 technical amendments are shall not become effective until the
132 time for filing an appeal under paragraph (g) pursuant to
133 subparagraph 8. has expired or, if there is an appeal, until the
134 commission issues its final order determining if the adopted
135 amendment is in compliance with this subsection.
136 J!ll-8-. If the compliance review board determines such
137 amendment is not in compliance with this subsection paragraph,
138 the compliance review board shall notify such local government
139 of the noncompliance and that the amendment is invalid and
140 unenforceable until the local government corrects the amendment
141 to bring it into compliance. The local government may appeal the
142 decision of the compliance review board to the commission. If
143 the compliance review board determines that such amendment is .:t:--e
144 be in compliance with this subsection paragraph, any
145 substantially affected party may appeal such determination to
146 the commission. Any such appeal must shall be filed with the
147 commission within 14 days after €4 the board's written
148 determination. The commission shall promptly refer the appeal to
149 the Division of Administrative Hearings by electronic means
150 through the division's website for the assignment of an

Page 6 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 459 2020

151 administrative law judge. The administrative law judge shall
152 conduct the required hearing within 30 days after being assigned
153 to the appeal, and shall enter a recommended order within 30
154 days after e--€, the conclusion of such hearing. The commission
155 shall enter a final order within 30 days after an order is
156 rendered thereafter. The provisions of Chapter 120 and the
157 uniform rules of procedure shall apply to such proceedings. The
158 local government adopting the amendment that is subject to
159 challenge has the burden of proving that the amendment complies
160 with this subsection paragraph in proceedings before the
161 compliance review board and the commission, as applicable.
162 Actions of the commission are subject to judicial review under
163 pursuant to s. 120.68. The compliance review board shall
164 determine whether its decisions apply to a respective local
165 jurisdiction or apply countywide.
166 J.bl-9--:- An amendment adopted under this subsection paragraph
167 shall include a fiscal impact statement that which documents the
168 costs and benefits of the proposed amendment. Criteria for the
169 fiscal impact statement shall include the impact to local
170 government relative to enforcement and7 the impact to property
171 and building owners and, as well as to industry7 relative to the
172 cost of compliance. The fiscal impact statement may not be used
173 as a basis for challenging the amendment for compliance.
174 JJ:l-±-9--. In addition to paragraphs (f) and (g) subparagraphs
175 7. and 9., the commission may review any amendments adopted

Page 7 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 459 2020

176 under pursuant to this subsection and make nonbinding
177 recommendations related to compliance of such amendments with
178 this subsection.
179 JjJ_-f-e+ Any amendment adopted by a local enforcing agency
180 under pursuant to this subsection may shall not apply to state
181 or school district owned buildings, manufactured buildings or
182 factory-built school buildings approved by the commission, or
183 prototype buildings approved under pursuant to s. 553.77(3). The
184 respective responsible entities shall consider the physical
185 performance parameters substantiating such amendments when
186 designing, specifying, and constructing such exempt buildings.
187 ~-ta+- A technical amendment to the Florida Building Code
188 related to water conservation practices or design criteria
189 adopted by a local government under pursuant to this subsection
190 is not rendered void when the code is updated if the technical
191 amendment is necessary to protect or provide for more efficient
192 use of water resources as provided ins. 373.621. However, any
193 such technical amendment carried forward into the next edition
194 of the code under pursuant to this subsection paragraph is
195 subject to review or modification as provided in this part.
196 (1) If a local government adopts a regulation, law,
197 ordinance, policy, amendment, or land use or zoning provision
198 without using the process established in this subsection, and a
199 substantially affected person considers such regulation, law,
200 ordinance, policy, amendment, or land use or zoning provision to

Page 8 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 459 2020

201 be a technical amendment to the Florida Building Code, then the
202 substantially affected person may submit to the commission a
203 petition for a nonbinding advisory opinion. If a substantially
204 affected person submits a request in accordance with this
205 paragraph, the commission shall issue a nonbinding advisory
206 opinion stating whether or not the commission interprets the
207 regulation, law, ordinance, policy, amendment, or land use or
208 zoning provision as a technical amendment to the Florida
209 Building Code. As used in this paragraph, the term "local
210 government" means a county, municipality, special district, or
211 political subdivision of the state.
212 1. Requests to review a local government regulation, law,
213 ordinance, policy, amendment, or land use or zoning provision
214 may be initiated by any substantially affected person. A
215 substantially affected person includes an owner or builder
216 subject to the regulation, law, ordinance, policy, amendment, or
217 land use or zoning provision, or an association of owners or
218 builders having members who are subject to the regulation, law,
219 ordinance, policy, amendment, or land use or zoning provision.
220 2. In order to initiate a review, a substantially affected
221 person must file a petition with the commission. The commission
222 shall adopt a form for the petition and directions for filing,
223 which shall be published on the Building Code Information
224 System. The form shall, at a minimum, require the following:
225 a. The name of the local government that enacted the

Page 9 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 459 2020

226 regulation, law, ordinance, policy, amendment, or land use or
227 zoning provision.
228 b. The name and address of the local government's general
229 counsel or administrator.
230 c. The name, address, and telephone number of the
231 petitioner; the name, address, and telephone number of the
232 petitioner's representative, if any; and an explanation of how
233 the petitioner's substantial interests are being affected by the
234 regulation, law, ordinance, policy, amendment, or land use or
235 zoning provision.
236 d. A statement explaining why the regulation, law,
237 ordinance, policy, amendment, or land use or zoning provision is
238 a technical amendment to the Florida Building Code, and which
239 provisions of the Florida Building Code, if any, are being
240 amended by the regulation, law, ordinance, policy, amendment, or
241 land use or zoning provision.
242 3. The petitioner shall serve the petition on the local
243 government's general counsel or administrator by certified mail,
244 return receipt requested, and send a copy of the petition to the
245 commission, in accordance with the commission's published
246 directions. The local government shall respond to the petition
247 in accordance with the form by certified mail, return receipt
248 requested, within 14 days after receipt of the petition,
249 including Saturdays, Sundays, and legal holidays.
250 4. Upon receipt of a petition that meets the requirements

Page 10 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

CS/HB 459 2020

251 of this paragraph, the commission shall publish the petition,
252 including any response submitted by the local government, on the
253 Building Code Information System in a manner that allows
254 interested persons to address the issues by posting comments.
255 5. Before issuing an advisory opinion, the commission
256 shall consider the petition, the response, and any comments
257 posted on the Building Code Information System. The commission
258 may also provide the petition, the response, and any comments
259 posted on the Building Code Information System to a technical
260 advisory committee, and may consider any recommendation provided
261 by the technical advisory committee. The commission shall issue
262 an advisory opinion stating whether the regulation, law,
263 ordinance, policy, amendment, or land use or zoning provision is
264 a technical amendment to the Florida Building Code within 30
265 days after the filing of the petition, including Saturdays,
266 Sundays, and legal holidays. The commission shall publish its
267 advisory opinion on the Building Code Information System and in
268 the Florida Administrative Register. The commission's advisory
269 opinion is nonbinding and is not a declaratory statement under
270 s. 120.565.
271 Section 3. Paragraph (bb) of subsection (1) of section
272 125.01, Florida Statutes, is amended to read:
273 125.01 Powers and duties.-
274 (1) The legislative and governing body of a county shall
275 have the power to carry on county government. To the extent not

Page 11 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 459 2020

276 inconsistent with general or special law, this power includes,
277 but is not restricted to, the power to:
278 (bb) Enforce the Florida Building Code 7 as provided ins.
279 553.80 7 and adopt and enforce local technical amendments to the
280 Florida Building Code as provided ins. 553.73(4), pursuant to
281 s. 553.73 (4) (b) and (c).
282 Section 4. Subsection (1) of section 125.56, Florida
283 Statutes, is amended to read:
284 125.56 Enforcement and amendment of the Florida Building
285 Code and the Florida Fire Prevention Code; inspection fees;
286 inspectors; etc.-
287 (1) The board of county commissioners of each of the
288 several counties of the state may enforce the Florida Building
289 Code and the Florida Fire Prevention Code 7 as provided in ss.
290 553.80, 633.206, and 633.208 7 and, at its discretion, adopt
291 local technical amendments to the Florida Building Code as
292 provided ins. 553.73(4), pursuant to s. 553.73(4) (b) and (c)
293 and local technical amendments to the Florida Fire Prevention
294 Code as provided in, pursuant to s. 633.202 7 to provide for the
295 safe construction, erection, alteration, repair, securing, and
296 demolition of any building within its territory outside the
297 corporate limits of any municipality. Upon a determination to
298 consider amending the Florida Building Code or the Florida Fire
299 Prevention Code by a majority of the members of the board of
300 county commissioners of such county, the board shall call a

Page 12 of 13

CODING: Words stricken are deletions; words underlined are additions.
hb0459-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 459 2020

301 public hearing and comply with the public notice requirements of
302 s. 125.66(2). The board shall hear all interested parties at the
303 public hearing and may then amend the building code or the fire
304 code consistent with the terms and purposes of this act. Upon
305 adoption, an amendment to the code shall be in full force and
306 effect throughout the unincorporated area of such county until
307 otherwise notified by the Florida Building Commission under
308 pursuant to s. 553.73 or the State Fire Marshal under pursuant
309 -t-e s. 633.202. This subsection does not Nothing herein contained
310 shall be construed to prevent the board of county commissioners
311 from repealing such amendment to the building code or the fire
312 code at any regular meeting of such board.
313 Section 5. This act shall take effect July 1, 2020.

Page 13 of 13

CODING: Words strioken are deletions; words underlined are additions.
hb0459-01-c1
COMMERCE COMMITTEE

HB 459 by Rep. Overdorf
Building Design

AMENDMENT SUMMARY
February 6, 2020

Amendment 1 by Rep. Overdorf (line 30):
The amendment:
• Provides that local governments may apply building design elements to single- and two-
family dwellings located in historic districts instead of only dwellings that contribute to
historic districts.
• Provides that local governments may apply building design elements to single- and two-
family dwellings located in community redevelopment areas.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 459 (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: Commerce Committee
2 Representative Overdorf offered the following:
3 .Amendment
4 Remove lines 30-39 and insert:
5 1. The dwelling is listed in the National Register of
6 Historic Places, as defined ins. 267.021; or is located in a
7 National Register Historic District; or is designated as a
8 historic property or located in a historic district, under the
9 terms of a local preservation ordinance.
10 2. The regulations are adopted in order to implement the
11 National Flood Insurance Program.
12 3. The regulations are adopted pursuant to and in
13 compliance with chapter 553.
14 4. The dwelling is located in a community redevelopment
15 area, as defined ins. 163.340(10).

519577 - h459-line 30.docx
Published On: 2/5/2020 5:27:14 PM
Page 1 of 1
:::c
OJ

-
......
......
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 717 Space Florida Financing
SPONSOR(S): Sirois
TIED BILLS: IDEN./SIM. BILLS: SB 1070

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Workforce Development & Tourism 14 Y, 0 N Willson Barry
Subcommittee

2) Ways & Means Committee 15 Y, 0 N Aldridge Langston

3) Commerce Committee Willson ,Al\_ \iv'' Hamon

SUMMARY ANALYSIS
Established by the Legislature in 2006, Space Florida was created to promote aerospace business
development by facilitating business and infrastructure financing, spaceport operations, research and
development, workforce development and innovative education programs, Space Florida is an independent
special district which covers the entire state.

Current law authorizes Space Florida to issue bonds and other obligations to pay for projects, facilities,
services, and other activities, including the retirement or refunding of existing bonds and obligations.

The bill amends or repeals a number of financing provisions within the Space Florida Act (Part II, ch. 331,
F.S.). Specifically, the bill clarifies certain definitions, specifies that revenue bonds issued by Space Florida are
not pledges of the full faith and credit of Space Florida and may not be secured by state appropriations,
reduces the maximum length to maturity for bonds, and allows Space Florida to validate its bonds pursuant to
ch. 75, F.S.

The bill also removes both the requirement that Space Florida notify the presiding officers and appropriations
chairs of both houses of the Legislature before presenting a bond proposal to the Governor and Cabinet and
the requirement for the Governor and Cabinet to approve its issuance.

The bill does not appear to have a 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: h0717d.COM.DOCX
DATE: 2/3/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Present Situation

Space Florida

Space Florida was established by the Legislature in 2006 to consolidate Florida's three existing space
entities, namely the Florida Space Authority, the Florida Space Research Institute, and the Florida
Aerospace Finance Corporation, into a single organization. 1 Space Florida was created to promote
aerospace business development by facilitating business and infrastructure financing, spaceport
operations, research and development, workforce development and innovative education programs. 2
Space Florida acts as the single point of contact for state aerospace-related activities with federal
agencies, the military, state agencies, businesses, and the private sector. 3 Space Florida may
purchase or construct facilities; set rates, fees, and charges for the use of facilities; and undertake joint
financing with municipalities or private sector entities for any project. 4

Space Florida is governed by a 13-member independent board of directors that consists of members
appointed by the Governor, the President of the Senate, the Speaker of the House of Representatives,
and members of the board of directors of Enterprise Florida, lnc. 5 The Governor serves ex officio, or
may appoint a designee to serve as the chair and a voting member of the board.

Space Florida is an independent special district and a subdivision of the state. The boundary and
services area for the Space Florida special district covers the entire state. Space Florida is subject to
the provisions of the Uniform Special District Accountability Act, to the extent that the provisions of that
act do not conflict with the Space Florida Act. 6

Special Districts

In 1989, the Legislature passed the Uniform Special District Accountability Act.7 This Act sets forth the
general provisions for all special districts, addressing such provisions as the creation, operation,
financial reporting, taxation, assessments, elections, definitions, compliance with general law
provisions, and comprehensive planning of special districts. Like municipalities and counties, special
districts generally do not pay sales tax on goods and services and may be able to finance with tax-
exempt bonds issued at reduced interest rates.

Generally, the charter creating an independent special district must contain the following information:

• The purpose of the special district;
• The powers, functions and duties of the special district relating to ad valorem taxes, bonds and
other revenue-raising abilities, budget preparation and approval, liens and lien foreclosures, and
the use of tax deeds and certificates for non-ad valorem assessments and contractual
agreements;
• Method for establishing the district and amending the district charter;

1
SPACE FLORIDA, Open Government, https://www.spaceflorida.gov/about/open-government/ {last visited Jan. 9, 2020).
2
Section 331.302, F.S.
3
Section 331.3011, F.S.
4
Section 331.305, F.S.
5
Section 331.3081., F.S.
6
Sections 331.301-331.371, F.S.
7
Chapter 189, F.S.
STORAGE NAME: h0717d.C0M.D0CX PAGE: 2
DATE: 2/3/2020
• The membership, organization, compensation, and administrative duties of the governing board
and its members;
• Applicable financial disclosure, noticing, and reporting requirements;
• Procedures and requirements for bond issues, if the special district will issue bonds;
• Election procedures and requirements;
• Method for financing the district;
• Authorized millage rate, and methods for collecting non-ad valorem assessments, fees, or
service charges;
• Planning requirements; and
• District boundaries.

Debt Financing and Space Florida

Current law authorizes Space Florida to issue revenue bonds, assessment bonds, or any other bonds
or obligations authorized by law, and to provide for the retirement or refunding of any bonds or
obligations of Space Florida. Space Florida is allowed to pay for the acquisition, construction,
reconstruction, extension, repair, improvement, or maintenance of any project, including payloads and
space flight hardware, equipment for research, development, and educational activities, and to provide
for any facility, service or other activity of Space Florida. 8

Space Florida's board, by resolution at a noticed and public meeting, authorizes the issuance of bonds,
fixes the aggregate amount of bonds to be issued, and sets:

• The purpose or purposes for which the moneys derived therefrom shall be expanded;
• The rate or rates of interest;
• The denomination of the bonds;
• Whether or not the bonds are to be issued in one or more series;
• The date or dates thereof;
• The date or dates of maturity;
• The medium of payment;
• The place or places within or outside the state where payment shall be made;
• Registration privileges;
• Redemption terms and privileges (whether with or without premium);
• The manner of execution;
• The form of the bonds including any interest coupons to be attached thereto;
• The manner of execution of bonds and coupons and any and all other terms, covenants, and
conditions thereof; and
• The establishment of reserve or other funds.

However, the bonds' term cannot exceed 40 years from their respective dates of issuance. 9

Revenue bonds may be secured by the rates, fees, rentals, tolls, fares, or other charges to be collected
from the users of any project, from any revenue-producing undertaking or activity of Space Florida, or
from any source of pledged security. 10 Revenue bonds do not constitute an indebtedness of Space
Florida unless they are additionally secured by the full faith and credit of Space Florida. 11

8
Section 331.305(20), F.S.
9
Section 331.340, F.S.
10
Section 331.331, F.S.
11
Section 331.331(2), F.S.
STORAGE NAME: h0717d.COM.DOCX PAGE: 3
DATE: 2/3/2020
Space Florida may also issue refunding bonds, bond anticipation notes, 12 obtain loans, and issue debt
to pay for costs and expenses. 13 Space Florida is authorized to pledge its full faith and credit as
additional security for the payment of any bonds that it issues. 14

Space Florida must provide 14 days' notice to the presiding officers and appropriations chairs of both
houses of the Legislature prior to presenting a bond proposal to the Governor and Cabinet. If either
presiding officer or appropriations chair objects to the bonding proposal within the 14-day-notice period,
the bond issuance may be approved only by a vote of three-fourths of the members of the Governor
and Cabinet. 15 In 1991, the legislature modified Chapter 331, F.S., to provide a definition of the term
"conduit bonds" and further authorized the Spaceport's Authority 16 to issue conduit bonds 17 without
Cabinet approval and notice to the Legislature. 18 This authority came as an exclusion to the 1991
revision to s. 331.303 (21 ), F.S., that provided, "Until December 31, 1994, bonds, other than conduit
bonds, issued under the authority contained in this act shall not exceed a total of $500 million and must
first be approved by a majority of the members of the Governor and Cabinet." In 1999, this language
was removed, leaving the requirements for notice to the Legislature and approval by the Governor and
Cabinet. 19

Section 331.346, F.S., provides for the validity of bonds and the procedures by which bonds issued by
Space Florida are validated. Chapter 75, F.S., also specifies the procedures for bond validation issued
by entities of the state. The bond validation chapter provides for jurisdiction of claims, plaintiffs, notice,
appeal and review, as well as commencement of action after validation.

Section 331.334, F.S., provides for the pledging of assessments and other revenues and properties as
additional security on bonds. Pursuant to this section, Space Florida may hold an election in the
manner provided by law for special districts and pledge its full faith and credit for any of its bonds to
ensure the full payment of principal, interest, and any other funds provided for if pledged revenues are
insufficient for such payment. Space Florida by resolution of the board may also pledge as additional
bond security the revenues from any project of Space Florida, utility service, assessments, and any
other sources of revenue or funds, or any combination of the foregoing, and may pledge or mortgage
any of the properties, rights, interest, or other assets of Space Florida. Bonds issued by Space Florida
are not secured by the full faith and credit of the State of Florida and do not constitute an obligation,
either general or special, thereof. The board may also provide with respect to any bonds of Space
Florida that such bonds are payable, in whole or in part, as to principal amount or interest, or both, out
of rates, fees, rentals, tolls, fares, or other charges collected with respect to any of the projects of
Space Florida.

Section 331.335, F.S., provides that all pledges of revenues and assessments made pursuant to the
provisions of the Space Florida Act are valid and binding from the time the pledges are made. All
revenues and assessments pledged and thereafter collected are immediately subject to the lien of the
pledges without any physical delivery thereof or further action, and the lien of such pledges are valid
and binding as against all parties having claims of any kind in tort, contract, or otherwise against Space
Florida, irrespective of whether such parties have notice.

In addition to other powers authorized, Space Florida may, at any time after the issuance of any bonds
Space Florida has authorized, borrow money for the purposes for which the bonds are to be issued in

12
Section 331.336, F.S.
13
Section 331.337, F.S.
14
Section 331.334, F.S.
15
Section 331.305(20), F.S.
16
The Spaceport Florida Authority was created in 1991. Space Florida is its successor. See Ch. 91-265, L.O.F.
17
The term "conduit bond" was defined to mean "any bond of the authority which is a nonrecourse obligation of the authority
payable from the proceeds of such bonds and related financing agreements. Section 331.303(6), F.S. (1992).
18
Chapter 91-265, L.0.F.
19
Section 73, ch. 99-385 L.O.F.
STORAGE NAME: h0717d.COM.DOCX PAGE: 4
DATE: 2/3/2020
anticipation of the receipt of the proceeds of the sale of the bonds and issue bond anticipation notes20
in a principal amount not to exceed the authorized maximum amount of the bonds issued. The board
may in its discretion, in lieu of retiring the notes by means of bonds, retire them by means of current
revenues or from any assessments levied for the payment of the bonds, but in such event a like
amount of the bonds authorized may not be issued. 21

Effect of the Bill

The bill clarifies that as a special district, Space Florida is subject to s. 189.051, F.S., which provides
requirements for bond issuance if a referendum is not required. Under that section, a special district
must ensure that, at time of closing, the bonds meet at least one of the following requirements:
• The bonds were rated in one of the highest four ratings by a nationally recognized rating
service;
• The bonds were privately placed with or otherwise sold to accredited investors;
• The bonds were backed by a letter of credit from a bank, savings and loan association, or other
creditworthy guarantor, or by bond insurance, guaranteeing payment of principal and interest on
the bonds; or
• The bonds were accompanied by an independent financial advisory opinion stating that
estimates of debt service coverage and probability of debt repayment are reasonable, which
opinion was provided by an independent financial advisory, consulting, or accounting firm
registered where professional registration is required by law and which is in good standing with
the state and in conformance with all applicable professional standards for such opinions.

The bill revises the term "bonds" to delete reference to any other type of bond other than a revenue
bond and expanded to include any other type of debt, including bank loans issued by Space Florida for
the purpose of raising financing for its projects. Thus, Space Florida may continue to do short-term
borrowing.

Space Florida's bond issuing powers are revised to conform to the new definition of the term "bonds."
In addition, the provision requiring Space Florida to provide 14 days' notice to the presiding officers and
appropriations chairs of both houses of the Legislature before presenting a bond proposal to the
Governor and Cabinet and the procedure requiring a three-fourths of the members of the Governor and
Cabinet to approve the bonding proposal if either presiding officer or appropriations chair objects to the
bonding proposal within a 14-day notice period is removed. 22

Section 331.331 (2), is amended to include assessments as an authorized revenue source with which
revenue bonds may be secured. The section further clarifies that state appropriations may not be used
as a pledged revenue source. Finally, the section is amended to state that the revenue bonds may not
be secured by the full faith and credit of Space Florida. 23

20
The notes must be in such denomination or denominations, bear interest at such rate or rates, mature at such time or times, be
renewable for such additional term or terms, and be in such form and executed in such manner as the board prescribes. The notes
may be sold at public sale, or if such notes are renewable notes, may be exchanged for notes then outstanding on such terms as the
board determines. Notes are to be paid from the proceeds of such bonds when issued.
21
Section 331.336, F.S.
22
Section 331.305, F.S.; The original bill establishing the Spaceport Florida Authority, provided:
" ... for the first year of operation, bonds issued under the authority contained in this act shall not exceed a total 210 million and
must first be approved by a majority of the members of the Governor and Cabinet. The authority must provide 14 days' notice to the
presiding officers and appropriations chairmen of both houses of the legislature prior to presenting a bond proposal to the governor
and Cabinet. If either presiding officer or appropriations chairman object to the bonding proposal within the 14 day notice period
the bond issuance may be approved only by a vote of two-thirds of the members of the Governor and Cabinet." Section 5, ch. 89-
300, L.0.F.
23
Section 331.331, F.S.
STORAGE NAME: h0717d.C0M.D0CX PAGE: 5
DATE: 2/3/2020
The section providing for Lien of Pledges is amended to conform to the changes to sources of revenue.
Because assessments are included in the sources of revenue, specifically referring to assessments in
addition to revenues is no longer necessary. 24

The bill reduces to 30 years from 40 years the maximum term for which a bond may be issued. 25

Section 331.346, F.S., provides criteria by which Space Florida must validate its bonds. The bill
authorizes Space Florida, as an alternative, to validate its bonds pursuant to ch. 75, F.S., which is a
process used by other Florida governmental entities and is more familiar to the bonding community.

The additional bonding authority and requirements provided in ss. 331.334, 331.336, and 331.337,
F.S., are repealed. Space Florida still may issue bonds on its own behalf, as well as on a conduit basis,
but Space Florida will not have the authority to issue general obligation bonds.

The bill takes effect July 1, 2020.

B. SECTION DIRECTORY:
Section 1: Amends s. 331.302, F.S.; specifying that Space Florida is subject to the bonding provisions
in s. 189.051, F.S.

Section 2: Amends s. 331.303, F.S.; revising the definition of the term "bonds."

Section 3: Amends s. 331.305, F.S.; revising powers of Space Florida regarding bond issuance and
removing the requirement that the Legislature must be notified and that the Governor and
Cabinet must approve Space Florida's bond proposals.

Section 4: Amends s. 331.331, F.S.; revising provisions relating to securing the issuance of revenue
bonds and specifying that revenue bonds issued by Space Florida may not constitute an
indebtedness of Space Florida and may not be secured by state appropriations.

Section 5: Repeals s. 331.334, F.S., relating to pledging assessments and other revenues and
properties as additional security on bonds; s. 331.336, F.S., relating to issuance of bond
anticipation notes; ands. 331.337, F.S., relating to short-term borrowing.

Section 6: Amends s. 331.335, F.S.; revising provisions relating to lien of pledges.

Section 7: Amends s. 331.340, F.S.; reducing the maximum term for bonds issued by Space Florida
from 40 years to 30 years from the date of issuance.

Section 8: Amends s. 331.346, F.S.; authorizing Space Florida to validate bonds pursuant to ch. 75,
F.S.

Section 9: Provides an effective date of July 1, 2020.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1 . Revenues:
None.

24
Section 331.335, F.S.
25
Section 331.340, F.S.
STORAGE NAME: h0717d.C0M.D0CX PAGE: 6
DATE: 2/3/2020
2. Expenditures:
None.

8. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may result in a positive direct economic impact for businesses that are involved in activities
financed by Space Florida.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A. CONSTITUTIONAL ISSUES:

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

2. Other:
None.

8. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

STORAGE NAME: h0717d.COM.DOCX PAGE: 7
DATE: 2/3/2020
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 717 2020

1 A bill to be entitled
2 An act relating to Space Florida financing; amending
3 s. 331.302, F.S.; specifying bonding provisions to
4 which Space Florida is subject; amending s. 331.303,
5 F.S.; revising the definition of the term "bonds";
6 amending s. 331.305, F.S.; revising powers of Space
7 Florida regarding bond issuance; deleting provisions
8 regarding presentation of bond proposals to, and
9 approval of bond issuance by, the Governor and
10 Cabinet; amending s. 331.331, F.S.; revising
11 provisions relating to securing the issuance of
12 revenue bonds; repealing s. 331.334, F.S., relating to
13 pledging assessments and other revenues and properties
14 as additional security on bonds; repealing s. 331.336,
15 F.S., relating to issuance of bond anticipation notes;
16 repealing s. 331.337, F.S., relating to short-term
17 borrowing; amending s. 331.335, F.S.; revising
18 provisions relating to lien of pledges; amending s.
19 331.340, F.S.; revising bond maturity date
20 requirements; amending s. 331.346, F.S.; authorizing
21 Space Florida to validate bonds pursuant to certain
22 provisions; providing an effective date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25

Page 1 of 7

CODING: Words strioken are deletions; words underlined are additions.
hb0717-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 717 2020

26 Section 1. Subsection (5) of section 331.302, Florida
27 Statutes, is amended to read:
28 331.302 Space Florida; creation; purpose.-
29 (5) Space Florida is subject to applicable provisions of
30 chapter 189, including, but not limited to, s. 189.051. To the
31 extent that any provisions of chapter 189 conflict with this
32 act, this act shall prevail.
33 Section 2. Subsection (3) of section 331.303, Florida
34 Statutes, is amended to read:
35 331.303 Definitions.-
36 ( 3) "Bonds" means revenue bonds or other evidences of
37 indebtedness, including bank loans, assessment bonds, or other
38 bonds or obligations issued by Space Florida for the purpose of
39 raising financing for its projects.
40 Section 3. Subsection (20) of section 331.305, Florida
41 Statutes, is amended to read:
42 331.305 Powers of Space Florida.-Space Florida may:
43 (20) Issue revenue bonds or other evidences of
44 indebtedness, including bank loans, assessment bonds, or any
45 other bonds or obligations authorized by the provisions of this
46 act or any other law, or any combination of the foregoing, and
47 pay all or part of the cost of the acquisition, construction,
48 reconstruction, extension, repair, improvement, or maintenance
49 of any project or combination of projects, including payloads
50 and space flight hardware, and equipment for research,

Page 2 of 7

CODING: Words stricken are deletions; words underlined are additions.
hb0717-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 717 2020

51 development, and educational activities, to provide for any
52 facility, service, or other activity of Space Florida, and
53 provide for the retirement or refunding of any bonds or
54 obligations of Space Florida, or for any combination of the
55 foregoing purposes. Space Florida must provide 14 days' notice
56 to the presiding officers and appropriations chairs of both
57 houoeo of the Legislature prior to presenting a bond proposal to
58 the Governor and Cabinet. If either presiding officer or
59 appropriations chair objects to the bonding proposal within the
60 14 day notice period, the bond issuance may be approved only by
61 a vote of three fourths of the members of the Governor and
62 Cabinet.
63 Section 4. Subsection (2) of section 331.331, Florida
64 Statutes, is amended to read:
65 331.331 Revenue bonds.-
66 (2) The issuance of revenue bonds may be secured by or
67 payable from the gross or net pledge of the revenues to be
68 derived from any project or combination of projects~7 from the
69 rates, fees, rentals, tolls, fares, assessments, or other
70 charges to be collected from the users of any project or
71 projects; from any revenue-producing undertaking or activity of
72 Space Florida; or from any source of pledged security other than
73 state appropriations. Such bonds are shall not constitute an
74 indebtedness of Space Florida unless ouch bonds are additionally
75 secured by the full faith and credit of Space Florida. Bonds

Page 3 of 7

CODING: Words stricken are deletions; words underlined are additions.
hb0717-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 717 2020

76 issued by Space Florida are not secured by the full faith and
77 credit of the State of Florida and do not constitute an
78 obligation, either general or special, thereof.
79 Section 5. Sections 331.334, 331.336, and 331.337, Florida
80 Statutes, are repealed.
81 Section 6. Section 331.335, Florida Statutes, is amended
82 to read:
83 331.335 Lien of pledges.-All pledges of revenues afl-El-
84 assessffients made pursuant to the provisions of this act shall be
85 valid and binding from the time when such pledges are made. All
86 such revenues and asseosffients so pledged and thereafter
87 collected shall immediately be subject to the lien of such
88 pledges without any physical delivery thereof or further action,
89 and the lien of such pledges shall be valid and binding as
90 against all parties having claims of any kind in tort, contract,
91 or otherwise against Space Florida, irrespective of whether such
92 parties have notice thereof.
93 Section 7. Section 331.340, Florida Statutes, is amended
94 to read:
95 331.340 Authorization and form of bonds.-Bonds may be
96 authorized by resolution or resolutions of the board which are
97 shall be adopted by a majority of all of the members thereof
98 then in office and present at the meeting at which the
99 resolution or resolutions are adopted and shall be approved as
100 provided ins. 331.305. The resolution or resolutions of the

Page 4 of 7

CODING: Words stricken are deletions; words underlined are additions.
hb0717-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 717 2020

101 board may be adopted at the same meeting at which they are
102 introduced7 and shall be published and noticed. The board may by
103 resolution authorize the issuance of bonds and determine, fiJc
104 the aggregate amount of bonds to be issued, the purpose or
105 purposes for which the moneys derived therefrom shall be
106 expanded, the rate or rates of interest, the denomination of the
107 bonds, whether or not the bonds are to be issued in one or more
108 series, the date or dates thereof, the date or dates of
109 maturity, which shall not exceed 30 4G- years from their
110 respective dates of issuance, the medium of payment, the place
111 or places within or without the state where payment shall be
112 made, registration privileges, redemption terms and privileges
113 (whether with or without premium), the manner of execution, the
114 form of the bonds including any interest coupons to be attached
115 thereto, the manner of execution of bonds and coupons, and any
116 and all other terms, covenants, and conditions thereof, and the
117 establishment of reserve or other funds. Such authorizing
118 resolution may further provide that such bonds may be executed
119 manually or by engraved, lithographed, or facsimile signature,
120 provided that where signatures are engraved, lithographed, or
121 facsimile~ fie' bond shall not be valid unless countersigned by
122 a registrar or other officer designated by appropriate
123 resolution of the board. The seal of Space Florida may be
124 affixed, lithographed, engraved, or otherwise reproduced in
125 facsimile on such bonds. In case any officer whose signature or

Page 5 of 7

CODING: Words stricken are deletions; words underlined are additions.
hb0717-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 717 2020

126 a facsimile of whose signature appears shall appear on any bonds
127 or coupons ceases shall cease to be such officer before the
128 delivery of such bonds, such signature or facsimile is shall
129 nevertheless ee valid and sufficient for all purposes the same
130 as if the officer had remained in office until such delivery.
131 Section 8. Section 331.346, Florida Statutes, is amended
132 to read:
133 331.346 Validity of bonds; validation proceedings.-Any
134 bonds issued by Space Florida shall be incontestable in the
135 hands of bona fide purchasers or holders for value and shall not
136 be invalid because of any irregularity or defect in the
137 proceedings for the issue and sale thereof. Before Prior to the
138 issuance of any bonds, Space Florida shall publish a notice at
139 least once in a newspaper or newspapers published or of general
140 circulation in the appropriate counties in the state, stating
141 the date of adoption of the resolution authorizing such
142 obligations, the amount, maximum rate of interest, and maturity
143 of such obligations, and the purpose in general terms for which
144 such obligations are to be issued, and further stating that no
145 action or proceeding questioning the validity of such
146 obligations or of the proceedings authorizing the issuance
147 thereof, or of any covenants made therein, must be instituted
148 within 20 days after the first publication of such notice, or
149 the validity of such obligations, proceedings, and covenants
150 shall not be thereafter questioned in any court whatsoever. If

Page 6 of 7

CODING: Words stricken are deletions; words underlined are additions.
hb0717-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 717 2020

151 no such action or proceeding is so instituted within such 20-day
152 period, then the validity of such obligations, proceedings, and
153 covenants shall be conclusive, and all persons or parties
154 whatsoever shall be forever barred from questioning the validity
155 of such obligations, proceedings, or covenants in any court
156 whatsoever. Alternatively, Space Florida may validate its bonds
157 pursuant to chapter 75.
158 Section 9. This act shall take effect July 1, 2020.

Page 7 of 7

CODING: Words stricken are deletions; words underlined are additions.
hb0717-00
COMMERCE COMMITTEE

HB 717 by Rep. Sirois
Space Florida Financing

AMENDMENT SUMMARY
February 6, 2020

Amendment 1 by Rep. Sirois (line 49):
The amendment adds "environmental mitigation" to the non-exhaustive list of activities that
Space Florida is authorized to finance.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 717 (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: Commerce Committee
2 Representative Sirois offered the following:
3

4 Amendment (with title amendment)
5 Remove line 49 and insert:
6 of any project or combination of projects, including
7 environmental mitigation, payloads
8

9 -----------------------------------------------------
10 T I T L E A ME N D ME N T
11 Remove line 7 and insert:
12 Florida; deleting provisions

227027 - h717-line 49.docx
Published On: 2/5/2020 3:46:47 PM
Page 1 of 1
COMMERCE COMMITTEE

HB 717 by Rep. Sirois
Space Florida Financing

AMENDMENT SUMMARY
February 6, 2020

Amendment 2 by Rep. Sirois (line 106):
The amendment corrects a drafting error.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. HB 717 (2020)
Amendment No. 2

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: Commerce Committee
2 Representative Sirois offered the following:
3
4 Amendment
5 Remove line 106 and insert:
6 expended expanded, the rate or rates of interest, the
7 denomination of the

416457 - h717-line 106.docx
Published On: 2/5/2020 4:03:54 PM
Page 1 of 1
:::c
a,
.......
.......
w
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 773 Medically Essential Electric Utility Service
SPONSOR(S): Maggard
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Energy & Utilities Subcommittee 14 Y, 0 N Keating Keating

2) Health & Human Services Committee 14 Y, 0 N Grabowski Calamas

3) Commerce Committee Keating Hamon

SUMMARY ANALYSIS
Florida law, through s. 366.15, F.S., establishes procedures that each investor-owned electric utility (IOU) must
follow when providing service to residential customers who depend on electric powered equipment for
physician-certified medical reasons. This service is referred to as "medically essential" electric service.

The bill expands s. 366.15, F.S., to require that municipal electric utilities and rural electric cooperatives offer
medically essential electric service programs on terms similar to IOUs. The bill also requires that all electric
utilities provide additional consumer education about medically essential electric service programs. In
particular, the bill:
• Requires each electric utility to post on its website a written explanation of the certification process,
including a standard certification form.
• Requires each electric utility to provide a written explanation of the certification process to each
residential customer at the time the customer opens an account and semiannually thereafter.
• Requires licensed physicians, physician assistants, and advanced registered nurse practitioners to
inform eligible patients of the right to participate in medically essential electric service programs and to
provide such patients a copy of s. 366.15, F.S., and, if requested, a completed medical certification.

The bill also modifies the certification and notice requirements associated with medically essential electric
service programs. In particular, the bill:
• Expands the types of health care practitioners that may provide medical certification to also include
licensed physician assistants and advanced registered nurse practitioners.
• Requires each medical certification to specify the time period for which service is expected to remain
medically essential, up to 60 months.
• Requires the electric utility to provide recertification materials to certified customers at least 60 days
prior to expiration of the customer's certification, and allows the utility to send recertification materials to
the customer by e-mail if the customer has provided an email address.
• Requires an electric utility to provide additional notice to a certified customer before any disconnection
of service for nonpayment, including notice by electronic means.

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

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: h0773d.C0M.D0CX
DATE: 2/4/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A EFFECT OF PROPOSED CHANGES:
Present Situation

Florida law, through s. 366.15, F.S., establishes procedures that each investor-owned electric utility 1
(IOU) must follow when providing service to residential customers who depend on electric powered
equipment for physician-certified medical reasons. This service is referred to as "medically essential" 2
electric service.

Under the law, each IOU must:
• Designate employees who are authorized to direct the continuation or restoration of medically
essential electric service.
• Provide annually to all customers a written explanation of the certification process for medically
essential electric service, which includes:
o Submittal of completed forms supplied by the utility, including a certification form
completed by a physician licensed under ch. 458 or ch. 459, F.S., which states in
medical and nonmedical terms why the electric service is medically essential; and
o Recertification by a physician every 12 months.
• Provide recertification materials to a certified customer by mail at least 30 days prior to
expiration of the customer's certification, and allow the customer to submit completed
recertification forms within 30 days after the expiration of certification.
• Provide notice to a certified customer before any disconnection of service for nonpayment:
o By telephone at least 24 hours before the scheduled disconnection;
o In person at the customer's residence no later than 4 p.m. of the day before the
scheduled disconnection, if the customer cannot be reached in a timely manner by
telephone; and
o By leaving written notification at the residence, if the customer cannot be reached by
telephone or in person.
• Provide notice of any scheduled service interruptions to certified customers.

If a certified customer notifies its IOU of a need for financial assistance, the law requires the IOU to
provide the customer with information on sources of state or local agency funding that may provide
financial assistance to such customers. In addition, if an IOU operates a program to receive voluntary
contributions from its customers to provide financial assistance to persons unable to pay for service,
the IOU must train its customer service representatives to assist certified customers in identifying the
program and any agencies to which the IOU has distributed the contributed funds.

The law provides that each certified customer maintains the responsibility to make satisfactory
arrangements with the IOU to ensure payment for service consistent with the requirements of the IOU's
tariff. Further, the law provides that each certified customer is solely responsible for any backup
equipment or power supply and a planned course of action in the event of a power outage or
interruption of service. The law specifies that an IOU may disconnect service to a residence whenever
an emergency may threaten the health or safety of a person, the surrounding area, or the public utility's
distribution system, provided that the IOU must promptly restore service as soon as feasible. The law
states that it does not form the basis for any cause of action against an IOU.

1 Florida's investor-owned electric utilities are Florida Power & Light Company, Duke Energy Florida, Tampa Electric Company,

Gulf Power Company, and Florida Public Utilities Company. These utilities are referred to in statute as "public utilities" for purposes
of regulation by the Public Service Commission. S. 366.02, F.S.
2
The term "medically essential" is defined as "the medical dependence on electric-powered equipment that must be operated
continuously or as circumstances require as specified by a physician to avoid the loss oflife or immediate hospitalization of the
customer or another permanent resident at the residential service address." S. 366.15(1), F.S.
STORAGE NAME: h0773d.C0M.D0CX PAGE: 2
DATE: 2/4/2020
The law does not apply to municipal electric utilities or rural electric cooperatives, but the majority of
those utilities maintain programs for medically essential electric service, many under terms similar to
the terms specified in law for IOUs. 3 The rates and service of municipal electric utilities and rural
electric cooperatives are not regulated by the Public Service Commission (PSC).

Chapter 456, F.S., addresses the regulation of specified health care professions by the Department of
Health. It does not address certification of patients for medically essential electric service.

Effect of Proposed Changes

In summary, the bill requires additional consumer education about medically essential electric service
programs and establishes additional protections for utility customers that are certified under such
programs. In addition, the bill expands the law to include municipal electric utilities and rural electric
cooperatives.

The bill amends s. 366.15, F.S., to replace most references to "public utility" - the term used in ch. 366,
F.S., to describe investor-owned electric utilities - with the term "electric utility." The term "electric
utility" is used in ch. 366, F.S., to refer to all types of electric utilities, including investor-owned electric
utilities, municipal electric utilities, and rural electric cooperatives. Thus, the bill expands the statutory
requirements for medically essential electric service to all retail electric utilities in the state, 4 though it
clarifies that the provision of medically essential electric service by municipal electric utilities and rural
electric cooperatives will not be regulated or overseen by the PSC.

The bill requires additional consumer education about medically essential electric service. In particular,
the bill:
• Requires that each electric utility post on its website a written explanation of the certification
process, including a standard certification form adopted by the utility.
• Requires that each electric utility provide a written explanation of the certification process to
each residential customer at the time the customer opens an account with the utility and
semiannually thereafter, either through a bill insert or by electronic means.
• Creates s. 456.45, F.S., to require certain health care practitioners - licensed physicians,
physician assistants, and advanced registered nurse practitioners - to inform a patient of the
right to participate in medically essential electric service programs and to provide the patient
with a written copy of s. 366.15, F .S., if the patient may be at risk of loss of life or immediate
hospitalization due to the loss of electric service at the patient's residence. At the request of
such a patient, the practitioner must provide the patient a completed medical certification using
the form adopted by the utility and document the certification in the patient's record.

The bill also modifies the statutory requirements for medically essential electric service. With respect to
the certification process, the bill:
• Expands the types of health care practitioners that may provide medical certification to also
include licensed physician assistants and advanced registered nurse practitioners.
• Requires each utility to adopt a standard certification form and specifies the information to be
included in the form, including: the customer's name, account number, service address, and
contact information; the name of the permanent resident at the service address who is
medically dependent on electric-powered equipment; and the name of that person's certifying
health practitioner. The bill requires that the standard certification form include a separate

3
As of December 31, 2018, IOUs served 75.5% of residential customers in the state (7,183,302), while municipal electric utilities
served 13 .5% (1,288,251) and rural electric cooperatives served 11 % (1,043,694). See Florida Public Service Commission, Statistics
of the Florida Electric Utility Industry, October 2019, at 45, available at
http://www.psc.state.fl.us/Files/PDF/Publications/Reports/Electricgas/Statistics/2018.pdf (last visited Jan. 11, 2020).
4
The bill does not extend certain accounting and training requirements ins. 366.15(10)(b)2., F.S., to municipal electric utilities and
rural electric cooperatives.
STORAGE NAME: h0773d.C0M.D0CX PAGE: 3
DATE: 2/4/2020
section to be completed by the certifying health care practitioner, which must include: the
name, business address, and medical license number of the certifying health care practitioner;
a statement in medical and nonmedical terms that specifies why electric service is medically
essential; and the time period for which the service is expected to remain medically essential.
• Allows for medical certification up to 60 months.
• Requires recertification upon expiration of the current certification period but no sooner than 12
months after issuance of the current certification.
• Allows the electric utility to send recertification materials to the customer by e-mail if the
customer has provided an email address to the utility.
• Requires the electric utility to provide recertification materials to certified customers at least 60
days prior to expiration of the customer's certification.
• Allows the electric utility, no more often than once every 12 months, to request verification from
the customer that the person for whom service is certified continues to reside at the service
address.

With respect to disconnection of service for nonpayment, the bill:
• Requires that each electric utility provide certified customers no less time than other residential
customers to make payment or payment arrangements (in any event, no less than 20 days
from the date a bill is mailed or delivered by the electric utility) prior to the utility scheduling
disconnection of service.
• Requires the electric utility to provide, in addition to any notice provided in its normal course of
business, notice to certified customers:
o By telephone and in writing - including by electronic means if the customer has
provided contact information to receive electronic communications - no later than 15
days before, and again no later than 7 days before, the scheduled disconnection;
o In person at the customer's residence no later than 2 business days before the
scheduled disconnection, if the customer cannot be reached in a timely manner by
telephone; and
o In writing by electronic means, in addition to leaving written notification at the residence,
if in-person contact is not made.

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

8. SECTION DIRECTORY:
Section 1. Amends s. 366.11, F.S., related to certain exemptions from regulation under ch. 366, F.S.

Section 2. Amends s. 366.15, F .S., related to medically essential electric public utility service.

Section 3. Creates s. 456.45, F.S., related to certification of medically essential electric utility service.

Section 4. 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.

STORAGE NAME: h0773d.C0M.D0CX PAGE: 4
DATE: 2/4/2020
8. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Electric utilities that currently provide medically essential electric service programs may incur costs to
modify those programs to comply with the bill. The small minority of electric utilities that do not
currently provide such programs will incur costs to establish those programs in compliance with the bill.

D. FISCAL COMMENTS:
None.

Ill. COMMENTS

A CONSTITUTIONAL ISSUES:

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

2. Other:
None.

8. RULE-MAKING AUTHORITY:
None.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
None.

STORAGE NAME: h0773d.COM.DOCX PAGE: 5
DATE: 2/4/2020
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 773 2020

1 A bill to be entitled
2 An act relating to medically essential electric
3 utility service; amending s. 366.11, F.S.; specifying
4 that the fact that certain electric utilities must
5 provide medically essential electric service does not
6 require them to otherwise be regulated by the Public
7 Service Commission; amending s. 366.15, F.S.; revising
8 and defining terms; providing notification
9 requirements for electric utilities relating to the
10 certification process for obtaining medically
11 essential electric service and service disconnection;
12 providing certification requirements for customers;
13 specifying duties of electric utilities; revising
14 penalties for falsification of such certification;
15 providing construction; creating s. 456.45, F.S.;
16 requiring certain health care practitioners to inform
17 certain patients of such certification process;
18 requiring such practitioners to provide patients with
19 completed medical certifications and document the
20 certification; providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Subsection (1) of section 366.11, Florida
25 Statutes, is amended to read:

Page 1 of 11

CODING: Words stricken are deletions; words underlined are additions.
hb0773-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 773 2020

26 366.11 Certain exemptions.-
27 (1) No provision of this chapter shall apply in any
28 manner, other than as specified in ss. 366.04, 366.05(7) and
29 (8), 366.051, 366.055, 366.093, 366.095, 366.14, 366.15, 366.80-
30 366.83, and 366.91, to utilities owned and operated by
31 municipalities, whether within or without any municipality, or
32 by cooperatives organized and existing under the Rural Electric
33 Cooperative Law of the state, or to the sale of electricity,
34 manufactured gas, or natural gas at wholesale by any public
35 utility to, and the purchase by, any municipality or cooperative
36 under and pursuant to any contracts now in effect or which may
37 be entered into in the future, when such municipality or
38 cooperative is engaged in the sale and distribution of
39 electricity or manufactured or natural gas, or to the rates
40 provided for in such contracts.
41 Section 2. Section 366.15, Florida Statutes, is amended to
42 read:
43 366.15 Medically essential electric public utility
44 service.-
45 (1) As used in this section, the term~
46 (a) "Health care practitioner" means a physician or
47 physician assistant licensed under chapter 458 or chapter 459 or
48 an advanced registered nurse practitioner licensed under chapter
49 464.
50 ill "Medically essential" means the medical dependence on

Page 2 of 11

CODING: Words stricken are deletions; words underlined are additions.
hb0773-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 773 2020

51 electric-powered equipment that must be operated continuously or
52 as circumstances require as specified by a health care
53 practitioner physician to avoid the loss of life or immediate
54 hospitalization of the customer or another permanent resident at
55 the residential service address.
56 (2) Each electric public utility shall designate employees
57 who are authorized to direct an ordered continuation or
58 restoration of medically essential electric service. An electric
59 A public utility shall not impose upon any customer any
60 additional deposit to continue or restore medically essential
61 electric service.
62 (3) (a) Each electric public utility shall post on its
63 website a written explanation of the certification process for
64 obtaining medically essential electric service. The website must
65 include the standard certification form adopted by the utility
66 pursuant to paragraph (b). Each electric utility shall annually
67 provide a written explanation of the certification process .f.e-r-
68 medically essential electric service to each residential utility
69 customer:
70 1. When the customer opens an account for electric service
71 with the electric utility; and
72 2. At least semiannually either by a written bill insert
73 or, if the customer has provided contact information to receive
74 electronic communications from the utility, by electronic means.
75 (b)l. Each electric utility must adopt a standard

Page 3 of 11

CODING: Words strioken are deletions; words underlined are additions.
hb0773-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 773 2020

76 certification form to be completed and signed by each
77 residential customer who wishes to have his or her service
78 certified as medically essential. The certification form must
79 include the customer's service address, the customer's name and
80 the account number for the service address, the name of the
81 permanent resident at the service address who is medically
82 dependent on electric-powered equipment and the name of that
83 person's certifying health care practitioner, and the customer's
84 contact information for purposes of receiving communications
85 from the utility by telephone and by electronic means if the
86 customer has provided authorization to receive electronic
87 communications.
88 2. The certification form must include a separate page to
89 be completed and signed by a health care practitioner certifying
90 that electric service is medically essential for the customer or
91 other permanent resident at the service address. This page of
92 the certification form must include the name, business address,
93 and medical license number of the certifying health care
94 practitioner; a statement by the certifying health care
95 practitioner, in medical and nonmedical terms, that specifies
96 the reasons why the electric service is medically essential, as
97 defined in subsection (1); and a specification of the time
98 period for which the electric service is expected to remain
99 medically essential.

Page 4 of 11

CODING: Words stricken are deletions; words underlined are additions.
hb0773-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 773 2020

100 J...£1 Certification that .e-f. a customer's electricity needs
101 are -a-s- medically essential requires the customer to complete
102 forms supplied by the public utility and to submit to the
103 utility a completed standard certification form which includes
104 the health care practitioner's certification a form completed by
105 a physician licensed in this state pursuant to chapter 458 or
106 chapter 459 which states in medical and nonmedical terms why the
107 electric service is medically essential. The certification may
108 not extend beyond 60 months. Falsification of the False
109 certification of medically essential service by a physician is a
110 violation of s. 458.331(1) (h)L -o-r- s. 459.015(1) (i), ors.
111 464.018 (1) (f).
112 ~-Be+- Medically essential service must shall be
113 recertified at the expiration of the time period specified in
114 the certification or once every 12 months after certification,
115 whichever is later. The electric public utility shall send the
116 certified customer by regular mail, or by e-mail if the customer
117 has provided the utility with his or her e-mail address, a
118 package of recertification materials, including recertification
119 forms, at least _§_.Q_ -3.e. days before prior to the expiration of the
120 customer's certification. The materials shall advise the
121 certified customer that he or she must complete and submit the
122 recertification forms within 30 days after the expiration of the
123 customer's existing certification. If the recertification form
124 is forms are not received within this 30-day period, the

Page 5 of 11

CODING: Words stricken are deletions; words underlined are additions.
hb0773-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 773 2020

125 electric public utility may terminate the customer's
126 certification. No more than once every 12 months during the term
127 of the certification, the electric utility may request
128 verification from the customer that the person for whom electric
129 service is certified continues to reside at the service address.
130 (4) Each electric public utility must shall certify a
131 customer's electric service as medically essential if the
132 customer completes the requirements of subsection (3).
133 (5) Notwithstanding any other provision of this section,
134 an electric a public utility may disconnect service to a
135 residence whenever an emergency may threaten the health or
136 safety of a person, the surrounding area, or the electric public
137 utility's distribution system. The electric public utility shall
138 act promptly to restore service as soon as feasible.
139 (6) A customer whose electric service is certified as
140 medically essential under this section is entitled, at a
141 minimum, to the same time period for payment of bills that
142 applies to all other residential customers served by the
143 electric utility. However, the time period may not be fewer than
144 20 days after the date the bill is mailed or delivered by the
145 utility. If payment or a satisfactory payment arrangement has
146 not been made within the specified time period, the electric
147 utility may schedule disconnection of service for nonpayment of
148 the bill. In addition to any other notice provided in the
149 utility's normal course of business, before the electric utility

Page 6 of 11

CODING: Words stricken are deletions; words underlined are additions.
hb0773-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 773 2020

150 disconnects service it must provide the following notice to each
151 customer whose electric service is certified as medically
152 essential under this section:
153 ~ No later than 15 days, and again no later than 7 days,
154 before a scheduled disconnection 24 hours before any scheduled
155 disconnection of service for nonpayment of bills to a customer
156 who requires medically essential service, the electric a public
157 utility shall attempt to contact the customer by telephone -i--n-
158 order to provide notice of the scheduled disconnection and shall
159 provide the notice in writing, including by electronic means if
160 the customer has provided contact information to receive
161 electronic communications from the electric utility.
162 ~ If the customer does not have a telephone number
163 listed on the account or if the electric public utility cannot
164 reach the customer or other adult resident of the premises by
165 telephone by the specified time, the electric public utility
166 shall send a representative to the customer's residence to
167 attempt to contact the customer7 no later than 2 business days 4
168 p.m. of the day before the scheduled disconnection. If contact
169 is not made, however, the electric public utility must may leave
170 written notification at the residence advising the customer of
171 the scheduled disconnection and shall provide the notice by
172 electronic means if the customer has provided contact
173 information to receive electronic communications from the
174 electric utility.

Page 7 of 11

CODING: Words strisken are deletions; words underlined are additions.
hb0773-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 773 2020

175
176 Thereafter, the electric public utility may disconnect service
177 on the scheduled disconnection specified date if payment or a
178 satisfactory payment arrangement has not been made.
179 (7) Each electric public utility customer who requires
180 medically essential service is responsible for making
181 satisfactory arrangements with the electric public utility to
182 ensure payment for such service, and such arrangements must be
183 consistent with the requirements of the utility's tariff.
184 (8) Each electric public utility customer who requires
185 medically essential service is solely responsible for any backup
186 equipment or power supply and a planned course of action in the
187 event of a power outage or interruption of service.
188 (9) Each electric public utility that provides electric
189 service to any customer whose electric service is certified as
190 medically essential pursuant to this section who requires
191 ffiedically essential service shall call, contact, or otherwise
192 advise such customer of scheduled service interruptions.
193 (10) (a) Each electric public utility shall provide
194 information on sources of state or local agency funding which
195 may provide financial assistance to the public utility's
196 customers who require medically essential service and who notify
197 the public utility of their need for financial assistance.
198 (b)l. Each electric public utility that operates a program
199 to receive voluntary financial contributions from the public

Page 8 of 11

CODING: Words stricken are deletions; words underlined are additions.
hb0773-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 773 2020

200 utility's customers to provide assistance to persons who are
201 unable to pay for the public utility's services shall maintain a
202 list of all agencies to which the public utility distributes
203 such funds for such purposes and shall make the list available
204 to any such person who requests the list.
205 2. Each public utility that operates such a program shall:
206 a. Maintain a system of accounting for the specific
207 amounts distributed to each such agency, and the public utility
208 and such agencies shall maintain a system of accounting for the
209 specific amounts distributed to persons under such respective
210 programs.
211 b. Train its customer service representatives to assist
212 any person who possesses a medically essential certification as
213 provided in this section in identifying such agencies and
214 programs.
215 (11) Nothing in this act forms shall form the basis for
216 any cause of action against an electric a public utility.
217 Failure to comply with any obligation created by this act does
218 not constitute evidence of negligence on the part of the
219 electric public utility.
220 (12) Nothing in this section shall be construed to
221 authorize the commission to regulate or supervise the provision
222 of medically essential electric service pursuant to this section
223 ~
224 (a) Any electric utility owned and operated by a

Page 9 of 11

CODING: Words stricken are deletions; words underlined are additions.
hb0773-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 773 2020

225 municipality; or
226 (b) Any rural electric cooperative organized under chapter
227 425.
228 Section 3. Section 456.45, Florida Statutes, is created to
229 read:
230 456.45 Certification of medically essential electric
231 service.-
232 (1) As used in this section, the term "health care
233 practitioner" means a physician or physician assistant licensed
234 under chapter 458 or chapter 459 or an advanced registered nurse
235 practitioner licensed under chapter 464.
236 (2) A health care practitioner who determines that a
237 patient may be at risk of loss of life or immediate
238 hospitalization if the patient were to lose electric service at
239 the patient's residential service address shall inform the
240 patient of his or her right to obtain certification under the
241 medically essential electric service program provided by the
242 patient's electric utility pursuant to s. 366.15, and provide
243 the patient with a written copy of the law.
244 (3) Upon the request of such a patient, the health care
245 practitioner must provide the patient with a completed medical
246 certification using the standard certification form adopted by
247 the patient's electric utility and made available on the
248 utility's website pursuant to s. 366.15(3) and must document the
249 certification in the patient's medical record.

Page 10 of 11

CODING: Words strioken are deletions; words underlined are additions.
hb0773-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 773 2020

250 Section 4. This act shall take effect July 1, 2020.

Page 11 of 11

CODING: Words stricken are deletions; words underlined are additions.
hb0773-00
0
"'m:::c:-
co
..I,
w
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: CS/HB 813 Protection of Vulnerable Investors
SPONSOR(S): Insurance & Banking Subcommittee, McClure
TIED BILLS: IDEN./SIM. BILLS: SB 1672

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Insurance & Banking Subcommittee 15Y,ON,AsCS Hinshelwood Cooper

2) Children, Families & Seniors Subcommittee 11 Y, 0 N Morris Brazzell

3) Commerce Committee Hinshelwoo~amon

SUMMARY ANALYSIS
Although investment fraud is not a new occurrence in the financial marketplace, recent economic forces such as
the rise of technology and the information age have created an environment conducive to financial exploitation.
In an effort to address financial exploitation of seniors, the Financial Industry Regulatory Authority (FINRA}, of
which most securities broker-dealers are members, implemented rules to provide its members with the ability to
place a hold on a disbursement of funds or securities from a customer's account if they have a reasonable basis
to believe that financial exploitation of a "specified adult" has occurred, is occurring, has been attempted, or will
be attempted. The term "specified adult" refers to a natural person age 65 and older; or a natural person age 18
and older who the FINRA member reasonably believes has a mental or physical impairment that renders the
individual unable to protect his or her own interests. These rules took effect February 5, 2018. However, they do
not apply to broker-dealers and investment advisers who are not FINRA members.

Similar to the FINRA rules, the bill allows a dealer or investment adviser to delay a disbursement or transaction
of funds or securities from the account of a specified adult or an account for which a specified adult is a
beneficiary or beneficial owner if the dealer or investment adviser reasonably believes that financial exploitation
of the specified adult has occurred, is occurring, has been attempted, or will be attempted in connection with the
disbursement or transaction. A specified adult is an individual who is age 65 or older or who meets the definition
of "vulnerable adult" under Florida's Adult Protective Services Act.

The suspected financial exploitation must be immediately reported to the Florida Abuse Hotline if so required by
the Adult Protective Services Act. Not later than three business days after placing a delay, the dealer or
investment adviser must notify all parties authorized to transact business on the account as well as any
designated trusted contact, unless such person is believed to be engaged in the suspected financial
exploitation. Not later than three business days after placing or extending a delay, the dealer or investment
adviser must notify the Office of Financial Regulation of the delay or extension.

A delay expires in 15 business days but may be terminated sooner. The dealer or investment adviser may
extend the delay for up to an additional 1O business days. The length of the hold may be shortened or extended
by a court of competent jurisdiction. The bill requires a dealer or investment adviser to annually conduct training
that is reasonably designed to educate associated persons on issues pertaining to financial exploitation. A
dealer, an investment adviser, or an associated person who in good faith and exercising reasonable care
complies with the bill is immune from any administrative or civil liability that might otherwise arise from a delay
in a disbursement or transaction.

The bill has no fiscal impact on local governments, an indeterminate fiscal impact on state government, and an
indeterminate positive fiscal impact on the private sector.

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: h0813d.COM.DOCX
DATE: 2/4/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Background

Vulnerable Adults in Florida

As the country's "baby-boomer'' population reaches retirement age and life expectancy increases, the
nation's elder population is projected to increase from 49.2 million in 2016 1 to 77 million by 2034. 2
Florida has long been a destination state for senior citizens and has the highest percentage of senior
residents in the entire nation. 3 In 2018, Florida had an estimated 4.3 million people age 65 and older,
approximately 20 percent of the state's population. 4 By 2030, this number is projected to increase to 5.9
million, meaning the elderly will make up approximately one quarter of the state's population and will
account for most of the state's growth. 5

National Distribution of Population Ages 65 and Older (2018) 6

.
1111 •
11%-13% • 14%-15% • 16%-17% • 111%-21%

1
Press Release, U.S. Census Bureau, The Nation's Older Population is Still Growing, Census Bureau Reports (June 22, 2017), Release
Number: CB17-100, available at https://www.census.gov/newsroom/press-releases/2017/cb17-1 DO.html (last visited Feb. 3, 2020).
2
Press Release, U.S. Census Bureau, Older People Projected to Outnumber Children for First Time in U.S. History (revised Oct. 8,
2019), available at: https://www.census.gov/newsroom/press-releases/2018/cb18-41-population-projections.html (last visited Feb. 3,
2020).
3
Where Do the Oldest Americans Live?, Pew Research Center, July 9, 2015, available at: https://www.pewresearch.org/fact-
tank/2015/07/09/where-do-the-oldest-americans-live/ (last visited Feb. 3, 2020).
4
U.S. Census Bureau, Annual Estimates of the Resident Population for Selected Age Groups by Sex for the United States, available at:
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk (last visited Feb. 3, 2020).
5
Florida Office of Economic & Demographic Research, Population Data: 2016, 2020, 2025, 2030, 2035, 2040, & 2045, County by Age,
Race, Sex, and Hispanic Origin, pp. 89-90 and 269-70, available at: http://edr.state.fl.us/ContenUpopulation-
demographics/data/Medium_Projections_ARSH.pdf (last visited Feb. 3, 2020); Florida Office of Economic & Demographic Research,
Econographic News: Economic and Demographic News for Decision Makers, 2019, Vol. 1, available at:
http://edr.state.fl.us/contenUpopulation-demographics/reports/econographicnews-2019v1 .pdf (last visited Feb. 3, 2020).
6 Kaiser Family Foundation, State Health Facts, Population Distribution by Age, https://www.kff.org/other/state-indicator/distribution-by-

age/ (last visited Feb. 3, 2020).
STORAGE NAME: h0813d.C0M.D0CX PAGE: 2
DATE: 2/4/2020
The term "disability" as enacted in the Americans with Disabilities Act7 means a physical or mental
impairment that substantially limits one or more major life activities such as caring for oneself,
performing manual tasks, seeing, walking, hearing, standing, learning, thinking, and communicating.
The definition also includes individuals with a previous record of such an impairment and, under certain
circumstances, who are generally regarded as having such an impairment. Types of disabilities include
ambulatory, hearing, cognitive, vision, independent living, and self-care. 8 Disabilities can be related to
conditions present at birth, associated with developmental conditions, related to an injury, or associated
with a longstanding condition. 9

°
Approximately 12. 7% (over 40 million people) of the U.S. population has a disability. 1 Florida's disability
population is estimated at 13.6% (over 2.8 million people). 11

Federal Securities Regulation

The federal Securities Exchange Act of 1934 ('34 Act) requires registration of securities market
participants like broker-dealers and exchanges. 12 Generally, any person acting as "broker" or "dealer'' as
defined in the '34 Act must be registered with the United States Securities and Exchange Commission
(SEC) and join a self-regulatory organization (SRO), like the Financial Industry Regulatory Authority
(FINRA) or a national securities exchange. The '34 Act broadly defines "broker'' as "any person
engaged in the business of effecting transactions in securities for the account of others," which the SEC
has interpreted to include involvement in any of the key aspects of a securities transaction, including
solicitation, negotiation, and execution. 13 A "dealer'' is "any person engaged in the business of buying
and selling securities ... for such person's own account through a broker or otherwise." 14 Certain
entities in the securities industry are often referred to as "broker-dealers" because the institution is a
"broker" when executing trades on behalf of a customer, but is a "dealer'' when executing trades for its
own account. In addition to being registered with the SEC, broker-dealers must comply with state
registration requirements.

State Securities Regulation

In addition to federal securities laws, "Blue Sky Laws" are state laws designed to protect investors
against fraudulent sales practices and activities by requiring companies making offerings of securities to
register their offerings before they can be sold in that state and by requiring licensure for brokerage
firms, their brokers, and investment adviser representatives. 15

In Florida, the Office of Financial Regulation's (OFR's) Division of Securities oversees the Securities and
Investor Protection Act, ch. 517, F.S., which regulates the offer and sale of securities in, to, or from
Florida by firms, branch offices, and individuals affiliated with these firms.

7
42 U.S.C. § 12101.
8
United States Census Bureau, Types of Disabilities, https:/lwww.census.gov/library/visualizations/2019/comm/types-of-disabilities.html
(last visited Feb. 3, 2020).
9
Centers for Disease Control and Prevention, Disability Health Overview, https://www.cdc.gov/ncbddd/disabilityandhealth/disability.html
(last visited Feb. 3, 2020).
10
United States Census Bureau 2018 American Community Survey, Disability Characteristics, https://data.census.gov/cedsci/table?q
=disability%20characteristics&hidePreview=false&tid=ACSST1 Y2018.S 181 O&t=Disability&vintage=2018 (last visited Feb. 3, 2020).
11
United States Census Bureau, https://data.census.gov/cedsci/map?q=disability%20characteristics&hidePreview=false&tid=ACSST1 Y
2018.S1810&t=Disability&vintage=2018&cid=S1810_C01_001 E (last visited Feb. 3, 2020).
12
15 U.S.C. §§ 78c(a)(4) and 780; U.S. Securities and Exchange Commission, Guide to Broker-Dealer Registration,
http://www.sec.gov/divisions/marketreg/bdguide.htm#II (last visited Feb. 3, 2020).
13 Id.
14
15 U.S.C. §§ 78c(a)(5).
15
U.S. Securities and Exchange Commission, Blue Sky Laws, http://www.sec.gov/answers/bluesky.htm (last visited Feb. 3, 2020).
STORAGE NAME: h0813d.C0M.D0CX PAGE: 3
DATE: 2/4/2020
The Securities and Investor Protection Act requires the following individuals or businesses to be
registered with OFR under s. 517.12, F.S., in order for such persons to sell or offer to sell any securities
in or from offices in this state, or to sell securities to persons in this state from offices outside this state: 16
• "Dealers," which include:17
o Any person, other than an associated person registered under ch. 517, F.S., who
engages, either for all or part of her or his time, directly or indirectly, as broker or principal
in the business of offering, buying, selling, or otherwise dealing or trading in securities
issued by another person.
o Any issuer who through persons directly compensated or controlled by the issuer
engages, either for all or part of her or his time, directly or indirectly, in the business of
offering or selling securities which are issued or are proposed to be issued by the issuer.
• "Investment advisers," which: 18
o Include any person who receives compensation, directly or indirectly, and engages for all
or part of her or his time, directly or indirectly, or through publications or writings, in the
business of advising others as to the value of securities or as to the advisability of
investments in, purchasing of, or selling of securities, except a dealer whose performance
of these services is solely incidental to the conduct of her or his business as a dealer and
who receives no special compensation for such services.
o Does not include a "federal covered adviser." 19
• "Associated persons," which include: 20
o With respect to a dealer or investment adviser, any of the following:
• Any partner, officer, director, or branch manager of a dealer or investment adviser
or any person occupying a similar status or performing similar functions;
• Any natural person directly or indirectly controlling or controlled by such dealer or
investment adviser, other than an employee whose function is only clerical or
ministerial; or
• Any natural person, other than a dealer, employed, appointed, or authorized by a
dealer, investment adviser, or issuer to sell securities in any manner or act as an
investment adviser as defined ins. 517.021, F.S.
o With respect to a federal covered adviser, any person who is an investment adviser
representative and who has a place of business in this state.

Vulnerability of Seniors to Investment Fraud

Although investment fraud is not a new occurrence in the financial marketplace, recent economic forces
have created an environment conducive to swindlers practicing their craft. 21 Such economic forces
include: 22
• The decline of traditional pensions, which has resulted in fewer Americans relying on expert
money managers to invest their retirement funds in a fast-moving and complex investment
market.
• The rise of technology, which has made it significantly easier for scammers to reach a broad set
of investors with sophisticated robotic and predictive telephone dialing, email, television, and
social media.

16 S. 517.12(1), F.S.
17
S. 517.021 (6)(a), F.S. The term "dealer'', as defined under Florida law, encompasses the definitions of "broker'' and "dealer" under
federal law.
18
S. 517.021(14)(a), F.S.
19
S. 517.021 (9), (14)(b)9., F.S. A federal covered adviser must be registered under federal law and must provide a notice-filing to OFR.
Ss. 517.021 and 517.1201, F.S.
20 S. 517.021(2), F.S.
21
Doug Shadel and Karla Pak, AARP Investment Fraud Vulnerability Study, MRP (2017), https://www.aarp.org/contenVdam/aarp/
research/surveys_statistics/econ/2017/investment-fraud-vulnerability.doi.10.26419%252Fres.00150.001.pdf (last visited Feb. 3, 2020).
22 Id.
STORAGE NAME: h0813d.COM.DOCX PAGE: 4
DATE: 2/4/2020
• The rise of the information age, which has given scammers unlimited access to personal
information about investors, making it easier for them to customize their messages and harder
for investors to discern who is truly on their side.

Older Americans have accumulated an estimated $18 trillion in assets. 23 In recent years, financial
research has focused on understanding the vulnerability of seniors to investment fraud. In a 2012 study
prepared for the FINRA Investor Education Foundation, adults 65 and older were found to be more likely
than those who are younger to receive solicitations in the mail and over the telephone. 24 Survey
respondents age 65 and older were also more likely to be solicited for fraud, more likely to engage with
potentially fraudulent financial opportunities, and more likely to have lost money. 25

A more recent study sponsored by AARP sought to identify psychological, behavioral, and demographic
risk factors that might make investors more vulnerable to investment fraud. 26 The study identified the
following psychological risk factors: 27
• Belief that accumulation of wealth is an important measure of success in life.
• Openness to new opportunities presented by salespersons.
• Belief that the most profitable investments are those not regulated by the government.
• Belief in taking chances with one's money if those chances are likely to pay off.

Many behavioral factors that put victims at risk flow directly from the psychological risk factors above. 28
The mindset of openness to sales pitches may result in signaling a desire to be pitched with investment
opportunities. 29 Compared to the general investor population, more fraud victims engaged in active
trading of five or more trades in a year, and the victims were more likely to make remote investments. 30
As for demographic risk factors, the study found that many more of the victims were older (age 70+),
male, married, and veterans. 31

In 2013, the Financial Crimes Enforcement Network (FinCEN), which receives and maintains the
database of suspicious activity reports (SARs), 32 introduced electronic SAR filing with a designated
category for "elder financial exploitation". 33 Recent analysis of SARs related to elder financial
exploitation has revealed the following:
• Among the SARs that reported a loss to an older adult, the average amount lost was $34,200; in
7 percent of these SARs, the loss exceeded $100,000. 34
• One-third of the individuals who lost money were ages 80 and older, and adults ages 70 to 79
had the highest average monetary loss ($45,300). 35
• Where an individual has incurred an actual loss, the amount of loss reflects substantial financial
hardship for elders: The median suspicious activity amount from one sample of scam-related

23
National Conference of State Legislatures, Combatting Elder Financial Exploitation, https://www.ncsl.org/research/financial-services-
and-commerce/combatting-elder-financial-exploitation.aspx (last visited Feb. 3, 2020).
24
FINRA Investor Education Foundation, Financial Fraud and Fraud Susceptibility in the United States: Research Report from a 2012
National Survey, 11 (Sept. 2013), https://www.finrafoundation.org/sites/finrafoundation/files/Financial-Fraud-And-Fraud-Susceptibility-ln-
The-United-States_O_O_O.pdf (last visited Feb. 3, 2020).
25 Id. at 17-18.
26 Doug Shadeland Karla Pak, supra note 21, at 14.
21 Id.
26 Id. at 15.
29 Id.
3o Id.
31
Id. at 6 and 15.
32 A SAR "is a document that financial institutions, and those associated with their business, must file with the Financial Crimes

Enforcement Network (FinCEN) whenever there is a suspected case of money laundering or fraud. These reports are tools to help
monitor any activity within finance-related industries that is deemed out of the ordinary, a precursor of illegal activity, or might threaten
public safety." Thomson Reuters, What is a suspicious activity report?, https://legal.thomsonreuters.com/en/insights/articles/what-is-a-
suspicious-activity-report (last visited Feb. 3, 2020).
33
Consumer Financial Protection Bureau, Suspicious Activity Reports on Elder Financial Exploitation: Issues and Trends, 3 (Feb. 2019),
https://files.consumerfinance.gov/f/documents/cfpb_suspicious-activity-reports-elder-financial-exploitation_report.pdf (last visited Feb. 3,
2020).
34 Id. at 4.

35 Id.
STORAGE NAME: h0813d.COM.DOCX PAGE: 5
DATE: 2/4/2020
SARs was $6,105, and for theft-related SARs it was $15,964. These amounts represent 16 and
41 percent, respectively, of the median income of $38,515 for households maintained by
individuals 65 and over in 2015 (as reported by the U.S. Census Bureau). 36
• The total number of SAR filings and total suspicious activity amounts increased 20 percent and
30 percent, respectively, each year during the period studied (October 2013 - August 2019). 37

FINRA Rules Relating to Financial Exploitation of Seniors

FINRA is an SRO regulated by the United States Security Exchange Commission. Most broker-dealers
in the United States are members of FINRA. As members, such broker-dealers are subject to FINRA
rules and examination by FINRA. In an effort to address financial exploitation of seniors, FINRA
implemented rules to provide its members with a way to respond to situations in which they have a
reasonable basis to believe that financial exploitation of a "specified adult" has occurred, is occurring,
has been attempted, or will be attempted. 38

FINRA defines "specified adult" and "financial exploitation" as follows:
• "Specified adult" is a natural person age 65 and older; or ... a natural person age 18 and older
who the [FINRA] member reasonably believes has a mental or physical impairment that renders
the individual unable to protect his or her own interests. 39
• "Financial exploitation" means:
o The wrongful or unauthorized taking, withholding, appropriation, or use of a specified
adult's funds or securities; or
o Any act or omission by a person, including through the use of a power of attorney,
guardianship, or any other authority regarding a specified adult, to:
• Obtain control, through deception, intimidation or undue influence, over the
specified adult's money, assets, or property; or
• Convert the specified adult's money, assets, or property. 40

Under the new rules, FINRA members have the ability to contact a customer's designated trusted
contact person and, when appropriate, place a temporary hold on a disbursement of funds or securities
from a customer's account. 41 The temporary hold expires after 15 business days, but the FINRA
member may extend the hold by up to an additional 10 business days if the member's internal review of
facts and circumstances supports its reasonable belief that the financial exploitation has occurred, is
occurring, has been attempted, or will be attempted. 42

These rules took effect February 5, 2018. 43 However, they do not apply to broker-dealers and
investment advisers who are not FINRA members.

Mandatory Reporting for Abuse or Exploitation of Vulnerable Adults

The Florida Department of Children and Families (DCF) houses the Adult Protective Services Program
(APS). APS is responsible for preventing further harm to vulnerable adults who are victims of abuse,

36
FinCen, Financial Trend Analysis: Elders Face Increased Financial Threat from Domestic and Foreign Actors, 7 (Dec. 2019),
https://www.fincen.gov/sites/default/files/shared/Fi nCEN%20F inancial%20Trend%20Analysis%20Elders_FINAL %20508. pdf (last visited
Feb. 3, 2020).
37
Id. at 1.
38
FINRA, Regulatory Notice 17-11 (Financial Exploitation of Seniors) (Mar. 2017), https://www.finra.org/sites/default/files/Regulatory-
Notice-17-11.pdf (last visited Feb. 3, 2020).
39 FINRA, Rule 2165. Financial Exploitation of Specified Adults, https://www.finra.org/rules-guidance/rulebooks/finra-rules/2165 (last

visited Feb. 3, 2020).
40 Id.
41 Id.
42 Id.
43 Id.
STORAGE NAME: h0813d.COM.DOCX PAGE: 6
DATE: 2/4/2020
neglect, exploitation, or self-neglect. 44 Florida law currently contains a mandatory reporting requirement
in ch. 415, F.S., the Adult Protective Services Act (APS Act), which states that any person "who knows,
or has reasonable cause to suspect, that a vulnerable adult has been or is being abused, neglected, or
exploited shall immediately report such knowledge or suspicion to the Florida Abuse Hotline." 45

The APS Act defines "vulnerable adult" and "exploitation" as follows:
• "Vulnerable adult" is a person 18 years of age or older whose ability to perform the normal
activities of daily living or to provide for his or her own care or protection is impaired due to a
mental, emotional, sensory, long-term physical, or developmental disability or dysfunction, or
brain damage, or the infirmities of aging. 46
• "Exploitation" means a person who: 47
o Stands in a position of trust and confidence with a vulnerable adult and knowingly, by
deception or intimidation, obtains or uses, or endeavors to obtain or use, a vulnerable
adult's funds, assets, or property with the intent to temporarily or permanently deprive a
vulnerable adult of the use, benefit, or possession of the funds, assets, or property for the
benefit of someone other than the vulnerable adult; or
o Knows or should know that the vulnerable adult lacks the capacity to consent, and
obtains or uses, or endeavors to obtain or use, the vulnerable adult's funds, assets, or
property with the intent to temporarily or permanently deprive the vulnerable adult of the
use, benefit, or possession of the funds, assets, or property for the benefit of someone
other than the vulnerable adult.
• "Exploitation" may include, but is not limited to: 48
o Breaches of fiduciary relationships, such as the misuse of a power of attorney or the
abuse of guardianship duties, resulting in the unauthorized appropriation, sale, or transfer
of property;
o Unauthorized taking of personal assets;
o Misappropriation, misuse, or transfer of moneys belonging to a vulnerable adult from a
personal or joint account; or
o Intentional or negligent failure to effectively use a vulnerable adult's income and assets
for the necessities required for that person's support and maintenance.

The Florida Abuse Hotline screens allegations of child and adult abuse and neglect to determine
whether the information meets the criteria of an abuse report. 49 If the criteria is met, a protective
investigation is initiated to confirm whether or not there is evidence that abuse, neglect, or exploitation
occurred; whether there is an immediate or long-term risk to the victim; and whether the victim needs
additional services to safeguard his or her well-being. 50 APS services include: 51
• On-site investigation of reports of alleged abuse, neglect, exploitation or self-neglect;
• Determination of immediate risk to the victim and provision of necessary emergency services;
• Evaluation of the need for and provision of protective supervision; and,
• Provision of on-going protective services.

A person who participates in making a report to the Florida Abuse Hotline or who participates in a
judicial proceeding resulting therefrom "is presumed to be acting in good faith and, unless lack of good
faith is shown by clear and convincing evidence, is immune from any liability, civil or criminal, that
otherwise might be incurred or imposed." 52

44
Florida Department of Children and Families, Adult Protective Services: Protecting Vulnerable Adults,
https://www.myflfamilies.com/service-programs/adult-protective-services/protecting-vulnerable-adults.shtml (last visited Feb. 3, 2020).
45 S. 415.1034(1)(a), F.S.; Florida Department of Children and Families, Abuse Hotline: Report Abuse Online,

https://www.myflfamilies.com/service-programs/abuse-hotline/report-online.shtml (last visited Feb. 3, 2020).
46 S. 415.102(28), F.S.
47
S. 415.102(8), F.S.
46 Id.
49 Florida Department of Children and Families, supra note 43.
50 Id.
51 Id.
52 S. 415.1036(1), F.S.
STORAGE NAME: h0813d.C0M.D0CX PAGE: 7
DATE: 2/4/2020
Effect of the Bill

The bill allows a dealer or investment adviser to delay a disbursement or transaction of funds or
securities from an account of a specified adult or an account for which a specified adult is a beneficiary
or beneficial owner if the dealer or investment adviser reasonably believes that financial exploitation of
the specified adult has occurred, is occurring, has been attempted, or will be attempted in connection
with the disbursement or transaction. A "specified adult" is an individual who is age 65 or older or who
meets the definition of "vulnerable adult" under the APS Act.

The bill defines "financial exploitation" to mean "the wrongful or unauthorized taking, withholding,
appropriation, or use of money, assets; or property of a specified adult, or any act or omission by a
person, including through the use of a power of attorney, guardianship, or conservatorship of a specified
adult, to:
• Obtain control over the specified adult's money, assets, or property through deception,
intimidation, or undue influence to deprive him or her of the ownership, use, benefit, or
possession of the money, assets, or property; or
• Convert the specified adult's money, assets, or property to deprive him or her of the ownership,
use, benefit, or possession of the money, assets, or property."

The bill adds dealers, investment advisers, and associated persons to the list of specified mandatory
reporters under the APS Act. If the financial exploitation involves a specified adult who meets the
definition of a "vulnerable adult" under the APS Act, the dealer, investment adviser, or associated
person must immediately notify DCF, via the Florida Abuse Hotline. 53

Additionally, not later than three business days after placing a delay, the dealer or investment adviser
must:
• Notify in writing all parties authorized to transact business on the account as well as any
designated trusted contact, 54 using the contact information provided for the account, with the
exception of any party the dealer or investment adviser reasonably believes has engaged in, is
engaging in, has attempted to engage in, or will attempt to engage in the suspected financial
exploitation of the specified adult. The notice, which may be provided electronically, must provide
the reason for the delay.
• Notify OFR of the delay by telephone, using a number designated by the OFR, or electronically
on a form prescribed by rule. The notice must identify the dealer or investment adviser that made
the delay.

The dealer or investment adviser must immediately initiate an internal review of the facts and
circumstances that formed the basis of the reasonable belief of financial exploitation.

A delay expires 15 business days after the date on which the delay was placed. The dealer or
investment adviser may extend the delay for up to 10 business days if its review of available facts and
circumstances continues to support its reasonable belief that financial exploitation of the specified adult
has occurred, is occurring, has been attempted, or will be attempted. Not later than three business days
after an extension, the dealer or investment adviser must notify OFR of the extension. The notice must
identify the dealer or investment adviser that extended the delay and the date on which the delay was
originally made. The length of the delay may be shortened or extended at any time by a court of
competent jurisdiction. The bill does not prevent a dealer or investment adviser from terminating a delay
after communication with the parties authorized to transact business on the account and any trusted
contact on the account.

53 Chapter 415, F .S., does not require a person to report suspected exploitation of an adult age 65 or older who does not meet the

definition of "vulnerable adult".
54
The bill defines "trusted contact" to mean "a natural person 18 years of age or older who the account owner has expressly identified
and who is recorded in a dealer's or investment adviser's books and records as a person who may be contacted about the account."
STORAGE NAME: h0813d.COM.DOCX PAGE: 8
DATE: 2/4/2020
A dealer or investment adviser must make available to OFR, upon request, all records relating to a delay
made by the dealer or investment adviser, as prescribed by rule.

Before placing a delay on a disbursement or transaction, a dealer or investment adviser must develop
training policies or programs reasonably designed to educate associated persons on issues pertaining
to financial exploitation; must conduct training for all associated persons at least annually and maintain a
written record of all trainings conducted; and develop, maintain, and enforce written procedures
regarding the manner in which suspected financial exploitation is reviewed internally, including, if
applicable, the manner in which suspected financial exploitation is required to be reported to supervisory
personnel. The dealer or investment adviser must maintain a written record of compliance with these
training requirements.

A dealer, an investment adviser, or an associated person who in good faith and exercising reasonable
care complies with the bill is immune from any administrative or civil liability that might otherwise arise
from a delay in a disbursement or transaction. The bill does not create new rights for or impose new
obligations on a dealer, an investment adviser, or an associated person under other applicable law. In
addition, the bill does not limit the right of a dealer, an investment adviser, or an associated person to
otherwise refuse or place a delay on a disbursement or transaction under other applicable law or under
an applicable customer agreement. Absent a reasonable belief of financial exploitation, the bill does not
alter a dealer's, an investment adviser's, or an associated person's obligation to comply with instructions
from a client to buy or sell securities, disburse funds or transfer securities from an account, close an
account, or transfer an account to another dealer, investment adviser, or associated person.

The bill provides the following statement of legislative findings and intent:
The Legislature finds that many persons in this state, because of age or disability, are at
increased risk of financial exploitation and loss of their assets, funds, investments, and
investment accounts. The Legislature further finds that senior investors in this state are
at a statistically higher risk of being targeted for financial exploitation, regardless of
diminished capacity or other disability, because of their accumulation of substantial
assets and wealth compared to younger age groups. In enacting this section, the
Legislature recognizes the freedom of specified adults to manage their assets, make
investment choices, and spend their funds, and intends that such rights may not be
infringed absent a reasonable belief of financial exploitation as provided in this section.
The Legislature therefore intends to provide for the prevention of financial exploitation of
such persons. The Legislature intends to encourage the constructive involvement of
securities dealers, investment advisers, and associated persons who take action based
upon the reasonable belief that specified adults with investment accounts have been or
are the subject of financial exploitation, and to provide securities dealers, investment
advisers, and associated persons immunity from liability for taking actions as authorized
herein. The Legislature intends to balance the rights of specified adults to direct and
control their assets, funds, and investments and exercise their constitutional rights
consistent with due process with the need to provide securities dealers, investment
advisers, and associated persons the ability to place narrow, time-limited restrictions on
these rights in an effort to decrease specified adults' risk of loss due to abuse, neglect,
or financial exploitation.

STORAGE NAME: h0813d.COM.D0CX PAGE: 9
DATE: 2/4/2020
B. SECTION DIRECTORY:
Section 1. Amends s. 415.1034, F.S., relating to mandatory reporting of abuse, neglect, or exploitation
of vulnerable adults; mandatory reports of death.

Section 2. Creates s. 517.34, F.S., relating to protection of specified adults.

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

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:
The fiscal impact to OFR is indeterminate and depends on the number of reports of delays or
extensions received from OFR licensees. 55 In the event that OFR receives a large number of reports,
OFR may need an additional FTE employee in the future to accommodate the new workload. 56 OFR
would also incur insignificant costs associated with rulemaking, which can be absorbed within its
current budget. 57 There is no fiscal impact to DCF because current law already mandates that any
person report suspected abuse, neglect, or exploitation of vulnerable adults to the Florida Abuse
Hotline; and investigation of such allegation is a mandated function for the agency. 58

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
As permitted by the bill, the placement of a delay on a disbursement or transaction, may decrease
losses to investors who are financially preyed upon because such a delay may prevent the money from
ever getting into the hands of the bad actor. Once the bad actor receives the money, it is difficult, or in
some cases impossible, to ever recover the money. Given the inability to quantify avoidance of future
losses to investors, the impact on the private sector is indeterminate.

D. FISCAL COMMENTS:
None.

55
Email from Alex Anderson, Director of Governmental Relations for OFR, Fiscal impact HB 813 (Jan. 1O, 2020).
56 fd.
57 Id.
58 Florida Department of Children and Families, Agency Analysis of 2020 House Bill 813 (Jan 6, 2020).
STORAGE NAME: h0813d.COM.DOCX PAGE: 10
DATE: 2/4/2020
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 requires rulemaking for creation of a form for the dealer or investment adviser to report a delay
to OFR and requires rulemaking related to records that the dealer or investment adviser must make
available to OFR upon request. Additionally, ch. 517, F.S., provides the Financial Services
Commission 59 authority to "adopt rules ... to implement the provisions of [the chapter] conferring
powers or duties upon [OFR], including, without limitation, adopting rules and forms governing reports."
S. 517.03(1 ), F.S.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
On January 15, 2020, the Insurance & Banking Subcommittee considered one amendment, which was
adopted, and reported the bill favorably as a committee substitute. The committee substitute makes the
following changes to the bill:
• Adds legislative findings and intent.
• Removes language that expressly states what facts and circumstances may form the basis of the
dealer's or investment adviser's reasonable belief of financial exploitation.
• Requires the creation of a form by rule for the dealer or investment adviser to report a delay to OFR.
• Amends the required content of the report to OFR to require the name of the investment adviser and
the date on which the delay was made, rather than the reason for the delay.
• Removes language that would have allowed the Department of Children and Families to provide the
status or result of any investigation to the reporting dealer or investment adviser.
• Requires the dealer or investment adviser to immediately initiate an internal review of the facts and
circumstances that formed the basis of the reasonable belief of financial exploitation.
• Specifies that the notification to OFR of any extension of the delay must contain the date on which
the delay was originally made.
• Requires rulemaking related to records that the dealer or investment adviser must make available to
OFR upon request.
• Amends the provision that grants civil and administrative immunity to the dealer, investment adviser,
or associated person for placing a delay on a disbursement or transaction.
• Requires dealers and investment advisers, before placing a hold, to:
o Develop and conduct annual training for associated persons and maintain written records of
compliance with such requirement; and
o Develop, maintain, and enforce written procedures regarding the manner in which suspected
financial exploitation is reviewed internally.
• Makes other technical changes.

59 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: h0813d.C0M.D0CX PAGE: 11
DATE: 2/4/2020
The staff analysis has been updated to reflect the committee substitute.

STORAGE NAME: h0813d.COM.DOCX PAGE: 12
DATE: 2/4/2020
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 813 2020

1 A bill to be entitled
2 An act relating to the protection of vulnerable
3 investors; amending s. 415.1034, F.S.; requiring
4 securities dealers, investment advisers, and
5 associated persons to immediately report knowledge or
6 suspicion of abuse, neglect, or exploitation of
7 vulnerable adults to the Department of Children and
8 Families' central abuse hotline; creating s. 517.34,
9 F.S.; providing definitions; providing legislative
10 findings and intent; authorizing dealers and
11 investment advisers to delay certain disbursements or
12 transactions based on a reasonable belief of financial
13 exploitation of a specified adult under certain
14 circumstances; requiring a dealer or investment
15 adviser to notify certain persons and the Office of
16 Financial Regulation of such delays within a specified
17 timeframe; requiring a dealer or investment adviser to
18 review the basis for a reasonable belief of financial
19 exploitation of a specified adult; specifying the
20 expiration of such delays; authorizing a dealer or
21 investment adviser to extend a delay under certain
22 circumstances; requiring a dealer or investment
23 adviser to notify the office within a specified
24 timeframe after such extension begins; providing that
25 the length of such delays may be shortened or extended

Page 1 of 9

CODING: Words stricken are deletions; words underlined are additions.
hb0813-01-c1
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

CS/HB 813 2020

26 by a court of competent jurisdiction; providing that
27 delays may be terminated by dealers or investment
28 advisers under certain circumstances; requiring that
29 certain records be made available to the office;
30 providing immunity from administrative and civil
31 liability for dealers, investment advisers, and
32 associated persons who in good faith and exercising
33 reasonable care comply with specified provisions;
34 requiring dealers and investment advisers to develop
35 certain training policies or programs; requiring
36 dealers and investment advisers to conduct annual
37 training for associated persons and maintain written
38 records of compliance with such requirement; requiring
39 dealers and investment advisers to develop, maintain,
40 and enforce certain written procedures; providing
41 construction; providing an effective date.
42
43 Be It Enacted by the Legislature of the State of Florida:
44
45 Section 1. Paragraph (a) of subsection (1) of section
46 415.1034, Florida Statutes, is amended to read:
47 415.1034 Mandatory reporting of abuse, neglect, or
48 exploitation of vulnerable adults; mandatory reports of death.-
49 (1) MANDATORY REPORTING.-
50 (a) Any person, including, but not limited to, any:

Page 2 of 9

CODING: Words stricken are deletions; words underlined are additions.
hb0813-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 813 2020

51 1. Physician, osteopathic physician, medical examiner,
52 chiropractic physician, nurse, paramedic, emergency medical
53 technician, or hospital personnel engaged in the admission,
54 examination, care, or treatment of vulnerable adults;
55 2. Health professional or mental health professional other
56 than one listed in subparagraph 1.;
57 3. Practitioner who relies solely on spiritual means for
58 healing;
59 4. Nursing home staff; assisted living facility staff;
60 adult day care center staff; adult family-care home staff;
61 social worker; or other professional adult care, residential, or
62 institutional staff;
63 5. State, county, or municipal criminal justice employee
64 or law enforcement officer;
65 6. Employee of the Department of Business and Professional
66 Regulation conducting inspections of public lodging
67 establishments under s. 509.032;
68 7. Florida advocacy council or Disability Rights Florida
69 member or a representative of the State Long-Term Care Ombudsman
70 Program; -e-r
71 8. Bank, savings and loan, or credit union officer,
72 trustee, or employee; or
73 9. Dealer, investment adviser, or associated person under
74 chapter 517,
75

Page 3 of 9

CODING: Words stricken are deletions; words underlined are additions.
hb0813-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 813 2020

76 who knows, or has reasonable cause to suspect, that a vulnerable
77 adult has been or is being abused, neglected, or exploited must
78 shall inunediately report such knowledge or suspicion to the
79 central abuse hotline.
80 Section 2. Section 517.34, Florida Statutes, is created to
81 read:
82 517.34 Protection of specified adults.-
83 (1) As used in this section, the term:
84 (a) "Financial exploitation" means the wrongful or
85 unauthorized taking, withholding, appropriation, or use of
86 money, assets, or property of a specified adult; or any act or
87 omission by a person, including through the use of a power of
88 attorney, guardianship, or conservatorship of a specified adult,
89 to:
90 1. Obtain control over the specified adult's money,
91 assets, or property through deception, intimidation, or undue
92 influence to deprive him or her of the ownership, use, benefit,
93 or possession of the money, assets, or property; or
94 2. Convert the specified adult's money, assets, or
95 property to deprive him or her of the ownership, use, benefit,
96 or possession of the money, assets, or property.
97 (b) "Specified adult" means a natural person 65 years of
98 age or older, or a vulnerable adult as defined ins. 415.102.
99 (c) "Trusted contact" means a natural person 18 years of
100 age or older who the account owner has expressly identified and

Page4of9

CODING: Words stricken are deletions; words underlined are additions.
hb0813-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 813 2020

101 who is recorded in a dealer's or investment adviser's books and
102 records as the person who may be contacted about the account.
103 (2) The Legislature finds that many persons in this state,
104 because of age or disability, are at increased risk of financial
105 exploitation and loss of their assets, funds, investments, and
106 investment accounts. The Legislature further finds that senior
107 investors in this state are at a statistically higher risk of
108 being targeted for financial exploitation, regardless of
109 diminished capacity or other disability, because of their
110 accumulation of substantial assets and wealth compared to
111 younger age groups. In enacting this section, the Legislature
112 recognizes the freedom of specified adults to manage their
113 assets, make investment choices, and spend their funds, and
114 intends that such rights may not be infringed absent a
115 reasonable belief of financial exploitation as provided in this
116 section. The Legislature therefore intends to provide for the
117 prevention of financial exploitation of such persons. The
118 Legislature intends to encourage the constructive involvement of
119 securities dealers, investment advisers, and associated persons
120 who take action based upon the reasonable belief that specified
121 adults with investment accounts have been or are the subject of
122 financial exploitation, and to provide securities dealers,
123 investment advisers, and associated persons immunity from
124 liability for taking actions as authorized herein. The
125 Legislature intends to balance the rights of specified adults to

Page 5 of 9

CODING: Words stricken are deletions; words underlined are additions.
hb0813-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 813 2020

126 direct and control their assets, funds, and investments and
127 exercise their constitutional rights consistent with due process
128 with the need to provide securities dealers, investment
129 advisers, and associated persons the ability to place narrow,
130 time-limited restrictions on these rights in an effort to
131 decrease specified adults' risk of loss due to abuse, neglect,
132 or financial exploitation.
133 (3) A dealer or investment adviser may delay a
134 disbursement or transaction of funds or securities from an
135 account of a specified adult or an account for which a specified
136 adult is a beneficiary or beneficial owner if all of the
137 following apply:
138 (a) The dealer or investment adviser reasonably believes
139 that financial exploitation of the specified adult has occurred,
140 is occurring, has been attempted, or will be attempted in
141 connection with the disbursement or transaction.
142 (b) Not later than 3 business days after the date on which
143 the delay was first placed, the dealer or investment adviser
144 notifies in writing all parties authorized to transact business
145 on the account and any trusted contact on the account, using the
146 contact information provided for the account, with the exception
147 of any party the dealer or investment adviser reasonably
148 believes has engaged in, is engaging in, has attempted to engage
149 in, or will attempt to engage in the suspected financial
150 exploitation of the specified adult. The notice, which may be

Page 6 of 9

CODING: Words stricken are deletions; words underlined are additions.
hb0813-01-c1
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

CS/HB 813 2020

151 provided electronically, must provide the reason for the delay.
152 (c) Not later than 3 business days after the date on which
153 the delay was first placed, the dealer or investment adviser
154 notifies the office of the delay by telephone using a number
155 designated by the office for such purpose or electronically on a
156 form prescribed by commission rule. The notice must identify the
157 dealer or investment adviser that made the delay, the name of
158 the person who authorized the delay, and the date on which the
159 delay was made.
160 (d) The dealer or investment adviser immediately initiates
161 an internal review of the facts and circumstances that caused
162 the dealer or investment adviser to reasonably believe that the
163 financial exploitation of the specified adult has occurred, is
164 occurring, has been attempted, or will be attempted.
165 (4) A delay on a disbursement or transaction under
166 subsection (3) expires 15 business days after the date on which
167 the delay was first placed. However, the dealer or investment
168 adviser may extend the delay for up to 10 additional business
169 days if the dealer's or investment adviser's review of the
170 available facts and circumstances continues to support such
171 dealer's or investment adviser's reasonable belief that
172 financial exploitation of the specified adult has occurred, is
173 occurring, has been attempted, or will be attempted. A dealer or
174 investment adviser that extends a delay shall notify the office
175 in accordance with paragraph (3) (c) not later than 3 business

Page 7 of 9

CODING: Words stricken are deletions; words underlined are additions.
hb0813-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 813 2020

176 days after the date on which the extension was applied. The
177 notice must identify the dealer or investment adviser that
178 extended the delay and the date on which the delay was
179 originally made. The length of the delay may be shortened or
180 extended at any time by a court of competent jurisdiction. This
181 subsection does not prevent a dealer or investment adviser from
182 terminating a delay after communication with the parties
183 authorized to transact business on the account and any trusted
184 contact on the account.
185 (5) A dealer or investment adviser must make available to
186 the office, upon request, all records relating to a delay made
187 by the dealer or investment adviser pursuant to this section, as
188 prescribed by commission rule.
189 (6) A dealer, an investment adviser, or an associated
190 person who in good faith and exercising reasonable care complies
191 with this section is immune from any administrative or civil
192 liability that might otherwise arise from such delay in a
193 disbursement or transaction in accordance with this section.
194 This subsection does not supersede or diminish any immunity
195 granted under chapter 415.
196 (7) Before placing a delay on a disbursement or
197 transaction pursuant to this section, a dealer or an investment
198 adviser shall do all of the following:
199 (a) Develop training policies or programs reasonably
200 designed to educate associated persons on issues pertaining to

Page 8 of 9

CODING: Words strioken are deletions; words underlined are additions.
hb0813-01-c1
FLORIDA H O U S E 0 F REPRESENTATIVES

CS/HB 813 2020

201 financial exploitation.
202 (b) Conduct training for all associated persons at least
203 annually and maintain a written record of all trainings
204 conducted.
205 (c) Develop, maintain, and enforce written procedures
206 regarding the manner in which suspected financial exploitation
207 is reviewed internally, including, if applicable, the manner in
208 which suspected financial exploitation is required to be
209 reported to supervisory personnel.
210 (8) Absent a reasonable belief of financial exploitation
211 as provided in this section, this section does not alter a
212 dealer's, an investment adviser's, or an associated person's
213 obligation to comply with instructions from a client to buy or
214 sell securities, disburse funds or transfer securities from an
215 account, close an account, or transfer an account to another
216 dealer, investment adviser, or associated person.
217 (9) This section does not create new rights for or impose
218 new obligations on a dealer, an investment adviser, or an
219 associated person under other applicable law. This section does
220 not limit the right of a dealer, an investment adviser, or an
221 associated person to otherwise refuse or place a delay on a
222 disbursement or transaction under other applicable law or under
223 an applicable customer agreement.
224 Section 3. This act shall take effect July 1, 2020.

Page 9 of 9

CODING: Words stricken are deletions; words underlined are additions.
hb0813-01-c1
COMMERCE COMMITTEE

HB 813 by Rep. McClure
Protection of Vulnerable Investors

AMENDMENT SUMMARY
February 6, 2020

Amendment 1 by Rep. Donalds (line 154): The amendment:
• Specifies information that must be contained in the notification to the OFR when a dealer
or investment adviser places a delay.
• Requires that the notification of a delay or an extension be submitted on a form
prescribed by rule.
• Makes a technical change.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 813 (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: Commerce Committee
2 Representative Donalds offered the following:
3
4 Amendment
5 Remove lines 154-186 and insert:
6 notifies the office of the delay electronically on a form
7 prescribed by commission rule. The form must be consistent with
8 the purposes of this section and may include only the following
9 information:
10 1. The date the notification is submitted to the office.
11 2. The date on which the delay was first placed.
12 3. The following information about the specified adult:
13 a. Gender.
14 b. Age.
15 c. Zip code of residence address.

811391 - h0813-line 154.docx
Published On: 2/5/2020 6:42:34 PM
Page 1 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 813 (2020)
Amendment No. 1

16 4. The following information about the dealer or
17 investment adviser who placed the delay:
18 a. Name.
19 b. Title.
20 c. Firm name.
21 d. Business address.
22 5. A section with the following questions for which the
23 only allowable responses are "Yes" or "No":
24 a. Is financial exploitation of a specified adult
25 suspected in connection with a transaction or disbursement?
26 b. Are funds currently at risk of being lost?
27
28 The form must contain substantially the following statement in
29 conspicuous type: "The office may take disciplinary action
30 against any person making a knowing and willful
31 misrepresentation on this form."
32 (d) The dealer or investment adviser immediately initiates
33 an internal review of the facts and circumstances that caused
34 the dealer or investment adviser to reasonably believe that the
35 financial exploitation of the specified adult has occurred, is
36 occurring, has been attempted, or will be attempted.
37 (4) A delay on a disbursement or transaction under
38 subsection (3) expires 15 business days after the date on which
39 the delay was first placed. However, the dealer or investment
40 adviser may extend the delay for up to 10 additional business

811391 - h0813-line 154.docx
Published On: 2/5/2020 6:42:34 PM
Page 2 of 3
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 813 (2020)
Amendment No. 1

41 days if the dealer's or investment adviser's review of the
42 available facts and circumstances continues to support such
43 dealer's or investment adviser's reasonable belief that
44 financial exploitation of the specified adult has occurred, is
45 occurring, has been attempted, or will be attempted. A dealer or
46 investment adviser that extends a delay shall notify the office
47 on a form prescribed by commission rule not later than 3
48 business days after the date on which the extension was applied.
49 The notice must identify the dealer or investment adviser that
50 extended the delay and the date on which the delay was
51 originally made. The length of the delay may be shortened or
52 extended at any time by a court of competent jurisdiction. This
53 subsection does not prevent a dealer or investment adviser from
54 terminating a delay after communication with the parties
55 authorized to transact business on the account and any trusted
56 contact on the account.
57 (5) A dealer or investment adviser must make available to
58 the office, upon request, all records relating to a delay placed
59

811391 - h0813-line 154.docx
Published On: 2/5/2020 6:42:34 PM
Page 3 of 3
:::c:
m
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1155 Legislative Review of Proposed Regulation of Unregulated Functions
SPONSOR(S): Hage
TIED BILLS: IDEN./SIM. BILLS: SB 1614

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Business & Professions Subcommittee 13 Y, 0 N Brackett Anstead

2) Oversight, Transparency & Public Management 10 Y, 2 N Villa Smith
Subcommittee

3) Commerce Committee Brackett Hamon

SUMMARY ANALYSIS
A sunrise review is a formal process of review requiring a cost-benefit analysis be conducted before legislation
proposing to regulate an unregulated profession or occupation is enacted.

Florida's sunrise review, which was enacted in 1991, is called the Sunrise Act. The Sunrise Act requires the
Legislature to consider certain factors before determining whether to regulate an unregulated profession or
occupation. Those factors include:
• Whether the unregulated practice of the profession or occupation will substantially harm or endanger
the public health, safety, or welfare;
• Whether the practice of the profession or occupation requires specialized skill or training;
• Whether the regulation will have an unreasonable effect on job creation or job retention in the state;
• Whether the public is or can be effectively protected by other means; and
• Whether the overall cost-effectiveness and economic impact of the proposed regulation, including the
indirect costs to consumers, will be favorable.

The bill amends the Sunrise Act to:
• Provide that in addition to applying to legislation that regulates an unregulated profession or
occupation, the Sunrise Act also applies to legislation that substantially expands regulation of an
already regulated profession or occupation;
• Require proponents of a regulation to provide certain information to the President of the Senate, the
Speaker of the House of Representatives, and the state agency that is proposed to have jurisdiction of
the regulation, no later than 30 days prior to the session in which the legislation is to be filed; and
• Require the state agency proposed to have jurisdiction to provide certain information to the President of
the Senate, the Speaker of the House of Representatives, and the proponents of the regulation within
25 days after receiving the legislation.

The bill may have a fiscal impact on state government. The bill is not expected to have a fiscal impact on local
governments.

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

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1155d.COM.DOCX
DATE: 2/2/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation

Occupational Licensing

An occupational or professional license is a form of regulation that requires individuals who want to
perform certain types of work, such as contractors and cosmetologists, to obtain permission from the
government to perform the work. 1 Generally, an individual obtains permission from the government to
perform a certain type of work by demonstrating that they have the designated knowledge, skills, and
abilities to perform the work by meeting pre-determined criteria established by the government, such as
work experience and exams. If the individual successfully completes the pre-determined criteria, the
government issues the individual a license, which allows them to perform the work. 2

In the 1950s, less than five percent of U.S. workers were required to have a license to do their jobs.
Since then the number of workers required to have a license has risen five-fold to more than one-
quarter of U.S. workers with most of these workers being licensed by the states. Almost two-thirds of
this change stems from an increase in the number of professions that require a license. The number of
licensed workers is even higher in Florida, with an estimated 28. 7 percent of the workforce being
licensed by the state. 3

In 2015, the White House published a report on the current state of occupational licensing in the nation.
The report found that when designed and implemented carefully, requiring occupational licenses offers
important health and safety protections to consumers as well as benefits to workers. However, the
report also found that too often licensing requirements are inconsistent, inefficient, arbitrary, and there
is evidence that the current license regime in the U.S. raises the price of goods and services, restricts
employment opportunities, and makes it more difficult for workers to take their skills across state lines. 4

The report stated that because occupations are diverse in their tasks, designing and implementing
successful occupational license regulations often requires a tailored approach. However, there are a
number of common factors that policymakers should consider when contemplating enacting, revising,
or repealing an occupational regulation. Policymakers should: 5
• Ensure that restrictions are closely targeted to protecting public health and safety, and are not
overly burdensome;
• Facilitate a careful consideration of licensure's costs and benefits; and
• Work to reduce licensing's barriers to mobility.

Policymakers can facilitate a careful consideration of licensure costs and benefits through both sunrise
and sunset reviews. However, evidence suggests that sunrise reviews are more successful at limiting
the growth of licensing since removing a license is much more difficult than enacting one. Additionally,
state regulators suggested that sunrise reviews may be more effective than sunset reviews. 6

1
The White House, Occupational Licensing: A Framework/or Policymakers, 6 (July 2015)
https://obamawhitehouse.archives.gov/sites/default/files/docs/licensing report final nonembargo.pdf(last visited on Jan. 14, 2020).
2
Bureau of Labor Statistics, Frequently asked questions about data on certifications and licenses,
https://www.bls.gov/cps/certifications-and-licenses-faqs.htm, (last visited on Jan. 14, 2020).
3
White House supra note 1 at 3 & 24.
4 Id
5
/d.at41-43
6
Id. at 42, 48-49.
STORAGE NAME: h1155d.C0M.D0CX PAGE: 2
DATE: 2/2/2020
Sunrise Review

Generally, a sunrise review is a formal process where a legislature scrutinizes legislation proposing to
regulate an unregulated profession or occupation by requiring a cost-benefit analysis before the
legislation is enacted. Most sunrise reviews require the proponents of the regulation to outline the
potential impacts, costs, and benefits of the proposed regulation. Some states require the proponents
of the regulation to provide certain information to a legislative committee or a state agency for analysis
and evaluation, which is then provided to the legislature. Policymakers can review the information
provided before moving forward with the legislation.7

Currently 12 states, including Florida, have sunrise reviews. 8 However, states vary widely in how
independently and thoroughly they administer sunrise reviews. Colorado requires proponents of
regulation to submit the proposed regulation along with the potential impacts, costs, and benefits to the
Colorado Department of Regulatory Agencies for analysis and evaluation. 9 Minnesota requires
proponents of regulation to file a report outlining the regulation's potential impacts, costs, and benefits
with the legislature within 15 days of the bill being introduced. 10 Maine requires sunrise reviews for
legislation regulating an unregulated profession or occupation and legislation that substantially expands
regulation of an already regulated profession or occupation. 11 Florida currently requires proponents of
regulation to file information about the regulation's potential impacts, costs, and benefits upon
request. 12

Florida's Sunrise Act

Section 11.62, F.S., is Florida's sunrise review, which is called the Sunrise Act. The Sunrise Act states
that regulation should not be adopted unless it is:
• Necessary to protect the public health, safety, or welfare from significant and discernible harm
or damage;
• Exercised only to the extent necessary to prevent the harm; and
• Limited so as not to unnecessarily restrict entry into the practice of the profession or adversely
affect public access to the professional services.

In determining whether to regulate a profession or occupation, the Sunrise Act requires the Legislature
to consider the following:
• Whether the unregulated practice of the profession or occupation will substantially harm or
endanger the public health, safety, or welfare, and whether the potential for harm is
recognizable and not remote;
• Whether the practice of the profession or occupation requires specialized skill or training and
whether that skill or training is readily measurable or quantifiable so that examination or training
requirements would reasonably assure initial and continuing professional or occupational ability;
• Whether the regulation will have an unreasonable effect on job creation or job retention in the
state or will place unreasonable restrictions on the ability of individuals who seek to practice or
who are practicing a given profession or occupation to find employment;
• Whether the public is or can be effectively protected by other means; and
• Whether the overall cost-effectiveness and economic impact of the proposed regulation,
including the indirect costs to consumers, will be favorable.

7
Id. at 48; Iris Hentze, Improving Occupational Licensing with Sunrise and Sunset Reviews, National Conference of State
Legislatures, (July 2018), http://www.ncsl.org/research/labor-and-emp loyment/improving-occupational-licensing-with-sunrise-and-
sunset-reviews.aspx (last visited Jan. 14, 2020); Council on Licensure & Regulation, Sunrise, Sunset and State Agency Audits,
https://www.clearhq.org/page-486181 (last visited Jan. 14, 2020).
8
Council on Licensure & Regulation supra note 5.
9
Colo. Rev. Stat.§ 24-34-104.1.
10
Minn. Stat.§ 214.002.
11
ME. Rev. Stat. Ann. Tit. 32-IA, § 60-J.
12
S. 11.62(4), F.S.
STORAGE NAME: h1155d.C0M.D0CX PAGE: 3
DATE: 2/2/2020
The Sunrise Act requires proponents of legislation that propose new regulation on professions or
occupations to provide the following information, upon request, by the agency proposed to have
jurisdiction or the legislative committee to which the legislation is referred, to document the need for
regulation:
• The number of individuals or businesses that would be subject to the regulation;
• The name of each association that represents members of the profession or occupation,
together with a copy of its codes of ethics or conduct;
• Documentation of the nature and extent of the harm to the public caused by the unregulated
practice of the profession or occupation, including a description of any complaints that have
been lodged against persons who have practiced the profession or occupation in this state
during the preceding three years;
• A list of states that regulate the profession or occupation, and the dates of enactment of each
law providing for such regulation and a copy of each law;
• A list and description of state and federal laws that have been enacted to protect the public with
respect to the profession or occupation and a statement of the reasons why these laws have not
proven adequate to protect the public;
• A description of the voluntary efforts made by members of the profession or occupation to
protect the public and a statement of the reasons why these efforts are not adequate to protect
the public;
• A copy of any federal legislation mandating regulation;
• An explanation of the reasons why other types of less restrictive regulation would not effectively
protect the public;
• The cost, availability, and appropriateness of training and examination requirements;
• The cost of regulation, including the indirect cost to consumers, and the method proposed to
finance the regulation;
• The cost imposed on applicants or practitioners or on employers of applicants or practitioners as
a result of the regulation;
• The details of any previous efforts in this state to implement regulation of the profession or
occupation; and
• Any other information the agency or the committee considers relevant to the analysis of the
proposed legislation.

The Sunrise Act requires the agency proposed to have jurisdiction over the regulation to provide the
Legislature with the following information:
• The resources required to implement and enforce the regulation;
• The technical sufficiency of the proposal, including its consistency with the regulation of other
professions; and
• Any alternatives that may result in less restrictive or more cost-effective regulation.

In determining whether to recommend regulation, the legislative committee reviewing the proposal must
assess whether the proposed regulation is:
• Justified based on the statutory criteria and the information provided by both the proponents of
regulation and the agency responsible for its implementation;
• The least restrictive and most cost-effective regulatory scheme necessary to protect the public;
and
• Technically sufficient and consistent with the regulation of other professions under existing law.

State Agency Rulemaking and Statements of Estimated Regulatory Costs (SERC)

The Administrative Procedure Act (APA) 13 sets forth a uniform set of procedures that agencies must
follow when exercising authority to make rules delegated to the agency by the Legislature. Rulemaking

13
Ch. 120, F.S.
STORAGE NAME: h1155d.C0M.D0CX PAGE: 4
DATE: 2/2/2020
authority is delegated by the Legislature through statute and authorizes agencies to "adopt, develop,
establish, or otherwise create" rules. 14

The APA requires an agency to complete a statement of estimated regulatory costs (SERC) in certain
circumstances. A SERC is an agency estimate of the potential impact of a proposed rule on the public,
particularly the potential costs to the public of complying with the proposed rule, as well as to the
agency and other governmental entities to implement the rule. Agencies are encouraged to prepare a
SERC before adopting, amending, or repealing any rule. A SERC is required, however, if the proposed
rule will have a negative impact on small businesses or increase regulatory costs by more than
$200,000 in the aggregate within one year after implementation of the rule. 15 A SERC must include: 16
• Good faith estimates of the number of people and entities affected by the proposed rule;
• Good faith estimates of the cost to the agency and other governmental entities to implement the
proposed rule;
• Good faith estimates of the transactional costs likely to be incurred by people, entities, and
governmental agencies for compliance. Transactional costs is defined to mean direct costs that
are readily ascertainable based upon standard business practices, and include filing fees, the
cost of obtaining a license, the cost of equipment required to be installed or used or procedures
required to be employed in complying with the rule, additional operating costs;
• An analysis of the proposed rule's impact on small businesses, counties, and cities; and
• Any additional information that the agency determines may be useful.

The SERC must also include an economic analysis on the likelihood that the proposed rule will have an
adverse impact in excess of $1 million within the first 5 years of implementation on:17
• Economic growth, private-sector job creation or employment, or private-sector investment;
• Business competitiveness, productivity, or innovation; or
• Regulatory costs, including any transactional costs.

Effect of the Bill

The bill provides that in addition to applying to legislation that regulates an unregulated profession or
occupation, the Sunrise Act also applies to legislation that substantially expands regulation of an
already regulated profession or occupation. The bill defines the term "substantial expansion of
regulation" to mean to expand the scope of practice for current practitioners of a profession or
occupation by regulating an activity that is not regulated by the state.

The bill requires proponents of legislation proposing regulation to provide the Legislature and the state
agency proposed to have jurisdiction certain information documenting the need for regulation by a
certain time, instead of doing so only upon request. The proponents must also file a draft of the
legislation and a summary of any bills on the same subject that have been filed with the Legislature in
the preceding five years. The proponents must provide this information to the President of the Senate,
the Speaker of the House of Representatives, and the agency proposed to have jurisdiction over the
regulation at least 30 days before the session in which the legislation is filed.

In addition to the current information an agency must provide to the Legislature, the bill provides that an
agency must also provide the Legislature with the following information:
• Good faith estimates of the number of people and entities affected by the proposed regulation;
• Good faith estimates of transactional costs likely to be incurred by people, entities, and
governmental agencies for compliance. Transactional costs are defined to mean direct costs
that are ascertainable based upon standard business practices, and include filing fees, the cost

14
Ss. 120.52(16)-(17) & 120.54(l)(a), F.S; Ch. 120, F.S.
15
Ss. 120.54(3)(b) & 120.541(2), F.S.
16
S. 120.541(2), F.S.
11 Id.
STORAGE NAME: h1155d.COM.DOCX PAGE: 5
DATE: 2/2/2020
of obtaining a license, regulatory compliance costs, operating costs, the cost of monitoring and
reporting, and any other costs necessary to comply with the rule;
• The anticipated costs to implement and enforce the proposed regulation, and any anticipated
license fees necessary to cover the anticipated costs;
• Whether additional statutory or rulemaking authority is necessary to implement and enforce the
proposed regulation;
• A comparison of similarly situated professions and occupations regulated by the agency;
• The anticipated impact of the proposed regulation on small businesses, counties, and cities;
• The anticipated impact of the proposed regulation on economic growth, private-sector job
creation or employment, and business competitiveness, including the ability of persons doing
business in the state to compete with persons doing business in other states or domestic
markets; and
• Any other information the agency determines relevant to the analysis of the proposed
regulation.

The bill provides that the state agency proposed to have jurisdiction must provide the information to the
President of the Senate, the Speaker of the House of Representatives, and the proponents of the
legislation within 25 days of receiving the draft legislation from the proponents. If a state agency fails to
provide the required information, they must notify the proponents of the legislation, the President of the
Senate, and the Speaker of the House of Representatives that they could not comply with the Sunrise
Act's requirements because the agency was unable to acquire sufficient information.

B. SECTION DIRECTORY:
Section 1. Amends s. 11.62, F.S., revising the requirements of the Sunrise Act.

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:
Indeterminate. The bill will require agencies to provide certain information to the Legislature. The
cost to provide the information is indeterminate but may be absorbed within existing resources.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may have an indeterminate, positive impact on the private sector.

D. FISCAL COMMENTS:

STORAGE NAME: h1155d.COM.DOCX PAGE: 6
DATE: 2/2/2020
None.

Ill. COMMENTS

A CONSTITUTIONAL ISSUES:

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

2. Other:
None.

B. RULE-MAKING AUTHORITY:
None. The bill does not require agency rulemaking.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

STORAGE NAME: h1155d.COM.DOCX PAGE: 7
DATE: 2/2/2020
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1155 2020

1 A bill to be entitled
2 An act relating to legislative review of proposed
3 regulation of unregulated functions; amending s.
4 11.62, F.S.; defining terms; providing that certain
5 requirements must be met before the adoption of a
6 regulation of an unregulated profession or occupation
7 or the substantial expansion of regulation of a
8 regulated profession or occupation; requiring the
9 proponents of legislation that proposes such
10 regulation to provide certain information to the state
11 agency proposed to have jurisdiction over the
12 regulation and the Legislature by a certain date;
13 requiring such state agency to provide certain
14 information to the Legislature within a certain time
15 period; providing an exception; revising information
16 that a legislative committee must consider when
17 determining whether a regulation is justified;
18 providing an effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. Section 11.62, Florida Statutes, is amended to
23 read:
24 11.62 Legislative review of proposed regulation of
25 unregulated functions.-

Page 1 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb1155-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1155 2020

26 (1) This section may be cited as the "Sunrise Act."
27 (2) It is the intent of the Legislature:
28 (a) That no profession or occupation be subject to
29 regulation by the state unless the regulation is necessary to
30 protect the public health, safety, or welfare from significant
31 and discernible harm or damage and that the police power of the
32 state be exercised only to the extent necessary for that
33 purpose; and
34 (b) That no profession or occupation be regulated by the
35 state in a manner that unnecessarily restricts entry into the
36 practice of the profession or occupation or adversely affects
37 the availability of the professional or occupational services to
38 the public.
39 (3) As used in this section, the term:
40 (a) "Substantial expansion of regulation" means to expand
41 the scope of practice for current practitioners of a profession
42 or occupation by regulating an activity that is not regulated by
43 the state.
44 (b) "Transactional costs" means direct costs that are
45 ascertainable based upon standard business practices, including
46 filing fees, license fees, regulatory compliance costs,
47 operating costs, monitoring and reporting costs, and any other
48 costs necessary to comply with the proposed regulation.
49 lil_ In determining whether to regulate a profession or
50 occupation, the Legislature shall consider the following

Page 2 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb1155-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1155 2020

51 factors:
52 (a) Whether the unregulated practice of the profession or
53 occupation will substantially harm or endanger the public
54 health, safety, or welfare, and whether the potential for harm
55 is recognizable and not remote;
56 (b) Whether the practice of the profession or occupation
57 requires specialized skill or training, and whether that skill
58 or training is readily measurable or quantifiable so that
59 examination or training requirements would reasonably assure
60 initial and continuing professional or occupational ability;
61 (c) Whether the regulation will have an unreasonable
62 effect on job creation or job retention in the state or will
63 place unreasonable restrictions on the ability of individuals
64 who seek to practice or who are practicing a given profession or
65 occupation to find employment;
66 (d) Whether the public is or can be effectively protected
67 by other means; and
68 (e) Whether the overall cost-effectiveness and economic
69 impact of the proposed regulation, including the indirect costs
70 to consumers, will be favorable.
71 (5) In order to ensure that the Legislature only adopts
72 those regulations that are necessary to protect the public, and
73 are the least restrictive regulatory alternative consistent with
74 the public interest, the requirements of this section must be
75 met before the adoption of:

Page 3 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb1155-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1155 2020

76 (a) Any regulation of a profession or occupation not
77 already expressly subject to state regulation; or
78 (b) Any regulation that substantially expands the
79 regulation of a regulated profession or occupation.
80 l§l-f-4+ The proponents of legislation, including any
81 individual, group, or entity, that proposes provides for the
82 regulation of an unregulated profession or occupation or the
83 substantial expansion of regulation of a regulated profession or
84 occupation not already eJcpressly subject to state regulation
85 shall provide, upon request, the following information in
86 writing to the state agency that is proposed to have
87 jurisdiction over the regulation, the President of the Senate,
88 and the Speaker of the House of Representatives at least 30 days
89 before the regular session of the Legislature in which the
90 legislation is to be filed and to the legislative coffiffiittees to
91 which the legislation is referred:
92 (a} A copy of the draft legislation proposing to regulate
93 an unregulated profession or occupation or the substantial
94 expansion of regulation of a regulated profession or occupation;
95 J...el+a+ The number of individuals or businesses that would
96 be subject to the regulation;
97 ~-He+ The name of each association that represents
98 members of the profession or occupation, together with a copy of
99 its codes of ethics or conduct;
100 J..91-+et Documentation of the nature and extent of the harm

Page 4 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb1155-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 1155 2020

101 to the public caused by the unregulated practice of the
102 profession or occupation, including a description of any
103 complaints that have been lodged against persons who have
104 practiced the profession or occupation in this state during the
105 preceding 3 years;
106 ~-+cl+- A list of states that regulate the profession or
107 occupation, and the dates of enactment of each law providing for
108 such regulation and a copy of each law;
109 J.!l-fe+- A list and description of state and federal laws
110 that have been enacted to protect the public with respect to the
111 profession or occupation and a statement of the reasons why
112 these laws have not proven adequate to protect the public;
113 l.9..l_+f+ A description of the voluntary efforts made by
114 members of the profession or occupation to protect the public
115 and a statement of the reasons why these efforts have not proven
116 are not adequate to protect the public;
117 -1.!:u_-(-Ej-t A copy of any federal legislation mandating
118 regulation;
119 J.il-ffi-t- An explanation of the reasons why other types of
120 less restrictive regulation would not effectively protect the
121 public;
122 J...il-+4+ The cost, availability, and appropriateness of
123 training and examination requirements;
124 J..tl-H+ The cost of regulation, including the indirect cost
125 to consumers, and the method proposed to finance the regulation;

Page 5 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb1155-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 1155 2020

126 Jll-f-*+- The cost imposed on applicants or practitioners or
127 on employers of applicants or practitioners as a result of the
128 regulation;
129 (m)+±+ The details of any previous efforts in this state
130 to implement regulation of the profession or occupationL
131 including a summary of bills filed in the Legislature on the
132 same subject in the preceding 5 years; and
133 J....Ql-ffflt Any other information the proponents of the
134 legislation consider agency or the cofRfflittee considers relevant
135 to the analysis of the proposed legislation.
136 J..21-f-5-t- The state agency proposed to have jurisdiction over
137 the regulation shall provide the President of the Senate and the
138 Speaker of the House of Representatives with the following
139 information within 25 days after the proponents of the
140 legislation submit the draft legislation to the state agency in
141 accordance with subsection (6) The agency shall provide the
142 Legislature with inforffiation concerning the effect of proposed
143 legislation that provides for new regulation of a profession or
144 occupation regarding:
145 (a) The departmental resources necessary to implement and
146 enforce the proposed regulation, including, but not limited to,
147 the anticipated costs to implement and enforce the proposed
148 regulation and any anticipated license fees necessary to cover
149 the anticipated costs.7
150 (b) Whether additional statutory or rulemaking authority

Page 6 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb1155-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 1155 2020

151 is necessary to implement and enforce the proposed regulation.
152 (c) A comparison of similarly situated professions and
153 occupations regulated by the state agency.
154 (d) The anticipated impact on small businesses as defined
155 ins. 288.703 and small counties and small cities as defined in
156 s. 120.52.
157 (e) The anticipated impact on business competitiveness,
158 including the ability of persons doing business in the state to
159 compete with persons doing business in other states or domestic
160 markets.
161 (f) The anticipated impact on economic growth and private
162 sector job creation or employment.
163 J_gJ_ The technical sufficiency of the proposal for
164 regulation, including its consistency with the regulation of
165 other professions and occupations under existing law~; and
166 JEl+e+ If applicable, any alternatives to the proposed
167 regulation which may result in a less restrictive or more cost-
168 effective regulatory scheme.
169 (i) A good faith estimate of the number of individuals or
170 businesses that would be subject to the proposed regulation.
171 (j) A good faith estimate of the transactional costs
172 likely to be incurred by individuals and entities, including
173 local government entities, that would be required to comply with
174 the proposed regulation.
175 (k) Any other information the state agency determines

Page 7 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb1155-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 1155 2020

176 relevant to the analysis of the proposed regulation.
177 (8) If the state agency that is proposed to have
178 jurisdiction over the regulation is unable to provide the
179 information required by subsection (7), such state agency shall
180 notify the proponents of the legislation, the President of the
181 Senate, and the Speaker of the House of Representatives that the
182 agency was unable to acquire sufficient information to comply
183 with that subsection.
184 J21+€+ When making a recommendation concerning proposed
185 legislation providing for new regulation of a profession or
186 occupation, a legislative committee shall determine:
187 (a) Whether the regulation is justified based on the
188 criteria specified in subsection (3), the information submitted
189 pursuant to request under subsection (4), and th-e information
190 provided under subsections (4), (6), and (7) subsection (5);
191 (b) The least restrictive and most cost-effective
192 regulatory scheme that will adequately protect the public; and
193 (c) The technical sufficiency of the proposed legislation,
194 including its consistency with the regulation of other
195 professions and occupations under existing law.
196 Section 2. This act shall take effect July 1, 2020.

Page 8 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb1155-00
:::c
OJ
en
0
(II
......
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 6057 Sports Development Program
SPONSOR(S): Avila
TIED BILLS: IDEN./SIM. BILLS:

REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF

1) Workforce Development & Tourism 10 Y, 1 N Willson Barry
Subcommittee

2) Ways & Means Committee 15 Y, 0 N Berg Langston

3) Commerce Committee Willson ,1\1 'W Hamon

SUMMARY ANALYSIS
The Sports Development Program (Program) provides state funding for constructing, reconstructing,
renovating, or improving professional sports facilities, as provided under s. 288.11625, F.S. The Program is
administered by the Department of Economic Opportunity (DEO). In order to receive funding under the
Program, DEO must first recommend the applicant's request for funding to the Legislature and receive
approval, then certify the approved request for funding as an annual distribution amount to the Department of
Revenue.

The Program is funded by state sales and use tax revenues. Individual facilities may receive up to $3 million
annually, and no more than $13 million can be distributed under the Program in a single year. A facility can
receive distributions for up to 30 years and up to $90 million per certified facility.

The professional sport franchises that can participate in the program include the National Football League, the
National Hockey League, the National Basketball League, Major and Minor League Baseball, Major League
Soccer, the North American Soccer League, the Professional Rodeo Cowboys Association, the promoter or
host of a signature event administered by the Breeders' Cup Limited or the promoter of a signature event
hosted by the National Association of Stock Car Auto Racing (NASCAR).

The Legislature created the Sports Development Program in 2014. To date, no facilities or applicants have
been approved to receive funding and no distributions have been made under the Program.

The bill repeals s. 288.11625, F.S., eliminating the Sports Development Program, and updates a number of
related sections to conform with the elimination of the Program.

The bill takes effect July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h6057d.COM.DOCX
DATE: 2/3/2020
FULL ANALYSIS

I. SUBSTANTIVE ANALYSIS

A. EFFECT OF PROPOSED CHANGES:
Current Situation

Florida Sports and Facilities

Florida is home to many professional and semi-professional sports teams, organizations and facilities,
including professional football, basketball, baseball, hockey, and soccer teams, National Association of
Stock Car Racing (NASCAR) sanctioned tracks, and professional equestrian and rodeo events.
Generally, team facilities are located on property leased by or purchased from local governments.

The following table provides basic information about the 10 professional sports franchises in Florida
that could qualify for the Sports Development Program and their facilities:

·~;,~j.'~~iSperi"?!>' .~:~.,{ .. l••ffl' .·.v...- F~ir· /f~ ·sradUi'~~F- CMlilly-
:;r?JYJ;/ '' ~'f;,7 f.fi ,, ',,.
,.. :.z?b,{i;~:,/, --
'L
''.'a :,, ~;
<,J,,! ,>,'

Miami Dolphins Football NFL 1966 Hard Rock 1987 Miami-Dade
Stadium
(originally Joe
Robbie Stadium)
Tampa Bay Football NFL 1976 Raymond James 1998 Hillsborough
Buccaneers Stadium
Miami Heat Basketball NBA 1988 American 1999 Miami-Dade
Airlines Arena
Orlando Magic Basketball NBA 1989 Amway Center 2010 Orange
Tampa Bay Hockey NHL 1992 Amalie Arena 1996 Hillsborough
Lightning (previously
Tampa Bay
Times Forum)
Florida Panthers Hockey NHL 1993 BB&T Center 1998 Broward
Miami Marlins Baseball MLB 1993 Marlins Park 2012 Miami-Dade
Jacksonville Football NFL 1995 TIAA Bank Field 1995 Duval
Jaguars (previously
EverBank Field)
Tampa Bay Rays Baseball MLB 1998 Tropicana Field 1990 Pinellas
( occupied by
Rays since 1998)
Orlando City Soccer MLS 2015 Exploria Stadium 2017 Orange
Soccer Club/ (previously
"Lions" Orlando City
Stadium)

In addition to the 10 major professional sports teams, Florida is also home to the MLB's Spring Training
Grapefruit League, with 15 teams holding preseason training and exhibition games in the state. 1

1 For general information related to professional sports in Florida, see Florida Sports Foundation at

http://www.flasports.com/ (last visited Jan. 16, 2020).
STORAGE NAME: h6057d.C0M.D0CX PAGE: 2
DATE: 2/3/2020
State Incentives for Professional Sports Franchises

Professional Sports Franchise Program

The Professional Sports Franchise program allows professional sports franchises in Florida to receive
state sales and use tax revenue to pay for the construction or renovation of a facility for a new or
retained professional sports franchise. 2 Local governments, non-profit, and for-profit entities may apply
to the program. Approved applicants are eligible to receive up to $2,000,004 per year for a period of up
to 30 years. 3 No more than eight facilities can be certified under this program at one time. 4

Currently, eight facilities receive distributions under the Professional Sports Franchise Program. Each
facility is currently on track to receive $60 million, which is the maximum distribution allowable under
this program ($166,667 per month or $2,000,004 per year, over 30 years), as follows:

,..,:....
' ,, ~~t :~~1~1~:;:

Hard Rock Stadium
·

Miami,
Y>iY:i:?::?f/
7.~\' ,;' .". <'
J!riiteldN
Miami
P&ituct Lease
,,...;.).
d/''
-;;:;

06/1994 99 year $51,333,436
(formerly Sun Life, S. FL. Stadium Corp., Marlins 5 06/2023 land lease,
Land Shark, Dolphin, May 1993 issued
Pro Player, Joe Robbie) 1987
TIAA Bank Field Jacksonville, Jacksonville 06/1994 2030 $49,500,099
(previously EverBank City of Jacksonville, Jaguars 05/2024
Field) April 1994
Tropicana Field St. Petersburg, Tampa Bay 07/1995 2027 $47,333,428
City of St. Petersburg, Rays 06/2025
Ma 1995
Amelie Arena Tampa, Tampa Bay 09/1995 2025 $47,000,094
(previously Tampa Bay Tampa Bay Sports Lightning 08/2025
Times Forum) Authority,
Jul 1995
BB&T Center Sunrise, Florida 08/1996 2028 $45,166,757
Broward County, Panthers 07/2026
June 1996
Raymond James Tampa, Tampa Bay 01/1997 2028 $44,333,422
Stadium Hillsborough County, Buccaneers 12/2026
November 1996
American Airlines Miami, Miami Heat 03/1998 2030 $41,833,417
Arena BPL, LTD, 03/2028
February 1998
Amway Center Orlando, Orlando 02/2008 2036 $22,166,711
City of Orlando, Magic 01/2038
November 2007
TOTAL: $348,667,364
6
(Information from the Department of Revenue and OPPAGA 7)

2 S. 288.1162, F.S.
3 S. 212.20(6)(d)6.b., F.S.
4
S. 288.1162(6), F.S.
5 The Marlins franchise relocated from Sun Life Stadium to Marlins Park in 2012.
6 Email from Lynne Moeller, Office of Legislative & Cabinet Services, Department of Revenue, Pro Sports summary by
fiscal year as of 2-28-19 (Feb. 19, 2019).
STORAGE NAME: h6057d.C0M.D0CX PAGE: 3
DATE: 2/3/2020
Sports Development Program

Section 288.11625, F.S., allows for distributions of state sales and use tax revenue pursuant to s.
212.20, F.S., to fund professional sports franchise facilities. The Department of Economic Opportunity
(DEO) administers the Program and is responsible for screening applicants 8 for state funding. The
purpose of the Program is to provide state funding for the construction, reconstruction, renovation, or
improvement of a sports facility, 9 the proposed acquisition of land to construct a new facility, and
construction of improvements to state-owned land necessary for the efficient use of the facility.

General Application and Approval Process

DEO accepts applications between June 1 and November 1 each year. Within 60 days of receiving a
completed application, DEO is required to evaluate the application and notify the applicant in writing of
their decision to recommend or deny approval. DEO provides the Legislature with a list of the
recommended applicants, ranked in the order of the project's likelihood to positively impact the state.
To receive funding, an application must be approved by the Legislature in a conforming bill or general
law approved by the Governor, and DEO must certify the applicant and its approved request for funding
and notify the Department of Revenue (DOR) of the initial certification and distribution amount.

An applicant remains certified for 30 years or the length of the agreement between the beneficiary 10
and the local government that owns the facility or the property on which the facility is or will be located,
whichever is less.

DEO may only recommend one distribution per applicant, facility or beneficiary. Furthermore, no facility
or beneficiary can receive more than one distribution under s. 212.20, F.S., for any state-administered,
sports-related program. 11 An exception exists for applicants who can show that the beneficiary that was
the subject of a previous distribution under s. 212.20, F.S., no longer plays at the facility that is the
subject of the application under the new program.

"Special" Application Process for New Facilities or Projects Commenced Before July 1, 2014 12

Section 288.11625(11 ), F.S., provides for an alternative application process to receive state funding
under the Program. Under this process, the Legislative Budget Commission (LBC) can approve
applications for new facilities or projects that commenced between March 1, 2013, and July 1, 2014,
and such applicants are not subject to the competitive evaluation and ranking component. An applicant

7 OPPAGA, Report No. 17-13, Florida Economic Development Program Evaluations-Year 5, p. 56 (Dec. 28, 2017).
8 Section 288.11625(2), F.S. An "Applicant" is a unit of local government which is responsible for the construction,

management, or operation of a facility; or an entity that is responsible for the construction, management, or operation of a
facility if a unit of local government holds title to the underlying property on which the facility is located.
9 Id. A "Facility" is a structure, and its adjoining parcels of local-government-owned land, primarily used to host games or

events held by a beneficiary and does not include any portion used to provide transient lodging.
10 Id. A "Beneficiary" is a professional sports franchise of the NFL, NHL, NBA, the National League or American League of

MLB, Minor League Baseball, MLS, the North American Soccer League (NASL), the Professional Rodeo Cowboys
Association (PRCA), the promoter or host of a signature event administered by Breeders' Cup Limited, or the promoter of
a signature event sanctioned by the National Association for Stock Car Auto Racing (NASCAR). A beneficiary may also
be an applicant under this program.
11 Such sports-related programs include Professional Sports Franchises (s. 288.1162, F.S.), Spring Training Baseball

Franchises (s. 288.11621, F.S.), Sports Development (s. 288.11625, F.S.), and Retention of MLB Spring Training
Franchises (s. 288.11631, F.S.). However, if an applicant for the Sports Development Program is already receiving
distributions under the Professional Sports Franchises Program (s. 288.1162, F.S.) for the same facility or beneficiary, the
applicant is eligible for an additional distribution of up to $1 million if the total project cost exceeds $100 million.
12 DEO Memorandum, Re Sports Development Statute, http://www.floridajobs.org/docs/default-source/division-of-

strateqic-business-development/sports-development-proqram/sports-development-statute-memo.pdf?sfvrsn=6 (last
visited Jan. 16, 2020).
STORAGE NAME: h6057d.COM.D0CX PAGE: 4
DATE: 2/3/2020
certified under the special application process remains subject to other provisions and requirements
under the Program.

Distribution of State Funds

The amount that an applicant may receive is based on 75 percent of the average annual new
incremental state sales taxes generated by sales at the facility. Such annual distribution are limited by
the following tiered system:
• If the total project cost is $200 million or greater, the annual distribution amount may be up to $3
million.
• If the total project cost is at least $100 million, but less than $200 million, the annual distribution
amount may be up to $2 million.
• If the total project cost is at least $30 million, but less than $100 million, the annual distribution
amount may be up to $1 million.

DEO is required to consult with DOR and the Office of Economic and Demographic Research (EDR) to
develop a standard calculation for estimating the average annual new incremental state sales taxes
generated by sales at the facility.

Use of Funds

Once certified, applicants may use Sports Development Program funds for the following purposes:
• Constructing, reconstructing, renovating, or improving a facility or reimbursing such costs;
• Paying or pledging for the payment of debt service on bonds issued for the construction or
renovation of a facility;
• Funding debt service reserve funds, arbitrage rebate obligations, or other amounts payable with
respect thereto on bonds issued for the construction or renovation of a facility; and
• Reimbursing the costs associated with debt service payments or refinancing of bonds issued for
the construction or renovation of a facility.

Contract

Certified applicants must enter into a contract with DEO that:
• Specifies the terms of the state's investment;
• States the criteria that the certified applicant must meet in order to remain certified;
• Requires the applicant to submit the independent analyses required by the Program;
• Specifies information that the certified applicant must report to DEO; and
• Includes any provisions deemed prudent by DEO.

The contract must also require the applicant to reimburse the state, after all distributions have been
made, any amount by which the total distributions made under the program exceed actual new
incremental state sales taxes generated by sales at the facility during the contract, plus a 5% penalty
on that amount. Reimbursements due to the state must be made within 90 days after the last
distribution. If the applicant is unable or unwilling to reimburse the state, DEO may place a lien on the
applicant's facility. If the applicant is a municipality or county, it may reimburse the state from its half-
cent sales tax allocation.

Repayment of Distributions

A certified applicant may be required to repay distributions if:

STORAGE NAME: h6057d.COM.DOCX PAGE: 5
DATE: 2/3/2020
• An applicant's beneficiary breaks the terms of its agreements and relocates, or no longer
occupies or uses the facility as the facility's primary tenant. The beneficiary is required to
reimburse the state for such distributed funds, plus a five percent penalty, if the beneficiary
relocates before the agreement expires.
• DEO determines that the applicant submitted false, misleading, deceptive, or otherwise untrue
information. As above, the applicant is required to reimburse the state, plus a five percent
penalty. Applicants that are a municipality or a county may reimburse the state from their half-
cent sales tax allocation.

Applicant History under the Sports Development Program

To date, no applicants have been certified and no funds have been distributed under the Program.
In FY14-15, DEO received four applications: the City of Jacksonville, the City of Orlando, Daytona
International Speedway, LLC, and South Florida Stadium, LLC. All applicants qualified for the "special"
application process.
In FY15-16, DEO received four applications: Buccaneers Football Stadium Limited Partnership, the City
of Jacksonville, Daytona International Speedway, LLC, and South Florida Stadium, LLC. The
Buccaneers application was incomplete and not transmitted to the Legislature, the other applications
qualified for the special application process.
In FY 16-17, DEO received one application, from Buccaneers Stadium, LLC. DEO reviewed the
application under the "general" application process.
DEO did not receive any applications for the Program in FY 17-18 or FY 18-19 .13

Sales and Use Tax

Chapter 212, F.S., contains the state's statutory provisions authorizing the levy and collection of
Florida's sales and use tax, as well as the exemptions and credits applicable to certain items or uses
under specified circumstances. A 6 percent sales and use tax is levied on tangible personal property
and a limited number of services. Additionally, s. 212.20, F.S., contains statutory direction for the
schedule of distributions approved pursuant toss. 288.1162 and 288.11625, F.S.

Local Government Half-cent Sales Tax (Section 218.64, F.S.)

Authorized in 1982, the Local Government Half-cent Sales Tax Program generates the largest amount
of revenue for local governments among the state-shared revenue sources currently authorized by the
Legislature. 14 It distributes a portion of state sales tax revenue via three separate distributions to eligible
county or municipal governments. Additionally, the program distributes a portion of communications
services tax revenue to eligible local governments. Allocation formulas serve as the basis for these
separate distributions. The program's primary purpose is to provide relief from ad valorem and utility
taxes in addition to providing counties and municipalities with revenues for local programs. 15

Municipalities are authorized to spend their portion of the local government half-cent sales tax for:
• municipality-wide programs,
• reimbursing the state as required by the Sports Development Program, or
• municipality-wide property tax or municipal utility tax relief.

13 Email from Karis Lockhart, Deputy Director of Legislative Affairs, DEO, RE: Sports Development Program (Jan. 17,

2020).
14 Ch. 82-154, Laws of Fla.
15 EDR, 2018 Local Government Financial Information Handbook (September 2018), p. 55.
STORAGE NAME: h6057d.COM.DOCX PAGE: 6
DATE: 2/3/2020
Counties are authorized to spend their portion of the local government half-cent sales tax for
countywide tax relief or countywide programs. Subject to certain conditions, counties may also use up
to $3 million annually of the local government half-cent sales tax for the following purposes:
• new or retained professional sports franchises under s. 288.1162, F.S. or a spring training
franchise under s. 288.11621, F.S.
• a certified applicant as a motorsport entertainment complex under s. 288.1171, F.S., or
• reimbursing the state as required by the Sports Development Program.

Additionally, counties and municipalities are authorized to pledge proceeds of the local government
half-cent sales tax for the payment of principal and interest on any capital project.

Economic Development Programs Evaluation

Section 288.0001, F.S., requires EDR and OPPAGA to include the Sports Development Program
among the list of economic development programs scheduled to be reviewed and analyzed by January
1, 2018, and every three years thereafter. As no applicants have been certified under the Program and
no funds have been distributed, neither OPPAGA16 nor EDR 17 was able to review and analyze the
Program in its first three-year reporting cycle.

Effect of Proposed Changes

The bill repeals s. 288.11625, F.S., eliminating the Sports Development Program. To conform with the
elimination of the Program, the bill also removes provisions relating to the distribution of funds under
the program, reimbursement provisions, and reporting requirements.

The bill takes effect July 1, 2020.

B. SECTION DIRECTORY:
Section 1 Repeals s. 288.11625, F.S., relating to the Sports Development Program.

Section 2 Amends s. 212.20, F.S., conforming provisions to changes made by the act.

Section 3 Amends s. 212.205, F.S.; conforming a cross-reference.

Section 4 Amends s. 218.64, F.S.; conforming provisions to changes made by the act.

Section 5 Amends s. 288.0001, F.S.; conforming provisions to changes made by the act.

Section 6 Provides for an effective date.

II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

A. FISCAL IMPACT ON STATE GOVERNMENT:

1. Revenues:
None.

2. Expenditures:

16 OPPAGA, Report No. 17-13, Florida Economic Development Program Evaluations-Year 5, p. 45 (Dec. 28, 2017).
17 EDR, Return on Investment for the Florida Sports Foundation Grants and Related Programs, p. 1 (Jan. 1, 2018).
STORAGE NAME: h6057d.C0M.D0CX PAGE: 7
DATE: 2/3/2020
None.

B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

1. Revenues:
None.

2. Expenditures:
None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate. No state funding was authorized and no applicants were ever approved by the
Legislature under the program being repealed.

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:
None.

B. RULE-MAKING AUTHORITY:
The bill does not appear to create the need for rulemaking or rulemaking authority.

C. DRAFTING ISSUES OR OTHER COMMENTS:
None.

IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES

STORAGE NAME: h6057d.COM.DOCX PAGE: 8
DATE 2/3/2020
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 6057 2020

1 A bill to be entitled
2 An act relating to the Sports Development Program;
3 repealing s. 288.11625, F.S., relating to the Sports
4 Development Program; amending ss. 212.20, 212.205,
5 218.64, and 288.0001, F.S.; conforming provisions to
6 changes made by the act; providing an effective date.
7

8 Be It Enacted by the Legislature of the State of Florida:
9

10 Section 1. Section 288.11625, Florida Statutes, is
11 repealed.
12 Section 2. Paragraph (d) of subsection (6) of section
13 212.20, Florida Statutes, is amended to read:
14 212.20 Funds collected, disposition; additional powers of
15 department; operational expense; refund of taxes adjudicated
16 unconstitutionally collected.-
17 (6) Distribution of all proceeds under this chapter and
18 ss. 202.18(1) (b) and (2) (b) and 203.01(1) (a)3. is as follows:
19 (d) The proceeds of all other taxes and fees imposed
20 pursuant to this chapter or remitted pursuant to s. 202. 18 ( 1) (b)
21 and (2) (b) shall be distributed as follows:
22 1. In any fiscal year, the greater of $500 million, minus
23 an amount equal to 4.6 percent of the proceeds of the taxes
24 collected pursuant to chapter 201, or 5.2 percent of all other
25 taxes and fees imposed pursuant to this chapter or remitted

Page 1 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb6057-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 6057 2020

26 pursuant to s. 202.18(1) (b) and (2) (b) shall be deposited in
27 monthly installments into the General Revenue Fund.
28 2. After the distribution under subparagraph 1., 8.9744
29 percent of the amount remitted by a sales tax dealer located
30 within a participating county pursuant to s. 218.61 shall be
31 transferred into the Local Government Half-cent Sales Tax
32 Clearing Trust Fund. Beginning July 1, 2003, the amount to be
33 transferred shall be reduced by 0.1 percent, and the department
34 shall distribute this amount to the Public Employees Relations
35 Commission Trust Fund less $5,000 each month, which shall be
36 added to the amount calculated in subparagraph 3. and
37 distributed accordingly.
38 3. After the distribution under subparagraphs 1. and 2.,
39 0.0966 percent shall be transferred to the Local Government
40 Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
41 to s. 218.65.
42 4. After the distributions under subparagraphs 1., 2., and
43 3., 2.0810 percent of the available proceeds shall be
44 transferred monthly to the Revenue Sharing Trust Fund for
45 Counties pursuant to s. 218.215.
46 5. After the distributions under subparagraphs 1., 2., and
47 3., 1.3653 percent of the available proceeds shall be
48 transferred monthly to the Revenue Sharing Trust Fund for
49 Municipalities pursuant to s. 218.215. If the total revenue to
50 be distributed pursuant to this subparagraph is at least as

Page 2 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb6057-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 6057 2020

51 great as the amount due from the Revenue Sharing Trust Fund for
52 Municipalities and the former Municipal Financial Assistance
53 Trust Fund in state fiscal year 1999-2000, no municipality shall
54 receive less than the amount due from the Revenue Sharing Trust
55 Fund for Municipalities and the former Municipal Financial
56 Assistance Trust Fund in state fiscal year 1999-2000. If the
57 total proceeds to be distributed are less than the amount
58 received in combination from the Revenue Sharing Trust Fund for
59 Municipalities and the former Municipal Financial Assistance
60 Trust Fund in state fiscal year 1999-2000, each municipality
61 shall receive an amount proportionate to the amount it was due
62 in state fiscal year 1999-2000.
63 6. Of the remaining proceeds:
64 a. In each fiscal year, the sum of $29,915,500 shall be
65 divided into as many equal parts as there are counties in the
66 state, and one part shall be distributed to each county. The
67 distribution among the several counties must begin each fiscal
68 year on or before January 5th and continue monthly for a total
69 of 4 months. If a local or special law required that any moneys
70 accruing to a county in fiscal year 1999-2000 under the then-
71 existing provisions of s. 550.135 be paid directly to the
72 district school board, special district, or a municipal
73 government, such payment must continue until the local or
74 special law is amended or repealed. The state covenants with
75 holders of bonds or other instruments of indebtedness issued by

Page 3 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb6057-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 6057 2020

76 local governments, special districts, or district school boards
77 before July 1, 2000, that it is not the intent of this
78 subparagraph to adversely affect the rights of those holders or
79 relieve local governments, special districts, or district school
80 boards of the duty to meet their obligations as a result of
81 previous pledges or assignments or trusts entered into which
82 obligated funds received from the distribution to county
83 governments under then-existing s. 550.135. This distribution
84 specifically is in lieu of funds distributed under s. 550.135
85 before July 1, 2000.
86 b. The department shall distribute $166,667 monthly to
87 each applicant certified as a facility for a new or retained
88 professional sports franchise pursuant to s. 288.1162. Up to
89 $41,667 shall be distributed monthly by the department to each
90 certified applicant as defined ins. 288.11621 for a facility
91 for a spring training franchise. However, not more than $416,670
92 may be distributed monthly in the aggregate to all certified
93 applicants for facilities for spring training franchises.
94 Distributions begin 60 days after such certification and
95 continue for not more than 30 years, except as otherwise
96 provided ins. 288.11621. A certified applicant identified in
97 this sub-subparagraph may not receive more in distributions than
98 expended by the applicant for the public purposes provided ins.
99 288.1162(5) ors. 288.11621(3).
100 c. Beginning 30 days after notice by the Department of

Page 4 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb6057-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 6057 2020

101 Economic Opportunity to the Department of Revenue that an
102 applicant has been certified as the professional golf hall of
103 fame pursuant to s. 288.1168 and is open to the public, $166,667
104 shall be distributed monthly, for up to 300 months, to the
105 applicant.
106 d. Beginning 30 days after notice by the Department of
107 Economic Opportunity to the Department of Revenue that the
108 applicant has been certified as the International Game Fish
109 Association World Center facility pursuant to s. 288.1169, and
110 the facility is open to the public, $83,333 shall be distributed
111 monthly, for up to 168 months, to the applicant. This
112 distribution is subject to reduction pursuant to s. 288.1169. A
113 lump sum payment of $999,996 shall be made after certification
114 and before July 1, 2000.
115 e. The department shall distribute up to $83,333 monthly
116 to each certified applicant as defined ins. 288.11631 for a
117 facility used by a single spring training franchise, or up to
118 $166,667 monthly to each certified applicant as defined ins.
119 288.11631 for a facility used by more than one spring training
120 franchise. Monthly distributions begin 60 days after such
121 certification or July 1, 2016, whichever is later, and continue
122 for not more than 20 years to each certified applicant as
123 defined ins. 288.11631 for a facility used by a single spring
124 training franchise or not more than 25 years to each certified
125 applicant as defined ins. 288.11631 for a facility used by more

Page 5 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb6057-00
FLORIDA H O U S E 0 F REPRESENTATIVES

HB 6057 2020

126 than one spring training franchise. A certified applicant
127 identified in this sub-subparagraph may not receive more in
128 distributions than expended by the applicant for the public
129 purposes provided ins. 288.11631(3).
130 f. Beginning 45 days after notice by the Department of
131 Economic Opportunity to the Department of Revenue that an
132 applicant has been approved by the Legislature and certified by
133 the Department of Economic Opportunity under s. 288.11625 or
134 upon a date specified by the Department of Economic Opportunity
135 as provided under s. 288 .11625 ( 6) (d), the department shall
136 distribute each month an amount equal to one twelfth of the
137 annual distribution amount certified by the Department of
138 Economic Opportunity for the applicant. The department may not
139 distribute more than $7 million in the 2014 2015 fiscal year or
140 more than $13 million annually thereafter under this sub
141 subparagraph.
142 !.:_~ Beginning December 1, 2015, and ending June 30, 2016,
143 the department shall distribute $26,286 monthly to the State
144 Transportation Trust Fund. Beginning July 1, 2016, the
145 department shall distribute $15,333 monthly to the State
146 Transportation Trust Fund.
147 7. All other proceeds must remain in the General Revenue
148 Fund.
149 Section 3. Section 212.205, Florida Statutes, is amended
150 to read:

Page 6 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb6057-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 6057 2020

151 212.205 Sales tax distribution reporting.-By March 15 of
152 each year, each person who received a distribution pursuant to
153 s. 212.20(6) (d)6.b.-e. s. 212.20(6) (d)6.b. f. in the preceding
154 calendar year shall report to the Office of Economic and
155 Demographic Research the following information:
156 (1) An itemized accounting of all expenditures of the
157 funds distributed in the preceding calendar year, including
158 amounts spent on debt service.
159 (2) A statement indicating what portion of the distributed
160 funds have been pledged for debt service.
161 (3) The original principal amount and current debt service
162 schedule of any bonds or other borrowing for which the
163 distributed funds have been pledged for debt service.
164 Section 4. Subsection (2) and paragraph (c) of subsection
165 (3) of section 218.64, Florida Statutes, are amended to read:
166 218.64 Local government half-cent sales tax; uses;
167 limitations.-
168 (2) Municipalities shall expend their portions of the
169 local government half-cent sales tax only for municipality-wide
170 programs, for reimbursing the state as required pursuant to s.
171 288.11625, or for municipality-wide property tax or municipal
172 utility tax relief. All utility tax rate reductions afforded by
173 participation in the local government half-cent sales tax shall
174 be applied uniformly across all types of taxed utility services.
175 (3) Subject to ordinances enacted by the majority of the

Page 7 of 8

CODING: Words stricken are deletions; words underlined are additions.
hb6057-00
FLORIDA H O U S E 0 F R E P R E S E N T A T I V E S

HB 6057 2020

176 members of the county governing authority and by the majority of
177 the members of the governing authorities of municipalities
178 representing at least 50 percent of the municipal population of
179 such county, counties may use up to $3 million annually of the
180 local government half-cent sales tax allocated to that county
181 for any of the following purposes:
182 (e) Reimbursing the state as required under s. 288.11625.
183 Section 5. Paragraph (e) of subsection (2) of section
184 288.0001, Florida Statutes, is amended to read:
185 288.0001 Economic Development Programs Evaluation.-The
186 Office of Economic and Demographic Research and the Office of
187 Program Policy Analysis and Government Accountability (OPPAGA)
188 shall develop and present to the Governor, the President of the
189 Senate, the Speaker of the House of Representatives, and the
190 chairs of the legislative appropriations committees the Economic
191 Development Programs Evaluation.
192 (2) The Office of Economic and Demographic Research and
193 OPPAGA shall provide a detailed analysis of economic development
194 programs as provided in the following schedule:
195 (e) Beginning January 1, 2018, and every 3 years
196 thereafter, an analysis of the Sports Development Program
197 established under s. 288.11625.
198 Section 6. This act shall take effect July 1, 2020.

Page 8 of 8

CODING: Words strioken are deletions; words underlined are additions.
hb6057-00

File and source

File: 2020-02-06_2994_commerce-committee_meeting-packets_fn-com-2-6-20.pdf
Size: 4,318,366 bytes
SHA-256: ac352562fb1d0e8b320f247fca92b1bcdc11bbfb10fb4b2ab8ea7bcb6c35f28a
Our copy: 2020-02-06_2994_commerce-committee_meeting-packets_fn-com-2-6-20.pdf
Original: No public link identified.